Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 15, 2015 | Mar. 31, 2015 | |
Entity Registrant Name | Clearfield, Inc. | ||
Entity Central Index Key | 796,505 | ||
Trading Symbol | clfd | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,702,310 | ||
Entity Public Float | $ 167,018,584 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 18,071,210 | $ 18,191,493 |
Short-term investments | 7,925,000 | 6,632,000 |
Accounts receivable, net | 6,010,900 | 5,027,856 |
Inventories | 7,182,854 | 5,390,342 |
Deferred taxes | 1,146,899 | 2,249,435 |
Other current assets | 416,766 | 543,257 |
Total current assets | 40,753,629 | 38,034,383 |
Property, plant and equipment, net | 5,689,673 | 2,462,250 |
Other Assets | ||
Long-term investments | 8,290,000 | 8,302,000 |
Goodwill | $ 2,570,511 | 2,570,511 |
Deferred taxes | 156,622 | |
Other | $ 323,804 | 322,132 |
Total other assets | 11,184,315 | 11,351,265 |
Total Assets | 57,627,617 | 51,847,898 |
Current Liabilities | ||
Accounts payable | 2,357,791 | 2,104,526 |
Accrued compensation | 2,598,661 | 2,749,080 |
Accrued expenses | 80,803 | 247,658 |
Total current liabilities | 5,037,255 | $ 5,101,264 |
Other Liabilities | ||
Deferred taxes | 1,082,887 | |
Deferred rent | 228,345 | |
Total other liabilities | 1,311,232 | |
Total Liabilities | $ 6,348,487 | $ 5,101,264 |
Commitment and Contingencies | ||
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; 13,705,658 and 13,742,964 shares issued and outstanding at September 30, 2015 and 2014, respectively | 137,057 | 137,430 |
Additional paid-in capital | 55,887,850 | 56,036,989 |
Accumulated deficit | (4,745,777) | (9,427,785) |
Total shareholders’ equity | 51,279,130 | 46,746,634 |
Total Liabilities and Shareholders’ Equity | $ 57,627,617 | $ 51,847,898 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 500 | 500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 13,705,658 | 13,742,964 |
Common stock, shares outstanding (in shares) | 13,705,658 | 13,742,964 |
Statements of Earnings
Statements of Earnings - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 60,323,917 | $ 58,045,292 | $ 53,353,080 |
Cost of sales | 35,455,964 | 33,446,526 | 31,363,502 |
Gross profit | 24,867,953 | 24,598,766 | 21,989,578 |
Operating expenses | |||
Selling, general and administrative | 17,816,598 | 16,080,640 | 14,544,843 |
Income from operations | 7,051,355 | 8,518,126 | 7,444,735 |
Interest income | 105,891 | 95,703 | 92,281 |
Income before income taxes | 7,157,246 | 8,613,829 | 7,537,016 |
Income tax expense | 2,475,238 | 3,180,978 | 2,803,172 |
Net income | $ 4,682,008 | $ 5,432,851 | $ 4,733,844 |
Net income per share Basic (in dollars per share) | $ 0.35 | $ 0.42 | $ 0.38 |
Net income per share Diluted (in dollars per share) | $ 0.34 | $ 0.40 | $ 0.36 |
Basic (in shares) | 13,216,010 | 12,916,273 | 12,527,153 |
Diluted (in shares) | 13,587,532 | 13,601,594 | 13,078,939 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Sep. 30, 2012 | 12,830,100 | |||
Balance at Sep. 30, 2012 | $ 128,301 | $ 54,152,080 | $ (19,594,480) | $ 34,685,901 |
Stock-based compensation expense | 753,727 | 753,727 | ||
Restricted stock issuance, net (in shares) | 4,090 | |||
Restricted stock issuance, net | $ 41 | 25 | 66 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 35,597 | |||
Employee stock purchase plan | $ 356 | 135,625 | 135,981 | |
Exercise of stock options, net of shares exchanged for payment (in shares) | 139,455 | |||
Exercise of stock options, net of shares exchanged for payment | $ 1,394 | 62,606 | 64,000 | |
Tax withholding related to vesting of restricted stock grants and exercise of stock options (in shares) | (34,979) | |||
Tax withholding related to vesting of restricted stock grants and exercise of stock options | $ (349) | (297,639) | (297,988) | |
Excess tax benefit of stock options exercised | $ 2,505 | 2,505 | ||
Net income | $ 4,733,844 | 4,733,844 | ||
Balance (in shares) at Sep. 30, 2013 | 12,974,263 | |||
Balance at Sep. 30, 2013 | $ 129,743 | $ 54,808,929 | $ (14,860,636) | 40,078,036 |
Restricted stock forfeiture, net (in shares) | 4,090 | |||
Stock-based compensation expense | 794,865 | $ 794,865 | ||
Restricted stock issuance, net (in shares) | 305,615 | |||
Restricted stock issuance, net | $ 3,056 | (3,056) | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 17,589 | |||
Employee stock purchase plan | $ 176 | 185,408 | $ 185,584 | |
Exercise of stock options, net of shares exchanged for payment (in shares) | 471,603 | |||
Exercise of stock options, net of shares exchanged for payment | $ 4,716 | 641,737 | 646,453 | |
Tax withholding related to vesting of restricted stock grants and exercise of stock options (in shares) | (26,106) | |||
Tax withholding related to vesting of restricted stock grants and exercise of stock options | $ (261) | (399,368) | (399,629) | |
Excess tax benefit of stock options exercised | $ 8,474 | 8,474 | ||
Net income | $ 5,432,851 | 5,432,851 | ||
