Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 30, 2017 | Mar. 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) | 10,225,995 | ||
Entity Public Float | $ 10,673,601 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Assets | ||
Cash and cash equivalents | $ 3,972,723 | $ 4,508,126 |
Accounts receivable, net of allowance for doubtful accounts of $150,000 and $250,000, respectively | 5,567,005 | 4,278,855 |
Income tax receivable | 247,186 | 480,837 |
Inventories, net of allowance for excess and obsolete inventory of $2,939,289 and $2,570,868, respectively | 22,333,820 | 21,524,919 |
Prepaid expenses | 298,152 | 323,289 |
Total current assets | 32,418,886 | 31,116,026 |
Land and buildings | 7,218,678 | 7,218,678 |
Machinery and equipment | 3,995,668 | 3,833,230 |
Leasehold improvements | 202,017 | 151,957 |
Total property and equipment, at cost | 11,416,363 | 11,203,865 |
Less: Accumulated depreciation | (5,395,791) | (4,993,102) |
Net property and equipment | 6,020,572 | 6,210,763 |
Investment in and loans to equity method investee | 98,704 | 2,588,624 |
Intangibles, net of accumulated amortization | 8,547,487 | 4,973,669 |
Goodwill | 5,970,244 | 3,910,089 |
Deferred income taxes | 1,653,000 | 1,333,000 |
Other assets | 138,712 | 135,988 |
Total assets | 54,847,605 | 50,268,159 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 3,392,725 | 1,857,953 |
Accrued expenses | 1,406,722 | 1,324,652 |
Notes payable – current portion | 4,189,605 | 899,603 |
Other current liabilities | 664,325 | 963,127 |
Total current liabilities | 9,653,377 | 5,045,335 |
Notes payable, less current portion | 2,094,246 | 3,466,358 |
Other liabilities | 1,401,799 | 131,410 |
Total liabilities | 13,149,422 | 8,643,103 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 10,726,653 and 10,634,893 shares issued, respectively; 10,225,995 and 10,134,235 shares outstanding, respectively | 107,267 | 106,349 |
Paid in capital | (4,746,466) | (4,916,791) |
Retained earnings | 47,337,396 | 47,435,512 |
Total shareholders’ equity before treasury stock | 42,698,197 | 42,625,070 |
Less: Treasury stock, 500,658 shares, at cost | (1,000,014) | (1,000,014) |
Total shareholders’ equity | 41,698,183 | 41,625,056 |
Total liabilities and shareholders’ equity | $ 54,847,605 | $ 50,268,159 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts receivable, allowance for doubtful accounts | $ 150,000 | $ 250,000 |
Inventories, allowance for excess and obsolete inventory | $ 2,939,289 | $ 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) | 10,726,653 | 10,634,893 |
Common stock, shares outstanding (in shares) | 10,225,995 | 10,134,235 |
Treasury stock, shares (in shares) | 500,658 | 500,658 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | $ 48,713,746 | $ 38,663,264 | $ 43,733,620 |
Cost of sales | 33,903,153 | 26,222,381 | 28,434,731 |
Gross profit | 14,810,593 | 12,440,883 | 15,298,889 |
Operating, selling, general and administrative expenses | 14,664,987 | 12,097,022 | 12,722,679 |
Income from operations | 145,606 | 343,861 | 2,576,210 |
Other income (expense): | |||
Other income | 459,636 | ||
Interest income | 90,686 | ||
Loss from equity method investment | (184,996) | ||
Interest expense | (389,722) | (236,024) | (305,310) |
Total other income (expense), net | (389,722) | 129,302 | (305,310) |
Income (loss) before income taxes | (244,116) | 473,163 | 2,270,900 |
Provision (benefit) for income taxes | (146,000) | 179,000 | 773,000 |
Net income (loss) | $ (98,116) | $ 294,163 | $ 1,497,900 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.15 |
Diluted (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.15 |
Shares used in per share calculation: | |||
Basic (in shares) | 10,201,825 | 10,141,234 | 10,088,803 |
Diluted (in shares) | 10,201,825 | 10,145,296 | 10,088,803 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Sep. 30, 2014 | 10,541,864 | ||||
Balance at Sep. 30, 2014 | $ 105,419 | $ (5,312,881) | $ 45,643,449 | $ (1,000,014) | $ 39,435,973 |
Net income (loss) | 1,497,900 | 1,497,900 | |||
Restricted stock issuance (in shares) | 22,357 | ||||
Restricted stock issuance | $ 223 | 58,944 | 59,167 | ||
Share based compensation expense | 141,668 | $ 141,668 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||||
Balance (in shares) at Sep. 30, 2015 | 10,564,221 | ||||
Balance at Sep. 30, 2015 | $ 105,642 | (5,112,269) | 47,141,349 | (1,000,014) | $ 41,134,708 |
Net income (loss) | 294,163 | 294,163 | |||
Restricted stock issuance (in shares) | 70,672 | ||||
Restricted stock issuance | $ 707 | 121,794 | 122,501 | ||
Share based compensation expense | 73,684 | $ 73,684 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||||
Balance (in shares) at Sep. 30, 2016 | 10,634,893 | ||||
Balance at Sep. 30, 2016 | $ 106,349 | (4,916,791) | 47,435,512 | (1,000,014) | $ 41,625,056 |
Net income (loss) | (98,116) | (98,116) | |||
Restricted stock issuance (in shares) | 58,009 | ||||
Restricted stock issuance | $ 580 | 104,420 | 105,000 | ||
Share based compensation expense | 66,243 | $ 66,243 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 33,751 | 0 | |||
Stock options exercised | $ 338 | (338) | |||
Balance (in shares) at Sep. 30, 2017 | 10,726,653 | ||||
Balance at Sep. 30, 2017 | $ 107,267 | $ (4,746,466) | $ 47,337,396 | $ (1,000,014) | $ 41,698,183 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | |||
Net income (loss) | $ (98,116) | $ 294,163 | $ 1,497,900 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 446,834 | 421,950 | 408,703 |
Amortization | 1,267,182 | 825,804 | 825,805 |
Allowance for doubtful accounts | 50,000 | ||
Provision for excess and obsolete inventories | 901,599 | 951,282 | 600,000 |
Charge for lower of cost or net realizable value for inventories | 126,822 | 73,716 | 12,627 |
(Gain) loss on disposal of property and equipment | (2,000) | 30,652 | |
Deferred income tax provision (benefit) | (320,000) | 157,000 | (341,000) |
Share based compensation expense | 175,465 | 192,213 | 239,613 |
Loss from equity method investment | 184,996 | ||
Cash provided (used) by changes in operating assets and liabilities: | |||
Accounts receivable | (71,254) | 115,479 | 2,057,203 |
Income tax receivable\payable | 233,651 | (603,329) | 342,596 |
Inventories | (688,729) | 1,067,179 | (1,433,100) |
Prepaid expenses | 22,097 | (165,863) | (17,359) |
Other assets | (2,724) | (1,310) | (3,250) |
Accounts payable | 951,099 | 15,514 | (1,096,279) |
Accrued expenses | (90,003) | (34,029) | (451,197) |
Other liabilities | 134,890 | 47,726 | 120,653 |
Net cash provided by operating activities | 2,988,813 | 3,540,491 | 2,843,567 |
Investing Activities | |||
Acquisition of net operating assets | (6,643,540) | (178,000) | |
Guaranteed payments for acquisition of business | (1,000,000) | (1,000,000) | (1,000,000) |
Loan repayments from (investment in and loans to) equity method investee | 2,389,920 | (2,773,620) | |
Purchases of property and equipment | (190,303) | (319,810) | (172,649) |
