Clearfield (CLFD) 10-Q 30 Jul 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Jul. 15, 2020
Document Information [Line Items]
Entity Central Index Key	0000796505
Entity Registrant Name	Clearfield, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	0-16106
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1347235
Entity Address, Address Line One	7050 Winnetka Avenue North, Suite 100
Entity Address, City or Town	Brooklyn Park
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55428
City Area Code	763
Local Phone Number	476-6866
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CLFD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,647,005

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current Assets
Cash and cash equivalents	$ 9,278,968	$ 10,081,721
Short-term investments	11,093,527	13,524,270
Accounts receivables, net	9,099,727	9,118,639
Inventories, net	14,881,952	9,012,980
Other current assets	602,700	769,161
Total current assets	44,956,874	42,506,771
Property, plant and equipment, net	5,354,082	5,413,241
Other Assets
Long-term investments	28,072,000	23,902,000
Goodwill	4,708,511	4,708,511
Intangible assets, net	4,875,117	5,147,135
Right of use lease asset	2,710,073	0
Other	186,571	210,905
Total other assets	40,552,272	33,968,551
Total Assets	90,863,228	81,888,563
Current Liabilities
Current portion of lease liability	672,384	0
Accounts payable	3,878,915	3,173,599
Accrued compensation	3,279,018	3,224,860
Accrued expenses	987,205	208,603
Total current liabilities	8,817,522	6,607,062
Other Liabilities
Long-term portion of lease liability	2,299,835	0
Deferred taxes	101,690	101,690
Deferred rent	0	246,424
Total other liabilities	2,401,525	348,114
Total liabilities	11,219,047	6,955,176
Shareholders’ Equity
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding	0	0
Common stock, authorized 50,000,000, $.01 par value; 13,647,005 and 13,641,805 shares issued and outstanding as of June 30, 2020 and September 30, 2019	136,470	136,418
Additional paid-in capital	57,443,281	56,976,162
Retained earnings	22,064,430	17,820,807
Total shareholders’ equity	79,644,181	74,933,387
Total Liabilities and Shareholders’ Equity	$ 90,863,228	$ 81,888,563

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 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)	13,647,005	13,641,805
Common stock, shares outstanding (in shares)	13,647,005	13,641,805

Condensed Statements of Earning

Condensed Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net sales	$ 25,970,045	$ 21,892,244	$ 65,756,545	$ 61,065,759
Cost of sales	15,179,875	13,479,617	39,087,407	37,681,191
Gross profit	10,790,170	8,412,627	26,669,138	23,384,568
Operating expenses
Selling, general and administrative	7,207,157	6,870,994	21,965,038	20,374,613
Income from operations	3,583,013	1,541,633	4,704,100	3,009,955
Interest income	174,555	212,894	615,523	517,474
Income before income taxes	3,757,568	1,754,527	5,319,623	3,527,429
Income tax expense	763,000	454,000	1,076,000	849,000
Net income	$ 2,994,568	$ 1,300,527	$ 4,243,623	$ 2,678,429
Net income per share Basic (in dollars per share)	$ 0.22	$ 0.10	$ 0.31	$ 0.20
Net income per share Diluted (in dollars per share)	$ 0.22	$ 0.10	$ 0.31	$ 0.20
Weighted average shares outstanding:
Basic (in shares)	13,497,955	13,446,289	13,510,413	13,422,885
Diluted (in shares)	13,497,955	13,451,671	13,547,124	13,434,009

