ADDvantage Technologies (AEYGQ) 10-Q 11 Aug 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	ADDVANTAGE TECHNOLOGIES GROUP INC
Entity Central Index Key	874,292
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		10,073,121
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets (Current period unaudited) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 4,638,741	$ 5,286,097
Accounts receivable, net of allowance for doubtful accounts of $200,000	5,799,626	6,393,580
Income tax refund receivable	7,180	220,104
Inventories, net of allowance for excess and obsolete inventory of $2,606,628 and $2,156,628, respectively	24,497,418	22,780,523
Prepaid expenses	153,823	174,873
Deferred income taxes	1,581,000	1,416,000
Total current assets	36,677,788	36,271,177
Property and equipment, at cost:
Land and buildings	7,264,753	7,208,679
Machinery and equipment	3,394,996	3,244,153
Leasehold improvements	145,737	206,393
Total property and equipment, at cost	10,805,486	10,659,225
Less accumulated depreciation	(4,491,107)	(4,191,516)
Net property and equipment	6,314,379	6,467,709
Intangibles, net of accumulated amortization	6,005,924	6,625,278
Goodwill	3,910,089	3,910,089
Other assets	131,428	131,428
Total assets	53,039,608	53,405,681
Current liabilities:
Accounts payable	2,755,394	2,880,761
Accrued expenses	1,660,203	1,809,878
Notes payable – current portion	866,507	845,845
Other current liabilities	971,350	983,269
Total current liabilities	6,253,454	6,519,753
Notes payable, less current portion	4,587,138	5,240,066
Deferred income taxes	252,000	267,000
Other liabilities	1,042,480	1,942,889
Shareholders’ equity:
Common stock, $.01 par value; 30,000,000 shares authorized; 10,573,779 and 10,541,864 shares issued, respectively; and 10,073,121 and 10,041,206 shares outstanding, respectively	105,738	105,419
Paid in capital	(5,131,949)	(5,312,881)
Retained earnings	46,930,761	45,643,449
Total shareholders’ equity before treasury stock	41,904,550	40,435,987
Less: Treasury stock, 500,658 shares, at cost	(1,000,014)	(1,000,014)
Total shareholders’ equity	40,904,536	39,435,973
Total liabilities and shareholders’ equity	$ 53,039,608	$ 53,405,681

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Current period unaudited) (Parentheticals) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Accounts receivable, allowance	$ 200,000	$ 200,000
Allowance for excess and obsolete inventory	$ 2,606,628	$ 2,156,628
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	10,573,779	10,541,864
Common stock, shares outstanding (in shares)	10,073,121	10,041,206
Treasury stock, shares (in shares)	500,658	500,658

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales	$ 11,902,391	$ 9,323,158	$ 34,106,088	$ 23,756,707
Cost of sales	7,757,784	6,103,103	21,886,166	16,442,257
Gross profit	4,144,607	3,220,055	12,219,922	7,314,450
Operating, selling, general and administrative expenses	3,202,402	2,898,216	10,081,016	7,187,512
Operating income	942,205	321,839	2,138,906	126,938
Interest expense	71,071	100,113	235,594	131,107
Income (loss) before provision for income taxes	871,134	221,726	1,903,312	(4,169)
Provision (benefit) for income taxes	234,000	44,000	616,000	(44,000)
Income from continuing operations	$ 637,134	177,726	$ 1,287,312	39,831
Discontinued operations:
Loss from discontinued operations, net of tax		(2,135)		(36,211)
Loss on sale of discontinued operations, net of tax		(73,393)		(629,835)
Discontinued operations, net of tax		(75,528)		(666,046)
Net income (loss)	$ 637,134	$ 102,198	$ 1,287,312	$ (626,215)
Basic
Continuing operations (in dollars per share)	$ 0.06	$ 0.02	$ 0.13
Discontinued operations (in dollars per share)		(0.01)		$ (0.07)
Net income (loss) (in dollars per share)	$ 0.06	0.01	$ 0.13	$ (0.06)
Diluted
Continuing operations (in dollars per share)	$ 0.06	0.02	$ 0.13
Discontinued operations (in dollars per share)		(0.01)		$ (0.07)
Net income (loss) (in dollars per share)	$ 0.06	$ 0.01	$ 0.13	$ (0.06)
Shares used in per share calculation:
Basic (in shares)	10,073,121	10,041,206	10,055,390	10,014,839
Diluted (in shares)	10,073,121	10,087,115	10,055,390	10,051,242

