ADDvantage Technologies (AEYGQ) 10-Q 14 Feb 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document Information [Line Items]
Entity Registrant Name	ADDVANTAGE TECHNOLOGIES GROUP INC
Entity Central Index Key	874,292
Trading Symbol	aey
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)		10,134,235
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Assets
Cash and cash equivalents	$ 4,103,337	$ 4,508,126
Accounts receivable, net of allowance for doubtful accounts of $250,000	5,200,673	4,278,855
Income tax receivable	361,491	480,837
Inventories, net of allowance for excess and obsolete inventory of $2,737,488 and $2,570,868, respectively	21,823,255	21,524,919
Prepaid expenses	267,051	323,289
Total current assets	31,755,807	31,116,026
Land and buildings	7,218,678	7,218,678
Machinery and equipment	3,921,159	3,833,230
Leasehold improvements	202,017	151,957
Total property and equipment, at cost	11,341,854	11,203,865
Less: Accumulated depreciation	(5,096,889)	(4,993,102)
Net property and equipment	6,244,965	6,210,763
Intangibles, net of accumulated amortization	9,502,683	4,973,669
Goodwill	6,031,511	3,910,089
Deferred income taxes	1,337,000	1,333,000
Other assets	136,412	135,988
Total assets	56,626,502	50,268,159
Liabilities and Shareholders’ Equity
Accounts payable	2,621,277	1,857,953
Accrued expenses	1,218,118	1,324,652
Notes payable – current portion	2,178,335	899,603
Other current liabilities	1,626,220	963,127
Total current liabilities	7,643,950	5,045,335
Notes payable, less current portion	5,734,439	3,466,358
Other liabilities	1,392,373	131,410
Total liabilities	14,770,762	8,643,103
Shareholders’ equity:
Common stock, $.01 par value; 30,000,000 shares authorized; 10,634,893 shares issued; and 10,134,235 shares outstanding	106,349	106,349
Paid in capital	(4,903,268)	(4,916,791)
Retained earnings	47,652,673	47,435,512
Total shareholders’ equity before treasury stock	42,855,754	42,625,070
Less: Treasury stock, 500,658 shares, at cost	(1,000,014)	(1,000,014)
Total shareholders’ equity	41,855,740	41,625,056
Total liabilities and shareholders’ equity	56,626,502	50,268,159
Equity Method Investments [Member]
Assets
Investment in and loans to equity method investee	$ 1,618,124	$ 2,588,624

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Accounts receivable, allowance for doubtful accounts	$ 250,000	$ 250,000
Inventories, allowance for excess and obsolete inventory	$ 2,737,488	$ 2,570,868
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)	10,634,893	10,634,893
Common stock, shares outstanding (in shares)	10,134,235	10,134,235
Treasury stock, shares (in shares)	500,658	500,658

Consolidated Condensed Statemen

Consolidated Condensed Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales	$ 12,095,826	$ 8,249,668
Cost of sales	8,072,197	5,484,288
Gross profit	4,023,629	2,765,380
Operating, selling, general and administrative expenses	3,596,824	2,668,625
Income from operations	426,805	96,755
Interest expense	96,644	67,761
Income before income taxes	330,161	28,994
Provision for income taxes	113,000	5,000
Net income	$ 217,161	$ 23,994
Earnings per share:
Basic (in dollars per share)	$ 0.02	$ 0
Diluted (in dollars per share)	$ 0.02	$ 0
Shares used in per share calculation:
Basic (in shares)	10,134,235	10,069,139
Diluted (in shares)	10,134,559	10,069,139

