Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ADDVANTAGE TECHNOLOGIES GROUP INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 10,041,206 |
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-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $3,989,694 | $8,476,725 |
Accounts receivable, net of allowance of $200,000 and $300,000, respectively | 3,828,916 | 2,390,979 |
Other receivable | 1,413,001 | ' |
Income tax refund receivable | 553,912 | 258,790 |
Inventories, net of allowance for excess and obsolete inventory of $2,200,000 and $1,600,000, respectively | 23,728,181 | 18,011,706 |
Prepaid expenses | 187,234 | 106,509 |
Deferred income taxes | 1,257,000 | 1,066,000 |
Current assets of discontinued operations held for sale | 12,590 | 3,267,917 |
Total current assets | 34,970,528 | 33,578,626 |
Property and equipment, at cost: | ' | ' |
Land and buildings | 7,208,679 | 7,208,679 |
Machinery and equipment | 3,306,754 | 2,991,412 |
Leasehold improvements | 129,472 | 9,633 |
Total property and equipment, at cost | 10,644,905 | 10,209,724 |
Less accumulated depreciation | -4,090,033 | -3,831,238 |
Net property and equipment | 6,554,872 | 6,378,486 |
Intangibles, net of accumulated amortization | 7,905,017 | ' |
Goodwill | 3,004,482 | 1,150,060 |
Other assets | 131,428 | 11,428 |
Assets of discontinued operations held for sale | ' | 1,997,520 |
Total assets | 52,566,327 | 43,116,120 |
Current liabilities: | ' | ' |
Accounts payable | 3,229,664 | 1,138,494 |
Accrued expenses | 1,008,286 | 878,474 |
Notes payable – current portion | 943,850 | 184,008 |
Other current liabilities | 973,230 | ' |
Current liabilities of discontinued operations held for sale | 4,500 | 226,757 |
Total current liabilities | 6,159,530 | 2,427,733 |
Notes payable, less current portion | 5,436,617 | 1,318,604 |
Deferred income taxes | 236,000 | 193,000 |
Other liabilities | 1,968,747 | ' |
Shareholders’ equity: | ' | ' |
Common stock, $.01 par value; 30,000,000 shares authorized; 10,541,864 and 10,499,138 shares issued, respectively; and 10,041,206 and 9,998,480 shares outstanding, respectively | 105,419 | 104,991 |
Paid in capital | -5,364,063 | -5,578,500 |
Retained earnings | 45,024,091 | 45,650,306 |
Total shareholders’ equity before treasury stock | 39,765,447 | 40,176,797 |
Less: Treasury stock, 500,658 shares, at cost | -1,000,014 | -1,000,014 |
Total shareholders’ equity | 38,765,433 | 39,176,783 |
Total liabilities and shareholders’ equity | $52,566,327 | $43,116,120 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Accounts receivable, allowance (in Dollars) | $200,000 | $300,000 |
Allowance for excess and obsolete inventory (in Dollars) | $2,200,000 | $1,600,000 |
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 | 10,541,864 | 10,499,138 |
Common stock, shares outstanding | 10,041,206 | 9,998,480 |
Treasury stock, shares | 500,658 | 500,658 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (Unauditied) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Sales | $9,323,158 | $6,372,108 | $23,756,707 | $21,035,707 |
Cost of sales | 6,103,103 | 4,520,253 | 16,442,257 | 14,698,776 |
Gross profit | 3,220,055 | 1,851,855 | 7,314,450 | 6,336,931 |
Operating, selling, general and administrative expenses | 2,898,216 | 1,410,494 | 7,187,512 | 4,344,895 |
Operating income | 321,839 | 441,361 | 126,938 | 1,992,036 |
Interest expense | 100,113 | 6,377 | 131,107 | 19,767 |
Income (loss) before provision for income taxes | 221,726 | 434,984 | -4,169 | 1,972,269 |
Provision (benefit) for income taxes | 44,000 | 165,000 | -44,000 | 749,000 |
Income from continuing operations | 177,726 | 269,984 | 39,831 | 1,223,269 |
Discontinued operations: | ' | ' | ' | ' |
Income (loss) from discontinued operations, net of tax | -2,135 | -34,464 | -36,211 | 105,977 |
Loss on sale of discontinued operations, net of tax | -73,393 | ' | -629,835 | ' |
Discontinued operations, net of tax | -75,528 | -34,464 | -666,046 | 105,977 |
Net income (loss) | $102,198 | $235,520 | ($626,215) | $1,329,246 |
Basic | ' | ' | ' | ' |
Continuing operations (in Dollars per share) | $0.02 | $0.03 | ' | $0.12 |
Discontinued operations (in Dollars per share) | ($0.01) | ' | ($0.07) | $0.01 |
Net income (loss) (in Dollars per share) | $0.01 | $0.02 | ($0.06) | $0.13 |
Diluted | ' | ' | ' | ' |
Continuing operations (in Dollars per share) | $0.02 | $0.03 | ' | $0.12 |
Discontinued operations (in Dollars per share) | ($0.01) | ' | ($0.07) | $0.01 |
Net income (loss) (in Dollars per share) | $0.01 | $0.02 | ($0.06) | $0.13 |
Weighted average shares used in per share calculation: | ' | ' | ' | ' |
Basic (in Shares) | 10,041,206 | 9,998,480 | 10,014,839 | 10,070,567 |
Diluted (in Shares) | 10,087,115 | 9,998,480 | 10,051,242 | 10,070,781 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Activities | ' | ' |
Net income (loss) | ($626,215) | $1,329,246 |
Net income (loss) from discontinued operations | -666,046 | 105,977 |
Net income from continuing operations | 39,831 | 1,223,269 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 581,779 | 199,790 |
Provision for excess and obsolete inventories | 451,351 | 450,000 |
Deferred income tax benefit | -148,000 | -5,000 |
Share based compensation expense | 134,643 | 125,651 |
Accounts receivable | 213,205 | 684,944 |
Income tax refund receivable | -295,122 | 396,337 |
Inventories | -3,201,256 | 907,996 |
Prepaid expenses | -502 | 10,792 |
Other assets | ' | 2,350 |
Accounts payable | 270,233 | 390,330 |
Income tax payable | ' | 84,363 |
Accrued expenses | 52,706 | -202,591 |
Net cash provided by (used in) operating activities – continuing operations | -1,901,132 | 4,268,231 |
Net cash provided by (used in) operating activities – discontinued operations | 272,372 | -476,978 |
Net cash provided by (used in) operating activities | -1,628,760 | 3,791,253 |
Investing Activities | ' | ' |
Acquisition of business, net of cash acquired | -9,630,647 | ' |
Additions to machinery and equipment | -29,658 | -136,873 |
Proceeds from sale of discontinued operations | 2,000,000 | ' |
Net cash used in investing activities | -7,660,305 | -136,873 |
Financing Activities | ' | ' |
Proceeds on notes payable | 5,000,000 | ' |
Payments on notes payable | -197,966 | -138,006 |
Purchase of treasury stock | ' | -479,914 |
Proceeds from stock options exercised | ' | 3,300 |
Net cash provided by (used in) financing activities | 4,802,034 | -614,620 |
Net increase (decrease) in cash and cash equivalents | -4,487,031 | 3,039,760 |
Cash and cash equivalents at beginning of period | 8,476,725 | 5,229,743 |
Cash and cash equivalents at end of period | 3,989,694 | 8,269,503 |
Supplemental cash flow information: | ' | ' |
Cash paid for interest | 80,319 | 19,885 |
Cash paid for income taxes | 32,000 | 399,000 |
Supplemental noncash investing activities: | ' | ' |
Deferred guaranteed payments for acquisition of business | -2,744,338 | ' |
Other receivable related to proceeds from sale of asset held for sale | $1,413,001 | ' |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Description of Business | 9 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1 - Basis of Presentation and Description of Business | |
Basis of presentation | |
The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. However, the information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated condensed financial statements not misleading. It is suggested that these consolidated condensed financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended September 30, 2013. | |
ADDvantage Technologies Group, Inc., through its 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 Nave Communications Company (“Nave Communications”) (collectively, the “Company”), sells new, surplus and re-manufactured 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 also repairs cable television equipment for various cable companies. Through Nave Communications, the Company sells certified used telecommunications networking equipment primarily in North America. In addition, Nave Communications also provides decommissioning services for surplus and obsolete equipment, which Nave Communications in turn processes through its recycling services. The Company operates in two business segments, cable television and telecommunications, and product sales consist of different types of equipment used in the cable television and telecommunications equipment industries. | |
