Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 15, 2014 | Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Clearfield, Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,746,164 | ' |
Entity Public Float | ' | ' | $255,722,720 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000796505 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | $18,191,493 | $9,807,957 |
Short-term investments | 6,632,000 | 5,992,000 |
Accounts receivable, net | 5,027,856 | 7,837,543 |
Inventories | 5,390,342 | 5,626,764 |
Deferred taxes | 2,249,435 | 4,615,110 |
Other current assets | 543,257 | 317,829 |
Total current assets | 38,034,383 | 34,197,203 |
Property, plant and equipment, net | 2,462,250 | 1,796,812 |
Other Assets | ' | ' |
Long-term investments | 8,302,000 | 6,770,000 |
Goodwill | 2,570,511 | 2,570,511 |
Deferred taxes | 156,622 | 810,573 |
Other | 322,132 | 268,240 |
Total other assets | 11,351,265 | 10,419,324 |
Total Assets | 51,847,898 | 46,413,339 |
Current Liabilities | ' | ' |
Accounts payable | 2,104,526 | 2,627,764 |
Accrued compensation | 2,749,080 | 3,522,907 |
Accrued expenses | 247,658 | 163,531 |
Total current liabilities | 5,101,264 | 6,314,202 |
Deferred rent | ' | 21,101 |
Total Liabilities | 5,101,264 | 6,335,303 |
Shareholders’ Equity | ' | ' |
Preferred stock, $.01 par value; 500 shares; no shares issued or outstanding | 0 | 0 |
Common stock, $ .01 par value; 50,000,000 shares authorized; 13,742,964 and 12,974,263 shares issued and outstanding at September 30, 2014 and 2013, respectively | 137,430 | 129,743 |
Additional paid-in capital | 56,036,989 | 54,808,929 |
Accumulated deficit | -9,427,785 | -14,860,636 |
Total shareholders’ equity | 46,746,634 | 40,078,036 |
Total Liabilities and Shareholders’ Equity | $51,847,898 | $46,413,339 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 500 | 500 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 13,742,964 | 12,974,263 |
Common stock, shares outstanding | 13,742,964 | 12,974,263 |
Statements_of_Earnings
Statements of Earnings (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net sales | $58,045,292 | $53,353,080 | $37,473,966 |
Cost of sales | 33,446,526 | 31,363,502 | 22,188,245 |
Gross profit | 24,598,766 | 21,989,578 | 15,285,721 |
Operating expenses | ' | ' | ' |
Selling, general and administrative | 16,080,640 | 14,544,843 | 11,010,840 |
Income from operations | 8,518,126 | 7,444,735 | 4,274,881 |
Interest income | 95,703 | 92,281 | 102,014 |
Income before income taxes | 8,613,829 | 7,537,016 | 4,376,895 |
Income tax expense (benefit) | 3,180,978 | 2,803,172 | -3,324,299 |
Net income | $5,432,851 | $4,733,844 | $7,701,194 |
Net income per share Basic (in Dollars per share) | $0.42 | $0.38 | $0.62 |
Net income per share Diluted (in Dollars per share) | $0.40 | $0.36 | $0.60 |
Shares used in calculation of net income per share: | ' | ' | ' |
Basic (in Shares) | 12,916,273 | 12,527,153 | 12,371,371 |
Diluted (in Shares) | 13,601,594 | 13,078,939 | 12,790,168 |
Statements_of_Shareholders_Equ
Statements of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 30, 2011 | $122,707 | $53,402,138 | ($27,295,674) | $26,229,171 |
Balance (in Shares) at Sep. 30, 2011 | 12,270,691 | ' | ' | ' |
Stock-based compensation expense | ' | 467,120 | ' | 467,120 |
Restricted Stock Issuance, Net | 3,590 | ' | ' | 3,590 |
Restricted Stock Issuance, Net (in Shares) | 359,000 | ' | ' | ' |
Employee stock purchase plan | 288 | 142,254 | ' | 142,542 |
Employee stock purchase plan (in Shares) | 28,929 | ' | ' | ' |
Exercise of stock options | 1,716 | 140,568 | ' | 142,284 |
Exercise of stock options (in Shares) | 171,480 | ' | ' | ' |
Net income | ' | ' | 7,701,194 | 7,701,194 |
Balance at Sep. 30, 2012 | 128,301 | 54,152,080 | -19,594,480 | 34,685,901 |
Balance (in Shares) at Sep. 30, 2012 | 12,830,100 | ' | ' | ' |
Stock-based compensation expense | ' | 753,727 | ' | 753,727 |
Restricted Stock Issuance, Net | 41 | 25 | ' | 66 |
Restricted Stock Issuance, Net (in Shares) | 4,090 | ' | ' | ' |
Employee stock purchase plan | 356 | 135,625 | ' | 135,981 |
Employee stock purchase plan (in Shares) | 35,597 | ' | ' | ' |
Exercise of stock options | 1,394 | 62,606 | ' | 64,000 |
Exercise of stock options (in Shares) | 139,455 | ' | ' | ' |
Tax witholding related to vesting of restricted stock grants and excercise of stock options | -349 | -297,639 | ' | -297,988 |
Tax witholding related to vesting of restricted stock grants and excercise of stock options (in Shares) | -34,979 | ' | ' | ' |
Excess tax benefit of stock options exercised | ' | 2,505 | ' | 2,505 |
Net income | ' | ' | 4,733,844 | 4,733,844 |
Balance at Sep. 30, 2013 | 129,743 | 54,808,929 | -14,860,636 | 40,078,036 |
Balance (in Shares) at Sep. 30, 2013 | 12,974,263 | ' | ' | ' |
Stock-based compensation expense | ' | 794,865 | ' | 794,865 |
Restricted Stock Issuance, Net | 3,056 | -3,056 | ' | ' |
Restricted Stock Issuance, Net (in Shares) | 305,615 | ' | ' | ' |
Employee stock purchase plan | 176 | 185,408 | ' | 185,584 |
Employee stock purchase plan (in Shares) | 17,589 | ' | ' | ' |
Exercise of stock options | 4,716 | 641,737 | ' | 646,453 |
Exercise of stock options (in Shares) | 471,603 | ' | ' | ' |
Tax witholding related to vesting of restricted stock grants and excercise of stock options | -261 | -399,368 | ' | -399,629 |
Tax witholding related to vesting of restricted stock grants and excercise of stock options (in Shares) | -26,106 | ' | ' | ' |
Excess tax benefit of stock options exercised | ' | 8,474 | ' | 8,474 |
Net income | ' | ' | 5,432,851 | 5,432,851 |
Balance at Sep. 30, 2014 | $137,430 | $56,036,989 | ($9,427,785) | $46,746,634 |
Balance (in Shares) at Sep. 30, 2014 | 13,742,964 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net income | $5,432,851 | $4,733,844 | $7,701,194 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 699,869 | 476,400 | 404,765 |
Deferred income taxes | 3,019,626 | 2,564,045 | -3,436,931 |
Loss on sale of assets | 12,809 | 15,388 | 23,645 |
Stock-based compensation expense | 794,865 | 753,727 | 470,710 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable, net | 2,809,687 | -4,814,907 | 206,228 |
Inventories | 236,422 | -2,655,150 | -212,854 |
Other current assets | -243,339 | -15,157 | -307,410 |
Accounts payable and accrued expenses | -1,234,039 | 3,280,866 | -1,023,016 |
Net cash provided by operating activities | 11,528,751 | 4,339,056 | 3,826,331 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -1,418,461 | -1,018,453 | -550,618 |
Purchase of investments | -8,899,000 | -8,683,000 | -11,942,000 |
Proceeds from sale of property and equipment | 40,908 | 6,500 | ' |
Patent additions | -36,544 | -18,853 | -40,423 |
Sale of investments | 6,727,000 | 9,600,000 | 2,819,000 |
Net cash used in investing activities | -3,586,097 | -113,806 | -9,714,041 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock under employee stock purchase plan | 185,584 | 135,981 | 142,542 |
Proceeds from issuance of common stock | 646,453 | 64,066 | 142,284 |
Excess tax benefit from exercise of stock options | 8,474 | 2,505 | ' |
Tax withholding related to vesting of restricted stock grants and exercise of stock options | -399,629 | -297,988 | ' |
Net cash provided by (used in) financing activities | 440,882 | -95,436 | 284,826 |
Increase (decrease) in cash and cash equivalents | 8,383,536 | 4,129,814 | -5,602,884 |
Cash and cash equivalents at beginning of year | 9,807,957 | 5,678,143 | 11,281,027 |
Cash and cash equivalents at end of year | 18,191,493 | 9,807,957 | 5,678,143 |
Supplemental cash flow information | ' | ' | ' |
Cash paid during the year for income taxes | 361,284 | 153,644 | 163,756 |
Non-cash financing activities | ' | ' | ' |
Cashless exercise of stock options | $297,883 | $242,848 | $51,226 |
Note_A_Summary_of_Significant_
Note A - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Description of Business: Clearfield, Inc., (the Company) is a manufacturer of a broad range of standard and custom passive connectivity products to customers throughout the United States. These products include fiber distribution systems, optical components, Outside Plant (OSP) cabinets, and fiber and copper cable assemblies that serve the communication service provider, including Fiber-to-the-Premises (FTTP), large enterprise, and original equipment manufacturers (OEMs) markets. | |||||||||||||
Revenue Recognition: Revenue is recognized when persuasive evidence of an arrangement exists, the product has been delivered, the fee is fixed, acceptance by the customer is reasonably certain and collection is reasonably assured. This generally occurs upon shipment of product to the customer. Sales of the Company’s products are subject to limited warranty obligations that are included in the Company’s terms and conditions. Also, the Company offers limited discounts and rebates to customers which are recorded in net sales on an estimated basis as the sales are recognized. The Company records freight revenues billed to customers as sales and the related shipping and handling cost in cost of sales. Taxes collected from customers and remitted to governmental authorities are presented on a net basis. | |||||||||||||