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Activities
Net income	$ 217,161	$ 23,994
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	103,787	95,180
Amortization	311,986	206,451
Provision for excess and obsolete inventories	166,620	150,000
Deferred income tax provision (benefit)	(4,000)	2,000
Share based compensation expense	41,884	45,013
Changes in assets and liabilities:
Accounts receivable	195,077	425,783
Income tax receivable\payable	119,346	(136,490)
Inventories, net	683,638	475,224
Prepaid expenses	29,060	26,524
Other assets	(424)
Accounts payable	179,651	28,320
Accrued expenses	(252,515)	(323,180)
Net cash provided by operating activities	1,791,271	1,018,819
Investing Activities
Acquisition of net operating assets	(6,643,540)	(178,000)
Repayments of loans to equity method investee	970,500
Purchases of property and equipment	(69,833)	(24,475)
Net cash used in investing activities	(5,742,873)	(202,475)
Financing Activities
Proceeds from notes payable	4,000,000
Debt issuance costs	(15,394)
Payments on notes payable	(437,793)	(215,989)
Net cash provided by (used in) financing activities	3,546,813	(215,989)
Net increase (decrease) in cash and cash equivalents	(404,789)	600,355
Cash and cash equivalents at beginning of period	4,508,126	6,110,986
Cash and cash equivalents at end of period	4,103,337	6,711,341
Supplemental cash flow information:
Cash paid for interest	63,161	46,393
Cash paid for income taxes		142,200
Supplemental noncash investing activities:
Deferred guaranteed payments for acquisition of business	$ (1,897,372)

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation and Accounting Policies	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	Note 1 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 September 30, 2016. Recently Issued Accounting Standards In May 2014, 2014 09: 606)”. August 2015, 2015 14: 606). 2014 09 one 2014 09 December 15, 2017. 2014 09 2014 09, 2014 09 In February 2016, 2016 02: 842)” twelve December 15, 2018 2016 02 In March 2016, 2016 09: 718)” December 15, 2016 2016 09 In August 2016, 2016 15: 230) eight December 15, 2017, 2016 15 In January 2017, 2017 04: 350) second December 15, 2019, 2017 04

Note 2 - Acquisition

Note 2 - Acquisition	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	Note 2 As part of the Company’s growth strategy, the Company is pursuing an acquisition strategy to expand into the broader telecommunications industry. The Company formed a new subsidiary called ADDvantage Triton, LLC (“Triton Datacom”) which on October 14, 2016 The preliminary estimated purchase price for Triton Miami includes the following: Upfront cash payment $ 6,500,000 Deferred guaranteed payments (a) 1,897,372 Working capital purchase adjustment 143,540 Net purchase price $ 8,540,912 (a) This amount represents the present value of $2.0 three ($0.7 ($1.2 The Company will also make annual payments to the Triton Miami owners, if they have not resigned from Triton Datacom, over the next three 60% $1.2 three Under the acquisition method of accounting, the total estimated purchase price is allocated to Triton Miami’s tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of October 14, 2016, The Company has one may may The following summarizes the preliminary purchase price allocation of the fair value of the assets acquired and the liabilities assumed at October 14, 2016: (in thousands) Assets acquired: Accounts receivable $ 1,117 Inventories 1,149 Property and equipment, net 68 Other non-current assets 1 Intangible assets 4,841 Goodwill 2,121 Total assets acquired 9,297 Liabilities assumed: Accounts payable 584 Accrued expenses 172 Total liabilities assumed 756 Net purchase price $ 8,541 The acquired intangible assets of approximately $4.8 The unaudited financial information in the table below summarizes the combined results of operations of ADDvantage Technologies Group and Triton Miami for the three December 31, 2016 December 31, 2015, October 1, 2015. three December 31, 2016 December 31, 2015 $21 $0.1 $7 $44 three December 31, 2016 December 31, 2015, $4.0 October 1, 2015. three December 31, 2015 $0.2 October 1, 2015 Three Months Ended December 31, 2016 2015 (in thousands, except per share amounts) Sales $ 12,534 $ 11,173 Income from operations $ 658 $ 64 Net income (loss) $ 351 $ (33 ) Earnings (loss) per share: Basic $ 0.03 $ (0.00 ) Diluted $ 0.03 $ (0.00 )

