Clearfield (CLFD) 10-Q 1 May 20 2020 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2020	Apr. 14, 2020
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 Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		13,627,639
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common stock, par value $.01

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Current Assets
Cash and cash equivalents	$ 8,575,556	$ 10,081,721
Short-term investments	14,708,841	13,524,270
Accounts receivables, net	8,069,531	9,118,639
Inventories, net	11,688,103	9,012,980
Other current assets	687,881	769,161
Total current assets	43,729,912	42,506,771
Property, plant and equipment, net	5,563,814	5,413,241
Other Assets
Long-term investments	25,130,000	23,902,000
Goodwill	4,708,511	4,708,511
Intangible assets, net	4,968,938	5,147,135
Right of use lease asset	2,911,577
Other	194,174	210,905
Total other assets	37,913,200	33,968,551
Total Assets	87,206,926	81,888,563
Current Liabilities
Current portion of lease liability	714,008
Accounts payable	3,873,534	3,173,599
Accrued compensation	3,472,731	3,224,860
Accrued expenses	327,363	208,603
Total current liabilities	8,387,636	6,607,062
Other Liabilities
Long-term portion of lease liability	2,468,858
Deferred taxes	101,690	101,690
Deferred rent		246,424
Total other liabilities	2,570,548	348,114
Total liabilities	10,958,184	6,955,176
Shareholders’ Equity
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding
Common stock, authorized 50,000,000, $.01 par value; 13,627,639 and 13,641,805 shares issued and outstanding as of March 31, 2020 and September 30, 2019	136,276	136,418
Additional paid-in capital	57,042,604	56,976,162
Retained earnings	19,069,862	17,820,807
Total shareholders’ equity	76,248,742	74,933,387
Total Liabilities and Shareholders’ Equity	$ 87,206,926	$ 81,888,563

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2020	Sep. 30, 2019
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)	13,627,639	13,641,805
Common stock, shares outstanding (in shares)	13,627,639	13,641,805

Condensed Statements of Earning

Condensed Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Net sales	$ 20,408,509	$ 19,084,365	$ 39,786,500	$ 39,173,515
Cost of sales	12,257,076	12,059,122	23,907,532	24,201,574
Gross profit	8,151,433	7,025,243	15,878,968	14,971,941
Operating expenses
Selling, general and administrative	7,431,261	6,727,744	14,757,881	13,503,619
Income from operations	720,172	297,499	1,121,087	1,468,322
Interest income	217,725	169,443	440,968	304,580
Income before income taxes	937,897	466,942	1,562,055	1,772,902
Income tax expense	190,000	99,000	313,000	395,000
Net income	$ 747,897	$ 367,942	$ 1,249,055	$ 1,377,902
Net income per share Basic (in dollars per share)	$ 0.05	$ 0.02	$ 0.09	$ 0.10
Net income per share Diluted (in dollars per share)	$ 0.05	$ 0.02	$ 0.09	$ 0.10
Weighted average shares outstanding:
Basic (in shares)	13,521,172	13,422,222	13,516,608	13,411,183
Diluted (in shares)	13,521,172	13,450,212	13,571,674	13,425,178

