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 |