Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 30, 2013 | Mar. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ADDVANTAGE TECHNOLOGIES GROUP INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 9,998,480 | ' |
Entity Public Float | ' | ' | $11,978,905 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000874292 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Assets | ' | ' |
Cash and cash equivalents | $8,366,657 | $5,191,514 |
Accounts receivable, net of allowance of $300,000 | 3,020,853 | 3,050,796 |
Income tax refund receivable | 272,380 | 409,386 |
Inventories, net of allowance for excess and obsolete inventory of $1,750,000 and $1,000,000, respectively | 20,730,453 | 22,666,385 |
Prepaid expenses | 122,283 | 129,357 |
Deferred income taxes | 1,066,000 | 920,000 |
Total current assets | 33,578,626 | 32,367,438 |
Land and buildings | 8,794,272 | 8,794,272 |
Machinery and equipment | 3,125,422 | 2,953,949 |
Leasehold improvements | 9,633 | 9,633 |
Total property and equipment, at cost | 11,929,327 | 11,757,854 |
Less accumulated depreciation and amortization | -3,963,444 | -3,666,327 |
Net property and equipment | 7,965,883 | 8,091,527 |
Goodwill | 1,560,183 | 1,560,183 |
Other assets | 11,428 | 13,778 |
Total other assets | 1,571,611 | 1,573,961 |
Total assets | 43,116,120 | 42,032,926 |
Liabilities and Shareholders’ Equity | ' | ' |
Accounts payable | 1,308,869 | 1,437,492 |
Accrued expenses | 934,856 | 1,030,174 |
Notes payable – current portion | 184,008 | 184,008 |
Total current liabilities | 2,427,733 | 2,651,674 |
Notes payable, less current portion | 1,318,604 | 1,502,612 |
Deferred income taxes | 193,000 | 62,000 |
Common stock, $.01 par value; 30,000,000 shares authorized; 10,499,138 and 10,465,323 shares issued, respectively; 9,998,480 and 10,189,120 shares outstanding, respectively | 104,991 | 104,653 |
Paid in capital | -5,578,500 | -5,748,503 |
Retained earnings | 45,650,306 | 43,980,590 |
Total shareholders’ equity before treasury stock | 40,176,797 | 38,336,740 |
Less: Treasury stock, 500,658 and 276,203 shares, respectively, at cost | -1,000,014 | -520,100 |
Total shareholders’ equity | 39,176,783 | 37,816,640 |
Total liabilities and shareholders’ equity | $43,116,120 | $42,032,926 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts receivable, allowance (in Dollars) | $300,000 | $300,000 |
Allowance for excess and obsolete inventory (in Dollars) | $1,750,000 | $1,000,000 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 10,499,138 | 10,465,323 |
Common stock, shares outstanding | 9,998,480 | 10,189,120 |
Treasury stock, shares | 500,658 | 276,203 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Sales: | ' | ' | ' |
Net new sales income | $20,347,041 | $21,093,370 | $25,886,494 |
Net refurbished sales income | 9,031,954 | 9,814,763 | 7,430,603 |
Net service income | 3,978,597 | 4,308,270 | 4,762,433 |
Total net sales | 33,357,592 | 35,216,403 | 38,079,530 |
Cost of sales | 23,784,272 | 24,854,960 | 26,528,682 |
Gross profit | 9,573,320 | 10,361,443 | 11,550,848 |
Operating, selling, general and administrative expenses | 6,841,273 | 7,231,097 | 6,625,907 |
Income from operations | 2,732,047 | 3,130,346 | 4,924,941 |
Interest expense | 25,980 | 1,113,854 | 696,634 |
Income before income taxes | 2,706,067 | 2,016,492 | 4,228,307 |
Provision for income taxes | 1,036,351 | 766,000 | 1,692,000 |
Net income attributable to common shareholders | 1,669,716 | 1,250,492 | 2,536,307 |
Other comprehensive loss: | ' | ' | ' |
Unrealized gain on interest rate swap, net of $0, $370,000 and $106,000 tax provision, respectively | ' | 587,258 | 189,425 |
Comprehensive income | $1,669,716 | $1,837,750 | $2,725,732 |
Earnings per share: | ' | ' | ' |
Basic (in Dollars per share) | $0.17 | $0.12 | $0.25 |
Diluted (in Dollars per share) | $0.17 | $0.12 | $0.25 |
Shares used in per share calculation: | ' | ' | ' |
Basic (in Shares) | 10,052,359 | 10,196,241 | 10,175,213 |
Diluted (in Shares) | 10,052,359 | 10,197,496 | 10,178,763 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income and Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Unrealized gain on interest rate swap, tax provision | $0 | $370,000 | $106,000 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes In Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Sep. 30, 2010 | $103,679 | ($6,070,986) | $40,193,791 | ($776,683) | ($406,279) | $33,043,522 |
Balance (in Shares) at Sep. 30, 2010 | 10,367,934 | ' | ' | ' | ' | ' |
Net income | ' | ' | 2,536,307 | ' | ' | 2,536,307 |
Stock issuance | 590 | 169,410 | ' | ' | ' | 170,000 |
Stock issuance (in Shares) | 58,920 | ' | ' | ' | ' | ' |
Stock options exercised | 45 | 6,706 | ' | ' | ' | 6,751 |
Stock options exercised (in Shares) | 4,500 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on interest swap | ' | ' | ' | 189,425 | ' | 189,425 |
Share based compensation expense | ' | 10,349 | ' | ' | ' | 10,349 |
Balance at Sep. 30, 2011 | 104,314 | -5,884,521 | 42,730,098 | -587,258 | -406,279 | 35,956,354 |
Balance (in Shares) at Sep. 30, 2011 | 10,431,354 | ' | ' | ' | ' | ' |
Net income | ' | ' | 1,250,492 | ' | ' | 1,250,492 |
Stock issuance | 320 | 69,680 | ' | ' | ' | 70,000 |
Stock issuance (in Shares) | 31,969 | ' | ' | ' | ' | ' |
Stock options exercised | 20 | 1,600 | ' | ' | ' | 1,620 |
Stock options exercised (in Shares) | 2,000 | ' | ' | ' | ' | ' |
Net unrealized gain (loss) on interest swap | ' | ' | ' | 587,258 | ' | 587,258 |
Share based compensation expense | ' | 64,738 | ' | ' | ' | 64,738 |
Purchase of common stock | ' | ' | ' | ' | -113,821 | -113,821 |
Balance at Sep. 30, 2012 | 104,653 | -5,748,503 | 43,980,590 | ' | -520,100 | 37,816,640 |
Balance (in Shares) at Sep. 30, 2012 | 10,465,323 | ' | ' | ' | ' | ' |
Net income | ' | ' | 1,669,716 | ' | ' | 1,669,716 |
Stock issuance | 318 | 69,682 | ' | ' | ' | 70,000 |
Stock issuance (in Shares) | 31,815 | ' | ' | ' | ' | ' |
Stock options exercised | 20 | 3,280 | ' | ' | ' | 3,300 |
Stock options exercised (in Shares) | 2,000 | ' | ' | ' | ' | 2,000 |
Share based compensation expense | ' | 97,041 | ' | ' | ' | 97,041 |
Purchase of common stock | ' | ' | ' | ' | -479,914 | -479,914 |
Balance at Sep. 30, 2013 | $104,991 | ($5,578,500) | $45,650,306 | ' | ($1,000,014) | $39,176,783 |
Balance (in Shares) at Sep. 30, 2013 | 10,499,138 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Operating Activities | ' | ' | ' |
Net income | $1,669,716 | $1,250,492 | $2,536,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 330,467 | 356,091 | 370,965 |
Provision for excess and obsolete inventories | 1,044,913 | 580,587 | 407,303 |
(Gain) loss on disposal of property and equipment | -5,950 | 114,071 | -1,350 |
Deferred income tax provision (benefit) | -15,000 | 234,000 | 533,000 |
Share based compensation expense | 167,041 | 201,404 | 109,516 |
Cash provided (used) by changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 29,943 | 1,193,253 | 892,459 |
Income tax refund receivable | 137,006 | -59,641 | -146,340 |
Inventories | 891,019 | 2,530,775 | 1,896,005 |
Prepaid expenses | 7,074 | -18,538 | -52,451 |
Other assets | 2,350 | 5,467 | 74,825 |
Accounts payable | -128,623 | -1,238,415 | -403,790 |
Accrued expenses | -95,318 | -210,050 | -199,782 |
Net cash provided by operating activities | 4,034,638 | 4,939,496 | 6,016,667 |
Investing Activities | ' | ' | ' |
Acquisition of net operating assets, net of cash acquired | ' | ' | -549,785 |
Additions to machinery and equipment | -211,223 | -97,333 | -23,132 |
Additions of land and buildings | ' | -110,594 | -1,475,000 |
Disposals of machinery and equipment | 12,350 | ' | 43,011 |
Net cash used in investing activities | -198,873 | -207,927 | -2,004,906 |
Financing Activities | ' | ' | ' |
Payments on notes payable | -184,008 | -10,371,508 | -1,814,008 |
Purchase of treasury stock | -479,914 | -113,821 | ' |
Proceeds from stock options exercised | 3,300 | 1,620 | 6,750 |
Net cash used in financing activities | -660,622 | -10,483,709 | -1,807,258 |
Net increase (decrease) in cash and cash equivalents | 3,175,143 | -5,752,140 | 2,204,503 |
Cash and cash equivalents at beginning of year | 5,191,514 | 10,943,654 | 8,739,151 |
Cash and cash equivalents at end of year | 8,366,657 | 5,191,514 | 10,943,654 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for interest | 26,137 | 1,164,522 | 704,878 |
Cash paid for income taxes | $971,000 | $622,210 | $1,344,399 |
Note_1_Description_of_Business
Note 1 - Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Accounting Policies [Text Block] | ' |