Balance (in shares) at Sep. 30, 2014 | 13,742,964 | |||
Balance at Sep. 30, 2014 | $ 137,430 | $ 56,036,989 | $ (9,427,785) | 46,746,634 |
Restricted stock forfeiture, net (in shares) | 305,615 | |||
Stock-based compensation expense | 1,074,727 | $ 1,074,727 | ||
Restricted stock issuance, net (in shares) | (7,900) | |||
Restricted stock issuance, net | $ (79) | 79 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 20,216 | |||
Employee stock purchase plan | $ 202 | 211,257 | $ 211,459 | |
Exercise of stock options, net of shares exchanged for payment (in shares) | 60,011 | |||
Exercise of stock options, net of shares exchanged for payment | $ 600 | 42,506 | 43,106 | |
Tax withholding related to vesting of restricted stock grants and exercise of stock options (in shares) | (37,544) | |||
Tax withholding related to vesting of restricted stock grants and exercise of stock options | $ (375) | (638,932) | (639,307) | |
Excess tax benefit of stock options exercised | $ 9,660 | 9,660 | ||
Net income | $ 4,682,008 | 4,682,008 | ||
Balance (in shares) at Sep. 30, 2015 | 13,705,658 | |||
Balance at Sep. 30, 2015 | $ 137,057 | $ 55,887,850 | $ (4,745,777) | 51,279,130 |
Repurchase of common stock (in shares) | (72,089) | |||
Repurchase of common stock | $ (721) | $ (848,436) | $ (849,157) | |
Restricted stock forfeiture, net (in shares) | (7,900) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 4,682,008 | $ 5,432,851 | $ 4,733,844 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 1,216,083 | 699,869 | 476,400 |
Deferred income taxes | 2,342,045 | 3,019,626 | 2,564,045 |
Loss on disposal of assets | 23,196 | 12,809 | 15,388 |
Stock-based compensation expense | 1,074,727 | 794,865 | 753,727 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (983,044) | 2,809,687 | (4,814,907) |
Inventories | (1,792,512) | 236,422 | (2,655,150) |
Other current assets | 121,381 | (243,339) | (15,157) |
Accounts payable and accrued expenses | 164,336 | (1,234,039) | 3,280,866 |
Net cash provided by operating activities | 6,848,220 | 11,528,751 | 4,339,056 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (4,518,782) | (1,418,461) | (1,018,453) |
Purchase of investments | (10,374,000) | (8,899,000) | (8,683,000) |
Proceeds from sale of property and equipment | 79,936 | 40,908 | 6,500 |
Patent additions | (24,418) | (36,544) | (18,853) |
Sale of investments | 9,093,000 | 6,727,000 | 9,600,000 |
Net cash used in investing activities | (5,744,264) | $ (3,586,097) | $ (113,806) |
Cash flows from financing activities: | |||
Repurchase of common stock | (849,157) | ||
Proceeds from issuance of common stock under employee stock purchase plan | 211,459 | $ 185,584 | $ 135,981 |
Proceeds from issuance of common stock | 43,106 | 646,453 | 64,066 |
Excess tax benefit from exercise of stock options | 9,660 | 8,474 | 2,505 |
Tax withholding related to vesting of restricted stock grants and exercise of stock options | (639,307) | (399,629) | (297,988) |
Net cash (used in) provided by financing activities | (1,224,239) | 440,882 | (95,436) |
(Decrease) increase in cash and cash equivalents | (120,283) | 8,383,536 | 4,129,814 |
Cash and cash equivalents at beginning of year | 18,191,493 | 9,807,957 | 5,678,143 |
Cash and cash equivalents at end of year | 18,071,210 | 18,191,493 | 9,807,957 |
Supplemental cash flow information | |||
Cash paid during the year for income taxes | 50,850 | 361,284 | 153,644 |
Non-cash financing activities | |||
Cashless exercise of stock options | $ 207,738 | $ 297,883 | $ 242,848 |
Note A - Summary of Significant
Note A - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business: Revenue Recognition: Cash and Cash Equivalents: 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: September 30, September 30, Less than one year $ 7,925,000 $ 6,632,000 1-3 years 8,290,000 8,302,000 Total $ 16,215,000 $ 14,934,000 Accounts Receivable: The allowance for doubtful accounts activity for the years ended September 30, 2015, 2014 and 2013 is as follows: Year Ended Balance at Additions Less Balance September 30, 2015 $ 97,950 $ - $ (18,477 ) $ 79,473 September 30, 2014 97,950 - - 97,950 September 30, 2013 97,950 - - 97,950 Fair Value of Financial Instruments: Inventories: September 30, September 30, Raw materials $ 4,811,993 $ 3,729,160 Work-in-process 310,149 292,557 Finished goods 2,060,712 1,368,625 $ 7,182,854 $ 5,390,342 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: 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, Manufacturing Equipment $ 4,102,868 $ 3,057,665 Office Equipment 2,655,088 1,985,409 Leasehold Improvements 2,414,133 320,218 Vehicles 193,702 192,321 9,365,791 5,555,613 Less accumulated depreciation 3,676,118 3,093,363 $ 5,689,673 $ 2,462,250 Depreciation expense for the years ended September 30, 2015, 2014 and 2013 were $1,214,512, $699,306 and $475,524, respectively. Goodwill and Patents: 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, 