Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2021 | Jul. 12, 2021 | |
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 | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, $0.01 par value | |
Trading Symbol | CLFD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,742,545 |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 21,305,392 | $ 16,449,636 |
Short-term investments | 10,864,831 | 10,582,527 |
Accounts receivables, net | 16,182,713 | 10,496,672 |
Inventories, net | 20,979,139 | 14,408,538 |
Other current assets | 652,320 | 585,436 |
Total current assets | 69,984,395 | 52,522,809 |
Property, plant and equipment, net | 4,925,245 | 4,952,819 |
Other Assets | ||
Long-term investments | 26,721,221 | 25,143,000 |
Goodwill | 4,708,511 | 4,708,511 |
Intangible assets, net | 4,765,194 | 4,986,216 |
Right of use lease assets | 2,515,743 | 2,539,100 |
Deferred tax asset | 178,118 | 178,118 |
Other | 259,548 | 266,857 |
Total other assets | 39,148,335 | 37,821,802 |
Total Assets | 114,057,975 | 95,297,430 |
Current Liabilities | ||
Current portion of lease liability | 901,063 | 665,584 |
Accounts payable | 6,648,416 | 3,689,587 |
Accrued compensation | 7,014,488 | 4,856,885 |
Accrued expenses | 1,150,672 | 1,202,753 |
Total current liabilities | 15,714,639 | 10,414,809 |
Other Liabilities | ||
Long-term portion of lease liability | 1,849,067 | 2,129,343 |
Total other liabilities | 1,849,067 | 2,129,343 |
Total liabilities | 17,563,706 | 12,544,152 |
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; 13,742,545 and 13,649,962 shares issued and outstanding as of June 30, 2021 and September 30, 2020 | 137,425 | 136,500 |
Additional paid-in capital | 58,341,635 | 57,502,905 |
Retained earnings | 38,015,209 | 25,113,873 |
Total shareholders’ equity | 96,494,269 | 82,753,278 |
Total Liabilities and Shareholders’ Equity | $ 114,057,975 | $ 95,297,430 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
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) | 13,742,545 | 13,649,962 |
Common stock, shares outstanding (in shares) | 13,742,545 | 13,649,962 |
Condensed Statements of Earning
Condensed Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales | $ 38,735,356 | $ 25,970,045 | $ 95,519,437 | $ 65,756,545 |
Cost of sales | 21,597,574 | 15,179,875 | 54,070,830 | 39,087,407 |
Gross profit | 17,137,782 | 10,790,170 | 41,448,607 | 26,669,138 |
Operating expenses | ||||
Selling, general and administrative | 9,435,877 | 7,207,157 | 25,581,534 | 21,965,038 |
Income from operations | 7,701,905 | 3,583,013 | 15,867,073 | 4,704,100 |
Interest income | 121,208 | 174,555 | 378,263 | 615,523 |
Income before income taxes | 7,823,113 | 3,757,568 | 16,245,336 | 5,319,623 |
Income tax expense | 1,725,000 | 763,000 | 3,344,000 | 1,076,000 |
Net income | $ 6,098,113 | $ 2,994,568 | $ 12,901,336 | $ 4,243,623 |
Net income per share Basic (in dollars per share) | $ 0.44 | $ 0.22 | $ 0.94 | $ 0.31 |
Net income per share Diluted (in dollars per share) | $ 0.44 | $ 0.22 | $ 0.94 | $ 0.31 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 13,732,913 | 13,497,955 | 13,718,394 | 13,510,413 |
Diluted (in shares) | 13,812,510 | 13,497,955 | 13,762,897 | 13,547,124 |
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, 2019 | 13,641,805 | |||
Balance at Sep. 30, 2019 | $ 136,418 | $ 56,976,162 | $ 17,820,807 | $ 74,933,387 |
Stock-based compensation expense | $ 0 | 541,884 | 0 | 541,884 |
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 |
Net income | $ 0 | 0 | 4,243,623 | 4,243,623 |
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 |
Restricted stock issuance, net (in shares) | 9,580 | |||
Restricted stock issuance, net | $ 96 | (96) | 0 | 0 |
Tax withholding related to vesting of restricted stock grants (in shares) | (453) | |||
Tax withholding related to vesting of restricted stock grants | $ (4) | (5,799) | 0 | (5,803) |
Repurchase of common stock (in shares) | (41,796) | |||
Repurchase of common stock | $ (418) | (428,236) | 0 | (428,654) |
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 |
Stock-based compensation expense | $ 0 | 213,361 | 0 | 213,361 |
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 |
