Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-16106 | |
Entity Registrant Name | Clearfield, Inc. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1347235 | |
Entity Address, Address Line One | 7050 Winnetka Avenue North | |
Entity Address, Address Line Two | 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, $0.01 par value | |
Trading Symbol | CLFD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,233,283 | |
Entity Central Index Key | 0000796505 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 15,818,000 | $ 37,827,000 |
Short-term investments | 127,089,000 | 130,286,000 |
Accounts receivables, net | 21,899,000 | 28,392,000 |
Inventories, net | 83,985,000 | 98,055,000 |
Other current assets | 8,641,000 | 1,695,000 |
Total current assets | 257,432,000 | 296,255,000 |
Property, plant and equipment, net | 22,434,000 | 21,527,000 |
Other Assets | ||
Long-term investments | 6,523,000 | 6,343,000 |
Goodwill | 6,568,000 | 6,528,000 |
Intangible assets, net | 6,219,000 | 6,092,000 |
Right-of-use lease assets | 12,394,000 | 13,861,000 |
Deferred tax asset | 2,842,000 | 3,039,000 |
Other | 991,000 | 1,872,000 |
Total other assets | 35,537,000 | 37,735,000 |
Total Assets | 315,403,000 | 355,517,000 |
Current Liabilities | ||
Current portion of lease liability | 3,761,000 | 3,737,000 |
Current maturities of long-term debt | 2,159,000 | 2,112,000 |
Accounts payable | 5,914,000 | 8,891,000 |
Accrued compensation | 5,871,000 | 5,571,000 |
Accrued expenses | 2,740,000 | 2,404,000 |
Factoring liability | 5,931,000 | 6,289,000 |
Total current liabilities | 26,376,000 | 29,004,000 |
Other Liabilities | ||
Long-term portion of lease liability | 9,098,000 | 10,629,000 |
Deferred tax liability | 721,000 | 721,000 |
Total liabilities | 36,195,000 | 40,354,000 |
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; 14,409,995 and 15,254,725 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | 144,000 | 153,000 |
Additional paid-in capital | 162,697,000 | 188,218,000 |
Accumulated other comprehensive loss | (130,000) | 544,000 |
Retained earnings | 116,237,000 | 127,336,000 |
Total shareholders’ equity | 279,208,000 | 315,163,000 |
Total Liabilities and Shareholders’ Equity | $ 315,403,000 | $ 355,517,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2024 | Sep. 30, 2023 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 500,000 | 500,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued (in shares) | 14,409,995 | 15,254,725 |
Common Stock, Shares, Outstanding (in shares) | 14,409,995 | 15,254,725 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net sales | $ 36,910,000 | $ 71,809,000 | $ 71,140,000 | $ 157,751,000 |
Cost of sales | 34,078,000 | 48,246,000 | 63,611,000 | 103,539,000 |
Gross profit | 2,832,000 | 23,563,000 | 7,529,000 | 54,212,000 |
Operating expenses | ||||
Selling, general and administrative | 12,573,000 | 11,508,000 | 25,432,000 | 24,266,000 |
Income from operations | (9,741,000) | 12,055,000 | (17,903,000) | 29,946,000 |
Net investment income | 1,849,000 | 1,395,000 | 3,918,000 | 1,698,000 |
Interest expense | (102,000) | (112,000) | (228,000) | (356,000) |
Income before income taxes | (7,994,000) | 13,338,000 | (14,213,000) | 31,288,000 |
Income tax expense | (2,083,000) | 2,974,000 | (3,034,000) | 6,669,000 |
Net income | $ (5,911,000) | $ 10,364,000 | $ (11,179,000) | $ 24,619,000 |
Net income per share Basic (in dollars per share) | $ (0.4) | $ 0.67 | $ (0.75) | $ 1.68 |
Net income per share Diluted (in dollars per share) | $ (0.4) | $ 0.67 | $ (0.75) | $ 1.67 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 14,629,489 | 15,233,848 | 14,922,811 | 14,693,829 |
Diluted (in shares) | 14,629,489 | 15,260,769 | 14,922,811 | 14,766,938 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net (loss) income | $ (5,911) | $ 10,364 | $ (11,179) | $ 24,619 |
Other comprehensive income, net of tax | ||||
Unrealized gain on available-for-sale investments | (45) | 197 | 245 | 339 |
Unrealized gain on foreign currency translation | (301) | 302 | 429 | 1,326 |
Total other comprehensive income | (346) | 499 | 674 | 1,665 |
Total comprehensive (loss) income | $ (6,257) | $ 10,863 | $ (10,505) | $ 26,284 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance (in shares) at Sep. 30, 2022 | 13,818,000 | |||||||||
Balance at Sep. 30, 2022 | $ 138 | $ 54,539 | $ (1,898) | $ 94,803 | $ 147,582 | |||||
Stock-based compensation expense | $ 0 | 1,444 | 0 | 0 | 1,444 | |||||
Issuance of common stock under equity compensation plans (in shares) | 51,000 | |||||||||
Issuance of common stock under equity compensation plans | $ 1 | 954 | 0 | 0 | 954 | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | 10,000 | |||||||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants | $ 0 | (954) | 0 | 0 | (954) | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 10,000 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (471) | 0 | 0 | (471) | |||||
Other comprehensive income (loss) | 0 | 0 | 1,665 | 0 | 1,665 | |||||
Net (loss) income | $ 0 | 0 | 0 | 24,619 | 24,619 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 5,000 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 299 | 0 | 0 | 299 | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | (10,000) | |||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 5,000 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 299 | 0 | 0 | 299 | |||||
Issuance of common stock, net (in shares) | 1,380,000 | |||||||||
Issuance of common stock, net | $ 14 | 130,248 | 0 | 0 | 130,262 | |||||
Balance (in shares) at Mar. 31, 2023 | 15,255,000 | |||||||||
Balance at Mar. 31, 2023 | $ 153 | 186,058 | (234) | 119,422 | 305,399 | |||||
Balance (in shares) at Dec. 31, 2022 | 15,218 | |||||||||
Balance at Dec. 31, 2022 | $ 152 | 185,404 | (733) | 109,058 | 293,881 | |||||
Stock-based compensation expense | $ 0 | 784 | 0 | 0 | 784 | |||||
Issuance of common stock under equity compensation plans (in shares) | 33,000 | |||||||||
Issuance of common stock under equity compensation plans | $ 1 | 0 | 0 | 0 | 1 | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 3,000 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (130) | 0 | 0 | (130) | |||||
Other comprehensive income (loss) | 0 | 0 | 499 | 0 | 499 | |||||
Net (loss) income | $ 0 | 0 | 0 | 10,364 | 10,364 | |||||
Balance (in shares) at Mar. 31, 2023 | 15,255,000 | |||||||||
Balance at Mar. 31, 2023 | $ 153 | 186,058 | (234) | 119,422 | 305,399 | |||||
Balance (in shares) at Dec. 31, 2022 | 15,218 | |||||||||
Balance at Dec. 31, 2022 | $ 152 | 185,404 | (733) | 109,058 | 293,881 | |||||
Balance (in shares) at Dec. 31, 2023 | 14,939,000 | |||||||||
Balance at Dec. 31, 2023 | $ 149 | 177,322 | 476 | 122,148 | 300,095 | |||||
Balance (in shares) at Sep. 30, 2023 | 15,255,000 | |||||||||
Balance at Sep. 30, 2023 | $ 0 | $ 153 | $ 0 | 188,218 | $ 0 | (544) | $ 80 | 127,336 | $ 80 | 315,163 |
Stock-based compensation expense | $ 0 | 2,284 | 0 | 0 | 2,284 | |||||
Issuance of common stock under equity compensation plans (in shares) | 132,000 | |||||||||
Issuance of common stock under equity compensation plans | $ 1 | (1) | 0 | 0 | 0 | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | 9,000 | |||||||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants | $ 0 | (240) | 0 | 0 | (240) | |||||
Repurchase of common stock (in shares) | (979,000) | |||||||||
Repurchase of common stock | $ (10) | (27,804) | 0 | 0 | (27,814) | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 1,000 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (9) | 0 | 0 | (9) | |||||
Other comprehensive income (loss) | 0 | 674 | 0 | 674 | ||||||
Net (loss) income | $ 0 | 0 | 0 | (11,179) | (11,179) | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 10,000 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 250 | 0 | 0 | 250 | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | (9,000) | |||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 10,000 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 250 | 0 | 0 | 250 | |||||
Balance (in shares) at Mar. 31, 2024 | 14,410,000 | |||||||||
Balance at Mar. 31, 2024 | $ 144 | 162,697 | 130 | 116,237 | 279,208 | |||||
Balance (in shares) at Dec. 31, 2023 | 14,939,000 | |||||||||
Balance at Dec. 31, 2023 | $ 149 | 177,322 | 476 | 122,148 | 300,095 | |||||
Stock-based compensation expense | $ 0 | 1,012 | 0 | 0 | 1,012 | |||||
Issuance of common stock under equity compensation plans (in shares) | 14,000 | |||||||||
Issuance of common stock under equity compensation plans | $ 0 | 0 | 0 | 0 | 0 | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | 0 | |||||||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants | $ 0 | (4) | 0 | 0 | (4) | |||||
Repurchase of common stock (in shares) | (544,000) | |||||||||
Repurchase of common stock | $ (5) | (15,624) | 0 | 0 | (15,629) | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 1,000 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (9) | 0 | 0 | (9) | |||||
Other comprehensive income (loss) | 0 | 0 | (346) | 0 | (346) | |||||
Net (loss) income | $ 0 | 0 | 0 | (5,911) | (5,911) | |||||
Repurchase of shares for payment of withholding taxes for vested restricted stock grants (in shares) | 0 | |||||||||
Balance (in shares) at Mar. 31, 2024 | 14,410,000 | |||||||||
Balance at Mar. 31, 2024 | $ 144 | $ 162,697 | $ 130 | $ 116,237 | $ 279,208 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net (loss) income | $ (11,179) | $ 24,619 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,572 | 2,822 |
Amortization of discount on investments | (2,196) | (1,139) |
Deferred taxes | (195) | (35) |
Stock-based compensation | 2,284 | 1,444 |
Changes in operating assets and liabilities, net of acquired amounts: | ||