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, 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
Net income			1,377,902	1,377,902
Restricted stock issuance, net (in shares)	(352)
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
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
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)
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)
Net income			367,942	367,942
Restricted stock issuance, net (in shares)	3,486
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
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 Sep. 30, 2019	13,641,805
Balance at Sep. 30, 2019	$ 136,418	56,976,162	17,820,807	74,933,387
Repurchase of common stock (in shares)	(41,796)
Repurchase of common stock	$ (418)	(428,236)		(428,654)
Stock-based compensation expense		328,523		328,523
Restricted stock issuance, net (in shares)	9,580
Restricted stock issuance, net	$ 96	(96)
Exercise of stock options (in shares)				4,000
Net income			1,249,055	$ 1,249,055
Restricted stock issuance, net (in shares)	(9,580)
Exercise of stock options, net of shares exchanged for payment (in shares)	3,396
Exercise of stock options, net of shares exchanged for payment	$ 33	2,549		2,582
Issuance of common stock under employee stock purchase plan (in shares)	15,107
Issuance of common stock under employee stock purchase plan	$ 151	169,501		169,652
Tax withholding related to vesting of restricted stock grants (in shares)	(453)
Tax withholding related to vesting of restricted stock grants	$ (4)	(5,799)		(5,803)
Balance (in shares) at Mar. 31, 2020	13,627,639
Balance at Mar. 31, 2020	$ 136,276	57,042,604	19,069,862	76,248,742
Balance (in shares) at Dec. 31, 2019	13,657,459
Balance at Dec. 31, 2019	$ 136,575	57,383,020	18,321,965	75,841,560
Repurchase of common stock (in shares)	(41,796)
Repurchase of common stock	$ (418)	(428,236)		(428,654)
Stock-based compensation expense		87,937		87,937
Restricted stock issuance, net (in shares)	9,580
Restricted stock issuance, net	$ 96	(96)
Exercise of stock options (in shares)	2,396
Exercise of stock options	$ 23	(21)		2
Net income			747,897	747,897
Restricted stock issuance, net (in shares)	(9,580)
Balance (in shares) at Mar. 31, 2020	13,627,639
Balance at Mar. 31, 2020	$ 136,276	$ 57,042,604	$ 19,069,862	$ 76,248,742

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income	$ 1,249,055	$ 1,377,902
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	1,210,961	1,064,024
Change in allowance for doubtful accounts		210,000
Amortization of discount on investments	(55,641)	(15,855)
Stock-based compensation	328,523	1,102,190
Changes in operating assets and liabilities:
Accounts receivable, net	1,049,108	3,623,266
Inventories, net	(2,675,123)	1,776,613
Other assets	98,010	(486,554)
Accounts payable, accrued expenses and deferred rent	1,091,431	(179,024)
Net cash provided by operating activities	2,296,324	8,472,562
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(1,183,336)	(551,607)
Purchases of investments	(19,076,930)	(12,274,393)
Proceeds from maturities of investments	16,720,000	3,572,000
Net cash used in investing activities	(3,540,266)	(9,254,000)
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan	169,652	145,940
Proceeds from issuance of common stock upon exercise of stock options	2,582	24
Tax withholding related to vesting of restricted stock grants	(5,803)	(6,676)
Repurchase of common stock	(428,654)
Net cash (used in) provided by financing activities	(262,223)	139,288
Decrease in cash and cash equivalents	(1,506,165)	(642,150)
Cash and cash equivalents, beginning of period	10,081,721	8,547,777
Cash and cash equivalents, end of period	8,575,556	7,905,627
Supplemental disclosures for cash flow information
Cash paid during the year for income taxes	355,657	1,051,716
Non-cash financing activities
Cashless exercise of stock options	$ 7,737	$ 17,390

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 1. The accompanying (a) condensed balance sheet as of September 30, 2019, three six March 31, 2020 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, 2019. 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, 2019 2016 02, Leases July 2018, 2018 11, Leases, Targeted Improvements not 12 not $2.4 $2.6 not

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 2. Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income 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, when dilutive. The following is a reconciliation of the numerator and denominator of the net income per common share computations for the three six March 31, 2020 2019: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net income $ 747,897 $ 367,942 $ 1,249,055 $ 1,377,902 Weighted average common shares 13,521,172 13,422,222 13,516,608 13,411,183 Dilutive potential common shares - 27,990 55,066 13,995 Weighted average dilutive common shares outstanding 13,521,172 13,450,212 13,571,674 13,425,178 Net income per common share: Basic $ 0.05 $ 0.02 $ 0.09 $ 0.10 Diluted $ 0.05 $ 0.02 $ 0.09 $ 0.10