Cash and Cash Equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents at September 30, 2014 and 2013 consist entirely of short-term money market accounts. | |||||||||||||
The Company maintains cash balances at several financial institutions, and at times, such balances exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||
Investments: The Company currently invests its excess cash in bank certificates of deposit (CD’s) that are fully insured by the Federal Deposit Insurance Corporation (FDIC) with a term of not more than three years. CD’s with original maturities of more than three months are reported as held-to-maturity investments and are recorded at amortized cost, which approximates fair value due to the negligible risk of changes in value due to interest rates. The maturity dates of our CD’s are as follows: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Less than one year | $ | 6,632,000 | $ | 5,992,000 | |||||||||
1-3 years | 8,302,000 | 6,770,000 | |||||||||||
Total | $ | 14,934,000 | $ | 12,762,000 | |||||||||
Accounts Receivable: Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not required. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company does not charge interest on past due receivables. The Company determines its allowance by considering a number of factors, including the length of time trade receivables are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as whole. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. The allowance for doubtful accounts was $97,950 at both September 30, 2014 and September 30, 2013. | |||||||||||||
Fair Value of Financial Instruments: The financial statements include the following financial instruments: cash and cash equivalents, short-term investments, long-term investments, accounts receivable, accounts payable and accrued expenses. Other than long-term investments, all financial instruments’ carrying values approximate fair values because of the short-term nature of the instruments. Long-term investments’ carrying value approximates fair value due to the negligible risk of changes in value due to interest rates. | |||||||||||||
Inventories: Inventories consist of finished goods, raw materials and work in process and are stated at the lower of average cost (which approximates first in, first out) or market. Inventory is valued using material costs, labor charges, and allocated factory overhead charges and consists of the following: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Raw materials | $ | 3,729,160 | $ | 4,110,224 | |||||||||
Work-in-process | 292,557 | 494,980 | |||||||||||
Finished goods | 1,368,625 | 1,021,560 | |||||||||||
$ | 5,390,342 | $ | 5,626,764 | ||||||||||
Inventory is stated at the lower of cost or market. On a regular basis, the Company reviews its inventory and identifies that which is excess, slow moving, and obsolete by considering factors such as inventory levels, expected product life, and forecasted sales demand. Any identified excess, slow moving, and obsolete inventory is written down to its market value through a charge to cost of sales. It is possible that additional inventory write-down charges may be required in the future if there is a significant decline in demand for the Company’s products and the Company does not adjust its manufacturing production accordingly. | |||||||||||||
Property, Plant and Equipment: Property, plant and equipment are recorded at cost. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance are charged to expense when incurred. Depreciation is provided in amounts sufficient to relate the cost of assets to operations over their estimated useful lives. Leasehold improvements are amortized over the shorter of the remaining term of the lease or estimated life of the asset. Estimated useful lives of the assets are as follows: | |||||||||||||
Years | |||||||||||||
Equipment | 3 | - | 7 | ||||||||||
Leasehold improvements | 7 | - | 10 | or life of lease | |||||||||
Vehicles | 3 | ||||||||||||
Property, plant and equipment consist of the following: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Manufacturing Equipment | $ | 3,057,665 | $ | 2,404,797 | |||||||||
Office Equipment | 1,985,409 | 1,862,847 | |||||||||||
Leasehold Improvements | 320,218 | 127,883 | |||||||||||
Vehicles | 192,321 | 154,945 | |||||||||||
5,555,613 | 4,550,472 | ||||||||||||
Less accumulated depreciation | 3,093,363 | 2,753,660 | |||||||||||
$ | 2,462,250 | $ | 1,796,812 | ||||||||||
Depreciation expense | $ | 699,306 | $ | 475,524 | |||||||||
Goodwill and Patents: The Company operates as one reporting unit and reviews the carrying amount of goodwill annually in the fourth quarter of each fiscal year and more frequently if events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company determines its fair value for goodwill impairment testing purposes by calculating its market capitalization and comparing that to the Company’s carrying value. The Company’s goodwill impairment test for the years ended September 30, 2014, 2013 and 2012 resulted in excess fair value over carrying value and therefore, no adjustments were made to goodwill. During the year ended September 30, 2014, there were no triggering events that indicated goodwill could be impaired. | |||||||||||||
A significant reduction in our market capitalization or in the carrying amount of net assets of a reporting unit could result in an impairment charge. If the carrying amount of a reporting unit exceeds its fair value, the Company would measure the possible goodwill impairment loss based on an allocation of the estimate of fair value of the reporting unit to all of the underlying assets and liabilities of the reporting unit, including any previously unrecognized intangible assets. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized to the extent that a reporting unit's recorded goodwill exceeds the implied fair value of goodwill. An impairment loss would be based on significant estimates and judgments, and if the facts and circumstances change, a potential impairment could have a material impact on the Company’s financial statements. | |||||||||||||
No impairment of goodwill has occurred during the years ended September 30, 2014, 2013 or 2012, respectively. | |||||||||||||
The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not exceeding 17 years. As of September 30, 2014, the Company has four patents granted and four pending applications pending inside and outside the United States. | |||||||||||||
Impairment of Long-Lived Assets: The Company assesses potential impairments to its long-lived assets or asset groups when there is evidence that events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value and is recorded as a reduction in the carrying value of the related asset or asset group and a charge to operating results. No impairment of long-lived assets has occurred during the years ended September 30, 2014, 2013 and 2012. | |||||||||||||
Income Taxes: The Company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. The Company establishes a valuation allowance to reduce the deferred tax assets when it is more likely than not that a deferred tax asset will not be realizable. Changes in tax rates are reflected in the tax provision as they occur. | |||||||||||||
In accounting for uncertainty in income taxes, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of September 30, 2014, the Company does not have any unrecognized tax benefits. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax positions over the next 12 months. | |||||||||||||
Stock-Based Compensation: We measure and recognize compensation expense for all stock-based payments at fair value over the requisite service period. We use the Black-Scholes option pricing model to determine the weighted average fair value of options. For restricted stock grants, fair value is determined as the average price of the Company’s stock on the date of grant. Equity-based compensation expense is included in selling, general and administrative expenses. The determination of fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as by assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. | |||||||||||||
The expected terms of the options are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on historical and expected future volatility of the Company’s stock. The Company has not historically issued any dividends and does not expect to in the future. Forfeitures for both option and restricted stock grants are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from estimates. | |||||||||||||
If factors change and we employ different assumptions in the determination of the fair value of grants in future periods, the related compensation expense that we record may differ significantly from what we have recorded in the current periods. | |||||||||||||
