CSP (CSPI) 10-Q9 May 242024 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	0-10843
Entity Registrant Name	CSP Inc
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2441294
Entity Address, Address Line One	175 Cabot Street
Entity Address, Address Line Two	Suite 210
Entity Address, City or Town	Lowell
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01854
City Area Code	978
Local Phone Number	954-5038
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CSPI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,753,900
Entity Central Index Key	0000356037
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 27,119	$ 25,217
Accounts receivable, net of allowances of $73 and $100	12,780	12,955
Financing receivables, net of allowances of $22 and $0	7,625	7,171
Inventories	1,478	2,542
Other current assets	1,860	2,479
Total current assets	50,862	50,364
Property, equipment and improvements, net	509	525
Operating lease right-of-use assets	722	966
Intangibles, net	48	46
Financing receivables due after one year, net of allowances of $48 and $0	2,178	4,224
Deferred income taxes, net	2,249	2,346
Cash surrender value of life insurance	5,477	5,356
Pension benefits assets	2,025	1,958
Other assets	130	119
Total assets	64,200	65,904
Current liabilities:
Accounts payable and accrued expenses	9,667	10,785
Line of credit	1,045	1,515
Note payable	0	449
Deferred revenue	1,668	1,898
Pension and retirement plans	81	98
Income taxes payable	74	914
Total current liabilities	12,535	15,659
Pension and retirement plans	1,203	1,251
Operating lease liabilities - noncurrent portion	235	482
Income taxes payable	359	513
Other noncurrent liabilities	1,621	1,851
Total liabilities	15,953	19,756
Shareholders' equity:
Common stock, $.01 par value per share; authorized, 9,754 shares; issued and outstanding 9,754 (1) and 9,456 (1) shares, respectively	98	94
Additional paid-in capital	21,625	20,837
Retained earnings	32,378	31,311
Accumulated other comprehensive loss	(5,854)	(6,094)
Total shareholders' equity	48,247	46,148
Total liabilities and shareholders' equity	$ 64,200	$ 65,904

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowances	$ 73	$ 100
Financing receivables, net of allowances, current	22	0
Financing receivables, net of allowances, non-current	$ 48	$ 0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	9,754,000	9,754,000
Common stock, shares issued	9,754,000	9,456,000
Common stock, shares outstanding	9,754,000	9,456,000
Percentage of stock dividend effected from stock split	100%

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Sales:
Total sales	$ 13,706	$ 13,269	$ 29,081	$ 31,613
Cost of sales:
Total cost of sales	7,228	8,279	18,508	20,806
Gross profit	6,478	4,990	10,573	10,807
Operating expenses:
Engineering and development	726	858	1,426	1,694
Selling, general and administrative	4,518	3,895	8,256	7,512
Total operating expenses	5,244	4,753	9,682	9,206
Operating income	1,234	237	891	1,601
Other income (expense):
Foreign exchange gain (loss)	32	(115)	(142)	(616)
Interest expense	(46)	(62)	(95)	(126)
Interest income	478	325	974	586
Other income, net	25	7	35	41
Total other income (expense), net	489	155	772	(115)
Income before income taxes	1,723	392	1,663	1,486
Income tax expense	135	71	148	204
Net income	1,588	321	1,515	1,282
Net income attributable to common shareholders	$ 1,482	$ 302	$ 1,417	$ 1,205
Net income per common share - basic	$ 0.16	$ 0.03	$ 0.16	$ 0.14
Net income per common share - diluted	$ 0.16	$ 0.03	$ 0.15	$ 0.14
Weighted average common shares outstanding - basic	9,070	8,782	8,967	8,683
Weighted average common shares outstanding - diluted	9,455	8,924	9,366	8,789
Product
Sales:
Total sales	$ 8,458	$ 8,988	$ 19,865	$ 23,209
Cost of sales:
Total cost of sales	5,416	6,580	14,644	17,351
Service
Sales:
Total sales	5,248	4,281	9,216	8,404
Cost of sales:
Total cost of sales	$ 1,812	$ 1,699	$ 3,864	$ 3,455

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical)	Mar. 31, 2024	Feb. 21, 2024
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Percentage of stock dividend effected from stock split	100%	100%

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income (Loss)	$ 1,588	$ 321	$ 1,515	$ 1,282
Foreign currency translation (loss) gain adjustments, net	(67)	178	240	842
Total comprehensive income	$ 1,521	$ 499	$ 1,755	$ 2,124

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings Adoption of Accounting Standards Update 2016-13	Retained Earnings	Accumulated other comprehensive loss	Adoption of Accounting Standards Update 2016-13	Total
Beginning Balance (in Shares) at Sep. 30, 2022	9,108,000
Beginning Balance at Sep. 30, 2022	$ 91	$ 19,431		$ 26,769	$ (7,328)		$ 38,963
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)				1,282			1,282
Other comprehensive income					842		842
Stock-based compensation		539					539
Restricted stock issuance	$ 3						3
Restricted stock issuance (in shares)	286,000
Issuance of shares under employee stock purchase plan		97					97
Issuance of shares under employee stock purchase plan (in shares)	28,000
Dividends declared				(278)			(278)
Ending Balance (in Shares) at Mar. 31, 2023	9,422,000
Ending Balance at Mar. 31, 2023	$ 94	20,067		27,773	(6,486)		41,448
Beginning Balance (in Shares) at Dec. 31, 2022	9,110,000
Beginning Balance at Dec. 31, 2022	$ 91	19,690		27,593	(6,664)		40,710
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)				321			321
Other comprehensive income					178		178
Stock-based compensation		280					280
Restricted stock issuance	$ 3						3
Restricted stock issuance (in shares)	284,000
Issuance of shares under employee stock purchase plan		97					97
Issuance of shares under employee stock purchase plan (in shares)	28,000
Dividends declared				(141)			(141)
Ending Balance (in Shares) at Mar. 31, 2023	9,422,000
Ending Balance at Mar. 31, 2023	$ 94	20,067		27,773	(6,486)		$ 41,448
Beginning Balance (in Shares) at Sep. 30, 2023	9,456,000						9,456,000
Beginning Balance at Sep. 30, 2023	$ 94	20,837	$ (15)	31,311	(6,094)	$ (15)	$ 46,148
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)				1,515			1,515
Other comprehensive income					240		240
Stock-based compensation		705					705
Restricted stock issuance	$ 3						3
Restricted stock issuance (in shares)	285,000
Issuance of shares under employee stock purchase plan	$ 1	83					84
Issuance of shares under employee stock purchase plan (in shares)	13,000
Dividends declared				(433)			$ (433)
Ending Balance (in Shares) at Mar. 31, 2024	9,754,000						9,754,000
Ending Balance at Mar. 31, 2024	$ 98	21,625		32,378	(5,854)		$ 48,247
Beginning Balance (in Shares) at Dec. 31, 2023	9,456,000
Beginning Balance at Dec. 31, 2023	$ 94	21,133		31,034	(5,787)		46,474
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)				1,588			1,588
Other comprehensive income					(67)		(67)
Stock-based compensation		409					409
Restricted stock issuance	$ 3						3
Restricted stock issuance (in shares)	285,000
Issuance of shares under employee stock purchase plan	$ 1	83					84
Issuance of shares under employee stock purchase plan (in shares)	13,000
Dividends declared				(244)			$ (244)
Ending Balance (in Shares) at Mar. 31, 2024	9,754,000						9,754,000
Ending Balance at Mar. 31, 2024	$ 98	$ 21,625		$ 32,378	$ (5,854)		$ 48,247

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
Dividends per share	$ 0.025	$ 0.015	$ 0.045	$ 0.030
Percentage of stock dividend effected from stock split	100%		100%

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net (loss) income	$ 1,515	$ 1,282
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation	150	171
Amortization of intangibles	4	6
Foreign exchange loss	142	616
Provision for credit losses	28	15
Provision for obsolete inventory	106	70
Amortization of lease right-of-use assets	244	299
Stock-based compensation expense on restricted stock awards	705	539
Deferred income taxes	98	0
Increase in cash surrender value of life insurance	(68)	(49)
Changes in operating assets and liabilities:
Decrease in accounts receivable	204	664
Decrease in financing receivable	1,529	893
Decrease (increase) in inventories	965	(2,037)
(Increase) decrease in refundable income taxes	0	228
Increase in operating lease right-of-use assets	0	(1)
Decrease in other assets	611	2,308
Decrease in accounts payable and accrued expenses	(1,197)	(8,479)
Increase in interest payable	57	59
Decrease in operating lease liabilities	(248)	(304)
Decrease in deferred revenue	(230)	(356)
Decrease in pension and retirement plans liabilities	(67)	(309)
Decrease in income taxes payable	(994)	0
Decrease in other long-term liabilities	(230)	(140)
Net cash provided by (used in) operating activities	3,324	(4,525)
Investing activities
Life insurance premiums paid	(53)	(64)
Purchase of held-to-maturity investments	0	(3,533)
Additions of intangible assets	(6)	(51)
Purchases of property, equipment and improvements	(134)	(181)
Net cash used in investing activities	(193)	(3,829)
Financing activities
Dividends paid	(433)	(278)
Net borrowing under line-of-credit agreement	(469)	(1,786)
Repayments on note payable	(427)	(406)
Principal payments on finance leases	0	(2)
Proceeds from issuance of shares under equity compensation plans	83	97
Net cash used in by financing activities	(1,246)	(2,375)
Effects of exchange rate on cash, net	17	59
Net increase (decrease) in cash and cash equivalents	1,902	(10,670)
Cash and cash equivalents beginning of period	25,217	23,982
Cash and cash equivalents end of period	27,119	13,312
Supplementary cash flow information:
Cash paid for income taxes	1,085	35
Cash paid for interest	22	73
Supplementary non-cash financing activities:
Customer financing for inventory sold (see Note 5 Financing receivables for details)	$ 1,742	$ 2,852

