| Reconciliation Of Income Tax Expense (Benefit) |
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Three Months Ended
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Nine Months Ended
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June 30,
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June 30,
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2018
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2017
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2018
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2017
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Income tax benefit at statutory rates
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$
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(1,412,119)
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$
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(442,000)
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$
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(5,040,855)
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$
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(1,971,000)
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Effect of change in U.S. tax rate
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190,319
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—
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3,319
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—
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State income tax benefit, net of federal benefits
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(15,213)
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(66,000)
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(963,608)
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(295,000)
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Non-deductible business acquisition expenses
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—
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29,000
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—
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182,000
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Non-deductible expenses - other
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862
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10,000
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13,564
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14,000
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Effect of change to state income tax rate
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—
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(12,955)
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—
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189,422
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Effect of lower foreign income tax rates
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(67,765)
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(27,758)
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12,621
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16,763
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Recharacterization of foreign tax credits to net operating loss
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1,311,429
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—
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1,311,429
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—
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Increase in valuation allowance
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933,000
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—
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933,000
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—
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Other
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265,618
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—
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388,191
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—
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Income tax expense (benefit)
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$
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1,206,131
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$
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(509,713)
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$
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(3,342,339)
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$
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(1,863,815)
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| Significant Components Of Deferred Tax Assets And Liabilities |
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June 30,
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September 30,
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Deferred tax assets:
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2018
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2017
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Federal net operating loss carryforwards
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$
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6,770,000
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$
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4,075,000
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State net operating loss carryforwards
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2,052,000
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963,000
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AMT credit carryforward
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533,000
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533,000
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Foreign net operating loss carryforwards – U.K.
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10,583,000
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10,578,000
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Foreign capital allowance – U.K.
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108,000
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108,000
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U.K. bad debts
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2,000
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2,000
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Restricted stock – U.K.
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1,000
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1,000
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U.S. unearned revenue
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—
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409,000
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U.S. deferred rent
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21,000
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76,000
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Share-based compensation
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487,000
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447,000
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Foreign tax credits
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—
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1,797,000
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Other, net – U.S.
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58,000
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82,000
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Gross deferred tax assets
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20,615,000
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19,071,000
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Valuation allowance for deferred tax assets
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(3,077,000)
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(2,144,000)
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Net deferred tax assets
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17,538,000
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16,927,000
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Deferred tax liabilities:
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In process research and development
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(4,676,000)
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(7,000,000)
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Developed technology
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(563,000)
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(900,000)
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Covenant not-to-compete
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(99,000)
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(200,000)
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Other
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(6,000)
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—
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Net deferred tax liabilities
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(5,344,000)
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(8,100,000)
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Net deferred tax asset
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$
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12,194,000
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$
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8,827,000
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| Schedule Of Deferred Tax Amounts Classified In Balance Sheets |
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June 30,
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September 30,
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2018
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2017
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Long-term deferred tax asset – U.S.
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$
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3,644,000
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$
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282,000
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Long-term deferred tax asset – U.K.
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8,550,000
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8,545,000
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Total long-term deferred tax asset
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$
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12,194,000
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$
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8,827,000
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