Clearfield (CLFD) 10-Q 1 May 19 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2019	Apr. 19, 2019
Document Information [Line Items]
Entity Registrant Name	Clearfield, Inc.
Entity Central Index Key	0000796505
Trading Symbol	clfd
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		13,663,981
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Current Assets
Cash and cash equivalents	$ 7,905,627	$ 8,547,777
Short-term investments	17,048,473	8,930,225
Accounts receivables, net	8,987,992	12,821,258
Inventories, net	8,273,522	10,050,135
Other current assets	1,253,635	742,136
Total current assets	43,469,249	41,091,531
Property, plant and equipment, net	4,412,001	4,744,584
Other Assets
Long-term investments	18,574,000	17,974,000
Goodwill	4,708,511	4,708,511
Intangible assets, net	5,302,721	5,482,555
Other	202,516	227,461
Total other assets	28,787,748	28,392,527
Total Assets	76,668,998	74,228,642
Current Liabilities
Accounts payable	2,352,411	2,363,380
Accrued compensation	2,419,704	2,048,904
Accrued expenses	39,195	568,507
Total current liabilities	4,811,310	4,980,791
Other Liabilities
Deferred taxes	104,935	104,935
Deferred rent	258,497	268,040
Total other liabilities	363,432	372,975
Total Liabilities	5,174,742	5,353,766
Shareholders’ Equity
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding
Common stock, authorized 50,000,000, $.01 par value; 13,668,408 and 13,646,553, shares issued and outstanding at March 31, 2019 and September 30, 2018	136,684	136,466
Additional paid-in capital	56,725,019	55,483,759
Retained earnings	14,632,553	13,254,651
Total Shareholders’ Equity	71,494,256	68,874,876
Total Liabilities and Shareholders’ Equity	$ 76,668,998	$ 74,228,642

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2019	Sep. 30, 2018
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	13,668,408	13,646,553
Common stock, shares outstanding (in shares)	13,668,408	13,646,553

Condensed Statements of Earning

Condensed Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net sales	$ 19,084,365	$ 16,830,895	$ 39,173,515	$ 33,697,779
Cost of sales	12,059,122	10,051,061	24,201,574	19,809,538
Gross profit	7,025,243	6,779,834	14,971,941	13,888,241
Operating expenses
Selling, general and administrative	6,727,744	7,305,589	13,503,619	13,769,560
Income (loss) from operations	297,499	(525,755)	1,468,322	118,681
Interest income	169,443	119,379	304,580	215,101
Income (loss) before income taxes	466,942	(406,376)	1,772,902	333,782
Income tax expense (benefit)	99,000	(101,000)	395,000	(304,000)
Net income (loss)	$ 367,942	$ (305,376)	$ 1,377,902	$ 637,782
Net income (loss) per share Basic (in dollars per share)	$ 0.02	$ (0.02)	$ 0.10	$ 0.05
Net income (loss) per share Diluted (in dollars per share)	$ 0.02	$ (0.02)	$ 0.10	$ 0.05
Weighted average shares outstanding:
Basic (in shares)	13,422,222	13,450,482	13,411,183	13,447,178
Diluted (in shares)	13,450,212	13,450,482	13,425,178	13,494,433

