0000950123-24-002926 | 10-K | XBRL Viewer

LEASES

12 Months Ended

Sep. 30, 2023

11. LEASES

Leases

The Company leases office and research and development facility leases under non-cancelable operating leases for various terms through 2030. Certain lease agreements include renewal options, rent abatement periods, and rental increases throughout the term. 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).

The following table provides the components of lease cost recognized in the consolidated statements of operations and comprehensive income for the periods presented (amounts in thousands):


	Twelve Months Ended September 30,
	2023	2022
Operating lease cost	2,025	1,881
Variable lease cost	319	385
Total lease cost(1)	2,344	2,266

1.Short-term lease costs incurred by the Company for the twelve months ended September 30, 2023 and 2022 were immaterial.

Other information related to leases as of the balance sheet dates presented are as follows:


	Twelve Months Ended September 30,
	2023		2022
Weighted-average remaining lease term (years) - operating leases	4.3		4.5
Weighted-average discount rate - operating leases	3.7	%	3.5	%

Maturities of operating lease liabilities as of September 30, 2023 were as follows (amounts in thousands):


	Operating Leases1
2024	1,985
2025	713
2026	701
2027	616
2028	413
Thereafter	574
Total lease payments	5,002
Less: amount representing interest	$	(233)
Present value of future lease payments	$	4,769

1.Excludes approximately $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced.

CONVERTIBLE SENIOR NOTES - Narrative (Details)		8 Months Ended	12 Months Ended
CONVERTIBLE SENIOR NOTES - Narrative (Details)	Feb. 05, 2021 USD ($) patent $ / shares	Sep. 30, 2021 USD ($)	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jan. 13, 2023	Feb. 28, 2021 USD ($)	Feb. 02, 2021 $ / shares
Debt Instrument [Line Items]
Payment costs related to hedge transactions			$ 0	$ 0	$ 33,192,000
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]			Convertible senior notes
Increase in additional paid-in-capital for sale or warrants					$ 23,909,000
Convertible Debt \| 2026 Notes
Debt Instrument [Line Items]
Debt issued			$ 155,300,000				$ 155,300,000
Debt interest rate (as a percent)	0.75%		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			$ 19,734,000	$ 27,280,000
Convertible Debt \| 2026 Notes \| Interest Rate Period One
Debt Instrument [Line Items]
Additional interest (as a percent)						0.25%
Interest rate threshold period						90 days
Convertible Debt \| 2026 Notes \| Interest Rate Period Two
Debt Instrument [Line Items]
Additional interest (as a percent)						0.50%
Interest rate threshold period						180 days
Convertible Debt \| 2026 Notes \| Common Stock
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares								$ 15.16
Convertible Debt \| 2026 Notes \| 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 \| 2026 Notes \| Measurement Period
Debt Instrument [Line Items]
Debt conversion price percentage	0.98
Consecutive trading days in period \| patent	5
Convertible Debt \| 2026 Notes \| Embedded Conversion Derivative
Debt Instrument [Line Items]
Payment costs related to hedge transactions	$ 9,300,000
Embedded derivative, fair value of embedded derivative liability	33,200,000
Value of remaining embedded derivative allocated to host contract	$ 116,500,000
Derivative interest rate	6.71%
Remaining unamortized debt discount			$ 19,700,000
Remaining debt discount amortization period			2 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	$ 20,300,000
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
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
Shares purchased under the notes hedge (in shares) \| shares			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 (Tables)

12 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Carrying Values of Company's 2026 Notes

The carrying values of the 0.75% convertible notes due 2026 issued by the Company in an aggregate principal amount of $155.3 million (the “2026 Notes”) are as follows (amounts in thousands):


	September 30, 2023		September 30, 2022
2026 Notes:
Principal amount	$	155,250	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(19,734)		(27,280)
Carrying amount	$	135,516	$	127,970

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, 2023 and 2022 (amounts in thousands):


	2023		2022
Contractual interest expense	$	1,615	$	1,179
Amortization of debt discount and issuance costs	7,546		7,053
Total interest expense recognized	$	9,161	$	8,232

- 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.

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+ Details

Audit Information	12 Months Ended
Audit Information	Sep. 30, 2023	Sep. 30, 2022
Audit Information [Abstract]
Auditor Name	BDO USA, P.C.	Mayer Hoffman McCann P.C.
Auditor Location	Troy, Michigan	San Diego, California
Auditor Firm ID	243	199

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Sep. 30, 2020		41,780,000
Beginning balance at Sep. 30, 2020	$ 132,243	$ 42	$ 146,518	$ 0	$ (13,994)	$ (323)
Treasury Stock, Beginning Balance (in shares) at Sep. 30, 2020				0
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 comprehensive income (loss)
Net income	7,978				7,978
Currency translation adjustment	(455)					(455)
Change in unrealized gain (loss) on investments	(165)					(165)
Total comprehensive income (loss)	7,358
Ending balance (in shares) at Sep. 30, 2021		44,169,000
Treasury Stock, Ending Balance (in shares) at Sep. 30, 2021				(8,000)
Ending balance at Sep. 30, 2021	$ 192,830	$ 44	199,935	$ (140)	(6,066)	(943)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	35,625	35,000
Exercise of stock options	$ 238		238
Settlement of restricted stock units (in shares)		1,075,000
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	1,487		1,487
Acquisition-related shares issued (in shares)		203,000
Acquisition-related shares issued	1,836		1,836
Stock-based compensation expense	13,346		13,346
Repurchase and retirements of common stock (in shares)		(931,000)		8,000
Repurchases and retirements of common stock	(15,176)	$ 1	348	$ 140	(14,967)
Components of comprehensive income (loss)
Net income	3,694				3,694
Currency translation adjustment	(27,559)					(27,559)
Change in unrealized gain (loss) on investments	283					283
Total comprehensive income (loss)	$ (23,582)
Ending balance (in shares) at Sep. 30, 2022	44,680,429	44,680,000
Treasury Stock, Ending Balance (in shares) at Sep. 30, 2022				0
Ending balance at Sep. 30, 2022	$ 170,979	$ 44	216,493	$ 0	(17,339)	(28,219)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	98,952	100,000
Exercise of stock options	$ 727		727
Settlement of restricted stock units (in shares)		689,000
Settlement of restricted stock units	0	$ 2	(2)
Issuance of common stock under employee stock purchase plan (in shares)		122,000
Issuance of common stock under employee stock purchase plan	1,010		1,010
Stock-based compensation expense	10,463		10,463
Components of comprehensive income (loss)
Net income	8,027				8,027
Currency translation adjustment	13,093					13,093
Change in unrealized gain (loss) on investments	889					889
Total comprehensive income (loss)	$ 22,009
Ending balance (in shares) at Sep. 30, 2023	45,591,199	45,591,000
Treasury Stock, Ending Balance (in shares) at Sep. 30, 2023				0
Ending balance at Sep. 30, 2023	$ 205,188	$ 46	$ 228,691	$ 0	$ (9,312)	$ (14,237)

RESTRUCTURING (Details) $ in Thousands	12 Months Ended
RESTRUCTURING (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 901
Additional costs incurred	2,109
Payments	(3,070)
Foreign currency effect on the restructuring accrual	60
Restructuring reserve, ending balance	$ 0

REVENUE CONCENTRATION

12 Months Ended

Sep. 30, 2023

Risks and Uncertainties [Abstract]

REVENUE CONCENTRATION

12. REVENUE CONCENTRATION

Revenue Concentration

For the twelve months ended September 30, 2023, the Company derived revenue of $27.7 million from one customer, with such customer accounting for 16% of the Company’s total revenue. For the twelve months ended September 30, 2022, the Company derived revenue of $25.0 million from the same single customer, with such customer accounting for 17% of the Company's total revenue. For the twelve months ended September 30, 2021, the Company derived revenue of $20.2 million from the same single customer, with such customer accounting for 17% 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 $2.7 million, $8.0 million, and $3.4 million at September 30, 2023, 2022, and 2021, respectively.

From a geographic perspective, approximately 72% and 68% of the Company’s total long-term assets as of September 30, 2023 and 2022, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately

23% and 18% of the Company’s total long-term assets excluding goodwill and other intangible assets as of September 30, 2023 and 2022, respectively, are associated with the Company’s international subsidiaries.

The United States was the only country that accounted for more than 10% of the Company’s revenue in the twelve months ended September 30, 2023, 2022, and 2021. Revenue for the twelve months ended September 30, 2023, 2022, and 2021 were as follows (amounts in thousands):


	Twelve Months Ended September 30,
	2023		2022		2021
United States	$	134,957	$	113,499	$	92,832
All other countries	37,595		31,305		26,965
Total revenue	$	172,552	$	144,804	$	119,797

INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits at the beginning of the year	$ 2,664	$ 2,114	$ 1,810
Additions from tax positions taken in the current year	330	484	268
Additions from tax positions taken in prior years	0	66	36
Reductions from tax positions taken in prior years	(9)	0	0
Gross unrecognized tax benefits at end of the year	$ 2,985	$ 2,664	$ 2,114

INCOME TAXES - Significant Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Deferred tax assets:
Stock-based compensation	$ 2,357	$ 1,793
Net operating loss carryforwards	11,548	6,656
Research credit carryforwards	4,336	7,747
Lease liability	1,185	859
Intangibles	4,606	0
Other, net	852	1,117
Total deferred assets	24,884	18,172
Deferred tax liabilities:
Right of use asset	(1,032)	(633)
Intangibles	(15,914)	(14,139)
Total deferred liabilities	(16,946)	(14,772)
Valuation allowance for net deferred tax assets	(2,769)	(2,868)
Net deferred tax asset	$ 5,169	$ 532

REVENUE RECOGNITION

12 Months Ended

Sep. 30, 2023

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. Software is typically sold as a time-based license with a term of one to three years. 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 at a point in time upon shipment and after evidence of a contract exists.

Services and Other

Services and other revenue is generated from the sale of software as a service (“SaaS”) products and services, maintenance associated with the sale of on premise software licenses and consulting and professional services. The Company’s SaaS offerings give customers the option to be charged upon their incurred usage in arrears (“Pay as You Go”), or commit to a minimum spend over their contracted period, with the ability to purchase unlimited additional transactions above the minimum during the contract term. Revenue related to Pay as You Go contracts are recognized based on the customer’s actual usage, in the period of usage. For contracts which include a minimum commitment, the Company is standing ready to provide as many transactions as desired by the customer throughout the contract term, and revenue is recognized on a ratable basis over the contract period including an estimate of usage above the minimum commitment. Usage above minimum commitment is estimated by looking at historical usage, expected volume, and other factors to project out for the remainder of the contract term. The estimated usage-based revenues are constrained to the

amount the Company expects to be entitled to receive in exchange for providing access to its platform. If professional services are deemed to be distinct, revenue is recognized as services are performed. 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, variable consideration will only be included in the transaction price to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. 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 or due to uncertainty surrounding collectability. The Company estimates variable consideration in its contracts primarily using the expected value method as the Company believes this method represents the most appropriate estimate for this consideration, based on historical usage trends, the individual contract considerations, and its best judgment at the time.

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 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 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,
	2023		2022		2021
Major product category
Deposits software and hardware	$	78,212	$	64,548	$	55,129
Deposits services and other	25,922		22,013		20,388
Deposits revenue	104,134		86,561		75,517
Identity verification software and hardware	10,162		8,380		4,940
Identity verification services and other	58,256		49,863		39,340
Identity verification revenue	68,418		58,243		44,280
Total revenue	$	172,552	$	144,804	$	119,797

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers (amounts in thousands) as of September 30, 2023 and 2022:


	September 30, 2023		September 30, 2022
Contract assets, current	$	18,355	$	7,037
Contract assets, non-current	5,579		4,218
Contract liabilities (deferred revenue), current	17,360		21,350
Contract liabilities (deferred revenue), non-current	957		1,775

Contract assets reported within a separate line in current assets and the other non-current assets line in the consolidated balance sheets, primarily result from when the right to consideration is conditional upon factors other than the passage of time. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue), for which transfer of control occurs, and therefore revenue is recognized as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $19.3 million and $10.9 million of revenue during the twelve months ended September 30, 2023 and 2022, respectively, which was included in the contract liability balance at the beginning of each such period. Unbilled receivables are included within accounts receivable, net on the consolidated balance sheets and were $0.9 million and $1.7 million as of September 30, 2023 and 2022, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations that were unsatisfied or partially unsatisfied was $18.3 million, which is recorded as deferred revenue on the Company’s consolidated balance sheets. Of that amount, $17.4 million will be recognized as revenue during the year ended September 30, 2024, and $1.0 million thereafter.

As of September 30, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations that were unsatisfied or partially unsatisfied was $23.1 million, which is recorded as deferred revenue on the Company’s consolidated balance sheets. Of that amount, $21.4 million was expected to be recognized as revenue during the year ended September 30, 2023, and $1.8 million thereafter.

Contract Costs

Contract costs included in other current and non-current assets on the consolidated balance sheets totaled $2.6 million and $2.4 million at September 30, 2023 and 2022, 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 $1.5 million and $1.3 million during the twelve months ended September 30, 2023 and 2022, respectively. There were no impairment losses recognized during the twelve months ended September 30, 2023 and 2022 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.

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

INVESTMENTS - Summary of Fair Value of Investments Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Assets:
Short-term investments:	$ 74,700	$ 58,268
Long-term investments:	1,304	10,633
Total assets at fair value	76,004	68,901
Current liabilities:
Acquisition-related contingent consideration	7,976	5,920
Total liabilities at fair value	7,976	5,920
U.S. Treasury
Assets:
Short-term investments:	40,254	5,882
Long-term investments:	1,304	3,221
Corporate debt securities
Assets:
Short-term investments:	34,446	31,537
Long-term investments:		7,412
Commercial paper
Assets:
Short-term investments:		18,022
Foreign government and agency securities
Assets:
Short-term investments:		2,827
Quoted Prices in Active Markets (Level 1)
Assets:
Short-term investments:	40,254	5,882
Long-term investments:	1,304	3,221
Total assets at fair value	41,558	9,103
Current liabilities:
Acquisition-related contingent consideration	0	0
Total liabilities at fair value	0	0
Quoted Prices in Active Markets (Level 1) \| U.S. Treasury
Assets:
Short-term investments:	40,254	5,882
Long-term investments:	1,304	3,221
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities
Assets:
Short-term investments:	0	0
Long-term investments:		0
Quoted Prices in Active Markets (Level 1) \| Commercial paper
Assets:
Short-term investments:		0
Quoted Prices in Active Markets (Level 1) \| Foreign government and agency securities
Assets:
Short-term investments:		0
Significant Other Observable Inputs (Level 2)
Assets:
Short-term investments:	34,446	52,386
Long-term investments:	0	7,412
Total assets at fair value	34,446	59,798
Current liabilities:
Acquisition-related contingent consideration	7,976	0
Total liabilities at fair value	7,976	0
Significant Other Observable Inputs (Level 2) \| U.S. Treasury
Assets:
Short-term investments:	0	0
Long-term investments:	0	0
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Assets:
Short-term investments:	34,446	31,537
Long-term investments:		7,412
Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Short-term investments:		18,022
Significant Other Observable Inputs (Level 2) \| Foreign government and agency securities
Assets:
Short-term investments:		2,827
Significant Unobservable Inputs (Level 3)
Assets:
Short-term investments:	0	0
Long-term investments:	0	0
Total assets at fair value	0	0
Current liabilities:
Acquisition-related contingent consideration	0	5,920
Total liabilities at fair value	0	5,920
Significant Unobservable Inputs (Level 3) \| U.S. Treasury
Assets:
Short-term investments:	0	0
Long-term investments:	0	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Assets:
Short-term investments:	$ 0	0
Long-term investments:		0
Significant Unobservable Inputs (Level 3) \| Commercial paper
Assets:
Short-term investments:		0
Significant Unobservable Inputs (Level 3) \| Foreign government and agency securities
Assets:
Short-term investments:		$ 0

GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 115,632
Foreign currency effect on goodwill	7,916
Goodwill, ending balance	$ 123,548

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The Company has not filed, and does not intend to file, an amendment to the previously filed Annual Report on Form 10-K for the period ended September 30, 2022, but instead is revising its previously reported financial statements in this Annual Report on Form 10-K, as follows (amounts in thousands):


	As of September 30, 2022
	As Previously Reported		Total Adjustments		As Revised

Accounts receivable, net (i)	$	27,874	$	8,048	$	35,922
Contract assets, current portion (iii)	6,273		764		7,037
Prepaid expenses (iii)	2,000		(54)		1,946
Goodwill (ii)	120,186		(4,554)		115,632
Deferred income tax assets (iii)	10,245		(135)		10,110
Total assets	360,410		4,069		364,479
Income tax payables (iii)	194		12		206
Other current liabilities (iii)	2,409		(7)		2,402
Deferred revenue, current portion (i)(iii)	13,394		7,956		21,350
Deferred income tax liabilities (ii)	14,132		(4,554)		9,578
Total liabilities	$	190,093	$	3,407	$	193,500


	Twelve months ended September 30, 2022
	As Previously Reported		Total Adjustments		As Revised
Revenue
Software and hardware (iii)	$	72,494	$	434	$	72,928
Services and other (iii)	71,449		427		71,876
Total revenue	143,943		861		144,804
Operating income	11,339		861		12,200
Other expense, net (iii)	(370)		4		(366)
Income tax benefit (iii)	295		(203)		92
Net income	$	3,032	$	662	$	3,694

RESTRUCTURING (Tables)

12 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Changes in Restructuring Accrual

The following table summarizes changes in the restructuring accrual during the twelve months ended September 30, 2023 (amounts in thousands):


Balance at September 30, 2022	$	901
Additional costs incurred	2,109

Payments	(3,070)
Foreign currency effect on the restructuring accrual	60
Balance at September 30, 2023	$	—

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Contract assets, current	$ 18,355	$ 7,037
Contract assets, non-current	5,579	4,218
Contract liabilities (deferred revenue), current	17,360	21,350
Contract liabilities (deferred revenue), non-current	$ 957	$ 1,775

LEASES - Schedule of Maturities of Operating Lease Liabiliities (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Leases [Abstract]
2024	$ 1,985
2025	713
2026	701
2027	616
2028	413
Thereafter	574
Total lease payments	5,002
Less: amount representing interest	(233)
Present value of future lease payments	4,769
Minimum lease payments for an office lease signed by not yet commenced	$ 1,800

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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

For the twelve months ended September 30, 2023, 2022 and 2021, the following potentially dilutive common shares were excluded from the calculation of net income per share, as they would have been antidilutive (amounts in thousands):


	2023	2022	2021
Stock options	437	506	543
RSUs	1,455	960	1,113
ESPP common stock equivalents	6	7	9
Performance options	755	623	272
Performance RSUs	268	281	104
Convertible senior notes	7,448	7,448	4,856
Warrants	7,448	7,448	4,856
Total potentially dilutive common shares outstanding	17,817	17,273	11,753

Schedule of Computation of Basic and Diluted Net Income Per Share

The calculation of basic and diluted net income per share for the twelve months ended September 30, 2023, 2022 and 2021, is as follows (amounts in thousands, except per share data):


	2023		2022		2021
Net income	$	8,027	$	3,694	$	7,978
Weighted-average shares outstanding—basic	45,533		44,595		43,509
Common stock equivalents	928		1,185		1,574
Weighted-average shares outstanding—diluted	46,461		45,780		45,083
Net income per share:
Basic	$	0.18	$	0.08	$	0.18
Diluted	$	0.17	$	0.08	$	0.18

Schedule of Summary of Property and Equipment

The following is a summary of property and equipment as of September 30, 2023 and 2022 (amounts in thousands):


	2023		2022
Property and equipment—at cost:
Leasehold improvements	$	2,612	$	2,554
Machinery and equipment	3,657		3,384
Capitalized software development costs	3,610		2,902
Furniture and fixtures	728		709
	10,607		9,549
Less: accumulated depreciation and amortization	(7,778)		(6,056)
Total property and equipment, net	$	2,829	$	3,493

REVENUE CONCENTRATION - Schedule of Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	$ 39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	$ 144,804	$ 119,797
United States
Disaggregation of Revenue [Line Items]
Revenue									134,957	113,499	92,832
All other countries
Disaggregation of Revenue [Line Items]
Revenue									$ 37,595	$ 31,305	$ 26,965

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

BUSINESS COMBINATIONS

12 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

3. BUSINESS COMBINATIONS

Acquisition of ID R&D, Inc.