2015, 2014 or 2013, 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 20 years. As of September 30, 2015, the Company has five patents granted and five pending applications inside the United States. Impairment of Long-Lived Assets: 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, 2015, 2014 and 2013. Income Taxes: 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, 2015, 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 benefits over the next 12 months. Stock-Based Compensation 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: Year ended September 30, 2015 2014 2013 Net income $ 4,682,008 $ 5,432,851 $ 4,733,844 Weighted average common shares 13,216,010 12,916,273 12,527,153 Dilutive potential common shares 371,522 685,321 551,786 Weighted average dilutive common shares outstanding 13,587,532 13,601,594 13,078,939 Earnings per share: Basic $ 0.35 $ 0.42 $ 0.38 Diluted $ 0.34 $ 0.40 $ 0.36 There were no potentially dilutive shares excluded from the calculation above for the years ended September 30, 2015, 2014 and 2013. Use of Estimates: Recently Issued Accounting Pronouncements: 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 after December 15, 2017, and interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory |
Note B - Commitments and Facili
Note B - Commitments and Facilities | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | NOTE B – COMMITMENTS AND FACILITIES Operating Leases: As of September 30, 2015, the future minimum lease payments required under operating lease agreements are as follows: Year ending September 30 Operating leases 2016 $ 433,189 2017 364,300 2018 373,409 2019 382,746 2020 392,318 Thereafter 1,852,117 Total minimum lease payments $ 3,798,079 Share Repurchase: |
Note C - Shareholders' Equity
Note C - Shareholders' Equity | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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: Stock Options: 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 354,114 shares available for issue as of September 30, 2015. As of September 30, 2015, $4,232,496 of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a period of approximately 9.1 years. The number of options vested during the year ended September 30, 2015 was 59,090 with a total grant date fair value of $373,271 and a weighted average grant date fair value of $6.32. The Company recorded related compensation expense for the years ended September 30, 2015, 2014, and 2013 of $1,074,727, $794,865, and $753,727, respectively. For the year ended September 30, 2015, there were 56,767 stock options that were exercised using a cashless method of exercise. The intrinsic value of options exercised during the years ended September 30, 2015 and 2014 was $876,841 and $7,522,553, respectively. The intrinsic value of options exercisable as of September 30, 2015 is $2,420,521. Option transactions under these plans during the years ended September 30, 2015 and 2014 are summarized as follows: Number of Weighted average exercise price Weighted 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 Granted - - - Cancelled or Forfeited (2,500 ) 6.36 Exercised (73,167 ) 3.43 Outstanding at September 30, 2015 297,384 $ 5.29 The following table summarizes information concerning options exercisable under the equity compensation plans: Year ended Exercisable Weighted average Weighted average September 30, 2015 297,384 1.57 $ 5.29 September 30, 2014 313,851 2.63 $ 4.67 The following table summarizes information concerning options currently outstanding at: Year Ended Number Weighted Weighted Aggregate September 30, 2015 297,384 1.57 $ 5.29 $ 2,420,521 September 30, 2014 373,051 2.52 $ 4.93 $ 2,908,849 Restricted Stock: Restricted stock transactions during the years ended September 30, 2015 and 2014 are summarized as follows: Number of Weighted average Unvested shares at September 30, 2013 292,290 $ 5.11 Granted 307,615 13.39 Vested (79,390 ) 5.15 Forfeited (2,000 ) 5.10 Unvested shares at September 30, 2014 518,515 10.02 Granted 7,300 13.69 Vested (101,485 ) 17.07 Forfeited (15,200 ) 10.80 Unvested shares at September 30, 2015 409,130 $ 9.97 The Company repurchased a total of 33,896 shares of our common stock at an average price of $16.89 in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended September 30, 2015. 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. Employee Stock Purchase Plan: |
Note D - Income Taxes