Net Income Per Share: Basic and diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding and the weighted average number of dilutive shares outstanding, respectively. Weighted average common shares outstanding for the years ended September 30, 2014, 2013 and 2012 were as follows: | |||||||||||||
Year ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 5,432,851 | $ | 4,733,844 | $ | 7,701,194 | |||||||
Weighted average common shares | 12,916,273 | 12,527,153 | 12,371,371 | ||||||||||
Dilutive potential common shares | 685,321 | 551,786 | 418,797 | ||||||||||
Weighted average dilutive common shares outstanding | 13,601,594 | 13,078,939 | 12,790,168 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.42 | $ | 0.38 | $ | 0.62 | |||||||
Diluted | $ | 0.4 | $ | 0.36 | $ | 0.6 | |||||||
The calculation of diluted net income per common share for the year ended September 30, 2012 excluded 323,500 potentially dilutive shares because their effect was anti-dilutive. There were no potentially dilutive shares excluded from the calculation above for the years ended September 30, 2014 and 2013. | |||||||||||||
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related revenues and expenses and disclosure about contingent assets and liabilities at the date of the financial statements. Significant estimates include the deferred tax asset valuation allowance, the valuation of our inventory, rebates related to revenue recognition, and the valuation of long-lived assets and goodwill. Actual results may differ materially from these estimates. | |||||||||||||
Recently Issued Accounting Pronouncements: | |||||||||||||
Revenue from Contracts with Customers - In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers”. The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of fiscal year 2018, given that early adoption is not an option. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. | |||||||||||||
Note_B_Commitments_and_Facilit
Note B - Commitments and Facilities | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Leases of Lessee Disclosure [Text Block] | ' | ||||
NOTE B – COMMITMENTS AND FACILITIES | |||||
Operating Leases: The Company leases office and manufacturing facilities in Plymouth, MN for its ongoing operations. This operating lease as amended expires February 28, 2015. On September 9, 2014, the Company entered into a lease under which will serve as its new headquarters in Brooklyn Park, MN. The lease term will commence on the later of January 1, 2015 or the date of substantial completion of build out of the leased premises. The Company also leases various pieces of office equipment. For the years ended September 30, 2014, 2013 and 2012, total rent expense was $505,000, $450,000 and $406,000 respectively. | |||||
As of September 30, 2014, the future minimum lease payments required under operating lease agreements are as follows: | |||||
Year ending September 30 | Operating leases | ||||
2015 | $ | 436,820 | |||
2016 | 443,210 | ||||
2017 | 364,300 | ||||
2018 | 373,409 | ||||
2019 | 382,746 | ||||
Thereafter | 2,244,435 | ||||
Total minimum lease payments | $ | 4,244,920 | |||
Purchase Obligations: The Company estimates that as a result of the lease that was entered into on September 9, 2014 described in greater detail above, it will incur approximately $2,100,000 in capital expenditures in fiscal year 2015 relating to the build out of office, manufacturing, warehousing and distribution space. | |||||
Share Repurchase: On November 13, 2014, the Company announced that its board of directors had approved a stock repurchase program under which it will begin purchasing up to $8 million of its outstanding shares of common stock. The program does not obligate Clearfield to repurchase any particular amount of common stock during any period. The repurchase will be funded by cash on hand. The repurchase program is expected to continue indefinitely until the maximum dollar amount of shares has been repurchased or until the repurchase program is earlier modified, suspended or terminated by the board of directors. | |||||
Note_C_Shareholders_Equity
Note C - Shareholders' Equity | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||
NOTE C – SHAREHOLDERS’ EQUITY | |||||||||||||||
The Board of Directors may, by resolution, establish from the undesignated shares different classes or series of shares and may fix the relative rights and preferences of shares in any class or series. The Company is authorized to issue 500 shares of preferred stock and 50,000,000 shares of common stock at $.01 par value. The Company has not issued any shares of preferred stock. | |||||||||||||||
Stock-Based Compensation: The Company’s stock-based compensation plans are administered by the Compensation Committee of the Board of Directors, which selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures and other provisions of the award. | |||||||||||||||
Stock Options: The Company uses the Black-Scholes option-pricing model to estimate fair value of stock-based awards. The Company did not grant stock options during the years ended September 30, 2014 and 2013. | |||||||||||||||
The following weighted average assumptions were used for stock options granted for the year ended September 30, 2012: | |||||||||||||||
2012 | |||||||||||||||
Expected volatility | 82 | % | |||||||||||||
Expected life (in years) | 6 | ||||||||||||||
Expected dividends | 0 | % | |||||||||||||
Risk-free interest rate | 0.9 | % | |||||||||||||
Weighted-average grant-date fair value | $ | 4.12 | |||||||||||||
The Company has two equity compensation plans which are used as an incentive for directors, officers, and other employees. The director’s plan was terminated in February of 2010 and 67,500 authorized but unissued shares were removed from the plan. Options are generally granted at fair market values determined on the date of grant and vesting normally occurs over a three to five-year period. The maximum contractual term is normally six years. However, options granted to directors have a one year vesting period and a six year contractual term. Shares issued upon exercise of a stock option are new shares. The employee plan has 343,714 shares available for issue as of September 30, 2014. As of September 30, 2014, $5,198,114 of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a weighted average period of approximately 9.9 years. The number of options vested during the year ended September 30, 2014 was 91,819 with a total grant date fair value of $460,202 and a weighted average grant date fair value of $5.01. The Company recorded related compensation expense for the years ended September 30, 2014, 2013, and 2012 of $794,865, $753,727, and $470,710, respectively. There were 76,968 stock options that were exercised using a cashless method of exercise. The intrinsic value of options exercised during the years ended September 30, 2014 and 2013 was $7,522,553 and $1,185,501, respectively. The intrinsic value of options exercisable as of September 30, 2014 is $2,529,127. | |||||||||||||||
Option transactions under these plans during the years ended September 30, 2014 and 2013 are summarized as follows: | |||||||||||||||
Number of | Weighted average | Weighted average | |||||||||||||
shares | exercise price | fair value | |||||||||||||
Outstanding at September 30, 2012 | 1,029,176 | $ | 3.07 | ||||||||||||
Granted | - | - | - | ||||||||||||
Cancelled or Forfeited | (9,600 | ) | 5.77 | ||||||||||||
Exercised | (156,057 | ) | 1.97 | ||||||||||||
Outstanding at September 30, 2013 | 863,519 | $ | 3.24 | ||||||||||||
Granted | - | - | - | ||||||||||||
Cancelled or Forfeited | (2,450 | ) | 4.43 | ||||||||||||
Exercised | (488,018 | ) | 1.94 | ||||||||||||
Outstanding at September 30, 2014 | 373,051 | $ | 4.93 | ||||||||||||
The following table summarizes information concerning options exercisable under the equity compensation plans: | |||||||||||||||
Year ended | Exercisable | Weighted average | Weighted average | ||||||||||||
remaining contractual life | exercise price | ||||||||||||||
(in years) | |||||||||||||||
30-Sep-14 | 313,851 | 2.63 | $ | 4.67 | |||||||||||
30-Sep-13 | 711,802 | 4.17 | $ | 2.75 | |||||||||||
The following table summarizes information concerning options currently outstanding at: | |||||||||||||||
Year Ended | Number | Weighted | Weighted | Aggregate | |||||||||||
outstanding | average | average | intrinsic | ||||||||||||
remaining | exercise | value | |||||||||||||
contractual life | price | ||||||||||||||
(in years) | |||||||||||||||
30-Sep-14 | 373,051 | 2.52 | $ | 4.93 | $ | 2,908,849 | |||||||||
30-Sep-13 | 863,519 | 4.09 | $ | 3.24 | $ | 8,801,776 | |||||||||
Restricted Stock: The Company’s 2007 Stock Compensation Plan permits our Compensation Committee to grant other stock-based awards. The Company awards to key employees restricted stock grants that vest over one to ten years. | |||||||||||||||