Disposals of property and equipment | 1,817 | 2,000 | |
Net cash used in investing activities | (5,442,106) | (4,269,430) | (1,172,649) |
Financing Activities | |||
Proceeds on notes payable | 4,000,000 | ||
Debt issuance costs | (16,300) | ||
Payments on notes payable | (2,065,810) | (873,921) | (846,029) |
Net cash provided by (used in) financing activities | 1,917,890 | (873,921) | (846,029) |
Net increase (decrease) in cash and cash equivalents | (535,403) | (1,602,860) | 824,889 |
Cash and cash equivalents at beginning of year | 4,508,126 | 6,110,986 | 5,286,097 |
Cash and cash equivalents at end of year | 3,972,723 | 4,508,126 | 6,110,986 |
Supplemental cash flow information: | |||
Cash paid for interest | 360,805 | 195,086 | 245,051 |
Cash paid for (received from) income taxes | (61,000) | 597,200 | 944,000 |
Supplemental noncash investing activities: | |||
Deferred guaranteed payments for business acquisition | $ (1,836,105) |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1 – Summary of Significant Accounting Policies Organization and basis of presentation The consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”) as well as an equity-method investment. Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Cable Television (“Cable TV”) and Telecommunications (“Telco”). Cash and cash equivalents Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three Accounts receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not Inventor ies Inventor ies consist of new, refurbished and used electronic components for the Cable TV segment and new, refurbished and used telecommunications equipment for the Telco segment. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the weighted-average method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For both the Cable TV and Telco segments, the Company records an inventory reserve provision to reflect inventory at its estimated net realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. Property and equipment Property and equipment consists of software, office equipment, warehouse and service equipment, and buildings with estimated useful lives generally of 3 5 10 40 $ 0.4 September 30, 2017, 2016 2015. Goodwill Goodwill represents the excess of the purchase price of acquisitions over the acquisition date fair value of the net identifiable tangible and intangible assets acquired. In accordance with current accounting guidance, goodwill is not fourth The goodwill analysis is a two first September 30, 2017 2016, not Intangible a ssets Intangible assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 10 Impairment of l ong- l ived a ssets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset ’s carrying amount may not 360 10 15, 360 10 15 not Income taxes The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not not” Revenue recognition The Company recognizes revenue for product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable and the collection of the related receivable is probable, which is generally at the time of shipment. The stated shipping terms are generally FOB shipping point per the Company's sales agreements with its customers. Accruals are established for expected returns based on historical activity. Revenue for repair services is recognized when the repair is completed and the product is shipped back to the customer. Revenue for recycle services is recognized when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable and the collection of the related receivable is probable, which is generally upon acceptance of the shipment at the recycler’s location. Freight Amounts billed to customers for shipping and handling represent revenues earned and are included in sales income in the accompanying consolidated statements of operations. Actual costs for shipping and handling of these sales are included in cost of sales. Advertising costs Advertising costs are expensed as incurred. Advertising expense was $0.5 $0.2 $0.1 September 30, 2017, 2016 2015, Management estimates The preparation of financial statements in conformity with U nited States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the cable or telecommunications industries could have a significant impact on the value of the Company's inventory and operating results. Concentrations of credit risk The Company holds cash with one , which at times exceeds FDIC insured limits. Historically, the Company has not Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers but does not no 2017, 2016 2015 10% $4.3 $3.0 $3.7 September 30, 2017, 2016 2015, 2017, 24% 16% not 10% one Employee stock-based awards S hare-based payments to employees, including grants of employee stock options, are recognized in the consolidated financial statements based on their grant date fair value over the requisite service period. The Company determines the fair value of the options issued, using the Black-Scholes valuation model, and amortizes the calculated value over the vesting term of the stock options. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of operations. Earnings per share Basic earnings per share is computed by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the year. Dilutive earnings per share include any dilutive effect of stock options and restricted stock. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. Financial Accounting Standards Board (“ FASB”) ASC 820, Fair Value Measurements and Disclosures, three ● 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 ● Level 3 – Inputs that are not Recent ly i ssued a ccounting s tandards In May 2014, No. 2014 09: 606 August 2015, No. 2015 14: 606 No. 2014 09 one No. 2014 09 December 15, 2017. Management is evaluating the impact that ASU No. 2014 09 No. 2014 09, not No. 2014 09 In February 2016, No. 2016 02: 842 which is intended to improve financial reporting about leasing transactions. This ASU will require organizations (“lessees”) that lease assets with lease terms of more than twelve December 15, 2018 No. 2016 02 $3 In March 2016, No. 2016 09: – Stock Compensation (Topic 718 December 15, 2016 No. 2016 09 not not No. 2016 09 October 1, 2017. In June 2016, 2016 13 : “Financial Instruments — Credit Losses (Topic 326 2016 13 December 15, 2019, may December 15, 2018, In August 2016, 2016 15: 230 – Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight December 15, 2017, No. 2016 15, In January 2017, No. 2017 01: 805 December 15, 2017, 2017 01 not No. 2017 01 not In January 2017, 2017 04: 350 second not December 15, 2019, No. 2017 04 Reclassification Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no |
Note 2 - Acquisition