Note D - Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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. As of September 30, 2014, the Company’s remaining valuation allowance of approximately $848,000 related to state net operating loss carry forwards. During the fourth quarter of 2015, the Company reversed a portion of its remaining valuation allowance primarily related to the expiration of state net operating losses in 2015. The remaining valuation allowance balance as of September 30, 2015 of $659,000 relates entirely to state net operating loss carry forwards we do not expect to utilize. Approximately $35,000 of the valuation allowance is short-term and $624,000 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. The valuation allowance activity for the years ended September 30, 2015, 2014 and 2013 is as follows: Year Ended Balance at Income Tax Reversal Balance at September 30, 2015 $ 847,826 $ (53,836 ) $ (135,182 ) $ 658,808 September 30, 2014 975,258 - (127,432 ) 847,826 September 30, 2013 975,258 - - 975,258 Significant components of deferred income tax assets and liabilities are as follows at: September 30, September 30, Current deferred income tax assets (liabilities): Inventories $ 309,791 $ 292,675 Accrued expenses and reserves 261,452 297,336 Prepaid expenses (42,304 ) (42,722 ) Net operating loss carry forwards and credits 652,533 1,752,291 1,181,472 2,299,580 Valuation allowance (34,573 ) (50,145 ) Net current deferred tax asset $ 1,146,899 $ 2,249,435 Long-term deferred income tax assets (liabilities): Intangibles $ (39,819 ) $ (30,028 ) Property and equipment depreciation (726,035 ) 18,091 Net operating loss carry forwards and credits 938,168 1,531,315 Stock-based compensation 49,926 57,573 Accrued expenses and reserves 25,887 3,369 Goodwill (706,779 ) (626,018 ) (458,652 ) 954,302 Valuation allowance (624,235 ) (797,680 ) Net long-term deferred tax (liability) asset $ (1,082,887 ) $ 156,622 As of September 30, 2015 and 2014, the current income tax receivable was approximately $48,000 and $127,000, respectively. As of September 30, 2015, t he Company had U.S. federal net operating loss (“NOL”) carry forwards of approximately $5.4 million. The U.S. federal net operating loss carry forwards will expire in 2023 through 2028 if not utilized. he Company had state net operating loss carry forwards of approximately $13.8 million. The state net operating loss carry forwards will expire in 2016 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, 2015. Our federal NOL carry forwards referenced above at September 30, 2015 include approximately $5.3 million of income tax deductions in excess of previously recorded tax benefits for equity based awards. 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 2015, these tax benefits are not reflected in the Company’s deferred tax assets presented above. The tax benefit of approximately $1,869,000 as of September 30, 2015 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, Federal statutory rate 34 % 34 % 34 % State income taxes 1 % 1 % 1 % Permanent differences 1 % 2 % 2 % Change in valuation allowance (3 %) (1 %) - Expiration of state NOL’s 2 % 1 % - Tax rate 35 % 37 % 37 % Components of the income tax expense are as follows for the years ended: September 30, September 30, September 30, Current: Federal $ 67,373 $ 115,049 $ 180,706 State 65,820 46,303 58,421 133,193 161,352 239,127 Deferred: Federal 2,377,590 2,903,110 2,455,015 State (35,545 ) 116,516 109,030 2,342,045 3,019,626 2,564,045 Income tax expense $ 2,475,238 $ 3,180,978 $ 2,803,172 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 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 2000. 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 end in 2007 from March 31 to September 30. |
Note E - Major Customer Concent
Note E - Major Customer Concentration | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE E – CONCENTRATIONS Suppliers: Customers: The following table summarizes customers comprising 10% or more of net sales for the years ended September 30, 2015, 2014, and 2013: Year Ended September 30, 2015 2014 2013 Customer A 25 % 19 % 19 % Customer B * 21 % 23 % * Less than 10% As of September 30, 2015, Customers C and A accounted for 17% and 14% of accounts receivable, respectively. As of September 30, 2014, Customer C accounted for 10% of accounts receivable. |
Note F - Employee Benefit Plan
Note F - Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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 and 2013 and through December 31, 2014, 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. Effective January 1, 2015, the Company matched 100% of the first 3% and 50% of the next 3% of the participant’s eligible compensation that was contributed by the participant. The Company’s contributions under this plan were $460,868, $379,630 and $290,652 for the years ended September 30, 2015, 2014 and 2013, respectively . |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: 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: September 30, September 30, Less than one year $ 7,925,000 $ 6,632,000 1-3 years 8,290,000 8,302,000 Total $ 16,215,000 $ 14,934,000 |
Receivables, Policy [Policy Text Block] | Accounts Receivable: The allowance for doubtful accounts activity for the years ended September 30, 2015, 2014 and 2013 is as follows: Year Ended Balance at Additions Less Balance September 30, 2015 $ 97,950 $ - $ (18,477 ) $ 79,473 September 30, 2014 97,950 - - 97,950 September 30, 2013 97,950 - - 97,950 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments: |