On May 28, 2021 (the “Closing Date”), the Company completed 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. 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. In May and June of 2022, the Company paid the first of the Earnout Payments of an aggregate of $9.5 million which consisted of $7.7 million paid in cash and $1.8 million in shares of Common Stock to the equityholders of ID R&D. Pursuant to the Merger Agreement, 15% of the Earnout Payments with respect to the first Earnout Period, were deposited into the escrow fund which consisted of both cash and Common Stock. The Company released the cash and shares held in escrow in the fourth quarter of fiscal 2023. The second Earnout Period ended in May 2023 and the Representative did not exercise their option to shift the Earnout Period. In the first quarter of fiscal 2024, the Company paid the second Earnout Payment of an aggregate $8.0 million which consisted of $4.7 million paid in cash and $3.3 million in shares of Common Stock to the equityholders of ID R&D.

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 revised the estimated fair value of the consideration for the Earnout Periods. Accordingly, the Company recognized an expense of $2.1 million and gain of $1.4 million in amortization and acquisition-related costs in the consolidated statements of operations and other comprehensive income (loss) for the twelve months ended September 30, 2023 and 2022, respectively.

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 amortization and acquisition-related costs 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 was also be deposited into the escrow fund. The escrow fund was released to the equityholders of ID R&D in the fourth quarter of fiscal 2023. The Company used cash on hand for the Initial Cash Payment.

Acquisition of HooYu Ltd.

On March 23, 2022, the Company completed the acquisition (“HooYu Acquisition”) of HooYu Ltd (“HooYu”) pursuant to the Purchase Agreement (the “Purchase Agreement”) dated March 23, 2022, by and among the Company and certain persons identified in the Purchase Agreement (the “Sellers”). Pursuant to the Purchase Agreement, the Company, among other things, acquired 100% of the outstanding share capital of HooYu, a leading global customer onboarding platform designed to increase the integrity of KYC and maximize the success of customer onboarding. As consideration for the HooYu Acquisition, the Company paid aggregate consideration in the amount of $129.1 million (the “Closing Consideration”), as such amount may be adjusted for transaction expenses and indebtedness. Pursuant to the Purchase Agreement, $1.6 million was withheld as a reduction to the Closing Consideration and was retained by the Company for the final working capital adjustments and indemnification of certain tax matters under the Purchase Agreement.

The Company incurred $3.2 million of expense in connection with the acquisition primarily related to legal fees, outside service costs, foreign currency and realized losses on investments, and travel expense, which are included in amortization and acquisition-related costs in the consolidated statements of operations and other comprehensive income (loss).

On March 23, 2022, using cash on hand, the Company transferred an aggregate of $127.5 million to the Sellers and its third-party legal and investment advisors, net of cash acquired of $0.5 million. In July 2022 the Company paid an additional $0.4 million to the Sellers in settling final working capital.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed from the ID R&D Acquisition and HooYu Acquisition as of September 30, 2023 (amounts in thousands):


	ID R&D		HooYu
Accounts receivable	$	173	$	1,234
Property, plant, and equipment	114		504
Other current assets	147		630
Intangible assets	16,930		73,100
Goodwill	27,748		74,206

Current liabilities	(425)		(2,264)
Deferred revenue	—		(2,612)
Deferred income tax liabilities	(2,355)		(16,896)
Net assets acquired	$	42,332	$	127,902

The goodwill recognized is due to expected market participant 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 were estimated to 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 revenue growth rates, 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 and HooYu Acquisition during the twelve months ended September 30, 2023 (amounts in thousands, except for years):

ID R&D


	Amortization Period	Amount assigned

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

HooYu


	Amortization Period	Amount assigned
Completed technologies	7.0 years	$	61,400
Customer relationships	5.0 years	5,000
Trade name	5.0 years	6,100
Covenants not to compete	3.0 years	$	600
Total intangible assets acquired		$	73,100

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 and HooYu Acquisition occurred on October 1, 2020 and 2021, respectively (amounts shown in thousands):


	For the twelve months ended September 30,
	2022		2021
Pro forma revenue	$	149,679	$	130,302
Pro forma net income (loss)	$	(6,683)	$	(8,516)

The following table summarizes the results of ID R&D and HooYu that are included in the Company’s consolidated results (amounts shown in thousands):


	For the twelve months ended September 30,
	2022		2021
ID R&D
Revenue	$	5,663	$	849
Net Income (loss)	$	(3,769)	$	(3,021)
HooYu
Revenue	$	5,738
Net Income (loss)	$	(1,587)

REVENUE CONCENTRATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Concentration Risk [Line Items]
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	$ 39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	$ 144,804	$ 119,797
Accounts receivable, net	32,132				35,922				32,132	35,922
All other countries
Concentration Risk [Line Items]
Revenue									37,595	31,305	26,965
Revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Revenue									$ 27,700	$ 25,000	$ 20,200
Revenue \| Customer Concentration Risk \| Customer One
Concentration Risk [Line Items]
Concentration risk (as a percent)									16.00%	17.00%	17.00%
Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net	$ 2,700				$ 8,000				$ 2,700	$ 8,000	$ 3,400
Long-Term Assets \| Geographic Concentration Risk \| All other countries
Concentration Risk [Line Items]
Concentration risk (as a percent)									72.00%	68.00%
Long-Term Assets, Excluding Goodwill and Intangible Assets \| Geographic Concentration Risk \| All other countries
Concentration Risk [Line Items]
Concentration risk (as a percent)									23.00%	18.00%

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 10,607	$ 9,549
Less: accumulated depreciation and amortization	(7,778)	(6,056)
Total property and equipment, net	2,829	3,493
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	2,612	2,554
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	3,657	3,384
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	3,610	2,902
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 728	$ 709

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 123,548	$ 115,632
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Goodwill	123,548	115,632
Amortization of intangible assets	16,992	13,547	$ 7,505
Acquisition-Related Costs and Expenses
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Amortization of intangible assets	$ 17,000	$ 13,500	$ 7,500
Minimum
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Estimated useful lives of intangible assets (in years)	3 years
Maximum
Disclosure - Goodwill and Intangible Assets - Additional Information (Detail) [Line Items]
Estimated useful lives of intangible assets (in years)	7 years

- Definition

+ References + Details

BUSINESS COMBINATIONS - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	4 years 8 months 12 days	4 years 8 months 12 days
Covenants not to compete
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	3 years	3 years
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 name
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	5 years
Amount assigned	$ 370
HooYu
Acquired Indefinite-lived Intangible Assets [Line Items]
Amount assigned	$ 73,100
HooYu \| Completed technologies
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	7 years
Amount assigned	$ 61,400
HooYu \| Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	5 years
Amount assigned	$ 5,000
HooYu \| Trade name
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	5 years
Amount assigned	$ 6,100
HooYu \| Covenants not to compete
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization Period	3 years
Amount assigned	$ 600

INVESTMENTS - Summary of Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Measurement Input, Weighted-Average Cost Of Capital
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Business combination, contingent consideration, liability, measurement input	0.1480
Measurement Input, Revenue Weight-Average Cost Of Capital
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Business combination, contingent consideration, liability, measurement input	0.0440
Measurement Input, Revenue Volatility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Business combination, contingent consideration, liability, measurement input	0.20
Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Acquisition-related contingent consideration	$ 5,920

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 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.
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, standalone selling price related to revenue recognition, contingent consideration, and income taxes.
Revenue Recognition	Revenue Recognition The Company generates revenue primarily from the delivery of licenses and related services to customers (for both on premise and software as a service (“SaaS”) products), as well as the delivery of hardware and professional services. Consistent with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determined revenue recognition through the following steps: 1.Identification of the contract, or contracts, with a customer 2.Identification of the performance obligations in the contract 3.Determination of the transaction price 4.Allocation of the transaction price to the performance obligations in the contract 5.Recognition of revenue when, or as, performance obligations are satisfied Note 2 describes the nature of the Company’s primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions the Company enters into with its customers. Contract Balances: The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to the right to invoice, or deferred revenue when revenue is recognized subsequent to invoicing. The Company records an unbilled receivable when revenue is recognized and it has an unconditional right to invoice and receive payment. The Company reports net contract asset or liability positions on a customer-by-customer basis at the end of each reporting period. Unbilled receivables are included within accounts receivable on the consolidated balance sheets and were $0.9 million and $1.7 million as of September 30, 2023 and 2022, respectively. Contract Costs: The Company incurs incremental costs to obtain a contract, consisting primarily of sales commissions, which are payable 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. Cost of Revenue: Cost of revenue includes personnel costs related to billable services and software support, direct costs associated with our hardware products and hosting costs. Depreciation and amortization that are excluded from cost of revenue are included in research and development and selling and marketing on the consolidated statement of operations and other comprehensive income (loss). 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. Software is typically sold as a time-based license with a term of one to three years. 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 at a point in time upon shipment and after evidence of a contract exists. Services and Other Services and other revenue is generated from the sale of software as a service (“SaaS”) products and services, maintenance associated with the sale of on premise software licenses and consulting and professional services. The Company’s SaaS offerings give customers the option to be charged upon their incurred usage in arrears (“Pay as You Go”), or commit to a minimum spend over their contracted period, with the ability to purchase unlimited additional transactions above the minimum during the contract term. Revenue related to Pay as You Go contracts are recognized based on the customer’s actual usage, in the period of usage. For contracts which include a minimum commitment, the Company is standing ready to provide as many transactions as desired by the customer throughout the contract term, and revenue is recognized on a ratable basis over the contract period including an estimate of usage above the minimum commitment. Usage above minimum commitment is estimated by looking at historical usage, expected volume, and other factors to project out for the remainder of the contract term. The estimated usage-based revenues are constrained to the amount the Company expects to be entitled to receive in exchange for providing access to its platform. If professional services are deemed to be distinct, revenue is recognized as services are performed. 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, variable consideration will only be included in the transaction price to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. 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 or due to uncertainty surrounding collectability. The Company estimates variable consideration in its contracts primarily using the expected value method as the Company believes this method represents the most appropriate estimate for this consideration, based on historical usage trends, the individual contract considerations, and its best judgment at the time. 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 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 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. Contract assets reported within a separate line in current assets and the other non-current assets line in the consolidated balance sheets, primarily result from when the right to consideration is conditional upon factors other than the passage of time. Contract liabilities primarily relate to advance consideration received from customers (deferred revenue), for which transfer of control occurs, and therefore revenue is recognized as services are provided. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. Contract Costs Contract 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)
Restructuring Costs	Restructuring Costs Restructuring costs consist of employee severance obligations and other related costs.
Reclassifications	Reclassifications A reclassification has been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Accrued interest payable and income tax payables were included in the other current liabilities line in the consolidated balance sheet as of September 30, 2022, however, they have been presented separately in the consolidated balance sheet as of September 30, 2023 so that the total of the other current liabilities line is less than five percent of total current liabilities.
Net Income Per Share	Net Income Per Share The Company calculates net income per share in accordance with FASB ASC Topic 260, Earnings per Share. Basic net income per share is based on the weighted-average number of common shares outstanding during the period. Diluted net income 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. Cash and cash equivalents are maintained with various financial institutions.
Investments	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 their estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive loss, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other-than-temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations and other comprehensive income (loss) 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 Credit Losses	Accounts Receivable and Allowance for Credit Losses 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 credit losses 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.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, and accounts receivable. The Company maintains the majority of its cash and cash equivalent balances with financial institutions that management believes are high-credit, quality financial institutions and invests its cash equivalents in highly rated market funds.
Property and Equipment	Property and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are calculated using the straight-line method over estimated useful lives ranging from three to seven years. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the assets.
Leases	Leases The Company determines if an arrangement is a lease at inception in accordance with ASC Topic 842, Leases (“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. Right of use (“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 the 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 11 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. Operating lease expense is recognized on a straight-line basis over the lease term.
Long-Lived Assets	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 useful lives 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 assets are 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. Amortization expense of capitalized development costs is included in research and development in the consolidated statements of other comprehensive income (loss). For the twelve months ended September 30, 2023, 2022, and 2021, no software development costs were capitalized because the time period and costs 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, 2023, 2022, or 2021. Qualifying costs related to software acquired, developed, or modified solely to meet the Company’s 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 for impairment at least annually in its fiscal fourth quarter and more frequently if events or changes in circumstances occur that indicate a potential reduction in the fair value of its reporting unit and/or its indefinite-lived intangible asset below their respective carrying values. Examples of such events or circumstances include: a significant adverse change in legal factors or in the business climate, a significant decline in the Company’s stock price, a significant decline in the Company’s projected revenue or cash flows, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, or the presence of other indicators that would indicate a reduction in the fair value of a reporting unit. The Company’s goodwill is considered to be impaired if management determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds management’s estimate of its fair value. Based on the guidance provided by ASC 350 and ASC Topic 280, Segment Reporting, management has determined that the Company operates in one segment and consists of one reporting unit. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. Management determines the fair value of the reporting unit based on the income approach which requires significant judgments to be made about the future cash flows of that reporting unit, discount rates, and growth rates. The Company’s cash flow forecasts are based on assumptions that represent the highest and best use for the Company’s reporting units. In the fourth quarter of fiscal 2023, management completed its annual goodwill impairment test and concluded that the Company’s goodwill was not impaired. 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 group 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
Other Borrowings	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”) in 2017. 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 8 for additional details. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 8 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 based on the fair value assigned to RSUs which is based on the closing stock price of its common stock, par value $0.001 (“Common Stock”) on the date of grant. 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 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 Expense Advertising 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, 2023, management determined that the Company has only one operating segment: the development, sale, and service of proprietary software solutions related to mobile imaging. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net income, unrealized gains and losses on available-for-sale securities, and foreign currency translation adjustments.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements The Company did not adopt any new accounting pronouncements in the twelve months ended September 30, 2023. Recently Issued Accounting Pronouncements In December 2023, the FASB issued an Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures and expects. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) and also issued subsequent amendments to the initial guidance (collectively, Topic 848). Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. The Company will adopt Topic 848 when the relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 will have a material impact on the consolidated financial statements. No other new accounting pronouncement issued or effective during the twelve months ended September 30, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements.
Fair Value Measurements and Disclosures	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. Level 1: Includes investments in U.S. Government and agency securities, which are valued based on recently executed transactions in the same or similar securities. •Level 2: Convertible Senior Notes and corporate debt securities. Corporate debt securities are valued using 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. On February 5, 2021, the Company issued the 2026 Notes as further described in Note 9. Concurrently with the issuance of the 2026 Notes, the Company entered into the Notes Hedge and Warrant Transactions which in combination are intended to reduce the potential dilution from the conversion of the 2026 Notes (see Note 9). The fair value of the Notes Hedge and the embedded conversion derivative were estimated using a Black-Scholes model. Based on the fair value hierarchy, the Company classified the Notes Hedge and the embedded conversion derivative as Level 2 as significant inputs are observable, either directly or indirectly. The significant inputs and assumptions used in the models to calculate the fair value of the derivatives include the Common Stock price, exercise price of the derivatives, risk-free interest rate, volatility, annual coupon rate and remaining contractual term.