Restricted stock transactions during the years ended September 30, 2014 and 2013 are summarized as follows: | |||||||||||||||
Number of | Weighted average | ||||||||||||||
shares | grant date fair value | ||||||||||||||
Unvested shares at September 30, 2012 | 363,336 | $ | 5.07 | ||||||||||||
Granted | 9,090 | 5.5 | |||||||||||||
Vested | (75,136 | ) | 4.95 | ||||||||||||
Forfeited | (5,000 | ) | 5.1 | ||||||||||||
Unvested shares at September 30, 2013 | 292,290 | 5.11 | |||||||||||||
Granted | 307,615 | 13.39 | |||||||||||||
Vested | (79,390 | ) | 5.15 | ||||||||||||
Forfeited | (2,000 | ) | 5.1 | ||||||||||||
Unvested shares at September 30, 2014 | 518,515 | $ | 10.02 | ||||||||||||
The Company repurchased a total of 16,560 shares of our common stock at an average price of $13.61 in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended September 30, 2014. The Company repurchased a total of 18,786 shares of our common stock at an average price of $11.88 in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended September 30, 2013. | |||||||||||||||
Employee Stock Purchase Plan: The Clearfield, Inc. 2010 Employee Stock Purchase Plan (“Stock Plan”) allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The Stock Plan is available to all employees subject to certain eligibility requirements. Terms of the Stock Plan provide that participating employees may purchase the Company’s common stock on a voluntary after tax basis. Employees may purchase the Company’s common stock at a price that is no less than the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period or phase. The Stock Plan is carried out in six-month phases, with phases beginning on July 1 and January 1 of each calendar year. For the phases that ended on December 31, 2013 and June 30, 2014, employees purchased 10,920 and 6,669 shares, respectively, at prices of $8.28 and $14.27 per share, respectively. For the phases that ended on December 31, 2012 and June 30, 2013, employees purchased 18,000 and 17,597 shares, respectively, at a price of $3.82 per share. As of September 30, 2014, the Company has withheld approximately $55,544 from employees participating in the phase that began on July 1, 2014. After the employee purchase on June 30, 2014, 185,656 shares of common stock were available for future purchase under the Stock Plan. | |||||||||||||||
Note_D_Income_Taxes
Note D - Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
NOTE D – INCOME TAXES | |||||||||||||
Realization of net operating loss carry-forward and other deferred tax temporary differences are contingent upon future taxable earnings. The Company’s deferred tax assets were reviewed for expected utilization by assessing the available positive and negative factors surrounding its recoverability. During the fourth quarter of fiscal year 2012, the Company reversed a substantial portion of the deferred tax asset valuation allowance in the amount of $3,518,000 after considering all available positive and negative evidence, including our historical operating results, current financial condition, and potential future taxable income. This represented a change in accounting estimate and increased our net income by that amount as well and contributed $0.28 per diluted share for the period. The total valuation allowance released during the year ended September 30, 2012 was approximately $5.1 million. | |||||||||||||
As of September 30, 2013, the Company’s remaining valuation allowance of approximately $975,000 related to state net operating loss carry forwards. During the fourth quarter of 2014, the Company reversed a portion of its remaining valuation allowance primarily related to the expiration of state net operating losses in 2014. The remaining valuation allowance balance as of September 30, 2014 of $848,000 relates entirely to state net operating loss carry forwards we do not expect to utilize. Approximately $50,000 of the valuation allowance is short-term and $798,000 is long-term, against its remaining deferred tax assets. The Company will continue to assess the assumptions used to determine the amount of our valuation allowance and may adjust the valuation allowance in future periods based on changes in assumptions of estimated future income and other factors. If the valuation allowance is reduced, we would record an income tax benefit in the period the valuation allowance is reduced. If the valuation allowance is increased, we would record additional income tax expense. | |||||||||||||
Significant components of deferred income tax assets and liabilities are as follows at: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets (liabilities): | |||||||||||||
Inventories | $ | 292,675 | $ | 262,162 | |||||||||
Accrued expenses and reserves | 297,336 | 657,125 | |||||||||||
Prepaid expenses | (42,722 | ) | (23,427 | ) | |||||||||
Net operating loss carry forwards and credits | 1,752,291 | 3,813,429 | |||||||||||
2,299,580 | 4,709,289 | ||||||||||||
Valuation allowance | (50,145 | ) | (94,179 | ) | |||||||||
Net current deferred tax asset | $ | 2,249,435 | $ | 4,615,110 | |||||||||
Long-term deferred income tax assets (liabilities): | |||||||||||||
Intangibles | $ | (30,028 | ) | $ | (15,779 | ) | |||||||
Property and equipment depreciation | 18,091 | 86,292 | |||||||||||
Net operating loss carry forwards and credits | 1,531,315 | 2,096,581 | |||||||||||
Stock based compensation | 57,573 | 66,722 | |||||||||||
Accrued expenses and reserves | 3,369 | 7,444 | |||||||||||
Goodwill | (626,018 | ) | (549,608 | ) | |||||||||
954,302 | 1,691,652 | ||||||||||||
Valuation allowance | (797,680 | ) | (881,079 | ) | |||||||||
Net long-term deferred tax asset | $ | 156,622 | $ | 810,573 | |||||||||
As of September 30, 2014 the current income tax receivable was approximately $127,000. As of September 30, 2013, the current income tax payable was approximately $81,000. | |||||||||||||
As of September 30, 2014, the Company had U.S. federal net operating loss (NOL) carry forwards of approximately $8.7 million. The U.S. federal net operating loss carry forwards will expire in 2023 through 2028 if not utilized. As of September 30, 2014, the Company had state net operating loss carry forwards of approximately $16.6 million. The state net operating loss carry forwards will expire in 2015 through 2022 if not utilized. | |||||||||||||
The Company completed an Internal Revenue Code Section 382 analysis of the loss carry forwards in 2009 and determined then that all of the Company’s loss carry forwards are utilizable and not restricted under Section 382. The Company has not updated its Section 382 analysis subsequent to 2009 and does not believe there have been any events subsequent to 2009 that would impact the analysis. | |||||||||||||
Deferred tax assets relating to equity compensation have been reduced to reflect tax deductions in excess of previously recorded tax benefits through the year ended September 30, 2014. Our federal NOL carry forwards referenced above at September 30, 2014 include approximately $3.7 million of income tax deductions in excess of previously recorded tax benefits for equity based awards. Due to expiring state NOL’s, tax deductions in excess of previously recorded tax benefits will not be realized. Although the additional tax deductions are reflected in NOL carry forwards referenced above, the related tax benefit will not be recognized until the deductions reduce taxes payable. | |||||||||||||
Accordingly, since the tax benefit does not reduce the Company’s current taxes payable in 2014, these tax benefits are not reflected in the Company’s deferred tax assets presented above. The tax benefit of approximately $1,289,000 as of September 30, 2014 related to these excess deductions will be reflected as a credit to additional paid-in capital when recognized. | |||||||||||||
The following is a reconciliation of the federal statutory income tax rate to the consolidated effective tax rate as a percent of pre-tax income for the following years ended: | |||||||||||||
September 30, | September 30, | September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes | 1 | % | 1 | % | 1 | % | |||||||
Permanent differences | 2 | % | 2 | % | 4 | % | |||||||
Change in valuation allowance | (1 | %) | - | (115 | %) | ||||||||
Expiration of state NOL’s | 1 | % | - | - | |||||||||
Tax rate | 37 | % | 37 | % | (76 | %) | |||||||
Components of the income tax expense (benefit) are as follows for the years ended: | |||||||||||||
September 30, | September 30, | September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 115,049 | $ | 180,706 | $ | 87,193 | |||||||
State | 46,303 | 58,421 | 25,439 | ||||||||||
161,352 | 239,127 | 112,632 | |||||||||||
Deferred: | |||||||||||||
Federal | 2,903,110 | 2,455,015 | (3,088,076 | ) | |||||||||
State | 116,516 | 109,030 | (348,855 | ) | |||||||||
3,019,626 | 2,564,045 | (3,436,931 | ) | ||||||||||
Income tax expense (benefit) | $ | 3,180,978 | $ | 2,803,172 | $ | (3,324,299 | ) | ||||||