Note 2 - Acquisition | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Note 2 – Acquisition As part of the Company ’s growth strategy, the Company has been 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 purchase price for Triton Miami includes the following: Upfront cash payment $ 6,500,000 Deferred guaranteed payments (a) 1,836,105 Working capital purchase adjustment 143,540 Net purchase price $ 8,479,645 (a) This amount represents the present value at the acquisition date of $2.0 three At September 30, 2017, $0.7 $1.2 The Company will also make annual payments to the Triton Miami owners, if they have not three 60% ’s annual EBITDA in excess of $1.2 Under the acquisition method of accounting, the total purchase price is allocated to Triton Miami’s tangible and intangible assets acquired and liabilities assumed based on their fair values as of October 14, 2016, The following summarizes the final 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 2,060 Total assets acquired 9,236 Liabilities assumed: Accounts payable 584 Accrued expenses 172 Total liabilities assumed 756 Net purchase price $ 8,480 The acquired identifiable 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 years ended September 30, 2017 September 30, 2016, nies had been combined as of October 1, 2015. September 30, 2017 September 30, 2016 $21 $0.5 $19 $0.6 $7 $0.2 September 30, 2017 September 30, 2016, $4.0 October 1, 2015. $0.1 September 30, 2016. September 30, 2016 $0.2 not October 1, 2015, Years Ended September 30, 2017 201 6 (in thousands, except per share amounts) Sales $ 49,152 $ 44,986 Income from operations $ 377 $ 151 Net income $ 36 $ 7 Earnings per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 3 – Inventories Inventories at September 30, 2017 2016 September 30, 201 7 September 30, 201 6 New: Cable TV $ 14,014,188 $ 15,087,495 Telco 554,034 – Refurbished and used: Cable TV 3,197,426 3,383,079 Telco 7,507,460 5,625,213 Allowance for excess and obsolete inventory: Cable TV (2,300,000 ) (2,219,586 ) Telco (639,288 ) (351,282 ) Total inventories $ 22,333,820 $ 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 The Company regularly reviews the Cable TV and Telco 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 $ 0.6 September 30, 2017, 2016 2015. For the Telco segment, any obsolete and excess telecommunications inventory is generally processed through its recycling program when it is identified. However, in fiscal years ended September 30, 2017 September 30, 2016, not not not $0.3 $0.4 September 30, 2017 2016, September 30, 2015, not September 30, 2017 September 30, 2016 $ 0.1 |
Note 4 - Investment In and Loan
Note 4 - Investment In and Loans to Equity Method Investee | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 4 – Inve stment In and Loans to Equity Method Investee The Company entered into a joint venture, YKTG Solutions, LLC (“ YKTG Solutions”), in March 2016, 13 51% 49% In 2017, d would result in a negative cash flow for the joint venture. Accordingly, YKTG Solutions elected to suspend the acceptance of any further work under the decommission project unless and until the U.S. wireless provider resumes its previous process of assigning the sites under the decommission project. The Company ’s carrying value in YKTG Solutions was $0.1 September 30, 2017 September 30, 2017, $2.4 YKTG Solutions entered into a $2.0 are guarantors under the surety payment bond. Therefore, the Company’s total estimate of maximum exposure to loss as a result of its relationship with YKTG Solutions was the $0.1 $2.0 To date, this joint venture has incurred net operating losses, and, as of September 30, 2017, Since YKTG Solutions has suspended any additional work for the U.S. wireless provider and YKTG Solutions will not $0.1 $0.1 |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 5 – Intangible Assets The intangible assets with their associated accumulated amortization amounts at September 30, 2017 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (1,898,691 ) $ 6,253,309 Technology – 7 years 1,303,000 (667,009 ) 635,991 Trade name – 10 years 2,119,000 (542,480 ) 1,576,520 Non-compete agreements – 3 years 374,000 (292,333 ) 81,667 Total intangible assets $ 11,948,000 $ (3,400,513 ) $ 8,547,487 The intangible assets with their associated accumulated amortization amounts at 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 Amortiza tion expense was $1.3 $0.8 $0.8 September 30, 2017, 2016 2015, The estimated aggregate amortization expense for each of the next five 201 8 $ 1,253,243 201 9 1,253,243 2020 1,214,910 2021 1,104,663 2022 1,027,100 Thereafter 2,694,328 Total $ 8,547,487 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 – Income Taxes The provision (benefit) for income taxes for the years ended September 30, 2017, 2016 2015 2017 2016 2015 C urrent $ 174,000 $ 22,000 $ 1,114,000 D eferred (320,000 ) 157,000 (341,000 ) Total provision (benefit) for income taxes $ (146,000 ) $ 179,000 $ 773,000 The following table summarizes the differences between the U.S. federal statutory rate and the Company ’s effective tax rate for continuing operations financial statement purposes for the years ended September 30, 2017, 2016 2015: 2017 2016 2015 Statutory tax rate 34.0 % 34.0 % 34.0 % State income taxes, net of U.S. federal tax benefit 43.7 % (4.4% ) 2.1 % Return to accrual adjustment (9.8% ) 1.5 % (3.0% ) Tax credits 8.2 % − (0.9% ) Charges without tax benefit (16.2% ) 6.8 % 1.6 % Other exclusions (0.1% ) (0.1% ) 0.2 % Company ’s effective tax rate 59.8 % 37.8 % 34.0 % The charges without tax b enefit rate for fiscal year 2017 The tax effects of temporary differences related to deferred taxes at September 30, 2017 2016 2017 20 16 Deferred tax assets: Net operating loss carryforwards $ 29,000 $ 281,000 Accounts receivable 58,000 97,000 Inventory 1,432,000 1,269,000 Intangibles 560,000 351,000 Accrued expenses 175,000 169,000 Stock options 246,000 226,000 Investment in equity method investee 174,000 – Other 179,000 76,000 2,853,000 2,469,000 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 1,156,000 926,000 Investment in equity method investee – 143,000 Other 44,000 67,000 Net deferred tax asset $ 1,653,000 $ 1,333,000 T he Company’s net operating loss carryforward totals approximately $0.1 September 30, 2017. 2036. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. The Company has concluded, based on its historical earnings and projected future earnings, that it will be able to realize the full effect of the deferred tax assets and no Based upon a review of its income tax positions, the Company believes that its positions would be sustained upon an examination by the Internal Revenue Service and does not no no orities for tax years before 2014. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 7 – Accrued Expenses Accrue d expenses at September 30, 2017 2016 2017 2016 Employee costs $ 884,390 $ 1,123,940 Triton Datacom earn-out 222,611 − Taxes other than income tax 163,016 120,455 Interest 22,121 13,836 Other, net 114,584 66,421 $ 1,406,722 $ 1,324,652 |
Note 8 - Line of Credit and Not