Net income | $ 0 | 0 | 2,994,568 | 2,994,568 |
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 |
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 Sep. 30, 2020 | 13,649,962 | |||
Balance at Sep. 30, 2020 | $ 136,500 | 57,502,905 | 25,113,873 | 82,753,278 |
Stock-based compensation expense | $ 0 | 966,290 | 0 | 966,290 |
Issuance of common stock under employee stock purchase plan (in shares) | 24,750 | |||
Issuance of common stock under employee stock purchase plan | $ 247 | 383,450 | 0 | 383,697 |
Net income | $ 0 | 0 | 12,901,336 | 12,901,336 |
Exercise of stock options, net of shares exchanged for payment (in shares) | 33,543 | |||
Exercise of stock options, net of shares exchanged for payment | $ 336 | (456,460) | 0 | (456,124) |
Restricted stock issuance, net (in shares) | 36,509 | |||
Restricted stock issuance, net | $ 365 | (365) | 0 | 0 |
Tax withholding related to vesting of restricted stock grants (in shares) | (2,219) | |||
Tax withholding related to vesting of restricted stock grants | $ (23) | (54,185) | 0 | (54,208) |
Balance (in shares) at Jun. 30, 2021 | 13,742,545 | |||
Balance at Jun. 30, 2021 | $ 137,425 | 58,341,635 | 38,015,209 | 96,494,269 |
Balance (in shares) at Mar. 31, 2021 | 13,732,806 | |||
Balance at Mar. 31, 2021 | $ 137,328 | 57,794,061 | 31,917,096 | 89,848,485 |
Stock-based compensation expense | $ 0 | 343,055 | 0 | 343,055 |
Issuance of common stock under employee stock purchase plan (in shares) | 9,739 | |||
Issuance of common stock under employee stock purchase plan | $ 97 | 204,519 | 0 | 204,616 |
Net income | $ 0 | 0 | 6,098,113 | 6,098,113 |
Balance (in shares) at Jun. 30, 2021 | 13,742,545 | |||
Balance at Jun. 30, 2021 | $ 137,425 | $ 58,341,635 | $ 38,015,209 | $ 96,494,269 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 12,901,336 | $ 4,243,623 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,725,509 | 1,824,517 |
Change in allowance for doubtful accounts | 209,612 | 0 |
Amortization of discount on investments | (876) | (64,327) |
Stock-based compensation | 966,290 | 541,884 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,895,653) | 18,912 |
Inventories, net | (6,570,601) | (5,868,972) |
Other assets | (261,371) | 190,796 |
Accounts payable and accrued expenses | 5,042,911 | 1,553,798 |
Net cash provided by operating activities | 8,117,157 | 2,440,231 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment and intangible assets | (1,275,117) | (1,493,341) |
Purchases of investments | (11,903,649) | (31,837,930) |
Proceeds from maturities of investments | 10,044,000 | 30,163,000 |
Net cash used in investing activities | (3,134,766) | (3,168,271) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock under employee stock purchase plan | 383,697 | 348,776 |
Tax withholding and proceeds related to exercise of stock options | (456,124) | 10,968 |
Tax withholding related to vesting of restricted stock grants | (54,208) | (5,803) |
Repurchase of common stock | 0 | (428,654) |
Net cash used in financing activities | (126,635) | (74,713) |
Increase (Decrease) in cash and cash equivalents | 4,855,756 | (802,753) |
Cash and cash equivalents, beginning of period | 16,449,636 | 10,081,721 |
Cash and cash equivalents, end of period | 21,305,392 | 9,278,968 |
Supplemental disclosures for cash flow information | ||
Cash paid during the year for income taxes | 3,559,502 | 469,529 |
Non-cash financing activities | ||
Cashless exercise of stock options | $ 1,269,414 | $ 10,962 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 1. The accompanying (a) condensed balance sheet as of September 30, 2020, three nine June 30, 2021 not 10 September 30, 2020. 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. For the purposes of comparability, certain prior period amounts have been reclassified to conform to current period classification. There was no New Accounting Pronouncements In January 2017, 2017 04, 2 December 15, 2019. first 2021. 2017 04 first 2021 not In June 2016, 2016 13, November 2018, 2018 19 2016 13. first 2023, 2016 13 |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 9 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Net income $ 6,098,113 $ 2,994,568 $ 12,901,336 $ 4,243,623 Weighted average common shares 13,732,913 13,497,955 13,718,394 13,510,413 Dilutive potential common shares 79,597 - 44,503 36,711 Weighted average dilutive common shares outstanding 13,812,510 13,497,955 13,762,897 13,547,124 Net income per common share: Basic $ 0.44 $ 0.22 $ 0.94 $ 0.31 Diluted $ 0.44 $ 0.22 $ 0.94 $ 0.31 |