Note 1 – Description of Business and Summary of Significant Accounting Policies | |
Description of business | |
ADDvantage Technologies Group, Inc. through its subsidiaries (collectively, the “Company”) sells new, surplus-new, and refurbished cable television equipment throughout North America, Central America, South America and, to a substantially lesser extent, other international regions that utilize the same technology. In addition, the Company is also a repair center for various cable companies. | |
Summary of Significant Accounting Policies | |
Principles of consolidation and segment reporting | |
The consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its wholly owned subsidiaries: Tulsat Corporation, Tulsat-Atlanta LLC, ADDvantage Technologies Group of Nebraska, Inc. (dba Tulsat-Nebraska), ADDvantage Technologies Group of Texas, Inc. (dba Tulsat-Texas), NCS Industries, Inc., ADDvantage Technologies Group of Missouri, Inc. (dba ComTech Services) and Adams Global Communications, LLC. All significant inter-company balances and transactions have been eliminated in consolidation. In addition, each subsidiary represents a separate operating segment of the Company and is aggregated for segment reporting purposes. | |
Cash and cash equivalents | |
Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. | |
Accounts receivable | |
Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not charge interest on past due accounts. | |
Inventory valuation | |
Inventory consists of new and used electronic components for the cable television industry. Inventory is stated at the lower of cost or market with market defined principally as net realizable value. Cost is determined using the weighted-average method. The Company records inventory reserve provisions to reflect inventory at its estimated realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. | |
Property and equipment | |
Property and equipment consists of software, office equipment, warehouse and service equipment and buildings with estimated useful lives generally of 3 years, 5 years, 10 years and 40 years, respectively. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remainder of the lease agreement. Gains or losses from the ordinary sale or retirement of property and equipment are recorded in other income (expense). Repairs and maintenance costs are generally expensed as incurred, whereas major improvements are capitalized. Depreciation and amortization expense was $0.3 million, $0.4 million and $0.4 million for the years ended September 30, 2013, 2012 and 2011, respectively. | |
Goodwill | |
Goodwill represents the excess of cost over fair value of the assets of businesses acquired. Goodwill is evaluated at least annually for impairment by first comparing our estimate of the fair value of the reporting unit, or operating segment, with the reporting unit’s carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, a computation of the implied fair value of goodwill would then be compared to its related carrying value. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized in the amount of the excess. Judgments and assumptions are inherent in our estimate of future cash flows used to determine the estimate of the reporting unit’s fair value. The use of alternate judgments and/or assumptions could result in the recognition of different levels of impairment charges in the financial statements. At September 30, 2013 and 2012, the fair value of our reporting unit exceeded its carrying value, so goodwill was not impaired. | |
Income taxes | |
The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. | |
Revenue recognition and product line reporting | |
The Company’s principal sources of revenues are from sales of new, refurbished or used equipment and repair services. As a distributor for several cable television equipment manufacturers, the Company offers a broad selection of inventoried and non-inventoried products. The Company’s sales of different products fluctuate from year to year as its customers’ needs change. Because the Company’s product line sales change from year to year, the Company does not report sales by product line for management reporting purposes and does not disclose sales by product line in these consolidated financial statements. | |
The Company recognizes revenue for product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed and determinable and the collection of the related receivable is probable, which is generally at the time of shipment. The stated shipping terms are FOB shipping point per the Company's sales agreements with its customers. Accruals are established for expected returns based on historical activity. Revenue for services is recognized when the repair is completed and the product is shipped back to the customer. | |
Derivatives | |
Derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of the changes in the fair value of the derivative are recorded in Other Comprehensive Income and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in other income (expense). The Company's objective of holding derivatives was to minimize the risk of interest rate fluctuation. As of September 30, 2012, the Company no longer holds derivatives. | |
Freight | |
Amounts billed to customers for shipping and handling represent revenues earned and are included in net new sales income, net refurbished sales income and net service income in the accompanying consolidated statements of income and comprehensive income. Actual costs for shipping and handling of these sales are included in cost of sales. | |
Advertising costs | |
Advertising costs are expensed as incurred. Advertising expense was $0.2 million for each of the years ended September 30, 2013, 2012 and 2011, respectively. | |
Management estimates | |
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the cable industry could have a significant impact on the value of the Company's inventory and operating results. | |
Concentrations of credit risk | |
The Company holds cash with one major financial institution, which at times exceeds FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. | |
Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs in-depth credit evaluations for all new customers but does not require collateral to support customer receivables. The Company had no customer in 2013, 2012 or 2011 that contributed in excess of 10% of the total net sales. The Company’s sales to foreign (non-U.S. based customers) were approximately $3.3 million, $5.7 million and $4.5 million for the years ended September 30, 2013, 2012 and 2011, respectively. In 2013, the Company purchased approximately 18% of its inventory either directly from Cisco or indirectly through their primary stocking distributor and approximately 29% of its inventory from Motorola. The concentration of suppliers of the Company’s inventory subjects the Company to risk. | |
Employee stock-based awards | |
Share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their grant date fair value over the requisite service period. The Company determines the fair value of the options issued, using the Black-Scholes valuation model, and amortizes the calculated value over the vesting term of the stock options. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of income and comprehensive income. | |
Earnings per share | |
Basic earnings per share are based on the sum of the average number of common shares outstanding and issuable restricted and deferred shares. Diluted earnings per share include any dilutive effect of stock options, restricted stock and convertible preferred stock. | |
Fair value of financial instruments | |
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The carrying value of the Company’s line of credit and term debt approximates fair value since their interest rates fluctuate periodically based on a floating interest rate. |
Note_2_Inventories
Note 2 - Inventories | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
Note 2 – Inventories | |||||||||
Inventories at September 30, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
New | $ | 16,355,035 | $ | 17,283,788 | |||||
Refurbished | 6,125,418 | 6,382,597 | |||||||
Allowance for excess and obsolete inventory | (1,750,000 | ) | (1,000,000 | ) | |||||
$ | 20,730,453 | $ | 22,666,385 | ||||||
New inventory includes products purchased from the manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators. Refurbished inventory includes factory refurbished, Company refurbished and used products. Generally, the Company does not refurbish its used inventory until there is a sale of that product or to keep a certain quantity on hand. | |||||||||