Note 8 - Line of Credit and Notes Payable | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 – Line of Credit and Notes Payable Notes Payable The Company has an Amended and Restated Revolving Credit and Term Loan Agreement (“ Credit and Term Loan Agreement”) with its primary financial lender. Revolving credit and term loans created under the Credit and Term Loan Agreement are collateralized by inventory, accounts receivable, equipment and fixtures, general intangibles and a mortgage on certain property. Among other financial covenants, the Credit and Term Loan Agreement provides that the Company maintain a fixed charge coverage ratio (net cash flow to total fixed charges) of not 1.25 1.0 not 2.50 1.0. not September 30, 2017. December 1, 2017, September 30, 2017, second December 2017 December 31, 2017. At September 30, 2017, three first $0.8 September 30, 2017 November 30, 2021, $15,334 30 1.4% 2.63% September 30, 2017) The second $2.7 September 30, 2017 March 4, 2019, $68,505, It is a five seven 4.07%. September 30, 2017, second $25 second September 30, 2017 In connection with the acquisition of Triton Miami, the Company entered into a third under the Credit and Term Loan Agreement in the amount of $4.0 $2.8 September 30, 2017 October 14, 2019, $118,809. 4.40%. The aggregate minimum maturities of notes payable for each of the next five 201 8 $ 4,189,605 201 9 1,565,476 2020 298,880 2021 184,008 2022 45,882 Thereafter – Total $ 6,283,851 Line of Credit The Company has a $7.0 Term Loan Agreement. On March 31, 2017, March 30, 2018, September 30, 2017, no 30 2.75% 3.99% September 30, 2017), March 30, 2018. $7.0 80% 50% $7.0 September 30, 2017. Fair Value of Debt The carrying value of the Company ’s variable-rate term loan approximates its fair value since the interest rate fluctuates periodically based on a floating interest rate. The Company has determined the fair value of its fixed-rate term loan utilizing the Level 2 second $2.7 September 30, 2017. third $2.8 September 30, 2017. |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 – Stock-B ased Compensation Plan Information T he 2015 may not At September 30, 2017 , 1,100,415 212,451 Stock Options All share-based payments to employees, including grants of employee stock options, are recognized in the consolidated financial statements based on their grant date fair value over the requisite service period. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the Consolidated Statements of Operations. Stock options are valued at the date of the award, which does not three four five ten ten A summary of the status of the Company's sto ck options at September 30, 2017 Options Weighted Average Exercise A ggregate Intrinsic Value Outstanding at September 30, 2016 570,000 $ 2.73 Granted 140,000 $ 1.80 Exercised − $ – $ 0 Expired (10,000 ) $ 3.45 Forfeited – $ – Outstanding at September 30, 2017 700,000 $ 2.54 $ 0 Exercisable at September 30, 2017 526,667 $ 2.78 $ 0 There were no under the Plan for the years ended September 30, 2017, 2016 2015. Information about the Company ’s outstanding and exercisable stock options at September 30, 2017 Exercise Price Stock Options Outstanding Exercisable Stock Options Outstanding Remaining Contractual Life (in years) $1.790 50,000 − 9.6 $1.810 90,000 − 9.4 $1.750 50,000 16,667 8.6 $3.210 200,000 200,000 6.5 $2.450 250,000 250,000 4.5 $3.001 60,000 60,000 0.9 700,000 526,667 The Company granted nonqualified stock options of 140,000 50,000 September 30, 2017 September 30, 2016, No 2015. zero not zero The estimated fair value at date of grant for stock options utilizing the Black-Scholes option valuation model and the assumpti ons that were used in the Black-Scholes option valuation model for the fiscal years 2017 2016 20 17 20 16 Estimated fair value of options at grant date $ 96,690 $ 34,350 Black-Scholes model assumptions: Average expected life (years) 6 6 Average expected volatile factor 35 % 38 % Average risk-free interest rate 2.4 % 1.75 % Average expected dividend yield – – Compensation expense related to stock options recorded for th e years ended September 30, 2017, 2016 2015 2017 2016 2015 Fiscal year 2012 grant $ 5,359 $ 17,417 $ 33,044 Fiscal year 2014 grant 13,575 47,522 108,624 Fiscal year 2016 grant 16,221 8,745 – Fiscal year 2017 grant 31,088 – – Total compensation expense $ 66,243 $ 73,684 $ 141,668 The Company records compensation expense over the vesting term of the related options. At September 30, 2017, not $74,985. Restricted stock The Company granted restricted stock in March 2017, 2016 2015 58,009, 62,874 31,915 12 March 2015, 6,383 2015 $105,000, $105,000 $60,000 2017, 2016 2015 12 December 2015 October 2015 two 3,333 4,465 first March 2016. December 2015 October 2015 $7,500 $10,000, The Company granted restricted stock in April 2014 23,676 7,892 three April 2015. $76,000 one two three Compensation expense related to restricted stock recorded for th e years ended September 30, 2017, 2016 2015 2017 2016 2015 Fiscal year 2014 grants $ 4,222 $ 14,779 $ 58,778 Fiscal year 2015 grants – 25,000 39,167 Fiscal year 2016 grants 43,750 78,750 − Fiscal year 2017 grant 61,250 − – $ 109,222 $ 118,529 $ 97,945 |
Note 10 - Retirement Plan
Note 10 - Retirement Plan | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 10 – Retirement Plan The Company sponsors a 401 21 one Costs recognized under the 401 $ 0.3 September 30, 2017, 2016 2015. |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 11 – Earnings per Share Basic and diluted earnings per share for the years ended September 30 , 2017, 2016 2015 2017 2016 2015 Net income (loss) attributable to shareholders $ (98,116 ) $ 294,163 $ 1,497,900 Basic weighted average shares 10,201,825 10,141,234 10,088,803 Effect of dilutive securities: Stock options – 4,062 – Diluted weighted average shares 10,201,825 10,145,296 10,088,803 Earnings (loss) per common share: Basic $ (0.01 ) $ 0.03 $ 0.15 Diluted $ (0.01 ) $ 0.03 $ 0.15 The table below includes information related to stock options that were outstanding at the end of each respective year but have been excluded from the computation of weighted-average stock options for dilutive securities due to the option exercise price exceeding the average market price per share of our common stock for the fiscal year, as their effect would be anti-dilutive. 2017 2016 2015 Stock options excluded 700,000 520,000 535,000 Weighted average exercise price of stock options $ 2.54 $ 2.83 $ 2.88 Average market price of common stock $ 1.70 $ 1.90 $ 2.38 |
Note 12 - Related Parties
Note 12 - Related Parties | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | N ote 12 – Related Parties The Company leases three facilities in Florida from a company owned by two $0.1 September 30, 2017. three December 31, 2019. David E. Chymiak and Kenneth A. Chymiak beneficially owned 26% 19%, September 30, 2017 . |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 13 – Commitments and Contingencies The Company leases and rents various office and warehouse properties in Florida, Georgia, Maryland, North Carolina, Pennsylvania, and Tennessee. The terms on its operating leases vary and contain renewal options or are rented on a month-to-month basis. Rental payments associated with leased properties totaled $0.8 $0.7 $0.6 September 30, 2017, 2016 2015, five 201 8 $ 758,662 201 9 704,380 2020 592,268 2021 568,250 2022 582,456 Thereafter 696,926 Total $ 3,902,942 |