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Sep. 30, 2017	13,812,821
Balance at Sep. 30, 2017	$ 138,128	$ 55,406,888	$ 8,980,104	$ 64,525,120
Balance (in shares) at Dec. 31, 2017	13,824,191
Balance at Dec. 31, 2017	$ 138,242	56,021,457	9,923,262	66,082,961
Balance (in shares) at Sep. 30, 2017	13,812,821
Balance at Sep. 30, 2017	$ 138,128	55,406,888	8,980,104	64,525,120
Stock-based compensation expense		969,081		969,081
Restricted stock issuance, net (in shares)	(1,409)
Restricted stock issuance, net	$ (14)	14
Issuance of common stock under employee stock purchase plan (in shares)	14,242
Issuance of common stock under employee stock purchase plan	$ 142	148,117		148,259
Exercise of stock options, net of shares exchanged for payment (in shares)	5,675
Exercise of stock options, net of shares exchanged for payment	$ 58	17,891		17,949
Tax withholding related to vesting of restricted stock grants (in shares)	(671)
Tax withholding related to vesting of restricted stock grants	$ (7)	(9,255)		(9,262)
Net income			637,782	637,782
Repurchase of common stock (in shares)	(19,582)
Repurchase of common stock	$ (196)	(235,828)		(236,024)
Balance (in shares) at Mar. 31, 2018	13,811,076
Balance at Mar. 31, 2018	$ 138,111	56,296,908	9,617,886	66,052,905
Balance (in shares) at Dec. 31, 2017	13,824,191
Balance at Dec. 31, 2017	$ 138,242	56,021,457	9,923,262	66,082,961
Stock-based compensation expense		485,794		485,794
Restricted stock issuance, net (in shares)	2,967
Restricted stock issuance, net	$ 30	(30)
Exercise of stock options, net of shares exchanged for payment (in shares)	2,600
Exercise of stock options, net of shares exchanged for payment	$ 26	14,674		14,700
Net income			(305,376)	(305,376)
Repurchase of common stock (in shares)	(18,682)
Repurchase of common stock	$ (187)	(224,987)		(225,174)
Balance (in shares) at Mar. 31, 2018	13,811,076
Balance at Mar. 31, 2018	$ 138,111	56,296,908	9,617,886	66,052,905
Balance (in shares) at Sep. 30, 2018	13,646,553
Balance at Sep. 30, 2018	$ 136,466	55,483,759	13,254,651	68,874,876
Balance (in shares) at Dec. 31, 2018	13,662,456
Balance at Dec. 31, 2018	$ 136,625	56,161,405	14,264,611	70,562,641
Balance (in shares) at Sep. 30, 2018	13,646,553
Balance at Sep. 30, 2018	$ 136,466	55,483,759	13,254,651	68,874,876
Stock-based compensation expense		1,102,190		1,102,190
Restricted stock issuance, net (in shares)	(352)
Restricted stock issuance, net	$ (4)	4
Issuance of common stock under employee stock purchase plan (in shares)	17,312
Issuance of common stock under employee stock purchase plan	$ 173	145,767		145,940
Exercise of stock options, net of shares exchanged for payment (in shares)	5,440
Exercise of stock options, net of shares exchanged for payment	$ 54	(30)		24
Tax withholding related to vesting of restricted stock grants (in shares)	(545)
Tax withholding related to vesting of restricted stock grants	$ (5)	(6,671)		(6,676)
Net income			1,377,902	1,377,902
Balance (in shares) at Mar. 31, 2019	13,668,408
Balance at Mar. 31, 2019	$ 136,684	56,725,019	14,632,553	71,494,256
Balance (in shares) at Dec. 31, 2018	13,662,456
Balance at Dec. 31, 2018	$ 136,625	56,161,405	14,264,611	70,562,641
Stock-based compensation expense		563,666		563,666
Restricted stock issuance, net (in shares)	3,486
Restricted stock issuance, net	$ 35	(35)
Exercise of stock options, net of shares exchanged for payment (in shares)	2,466
Exercise of stock options, net of shares exchanged for payment	$ 24	(17)		7
Net income			367,942	367,942
Balance (in shares) at Mar. 31, 2019	13,668,408
Balance at Mar. 31, 2019	$ 136,684	$ 56,725,019	$ 14,632,553	$ 71,494,256

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net income	$ 1,377,902	$ 637,782
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,064,024	989,912
Change in allowance for doubtful accounts	210,000
Amortization of discount on investments	(15,855)
Deferred taxes		(384,000)
Loss on disposal of assets		1,594
Stock based compensation	1,102,190	969,081
Changes in operating assets and liabilities:
Accounts receivable	3,623,266	78,265
Inventories, net	1,776,613	354,984
Other assets	(486,554)	(71,117)
Accounts payable, accrued expenses and deferred rent	(179,024)	(313,921)
Net cash provided by operating activities	8,472,562	2,262,580
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(551,607)	(516,341)
Purchases of investments	(12,274,393)	(4,181,075)
Proceeds from maturities of investments	3,572,000	3,469,000
Business acquisition		(10,350,000)
Net cash used in investing activities	(9,254,000)	(11,578,416)
Cash flows from financing activities
Repurchases of common stock		(236,024)
Proceeds from issuance of common stock under employee stock purchase plan	145,940	148,259
Proceeds from issuance of common stock upon exercise of stock options	24	17,949
Tax withholding related to vesting of restricted stock grants	(6,676)	(9,262)
Net cash provided by (used in) financing activities	139,288	(79,078)
Decrease in cash and cash equivalents	(642,150)	(9,394,914)
Cash and cash equivalents, beginning of period	8,547,777	18,536,111
Cash and cash equivalents, end of period	7,905,627	9,141,197
Supplemental disclosures for cash flow information
Cash paid during the year for income taxes	1,051,716	23,987
Non-cash financing activities
Cashless exercise of stock options	$ 17,390	$ 5,782