Note 3 - Cash, Cash Equivalents

Note 3 - Cash, Cash Equivalents and Investments	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	Note 3. The Company currently invests its excess cash in bank certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) and Unites States Treasury (“Treasuries”) securities with terms of not five three The maturity dates of the Company’s investments as of March 31, 2020 September 30, 2019 March 31, 2020 September 30, 2019 Less than one year $ 14,708,841 $ 13,524,270 1-5 years 25,130,000 23,902,000 Total $ 39,838,841 $ 37,426,270

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 4. The Company recorded $87,937 $328,523 three six March 31, 2020, three March 31, 2020, $83,140 $4,797 six March 31, 2020, $318,928 $9,595 $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 March 31, 2020, $2,324,790 4.4 Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of options granted. During the six March 31, 2020, 116,600 5.78 4.78 $12.43. six March 31, 2019, 172,000 four three $12.17. This fair value of awards during the six March 31, 2020 Six months ended March 31, 2020 Dividend yield 0% Expected volatility 39.5 - 41.5% Risk-free interest rate 1.65 - 1.69% Expected life (years) 4 - 6 Vesting period (years) 3 - 5 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 as of the 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 The following is a summary of stock option activity during the six March 31, 2020: Number of Weighted average Outstanding as of September 30, 2019 290,750 $ 11.86 Granted 116,600 12.43 Exercised (4,000 ) 2.58 Cancelled or Forfeited (48,000 ) 13.35 Outstanding as of March 31, 2020 355,350 $ 11.95 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, 2020, 2.31 $102,150. six March 31, 2020, $2,582 six March 31, 2019, $24 Restricted Stock The Company’s 2007 one ten During the six March 31, 2020, 2020 5,830 one $10.72 8,625 2020 one $11.86 six March 31, 2020. During the six March 31, 2019, 2019 4,340 one $14.40 Restricted stock transactions during the six March 31, 2020 Number of Weighted average grant Unvested shares as of September 30, 2019 130,440 $ 13.25 Granted 19,455 11.30 Vested (5,740 ) 14.01 Forfeited (9,875 ) 12.03 Unvested as of March 31, 2020 134,280 $ 13.02 Employee Stock Purchase Plan Clearfield, Inc.’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, 2019 December 31, 2018, 15,107 17,312 $11.23 $8.43 February 2020, 200,000 March 31, 2020, 234,739

Note 5 - Revenue

Note 5 - Revenue	6 Months Ended
	Mar. 31, 2020
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. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. 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, 2020 2019 2020 2019 United States $ 19,489,270 $ 17,136,328 $ 37,731,957 $ 35,640,795 All other countries 919,239 1,948,037 2,054,543 3,532,720 Total Net Sales $ 20,408,509 $ 19,084,365 $ 39,786,500 $ 39,173,515 Clearfield manufactures and sells a proprietary product line designed for the Broadband Service Provider marketplace. In addition, the Company 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, 2020 2019 2020 2019 Broadband service providers 96 % 94 % 95 % 94 % Build-to-print customers 4 % 6 % 5 % 6 % Total Net Sales 100 % 100 % 100 % 100 % Broadband Service Providers are made up of Community Broadband, which includes local and regional telecom companies, utilities, municipalities and alternative carriers, also referred to as Tier 2 3 large national and global wireline and wireless providers also referred to as Tier 1’s Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not March 31, 2020 September 30, 2019, $289,085 See Note 7,

Note 6 - Inventories

Note 6 - Inventories	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 6. Inventories consist of the following as of: March 31, 2020 September 30, 2019 Raw materials $ 8,795,376 $ 7,115,298 Work-in-progress 942,023 540,962 Finished goods 1,950,704 1,356,720 Inventories, net $ 11,688,103 $ 9,012,980

Note 7 - Major Customer Concent

Note 7 - Major Customer Concentration	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 7. For the three March 31, 2020, 21% six March 31, 2020, 20%, 11% 10%, three March 31, 2019, 17% 10%, six March 31, 2019, 18% 11%, not As of March 31, 2020, three 12%, 10% 10%, 32% one one September 30, 2019, two 16%, 12%, 28%