The Company regularly reviews inventory quantities on hand, and an adjustment to cost is recognized when the loss of usefulness of an item or other factors, such as obsolete and excess inventories, indicate that cost will not be recovered when an item is sold. The Company recorded charges to allow for obsolete inventory during the fiscal years ended September 30, 2013, 2012 and 2011, increasing the cost of sales by approximately $1.0 million, $0.6 million and $0.4 million, respectively. |
Note_3_Income_Taxes
Note 3 - Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
Note 3 – Income Taxes | |||||||||||||
The provision (benefit) for income taxes for the years ended September 30, 2013, 2012 and 2011 consists of: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 1,051,351 | $ | 532,000 | $ | 1,159,000 | |||||||
Deferred | (15,000 | ) | 234,000 | 533,000 | |||||||||
$ | 1,036,351 | $ | 766,000 | $ | 1,692,000 | ||||||||
The following table summarizes the differences between the U.S. federal statutory rate and the Company’s effective tax rate for financial statement purposes for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of U.S. federal tax benefit | 5.4 | % | 3.5 | % | 4.6 | % | |||||||
Charges without tax benefit | 1.2 | % | 1.4 | % | 0.7 | % | |||||||
Tax credits and other exclusions | (2.3% | ) | (0.9% | ) | 0.7 | % | |||||||
Company’s effective tax rate | 38.3 | % | 38 | % | 40 | % | |||||||
The tax effects of temporary differences related to deferred taxes at September 30, 2013 and 2012 consist of the following: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 414,000 | $ | 500,000 | |||||||||
Accounts receivable | 116,000 | 115,000 | |||||||||||
Inventory | 842,000 | 639,000 | |||||||||||
Other, net | 232,000 | 196,000 | |||||||||||
1,604,000 | 1,450,000 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Financial basis in excess of tax basis of certain assets | 731,000 | 592,000 | |||||||||||
Net deferred tax asset | $ | 873,000 | $ | 858,000 | |||||||||
The above net deferred tax asset is presented in the Company’s consolidated balance sheets at September 30, 2013 and 2012 as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax asset – current | $ | 1,066,000 | $ | 920,000 | |||||||||
Deferred tax asset (liability) – noncurrent | (193,000 | ) | (62,000 | ) | |||||||||
$ | 873,000 | $ | 858,000 | ||||||||||
Utilization of the Company’s net operating loss carryforward, totaling approximately $1.1 million at September 30, 2013, to reduce future taxable income is limited to an annual deductible amount of approximately $0.3 million. The net operating loss carryforward expires in varying amounts in 2019 and 2020. | |||||||||||||
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. The Company has concluded, based on its historical earnings and projected future earnings, that it will be able to realize the full effect of the deferred tax assets and no valuation allowance is needed. | |||||||||||||
Based upon a review of its income tax positions, the Company believes that its positions would be sustained upon an examination by the Internal Revenue Service and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. Generally, the Company is no longer subject to examinations by the U.S. federal, state or local tax authorities for tax years before 2010. |
Note_4_Accrued_Expenses
Note 4 - Accrued Expenses | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
Note 4 – Accrued Expenses | |||||||||
Accrued expenses at September 30, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Employee costs | $ | 766,201 | $ | 823,978 | |||||
Taxes other than income tax | 154,616 | 176,296 | |||||||
Interest | 996 | 1,153 | |||||||
Other, net | 13,043 | 28,747 | |||||||
$ | 934,856 | $ | 1,030,174 | ||||||
Note_5_Line_of_Credit_and_Note
Note 5 - Line of Credit and Notes Payable | 12 Months Ended | |||||
Sep. 30, 2013 | ||||||
Debt Disclosure [Abstract] | ' | |||||
Debt Disclosure [Text Block] | ' | |||||
Note 5 – Line of Credit and Notes Payable | ||||||
Notes Payable | ||||||
The Company has an Amended and Restated Revolving Credit and Term Loan Agreement (“Credit and Term Loan Agreement”). The only outstanding term loan under the Credit and Term Loan Agreement has an outstanding balance of $1.5 million at September 30, 2013 and is due on November 20, 2021, with monthly principal payments of $15,334 plus accrued interest. The interest rate is the prevailing 30-day LIBOR rate plus 1.4% (1.58% at September 30, 2013) and is reset monthly. This term loan is collateralized by inventory, accounts receivable, equipment and fixtures and general intangibles. | ||||||
The aggregate minimum maturities of notes payable for each of the next five years are as follows: | ||||||
2014 | $ | 184,008 | ||||
2015 | 184,008 | |||||
2016 | 184,008 | |||||
2017 | 184,008 | |||||
2018 | 184,008 | |||||
Thereafter | 582,572 | |||||
Total | $ | 1,502,612 | ||||
Line of Credit | ||||||
The Company has a $7.0 million Revolving Line of Credit (“Line of Credit”) under the Credit and Term Loan Agreement with its primary financial lender. At September 30, 2013, the Company had no amount outstanding under the Line of Credit. The Line of Credit requires quarterly interest payments based on the prevailing 30-day LIBOR rate plus 2.75% (2.93% at September 30, 2013), and the interest rate is reset monthly. Any future borrowings under the Line of Credit are due on November 29, 2013. Future borrowings under the Line of Credit are limited to the lesser of $7.0 million or the net balance of 80% of qualified accounts receivable plus 50% of qualified inventory. Under these limitations, the Company’s total Line of Credit borrowing base was $7.0 million at September 30, 2013. Among other financial covenants, the Line of Credit agreement provides that the Company must maintain a fixed charge ratio of coverage (EBITDA to total fixed charges) of not less than 1.25 to 1.0, determined quarterly. The Line of Credit is collateralized by inventory, accounts receivable, equipment and fixtures and general intangibles. | ||||||
Subsequent to September 30, 2013, the Company signed the Third Amendment to the Amended and Restated Revolving Credit and Term Loan Agreement with its primary financial lender dated November 29, 2013. This amendment extended the Line of Credit maturity to November 28, 2014. The Line of Credit remains at $7.0 million, and the interest rate remains at the prevailing 30-day LIBOR rate plus 2.75%. |
Note_6_StockBased_Compensation
Note 6 - Stock-Based Compensation and Preferred Stock | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
Note 6 – Stock-Based Compensation and Preferred Stock | |||||||||||||
Plan Information | |||||||||||||
The 1998 Incentive Stock Plan (the “Plan”) provides for awards of stock options and restricted stock to officers, directors, key employees and consultants. The Plan provides that upon any issuance of additional shares of common stock by the Company, other than pursuant to the Plan, the number of shares covered by the Plan will increase to an amount equal to 10% of the then outstanding shares of common stock. Under the Plan, option prices will be set by the Board of Directors and may be greater than, equal to, or less than fair market value on the grant date. | |||||||||||||
At September 30, 2013, 1,024,656 shares of common stock were reserved for the exercise of, or lapse of restrictions on, stock awards under the Plan. Of these reserved shares, 280,141 shares were available for future grants. | |||||||||||||
Stock Options | |||||||||||||
Share-based payments to employees, including grants of employee stock options, are recognized in financial statements based on their grant date fair value over the requisite service period. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of income and comprehensive income. | |||||||||||||
Stock options are valued at the date of the award, which does not precede the approval date, and compensation cost is recognized on a straight-line basis over the vesting period. Stock options granted to employees generally become exercisable over a four or five-year period from the date of grant and generally expire ten years after the date of grant. Stock options granted to the Board of Directors generally become exercisable on the date of grant and generally expire ten years after the date of grant. | |||||||||||||