Inventory, Policy [Policy Text Block] | Inventories: September 30, September 30, Raw materials $ 4,811,993 $ 3,729,160 Work-in-process 310,149 292,557 Finished goods 2,060,712 1,368,625 $ 7,182,854 $ 5,390,342 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: 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, Manufacturing Equipment $ 4,102,868 $ 3,057,665 Office Equipment 2,655,088 1,985,409 Leasehold Improvements 2,414,133 320,218 Vehicles 193,702 192,321 9,365,791 5,555,613 Less accumulated depreciation 3,676,118 3,093,363 $ 5,689,673 $ 2,462,250 Depreciation expense for the years ended September 30, 2015, 2014 and 2013 were $1,214,512, $699,306 and $475,524, respectively. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Patents: 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, 2015, 2014 or 2013, 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 20 years. As of September 30, 2015, the Company has five patents granted and five pending applications inside the United States. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets: 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, 2015, 2014 and 2013. |
Income Tax, Policy [Policy Text Block] | Income Taxes: 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, 2015, 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 benefits over the next 12 months. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation 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: Year ended September 30, 2015 2014 2013 Net income $ 4,682,008 $ 5,432,851 $ 4,733,844 Weighted average common shares 13,216,010 12,916,273 12,527,153 Dilutive potential common shares 371,522 685,321 551,786 Weighted average dilutive common shares outstanding 13,587,532 13,601,594 13,078,939 Earnings per share: Basic $ 0.35 $ 0.42 $ 0.38 Diluted $ 0.34 $ 0.40 $ 0.36 There were no potentially dilutive shares excluded from the calculation above for the years ended September 30, 2015, 2014 and 2013. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements: 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 after December 15, 2017, and interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company will further study the implications of this statement in order to evaluate the expected impact on its financial statements. In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory |
Note A - Summary of Significa14
Note A - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Useful Lives [Member] | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Years Equipment 3 - 7 Leasehold improvements 7 - 10 or life of lease Vehicles 3 |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 30, September 30, Less than one year $ 7,925,000 $ 6,632,000 1-3 years 8,290,000 8,302,000 Total $ 16,215,000 $ 14,934,000 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Year Ended Balance at Additions Less Balance September 30, 2015 $ 97,950 $ - $ (18,477 ) $ 79,473 September 30, 2014 97,950 - - 97,950 September 30, 2013 97,950 - - 97,950 |
Schedule of Inventory, Current [Table Text Block] | September 30, September 30, Raw materials $ 4,811,993 $ 3,729,160 Work-in-process 310,149 292,557 Finished goods 2,060,712 1,368,625 $ 7,182,854 $ 5,390,342 |
Property, Plant and Equipment [Table Text Block] | September 30, September 30, Manufacturing Equipment $ 4,102,868 $ 3,057,665 Office Equipment 2,655,088 1,985,409 Leasehold Improvements 2,414,133 320,218 Vehicles 193,702 192,321 9,365,791 5,555,613 Less accumulated depreciation 3,676,118 3,093,363 $ 5,689,673 $ 2,462,250 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended September 30, 2015 2014 2013 Net income $ 4,682,008 $ 5,432,851 $ 4,733,844 Weighted average common shares 13,216,010 12,916,273 12,527,153 Dilutive potential common shares 371,522 685,321 551,786 Weighted average dilutive common shares outstanding 13,587,532 13,601,594 13,078,939 Earnings per share: Basic $ 0.35 $ 0.42 $ 0.38 Diluted $ 0.34 $ 0.40 $ 0.36 |
Note B - Commitments and Faci15
Note B - Commitments and Facilities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Year ending September 30 Operating leases 2016 $ 433,189 2017 364,300 2018 373,409 2019 382,746 2020 392,318 Thereafter 1,852,117 Total minimum lease payments $ 3,798,079 |
Note C - Shareholders' Equity (
Note C - Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Weighted average exercise price Weighted 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 Granted - - - Cancelled or Forfeited (2,500 ) 6.36 Exercised (73,167 ) 3.43 Outstanding at September 30, 2015 297,384 $ 5.29 |
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 September 30, 2015 297,384 1.57 $ 5.29 September 30, 2014 313,851 2.63 $ 4.67 |