INCOME TAXES - Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Domestic									$ 23,836	$ 11,483	$ 10,966
Foreign									(13,495)	(7,881)	(2,164)
Income before income taxes									10,341	3,602	8,802
Current:
Federal									(4,414)	(233)	0
State									(1,215)	(325)	(78)
Foreign									(1,023)	(1,800)	(1,119)
Total current provision for income taxes									(6,652)	(2,358)	(1,197)
Deferred:
Federal									(659)	(1,400)	(1,387)
State									819	513	457
Foreign									4,178	3,337	1,303
Total deferred provision for income taxes									4,338	2,450	373
Total tax benefit (expense)	$ 2,123	$ (783)	$ (1,808)	$ (1,846)	$ (976)	$ 880	$ 20	$ 168	$ (2,314)	$ 92	$ (824)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net income	$ 8,027	$ 3,694	$ 7,978
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	10,463	13,346	11,532
Amortization of intangible assets	16,992	13,547	7,505
Depreciation and amortization	1,727	1,401	1,439
Amortization of investment premiums & other	(722)	1,684	1,266
Accretion and amortization on debt securities	7,546	7,053	4,372
Net changes in estimated fair value of acquisition-related contingent consideration	2,056	(1,358)	1,080
Deferred taxes	(5,496)	(8,988)	105
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	4,316	(19,004)	(813)
Contract assets	(12,471)	(3,095)	1,150
Other assets	(1,124)	417	(1,331)
Accounts payable	2,535	2,183	(1,589)
Accrued payroll and related taxes	18	(2,195)	2,687
Income taxes payable	5,577	422	(71)
Deferred revenue	(5,217)	9,950	1,790
Restructuring accrual	(977)	991	0
Other liabilities	(1,664)	1,071	241
Net cash provided by operating activities	31,586	21,119	37,341
Investing activities:
Purchases of investments	(71,733)	(47,818)	(246,508)
Sales and maturities of investments	66,250	173,316	89,956
Acquisitions, net of cash acquired	(267)	(122,672)	(12,549)
Purchases of property and equipment, net	(1,034)	(1,126)	(1,387)
Net cash provided by (used in) investing activities	(6,784)	1,700	(170,488)
Financing activities:
Proceeds from the issuance of convertible senior notes	0	0	155,250
Payment for convertible senior notes issuance costs	0	0	(5,513)
Purchase of 2026 convertible senior notes hedge	0	0	(33,192)
Proceeds from issuance of convertible senior notes warrants	0	0	23,909
Proceeds from the issuance of equity plan common stock	1,737	1,725	4,035
Repurchases and retirements of common stock	0	(15,176)	(190)
Payment of acquisition-related contingent consideration	0	(7,656)	(782)
Proceeds from other borrowings	0	0	251
Principal payments on other borrowings	(36)	(36)	(88)
Net cash provided by (used in) financing activities	1,701	(21,143)	143,680
Foreign currency effect on cash and cash equivalents	351	71	(207)
Net increase in cash and cash equivalents	26,854	1,747	10,326
Cash and cash equivalents at beginning of period	32,059	30,312	19,986
Cash and cash equivalents at end of period	58,913	32,059	30,312
Supplemental disclosures of cash flow information:
Cash paid for interest	1,413	1,164	569
Cash paid for income taxes	3,836	750	741
Supplemental disclosures of non-cash investing and financing activities:
Reclassification of convertible senior notes hedge and embedded conversion derivative to additional paid-in capital	0	28,516	0
Acquisition-related shares issued	0	1,836	0
Unrealized holding gain (loss) on available-for-sale investments	$ 889	$ 283	$ (165)

BUSINESS COMBINATIONS - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Goodwill	$ 123,548	$ 115,632
ID R&D
Business Acquisition [Line Items]
Accounts receivable	173
Property, plant, and equipment	114
Other current assets	147
Intangible assets	16,930
Goodwill	27,748
Current liabilities	(425)
Deferred revenue	0
Deferred income tax liabilities	(2,355)
Net assets acquired	42,332
HooYu
Business Acquisition [Line Items]
Accounts receivable	1,234
Property, plant, and equipment	504
Other current assets	630
Intangible assets	73,100
Goodwill	74,206
Current liabilities	(2,264)
Deferred revenue	(2,612)
Deferred income tax liabilities	(16,896)
Net assets acquired	$ 127,902

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 32,132				$ 35,922				$ 32,132	$ 35,922
Contract assets, current portion	18,355				7,037				18,355	7,037
Prepaid expenses	3,513				1,946				3,513	1,946
Goodwill	123,548				115,632				123,548	115,632
Deferred income tax assets	11,645				10,110				11,645	10,110
Total assets	405,375				364,479				405,375	364,479
Income tax payables	4,329				206				4,329	206
Other current liabilities	1,482				2,402				1,482	2,402
Deferred revenue, current portion	17,360				21,350				17,360	21,350
Deferred income tax liabilities	6,476				9,578				6,476	9,578
Total liabilities	200,187				193,500				200,187	193,500
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	144,804	$ 119,797
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net					27,874					27,874
Contract assets, current portion					6,273					6,273
Prepaid expenses					2,000					2,000
Goodwill					120,186					120,186
Deferred income tax assets					10,245					10,245
Total assets					360,410					360,410
Income tax payables					194					194
Other current liabilities					2,409					2,409
Deferred revenue, current portion					13,394					13,394
Deferred income tax liabilities					14,132					14,132
Total liabilities					190,093					190,093
Revenue										143,943
Total Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net					8,048					8,048
Contract assets, current portion					764					764
Prepaid expenses					(54)					(54)
Goodwill					(4,554)					(4,554)
Deferred income tax assets					(135)					(135)
Total assets					4,069					4,069
Income tax payables					12					12
Other current liabilities					(7)					(7)
Deferred revenue, current portion					7,956					7,956
Deferred income tax liabilities					(4,554)					(4,554)
Total liabilities					$ 3,407					3,407
Revenue										$ 861

STOCKHOLDERS’ EQUITY - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 10,463	$ 13,346	$ 11,532
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	468	289	339
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	3,023	4,383	3,399
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	2,757	3,701	3,218
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense included in expenses	$ 4,215	$ 4,973	$ 4,576

SUBSEQUENT EVENTS (Details) - Revolving Credit Facility - Subsequent Event	Feb. 13, 2024 USD ($)
SOFR
Subsequent Event [Line Items]
Unused revolving line facility fee (as a percent)	0.25%
Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 35,000,000
Additional value, line of credit facility, maximum borrowing capacity	15,000,000
Indebtedness amount	500,000
Line of Credit \| SOFR
Subsequent Event [Line Items]
Commitment fees	$ 87,500
Domestic Letter Of Credit
Subsequent Event [Line Items]
Cash deposit, percentage	105.00%
Foreign Letter Of Credit
Subsequent Event [Line Items]
Cash deposit, percentage	115.00%

GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Indefinite-lived Intangible Assets [Line Items]
Cost	$ 128,617	$ 128,617
Accumulated Amortization	63,943	52,861
Total	$ 64,674	$ 75,756
Completed technologies
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	6 years 10 months 24 days	6 years 10 months 24 days
Cost	$ 95,761	$ 95,761
Accumulated Amortization	39,254	32,265
Total	$ 56,507	$ 63,496
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	4 years 8 months 12 days	4 years 8 months 12 days
Cost	$ 25,168	$ 25,168
Accumulated Amortization	21,396	18,241
Total	$ 3,772	$ 6,927
Trade names
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	5 years	5 years
Cost	$ 7,088	$ 7,088
Accumulated Amortization	2,967	2,174
Total	$ 4,121	$ 4,914
Covenants not to compete
Indefinite-lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	3 years	3 years
Cost	$ 600	$ 600
Accumulated Amortization	326	181
Total	$ 274	$ 419

RESTRUCTURING

12 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING

4. RESTRUCTURING

In order to streamline the organization and focus resources going forward, the Company undertook strategic restructurings in June and November 2022, which included reductions in workforce. Restructuring costs consist of employee severance obligations and other related costs. The following table summarizes changes in the restructuring accrual during the twelve months ended September 30, 2023 (amounts in thousands):


Balance at September 30, 2022	$	901
Additional costs incurred	2,109

Payments	(3,070)
Foreign currency effect on the restructuring accrual	60
Balance at September 30, 2023	$	—

REVENUE CONCENTRATION (Tables)

12 Months Ended

Sep. 30, 2023

Risks and Uncertainties [Abstract]

Schedule of Revenue from External Customers by Geographic Areas

Revenue for the twelve months ended September 30, 2023, 2022, and 2021 were as follows (amounts in thousands):


	Twelve Months Ended September 30,
	2023		2022		2021
United States	$	134,957	$	113,499	$	92,832
All other countries	37,595		31,305		26,965
Total revenue	$	172,552	$	144,804	$	119,797

INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Benefit (Provision)

Income before income taxes for the twelve months ended September 30, 2023, 2022, and 2021 is comprised of the following (amounts in thousands):


	2023		2022		2021
Domestic	$	23,836	$	11,483	$	10,966
Foreign	(13,495)		(7,881)		(2,164)
Total	$	10,341	$	3,602	$	8,802

For the twelve months ended September 30, 2023, 2022, and 2021 the income tax benefit (provision) was as follows (amounts in thousands):


	2023		2022		2021
Current:
Federal	$	(4,414)	$	(233)	$	—
State	(1,215)		(325)		(78)
Foreign	(1,023)		(1,800)		(1,119)
Total current provision for income taxes	(6,652)		(2,358)		(1,197)
Deferred:
Federal	(659)		(1,400)		(1,387)
State	819		513		457
Foreign	4,178		3,337		1,303
Total deferred provision for income taxes	4,338		2,450		373
Total tax benefit (expense)	$	(2,314)	$	92	$	(824)

Schedule of Significant Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2023 and 2022 are as follows (amounts in thousands):


	2023		2022
Deferred tax assets:
Stock-based compensation	$	2,357	$	1,793
Net operating loss carryforwards	11,548		6,656
Research credit carryforwards	4,336		7,747
Lease liability	1,185		859
Intangibles	4,606		—
Other, net	852		1,117
Total deferred assets	24,884		18,172
Deferred tax liabilities:

Right of use asset	(1,032)		(633)
Intangibles	(15,914)		(14,139)

Total deferred liabilities	(16,946)		(14,772)
Valuation allowance for net deferred tax assets	(2,769)		(2,868)
Net deferred tax asset	$	5,169	$	532

Schedule of Income Taxes Computed Using Federal Income Tax Rate

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, 2023, 2022, and 2021 (amounts shown in thousands):


	2023		2022		2021
Amount computed using statutory rate	$	(2,172)	$	(756)	$	(1,849)
Net change in valuation allowance for net deferred tax assets	292		(1,702)		(19)
Other	(477)		1,605		—
Foreign rate differential	504		268		13
Non-deductible items	(14)		(64)		(141)
Transaction costs	—		(411)		—
State income tax	(100)		251		(276)


Research and development credits	791		1,166		1,248
Foreign income tax	—		—		(15)

Contingent consideration	(432)		285		—
Uncertain tax positions	(184)		(318)		—
Stock compensation, net	(522)		(232)		215
Income tax (provision) benefit	$	(2,314)	$	92	$	(824)

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, 2023, 2022, and 2021 (amounts shown in thousands):


	2023		2022		2021
Gross unrecognized tax benefits at the beginning of the year	$	2,664	$	2,114	$	1,810
Additions from tax positions taken in the current year	330		484		268
Additions from tax positions taken in prior years	—		66		36
Reductions from tax positions taken in prior years	(9)		—		—

Gross unrecognized tax benefits at end of the year	$	2,985	$	2,664	$	2,114

BUSINESS COMBINATIONS - Pro Forma Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Pro forma revenue	$ 149,679	$ 130,302
Pro forma net income (loss)	(6,683)	(8,516)
ID R&D
Business Acquisition [Line Items]
Revenue from business combinations	5,663	849
Net Income (loss)	(3,769)	(3,021)
HooYu
Business Acquisition [Line Items]
Revenue from business combinations	5,738
Net Income (loss)	$ (1,587)

LEASES (Tables)

12 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Lease Cost

The following table provides the components of lease cost recognized in the consolidated statements of operations and comprehensive income for the periods presented (amounts in thousands):


	Twelve Months Ended September 30,
	2023	2022
Operating lease cost	2,025	1,881
Variable lease cost	319	385
Total lease cost(1)	2,344	2,266

1.Short-term lease costs incurred by the Company for the twelve months ended September 30, 2023 and 2022 were immaterial.

Schedule of Assets And Liabilities, Lessee

Other information related to leases as of the balance sheet dates presented are as follows:


	Twelve Months Ended September 30,
	2023		2022
Weighted-average remaining lease term (years) - operating leases	4.3		4.5
Weighted-average discount rate - operating leases	3.7	%	3.5	%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of September 30, 2023 were as follows (amounts in thousands):


	Operating Leases1
2024	1,985
2025	713
2026	701
2027	616
2028	413
Thereafter	574
Total lease payments	5,002
Less: amount representing interest	$	(233)
Present value of future lease payments	$	4,769

1.Excludes approximately $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced.