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net income (loss)	$ 1,287,312	$ (626,215)
Net loss from discontinued operations		(666,046)
Net income from continuing operations	$ 1,287,312	39,831
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	299,591	258,796
Amortization	619,354	322,983
Provision for excess and obsolete inventories	450,000	451,351
Deferred income tax benefit	(180,000)	(148,000)
Share based compensation expense	184,751	134,643
Changes in assets and liabilities:
Accounts receivable	593,954	213,205
Income tax refund receivable	212,924	(295,122)
Inventories, net	(2,166,895)	(3,201,256)
Prepaid expenses	17,550	(502)
Accounts payable	(125,367)	270,233
Accrued expenses	(62,003)	52,706
Net cash provided by (used in) operating activities – continuing operations	$ 1,131,171	(1,901,132)
Net cash provided by operating activities – discontinued operations		272,372
Net cash provided by (used in) operating activities	$ 1,131,171	(1,628,760)
Investing Activities
Acquisition of business, net of cash acquired		$ (9,630,647)
Guaranteed payments for acquisition of business	$ (1,000,000)
Additions to land and buildings	(56,074)
Additions to machinery and equipment	$ (90,187)	$ (29,658)
Proceeds from sale of discontinued operations		2,000,000
Net cash used in investing activities	$ (1,146,261)	(7,660,305)
Financing Activities
Proceeds on notes payable		5,000,000
Payments on notes payable	$ (632,266)	(197,966)
Net cash provided by (used in) financing activities	(632,266)	4,802,034
Net decrease in cash and cash equivalents	(647,356)	(4,487,031)
Cash and cash equivalents at beginning of period	5,286,097	8,476,725
Cash and cash equivalents at end of period	4,638,741	3,989,694
Supplemental cash flow information:
Cash paid for interest	156,098	80,319
Cash paid for income taxes	$ 600,000	32,000
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

Note 1 - Basis of Presentation and Accounting Policies	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 - Basis of Presentation and Accounting Policies Basis of presentation The consolidated condensed financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”). Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Cable Television (“Cable TV”) and Telecommunications (“Telco”). 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 for the fiscal year ended September 30, 2014. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606)”. This guidance was issued to clarify the principles for recognizing revenue and develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (“IFRS”). The guidance is currently effective for the fiscal year and interim periods beginning October 1, 2017. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date. Management is evaluating the impact that ASU No. 2014-09 will have on the Company’s consolidated financial statements.

Note 2 - Inventories

Note 2 - Inventories	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 2 – Inventories Inventories at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 September 30, 2014 New: Cable TV $ 16,706,317 $ 16,949,713 Refurbished: Cable TV 3,732,385 3,982,140 Telco 6,665,344 4,005,298 Allowance for excess and obsolete inventory (2,606,628 ) (2,156,628 ) $ 24,497,418 $ 22,780,523 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 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 in the Cable Television segment to allow for obsolete inventory, which increased the cost of sales during the nine months ended June 30, 2015, and 2014, by approximately $0.5 million. For the Telco segment, any obsolete and excess telecommunications inventory is processed through its recycling program when it is identified.

Note 3 - Intangible Assets

Note 3 - Intangible Assets	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	Note 3 – Intangible Assets 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 with their associated accumulated amortization amounts at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (567,599 ) $ 3,689,401 Technology – 7 years 1,303,000 (248,189 ) 1,054,811 Trade name – 10 years 1,293,000 (172,400 ) 1,120,600 Non-compete agreements – 3 years 254,000 (112,888 ) 141,112 Total intangible assets $ 7,107,000 $ (1,101,076 ) $ 6,005,924 September 30, 2014 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (248,325 ) $ 4,008,675 Technology – 7 years 1,303,000 (108,583 ) 1,194,417 Trade name – 10 years 1,293,000 (75,425 ) 1,217,575 Non-compete agreements – 3 years 254,000 (49,389 ) 204,611 Total intangible assets $ 7,107,000 $ (481,722 ) $ 6,625,278