Basis of Presentation and New S

Basis of Presentation and New Significant Accounting Policy	6 Months Ended
Basis of Presentation and New Significant Accounting Policy	Mar. 31, 2024
Basis of Presentation and New Significant Accounting Policy
Basis of Presentation and New Significant Accounting Policy	Organization and Business CSP Inc. ("CSPi" or "CSPI" or "the Company" or "we" or "our") was incorporated in 1968 and is based in Lowell, Massachusetts. CSPi and its subsidiaries develop and market IT integration solutions, advanced security products, managed IT services, purpose built network adapters, and high-performance cluster computer systems to meet the diverse requirements of its commercial and defense customers worldwide. The Company operates in two segments, its Technology Solutions (“TS”) segment and High Performance Products (“HPP”) segment. 1. Basis of Presentation and New Significant Accounting Policy Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared by the Company and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited condensed consolidated financial statements should be read in conjunction with the notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Presentation - sales whose payment terms exceed one year Effective in fiscal year 2024 sales whose payment terms exceed one year is now presented as “Financing receivables, net of allowances” on the Consolidated Balance Sheets rather than being combined with Accounts receivable, net of allowances. The financial statement line item Long-term receivable is now labeled as “Financing receivables due after one year, net of allowances.” These changes are reflected retrospectively as of September 30, 2023. This change was made to provide more detail on the balance sheet related to these receivables and align with our notes to the unaudited condensed consolidated financial statements. Presentation – two-for-one stock split On February 21, 2024, the Board of Directors of CSP Inc. approved an amendment to the Company’s Articles of Organization to increase the total number of its authorized shares of Common Stock, par value $0.01 , from 7,500,000 shares to 9,753,900 shares (the “Amendment”). No shareholder approval was required under the Massachusetts Business Corporation Act with respect to the Amendment. The Amendment became effective upon filing with the Secretary of the Commonwealth of Massachusetts on February 21, 2024. On February 21, 2024, the Company announced its Board of Directors approved and declared a two -for-one stock split to be effected in the form of a 100% stock dividend. The stock dividend was paid on March 20, 2024 to shareholders of record as of the close of business on March 6, 2024. In accordance with ASC 505 Equity , we have determined this had a material effect on reducing share market value and therefore was treated this event as a stock split for accounting purposes. All common shares and per share amounts contained in these condensed interim financial statements and notes have been retrospectively restated to reflect this two -for-one stock split in the form a 100% dividend in accordance with ASC 260 Earnings Per Share , specifically ASC 260-10-55-12 . Use of estimates The preparation of condensed consolidated interim financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates and assumptions are related to the allowance for credit losses for accounts receivable and financing receivables, reserves for inventory obsolescence, the impairment assessment of intangible assets, right-of-use assets and lease liabilities, and the calculation of standalone selling price for revenue recognition, the calculation of liabilities related to deferred compensation and retirement plans and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions. Significant Accounting Policies Except for the change in certain accounting policies upon adoption of the accounting standard described below, there have been no significant changes to the Company's significant accounting policies described in PART II, Item 8, Note 1 Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) The Company adopted ASU 2016-13 (the “new CECL standard”) as of October 1, 2023 using the modified retrospective method, with a cumulative-effect adjustment to the opening balance of Shareholders’ equity as of October 1, 2023. The adoption primarily impacted the estimation of our Allowance for credit losses for Accounts receivable and Financing receivables. Additionally, it affected allowance for credit losses of contract assets with effects being immaterial. The total impact recorded on our initial adoption of ASU 2016-13 as of October 1, 2023 included an increase of Accounts receivable, net of $67k and a decrease of Financing receivables, net in the amount of $82k with the total adjustment decreasing retained earnings of $15k. For the accounting policies adopted and details of impacts from adoption refer to Note 4 - Accounts receivable, net Note 5 - Financing receivables, net Recently Accounting Pronouncements Not Yet Adopted Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.

Revenue

Revenue	6 Months Ended
Revenue	Mar. 31, 2024
Revenue
Revenue	2. Revenue We derive revenue from the sale of integrated hardware and software, third-party service contracts, professional services, managed services, financing of hardware and software, and other services. We recognize revenue from hardware upon transfer of control, which is at a point in time typically upon shipment when title transfers. Revenue from software is recognized at a point in time when the license is granted. Professional services generally include implementation, installation, and training services. Professional services are considered a series of distinct services that form one performance obligation and revenue is recognized over time as services are performed. Revenue generated from managed services is recognized over the term of the contract. Certain managed services contracts include financing of hardware and software. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease component includes hardware, which is subject to ASC 842, Leases Revenue from Contracts with Customers Other services generally include revenue generated through our royalty, extended warranty, multicomputer repair, and maintenance contracts. Royalty revenue is sales-based and recognized on the date of subsequent sale of the product, which occurs on the date of customer shipment. Revenue from extended warranty contracts is recognized ratably over the warranty period. Multicomputer repair services revenue is recognized upon control transfer when the customer takes possession of the computer at time of shipping. Revenue generated from maintenance services is recognized evenly over the term of the contract. The right of return risk lies with the original manufacturer of the product. Managed service contracts contain the right to refund if canceled within 30 days of inception. Any products with a standard warranty are treated as a warranty obligation under ASC 460, Guarantees. The following policies are applicable to our major categories of segment revenue transactions: TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, third-party service contracts, maintenance contracts, managed services, and financing of hardware and software. Financing revenue pertaining to the portion of an arrangement containing a lease is recognized in accordance with ASC 842. Financing revenue related to the lease is recorded in revenue as equipment leasing is part of our operations. Third-party service contracts are evaluated to determine whether such service revenue should be recorded as gross or net sales and whether over time or at point in time. HPP Segment Revenue HPP segment revenue is derived from the sale of integrated hardware and software, maintenance, and other services through the Multicomputer, Myricom, and ARIA product lines. Myricom revenue is derived from the sale of products, which are comprised of both hardware and embedded software which is essential to the products’ functionality, and post contract maintenance and support. Post contract maintenance and support is considered immaterial in the context of the contract and therefore is not a separate performance obligation. Multicomputer revenue is derived from the sale of hardware, software, extended warranties, royalties, and repair services. ARIA Zero Trust Gateway (“AZT”) revenue contains two performance obligations: a software license and post contract support. The transaction price is generally fixed consideration and allocated based on relative stand-alone selling price. Software license revenue is recognized at a point in time, generally when the license is made available to the customer. Post contract support revenue is recognized ratably over the contractual period of generally one year. See disaggregated revenues below by products/services and divisions/segments. Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,043 $ 61 $ 6,354 $ 6,415 $ 8,458 Service 459 60 4,729 4,789 5,248 Total sales $ 2,502 $ 121 $ 11,083 $ 11,204 $ 13,706 Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 972 $ 175 $ 7,840 $ 8,015 $ 8,987 Service 504 92 3,685 3,777 4,281 Finance * — — 1 1 1 Total sales $ 1,476 $ 267 $ 11,526 $ 11,793 $ 13,269 Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,515 $ 373 $ 16,976 $ 17,349 $ 19,864 Service 699 129 8,388 8,517 9,216 Finance * — — 1 1 1 Total sales $ 3,214 $ 502 $ 25,365 $ 25,867 $ 29,081 Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 3,134 $ 366 $ 19,707 $ 20,073 $ 23,207 Service 831 179 7,394 7,573 8,404 Finance * — — 2 2 2 Total sales $ 3,965 $ 545 $ 27,103 $ 27,648 $ 31,613 * Finance revenue is related to equipment leasing and is not subject to the guidance on revenue from contracts with customers (ASC 606). Significant Judgments The input method using labor hours expended relative to the total expected hours is used to recognize revenue for professional services. Only the hours that depict our performance toward satisfying a performance obligation are used to measure progress. An estimate of hours for each professional service agreement is made at the beginning of each contract based on prior experience and monitored throughout the performance of the services. This method is most appropriate as it depicts the measure of progress towards satisfaction of the performance obligation. A financing component exists when at contract inception the period between the transfer of a promised good and/or service to the customer differs from when the customer pays for the good and/or service. As a practical expedient, we have elected not to adjust the amount of consideration for effects of a significant financing component when it is anticipated the promised good or service will be transferred and the subsequent payment will be one year or less. Certain contracts contain a financing component including managed services contracts with financing of hardware and software. The interest rate used reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease component includes hardware, which is subject to ASC 842, Leases Revenue from Contracts with Customers When product and non-managed services are sold together, the allocation of the transaction price to each performance obligation is calculated based on the estimated relative selling price or a budgeted cost-plus margin approach, as appropriate. Due to the complex nature of these contracts, there is significant judgment in allocating the transaction price. These estimates are periodically reviewed by project managers, engineers, and other staff involved to ensure estimates remain appropriate. For items sold separately, including hardware, software, professional services, maintenance contracts, other services, and third-party service contracts, there is no allocation as there is one performance obligation. We recognize revenue from third-party service contracts as either gross sales or net sales depending on whether we are acting as a principal party to the transaction or simply acting as an agent or broker based on control and timing. We are a principal if we control the good or service before that good or service is transferred to the customer. We record revenue as gross when we are a principal party to the arrangement and net of cost when we are acting as a broker or agent for a third party. Under gross sales recognition, the entire selling price is recorded in revenue and our cost to the third-party service provider or vendor is recorded in cost of sales. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to revenue resulting in net sales equal to the gross profit on the transaction. Third-party service contracts are sold in different combinations with hardware, software, and services. When we are an agent, revenue is typically recorded at a point in time. When we are the principal, revenue is recognized over the contract term. We have concluded we are the agent in sales of third-party maintenance, software or hardware support, and certain security software that is sold with integral third-party delivered software maintenance that includes critical updates. Contract Assets and Liabilities When we have performed work but do not have an unconditional right to payment, a contract asset is recorded. When we have the right to bill a customer, accounts receivable is recorded as an unconditional right exists. Current contract assets were $0.6 million and $0.9 million as of March 31, 2024 and September 30, 2023, respectively. The current portion is recorded in other current assets on the condensed consolidated balance sheets. There were no noncurrent contract assets as of March 31, 2024 and September 30, 2023. The difference in the balances is due to regular timing differences between when work is performed and having an unconditional right to payment. Contract liabilities arise when payment is received before we transfer a good or service to the customer. Current contract liabilities were $1.7 million and $1.9 million as of March 31, 2024 and September 30, 2023, respectively. The current portion of contract liabilities is recorded in deferred revenue on the condensed consolidated balance sheets. There were no long-term contract liabilities as of March 31, 2024 and September 30, 2023, respectively. Revenue recognized for the three and six months ended March 31, 2024 that was included in contract liabilities as of September 30, 2023 was $0.2 million and $1.1 million, respectively. Contract Costs Incremental costs of obtaining a contract involving customer transactions where the revenue and the related transfer of goods and services are equal to or less than a one year period, are expensed as incurred, utilizing the practical expedient in ASC 340-40-25-4 three Costs to fulfill a contract are capitalized when the costs are related to a contract or anticipated contract, generate or enhance resources that will be used in satisfying performance obligations in the future, and costs are recoverable. Costs to fulfill a contract are related to the TS portion of the business and involve activities performed before managed services can be completed. The were no current capitalized costs as of March 31, 2024 or September 30, 2023. Other Projects are typically billed upon completion or at certain milestones. Product and services are typically billed when shipped or as services are being performed. Payment terms are typically 30 days to pay in full except in Europe where it could be up to 90 days. Most of our contracts are less than one year. There are certain contracts that contain a financing component. See Note 5 Financing receivables, net We have certain contracts that have an original term of more than one year. The royalty agreement is longer than one year, but not included in the table below as the royalties are sales-based. Managed service contracts are generally longer than one year. For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2024 is set forth in the table below: Fiscal Year (Amounts in thousands) 2024 $ 313 2025 429 2026 101 2027 4 $ 847

Earnings Per Share of Common St

Earnings Per Share of Common Stock	6 Months Ended
Earnings Per Share of Common Stock	Mar. 31, 2024
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	3 . Earnings Per Share of Common Stock Basic net income per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per share includes the dilutive effect of restricted stock, if any, calculated using the treasury stock method. For unvested restricted stock, assumed proceeds under the treasury stock method would include unamortized compensation cost. We are required to present earnings per share (“EPS”), utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company’s reported net income attributable to common stockholders are as follows: Three months ended Six Months Ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (Amounts in thousands except per share data) Net income $ 1,588 $ 321 $ 1,515 $ 1,282 Less: net income attributable to nonvested common stock (106) (19) (98) (77) Net income attributable to common shareholders $ 1,482 $ 302 $ 1,417 $ 1,205 Weighted average total shares outstanding – basic (1) 9,719 9,376 9,586 9,241 Less: weighted average non–vested shares outstanding (1) (649) (594) (619) (558) Weighted average number of common shares outstanding – basic (1) 9,070 8,782 8,967 8,683 Add: potential common shares from non–vested stock awards (1) 385 142 399 106 Weighted average common shares outstanding – diluted (1) 9,455 8,924 $ 9,366 8,789 Net income per common share - basic (1) $ 0.16 $ 0.03 $ 0.16 $ 0.14 Net income per common share - diluted (1) $ 0.16 $ 0.03 $ 0.15 $ 0.14 (1) Anti-dilutive securities include restricted stock, which are excluded from the diluted income per share computation. There were no anti-dilutive securities for the three and six months ended March 31, 2024. Non-vested restricted stock awards of 52 thousand and 202 thousand shares were excluded from the diluted net income per share calculation for the three and six months ended March 31, 2023, respectively.