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Legal Proceedings Claim Against ICAR On June 11, 2018, a claim was filed before Court of First Instance 5 (Juzgado de Primera Instancia) of Barcelona, Spain, the first instance court in the Spanish civil procedure system, against ICAR. The claim, also directed towards Mr. Xavier Codó Grasa, the former controlling shareholder of ICAR and its current General Manager at the time the claim was filed, was brought by the Spanish company Global Equity & Corporate Consulting, S.L. for an alleged breach by ICAR of a services agreement entered into in the context of the sale of all of the shares in ICAR to Mitek Holding B.V., a wholly owned subsidiary of the Company. ICAR responded to the claim on September 7, 2018. After several postponements as a consequence of the COVID-19 pandemic, on March 3, 2022 the trial was held. On June 7, 2022, the Court of First Instance 5 of Barcelona issued a judgment which fully upheld the claim and declared that Mr. Xavier Codó Grasa and ICAR had to pay the amount and damages claimed by Global Equity & Corporate Consulting, S.L. equal to €0.8 million (or $0.8 million as of September 30, 2023), plus the interest accrued and the legal fees. ICAR and Mr. Xavier Codó Grasa submitted an appeal against this judgment on July 13, 2022. Global Equity & Corporate Consulting, S.L. filed an opposition to that appeal on September 2, 2022. The next procedural step will be the voting and issuing of the ruling on the appeal. Global Equity & Corporate Consulting, S.L. requested the provisional enforcement of the judgment, asking ICAR and Mr. Xavier Codó Grasa to deposit the damages awarded plus 30% to cover the possible interests that may continue to accrue during the appeal (€1.1 million in total) with the Court. According 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. As a consequence, the escrow (€0.9 million) was released pursuant to the provisional enforcement of the judgment, and Mr. Xavier Codó Grasa deposited the remaining €0.2 million. Global Equity & Corporate Consulting, S.L. also requested that ICAR and Mr. Xavier Codó Grasa bear the costs of the provisional enforcement. This amounted to €16,475 for the accrued interests, and €10,995 as legal costs. ICAR and Mr. Xavier Codó Grasa have complied with this request, having such amounts charged to the damages deposited with the Court. Third-Party Claims Against the Company’s 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 nor at any 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 the Company’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 U.S. Patent No. 9,818,090 (“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 U.S. Patent Nos. 8,977,571 (“the ‘571 Patent”), 8,699,779 (“the ‘779 Patent”), or 9,336,517 (“the ‘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 (“the ‘432 Patent”) 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 Bank 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—the ’779 Patent and the ’571 Patent. 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 (“the ‘605 Patent”) and 10,013,681 (“the ‘681 Patent”) (the “Second PNC Lawsuit”). On July 7, 2021, USAA filed a third lawsuit against PNC Bank (the “Third PNC Lawsuit” and together with the First PNC Lawsuit and the Second PNC Lawsuit, the “PNC Lawsuits”) asserting infringement of U.S. Patents 10,769,598; 10,402,638; and 9,224,136. A jury trial was held in May 2022 on the consolidated First PNC Lawsuit and Second PNC Lawsuit. The jury found that PNC willfully infringed at least one patent claim and awarded USAA $218 million in damages. The Court denied PNC Bank’s equitable defenses and entered a Final Judgment in the consolidated First PNC Lawsuit and Second PNC Lawsuit on August 19, 2022. A jury trial was held in September 2022 on the Third PNC Lawsuit. The jury found that PNC infringed at least one patent claim and awarded USAA $4.3 million in damages. The Court entered a Final Judgment in the Third PNC Lawsuit on February 16, 2023. 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, the ’517 Patent, and 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 appealed the ruling on the motion to dismiss and the decision to transfer the declaratory judgment action from California to Texas to the U.S. Court of Appeals for the Federal Circuit. The Federal Circuit heard oral argument on the Company’s appeal on April 4, 2022 and on May 20 2022, issued an opinion vacating and remanding the district court’s order granting USAA’s motion to dismiss. On August 1, 2022, the parties submitted additional briefing to the district court in light of Federal Circuit’s opinion. The court held another hearing on USAA’s motion to dismiss the Company’s declaratory judgment action on jurisdictional grounds, and once again granted USAA’s motion to dismiss on February 23, 2023. The Company timely filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. The appeal is fully briefed, and the Company is awaiting oral argument. 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 each of 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. The Patent Office denied the requests for rehearing and for POP review. In September 2020, the Company filed an additional two petitions for IPR with the U.S. Patent & Trademark Office challenging the validity of the ‘681 Patent and the ‘605 Patent—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. On August 27, 2021, PNC filed two additional petitions for IPR challenging the validity of the ‘681 Patent and the ‘605 Patent. In October and November of 2021, PNC Bank filed four more petitions for IPR challenging the validity of the ‘638 Patent, the ‘136 Patent, and the ‘598 Patent. The Patent Office denied institution with respect to the petitions challenging the ‘432 Patent, the ‘605 Patent, the ‘681 Patent, and the ‘638 Patent, but instituted inter partes review on the petitions relating to the ‘779 Patent, the ‘571 Patent, the ‘559 Patent, and the ‘598 Patent—finding a reasonable likelihood that at least one challenged patent claim was invalid. The U.S. Patent & Trademark Office issued a final written decision in each of the IPRs challenging the ‘779 Patent, the ‘571 Patent, and the ‘559 Patent and found all challenged claims of each patent unpatentable. USAA filed requests for rehearing and requests for POP review. The requests for POP review and for rehearing were denied in March 2023. 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 PNC Lawsuits. While the Company’s IPR petitions were mentioned in the complaint, the Company was not named as a defendant or mentioned in connection with any alleged infringement. BBVA then sent the Company an indemnification demand on September 7, 2021. For the same reasons discussed above in connection with PNC Bank and PNC Lawsuits, the Company does not believe it is obligated to indemnify BBVA. On June 6, 2022, the Court granted the parties’ request to administratively close the case and stay all deadlines in view of the pending appeal in the PNC Lawsuits. On July 29, 2022, USAA filed another patent infringement lawsuit against Truist Bank (“Truist”) in the Eastern District of Texas. The lawsuit alleges infringement of the ’090 Patent, the ’432 Patent, and the U.S. Patent No. 11,182,753 (“the ’753 Patent”). The Company was not named as a defendant or mentioned in connection with any alleged infringement. On October 5, 2022, Truist’s integration partner, NCR Corporation, sent an indemnification demand to the Company requesting indemnification from all claims related to the lawsuit. For the same reasons discussed above in connection with the PNC Lawsuits, 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 October 7, 2022, Truist filed a motion to transfer venue to the Western District of North Carolina. The motion was denied on April 8, 2023. On December 30, 2022, Truist filed a motion for leave to file counterclaims against USAA alleging patent infringement of U.S. Patent Nos. 7,336,813; 7,519,214; 8,136,721; and 9,760,797, which was granted on April 8, 2023. On March 13, 2023, USAA moved for leave to file a First Amended Complaint, adding an additional allegation of patent infringement of U.S. Patent No. 11,544,944 (“the ’944 Patent”). On April 4, 2023, Truist sent another indemnification demand to the Company requesting indemnification related to the lawsuit. On May 3, 2023, USAA moved for leave to file a Second Amended Complaint, adding an additional allegation of patent infringement of U.S. Patent No. 11,625,770 (“the ’770 Patent”). On May 30, 2023, Truist sent another indemnification demand to the Company requesting indemnification related to the Second Amended Complaint. On October 6, 2023, the parties filed a Notice of Settlement and Joint Motion and Stipulation of Dismissal. All claims and causes of actions between the parties were dismissed with prejudice on October 10, 2023 in view of the settlement. In October and November of 2022, Truist filed a petition for IPR with the U.S. Patent & Trademark Office challenging the validity of the ’090 Patent, the ’432 Patent, and the ’753 Patent. The Patent Office instituted the petitions directed to the ’090 and ’753 Patents, but denied institution of the petition directed to the ’432 Patent. In view of the settlement between USAA and Truist, the IPRs were withdrawn. The Company incurred legal fees of $1.4 million in the fiscal year ended September 30, 2023 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 did not assert any cross-claims. The Company filed a motion for summary judgment which was heard on April 15, 2022. The Court granted the Company’s motion and on June 2, 2022, entered a judgment in favor of the Company for $1.7 million in compensatory damages, plus costs, including attorney’s fees. The Court awarded the Company $2,600 in costs plus $0.6 million in attorneys’ fees for a total judgment of $2.3 million. The time for UrbanFT to appeal the $1.7 million in compensatory damage judgment has expired but the time for UrbanFT to appeal the attorneys’ fee and cost award has not. No appeal has been filed. On August 2, 2023, the Company filed a separate lawsuit against Richard Steggall, UFT (North America), LLC fka Urban FT LLC; Urban FT Group, Inc; Urban FT Client Solutions, LLC; UFT Professional Services, LLC; and X-35 Financial Technologies, in the San Diego Superior Court, (case No. 37-2023-00033005-CU-FR-CTL) (“Fraud Conveyance Action”). The Fraud Conveyance Action alleges that the Mr. Steggall orchestrated a scheme to strip UFT (North America), LLC of any assets and effectively transfer the Urban FT business to other entities he owns and controls, all to avoid the Company’s collection efforts. The Fraud Conveyance Action also alleges that Mr. Steggall funnels Urban FT’s revenues through a web of other entities he owns and controls, all to ensure that creditors, including the Company, cannot collect their debts. The parties have started discovery. On February 23, 2024, the Court set the Fraud Conveyance Action for trial on March 14, 2025. Separately, the Company filed two motions to compel discovery set for April 12, 2024. The defendants have filed a motion to quash the Company’s subpoena to Chase Bank and the defendants filed an Order to Show Cause to hold the Company in contempt for violating the parties’ Protective Order. The Company anticipates filing its own motion for sanctions against defendants for their frivolous contempt motion. Claim Against Maplebear, Inc (dba Instacart): On December 13, 2021, Mitek filed a lawsuit against Maplebear Inc., d/b/a Instacart (“Instacart”), in California Superior Court – San Diego County (Case No, 37-2021-00052089-CU-BC-CTL) (the “Instacart Lawsuit”). Mitek alleged causes of action for breach of contract as well as breach of the implied covenant and requested over $2.0 million in damages. On August, 3, 2018 Instacart entered into a Master Services Agreement (the “Master Services Agreement”) with Mitek agreeing to purchase a subscription to Mitek’s Mobile Verify Advanced service. On June 19, 2020, the parties entered into a second Order Form in connection with the Master Services Agreement. The Order Form had a term of June 18, 2020 to December 31, 2023 and called for an annual commitment of $1.2 million. On September 23, 2021, Instacart sent a letter to Mitek purporting to outline breaches under the Master Services Agreement. Mitek responded on November 11, 2021, refuting Instacart’s claims and offering to engage in further discussions. Instacart thereafter sent a Notice of Termination of the Master Services Agreement dated November 24, 2021. The Parties participated in mediation on March 15, 2022. The mediation did not result in the resolution of the case and, following mediation, the Parties stipulated that Instacart’s response to Mitek’s complaint would be due on April 27, 2022. In lieu of filing a response to the complaint, Instacart elected to file a Motion to Transfer Venue to the County of San Francisco, which the Court denied, thereby keeping the case in the County of San Diego. On November 28, 2022, Instacart filed a cross-complaint against Mitek alleging: (1) Fraudulent Inducement; (2) Intentional Misrepresentation; (3) False Advertising; (4) Fraudulent Business Practices; (5) Unlawful Business Practices; (6) Unfair Business Practices; (7) Breach of Contract; and (8) Breach of the Implied Covenant of Good Faith and Fair Dealing. On January 27, 2023, Mitek filed a demurrer to the cross-complaint (the functional equivalent of a motion to dismiss). Both Parties also filed motions to compel further responses to written discovery requests. The Court did not decide the demurrer or the motions to compel before the Parties resolved and dismissed the case. On September 29, 2023, the Parties reached an agreement to resolve the case. The terms of the settlement were completed and, on October 24, 2023, the Company filed a Request for Dismissal, signed by counsel for both parties and asking the clerk of the Court to dismiss the Company’s complaint and causes of action as well as Instacart’s cross-complaint and causes of action. The Court entered the Request for Dismissal on October 24, 2023 and dismissed the Parties’ respective claims with prejudice. Biometric Information Privacy Act Claims On December 16, 2021, the Company was sued in a putative class action in the Circuit Court of Cook County, Illinois alleging that the Company had violated the Illinois Biometric Information Privacy Act (“BIPA”) with respect to identity verification services that the Company provided to its customer HyreCar, Inc. (“HyreCar”) for HyreCar’s customers in Illinois (the “BIPA Lawsuit”). Plaintiff claimed that the Company had not obtained the required consent to collect and use Plaintiff’s biometric information, and that Plaintiff and a class of similarly situated individuals therefore are entitled to statutory damages under BIPA. The Company removed the BIPA Lawsuit to the U.S. District Court for the Northern District of Illinois, and on March 4, 2022 the Company filed a Motion to Compel Arbitration based on HyreCar’s terms and conditions requiring HyreCar customers to arbitrate on an individual (non-class) basis (the “Arbitration Motion”). On May 4, 2022 the trial court denied the Arbitration Motion. On December 21, 2022, the trial court’s ruling was upheld on appeal, and the case subsequently was remanded back to the trial court. On March 10, 2023, Plaintiff filed an Amended Complaint adding a second named plaintiff, who is also HyreCar end-user, but otherwise not materially changing the allegations. On March 27, 2023, the Company filed a Motion to Dismiss or, in the Alternative, to Strike Class Allegations. On May 11, 2023, and after the Company’s Motion to Dismiss or, in the Alternative, to Strike Class Allegations had been fully briefed, Plaintiffs filed a Motion for Leave to File a Second Amended Complaint seeking to add two new named plaintiffs, who are end-users of the Company’s customers Instacart and Roadie, and to remove one named plaintiff. The Company opposed the Motion for Leave. On September 13, 2023, Plaintiffs filed a Notice of Voluntary Dismissal. On September 14, 2023, the Court dismissed the lawsuit without prejudice, ending the litigation. 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 $0.5 million, $0.7 million, and $0.7 million for the twelve months ended September 30, 2023, 2022, and 2021, respectively.

STOCKHOLDERS’ EQUITY - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Number of Shares
Outstanding, beginning balance (in shares)	781,092	816,717	1,162,505
Granted (in shares)	0	0	0
Exercised (in shares)	(98,952)	(35,625)	(329,878)
Canceled (in shares)	(30,871)	0	(15,910)
Outstanding, ending balance (in shares)	651,269	781,092	816,717	1,162,505
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 7.46	$ 7.42	$ 7.51
Granted (in dollars per share)	0	0	0
Exercised (in dollars per share)	7.44	6.68	7.63
Canceled (in dollars per share)	9.49	0	9.41
Outstanding, ending balance (in dollars per share)	$ 7.37	$ 7.46	$ 7.42	$ 7.51
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract]
Vested and expected to vest (in shares)	651,269
Exercisable (in shares)	647,884
Vested and expected to vest, weighted-average exercise price (in dollars per share)	$ 7.37
Exercisable, weighted-average exercise price (in dollars per share)	$ 7.35
Outstanding, weighted-average remaining contractual terms (in years)	3 years 7 months 6 days	3 years 8 months 12 days	5 years 9 months 18 days	6 years 1 month 6 days
Vested and expected to vest, weighted-average remaining contractual term (in years)	3 years 7 months 6 days
Exercisable, weighted-average remaining contractual term (in years)	3 years 7 months 6 days
Outstanding, aggregate intrinsic value	$ 2,185	$ 1,512	$ 9,046	$ 6,081
Exercised, aggregate intrinsic value	338	$ 279	$ 2,670
Vested and expected to vest, aggregate intrinsic value	2,185
Exercisable, aggregate intrinsic value	$ 2,181

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Total revenue	$ 172,552	$ 144,804	$ 119,797
Operating costs and expenses
Selling and marketing	40,551	38,841	32,497
Research and development	28,988	30,192	28,042
General and administrative	43,338	26,591	22,490
Amortization and acquisition-related costs	19,046	15,172	8,951
Restructuring costs	2,114	1,800	0
Total operating costs and expenses	156,988	132,604	106,520
Operating income	15,564	12,200	13,277
Interest expense	9,063	8,232	5,129
Other income (expense), net	3,840	(366)	654
Income before income taxes	10,341	3,602	8,802
Income tax benefit (provision)	(2,314)	92	(824)
Net income	$ 8,027	$ 3,694	$ 7,978
Net income per share—basic (in dollars per share)	$ 0.18	$ 0.08	$ 0.18
Net income per share—diluted (in dollars per share)	$ 0.17	$ 0.08	$ 0.18
Shares used in calculating net income per share—basic (in shares)	45,533	44,595	43,509
Shares used in calculating net income per share—diluted (in shares)	46,461	45,780	45,083
Comprehensive income (loss)
Net income	$ 8,027	$ 3,694	$ 7,978
Foreign currency translation adjustment	13,093	(27,559)	(455)
Unrealized gain (loss) on investments	889	283	(165)
Other comprehensive income (loss)	13,982	(27,276)	(620)
Comprehensive income (loss)	22,009	(23,582)	7,358
Software and hardware
Total revenue	88,374	72,928	60,069
Operating costs and expenses
Cost of revenue	1,413	1,576	2,468
Services and other
Total revenue	84,178	71,876	59,728
Operating costs and expenses
Cost of revenue	$ 21,538	$ 18,432	$ 12,072

STOCKHOLDERS’ EQUITY - Narrative (Details)		12 Months Ended
STOCKHOLDERS’ EQUITY - Narrative (Details)	Nov. 06, 2018 $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) shares	Oct. 02, 2023 shares	Oct. 22, 2021 shares	Jun. 15, 2021 USD ($)	Sep. 30, 2020 shares	Jan. 31, 2020 shares	Feb. 28, 2019	Oct. 23, 2018 $ / right $ / shares shares	Mar. 07, 2018 shares	Mar. 10, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)		0	0	0
Unrecognized compensation expense related to options outstanding \| $		$ 20,300,000
Weighted average period for unrecognized compensation expense expected to be recognized		2 years 3 months 18 days
Options to purchase common stock outstanding (in shares)		651,269	781,092	816,717				1,162,505
Recognized compensation expense \| $		$ 10,463,000	$ 13,346,000	$ 11,532,000
Amount authorized under share repurchase program \| $							$ 15,000,000
Amount of shares repurchased \| $			$ 14,800,000
Number of shares repurchased (in shares)			886,204
Average price of shares repurchased (in dollars per share) \| $ / shares			$ 16.73
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%
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
Preferred stock, number of rights expired, redeemed or exchanged (in shares)						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 6 months
Awards outstanding (in shares)		2,188,296	2,441,677	2,411,267				2,661,943
Recognized compensation expense \| $		$ 7,100,000	$ 9,400,000	$ 8,100,000
Unrecognized compensation expense \| $		$ 16,700,000
Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized		1 year 8 months 12 days
Awards outstanding (in shares)		730,393	919,456	528,724				353,556
Recognized compensation expense \| $		$ 2,700,000	$ 3,000,000	$ 1,300,000
Unrecognized compensation expense \| $		$ 3,400,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized compensation expense expected to be recognized		1 month 6 days
Recognized compensation expense \| $		$ 400,000	500,000	700,000
Unrecognized compensation expense related to options outstanding \| $		9,000
Performance Options \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock reserved for future grants (in shares)	800,000
Recognized compensation expense \| $		$ 0	100,000	800,000
Exercise price per share (in dollars per share) \| $ / shares	$ 9.50
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)		1,425,042
2020 Plan \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)					5,108,000
2020 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		1,834,474
2020 Plan \| Performance RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		730,393
Prior Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)									107,903
Options to purchase common stock outstanding (in shares)		434,090
Prior Plans \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		94,309
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)		270,876
Issuance of common stock under employee stock purchase plan (in shares)		729,124
Discount rate from market price offering date		15.00%
Recognized compensation expense \| $		$ 300,000	$ 400,000	$ 600,000
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)		0
Director Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase common stock outstanding (in shares)		259,513

REVENUE RECOGNITION - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	$ 39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	$ 144,804	$ 119,797
Deposits revenue
Disaggregation of Revenue [Line Items]
Revenue									104,134	86,561	75,517
Deposits software and hardware \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue									78,212	64,548	55,129
Deposits services and other \| Transferred Over Time
Disaggregation of Revenue [Line Items]
Revenue									25,922	22,013	20,388
Identity verification revenue
Disaggregation of Revenue [Line Items]
Revenue									68,418	58,243	44,280
Identity verification software and hardware \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue									10,162	8,380	4,940
Identity verification services and other \| Transferred Over Time
Disaggregation of Revenue [Line Items]
Revenue									$ 58,256	$ 49,863	$ 39,340

STOCKHOLDERS’ EQUITY (Tables)

12 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of 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, 2023, 2022, and 2021, which were allocated as follows (amounts in thousands):


	2023		2022		2021
Cost of revenue	$	468	$	289	$	339
Selling and marketing	3,023		4,383		3,399
Research and development	2,757		3,701		3,218
General and administrative	4,215		4,973		4,576
Stock-based compensation expense included in expenses	$	10,463	$	13,346	$	11,532

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at September 30, 2020	1,162,505	$	7.51	6.1	$	6,081
Granted	—	$	—
Exercised	(329,878)	$	7.63		$	2,670
Canceled	(15,910)	$	9.41
Outstanding at September 30, 2021	816,717	$	7.42	5.8	$	9,046
Granted	—	$	—
Exercised	(35,625)	$	6.68		$	279
Canceled	—	$	—
Outstanding at September 30, 2022	781,092	$	7.46	3.7	$	1,512
Granted	—	$	—
Exercised	(98,952)	$	7.44		$	338
Canceled	(30,871)	$	9.49
Outstanding at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Vested and Expected to Vest at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Exercisable at September 30, 2023	647,884	$	7.35	3.6	$	2,181

Schedule of RSU Activity

The following table summarizes RSU activity under the Company’s equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Fair Value Per Share
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
Granted	1,272,917	$	14.43
Settled	(898,178)	$	9.57
Canceled	(344,329)	$	11.16
Outstanding at September 30, 2022	2,441,677	$	12.29
Granted	1,101,925	$	10.24
Settled	(665,635)	$	11.33
Canceled	(689,671)	$	12.49
Outstanding at September 30, 2023	2,188,296	$	11.49

Schedule of Performance RSU Activity

The following table summarizes Performance RSU activity under the Company’s equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Fair Market Value Per Share
Outstanding at September 30, 2020	353,556	$	6.06
Granted	284,765	$	11.84
Settled	(90,345)	$	6.06
Canceled	(19,252)	$	6.06
Outstanding at September 30, 2021	528,724	$	9.17
Granted	629,279	$	15.60
Settled	(176,864)	$	8.42
Canceled	(61,683)	$	13.51
Outstanding at September 30, 2022	919,456	$	13.43
Granted	325,837	$	10.23
Settled	(27,245)	$	9.25
Canceled	(487,655)	$	11.61
Outstanding at September 30, 2023	730,393	$	13.37

INVESTMENTS (Tables)

12 Months Ended

Sep. 30, 2023

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, 2023 and 2022, respectively (amounts in thousands):


September 30, 2023:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	40,329	$	1	$	(76)	$	40,254


Corporate debt securities, short-term	34,545		—		(99)		34,446
U.S. Treasury, long-term	1,371		—		(67)		1,304


Total	$	76,245	$	1	$	(242)	$	76,004


September 30, 2022:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	6,016	$	—	$	(134)	$	5,882
Foreign government and agency securities, short-term	2,865		—		(38)		$	2,827
Commercial paper, short-term	18,245		—		(223)		18,022
Corporate debt securities, short-term	32,065		—		(528)		31,537
U.S. Treasury, long-term	3,431		—		(210)		3,221