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 September 30, 2015 297,384 1.57 $ 5.29 $ 2,420,521 September 30, 2014 373,051 2.52 $ 4.93 $ 2,908,849 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Weighted average Unvested shares at September 30, 2013 292,290 $ 5.11 Granted 307,615 13.39 Vested (79,390 ) 5.15 Forfeited (2,000 ) 5.10 Unvested shares at September 30, 2014 518,515 10.02 Granted 7,300 13.69 Vested (101,485 ) 17.07 Forfeited (15,200 ) 10.80 Unvested shares at September 30, 2015 409,130 $ 9.97 |
Note D - Income Taxes (Tables)
Note D - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Year Ended Balance at Income Tax Reversal Balance at September 30, 2015 $ 847,826 $ (53,836 ) $ (135,182 ) $ 658,808 September 30, 2014 975,258 - (127,432 ) 847,826 September 30, 2013 975,258 - - 975,258 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | September 30, September 30, Current deferred income tax assets (liabilities): Inventories $ 309,791 $ 292,675 Accrued expenses and reserves 261,452 297,336 Prepaid expenses (42,304 ) (42,722 ) Net operating loss carry forwards and credits 652,533 1,752,291 1,181,472 2,299,580 Valuation allowance (34,573 ) (50,145 ) Net current deferred tax asset $ 1,146,899 $ 2,249,435 Long-term deferred income tax assets (liabilities): Intangibles $ (39,819 ) $ (30,028 ) Property and equipment depreciation (726,035 ) 18,091 Net operating loss carry forwards and credits 938,168 1,531,315 Stock-based compensation 49,926 57,573 Accrued expenses and reserves 25,887 3,369 Goodwill (706,779 ) (626,018 ) (458,652 ) 954,302 Valuation allowance (624,235 ) (797,680 ) Net long-term deferred tax (liability) asset $ (1,082,887 ) $ 156,622 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | September 30, September 30, September 30, Federal statutory rate 34 % 34 % 34 % State income taxes 1 % 1 % 1 % Permanent differences 1 % 2 % 2 % Change in valuation allowance (3 %) (1 %) - Expiration of state NOL’s 2 % 1 % - Tax rate 35 % 37 % 37 % |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | September 30, September 30, September 30, Current: Federal $ 67,373 $ 115,049 $ 180,706 State 65,820 46,303 58,421 133,193 161,352 239,127 Deferred: Federal 2,377,590 2,903,110 2,455,015 State (35,545 ) 116,516 109,030 2,342,045 3,019,626 2,564,045 Income tax expense $ 2,475,238 $ 3,180,978 $ 2,803,172 |
Note E - Major Customer Conce18
Note E - Major Customer Concentration (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Year Ended September 30, 2015 2014 2013 Customer A 25 % 19 % 19 % Customer B * 21 % 23 % |
Note A - Summary of Significa19
Note A - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($)shares | Sep. 30, 2013USD ($)shares | |
Maximum [Member] | Patents [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 0 | 0 | 0 |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits | 0 | 0 | 0 |
Depreciation | $ 1,214,512 | $ 699,306 | $ 475,524 |
Number of Reportable Segments | 1 | ||
Number of Patents Granted | 5 | ||
Number of Patents Pending | 5 |
Note A - Maturity Date of CDs (
Note A - Maturity Date of CDs (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Less than one year | $ 7,925,000 | $ 6,632,000 |
1-3 years | 8,290,000 | 8,302,000 |
Total | $ 16,215,000 | $ 14,934,000 |
Note A - Allowance for Doubtful
Note A - Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Balance at Beginning of Year | $ 97,950 | $ 97,950 | $ 97,950 |
Additions Charged to Costs and Expenses | |||
Less Write-offs | $ (18,477) | ||
Balance at End of Year | $ 79,473 | $ 97,950 | $ 97,950 |
Note A - Components of Inventor
Note A - Components of Inventory (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Raw materials | $ 4,811,993 | $ 3,729,160 |
Work-in-process | 310,149 | 292,557 |
Finished goods | 2,060,712 | 1,368,625 |
Total | $ 7,182,854 | $ 5,390,342 |
Note A - Estimated Useful Lives
Note A - Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Equipment [Member] | Minimum [Member] | |
Property, plant and equipment useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, plant and equipment useful life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, plant and equipment useful life | 7 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, plant and equipment useful life | 10 years |
Vehicles [Member] | |
Property, plant and equipment useful life | 3 years |
Note A - Property, Plant and Eq
Note A - Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Machinery and Equipment [Member] | ||
Fixed Assets | $ 4,102,868 | $ 3,057,665 |
Office Equipment [Member] | ||
Fixed Assets | 2,655,088 | 1,985,409 |
Leasehold Improvements [Member] | ||
Fixed Assets | 2,414,133 | 320,218 |
Vehicles [Member] | ||
Fixed Assets | 193,702 | 192,321 |
Fixed Assets | 9,365,791 | 5,555,613 |
Less accumulated depreciation | 3,676,118 | 3,093,363 |
Net | $ 5,689,673 | $ 2,462,250 |
Note A - Weighted Average Commo
Note A - Weighted Average Common Shares Outstanding (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income | $ 4,682,008 | $ 5,432,851 | $ 4,733,844 |