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 1. The accompanying (a) condensed balance sheet as of September 30, 2018, three six March 31, 2019 not These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10 September 30, 2018. In preparation of the Company’s financial statements, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and related revenues and expenses during the reporting periods. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Recently Adopted Accounting Pronouncements Effective October 1, 2018, 2014 09, Revenue from Contracts with Customers (Topic 606 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 one 2014 09 605, Revenue Recognition, 2014 09, no 5,

Note 2 - Net Income (Loss) Per

Note 2 - Net Income (Loss) Per Share	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 2. Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income (loss) divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock awards, when dilutive. The following is a reconciliation of the numerator and denominator of the net income (loss) per common share computations for the three six March 31, 2019 2018: Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net income (loss) $ 367,942 $ (305,376 ) $ 1,377,902 $ 637,782 Weighted average common shares 13,422,222 13,450,482 13,411,183 13,447,178 Dilutive potential common shares 27,990 - 13,995 47,255 Weighted average dilutive common shares outstanding 13,450,212 13,450,482 13,425,178 13,494,433 Net income (loss) per common share: Basic $ 0.02 $ (0.02 ) $ 0.10 $ 0.05 Diluted $ 0.02 $ (0.02 ) $ 0.10 $ 0.05

Note 3 - Cash, Cash Equivalents

Note 3 - Cash, Cash Equivalents and Investments	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	Note 3. The Company currently invests its excess cash in money market accounts, treasury securities, and bank certificates of deposit (CDs) with a term of not five three one one The maturity dates of the Company’s treasury securities and CDs as of March 31, 2019 September 30, 2018 March 31, 2019 September 30, 2018 Less than one year $ 17,048,473 $ 8,930,225 1-5 years 18,574,000 17,974,000 Total $ 35,622,473 $ 26,904,225

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 4. The Company recorded $563,666 $1,102,190 three six March 31, 2019, three March 31, 2019, $532,425 $31,241 six March 31, 2019, $1,039,709 $62,481 $485,794 $969,081 three six March 31, 2018, three March 31, 2018, $443,763 $42,031 six March 31, 2018, $885,020 $84,061 March 31, 2019, $2,965,292 5.4 Stock Options The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of stock options granted. During the six March 31, 2019, 172,000 four three $12.17. no six March 31, 2018. six March 31, 2019 $3.53. This fair value was estimated at the grant date using the assumptions listed below: Six months ended Dividend yield 0 % Weighted average expected volatility 37.77 % Weighted average risk-free interest rate 2.92 % Weighted average expected life (years) 3.0 Vesting period (years) 3.0 The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate at grant date on zero Options are granted at fair market values determined on the date of grant and vesting normally occurs over a three five one six six The following is a summary of stock option activity during the six March 31, 2019: Number of Weighted average exercise price Outstanding as of September 30, 2018 138,500 $ 10.99 Granted 172,000 12.17 Exercised (6,750 ) 2.58 Cancelled or Forfeited - - Outstanding as of March 31, 2019 303,750 $ 11.85 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of March 31, 2019, 1.4 $287,850. six March 31, 2019, $24 six March 31, 2018, 6,100 $17,949 Restricted Stock The Company’s 2007 one ten During the six March 31, 2019, 2019 4,340 one $14.40 During the six March 31, 2018, 2018 4,235 one $14.75 Restricted stock transactions during the six March 31, 2019 Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2018 248,613 $ 14.65 Granted 4,340 14.40 Vested (5,935 ) 14.43 Forfeited (4,692 ) 15.05 Unvested as of March 31, 2019 242,326 $ 14.64 Employee Stock Purchase Plan The Company’s ESPP allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees may may no 85% one six January 1 July 1 December 31, 2018 December 31, 2017, 17,312 14,242 $8.43 $10.41 December 31, 2018, 69,769