Accounts receivable, net

Accounts receivable, net	6 Months Ended
Accounts receivable, net	Mar. 31, 2024
Accounts receivable, net
Accounts receivable, net	4 . Accounts receivable, net Upon adoption of the new CECL standard as described in Note 1 Basis of Presentation and New Significant Accounting Policy Amounts disclosed below for the three and six months ended March 31, 2024 reflect adoption of the new CECL standard and the amounts disclosed for the three and six months ended March 31, 2023 reflect superseded guidance. The following table presents the changes in the allowance for accounts receivable for the periods indicated. Three months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Allowance for credit losses for accounts receivable: Balances at beginning of the period $ 61 $ 115 Adjustment for adoption of new CECL standard - - Charge-offs - - Recoveries - - Provision for credit losses 12 (9) Balances at end of the period $ 73 $ 106 Six months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Allowance for credit losses for accounts receivable: Balances at beginning of the period $ 100 $ 88 Adjustment for adoption of new CECL standard (67) - Charge-offs - - Provision for credit losses 40 18 Balances at end of the period $ 73 $ 106

Financing receivables, net

Financing receivables, net	6 Months Ended
Financing receivables, net	Mar. 31, 2024
Financing receivables, net
Financing receivables, net	5 . Financing receivables, net In the TS US division financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. This financing is separate from agreements with a leasing component, see Note 7 Leases The Company assigns an internal risk rating to each customer at inception, which groups customers into a portfolio based off this risk rating. A risk rating is assigned by analyzing a customer’s financial statements and the latest Fitch rating if publicly available as well as recent payment activity. The credit quality of customers is continually monitored by these items. Accounts rated low risk have the equivalent of a Fitch rating of BBB– or higher, while accounts rated moderate risk have the equivalent of BB. The Company does not offer financing for customers where the risk is classified as higher, which would be lower than the equivalent of a BB Fitch rating. Financing receivables, net carry an average weighted interest rate of 7.1%, which reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. The amount of interest income earned from sales whose payment terms exceed one year for the three months ended March 31, 2024 and 2023 was $158 thousand and $189 thousand, respectively. The amount of interest income earned from sales whose payment terms exceed one year for the six months ended March 31, 2024 and 2023 was $351 thousand and $371 thousand, respectively. Interest income from these agreements is recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. Amounts disclosed below as of March 31, 2024 reflect adoption of the new CECL standard and the amounts disclosed as of September 30, 2023 reflect superseded guidance. The following table presents the components of the Company’s Financing receivables, net segregated by portfolio (risk rating) for the periods indicated: As of March 31, 2024 As of September 30, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Financing receivables, net: Financing receivables, gross $ 7,235 $ 3,247 $ 10,482 $ 8,893 $ 3,361 $ 12,254 Unearned interest income (210) (399) (609) (325) (534) (859) Allowance for credit losses (16) (54) (70) - - - Financing receivables, net $ 7,009 $ 2,794 $ 9,803 $ 8,568 $ 2,827 $ 11,395 Short-term $ 6,701 $ 924 $ 7,625 $ 6,281 $ 890 $ 7,171 Long-term $ 308 $ 1,870 $ 2,178 $ 2,287 $ 1,937 $ 4,224 Amounts disclosed below for the three and six months ended March 31, 2024 reflect adoption of the new CECL standard and the amounts disclosed for the three and six months ended March 31, 2023 reflect superseded guidance. The following table presents the changes in Allowance for credit losses for Financing receivables, net for the periods indicated: Three months ended March 31, 2024 March 31, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Allowance for credit losses for financing receivables: Balances at beginning of the period $ 16 $ 61 $ 77 $ - $ - $ - Charge-offs - - - - - - Recoveries Provision charged to Consolidated Statements of Operations - (7) (7) - - - Balances at end of the period $ 16 $ 54 $ 70 $ - $ - $ - Six months ended March 31, 2024 March 31, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Allowance for credit losses for financing receivables: Balances at beginning of the period $ - $ - $ - $ - $ - $ - Adjustment for adoption of new CECL standard 27 55 82 - - - Charge-offs - - - - - - Provision charged to Consolidated Statements of Operations (11) (1) (12) - - - Balances at end of the period $ 16 $ 54 $ 70 $ - $ - $ - Upon adoption of the new CECL standard as described in Note 1 Basis of Presentation and New Significant Accounting Policy internal historical data as well as macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios. Macroeconomic conditions include the level of gross domestic product (“GDP”) growth and unemployment rates, which directly correlate with our historical credit losses. The expense associated with the allowance for expected credit losses is recognized in Selling, general, and administrative expenses in the Consolidated Statements of Operations. Financing receivables whose payment terms exceed one year are placed on non-accrual status, meaning interest income stops being recorded, when the customer has a past due amount in excess of 30 days or reasonable doubt exists in collecting all interest and principal. A payment due in excess of 30 days is considered delinquent. If a payment is received for a receivable on non-accrual status the payment is first applied to interest and then principal. Recording interest income resumes once no reasonable doubt exists regarding collecting all interest and principal. There were no financing receivables placed on non-accrual status as of March 31, 2024 or September 30, 2023. The following table presents Financing receivables, gross, including accrued interest, by credit quality indicator segregated by risk rating and year of origination as of March 31, 2024: March 31, 2024 Fiscal year of origination Risk Rating 2024 2023 2022 2021 Total Moderate $ — $ 2,969 $ 278 $ — $ 3,247 Low 655 753 4,267 1,560 7,235 Total $ 655 $ 3,722 $ 4,545 $ 1,560 $ 10,482 Contractual maturities of outstanding financing receivables are as follows: Fiscal year ending September 30: (Amounts in thousands) 2024 $ 5,288 2025 3,497 2026 1,069 2027 628 Total payments $ 10,482 Less: unearned interest income (609) Less: allowance for credit losses (70) Total, net of unearned interest income and allowance for credit losses $ 9,803

Inventories

Inventories	6 Months Ended
Inventories	Mar. 31, 2024
Inventories
Inventories	6 . Inventories Inventories consist of the following: March 31, September 30, 2024 2023 (Amounts in thousands) Raw materials $ 196 $ 247 Work-in-process 52 36 Finished goods 1,230 2,259 Total $ 1,478 $ 2,542 We evaluate inventory for obsolescence on at least a quarterly basis or more frequently if needed. Our HPP segment has a multi-faceted approach in determining obsolescence including reviewing inventory by product line, program, and individual part. In the TS segment, we seek to minimize obsolete inventory by having nearly all of our inventory purchased in conjunction with a sales agreement. From time to time, we do purchase certain inventory in bulk to receive discounts, but only when we anticipate selling this inventory. The inventory we purchase at the TS segment is in high demand, especially in the current environment, and has a limited risk of obsolescence.

Leases

Leases	6 Months Ended
Leases	Mar. 31, 2024
Leases
Leases	7 . Leases Information related to both lessee and lessor The components of lease costs for the three months ended March 31, 2024 and 2023 are as follows: Three months ended Condensed Consolidated Statements of Operations Location March 31, 2024 March 31, 2023 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 132 162 Short-term lease cost Selling, general, and administrative 8 11 Total lease costs $ 140 $ 174 Less sublease interest income Revenue (1) (1) Total lease costs, net of sublease interest income $ 139 $ 173 The components of lease costs for the six months ended March 31, 2024 and 2023 are as follows: Six months ended Condensed Consolidated Statements of Operations Location March 31, 2024 March 31, 2023 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 264 324 Short-term lease cost Selling, general, and administrative 17 21 Total lease costs $ 281 $ 346 Less sublease interest income Revenue (1) (2) Total lease costs, net of sublease interest income $ 280 $ 344 Supplemental cash flow information related to leases for the six months ended March 31, 2024 and 2023 is below: Six months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 268 $ 330 Operating cash flows paid for short-term leases 17 21 Operating cash flows paid for finance leases 1 1 Financing cash flows paid for finance leases — 2 Cash received from subleases (7) (10)

Accounts payable and Other nonc

Accounts payable and Other noncurrent liabilities	6 Months Ended
Accounts payable and Other noncurrent liabilities	Mar. 31, 2024
Accounts payable and Other noncurrent liabilities
Accounts payable and accrued expenses, and Other noncurrent liabilities	8 . Accounts payable and Other noncurrent liabilities The Company enters into certain multi-year agreements with vendors when also entering into some of the multi-year contracts the Company enters into with customers. See Note 5 Financing receivables, net There was not an interest rate stated in the agreements and therefore interest was imputed under ASC 835 Interest Interest expense related to these agreements for the three months ended March 31, 2024 and 2023 was $35 thousand and $53 thousand, respectively. Interest expense related to these agreements for the six months ended March 31, 2024 and 2023 was $88 thousand and $109 thousand, respectively. The amounts owed for these agreements are in Accounts payable and Other noncurrent liabilities because they are owed to vendors rather than banks or financial institutions for borrowings. See Note 9 Notes Payable and Line of Credit Below are details of the agreements with the vendors that contain imputed interest: March 31, 2024 September 30, 2023 (Amounts in thousands) Current $ 1,789 $ 1,718 Less: discount (104) (140) Accounts payable and accrued expenses $ 1,685 $ 1,578 Noncurrent $ 1,686 $ 1,967 Less: discount (65) (116) Other noncurrent liabilities $ 1,621 $ 1,851 The Company had a total of approximately $2.9 million due (net of interest) to one of these vendors as of March 31, 2024. This is approximately 25% of Accounts payable and other noncurrent liabilities. The Company had a total of approximately $3.3 million due (net of interest) to one of these vendors as of September 30, 2023. This is approximately 26% of Accounts payable and other noncurrent liabilities. It was the same vendor as of March 31, 2024 and September 30, 2023 that only transacts with the US division of the TS segment. The TS segment has many vendors it transacts with and does not have any specific agreement with this vendor that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms.