Accounts receivable | 6,600 | 16,353 |
Inventories, net | 14,414 | (17,243) |
Other assets | (5,951) | (2,407) |
Accounts payable and accrued expenses | (2,752) | (14,273) |
Net cash provided by operating activities | 4,597 | 10,141 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment and intangible assets | (4,389) | (4,797) |
Purchases of investments | (47,748) | (99,126) |
Proceeds from maturities of investments | 53,293 | 100,743 |
Net cash provided by (used in) investing activities | 1,156 | (3,180) |
Cash flows from financing activities | ||
Repayment of long-term debt | 0 | (16,700) |
Proceeds from issuance of common stock under employee stock purchase plan | 250 | 299 |
Repurchase of shares for payment of withholding taxes for stock grants | (240) | (954) |
Tax withholding and proceeds related to exercise of stock options | (9) | (471) |
Issuance of stock under equity compensation plans | 0 | 954 |
Net proceeds from issuance of common stock | 0 | 130,262 |
Repurchase of common stock | 27,814 | 0 |
Net cash (used in) provided by financing activities | (27,813) | 113,390 |
Effect of exchange rates on cash | 51 | 80 |
(Decrease) increase in cash and cash equivalents | (22,009) | 120,431 |
Cash and cash equivalents, beginning of year | 37,827 | 16,650 |
Cash and cash equivalents, end of year | 15,818 | 137,081 |
Supplemental disclosures for cash flow information | ||
Cash paid during the year for income taxes | 157 | 10,211 |
Cash paid for interest | 172 | 266 |
Non-cash financing activities | ||
Cashless exercise of stock options | $ 19 | $ 510 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1. Summary of Significant Accounting Policies Unless the context otherwise requires, for purposes of this Quarterly Report on Form 10-Q, the words “we,” “us,” “our,” the “Company,” and “Clearfield,” refer to Clearfield, Inc. and subsidiaries. Basis of Presentation The accompanying (a) consolidated balance sheet as of September 30, 2023, which has been derived from audited financial statements, and (b) unaudited interim consolidated financial statements as of and for the three and six months ended March 31, 2024 have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations, and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns, seasonality, and other factors. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023. In preparation of the Company’s consolidated 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. Principles of Consolidation The consolidated financial statements include the accounts of Clearfield, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Recently Adopted Accounting Pronouncements On October 1, 2023, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments, New Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Note 2 - Net Income (Loss) Per
Note 2 - Net Income (Loss) Per Share | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2. Net Income (Loss) Per Share Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income (loss) divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive. The following is a reconciliation of the numerator and denominator of the net income (loss) per common share computations for the three and six months ended March 31, 2024, and 2023: Three Months Ended March 31, Six Months Ended March 31, (In thousands, except for share data 2024 2023 2024 2023 Net (loss) income $ (5,911 ) $ 10,364 $ (11,179 ) $ 24,619 Weighted average common shares 14,629,489 15,233,848 14,922,811 14,693,829 Dilutive potential common shares - 26,921 - 73,109 Weighted average dilutive common shares outstanding 14,629,489 15,260,769 14,922,811 14,766,938 Net (loss) income per common share: Basic $ (0.40 ) $ 0.67 $ (0.75 ) $ 1.68 Diluted $ (0.40 ) $ 0.67 $ (0.75 ) $ 1.67 |
Note 3 - Cash and Cash Equivale
Note 3 - Cash and Cash Equivalents | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 3. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The following table presents the Company’s cash and cash equivalents balances: (In thousands) March 31, 2024 September 30, 2023 Cash and cash equivalents: Cash, including money market accounts $ 2,893 $ 11,360 Money market funds 12,925 26,467 Total cash and cash equivalents $ 15,818 $ 37,827 |
Note 4 - Investments
Note 4 - Investments | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Investment [Text Block] | Note 4. Investments The Company invests in certificates of deposit that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) and United States Treasury securities with terms of not more than five years, as well as money market funds. The Company’s investment portfolio is classified as available-for-sale, which is reported at fair value. The unrealized gain or loss on investment securities is recorded in other comprehensive income (loss), net of tax. Realized gains and losses on available-for-sale securities are recognized upon sale and are included in net investment income in the consolidated statement of earnings. As of March 31, 2024, available-for-sale investments consisted of the following: March 31, 2024 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S. Treasury securities $ 124,960 $ 1 $ (81 ) $ 124,880 Certificates of deposit 2,221 - (12 ) 2,209 Investment securities – short-term $ 127,181 $ 1 $ (93 ) $ 127,089 Long-Term U.S Treasury securities $ 6,737 $ - $ (442 ) $ 6,295 Certificates of deposit 248 - (20 ) 228 Investment securities – long-term $ 6,985 $ - $ (462 ) $ 6,523 As of September 30, 2023, available-for-sale investments consist of the following: September 30, 2023 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S treasury securities $ 122,534 $ - $ (143 ) $ 122,391 Certificates of deposit 8,014 - (119 ) 7,895 Investment securities – short-term $ 130,548 $ - $ (262 ) $ 130,286 Long-Term U.S treasury securities $ 6,719 $ - $ (596 ) $ 6,123 Certificates of deposit 248 - (28 ) 220 Investment securities – long-term $ 6,967 $ - $ (624 ) $ 6,343 As of March 31, 2024, investments in debt securities in an unrealized loss position were as follows: In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S treasury securities $ 124,880 $ (84 ) $ 6,295 $ (438 ) Certificates of deposit 245 - 2,192 (32 ) Investment securities $ 125,125 $ (84 ) $ 8,487 $ (470 ) As of September 30, 2023, investments in debt securities in an unrealized loss position were as follows: In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S treasury securities $ 112,908 $ (131 ) $ 15,606 $ (608 ) Certificates of deposit 245 - 7,870 (147 ) Investment securities $ 113,153 $ (131 ) $ 23,476 $ (755 ) As of March 31, 2024, there were 18 securities in an unrealized loss position which is due to the market paying a higher interest rate than the coupon rate on these securities. As of September 30, 2023, there were 42 securities in an unrealized loss position which is due to the securities paying lower interest rates than the market. As of March 31, 2024 and September 30, 2023, there are no securities which are other than temporarily impaired as the Company intends to hold these securities until their value recovers and there is negligible credit risk due to the nature of the securities which are backed by the FDIC and the U.S. federal government. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 5. Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the market price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair value of U.S. treasury securities and certificates of deposit based on valuations provided by an external pricing service, which obtains them from a variety of industry standard data providers. The Company’s investments are categorized according to the three-level fair value hierarchy which distinguishes between observable and unobservable inputs, in one of the following levels: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those with fair value measurements that are determined using pricing models, discounted cash flow valuation or similar techniques, as well as significant management judgment or estimation. The following provides information regarding fair value measurements for the Company’s investment securities as of March 31, 2024, according to the three-level fair value hierarchy: Fair Value Measurements as of March 31, 2024 ( In thousands Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 12,925 $ 12,925 $ - $ - Total cash equivalents $ 12,925 $ 12,925 $ - $ - Investment securities: Certificates of deposit $ 2,437 $ - $ 2,437 $ - U.S. Treasury securities 131,175 - 131,175 - Total investment securities $ 133,612 $ - $ 133,612 $ - The following provides information regarding fair value measurements for the Company’s investment securities as of September 30, 2023, according to the three-level fair value hierarchy: Fair Value Measurements as of September 30, 2023 ( In thousands Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 26,467 $ 26,467 $ - $ - Total cash equivalents $ 26,467 $ 26,467 $ - $ - Investment securities: Certificates of deposit $ 8,115 $ - $ 8,115 $ - U.S. Treasury securities 128,514 - 128,514 - Total investment securities $ 136,629 $ - $ 136,629 $ - During the three and six months ended March 31, 2024, and the year ended September 30, 2023, the Company owned no Non-financial assets such as equipment and leasehold improvements, goodwill and intangible assets, and right-of-use assets for operating leases are subject to non-recurring fair value measurements if they are deemed impaired. The Company had no re-measurements of non-financial assets to fair value in the three or six months ended March 31, 2024, and the year ended September 30, 2023. |
Note 6 - Other Comprehensive In