Note 3 - Inventories

Note 3 - Inventories	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 3 – Inventories Inventories at December 31, 2016 September 30, 2016 December 31, 2016 September 30, 2016 New: Cable TV $ 14,541,111 $ 15,087,495 Telco 225,177 – Refurbished and used: Cable TV 3,255,801 3,383,079 Allowance for excess and obsolete inventory (2,369,586 ) (2,219,586 ) Telco 6,538,654 5,625,213 Allowance for excess and obsolete inventory (367,902 ) (351,282 ) $ 21,823,255 $ 21,524,919 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 Telco new and refurbished inventory at December 31, 2016 $0.1 $1.1 The Company regularly reviews the Cable TV 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 TV segment to allow for obsolete inventory, which increased the cost of sales during the three December 31, 2016 2015, $0.2 For the Telco segment, any obsolete or excess telecommunications inventory is generally processed through its recycling program when it is identified. However, the Telco segment has identified certain inventory that more than likely will not be sold or that the cost will not be recovered when it is sold, and had not yet been processed through its recycling program. Therefore, the Company has a $0.4 December 31, 2016.

Note 4 - Investment In and Loan

Note 4 - Investment In and Loans to Equity Method Investee	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	Note 4 The Company’s joint venture with YKTG Solutions, LLC (“YKTG Solutions”) primary purpose is to support decommission work on cell tower sites across 13 51% 49% For its role in the decommission project, the Company earns a management fee from YKTG Solutions based on billings. The Company is financing the decommission project pursuant to the terms of a loan agreement between the Company and YKTG Solutions by providing a revolving line of credit. The line of credit is for $4.0 12% December 31, 2016, $2.3 The Company’s carrying value in YKTG Solutions is reflected in investment in and loans to equity method investee in the Consolidated Condensed Balance Sheets. During the three December 31, 2016, $1.0 December 31, 2016, $4.0 $2.0 To date, this joint venture has incurred operating losses totaling $0.4 December 31, 2016, three December 31, 2016, $0.2 may

Note 5 - Intangible Assets

Note 5 - Intangible Assets	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	Note 5 – Intangible Assets Intangible assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 10 2). December 31, 2016 September 30, 2016 December 31, 2016 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (1,286,500 ) $ 6,865,500 Technology – 7 years 1,303,000 (527,402 ) 775,598 Trade name – 10 years 2,119,000 (383,264 ) 1,735,736 Non-compete agreements – 3 years 374,000 (248,151 ) 125,849 Total intangible assets $ 11,948,000 $ (2,445,317 ) $ 9,502,683 September 30, 2016 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (1,099,721 ) $ 3,157,279 Technology – 7 years 1,303,000 (480,866 ) 822,134 Trade name – 10 years 1,293,000 (334,023 ) 958,977 Non-compete agreements – 3 years 254,000 (218,721 ) 35,279 Total intangible assets $ 7,107,000 $ (2,133,331 ) $ 4,973,669

Note 6 - Notes Payable and Line

Note 6 - Notes Payable and Line of Credit	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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”) with its primary financial lender. At December 31, 2016, three The first $0.9 December 31, 2016 November 30, 2021, $15,334 30 1.4% (2.03% December 31, 2016) The second $3.2 December 31, 2016 March 4, 2019, $68,505, five seven 4.07%. In connection with the acquisition of Triton Miami, the Company entered into a third $4.0 $3.8 December 31, 2016 October 14, 2019, $118,809. 4.40%. Line of Credit The Company has a $7.0 December 31, 2016, 30 2.75% (3.52% December 31, 2016), March 31, 2017. $7.0 80% 50% $7.0 December 31, 2016. 1.25 1.0, Fair Value of Debt FASB ASC 820, Fair Value Measurements and Disclosures, three ● Level 1 ● Level 2 1 ● Level 3 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 second $3.2 December 31, 2016. third $3.8 December 31, 2016.