Weighted average common shares (in shares) | 13,216,010 | 12,916,273 | 12,527,153 |
Dilutive potential common shares | $ 371,522 | $ 685,321 | $ 551,786 |
Weighted average dilutive common shares outstanding (in shares) | 13,587,532 | 13,601,594 | 13,078,939 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.35 | $ 0.42 | $ 0.38 |
Diluted (in dollars per share) | $ 0.34 | $ 0.40 | $ 0.36 |
Note B - Commitments and Faci26
Note B - Commitments and Facilities (Details Textual) - USD ($) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 13, 2014 | |
Operating Leases, Rent Expense | $ 630,000 | $ 505,000 | $ 450,000 | |
Stock Repurchase Program, Authorized Amount | $ 8,000,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 7,151,000 |
Note B - Future Minimum Lease P
Note B - Future Minimum Lease Payments (Details) | Sep. 30, 2015USD ($) |
2,016 | $ 433,189 |
2,017 | 364,300 |
2,018 | 373,409 |
2,019 | 382,746 |
2,020 | 392,318 |
Thereafter | 1,852,117 |
Total minimum lease payments | $ 3,798,079 |
Note C - Shareholders' Equity28
Note C - Shareholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2010 | |
Minimum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Minimum [Member] | Restricted Stock [Member] | Non Employee Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||||
Maximum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||
Maximum [Member] | Restricted Stock [Member] | Non Employee Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||||||
Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years | |||||||||
Employee Stock Option [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||||
Cashless Method Stock Option Exercised [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 56,767 | |||||||||
Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years | |||||||||
Employee Stock Purchase Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 165,440 | 165,440 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Market Price Percentage, Offering Date | 85.00% | |||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 10,119 | 10,097 | 6,669 | 10,920 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price | $ 14.27 | $ 8.28 | $ 10.46 | |||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 62,358 | |||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |||||||
Preferred Stock, Shares Authorized | 500 | 500 | 500 | |||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Temporary Equity, Shares Subscribed but Unissued | 67,500 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 208 days | 2 years 229 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 354,114 | 354,114 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4,232,496 | $ 4,232,496 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 9 years 36 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 59,090 | 59,090 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 373,271 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 6.32 | $ 6.32 | ||||||||
Allocated Share-based Compensation Expense | $ 1,074,727 | $ 794,865 | $ 753,727 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 73,167 | 488,018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 876,841 | $ 7,522,553 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 2,420,521 | $ 2,420,521 | ||||||||
Stock Repurchased During Period, Shares | 33,896 | 16,560 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 16.89 | $ 13.61 | ||||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 639,307 | $ 399,629 | $ 297,988 |
Note C - Option Transaction Sum
Note C - Option Transaction Summary (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Outstanding (in shares) | 373,051 | 863,519 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 4.93 | $ 3.24 |
Cancelled or Forfeited (in shares) | (2,500) | (2,450) |
Weighted Average Exercise Price, Cancelled or Forfeited (in dollars per share) | $ 6.36 | $ 4.43 |
Exercised (in shares) | (73,167) | (488,018) |
Weighted Average Exercise Price, Exercised (in dollars per share) | $ 3.43 | $ 1.94 |
Outstanding (in shares) | 297,384 | 373,051 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 5.29 | $ 4.93 |
Note C - Options Exercisable (D
Note C - Options Exercisable (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
September 30, 2015 (in shares) | 297,384 | 313,851 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 208 days | 2 years 229 days |
September 30, 2015 (in dollars per share) | $ 5.29 | $ 4.67 |
Note C - Options Currently Outs
Note C - Options Currently Outstanding (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
September 30, 2015 (in shares) | 297,384 | 373,051 |
September 30, 2015 | 1 year 208 days | 2 years 189 days |
September 30, 2015 (in dollars per share) | $ 5.29 | $ 4.93 |
September 30, 2015 | $ 2,420,521 | $ 2,908,849 |
Note C - Restricted Stock Trans
Note C - Restricted Stock Transactions (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Unvested shares at September 30, 2013 (in shares) | 518,515 | 292,290 |