Note 6 - Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 6. Other Comprehensive Income (Loss) Changes in components of other comprehensive income (loss), net of tax, are as follows: (In thousands) Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balances at September 30, 2023 $ (682 ) $ 138 $ (544 ) Other comprehensive income for the three months ended December 31, 2023 291 729 1,020 Balances at December 31, 2023 $ (391 ) $ 867 $ 476 Other comprehensive (loss) for the three months ended March 31, 2024 (45 ) (301 ) (346 ) Balances at March 31, 2024 $ (436 ) $ 566 $ 130 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 7. Stock-Based Compensation The Company recorded $1,012,000 and $2,284,000 of compensation expense related to current and past restricted stock grants, non-qualified stock options, performance stock units, and the Company’s Employee Stock Purchase Plan (“ESPP”) for the three and six months ended March 31, 2024. For the three months ended March 31, 2024, $952,000 of this expense is included in selling, general and administrative expense, and $60,000 is included in cost of sales. For the six months ended March 31, 2024, $2,180,000 of this expense is included in selling, general and administrative expense, and $104,000 is included in cost of sales. The Company recorded $784,000 and $1,444,000 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 and six months ended March 31, 2023. For the three months ended March 31, 2023, $736,000 of this expense is included in selling, general and administrative expense, and $48,000 is included in cost of sales. For the six months ended March 31, 2023, $1,361,000 of this expense is included in selling, general and administrative expense, and $83,000 is included in cost of sales. As of March 31, 2024, $6,779,000 of total unrecognized compensation expense related to non-vested restricted stock awards and stock options is expected to be recognized over a period of approximately 2.6 years. Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of stock options granted. During the six months ended March 31, 2024, the Company granted employees non-qualified stock options to purchase an aggregate of 111,299 shares of common stock with a weighted average contractual term of five three The fair value of stock option awards during the six months ended March 31, 2024, was estimated as of the respective grant dates using the assumptions listed below: Six months ended March 31, 2024 Dividend yield 0.00 % Expected volatility 61.71 % Risk-free interest rate 4.55 % Expected life 3.5 years Vesting period 3 years 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-coupon U.S. governmental bonds with a remaining life similar to the expected option term. Options are granted with exercise prices 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 months ended March 31, 2024: Number of options Weighted average exercise price Outstanding as of September 30, 2023 254,124 $ 37.04 Granted 111,299 26.18 Exercised (1,501 ) 12.40 Forfeited or expired (4,345 ) 38.13 Outstanding as of March 31, 2024 359,577 $ 33.77 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, 2024, the weighted average remaining contractual term for all outstanding and exercisable stock options was 1.92 years and their aggregate intrinsic value was $1,452,000. Restricted Stock During the six months ended March 31, 2024, the Company granted employees restricted stock awards totaling 136,157 shares of common stock, with a vesting term of approximately three Restricted stock transactions during the six months ended March 31, 2024, are summarized as follows: Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2023 90,575 $ 49.92 Granted 136,157 26.43 Vested (37,569 ) 54.35 Forfeited (2,967 ) 31.48 Unvested as of March 31, 2024 186,196 $ 30.98 Performance Stock During the six months ended March 31, 2024, the Company granted 47,745 performance stock units which entitles the participant to receive the same number of shares of the Company’s common stock, upon achievement of a fiscal year 2024 performance goal. The Company has determined the fair value per underlying share of the performance stock unit awards to be $26.18 as of the grant date. Compensation expense for the performance stock units is measured using the fair value of our common stock at the grant date. As of March 31, 2024, the Company does not believe it is probable that these performance stock unit awards will vest based on achievement of established performance criteria, and previously recognized compensation expense related to these awards has been reversed to $0. The Company did not Bonus Stock The Company did not 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 those participating employees the ability to purchase the Company’s common stock on a voluntary after-tax basis. Employees may purchase the Company’s common stock at a price that is no less than the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in six-month phases, with phases beginning on January 1 and July 1 of each calendar year. For the phase that ended on December 31, 2023, employees purchased 10,104 shares at a price of $24.72 per share. After the employee purchase on December 31, 2023, 158,147 shares of common stock were available for future purchase under the ESPP. |
Note 8 - Revenue
Note 8 - Revenue | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 8. Revenue 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, including 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 customers in Europe, the Caribbean, Canada, Central and South America. Revenues related to the following geographic areas were as follows for the three and six months ended: Three Months Ended March 31, Six Months Ended March 31, (In thousands) 2024 2023 2024 2023 United States $ 26,963 $ 58,671 $ 54,524 $ 134,409 All other countries 9,947 13,138 16,616 23,342 Total Net Sales $ 36,910 $ 71,809 $ 71,140 $ 157,751 The Company sells its products to the Broadband Service Provider marketplace. In addition, the Company provides Legacy 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 and six months ended: Three Months Ended March 31, Six Months Ended March 31, (In thousands) 2024 2023 2024 2023 Broadband service providers 93 % 96 % 93 % 97 % Other customers 7 % 4 % 7 % 3 % 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 and Tier 3 customers; National Carriers, which includes large national and global wireline and wireless providers, also referred to as Tier 1 customers; Large Regional Service Providers with a national footprint; Multiple System Operators (“MSO’s”), which include cable television companies; and International customers. Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition, and collateral is generally not required. Accounts that are outstanding longer than the contractual payment terms are considered past due. On October 1, 2023, the Company adopted the cumulative expected credit loss model (“CECL”). Upon adoption of the CECL, the Company measures the allowance for credit losses using an expected credit loss model, which uses a lifetime expected credit loss allowance for all accounts receivable. To measure the expected credit losses, accounts receivable are grouped based on shared credit risk characteristics and the days past due. In calculating an allowance for credit losses, the Company uses its historical experience, external indicators, and forward-looking information to calculate expected credit losses using an aging method. The Company assesses impairment of accounts receivable on a collective basis as they possess shared credit risk characteristics which have been grouped based on the days past due. The expected loss rates are based on the Company’s historical credit losses experience. The historical loss rates are adjusted to reflect current and forward-looking information. As of March 31, 2024, the Company’s allowance for credit losses was $0. As of September 30, 2023, prior to the adoption of CECL, the Company’s allowance for doubtful accounts was $79,000. Upon the adoption of CECL, the prior allowance for doubtful accounts was recorded as a benefit to beginning retained earnings. See Note 9 “Major Customer Concentration” for further information regarding accounts receivable and net sales. |
Note 9 - Major Customer Concent
Note 9 - Major Customer Concentration | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 9. Major Customer Concentration For the three months ended March 31, 2024, the Company had two two For the three months ended March 31, 2023, the Company had one one As of March 31, 2024, three three |
Note 10 - Inventories
Note 10 - Inventories | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 10. Inventories Inventories consist of finished goods, raw materials, and work-in-process and are stated at average cost, subject to the lower of cost or net realizable value. Certain components of the Company’s inventory classified as raw materials or finished goods can be used as a component to manufacture products or can be sold directly to the customer. Inventory is valued using material costs, labor charges, and allocated factory overhead charges and consists of the following: (In thousands) March 31, 2024 September 30, 2023 Raw materials $ 64,830 $ 73,657 Work-in-process 2,052 1,462 Finished goods 31,653 29,696 Inventories, gross 98,535 104,815 Inventory reserve (14,550 ) (6,760 ) Inventories, net $ 83,985 $ 98,055 Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on the Company’s usage and inventory age, relative to historical experience. |
Note 11 - Goodwill and Intangib