Note Payable and Line of Credit

Note Payable and Line of Credit	6 Months Ended
Note Payable and Line of Credit	Mar. 31, 2024
Note Payable and Line of Credit.
Note Payable and Line of Credit	9. Notes Payable and Line of Credit In October 2019, the Company borrowed $2.0 million with a 5.1% rate of interest related to a multi-year agreement with a customer. There was no interest expense related to the note payable for the six months ended March 31, 2024. Interest expense related to the notes for the three and six months ended March 31, 2023 was $6 thousand and $11 thousand, respectively. March 31, 2024 September 30, 2023 (Amounts in thousands) Current $ — $ 449 Less: notes discount — — Note payable - current portion $ — $ 449 As of March 31, 2024 and September 30, 2023, the Company maintained an inventory line of credit with a borrowing capacity of $15.0 million. It may be used by the TS and HPP segments in the US to purchase inventory from approved vendors with payment terms which exceed those offered by the vendors. No interest accrues under the inventory line of credit when advances are paid within terms, however, late payments are subject to an interest charge of Prime plus 5%. The credit agreement for the inventory line of credit contains financial covenants which require the Company to maintain the following TS segment-specific financial ratios: (1) a minimum current ratio of 1.2, (2) tangible net worth of no less than $4.0 million, and (3) a maximum ratio of total liabilities to total net worth of less than 5.0:1. As of March 31, 2024 and September 30, 2023, Company borrowings, all from the TS segment, under the inventory line of credit were $1.0 million and $1.5 million, respectively, and the Company was in compliance with all financial covenants. As of March 31, 2024 and September 30, 2023, this line of credit also includes availability of a limited cash withdrawal of up to $1.0 million. As of March 31, 2024 and September 30, 2023 there were no cash withdrawals outstanding.

Pension and Retirement Plans

Pension and Retirement Plans	6 Months Ended
Pension and Retirement Plans	Mar. 31, 2024
Pension and Retirement Plans
Pension and Retirement Plans	10. Pension and Retirement Plans The Company’s operations have defined benefit and defined contribution plans in the UK and in the US. In the UK, the Company provides defined benefit pension plans and defined contribution plans for some of its employees. In the US, the Company provides benefits through supplemental retirement plans to certain former employees. The US supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. The Company also provides for officer death benefits through post-retirement plans to certain current officers of the Company in the US All the Company’s defined benefit plans are closed to newly hired employees and have been since September 2009. The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the condensed consolidated balance sheets. The Company’s pension plan in the UK is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the US and UK plans are as follows: Three Months Ended March 31, 2024 2023 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 109 $ 3 $ 112 $ 105 $ 3 $ 108 Expected return on plan assets (146) — (146) (140) — (140) Amortization of past service costs 2 — 2 2 — 2 Amortization of net (gain) loss — (2) (2) — (1) (1) Net periodic (benefit) cost $ (35) $ 1 $ (34) $ (33) $ 2 $ (31) Post Retirement: Service cost $ — $ 6 $ 6 $ — $ 6 $ 6 Interest cost — 16 16 — 16 16 Amortization of net gain — (43) (43) — (49) (49) Net periodic benefit $ — $ (21) $ (21) $ — $ (27) $ (27) Six months ended March 31, 2024 2023 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 221 $ 6 $ 227 $ 211 $ 7 $ 218 Expected return on plan assets (296) — (296) (282) — (282) Amortization of past service costs 4 — 4 4 — 4 Amortization of net gain — (3) (3) — (2) (2) Net periodic (benefit) cost $ (71) $ 3 $ (68) $ (67) $ 5 $ (62) Post Retirement: Service cost $ — $ 12 $ 12 $ — $ 12 $ 12 Interest cost — 32 32 — 31 31 Amortization of net gain — (86) (86) — (98) (98) Net periodic benefit $ — $ (42) $ (42) $ — $ (55) $ (55) The fair value of the assets held by the UK pension plan by asset category are as follows: Fair Values as of March 31, 2024 September 30, 2023 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 137 $ 137 $ — $ — $ 428 $ 428 $ — $ — Fixed income 9,682 8,142 1,540 — 8,703 7,251 1,452 — Equity 1,061 292 769 — 903 266 637 — Total plan assets $ 10,880 $ 8,571 $ 2,309 $ — $ 10,034 $ 7,945 $ 2,089 $ —

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Mar. 31, 2024
Income Taxes
Income Taxes	11. Income Taxes An income tax expense of $135 thousand was recorded for the three months ended March 31, 2024 compared to an income tax expense of $71 thousand in the same period of 2023. The estimated annualized effective income tax rate for the three months ended March 31, 2024 was 18%, excluding the impacts of the UK entity which continues to experience losses and maintains a full valuation allowance. The difference between our effective income tax rate and the U.S. federal statutory rate are the impact of state taxes and tax credits that we expect to be able to utilize against federal and state taxes. The effective tax rate for the three months ended March 31, 2024 was 8%, excluding the UK as previously mentioned, driven by excess tax benefits on restricted stock awards vesting during the period. The income tax expense for the three months ended March 31, 2023 was primarily driven by minimum state tax expenses and the change in valuation allowance for the period. For the three months ended March 31, 2023, we used the discrete method to arrive at tax expense due to the full valuation allowance against our deferred tax assets and cumulative loss position. An income tax expense of $148 thousand was recorded for the six months ended March 31, 2024 compared to an income tax expense of $204 thousand in the same period of 2023. The effective tax rate for the six months ended March 31, 2024 was 8%, excluding the UK as previously mentioned, driven by excess tax benefits on restricted stock awards vesting during the period. The income tax expense for the six months ended March 31, 2023 was primarily driven by minimum state tax expenses and the change in valuation allowance for the period. For the six months ended March 31, 2023, we used the discrete method to arrive at tax expense due to the full valuation allowance against our deferred tax assets and cumulative loss position. While the Company had maintained a full valuation allowance, we had been using the discrete effective tax rate method to calculate income taxes for the purposes of quarterly reporting. Now that the valuation allowance has been reduced, the Company has resumed using the annualized effective tax rate method to calculate income taxes as prescribed under ASC 740 and has done so for the three and six months ended March 31, 2024.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
Accumulated Other Comprehensive Loss	Mar. 31, 2024
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	12. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: March 31, September 30, 2024 2023 (Amounts in thousands) Cumulative effect of foreign currency translation, net $ (4,589) $ (4,829) Cumulative unrealized loss on pension liability (1,265) (1,265) Accumulated other comprehensive loss, net $ (5,854) $ (6,094)

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	6 Months Ended
Fair Value of Financial Assets and Liabilities	Mar. 31, 2024
Fair Value of Financial Assets and Liabilities
Fair Value of Financial Assets and Liabilities	13. Fair Value of Financial Assets and Liabilities Under the fair value standards fair value is based on the exit price and defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement should reflect all the assumptions that market participants would use in pricing an asset or liability. A fair value hierarchy is established in the authoritative guidance outlined in three levels ranking from Level 1 to Level 3 with Level 1 being the highest priority. Level 1: observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly Level 3: unobservable inputs (e.g., a reporting entity’s or other entity’s own data) The Company had no assets or liabilities measured at fair value on a recurring (except our pension plan assets and whole life insurance policies, see Note 10 Pension and Retirement Plans To estimate fair value of the financial instruments below, quoted market prices are used when available and classified within Level 1. If this data is not available, we use observable market-based inputs to estimate fair value, which are classified within Level 2. If the preceding information is unavailable, we use internally generated data to estimate fair value which is classified within Level 3. As of March 31, 2024 As of September 30, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 27,119 $ 27,119 $ 25,217 $ 25,217 1 Condensed Consolidated Balance Sheets Accounts receivable, net 12,780 12,780 12,955 12,955 2 Note 4 Financing receivables, net 9,803 9,803 11,395 11,395 3 Note 5 Liabilities: Accounts payable and accrued expenses and other long-term liabilities* 3,306 3,306 3,429 3,429 3 Note 8 Line of Credit 1,045 1,045 1,515 1,515 2 Note 9 Note payable — — 449 449 3 Note 9 *Original maturity over one year Cash and cash equivalents Carrying amount approximated fair value. Accounts and long-term receivable with original maturity over one year Fair value was estimated by discounting future cash flows based on the current rate with similar terms. Line of credit The fair value of our line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our outstanding revolving line of credit approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. No interest accrues under the inventory line of credit when advances are paid within terms. Notes Payable Fair value was estimated by discounting future cash flows based on the current rate the Company could get in another transaction with similar terms based on historical information. Fair value of accounts receivable with an original maturity of one year or less and accounts payable was not materially different from their carrying values as of March 31, 2024 and September 30, 2023.

Segment Information

Segment Information	6 Months Ended
Segment Information	Mar. 31, 2024
Segment Information
Segment Information	14. Segment Information The following tables present certain operating segment information for the three and six months ended March 31, 2024 and 2023. Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,043 $ 61 $ 6,354 $ 6,415 $ 8,458 Service 459 60 4,729 4,789 5,248 Total sales $ 2,502 $ 121 $ 11,083 $ 11,204 $ 13,706 Operating income (loss) $ 266 $ (56) $ 1,024 $ 968 $ 1,234 Interest expense $ (3) $ — $ (43) $ (43) $ (46) Interest income $ 6 $ 54 $ 418 $ 472 $ 478 Total assets $ 11,599 $ 7,581 $ 45,020 $ 52,601 $ 64,200 Capital expenditures $ (12) $ — $ (2) $ (2) $ (14) Depreciation and amortization $ (25) $ — $ (50) $ (50) $ (75) 2023 Sales: Product $ 972 $ 175 $ 7,841 $ 8,016 $ 8,988 Service 504 92 3,685 3,777 4,281 Total sales $ 1,476 $ 267 $ 11,526 $ 11,793 $ 13,269 Operating (loss) income $ (693) $ (10) $ 940 $ 930 $ 237 Interest expense $ (3) $ — $ (59) $ (59) $ (62) Interest income $ 7 $ 44 $ 274 $ 318 $ 325 Total assets $ 8,695 $ 6,930 $ 50,399 $ 57,329 $ 66,024 Capital expenditures $ (24) $ — $ (113) $ (113) $ (137) Depreciation and amortization $ (27) $ — $ (61) $ (61) $ (88) Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,515 $ 373 $ 16,977 $ 17,350 $ 19,865 Service 699 129 8,388 8,517 9,216 Total sales $ 3,214 $ 502 $ 25,365 $ 25,867 $ 29,081 Operating (loss) income $ (1,079) $ (53) $ 2,023 $ 1,970 $ 891 Interest expense $ (7) $ — $ (88) $ (88) $ (95) Interest income $ 12 $ 108 $ 854 $ 962 $ 974 Total assets $ 11,599 $ 7,581 $ 45,020 $ 52,601 $ 64,200 Capital expenditures $ (118) $ — $ (16) $ (16) $ (134) Depreciation and amortization $ (53) $ — $ (101) $ (101) $ (154) 2023 Sales: Product $ 3,134 $ 366 $ 19,709 $ 20,075 $ 23,209 Service 831 179 7,394 7,573 8,404 Total sales $ 3,965 $ 545 $ 27,103 $ 27,648 $ 31,613 Operating (loss) income $ (791) $ 4 $ 2,388 $ 2,392 $ 1,601 Interest expense $ (6) $ — $ (120) $ (120) $ (126) Interest income $ 8 $ 79 $ 499 $ 578 $ 586 Total assets $ 8,695 $ 6,930 $ 50,399 $ 57,329 $ 66,024 Capital expenditures $ (40) $ — $ (141) $ (141) $ (181) Depreciation and amortization $ (56) $ — $ (121) $ (121) $ (177) Operating income (loss) consists of sales less cost of sales, engineering and development expenses, and selling, general and administrative expenses but is not affected by either other income (expense) or by income tax expense (benefit). Non-operating expenses/income consists principally of interest income from transactions with payment terms exceeding one year (see Note 5 Financing receivables, net Note 8 Accounts payable and other noncurrent liabilities The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three and six months ended March 31, 2024 and 2023. Three months ended March 31, Six months ended March 31, 2024 2023 2024 2023 (Amounts in millions) (Amounts in millions) Customer % of Total Customer % of Total Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues (Amounts in millions) Customer A $ 2.1 15 % $ — - % $ 2.1 7 % $ — - % Customer B $ 0.1 1 % $ 1.3 10 % $ 0.6 2 % $ 1.8 6 % Customer A above as of March 31, 2024 had a balance of $2.4 million, or 19%, of accounts receivable. One customer not listed above as of March 31, 2024 had a balance of $6.4 million, or 50%, of accounts receivable. There was no other customer with 10% or more of accounts receivable as of March 31, 2024. There was no customer with 10% or more of accounts receivable as of September 30, 2023. A customer not listed above had a balance of $5.7 million, or 58%, of financing receivables, net and $7.4 million, or 65%, as of March 31, 2024 and September 30, 2023, respectively. A customer not listed above had a balance of $2.2 million, or 22%, of financing receivables, net and $2.5 million, or 22%, as of March 31, 2024 and September 30, 2023, respectively. A customer not listed above had a balance of $1.3 million, or 13%, of financing receivables and $1.5 million, or 13%, as of March 31, 2024 and September 30, 2023, respectively. There was no other customer with 10% or more of financing receivables, net as of March 31, 2024 or September 30, 2023.