The Company is required to recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company applies the interpretation to all tax positions for which the statute of limitations remained open. The Company had no liability for unrecognized tax benefits and did not recognize any interest or penalties during the years ended September 30, 2014, 2013, or 2012. | |||||||||||||
The Company is subject to income taxes in the U.S. federal jurisdiction, and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, income tax examinations by tax authorities for fiscal years ending prior to 1999. We are generally subject to U.S. federal and state tax examinations for all tax years since 1999 due to our net operating loss carryforwards and the utilization of the carryforwards in years still open under statute. The Company changed its fiscal year in 2007 from March 31 to September 30. | |||||||||||||
Note_E_Concentrations
Note E - Concentrations | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||||||
NOTE E – CONCENTRATIONS | |||||||||||||
Suppliers: The Company purchases critical components for our products, including injection molded parts and connectors from third parties, some of whom are single- or limited-source suppliers. If any of our suppliers are unable to ship critical components, we may be unable to manufacture and ship products to our distributors or customers. If the price of these components increases for any reason, or if these suppliers are unable or unwilling to deliver, we may have to find another source, which could result in interruptions, increased costs, delays, loss of sales and quality control problems. | |||||||||||||
Customers: The following table summarizes customers comprising 10% or more of net sales for the years ended September 30, 2014, 2013, and 2012: | |||||||||||||
Year Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Customer A | 21 | % | 23 | % | * | ||||||||
Customer B | 19 | % | 19 | % | 22 | % | |||||||
* Less than 10% | |||||||||||||
As of September 30, 2014, Customer C accounted for 10% of accounts receivable. As of September 30, 2013, Customer A accounted for 57% of accounts receivable. | |||||||||||||
Note_F_Employee_Benefit_Plan
Note F - Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
NOTE F – EMPLOYEE BENEFIT PLAN | |
The Company maintains a contributory 401(k) profit sharing benefit plan, whereby eligible employees may contribute a portion of their earnings, not to exceed annual amounts allowed under the Internal Revenue Code. For the years ended September 30, 2014, 2013 and 2012, the Company matched 100% of the first 3% and 50% of the next 2% of the participant’s eligible compensation that was contributed by the participant. The Company’s contributions under this plan were $379,630, $290,652 and $283,600 for the years ended September 30, 2014, 2013 and 2012, respectively. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||
Revenue Recognition: Revenue is recognized when persuasive evidence of an arrangement exists, the product has been delivered, the fee is fixed, acceptance by the customer is reasonably certain and collection is reasonably assured. This generally occurs upon shipment of product to the customer. Sales of the Company’s products are subject to limited warranty obligations that are included in the Company’s terms and conditions. Also, the Company offers limited discounts and rebates to customers which are recorded in net sales on an estimated basis as the sales are recognized. The Company records freight revenues billed to customers as sales and the related shipping and handling cost in cost of sales. Taxes collected from customers and remitted to governmental authorities are presented on a net basis. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||
Cash and Cash Equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents at September 30, 2014 and 2013 consist entirely of short-term money market accounts. | |||||||||||||
The Company maintains cash balances at several financial institutions, and at times, such balances exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||||
Investments: The Company currently invests its excess cash in bank certificates of deposit (CD’s) that are fully insured by the Federal Deposit Insurance Corporation (FDIC) with a term of not more than three years. CD’s with original maturities of more than three months are reported as held-to-maturity investments and are recorded at amortized cost, which approximates fair value due to the negligible risk of changes in value due to interest rates. The maturity dates of our CD’s are as follows: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Less than one year | $ | 6,632,000 | $ | 5,992,000 | |||||||||
1-3 years | 8,302,000 | 6,770,000 | |||||||||||
Total | $ | 14,934,000 | $ | 12,762,000 | |||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||||||
Accounts Receivable: Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not required. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company does not charge interest on past due receivables. The Company determines its allowance by considering a number of factors, including the length of time trade receivables are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as whole. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. The allowance for doubtful accounts was $97,950 at both September 30, 2014 and September 30, 2013. | |||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||
Fair Value of Financial Instruments: The financial statements include the following financial instruments: cash and cash equivalents, short-term investments, long-term investments, accounts receivable, accounts payable and accrued expenses. Other than long-term investments, all financial instruments’ carrying values approximate fair values because of the short-term nature of the instruments. Long-term investments’ carrying value approximates fair value due to the negligible risk of changes in value due to interest rates. | |||||||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||||
Inventories: Inventories consist of finished goods, raw materials and work in process and are stated at the lower of average cost (which approximates first in, first out) or market. Inventory is valued using material costs, labor charges, and allocated factory overhead charges and consists of the following: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Raw materials | $ | 3,729,160 | $ | 4,110,224 | |||||||||
Work-in-process | 292,557 | 494,980 | |||||||||||
Finished goods | 1,368,625 | 1,021,560 | |||||||||||
$ | 5,390,342 | $ | 5,626,764 | ||||||||||
Inventory is stated at the lower of cost or market. On a regular basis, the Company reviews its inventory and identifies that which is excess, slow moving, and obsolete by considering factors such as inventory levels, expected product life, and forecasted sales demand. Any identified excess, slow moving, and obsolete inventory is written down to its market value through a charge to cost of sales. It is possible that additional inventory write-down charges may be required in the future if there is a significant decline in demand for the Company’s products and the Company does not adjust its manufacturing production accordingly. | |||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||
Property, Plant and Equipment: Property, plant and equipment are recorded at cost. Significant additions or improvements extending asset lives are capitalized, while repairs and maintenance are charged to expense when incurred. Depreciation is provided in amounts sufficient to relate the cost of assets to operations over their estimated useful lives. Leasehold improvements are amortized over the shorter of the remaining term of the lease or estimated life of the asset. Estimated useful lives of the assets are as follows: | |||||||||||||
Years | |||||||||||||
Equipment | 3 | - | 7 | ||||||||||
Leasehold improvements | 7 | - | 10 | or life of lease | |||||||||
Vehicles | 3 | ||||||||||||
Property, plant and equipment consist of the following: | |||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Manufacturing Equipment | $ | 3,057,665 | $ | 2,404,797 | |||||||||
Office Equipment | 1,985,409 | 1,862,847 | |||||||||||
Leasehold Improvements | 320,218 | 127,883 | |||||||||||
Vehicles | 192,321 | 154,945 | |||||||||||
5,555,613 | 4,550,472 | ||||||||||||
Less accumulated depreciation | 3,093,363 | 2,753,660 | |||||||||||
$ | 2,462,250 | $ | 1,796,812 | ||||||||||
Depreciation expense | $ | 699,306 | $ | 475,524 | |||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||||
Goodwill and Patents: The Company operates as one reporting unit and reviews the carrying amount of goodwill annually in the fourth quarter of each fiscal year and more frequently if events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company determines its fair value for goodwill impairment testing purposes by calculating its market capitalization and comparing that to the Company’s carrying value. The Company’s goodwill impairment test for the years ended September 30, 2014, 2013 and 2012 resulted in excess fair value over carrying value and therefore, no adjustments were made to goodwill. During the year ended September 30, 2014, there were no triggering events that indicated goodwill could be impaired. | |||||||||||||