Unvested shares at September 30, 2013 (in dollars per share) | $ 10.02 | $ 5.11 |
Granted (in shares) | 7,300 | 307,615 |
Granted (in dollars per share) | $ 13.69 | $ 13.39 |
Vested (in shares) | (101,485) | (79,390) |
Vested (in dollars per share) | $ 17.07 | $ 5.15 |
Forfeited (in shares) | (15,200) | (2,000) |
Forfeited (in dollars per share) | $ 10.80 | $ 5.10 |
Unvested shares at September 30, 2014 (in shares) | 409,130 | 518,515 |
Unvested shares at September 30, 2014 (in dollars per share) | $ 9.97 | $ 10.02 |
Note D - Income Taxes (Details
Note D - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
State and Local Jurisdiction [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ||||
Deferred Tax Assets, Valuation Allowance | $ 659,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards, Valuation Allowance | 848,000 | |||
Operating Loss Carryforwards | $ 13,800,000 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards | 5,400,000 | |||
Equity Compensation [Member] | ||||
Operating Loss Carryforwards | 5,300,000 | |||
Unrecognized Tax Benefits | 0 | 0 | $ 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | 0 | |
Deferred Tax Assets, Valuation Allowance | 658,808 | 847,826 | $ 975,258 | $ 975,258 |
Deferred Tax Assets, Valuation Allowance, Current | 35,000 | |||
Deferred Tax Assets, Valuation Allowance, Noncurrent | 624,000 | |||
Income Taxes Receivable, Current | 48,000 | $ 127,000 | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 1,869,000 |
Note D - Valuation Allowance Ac
Note D - Valuation Allowance Activity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Balance at Beginning of Year | $ 847,826 | $ 975,258 | $ 975,258 |
Income Tax Benefit | (53,836) | ||
Reversal for State NOL Expiration | (135,182) | $ (127,432) | |
Balance at End of Year | $ 658,808 | $ 847,826 | $ 975,258 |
Note D - Significant Components
Note D - Significant Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Short Term [Member] | ||
Current deferred income tax assets (liabilities): | ||
Inventories | $ 309,791 | $ 292,675 |
Accrued expenses and reserves | 261,452 | 297,336 |
Prepaid expenses | (42,304) | (42,722) |
Net operating loss carry forwards and credits | 652,533 | 1,752,291 |
1,181,472 | 2,299,580 | |
Valuation allowance | (34,573) | (50,145) |
Net current deferred tax asset | 1,146,899 | 2,249,435 |
Long-term [Member] | ||
Current deferred income tax assets (liabilities): | ||
Accrued expenses and reserves | 25,887 | 3,369 |
Net operating loss carry forwards and credits | 938,168 | 1,531,315 |
(458,652) | 954,302 | |
Intangibles | (39,819) | (30,028) |
Property and equipment depreciation | (726,035) | 18,091 |
Stock-based compensation | 49,926 | 57,573 |
Goodwill | (706,779) | (626,018) |
Valuation allowance | (624,235) | (797,680) |
Net long-term deferred tax (liability) asset | (1,082,887) | 156,622 |
Valuation allowance | (35,000) | |
Net current deferred tax asset | $ 1,146,899 | 2,249,435 |
Valuation allowance | $ (624,000) |
Note D - Reconciliation of the
Note D - Reconciliation of the Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes | 1.00% | 1.00% | 1.00% |
Permanent differences | 1.00% | 2.00% | 2.00% |
Change in valuation allowance | (3.00%) | (1.00%) | |
Expiration of state NOL’s | 2.00% | 1.00% | |
Tax rate | 35.00% | 37.00% | 37.00% |
Note D - Income Tax Expense (Be
Note D - Income Tax Expense (Benefit) Components (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current: | |||
Federal | $ 67,373 | $ 115,049 | $ 180,706 |
State | 65,820 | 46,303 | 58,421 |
133,193 | 161,352 | 239,127 | |
Deferred: | |||
Federal | 2,377,590 | 2,903,110 | 2,455,015 |
State | (35,545) | 116,516 | 109,030 |
2,342,045 | 3,019,626 | 2,564,045 | |
Income tax expense | $ 2,475,238 | $ 3,180,978 | $ 2,803,172 |
Note E - Major Customer Conce38
Note E - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Customer C [Member] | ||
Concentration Risk, Percentage | 17.00% | 10.00% |
Customer A [Member] | ||
Concentration Risk, Percentage | 14.00% |
Note E - Major Customer Conce39
Note E - Major Customer Concentrations - Major Customers (Details) - Sales [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer A [Member] | |||
Concentration Risk, Percentage | 25.00% | 19.00% | 19.00% |
Customer B [Member] | |||
Concentration Risk, Percentage | 21.00% | 23.00% |
Note F - Employee Benefit Plan
Note F - Employee Benefit Plan (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
First Level of Matching [Member] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 100.00% | 100.00% | 100.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | 3.00% | 3.00% | 3.00% | |
Second Level Of Matching [Member] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 50.00% | 50.00% | 50.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | 3.00% | 2.00% | 2.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 290,652 | $ 379,630 | $ 460,868 |