A summary of the status of the Company's stock options at September 30, 2013 and changes during the year then ended is presented below: | |||||||||||||
Options | Weighted | Aggregate | |||||||||||
Average | Intrinsic | ||||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding at September 30, 2012 | 370,000 | $ | 2.83 | ||||||||||
Granted | 30,000 | $ | 2.33 | ||||||||||
Exercised | (2,000 | ) | $ | 1.65 | $ | 940 | |||||||
Expired | – | $ | – | ||||||||||
Forfeited | (35,000 | ) | $ | 2.43 | |||||||||
Outstanding at September 30, 2013 | 363,000 | $ | 2.83 | $ | 0 | ||||||||
Exercisable at September 30, 2013 | 163,000 | $ | 3.3 | $ | 0 | ||||||||
The total intrinsic value of options exercised was $940, $2,640, and $5,670 for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||||
Information about the Company’s outstanding and exercisable stock options at September 30, 2013 is as follows: | |||||||||||||
Exercise Price | Stock Options | Exercisable | Remaining | ||||||||||
Outstanding | Stock Options | Contractual | |||||||||||
Outstanding | Life (years) | ||||||||||||
$ | 2.45 | 250,000 | 50,000 | 8.5 | |||||||||
$ | 3.001 | 65,000 | 65,000 | 4.9 | |||||||||
$ | 3.45 | 15,000 | 15,000 | 3.4 | |||||||||
$ | 5.78 | 15,000 | 15,000 | 2.4 | |||||||||
$ | 4.62 | 15,000 | 15,000 | 1.4 | |||||||||
$ | 4.4 | 3,000 | 3,000 | 0.4 | |||||||||
363,000 | 163,000 | ||||||||||||
The Company granted nonqualified stock options totaling 30,000 shares and 250,000 shares for fiscal years ended September 30, 2013 and 2012, respectively. No nonqualified stock options were granted in fiscal year 2011. The Company estimated the fair value of the options granted using the Black-Scholes option valuation model and the assumptions shown in the table below. The Company estimated the expected term of options granted based on the historical grants and exercises of the Company's options. The Company estimated the volatility of its common stock at the date of the grant based on both the historical volatility as well as the implied volatility on its common stock. The Company based the risk-free rate that was used in the Black-Scholes option valuation model on the implied yield in effect at the time of the option grant on U.S. Treasury zero-coupon issues with equivalent expected terms. The Company has never paid cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero in the Black-Scholes option valuation model. The Company amortizes the resulting fair value of the options ratably over the vesting period of the awards. The Company used historical data to estimate the pre-vesting options forfeitures and records share-based expense only for those awards that are expected to vest. | |||||||||||||
The estimated fair value at date of grant for stock options utilizing the Black-Scholes option valuation model and the assumptions that were used in the Black-Scholes option valuation model for the fiscal years 2013 and 2012 stock option grants are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Estimated fair value of options at grant date | $ | 29,040 | $ | 267,925 | |||||||||
Black-Scholes model assumptions: | |||||||||||||
Average expected life (years) | 6 | 6 | |||||||||||
Average expected volatility factor | 41 | % | 41 | % | |||||||||
Average risk-free interest rate | 2.95 | % | 2.99 | % | |||||||||
Average expected dividends yield | – | – | |||||||||||
Compensation expense related to stock options recorded for the years ended September 30, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fiscal year 2008 grant | $ | – | $ | 3,562 | $ | 10,349 | |||||||
Fiscal year 2012 grant | 95,560 | 61,176 | – | ||||||||||
Fiscal year 2013 grant | 1,481 | – | – | ||||||||||
Total compensation expense | $ | 97,041 | $ | 64,738 | $ | 10,349 | |||||||
The Company records compensation expense over the vesting term of the related options. At September 30, 2013, compensation costs related to these unvested stock options not yet recognized in the statements of income and comprehensive income was $111,189. | |||||||||||||
Restricted stock | |||||||||||||
The Company granted restricted stock in March 2013 and 2012 to its Board of Directors totaling 31,815 shares and 31,969 shares, respectively, and in March and May 2011 to its Board of Directors and certain employees totaling 58,920 shares. The restricted stock grants were valued at market value on the date of grant. The restricted shares are delivered to the directors and employees at the end of the 12 month holding period. The fair value of the shares upon issuance totaled $70,000, $70,000 and $170,000 for the 2013, 2012 and 2011 fiscal year grants, respectively. The grants are amortized over the 12 month holding period as compensation expense. Compensation expense related to restricted stock recorded for the years ended September 30, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fiscal year 2010 grant | $ | – | $ | – | $ | 25,000 | |||||||
Fiscal year 2011 grant | – | 95,833 | 74,167 | ||||||||||
Fiscal year 2012 grant | 29,167 | 40,833 | – | ||||||||||
Fiscal year 2013 grant | 40,833 | – | – | ||||||||||
$ | 70,000 | $ | 136,666 | $ | 99,167 | ||||||||
Note_7_Retirement_Plan
Note 7 - Retirement Plan | 12 Months Ended |
Sep. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
Note 7 – Retirement Plan | |
The Company sponsors a 401(k) plan that allows participation by all employees who are at least 21 years of age and have completed one year of service. The Company's contributions to the plan consist of a matching contribution as determined by the plan document. Costs recognized under the 401(k) plan were $0.2 million for each of the years ended September 30, 2013, 2012 and 2011. |
Note_8_Earnings_per_Share
Note 8 - Earnings per Share | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings per share: [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
Note 8 – Earnings per Share | |||||||||||||
Basic and diluted earnings per share for the years ended September 30, 2013, 2012 and 2011 are: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income attributable to common shareholders | $ | 1,669,716 | $ | 1,250,492 | $ | 2,536,307 | |||||||
Basic weighted average shares | 10,052,359 | 10,196,241 | 10,175,213 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | – | 1,255 | 3,550 | ||||||||||
Diluted weighted average shares | 10,052,359 | 10,197,496 | 10,178,763 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.17 | $ | 0.12 | $ | 0.25 | |||||||
Diluted | $ | 0.17 | $ | 0.12 | $ | 0.25 | |||||||
The table below includes information related to stock options that were outstanding at the end of each respective year but have been excluded from the computation of weighted-average stock options for dilutive securities due to the option exercise price exceeding the average market price per share of our common stock for the fiscal year. | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock options excluded | 363,000 | 368,000 | 118,000 | ||||||||||
Weighted average exercise price of stock options | $ | 2.83 | $ | 2.84 | $ | 3.65 | |||||||
Average market price of common stock | $ | 2.24 | $ | 2.22 | $ | 2.73 | |||||||
Note_9_Related_Parties
Note 9 - Related Parties | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 9 – Related Parties | |
The Company leased on a month-to-month basis through September 30, 2012 one warehouse in Oklahoma from a company owned by David E. Chymiak and Kenneth A. Chymiak. The total payments made on the lease to this company were $0.1 million for each of the years ended September 30, 2012 and 2011. | |
David E. Chymiak and Kenneth A. Chymiak beneficially owned 26% and 22%, respectively, of the Company’s outstanding common stock at September 30, 2013. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Note 10 – Commitments and Contingencies | |
The Company leases and rents various office and warehouse properties in Georgia, North Carolina and Pennsylvania. The terms on its operating leases vary but all mature in less than one year and contain renewal options or are rented on a month-to-month basis. | |
Rental payments associated with leased properties totaled approximately $37,000, $0.2 million and $0.2 million for the years ended September 30, 2013, 2012 and 2011, respectively. The Company’s minimum annual future obligations as of September 30, 2013 under all existing operating leases are $4,000 for fiscal year 2014. The Company has no further minimum annual future obligations as all of its existing operating leases expire in fiscal year 2014. |