A significant reduction in our market capitalization or in the carrying amount of net assets of a reporting unit could result in an impairment charge. If the carrying amount of a reporting unit exceeds its fair value, the Company would measure the possible goodwill impairment loss based on an allocation of the estimate of fair value of the reporting unit to all of the underlying assets and liabilities of the reporting unit, including any previously unrecognized intangible assets. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized to the extent that a reporting unit's recorded goodwill exceeds the implied fair value of goodwill. An impairment loss would be based on significant estimates and judgments, and if the facts and circumstances change, a potential impairment could have a material impact on the Company’s financial statements. | |||||||||||||
No impairment of goodwill has occurred during the years ended September 30, 2014, 2013 or 2012, respectively. | |||||||||||||
The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not exceeding 17 years. As of September 30, 2014, the Company has four patents granted and four pending applications pending inside and outside the United States. | |||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||
Impairment of Long-Lived Assets: The Company assesses potential impairments to its long-lived assets or asset groups when there is evidence that events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value and is recorded as a reduction in the carrying value of the related asset or asset group and a charge to operating results. No impairment of long-lived assets has occurred during the years ended September 30, 2014, 2013 and 2012. | |||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||
Income Taxes: The Company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. The Company establishes a valuation allowance to reduce the deferred tax assets when it is more likely than not that a deferred tax asset will not be realizable. Changes in tax rates are reflected in the tax provision as they occur. | |||||||||||||
In accounting for uncertainty in income taxes, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of September 30, 2014, the Company does not have any unrecognized tax benefits. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax positions over the next 12 months. | |||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||
Stock-Based Compensation: We measure and recognize compensation expense for all stock-based payments at fair value over the requisite service period. We use the Black-Scholes option pricing model to determine the weighted average fair value of options. For restricted stock grants, fair value is determined as the average price of the Company’s stock on the date of grant. Equity-based compensation expense is included in selling, general and administrative expenses. The determination of fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as by assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. | |||||||||||||
The expected terms of the options are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on historical and expected future volatility of the Company’s stock. The Company has not historically issued any dividends and does not expect to in the future. Forfeitures for both option and restricted stock grants are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from estimates. | |||||||||||||
If factors change and we employ different assumptions in the determination of the fair value of grants in future periods, the related compensation expense that we record may differ significantly from what we have recorded in the current periods. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||
Net Income Per Share: Basic and diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding and the weighted average number of dilutive shares outstanding, respectively. Weighted average common shares outstanding for the years ended September 30, 2014, 2013 and 2012 were as follows: | |||||||||||||
Year ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 5,432,851 | $ | 4,733,844 | $ | 7,701,194 | |||||||
Weighted average common shares | 12,916,273 | 12,527,153 | 12,371,371 | ||||||||||
Dilutive potential common shares | 685,321 | 551,786 | 418,797 | ||||||||||
Weighted average dilutive common shares outstanding | 13,601,594 | 13,078,939 | 12,790,168 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.42 | $ | 0.38 | $ | 0.62 | |||||||
Diluted | $ | 0.4 | $ | 0.36 | $ | 0.6 | |||||||
The calculation of diluted net income per common share for the year ended September 30, 2012 excluded 323,500 potentially dilutive shares because their effect was anti-dilutive. There were no potentially dilutive shares excluded from the calculation above for the years ended September 30, 2014 and 2013. | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related revenues and expenses and disclosure about contingent assets and liabilities at the date of the financial statements. Significant estimates include the deferred tax asset valuation allowance, the valuation of our inventory, rebates related to revenue recognition, and the valuation of long-lived assets and goodwill. Actual results may differ materially from these estimates. | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||
Recently Issued Accounting Pronouncements: | |||||||||||||
Revenue from Contracts with Customers - In May 2014, the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (“ASC”) Section 606, “Revenue from Contracts with Customers”. The new section will replace Section 605, “Revenue Recognition” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company will adopt the new provisions of this accounting standard at the beginning of fiscal year 2018, given that early adoption is not an option. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. |
Note_A_Summary_of_Significant_1
Note A - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Note A - Summary of Significant Accounting Policies (Tables) [Line Items] | ' | ||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Less than one year | $ | 6,632,000 | $ | 5,992,000 | |||||||||
1-3 years | 8,302,000 | 6,770,000 | |||||||||||
Total | $ | 14,934,000 | $ | 12,762,000 | |||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Raw materials | $ | 3,729,160 | $ | 4,110,224 | |||||||||
Work-in-process | 292,557 | 494,980 | |||||||||||
Finished goods | 1,368,625 | 1,021,560 | |||||||||||
$ | 5,390,342 | $ | 5,626,764 | ||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Manufacturing Equipment | $ | 3,057,665 | $ | 2,404,797 | |||||||||
Office Equipment | 1,985,409 | 1,862,847 | |||||||||||
Leasehold Improvements | 320,218 | 127,883 | |||||||||||
Vehicles | 192,321 | 154,945 | |||||||||||
5,555,613 | 4,550,472 | ||||||||||||
Less accumulated depreciation | 3,093,363 | 2,753,660 | |||||||||||
$ | 2,462,250 | $ | 1,796,812 | ||||||||||
Depreciation expense | $ | 699,306 | $ | 475,524 | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||
Year ended September 30, | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 5,432,851 | $ | 4,733,844 | $ | 7,701,194 | |||||||
Weighted average common shares | 12,916,273 | 12,527,153 | 12,371,371 | ||||||||||
Dilutive potential common shares | 685,321 | 551,786 | 418,797 | ||||||||||
Weighted average dilutive common shares outstanding | 13,601,594 | 13,078,939 | 12,790,168 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.42 | $ | 0.38 | $ | 0.62 | |||||||
Diluted | $ | 0.4 | $ | 0.36 | $ | 0.6 | |||||||
Useful Lives [Member] | ' | ||||||||||||
Note A - Summary of Significant Accounting Policies (Tables) [Line Items] | ' | ||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||||
Years | |||||||||||||
Equipment | 3 | - | 7 | ||||||||||
Leasehold improvements | 7 | - | 10 | or life of lease | |||||||||
Vehicles | 3 |
Note_B_Commitments_and_Facilit1
Note B - Commitments and Facilities (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
Year ending September 30 | Operating leases | ||||
2015 | $ | 436,820 | |||
2016 | 443,210 | ||||
2017 | 364,300 | ||||
2018 | 373,409 | ||||
2019 | 382,746 | ||||
Thereafter | 2,244,435 | ||||
Total minimum lease payments | $ | 4,244,920 |
Note_C_Shareholders_Equity_Tab
Note C - Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||
2012 | |||||||||||||||
Expected volatility | 82 | % | |||||||||||||
Expected life (in years) | 6 | ||||||||||||||
Expected dividends | 0 | % | |||||||||||||
Risk-free interest rate | 0.9 | % | |||||||||||||
Weighted-average grant-date fair value | $ | 4.12 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||