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	0	1,535,628	0	1,535,628
Restricted stock issuance, net	$ (69)	69	0	0
Issuance of common stock under employee stock purchase plan (in shares)	37,235
Issuance of common stock under employee stock purchase plan	$ 372	313,519	0	313,891
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)	0	24
Tax withholding related to vesting of restricted stock grants	(304)	(431,475)	0	(431,779)
Net income	$ 0	0	2,678,429	2,678,429
Restricted stock issuance, net (in shares)	(6,890)
Tax withholding related to vesting of restricted stock grants (in shares)	(30,469)
Restricted stock issuance, net (in shares)	6,890
Balance (in shares) at Jun. 30, 2019	13,651,869
Balance at Jun. 30, 2019	$ 136,519	56,901,470	15,933,080	72,971,069
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
Stock-based compensation expense	0	433,438	0	433,438
Restricted stock issuance, net	$ (65)	65	0	0
Issuance of common stock under employee stock purchase plan (in shares)	19,923
Issuance of common stock under employee stock purchase plan	$ 199	167,752	0	167,951
Exercise of stock options, net of shares exchanged for payment	0	0	0	0
Tax withholding related to vesting of restricted stock grants	(299)	(424,804)	0	(425,103)
Net income	$ 0	0	1,300,527	1,300,527
Restricted stock issuance, net (in shares)	(6,538)
Tax withholding related to vesting of restricted stock grants (in shares)	(29,924)
Restricted stock issuance, net (in shares)	6,538
Balance (in shares) at Jun. 30, 2019	13,651,869
Balance at Jun. 30, 2019	$ 136,519	56,901,470	15,933,080	72,971,069
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	(418)	(428,236)	0	(428,654)
Stock-based compensation expense	0	541,884	0	541,884
Restricted stock issuance, net	$ 96	(96)	0	0
Issuance of common stock under employee stock purchase plan (in shares)	30,223
Issuance of common stock under employee stock purchase plan	$ 302	348,474	0	348,776
Exercise of stock options, net of shares exchanged for payment (in shares)	7,646
Exercise of stock options, net of shares exchanged for payment	$ 76	10,892	0	10,968
Tax withholding related to vesting of restricted stock grants	(4)	(5,799)	0	(5,803)
Net income	$ 0	0	4,243,623	4,243,623
Restricted stock issuance, net (in shares)	(9,580)
Tax withholding related to vesting of restricted stock grants (in shares)	(453)
Repurchase of common stock (in shares)	(41,796)
Restricted stock issuance, net (in shares)	9,580
Balance (in shares) at Jun. 30, 2020	13,647,005
Balance at Jun. 30, 2020	$ 136,470	57,443,281	22,064,430	79,644,181
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
Repurchase of common stock	0	0	0	0
Stock-based compensation expense	0	213,361	0	213,361
Restricted stock issuance, net	$ 0	0	0	0
Issuance of common stock under employee stock purchase plan (in shares)	15,116
Issuance of common stock under employee stock purchase plan	$ 151	178,973	0	179,124
Exercise of stock options, net of shares exchanged for payment (in shares)	4,250
Exercise of stock options, net of shares exchanged for payment	$ 43	8,343	0	8,386
Tax withholding related to vesting of restricted stock grants	0	0	0	0
Net income	$ 0	0	2,994,568	2,994,568
Balance (in shares) at Jun. 30, 2020	13,647,005
Balance at Jun. 30, 2020	$ 136,470	$ 57,443,281	$ 22,064,430	$ 79,644,181

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 4,243,623	$ 2,678,429
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,824,517	1,613,394
Change in allowance for doubtful accounts	0	210,000
Amortization of discount on investments	(64,327)	(43,601)
Stock-based compensation	541,884	1,535,628
Changes in operating assets and liabilities:
Accounts receivable, net	18,912	3,308,314
Inventories, net	(5,868,972)	625,873
Other assets	190,796	(116,872)
Accounts payable, accrued expenses and deferred rent	1,553,798	(901,754)
Net cash provided by operating activities	2,440,231	8,909,411
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(1,493,341)	(1,099,089)
Purchases of investments	(31,837,930)	(17,444,393)
Proceeds from maturities of investments	30,163,000	7,235,000
Net cash used in investing activities	(3,168,271)	(11,308,482)
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan	348,776	313,891
Proceeds from issuance of common stock upon exercise of stock options	10,968	24
Tax withholding related to vesting of restricted stock grants	(5,803)	(431,779)
Repurchase of common stock	(428,654)	0
Net cash used in financing activities	(74,713)	(117,864)
Decrease in cash and cash equivalents	(802,753)	(2,516,935)
Cash and cash equivalents, beginning of period	10,081,721	8,547,777
Cash and cash equivalents, end of period	9,278,968	6,030,842
Supplemental disclosures for cash flow information
Cash paid during the year for income taxes	469,529	1,081,068
Non-cash financing activities
Cashless exercise of stock options	$ 10,962	$ 17,390