Note 5 - Revenue

Note 5 - Revenue	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	Note 5. Revenue Recognition Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. Revenue which has been recognized but not Disaggregation of Revenue The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to countries in the Caribbean, Canada, Central and South America. Our revenues related to the following geographic areas were as follows for the three six Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 United States $ 17,136,328 $ 16,065,902 $ 35,640,795 $ 31,563,562 All other countries 1,948,037 764,993 3,532,720 2,134,217 Total Net Sales $ 19,084,365 $ 16,830,895 $ 39,173,515 $ 33,697,779 In addition to a proprietary product line designed for the broadband service provider marketplace, Clearfield provides build-to-print services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification. The percentages of our sales by markets were as follows for the three six Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Broadband service providers 94 % 95 % 94 % 95 % Build-to-print customers 6 % 5 % 6 % 5 % Total Net Sales 100 % 100 % 100 % 100 % Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not March 31, 2019 September 30, 2018, $289,085 $79,085, See Note 7,

Note 6 - Inventories, Net

Note 6 - Inventories, Net	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 6. Inventories consist of the following as of: March 31, 2019 September 30, 2018 Raw materials $ 5,755,357 $ 6,013,166 Work-in-progress 712,003 560,988 Finished goods 1,806,162 3,475,981 Inventories, net $ 8,273,522 $ 10,050,135

Note 7 - Major Customer Concent

Note 7 - Major Customer Concentration	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 7. For the three March 31, 2019, 17% 10%, six March 31, 2019, 18% 11%, three March 31, 2018, 25% 16%, six March 31, 2018, 24% 14%, As of March 31, 2019, 13% September 30, 2018, 35%, 10%, 10%,

Note 8 - Goodwill and Patents

Note 8 - Goodwill and Patents	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	Note 8. The Company analyzes its goodwill for impairment annually or at an interim period when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed in the fourth September 30, 2018 not six March 31, 2019, no 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 20 March 31, 2019, 17

Note 9 - Income Taxes

Note 9 - Income Taxes	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. For the three six March 31, 2019, $99,000 $395,000, 21.2% 22.3%, 2017 December 22, 2017. January 1, 2018 As of March 31, 2019 September 30, 2018, $105,000 not $32,000 six March 31, 2018. no three six March 31, 2019. For the three six March 31, 2018, $101,000 $304,000, 24.9% 91.1%, six March 31, 2018 three 2018. six one $384,000 six March 31, 2018 six March 31, 2018. expenses related to equity award compensation, Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company’s realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax assets for expected utilization using a “more likely than not” As of March 31, 2019 not not 12

Note 10 - Accounting Pronouncem

Note 10 - Accounting Pronouncements	6 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 10. In February 2016, 2016 02, Leases 12 December 15, 2018, The Company has begun evaluating the new lease standard, including the review and implementation of the necessary changes to our existing processes and systems that will be required to implement this new standard. While we are unable to quantify the impact at this time, it is expected the adoption of this standard will lead to a material increase in the assets and liabilities recorded on the consolidated balance sheets. In January 2017, 2017 04 2 January 1, 2020, January 1, 2017. not

Note 2 - Net Income (Loss) Pe_2

Note 2 - Net Income (Loss) Per Share (Tables)	6 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net income (loss) $ 367,942 $ (305,376 ) $ 1,377,902 $ 637,782 Weighted average common shares 13,422,222 13,450,482 13,411,183 13,447,178 Dilutive potential common shares 27,990 - 13,995 47,255 Weighted average dilutive common shares outstanding 13,450,212 13,450,482 13,425,178 13,494,433 Net income (loss) per common share: Basic $ 0.02 $ (0.02 ) $ 0.10 $ 0.05 Diluted $ 0.02 $ (0.02 ) $ 0.10 $ 0.05