Note 3 - Cash, Cash Equivalents
Note 3 - Cash, Cash Equivalents, and Investments | 9 Months Ended |
Jun. 30, 2021 | |
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”) as well as U.S. Treasury securities and money market accounts. CDs and US Treasuries with original maturities of more than three June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 Less than one year $ 10,864,831 $ 10,582,527 1-5 years 26,721,221 25,143,000 Total $ 37,586,052 $ 35,725,527 |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 4. The Company recorded $343,055 and $966,290 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, 2021, three June 30, 2021, nine June 30, 2021, three nine June 30, 2020, three June 30, 2020, nine June 30, 2020, June 30, 2021, Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of options granted. During the nine June 30, 2021, five three nine June 30, 2020, The fair value of stock option awards during the nine June 30, 2021 Nine months ended June 30, 2021 Dividend yield 0 % Expected volatility 46.9 % Risk-free interest rate 0.24 % Expected life (years) 5 Vesting period (years) 3 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, 2021: Number of options Weighted average exercise price Outstanding as of September 30, 2020 337,100 $ 12.48 Granted 105,089 23.74 Exercised (101,800 ) 12.47 Forfeited or Expired (38,709 ) 13.68 Outstanding as of June 30, 2021 301,680 $ 16.25 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, 2021, Restricted Stock The Company’s 2007 one ten During the nine June 30, 2021, 2021 one nine June 30, 2021, three During the nine June 30, 2020, 2020 one one Restricted stock transactions during the nine June 30, 2021 Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2020 109,070 $ 12.97 Granted 39,807 24.20 Vested (12,230 ) 11.08 Forfeited (3,298 ) 16.07 Unvested as of June 30, 2021 133,349 $ 16.41 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 one six January 1 July 1 June 30, 2021 December 31, 2020, June 30, 2021, |
Note 5 - Revenue
Note 5 - Revenue | 9 Months Ended |
Jun. 30, 2021 | |
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 the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes 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. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of the Company’s 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. Revenues related to the following geographic areas were as follows for the three nine Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 United States $ 35,810,360 $ 25,090,614 $ 89,586,498 $ 62,765,455 All other countries 2,924,996 879,431 5,932,939 2,991,090 Total Net Sales $ 38,735,356 $ 25,970,045 $ 95,519,437 $ 65,756,545 The Company manufactures and sells a proprietary product line designed for the Broadband Service Provider marketplace. In addition, the Company’s Legacy business 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, 2021 2020 2021 2020 Broadband service providers 98 % 97 % 98 % 96 % Legacy customers 2 % 3 % 2 % 4 % 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, multiple system operators (“MSO’s, or Cable TV”), which are also referred to as Tier 2 3 1’s; Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition, and collateral is generally not June 30, 2021 September 30, 2020, three March 31, 2021 See Note 7, |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 6. Inventories consist of the following as of: June 30, 2021 September 30, 2020 Raw materials $ 16,881,148 $ 12,287,134 Work-in-process 2,866,264 1,033,021 Finished goods 2,373,251 2,048,514 Inventories, gross 22,120,663 15,368,669 Inventory reserve (1,141,524 ) (960,131 ) Inventories, net $ 20,979,139 $ 14,408,538 |
Note 7 - Major Customer Concent