Dividend

Dividend	6 Months Ended
Dividend	Mar. 31, 2024
Dividend
Dividend	15. Dividend On December 12, 2023, the Company’s board of directors declared a cash dividend of $0.020 per share outstanding which was paid on January 9, 2024 to shareholders of record as of December 22, 2023, the record date. On February 14, 2024, the Company’s board of directors declared a cash dividend of $0.025 per share outstanding which was paid on March 8, 2024 to shareholders of record as of February 26, 2024, the record date. On February 21, 2024, the Company announced its Board of Directors approved and declared a two -for-one stock split to be effected in the form of a 100% stock dividend. The stock dividend was paid on March 20, 2024 to shareholders of record as of the close of business on March 6, 2024

Basis of Presentation and New_2

Basis of Presentation and New Significant Accounting Policy (Policies)	6 Months Ended
	Mar. 31, 2024
Basis of Presentation and New Significant Accounting Policy
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared by the Company and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited condensed consolidated financial statements should be read in conjunction with the notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023.
Presentation - sales whose payment terms exceed one year	Presentation - sales whose payment terms exceed one year Effective in fiscal year 2024 sales whose payment terms exceed one year is now presented as “Financing receivables, net of allowances” on the Consolidated Balance Sheets rather than being combined with Accounts receivable, net of allowances. The financial statement line item Long-term receivable is now labeled as “Financing receivables due after one year, net of allowances.” These changes are reflected retrospectively as of September 30, 2023. This change was made to provide more detail on the balance sheet related to these receivables and align with our notes to the unaudited condensed consolidated financial statements.
Presentation - two-for-one stock split	Presentation – two-for-one stock split On February 21, 2024, the Board of Directors of CSP Inc. approved an amendment to the Company’s Articles of Organization to increase the total number of its authorized shares of Common Stock, par value $0.01 , from 7,500,000 shares to 9,753,900 shares (the “Amendment”). No shareholder approval was required under the Massachusetts Business Corporation Act with respect to the Amendment. The Amendment became effective upon filing with the Secretary of the Commonwealth of Massachusetts on February 21, 2024. On February 21, 2024, the Company announced its Board of Directors approved and declared a two -for-one stock split to be effected in the form of a 100% stock dividend. The stock dividend was paid on March 20, 2024 to shareholders of record as of the close of business on March 6, 2024. In accordance with ASC 505 Equity , we have determined this had a material effect on reducing share market value and therefore was treated this event as a stock split for accounting purposes. All common shares and per share amounts contained in these condensed interim financial statements and notes have been retrospectively restated to reflect this two -for-one stock split in the form a 100% dividend in accordance with ASC 260 Earnings Per Share , specifically ASC 260-10-55-12 .
Use of Estimates	Use of estimates The preparation of condensed consolidated interim financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates and assumptions are related to the allowance for credit losses for accounts receivable and financing receivables, reserves for inventory obsolescence, the impairment assessment of intangible assets, right-of-use assets and lease liabilities, and the calculation of standalone selling price for revenue recognition, the calculation of liabilities related to deferred compensation and retirement plans and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions.
Recently Adopted Accounting Pronouncements	Significant Accounting Policies Except for the change in certain accounting policies upon adoption of the accounting standard described below, there have been no significant changes to the Company's significant accounting policies described in PART II, Item 8, Note 1 Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) The Company adopted ASU 2016-13 (the “new CECL standard”) as of October 1, 2023 using the modified retrospective method, with a cumulative-effect adjustment to the opening balance of Shareholders’ equity as of October 1, 2023. The adoption primarily impacted the estimation of our Allowance for credit losses for Accounts receivable and Financing receivables. Additionally, it affected allowance for credit losses of contract assets with effects being immaterial. The total impact recorded on our initial adoption of ASU 2016-13 as of October 1, 2023 included an increase of Accounts receivable, net of $67k and a decrease of Financing receivables, net in the amount of $82k with the total adjustment decreasing retained earnings of $15k. For the accounting policies adopted and details of impacts from adoption refer to Note 4 - Accounts receivable, net Note 5 - Financing receivables, net Recently Accounting Pronouncements Not Yet Adopted Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
Revenue (Tables)	Mar. 31, 2024
Revenue
Schedule of disaggregated revenues	See disaggregated revenues below by products/services and divisions/segments. Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,043 $ 61 $ 6,354 $ 6,415 $ 8,458 Service 459 60 4,729 4,789 5,248 Total sales $ 2,502 $ 121 $ 11,083 $ 11,204 $ 13,706 Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 972 $ 175 $ 7,840 $ 8,015 $ 8,987 Service 504 92 3,685 3,777 4,281 Finance * — — 1 1 1 Total sales $ 1,476 $ 267 $ 11,526 $ 11,793 $ 13,269 Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,515 $ 373 $ 16,976 $ 17,349 $ 19,864 Service 699 129 8,388 8,517 9,216 Finance * — — 1 1 1 Total sales $ 3,214 $ 502 $ 25,365 $ 25,867 $ 29,081 Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2023 Sales: Product $ 3,134 $ 366 $ 19,707 $ 20,073 $ 23,207 Service 831 179 7,394 7,573 8,404 Finance * — — 2 2 2 Total sales $ 3,965 $ 545 $ 27,103 $ 27,648 $ 31,613 * Finance revenue is related to equipment leasing and is not subject to the guidance on revenue from contracts with customers (ASC 606).
Schedule of revenue, performance obligations	Fiscal Year (Amounts in thousands) 2024 $ 313 2025 429 2026 101 2027 4 $ 847

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	6 Months Ended
Earnings Per Share of Common Stock (Tables)	Mar. 31, 2024
Earnings Per Share of Common Stock
Schedule of basic and diluted earnings per share computations	Basic and diluted earnings per share computations for the Company’s reported net income attributable to common stockholders are as follows: Three months ended Six Months Ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (Amounts in thousands except per share data) Net income $ 1,588 $ 321 $ 1,515 $ 1,282 Less: net income attributable to nonvested common stock (106) (19) (98) (77) Net income attributable to common shareholders $ 1,482 $ 302 $ 1,417 $ 1,205 Weighted average total shares outstanding – basic (1) 9,719 9,376 9,586 9,241 Less: weighted average non–vested shares outstanding (1) (649) (594) (619) (558) Weighted average number of common shares outstanding – basic (1) 9,070 8,782 8,967 8,683 Add: potential common shares from non–vested stock awards (1) 385 142 399 106 Weighted average common shares outstanding – diluted (1) 9,455 8,924 $ 9,366 8,789 Net income per common share - basic (1) $ 0.16 $ 0.03 $ 0.16 $ 0.14 Net income per common share - diluted (1) $ 0.16 $ 0.03 $ 0.15 $ 0.14 (1)

Accounts receivable, net (Table

Accounts receivable, net (Tables)	6 Months Ended
Accounts receivable, net (Tables)	Mar. 31, 2024
Accounts receivable, net
Schedule of accounts receivable net	Three months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Allowance for credit losses for accounts receivable: Balances at beginning of the period $ 61 $ 115 Adjustment for adoption of new CECL standard - - Charge-offs - - Recoveries - - Provision for credit losses 12 (9) Balances at end of the period $ 73 $ 106 Six months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Allowance for credit losses for accounts receivable: Balances at beginning of the period $ 100 $ 88 Adjustment for adoption of new CECL standard (67) - Charge-offs - - Provision for credit losses 40 18 Balances at end of the period $ 73 $ 106

Financing receivable, net (Tabl

Financing receivable, net (Tables)	6 Months Ended
Financing receivable, net (Tables)	Mar. 31, 2024
Financing receivables, net
Schedule of financing receivable net segregated by portfolio (risk portfolio)	As of March 31, 2024 As of September 30, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Financing receivables, net: Financing receivables, gross $ 7,235 $ 3,247 $ 10,482 $ 8,893 $ 3,361 $ 12,254 Unearned interest income (210) (399) (609) (325) (534) (859) Allowance for credit losses (16) (54) (70) - - - Financing receivables, net $ 7,009 $ 2,794 $ 9,803 $ 8,568 $ 2,827 $ 11,395 Short-term $ 6,701 $ 924 $ 7,625 $ 6,281 $ 890 $ 7,171 Long-term $ 308 $ 1,870 $ 2,178 $ 2,287 $ 1,937 $ 4,224
Schedule of changes in Allowance for credit losses for Financing receivables, net	Three months ended March 31, 2024 March 31, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Allowance for credit losses for financing receivables: Balances at beginning of the period $ 16 $ 61 $ 77 $ - $ - $ - Charge-offs - - - - - - Recoveries Provision charged to Consolidated Statements of Operations - (7) (7) - - - Balances at end of the period $ 16 $ 54 $ 70 $ - $ - $ - Six months ended March 31, 2024 March 31, 2023 Risk Rating Risk Rating Low Moderate Total Low Moderate Total (Amounts in thousands) (Amounts in thousands) Allowance for credit losses for financing receivables: Balances at beginning of the period $ - $ - $ - $ - $ - $ - Adjustment for adoption of new CECL standard 27 55 82 - - - Charge-offs - - - - - - Provision charged to Consolidated Statements of Operations (11) (1) (12) - - - Balances at end of the period $ 16 $ 54 $ 70 $ - $ - $ -
Financing receivables, gross, including accrued interest, by credit quality indicator segregated by risk rating and year of origination	March 31, 2024 Fiscal year of origination Risk Rating 2024 2023 2022 2021 Total Moderate $ — $ 2,969 $ 278 $ — $ 3,247 Low 655 753 4,267 1,560 7,235 Total $ 655 $ 3,722 $ 4,545 $ 1,560 $ 10,482
Summary of contractual maturities of outstanding financing	Fiscal year ending September 30: (Amounts in thousands) 2024 $ 5,288 2025 3,497 2026 1,069 2027 628 Total payments $ 10,482 Less: unearned interest income (609) Less: allowance for credit losses (70) Total, net of unearned interest income and allowance for credit losses $ 9,803