Note_11_Quarterly_Results_of_O
Note 11 - Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
Note 11 – Quarterly Results of Operations (Unaudited) | |||||||||||||||||
The following is a summary of the quarterly results of operations for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended 2013 | |||||||||||||||||
Net sales and service income | $ | 9,616,198 | $ | 8,225,039 | $ | 7,155,201 | $ | 8,361,154 | |||||||||
Gross profit | $ | 3,145,828 | $ | 2,145,797 | $ | 2,028,862 | $ | 2,252,833 | |||||||||
Net income (loss) | $ | 797,417 | $ | 296,309 | $ | 235,520 | $ | 340,470 | |||||||||
Basic earnings (loss) per common share | $ | 0.08 | $ | 0.03 | $ | 0.02 | $ | 0.03 | |||||||||
Diluted earnings (loss) per common share | $ | 0.08 | $ | 0.03 | $ | 0.02 | $ | 0.03 | |||||||||
Fiscal year ended 2012 | |||||||||||||||||
Net sales and service income | $ | 9,004,395 | $ | 9,230,956 | $ | 8,498,773 | $ | 8,482,279 | |||||||||
Gross profit | $ | 2,739,021 | $ | 2,527,319 | $ | 2,587,836 | $ | 2,507,267 | |||||||||
Net income | $ | 446,780 | $ | (76,279 | ) | $ | 459,298 | $ | 420,693 | ||||||||
Basic earnings (loss) per common share | $ | 0.04 | $ | (0.01 | ) | $ | 0.05 | $ | 0.04 | ||||||||
Diluted earnings (loss) per common share | $ | 0.04 | $ | (0.01 | ) | $ | 0.05 | $ | 0.04 | ||||||||
Fiscal year ended 2011 | |||||||||||||||||
Net sales and service income | $ | 9,229,446 | $ | 8,896,705 | $ | 8,695,205 | $ | 11,258,174 | |||||||||
Gross profit | $ | 2,879,565 | $ | 2,684,710 | $ | 2,567,397 | $ | 3,419,176 | |||||||||
Net income | $ | 740,635 | $ | 598,706 | $ | 467,577 | $ | 729,389 | |||||||||
Basic earnings per common share | $ | 0.07 | $ | 0.06 | $ | 0.05 | $ | 0.07 | |||||||||
Diluted earnings per common share | $ | 0.07 | $ | 0.06 | $ | 0.05 | $ | 0.07 | |||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ' | ||||||||||||||||||||
2 | The following financial statement Schedule II – Valuation and Qualifying Accounts for the years ended September 30, 2013, 2012 and 2011 is filed as part of this report. All other financial statement schedules have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the financial statements or notes thereto contained in Part II, Item 8 of this current report. | ||||||||||||||||||||
Schedule II – Valuation and Qualifying Accounts | |||||||||||||||||||||
Balance at | Charged to | Write offs | Recoveries | Balance at | |||||||||||||||||
Beginning | Costs and | End | |||||||||||||||||||
of Year | Expenses | of Year | |||||||||||||||||||
Year Ended September 30, 2013 | |||||||||||||||||||||
Allowance for Doubtful Accounts | $ | 300,000 | - | (5,692 | ) | 5,692 | $ | 300,000 | |||||||||||||
Allowance for Excess and Obsolete Inventory | $ | 1,000,000 | 1,044,913 | (294,913 | ) | - | $ | 1,750,000 | |||||||||||||
Year Ended September 30, 2012 | |||||||||||||||||||||
Allowance for Doubtful Accounts | $ | 300,000 | - | (2,404 | ) | 2,404 | $ | 300,000 | |||||||||||||
Allowance for Excess and Obsolete Inventory | $ | 1,556,000 | 580,587 | (1,136,587 | ) | - | $ | 1,000,000 | |||||||||||||
Year Ended September 30, 2011 | |||||||||||||||||||||
Allowance for Doubtful Accounts | $ | 300,000 | 3,453 | (3,453 | ) | - | $ | 300,000 | |||||||||||||
Allowance for Excess and Obsolete Inventory | $ | 2,545,000 | 415,808 | (1,404,808 | ) | - | $ | 1,556,000 | |||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Principles of consolidation and segment reporting | |
The consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its wholly owned subsidiaries: Tulsat Corporation, Tulsat-Atlanta LLC, ADDvantage Technologies Group of Nebraska, Inc. (dba Tulsat-Nebraska), ADDvantage Technologies Group of Texas, Inc. (dba Tulsat-Texas), NCS Industries, Inc., ADDvantage Technologies Group of Missouri, Inc. (dba ComTech Services) and Adams Global Communications, LLC. All significant inter-company balances and transactions have been eliminated in consolidation. In addition, each subsidiary represents a separate operating segment of the Company and is aggregated for segment reporting purposes. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and cash equivalents | |
Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. | |
Receivables, Policy [Policy Text Block] | ' |
Accounts receivable | |
Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not charge interest on past due accounts. | |
Inventory, Policy [Policy Text Block] | ' |
Inventory valuation | |
Inventory consists of new and used electronic components for the cable television industry. Inventory is stated at the lower of cost or market with market defined principally as net realizable value. Cost is determined using the weighted-average method. The Company records inventory reserve provisions to reflect inventory at its estimated realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and equipment | |
Property and equipment consists of software, office equipment, warehouse and service equipment and buildings with estimated useful lives generally of 3 years, 5 years, 10 years and 40 years, respectively. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remainder of the lease agreement. Gains or losses from the ordinary sale or retirement of property and equipment are recorded in other income (expense). Repairs and maintenance costs are generally expensed as incurred, whereas major improvements are capitalized. Depreciation and amortization expense was $0.3 million, $0.4 million and $0.4 million for the years ended September 30, 2013, 2012 and 2011, respectively. | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' |
Goodwill | |
Goodwill represents the excess of cost over fair value of the assets of businesses acquired. Goodwill is evaluated at least annually for impairment by first comparing our estimate of the fair value of the reporting unit, or operating segment, with the reporting unit’s carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, a computation of the implied fair value of goodwill would then be compared to its related carrying value. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized in the amount of the excess. Judgments and assumptions are inherent in our estimate of future cash flows used to determine the estimate of the reporting unit’s fair value. The use of alternate judgments and/or assumptions could result in the recognition of different levels of impairment charges in the financial statements. At September 30, 2013 and 2012, the fair value of our reporting unit exceeded its carrying value, so goodwill was not impaired. | |
Income Tax, Policy [Policy Text Block] | ' |
Income taxes | |
The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue recognition and product line reporting | |
The Company’s principal sources of revenues are from sales of new, refurbished or used equipment and repair services. As a distributor for several cable television equipment manufacturers, the Company offers a broad selection of inventoried and non-inventoried products. The Company’s sales of different products fluctuate from year to year as its customers’ needs change. Because the Company’s product line sales change from year to year, the Company does not report sales by product line for management reporting purposes and does not disclose sales by product line in these consolidated financial statements. | |
The Company recognizes revenue for product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed and determinable and the collection of the related receivable is probable, which is generally at the time of shipment. The stated shipping terms are FOB shipping point per the Company's sales agreements with its customers. Accruals are established for expected returns based on historical activity. Revenue for services is recognized when the repair is completed and the product is shipped back to the customer. | |
Derivatives, Policy [Policy Text Block] | ' |
Derivatives | |
Derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portions of the changes in the fair value of the derivative are recorded in Other Comprehensive Income and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in other income (expense). The Company's objective of holding derivatives was to minimize the risk of interest rate fluctuation. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Freight | |
Amounts billed to customers for shipping and handling represent revenues earned and are included in net new sales income, net refurbished sales income and net service income in the accompanying consolidated statements of income and comprehensive income. Actual costs for shipping and handling of these sales are included in cost of sales. | |