Note 7 - Major Customer Concentration | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 7. For the three June 30, 2021, nine June 30, 2021, three June 30, 2020, nine June 30, 2020, not As of June 30, 2021, September 30, 2020, |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangibles | 9 Months Ended |
Jun. 30, 2021 | |
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, 2020 not nine June 30, 2021, 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, 2021, 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. during fiscal year 2018. September 30, 2020 not nine June 30, 2021, no |
Note 9 - Income Taxes
Note 9 - Income Taxes | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9. For the three nine June 30, 2021, three nine June 30, 2021 three nine June 30, 2020, 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” June 30, 2021 September 30, 2020 not As of June 30, 2021, not not 12 |
Note 10 - Leases
Note 10 - Leases | 9 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 10. The Company leases an 85,000 square foot facility at 7050 ten two February 28, 2025. one eighth not not On October 9, 2020, three July 31, 2020. three 12 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 the Company is reasonably certain to exercise. The Company’s leases do not June 30, 2021, 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, 2021: Three Months Ended June 30, Nine Months Ended June 30, Operating lease expense within: 2021 2020 2021 2020 Cost of sales $ 242, 178 $ 247,897 $ 747,573 $ 652,399 Selling, general and administrative 51,275 54,345 162,008 166,109 Total lease expense $ 293,453 $ 302,242 $ 909,581 $ 818,508 Future maturities of lease liabilities were as follows as of June 30, 2021: FY2021 $ 242,982 FY2022 986,844 FY2023 943,682 FY2024 516,725 FY2025 217,552 Thereafter - Total lease payments 2,907,785 Less: Interest (157,655 ) Present value of lease liabilities $ 2,750,130 The weighted average term and weighted average discount rate for the Company’s leases as of June 30, 2021 June 30, 2020. three nine June 30, 2021, three nine June 30, 2020, |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Net income $ 6,098,113 $ 2,994,568 $ 12,901,336 $ 4,243,623 Weighted average common shares 13,732,913 13,497,955 13,718,394 13,510,413 Dilutive potential common shares 79,597 - 44,503 36,711 Weighted average dilutive common shares outstanding 13,812,510 13,497,955 13,762,897 13,547,124 Net income per common share: Basic $ 0.44 $ 0.22 $ 0.94 $ 0.31 Diluted $ 0.44 $ 0.22 $ 0.94 $ 0.31 |
Note 3 - Cash, Cash Equivalen_2
Note 3 - Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 30, 2021 September 30, 2020 Less than one year $ 10,864,831 $ 10,582,527 1-5 years 26,721,221 25,143,000 Total $ 37,586,052 $ 35,725,527 |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine months ended June 30, 2021 Dividend yield 0 % Expected volatility 46.9 % Risk-free interest rate 0.24 % Expected life (years) 5 Vesting period (years) 3 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of options Weighted average exercise price Outstanding as of September 30, 2020 337,100 $ 12.48 Granted 105,089 23.74 Exercised (101,800 ) 12.47 Forfeited or Expired (38,709 ) 13.68 Outstanding as of June 30, 2021 301,680 $ 16.25 |
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, 2020 109,070 $ 12.97 Granted 39,807 24.20 Vested (12,230 ) 11.08 Forfeited (3,298 ) 16.07 Unvested as of June 30, 2021 133,349 $ 16.41 |
Note 5 - Revenue (Tables)
Note 5 - Revenue (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 United States $ 35,810,360 $ 25,090,614 $ 89,586,498 $ 62,765,455 All other countries 2,924,996 879,431 5,932,939 2,991,090 Total Net Sales $ 38,735,356 $ 25,970,045 $ 95,519,437 $ 65,756,545 Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Broadband service providers 98 % 97 % 98 % 96 % Legacy customers 2 % 3 % 2 % 4 % Total Net Sales 100 % 100 % 100 % 100 % |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2021 September 30, 2020 Raw materials $ 16,881,148 $ 12,287,134 Work-in-process 2,866,264 1,033,021 Finished goods 2,373,251 2,048,514 Inventories, gross 22,120,663 15,368,669 Inventory reserve (1,141,524 ) (960,131 ) Inventories, net $ 20,979,139 $ 14,408,538 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Lessee, Operating Lease Expense [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, Operating lease expense within: 2021 2020 2021 2020 Cost of sales $ 242, 178 $ 247,897 $ 747,573 $ 652,399 Selling, general and administrative 51,275 54,345 162,008 166,109 Total lease expense $ 293,453 $ 302,242 $ 909,581 $ 818,508 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FY2021 $ 242,982 FY2022 986,844 FY2023 943,682 FY2024 516,725 FY2025 217,552 Thereafter - Total lease payments 2,907,785 Less: Interest (157,655 ) Present value of lease liabilities $ 2,750,130 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income | $ 6,098,113 | $ 2,994,568 | $ 12,901,336 | $ 4,243,623 |