Note 7 - Earnings Per Share

Note 7 - Earnings Per Share	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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 share 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 December 31, 2016 2015 Three Months Ended December 31, 2016 2015 Net income attributable to common shareholders $ 217,161 $ 23,994 Basic weighted average shares 10,134,235 10,069,139 Effect of dilutive securities: Stock options 324 – Diluted weighted average shares 10,134,559 10,069,139 Earnings per common share: Basic $ 0.02 $ 0.00 Diluted $ 0.02 $ 0.00 The table below includes information related to stock options that were outstanding at the end of each respective three December 31, three December 31, Three Months Ended December 31, 2016 2015 Stock options excluded 520,000 535,000 Weighted average exercise price of stock options $ 2.83 $ 2.88 Average market price of common stock $ 1.76 $ 2.19

Note 8 - Stock-based Compensati

Note 8 - Stock-based Compensation	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 8 Plan Information The 2015 may At December 31, 2016, 1,100,415 434,211 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 income. Stock options are valued at the date of the award, which does not precede the approval date, and compensation cost is recognized on a straight-line basis over the vesting period. Stock options granted to employees generally become exercisable over a three, four five ten ten A summary of the status of the Company's stock options at December 31, 2016 three Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2016 570,000 $ 2.73 Granted – – Exercised – – Expired – – Forfeited – – Outstanding at December 31, 2016 570,000 $ 2.73 Exercisable at December 31, 2016 403,334 $ 2.81 No nonqualified stock options were granted for the three December 31, 2016. zero zero Compensation expense related to unvested stock options recorded for the three December 31, 2016 Three Months Ended December 31, 2016 Fiscal year 2012 grant $ 2,680 Fiscal year 2014 grant $ 6,788 Fiscal year 2016 grant $ 4,055 The Company records compensation expense over the vesting term of the related options. At December 31, 2016, $31,014. Restricted Stock The Company granted restricted stock in March 2016 62,874 12 12 $105,000, 12 April 2014 23,676 7,892 three April 2015. $76,000 one, two three

Note 9 - Segment Reporting

Note 9 - Segment Reporting	3 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 9 – 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 primarily sells certified used telecommunications networking equipment from a broad range of manufacturers to customers primarily in North America. In addition, this segment is a reseller of new telecommunications equipment from certain manufacturers. Also, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling services. As a result of the Triton Miami acquisition (see Note 2), 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 and equipment, goodwill and intangible assets. Three Months Ended December 31, 2016 December 31, 2015 Sales Cable TV $ 6,574,824 $ 5,004,998 Telco 5,539,977 3,317,730 Intersegment (18,975 ) (73,060 ) Total sales $ 12,095,826 $ 8,249,668 Gross profit Cable TV $ 2,400,342 $ 1,579,272 Telco 1,623,287 1,186,108 Total gross profit $ 4,023,629 $ 2,765,380 Operating income (loss) Cable TV $ 908,982 $ 116,841 Telco (482,177 ) (20,086 ) Total operating income $ 426,805 $ 96,755 December 31, 2016 September 30, 2016 Segment assets Cable TV $ 24,645,908 $ 25,201,697 Telco 23,686,244 15,122,911 Non-allocated 8,294,350 9,943,551 Total assets $ 56,626,502 $ 50,268,159

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2016
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 September 30, 2016.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Standards In May 2014, 2014 09: 606)”. August 2015, 2015 14: 606). 2014 09 one 2014 09 December 15, 2017. 2014 09 2014 09, 2014 09 In February 2016, 2016 02: 842)” twelve December 15, 2018 2016 02 In March 2016, 2016 09: 718)” December 15, 2016 2016 09 In August 2016, 2016 15: 230) eight December 15, 2017, 2016 15 In January 2017, 2017 04: 350) second December 15, 2019, 2017 04

Note 2 - Acquisition (Tables)