Note 3 - Cash, Cash Equivalen_2

Note 3 - Cash, Cash Equivalents and Investments (Tables)	6 Months Ended
	Mar. 31, 2019
Notes Tables
Investments Classified by Contractual Maturity Date [Table Text Block]	March 31, 2019 September 30, 2018 Less than one year $ 17,048,473 $ 8,930,225 1-5 years 18,574,000 17,974,000 Total $ 35,622,473 $ 26,904,225

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	6 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Six months ended Dividend yield 0 % Weighted average expected volatility 37.77 % Weighted average risk-free interest rate 2.92 % Weighted average expected life (years) 3.0 Vesting period (years) 3.0
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of Weighted average exercise price Outstanding as of September 30, 2018 138,500 $ 10.99 Granted 172,000 12.17 Exercised (6,750 ) 2.58 Cancelled or Forfeited - - Outstanding as of March 31, 2019 303,750 $ 11.85
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]	Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2018 248,613 $ 14.65 Granted 4,340 14.40 Vested (5,935 ) 14.43 Forfeited (4,692 ) 15.05 Unvested as of March 31, 2019 242,326 $ 14.64

Note 5 - Revenue (Tables)

Note 5 - Revenue (Tables)	6 Months Ended
	Mar. 31, 2019
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 United States $ 17,136,328 $ 16,065,902 $ 35,640,795 $ 31,563,562 All other countries 1,948,037 764,993 3,532,720 2,134,217 Total Net Sales $ 19,084,365 $ 16,830,895 $ 39,173,515 $ 33,697,779 Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Broadband service providers 94 % 95 % 94 % 95 % Build-to-print customers 6 % 5 % 6 % 5 % Total Net Sales 100 % 100 % 100 % 100 %

Note 6 - Inventories, Net (Tabl

Note 6 - Inventories, Net (Tables)	6 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, 2019 September 30, 2018 Raw materials $ 5,755,357 $ 6,013,166 Work-in-progress 712,003 560,988 Finished goods 1,806,162 3,475,981 Inventories, net $ 8,273,522 $ 10,050,135

Note 2 - Net Income (Loss) Pe_3

Note 2 - Net Income (Loss) Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net income	$ 367,942	$ (305,376)	$ 1,377,902	$ 637,782
Weighted average common shares (in shares)	13,422,222	13,450,482	13,411,183	13,447,178
Dilutive potential common shares (in shares)	27,990		13,995	47,255
Weighted average dilutive common shares outstanding (in shares)	13,450,212	13,450,482	13,425,178	13,494,433
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.02	$ (0.02)	$ 0.10	$ 0.05
Diluted (in dollars per share)	$ 0.02	$ (0.02)	$ 0.10	$ 0.05

Note 3 - Cash, Cash Equivalen_3

Note 3 - Cash, Cash Equivalents and Investments (Details Textual)	6 Months Ended
	Mar. 31, 2019
Maximum [Member]
Held-to-maturity Securities, Investment Term	5 years

Note 3 - Cash, Cash Equivalen_4

Note 3 - Cash, Cash Equivalents and Investments - Maturity Date of CDs (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Less than one year	$ 17,048,473	$ 8,930,225
1-5 years	18,574,000	17,974,000
Total	$ 35,622,473	$ 26,904,225

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended				6 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018
Share-based Payment Arrangement, Expense	$ 563,666		$ 485,794		$ 1,102,190	$ 969,081
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	2,965,292				$ 2,965,292
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition					5 years 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					172,000	0
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price					$ 12.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 3.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term					1 year 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	287,850				$ 287,850
Proceeds from Stock Options Exercised					$ 24	$ 17,949
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					6,750	6,100
Employee Stock Purchase Plan [Member]
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		17,312		14,242
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price		$ 8.43		$ 10.41
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		69,769
Share-based Payment Arrangement, Option [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					6 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Share-based Payment Arrangement, Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Payment Arrangement, Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					4,340
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 14.40
Restricted Stock [Member] | Non Employee Directors [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					4,340	4,235
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 14.40	$ 14.75
Restricted Stock [Member] | Minimum [Member] | Employees [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Restricted Stock [Member] | Maximum [Member] | Employees [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					10 years
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expense	532,425		443,763		$ 1,039,709	$ 885,020
Cost of Sales [Member]
Share-based Payment Arrangement, Expense	$ 31,241		$ 42,031		$ 62,481	$ 84,061