Note 11 - Goodwill and Intangibles | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 11. Goodwill and Intangibles The Company tests Goodwill for impairment annually at fiscal year-end, or more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company assesses qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The result of the analysis performed as of September 30, 2023, did not The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not exceeding 20 years. As of March 31, 2024, the Company has 51 patents granted and multiple pending applications both inside and outside the United States. 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 and the acquisition of Nestor Cables in fiscal year 2022. The Company analyzes its intangible assets for impairment annually or at interim periods when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of September 30, 2023, did not Goodwill and other intangible assets, net of accumulated amortization, as of March 31, 2024 and September 30, 2023 were as follows: (In thousands) March 31, 2024 September 30, 2023 Goodwill $ 6,568 $ 6,528 Other intangibles, net 6,219 6,092 Total goodwill and other intangibles, net $ 12,787 $ 12,620 The changes in the carrying amount of goodwill by reportable segment for the six months ended March 31, 2024 and March 31, 2023 were as follows: (In thousands) Clearfield, Inc. Nestor Total Balance as of September 30, 2023 $ 4,708 $ 1,820 $ 6,528 Currency translation effect on foreign goodwill balances - 40 40 Balance as of March 31, 2024 $ 4,708 $ 1,860 $ 6,568 The components of other intangible assets were as follows: March 31, 2024 (In thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Amount Customer relationships $ 4,845 $ 1,715 $ 3,130 Certifications 584 334 250 Trademarks 1,290 682 608 Patents 1,172 192 980 Developed technology 295 - 295 Other 6 6 - Software 3,292 2,336 956 Totals $ 11,484 $ 5,265 $ 6,219 September 30, 2023 (In thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Amount Customer relationships $ 4,894 $ 1,582 $ 3,312 Certifications 584 267 317 Trademarks 1,333 700 633 Patents 1,119 165 954 Developed technology 311 22 289 Other 6 6 - Software 2,613 2,026 587 Totals $ 10,860 $ 4,768 $ 6,092 Amortization expense related to these assets was $663,000 and $555,000 for the six months ended March 31, 2024 and March 31, 2023, respectively. Estimated future amortization expense for identifiable intangibles during the next five years is as follows: (In thousands) Estimated amortization expense FY 2024 (remaining) $ 653 FY 2025 953 FY 2026 678 FY 2027 393 FY 2028 373 Thereafter 3,169 Total $ 6,219 |
Note 12 - Segment Reporting
Note 12 - Segment Reporting | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 12. Segment Reporting The Company’s reportable segments are based on the Company’s method of internal reporting. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is defined based in part on the reporting and review process used by the Company’s Chief Executive Officer. The Company has two The following table summarizes the amounts between the two Three months ended March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 27,600 $ 9,310 $ - $ 36,910 Revenue from internal customers (Clearfield, Inc.) - 218 (218 ) - Net investment income 1,906 2 (59 ) 1,849 Interest expense - 161 (59 ) 102 Depreciation and amortization 1,551 369 - 1,920 Stock based compensation 940 72 - 1,012 Income tax benefit (1,825 ) (258 ) - (2,083 ) Net income (loss) (5,001 ) (913 ) 3 (5,911 ) Capital expenditures 1,806 165 - 1,971 Six months ended March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 55,700 $ 15,440 $ - $ 71,140 Revenue from internal customers (Clearfield, Inc.) - 1,101 (1,101 ) - Net investment income 4,032 4 (118 ) 3,918 Interest expense - 346 (118 ) 228 Depreciation and amortization 2,848 724 - 3,572 Stock based compensation 2,161 123 - 2,284 Income tax benefit (2,408 ) (626 ) - (3,034 ) Net loss (8,384 ) (2,673 ) (122 ) (11,179 ) Capital expenditures 3,093 1,296 - 4,389 Three months ended March 31, 2023 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 60,451 $ 11,358 $ - $ 71,809 Revenue from internal customers (Clearfield, Inc.) - 1,737 (1,737 ) - Net investment income 1,394 1 - 1,395 Interest expense - 112 - 112 Depreciation and amortization 1,099 359 - 1,458 Stock based compensation 784 - - 784 Income taxes 2,873 101 - 2,974 Net income (loss) 10,395 402 (433 ) 10,364 Capital expenditures 2,481 98 - 2,579 Six months ended March 31, 2023 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 138,806 $ 18,945 $ - $ 157,751 Revenue from internal customers (Clearfield, Inc.) - 2,923 (2,923 ) - Net investment income 1,694 4 - 1,698 Interest expense 170 186 - 356 Depreciation and amortization 2,110 712 - 2,822 Stock based compensation 1,444 - - 1,444 Income taxes 6,646 23 - 6,669 Net income (loss) 25,113 92 (586 ) 24,619 Capital expenditures 4,490 308 - 4,798 The following table summarizes the amounts between the two March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Goodwill $ 4,709 $ 1,859 $ - $ 6,568 Total assets $ 297,981 $ 40,960 $ (23,538 ) $ 315,403 As of September 30, 2023 (in thousands Clearfield Nestor Cables Eliminations Consolidated Goodwill $ 4,709 $ 1,819 $ - $ 6,528 Total assets $ 335,412 $ 43,550 $ (23,445 ) $ 355,517 |
Note 13 - Financing Receivables
Note 13 - Financing Receivables | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 13. Financing Receivables Nestor Cables factors certain of its accounts receivable, with recourse provisions that are accounted for as a secured borrowing. Nestor Cables has a total factoring liability of $5,931,000 as of March 31, 2024. Nestor receives cash for 80% of the receivable balance from the bank initially and the remaining 20% when the invoice is paid up to a limit of €12.5 million ($13.5 million as of March 31, 2024). Due to the conditions mentioned above, these transactions do not qualify as a sale and are thus accounted for as secured borrowing. The contractual interest rate on Nestor’s factoring arrangements is the 3-month Euribor rate plus a range of 0.75% to 1.3%. The average interest rate for the three months ended March 31, 2024, was 5.34%. The average interest rate for the six months ended March 31, 2024, was 6.53%. These agreements are indefinite with a termination notice period ranging from zero one |
Note 14 - Income Taxes
Note 14 - Income Taxes | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 14. Income Taxes For the three and six months ended March 31, 2024, the Company recorded an income tax benefit of $2,083,000 and $3,034,000, reflecting an effective tax rate of 26.1% and 21.3%, respectively. The difference between the effective tax rate and the statutory tax rate for the three and six months ended March 31, 2024, was primarily due to decreased pretax book income and discrete events during the quarter, including excess tax shortfall from vesting of restricted stock. For the three and six months ended March 31, 2023, the Company recorded income tax expense of $2,974,000 and $6,669,000 reflecting an effective tax rate of 22.3% and 21.3%, respectively. The difference between the effective tax rate and the statutory tax rate for the three and six months ended March 31, 2023, was primarily related to excess tax benefits from non-qualified stock option exercises and vesting of restricted stock, Section 162(m) compensation deduction limitations, foreign derived intangibles income (FDII) deduction, and research and development credits. 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” criteria by assessing the available positive and negative factors surrounding its recoverability and determined that as of March 31, 2024, and September 30, 2023, a valuation allowance against the deferred tax assets is not required. The Company will continue to assess the need for a valuation allowance based on changes in assumptions of estimated future income and other factors in future periods. As of March 31, 2024, the Company does not |
Note 15 - Leases
Note 15 - Leases | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 15. Leases The Company leases an 85,000 square foot facility at 7050 Winnetka Avenue North, Brooklyn Park, Minnesota consisting of corporate offices, manufacturing, and warehouse space. The lease term is ten The Company indirectly leases an approximately 318,000 square foot manufacturing facility in Tijuana, Mexico that operates as a maquiladora. The lease term commenced in March 2022 and is seven five two five The Company elected to change maquiladoras, which resulted in the landlord and the previous maquiladora terminating the lease for the facility in April 2024, and the landlord leasing the facility to the Company’s new maquiladora effective April 1, 2024. The new lease has a term of seven five two five The Company leases a 105,000 square foot warehouse in Brooklyn Park, Minnesota. The lease term commenced in March 2022 and is five five Nestor Cables leases an approximately 25,000 square foot manufacturing facility in Oulu, Finland, which is utilized for the operations of Nestor Cables. The original lease term ended on October 31, 2022, but auto renews indefinitely until terminated with two years written notice. It is not reasonably certain that the Company will not exercise the termination option. The lease calls for monthly rental payments of approximately €40,000. Rent is increased each year on January 1st based upon the cost-of-living index published by the Finnish government. Nestor Cables leases an approximately 49,000 square foot manufacturing facility in Tabasalu, Estonia, which is utilized for the operations of Nestor Cables Baltics. Additionally, the lease grants Nestor Cables the option to lease an expansion facility that is to be constructed no later than December 2024. The expansion facility will be constructed on the same premises as the existing facility. Nestor exercised the option to lease the expansion facility and the lease term of the existing facility will be 10 years commencing December 2024. The lease calls for monthly rental payments of approximately €20,400 until April 2024 and €25,000 afterwards. Rent is increased each year on May 1st based upon the cost-of-living index published by the Estonian government and capped at 5%. 