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 1. The accompanying (a) condensed balance sheet as of September 30, 2019, three nine June 30, 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 not

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	9 Months Ended
	Jun. 30, 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 nine June 30, 2020 2019: Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Net income $ 2,994,568 $ 1,300,527 $ 4,243,623 $ 2,678,429 Weighted average common shares 13,497,955 13,446,289 13,510,413 13,422,885 Dilutive potential common shares - 5,382 36,711 11,124 Weighted average dilutive common shares outstanding 13,497,955 13,451,671 13,547,124 13,434,009 Net income per common share: Basic $ 0.22 $ 0.10 $ 0.31 $ 0.20 Diluted $ 0.22 $ 0.10 $ 0.31 $ 0.20

Note 3 - Cash, Cash Equivalents

Note 3 - Cash, Cash Equivalents and Investments	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	Note 3. The Company invests its excess cash in bank certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) and United States Treasury (“Treasuries”) securities with terms of not five three The maturity dates of the Company’s investments as of June 30, 2020 September 30, 2019 June 30, 2020 September 30, 2019 Less than one year $ 11,093,527 $ 13,524,270 1-5 years 28,072,000 23,902,000 Total $ 39,165,527 $ 37,426,270

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 4. The Company recorded $213,361 and $541,884 of compensation expense related to current and past restricted stock grants, non-qualified stock options and the Company’s Employee Stock Purchase Plan (“ESPP”) for the three nine June 30, 2020, three June 30, 2020, nine June 30, 2020, three nine June 30, 2019, three June 30, 2019, nine June 30, 2019, June 30, 2020, $ Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of options granted. During the nine June 30, 2020, nine June 30, 2019, four three This fair value of awards during the nine June 30, 2020 Nine months ended June 30, 2020 Dividend yield 0% Expected volatility 39.5 – 44.9% Risk-free interest rate 0.24 – 1.69% Expected life (in years) 4 - 6 Vesting period (in 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 nine June 30, 2020: Number of options Weighted average exercise price Outstanding as of September 30, 2019 290,750 $ 11.86 Granted 121,350 12.43 Exercised (8,500 ) 2.58 Cancelled or Forfeited (48,250 ) 13.35 Outstanding as of June 30, 2020 355,350 $ 12.08 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of June 30, 2020, nine June 30, 2020, nine June 30, 2019, Restricted Stock The Company’s 2007 one ten During the nine June 30, 2020, 2020 one February, one 2020 one nine June 30, 2020. During the nine June 30, 2019, one Restricted stock transactions during the nine June 30, 2020 Number of shares Weighted average grant date fair value 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 June 30, 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 one six January 1 July 1 June 30, 2020 December 31, 2019, February 2020, June 30, 2020,

Note 5 - Revenue

Note 5 - Revenue	9 Months Ended
	Jun. 30, 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 nine Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 United States $ 25,090,614 $ 20,243,754 $ 62,765,455 $ 55,861,025 All other countries 879,431 1,648,490 2,991,090 5,204,734 Total Net Sales $ 25,970,045 $ 21,892,244 $ 65,756,545 $ 61,065,759 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 nine Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Broadband service providers 97 % 97 % 96 % 95 % Build-to-print customers 3 % 3 % 4 % 5 % 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 June 30, 2020 September 30, 2019, See Note 7,

Note 6 - Inventories

Note 6 - Inventories	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 6. Inventories consist of the following as of: June 30, 2020 September 30, 2019 Raw materials $ 11,340,314 $ 7,115,298 Work-in-progress 1,384,876 540,962 Finished goods 2,156,763 1,356,720 Inventories, net $ 14,881,952 $ 9,012,980

Note 7 - Major Customer Concent

Note 7 - Major Customer Concentration	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 7. For the three June 30, 2020, nine June 30, 2020, three June 30, 2019, nine June 30, 2019, not As of June 30, 2020, September 30, 2019, two