Fair value of financial instruments | |
The carrying amounts of accounts receivable and accounts payable approximate fair value due to their short maturities. |
Note_2_Acquisition
Note 2 - Acquisition | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | ||||||||||||||
Note 2 – Acquisition | |||||||||||||||
As part of the Company’s growth strategy, the Company is pursuing an acquisition strategy to expand into the broader telecommunications industry. On February 28, 2014, the Company acquired all of the outstanding common stock of Nave Communications, a telecommunications distributor of certified used telecommunication networking equipment and a recycler of surplus and obsolete telecommunications equipment. This acquisition, along with its retained management team, will diversify the Company’s business outside of the cable television industry and will also allow the Company to capitalize on growth opportunities in both the cable television and telecommunication industries. The preliminary estimated purchase price for Nave Communications includes the following: | |||||||||||||||
Cash payments, net of cash received | $ | 9,630,647 | |||||||||||||
Deferred guaranteed payments (a) | 2,744,338 | ||||||||||||||
Net purchase price | $ | 12,374,985 | |||||||||||||
(a) | This amount represents the present value of $3.0 million in deferred payments, which will be paid in equal annual installments over the next three years. Over the three year period, the Company will ratably record interest expense with the offset being the deferred payment liability. As of June 30, 2014, the deferred guaranteed payments balance is $1.0 million in other current liabilities and $1.8 million in other long-term liabilities. | ||||||||||||||
Under the acquisition method of accounting, the total estimated purchase price is allocated to Nave Communications’ net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of February 28, 2014, the effective date of the acquisition. Any remaining amount is recorded as goodwill. | |||||||||||||||
The following summarizes the preliminary purchase price allocation of the fair value of the assets acquired and the liabilities assumed at February 28, 2014: | |||||||||||||||
Assets acquired: | (in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 113 | |||||||||||||
Accounts receivable | 1,651 | ||||||||||||||
Inventories | 2,287 | ||||||||||||||
Property and equipment | 406 | ||||||||||||||
Other non-current assets | 120 | ||||||||||||||
Intangible assets | 8,228 | ||||||||||||||
Goodwill | 1,855 | ||||||||||||||
Total assets acquired | 14,660 | ||||||||||||||
Liabilities assumed: | |||||||||||||||
Accounts payable | 1,821 | ||||||||||||||
Accrued expenses | 275 | ||||||||||||||
Capital lease obligation – current portion | 21 | ||||||||||||||
Capital lease obligation | 55 | ||||||||||||||
Total liabilities assumed | 2,172 | ||||||||||||||
Net assets acquired | 12,488 | ||||||||||||||
Less cash acquired | 113 | ||||||||||||||
Net purchase price | $ | 12,375 | |||||||||||||
The acquired intangible assets of approximately $8.2 million consist primarily of customer relationships, technology, trade name, and non-compete agreements with the former owners. | |||||||||||||||
The Company will also make payments over the next three years equal to 70% of Nave Communications’ annual EBITDA in excess of $2.0 million per year. The Company will recognize the expense ratably over the three year period as compensation expense. | |||||||||||||||
The Company has one year from the date of the acquisition to finalize the purchase price allocation, and there may be a material change in the purchase price allocation as presented. The Company is still working with its valuation experts on the valuation of identifiable intangibles and inventories for which any change may impact the goodwill amount recorded. If information becomes available which would indicate material adjustments are required to the preliminary purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. | |||||||||||||||
The unaudited financial information in the table below summarizes the combined results of operations of ADDvantage Technologies Group and Nave Communications for the three and nine months ended June 30, 2014 and June 30, 2013, on a pro forma basis, as though the companies had been combined as of October 1, 2012. The pro forma earnings for the three months ended June 30, 2013 were adjusted to include intangible amortization expense of $0.2 million. The pro forma earnings for the nine months ended June 30, 2014 and June 30, 2013 were adjusted to include intangible amortization expense of $0.7 million. Incremental interest expense of $51 thousand was included in the pro forma earnings for the three months ended June 30, 2013 and $153 thousand in the nine months ended June 30, 2014 and June 30, 2013, as if the $5.0 million term loan used to help fund the acquisition had been entered into on October 1, 2012. The $0.6 million of acquisition-related expenses were excluded from the nine months ended June 30, 2014 and included in the nine month period ending June 30, 2013 as if the acquisition occurred at October 1, 2012. The unaudited pro forma financial information is provided for informational purposes only and does not purport to be indicative of the Company’s combined results of operations which would actually have been obtained had the acquisition taken place on October 1, 2012 nor should it be taken as indicative of our future consolidated results of operations. | |||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Total net sales | n/a(1) | $ | 9,810 | $ | 29,822 | $ | 30,679 | ||||||||
Income from continuing operations | n/a(1) | $ | 52 | $ | 567 | $ | 1,241 | ||||||||
Net income (loss) | n/a(1) | $ | 18 | $ | (100 | ) | $ | 1,347 | |||||||
Earnings (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | n/a(1) | $ | 0.01 | $ | 0.06 | $ | 0.12 | ||||||||
Net income (loss) | n/a(1) | $ | − | $ | (0.01 | ) | $ | 0.13 | |||||||
Diluted: | |||||||||||||||
Continuing operations | n/a(1) | $ | 0.01 | $ | 0.06 | $ | 0.12 | ||||||||
Net income (loss) | n/a(1) | $ | − | $ | (0.01 | ) | $ | 0.13 | |||||||
-1 | These amounts are presented in the unaudited Consolidated Condensed Statement of Operations for the quarter ended June 30, 2014. | ||||||||||||||
Note_3_Discontinued_Operations
Note 3 - Discontinued Operations and Assets Held for Sale | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||||||
Note 3 – Discontinued Operations and Assets Held for Sale | |||||||||||||||||
On January 31, 2014, the Company entered into an agreement to sell the majority of the net assets and operations of Adams Global Communications, LLC (“AGC”) to Adams Cable Equipment, a supplier of customer premise equipment (“CPE”) and other products for the cable television industry, for $2 million in cash, which yielded an after tax loss of $0.6 million. As part of the sales agreement, ADDvantage retained their existing relationship with ARRIS, as well as non-CPE inventory consisting primarily of headend and access and transport equipment. In addition, ADDvantage retained the AGC facility. As part of the agreement, the Company also agreed to not compete in the used CPE market for three years. The Company elected to pursue this opportunity to sell AGC as management determined that AGC did not fit within the Company’s primary cable television equipment distribution business of selling new and used headend and access and transport equipment, and AGC was not performing to the Company’s expectations. | |||||||||||||||||
The calculation of the pretax loss on sale of AGC is as follows: | |||||||||||||||||
Cash proceeds | $ | 2,000,000 | |||||||||||||||
Assets sold: | |||||||||||||||||
Accounts receivable | 454,269 | ||||||||||||||||