Note 14 - Segment Reporting
Note 14 - Segment Reporting | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 14 – Segment Reporting The Company has two 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 repairs cable television equipment for various cable companies. Telecommunications (“ Telco”) The Company ’s Telco segment sells new and used telecommunications networking equipment, including both central office and customer premise equipment, to its customer base of telecommunications providers, enterprise customers and resellers located primarily in North America. 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 receiv able, inventory, property and equipment, goodwill and intangible assets. Years Ended September 30, 20 17 September 30, 20 16 September 30, 20 15 Sales Cable TV $ 22,806,175 $ 22,996,998 $ 25,396,779 Telco 25,994,521 15,800,424 18,835,116 Intersegment (86,950 ) (134,158 ) (498,275 ) Total sales $ 48,713,746 $ 38,663,264 $ 43,733,620 Gross profit Cable TV $ 7,738,355 $ 7,753,735 $ 8,025,651 Telco 7,072,238 4,687,148 7,273,238 Total gross profit $ 14,810,593 $ 12,440,883 $ 15,298,889 Operating income (loss) Cable TV $ 1,834,484 $ 1,478,676 $ 2,210,414 Telco (1,688,878 ) (1,134,815 ) 365,796 Total operating income $ 145,606 $ 343,861 $ 2,576,210 Segment assets Cable TV $ 24,116,395 $ 25,201,697 $ 26,494,430 Telco 24,135,091 15,122,911 17,094,713 Non-allocated 6,596,119 9,943,551 8,097,913 Total assets $ 54,847,605 $ 50,268,159 $ 51,687,056 |
Note 15 - Quarterly Results of
Note 15 - Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | Note 15 – Quarterly Results of Operations (Unaudited) The following is a summary of the quarterly results of operations for the years en ded September 30, 2017, 2016 2015: F irst Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended 2017 Sales $ 12,095,826 $ 11,294,756 $ 12,989,990 $ 12,333,174 Gross profit $ 4,023,629 $ 3,764,429 $ 3,755,951 $ 3,266,584 Net i ncome (loss) $ 217,161 $ 10,671 $ (66,863 ) $ (259,085 ) Basic earnings (loss) per ommon share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Diluted earnings (loss) per $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Fiscal year en ded 2016 Sales $ 8,249,668 $ 10,587,187 $ 10,060,242 $ 9,766,167 Gross profit $ 2,765,380 $ 3,584,612 $ 3,466,151 $ 2,624,740 Net i ncome (loss) $ 23,994 $ 145,630 $ 316,086 $ (191,547 ) Basic earnings (loss) per ommon share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Diluted earnings (loss) per $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Fiscal year ended 2015 Sales $ 10,837,158 $ 11,366,539 $ 11,902,391 $ 9,627,532 Gross profit $ 3,831,803 $ 4,243,512 $ 4,144,607 $ 3,078,967 Net i ncome $ 415,923 $ 234,255 $ 637,134 $ 210,588 Basic earnings per c ommon share $ 0.04 $ 0.02 $ 0.06 $ 0.02 Diluted earnings per common share $ 0.04 $ 0.02 $ 0.06 $ 0.02 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Organization and basis of presentation The consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”) as well as an equity-method investment. Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Cable Television (“Cable TV”) and Telecommunications (“Telco”). |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three |
Receivables, Policy [Policy Text Block] | Accounts receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not |
Inventory, Policy [Policy Text Block] | Inventor ies Inventor ies consist of new, refurbished and used electronic components for the Cable TV segment and new, refurbished and used telecommunications equipment for the Telco segment. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the weighted-average method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For both the Cable TV and Telco segments, the Company records an inventory reserve provision to reflect inventory at its estimated net realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Property and equipment consists of software, office equipment, warehouse and service equipment, and buildings with estimated useful lives generally of 3 5 10 40 $ 0.4 September 30, 2017, 2016 2015. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of the purchase price of acquisitions over the acquisition date fair value of the net identifiable tangible and intangible assets acquired. In accordance with current accounting guidance, goodwill is not fourth The goodwill analysis is a two first September 30, 2017 2016, not |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible a ssets Intangible assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 10 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of l ong- l ived a ssets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset ’s carrying amount may not 360 10 15, 360 10 15 not |
Income Tax, Policy [Policy Text Block] | Income taxes The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not not” |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition The Company recognizes revenue for product sales when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable and the collection of the related receivable is probable, which is generally at the time of shipment. The stated shipping terms are generally FOB shipping point per the Company's sales agreements with its customers. Accruals are established for expected returns based on historical activity. Revenue for repair services is recognized when the repair is completed and the product is shipped back to the customer. Revenue for recycle services is recognized when title transfers, the risks and rewards of ownership have been transferred to the customer, the fee is fixed or determinable and the collection of the related receivable is probable, which is generally upon acceptance of the shipment at the recycler’s location. |
Shipping and Handling Cost, Policy [Policy Text Block] | Freight Amounts billed to customers for shipping and handling represent revenues earned and are included in sales income in the accompanying consolidated statements of operations. Actual costs for shipping and handling of these sales are included in cost of sales. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs Advertising costs are expensed as incurred. Advertising expense was $0.5 $0.2 $0.1 September 30, 2017, 2016 2015, |