Note 4 - Notes Payable and Line

Note 4 - Notes Payable and Line of Credit	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 4 – 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”). At June 30, 2015, the Company has two term loans outstanding under the Credit and Term Loan Agreement. The first outstanding term loan has an outstanding balance of $1.2 million at June 30, 2015 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 June 30, 2015) and is reset monthly. This term loan is collateralized by inventory, accounts receivable, equipment and fixtures and general intangibles. The second outstanding term loan has an outstanding balance of $4.2 million at June 30, 2015 and is due March 4, 2019, with monthly principal and interest payments of $68,505, with the balance due at maturity. It is a five year term loan with a seven year amortization payment schedule with a fixed interest rate of 4.07%. This term loan is collateralized by inventory, accounts receivable, equipment and fixtures and general intangibles. Capital Lease Obligations The Company has two capital lease obligations related to machinery and equipment totaling $48 thousand at June 30, 2015 with monthly principal and interest payments of $2,069. The capital lease obligations are due on June 20, 2017 and September 20, 2017. 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, 2015, 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% (2.91% at June 30, 2015), and the interest rate is reset monthly. Any future borrowings under the Line of Credit are due on November 27, 2015. 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, 2015. 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 FASB ASC 820, Fair Value Measurements and Disclosures, ● 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 carrying value of its variable-rate term loan approximates its fair value since the interest rate fluctuates periodically based on a floating interest rate. 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 $4.1 million as of June 30, 2015.

Note 5 - Earnings per Share

Note 5 - Earnings per Share	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 5 – 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, 2015 and 2014 are: Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Income from continuing operations $ 637,134 $ 177,726 $ 1,287,312 $ 39,831 Discontinued operations, net of tax − (75,528 ) − (666,046 ) Net income (loss) attributable to common shareholders $ 637,134 $ 102,198 $ 1,287,312 $ (626,215 ) Basic weighted average shares 10,073,121 10,041,206 10,055,390 10,014,839 Effect of dilutive securities: Stock options − 45,909 − 36,403 Diluted weighted average shares 10,073,121 10,087,115 10,055,390 10,051,242 Earnings (loss) per common share: Basic Continuing operations $ 0.06 $ 0.02 $ 0.13 $ − Discontinued operations − (0.01 ) − (0.07 ) Net income (loss) $ 0.06 $ 0.01 $ 0.13 $ (0.06 ) Diluted Continuing operations $ 0.06 $ 0.02 $ 0.13 $ − Discontinued operations − (0.01 ) − (0.07 ) Net income (loss) $ 0.06 $ 0.01 $ 0.13 $ (0.06 )

Note 6 - Stock Option Plan

Note 6 - Stock Option Plan	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 6 – Stock Option Plan Plan Information At the annual meeting of shareholders in March 2015, the shareholders approved the 2015 Incentive Stock Plan (the “Plan”). The Plan provides for awards of stock options and restricted stock to officers, directors, key employees and consultants. The Plan provides an additional 500,000 shares of common stock available for issuance in addition to those stock awards that were outstanding under the previous incentive stock plan. Under the Plan, option prices will be set by the Compensation Committee and may not be less than the fair market value of the stock on the grant date. At June 30, 2015, 1,100,591 shares of common stock were reserved for stock award grants under the Plan. Of these reserved shares, 500,000 shares were available for future grants. Stock Options All 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. 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, 2015 and changes during the nine months then ended is presented below: Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2014 560,000 $ 2.96 Granted − − Exercised − − Expired (15,000 ) $ 4.62 Forfeited − − Outstanding at June 30, 2015 545,000 $ 2.91 Exercisable at June 30, 2015 311,667 $ 2.94 No nonqualified stock options were granted for the nine months ended June 30, 2015. 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. Compensation expense related to unvested stock options recorded for the nine months ended June 30, 2015 is as follows: Nine Months Ended June 30, 2015 Fiscal year 2012 grant $ 24,783 Fiscal year 2014 grant $ 81,468 The Company records compensation expense over the vesting term of the related options. At June 30, 2015, compensation costs related to these unvested stock options not yet recognized in the consolidated condensed statements of operations was $119,288. Restricted Stock The Company granted restricted stock in March 2015 to its Board of Directors totaling 31,915 shares, which were valued at market value on the date of grant. The shares are being held by the Company for 12 months and will be delivered to the directors at the end of the 12 month holding period. The fair value of these shares upon issuance totaled $75,000 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 7 - Segment Reporting