Advertising Costs, Policy [Policy Text Block] | ' |
Advertising costs | |
Advertising costs are expensed as incurred. Advertising expense was $0.2 million for each of the years ended September 30, 2013, 2012 and 2011, respectively. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Management estimates | |
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the cable industry could have a significant impact on the value of the Company's inventory and operating results. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations of credit risk | |
The Company holds cash with one major financial institution, which at times exceeds FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. | |
Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs in-depth credit evaluations for all new customers but does not require collateral to support customer receivables. The Company had no customer in 2013, 2012 or 2011 that contributed in excess of 10% of the total net sales. The Company’s sales to foreign (non-U.S. based customers) were approximately $3.3 million, $5.7 million and $4.5 million for the years ended September 30, 2013, 2012 and 2011, respectively. In 2013, the Company purchased approximately 18% of its inventory either directly from Cisco or indirectly through their primary stocking distributor and approximately 29% of its inventory from Motorola. The concentration of suppliers of the Company’s inventory subjects the Company to risk. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Employee stock-based awards | |
Share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their grant date fair value over the requisite service period. The Company determines the fair value of the options issued, using the Black-Scholes valuation model, and amortizes the calculated value over the vesting term of the stock options. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of income and comprehensive income. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings per share | |
Basic earnings per share are based on the sum of the average number of common shares outstanding and issuable restricted and deferred shares. Diluted earnings per share include any dilutive effect of stock options, restricted stock and convertible preferred stock. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair value of financial instruments | |
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The carrying value of the Company’s line of credit and term debt approximates fair value since their interest rates fluctuate periodically based on a floating interest rate. |
Note_2_Inventories_Tables
Note 2 - Inventories (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
New | $ | 16,355,035 | $ | 17,283,788 | |||||
Refurbished | 6,125,418 | 6,382,597 | |||||||
Allowance for excess and obsolete inventory | (1,750,000 | ) | (1,000,000 | ) | |||||
$ | 20,730,453 | $ | 22,666,385 |
Note_3_Income_Taxes_Tables
Note 3 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 1,051,351 | $ | 532,000 | $ | 1,159,000 | |||||||
Deferred | (15,000 | ) | 234,000 | 533,000 | |||||||||
$ | 1,036,351 | $ | 766,000 | $ | 1,692,000 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of U.S. federal tax benefit | 5.4 | % | 3.5 | % | 4.6 | % | |||||||
Charges without tax benefit | 1.2 | % | 1.4 | % | 0.7 | % | |||||||
Tax credits and other exclusions | (2.3% | ) | (0.9% | ) | 0.7 | % | |||||||
Company’s effective tax rate | 38.3 | % | 38 | % | 40 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 414,000 | $ | 500,000 | |||||||||
Accounts receivable | 116,000 | 115,000 | |||||||||||
Inventory | 842,000 | 639,000 | |||||||||||
Other, net | 232,000 | 196,000 | |||||||||||
1,604,000 | 1,450,000 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Financial basis in excess of tax basis of certain assets | 731,000 | 592,000 | |||||||||||
Net deferred tax asset | $ | 873,000 | $ | 858,000 | |||||||||
2013 | 2012 | ||||||||||||
Deferred tax asset – current | $ | 1,066,000 | $ | 920,000 | |||||||||
Deferred tax asset (liability) – noncurrent | (193,000 | ) | (62,000 | ) | |||||||||
$ | 873,000 | $ | 858,000 |
Note_4_Accrued_Expenses_Tables
Note 4 - Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Employee costs | $ | 766,201 | $ | 823,978 | |||||
Taxes other than income tax | 154,616 | 176,296 | |||||||
Interest | 996 | 1,153 | |||||||
Other, net | 13,043 | 28,747 | |||||||
$ | 934,856 | $ | 1,030,174 |
Note_5_Line_of_Credit_and_Note1
Note 5 - Line of Credit and Notes Payable (Tables) | 12 Months Ended | |||||
Sep. 30, 2013 | ||||||
Debt Disclosure [Abstract] | ' | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||
2014 | $ | 184,008 | ||||
2015 | 184,008 | |||||
2016 | 184,008 | |||||
2017 | 184,008 | |||||
2018 | 184,008 | |||||
Thereafter | 582,572 | |||||
Total | $ | 1,502,612 |
Note_6_StockBased_Compensation1
Note 6 - Stock-Based Compensation and Preferred Stock (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Note 6 - Stock-Based Compensation and Preferred Stock (Tables) [Line Items] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Options | Weighted | Aggregate | |||||||||||
Average | Intrinsic | ||||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding at September 30, 2012 | 370,000 | $ | 2.83 | ||||||||||
Granted | 30,000 | $ | 2.33 | ||||||||||
Exercised | (2,000 | ) | $ | 1.65 | $ | 940 | |||||||
Expired | – | $ | – | ||||||||||
Forfeited | (35,000 | ) | $ | 2.43 | |||||||||
Outstanding at September 30, 2013 | 363,000 | $ | 2.83 | $ | 0 | ||||||||
Exercisable at September 30, 2013 | 163,000 | $ | 3.3 | $ | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | ||||||||||||
Exercise Price | Stock Options | Exercisable | Remaining | ||||||||||
Outstanding | Stock Options | Contractual | |||||||||||
Outstanding | Life (years) | ||||||||||||
$ | 2.45 | 250,000 | 50,000 | 8.5 | |||||||||
$ | 3.001 | 65,000 | 65,000 | 4.9 | |||||||||
$ | 3.45 | 15,000 | 15,000 | 3.4 | |||||||||
$ | 5.78 | 15,000 | 15,000 | 2.4 | |||||||||
$ | 4.62 | 15,000 | 15,000 | 1.4 | |||||||||
$ | 4.4 | 3,000 | 3,000 | 0.4 | |||||||||
363,000 | 163,000 | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Estimated fair value of options at grant date | $ | 29,040 | $ | 267,925 | |||||||||
Black-Scholes model assumptions: | |||||||||||||
Average expected life (years) | 6 | 6 | |||||||||||
Average expected volatility factor | 41 | % | 41 | % | |||||||||
Average risk-free interest rate | 2.95 | % | 2.99 | % | |||||||||
Average expected dividends yield | – | – | |||||||||||
Employee Stock Option [Member] | ' | ||||||||||||
Note 6 - Stock-Based Compensation and Preferred Stock (Tables) [Line Items] | ' | ||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fiscal year 2008 grant | $ | – | $ | 3,562 | $ | 10,349 | |||||||
Fiscal year 2012 grant | 95,560 | 61,176 | – | ||||||||||
Fiscal year 2013 grant | 1,481 | – | – | ||||||||||
Total compensation expense | $ | 97,041 | $ | 64,738 | $ | 10,349 | |||||||
Restricted Stock [Member] | ' | ||||||||||||
Note 6 - Stock-Based Compensation and Preferred Stock (Tables) [Line Items] | ' | ||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fiscal year 2010 grant | $ | – | $ | – | $ | 25,000 | |||||||
Fiscal year 2011 grant | – | 95,833 | 74,167 | ||||||||||
Fiscal year 2012 grant | 29,167 | 40,833 | – | ||||||||||
Fiscal year 2013 grant | 40,833 | – | – | ||||||||||
$ | 70,000 | $ | 136,666 | $ | 99,167 |
Note_8_Earnings_per_Share_Tabl
Note 8 - Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings per share: [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income attributable to common shareholders | $ | 1,669,716 | $ | 1,250,492 | $ | 2,536,307 | |||||||
Basic weighted average shares | 10,052,359 | 10,196,241 | 10,175,213 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | – | 1,255 | 3,550 | ||||||||||
Diluted weighted average shares | 10,052,359 | 10,197,496 | 10,178,763 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.17 | $ | 0.12 | $ | 0.25 | |||||||
Diluted | $ | 0.17 | $ | 0.12 | $ | 0.25 | |||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock options excluded | 363,000 | 368,000 | 118,000 | ||||||||||
Weighted average exercise price of stock options | $ | 2.83 | $ | 2.84 | $ | 3.65 | |||||||
Average market price of common stock | $ | 2.24 | $ | 2.22 | $ | 2.73 |
Note_11_Quarterly_Results_of_O1
Note 11 - Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Fiscal year ended 2013 | |||||||||||||||||