Note 8 - Goodwill and Intangibl

Note 8 - Goodwill and Intangibles	6 Months Ended
	Mar. 31, 2020
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 as of September 30, 2019 not six March 31, 2020, 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, 2020, 22 In addition, the Company has various finite lived intangible assets, most of which were acquired as a result of the acquisition of the active cabinet product line from Calix, Inc. (“Calix”) during fiscal year 2018. September 30, 2019 not six March 31, 2020, no

Note 9 - Income Taxes

Note 9 - Income Taxes	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. For the three six March 31, 2020, $190,000 $313,000, 20.3% 20.0%, For the three six March 31, 2019, $99,000 $395,000, 21.2% 22.3%, 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 asset for expected utilization using a “more likely than not” As of March 31, 2020 September 30, 2019, $47,000 not no six March 31, 2020. As of March 31, 2020, not not 12

Note 10 - Leases

Note 10 - Leases	6 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	Note 10. Clearfield leases a 71,000 7050 ten two January 1, 2015. June 30, 2019, 14,000 $249,000, one eighth not not We also have an indirect lease arrangement for a 46,000 three August 1, 2017. not On February 12, 2020, 52,000 42 February 12, 2020. two three Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do not March 31, 2020, not not Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three six March 31, 2020. Operating lease expense under ASC842 , Leases, Three months ended Six months ended Cost of goods sold $ 218,874 $ 404,502 Selling, general and administrative 55,398 111,764 Total lease expense $ 274,272 $ 516,266 Future maturities of lease liabilities were as follows as of March 31, 2020: Operating 2020 (remainder of fiscal year) $ 440,312 2021 752,423 2022 772,803 2023 744,963 2024 516,725 Thereafter 217,552 Total lease payments 3,444,778 Less: Interest (261,912 ) Present value of lease liabilities $ 3,182,866 The weighted average term and weighted average discount rate for our leases as of March 31, 2020 4.78 3.48%, three six March 31, 2020, $168,815 $336,655, Rent expense for our operating leases as accounted for under ASC 840, Leases three six March 31, 2019. Operating lease expense under ASC840, Leases, Three months ended Six months ended Cost of goods sold $ 164,118 $ 332,946 Selling, general and administrative 53,838 107,376 Total lease expense $ 217,956 $ 440,322 As previously disclosed in Note B of the Notes to the Financial Statements in our 2019 10 2016 02, Leases (Topic 842 As of September 30, 2019 2020 $ 643,040 2021 479,213 2022 491,397 2023 503,895 2024 516,720 Thereafter 217,551 Total minimum lease payments $ 2,851,816

Note 2 - Net Income Per Share (

Note 2 - Net Income Per Share (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net income $ 747,897 $ 367,942 $ 1,249,055 $ 1,377,902 Weighted average common shares 13,521,172 13,422,222 13,516,608 13,411,183 Dilutive potential common shares - 27,990 55,066 13,995 Weighted average dilutive common shares outstanding 13,521,172 13,450,212 13,571,674 13,425,178 Net income per common share: Basic $ 0.05 $ 0.02 $ 0.09 $ 0.10 Diluted $ 0.05 $ 0.02 $ 0.09 $ 0.10

Note 3 - Cash, Cash Equivalen_2

Note 3 - Cash, Cash Equivalents and Investments (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Investments Classified by Contractual Maturity Date [Table Text Block]	March 31, 2020 September 30, 2019 Less than one year $ 14,708,841 $ 13,524,270 1-5 years 25,130,000 23,902,000 Total $ 39,838,841 $ 37,426,270