Inventories | 2,044,135 | ||||||||||||||||
Prepaid expenses | 12,054 | ||||||||||||||||
Property and equipment | 60,586 | ||||||||||||||||
Goodwill | 410,123 | ||||||||||||||||
Other | 10,805 | ||||||||||||||||
2,991,972 | |||||||||||||||||
Liabilities transferred: | |||||||||||||||||
Accounts payable | 77,675 | ||||||||||||||||
Accrued expenses | 6,075 | ||||||||||||||||
83,750 | |||||||||||||||||
Net assets sold | 2,908,222 | ||||||||||||||||
Pretax loss on sale of net assets of AGC | $ | 908,222 | |||||||||||||||
Assets and liabilities included within discontinued operations held for sale in the Company’s Consolidated Condensed Balance Sheets at June 30, 2014 and September 30, 2013, are as follows: | |||||||||||||||||
June 30, | September 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | − | $ | (110,068 | ) | ||||||||||||
Accounts receivable, net | − | 629,874 | |||||||||||||||
Income tax receivable | 12,590 | 13,590 | |||||||||||||||
Inventories | − | 2,718,747 | |||||||||||||||
Prepaid expenses | − | 15,774 | |||||||||||||||
Current assets of discontinued operations held for sale | $ | 12,590 | $ | 3,267,917 | |||||||||||||
Property and equipment, at cost: | |||||||||||||||||
Land and building | $ | − | $ | 1,585,594 | |||||||||||||
Machinery and equipment | − | 134,010 | |||||||||||||||
Less accumulated depreciation | − | (132,207 | ) | ||||||||||||||
Net property and equipment | − | 1,587,397 | |||||||||||||||
Goodwill | − | 410,123 | |||||||||||||||
Non-current assets of discontinued operations held for sale | $ | − | $ | 1,997,520 | |||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable | $ | − | $ | 170,375 | |||||||||||||
Accrued expenses | 4,500 | 56,382 | |||||||||||||||
Current liabilities of discontinued operations held for sale | $ | 4,500 | $ | 226,757 | |||||||||||||
The Company retained the AGC facility following the disposition and actively marketed the facility with a real estate broker. Therefore, the Company had classified this facility as “Assets held for sale” on the Consolidated Condensed Balance Sheet, net of accumulated depreciation. On June 30, 2014, the Company sold the AGC facility for $1.5 million with net settlement proceeds of $1.4 million received on July 1, 2014. As of June 30, 2014, the Company has $1.4 million recorded in other receivable related to the sale. The sale resulted in a pretax loss of $0.1 million. | |||||||||||||||||
Income (loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of AGC which are presented in total as discontinued operations, net of tax in the Company’s Consolidated Condensed Statements of Operations for the three months and nine months ended June 30, are as follows: | |||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total net sales | $ | − | $ | 1,103,873 | $ | 1,408,462 | $ | 5,020,780 | |||||||||
Income (loss) before provision for income taxes | (1,135 | ) | (55,464 | ) | (57,211 | ) | 171,977 | ||||||||||
Income tax provision (benefit) | 1,000 | (21,000 | ) | (21,000 | ) | 66,000 | |||||||||||
Income (loss) from discontinued operations, net of tax | (2,135 | ) | (34,464 | ) | (36,211 | ) | 105,977 | ||||||||||
Loss on sale of discontinued operations | (82,393 | ) | − | (993,835 | ) | − | |||||||||||
Income tax benefit | (9,000 | ) | − | (364,000 | ) | − | |||||||||||
Loss on sale of discontinued operations, net of tax | (73,393 | ) | − | (629,835 | ) | − | |||||||||||
Discontinued operations, net of tax | $ | (75,528 | ) | $ | (34,464 | ) | $ | (666,046 | ) | $ | 105,977 | ||||||
Note_4_Inventories
Note 4 - Inventories | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
Note 4 – Inventories | |||||||||
Inventories at June 30, 2014 and September 30, 2013 are as follows: | |||||||||
June 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
New | $ | 18,695,780 | $ | 15,679,789 | |||||
Refurbished | 7,232,401 | 3,931,917 | |||||||
Allowance for excess and obsolete inventory | (2,200,000 | ) | (1,600,000 | ) | |||||
$ | 23,728,181 | $ | 18,011,706 | ||||||
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 refurbished inventory at June 30, 2014 includes $3.3 million from the Nave Communications acquisition. | |||||||||
The Company regularly reviews the cable television segment 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 cable television obsolete inventory, increasing the cost of sales by approximately $0.5 million for the nine months ended June 30, 2014, and 2013. Any obsolete and excess telecommunications inventory is processed through Nave Communications’ recycling program. |
Note_5_Intangible_Assets
Note 5 - Intangible Assets | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block [Abstract] | ' | ||||
Intangible Assets Disclosure [Text Block] | ' | ||||
Note 5 – Intangible Assets | |||||
As a result of the Nave Communications acquisition, the Company now has intangible assets with finite useful lives based on the preliminary purchase price allocation (see Note 2). Intangible assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 years to 10 years. The intangible assets at June 30, 2014 are as follows: | |||||
June 30, | |||||
2014 | |||||
Intangible assets: | |||||
Customer relationships | $ | 4,496,000 | |||
Technology | 2,098,000 | ||||
Trade name | 1,393,000 | ||||
Non-compete agreements | 241,000 | ||||
8,228,000 | |||||
Accumulated amortization | (322,983 | ) | |||
Total intangible assets, net of accumulated amortization | $ | 7,905,017 | |||
Note_6_Notes_Payable_and_Line_
Note 6 - Notes Payable and Line of Credit | 9 Months Ended | ||
Jun. 30, 2014 | |||
Debt Disclosure [Abstract] | ' | ||
Debt Disclosure [Text Block] | ' | ||
Note 6 – Notes Payable and Line of Credit | |||
Notes Payable | |||
The Company has an Amended and Restated Revolving Credit and Term Loan Agreement (“Credit and Term Loan Agreement”), which is collateralized by inventory, accounts receivable, equipment and fixtures and general intangibles. One of the outstanding term loans under the Credit and Term Loan Agreement has an outstanding balance of approximately $1.4 million at June 30, 2014 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% (1.55% at June 30, 2014) and is reset monthly. | |||
In connection with the acquisition of Nave, ADDvantage entered into a $5.0 million term loan under the Credit and Term Loan Agreement. The term loan is a five year term loan with a seven year amortization payment schedule. The term loan outstanding balance is $4.9 million at June 30, 2014 and is due March 4, 2019, with monthly principal and interest payments of $68,505. The interest rate is a fixed rate of 4.07%. | |||
Line of Credit | |||
The Company has a $7.0 million Revolving Line of Credit (“Line of Credit”) under the Credit and Term Loan Agreement. At June 30, 2014, the Company had no balance 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% (2.90% at June 30, 2014), and the interest rate is reset monthly. Any future borrowings under the Line of Credit are due on November 28, 2014. 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 available Line of Credit borrowing base was $7.0 million at June 30, 2014. Among other financial covenants, the Line of Credit agreement provides that the Company 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. | |||
Fair Value of Debt | |||
The carrying value of the Company’s variable-rate term loan approximates its fair value since the interest rate fluctuates periodically based on a floating interest rate. | |||
FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a consistent framework for measuring fair value and establishes a fair value hierarchy based on the observability of inputs used to measure fair value. The three levels of the fair value hierarchy are as follows: | |||
● | Level 1 – Quoted prices for identical assets in active markets or liabilities that we have the ability to access. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||
● | Level 2 – Inputs are other than quoted prices in active markets included in Level 1 that are either directly or indirectly observable. These inputs are either directly observable in the marketplace or indirectly observable through corroboration with market data for substantially the full contractual term of the asset or liability being measured. | ||