Weighted average common shares (in shares) | 13,732,913 | 13,497,955 | 13,718,394 | 13,510,413 |
Dilutive potential common shares (in shares) | 79,597 | 0 | 44,503 | 36,711 |
Weighted average dilutive common shares outstanding (in shares) | 13,812,510 | 13,497,955 | 13,762,897 | 13,547,124 |
Basic (in dollars per share) | $ 0.44 | $ 0.22 | $ 0.94 | $ 0.31 |
Diluted (in dollars per share) | $ 0.44 | $ 0.22 | $ 0.94 | $ 0.31 |
Note 3 - Cash, Cash Equivalen_3
Note 3 - Cash, Cash Equivalents, and Investments - Maturity Date of CDs (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Less than one year | $ 10,864,831 | $ 10,582,527 |
1-5 years | 26,721,221 | 25,143,000 |
Total | $ 37,586,052 | $ 35,725,527 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expense | $ 343,055 | $ 213,361 | $ 966,290 | $ 541,884 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 2,866,298 | $ 2,866,298 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 2 months 12 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 105,089 | 121,350 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 5 years | 5 years 8 months 15 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 4 years 8 months 15 days | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 23.74 | $ 12.43 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 2 years 6 months 18 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1,292,691 | $ 1,292,691 | ||||
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) | 9,739 | 15,011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price (in dollars per share) | $ 21.01 | $ 11.93 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 194,873 | 194,873 | ||||
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) | 39,807 | |||||
Restricted Stock [Member] | Stock Compensation Plan 2007 [Member] | Share-based Payment Arrangement, Nonemployee [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 | 2,120 | 5,830 | |||
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 | $ 32.41 | $ 10.72 | |||
Restricted Stock [Member] | Stock Compensation Plan 2007 [Member] | Share-based Payment Arrangement, Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 37,687 | |||||
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) | $ 23.74 | |||||
Restricted Stock [Member] | Minimum [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] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 10 years | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 328,710 | 207,653 | $ 923,256 | $ 526,580 | ||
Cost of Sales [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 14,345 | $ 5,708 | $ 43,034 | $ 15,304 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation - Valuation Assumptions (Details) | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Dividend yield | 0.00% | |
Expected volatility | 46.90% | |
Risk-free interest rate | 0.24% | |
Expected life (Year) | 5 years | |
Vesting period (Year) | 3 years | 4 years 8 months 15 days |
Note 4 - Stock-based Compensa_5
Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Options, outstanding (in shares) | 337,100 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 12.48 | |
Granted (in shares) | 105,089 | 121,350 |
Weighted-average exercise price, Granted (in dollars per share) | $ 23.74 | $ 12.43 |
Exercised (in shares) | (101,800) | |
Weighted-average exercise price, Exercised (in dollars per share) | $ 12.47 | |
Forfeited or Expired (in shares) | (38,709) | |
Weighted-average exercise price, Forfeited or Expired (in dollars per share) | $ 13.68 | |