Corporate debt securities, long-term	7,692		—		(280)		7,412
Total	$	70,314	$	—	$	(1,413)	$	68,901

Schedule of Fair Value of Investments Measured on Recurring Basis

The following tables represent the fair value hierarchy of the Company’s investments and acquisition-related contingent consideration as of September 30, 2023 and 2022, respectively (amounts in thousands):


September 30, 2023	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	$	40,254	$	40,254	$	—	$	—


Corporate debt securities	34,446		—		34,446		—
Total short-term investments at fair value	74,700		40,254		34,446		—
Long-term investments:
U.S. Treasury	1,304		1,304		—		—



Total long-term investments at fair value	1,304		1,304		—		—



Total assets at fair value	$	76,004	$	41,558	$	34,446	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	7,976	$	—	$	7,976	$	—



Total liabilities at fair value	$	7,976	$	—	$	7,976	$	—


September 30, 2022	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	$	5,882	$	5,882	$	—	$	—
Commercial paper	18,022		—		18,022		—
Foreign government and agency securities	2,827		—		2,827		—
Corporate debt securities	31,537		—		31,537		—
Total short-term investments at fair value	58,268		5,882		52,386		—
Long-term investments:
U.S. Treasury	3,221		3,221		—		—

Corporate debt securities	7,412		—		7,412		—
Total long-term investments at fair value	10,633		3,221		7,412		—



Total assets at fair value	$	68,901	$	9,103	$	59,798	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	5,920	$	—	$	—	$	5,920



Total liabilities at fair value	$	5,920	$	—	$	—	$	5,920

Schedule of Acquisition-related Contingent Consideration Measured at Fair Value

The following table includes a roll-forward of the contingent consideration liability during the twelve months ended September 30, 2023 (amounts in thousands):


Balance at September 30, 2022	$	5,920
Expenses recorded due to changes in fair value	2,056


Balance at September 30, 2023	$	7,976

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the quantitative information including the unobservable inputs related to our acquisition-related contingent consideration as of September 30, 2022 (amounts in thousands):


	Fair Value at September 30, 2022		Valuation Technique	Unobservable Input	Input Used
Acquisition-related contingent consideration	$	5,920	Monte Carlo simulation	Weighted-average cost of capital	14.80	%
				Revenue weight-average cost of capital	4.40	%
				Revenue volatility	0.20

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Mitek Systems, Inc. (“Mitek,” the “Company,” “we,” “us,” and “our”) 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 7,900 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 meet Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) regulatory compliance. The Company’s 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 numerous stages of the customer lifecycle, allowing them to reduce risk and meet regulatory requirements. The Company’s 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.

In May of 2021, Mitek acquired ID R&D, Inc. (“ID R&D” and such acquisition, the “ID R&D Acquisition”), an award-winning provider of AI-based voice and face biometrics and liveness detection. ID R&D delivers innovative, biometric capabilities that raise the bar on usability and performance. The ID R&D Acquisition helps simplify and secure the entire transaction lifecycle for both businesses and consumers, provides businesses and financial institutions with access to one authentication solution to deploy throughout the entire transaction cycle, and can provide consumers with a simple, intuitive approach to fighting fraud.

In March of 2022, Mitek acquired HooYu Ltd. (“HooYu”), a leading KYC technology provider in the United Kingdom. Such technology helps to ensure businesses know the true identity of their customers by linking biometric verification with real-time data aggregation across many different sources, including credit bureaus, international sanctions lists, local law-enforcement, and others.

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, typically provisioning Mitek services through their respective platforms.

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 gains resulting from foreign exchange translation of $13.1 million for the twelve months ended September 30, 2023. The Company recorded net losses resulting from foreign exchange translation of $27.6 million and $0.5 million for the twelve months ended September 30, 2022 and 2021, respectively.

Use of Estimates

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

Revenue Recognition

The Company generates revenue primarily from the delivery of licenses and related services to customers (for both on premise and software as a service (“SaaS”) products), as well as the delivery of hardware and professional services. Consistent with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determined revenue recognition through the following steps:

1.Identification of the contract, or contracts, with a customer

2.Identification of the performance obligations in the contract

3.Determination of the transaction price

4.Allocation of the transaction price to the performance obligations in the contract

5.Recognition of revenue when, or as, performance obligations are satisfied

Note 2 describes the nature of the Company’s primary types of revenue and the revenue recognition policies and significant payment terms as they pertain to the types of transactions the Company enters into with its customers.

Contract Balances: The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables (billed or unbilled), contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to the right to invoice, or deferred revenue when revenue is recognized subsequent to invoicing. The Company records an unbilled receivable when revenue is recognized and it has an unconditional right to invoice and receive payment. The Company reports net contract asset or liability positions on a customer-by-customer basis at the end of each reporting period. Unbilled receivables are included within accounts receivable on the consolidated balance sheets and were $0.9 million and $1.7 million as of September 30, 2023 and 2022, respectively.

Contract Costs: The Company incurs incremental costs to obtain a contract, consisting primarily of sales commissions, which are payable 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.

Cost of Revenue: Cost of revenue includes personnel costs related to billable services and software support, direct costs associated with our hardware products and hosting costs. Depreciation and amortization that are excluded from cost of revenue are included in research and development and selling and marketing on the consolidated statement of operations and other comprehensive income (loss).

Restructuring Costs

Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $2.1 million and $1.8 million for the twelve months ended September 30, 2023 and 2022, respectively. There were no restructuring costs for the twelve months ended September 30, 2021.

Reclassifications

A reclassification has been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Accrued interest payable and income tax payables were included in the other current liabilities line in the consolidated balance sheet as of September 30, 2022, however, they have been presented separately in the consolidated balance sheet as of September 30, 2023 so that the total of the other current liabilities line is less than five percent of total current liabilities.

Revision of Previously Reported Consolidated Financial Statements

In connection with the preparation of its consolidated financial statements for the twelve months ended September 30, 2023, the Company determined that its previously issued consolidated financial statements for the period ended September 30, 2022 contained errors in the application of GAAP. See Note 15 for further details.

Net Income Per Share

The Company calculates net income per share in accordance with FASB ASC Topic 260, Earnings per Share. Basic net income per share is based on the weighted-average number of common shares outstanding during the period. Diluted net income 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.


	2023	2022	2021
Stock options	437	506	543
RSUs	1,455	960	1,113
ESPP common stock equivalents	6	7	9
Performance options	755	623	272
Performance RSUs	268	281	104
Convertible senior notes	7,448	7,448	4,856
Warrants	7,448	7,448	4,856
Total potentially dilutive common shares outstanding	17,817	17,273	11,753

The calculation of basic and diluted net income per share for the twelve months ended September 30, 2023, 2022 and 2021, is as follows (amounts in thousands, except per share data):


	2023		2022		2021
Net income	$	8,027	$	3,694	$	7,978
Weighted-average shares outstanding—basic	45,533		44,595		43,509
Common stock equivalents	928		1,185		1,574
Weighted-average shares outstanding—diluted	46,461		45,780		45,083
Net income per share:
Basic	$	0.18	$	0.08	$	0.18
Diluted	$	0.17	$	0.08	$	0.18

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. Cash and cash equivalents are maintained with various financial institutions.

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 their estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive loss, a component of stockholders’ equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other-than-temporarily impaired. Impairments are considered to be other-than-temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before the recovery of its cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations and other comprehensive income (loss). No other-than-temporary impairment charges were recognized in the twelve months ended September 30, 2023, 2022, and 2021.

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 Credit Losses

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 credit losses are established based on various factors including credit profiles of the Company’s customers, contractual terms and conditions, historical payments, and current economic trends. The Company reviews its allowances by assessing individual accounts receivable over a specific aging and amount. Accounts receivable are written off on a case-by-case basis, net of any amounts that may be collected. The Company had $0.1 million of write-offs to the allowance for credit losses for the twelve months ended September 30, 2023, no write-offs for the twelve months ended September 30, 2022, and $0.1 million of write-offs for the September 30, 2021. The Company maintained an allowance for credit losses of $1.5 million and $0.9 million as of September 30, 2023 and 2022, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, and accounts receivable. The Company maintains the majority of its cash and cash equivalent balances with financial institutions that management believes are high-credit, quality financial institutions and invests its cash equivalents in highly rated market funds.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. The following is a summary of property and equipment as of September 30, 2023 and 2022 (amounts in thousands):


	2023		2022
Property and equipment—at cost:
Leasehold improvements	$	2,612	$	2,554
Machinery and equipment	3,657		3,384
Capitalized software development costs	3,610		2,902
Furniture and fixtures	728		709
	10,607		9,549
Less: accumulated depreciation and amortization	(7,778)		(6,056)
Total property and equipment, net	$	2,829	$	3,493

Depreciation and amortization of property and equipment are calculated using the straight-line method over estimated useful lives ranging from three to seven years. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the assets. Depreciation and amortization of property and equipment totaled $1.7 million, $1.4 million, and $1.4 million for the twelve months ended September 30, 2023, 2022, and 2021, respectively. Expenditures for repairs and maintenance are expensed when incurred. Total repairs and maintenance expenses were $0.1 million for each of the twelve months ended September 30, 2023, 2022, and 2021.

Leases

The Company determines if an arrangement is a lease at inception in accordance with ASC Topic 842, Leases (“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.

Right of use (“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 the 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 11 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. 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 useful lives 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 assets are 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 during the twelve months ended September 30, 2023, 2022, or 2021.

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. Amortization expense of capitalized development costs is included in research and development in the consolidated statements of other comprehensive income (loss). For the twelve months ended September 30, 2023, 2022, and 2021, no software development costs were capitalized because the time period and costs 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, 2023, 2022, or 2021.

Qualifying costs related to software acquired, developed, or modified solely to meet the Company’s 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 $0.7 million, $0.8 million, and $0.8 million of costs related to computer software developed for internal use during the twelve months ended September 30, 2023, 2022 and 2021, respectively. The Company recognized $0.7 million, $0.4 million and $0.3 million of amortization expense from internal use software during the twelve months ended September 30, 2023, 2022 and 2021, 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 for impairment at least annually in its fiscal fourth quarter and more frequently if events or changes in circumstances occur that indicate a potential reduction in the fair value of its reporting unit and/or its indefinite-lived intangible asset below their respective carrying values. Examples of such events or circumstances include: a significant adverse change in legal factors or in the business climate, a significant decline in the Company’s stock price, a significant decline in the Company’s projected revenue or cash flows, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, or the presence of other indicators that would indicate a reduction in the fair value of a reporting unit.

The Company’s goodwill is considered to be impaired if management determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds management’s estimate of its fair value. Based on the guidance provided by ASC 350 and ASC Topic 280, Segment Reporting, management has determined that the Company operates in one segment and consists of one reporting unit. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. Management determines the fair value of the reporting unit based on the income approach which requires significant judgments to be made about the future cash flows of that reporting unit, discount rates, and growth rates. The Company’s cash flow forecasts are based on assumptions that represent the highest and best use for the Company’s reporting units. In the fourth quarter of fiscal 2023, management completed its annual goodwill impairment test and concluded that the Company’s goodwill was not impaired.

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 group 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, 2023, 2022, or 2021.

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”) in 2017. These agreements have repayment periods of five to twelve years and bear no interest. As of September 30, 2023, $1.2 million, was outstanding under these agreements and approximately $0.2 million and $1.1 million is recorded in other current liabilities and other non-current liabilities, respectively, in the consolidated balance sheets. As of September 30, 2022, $1.3 million, was outstanding under these agreements and $0.1 million and $1.2 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 8 for additional details.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters in income tax expense. See Note 8 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 based on the fair value assigned to RSUs which is based on the closing stock price of its common stock, par value $0.001 (“Common Stock”) on the date of grant. 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 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, $1.1 million and $1.2 million during the twelve months ended September 30, 2023, 2022, and 2021, 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, 2023, management determined that the Company has only one operating segment: the development, sale, and service of proprietary software solutions related to mobile imaging. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.

Comprehensive Income (Loss)

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

Recently Adopted Accounting Pronouncements

The Company did not adopt any new accounting pronouncements in the twelve months ended September 30, 2023.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued an Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently evaluating the ASU to determine its impact on its income tax disclosures and expects.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) and also issued subsequent amendments to the initial guidance (collectively, Topic 848). Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. The Company will adopt Topic 848 when the relevant contracts are modified upon transition to alternative reference rates. The Company does not expect the adoption of Topic 848 will have a material impact on the consolidated financial statements.

No other new accounting pronouncement issued or effective during the twelve months ended September 30, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements.

STOCKHOLDERS’ EQUITY - RSU Activity (Details) - RSUs - $ / shares	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Number of Shares
Beginning balance (in shares)	2,441,677	2,411,267	2,661,943
Granted (in shares)	1,101,925	1,272,917	887,049
Settled (in shares)	(665,635)	(898,178)	(975,764)
Canceled (in shares)	(689,671)	(344,329)	(161,961)
Ending balance (in shares)	2,188,296	2,441,677	2,411,267
Weighted- Average Fair Value Per Share
Beginning balance (in dollars per share)	$ 12.29	$ 9.99	$ 7.95
Granted (in dollars per share)	10.24	14.43	13.35
Settled (in dollars per share)	11.33	9.57	7.64
Canceled (in dollars per share)	12.49	11.16	8.94
Ending balance (in dollars per share)	$ 11.49	$ 12.29	$ 9.99

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Sep. 30, 2023

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, 2023 (amounts in thousands):





Balance at September 30, 2022	$	115,632

Foreign currency effect on goodwill	7,916
Balance at September 30, 2023	$	123,548

Schedule of Intangible Assets

The estimated useful lives for all of these intangible assets range from three to seven years and they are amortized on a straight-line basis. Intangible assets as of September 30, 2023 and 2022 are summarized as follows (amounts in

thousands, except for years):


September 30, 2023:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	39,254	$	56,507
Customer relationships	4.7 years	25,168		21,396		3,772
Trade names	5.0 years	7,088		2,967		4,121
Covenants not to compete	3.0 years	$	600	$	326	274
Total intangible assets		$	128,617	$	63,943	$	64,674


September 30, 2022:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	32,265	$	63,496
Customer relationships	4.7 years	25,168		18,241		6,927
Trade names	5.0 years	7,088		2,174		4,914
Covenants not to compete	3.0 years	600		181		419
Total intangible assets		$	128,617	$	52,861	$	75,756

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 in thousands):


	Estimated Future Amortization Expense
2024	14,650
2025	13,404
2026	12,207
2027	11,095
2028	9,418
Thereafter	3,900
Total	$	64,674

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS On February 13, 2024 (the “Closing Date”), the Company, A2iA Corp., and ID R&D, Inc. (jointly and severally, individually and collectively, “Borrower”) entered into a Loan and Security Agreement (the “Credit Agreement”) with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Bank”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Credit Agreement. The Credit Agreement provides for a revolving line of credit whereby Borrower may borrow up to $35.0 million (the “Revolving Line”) with an additional $15.0 million to be advanced under the Revolving Line at the sole discretion of the Bank. The Revolving Line is secured on a first priority basis by Borrower’s assets. Any newly formed or acquired subsidiary of Borrower or any Guarantor, will either join the Credit Agreement as a co-borrower or become a Guarantor under the Credit Agreement, as determined by the Bank in its sole discretion. Borrower intends to use the Revolving Line for working capital and general business purposes. The Revolving Line terminates, and any outstanding principal amount of all advances made thereunder, and any accrued and unpaid interest thereon, become immediately due and payable on the earlier of (a) the three year anniversary of the Closing Date and (b) the date that is within 90 days of the maturity date of the “2026 Convertible Note” if such notes are outstanding as of such date. “2026 Senior Convertible Note” means the existing unsecured Indebtedness issued pursuant to that certain Indenture between the Company as issuer and UMB Bank, National Association as Indenture Trustee dated as of February 5, 2021, which provide for the issuance from time to time of debentures, notes or other debt instruments of Borrower, to be issued in one or more series. Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (a) term SOFR plus a specified margin or (b) WSJ prime plus a specified margin, in each case which will be adjusted based on the Company’s net leverage ratio at the time of borrowing. Borrower must also pay Bank (i) a commitment fee of $87,500 and (ii) an “Unused Revolving Line Facility Fee” of 0.25% per annum of the average unused portion of the Revolving Line. The Credit Agreement contains representations, warranties, and negative and affirmative covenants customary for transactions of this type. These include covenants limiting the ability of Borrower, and any of their subsidiaries, subject to certain exceptions and baskets, to, among other things, (i) incur indebtedness, (ii) incur liens on their assets, (iii) enter into any merger or consolidation with, or acquire all or substantially all of the equity or property of, another person, (iv) dispose of any of their business or property, (v) make or permit any payment on subordinated debt, or (vi) pay any dividend, make any other distribution, or redeem any equity. The Credit Agreement contains customary events of default and also provides that an event of default includes any default resulting in a right by third parties to accelerate maturity of indebtedness in excess of $500,000. If any event of default occurs and is not cured within applicable grace periods set forth in the Credit Agreement or waived, all loans and other obligations could become due and immediately payable and the facility could be terminated. In addition, Borrower may be required to deposit cash with the Bank in an amount equal to 105% of any undrawn letters of credit denominated in U.S. Dollars or 115% of any undrawn letters of credit denominated in a foreign currency.