● | Level 3 – Inputs that are not observable for which there is little, if any, market activity for the asset or liability being measured. These inputs reflect management’s best estimate of the assumptions market participants would use in determining fair value. | ||
The Company has determined the fair value of its fixed-rate term loan utilizing the Level 2 hierarchy as the fair value can be estimated from broker quotes corroborated by other market data. These broker quotes are based on observable market interest rates at which loans with similar terms and maturities could currently be executed. The Company then estimated the fair value of the fixed-rate term loan using cash flows discounted at the current market interest rate obtained. The fair value of the Company’s fixed rate loan was $4.9 million as of June 30, 2014. |
Note_7_Earnings_Per_Share
Note 7 - Earnings Per Share | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
Note 7 – 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 and restricted stock. In computing the diluted weighted average shares, the average stock price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method from the exercise of options. | |||||||||||||||||
Basic and diluted earnings per share for the three and nine months ended June 30, 2014 and 2013 are: | |||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from continuing operations | $ | 177,726 | $ | 269,984 | $ | 39,831 | $ | 1,223,269 | |||||||||
Discontinued operations, net of tax | (75,528 | ) | (34,464 | ) | (666,046 | ) | 105,977 | ||||||||||
Net income (loss) attributable to common shareholders | $ | 102,198 | $ | 235,520 | $ | (626,215 | ) | $ | 1,329,246 | ||||||||
Basic weighted average shares | 10,041,206 | 9,998,480 | 10,014,839 | 10,070,567 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 45,909 | – | 36,403 | 214 | |||||||||||||
Diluted weighted average shares | 10,087,115 | 9,998,480 | 10,051,242 | 10,070,781 | |||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.03 | $ | − | $ | 0.12 | |||||||||
Discontinued operations | (0.01 | ) | − | (0.07 | ) | 0.01 | |||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.06 | ) | $ | 0.13 | ||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.03 | $ | − | $ | 0.12 | |||||||||
Discontinued operations | (0.01 | ) | − | (0.07 | ) | 0.01 | |||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.06 | ) | $ | 0.13 | ||||||||
Note_8_Stock_Option_Plans
Note 8 - Stock Option Plans | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
Note 8 – Stock Option Plans | |||||||||
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 June 30, 2014, 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, 40,415 shares were available for future grants. | |||||||||
Stock Options | |||||||||
All share-based payments to employees, including grants of employee stock options, are recognized in the consolidated financial statements based on their grant date fair value over the requisite service period. Compensation expense for share-based awards is included in the operating, selling, general and administrative expense section of the Company’s Consolidated Condensed Statements of Operations. | |||||||||
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 three, 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 grant. | |||||||||
A summary of the status of the Company's stock options at June 30, 2014 and changes during the nine months then ended is presented below: | |||||||||
Shares | Wtd. Avg. | ||||||||
Ex. Price | |||||||||
Outstanding at September 30, 2013 | 363,000 | $ | 2.83 | ||||||
Granted | 200,000 | $ | 3.21 | ||||||
Exercised | – | – | |||||||
Expired | 3,000 | $ | 4.4 | ||||||
Forfeited | − | − | |||||||
Outstanding at June 30, 2014 | 560,000 | $ | 2.96 | ||||||
Exercisable at June 30, 2014 | 160,000 | $ | 3.28 | ||||||
The Company granted nonqualified stock options of 200,000 shares for the nine months ended June 30, 2014. The Company estimates the fair value of the options granted using the Black-Scholes option valuation model. The Company estimates the expected term of options granted based on the historical grants and exercises of the Company’s options. The Company estimates 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 bases the risk-free rate that is 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 term. The Company has never paid cash dividends on its common stock and does not anticipate paying cash dividends in the foreseeable future. Consequently, the Company uses 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 uses historical data to estimate the pre-vesting option 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 nine months ended June 30, 2014 are as follows: | |||||||||
Nine Months Ended | |||||||||
30-Jun-14 | |||||||||
Estimated fair value of options at grant date | $244,400 | ||||||||
Black-Scholes model assumptions: | |||||||||
Average expected life (years) | 6 | ||||||||
Average expected volatility factor | 34% | ||||||||
Average risk-free interest rate | 2.79% | ||||||||
Average expected dividends yield | – | ||||||||
Compensation expense related to unvested stock options recorded for the nine months ended June 30, 2014 is as follows: | |||||||||
Nine Months Ended | |||||||||
30-Jun-14 | |||||||||
Fiscal year 2012 grant | $ | 41,528 | |||||||
Fiscal year 2014 grant | $ | 37,339 | |||||||
The Company records compensation expense over the vesting term of the related options. At June 30, 2014, compensation costs related to these unvested stock options not yet recognized in the consolidated condensed statements of operations was $276,724. | |||||||||
Restricted Stock | |||||||||
The Company granted restricted stock in March 2014 to its Board of Directors totaling 19,050 shares, which were valued at market value on the date of grant. The fair value of these shares upon issuance totaled $60,000 and is being amortized over the 12 month holding period as compensation expense. The Company granted restricted stock in April of 2014 to certain employees totaling 23,676 shares, which were valued at market value on the date of grant. The shares have a holding restriction, which will expire in equal annual installments of 7,892 shares over three years starting in April 2015. The fair value of these shares upon issuance totaled $76,000 and is being amortized over the respective one, two and three year holding periods as compensation expense. The unamortized portion of the restricted stock is included in prepaid expenses on the Company’s Consolidated Condensed Balance Sheets. |
Note_9_Segment_Reporting
Note 9 - Segment Reporting | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
Note 9 – Segment Reporting | |||||||||||||||||
During the second quarter of fiscal year 2014, the Company changed its organizational structure with the acquisition of Nave Communications. As a result of this acquisition, information that the Company’s management team regularly reviews for purposes of allocating resources and assessing performance changed. Therefore, beginning in fiscal year 2014, the Company is reporting its financial performance based on its new external reporting segments: Cable Television and Telecommunications. These reportable segments are described below. | |||||||||||||||||
Cable Television (“Cable TV”) | |||||||||||||||||
The Company’s Cable TV segment sells new, surplus and re-manufactured 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, this segment also repairs cable television equipment for various cable companies. | |||||||||||||||||
Telecommunications (“Telco”) | |||||||||||||||||
The Company’s Telecommunications segment consists of Nave Communications. Through Nave Communications’ diverse customer base and its broad range of manufacturer systems and components, Nave Communications’ provides cost effective telecommunications and networking solutions to expand network capacity and infrastructure for its customers. Nave Communications specializes in the sale of certified used telecommunications networking equipment. In addition, Nave Communications offers its customers decommissioning services for surplus and obsolete equipment, which Nave Communications in turn processes through its recycling services. | |||||||||||||||||