Note 2 - Acquisition (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Upfront cash payment $ 6,500,000 Deferred guaranteed payments (a) 1,897,372 Working capital purchase adjustment 143,540 Net purchase price $ 8,540,912
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	(in thousands) Assets acquired: Accounts receivable $ 1,117 Inventories 1,149 Property and equipment, net 68 Other non-current assets 1 Intangible assets 4,841 Goodwill 2,121 Total assets acquired 9,297 Liabilities assumed: Accounts payable 584 Accrued expenses 172 Total liabilities assumed 756 Net purchase price $ 8,541
Business Acquisition, Pro Forma Information [Table Text Block]	Three Months Ended December 31, 2016 2015 (in thousands, except per share amounts) Sales $ 12,534 $ 11,173 Income from operations $ 658 $ 64 Net income (loss) $ 351 $ (33 ) Earnings (loss) per share: Basic $ 0.03 $ (0.00 ) Diluted $ 0.03 $ (0.00 )

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 2016 September 30, 2016 New: Cable TV $ 14,541,111 $ 15,087,495 Telco 225,177 – Refurbished and used: Cable TV 3,255,801 3,383,079 Allowance for excess and obsolete inventory (2,369,586 ) (2,219,586 ) Telco 6,538,654 5,625,213 Allowance for excess and obsolete inventory (367,902 ) (351,282 ) $ 21,823,255 $ 21,524,919

Note 5 - Intangible Assets (Tab

Note 5 - Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	December 31, 2016 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (1,286,500 ) $ 6,865,500 Technology – 7 years 1,303,000 (527,402 ) 775,598 Trade name – 10 years 2,119,000 (383,264 ) 1,735,736 Non-compete agreements – 3 years 374,000 (248,151 ) 125,849 Total intangible assets $ 11,948,000 $ (2,445,317 ) $ 9,502,683 September 30, 2016 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 4,257,000 $ (1,099,721 ) $ 3,157,279 Technology – 7 years 1,303,000 (480,866 ) 822,134 Trade name – 10 years 1,293,000 (334,023 ) 958,977 Non-compete agreements – 3 years 254,000 (218,721 ) 35,279 Total intangible assets $ 7,107,000 $ (2,133,331 ) $ 4,973,669

Note 7 - Earnings Per Share (Ta

Note 7 - Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended December 31, 2016 2015 Net income attributable to common shareholders $ 217,161 $ 23,994 Basic weighted average shares 10,134,235 10,069,139 Effect of dilutive securities: Stock options 324 – Diluted weighted average shares 10,134,559 10,069,139 Earnings per common share: Basic $ 0.02 $ 0.00 Diluted $ 0.02 $ 0.00
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended December 31, 2016 2015 Stock options excluded 520,000 535,000 Weighted average exercise price of stock options $ 2.83 $ 2.88 Average market price of common stock $ 1.76 $ 2.19

Note 8 - Stock-based Compensa20

Note 8 - Stock-based Compensation (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2016 570,000 $ 2.73 Granted – – Exercised – – Expired – – Forfeited – – Outstanding at December 31, 2016 570,000 $ 2.73 Exercisable at December 31, 2016 403,334 $ 2.81
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended December 31, 2016 Fiscal year 2012 grant $ 2,680 Fiscal year 2014 grant $ 6,788 Fiscal year 2016 grant $ 4,055

Note 9 - Segment Reporting (Tab

Note 9 - Segment Reporting (Tables)	3 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended December 31, 2016 December 31, 2015 Sales Cable TV $ 6,574,824 $ 5,004,998 Telco 5,539,977 3,317,730 Intersegment (18,975 ) (73,060 ) Total sales $ 12,095,826 $ 8,249,668 Gross profit Cable TV $ 2,400,342 $ 1,579,272 Telco 1,623,287 1,186,108 Total gross profit $ 4,023,629 $ 2,765,380 Operating income (loss) Cable TV $ 908,982 $ 116,841 Telco (482,177 ) (20,086 ) Total operating income $ 426,805 $ 96,755