Note 7 - Segment Reporting	9 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 7 – Segment Reporting The Company is reporting its financial performance based on its 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 Telco segment sells certified used telecommunications networking equipment from a broad range of manufacturers to customers primarily in North America as well as other international regions. In addition, this segment also offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program. 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. Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets. Three Months Ended Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Sales Cable TV $ 6,752,224 $ 6,506,763 $ 19,377,515 $ 19,874,687 Telco 5,235,317 2,816,395 15,085,388 3,882,020 Intercompany (85,150 ) − (356,815 ) − Total sales $ 11,902,391 $ 9,323,158 $ 34,106,088 $ 23,756,707 Gross profit Cable TV $ 2,367,221 $ 1,903,435 $ 6,189,705 $ 5,619,323 Telco 1,777,386 1,316,620 6,030,217 1,695,127 Total gross profit $ 4,144,607 $ 3,220,055 $ 12,219,922 $ 7,314,450 Operating income Cable TV $ 846,372 $ 385,309 $ 1,813,022 $ 867,762 Telco 95,833 (63,470 ) 325,884 (740,824 ) Total operating income $ 942,205 $ 321,839 $ 2,138,906 $ 126,938 June 30, 2015 September 30, 2014 Segment assets Cable TV $ 27,265,152 $ 29,241,335 Telco 19,010,305 17,781,114 Non-allocated 6,764,151 6,383,232 Total assets $ 53,039,608 $ 53,405,681

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of presentation The consolidated condensed financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”). Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Cable Television (“Cable TV”) and Telecommunications (“Telco”). 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 for the fiscal year ended September 30, 2014.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606)”. This guidance was issued to clarify the principles for recognizing revenue and develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (“IFRS”). The guidance is currently effective for the fiscal year and interim periods beginning October 1, 2017. However, on July 9, 2015, the FASB voted to approve a one-year deferral of the effective date. Management is evaluating the impact that ASU No. 2014-09 will have on the Company’s consolidated financial statements.

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	9 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 30, 2015 September 30, 2014 New: Cable TV $ 16,706,317 $ 16,949,713 Refurbished: Cable TV 3,732,385 3,982,140 Telco 6,665,344 4,005,298 Allowance for excess and obsolete inventory (2,606,628 ) (2,156,628 ) $ 24,497,418 $ 22,780,523

Note 3 - Intangible Assets (Tab

Note 3 - Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	June 30, 2015 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (567,599 ) $ 3,689,401 Technology – 7 years 1,303,000 (248,189 ) 1,054,811 Trade name – 10 years 1,293,000 (172,400 ) 1,120,600 Non-compete agreements – 3 years 254,000 (112,888 ) 141,112 Total intangible assets $ 7,107,000 $ (1,101,076 ) $ 6,005,924 September 30, 2014 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (248,325 ) $ 4,008,675 Technology – 7 years 1,303,000 (108,583 ) 1,194,417 Trade name – 10 years 1,293,000 (75,425 ) 1,217,575 Non-compete agreements – 3 years 254,000 (49,389 ) 204,611 Total intangible assets $ 7,107,000 $ (481,722 ) $ 6,625,278

Note 5 - Earnings per Share (Ta

Note 5 - Earnings per Share (Tables)	9 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Income from continuing operations $ 637,134 $ 177,726 $ 1,287,312 $ 39,831 Discontinued operations, net of tax − (75,528 ) − (666,046 ) Net income (loss) attributable to common shareholders $ 637,134 $ 102,198 $ 1,287,312 $ (626,215 ) Basic weighted average shares 10,073,121 10,041,206 10,055,390 10,014,839 Effect of dilutive securities: Stock options − 45,909 − 36,403 Diluted weighted average shares 10,073,121 10,087,115 10,055,390 10,051,242 Earnings (loss) per common share: Basic Continuing operations $ 0.06 $ 0.02 $ 0.13 $ − Discontinued operations − (0.01 ) − (0.07 ) Net income (loss) $ 0.06 $ 0.01 $ 0.13 $ (0.06 ) Diluted Continuing operations $ 0.06 $ 0.02 $ 0.13 $ − Discontinued operations − (0.01 ) − (0.07 ) Net income (loss) $ 0.06 $ 0.01 $ 0.13 $ (0.06 )

Note 6 - Stock Option Plan (Tab

Note 6 - Stock Option Plan (Tables)	9 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2014 560,000 $ 2.96 Granted − − Exercised − − Expired (15,000 ) $ 4.62 Forfeited − − Outstanding at June 30, 2015 545,000 $ 2.91 Exercisable at June 30, 2015 311,667 $ 2.94
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Nine Months Ended June 30, 2015 Fiscal year 2012 grant $ 24,783 Fiscal year 2014 grant $ 81,468