Use of Estimates, Policy [Policy Text Block] | Management estimates The preparation of financial statements in conformity with U nited States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the cable or telecommunications industries could have a significant impact on the value of the Company's inventory and operating results. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of credit risk The Company holds cash with one , which at times exceeds FDIC insured limits. Historically, the Company has not Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers but does not no 2017, 2016 2015 10% $4.3 $3.0 $3.7 September 30, 2017, 2016 2015, 2017, 24% 16% not 10% one |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Employee stock-based awards S hare-based payments to employees, including grants of employee stock options, are recognized in the consolidated financial statements based on their grant date fair value over the requisite service period. The Company determines the fair value of the options issued, using the Black-Scholes valuation model, and amortizes the calculated value over the vesting term of the stock options. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of operations. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share Basic earnings per share is computed by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the year. Dilutive earnings per share include any dilutive effect of stock options and restricted stock. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. Financial Accounting Standards Board (“ FASB”) ASC 820, Fair Value Measurements and Disclosures, three ● 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 ● Level 3 – Inputs that are not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent ly i ssued a ccounting s tandards In May 2014, No. 2014 09: 606 August 2015, No. 2015 14: 606 No. 2014 09 one No. 2014 09 December 15, 2017. Management is evaluating the impact that ASU No. 2014 09 No. 2014 09, not No. 2014 09 In February 2016, No. 2016 02: 842 which is intended to improve financial reporting about leasing transactions. This ASU will require organizations (“lessees”) that lease assets with lease terms of more than twelve December 15, 2018 No. 2016 02 $3 In March 2016, No. 2016 09: – Stock Compensation (Topic 718 December 15, 2016 No. 2016 09 not not No. 2016 09 October 1, 2017. In June 2016, 2016 13 : “Financial Instruments — Credit Losses (Topic 326 2016 13 December 15, 2019, may December 15, 2018, In August 2016, 2016 15: 230 – Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight December 15, 2017, No. 2016 15, In January 2017, No. 2017 01: 805 December 15, 2017, 2017 01 not No. 2017 01 not In January 2017, 2017 04: 350 second not December 15, 2019, No. 2017 04 |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no |
Note 2 - Acquisition (Tables)
Note 2 - Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Upfront cash payment $ 6,500,000 Deferred guaranteed payments (a) 1,836,105 Working capital purchase adjustment 143,540 Net purchase price $ 8,479,645 |
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 2,060 Total assets acquired 9,236 Liabilities assumed: Accounts payable 584 Accrued expenses 172 Total liabilities assumed 756 Net purchase price $ 8,480 |
Business Acquisition, Pro Forma Information [Table Text Block] | Years Ended September 30, 2017 201 6 (in thousands, except per share amounts) Sales $ 49,152 $ 44,986 Income from operations $ 377 $ 151 Net income $ 36 $ 7 Earnings per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 201 7 September 30, 201 6 New: Cable TV $ 14,014,188 $ 15,087,495 Telco 554,034 – Refurbished and used: Cable TV 3,197,426 3,383,079 Telco 7,507,460 5,625,213 Allowance for excess and obsolete inventory: Cable TV (2,300,000 ) (2,219,586 ) Telco (639,288 ) (351,282 ) Total inventories $ 22,333,820 $ 21,524,919 |
Note 5 - Intangible Assets (Tab
Note 5 - Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (1,898,691 ) $ 6,253,309 Technology – 7 years 1,303,000 (667,009 ) 635,991 Trade name – 10 years 2,119,000 (542,480 ) 1,576,520 Non-compete agreements – 3 years 374,000 (292,333 ) 81,667 Total intangible assets $ 11,948,000 $ (3,400,513 ) $ 8,547,487 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 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 201 8 $ 1,253,243 201 9 1,253,243 2020 1,214,910 2021 1,104,663 2022 1,027,100 Thereafter 2,694,328 Total $ 8,547,487 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2017 2016 2015 C urrent $ 174,000 $ 22,000 $ 1,114,000 D eferred (320,000 ) 157,000 (341,000 ) Total provision (benefit) for income taxes $ (146,000 ) $ 179,000 $ 773,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2017 2016 2015 Statutory tax rate 34.0 % 34.0 % 34.0 % State income taxes, net of U.S. federal tax benefit 43.7 % (4.4% ) 2.1 % Return to accrual adjustment (9.8% ) 1.5 % (3.0% ) Tax credits 8.2 % − (0.9% ) Charges without tax benefit (16.2% ) 6.8 % 1.6 % Other exclusions (0.1% ) (0.1% ) 0.2 % Company ’s effective tax rate 59.8 % 37.8 % 34.0 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2017 20 16 Deferred tax assets: Net operating loss carryforwards $ 29,000 $ 281,000 Accounts receivable 58,000 97,000 Inventory 1,432,000 1,269,000 Intangibles 560,000 351,000 Accrued expenses 175,000 169,000 Stock options 246,000 226,000 Investment in equity method investee 174,000 – Other 179,000 76,000 2,853,000 2,469,000 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 1,156,000 926,000 Investment in equity method investee – 143,000 Other 44,000 67,000 Net deferred tax asset $ 1,653,000 $ 1,333,000 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2017 2016 Employee costs $ 884,390 $ 1,123,940 Triton Datacom earn-out 222,611 − Taxes other than income tax 163,016 120,455 Interest 22,121 13,836 Other, net 114,584 66,421 $ 1,406,722 $ 1,324,652 |
Note 8 - Line of Credit and N28
Note 8 - Line of Credit and Notes Payable (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 201 8 $ 4,189,605 201 9 1,565,476 2020 298,880 2021 184,008 2022 45,882 Thereafter – Total $ 6,283,851 |
Note 9 - Stock-based Compensa29
Note 9 - Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Exercise A ggregate Intrinsic Value Outstanding at September 30, 2016 570,000 $ 2.73 Granted 140,000 $ 1.80 Exercised − $ – $ 0 Expired (10,000 ) $ 3.45 Forfeited – $ – Outstanding at September 30, 2017 700,000 $ 2.54 $ 0 Exercisable at September 30, 2017 526,667 $ 2.78 $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Exercise Price Stock Options Outstanding Exercisable Stock Options Outstanding Remaining Contractual Life (in years) $1.790 50,000 − 9.6 $1.810 90,000 − 9.4 $1.750 50,000 16,667 8.6 $3.210 200,000 200,000 6.5 $2.450 250,000 250,000 4.5 $3.001 60,000 60,000 0.9 700,000 526,667 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 20 17 20 16 Estimated fair value of options at grant date $ 96,690 $ 34,350 Black-Scholes model assumptions: Average expected life (years) 6 6 Average expected volatile factor 35 % 38 % Average risk-free interest rate 2.4 % 1.75 % Average expected dividend yield – – |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | 2017 2016 2015 Fiscal year 2012 grant $ 5,359 $ 17,417 $ 33,044 Fiscal year 2014 grant 13,575 47,522 108,624 Fiscal year 2016 grant 16,221 8,745 – Fiscal year 2017 grant 31,088 – – Total compensation expense $ 66,243 $ 73,684 $ 141,668 |