Note 8 - Goodwill and Intangibl

Note 8 - Goodwill and Intangibles	9 Months Ended
	Jun. 30, 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 nine June 30, 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 June 30, 2020, 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 nine June 30, 2020, no

Note 9 - Income Taxes

Note 9 - Income Taxes	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. For the three nine June 30, 2020, For the three nine June 30, 2019, 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 June 30, 2020 September 30, 2019, not no nine June 30, 2020. As of June 30, 2020, not not 12

Note 10 - Leases

Note 10 - Leases	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	Note 10. Clearfield leases a 71,000 square foot facility at 7050 ten two January 1, 2015. June 30, 2019, one eighth not not We also have an indirect lease arrangement for a 46,000 square foot manufacturing facility in Tijuana, Mexico. The lease term is three August 1, 2017. not On February 12, 2020, 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 June 30, 2020, not not Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three nine June 30, 2020: Operating lease expense under ASC842 , Leases, Three months ended June 30, 2020 Nine months ended June 30, 2020 Cost of goods sold $ 247,897 $ 652,399 Selling, general and administrative 54,345 166,109 Total lease expense $ 302,242 $ 818,508 Future maturities of lease liabilities were as follows as of June 30, 2020: Operating Leases 2020 (remainder of fiscal year) $ 202,586 2021 752,423 2022 772,803 2023 744,963 2024 516,725 Thereafter 217,552 Total lease payments $ 3,207,052 Less: Interest (234,833 ) Present value of lease liabilities $ 2,972,219 The weighted average term and weighted average discount rate for our leases as of June 30, 2020 three nine June 30, 2020, Rent expense for our operating leases as accounted for under ASC 840, Leases three nine June 30, 2019. Operating lease expense under ASC840, Leases, Three months ended June 30, 2019 Nine months ended June 30, 2019 Cost of goods sold $ 158,932 $ 491,878 Selling, general and administrative 54,990 162,366 Total lease expense $ 213,922 $ 654,244 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)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Net income $ 2,994,568 $ 1,300,527 $ 4,243,623 $ 2,678,429 Weighted average common shares 13,497,955 13,446,289 13,510,413 13,422,885 Dilutive potential common shares - 5,382 36,711 11,124 Weighted average dilutive common shares outstanding 13,497,955 13,451,671 13,547,124 13,434,009 Net income per common share: Basic $ 0.22 $ 0.10 $ 0.31 $ 0.20 Diluted $ 0.22 $ 0.10 $ 0.31 $ 0.20

Note 3 - Cash, Cash Equivalen_2

Note 3 - Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Investments Classified by Contractual Maturity Date [Table Text Block]	June 30, 2020 September 30, 2019 Less than one year $ 11,093,527 $ 13,524,270 1-5 years 28,072,000 23,902,000 Total $ 39,165,527 $ 37,426,270

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine months ended June 30, 2020 Dividend yield 0% Expected volatility 39.5 – 44.9% Risk-free interest rate 0.24 – 1.69% Expected life (in years) 4 - 6 Vesting period (in years) 3 - 5
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of options Weighted average exercise price Outstanding as of September 30, 2019 290,750 $ 11.86 Granted 121,350 12.43 Exercised (8,500 ) 2.58 Cancelled or Forfeited (48,250 ) 13.35 Outstanding as of June 30, 2020 355,350 $ 12.08
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, 2019 130,440 $ 13.25 Granted 19,455 11.30 Vested (5,740 ) 14.01 Forfeited (9,875 ) 12.03 Unvested as of June 30, 2020 134,280 $ 13.02

Note 5 - Revenue (Tables)

Note 5 - Revenue (Tables)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 United States $ 25,090,614 $ 20,243,754 $ 62,765,455 $ 55,861,025 All other countries 879,431 1,648,490 2,991,090 5,204,734 Total Net Sales $ 25,970,045 $ 21,892,244 $ 65,756,545 $ 61,065,759 Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Broadband service providers 97 % 97 % 96 % 95 % Build-to-print customers 3 % 3 % 4 % 5 % Total Net Sales 100 % 100 % 100 % 100 %