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 contain any material residual value guarantees or material restrictive covenants. Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three and six months ended: Operating lease expense within: (in thousands) Three Months Ended March 31, Six Months Ended March 31, 2024 2023 2024 2023 Cost of sales $ 1,055 $ 995 $ 2,113 $ 1,958 Selling, general and administrative 82 63 159 119 Total lease expense $ 1,137 $ 1,058 $ 2,272 $ 2,077 Future maturities of lease liabilities were as follows as of March 31, 2024 (in thousands): FY2024(Remaining) $ 1,935 FY2025 3,964 FY2026 3,250 FY2027 1,581 FY2028 393 Thereafter 2,859 Total lease payments 13,982 Less: Interest (1,123 ) Present value of lease liabilities $ 12,859 The weighted average term and weighted average discount rate for the Company’s leases as of March 31, 2024, were 4.79 years and 3.80%, respectively, compared to 3.79 years and 3.23%, respectively, as of March 31, 2023. For the three and six months ended March 31, 2024, the operating cash outflows from the Company’s leases was $1,049,000 and $2,093,000, respectively, compared to $950,000 and $1,907,000, respectively, for the three and six months ended March 31, 2023. |
Note 16 - Debt
Note 16 - Debt | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 16. Debt In April 2022, the Company entered into a loan agreement and a security agreement with a bank that provides the Company with a $40,000,000 revolving line of credit that is secured by certain of the Company’s U.S. assets. The line of credit matures on April 27, 2025, and borrowed amounts will bear interest at a variable rate of the CME Group one-month term Secured Overnight Financing Rate (“SOFR”) plus 1.85%, but not less than 1.80% per annum. As of March 31, 2024, the outstanding balance on the revolving line of credit was zero and the interest rate was 6.52%. The loan agreement and the security agreement contains customary affirmative and negative covenants and requirements relating to the Company and its operations, including a requirement that the Company maintain a debt service coverage ratio of not less than 1.20 to 1 as of the end of each fiscal year for the fiscal year then ended and maintain a debt to cash flow ratio of not greater than 2 to 1 measured as of the end of each of the Company’s fiscal quarters for the trailing twelve (12) month period. Debt service coverage ratio is the ratio of Cash Available for Debt Service to Debt Service, each as defined in the loan agreement. Debt and Cash Flow are also as defined in the loan agreement for the purposes of the debt to cash flow ratio covenant. As of March 31, 2024, the Company was not in compliance with the debt to cash flow ratio covenant and has subsequently received a covenant waiver from the bank. The line of credit is collateralized by Clearfield, Inc.’s assets of $297,981,000 as of March 31, 2024. During March 2021, Nestor Cables entered into a loan agreement, providing a $2 million senior loan with a term of three |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 6 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 17. Subsequent Events In April 2024, the Company terminated the lease for its approximately 318,000 square foot manufacturing facility in Tijuana, Mexico and signed a new lease for the same facility. The new lease has a term of seven five two five |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Insider Trading Arr Line Items | ||
Material Terms of Trading Arrangement [Text Block] | During the quarter ended March 31, 2024, none | |
Rule 10b5-1 Arrangement Terminated [Flag] | false | |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false | |
Rule 10b5-1 Arrangement Adopted [Flag] | false | |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying (a) consolidated balance sheet as of September 30, 2023, which has been derived from audited financial statements, and (b) unaudited interim consolidated financial statements as of and for the three and six months ended March 31, 2024 have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations, and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns, seasonality, and other factors. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023. In preparation of the Company’s consolidated 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. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Clearfield, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements On October 1, 2023, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments, New Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Note 2 - Net Income (Loss) Pe_2
Note 2 - Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, (In thousands, except for share data 2024 2023 2024 2023 Net (loss) income $ (5,911 ) $ 10,364 $ (11,179 ) $ 24,619 Weighted average common shares 14,629,489 15,233,848 14,922,811 14,693,829 Dilutive potential common shares - 26,921 - 73,109 Weighted average dilutive common shares outstanding 14,629,489 15,260,769 14,922,811 14,766,938 Net (loss) income per common share: Basic $ (0.40 ) $ 0.67 $ (0.75 ) $ 1.68 Diluted $ (0.40 ) $ 0.67 $ (0.75 ) $ 1.67 |
Note 3 - Cash and Cash Equiva_2
Note 3 - Cash and Cash Equivalents (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | (In thousands) March 31, 2024 September 30, 2023 Cash and cash equivalents: Cash, including money market accounts $ 2,893 $ 11,360 Money market funds 12,925 26,467 Total cash and cash equivalents $ 15,818 $ 37,827 |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | March 31, 2024 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S. Treasury securities $ 124,960 $ 1 $ (81 ) $ 124,880 Certificates of deposit 2,221 - (12 ) 2,209 Investment securities – short-term $ 127,181 $ 1 $ (93 ) $ 127,089 Long-Term U.S Treasury securities $ 6,737 $ - $ (442 ) $ 6,295 Certificates of deposit 248 - (20 ) 228 Investment securities – long-term $ 6,985 $ - $ (462 ) $ 6,523 September 30, 2023 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S treasury securities $ 122,534 $ - $ (143 ) $ 122,391 Certificates of deposit 8,014 - (119 ) 7,895 Investment securities – short-term $ 130,548 $ - $ (262 ) $ 130,286 Long-Term U.S treasury securities $ 6,719 $ - $ (596 ) $ 6,123 Certificates of deposit 248 - (28 ) 220 Investment securities – long-term $ 6,967 $ - $ (624 ) $ 6,343 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block] | In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S treasury securities $ 124,880 $ (84 ) $ 6,295 $ (438 ) Certificates of deposit 245 - 2,192 (32 ) Investment securities $ 125,125 $ (84 ) $ 8,487 $ (470 ) In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S treasury securities $ 112,908 $ (131 ) $ 15,606 $ (608 ) Certificates of deposit 245 - 7,870 (147 ) Investment securities $ 113,153 $ (131 ) $ 23,476 $ (755 ) |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value Measurements as of March 31, 2024 ( In thousands Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 12,925 $ 12,925 $ - $ - Total cash equivalents $ 12,925 $ 12,925 $ - $ - Investment securities: Certificates of deposit $ 2,437 $ - $ 2,437 $ - U.S. Treasury securities 131,175 - 131,175 - Total investment securities $ 133,612 $ - $ 133,612 $ - Fair Value Measurements as of September 30, 2023 ( In thousands Total Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 26,467 $ 26,467 $ - $ - Total cash equivalents $ 26,467 $ 26,467 $ - $ - Investment securities: Certificates of deposit $ 8,115 $ - $ 8,115 $ - U.S. Treasury securities 128,514 - 128,514 - Total investment securities $ 136,629 $ - $ 136,629 $ - |
Note 6 - Other Comprehensive _2
Note 6 - Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | (In thousands) Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balances at September 30, 2023 $ (682 ) $ 138 $ (544 ) Other comprehensive income for the three months ended December 31, 2023 291 729 1,020 Balances at December 31, 2023 $ (391 ) $ 867 $ 476 Other comprehensive (loss) for the three months ended March 31, 2024 (45 ) (301 ) (346 ) Balances at March 31, 2024 $ (436 ) $ 566 $ 130 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six months ended March 31, 2024 Dividend yield 0.00 % Expected volatility 61.71 % Risk-free interest rate 4.55 % Expected life 3.5 years Vesting period 3 years |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of options Weighted average exercise price Outstanding as of September 30, 2023 254,124 $ 37.04 Granted 111,299 26.18 Exercised (1,501 ) 12.40 Forfeited or expired (4,345 ) 38.13 Outstanding as of March 31, 2024 359,577 $ 33.77 |
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, 2023 90,575 $ 49.92 Granted 136,157 26.43 Vested (37,569 ) 54.35 Forfeited (2,967 ) 31.48 Unvested as of March 31, 2024 186,196 $ 30.98 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, (In thousands) 2024 2023 2024 2023 United States $ 26,963 $ 58,671 $ 54,524 $ 134,409 All other countries 9,947 13,138 16,616 23,342 Total Net Sales $ 36,910 $ 71,809 $ 71,140 $ 157,751 Three Months Ended March 31, Six Months Ended March 31, (In thousands) 2024 2023 2024 2023 Broadband service providers 93 % 96 % 93 % 97 % Other customers 7 % 4 % 7 % 3 % Total Net Sales 100 % 100 % 100 % 100 % |
Note 10 - Inventories (Tables)