Inventories (Tables)

Inventories (Tables)	6 Months Ended
Inventories (Tables)	Mar. 31, 2024
Inventories
Schedule of Inventory, Current	Inventories consist of the following: March 31, September 30, 2024 2023 (Amounts in thousands) Raw materials $ 196 $ 247 Work-in-process 52 36 Finished goods 1,230 2,259 Total $ 1,478 $ 2,542

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases
Schedule of components of lease costs	Three months ended Condensed Consolidated Statements of Operations Location March 31, 2024 March 31, 2023 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 132 162 Short-term lease cost Selling, general, and administrative 8 11 Total lease costs $ 140 $ 174 Less sublease interest income Revenue (1) (1) Total lease costs, net of sublease interest income $ 139 $ 173 Six months ended Condensed Consolidated Statements of Operations Location March 31, 2024 March 31, 2023 (Amounts in thousands) Finance Lease: Interest on lease liabilities Interest expense $ — $ 1 Operating Lease: Operating lease cost Selling, general, and administrative 264 324 Short-term lease cost Selling, general, and administrative 17 21 Total lease costs $ 281 $ 346 Less sublease interest income Revenue (1) (2) Total lease costs, net of sublease interest income $ 280 $ 344
Supplemental cash flow information	Six months ended March 31, 2024 March 31, 2023 (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 268 $ 330 Operating cash flows paid for short-term leases 17 21 Operating cash flows paid for finance leases 1 1 Financing cash flows paid for finance leases — 2 Cash received from subleases (7) (10)

Accounts payable and Other no_2

Accounts payable and Other noncurrent liabilities (Tables)	6 Months Ended
Accounts payable and Other noncurrent liabilities (Tables)	Mar. 31, 2024
Accounts payable and Other noncurrent liabilities
Schedule of agreements with vendors contain imputed interest	March 31, 2024 September 30, 2023 (Amounts in thousands) Current $ 1,789 $ 1,718 Less: discount (104) (140) Accounts payable and accrued expenses $ 1,685 $ 1,578 Noncurrent $ 1,686 $ 1,967 Less: discount (65) (116) Other noncurrent liabilities $ 1,621 $ 1,851

Note Payable and Line of Cred_2

Note Payable and Line of Credit (Tables)	6 Months Ended
Note Payable and Line of Credit (Tables)	Mar. 31, 2024
Note Payable and Line of Credit
Schedule of current and noncurrent notes payable	March 31, 2024 September 30, 2023 (Amounts in thousands) Current $ — $ 449 Less: notes discount — — Note payable - current portion $ — $ 449

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	6 Months Ended
Pension and Retirement Plans (Tables)	Mar. 31, 2024
Pension and Retirement Plans
Schedule of Net Benefit Costs	The components of net periodic benefit costs related to the US and UK plans are as follows: Three Months Ended March 31, 2024 2023 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 109 $ 3 $ 112 $ 105 $ 3 $ 108 Expected return on plan assets (146) — (146) (140) — (140) Amortization of past service costs 2 — 2 2 — 2 Amortization of net (gain) loss — (2) (2) — (1) (1) Net periodic (benefit) cost $ (35) $ 1 $ (34) $ (33) $ 2 $ (31) Post Retirement: Service cost $ — $ 6 $ 6 $ — $ 6 $ 6 Interest cost — 16 16 — 16 16 Amortization of net gain — (43) (43) — (49) (49) Net periodic benefit $ — $ (21) $ (21) $ — $ (27) $ (27) Six months ended March 31, 2024 2023 U.K. U.S. Total U.K. U.S. Total (Amounts in thousands) Pension: Interest cost $ 221 $ 6 $ 227 $ 211 $ 7 $ 218 Expected return on plan assets (296) — (296) (282) — (282) Amortization of past service costs 4 — 4 4 — 4 Amortization of net gain — (3) (3) — (2) (2) Net periodic (benefit) cost $ (71) $ 3 $ (68) $ (67) $ 5 $ (62) Post Retirement: Service cost $ — $ 12 $ 12 $ — $ 12 $ 12 Interest cost — 32 32 — 31 31 Amortization of net gain — (86) (86) — (98) (98) Net periodic benefit $ — $ (42) $ (42) $ — $ (55) $ (55)
Schedule of fair value of Plan Assets	The fair value of the assets held by the UK pension plan by asset category are as follows: Fair Values as of March 31, 2024 September 30, 2023 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 137 $ 137 $ — $ — $ 428 $ 428 $ — $ — Fixed income 9,682 8,142 1,540 — 8,703 7,251 1,452 — Equity 1,061 292 769 — 903 266 637 — Total plan assets $ 10,880 $ 8,571 $ 2,309 $ — $ 10,034 $ 7,945 $ 2,089 $ —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Mar. 31, 2024
Accumulated Other Comprehensive Loss
Schedule of Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are as follows: March 31, September 30, 2024 2023 (Amounts in thousands) Cumulative effect of foreign currency translation, net $ (4,589) $ (4,829) Cumulative unrealized loss on pension liability (1,265) (1,265) Accumulated other comprehensive loss, net $ (5,854) $ (6,094)

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Financial Assets and Liabilities (Tables)	Mar. 31, 2024
Fair Value of Financial Assets and Liabilities
Summary of assets and liabilities at fair value	As of March 31, 2024 As of September 30, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Level Reference (Amounts in thousands) Assets: Cash and cash equivalents $ 27,119 $ 27,119 $ 25,217 $ 25,217 1 Condensed Consolidated Balance Sheets Accounts receivable, net 12,780 12,780 12,955 12,955 2 Note 4 Financing receivables, net 9,803 9,803 11,395 11,395 3 Note 5 Liabilities: Accounts payable and accrued expenses and other long-term liabilities* 3,306 3,306 3,429 3,429 3 Note 8 Line of Credit 1,045 1,045 1,515 1,515 2 Note 9 Note payable — — 449 449 3 Note 9 *Original maturity over one year

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Mar. 31, 2024
Segment Information
Schedule of Segment Reporting Information, by Segment	The following tables present certain operating segment information for the three and six months ended March 31, 2024 and 2023. Technology Solutions Segment High Performance Products United Consolidated Three months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,043 $ 61 $ 6,354 $ 6,415 $ 8,458 Service 459 60 4,729 4,789 5,248 Total sales $ 2,502 $ 121 $ 11,083 $ 11,204 $ 13,706 Operating income (loss) $ 266 $ (56) $ 1,024 $ 968 $ 1,234 Interest expense $ (3) $ — $ (43) $ (43) $ (46) Interest income $ 6 $ 54 $ 418 $ 472 $ 478 Total assets $ 11,599 $ 7,581 $ 45,020 $ 52,601 $ 64,200 Capital expenditures $ (12) $ — $ (2) $ (2) $ (14) Depreciation and amortization $ (25) $ — $ (50) $ (50) $ (75) 2023 Sales: Product $ 972 $ 175 $ 7,841 $ 8,016 $ 8,988 Service 504 92 3,685 3,777 4,281 Total sales $ 1,476 $ 267 $ 11,526 $ 11,793 $ 13,269 Operating (loss) income $ (693) $ (10) $ 940 $ 930 $ 237 Interest expense $ (3) $ — $ (59) $ (59) $ (62) Interest income $ 7 $ 44 $ 274 $ 318 $ 325 Total assets $ 8,695 $ 6,930 $ 50,399 $ 57,329 $ 66,024 Capital expenditures $ (24) $ — $ (113) $ (113) $ (137) Depreciation and amortization $ (27) $ — $ (61) $ (61) $ (88) Technology Solutions Segment High Performance Products United Consolidated Six months ended March 31, Segment Kingdom U.S. Total Total (Amounts in thousands) 2024 Sales: Product $ 2,515 $ 373 $ 16,977 $ 17,350 $ 19,865 Service 699 129 8,388 8,517 9,216 Total sales $ 3,214 $ 502 $ 25,365 $ 25,867 $ 29,081 Operating (loss) income $ (1,079) $ (53) $ 2,023 $ 1,970 $ 891 Interest expense $ (7) $ — $ (88) $ (88) $ (95) Interest income $ 12 $ 108 $ 854 $ 962 $ 974 Total assets $ 11,599 $ 7,581 $ 45,020 $ 52,601 $ 64,200 Capital expenditures $ (118) $ — $ (16) $ (16) $ (134) Depreciation and amortization $ (53) $ — $ (101) $ (101) $ (154) 2023 Sales: Product $ 3,134 $ 366 $ 19,709 $ 20,075 $ 23,209 Service 831 179 7,394 7,573 8,404 Total sales $ 3,965 $ 545 $ 27,103 $ 27,648 $ 31,613 Operating (loss) income $ (791) $ 4 $ 2,388 $ 2,392 $ 1,601 Interest expense $ (6) $ — $ (120) $ (120) $ (126) Interest income $ 8 $ 79 $ 499 $ 578 $ 586 Total assets $ 8,695 $ 6,930 $ 50,399 $ 57,329 $ 66,024 Capital expenditures $ (40) $ — $ (141) $ (141) $ (181) Depreciation and amortization $ (56) $ — $ (121) $ (121) $ (177)
Schedule of Revenue by Major Customers	The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three and six months ended March 31, 2024 and 2023. Three months ended March 31, Six months ended March 31, 2024 2023 2024 2023 (Amounts in millions) (Amounts in millions) Customer % of Total Customer % of Total Customer % of Total Customer % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues (Amounts in millions) Customer A $ 2.1 15 % $ — - % $ 2.1 7 % $ — - % Customer B $ 0.1 1 % $ 1.3 10 % $ 0.6 2 % $ 1.8 6 %

Basis of Presentation and New_3

Basis of Presentation and New Significant Accounting Policy - Narrative (Details) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 21, 2024 $ / shares shares	Mar. 31, 2024 USD ($) segment $ / shares shares	Feb. 20, 2024 shares	Oct. 01, 2023 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares
Basis of Presentation and New Significant Accounting Policy
Number of Operating Segments \| segment		2
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01			$ 0.01
Common stock, shares authorized \| shares	9,753,900	9,754,000	7,500,000		9,754,000
Stock split ratio	2
Percentage of stock dividend effected from stock split	100%	100%
Accounts receivable				$ 67
Net amount		$ 9,803		82	$ 11,395
Retained earnings		$ 32,378		$ 15	$ 31,311