Restricted Stock [Member] | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | 2017 2016 2015 Fiscal year 2014 grants $ 4,222 $ 14,779 $ 58,778 Fiscal year 2015 grants – 25,000 39,167 Fiscal year 2016 grants 43,750 78,750 − Fiscal year 2017 grant 61,250 − – $ 109,222 $ 118,529 $ 97,945 |
Note 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2017 2016 2015 Net income (loss) attributable to shareholders $ (98,116 ) $ 294,163 $ 1,497,900 Basic weighted average shares 10,201,825 10,141,234 10,088,803 Effect of dilutive securities: Stock options – 4,062 – Diluted weighted average shares 10,201,825 10,145,296 10,088,803 Earnings (loss) per common share: Basic $ (0.01 ) $ 0.03 $ 0.15 Diluted $ (0.01 ) $ 0.03 $ 0.15 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | 2017 2016 2015 Stock options excluded 700,000 520,000 535,000 Weighted average exercise price of stock options $ 2.54 $ 2.83 $ 2.88 Average market price of common stock $ 1.70 $ 1.90 $ 2.38 |
Note 13 - Commitments and Con31
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 201 8 $ 758,662 201 9 704,380 2020 592,268 2021 568,250 2022 582,456 Thereafter 696,926 Total $ 3,902,942 |
Note 14 - Segment Reporting (Ta
Note 14 - Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended September 30, 20 17 September 30, 20 16 September 30, 20 15 Sales Cable TV $ 22,806,175 $ 22,996,998 $ 25,396,779 Telco 25,994,521 15,800,424 18,835,116 Intersegment (86,950 ) (134,158 ) (498,275 ) Total sales $ 48,713,746 $ 38,663,264 $ 43,733,620 Gross profit Cable TV $ 7,738,355 $ 7,753,735 $ 8,025,651 Telco 7,072,238 4,687,148 7,273,238 Total gross profit $ 14,810,593 $ 12,440,883 $ 15,298,889 Operating income (loss) Cable TV $ 1,834,484 $ 1,478,676 $ 2,210,414 Telco (1,688,878 ) (1,134,815 ) 365,796 Total operating income $ 145,606 $ 343,861 $ 2,576,210 Segment assets Cable TV $ 24,116,395 $ 25,201,697 $ 26,494,430 Telco 24,135,091 15,122,911 17,094,713 Non-allocated 6,596,119 9,943,551 8,097,913 Total assets $ 54,847,605 $ 50,268,159 $ 51,687,056 |
Note 15 - Quarterly Results o33
Note 15 - Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | F irst Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended 2017 Sales $ 12,095,826 $ 11,294,756 $ 12,989,990 $ 12,333,174 Gross profit $ 4,023,629 $ 3,764,429 $ 3,755,951 $ 3,266,584 Net i ncome (loss) $ 217,161 $ 10,671 $ (66,863 ) $ (259,085 ) Basic earnings (loss) per ommon share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Diluted earnings (loss) per $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Fiscal year en ded 2016 Sales $ 8,249,668 $ 10,587,187 $ 10,060,242 $ 9,766,167 Gross profit $ 2,765,380 $ 3,584,612 $ 3,466,151 $ 2,624,740 Net i ncome (loss) $ 23,994 $ 145,630 $ 316,086 $ (191,547 ) Basic earnings (loss) per ommon share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Diluted earnings (loss) per $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Fiscal year ended 2015 Sales $ 10,837,158 $ 11,366,539 $ 11,902,391 $ 9,627,532 Gross profit $ 3,831,803 $ 4,243,512 $ 4,144,607 $ 3,078,967 Net i ncome $ 415,923 $ 234,255 $ 637,134 $ 210,588 Basic earnings per c ommon share $ 0.04 $ 0.02 $ 0.06 $ 0.02 Diluted earnings per common share $ 0.04 $ 0.02 $ 0.06 $ 0.02 |
Note 1 - Summary of Significa34
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 01, 2018 | |
Depreciation, Depletion and Amortization | $ 0.4 | $ 0.4 | $ 0.4 | |
Advertising Expense | 0.5 | 0.2 | 0.1 | |
Accounting Standards Update 2016-02 [Member] | Scenario, Forecast [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 3 | |||
Non-US Based Customer [Member] | ||||
Revenues | $ 4.3 | $ 3 | $ 3.7 | |
Arris Solutions, Inc [Member] | Supplier Concentration Risk [Member] | Inventory Purchased [Member] | ||||
Concentration Risk, Percentage | 24.00% | |||
Cisco [Member] | Supplier Concentration Risk [Member] | Inventory Purchased [Member] | ||||
Concentration Risk, Percentage | 16.00% | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Software and Software Development Costs [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Office Equipment [Member] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Warehouse and Service Equipment [Member] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Building [Member] | ||||
Property, Plant and Equipment, Useful Life | 40 years |
Note 2 - Acquisition (Details T
Note 2 - Acquisition (Details Textual) - USD ($) | Oct. 14, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1,836,105 | |||
Amortization of Intangible Assets | 1,300,000 | 800,000 | 800,000 | |
Interest Expense | 389,722 | 236,024 | $ 305,310 | |
Term Loan 3 [Member] | ||||
Debt Instrument, Face Amount | $ 4,000,000 | |||
Triton Miami, Inc. [Member] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1,836,105 | |||
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, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,841,000 | |||
Amortization of Intangible Assets | 21,000 | 500,000 | ||
Business Combination, Contingent Consideration Arrangements Earn-out Expense | 19,000 | 600,000 | ||
Interest Expense | 7,000 | 200,000 | ||
Business Combination, Acquisition Related Costs | 200,000 | |||
Triton Miami, Inc. [Member] | Guaranteed Payments to Triton Miami Owners [Member] | ||||
Interest Expense | $ 100,000 | |||
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 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred guaranteed payments | $ 1,836,105 | |||
Triton Miami, Inc. [Member] | ||||
Upfront cash payment | $ 6,500,000 | |||
Deferred guaranteed payments | 1,836,105 | |||
Working capital purchase adjustment | 143,540 | |||
Net purchase price | $ 8,479,645 |
Note 2 - Acquisition - Fair Val
Note 2 - Acquisition - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Sep. 30, 2017 | Oct. 14, 2016 | Sep. 30, 2016 |
Assets acquired: | |||
Goodwill | $ 5,970,244 | $ 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 | 2,060,000 | ||
Total assets acquired | 9,236,000 | ||
Liabilities assumed: | |||
Accounts payable | 584,000 | ||
Accrued expenses | 172,000 | ||
Total liabilities assumed | 756,000 | ||
Net purchase price | $ 8,480,000 |
Note 2 - Acquisition - Pro Form
Note 2 - Acquisition - Pro Forma Information (Details) - Triton Miami, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | $ 49,152 | $ 44,986 |
Income from operations | 377 | 151 |
Net income | $ 36 | $ 7 |
Basic (in dollars per share) | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0 | $ 0 |
Note 3 - Inventories (Details T
Note 3 - Inventories (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Inventory Write-down | $ 901,599 | $ 951,282 | $ 600,000 |
Cable TV [Member] | |||
Inventory Write-down | 600,000 | 600,000 | $ 600,000 |
Telco [Member] | |||
Inventory Write-down | 300,000 | 400,000 | |
Inventory, Lower of Cost or Market Reserve | $ 100,000 | $ 100,000 |
Note 3 - Inventories - Schedule
Note 3 - Inventories - Schedule of Inventory (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
