Note 1 - Organization and Nature of Operations

12 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Nature of Operations [Text Block]

(1) Organization and Nature of Operations

General

The Company’s business is based on the leasing of patented tracking and monitoring solutions to federal, state and local law enforcement agencies, both in the U.S. and abroad, for the electronic monitoring of offenders and offering unique data analytics services on a platform-as-a-service (“PaaS”) business model. Currently, the Company deploys offender-based management services that combine patented GPS tracking technologies, full-time 24/7/365 global monitoring capabilities, case management, and proprietary data analytics. The Company offers customizable tracking solutions that leverage real-time tracking data, best-practices monitoring, and analytics capabilities to create complete, end-to-end tracking solutions.

Business Condition. As of September 30, 2023 and 2022, the Company had an accumulated deficit of $309,610,397 and $306,218,889, respectively. The Company incurred a net loss of 3,391,508 and $7,390,362 for the years ended September 30, 2023 and 2022, respectively. On April 27, 2023, the Company announced a three-year extension of its $42.9 million debt to July 1, 2027 (See Note 7). The Company also has six notes payable maturing between January 2, 2024 and February 17, 2025 related to the construction of two monitoring centers for a contract in Chile, with outstanding balances due for the six notes totaling $365,983, net of deferred financing fees, at September 30, 2023 (See Note 7). The Company’s ability to return to profitable operations is dependent upon generating a level of revenue adequate to support its cost structure, which it was close to achieving on an operating basis in the fiscal year ended September 30, 2022, excluding the approximate $1.7 million asset impairment and was close to achieving in the fiscal year ended September 30, 2023. Management has evaluated the significance of these conditions, as well as the recent change in the maturity date, and has determined that the Company can meet its operating obligations for a reasonable period. The Company expects to fund operations using cash on hand and through operational cash flows through the upcoming twelve months.