Options, outstanding (in shares) | 301,680 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 16.25 |
Note 4 - Stock-based Compensa_6
Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member] | 9 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Balance, unvested shares (in shares) | shares | 109,070 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 12.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares | 39,807 |
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 24.20 |
Vested (in shares) | shares | (12,230) |
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 11.08 |
Forfeited (in shares) | shares | (3,298) |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 16.07 |
Balance, unvested shares (in shares) | shares | 133,349 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 16.41 |
Note 5 - Revenue (Details Textu
Note 5 - Revenue (Details Textual) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 79,473 | $ 289,085 |
Note 5 - Revenue - Disaggregati
Note 5 - Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total Net Sales | $ 38,735,356 | $ 25,970,045 | $ 95,519,437 | $ 65,756,545 |
Percent of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Broadband Service Providers [Member] | ||||
Percent of net sales | 98.00% | 97.00% | 98.00% | 96.00% |
Legacy Customers [Member] | ||||
Percent of net sales | 2.00% | 3.00% | 2.00% | 4.00% |
UNITED STATES | ||||
Total Net Sales | $ 35,810,360 | $ 25,090,614 | $ 89,586,498 | $ 62,765,455 |
Non-US [Member] | ||||
Total Net Sales | $ 2,924,996 | $ 879,431 | $ 5,932,939 | $ 2,991,090 |
Note 6 - Inventories - Componen
Note 6 - Inventories - Components of Inventory (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Raw materials | $ 16,881,148 | $ 12,287,134 |
Work-in-process | 2,866,264 | 1,033,021 |
Finished goods | 2,373,251 | 2,048,514 |
Inventories, gross | 22,120,663 | 15,368,669 |
Inventory reserve | (1,141,524) | (960,131) |
Inventories, net | $ 20,979,139 | $ 14,408,538 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 18.00% | 20.00% | 20.00% | 20.00% | |
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 12.00% | 11.00% | 11.00% | 11.00% | |
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 13.00% | 13.00% | |||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 14.00% | 12.00% | |||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 11.00% | 0.00% |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangibles (Details Textual) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Number of Patents Granted | 28 | |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Expense (Benefit), Total | $ 1,725,000 | $ 763,000 | $ 3,344,000 | $ 1,076,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 22.10% | 20.30% | 20.60% | 20.20% |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Oct. 09, 2020ft² | Feb. 12, 2020ft² | Aug. 01, 2017 | Jan. 01, 2015 | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 1 month 2 days | 4 years 2 months 15 days | 3 years 1 month 2 days | 4 years 2 months 15 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.41% | 3.48% | 3.41% | 3.48% | ||||
Operating Lease, Payments | $ | $ 242,736 | $ 237,726 | $ 722,537 | $ 574,381 | ||||
7050 Winnetka Avenue North, Brooklyn Park, Minnesota [Member] | ||||||||
Area of Real Estate Property (Square Foot) | 85,000 | 85,000 | ||||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years 2 months 1 day | |||||||
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 | 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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total lease expense under ASC 842 | $ 293,453 | $ 302,242 | $ 909,581 | $ 818,508 |
Cost of Sales [Member] | ||||
Total lease expense under ASC 842 | 242,178 | 247,897 | 747,573 | 652,399 |
Selling, General and Administrative Expenses [Member] | ||||
Total lease expense under ASC 842 | $ 51,275 | $ 54,345 | $ 162,008 | $ 166,109 |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease Liabilities (Details) | Jun. 30, 2021USD ($) |
FY2021 | $ 242,982 |
FY2022 | 986,844 |
FY2023 | 943,682 |
FY2024 | 516,725 |
FY2025 | 217,552 |
Thereafter | 0 |
Total lease payments | 2,907,785 |
Less: Interest | (157,655) |
Present value of lease liabilities | $ 2,750,130 |