QUARTERLY INFORMATION (UNAUDITED)

12 Months Ended

Sep. 30, 2023

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY INFORMATION (UNAUDITED)

13. QUARTERLY INFORMATION (UNAUDITED)

As previously reported, there was a restatement of the second and third quarters of fiscal 2022, as described in Note 15 of the accompanying notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2022. The following table sets forth selected quarterly financial information for fiscal 2023 and 2022 as follows (amounts in thousands except per share data):


	2023
	Q1		Q2		Q3		Q4
Revenue	$	45,703	$	46,123	$	43,070	$	37,656
Cost of revenue (exclusive of depreciation & amortization)	5,069		5,898		5,712		6,272
Operating expenses	32,261		31,539		35,566		34,671
Operating income (loss)	8,373		8,686		1,792		(3,287)
Interest expense	2,137		2,163		2,362		2,401
Other income, net	340		454		925		2,121
Income tax benefit (provision)	(1,846)		(1,808)		(783)		2,123
Net income (loss)	4,730		5,169		(428)		(1,444)
Net income (loss) per share:
Basic income (loss) per share	0.11		0.11		(0.01)		(0.03)
Shares used in calculating net income (loss) per share—basic	44,930		45,377		46,002		45,997
Diluted income (loss) per share	0.10		0.11		(0.01)		(0.03)
Shares used in calculating net income (loss) per share—diluted	45,634		45,780		46,473		47,050


	2022
	Q1		Q2		Q3		Q4
Revenue	$	32,473	$	33,510	$	39,195	$	39,626
Cost of revenue (exclusive of depreciation & amortization)	4,556		4,451		5,784		5,217
Operating expenses	23,089		26,379		32,518		30,610
Operating income (loss)	4,828		2,680		893		3,799
Interest expense	2,008		2,040		2,077		2,107
Other income (expense), net	135		(225)		89		(365)
Income tax benefit (provision)	168		20		880		(976)
Net income (loss)	3,123		435		(215)		351
Net income (loss) per share:
Basic income (loss) per share	0.07		0.01		—		0.01
Shares used in calculating net income (loss) per share—basic	44,788		44,775		44,669		44,661
Diluted income (loss) per share	0.07		0.01		—		0.01
Shares used in calculating net income (loss) per share—diluted	46,155		46,097		45,224		45,311

LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 2,025	$ 1,881
Variable lease cost	319	385
Total lease cost	$ 2,344	$ 2,266

CONVERTIBLE SENIOR NOTES - Interest Costs Recognized on 2026 Notes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Total interest expense recognized	$ 2,401	$ 2,362	$ 2,163	$ 2,137	$ 2,107	$ 2,077	$ 2,040	$ 2,008	$ 9,063	$ 8,232	$ 5,129
Convertible Debt \| 2026 Notes
Debt Instrument [Line Items]
Contractual interest expense									1,615	1,179
Amortization of debt discount and issuance costs									7,546	7,053
Total interest expense recognized									$ 9,161	$ 8,232

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	$ 39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	$ 144,804	$ 119,797
Cost of revenue (exclusive of depreciation & amortization)	6,272	5,712	5,898	5,069	5,217	5,784	4,451	4,556
Operating expenses	34,671	35,566	31,539	32,261	30,610	32,518	26,379	23,089
Operating income (loss)	(3,287)	1,792	8,686	8,373	3,799	893	2,680	4,828	15,564	12,200	13,277
Interest expense	2,401	2,362	2,163	2,137	2,107	2,077	2,040	2,008	9,063	8,232	5,129
Other income, net	2,121	925	454	340	(365)	89	(225)	135	3,840	(366)	654
Income tax benefit (provision)	2,123	(783)	(1,808)	(1,846)	(976)	880	20	168	(2,314)	92	(824)
Net income	$ (1,444)	$ (428)	$ 5,169	$ 4,730	$ 351	$ (215)	$ 435	$ 3,123	$ 8,027	$ 3,694	$ 7,978
Net income (loss) per share:
Basic income (loss) per share (in dollars per share)	$ (0.03)	$ (0.01)	$ 0.11	$ 0.11	$ 0.01	$ 0	$ 0.01	$ 0.07	$ 0.18	$ 0.08	$ 0.18
Shares used in calculating net income (loss) per share—basic (in shares)	45,997	46,002	45,377	44,930	44,661	44,669	44,775	44,788	45,533	44,595	43,509
Diluted income (loss) per share (in dollars per share)	$ (0.03)	$ (0.01)	$ 0.11	$ 0.10	$ 0.01	$ 0	$ 0.01	$ 0.07	$ 0.17	$ 0.08	$ 0.18
Shares used in calculating net income (loss) per share - diluted (in shares)	47,050	46,473	45,780	45,634	45,311	45,224	46,097	46,155	46,461	45,780	45,083

CONVERTIBLE SENIOR NOTES - Carrying Value of 2026 Notes (Details) - Convertible Debt - 2026 Notes - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Feb. 28, 2021	Feb. 05, 2021
Debt Instrument [Line Items]
Debt interest rate (as a percent)	0.75%			0.75%
Debt issued	$ 155,300,000		$ 155,300,000
Principal amount	155,250,000	$ 155,250,000
Less: unamortized discount and issuance costs, net of amortization	(19,734,000)	(27,280,000)
Carrying amount	$ 135,516,000	$ 127,970,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Sep. 30, 2023	Mar. 12, 2024	Mar. 31, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2023
Current Fiscal Year End Date	--09-30
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	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 428,814,692
Entity Common Stock, Shares Outstanding		46,790,611
Documents Incorporated by Reference	None.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0000807863

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, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ (1,444)	$ (428)	$ 5,169	$ 4,730	$ 351	$ (215)	$ 435	$ 3,123	$ 8,027	$ 3,694	$ 7,978
Weighted-average shares outstanding—basic (in shares)	45,997	46,002	45,377	44,930	44,661	44,669	44,775	44,788	45,533	44,595	43,509
Common stock equivalents (in shares)									928	1,185	1,574
Weighted-average shares outstanding—diluted (in shares)	47,050	46,473	45,780	45,634	45,311	45,224	46,097	46,155	46,461	45,780	45,083
Net income per share:
Net income per share—basic (in dollars per share)	$ (0.03)	$ (0.01)	$ 0.11	$ 0.11	$ 0.01	$ 0	$ 0.01	$ 0.07	$ 0.18	$ 0.08	$ 0.18
Net income per share—diluted (in dollars per share)	$ (0.03)	$ (0.01)	$ 0.11	$ 0.10	$ 0.01	$ 0	$ 0.01	$ 0.07	$ 0.17	$ 0.08	$ 0.18

- 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
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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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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 58,913	$ 32,059
Short-term investments	74,700	58,268
Accounts receivable, net	32,132	35,922
Contract assets, current portion	18,355	7,037
Prepaid expenses	3,513	1,946
Other current assets	2,396	2,622
Total current assets	190,009	137,854
Long-term investments	1,304	10,633
Property and equipment, net	2,829	3,493
Right-of-use assets	4,140	5,155
Intangible assets, net	64,674	75,756
Goodwill	123,548	115,632
Deferred income tax assets	11,645	10,110
Contract assets, non-current portion	5,579	4,218
Other non-current assets	1,647	1,628
Total assets	405,375	364,479
Current liabilities:
Accounts payable	7,589	4,974
Accrued payroll and related taxes	10,554	10,393
Accrued interest payable	305	202
Income tax payables	4,329	206
Deferred revenue, current portion	17,360	21,350
Lease liabilities, current portion	1,902	2,110
Acquisition-related contingent consideration	7,976	5,920
Restructuring accrual	0	901
Other current liabilities	1,482	2,402
Total current liabilities	51,497	48,458
Convertible senior notes	135,516	127,970
Deferred revenue, non-current portion	957	1,775
Lease liabilities, non-current portion	2,867	4,106
Deferred income tax liabilities, non-current portion	6,476	9,578
Other non-current liabilities	2,874	1,613
Total liabilities	200,187	193,500
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding, as of September 30, 2023 and 2022	0	0
Common stock, $0.001 par value, 120,000,000 shares authorized, 45,591,199 and 44,680,429 issued and outstanding, as of September 30, 2023 and 2022, respectively	46	44
Additional paid-in capital	228,691	216,493
Accumulated other comprehensive loss	(14,237)	(28,219)
Accumulated deficit	(9,312)	(17,339)
Total stockholders’ equity	205,188	170,979
Total liabilities and stockholders’ equity	$ 405,375	$ 364,479

BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands			1 Months Ended	2 Months Ended	3 Months Ended	12 Months Ended
BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands	Mar. 23, 2022 USD ($)	May 28, 2021 USD ($) shares	Jul. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Business Acquisition [Line Items]
Consideration paid for acquisition, net of cash acquired						$ 267	$ 122,672	$ 12,549
ID R&D
Business Acquisition [Line Items]
Aggregate purchase price		$ 49,000
Initial cash payment paid for acquisition		$ 13,000
Common stock issued during acquisition (in shares) \| shares		867,226
Common stock issued during acquisition, value		$ 13,900
Earnout period shift		1 year
Fair value of earnout consideration		$ 15,700
Amortization and acquisition-related costs		600				$ 2,100	$ (1,400)
Escrow deposit		4,000
Goodwill expected to be deductible for income tax purposes		$ 0
ID R&D \| Performance RSUs
Business Acquisition [Line Items]
Earnout shares issuable (up to) (in shares) \| shares		711,535
ID R&D \| First Earnout Anniversary
Business Acquisition [Line Items]
Aggregate purchase price				$ 9,500
Initial cash payment paid for acquisition				7,700
Earnout period		1 year
Maximum payout of contingent consideration liability		$ 12,300
Earnout percentage		0.15
Value of common stock issued during acquisition				$ 1,800
ID R&D \| Second Earnout Anniversary
Business Acquisition [Line Items]
Maximum payout of contingent consideration liability		$ 9,800
ID R&D \| Second Earnout Anniversary \| Subsequent Event
Business Acquisition [Line Items]
Aggregate purchase price					$ 8,000
Initial cash payment paid for acquisition					4,700
Value of common stock issued during acquisition					$ 3,300
HooYu
Business Acquisition [Line Items]
Initial cash payment paid for acquisition	$ 129,100		$ 400
Fair value of earnout consideration	1,600
Amortization and acquisition-related costs	$ 3,200
Percentage of voting interests acquired (as a percent)	100.00%
Payments to sellers and third-party legal and investment advisors	$ 127,500
Consideration paid for acquisition, net of cash acquired	$ 500

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Sep. 30, 2022
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)	120,000,000	120,000,000
Common stock, shares issued (in shares)	45,591,199	44,680,429
Common stock, shares outstanding (in shares)	45,591,199	44,680,429

LEASES - Schedule of Leases Statement of Financial Position (Details)	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Weighted-average remaining lease term (years) - operating leases	4 years 3 months 18 days	4 years 6 months
Weighted-average discount rate - operating leases	3.70%	3.50%

INVESTMENTS - Summary of Investments by Type of Security (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Cost	$ 76,245	$ 70,314
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(242)	(1,413)
Fair Market Value	76,004	68,901
Short-Term \| U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Cost	40,329	6,016
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(76)	(134)
Fair Market Value	40,254	5,882
Short-Term \| Foreign Government and Agency Securities
Debt Securities, Available-for-sale [Line Items]
Cost		2,865
Gross Unrealized Gains		0
Gross Unrealized Losses		(38)
Fair Market Value		2,827
Short-Term \| Commercial Paper
Debt Securities, Available-for-sale [Line Items]
Cost		18,245
Gross Unrealized Gains		0
Gross Unrealized Losses		(223)
Fair Market Value		18,022
Short-Term \| Corporate Debt Securities
Debt Securities, Available-for-sale [Line Items]
Cost	34,545	32,065
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(99)	(528)
Fair Market Value	34,446	31,537
Long-Term \| U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Cost	1,371	3,431
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(67)	(210)
Fair Market Value	$ 1,304	3,221
Long-Term \| Corporate Debt Securities
Debt Securities, Available-for-sale [Line Items]
Cost		7,692
Gross Unrealized Gains		0
Gross Unrealized Losses		(280)
Fair Market Value		$ 7,412

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, € in Millions																1 Months Ended			2 Months Ended	3 Months Ended	12 Months Ended
	Feb. 16, 2023 USD ($) patent	Sep. 02, 2022 EUR (€)	Jun. 07, 2022 EUR (€)	Jun. 02, 2022 USD ($)	Dec. 13, 2021 USD ($)	Jul. 21, 2021 patent	Mar. 31, 2021 patent	Dec. 18, 2020 patent	Dec. 04, 2020 patent	Sep. 30, 2020 patent	Jan. 10, 2020 USD ($) patent	Nov. 06, 2019 USD ($) patent day	Jul. 31, 2019 patent	Aug. 17, 2018 patent	Jul. 07, 2018 patent	May 31, 2022 USD ($) patent	Mar. 31, 2021 patent	Sep. 30, 2020 patent	Jan. 26, 2021 patent	Feb. 23, 2021 patent	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 19, 2020 USD ($)
Employee 401(k) Plan
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 \| $																					$ 500	$ 700	$ 700
Maplebear, Inc (dba Instacart) \| Subscription To Mobile Verify Advance Service
Claims
Other commitment, annual amount committed \| $																								$ 1,200
Pending Litigation \| General and Administrative
Claims
Legal fees incurred related to third-party claims against customers \| $																					1,400
Pending Litigation \| UrbanFT, Inc.
Claims
Number of patents allegedly infringed \| patent								2					5
Number of patents invalid \| patent								2
Number of patents not infringed \| patent								2
Global Equity & Corporate Consulting, S.L. \| ICAR Vision Systems, S.L. \| Pending Litigation
Claims
Damages awarded			€ 0.8																		$ 800
Global Equity & Corporate Consulting, S.L.- Breach of Services Agreement \| ICAR Vision Systems, S.L. \| Pending Litigation
Claims
Settlement interest (as a percent)		30.00%
Litigation settlement interest \| €		€ 1.1
Claims against the escrow funds \| €		0.9
Escrow deposit \| €		0.2
Accrued interest \| €		16,475.0
Litigation expense \| €		€ 10,995.0
USAA \| Pending Litigation \| Wells Fargo
Claims
Number of patents allegedly infringed											2	3		5	4			2		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
USAA \| Pending Litigation \| PNC Bank
Claims
Number of patents allegedly infringed \| patent							2		2	2						1		2
Amount awarded in damages to other party \| $																$ 218,000
Number of patents denied institution \| patent						6											2
USAA \| Settled Litigation \| PNC Bank
Claims
Number of patents infringed \| patent	1
Amount awarded in damages to other party \| $	$ 4,300
UrbanFT, Inc. \| Settled Litigation
Claims
Amount awarded to the Company \| $				$ 2,300
UrbanFT, Inc. \| Settled Litigation \| Compensatory Damages
Claims
Amount awarded to the Company \| $				1,700
UrbanFT, Inc. \| Settled Litigation \| Costs of Judgement Awarded
Claims
Amount awarded to the Company \| $				2,600
UrbanFT, Inc. \| Settled Litigation \| Attorneys' Fees
Claims
Amount awarded to the Company \| $				$ 600
Maplebear, Inc (dba Instacart) \| Pending Litigation
Claims
Amount claimed during court proceedings \| $					$ 2,000

INVESTMENTS

12 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

5. INVESTMENTS

The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2023 and 2022, 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, 2023, 2022, and 2021. The Company had no realized gain or loss from the sale of available-for-sale securities during the twelve months ended September 30, 2023. The Company realized a $0.3 million loss from the sale of available-for-sale securities during the twelve months ended September 30, 2022. There were no realized gains or losses from the sale of available-for-sale securities during the twelve months ended September 30, 2021.

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, 2023 and 2022, respectively (amounts in thousands):


September 30, 2023:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	40,329	$	1	$	(76)	$	40,254


Corporate debt securities, short-term	34,545		—		(99)		34,446
U.S. Treasury, long-term	1,371		—		(67)		1,304


Total	$	76,245	$	1	$	(242)	$	76,004


September 30, 2022:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Available-for-sale securities:
U.S. Treasury, short-term	$	6,016	$	—	$	(134)	$	5,882
Foreign government and agency securities, short-term	2,865		—		(38)		$	2,827
Commercial paper, short-term	18,245		—		(223)		18,022
Corporate debt securities, short-term	32,065		—		(528)		31,537
U.S. Treasury, long-term	3,431		—		(210)		3,221

Corporate debt securities, long-term	7,692		—		(280)		7,412
Total	$	70,314	$	—	$	(1,413)	$	68,901

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.


September 30, 2023	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	$	40,254	$	40,254	$	—	$	—


Corporate debt securities	34,446		—		34,446		—
Total short-term investments at fair value	74,700		40,254		34,446		—
Long-term investments:
U.S. Treasury	1,304		1,304		—		—



Total long-term investments at fair value	1,304		1,304		—		—



Total assets at fair value	$	76,004	$	41,558	$	34,446	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	7,976	$	—	$	7,976	$	—



Total liabilities at fair value	$	7,976	$	—	$	7,976	$	—


September 30, 2022	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	$	5,882	$	5,882	$	—	$	—
Commercial paper	18,022		—		18,022		—
Foreign government and agency securities	2,827		—		2,827		—
Corporate debt securities	31,537		—		31,537		—
Total short-term investments at fair value	58,268		5,882		52,386		—
Long-term investments:
U.S. Treasury	3,221		3,221		—		—

Corporate debt securities	7,412		—		7,412		—
Total long-term investments at fair value	10,633		3,221		7,412		—



Total assets at fair value	$	68,901	$	9,103	$	59,798	$	—

Liabilities:
Current liabilities:
Acquisition-related contingent consideration	$	5,920	$	—	$	—	$	5,920



Total liabilities at fair value	$	5,920	$	—	$	—	$	5,920

•Level 1: Includes investments in U.S. Government and agency securities, which are valued based on recently executed transactions in the same or similar securities.

•Level 2: Convertible Senior Notes and corporate debt securities. Corporate debt securities are valued using 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. On February 5, 2021, the Company issued the 2026 Notes as further described in Note 9. Concurrently with the issuance of the 2026 Notes, the

Company entered into the Notes Hedge and Warrant Transactions which in combination are intended to reduce the potential dilution from the conversion of the 2026 Notes (see Note 9).

The fair value of the Notes Hedge and the embedded conversion derivative were estimated using a Black-Scholes model. Based on the fair value hierarchy, the Company classified the Notes Hedge and the embedded conversion derivative as Level 2 as significant inputs are observable, either directly or indirectly. The significant inputs and assumptions used in the models to calculate the fair value of the derivatives include the Common Stock price, exercise price of the derivatives, risk-free interest rate, volatility, annual coupon rate and remaining contractual term.