Net sales and service income | $ | 9,616,198 | $ | 8,225,039 | $ | 7,155,201 | $ | 8,361,154 | |||||||||
Gross profit | $ | 3,145,828 | $ | 2,145,797 | $ | 2,028,862 | $ | 2,252,833 | |||||||||
Net income (loss) | $ | 797,417 | $ | 296,309 | $ | 235,520 | $ | 340,470 | |||||||||
Basic earnings (loss) per common share | $ | 0.08 | $ | 0.03 | $ | 0.02 | $ | 0.03 | |||||||||
Diluted earnings (loss) per common share | $ | 0.08 | $ | 0.03 | $ | 0.02 | $ | 0.03 | |||||||||
Fiscal year ended 2012 | |||||||||||||||||
Net sales and service income | $ | 9,004,395 | $ | 9,230,956 | $ | 8,498,773 | $ | 8,482,279 | |||||||||
Gross profit | $ | 2,739,021 | $ | 2,527,319 | $ | 2,587,836 | $ | 2,507,267 | |||||||||
Net income | $ | 446,780 | $ | (76,279 | ) | $ | 459,298 | $ | 420,693 | ||||||||
Basic earnings (loss) per common share | $ | 0.04 | $ | (0.01 | ) | $ | 0.05 | $ | 0.04 | ||||||||
Diluted earnings (loss) per common share | $ | 0.04 | $ | (0.01 | ) | $ | 0.05 | $ | 0.04 | ||||||||
Fiscal year ended 2011 | |||||||||||||||||
Net sales and service income | $ | 9,229,446 | $ | 8,896,705 | $ | 8,695,205 | $ | 11,258,174 | |||||||||
Gross profit | $ | 2,879,565 | $ | 2,684,710 | $ | 2,567,397 | $ | 3,419,176 | |||||||||
Net income | $ | 740,635 | $ | 598,706 | $ | 467,577 | $ | 729,389 | |||||||||
Basic earnings per common share | $ | 0.07 | $ | 0.06 | $ | 0.05 | $ | 0.07 | |||||||||
Diluted earnings per common share | $ | 0.07 | $ | 0.06 | $ | 0.05 | $ | 0.07 |
Note_1_Description_of_Business1
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Depreciation, Depletion and Amortization (in Dollars) | $330,467 | $356,091 | $370,965 |
Advertising Expense (in Dollars) | 200,000 | 200,000 | 200,000 |
Non-US Based Customer [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Revenues (in Dollars) | $3,300,000 | $5,700,000 | $4,500,000 |
Cisco [Member] | Supplier Concentration Risk [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 18.00% | ' | ' |
Motorola [Member] | Supplier Concentration Risk [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 29.00% | ' | ' |
Software and Software Development Costs [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Office Equipment [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Warehouse and Service Equipment [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Building [Member] | ' | ' | ' |
Note 1 - Description of Business and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Note_2_Inventories_Details
Note 2 - Inventories (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Inventory Disclosure [Abstract] | ' | ' | ' |
Inventory Write-down | $1,044,913 | $580,587 | $407,303 |
Note_2_Inventories_Details_Inv
Note 2 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Inventories [Abstract] | ' | ' |
New | $16,355,035 | $17,283,788 |
Refurbished | 6,125,418 | 6,382,597 |
Allowance for excess and obsolete inventory | -1,750,000 | -1,000,000 |
$20,730,453 | $22,666,385 |
Note_3_Income_Taxes_Details
Note 3 - Income Taxes (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $1.10 |
Annual Deductible Amount of Operating Loss Carryforward, Limit Amount | $0.30 |
Note_3_Income_Taxes_Details_Pr
Note 3 - Income Taxes (Details) - Provision (Benefit) for Income Taxes (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Provision (Benefit) for Income Taxes [Abstract] | ' | ' | ' |
Current | $1,051,351 | $532,000 | $1,159,000 |
Deferred | -15,000 | 234,000 | 533,000 |
$1,036,351 | $766,000 | $1,692,000 |
Note_3_Income_Taxes_Details_Su
Note 3 - Income Taxes (Details) - Summary of Differences Between U.S. Federal Statutory Rate and Company's Effective Tax Rate | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Summary of Differences Between U.S. Federal Statutory Rate and Company's Effective Tax Rate [Abstract] | ' | ' | ' |
Statutory tax rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of U.S. federal tax benefit | 5.40% | 3.50% | 4.60% |
Charges without tax benefit | 1.20% | 1.40% | 0.70% |
Tax credits and other exclusions | -2.30% | -0.90% | 0.70% |
Companybs effective tax rate | 38.30% | 38.00% | 40.00% |
Note_3_Income_Taxes_Details_De
Note 3 - Income Taxes (Details) - Deferred Tax Assets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $414,000 | $500,000 |
Accounts receivable | 116,000 | 115,000 |
Inventory | 842,000 | 639,000 |
Other, net | 232,000 | 196,000 |
1,604,000 | 1,450,000 | |
Deferred tax liabilities: | ' | ' |
Financial basis in excess of tax basis of certain assets | 731,000 | 592,000 |
Net deferred tax asset | 873,000 | 858,000 |
Deferred tax asset b current | 1,066,000 | 920,000 |
Deferred tax asset (liability) b noncurrent | ($193,000) | ($62,000) |
Note_4_Accrued_Expenses_Detail
Note 4 - Accrued Expenses (Details) - Accrued Expenses (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Accrued Expenses [Abstract] | ' | ' |
Employee costs | $766,201 | $823,978 |
Taxes other than income tax | 154,616 | 176,296 |
Interest | 996 | 1,153 |
Other, net | 13,043 | 28,747 |
$934,856 | $1,030,174 |
Note_5_Line_of_Credit_and_Note2
Note 5 - Line of Credit and Notes Payable (Details) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Note 5 - Line of Credit and Notes Payable (Details) [Line Items] | ' |
Loans Payable (in Dollars) | $1,500,000 |
Debt Instrument, Frequency of Periodic Payment | 'monthly |
Debt Instrument, Periodic Payment, Principal (in Dollars) | 15,334 |
Debt Instrument, Interest Rate at Period End | 1.58% |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' |
Note 5 - Line of Credit and Notes Payable (Details) [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Line of Credit [Member] | ' |
Note 5 - Line of Credit and Notes Payable (Details) [Line Items] | ' |
Debt Instrument, Interest Rate at Period End | 2.93% |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 7,000,000 |
Percentage of Qualified Accounts Receivable Used In Determination of Maximum Borrowing Capacity of Line of Credit | 80.00% |
Percentage of Qualified Inventory Used In Determination of Maximum Borrowing Capacity of Line of Credit | 50.00% |
Line of Credit Facility, Current Borrowing Capacity (in Dollars) | $7,000,000 |
Fixed Charge Coverage Ratio | 1.25 |
London Interbank Offered Rate (LIBOR) [Member] | ' |
Note 5 - Line of Credit and Notes Payable (Details) [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.40% |
Note_5_Line_of_Credit_and_Note3
Note 5 - Line of Credit and Notes Payable (Details) - Aggregate Minimum Maturities of Notes Payable (USD $) | Sep. 30, 2013 |
Aggregate Minimum Maturities of Notes Payable [Abstract] | ' |
2014 | $184,008 |
2015 | 184,008 |
2016 | 184,008 |
2017 | 184,008 |
2018 | 184,008 |
Thereafter | 582,572 |
Total | $1,502,612 |
Note_6_StockBased_Compensation2
Note 6 - Stock-Based Compensation and Preferred Stock (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | 31-May-11 | |
Employees [Member] | Board of Directors [Member] | Board of Directors [Member] | Board of Directors [Member] | Board of Directors and Certain Employees [Member] | |||||
Note 6 - Stock-Based Compensation and Preferred Stock (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Increase In Number of Shares of Incentive Stock Plan Upon Issuance of Additional Shares | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | 1,024,656 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | 280,141 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Stock Options, Expiration Period | ' | ' | ' | ' | '10 years | ' | ' | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | ' | $940 | $2,640 | $5,670 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 30,000 | 250,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | 111,189 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | 31,815 | 31,969 | ' | 58,920 |
Restricted Stock Holding Period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of Restricted Shares Upon Issuance (in Dollars) | ' | $70,000 | $70,000 | $170,000 | ' | ' | ' | ' | ' |
Stock-based Compensation, Amortization Period | ' | '12 months | ' | ' | ' | ' | ' | ' | ' |
Note_6_StockBased_Compensation3
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Summary of the Status of the Company's Stock Options (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Summary of the Status of the Company's Stock Options [Abstract] | ' | ' | ' |
Options | 363,000 | 370,000 | ' |
Weighted Average Exercise Price (in Dollars per share) | $2.83 | $2.83 | ' |
Aggregate Intrinsic Value (in Dollars) | $0 | ' | ' |
Exercisable at September 30, 2013 | 163,000 | ' | ' |