Number of | Weighted average | Weighted average | |||||||||||||
shares | exercise price | fair value | |||||||||||||
Outstanding at September 30, 2012 | 1,029,176 | $ | 3.07 | ||||||||||||
Granted | - | - | - | ||||||||||||
Cancelled or Forfeited | (9,600 | ) | 5.77 | ||||||||||||
Exercised | (156,057 | ) | 1.97 | ||||||||||||
Outstanding at September 30, 2013 | 863,519 | $ | 3.24 | ||||||||||||
Granted | - | - | - | ||||||||||||
Cancelled or Forfeited | (2,450 | ) | 4.43 | ||||||||||||
Exercised | (488,018 | ) | 1.94 | ||||||||||||
Outstanding at September 30, 2014 | 373,051 | $ | 4.93 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | ' | ||||||||||||||
Year ended | Exercisable | Weighted average | Weighted average | ||||||||||||
remaining contractual life | exercise price | ||||||||||||||
(in years) | |||||||||||||||
30-Sep-14 | 313,851 | 2.63 | $ | 4.67 | |||||||||||
30-Sep-13 | 711,802 | 4.17 | $ | 2.75 | |||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | ' | ||||||||||||||
Year Ended | Number | Weighted | Weighted | Aggregate | |||||||||||
outstanding | average | average | intrinsic | ||||||||||||
remaining | exercise | value | |||||||||||||
contractual life | price | ||||||||||||||
(in years) | |||||||||||||||
30-Sep-14 | 373,051 | 2.52 | $ | 4.93 | $ | 2,908,849 | |||||||||
30-Sep-13 | 863,519 | 4.09 | $ | 3.24 | $ | 8,801,776 | |||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||
Number of | Weighted average | ||||||||||||||
shares | grant date fair value | ||||||||||||||
Unvested shares at September 30, 2012 | 363,336 | $ | 5.07 | ||||||||||||
Granted | 9,090 | 5.5 | |||||||||||||
Vested | (75,136 | ) | 4.95 | ||||||||||||
Forfeited | (5,000 | ) | 5.1 | ||||||||||||
Unvested shares at September 30, 2013 | 292,290 | 5.11 | |||||||||||||
Granted | 307,615 | 13.39 | |||||||||||||
Vested | (79,390 | ) | 5.15 | ||||||||||||
Forfeited | (2,000 | ) | 5.1 | ||||||||||||
Unvested shares at September 30, 2014 | 518,515 | $ | 10.02 |
Note_D_Income_Taxes_Tables
Note D - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets (liabilities): | |||||||||||||
Inventories | $ | 292,675 | $ | 262,162 | |||||||||
Accrued expenses and reserves | 297,336 | 657,125 | |||||||||||
Prepaid expenses | (42,722 | ) | (23,427 | ) | |||||||||
Net operating loss carry forwards and credits | 1,752,291 | 3,813,429 | |||||||||||
2,299,580 | 4,709,289 | ||||||||||||
Valuation allowance | (50,145 | ) | (94,179 | ) | |||||||||
Net current deferred tax asset | $ | 2,249,435 | $ | 4,615,110 | |||||||||
Long-term deferred income tax assets (liabilities): | |||||||||||||
Intangibles | $ | (30,028 | ) | $ | (15,779 | ) | |||||||
Property and equipment depreciation | 18,091 | 86,292 | |||||||||||
Net operating loss carry forwards and credits | 1,531,315 | 2,096,581 | |||||||||||
Stock based compensation | 57,573 | 66,722 | |||||||||||
Accrued expenses and reserves | 3,369 | 7,444 | |||||||||||
Goodwill | (626,018 | ) | (549,608 | ) | |||||||||
954,302 | 1,691,652 | ||||||||||||
Valuation allowance | (797,680 | ) | (881,079 | ) | |||||||||
Net long-term deferred tax asset | $ | 156,622 | $ | 810,573 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes | 1 | % | 1 | % | 1 | % | |||||||
Permanent differences | 2 | % | 2 | % | 4 | % | |||||||
Change in valuation allowance | (1 | %) | - | (115 | %) | ||||||||
Expiration of state NOL’s | 1 | % | - | - | |||||||||
Tax rate | 37 | % | 37 | % | (76 | %) | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
September 30, | September 30, | September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 115,049 | $ | 180,706 | $ | 87,193 | |||||||
State | 46,303 | 58,421 | 25,439 | ||||||||||
161,352 | 239,127 | 112,632 | |||||||||||
Deferred: | |||||||||||||
Federal | 2,903,110 | 2,455,015 | (3,088,076 | ) | |||||||||
State | 116,516 | 109,030 | (348,855 | ) | |||||||||
3,019,626 | 2,564,045 | (3,436,931 | ) | ||||||||||
Income tax expense (benefit) | $ | 3,180,978 | $ | 2,803,172 | $ | (3,324,299 | ) |
Note_E_Concentrations_Tables
Note E - Concentrations (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||
Year Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Customer A | 21 | % | 23 | % | * | ||||||||
Customer B | 19 | % | 19 | % | 22 | % |
Note_A_Summary_of_Significant_2
Note A - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note A - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Current (in Dollars) | $97,950 | $97,950 | ' |
Number of Reportable Segments | 1 | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 323,500 |
Patents [Member] | Maximum [Member] | ' | ' | ' |
Note A - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '17 years | ' | ' |
Note_A_Summary_of_Significant_3
Note A - Summary of Significant Accounting Policies (Details) - Maturity Date of CDs (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Maturity Date of CDs [Abstract] | ' | ' |
Less than one year | $6,632,000 | $5,992,000 |
1-3 years | 8,302,000 | 6,770,000 |
Total | $14,934,000 | $12,762,000 |
Note_A_Summary_of_Significant_4
Note A - Summary of Significant Accounting Policies (Details) - Components of Inventory (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Components of Inventory [Abstract] | ' | ' |
Raw materials | $3,729,160 | $4,110,224 |
Work-in-process | 292,557 | 494,980 |
Finished goods | 1,368,625 | 1,021,560 |
$5,390,342 | $5,626,764 |
Note_A_Summary_of_Significant_5
Note A - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Assets | 12 Months Ended |
Sep. 30, 2014 | |
Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives Of Fixed Assets | '3 |
Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives Of Fixed Assets | '7 |
Leasehold Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives Of Fixed Assets | '7 |
Leasehold Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives Of Fixed Assets | '10 |
Vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives Of Fixed Assets | '3 |
Note_A_Summary_of_Significant_6
Note A - Summary of Significant Accounting Policies (Details) - Property, Plant and Equipment (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
$5,555,613 | $4,550,472 | |
Less accumulated depreciation | 3,093,363 | 2,753,660 |
2,462,250 | 1,796,812 | |
Depreciation expense | 699,306 | 475,524 |
Manufacturing Facility [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Fixed Assets | 3,057,665 | 2,404,797 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Fixed Assets | 1,985,409 | 1,862,847 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Fixed Assets | 320,218 | 127,883 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Fixed Assets | $192,321 | $154,945 |
Note_A_Summary_of_Significant_7
Note A - Summary of Significant Accounting Policies (Details) - Weighted Average Common Shares Outstanding (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted Average Common Shares Outstanding [Abstract] | ' | ' | ' |
Net income | $5,432,851 | $4,733,844 | $7,701,194 |
Weighted average common shares | 12,916,273 | 12,527,153 | 12,371,371 |
Dilutive potential common shares | $685,321 | $551,786 | $418,797 |
Weighted average dilutive common shares outstanding | 13,601,594 | 13,078,939 | 12,790,168 |
Earnings per share: | ' | ' | ' |
Basic | $0.42 | $0.38 | $0.62 |
Diluted | $0.40 | $0.36 | $0.60 |
Note_B_Commitments_and_Facilit2
Note B - Commitments and Facilities (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 13, 2014 | |
Subsequent Event [Member] | ||||
Note B - Commitments and Facilities (Details) [Line Items] | ' | ' | ' | ' |
Operating Leases, Rent Expense | $505,000 | $450,000 | $406,000 | ' |
Purchase Obligation, Due in Next Twelve Months | 2,100,000 | ' | ' | ' |
Stock Repurchase Value of Shares Authorized to be Repurchased | ' | ' | ' | $8,000,000 |
Note_B_Commitments_and_Facilit3
Note B - Commitments and Facilities (Details) - Future Minimum Lease Payments (USD $) | Sep. 30, 2014 |
Future Minimum Lease Payments [Abstract] | ' |
2015 | $436,820 |
2016 | 443,210 |
2017 | 364,300 |
2018 | 373,409 |
2019 | 382,746 |
Thereafter | 2,244,435 |
Total minimum lease payments | $4,244,920 |
Note_C_Shareholders_Equity_Det
Note C - Shareholders' Equity (Details) (USD $) | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Cashless Method Stock Option Exercised [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Minimum [Member] | Maximum [Member] | Directors [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | |||||
Minimum [Member] | Maximum [Member] | Directors [Member] | Minimum [Member] | Maximum [Member] | Employee Stock Purchase Plan [Member] | |||||||||||||