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Six months ended March 31, 2020 Dividend yield 0% Expected volatility 39.5 - 41.5% Risk-free interest rate 1.65 - 1.69% Expected life (years) 4 - 6 Vesting period (years) 3 - 5
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of Weighted average Outstanding as of September 30, 2019 290,750 $ 11.86 Granted 116,600 12.43 Exercised (4,000 ) 2.58 Cancelled or Forfeited (48,000 ) 13.35 Outstanding as of March 31, 2020 355,350 $ 11.95
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]	Number of Weighted average grant Unvested shares as of September 30, 2019 130,440 $ 13.25 Granted 19,455 11.30 Vested (5,740 ) 14.01 Forfeited (9,875 ) 12.03 Unvested as of March 31, 2020 134,280 $ 13.02

Note 5 - Revenue (Tables)

Note 5 - Revenue (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 United States $ 19,489,270 $ 17,136,328 $ 37,731,957 $ 35,640,795 All other countries 919,239 1,948,037 2,054,543 3,532,720 Total Net Sales $ 20,408,509 $ 19,084,365 $ 39,786,500 $ 39,173,515 Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Broadband service providers 96 % 94 % 95 % 94 % Build-to-print customers 4 % 6 % 5 % 6 % Total Net Sales 100 % 100 % 100 % 100 %

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, 2020 September 30, 2019 Raw materials $ 8,795,376 $ 7,115,298 Work-in-progress 942,023 540,962 Finished goods 1,950,704 1,356,720 Inventories, net $ 11,688,103 $ 9,012,980

Note 10 - Leases (Tables)

Note 10 - Leases (Tables)	6 Months Ended
	Mar. 31, 2020
Notes Tables
Lessee, Operating Lease Expense [Table Text Block]	Operating lease expense under ASC842 , Leases, Three months ended Six months ended Cost of goods sold $ 218,874 $ 404,502 Selling, general and administrative 55,398 111,764 Total lease expense $ 274,272 $ 516,266 Operating lease expense under ASC840, Leases, Three months ended Six months ended Cost of goods sold $ 164,118 $ 332,946 Selling, general and administrative 53,838 107,376 Total lease expense $ 217,956 $ 440,322
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Operating 2020 (remainder of fiscal year) $ 440,312 2021 752,423 2022 772,803 2023 744,963 2024 516,725 Thereafter 217,552 Total lease payments 3,444,778 Less: Interest (261,912 ) Present value of lease liabilities $ 3,182,866
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	As of September 30, 2019 2020 $ 643,040 2021 479,213 2022 491,397 2023 503,895 2024 516,720 Thereafter 217,551 Total minimum lease payments $ 2,851,816

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual) - USD ($)	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019
Operating Lease, Right-of-Use Asset	$ 2,911,577
Operating Lease, Liability, Total	$ 3,182,866
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		$ 2,400,000
Operating Lease, Liability, Total		$ 2,600,000

Note 2 - Net Income Per Share -

Note 2 - Net Income Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Net income	$ 747,897	$ 367,942	$ 1,249,055	$ 1,377,902
Weighted average common shares (in shares)	13,521,172	13,422,222	13,516,608	13,411,183
Dilutive potential common shares (in shares)		27,990	55,066	13,995
Weighted average dilutive common shares outstanding (in shares)	13,521,172	13,450,212	13,571,674	13,425,178
Basic (in dollars per share)	$ 0.05	$ 0.02	$ 0.09	$ 0.10
Diluted (in dollars per share)	$ 0.05	$ 0.02	$ 0.09	$ 0.10

Note 3 - Cash, Cash Equivalen_3

Note 3 - Cash, Cash Equivalents and Investments (Details Textual)	6 Months Ended
	Mar. 31, 2020
Maximum [Member]
Held-to-maturity Securities, Investment Term (Year)	5 years

Note 3 - Cash, Cash Equivalen_4

Note 3 - Cash, Cash Equivalents and Investments - Maturity Date of CDs (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Less than one year	$ 14,708,841	$ 13,524,270
1-5 years	25,130,000	23,902,000
Total	$ 39,838,841	$ 37,426,270