Note 10 - Inventories (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | (In thousands) March 31, 2024 September 30, 2023 Raw materials $ 64,830 $ 73,657 Work-in-process 2,052 1,462 Finished goods 31,653 29,696 Inventories, gross 98,535 104,815 Inventory reserve (14,550 ) (6,760 ) Inventories, net $ 83,985 $ 98,055 |
Note 11 - Goodwill and Intang_2
Note 11 - Goodwill and Intangibles (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | (In thousands) March 31, 2024 September 30, 2023 Goodwill $ 6,568 $ 6,528 Other intangibles, net 6,219 6,092 Total goodwill and other intangibles, net $ 12,787 $ 12,620 |
Schedule of Goodwill [Table Text Block] | (In thousands) Clearfield, Inc. Nestor Total Balance as of September 30, 2023 $ 4,708 $ 1,820 $ 6,528 Currency translation effect on foreign goodwill balances - 40 40 Balance as of March 31, 2024 $ 4,708 $ 1,860 $ 6,568 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2024 (In thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Amount Customer relationships $ 4,845 $ 1,715 $ 3,130 Certifications 584 334 250 Trademarks 1,290 682 608 Patents 1,172 192 980 Developed technology 295 - 295 Other 6 6 - Software 3,292 2,336 956 Totals $ 11,484 $ 5,265 $ 6,219 September 30, 2023 (In thousands) Gross Carrying Amount Accumulated Amortization Net Book Value Amount Customer relationships $ 4,894 $ 1,582 $ 3,312 Certifications 584 267 317 Trademarks 1,333 700 633 Patents 1,119 165 954 Developed technology 311 22 289 Other 6 6 - Software 2,613 2,026 587 Totals $ 10,860 $ 4,768 $ 6,092 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (In thousands) Estimated amortization expense FY 2024 (remaining) $ 653 FY 2025 953 FY 2026 678 FY 2027 393 FY 2028 373 Thereafter 3,169 Total $ 6,219 |
Note 12 - Segment Reporting (Ta
Note 12 - Segment Reporting (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 27,600 $ 9,310 $ - $ 36,910 Revenue from internal customers (Clearfield, Inc.) - 218 (218 ) - Net investment income 1,906 2 (59 ) 1,849 Interest expense - 161 (59 ) 102 Depreciation and amortization 1,551 369 - 1,920 Stock based compensation 940 72 - 1,012 Income tax benefit (1,825 ) (258 ) - (2,083 ) Net income (loss) (5,001 ) (913 ) 3 (5,911 ) Capital expenditures 1,806 165 - 1,971 Six months ended March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 55,700 $ 15,440 $ - $ 71,140 Revenue from internal customers (Clearfield, Inc.) - 1,101 (1,101 ) - Net investment income 4,032 4 (118 ) 3,918 Interest expense - 346 (118 ) 228 Depreciation and amortization 2,848 724 - 3,572 Stock based compensation 2,161 123 - 2,284 Income tax benefit (2,408 ) (626 ) - (3,034 ) Net loss (8,384 ) (2,673 ) (122 ) (11,179 ) Capital expenditures 3,093 1,296 - 4,389 Three months ended March 31, 2023 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 60,451 $ 11,358 $ - $ 71,809 Revenue from internal customers (Clearfield, Inc.) - 1,737 (1,737 ) - Net investment income 1,394 1 - 1,395 Interest expense - 112 - 112 Depreciation and amortization 1,099 359 - 1,458 Stock based compensation 784 - - 784 Income taxes 2,873 101 - 2,974 Net income (loss) 10,395 402 (433 ) 10,364 Capital expenditures 2,481 98 - 2,579 Six months ended March 31, 2023 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Revenue from external customers $ 138,806 $ 18,945 $ - $ 157,751 Revenue from internal customers (Clearfield, Inc.) - 2,923 (2,923 ) - Net investment income 1,694 4 - 1,698 Interest expense 170 186 - 356 Depreciation and amortization 2,110 712 - 2,822 Stock based compensation 1,444 - - 1,444 Income taxes 6,646 23 - 6,669 Net income (loss) 25,113 92 (586 ) 24,619 Capital expenditures 4,490 308 - 4,798 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, 2024 Clearfield Nestor Cables Eliminations Consolidated (in thousands) Goodwill $ 4,709 $ 1,859 $ - $ 6,568 Total assets $ 297,981 $ 40,960 $ (23,538 ) $ 315,403 As of September 30, 2023 (in thousands Clearfield Nestor Cables Eliminations Consolidated Goodwill $ 4,709 $ 1,819 $ - $ 6,528 Total assets $ 335,412 $ 43,550 $ (23,445 ) $ 355,517 |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Lessee, Operating Lease Expense [Table Text Block] | Operating lease expense within: (in thousands) Three Months Ended March 31, Six Months Ended March 31, 2024 2023 2024 2023 Cost of sales $ 1,055 $ 995 $ 2,113 $ 1,958 Selling, general and administrative 82 63 159 119 Total lease expense $ 1,137 $ 1,058 $ 2,272 $ 2,077 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | FY2024(Remaining) $ 1,935 FY2025 3,964 FY2026 3,250 FY2027 1,581 FY2028 393 Thereafter 2,859 Total lease payments 13,982 Less: Interest (1,123 ) Present value of lease liabilities $ 12,859 |
Note 2 - Net Income (Loss) Pe_3
Note 2 - Net Income (Loss) Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net income | $ (5,911) | $ 10,364 | $ (11,179) | $ 24,619 |
Weighted average common shares (in shares) | 14,629,489 | 15,233,848 | 14,922,811 | 14,693,829 |
Dilutive potential common shares (in shares) | 0 | 26,921 | 0 | 73,109 |
Weighted average dilutive common shares outstanding (in shares) | 14,629,489 | 15,260,769 | 14,922,811 | 14,766,938 |
Basic (in dollars per share) | $ (0.4) | $ 0.67 | $ (0.75) | $ 1.68 |
Diluted (in dollars per share) | $ (0.4) | $ 0.67 | $ (0.75) | $ 1.67 |
Note 3 - Cash and Cash Equiva_3
Note 3 - Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Cash including money market accounts | $ 2,893 | $ 11,360 |
Money market funds | 12,925 | 26,467 |
Total cash and cash equivalents | $ 15,818 | $ 37,827 |
Note 4 - Investments (Details T
Note 4 - Investments (Details Textual) | Mar. 31, 2024 | Sep. 30, 2023 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 18 | 42 |
Note 4 - Investments - Availabl
Note 4 - Investments - Available-for-sale Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Fair value | $ 133,612 | $ 136,629 |
Short-term US Treasury Securities [Member] | ||
Amortized cost | 124,960 | 122,534 |
Unrealized gains | 1 | 0 |
Unrealized losses | (81) | (143) |
Fair value | 124,880 | 122,391 |
Short-term Certificates of Deposit [Member] | ||
Amortized cost | 2,221 | 8,014 |
Unrealized gains | 0 | 0 |
Unrealized losses | (12) | (119) |
Fair value | 2,209 | 7,895 |
Short-term Investment [Member] | ||
Amortized cost | 127,181 | 130,548 |
Unrealized gains | 1 | 0 |
Unrealized losses | (93) | (262) |
Fair value | 127,089 | 130,286 |
US Treasury Securities [Member] | ||
Amortized cost | 6,719 | |
Unrealized gains | 0 | |
Unrealized losses | (596) | |
Fair value | 6,123 | |
Long-term Certificates of Deposit [Member] | ||
Amortized cost | 248 | 248 |
Unrealized gains | 0 | 0 |
Unrealized losses | (20) | (28) |
Fair value | 228 | 220 |
Long-term Investment [Member] | ||
Amortized cost | 6,985 | 6,967 |
Unrealized gains | 0 | 0 |
Unrealized losses | (462) | (624) |
Fair value | 6,523 | $ 6,343 |
Long-term US Treasury Securities [Member] | ||
Amortized cost | 6,737 | |
Unrealized gains | 0 | |
Unrealized losses | (442) | |
Fair value | $ 6,295 |
Note 4 - Investments - Securiti
Note 4 - Investments - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Fair value unrealized loss, less than 12 months | $ 125,125 | $ 113,153 |
Gross unrealized loss, less than 12 months | (84) | (131) |
Fair value unrealized loss, greater than 12 months | 8,487 | 23,476 |
Gross unrealized loss, greater than 12 months | (470) | (755) |
US Treasury Securities [Member] | ||
Fair value unrealized loss, less than 12 months | 124,880 | 112,908 |
Gross unrealized loss, less than 12 months | (84) | (131) |
Fair value unrealized loss, greater than 12 months | 6,295 | 15,606 |
Gross unrealized loss, greater than 12 months | (438) | (608) |
Certificates of Deposit [Member] | ||
Fair value unrealized loss, less than 12 months | 245 | 245 |
Gross unrealized loss, less than 12 months | 0 | 0 |
Fair value unrealized loss, greater than 12 months | 2,192 | 7,870 |
Gross unrealized loss, greater than 12 months | $ (32) | $ (147) |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Investment securities: | $ 133,612 | $ 136,629 |
Fair Value, Inputs, Level 3 [Member] | ||
Investment securities: | $ 0 | $ 0 |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Cash equivalents | $ 12,925 | $ 26,467 |
Investment securities: | 133,612 | 136,629 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 12,925 | 26,467 |
Investment securities: | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 0 | 0 |
Investment securities: | 133,612 | 136,629 |
Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | 0 | 0 |
Investment securities: | 0 | 0 |
Money Market Funds [Member] | ||
Cash equivalents | 12,925 | 26,467 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 12,925 | 26,467 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | 0 | 0 |
Certificates of Deposit [Member] | ||
Investment securities: | 2,437 | 8,115 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities: | 0 | 0 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities: | 2,437 | 8,115 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities: | 0 | 0 |
US Treasury Securities [Member] | ||
Investment securities: | 131,175 | 128,514 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities: | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities: | 131,175 | 128,514 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities: | $ 0 | $ 0 |
Note 6 - Other Comprehensive _3
Note 6 - Other Comprehensive Income (Loss) - Changes in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Balance | $ 300,095 | $ 315,163 | $ 293,881 | $ 315,163 | $ 147,582 |
Other comprehensive (loss) | (346) | 499 | 674 | 1,665 | |
Balance | 279,208 | 300,095 | 305,399 | 279,208 | 305,399 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | |||||
Balance | (391) | (682) | (682) | ||
Other comprehensive (loss) | (45) | 291 | |||