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 30, 2020 September 30, 2019 Raw materials $ 11,340,314 $ 7,115,298 Work-in-progress 1,384,876 540,962 Finished goods 2,156,763 1,356,720 Inventories, net $ 14,881,952 $ 9,012,980

Note 10 - Leases (Tables)

Note 10 - Leases (Tables)	9 Months Ended
	Jun. 30, 2020
Notes Tables
Lessee, Operating Lease Expense [Table Text Block]	Operating lease expense under ASC842 , Leases, Three months ended June 30, 2020 Nine months ended June 30, 2020 Cost of goods sold $ 247,897 $ 652,399 Selling, general and administrative 54,345 166,109 Total lease expense $ 302,242 $ 818,508 Operating lease expense under ASC840, Leases, Three months ended June 30, 2019 Nine months ended June 30, 2019 Cost of goods sold $ 158,932 $ 491,878 Selling, general and administrative 54,990 162,366 Total lease expense $ 213,922 $ 654,244
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Operating Leases 2020 (remainder of fiscal year) $ 202,586 2021 752,423 2022 772,803 2023 744,963 2024 516,725 Thereafter 217,552 Total lease payments $ 3,207,052 Less: Interest (234,833 ) Present value of lease liabilities $ 2,972,219
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 ($)	Jun. 30, 2020	Oct. 01, 2019	Sep. 30, 2019
Operating Lease, Right-of-Use Asset	$ 2,710,073		$ 0
Operating Lease, Liability, Total	$ 2,972,219
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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net income	$ 2,994,568	$ 1,300,527	$ 4,243,623	$ 2,678,429
Weighted average common shares (in shares)	13,497,955	13,446,289	13,510,413	13,422,885
Dilutive potential common shares (in shares)	0	5,382	36,711	11,124
Weighted average dilutive common shares outstanding (in shares)	13,497,955	13,451,671	13,547,124	13,434,009
Basic (in dollars per share)	$ 0.22	$ 0.10	$ 0.31	$ 0.20
Diluted (in dollars per share)	$ 0.22	$ 0.10	$ 0.31	$ 0.20

Note 3 - Cash, Cash Equivalen_3

Note 3 - Cash, Cash Equivalents and Investments (Details Textual)	9 Months Ended
	Jun. 30, 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 ($)	Jun. 30, 2020	Sep. 30, 2019
Less than one year	$ 11,093,527	$ 13,524,270
1-5 years	28,072,000	23,902,000
Total	$ 39,165,527	$ 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	9 Months Ended		18 Months Ended
	Feb. 29, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020
Share-based Payment Arrangement, Expense		$ 213,361	$ 433,438		$ 541,884	$ 1,535,628
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		2,147,356			$ 2,147,356		$ 2,147,356
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)					4 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)					121,350	172,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)					5 years 8 months 15 days	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)					4 years 8 months 15 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 3 months 21 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		$ 278,995			$ 278,995		$ 278,995
Proceeds from Stock Options Exercised					$ 10,968	$ 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			15,116
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price (in dollars per share)				$ 11.23			$ 11.85
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)		219,623			219,623		219,623
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	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	5,000				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)	$ 11.01				$ 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		$ 207,653	410,784		$ 526,580	$ 1,450,489
Cost of Sales [Member]
Share-based Payment Arrangement, Expense		$ 5,708	$ 22,654		$ 15,304	$ 85,139

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Valuation Assumptions (Details)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Dividend yield	0.00%
Vesting period (in years) (Year)	4 years 8 months 15 days	3 years
Minimum [Member]
Expected volatility	39.50%
Risk-free interest rate	0.24%
Expected life (in years) (Year)	4 years
Vesting period (in years) (Year)	3 years
Maximum [Member]
Expected volatility	44.90%
Risk-free interest rate	1.69%
Expected life (in years) (Year)	6 years
Vesting period (in years) (Year)	5 years