Note 7 - Segment Reporting (Tab

Note 7 - Segment Reporting (Tables)	9 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Sales Cable TV $ 6,752,224 $ 6,506,763 $ 19,377,515 $ 19,874,687 Telco 5,235,317 2,816,395 15,085,388 3,882,020 Intercompany (85,150 ) − (356,815 ) − Total sales $ 11,902,391 $ 9,323,158 $ 34,106,088 $ 23,756,707 Gross profit Cable TV $ 2,367,221 $ 1,903,435 $ 6,189,705 $ 5,619,323 Telco 1,777,386 1,316,620 6,030,217 1,695,127 Total gross profit $ 4,144,607 $ 3,220,055 $ 12,219,922 $ 7,314,450 Operating income Cable TV $ 846,372 $ 385,309 $ 1,813,022 $ 867,762 Telco 95,833 (63,470 ) 325,884 (740,824 ) Total operating income $ 942,205 $ 321,839 $ 2,138,906 $ 126,938
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	June 30, 2015 September 30, 2014 Segment assets Cable TV $ 27,265,152 $ 29,241,335 Telco 19,010,305 17,781,114 Non-allocated 6,764,151 6,383,232 Total assets $ 53,039,608 $ 53,405,681

Note 2 - Inventories (Details T

Note 2 - Inventories (Details Textual) - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Inventory Write-down	$ 450,000	$ 451,351

Note 2 - Schedule of Inventorie

Note 2 - Schedule of Inventories (Details) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
New:
Cable TV	$ 16,706,317	$ 16,949,713
Refurbished:
Cable TV	3,732,385	3,982,140
Telco	6,665,344	4,005,298
Allowance for excess and obsolete inventory	(2,606,628)	(2,156,628)
	$ 24,497,418	$ 22,780,523

Note 3 - Intangible Assets (Det

Note 3 - Intangible Assets (Details Textual)	9 Months Ended
	Jun. 30, 2015
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years

Note 3 - Intangible Assets - Sc

Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Customer Relationships [Member]
Gross	$ 4,257,000	$ 4,257,000
Accumulated Amortization	(567,599)	(248,325)
Net	3,689,401	4,008,675
Technology-Based Intangible Assets [Member]
Gross	1,303,000	1,303,000
Accumulated Amortization	(248,189)	(108,583)
Net	1,054,811	1,194,417
Trade Names [Member]
Gross	1,293,000	1,293,000
Accumulated Amortization	(172,400)	(75,425)
Net	1,120,600	1,217,575
Noncompete Agreements [Member]
Gross	254,000	254,000
Accumulated Amortization	(112,888)	(49,389)
Net	141,112	204,611
Gross	7,107,000	7,107,000
Accumulated Amortization	(1,101,076)	(481,722)
Net	$ 6,005,924	$ 6,625,278

Note 3 - Intangible Assets - 23

Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals)	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life	10 years	10 years
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Asset, Useful Life	7 years	7 years
Trade Names [Member]
Finite-Lived Intangible Asset, Useful Life	10 years	10 years
Noncompete Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	3 years	3 years

Note 4 - Notes Payable and Li24

Note 4 - Notes Payable and Line of Credit (Details Textual) - Jun. 30, 2015	USD ($)
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.75%
Line of Credit [Member]
Long-term Line of Credit	$ 0
Debt Instrument, Interest Rate, Effective Percentage	2.91%
Line of Credit Facility, Maximum Borrowing Capacity	$ 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	$ 7,000,000
Fixed Charge Coverage Ratio	1.25
Term Loan 1 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.40%
Term Loan 1 [Member]
Loans Payable	$ 1,200,000
Debt Instrument, Periodic Payment	$ 15,334
Debt Instrument, Interest Rate, Effective Percentage	1.58%
Term Loan 2 [Member]
Loans Payable	$ 4,200,000
Debt Instrument, Periodic Payment	$ 68,505
Debt Instrument, Term	5 years
Debt Instrument Amortization Term	7 years
Debt Instrument, Interest Rate, Stated Percentage	4.07%
Debt Instrument, Fair Value Disclosure	$ 4,100,000
Capital Lease Obligations [Member]
Debt Instrument, Periodic Payment	2,069
Capital Lease Obligations	$ 48,000