Exercisable at September 30, 2013 (in Dollars per share) | $3.30 | ' | ' |
Exercisable at September 30, 2013 (in Dollars) | 0 | ' | ' |
Granted | 30,000 | 250,000 | ' |
Granted (in Dollars per share) | $2.33 | ' | ' |
Exercised | -2,000 | ' | ' |
Exercised (in Dollars per share) | $1.65 | ' | ' |
Exercised (in Dollars) | $940 | $2,640 | $5,670 |
Forfeited | -35,000 | ' | ' |
Forfeited (in Dollars per share) | $2.43 | ' | ' |
Note_6_StockBased_Compensation4
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Stock Options Outstanding | 363,000 |
Exercisable Stock Options Outstanding | 163,000 |
$2.450 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $2.45 |
Stock Options Outstanding | 250,000 |
Exercisable Stock Options Outstanding | 50,000 |
Remaining Contractual Life | '8 years 6 months |
$3.001 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $3.00 |
Stock Options Outstanding | 65,000 |
Exercisable Stock Options Outstanding | 65,000 |
Remaining Contractual Life | '4 years 328 days |
$3.450 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $3.45 |
Stock Options Outstanding | 15,000 |
Exercisable Stock Options Outstanding | 15,000 |
Remaining Contractual Life | '3 years 146 days |
$5.780 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $5.78 |
Stock Options Outstanding | 15,000 |
Exercisable Stock Options Outstanding | 15,000 |
Remaining Contractual Life | '2 years 146 days |
$4.620 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $4.62 |
Stock Options Outstanding | 15,000 |
Exercisable Stock Options Outstanding | 15,000 |
Remaining Contractual Life | '1 year 146 days |
$4.400 [Member] | ' |
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Outstanding and Exercisable Stock Options [Line Items] | ' |
Exercise Price (in Dollars per share) | $4.40 |
Stock Options Outstanding | 3,000 |
Exercisable Stock Options Outstanding | 3,000 |
Remaining Contractual Life | '146 days |
Note_6_StockBased_Compensation5
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Black-Scholes Option Valuation Model Assumptions (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Black-Scholes Option Valuation Model Assumptions [Abstract] | ' | ' |
Estimated fair value of options at grant date (in Dollars per share) | $29,040 | $267,925 |
Average expected life (years) | '6 years | '6 years |
Average expected volatility factor | 41.00% | 41.00% |
Average risk-free interest rate | 2.95% | 2.99% |
Note_6_StockBased_Compensation6
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Compensation Expense Related to Stock Options (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | $97,041 | $64,738 | $10,349 |
Fiscal Year 2008 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | ' | 3,562 | 10,349 |
Fiscal Year 2012 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | 95,560 | 61,176 | ' |
Fiscal Year 2013 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | $1,481 | ' | ' |
Note_6_StockBased_Compensation7
Note 6 - Stock-Based Compensation and Preferred Stock (Details) - Compensation Expense Related to Restricted Stock (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | $70,000 | $136,666 | $99,167 |
Fiscal Year 2010 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | ' | ' | 25,000 |
Fiscal Year 2011 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | ' | 95,833 | 74,167 |
Fiscal Year 2012 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | 29,167 | 40,833 | ' |
Fiscal Year 2013 Grant [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Compensation expense | $40,833 | ' | ' |
Note_7_Retirement_Plan_Details
Note 7 - Retirement Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Number of Years of Employee Service Required to be Eligible for 401(k) Plan | '1 year | ' | ' |
Defined Contribution Plan, Cost Recognized | $0.20 | $0.20 | $0.20 |
Note_8_Earnings_per_Share_Deta
Note 8 - Earnings per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' |
Net income attributable to common shareholders (in Dollars) | $1,669,716 | $1,250,492 | $2,536,307 |
Basic weighted average shares | 10,052,359 | 10,196,241 | 10,175,213 |
Effect of dilutive securities: | ' | ' | ' |
Stock options | ' | 1,255 | 3,550 |
Diluted weighted average shares | 10,052,359 | 10,197,496 | 10,178,763 |
Earnings per common share: | ' | ' | ' |
Basic (in Dollars per share) | $0.17 | $0.12 | $0.25 |
Diluted (in Dollars per share) | $0.17 | $0.12 | $0.25 |
Note_8_Earnings_per_Share_Deta1
Note 8 - Earnings per Share (Details) - Anti-dilutive Securities (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Anti-dilutive Securities [Abstract] | ' | ' | ' |
Stock options excluded (in Shares) | 363,000 | 368,000 | 118,000 |
Weighted average exercise price of stock options | $2.83 | $2.84 | $3.65 |
Average market price of common stock | $2.24 | $2.22 | $2.73 |
Note_9_Related_Parties_Details
Note 9 - Related Parties (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Note 9 - Related Parties (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0.10 | $0.10 | $0.10 |
David E. Chymiak [Member] | ' | ' | ' |
Note 9 - Related Parties (Details) [Line Items] | ' | ' | ' |
Percentage of Outstanding Common Stock Owned by a Related Party | 26.00% | ' | ' |
Kenneth A. Chymiak [Member] | ' | ' | ' |
Note 9 - Related Parties (Details) [Line Items] | ' | ' | ' |
Percentage of Outstanding Common Stock Owned by a Related Party | 22.00% | ' | ' |
Note_10_Commitments_and_Contin1
Note 10 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | $37,000 | $200,000 | $200,000 |
Operating Leases, Future Minimum Payments Due | $4,000 | ' | ' |
Note_11_Quarterly_Results_of_O2
Note 11 - Quarterly Results of Operations (Unaudited) (Details) - Summary of Quarterly Results of Operations (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Fiscal year ended 2013 | ' | ' | ' |
Net sales and service income | $33,357,592 | $35,216,403 | $38,079,530 |
Gross profit | 9,573,320 | 10,361,443 | 11,550,848 |
Basic earnings (loss) per common share (in Dollars per share) | $0.17 | $0.12 | $0.25 |
Diluted earnings (loss) per common share (in Dollars per share) | $0.17 | $0.12 | $0.25 |
First Quarter [Member] | ' | ' | ' |
Fiscal year ended 2013 | ' | ' | ' |
Net sales and service income | 9,616,198 | 9,004,395 | 9,229,446 |
Gross profit | 3,145,828 | 2,739,021 | 2,879,565 |
Net income | 797,417 | 446,780 | 740,635 |
Basic earnings (loss) per common share (in Dollars per share) | $0.08 | $0.04 | $0.07 |
Diluted earnings (loss) per common share (in Dollars per share) | $0.08 | $0.04 | $0.07 |
Second Quarter [Member] | ' | ' | ' |
Fiscal year ended 2013 | ' | ' | ' |
Net sales and service income | 8,225,039 | 9,230,956 | 8,896,705 |
Gross profit | 2,145,797 | 2,527,319 | 2,684,710 |
Net income | 296,309 | -76,279 | 598,706 |
Basic earnings (loss) per common share (in Dollars per share) | $0.03 | ($0.01) | $0.06 |
Diluted earnings (loss) per common share (in Dollars per share) | $0.03 | ($0.01) | $0.06 |
Third Quarter [Member] | ' | ' | ' |
Fiscal year ended 2013 | ' | ' | ' |
Net sales and service income | 7,155,201 | 8,498,773 | 8,695,205 |
Gross profit | 2,028,862 | 2,587,836 | 2,567,397 |
Net income | 235,520 | 459,298 | 467,577 |
Basic earnings (loss) per common share (in Dollars per share) | $0.02 | $0.05 | $0.05 |
Diluted earnings (loss) per common share (in Dollars per share) | $0.02 | $0.05 | $0.05 |
Fourth Quarter [Member] | ' | ' | ' |
Fiscal year ended 2013 | ' | ' | ' |
Net sales and service income | 8,361,154 | 8,482,279 | 11,258,174 |
Gross profit | 2,252,833 | 2,507,267 | 3,419,176 |
Net income | $340,470 | $420,693 | $729,389 |
Basic earnings (loss) per common share (in Dollars per share) | $0.03 | $0.04 | $0.07 |
Diluted earnings (loss) per common share (in Dollars per share) | $0.03 | $0.04 | $0.07 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation Allowance, Beginning Balance | $300,000 | $300,000 | $300,000 |
Valuation Allowance, Charged to Costs and Expenses | ' | ' | 3,453 |
Valuation Allowance, Write offs | -5,692 | -2,404 | -3,453 |
Valuation Allowance, Recoveries | 5,692 | 2,404 | ' |
Valuation Allowance, Ending Balance | 300,000 | 300,000 | 300,000 |
Inventory Valuation Reserve [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation Allowance, Beginning Balance | 1,000,000 | 1,556,000 | 2,545,000 |
Valuation Allowance, Charged to Costs and Expenses | 1,044,913 | 580,587 | 415,808 |
Valuation Allowance, Write offs | -294,913 | -1,136,587 | -1,404,808 |
Valuation Allowance, Ending Balance | $1,750,000 | $1,000,000 | $1,556,000 |