The Company evaluates performance and allocates its resources based on operating income. The accounting policies of its reportable segments are the same as those described in the summary of significant accounting policies. | |||||||||||||||||
The Company did not have any intersegment sales for the three and nine months ended June 30, 2014 and 2013. Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, property, plant and equipment, goodwill and other intangible assets. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales | |||||||||||||||||
Cable TV | $ | 6,506,763 | $ | 6,372,108 | $ | 19,874,687 | $ | 21,035,707 | |||||||||
Telco | 2,816,395 | − | 3,882,020 | − | |||||||||||||
Total sales | $ | 9,323,158 | $ | 6,372,108 | $ | 23,756,707 | $ | 21,035,707 | |||||||||
Gross profit | |||||||||||||||||
Cable TV | $ | 1,903,435 | $ | 1,851,855 | $ | 5,619,323 | $ | 6,336,931 | |||||||||
Telco | 1,316,620 | − | 1,695,127 | − | |||||||||||||
Total gross profit | $ | 3,220,055 | $ | 1,851,855 | $ | 7,314,450 | $ | 6,336,931 | |||||||||
Operating income (loss) | |||||||||||||||||
Cable TV | $ | 385,309 | $ | 441,361 | $ | 867,762 | $ | 1,992,036 | |||||||||
Telco | (63,470 | ) | − | (740,824 | ) | − | |||||||||||
Total operating income (loss) | $ | 321,839 | $ | 441,361 | $ | 126,938 | $ | 1,992,036 | |||||||||
Segment assets | |||||||||||||||||
Cable TV | $ | 29,601,308 | $ | 28,398,343 | $ | 29,601,308 | $ | 28,398,343 | |||||||||
Telco | 15,578,772 | − | 15,578,772 | − | |||||||||||||
Non-allocated (A) | 7,386,247 | 14,574,439 | 7,386,247 | 14,574,439 | |||||||||||||
Total assets | $ | 52,566,327 | $ | 42,972,782 | $ | 52,566,327 | $ | 42,972,782 | |||||||||
(A) | June 30, 2013 balances include $5.8 million of discontinued operations assets as a result of the sale of Adams Global Communications in the second fiscal quarter of 2014. | ||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of presentation | |
The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. However, the information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated condensed financial statements not misleading. It is suggested that these consolidated condensed financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended September 30, 2013. | |
ADDvantage Technologies Group, Inc., through its 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 Nave Communications Company (“Nave Communications”) (collectively, the “Company”), sells new, surplus and re-manufactured 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 also repairs cable television equipment for various cable companies. Through Nave Communications, the Company sells certified used telecommunications networking equipment primarily in North America. In addition, Nave Communications also provides decommissioning services for surplus and obsolete equipment, which Nave Communications in turn processes through its recycling services. The Company operates in two business segments, cable television and telecommunications, and product sales consist of different types of equipment used in the cable television and telecommunications equipment industries. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair value of financial instruments | |
The carrying amounts of accounts receivable and accounts payable approximate fair value due to their short maturities. |
Note_2_Acquisition_Tables
Note 2 - Acquisition (Tables) | 9 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||
Business Combination, Separately Recognized Transactions [Table Text Block] | ' | ||||||||||||||
Cash payments, net of cash received | $ | 9,630,647 | |||||||||||||
Deferred guaranteed payments (a) | 2,744,338 | ||||||||||||||
Net purchase price | $ | 12,374,985 | |||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||||||||
Assets acquired: | (in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 113 | |||||||||||||
Accounts receivable | 1,651 | ||||||||||||||
Inventories | 2,287 | ||||||||||||||
Property and equipment | 406 | ||||||||||||||
Other non-current assets | 120 | ||||||||||||||
Intangible assets | 8,228 | ||||||||||||||
Goodwill | 1,855 | ||||||||||||||
Total assets acquired | 14,660 | ||||||||||||||
Liabilities assumed: | |||||||||||||||
Accounts payable | 1,821 | ||||||||||||||
Accrued expenses | 275 | ||||||||||||||
Capital lease obligation – current portion | 21 | ||||||||||||||
Capital lease obligation | 55 | ||||||||||||||
Total liabilities assumed | 2,172 | ||||||||||||||
Net assets acquired | 12,488 | ||||||||||||||
Less cash acquired | 113 | ||||||||||||||
Net purchase price | $ | 12,375 | |||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Total net sales | n/a(1) | $ | 9,810 | $ | 29,822 | $ | 30,679 | ||||||||
Income from continuing operations | n/a(1) | $ | 52 | $ | 567 | $ | 1,241 | ||||||||
Net income (loss) | n/a(1) | $ | 18 | $ | (100 | ) | $ | 1,347 | |||||||
Earnings (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | n/a(1) | $ | 0.01 | $ | 0.06 | $ | 0.12 | ||||||||
Net income (loss) | n/a(1) | $ | − | $ | (0.01 | ) | $ | 0.13 | |||||||
Diluted: | |||||||||||||||
Continuing operations | n/a(1) | $ | 0.01 | $ | 0.06 | $ | 0.12 | ||||||||
Net income (loss) | n/a(1) | $ | − | $ | (0.01 | ) | $ | 0.13 |
Note_3_Discontinued_Operations1
Note 3 - Discontinued Operations and Assets Held for Sale (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Note 3 - Discontinued Operations and Assets Held for Sale (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Calculation of Loss on Disposal Group [Table Text Block] | ' | ||||||||||||||||
Cash proceeds | $ | 2,000,000 | |||||||||||||||
Assets sold: | |||||||||||||||||
Accounts receivable | 454,269 | ||||||||||||||||
Inventories | 2,044,135 | ||||||||||||||||
Prepaid expenses | 12,054 | ||||||||||||||||
Property and equipment | 60,586 | ||||||||||||||||
Goodwill | 410,123 | ||||||||||||||||
Other | 10,805 | ||||||||||||||||
2,991,972 | |||||||||||||||||
Liabilities transferred: | |||||||||||||||||
Accounts payable | 77,675 | ||||||||||||||||
Accrued expenses | 6,075 | ||||||||||||||||
83,750 | |||||||||||||||||
Net assets sold | 2,908,222 | ||||||||||||||||
Pretax loss on sale of net assets of AGC | $ | 908,222 | |||||||||||||||
Consolidated Condensed Balance Sheets [Member] | ' | ||||||||||||||||
Note 3 - Discontinued Operations and Assets Held for Sale (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||||||
June 30, | September 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | − | $ | (110,068 | ) | ||||||||||||
Accounts receivable, net | − | 629,874 | |||||||||||||||
Income tax receivable | 12,590 | 13,590 | |||||||||||||||
Inventories | − | 2,718,747 | |||||||||||||||
Prepaid expenses | − | 15,774 | |||||||||||||||
Current assets of discontinued operations held for sale | $ | 12,590 | $ | 3,267,917 | |||||||||||||
Property and equipment, at cost: | |||||||||||||||||
Land and building | $ | − | $ | 1,585,594 | |||||||||||||
Machinery and equipment | − | 134,010 | |||||||||||||||
Less accumulated depreciation | − | (132,207 | ) | ||||||||||||||
Net property and equipment | − | 1,587,397 | |||||||||||||||
Goodwill | − | 410,123 | |||||||||||||||
Non-current assets of discontinued operations held for sale | $ | − | $ | 1,997,520 | |||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable | $ | − | $ | 170,375 | |||||||||||||
Accrued expenses | 4,500 | 56,382 | |||||||||||||||
Current liabilities of discontinued operations held for sale | $ | 4,500 | $ | 226,757 | |||||||||||||
Consolidated Condensed Statements of Income [Member] | ' | ||||||||||||||||
Note 3 - Discontinued Operations and Assets Held for Sale (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total net sales | $ | − | $ | 1,103,873 | $ | 1,408,462 | $ | 5,020,780 | |||||||||