Note 2 - Acquisition (Details T

Note 2 - Acquisition (Details Textual) - USD ($)	Oct. 14, 2016	Dec. 31, 2016	Dec. 31, 2015
Business Combination, Consideration Transferred, Liabilities Incurred		$ 1,897,372
Interest Expense		96,644	67,761
Term Loan 3 [Member]
Debt Instrument, Face Amount	$ 4,000,000
Triton Miami, Inc. [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 1,897,372
Business Combination, Consideration Transferred, Maximum Contractual Term	3 years
Business Combination, Contingent Consideration, Earnout Payments as Percentage of Acquirees Annual EBITDA in Excess of Threshold	60.00%
Business Combination, Consideration Transferred, Minimum Annual EBITDA	$ 1,200,000
Business Combination, Term for Finalizing Purchase Price Allocation	1 year
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 4,841,000
Amortization of Intangible Assets		21,000	100,000
Interest Expense		$ 7,000	44,000
Business Combination, Acquisition Related Costs			$ 200,000
Triton Miami, Inc. [Member] | Other Current Liabilities [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	700,000
Triton Miami, Inc. [Member] | Other Noncurrent Liabilities [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 1,200,000

Note 2 - Acquisition - Estimate

Note 2 - Acquisition - Estimated Purchase Price (Details) - USD ($)	Oct. 14, 2016	Dec. 31, 2016	Dec. 31, 2015
Deferred guaranteed payments		$ 1,897,372
Triton Miami, Inc. [Member]
Upfront cash payment	$ 6,500,000
Deferred guaranteed payments	1,897,372
Working capital purchase adjustment	143,540
Net purchase price	$ 8,540,912

Note 2 - Acquisition - Fair Val

Note 2 - Acquisition - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Dec. 31, 2016	Oct. 14, 2016	Sep. 30, 2016
Assets acquired:
Goodwill	$ 6,031,511		$ 3,910,089
Triton Miami, Inc. [Member]
Assets acquired:
Accounts receivable		$ 1,117,000
Inventories		1,149,000
Property and equipment, net		68,000
Other non-current assets		1,000
Intangible assets		4,841,000
Goodwill		2,121,000
Total assets acquired		9,297,000
Liabilities assumed:
Accounts payable		584,000
Accrued expenses		172,000
Total liabilities assumed		756,000
Net purchase price		$ 8,541,000

Note 2 - Acquisition - Pro Form

Note 2 - Acquisition - Pro Forma Information (Details) - Triton Miami, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales	$ 12,534	$ 11,173
Income from operations	658	64
Net income (loss)	$ 351	$ (33)
Basic (in dollars per share)	$ 0.03	$ 0
Diluted (in dollars per share)	$ 0.03	$ 0

Note 3 - Inventories (Details T

Note 3 - Inventories (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Oct. 14, 2016
Inventory Write-down	$ 166,620	$ 150,000
Telco [Member]
Inventory Write-down	400,000
Cable TV [Member]
Inventory Write-down	200,000	$ 200,000
Triton Miami, Inc. [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory			$ 1,149,000
Triton Miami, Inc. [Member] | Telco [Member] | New Inventory [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	100,000
Triton Miami, Inc. [Member] | Telco [Member] | Refurbished Inventory [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 1,100,000

Note 3 - Inventories - Schedule

Note 3 - Inventories - Schedule of Inventory (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Refurbished and used:
Allowance for excess and obsolete inventory	$ (2,737,488)	$ (2,570,868)
	21,823,255	21,524,919
Cable TV [Member] | New Inventory [Member]
New:
Inventory Gross	14,541,111	15,087,495
Refurbished and used:
Inventory Gross	14,541,111	15,087,495
Cable TV [Member] | Refurbished Inventory [Member]
New:
Inventory Gross	3,255,801	3,383,079
Refurbished and used:
Inventory Gross	3,255,801	3,383,079
Allowance for excess and obsolete inventory	(2,369,586)	(2,219,586)
Telco [Member] | New Inventory [Member]
New:
Inventory Gross	225,177
Refurbished and used:
Inventory Gross	225,177
Telco [Member] | Refurbished Inventory [Member]
New:
Inventory Gross	6,538,654	5,625,213
Refurbished and used:
Inventory Gross	6,538,654	5,625,213
Allowance for excess and obsolete inventory	$ (367,902)	$ (351,282)