As of September 30, 2023, total acquisition-related contingent consideration of $8.0 million is recorded in acquisition-related contingent consideration in the consolidated balance sheets. The Company recorded the acquisition date fair value based on the likelihood of contingent earnout payments related to the Company’s acquisition of ID R&D, 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 used 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 the Nasdaq Capital Market to determine the fair value of the shares expected to be issued. The Company previously classified the contingent consideration as Level 3, due to the lack of relevant observable inputs and market activity. The second earnout period ended on May 28, 2023 and the value recorded as of September 30, 2023 is based on the calculated final payout and the Company reclassified the contingent consideration as Level 2 during the third quarter of fiscal year 2023. The following table includes a roll-forward of the contingent consideration liability during the twelve months ended September 30, 2023 (amounts in thousands):


Balance at September 30, 2022	$	5,920
Expenses recorded due to changes in fair value	2,056


Balance at September 30, 2023	$	7,976


	Fair Value at September 30, 2022		Valuation Technique	Unobservable Input	Input Used
Acquisition-related contingent consideration	$	5,920	Monte Carlo simulation	Weighted-average cost of capital	14.80	%
				Revenue weight-average cost of capital	4.40	%
				Revenue volatility	0.20

INVESTMENTS - Summary of Contingent Consideration Measured at Fair Value (Details) - Contingent Consideration $ in Thousands	12 Months Ended
	Sep. 30, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 5,920
Significant Unobservable Inputs (Level 3)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	5,920
Expenses recorded due to changes in fair value	2,056
Ending balance	$ 7,976

INCOME TAXES - Income Taxes Computed Using Federal Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Amount computed using statutory rate									$ (2,172)	$ (756)	$ (1,849)
Net change in valuation allowance for net deferred tax assets									292	(1,702)	(19)
Other									(477)	1,605	0
Foreign rate differential									504	268	13
Non-deductible items									(14)	(64)	(141)
Transaction costs									0	(411)	0
State income tax									(100)	251	(276)
Research and development credits									791	1,166	1,248
Foreign income tax									0	0	(15)
Contingent consideration									(432)	285	0
Uncertain tax positions									(184)	(318)	0
Stock compensation, net									(522)	(232)	215
Total tax benefit (expense)	$ 2,123	$ (783)	$ (1,808)	$ (1,846)	$ (976)	$ 880	$ 20	$ 168	$ (2,314)	$ 92	$ (824)

CONVERTIBLE SENIOR NOTES

12 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

9. CONVERTIBLE SENIOR NOTES

The carrying values of the 0.75% convertible notes due 2026 issued by the Company in an aggregate principal amount of $155.3 million (the “2026 Notes”) are as follows (amounts in thousands):


	September 30, 2023		September 30, 2022
2026 Notes:
Principal amount	$	155,250	$	155,250
Less: unamortized discount and issuance costs, net of amortization	(19,734)		(27,280)
Carrying amount	$	135,516	$	127,970

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 $20.3 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. As of January 13, 2023 (“Date of Noncompliance”), the Company was not in compliance with certain of the covenants in the Indenture as a result of the Company not timely filing its Form 10-K for the fiscal year ended September 30, 2022 (“Form 10-K”)and the Form 10-Q for the quarter ended December 31, 2022 (“Q1 Form 10-Q”) with the SEC. As a result of not being in compliance, the 2026 Notes began to accrue additional special interest of 0.25% of the outstanding principal of the 2026 Notes for the 90 days after the Date of Noncompliance and 0.50% of the outstanding principal of the 2026 Notes for the 91st through 180th day after the Date of Noncompliance. The Company subsequently did not timely file its Form 10-Q for the quarter ended March 31, 2023 (“Q2 Form 10-Q”) and its Form 10-Q for the quarter ended June 30, 2023 (“Q3 Form 10-Q”). The Company then filed its Form 10-K with the SEC on July 31, 2023, its Q1 Form 10-Q with the SEC on September 6, 2023, and its Q2 Form 10-Q with the SEC on September 29, 2023. As a result, the Company was no longer required to accrue additional special interest. As of February 15, 2024, the Company was not in compliance with certain covenants in the Indenture as a result of not timely filing its Form 10-Q for the quarter ended December 31, 2023 with the SEC.

In December 2023, the Company was notified that we were not in compliance with the Nasdaq listing rules as a result of the failure to timely file the Company’s Form 10-K for the year ended September 30, 2023, and the Nasdaq issued a delisting determination. The Company requested and received a stay pending a hearing to occur on March 19, 2024. The Company has a panel hearing with the Nasdaq on March 19, 2024 to review the Company’s request to extend the stay of suspension of the Company’s common stock from the Nasdaq. The Company’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “MITK” until the Panel issues its decision following the hearing and through the expiration of any additional extension period granted by the Panel. The Panel has discretion to grant an exception for up to 180 days after the Nasdaq Staff’s initial delisting decision. There can be no assurance that the Panel will grant the Company’s request for a stay pending the hearing process or any further extension following the hearing or continued listing. If the Company’s common stock ceases to be listed for trading on the Nasdaq the Company could be in default under the covenants within the 2026 Notes which could result in the Company’s debt becoming due and payable earlier than the maturity date. If the notes are called, the Company would seek a refinancing of all or a portion of the notes, repay the notes, or a combination of these actions.

The 2026 Notes will mature on February 1, 2026, unless earlier redeemed, repurchased or converted. The 2026 Notes 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, 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, 2023, the number of authorized and unissued shares of Common Stock that are not reserved for other purposes is sufficient to settle the 2026 Notes into equity. Accordingly, 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 were first allocated to the embedded derivative liability and the remaining proceeds were 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.

In the second quarter of fiscal 2022, the stockholders of the Company approved an increase to the number of authorized shares of Common Stock, to an amount sufficient to settle the conversion of the 2026 Notes. As a result of the increase to the number of authorized shares of Common Stock, the Company reclassified the embedded conversion derivative to additional paid-in capital.

As of September 30, 2023, the embedded conversion derivative is included in additional paid-in capital in the consolidated balance sheets and will not be remeasured provided the requirements to qualify for the scope exception in ASC 815-10-15-74(a) continue to be met.

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, 2023 and 2022 (amounts in thousands):


	2023		2022
Contractual interest expense	$	1,615	$	1,179
Amortization of debt discount and issuance costs	7,546		7,053
Total interest expense recognized	$	9,161	$	8,232

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 $19.7 million as of September 30, 2023, and will be amortized over approximately 2.3 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 correspond 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.

The Company was initially required to settle the Notes Hedge in cash, as they did not qualify for the scope exception for contracts involving an issuer’s own equity in ASC 815 and were accounted for as a derivative asset. Upon initial purchase, the Notes Hedge was recorded in convertible senior notes hedge at $33.2 million in the consolidated balance sheets. In the second quarter of fiscal 2022, the stockholders of the Company approved an increase to the number of authorized shares of Common Stock, to an amount sufficient to settle the conversion of the 2026 Notes. As a result of the increase to the number of authorized shares of Common Stock, the Company reclassified the Notes Hedge to additional paid-in capital.

As of September 30, 2023, the Notes Hedge is included in additional paid-in capital in the consolidated balance sheet and will not be remeasured provided the requirements to qualify for the scope exception in ASC 815-10-15-74(a) continue to be met and 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 fiscal 2023, 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, 2023, 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 14,650
2025	13,404
2026	12,207
2027	11,095
2028	9,418
Thereafter	3,900
Total	$ 64,674	$ 75,756

STOCKHOLDERS’ EQUITY - Performance RSU Activity (Details) - Performance RSUs - $ / shares	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Number of Shares
Beginning balance (in shares)	919,456	528,724	353,556
Granted (in shares)	325,837	629,279	284,765
Settled (in shares)	(27,245)	(176,864)	(90,345)
Canceled (in shares)	(487,655)	(61,683)	(19,252)
Ending balance (in shares)	730,393	919,456	528,724
Weighted- Average Fair Market Value Per Share
Beginning balance (in dollars per share)	$ 13.43	$ 9.17	$ 6.06
Granted (in dollars per share)	10.23	15.60	11.84
Settled (in dollars per share)	9.25	8.42	6.06
Canceled (in dollars per share)	11.61	13.51	6.06
Ending balance (in dollars per share)	$ 13.37	$ 13.43	$ 9.17

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Estimated Fair Values of Assets acquired and Liabilities Assumed


	ID R&D		HooYu
Accounts receivable	$	173	$	1,234
Property, plant, and equipment	114		504
Other current assets	147		630
Intangible assets	16,930		73,100
Goodwill	27,748		74,206

Current liabilities	(425)		(2,264)
Deferred revenue	—		(2,612)
Deferred income tax liabilities	(2,355)		(16,896)
Net assets acquired	$	42,332	$	127,902

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 and HooYu Acquisition during the twelve months ended September 30, 2023 (amounts in thousands, except for years):

ID R&D


	Amortization Period	Amount assigned

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

HooYu


	Amortization Period	Amount assigned
Completed technologies	7.0 years	$	61,400
Customer relationships	5.0 years	5,000
Trade name	5.0 years	6,100
Covenants not to compete	3.0 years	$	600
Total intangible assets acquired		$	73,100

Schedule of Pro Forma Information


	For the twelve months ended September 30,
	2022		2021
Pro forma revenue	$	149,679	$	130,302
Pro forma net income (loss)	$	(6,683)	$	(8,516)

The following table summarizes the results of ID R&D and HooYu that are included in the Company’s consolidated results (amounts shown in thousands):


	For the twelve months ended September 30,
	2022		2021
ID R&D
Revenue	$	5,663	$	849
Net Income (loss)	$	(3,769)	$	(3,021)
HooYu
Revenue	$	5,738
Net Income (loss)	$	(1,587)

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS - Schedule of Operations and Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 37,656	$ 43,070	$ 46,123	$ 45,703	$ 39,626	$ 39,195	$ 33,510	$ 32,473	$ 172,552	$ 144,804	$ 119,797
Operating income	(3,287)	1,792	8,686	8,373	3,799	893	2,680	4,828	15,564	12,200	13,277
Other expense, net	2,121	925	454	340	(365)	89	(225)	135	3,840	(366)	654
Income tax benefit (provision)	2,123	(783)	(1,808)	(1,846)	(976)	880	20	168	(2,314)	92	(824)
Net income	$ (1,444)	$ (428)	$ 5,169	$ 4,730	$ 351	$ (215)	$ 435	$ 3,123	8,027	3,694	7,978
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										143,943
Operating income										11,339
Other expense, net										(370)
Income tax benefit (provision)										295
Net income										3,032
Total Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										861
Operating income										861
Other expense, net										4
Income tax benefit (provision)										(203)
Net income										662
Software and hardware
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue									88,374	72,928	60,069
Software and hardware \| As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										72,494
Software and hardware \| Total Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										434
Services and other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue									$ 84,178	71,876	$ 59,728
Services and other \| As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										71,449
Services and other \| Total Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue										$ 427

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	12 Months Ended
	Sep. 30, 2023 USD ($) institution segment reportingUnit $ / shares	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2021 USD ($)	Dec. 31, 2017
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	7,900
Foreign currency translation adjustment	$ 13,093,000	$ (27,559,000)	$ (455,000)
Unbilled receivables	900,000	1,700,000
Restructuring costs	2,114,000	1,800,000	0
Other-than-temporary impairment charges recognized in earnings	0	0	0
Write-offs of allowance for doubtful accounts	100,000	0	100,000
Allowance for doubtful accounts receivable	1,500,000	900,000
Depreciation and amortization of property and equipment	1,727,000	1,401,000	1,439,000
Repairs and maintenance expenses	100,000	100,000	100,000
Impairment or long-lived assets	0	0	0
Capitalized software development costs	0	0	0
Amortization expense for capitalized software development costs	0	0	0
Capitalized software development costs for internal use	700,000	800,000	800,000
Amortization expense for capitalized software development costs for internal use	$ 700,000	400,000	300,000
Number of operating segments \| segment	1
Number of reporting units \| reportingUnit	1
Goodwill impairment	$ 0
Impairment to intangible assets	$ 0	$ 0	0
Trading-day average stock price period	20 days
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Advertising costs	$ 1,200,000	$ 1,100,000	$ 1,200,000
Spanish Government Agencies \| ICAR Vision Systems, S.L.
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Interest rate on loan agreements				0.00%
Total amounts outstanding under loan agreements	1,200,000	1,300,000
Spanish Government Agencies \| Other Current Liabilities \| ICAR Vision Systems, S.L.
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Current amount outstanding under loan agreements	200,000	100,000
Spanish Government Agencies \| Other Noncurrent Liabilities \| ICAR Vision Systems, S.L.
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Non-current amount outstanding under loan agreements	$ 1,100,000	$ 1,200,000
Minimum
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful lives	3 years
Minimum \| Spanish Government Agencies \| ICAR Vision Systems, S.L.
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		7 years
Maximum \| Spanish Government Agencies \| ICAR Vision Systems, S.L.
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Repayment period of loan agreements				12 years

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities (deferred revenue), current	$ 17,360				$ 21,350				$ 17,360	$ 21,350
Accounts receivable, net	32,132				35,922				32,132	35,922
Net operating loss carryforwards	11,548				6,656				11,548	6,656
Impacts of foreign exchange									4,600
Revenue	37,656	$ 43,070	$ 46,123	$ 45,703	39,626	$ 39,195	$ 33,510	$ 32,473	172,552	144,804	$ 119,797
Contract assets, current portion	18,355				7,037				18,355	7,037
Income tax benefit (provision)	(2,123)	$ 783	$ 1,808	$ 1,846	976	$ (880)	$ (20)	$ (168)	2,314	(92)	$ 824
Prepaid expenses	(3,513)				(1,946)				(3,513)	(1,946)
Deferred income tax assets	(11,645)				(10,110)				(11,645)	(10,110)
Income tax payables	4,329				206				4,329	206
Other current liabilities	$ (1,482)				(2,402)				$ (1,482)	(2,402)
Total Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities (deferred revenue), current					7,956					7,956
Accounts receivable, net					8,048					8,048
Net operating loss carryforwards					21,600					21,600
Net operating loss carryforwards					5,400					5,400
Revenue										861
Contract assets, current portion					764					764
Income tax benefit (provision)										203
Prepaid expenses					54					54
Deferred income tax assets					135					135
Income tax payables					12					12
Other current liabilities					7					7
Adjustment 1
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities (deferred revenue), current					8,000					8,000
Adjustment 2
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liabilities (deferred revenue), current					$ 200					$ 200

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $123.5 million and $115.6 million at September 30, 2023 and 2022, respectively, representing the excess of costs over fair value of assets of businesses acquired. The following table summarizes changes in the balance of goodwill during the twelve months ended September 30, 2023 (amounts in thousands):





Balance at September 30, 2022	$	115,632

Foreign currency effect on goodwill	7,916
Balance at September 30, 2023	$	123,548

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, trade names, and covenants not to compete. The estimated useful lives for all of these intangible assets range from three to seven years and they are amortized on a straight-line basis. Intangible assets as of September 30, 2023 and 2022 are summarized as follows (amounts in

thousands, except for years):


September 30, 2023:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	39,254	$	56,507
Customer relationships	4.7 years	25,168		21,396		3,772
Trade names	5.0 years	7,088		2,967		4,121
Covenants not to compete	3.0 years	$	600	$	326	274
Total intangible assets		$	128,617	$	63,943	$	64,674


September 30, 2022:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	32,265	$	63,496
Customer relationships	4.7 years	25,168		18,241		6,927
Trade names	5.0 years	7,088		2,174		4,914
Covenants not to compete	3.0 years	600		181		419
Total intangible assets		$	128,617	$	52,861	$	75,756

Amortization expense related to acquired intangible assets was $17.0 million, $13.5 million, and $7.5 million for twelve months ended September 30, 2023, 2022, and 2021, respectively, and is recorded within amortization and acquisition-related costs on the consolidated statements of operations and other comprehensive income (loss).

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


	Estimated Future Amortization Expense
2024	14,650
2025	13,404
2026	12,207
2027	11,095
2028	9,418
Thereafter	3,900
Total	$	64,674

STOCKHOLDERS’ EQUITY

12 Months Ended

Sep. 30, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

7. STOCKHOLDERS’ EQUITY

Stock-Based Compensation Expense


	2023		2022		2021
Cost of revenue	$	468	$	289	$	339
Selling and marketing	3,023		4,383		3,399
Research and development	2,757		3,701		3,218
General and administrative	4,215		4,973		4,576
Stock-based compensation expense included in expenses	$	10,463	$	13,346	$	11,532

No options were granted in the twelve months ended September 30, 2023 or 2022. As of September 30, 2023, the Company had $20.3 million of unrecognized compensation expense related to outstanding stock options and RSUs expected to be recognized over a weighted-average period of approximately 2.3 years.

2020 Incentive Plan

In January 2020, the Company’s Board of Directors (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, 2023, (i) 1,834,474 RSUs and 730,393 performance-based restricted stock unit awards (“Performance RSUs”) were outstanding under the 2020 Plan, (ii) 1,425,042 shares of Common Stock were reserved for future grants under the 2020 Plan, and (iii) stock options to purchase an aggregate of 434,090 shares of Common Stock and 94,309 RSUs were outstanding under the Prior Plans.

On October 2, 2023, the Company held an annual meeting of its stockholders (the “Annual Meeting”). At the Annual Meeting, the Company’s stockholders approved an amendment and restatement of the 2020 Plan to increase the number of shares authorized for issuance thereunder by 5,108,000 shares (the 2020 Plan as so amended and restated, the “A&R 2020 Plan”).

The A&R 2020 Plan had been previously approved, subject to stockholder approval, by the Company’s Board of Directors (the “Board”), upon recommendation of the Compensation Committee of the Board, on August 9, 2023. A summary of the A&R 2020 Plan was included in the Company’s definitive proxy statement for the Annual Meeting filed with the U.S. Securities and Exchange Commission on August 22, 2023, as supplemented and amended on September 19, 2023 (the “Proxy Statement”).