Income (loss) before provision for income taxes | (1,135 | ) | (55,464 | ) | (57,211 | ) | 171,977 | ||||||||||
Income tax provision (benefit) | 1,000 | (21,000 | ) | (21,000 | ) | 66,000 | |||||||||||
Income (loss) from discontinued operations, net of tax | (2,135 | ) | (34,464 | ) | (36,211 | ) | 105,977 | ||||||||||
Loss on sale of discontinued operations | (82,393 | ) | − | (993,835 | ) | − | |||||||||||
Income tax benefit | (9,000 | ) | − | (364,000 | ) | − | |||||||||||
Loss on sale of discontinued operations, net of tax | (73,393 | ) | − | (629,835 | ) | − | |||||||||||
Discontinued operations, net of tax | $ | (75,528 | ) | $ | (34,464 | ) | $ | (666,046 | ) | $ | 105,977 |
Note_4_Inventories_Tables
Note 4 - Inventories (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
June 30, | September 30, | ||||||||
2014 | 2013 | ||||||||
New | $ | 18,695,780 | $ | 15,679,789 | |||||
Refurbished | 7,232,401 | 3,931,917 | |||||||
Allowance for excess and obsolete inventory | (2,200,000 | ) | (1,600,000 | ) | |||||
$ | 23,728,181 | $ | 18,011,706 |
Note_5_Intangible_Assets_Table
Note 5 - Intangible Assets (Tables) | 9 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block [Abstract] | ' | ||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||
June 30, | |||||
2014 | |||||
Intangible assets: | |||||
Customer relationships | $ | 4,496,000 | |||
Technology | 2,098,000 | ||||
Trade name | 1,393,000 | ||||
Non-compete agreements | 241,000 | ||||
8,228,000 | |||||
Accumulated amortization | (322,983 | ) | |||
Total intangible assets, net of accumulated amortization | $ | 7,905,017 |
Note_7_Earnings_Per_Share_Tabl
Note 7 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income from continuing operations | $ | 177,726 | $ | 269,984 | $ | 39,831 | $ | 1,223,269 | |||||||||
Discontinued operations, net of tax | (75,528 | ) | (34,464 | ) | (666,046 | ) | 105,977 | ||||||||||
Net income (loss) attributable to common shareholders | $ | 102,198 | $ | 235,520 | $ | (626,215 | ) | $ | 1,329,246 | ||||||||
Basic weighted average shares | 10,041,206 | 9,998,480 | 10,014,839 | 10,070,567 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 45,909 | – | 36,403 | 214 | |||||||||||||
Diluted weighted average shares | 10,087,115 | 9,998,480 | 10,051,242 | 10,070,781 | |||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.03 | $ | − | $ | 0.12 | |||||||||
Discontinued operations | (0.01 | ) | − | (0.07 | ) | 0.01 | |||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.06 | ) | $ | 0.13 | ||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | 0.02 | $ | 0.03 | $ | − | $ | 0.12 | |||||||||
Discontinued operations | (0.01 | ) | − | (0.07 | ) | 0.01 | |||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.06 | ) | $ | 0.13 |
Note_8_Stock_Option_Plans_Tabl
Note 8 - Stock Option Plans (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||
Shares | Wtd. Avg. | ||||||||
Ex. Price | |||||||||
Outstanding at September 30, 2013 | 363,000 | $ | 2.83 | ||||||
Granted | 200,000 | $ | 3.21 | ||||||
Exercised | – | – | |||||||
Expired | 3,000 | $ | 4.4 | ||||||
Forfeited | − | − | |||||||
Outstanding at June 30, 2014 | 560,000 | $ | 2.96 | ||||||
Exercisable at June 30, 2014 | 160,000 | $ | 3.28 | ||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||
Nine Months Ended | |||||||||
30-Jun-14 | |||||||||
Estimated fair value of options at grant date | $244,400 | ||||||||
Black-Scholes model assumptions: | |||||||||
Average expected life (years) | 6 | ||||||||
Average expected volatility factor | 34% | ||||||||
Average risk-free interest rate | 2.79% | ||||||||
Average expected dividends yield | – | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||
Nine Months Ended | |||||||||
30-Jun-14 | |||||||||
Fiscal year 2012 grant | $ | 41,528 | |||||||
Fiscal year 2014 grant | $ | 37,339 |
Note_9_Segment_Reporting_Table
Note 9 - Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales | |||||||||||||||||
Cable TV | $ | 6,506,763 | $ | 6,372,108 | $ | 19,874,687 | $ | 21,035,707 | |||||||||
Telco | 2,816,395 | − | 3,882,020 | − | |||||||||||||
Total sales | $ | 9,323,158 | $ | 6,372,108 | $ | 23,756,707 | $ | 21,035,707 | |||||||||
Gross profit | |||||||||||||||||
Cable TV | $ | 1,903,435 | $ | 1,851,855 | $ | 5,619,323 | $ | 6,336,931 | |||||||||
Telco | 1,316,620 | − | 1,695,127 | − | |||||||||||||
Total gross profit | $ | 3,220,055 | $ | 1,851,855 | $ | 7,314,450 | $ | 6,336,931 | |||||||||
Operating income (loss) | |||||||||||||||||
Cable TV | $ | 385,309 | $ | 441,361 | $ | 867,762 | $ | 1,992,036 | |||||||||
Telco | (63,470 | ) | − | (740,824 | ) | − | |||||||||||
Total operating income (loss) | $ | 321,839 | $ | 441,361 | $ | 126,938 | $ | 1,992,036 | |||||||||
Segment assets | |||||||||||||||||
Cable TV | $ | 29,601,308 | $ | 28,398,343 | $ | 29,601,308 | $ | 28,398,343 | |||||||||
Telco | 15,578,772 | − | 15,578,772 | − | |||||||||||||
Non-allocated (A) | 7,386,247 | 14,574,439 | 7,386,247 | 14,574,439 | |||||||||||||
Total assets | $ | 52,566,327 | $ | 42,972,782 | $ | 52,566,327 | $ | 42,972,782 |
Note_1_Basis_of_Presentation_a1
Note 1 - Basis of Presentation and Description of Business (Details) | 9 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Number of Operating Segments | 2 |
Note_2_Acquisition_Details
Note 2 - Acquisition (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 02, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | |
Pro Forma [Member] | Pro Forma [Member] | Pro Forma [Member] | Pro Forma [Member] | Pro Forma [Member] | Term Loan 2 [Member] | Nave Communications [Member] | Nave Communications [Member] | Nave Communications [Member] | Nave Communications [Member] | |||||
Term Loan 2 [Member] | Nave Communications [Member] | Nave Communications [Member] | Nave Communications [Member] | Nave Communications [Member] | Other Current Liabilities [Member] | Other Noncurrent Liabilities [Member] | Minimum [Member] | |||||||
Note 2 - Acquisition (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | $1,800,000 | $3,000,000 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,228,000 | ' |
Business Combination, Contingent Consideration, Earn-out Payments as Percentage of Acquiree's Annual EBITDA in Excess of Threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' |
Earnings before Interest, Taxes, Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Amortization of Intangible Assets | ' | ' | ' | ' | ' | ' | 200,000 | 700,000 | 700,000 | ' | ' | ' | ' | ' |
Interest Expense | 100,113 | 6,377 | 131,107 | 19,767 | ' | 51,000 | ' | 153,000 | 153,000 | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' |
Business Combination, Acquisition Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | ' | ' | ' | ' | ' |
Note_2_Acquisition_Details_Pre
Note 2 - Acquisition (Details) - Preliminary Estimated Price for Nave Communications (USD $) | 9 Months Ended | 1 Months Ended | |
Jun. 30, 2014 | Feb. 28, 2014 | ||
Nave Communications [Member] | |||
Business Combination, Separately Recognized Transactions [Line Items] | ' | ' | |
Cash payments, net of cash received | ' | $9,630,647 | |
Deferred guaranteed payments (a) | 2,744,338 | 2,744,338 | [1] |
Net purchase price | $9,630,647 | $12,374,985 | |
[1] | This amount represents the present value of $3.0 million in deferred payments, which will be paid in equal annual installments over thenext three years. Over the three year period, the Company will ratably record interest expense with the offset being the deferred paymentliability. As of June 30, 2014, the deferred guaranteed payments balance is $1.0 million in other current liabilities and $1.8 million inother long-term liabilities. |
Note_2_Acquisition_Details_Fai
Note 2 - Acquisition (Details) - Fair Value of Assets Acquired and Liabilities Assumed (USD $) | 9 Months Ended | 1 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Jun. 30, 2014 | |
Nave Communications [Member] | Nave Communications [Member] | |||
Note 2 - Acquisition (Details) - Fair Value of Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | $113,000 | ' |
Accounts receivable | ' | ' | 1,651,000 | ' |
