Restructuring

12 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

4. RESTRUCTURING

Subsequent to the A2iA Acquisition, the Company evaluated A2iA’s operations and determined that the market for certain products was small and lacking growth opportunity and that its products were not core to Mitek’s strategy, nor were they profitable for the Company. In order to streamline the organization and focus resources going forward, the Company undertook a strategic restructuring of A2iA’s Paris operations in June 2019, which included, among other things, ceasing the sale of certain A2iA products and offerings and a reduction in workforce. Restructuring costs consist of employee severance obligations and other related costs. As the restructuring plan has been completed, the Company reversed the remaining accrued costs in the fourth quarter of fiscal 2020.

The following table summarizes changes in the restructuring accrual during the year ended September 30, 2020 (amounts shown in thousands):

Balance at September 30, 2019	$	1,526
Accrual reversed	(114)
Payments	(1,412)
Foreign currency effect on the restructuring accrual	—
Balance at September 30, 2020	$	—