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Note 19 - Commitments and Contingencies
12 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

19. Commitments and Contingencies

 

Contingent Consideration

 

In August 2025, the Company acquired Geovox.  In connection with the acquisition, the Company recorded an initial contingent earn-out liability of $2.5 million.  Contingent payments, if any, will be based on eligible revenue generated during a four-year earn-out period.  The maximum amount of contingent payments is $3.3 million.  

 

In connection with the acquisition of Aquana in 2021, the Company is subject to additional contingent cash payments to the former members of Aquana over a seven-year earn-out period. The contingent payments, if any, will be derived from certain eligible revenue generated during the earn-out period from products and services sold by Aquana. There is no maximum limit to the contingent cash payments that could be made. The merger agreement with Aquana requires the continued employment of a certain key employee and former member of Aquana for the first five years of the six year earn-out period in order for any of Aquana’s former members to be eligible to any earn-out payments.  Due to the continued employment requirement, no liability has been recorded for the estimated fair value of contingent earn-out payments for this transaction. Earn-outs achieved, are recorded as compensation expense when incurred.  Eligible revenue earned for the fiscal years ended September 30, 2025 and 2024 was $0.1 million and $17,000, respectively. 

 

Legal Proceedings

 

The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of such actions. However, management believes that the most probable, ultimate resolution of current pending matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.