Note 4 - Investment In and Lo28

Note 4 - Investment In and Loans to Equity Method Investee (Details Textual) - USD ($)	3 Months Ended		10 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016
Proceeds from Collection of Advance to Affiliate	$ 970,500
YKTG Solutions, LLC [Member]
Number of States in which Entity Operates	13		13
Equity Method Investment, Ownership Percentage	49.00%		49.00%
Proceeds from Collection of Advance to Affiliate	$ 1,000,000
Equity Investment, Maximum Loss Exposure, Amount	4,000,000		$ 4,000,000
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations			400,000
Management Fees Revenue	200,000
YKTG Solutions, LLC [Member] | Surety Bond [Member]
Guarantor Obligations, Maximum Exposure, Undiscounted	2,000,000		2,000,000
YKTG Solutions, LLC [Member] | Secured Line of Credit Receivable [Member]
Financing Receivable, Recorded Investment, Current	$ 4,000,000		$ 4,000,000
Financing Receivable, Stated Interest Rate	12.00%		12.00%
Notes, Loans and Financing Receivable, Net, Current	$ 2,300,000		$ 2,300,000
YKTG Solutions, LLC [Member] | YKTG, LLC [Member]
Equity Method Investment, Ownership Percentage	51.00%		51.00%

Note 5 - Intangible Assets - Sc

Note 5 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016
Gross	$ 11,948,000	$ 7,107,000
Accumulated Amortization	(2,445,317)	(2,133,331)
Net	9,502,683	4,973,669
Customer Relationships [Member]
Gross	8,152,000	4,257,000
Accumulated Amortization	(1,286,500)	(1,099,721)
Net	6,865,500	3,157,279
Technology-Based Intangible Assets [Member]
Gross	1,303,000	1,303,000
Accumulated Amortization	(527,402)	(480,866)
Net	775,598	822,134
Trade Names [Member]
Gross	2,119,000	1,293,000
Accumulated Amortization	(383,264)	(334,023)
Net	1,735,736	958,977
Noncompete Agreements [Member]
Gross	374,000	254,000
Accumulated Amortization	(248,151)	(218,721)
Net	$ 125,849	$ 35,279

Note 5 - Intangible Assets - 30

Note 5 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Customer Relationships [Member]
Finite-lived intangible asset, useful life (Year)	10 years	10 years
Technology-Based Intangible Assets [Member]
Finite-lived intangible asset, useful life (Year)	7 years	7 years
Trade Names [Member]
Finite-lived intangible asset, useful life (Year)	10 years	10 years
Noncompete Agreements [Member]
Finite-lived intangible asset, useful life (Year)	3 years	3 years

Note 6 - Notes Payable and Li31

Note 6 - Notes Payable and Line of Credit (Details Textual)	Oct. 14, 2016USD ($)	Dec. 31, 2016USD ($)
Revolving Credit Facility [Member]
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
Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument, Interest Rate, Effective Percentage		3.52%
Fixed Charge Coverage Ratio		1.25
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate		2.75%
Term Loan 1 [Member]
Loans Payable		$ 900,000
Debt Instrument, Periodic Payment, Principal		$ 15,334
Debt Instrument, Interest Rate, Effective Percentage		2.03%
Term Loan 1 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.40%
Term Loan 2 [Member]
Loans Payable		$ 3,200,000
Debt Instrument, Periodic Payment, Principal		$ 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		$ 3,200,000
Term Loan 3 [Member]
Loans Payable		3,800,000
Debt Instrument, Interest Rate, Stated Percentage	4.40%
Debt Instrument, Face Amount	$ 4,000,000
Debt Instrument, Periodic Payment	$ 118,809
Debt Instrument, Fair Value Disclosure		$ 3,800,000