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Valuation Assumptions (Details)	6 Months Ended
	Mar. 31, 2019
Dividend yield	0.00%
Weighted average expected volatility	37.77%
Weighted average risk-free interest rate	2.92%
Weighted average expected life (years) (Year)	3 years
Vesting period (years) (Year)	3 years

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Options, outstanding (in shares)	138,500
Weighted-average exercise price, outstanding (in dollars per share)	$ 10.99
Granted (in shares)	172,000	0
Weighted-average exercise price, Granted (in dollars per share)	$ 12.17
Exercised (in shares)	(6,750)	(6,100)
Weighted-average exercise price, Exercised (in dollars per share)	$ 2.58
Cancelled or Forfeited (in shares)
Weighted-average exercise price, Cancelled or Forfeited (in dollars per share)
Options, outstanding (in shares)	303,750
Weighted-average exercise price, outstanding (in dollars per share)	$ 11.85

Note 4 - Stock-based Compensa_6

Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2019$ / sharesshares
Balance, unvested shares (in shares) | shares	248,613
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 14.65
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares	4,340
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 14.40
Vested (in shares) | shares	(5,935)
Vested (in dollars per share) | $ / shares	$ 14.43
Forfeited (in shares) | shares	(4,692)
Forfeited (in dollars per share) | $ / shares	$ 15.05
Balance, unvested shares (in shares) | shares	242,326
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 14.64

Note 5 - Revenue (Details Textu

Note 5 - Revenue (Details Textual) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Accounts Receivable, Allowance for Credit Loss, Current	$ 289,085	$ 79,085

Note 5 - Revenue - Disaggregati

Note 5 - Revenue - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Total Net Sales	$ 19,084,365	$ 16,830,895	$ 39,173,515	$ 33,697,779
Percent of net sales	100.00%	100.00%	100.00%	100.00%
Broadband Service Providers [Member]
Percent of net sales	94.00%	95.00%	94.00%	95.00%
Build-to-print Customers [Member]
Percent of net sales	6.00%	5.00%	6.00%	5.00%
UNITED STATES
Total Net Sales	$ 17,136,328	$ 16,065,902	$ 35,640,795	$ 31,563,562
Non-US [Member]
Total Net Sales	$ 1,948,037	$ 764,993	$ 3,532,720	$ 2,134,217

Note 6 - Inventories, Net - Com

Note 6 - Inventories, Net - Components of Inventory (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Raw materials	$ 5,755,357	$ 6,013,166
Work-in-progress	712,003	560,988
Finished goods	1,806,162	3,475,981
Inventories, net	$ 8,273,522	$ 10,050,135

Note 7 - Major Customer Conce_2

Note 7 - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Revenue Benchmark [Member] | Customer A [Member]
Concentration Risk, Percentage	17.00%	25.00%	18.00%	24.00%
Revenue Benchmark [Member] | Customer B [Member]
Concentration Risk, Percentage	10.00%	16.00%		14.00%
Revenue Benchmark [Member] | Customer C [Member]
Concentration Risk, Percentage			11.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk, Percentage					10.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk, Percentage			13.00%		10.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk, Percentage					35.00%

Note 8 - Goodwill and Patents (

Note 8 - Goodwill and Patents (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2018USD ($)	Mar. 31, 2019USD ($)
Goodwill, Impairment Loss	$ 0	$ 0
Number of Patents Granted		17
Patents [Member]
Finite-Lived Intangible Asset, Useful Life		20 years

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Income Tax Expense (Benefit), Total	$ 99,000	$ (101,000)	$ 395,000	$ (304,000)
Effective Income Tax Rate Reconciliation, Percent, Total	21.20%	(24.90%)	22.30%	(91.10%)
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability				$ (384,000)
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Valuation Allowance, Total	$ 105,000		$ 105,000		$ 105,000
State and Local Jurisdiction [Member] | Deferred Tax Assets Related to Operating Loss Carryforwards [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount				$ 32,000