Inventories | ' | ' | 2,287,000 | 3,300,000 |
Property and equipment | ' | ' | 406,000 | ' |
Other non-current assets | ' | ' | 120,000 | ' |
Intangible assets | ' | ' | 8,228,000 | ' |
Goodwill | 3,004,482 | 1,150,060 | 1,855,000 | ' |
Total assets acquired | ' | ' | 14,660,000 | ' |
Liabilities assumed: | ' | ' | ' | ' |
Accounts payable | ' | ' | 1,821,000 | ' |
Accrued expenses | ' | ' | 275,000 | ' |
Capital lease obligation b current portion | ' | ' | 21,000 | ' |
Capital lease obligation | ' | ' | 55,000 | ' |
Total liabilities assumed | ' | ' | 2,172,000 | ' |
Net assets acquired | ' | ' | 12,488,000 | ' |
Less cash acquired | ' | ' | 113,000 | ' |
Net purchase price | $9,630,647 | ' | $12,374,985 | ' |
Note_2_Acquisition_Details_Una
Note 2 - Acquisition (Details) - Unaudited Pro Forma Financial Information (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Unaudited Pro Forma Financial Information [Abstract] | ' | ' | ' | ' | |
Total net sales (in Dollars) | ' | [1] | $9,810 | $29,822 | $30,679 |
Income from continuing operations (in Dollars) | ' | [1] | 52 | 567 | 1,241 |
Net income (loss) (in Dollars) | ' | [1] | $18 | ($100) | $1,347 |
Basic: | ' | ' | ' | ' | |
Continuing operations | ' | [1] | $0.01 | $0.06 | $0.12 |
Net income (loss) | ' | [1] | ' | ($0.01) | $0.13 |
Diluted: | ' | ' | ' | ' | |
Continuing operations | ' | [1] | $0.01 | $0.06 | $0.12 |
Net income (loss) | ' | [1] | ' | ($0.01) | $0.13 |
[1] | These amounts are presented in the unaudited Consolidated Condensed Statement of Operations for the quarter ended June 30, 2014. |
Note_3_Discontinued_Operations2
Note 3 - Discontinued Operations and Assets Held for Sale (Details) (USD $) | Jun. 30, 2014 | Jul. 02, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 |
Subsequent Event [Member] | Adams Global Communications [Member] | Adams Global Communications [Member] | Adams Global Communications [Member] | Adams Global Communications [Member] | Adams Global Communications [Member] | AGC Facility [Member] | ||
AGC Facility [Member] | Adams Cable Equipment [Member] | |||||||
Note 3 - Discontinued Operations and Assets Held for Sale (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | ' | ' | $2,000,000 | ' | ' | ' | ' | ' |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | ' | ' | -600,000 | ' | ' | ' | ' | ' |
Noncompete Term | ' | ' | '3 years | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | ' | ' | ' | 60,586 | ' | ' | 1,587,397 | 1,500,000 |
Proceeds from Sale of Property, Plant, and Equipment | ' | 1,400,000 | ' | ' | ' | ' | ' | ' |
Other Receivables, Net, Current | 1,413,001 | ' | ' | ' | ' | ' | ' | 1,400,000 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | ' | ' | ' | $908,222 | ($82,393) | ($993,835) | ' | $100,000 |
Note_3_Discontinued_Operations3
Note 3 - Discontinued Operations and Assets Held for Sale (Details) - Calculation of the Loss on Sale of AGC (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | |
Note 3 - Discontinued Operations and Assets Held for Sale (Details) - Calculation of the Loss on Sale of AGC [Line Items] | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | $2,000,000 | ' | ' |
Adams Global Communications [Member] | ' | ' | ' | ' | ' |
Note 3 - Discontinued Operations and Assets Held for Sale (Details) - Calculation of the Loss on Sale of AGC [Line Items] | ' | ' | ' | ' | ' |
Cash proceeds | 2,000,000 | ' | ' | ' | ' |
Assets sold: | ' | ' | ' | ' | ' |
Accounts receivable | 454,269 | ' | ' | 629,874 | ' |
Inventories | 2,044,135 | ' | ' | 2,718,747 | ' |
Prepaid expenses | 12,054 | ' | ' | 15,774 | ' |
Property and equipment | 60,586 | ' | ' | 1,587,397 | ' |
Goodwill | 410,123 | ' | ' | 410,123 | ' |
Other | 10,805 | ' | ' | ' | ' |
2,991,972 | ' | ' | ' | 5,800,000 | |
Liabilities transferred: | ' | ' | ' | ' | ' |
Accounts payable | 77,675 | ' | ' | 170,375 | ' |
Accrued expenses | 6,075 | 4,500 | 4,500 | 56,382 | ' |
83,750 | ' | ' | ' | ' | |
Net assets sold | 2,908,222 | ' | ' | ' | ' |
Pretax loss on sale of net assets of AGC | $908,222 | ($82,393) | ($993,835) | ' | ' |
Note_3_Discontinued_Operations4
Note 3 - Discontinued Operations and Assets Held for Sale (Details) - Assets and Liabilities Included in Discontinued Operations (USD $) | Jun. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2013 |
Assets: | ' | ' | ' |
Current assets of discontinued operations held for sale | $12,590 | ' | $3,267,917 |
Liabilities: | ' | ' | ' |
Current liabilities of discontinued operations held for sale | 4,500 | ' | 226,757 |
Land and Building [Member] | Adams Global Communications [Member] | ' | ' | ' |
Property and equipment, at cost: | ' | ' | ' |
Property, plant and equipment | ' | ' | 1,585,594 |
Machinery and Equipment [Member] | Adams Global Communications [Member] | ' | ' | ' |
Property and equipment, at cost: | ' | ' | ' |
Property, plant and equipment | ' | ' | 134,010 |
Adams Global Communications [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | ' | ' | -110,068 |
Accounts receivable, net | ' | 454,269 | 629,874 |
Income tax receivable | 12,590 | ' | 13,590 |
Inventories | ' | 2,044,135 | 2,718,747 |
Prepaid expenses | ' | 12,054 | 15,774 |
Current assets of discontinued operations held for sale | 12,590 | ' | 3,267,917 |
Property and equipment, at cost: | ' | ' | ' |
Less accumulated depreciation | ' | ' | -132,207 |
Net property and equipment | ' | 60,586 | 1,587,397 |
Goodwill | ' | 410,123 | 410,123 |
Non-current assets of discontinued operations held for sale | ' | ' | 1,997,520 |
Liabilities: | ' | ' | ' |
Accounts payable | ' | 77,675 | 170,375 |
Accrued expenses | 4,500 | 6,075 | 56,382 |
Current liabilities of discontinued operations held for sale | $4,500 | ' | $226,757 |
Note_3_Discontinued_Operations5
Note 3 - Discontinued Operations and Assets Held for Sale (Details) - Income (Loss) from Discontinued Operations and Loss on Sale of Discontinued Operations (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Loss on sale of discontinued operations, net of tax | ' | ($73,393) | ' | ($629,835) | ' |
Discontinued operations, net of tax | ' | -75,528 | -34,464 | -666,046 | 105,977 |
Adams Global Communications [Member] | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Total net sales | ' | ' | 1,103,873 | 1,408,462 | 5,020,780 |
Income (loss) before provision for income taxes | ' | -1,135 | -55,464 | -57,211 | 171,977 |
Income tax provision (benefit) | ' | 1,000 | -21,000 | -21,000 | 66,000 |
Income (loss) from discontinued operations, net of tax | ' | -2,135 | -34,464 | -36,211 | 105,977 |
Loss on sale of discontinued operations | 908,222 | -82,393 | ' | -993,835 | ' |
Income tax benefit | ' | -9,000 | ' | -364,000 | ' |
Loss on sale of discontinued operations, net of tax | ' | -73,393 | ' | -629,835 | ' |
Discontinued operations, net of tax | ' | ($75,528) | ($34,464) | ($666,046) | $105,977 |
Note_4_Inventories_Details
Note 4 - Inventories (Details) (USD $) | 9 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Feb. 28, 2014 | |
Nave Communications [Member] | Nave Communications [Member] | |||
Note 4 - Inventories (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | ' | ' | $3,300,000 | $2,287,000 |
Inventory Write-down | $451,351 | $450,000 | ' | ' |
Note_4_Inventories_Details_Inv
Note 4 - Inventories (Details) - Inventories (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
Inventories [Abstract] | ' | ' |
New | $18,695,780 | $15,679,789 |
Refurbished | 7,232,401 | 3,931,917 |
Allowance for excess and obsolete inventory | -2,200,000 | -1,600,000 |
$23,728,181 | $18,011,706 |
Note_5_Intangible_Assets_Detai
Note 5 - Intangible Assets (Details) | 9 Months Ended |
Jun. 30, 2014 | |
Minimum [Member] | ' |
Note 5 - Intangible Assets (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years |
Maximum [Member] | ' |
Note 5 - Intangible Assets (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Note_5_Intangible_Assets_Detai1
Note 5 - Intangible Assets (Details) - Intangible Assets (USD $) | Jun. 30, 2014 |
Intangible assets: | ' |
Finite-lived intangible assets | $8,228,000 |
Accumulated amortization | -322,983 |