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Managed service contracts, right to refund, period			30 days
Total sales	$ 13,706	$ 13,269	$ 29,081	$ 31,613
Product
Revenue from External Customer [Line Items]
Sales	8,458	8,987	19,864	23,207
Total sales	8,458	8,988	19,865	23,209
Service
Revenue from External Customer [Line Items]
Sales	5,248	4,281	9,216	8,404
Total sales	5,248	4,281	9,216	8,404
Finance
Revenue from External Customer [Line Items]
Finance		1	1	2
HPP
Revenue from External Customer [Line Items]
Total sales	2,502	1,476	3,214	3,965
HPP \| Product
Revenue from External Customer [Line Items]
Sales	2,043	972	2,515	3,134
Total sales	2,043	972	2,515	3,134
HPP \| Service
Revenue from External Customer [Line Items]
Sales	459	504	699	831
Total sales	459	504	699	831
HPP \| Finance
Revenue from External Customer [Line Items]
Finance		0	0	0
TS
Revenue from External Customer [Line Items]
Total sales	11,204	11,793	25,867	27,648
TS \| U.K..
Revenue from External Customer [Line Items]
Total sales	121	267	502	545
TS \| UNITED STATES
Revenue from External Customer [Line Items]
Total sales	11,083	11,526	25,365	27,103
TS \| Product
Revenue from External Customer [Line Items]
Sales	6,415	8,015	17,349	20,073
Total sales	6,415	8,016	17,350	20,075
TS \| Product \| U.K..
Revenue from External Customer [Line Items]
Sales	61	175	373	366
Total sales	61	175	373	366
TS \| Product \| UNITED STATES
Revenue from External Customer [Line Items]
Sales	6,354	7,840	16,976	19,707
Total sales	6,354	7,841	16,977	19,709
TS \| Service
Revenue from External Customer [Line Items]
Sales	4,789	3,777	8,517	7,573
Total sales	4,789	3,777	8,517	7,573
TS \| Service \| U.K..
Revenue from External Customer [Line Items]
Sales	60	92	129	179
Total sales	60	92	129	179
TS \| Service \| UNITED STATES
Revenue from External Customer [Line Items]
Sales	4,729	3,685	8,388	7,394
Total sales	$ 4,729	3,685	8,388	7,394
TS \| Finance
Revenue from External Customer [Line Items]
Finance		1	1	2
TS \| Finance \| U.K..
Revenue from External Customer [Line Items]
Finance		0	0	0
TS \| Finance \| UNITED STATES
Revenue from External Customer [Line Items]
Finance		$ 1	$ 1	$ 2

Revenue - Revenue Recognition (

Revenue - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Capitalized Contract Cost [Line Items]
Current contract assets	$ 600		$ 600		$ 900
Non-current contract assets	0		0		0
Current contract liabilities	1,700		1,700		1,900
Non-current contract liabilities	0		0		0
Revenue recognized included in contract liability	200		1,100
Current capitalized costs	253		253		172
Non-current capitalized costs	0		0		0
Incremental costs amortized	$ 121	$ 98	229	$ 199
Impairment related to costs capitalized			$ 0	$ 0
Payment terms			30 days
Practical Expedient, Incremental Costs			true
Remaining Performance Obligation, Optional Exemption			true
Minimum
Capitalized Contract Cost [Line Items]
Amortization Period	3 years		3 years
Maximum
Capitalized Contract Cost [Line Items]
Amortization Period	6 years		6 years
Europe \| Maximum
Capitalized Contract Cost [Line Items]
Payment terms			90 days
TS
Capitalized Contract Cost [Line Items]
Current capitalized costs	$ 0		$ 0		$ 0

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 847
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, Expected Timing of Satisfaction, Period	6 months
Remaining performance obligation, amount	$ 313
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, Expected Timing of Satisfaction, Period	1 year
Remaining performance obligation, amount	$ 429
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, Expected Timing of Satisfaction, Period	1 year
Remaining performance obligation, amount	$ 101
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, Expected Timing of Satisfaction, Period	1 year
Remaining performance obligation, amount	$ 4

Earnings Per Share of Common _3

Earnings Per Share of Common Stock - Basic and diluted EPS computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share of Common Stock
Net Income (Loss)	$ 1,588	$ 321	$ 1,515	$ 1,282
Less: net income attributable to nonvested common stock	(106)	(19)	(98)	(77)
Net (loss) income attributable to common shareholders	$ 1,482	$ 302	$ 1,417	$ 1,205
Weighted average total shares outstanding - basic	9,719	9,376	9,586	9,241
Less: weighted average non-vested shares outstanding	(649)	(594)	(619)	(558)
Weighted average number of common shares outstanding - basic	9,070	8,782	8,967	8,683
Add: potential common shares from non-vested stock awards	385	142	399	106
Weighted average common shares outstanding - diluted	9,455	8,924	9,366	8,789
Net income per common share - basic	$ 0.16	$ 0.03	$ 0.16	$ 0.14
Net income per common share - diluted	$ 0.16	$ 0.03	$ 0.15	$ 0.14

Earnings Per Share of Common _4

Earnings Per Share of Common Stock - Anti-dilutive (Details) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Feb. 21, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock awards shares were excluded from the diluted loss per share calculation	0		0
Percentage of stock dividend effected from stock split	100%		100%		100%
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock awards shares were excluded from the diluted loss per share calculation		52,000		202,000

Accounts receivable, net (Detai

Accounts receivable, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Accounts receivable, net
Allowance for Doubtful Accounts Receivable, Current, Beginning Balance	$ 61	$ 115	$ 100	$ 88
Charge-offs	0	0	0	0
Recoveries	0	0
Provision for credit losses	12	(9)	40	18
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	73	106	73	$ 106
Adoption of Accounting Standards Update 2016-13
Accounts receivable, net
Allowance for Doubtful Accounts Receivable, Current, Beginning Balance	$ 0	$ 0	$ (67)

Financing receivables, net - Na

Financing receivables, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Financing receivables, net
Financing receivables weighted average interest rate			7.10%
Interest income earned	$ 158	$ 189	$ 351	$ 371

Financing receivable, net - Por

Financing receivable, net - Portfolio of risk rating (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Oct. 01, 2023	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022
Financing receivables, net:
Financing receivables, gross	$ 10,482			$ 12,254
Unearned interest income	(609)			(859)
Allowance for credit losses	(70)	$ (77)		0	$ 0	$ 0	$ 0
Financing receivables, net	9,803		$ 82	11,395
Short-term	7,625			7,171
Long-term	2,178			4,224
Low Risk Rating
Financing receivables, net:
Financing receivables, gross	7,235			8,893
Unearned interest income	(210)			(325)
Allowance for credit losses	(16)	(16)		0	0	0	0
Financing receivables, net	7,009			8,568
Short-term	6,701			6,281
Long-term	308			2,287
Moderate Risk Rating
Financing receivables, net:
Financing receivables, gross	3,247			3,361
Unearned interest income	(399)			(534)
Allowance for credit losses	(54)	$ (61)		0	$ 0	$ 0	$ 0
Financing receivables, net	2,794			2,827
Short-term	924			890
Long-term	$ 1,870			$ 1,937

Financing receivable, net - All

Financing receivable, net - Allowance for credit loss - Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Allowance for credit losses for financing receivables:
Balances at beginning of the period	$ 77	$ 0	$ 0	$ 0
Charge-offs	0	0	0	0
Provision charged to Consolidated Statements of Operations	(7)	0	(12)	0
Balances at end of the period	70	0	70	0
Low Risk Rating
Allowance for credit losses for financing receivables:
Balances at beginning of the period	16	0	0	0
Charge-offs	0	0	0	0
Provision charged to Consolidated Statements of Operations	0	0	(11)	0
Balances at end of the period	16	0	16	0
Moderate Risk Rating
Allowance for credit losses for financing receivables:
Balances at beginning of the period	61	0	0	0
Charge-offs	0	0	0	0
Provision charged to Consolidated Statements of Operations	(7)	0	(1)	0
Balances at end of the period	$ 54	0	54	0
Adoption of Accounting Standards Update 2016-13
Allowance for credit losses for financing receivables:
Balances at beginning of the period			82
Balances at end of the period		0		0
Adoption of Accounting Standards Update 2016-13 \| Low Risk Rating
Allowance for credit losses for financing receivables:
Balances at beginning of the period			27
Balances at end of the period		0		0
Adoption of Accounting Standards Update 2016-13 \| Moderate Risk Rating
Allowance for credit losses for financing receivables:
Balances at beginning of the period			$ 55
Balances at end of the period		$ 0		$ 0

Financing receivable, net - Cre

Financing receivable, net - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 655
2023	3,722
2022	4,545
2021	1,560
Total	10,482	$ 12,254
Moderate Risk Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	2,969
2022	278
2021	0
Total	3,247	3,361
Low Risk Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2024	655
2023	753
2022	4,267
2021	1,560
Total	$ 7,235	$ 8,893

Financing receivables, net - Co

Financing receivables, net - Contractual maturities of outstanding financing receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022
Financing receivables, net
2024	$ 5,288
2025	3,497
2026	1,069
2027	628
Total payments	10,482
Less: unearned interest income	(609)		$ (859)
Less: allowance for credit losses	(70)	$ (77)	$ 0	$ 0	$ 0	$ 0
Total, net of unearned interest income and allowance for credit losses	$ 9,803

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Inventories
Raw materials	$ 196	$ 247
Work-in-process	52	36
Finished goods	1,230	2,259
Total	$ 1,478	$ 2,542

Leases - Components of lease co

Leases - Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Operating Lease:
Total lease costs	$ 140	$ 174	$ 281	$ 346
Total lease costs, net of sublease interest income	139	173	280	344
Interest expense
Finance Lease:
Interest on lease liabilities	0	1	0	1
Selling, general and administrative
Operating Lease:
Operating lease cost	132	162	264	324
Short-term lease cost	8	11	17	21
Revenue.
Operating Lease:
Less sublease interest income	$ (1)	$ (1)	$ (1)	$ (2)

Leases - Supplemental cash flow

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 268	$ 330
Operating cash flows from short-term leases	17	21
Operating cash flows from finance leases	1	1
Financing cash flows from finance leases	0	2
Cash received from subleases	$ (7)	$ (10)

Accounts payable and Other no_3

Accounts payable and Other noncurrent liabilities (Details) - Vendor Agreement - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Accounts payable and other noncurrent liabilities
Imputed interest rate	5.50%		5.50%
Interest expense	$ 35	$ 53	$ 88	$ 109
Payable to vendor	$ 2,900		$ 2,900		$ 3,300
Percentage of accounts payable and noncurrent liabilities	25%		25%		26%