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Expense		$ 87,937	$ 563,666	$ 328,523		$ 1,102,190
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		2,324,790		$ 2,324,790
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)				4 years 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)				116,600		172,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)				5 years 284 days		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				4 years 284 days		3 years
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share)				$ 12.43		$ 12.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)				2 years 113 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		$ 102,150		$ 102,150
Proceeds from Stock Options Exercised				$ 2,582		$ 24
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 (in shares)					15,107		17,312
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price (in dollars per share)					$ 11.23		$ 8.43
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)		234,739		234,739
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				5 years
Share-based Payment Arrangement, Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				3 years
Share-based Payment Arrangement, Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)				19,455
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 11.30
Restricted Stock [Member] | Non-employee Directors [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				1 year		1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)				5,830		4,340
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share (in dollars per share)				$ 10.72
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 14.40
Restricted Stock [Member] | Minimum [Member] | Employees [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				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 (Year)				10 years
Performance Shares [Member] | Non-employee Directors [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)				8,625
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 11.86
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expense		$ 83,140	532,425	$ 318,928		$ 1,039,709
Cost of Sales [Member]
Share-based Payment Arrangement, Expense		$ 4,797	$ 31,241	$ 9,595		$ 62,481

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Valuation Assumptions (Details)	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Dividend yield	0.00%
Vesting period (years) (Year)	4 years 284 days	3 years
Minimum [Member]
Expected volatility	39.50%
Risk-free interest rate	1.65%
Expected life (years) (Year)	4 years
Vesting period (years) (Year)	3 years
Maximum [Member]
Expected volatility	41.50%
Risk-free interest rate	1.69%
Expected life (years) (Year)	6 years
Vesting period (years) (Year)	5 years

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Options, outstanding (in shares)	290,750
Weighted-average exercise price, outstanding (in dollars per share)	$ 11.86
Granted (in shares)	116,600	172,000
Weighted-average exercise price, Granted (in dollars per share)	$ 12.43	$ 12.17
Exercised (in shares)	(4,000)
Weighted-average exercise price, Exercised (in dollars per share)	$ 2.58
Cancelled or Forfeited (in shares)	(48,000)
Weighted-average exercise price, Cancelled or Forfeited (in dollars per share)	$ 13.35
Options, outstanding (in shares)	355,350
Weighted-average exercise price, outstanding (in dollars per share)	$ 11.95

Note 4 - Stock-based Compensa_6

Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2020$ / sharesshares
Balance, unvested shares (in shares) | shares	130,440
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 13.25
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares	19,455
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 11.30
Vested (in shares) | shares	(5,740)
Vested (in dollars per share) | $ / shares	$ 14.01
Forfeited (in shares) | shares	(9,875)
Forfeited (in dollars per share) | $ / shares	$ 12.03
Balance, unvested shares (in shares) | shares	134,280
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 13.02

Note 5 - Revenue (Details Textu

Note 5 - Revenue (Details Textual) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Accounts Receivable, Allowance for Credit Loss, Current	$ 289,085	$ 289,085

Note 5 - Revenue - Disaggregati

Note 5 - Revenue - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Total Net Sales	$ 20,408,509	$ 19,084,365	$ 39,786,500	$ 39,173,515
Percent of net sales	100.00%	100.00%	100.00%	100.00%
Broadband Service Providers [Member]
Percent of net sales	96.00%	94.00%	95.00%	94.00%
Build-to-print Customers [Member]
Percent of net sales	4.00%	6.00%	5.00%	6.00%
UNITED STATES
Total Net Sales	$ 19,489,270	$ 17,136,328	$ 37,731,957	$ 35,640,795
Non-US [Member]
Total Net Sales	$ 919,239	$ 1,948,037	$ 2,054,543	$ 3,532,720

Note 6 - Inventories - Componen

Note 6 - Inventories - Components of Inventory (Details) - USD ($)	Mar. 31, 2020	Sep. 30, 2019
Raw materials	$ 8,795,376	$ 7,115,298
Work-in-progress	942,023	540,962
Finished goods	1,950,704	1,356,720
Inventories, net	$ 11,688,103	$ 9,012,980