Employee Stock Purchase Plan

In January 2018, the Board adopted the 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, 2023, (i) 729,124 shares have been issued to participants pursuant to the ESPP and (ii) 270,876 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 certain 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 $0.3 million, $0.4 million and $0.6 million in stock-based compensation expense related to the ESPP during each of the twelve months ended September 30, 2023, 2022, and 2021, respectively.

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 to increase the number of shares of Common Stock available for future grants. The total number of shares of Common Stock reserved for issuance thereunder is 1,500,000 shares. The Director Plan expired on December 31, 2022. As of September 30, 2023, (i) 259,513 RSUs were outstanding under the Director Plan and (ii) no 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 equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at September 30, 2020	1,162,505	$	7.51	6.1	$	6,081
Granted	—	$	—
Exercised	(329,878)	$	7.63		$	2,670
Canceled	(15,910)	$	9.41
Outstanding at September 30, 2021	816,717	$	7.42	5.8	$	9,046
Granted	—	$	—
Exercised	(35,625)	$	6.68		$	279
Canceled	—	$	—
Outstanding at September 30, 2022	781,092	$	7.46	3.7	$	1,512
Granted	—	$	—
Exercised	(98,952)	$	7.44		$	338
Canceled	(30,871)	$	9.49
Outstanding at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Vested and Expected to Vest at September 30, 2023	651,269	$	7.37	3.6	$	2,185
Exercisable at September 30, 2023	647,884	$	7.35	3.6	$	2,181

The Company recognized $0.4 million, $0.5 million, and $0.7 million in stock-based compensation expense related to outstanding stock options during the twelve months ended September 30, 2023, 2022, and 2021, respectively. As of September 30, 2023, the Company had $9,000 of unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted-average period of approximately 0.1 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. There were no options granted during either of the twelve months ended September 30, 2023, 2022, or 2021.

Restricted Stock Units

The following table summarizes RSU activity under the Company’s equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Fair Value Per Share
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
Granted	1,272,917	$	14.43
Settled	(898,178)	$	9.57
Canceled	(344,329)	$	11.16
Outstanding at September 30, 2022	2,441,677	$	12.29
Granted	1,101,925	$	10.24
Settled	(665,635)	$	11.33
Canceled	(689,671)	$	12.49
Outstanding at September 30, 2023	2,188,296	$	11.49

The cost of RSUs is determined using the fair value of Common Stock on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $7.1 million, $9.4 million, and $8.1 million in stock-based compensation expense related to outstanding RSUs in the twelve months ended September 30, 2023, 2022, and 2021, respectively. As of September 30, 2023, the Company had $16.7 million of unrecognized compensation expense related to outstanding RSUs, which is expected to be recognized over a weighted-average period of approximately 2.5 years.

Performance Restricted Stock Units

The following table summarizes Performance RSU activity under the Company’s equity plans during the twelve months ended September 30, 2023, 2022, and 2021:


	Number of Shares	Weighted- Average Fair Market Value Per Share
Outstanding at September 30, 2020	353,556	$	6.06
Granted	284,765	$	11.84
Settled	(90,345)	$	6.06
Canceled	(19,252)	$	6.06
Outstanding at September 30, 2021	528,724	$	9.17
Granted	629,279	$	15.60
Settled	(176,864)	$	8.42
Canceled	(61,683)	$	13.51
Outstanding at September 30, 2022	919,456	$	13.43
Granted	325,837	$	10.23
Settled	(27,245)	$	9.25
Canceled	(487,655)	$	11.61
Outstanding at September 30, 2023	730,393	$	13.37

The cost of Performance RSUs is determined using a Monte Carlo simulation to estimate the fair value on the award date, and the compensation expense is recognized ratably over the vesting period. The Company recognized $2.7 million, $3.0 million, and $1.3 million in stock-based compensation expense related to outstanding Performance RSUs in the twelve months ended September 30, 2023, 2022, and 2021, respectively. As of September 30, 2023, the Company had $3.4 million of unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of approximately 1.7 years.

Performance Options

On November 6, 2018, as an inducement grant pursuant to Nasdaq Listing Rule 5635(c)(4), the Company’s Chief Executive Officer was granted performance options (the “Performance Options”) to purchase up to 800,000 shares of Common Stock at an exercise price of $9.50 per share, the closing market price for a share of Common Stock on the date of the grant. During the fiscal year ended September 30, 2021, the performance conditions were achieved. In November 2021, the time vesting condition was met and the performance options vested in full. The Company recognized $0.1 million and $0.8 million in stock-based compensation expense related to outstanding Performance Options in the twelve months ended September 30, 2022 and 2021, respectively. The Company did not recognize any stock-based compensation expense related to outstanding performance options for the twelve months ended September 30, 2023.

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 was completed during the second quarter of fiscal 2022 and as such the Company made no purchase during the twelve months ended September 30, 2023.

The Company made purchases of $14.8 million, or approximately 886,204 shares, during twelve months ended September 30, 2022 at an average price of $16.73 per share and subsequently retired the shares. The share repurchase program expired on June 30, 2022 and as such no purchases were made after this date. The timing, price and volume of repurchases were based on market conditions, relevant securities laws and other factors. The repurchases were 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.

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 equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 14
-Subparagraph (b)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS

15. REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS

i.The Company incorrectly netted accounts receivable and deferred revenue balances where the right of offset did not exist, which resulted in an understatement of $8.0 million in both accounts receivable, net and deferred revenue, current portion.

ii.The Company determined it had failed to include the impact of share-based compensation deductions triggered by the HooYu Acquisition when recording the business combination in March 2022. This resulted in an understatement of $21.6 million of deferred tax assets relating to NOLs that should have been recorded in the Company’s deferred tax asset balance (understatement of $5.4 million, tax effected) upon the acquisition of HooYu. The adjustment was $4.6 million after the impacts of foreign exchange.

iii.The Company incorrectly identified termination for convenience clauses in six software license contracts and incorrectly recognized revenue on certain of its multiyear term licenses. As such, the Company recognized $0.9 million of additional revenue for the twelve months ended September 30, 2022. This also resulted in a increase in contract assets, current portion of $0.8 million, a decrease in deferred revenue of $0.2 million, a decrease in income tax benefit of $0.2 million, a decrease in prepaids of $0.1 million, a decrease in deferred income tax assets of $0.1 million, an increase in income tax payables of $12,000 and a decrease in other current liabilities of $7,000.

In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” (“SAB 99”) and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” (“SAB 108”), the Company evaluated the errors and has determined that the related impact was immaterial to the previously issued consolidated financial statements; however, correcting the error in the current period would have a material impact on the current financial statements. Therefore, the Company, in consultation with the Audit Committee of the Company’s Board of Directors, concluded that the affected period should be revised to present the identified adjustment discussed below. The Company has not filed, and does not intend to file, an amendment to the previously filed Annual Report on Form 10-K for the period ended September 30, 2022, but instead is revising its previously reported financial statements in this Annual Report on Form 10-K, as follows (amounts in thousands):


	As of September 30, 2022
	As Previously Reported		Total Adjustments		As Revised

Accounts receivable, net (i)	$	27,874	$	8,048	$	35,922
Contract assets, current portion (iii)	6,273		764		7,037
Prepaid expenses (iii)	2,000		(54)		1,946
Goodwill (ii)	120,186		(4,554)		115,632
Deferred income tax assets (iii)	10,245		(135)		10,110
Total assets	360,410		4,069		364,479
Income tax payables (iii)	194		12		206
Other current liabilities (iii)	2,409		(7)		2,402
Deferred revenue, current portion (i)(iii)	13,394		7,956		21,350
Deferred income tax liabilities (ii)	14,132		(4,554)		9,578
Total liabilities	$	190,093	$	3,407	$	193,500


	Twelve months ended September 30, 2022
	As Previously Reported		Total Adjustments		As Revised
Revenue
Software and hardware (iii)	$	72,494	$	434	$	72,928
Services and other (iii)	71,449		427		71,876
Total revenue	143,943		861		144,804
Operating income	11,339		861		12,200
Other expense, net (iii)	(370)		4		(366)
Income tax benefit (iii)	295		(203)		92
Net income	$	3,032	$	662	$	3,694

The statement of cash flows and impacted footnote disclosures have also been revised to give effect to this correction. Management also evaluated the above misstatements and concluded they were not material to the interim periods for fiscal years 2022 and 2023, individually and in aggregate. As a result, the Company plans to prospectively correct the relevant prior period condensed consolidated financial statements and related footnotes for these misstatements.

INVESTMENTS - Narrative (Details) - USD ($)	12 Months Ended
INVESTMENTS - Narrative (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
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	(300,000)	$ 0
Business Acquisition [Line Items]
Acquisition-related contingent consideration	7,976,000	$ 5,920,000
ID R&D
Business Acquisition [Line Items]
Acquisition-related contingent consideration	$ 8,000,000

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Income Taxes [Line Items]
Net increase (decrease) in total valuation allowance	$ 100,000	$ (2,100,000)
Unrecognized tax benefits that will impact the company's effective tax rate	2,400,000
Accrued interest or penalties related to uncertain tax positions	0
State
Income Taxes [Line Items]
Net operating losses subject to expiration	25,200,000
State \| Research and Development Tax Credit \| California
Income Taxes [Line Items]
Tax credit carryforwards	4,400,000
Foreign Tax Authority \| Research and Development Tax Credit
Income Taxes [Line Items]
Tax credit carryforwards	800,000
Federal
Income Taxes [Line Items]
Net operating loss carryforwards	0
Federal \| Research and Development Tax Credit
Income Taxes [Line Items]
Tax credit carryforwards	$ 0

REVENUE RECOGNITION (Tables)

12 Months Ended

Sep. 30, 2023

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,
	2023		2022		2021
Major product category
Deposits software and hardware	$	78,212	$	64,548	$	55,129
Deposits services and other	25,922		22,013		20,388
Deposits revenue	104,134		86,561		75,517
Identity verification software and hardware	10,162		8,380		4,940
Identity verification services and other	58,256		49,863		39,340
Identity verification revenue	68,418		58,243		44,280
Total revenue	$	172,552	$	144,804	$	119,797

Schedule of Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers (amounts in thousands) as of September 30, 2023 and 2022:


	September 30, 2023		September 30, 2022
Contract assets, current	$	18,355	$	7,037
Contract assets, non-current	5,579		4,218
Contract liabilities (deferred revenue), current	17,360		21,350
Contract liabilities (deferred revenue), non-current	957		1,775

REVENUE RECOGNITION - Narrative (Details) - USD ($)	12 Months Ended
REVENUE RECOGNITION - Narrative (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue recognized included in contract liability balance at the beginning of the period	$ 19,300,000	$ 10,900,000
Unbilled receivables	900,000	1,700,000
Revenue, remaining performance obligation, amount	18,300,000	23,100,000
Impairment losses recognized in capitalized contract costs	0	0
Selling and Marketing
Disaggregation of Revenue [Line Items]
Amortization of capitalized contract costs	1,500,000	1,300,000
Other Current and Non-Current Assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	2,600,000	2,400,000
2025-10-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 1,000,000
Revenue, remaining performance obligation, amount period
2023-10-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount		$ 21,400,000
Revenue, remaining performance obligation, amount period		1 year
2024-10-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 17,400,000	$ 1,800,000
Revenue, remaining performance obligation, amount period	1 year
Minimum
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	3 years
Minimum \| Software
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	1 year
Maximum
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	7 years
Maximum \| Software
Disaggregation of Revenue [Line Items]
Estimated useful lives of intangible assets (in years)	3 years

QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Sep. 30, 2023

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Data

The following table sets forth selected quarterly financial information for fiscal 2023 and 2022 as follows (amounts in thousands except per share data):


	2023
	Q1		Q2		Q3		Q4
Revenue	$	45,703	$	46,123	$	43,070	$	37,656
Cost of revenue (exclusive of depreciation & amortization)	5,069		5,898		5,712		6,272
Operating expenses	32,261		31,539		35,566		34,671
Operating income (loss)	8,373		8,686		1,792		(3,287)
Interest expense	2,137		2,163		2,362		2,401
Other income, net	340		454		925		2,121
Income tax benefit (provision)	(1,846)		(1,808)		(783)		2,123
Net income (loss)	4,730		5,169		(428)		(1,444)
Net income (loss) per share:
Basic income (loss) per share	0.11		0.11		(0.01)		(0.03)
Shares used in calculating net income (loss) per share—basic	44,930		45,377		46,002		45,997
Diluted income (loss) per share	0.10		0.11		(0.01)		(0.03)
Shares used in calculating net income (loss) per share—diluted	45,634		45,780		46,473		47,050


	2022
	Q1		Q2		Q3		Q4
Revenue	$	32,473	$	33,510	$	39,195	$	39,626
Cost of revenue (exclusive of depreciation & amortization)	4,556		4,451		5,784		5,217
Operating expenses	23,089		26,379		32,518		30,610
Operating income (loss)	4,828		2,680		893		3,799
Interest expense	2,008		2,040		2,077		2,107
Other income (expense), net	135		(225)		89		(365)
Income tax benefit (provision)	168		20		880		(976)
Net income (loss)	3,123		435		(215)		351
Net income (loss) per share:
Basic income (loss) per share	0.07		0.01		—		0.01
Shares used in calculating net income (loss) per share—basic	44,788		44,775		44,669		44,661
Diluted income (loss) per share	0.07		0.01		—		0.01
Shares used in calculating net income (loss) per share—diluted	46,155		46,097		45,224		45,311

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Potentially Dilutive Common Shares Excluded from Calculation of Net Income per Share (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	17,817	17,273	11,753
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	437	506	543
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	1,455	960	1,113
ESPP common stock equivalents
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	6	7	9
Performance options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	755	623	272
Performance RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	268	281	104
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	7,448	7,448	4,856
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive common shares outstanding (in shares)	7,448	7,448	4,856

INCOME TAXES

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

8. INCOME TAXES

Provision for Income Taxes

Income before income taxes for the twelve months ended September 30, 2023, 2022, and 2021 is comprised of the following (amounts in thousands):


	2023		2022		2021
Domestic	$	23,836	$	11,483	$	10,966
Foreign	(13,495)		(7,881)		(2,164)
Total	$	10,341	$	3,602	$	8,802

For the twelve months ended September 30, 2023, 2022, and 2021 the income tax benefit (provision) was as follows (amounts in thousands):


	2023		2022		2021
Current:
Federal	$	(4,414)	$	(233)	$	—
State	(1,215)		(325)		(78)
Foreign	(1,023)		(1,800)		(1,119)
Total current provision for income taxes	(6,652)		(2,358)		(1,197)
Deferred:
Federal	(659)		(1,400)		(1,387)
State	819		513		457
Foreign	4,178		3,337		1,303
Total deferred provision for income taxes	4,338		2,450		373
Total tax benefit (expense)	$	(2,314)	$	92	$	(824)

Deferred Income Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities as of September 30, 2023 and 2022 are as follows (amounts in thousands):


	2023		2022
Deferred tax assets:
Stock-based compensation	$	2,357	$	1,793
Net operating loss carryforwards	11,548		6,656
Research credit carryforwards	4,336		7,747
Lease liability	1,185		859
Intangibles	4,606		—
Other, net	852		1,117
Total deferred assets	24,884		18,172
Deferred tax liabilities:

Right of use asset	(1,032)		(633)
Intangibles	(15,914)		(14,139)

Total deferred liabilities	(16,946)		(14,772)
Valuation allowance for net deferred tax assets	(2,769)		(2,868)
Net deferred tax asset	$	5,169	$	532

The net change in the total valuation allowance for the twelve months ended September 30, 2023 and 2022 was a decrease of $0.1 million and an increase of $2.1 million, respectively. There was no material change in the total valuation allowance during the twelve months ended September 30, 2023. The valuation allowance increased due to foreign losses incurred in the twelve months ended September 30, 2022. 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 will be realized with the exception of the net foreign deferred tax assets for certain foreign entities. During the year ended September 30, 2022 the Company completed the HooYu Acquisition, as detailed in Note 3 which increased deferred tax liabilities related to intangible assets.

As of September 30, 2023, the Company has no available net operating loss carryforwards for federal income tax purposes. The net operating losses for state purposes are $25.2 million, which will begin to expire in 2032. As of September 30, 2023, the Company has no available federal research and development credit carryforwards as the Company fully utilized all federal research and development credits. As of September 30, 2023, the Company has available California research and development credit carryforwards, net of reserves, of $4.4 million, which do not expire. As of September 30, 2023, the Company has available foreign research and development credit carryforwards of $0.8 million, which will begin to expire in 2037.

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.

Earnings from the Company's foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise would subject the Company to foreign withholding taxes and may subject the Company to U.S. federal and state taxes.

Income Tax Provision Reconciliation


	2023		2022		2021
Amount computed using statutory rate	$	(2,172)	$	(756)	$	(1,849)
Net change in valuation allowance for net deferred tax assets	292		(1,702)		(19)
Other	(477)		1,605		—
Foreign rate differential	504		268		13
Non-deductible items	(14)		(64)		(141)
Transaction costs	—		(411)		—
State income tax	(100)		251		(276)


Research and development credits	791		1,166		1,248
Foreign income tax	—		—		(15)

Contingent consideration	(432)		285		—
Uncertain tax positions	(184)		(318)		—
Stock compensation, net	(522)		(232)		215
Income tax (provision) benefit	$	(2,314)	$	92	$	(824)

Uncertain Tax Positions

In accordance with authoritative guidance, the Company recognizes the benefit of uncertain income tax positions only if those positions are more likely than not of being sustained. 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, 2023, 2022, and 2021 (amounts shown in thousands):


	2023		2022		2021
Gross unrecognized tax benefits at the beginning of the year	$	2,664	$	2,114	$	1,810
Additions from tax positions taken in the current year	330		484		268
Additions from tax positions taken in prior years	—		66		36
Reductions from tax positions taken in prior years	(9)		—		—

Gross unrecognized tax benefits at end of the year	$	2,985	$	2,664	$	2,114

Of the total unrecognized tax benefits at September 30, 2023, $2.4 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, 2023, 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. To the Company’s knowledge, the Company is not currently under examination by any other taxing authorities.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details