Note C - Shareholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | 500 | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary Equity, Shares Subscribed but Unissued | ' | ' | ' | 67,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '3 years | '5 years | '1 year | ' | '1 year | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '2 years 229 days | '4 years 62 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | '6 years | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 343,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 185,656 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $5,198,114 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 91,819 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars) | 460,202 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $5.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | 794,865 | 753,727 | 470,710 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -488,018 | -156,057 | ' | ' | ' | ' | ' | 76,968 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 7,522,553 | 1,185,501 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 2,529,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | 16,560 | 18,786 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $13.61 | $11.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,669 | 10,920 | 17,597 | 18,000 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.27 | $8.28 | $3.82 | $3.82 | ' |
Payments Related to Tax Withholding for Share-based Compensation (in Dollars) | $399,629 | $297,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55,544 |
Note_C_Shareholders_Equity_Det1
Note C - Shareholders' Equity (Details) - Black-Scholes Option-Pricing Weighted Average Assumptions (USD $) | 12 Months Ended |
Sep. 30, 2012 | |
Black-Scholes Option-Pricing Weighted Average Assumptions [Abstract] | ' |
Expected volatility | 82.00% |
Expected life (in years) | '6 years |
Expected dividends | 0.00% |
Risk-free interest rate | 0.90% |
Weighted-average grant-date fair value (in Dollars per share) | $4.12 |
Note_C_Shareholders_Equity_Det2
Note C - Shareholders' Equity (Details) - Option Transaction Summary (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Option Transaction Summary [Abstract] | ' | ' |
Options Outstanding | 863,519 | 1,029,176 |
Options Outstanding, Weighted Average Exercise Price | $3.24 | $3.07 |
Cancelled or Forfeited | -2,450 | -9,600 |
Cancelled or Forfeited, Weighted Average Exercise Price | $4.43 | $5.77 |
Exercised | -488,018 | -156,057 |
Exercised, Weighted Average Exercise Price | $1.94 | $1.97 |
Options Outstanding | 373,051 | 863,519 |
Options Outstanding, Weighted Average Exercise Price | $4.93 | $3.24 |
Note_C_Shareholders_Equity_Det3
Note C - Shareholders' Equity (Details) - Options Exercisable (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Options Exercisable [Abstract] | ' | ' |
Exercisable | 313,851 | 711,802 |
Weighted average remaining contractual life | '2 years 229 days | '4 years 62 days |
Weighted average exercise price | $4.67 | $2.75 |
Note_C_Shareholders_Equity_Det4
Note C - Shareholders' Equity (Details) - Options Currently Outstanding (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Options Currently Outstanding [Abstract] | ' | ' | ' |
Number outstanding | 373,051 | 863,519 | 1,029,176 |
Weighted average remaining contractual life | '2 years 189 days | '4 years 32 days | ' |
Weighted average exercise price | $4.93 | $3.24 | $3.07 |
Aggregate intrinsic value | $2,908,849 | $8,801,776 | ' |
Note_C_Shareholders_Equity_Det5
Note C - Shareholders' Equity (Details) - Restricted Stock Transactions (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restricted Stock [Member] | ' | ' | ' |
Note C - Shareholders' Equity (Details) - Restricted Stock Transactions [Line Items] | ' | ' | ' |
Unvested Shares | 518,515 | 292,290 | 363,336 |
Unvested Shares, Weighted Average Grant Date Fair Value | $10.02 | $5.11 | $5.07 |
Granted | 307,615 | 9,090 | ' |
Granted, Weighted Average Grant Date Fair Value | $13.39 | $5.50 | ' |
Vested | -79,390 | -75,136 | ' |
Vested, Weighted Average Grant Date Fair Value | $5.15 | $4.95 | ' |
Forfeited | -2,000 | -5,000 | ' |
Forfeited | $5.10 | $5.10 | ' |
Note_D_Income_Taxes_Details
Note D - Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $3,518,000 | ' | ' |
Change in Accounting Estimate,Increase in Net Income, Per Diluted Share (in Dollars per share) | $0.28 | ' | ' |
Deferred Tax Assets, Valuation Allowance | 5,100,000 | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | ' | ' | 975,000 |
Deferred Tax Assets, Valuation Allowance, Noncurrent | ' | 798,000 | ' |
Income Taxes Receivable, Current | ' | 127,000 | ' |
Taxes Payable, Current | ' | ' | 81,000 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | ' | 1,289,000 | ' |
Short Term [Member] | ' | ' | ' |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance, Current | ' | 50,000 | ' |
State and Local Jurisdiction [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ' | ' | ' |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | ' | 848,000 | ' |
Internal Revenue Service (IRS) [Member] | ' | ' | ' |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | ' | 8,700,000 | ' |
State [Member] | ' | ' | ' |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | ' | 16,600,000 | ' |
Equity Compensation [Member] | ' | ' | ' |
Note D - Income Taxes (Details) [Line Items] | ' | ' | ' |
Operating Loss Carryforwards | ' | $3,700,000 | ' |
Note_D_Income_Taxes_Details_Si
Note D - Income Taxes (Details) - Significant Components of Deferred Income Tax Assets and Liabilities (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Note D - Income Taxes (Details) - Significant Components of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Net operating loss carry forwards and credits | ' | $975,000 |
Deferred Taxes Gross | 954,302 | 1,691,652 |
Net current deferred tax asset | 2,249,435 | 4,615,110 |
Net long-term deferred tax asset | 156,622 | 810,573 |
Short Term [Member] | ' | ' |
Note D - Income Taxes (Details) - Significant Components of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Inventories | 292,675 | 262,162 |
Accrued expenses and reserves | 297,336 | 657,125 |
Prepaid expenses | -42,722 | -23,427 |
Net operating loss carry forwards and credits | 1,752,291 | 3,813,429 |
Deferred Taxes Gross | 2,299,580 | 4,709,289 |
Valuation allowance | -50,145 | -94,179 |
Net current deferred tax asset | 2,249,435 | 4,615,110 |
Long Term [Member] | ' | ' |
Note D - Income Taxes (Details) - Significant Components of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Accrued expenses and reserves | 3,369 | 7,444 |
Goodwill | -626,018 | -549,608 |
Net operating loss carry forwards and credits | 1,531,315 | 2,096,581 |
Stock based compensation | 57,573 | 66,722 |
Valuation allowance | -797,680 | -881,079 |
Net long-term deferred tax asset | 156,622 | 810,573 |
Intangibles | -30,028 | -15,779 |
Property and equipment depreciation | $18,091 | $86,292 |
Note_D_Income_Taxes_Details_Re
Note D - Income Taxes (Details) - Reconciliation of the Federal Statutory Income Tax Rate | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of the Federal Statutory Income Tax Rate [Abstract] | ' | ' | ' |
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes | 1.00% | 1.00% | 1.00% |
Permanent differences | 2.00% | 2.00% | 4.00% |
Change in valuation allowance | -1.00% | ' | -115.00% |
Expiration of state NOLbs | 1.00% | ' | ' |
Tax rate | 37.00% | 37.00% | -76.00% |
Note_D_Income_Taxes_Details_In
Note D - Income Taxes (Details) - Income Tax Expense (Benefit) Components (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Current: | ' | ' | ' |
Federal | $115,049 | $180,706 | $87,193 |
State | 46,303 | 58,421 | 25,439 |
161,352 | 239,127 | 112,632 | |
Deferred: | ' | ' | ' |
Federal | 2,903,110 | 2,455,015 | -3,088,076 |
State | 116,516 | 109,030 | -348,855 |
3,019,626 | 2,564,045 | -3,436,931 | |
Income tax expense (benefit) | $3,180,978 | $2,803,172 | ($3,324,299) |
Note_E_Concentrations_Details
Note E - Concentrations (Details) (Accounts Receivable [Member], Customer Concentration Risk [Member]) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Customer C [Member] | Customer A [Member] | |
Note E - Concentrations (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.00% | 57.00% |
Note_E_Concentrations_Details_
Note E - Concentrations (Details) - Major Customers (Sales [Member], Customer Concentration Risk [Member]) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customer A [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Customer | 21.00% | 23.00% | ' |
Customer B [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Customer | 19.00% | 19.00% | 22.00% |
Note_F_Employee_Benefit_Plan_D
Note F - Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note F - Employee Benefit Plan (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | $379,630 | $290,652 | $283,600 |
First Three Percents Of Compensation [Member] | ' | ' | ' |
Note F - Employee Benefit Plan (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 100.00% | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | 3.00% | 3.00% |
Second Two Percent Of Compensation [Member] | ' | ' | ' |
Note F - Employee Benefit Plan (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 50.00% | 50.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | 2.00% | 2.00% |