Note 5 - Basic and Diluted Earn

Note 5 - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income from continuing operations	$ 637,134	$ 177,726	$ 1,287,312	$ 39,831
Discontinued operations, net of tax		(75,528)		(666,046)
Net income (loss) attributable to common shareholders	$ 637,134	$ 102,198	$ 1,287,312	$ (626,215)
Basic (in shares)	10,073,121	10,041,206	10,055,390	10,014,839
Effect of dilutive securities:
Stock options (in shares)		45,909		36,403
Diluted weighted average shares (in shares)	10,073,121	10,087,115	10,055,390	10,051,242
Basic
Continuing operations (in dollars per share)	$ 0.06	$ 0.02	$ 0.13
Discontinued operations (in dollars per share)		(0.01)		$ (0.07)
Net income (loss) (in dollars per share)	$ 0.06	0.01	$ 0.13	$ (0.06)
Diluted
Continuing operations (in dollars per share)	$ 0.06	0.02	$ 0.13
Discontinued operations (in dollars per share)		(0.01)		$ (0.07)
Net income (loss) (in dollars per share)	$ 0.06	$ 0.01	$ 0.13	$ (0.06)

Note 6 - Stock Option Plan (Det

Note 6 - Stock Option Plan (Details Textual) - USD ($)	1 Months Ended		9 Months Ended
	Mar. 31, 2015	Apr. 30, 2014	Jun. 30, 2015
Nonqualified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			0
Employees [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Employees [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Stock Options Expiration Period			10 years
Board Of Directors [Member]
Stock Options Expiration Period			10 years
Stock Issued During Period, Shares, Restricted Stock Award, Gross	31,915
Restricted Stock Holding Period	1 year
Certain Employees [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		23,676
Restricted Stock Holding Period		3 years
Fair Value Of Restricted Shares Upon Issuance		$ 76,000
Holding Restriction, Annual Expiration of Restricted Stock		7,892
The 2015 Incentive Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	500,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%
Common Stock, Capital Shares Reserved for Future Issuance			1,100,591
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 119,288
Fair Value Of Restricted Shares Upon Issuance	$ 75,000

Note 6 - Summary of Status of t

Note 6 - Summary of Status of the Company's Stock Options (Details) - Jun. 30, 2015 - $ / shares	Total
Outstanding (in shares)	560,000
Outstanding (in dollars per share)	$ 2.96
Expired (in shares)	(15,000)
Expired (in dollars per share)	$ 4.62
Outstanding (in shares)	545,000
Outstanding (in dollars per share)	$ 2.91
Exercisable at June 30, 2015 (in shares)	311,667
Exercisable at June 30, 2015 (in dollars per share)	$ 2.94

Note 6 - Compensation Expense R

Note 6 - Compensation Expense Related to Restricted Stock (Details) - Employee Stock Option [Member]	9 Months Ended
	Jun. 30, 2015USD ($)
Fiscal Year 2012 Grant [Member]
Compensation expense	$ 24,783
Fiscal Year 2014 Grant [Member]
Compensation expense	$ 81,468

Note 7 - Segment Reporting Info

Note 7 - Segment Reporting Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating Segments [Member] | Cable TV [Member]
Sales	$ 6,752,224	$ 6,506,763	$ 19,377,515	$ 19,874,687
Gross profit	2,367,221	1,903,435	6,189,705	5,619,323
Operating income	846,372	385,309	1,813,022	867,762
Operating Segments [Member] | Telco [Member]
Sales	5,235,317	2,816,395	15,085,388	3,882,020
Gross profit	1,777,386	1,316,620	6,030,217	1,695,127
Operating income	95,833	$ (63,470)	325,884	$ (740,824)
Intersegment Eliminations [Member]
Sales	(85,150)		(356,815)
Sales	11,902,391	$ 9,323,158	34,106,088	$ 23,756,707
Gross profit	4,144,607	3,220,055	12,219,922	7,314,450
Operating income	$ 942,205	$ 321,839	$ 2,138,906	$ 126,938

Note 7 - Segment Reporting - Se

Note 7 - Segment Reporting - Segment Assets (Details) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Cable TV [Member] | Operating Segments [Member]
Segment assets	$ 27,265,152	$ 29,241,335
Telco [Member] | Operating Segments [Member]
Segment assets	19,010,305	17,781,114
Intersegment Eliminations [Member]
Segment assets	6,764,151	6,383,232
Segment assets	$ 53,039,608	$ 53,405,681