Balance | (436) | (391) | (436) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance | 867 | 138 | 138 | ||
Other comprehensive (loss) | (301) | 729 | |||
Balance | 566 | 867 | 566 | ||
AOCI Attributable to Parent [Member] | |||||
Balance | 476 | (544) | (733) | (544) | (1,898) |
Other comprehensive (loss) | (346) | 1,020 | |||
Balance | $ 130 | $ 476 | $ (234) | $ 130 | $ (234) |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share-Based Payment Arrangement, Expense | $ 1,012,000 | $ 784,000 | $ 2,284,000 | $ 1,444,000 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 6,779,000 | $ 6,779,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 111,299 | 19,084 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 5 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 26.18 | $ 95.06 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 1 year 11 months 1 day | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | 1,452,000 | $ 1,452,000 | ||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Market Price Percentage, Offering Date | 85% | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 10,104 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price | $ 24.72 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 158,147 | |||||
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) | 136,157 | |||||
Granted (in dollars per share) | $ 26.43 | |||||
Restricted Stock [Member] | Share-Based Payment Arrangement, Employee [Member] | The 2022 Plan [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) | 136,157 | 34,674 | ||||
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) | $ 29.63 | $ 72.26 | ||||
Performance Stock Units [Member] | ||||||
Share-Based Payment Arrangement, Expense | $ 0 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 47,745 | 0 | ||||
Granted (in dollars per share) | $ 26.18 | |||||
Bonus Stock Award [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 9,144 | ||||
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) | $ 104.36 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Share-Based Payment Arrangement, Expense | 952,000 | 736,000 | $ 2,180,000 | $ 1,361,000 | ||
Cost of Sales [Member] | ||||||
Share-Based Payment Arrangement, Expense | $ 60,000 | $ 48,000 | $ 104,000 | $ 83,000 |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation - Valuation Assumptions (Details) | 6 Months Ended |
Mar. 31, 2024 | |
Dividend yield | 0% |
Expected volatility | 61.71% |
Risk-free interest rate | 4.55% |
Expected life in years (Year) | 3 years 6 months |
Vesting period in years (Year) | 3 years |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Options, outstanding (in shares) | 254,124 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 37.04 | |
Granted (in shares) | 111,299 | 19,084 |
Granted (in dollars per share) | $ 26.18 | $ 95.06 |
Exercised (in shares) | (1,501) | |
Exercised (in dollars per share) | $ 12.4 | |
Forfeited or Expired (in shares) | (4,345) | |
Forfeited or Expired (in dollars per share) | $ 38.13 | |
Options, outstanding (in shares) | 359,577 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 33.77 |
Note 7 - Stock-based Compensa_6
Note 7 - Stock-based Compensation - Restricted Stock Transactions (Details) | 6 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Forfeited (in dollars per share) | $ 38.13 |
Weighted-average exercise price, outstanding (in dollars per share) | $ 33.77 |
Restricted Stock [Member] | |
Unvested shares as of September 30, 2022 (in shares) | shares | 90,575 |
Unvested shares as of September 30, 2022 (in dollars per share) | $ 49.92 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares | 136,157 |
Granted (in dollars per share) | $ 26.43 |
Vested (in shares) | shares | (37,569) |
Vested (in dollars per share) | $ 54.35 |
Forfeited (in shares) | shares | (2,967) |
Forfeited (in dollars per share) | $ 31.48 |
Unvested as of June 30, 2023 (in shares) | shares | 186,196 |
Weighted-average exercise price, outstanding (in dollars per share) | $ 30.98 |
Note 8 - Revenue (Details Textu
Note 8 - Revenue (Details Textual) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 79,000 |
Note 8 - Revenue - Disaggregati
Note 8 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Total Net Sales | $ 36,910 | $ 71,809 | $ 71,140 | $ 157,751 |
Total Net Sales | 100% | 100% | 100% | 100% |
Broadband Service Providers [Member] | ||||
Total Net Sales | 93% | 96% | 93% | 97% |
Legacy Customers [Member] | ||||
Total Net Sales | 7% | 4% | 7% | 3% |
UNITED STATES | ||||
Total Net Sales | $ 26,963 | $ 58,671 | $ 54,524 | $ 134,409 |
Non-US [Member] | ||||
Total Net Sales | $ 9,947 | $ 13,138 | $ 16,616 | $ 23,342 |
Note 9 - Major Customer Conce_2
Note 9 - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Revenue Benchmark [Member] | |||||
Number of Major Customers | 2 | 1 | 2 | 1 | |
Revenue Benchmark [Member] | One Customer [Member] | |||||
Concentration Risk, Percentage | 15% | 17% | 17% | 16% | |
Revenue Benchmark [Member] | Customer Two [Member] | |||||
Concentration Risk, Percentage | 11% | 14% | |||
Accounts Receivable [Member] | |||||
Number of Major Customers | 3 | 3 | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration Risk, Percentage | 13% | 13% | |||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentration Risk, Percentage | 15% | 16% | |||
Accounts Receivable [Member] | Customer Three [Member] | |||||
Concentration Risk, Percentage | 10% | 11% |
Note 10 - Inventories - Compone
Note 10 - Inventories - Components of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Raw materials | $ 64,830 | $ 73,657 |
Work-in-process | 2,052 | 1,462 |
Finished goods | 31,653 | 29,696 |
Inventories, gross | 98,535 | 104,815 |
Inventory reserve | (14,550) | (6,760) |
Inventories, net | $ 83,985 | $ 98,055 |
Note 11 - Goodwill and Intang_3
Note 11 - Goodwill and Intangibles (Details Textual) | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Goodwill, Impairment Loss | $ 0 | ||
Number of Patents Granted | 51 | ||
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 0 | ||
Amortization of Intangible Assets | $ 663,000 | $ 555,000 | |
Patents [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Note 11 - Goodwill and Intang_4
Note 11 - Goodwill and Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Goodwill | $ 6,568 | $ 6,528 |
Intangible assets, net | 6,219 | 6,092 |
Total goodwill and other intangibles, net | $ 12,787 | $ 12,620 |
Note 11 - Goodwill and Intang_5
Note 11 - Goodwill and Intangibles - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2024 USD ($) | |
Balance | $ 6,528 |
Currency translation effect on foreign goodwill balances | 40 |
Balance | 6,568 |
Clearfield [Member] | |
Balance | 4,708 |
Currency translation effect on foreign goodwill balances | 0 |
Balance | 4,708 |
Nestor [Member] | |
Balance | 1,820 |
Currency translation effect on foreign goodwill balances | 40 |
Balance | $ 1,860 |
Note 11 - Goodwill and Intang_6
Note 11 - Goodwill and Intangibles - Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Gross carrying amount | $ 11,484 | $ 10,860 |
Accumulated amortization | 5,265 | 4,768 |
Net carrying amount | 6,219 | 6,092 |
Customer Relationships [Member] | ||
Gross carrying amount | 4,845 | 4,894 |
Accumulated amortization | 1,715 | 1,582 |
Net carrying amount | 3,130 | 3,312 |
Certification Marks [Member] | ||
Gross carrying amount | 584 | 584 |
Accumulated amortization | 334 | 267 |
Net carrying amount | 250 | 317 |
Trademarks [Member] | ||
Gross carrying amount | 1,290 | 1,333 |
Accumulated amortization | 682 | 700 |
Net carrying amount | 608 | 633 |
Patents [Member] | ||
Gross carrying amount | 1,172 | 1,119 |
Accumulated amortization | 192 | 165 |
Net carrying amount | 980 | 954 |
Developed Technology Rights [Member] | ||
Gross carrying amount | 295 | 311 |
Accumulated amortization | 0 | 22 |
Net carrying amount | 295 | 289 |
Other Intangible Assets [Member] | ||
Gross carrying amount | 6 | 6 |
Accumulated amortization | 6 | 6 |
Net carrying amount | 0 | 0 |
Computer Software, Intangible Asset [Member] | ||
Gross carrying amount | 3,292 | 2,613 |
Accumulated amortization | 2,336 | 2,026 |
Net carrying amount | $ 956 | $ 587 |
Note 11 - Goodwill and Intang_7
Note 11 - Goodwill and Intangibles - Future Estimated Amortization Expense for Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
FY 2024 (remaining) | $ 653 | |
FY 2025 | 953 | |
FY 2026 | 678 | |
FY 2027 | 393 | |
FY 2028 | 373 | |
Thereafter | 3,169 | |
Total | $ 6,219 | $ 6,092 |
Note 12 - Segment Reporting (De
Note 12 - Segment Reporting (Details Textual) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Sep. 30, 2023 | |
Number of Reportable Segments | 2 | 2 |
Note 12 - Segment Reporting - R
Note 12 - Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from external customers | $ 36,910,000 | $ 71,809,000 | $ 71,140,000 | $ 157,751,000 |
Revenue from internal customers (Clearfield, Inc.) | 0 | 0 | 0 | 0 |
Net investment income | 1,849,000 | 1,395,000 | 3,918,000 | 1,698,000 |
Interest expense | 102,000 | 112,000 | 228,000 | 356,000 |
Depreciation and amortization | 1,920,000 | 1,458,000 | 3,572,000 | 2,822,000 |
Stock based compensation | 1,012,000 | 784,000 | 2,284,000 | 1,444,000 |
Income taxes | (2,083,000) | 2,974,000 | (3,034,000) | 6,669,000 |
Net loss | (5,911,000) | 10,364,000 | (11,179,000) | 24,619,000 |
Capital expenditures | 1,971,000 | 2,579,000 | 4,389,000 | 4,798,000 |
Intersegment Eliminations [Member] | ||||
Revenue from external customers | 0 | 0 | 0 | 0 |
Revenue from internal customers (Clearfield, Inc.) | (218,000) | (1,737,000) | (1,101,000) | (2,923,000) |
Net investment income | (59,000) | 0 | (118,000) | 0 |