Total intangible assets, net of accumulated amortization | 7,905,017 |
Customer Relationships [Member] | ' |
Intangible assets: | ' |
Finite-lived intangible assets | 4,496,000 |
Technology-Based Intangible Assets [Member] | ' |
Intangible assets: | ' |
Finite-lived intangible assets | 2,098,000 |
Trade Names [Member] | ' |
Intangible assets: | ' |
Finite-lived intangible assets | 1,393,000 |
Noncompete Agreements [Member] | ' |
Intangible assets: | ' |
Finite-lived intangible assets | $241,000 |
Note_6_Notes_Payable_and_Line_1
Note 6 - Notes Payable and Line of Credit (Details) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
Line of Credit [Member] | Line of Credit [Member] | Term Loan 1 [Member] | Term Loan 1 [Member] | Term Loan 2 [Member] | Term Loan 2 [Member] | Term Loan 2 [Member] | |
London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Note 6 - Notes Payable and Line of Credit (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Loans Payable | ' | ' | ' | $1,400,000 | ' | ' | $4,900,000 |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | 'monthly | ' | ' | ' |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | 15,334 | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ' | 1.40% | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | 2.90% | ' | 1.55% | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | 5,000,000 | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | '5 years | ' | ' |
Debt Instrument, Amortization Term | ' | ' | ' | ' | '7 years | ' | ' |
Debt Instrument, Periodic Payment | ' | ' | ' | ' | ' | 68,505 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 4.07% | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | 7,000,000 | ' | ' | ' | ' | ' |
Long-term Line of Credit | ' | 0 | ' | ' | ' | ' | ' |
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 | ' | 7,000,000 | ' | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | ' | 1.25 | ' | ' | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | $4,900,000 |
Note_7_Earnings_Per_Share_Deta
Note 7 - Earnings Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' |
Income from continuing operations (in Dollars) | $177,726 | $269,984 | $39,831 | $1,223,269 |
Discontinued operations, net of tax (in Dollars) | -75,528 | -34,464 | -666,046 | 105,977 |
Net income (loss) attributable to common shareholders (in Dollars) | $102,198 | $235,520 | ($626,215) | $1,329,246 |
Basic weighted average shares (in Shares) | 10,041,206 | 9,998,480 | 10,014,839 | 10,070,567 |
Stock options (in Shares) | 45,909 | ' | 36,403 | 214 |
Diluted weighted average shares (in Shares) | 10,087,115 | 9,998,480 | 10,051,242 | 10,070,781 |
Basic | ' | ' | ' | ' |
Continuing operations | $0.02 | $0.03 | ' | $0.12 |
Discontinued operations | ($0.01) | ' | ($0.07) | $0.01 |
Net income (loss) | $0.01 | $0.02 | ($0.06) | $0.13 |
Diluted | ' | ' | ' | ' |
Continuing operations | $0.02 | $0.03 | ' | $0.12 |
Discontinued operations | ($0.01) | ' | ($0.07) | $0.01 |
Net income (loss) | $0.01 | $0.02 | ($0.06) | $0.13 |
Note_8_Stock_Option_Plans_Deta
Note 8 - Stock Option Plans (Details) (USD $) | 9 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 9 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Nonqualified Stock Options [Member] | Employees [Member] | Employees [Member] | Board of Directors [Member] | Board of Directors [Member] | Certain Employees [Member] | Minimum [Member] | Maximum [Member] | |||
Employees [Member] | Employees [Member] | |||||||||
Note 8 - Stock Option Plans (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 | ' | 40,415 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '4 years | ' | ' | ' | '3 years | '5 years |
Stock Options, Expiration Period | ' | ' | ' | '10 years | ' | ' | '10 years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' |
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 | $276,724 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | 19,050 | ' | 23,676 | ' | ' |
Fair Value of Restricted Shares Upon Issuance | ' | ' | ' | ' | ' | $60,000 | $60,000 | $76,000 | ' | ' |
Restricted Stock Holding Period | ' | ' | ' | ' | ' | '12 months | ' | '3 years | ' | ' |
Holding Restriction, Annual Expiration of Restricted Stock | ' | ' | ' | ' | ' | ' | ' | 7,892 | ' | ' |
Note_8_Stock_Option_Plans_Deta1
Note 8 - Stock Option Plans (Details) - Summary of the Status of the Company's Stock Options (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Summary of the Status of the Company's Stock Options [Abstract] | ' |
Outstanding at September 30, 2013 | 363,000 |
Outstanding at September 30, 2013 | $2.83 |
Granted | 200,000 |
Granted | $3.21 |
Expired | 3,000 |
Expired | $4.40 |
Outstanding at June 30, 2014 | 560,000 |
Outstanding at June 30, 2014 | $2.96 |
Exercisable at June 30, 2014 | 160,000 |
Exercisable at June 30, 2014 | $3.28 |
Note_8_Stock_Option_Plans_Deta2
Note 8 - Stock Option Plans (Details) - Black-Scholes Option Valuation Model Assumptions (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Black-Scholes Option Valuation Model Assumptions [Abstract] | ' |
Estimated fair value of options at grant date (in Dollars per share) | $244,400 |
Black-Scholes model assumptions: | ' |
Average expected life (years) | '6 years |
Average expected volatility factor | 34.00% |
Average risk-free interest rate | 2.79% |
Note_8_Stock_Option_Plans_Deta3
Note 8 - Stock Option Plans (Details) - Compensation Expense Related to Unvested Stock Options (Employee Stock Option [Member], USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Fiscal Year 2012 Grant [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Compensation Expense | $41,528 |
Fiscal Year 2014 Grant [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Compensation Expense | $37,339 |
Note_9_Segment_Reporting_Detai
Note 9 - Segment Reporting (Details) (Adams Global Communications [Member], USD $) | Jan. 31, 2014 | Jun. 30, 2013 |
Adams Global Communications [Member] | ' | ' |
Note 9 - Segment Reporting (Details) [Line Items] | ' | ' |
Disposal Group, Including Discontinued Operation, Assets | $2,991,972 | $5,800,000 |
Note_9_Segment_Reporting_Detai1
Note 9 - Segment Reporting (Details) - Segment Reporting Information (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |||||
Sales | ' | ' | ' | ' | ' | ||||
Sales | $9,323,158 | $6,372,108 | $23,756,707 | $21,035,707 | ' | ||||
Gross profit | ' | ' | ' | ' | ' | ||||
Gross profit | 3,220,055 | 1,851,855 | 7,314,450 | 6,336,931 | ' | ||||
Operating income (loss) | ' | ' | ' | ' | ' | ||||
Operating income (loss) | 321,839 | 441,361 | 126,938 | 1,992,036 | ' | ||||
Segment assets | ' | ' | ' | ' | ' | ||||
Segment assets | 52,566,327 | 42,972,782 | 52,566,327 | 42,972,782 | 43,116,120 | ||||
Operating Segments [Member] | Cable TV [Member] | ' | ' | ' | ' | ' | ||||
Sales | ' | ' | ' | ' | ' | ||||
Sales | 6,506,763 | 6,372,108 | 19,874,687 | 21,035,707 | ' | ||||
Gross profit | ' | ' | ' | ' | ' | ||||
Gross profit | 1,903,435 | 1,851,855 | 5,619,323 | 6,336,931 | ' | ||||
Operating income (loss) | ' | ' | ' | ' | ' | ||||
Operating income (loss) | 385,309 | 441,361 | 867,762 | 1,992,036 | ' | ||||
Segment assets | ' | ' | ' | ' | ' | ||||
Segment assets | 29,601,308 | 28,398,343 | 29,601,308 | 28,398,343 | ' | ||||
Operating Segments [Member] | Telco [Member] | ' | ' | ' | ' | ' | ||||
Sales | ' | ' | ' | ' | ' | ||||
Sales | 2,816,395 | ' | 3,882,020 | ' | ' | ||||
Gross profit | ' | ' | ' | ' | ' | ||||
Gross profit | 1,316,620 | ' | 1,695,127 | ' | ' | ||||
Operating income (loss) | ' | ' | ' | ' | ' | ||||
Operating income (loss) | -63,470 | ' | -740,824 | ' | ' | ||||
Segment assets | ' | ' | ' | ' | ' | ||||
Segment assets | 15,578,772 | ' | 15,578,772 | ' | ' | ||||
Segment Reconciling Items [Member] | ' | ' | ' | ' | ' | ||||
Segment assets | ' | ' | ' | ' | ' | ||||
Segment assets | $7,386,247 | [1] | $14,574,439 | [1] | $7,386,247 | [1] | $14,574,439 | [1] | ' |
[1] | June 30, 2013 balances include $5.8 million of discontinued operations assets as a result of the sale of Adams Global Communications in thesecond fiscal quarter of 2014. |