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Options, outstanding (in shares)	290,750
Weighted-average exercise price, outstanding (in dollars per share)	$ 11.86
Granted (in shares)	121,350	172,000
Weighted-average exercise price, Granted (in dollars per share)	$ 12.43	$ 12.17
Exercised (in shares)	(8,500)
Weighted-average exercise price, Exercised (in dollars per share)	$ 2.58
Cancelled or Forfeited (in shares)	(48,250)
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)	$ 12.08

Note 4 - Stock-based Compensa_6

Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member]	9 Months Ended
	Jun. 30, 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 ($)	Jun. 30, 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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Total Net Sales	$ 25,970,045	$ 21,892,244	$ 65,756,545	$ 61,065,759
Percent of net sales	100.00%	100.00%	100.00%	100.00%
Broadband Service Providers [Member]
Percent of net sales	97.00%	97.00%	96.00%	95.00%
Build-to-print Customers [Member]
Percent of net sales	3.00%	3.00%	4.00%	5.00%
UNITED STATES
Total Net Sales	$ 25,090,614	$ 20,243,754	$ 62,765,455	$ 55,861,025
Non-US [Member]
Total Net Sales	$ 879,431	$ 1,648,490	$ 2,991,090	$ 5,204,734

Note 6 - Inventories - Componen

Note 6 - Inventories - Components of Inventory (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Raw materials	$ 11,340,314	$ 7,115,298
Work-in-progress	1,384,876	540,962
Finished goods	2,156,763	1,356,720
Inventories, net	$ 14,881,952	$ 9,012,980

Note 7 - Major Customer Conce_2

Note 7 - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Revenue Benchmark [Member] | Customer A [Member]
Concentration Risk, Percentage	20.00%	19.00%	20.00%	18.00%
Revenue Benchmark [Member] | Customer B [Member]
Concentration Risk, Percentage	11.00%	12.00%	11.00%	10.00%
Revenue Benchmark [Member] | Customer C [Member]
Concentration Risk, Percentage				11.00%
Accounts Receivable [Member]
Number of Major Customers			2		2
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage			17.00%		16.00%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk, Percentage			11.00%		12.00%
Accounts Receivable [Member] | Two Customers [Member]
Concentration Risk, Percentage			28.00%		28.00%

Note 8 - Goodwill and Intangi_2

Note 8 - Goodwill and Intangibles (Details Textual) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Income Tax Expense (Benefit), Total	$ 763,000	$ 454,000	$ 1,076,000	$ 849,000
Effective Income Tax Rate Reconciliation, Percent, Total	20.30%	25.90%	20.20%	24.10%
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	Jun. 30, 2020USD ($)ft²	Jun. 30, 2020USD ($)ft²	Feb. 12, 2020ft²	Aug. 01, 2017ft²	Jan. 01, 2015
Operating Lease, Weighted Average Discount Rate, Percent		3.48%	3.48%
Operating Lease, Payments | $		$ 237,726	$ 574,381
Weighted Average [Member]
Lessee, Operating Lease, Term of Contract (Year)		4 years 2 months 15 days	4 years 2 months 15 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 2 months 1 day
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
Lessee, Operating Lease, Term of Contract (Year)					3 years
Tijuana, Mexico 2 [Member]
Area of Real Estate Property (Square Foot)				52,000
Lessee, Operating Lease, Term of Contract (Year)				42 months
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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Total lease expense under ASC 842	$ 302,242		$ 818,508
Total lease expense under ASC 840		$ 213,922		$ 654,244
Cost of Sales [Member]
Total lease expense under ASC 842	247,897		652,399
Total lease expense under ASC 840		158,932		491,878
Selling, General and Administrative Expenses [Member]
Total lease expense under ASC 842	$ 54,345		$ 166,109
Total lease expense under ASC 840		$ 54,990		$ 162,366

Note 10 - Leases - Maturities o

Note 10 - Leases - Maturities of Lease Liabilities (Details)	Jun. 30, 2020USD ($)
2020 (remainder of fiscal year)	$ 202,586
2021	752,423
2022	772,803
2023	744,963
2024	516,725
Thereafter	217,552
Total lease payments	3,207,052
Less: Interest	(234,833)
Present value of lease liabilities	$ 2,972,219

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