Accounts payable and Other no_4

Accounts payable and Other noncurrent liabilities - Agreements with Vendors (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Accounts payable and other noncurrent liabilities
Accounts payable and accrued expenses	$ 9,667	$ 10,785
Other noncurrent liabilities	1,621	1,851
Vendor Agreement
Accounts payable and other noncurrent liabilities
Current	1,789	1,718
Less: discount	104	140
Accounts payable and accrued expenses	1,685	1,578
Noncurrent	1,686	1,967
Less: discount	65	116
Other noncurrent liabilities	$ 1,621	$ 1,851

Note Payable and Line of Cred_3

Note Payable and Line of Credit - Current Portion (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Note payable - current
Note payable - current portion	$ 0	$ 449
Notes payable
Note payable - current
Current	0	449
Less: notes discount	0	0
Note payable - current portion	$ 0	$ 449

Note Payable and Line of Cred_4

Note Payable and Line of Credit - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Line of Credit Facility
Inventory line of credit		$ 1,045		$ 1,045		$ 1,515
Notes payable
Line of Credit Facility
Interest rate	5.10%
Borrowings	$ 2,000
Interest expense, debt		0	$ 6	0	$ 11
Inventory Line of Credit \| DO NOT USE - EXTRANEOUS Line of Credit.
Line of Credit Facility
Maximum borrowing capacity		15,000		15,000		15,000
Interest Payable		0		0
Minimum net worth required for compliance		4,000		4,000
Inventory line of credit		1,000		1,000		1,500
Cash withdrawal limit		1,000		1,000		1,000
Cash withdrawals outstanding		$ 0		$ 0		$ 0
Inventory Line of Credit \| DO NOT USE - EXTRANEOUS Line of Credit. \| Minimum
Line of Credit Facility
Liquidity ratio		1.2		1.2
Inventory Line of Credit \| DO NOT USE - EXTRANEOUS Line of Credit. \| Maximum
Line of Credit Facility
Ratio of indebtedness to net capital		5		5
Inventory Line of Credit \| DO NOT USE - EXTRANEOUS Line of Credit. \| Prime Rate
Line of Credit Facility
Interest rate		5%		5%

Pension and Retirement Plans -

Pension and Retirement Plans - Components of net periodic benefit costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pension:
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 112	$ 108	$ 227	$ 218
Expected return on plan assets	(146)	(140)	(296)	(282)
Amortization of past service costs	2	2	4	4
Amortization of net (gain) loss	(2)	(1)	(3)	(2)
Net periodic (benefit) cost	(34)	(31)	(68)	(62)
Pension: \| U.K..
Defined Benefit Plan Disclosure [Line Items]
Interest cost	109	105	221	211
Expected return on plan assets	(146)	(140)	(296)	(282)
Amortization of past service costs	2	2	4	4
Amortization of net (gain) loss	0	0	0	0
Net periodic (benefit) cost	(35)	(33)	(71)	(67)
Pension: \| U.S.
Defined Benefit Plan Disclosure [Line Items]
Interest cost	3	3	6	7
Expected return on plan assets	0	0	0	0
Amortization of past service costs	0	0	0	0
Amortization of net (gain) loss	(2)	(1)	(3)	(2)
Net periodic (benefit) cost	1	2	3	5
Post Retirement:
Defined Benefit Plan Disclosure [Line Items]
Service cost	6	6	12	12
Interest cost	16	16	32	31
Amortization of net (gain) loss	(43)	(49)	(86)	(98)
Net periodic (benefit) cost	(21)	(27)	(42)	(55)
Post Retirement: \| U.K..
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	0	0	0	0
Amortization of net (gain) loss	0	0	0	0
Net periodic (benefit) cost	0	0	0	0
Post Retirement: \| U.S.
Defined Benefit Plan Disclosure [Line Items]
Service cost	6	6	12	12
Interest cost	16	16	32	31
Amortization of net (gain) loss	(43)	(49)	(86)	(98)
Net periodic (benefit) cost	$ (21)	$ (27)	$ (42)	$ (55)

Pension and Retirement Plans _2

Pension and Retirement Plans - Fair value of plan assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	$ 10,880	$ 10,034
Cash on deposit
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	137	428
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	9,682	8,703
Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	1,061	903
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	8,571	7,945
Level 1 \| Cash on deposit
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	137	428
Level 1 \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	8,142	7,251
Level 1 \| Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	292	266
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	2,309	2,089
Level 2 \| Cash on deposit
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	0	0
Level 2 \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	1,540	1,452
Level 2 \| Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	769	637
Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	0	0
Level 3 \| Cash on deposit
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	0	0
Level 3 \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	0	0
Level 3 \| Equity
Defined Benefit Plan Disclosure [Line Items]
Fair value of the assets	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Taxes
Income tax expense	$ 135	$ 71	$ 148	$ 204
Estimated annualized effective income tax rate	18%
Effective income tax rate	8%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Loss
Cumulative effect of foreign currency translation, net	$ (4,589)	$ (4,829)
Cumulative unrealized loss on pension liability	(1,265)	(1,265)
Accumulated other comprehensive loss, net	$ (5,854)	$ (6,094)

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
Fair Value, Recurring
Assets:
Assets, Fair Value Disclosure	$ 0	$ 0
Liabilities Fair Value Disclosure	0	0
Fair Value, Nonrecurring
Assets:
Assets, Fair Value Disclosure	0	0
Liabilities Fair Value Disclosure	$ 0	0
Minimum
Liabilities:
Sales exceeding one year included in accounts and long term receivables	1 year
Carrying Amount \| Level 1
Assets:
Cash and cash equivalents	$ 27,119	25,217
Carrying Amount \| Level 2
Liabilities:
Line of Credit	1,045	1,515
Carrying Amount \| Level 3
Assets:
Accounts receivable, net	12,780	12,955
Financing receivables, net	9,803	11,395
Liabilities:
Accounts payable and accrued expenses and other long-term liabilities	3,306	3,429
Note payable		449
Fair Value \| Level 1
Assets:
Cash and cash equivalents	27,119	25,217
Fair Value \| Level 2
Liabilities:
Line of Credit	1,045	1,515
Fair Value \| Level 3
Assets:
Accounts receivable, net	12,780	12,955
Financing receivables, net	9,803	11,395
Liabilities:
Accounts payable and accrued expenses and other long-term liabilities	$ 3,306	3,429
Note payable		$ 449

Segment Information - Operating

Segment Information - Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total sales	$ 13,706	$ 13,269	$ 29,081	$ 31,613
Operating income (loss)	1,234	237	891	1,601
Interest income	478	325	974	586
Interest expense	46	62	95	126
Total assets	64,200	66,024	64,200	66,024	$ 65,904
Capital expenditures	(14)	(137)	(134)	(181)
Depreciation and amortization	(75)	(88)	(154)	(177)
HPP
Segment Reporting Information [Line Items]
Total sales	2,502	1,476	3,214	3,965
Operating income (loss)	266	(693)	(1,079)	(791)
Interest income	6	7	12	8
Interest expense	3	3	7	6
Total assets	11,599	8,695	11,599	8,695
Capital expenditures	(12)	(24)	(118)	(40)
Depreciation and amortization	(25)	(27)	(53)	(56)
TS
Segment Reporting Information [Line Items]
Total sales	11,204	11,793	25,867	27,648
Operating income (loss)	968	930	1,970	2,392
Interest income	472	318	962	578
Interest expense	43	59	88	120
Total assets	52,601	57,329	52,601	57,329
Capital expenditures	(2)	(113)	(16)	(141)
Depreciation and amortization	(50)	(61)	(101)	(121)
Product
Segment Reporting Information [Line Items]
Total sales	8,458	8,988	19,865	23,209
Product \| HPP
Segment Reporting Information [Line Items]
Total sales	2,043	972	2,515	3,134
Product \| TS
Segment Reporting Information [Line Items]
Total sales	6,415	8,016	17,350	20,075
Service
Segment Reporting Information [Line Items]
Total sales	5,248	4,281	9,216	8,404
Service \| HPP
Segment Reporting Information [Line Items]
Total sales	459	504	699	831
Service \| TS
Segment Reporting Information [Line Items]
Total sales	4,789	3,777	8,517	7,573
U.K.. \| TS
Segment Reporting Information [Line Items]
Total sales	121	267	502	545
Operating income (loss)	(56)	(10)	(53)	4
Interest income	54	44	108	79
Interest expense	0	0	0
Total assets	7,581	6,930	7,581	6,930
Capital expenditures	0	0	0	0
Depreciation and amortization	0	0	0	0
U.K.. \| Product \| TS
Segment Reporting Information [Line Items]
Total sales	61	175	373	366
U.K.. \| Service \| TS
Segment Reporting Information [Line Items]
Total sales	60	92	129	179
UNITED STATES \| TS
Segment Reporting Information [Line Items]
Total sales	11,083	11,526	25,365	27,103
Operating income (loss)	1,024	940	2,023	2,388
Interest income	418	274	854	499
Interest expense	43	59	88	120
Total assets	45,020	50,399	45,020	50,399
Capital expenditures	(2)	(113)	(16)	(141)
Depreciation and amortization	(50)	(61)	(101)	(121)
UNITED STATES \| Product \| TS
Segment Reporting Information [Line Items]
Total sales	6,354	7,841	16,977	19,709
UNITED STATES \| Service \| TS
Segment Reporting Information [Line Items]
Total sales	$ 4,729	$ 3,685	$ 8,388	$ 7,394

Segment Information - Major cus

Segment Information - Major customers (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) customer	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($) customer	Mar. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)
Segment Reporting Information [Line Items]
Customer Revenues	$ 13,706		$ 13,269	$ 29,081	$ 31,613
Finance receivables	7,625			7,625		$ 7,171
Customer A \| Sales Revenue, Net \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Customer Revenues	$ 2,100			$ 2,100
Concentration risk percentage	15%			7%
Customer A \| Accounts Receivable \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Accounts receivable, gross	$ 2,400			$ 2,400
Concentration risk percentage				19%
Customer B \| Sales Revenue, Net \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Customer Revenues	$ 100		$ 1,300	$ 600	$ 1,800
Concentration risk percentage	1%		10%	2%	6%
Customer One \| Accounts Receivable \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Accounts receivable, gross	$ 6,400			$ 6,400
Concentration risk percentage				50%
Number of customers accounted \| customer	1			1
Customer One \| Financing receivables \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Finance receivables	$ 2,200			$ 2,200		$ 2,500
Concentration risk percentage	22%					22%
Customer not listed in table \| Financing receivables \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Finance receivables	$ 5,700			$ 5,700		$ 7,400
Concentration risk percentage				58%		65%
Customer not listed \| Financing receivables \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Finance receivables		$ 1,300				$ 1,500
Concentration risk percentage		13%				13%

Dividend (Details)

Dividend (Details)	Feb. 21, 2024	Feb. 14, 2024 $ / shares	Dec. 12, 2023 $ / shares	Mar. 31, 2024
Dividend
Cash dividends declared		$ 0.025	$ 0.020
Stock split ratio	2
Percentage of stock dividend effected from stock split	100%			100%

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,588	$ 321	$ 1,515	$ 1,282

Insider Trading Arrangements

Insider Trading Arrangements	6 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false