Interest expense | (59,000) | 0 | (118,000) | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Stock based compensation | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net loss | 3,000 | (433,000) | (122,000) | (586,000) |
Capital expenditures | 0 | 0 | 0 | 0 |
Clearfield [Member] | Operating Segments [Member] | ||||
Revenue from external customers | 27,600,000 | 60,451,000 | 55,700,000 | 138,806,000 |
Revenue from internal customers (Clearfield, Inc.) | 0 | 0 | 0 | 0 |
Net investment income | 1,906,000 | 1,394,000 | 4,032,000 | 1,694,000 |
Interest expense | 0 | 0 | 0 | 170,000 |
Depreciation and amortization | 1,551,000 | 1,099,000 | 2,848,000 | 2,110,000 |
Stock based compensation | 940,000 | 784,000 | 2,161,000 | 1,444,000 |
Income taxes | (1,825,000) | 2,873,000 | (2,408,000) | 6,646,000 |
Net loss | (5,001,000) | 10,395,000 | (8,384,000) | 25,113,000 |
Capital expenditures | 1,806,000 | 2,481,000 | 3,093,000 | 4,490,000 |
Nestor Cables [Member] | Operating Segments [Member] | ||||
Revenue from external customers | 9,310,000 | 11,358,000 | 15,440,000 | 18,945,000 |
Revenue from internal customers (Clearfield, Inc.) | 218,000 | 1,737,000 | 1,101,000 | 2,923,000 |
Net investment income | 2,000 | 1,000 | 4,000 | 4,000 |
Interest expense | 161,000 | 112,000 | 346,000 | 186,000 |
Depreciation and amortization | 369,000 | 359,000 | 724,000 | 712,000 |
Stock based compensation | 72,000 | 0 | 123,000 | 0 |
Income taxes | (258,000) | 101,000 | (626,000) | 23,000 |
Net loss | (913,000) | 402,000 | (2,673,000) | 92,000 |
Capital expenditures | $ 165,000 | $ 98,000 | $ 1,296,000 | $ 308,000 |
Note 12 - Segment Reporting -_2
Note 12 - Segment Reporting - Reconciliation of Assets from Segments to Consolidated (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Goodwill | $ 6,568 | $ 6,528 |
Total assets | 315,403 | 355,517 |
Clearfield [Member] | ||
Goodwill | 4,708 | 4,708 |
Operating Segments [Member] | Clearfield [Member] | ||
Goodwill | 4,709 | 4,709 |
Total assets | 297,981 | 335,412 |
Operating Segments [Member] | Nestor Cables [Member] | ||
Goodwill | 1,859 | 1,819 |
Total assets | 40,960 | 43,550 |
Intersegment Eliminations [Member] | ||
Goodwill | 0 | 0 |
Total assets | $ (23,538) | $ (23,445) |
Note 13 - Financing Receivabl_2
Note 13 - Financing Receivables (Details Textual) € in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Sep. 30, 2023 USD ($) | |
Factoring Liabilities | $ 5,931,000 | $ 5,931,000 | $ 6,289,000 | |
Financing Receivables, Percentage of Cash Initially Received | 80% | 80% | 80% | |
Financing Receivable, Percentage of Balance Received When Invoice is Paid | 20% | 20% | 20% | |
Financing Receivable, Limit | $ 13,500,000 | $ 13,500,000 | € 12.5 | |
Financing Receivable, Average Interest Rate During Period | 5.34% | 6.53% | ||
Minimum [Member] | ||||
Agreement Termination Period (Month) | 0 months | |||
Maximum [Member] | ||||
Agreement Termination Period (Month) | 1 month | |||
Euribor [Member] | Minimum [Member] | ||||
Financing Receivable, Interest Rate, Basis Spread on Variable Rate | 0.75% | |||
Euribor [Member] | Maximum [Member] | ||||
Financing Receivable, Interest Rate, Basis Spread on Variable Rate | 1.30% |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Expense (Benefit) | $ (2,083,000) | $ 2,974,000 | $ (3,034,000) | $ 6,669,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 26.10% | 22.30% | 21.30% | 21.30% |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
Apr. 01, 2024 EUR (€) | May 01, 2023 EUR (€) | Jul. 31, 2021 USD ($) ft² | Apr. 30, 2024 USD ($) ft² | Mar. 31, 2024 USD ($) ft² | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) ft² | Mar. 31, 2023 USD ($) | Jun. 30, 2023 EUR (€) ft² | May 11, 2023 ft² | Nov. 19, 2021 ft² | Jan. 01, 2015 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 9 months 14 days | 3 years 9 months 14 days | 4 years 9 months 14 days | 3 years 9 months 14 days | ||||||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.80% | 3.23% | 3.80% | 3.23% | ||||||||
Operating Lease, Payments | $ | $ 1,049,000 | $ 950,000 | $ 2,093,000 | $ 1,907,000 | ||||||||
Tabasalu, Estonia [Member] | ||||||||||||
Area of Real Estate Property | 49,000 | |||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years | |||||||||||
Operating Lease, Monthly Payment | € | € 25,000 | € 20,400 | ||||||||||
Tabasalu, Estonia [Member] | Minimum [Member] | ||||||||||||
Operating Lease, Payments, Annual Increase, Percentage | 5% | |||||||||||
7050 Winnetka Avenue North, Brooklyn Park, Minnesota [Member] | ||||||||||||
Area of Real Estate Property | 85,000 | 85,000 | ||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years 2 months 1 day | |||||||||||
Tijuana, Mexico 3 [Member] | ||||||||||||
Area of Real Estate Property | 318,000 | |||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 7 years | |||||||||||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||||||||||
Lessee, Operating Lease, Renewal Term | 5 years | |||||||||||
Operating Lease, Monthly Payment | $ | $ 162,000 | |||||||||||
Operating Lease, Payments, Annual Increase, Percentage | 2% | |||||||||||
Tijuana, Mexico 3 [Member] | Subsequent Event [Member] | ||||||||||||
Area of Real Estate Property | 318,000 | |||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 7 years | |||||||||||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||||||||||
Lessee, Operating Lease, Renewal Term | 5 years | |||||||||||
Operating Lease, Monthly Payment | $ | $ 169,000 | |||||||||||
Operating Lease, Payments, Annual Increase, Percentage | 2% | |||||||||||
Tijuana, Mexico 3 [Member] | Lease Mandatory Contractual Term [Member] | ||||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 5 years | |||||||||||
Tijuana, Mexico 3 [Member] | Lease Mandatory Contractual Term [Member] | Subsequent Event [Member] | ||||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 5 years | |||||||||||
Brooklyn Part, MN [Member] | ||||||||||||
Area of Real Estate Property | 105,000 | |||||||||||
Lessee, Operating Lease, Term of Contract (Year) | 5 years | |||||||||||
Lessee, Operating Lease, Renewal Term | 5 years | |||||||||||
Oulu, Finland [Member] | ||||||||||||
Area of Real Estate Property | 25,000 | |||||||||||
Operating Lease, Monthly Payment | € | € 40,000 |
Note 15 - Leases - Operating Le
Note 15 - Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Total lease expense | $ 1,137 | $ 1,058 | $ 2,272 | $ 2,077 |
Cost of Sales [Member] | ||||
Total lease expense | 1,055 | 995 | 2,113 | 1,958 |
Selling, General and Administrative Expenses [Member] | ||||
Total lease expense | $ 82 | $ 63 | $ 159 | $ 119 |
Note 15 - Leases - Maturities o
Note 15 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
FY2024(Remaining) | $ 1,935 |
FY2025 | 3,964 |
FY2026 | 3,250 |
FY2027 | 1,581 |
FY2028 | 393 |
Thereafter | 2,859 |
Total lease payments | 13,982 |
Less: Interest | (1,123) |
Present value of lease liabilities | $ 12,859 |
Note 16 - Debt (Details Textual
Note 16 - Debt (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
Apr. 01, 2022 | Mar. 31, 2021 | Mar. 31, 2024 | |
Loan Agreement, Nestor Cables [Member] | Senior Loans [Member] | |||
Debt Instrument, Face Amount | $ 2,000,000 | ||
Debt Instrument, Term (Year) | 3 years | ||
NESA [Member] | Senior Loans [Member] | |||
Debt Instrument, Covenant, Interest Payment Cap | 5% | ||
Debt Instrument, Covenant, Interest Penalty | 2% | ||
Revolving Credit Facility [Member] | Loan and Security Agreement With Bremer Bank, National Association [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||
Debt Instrument, Minimum Interest Rate Required | 1.80% | ||
Long-Term Line of Credit | $ 0 | ||
Debt Instrument, Interest Rate During Period | 6.52% | ||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio | 1.2 | ||
Debt Instrument, Covenant, Maximum Debt to Cash Flow Ratio | 2 | ||
Debt Instrument, Collateral Amount | $ 297,981,000 | ||
Revolving Credit Facility [Member] | Loan and Security Agreement With Bremer Bank, National Association [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.85% |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) | 1 Months Ended | |||
Jul. 31, 2021 USD ($) ft² | Apr. 30, 2024 USD ($) ft² | Mar. 31, 2024 USD ($) | Sep. 30, 2023 USD ($) | |
Operating Lease, Right-of-Use Asset | $ 12,394,000 | $ 13,861,000 | ||
Operating Lease, Liability | $ 12,859,000 | |||
Subsequent Event [Member] | Old Lease For Facility in Tijuana, Mexico [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 5,764,000 | |||
Operating Lease, Liability | 5,764,000 | |||
Subsequent Event [Member] | New Lease For Facility in Tijuana, Mexico [Member] | ||||
Operating Lease, Right-of-Use Asset | 8,637,000 | |||
Operating Lease, Liability | $ 8,637,000 | |||
Tijuana, Mexico 3 [Member] | ||||
Area of Real Estate Property | ft² | 318,000 | |||
Lessee, Operating Lease, Term of Contract (Year) | 7 years | |||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||
Lessee, Operating Lease, Renewal Term | 5 years | |||
Operating Lease, Monthly Payment | $ 162,000 | |||
Operating Lease, Payments, Annual Increase, Percentage | 2% | |||
Tijuana, Mexico 3 [Member] | Lease Mandatory Contractual Term [Member] | ||||
Lessee, Operating Lease, Term of Contract (Year) | 5 years | |||
Tijuana, Mexico 3 [Member] | Subsequent Event [Member] | ||||
Area of Real Estate Property | ft² | 318,000 | |||
Lessee, Operating Lease, Term of Contract (Year) | 7 years | |||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||
Lessee, Operating Lease, Renewal Term | 5 years | |||
Operating Lease, Monthly Payment | $ 169,000 | |||
Operating Lease, Payments, Annual Increase, Percentage | 2% | |||
Tijuana, Mexico 3 [Member] | Subsequent Event [Member] | Lease Mandatory Contractual Term [Member] | ||||
Lessee, Operating Lease, Term of Contract (Year) | 5 years |