Note 7 - Earnings Per Share - B

Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net income attributable to common shareholders	$ 217,161	$ 23,994
Basic weighted average shares (in shares)	10,134,235	10,069,139
Effect of dilutive securities:
Stock options (in shares)	324
Diluted weighted average shares (in shares)	10,134,559	10,069,139
Earnings per common share:
Diluted (in dollars per share)	$ 0.02	$ 0

Note 7 - Earnings Per Share - A

Note 7 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock options excluded (in shares)	520,000	535,000
Weighted average exercise price of stock options (in dollars per share)	$ 2.83	$ 2.88
Average market price of common stock (in dollars per share)	$ 1.76	$ 2.19

Note 8 - Stock-based Compensa34

Note 8 - Stock-based Compensation (Details Textual) - USD ($) xbrli-pure in Thousands	1 Months Ended		3 Months Ended
	Mar. 31, 2016	Apr. 30, 2014	Dec. 31, 2016
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 31,014
Nonqualified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Employees [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
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
Board Of Directors [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Board of Directors and Officer [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	62,874
Restricted Stock Holding Period	1 year
Fair Value Of Restricted Shares Upon Issuance	$ 105,000
Certain Employees [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		23,676
Restricted Stock Holding Period		2 years
Fair Value Of Restricted Shares Upon Issuance		$ 76,000
Holding Restriction, Annual Expiration of Restricted Stock		7,892
Certain Employees [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		3 years
Certain Employees [Member] | Minimum [Member]
Restricted Stock Holding Period		1 year
Certain Employees [Member] | Maximum [Member]
Restricted Stock Holding Period		3 years
The 2015 Incentive Stock Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance			1,100,415
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			434,211

Note 8 - Stock-based Compensa35

Note 8 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details)	3 Months Ended
	Dec. 31, 2016$ / sharesshares
Outstanding, shares (in shares) | shares	570,000
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 2.73
Granted, shares (in shares) | shares
Granted, weighted average exercise price (in dollars per share) | $ / shares
Exercised, shares (in shares) | shares
Exercised, weighted average exercise price (in dollars per share) | $ / shares
Expired, shares (in shares) | shares
Expired, weighted average exercise price (in dollars per share) | $ / shares
Forfeited, shares (in shares) | shares
Forfeited, weighted average exercise price (in dollars per share) | $ / shares
Outstanding, shares (in shares) | shares	570,000
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 2.73
Exercisable, shares (in shares) | shares	403,334
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 2.81

Note 8 - Stock-based Compensa36

Note 8 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details)	3 Months Ended
	Dec. 31, 2016USD ($)
Employee Stock Options Granted in FY 2012 [Member]
Compensation expense	$ 2,680
Employee Stock Options Granted in FY 2014 [Member]
Compensation expense	6,788
Employee Stock Options Granted in FY 2016 [Member]
Compensation expense	$ 4,055

Note 9 - Segment Reporting - Se

Note 9 - Segment Reporting - Segment Reporting Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Sales	$ 12,095,826	$ 8,249,668
Gross profit	4,023,629	2,765,380
Operating income (loss)	426,805	96,755
Assets	56,626,502	50,268,159	$ 50,268,159
Operating Segments [Member] | Cable TV [Member]
Sales	6,574,824	5,004,998
Gross profit	2,400,342	1,579,272
Operating income (loss)	908,982	116,841
Assets	24,645,908	25,201,697
Operating Segments [Member] | Telco [Member]
Sales	5,539,977	3,317,730
Gross profit	1,623,287	1,186,108
Operating income (loss)	(482,177)	(20,086)
Assets	23,686,244	15,122,911
Intersegment Eliminations [Member]
Sales	(18,975)	(73,060)
Segment Reconciling Items [Member]
Assets	$ 8,294,350	$ 9,943,551