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, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Revenue Benchmark [Member] | Customer A [Member]
Concentration Risk, Percentage	21.00%	17.00%	20.00%
Revenue Benchmark [Member] | Customer B [Member]
Concentration Risk, Percentage		10.00%	11.00%
Revenue Benchmark [Member] | Customer C [Member]
Concentration Risk, Percentage			10.00%
Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk, Percentage				18.00%
Accounts Receivable [Member]
Number of Major Customers			3		2
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk, Percentage			12.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk, Percentage			10.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk, Percentage			10.00%
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage					16.00%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk, Percentage				11.00%	12.00%
Accounts Receivable [Member] | Three Customers [Member]
Concentration Risk, Percentage			32.00%
Accounts Receivable [Member] | Two Customers [Member]
Concentration Risk, Percentage					28.00%

Note 8 - Goodwill and Intangi_2

Note 8 - Goodwill and Intangibles (Details Textual) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)
Goodwill, Impairment Loss	$ 0	$ 0
Number of Patents Granted	22
Patents [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	20 years

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Income Tax Expense (Benefit), Total	$ 190,000	$ 99,000	$ 313,000	$ 395,000
Effective Income Tax Rate Reconciliation, Percent, Total	20.30%	21.20%	20.00%	22.30%
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Valuation Allowance, Total	$ 47,000		$ 47,000		$ 47,000

Note 10 - Leases (Details Textu

Note 10 - Leases (Details Textual)	Jun. 30, 2019ft²	Mar. 31, 2020USD ($)ft²	Mar. 31, 2020USD ($)ft²	Feb. 12, 2020ft²
Operating Lease, Weighted Average Discount Rate, Percent		3.48%	3.48%
Operating Lease, Payments | $		$ 168,815	$ 336,655
Weighted Average [Member]
Lessee, Operating Lease, Term of Contract (Year)		4 years 284 days	4 years 284 days
7050 Winnetka Avenue North, Brooklyn Park, Minnesota [Member]
Area of Real Estate Property (Square Foot)		71,000	71,000
Lessee, Operating Lease, Term of Contract (Year)		10 years 62 days	10 years 62 days
Additional area of rental space (Square Foot)	14,000
Operating Lease Termination Fee | $			$ 249,000
Tijuana, Mexico [Member]
Area of Real Estate Property (Square Foot)		46,000	46,000
Lessee, Operating Lease, Term of Contract (Year)		3 years	3 years
Tijuana, Mexico 2 [Member]
Area of Real Estate Property (Square Foot)				52,000
Lessee, Operating Lease, Term of Contract (Year)				3 years 180 days
Lessee, Operating Lease, Number of Options to Renew				2
Lessee, Operating Lease, Renewal Term (Year)				3 years

Note 10 - Leases - Operating Le

Note 10 - Leases - Operating Lease Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Total lease expense under ASC 842	$ 274,272		$ 516,266
Total lease expense under ASC 840		$ 217,956		$ 440,322
Cost of Sales [Member]
Total lease expense under ASC 842	218,874		404,502
Total lease expense under ASC 840		164,118		332,946
Selling, General and Administrative Expenses [Member]
Total lease expense under ASC 842	$ 55,398		$ 111,764
Total lease expense under ASC 840		$ 53,838		$ 107,376

Note 10 - Leases - Maturities o

Note 10 - Leases - Maturities of Lease Liabilities (Details)	Mar. 31, 2020USD ($)
2020 (remainder of fiscal year)	$ 440,312
2021	752,423
2022	772,803
2023	744,963
2024	516,725
Thereafter	217,552
Total lease payments	3,444,778
Less: Interest	(261,912)
Present value of lease liabilities	$ 3,182,866

Note 10 - Leases - Future Minim

Note 10 - Leases - Future Minimum Payments Prior Adoption of ASU 2016-02 (Details)	Sep. 30, 2019USD ($)
2020	$ 643,040
2021	479,213
2022	491,397
2023	503,895
2024	516,720
Thereafter	217,551
Total minimum lease payments	$ 2,851,816