New: | ||
Inventory Valuation Reserve | $ (2,939,289) | $ (2,570,868) |
Total inventories | 22,333,820 | 21,524,919 |
Cable TV [Member] | ||
New: | ||
Inventory Valuation Reserve | (2,300,000) | (2,219,586) |
Cable TV [Member] | New Inventory [Member] | ||
New: | ||
Inventory Gross | 14,014,188 | 15,087,495 |
Cable TV [Member] | Refurbished and Used Inventory [Member] | ||
New: | ||
Inventory Gross | 3,197,426 | 3,383,079 |
Telco [Member] | ||
New: | ||
Inventory Valuation Reserve | (639,288) | (351,282) |
Telco [Member] | New Inventory [Member] | ||
New: | ||
Inventory Gross | 554,034 | |
Telco [Member] | Refurbished and Used Inventory [Member] | ||
New: | ||
Inventory Gross | $ 7,507,460 | $ 5,625,213 |
Note 4 - Investment In and Lo41
Note 4 - Investment In and Loans to Equity Method Investee (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 98,704 | $ 2,588,624 | |
Allowance for Doubtful Accounts Receivable, Current | 150,000 | $ 250,000 | |
YKTG Solutions, LLC [Member] | Loans Receivable [Member] | |||
Allowance for Doubtful Accounts Receivable, Current | 100,000 | ||
YKTG Solutions, LLC [Member] | |||
Number of States in which Entity Operates | 13 | ||
Equity Method Investment, Ownership Percentage | 49.00% | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 100,000 | ||
Proceeds from Collection of Advance to Affiliate | 2,400,000 | ||
Equity Investment, Maximum Loss Exposure, Amount | 100,000 | ||
YKTG Solutions, LLC [Member] | Surety Bond [Member] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2,000,000 | ||
YKTG Solutions, LLC [Member] | YKTG, LLC [Member] | |||
Equity Method Investment, Ownership Percentage | 51.00% |
Note 5 - Intangible Assets (Det
Note 5 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amortization of Intangible Assets | $ 1.3 | $ 0.8 | $ 0.8 |
Note 5 - Intangible Assets - Sc
Note 5 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Gross | $ 11,948,000 | $ 7,107,000 |
Accumulated Amortization | (3,400,513) | (2,133,331) |
Net | 8,547,487 | 4,973,669 |
Customer Relationships [Member] | ||
Gross | 8,152,000 | 4,257,000 |
Accumulated Amortization | (1,898,691) | (1,099,721) |
Net | 6,253,309 | 3,157,279 |
Technology-Based Intangible Assets [Member] | ||
Gross | 1,303,000 | 1,303,000 |
Accumulated Amortization | (667,009) | (480,866) |
Net | 635,991 | 822,134 |
Trade Names [Member] | ||
Gross | 2,119,000 | 1,293,000 |
Accumulated Amortization | (542,480) | (334,023) |
Net | 1,576,520 | 958,977 |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 254,000 |
Accumulated Amortization | (292,333) | (218,721) |
Net | $ 81,667 | $ 35,279 |
Note 5 - Intangible Assets - 44
Note 5 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 12 Months Ended | |
Sep. 30, 2017 | 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 5 - Intangible Assets - Es
Note 5 - Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
2,018 | $ 1,253,243 | |
2,019 | 1,253,243 | |
2,020 | 1,214,910 | |
2,021 | 1,104,663 | |
2,022 | 1,027,100 | |
Thereafter | 2,694,328 | |
Total | $ 8,547,487 | $ 4,973,669 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) $ in Millions | Sep. 30, 2017USD ($) |
Operating Loss Carryforwards | $ 0.1 |
Note 6 - Income Taxes - Provisi
Note 6 - Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current | $ 174,000 | $ 22,000 | $ 1,114,000 |
Deferred | (320,000) | 157,000 | (341,000) |
Total provision (benefit) for income taxes | $ (146,000) | $ 179,000 | $ 773,000 |
Note 6 - Income Taxes - Summary
Note 6 - Income Taxes - Summary of Differences Between U.S. Federal Statutory Rate and Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statutory tax rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of U.S. federal tax benefit | 43.70% | (4.40%) | 2.10% |
Return to accrual adjustment | (9.80%) | 1.50% | (3.00%) |
Tax credits | 8.20% | (0.90%) | |
Charges without tax benefit | (16.20%) | 6.80% | 1.60% |
Other exclusions | (0.10%) | (0.10%) | 0.20% |
Company’s effective tax rate | 59.80% | 37.80% | 34.00% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Tax Assets (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 29,000 | $ 281,000 |
Accounts receivable | 58,000 | 97,000 |
Inventory | 1,432,000 | 1,269,000 |
Intangibles | 560,000 | 351,000 |
Accrued expenses | 175,000 | 169,000 |
Stock options | 246,000 | 226,000 |
Investment in equity method investee | 174,000 | |
Other | 179,000 | 76,000 |
2,853,000 | 2,469,000 | |
Deferred tax liabilities: | ||
Financial basis in excess of tax basis of certain assets | 1,156,000 | 926,000 |
Investment in equity method investee | 143,000 | |
Other | 44,000 | 67,000 |
Net deferred tax asset | $ 1,653,000 | $ 1,333,000 |
Note 7 - Accrued Expenses - Sch
Note 7 - Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Employee costs | $ 884,390 | $ 1,123,940 |
Triton Datacom earn-out | 222,611 | |
Taxes other than income tax | 163,016 | 120,455 |
Interest | 22,121 | 13,836 |
Other, net | 114,584 | 66,421 |
$ 1,406,722 | $ 1,324,652 |
Note 8 - Line of Credit and N51
Note 8 - Line of Credit and Notes Payable (Details Textual) | Oct. 14, 2016USD ($) | Dec. 13, 2017USD ($) | Sep. 30, 2017USD ($) |
Line of Credit [Member] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.99% | ||
Term Loan 1 [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.63% | ||
Term Loan 3 [Member] | |||
Debt Instrument, Face Amount | $ 4,000,000 | ||
Credit and Term Loan Agreement [Member] | |||
Fixed Charge Coverage Ratio, Minimum Requirement | 1.25 | ||
Fixed Charge Leverage Ratio, Maximum Requirement | 2.5 | ||
Number of Term Loans Outstanding | 3 | ||
Credit and Term Loan Agreement [Member] | Line of Credit [Member] | |||
Long-term Line of Credit | $ 0 | ||
Credit and Term Loan Agreement [Member] | 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 | ||
Credit and Term Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Credit and Term Loan Agreement [Member] | Term Loan 1 [Member] | |||
Loans Payable | $ 800,000 | ||
Debt Instrument, Periodic Payment, Principal | $ 15,334 | ||
Credit and Term Loan Agreement [Member] | Term Loan 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | ||
Credit and Term Loan Agreement [Member] | Term Loan 2 [Member] | |||
Loans Payable | $ 2,700,000 | ||
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% | ||
Credit and Term Loan Agreement [Member] | Term Loan 2 [Member] | Subsequent Event [Member] | |||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 25,000 | ||
Credit and Term Loan Agreement [Member] | Term Loan 3 [Member] | |||
Loans Payable | $ 2,800,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | ||
Debt Instrument, Face Amount | $ 4,000,000 | ||
Debt Instrument, Periodic Payment | $ 118,809 | ||
Term Loan 2 [Member] | |||
Debt Instrument, Fair Value Disclosure | 2,700,000 | ||
Term Loan 3 [Member] | |||
Debt Instrument, Fair Value Disclosure | $ 2,800,000 |
Note 8 - Line of Credit and N52
Note 8 - Line of Credit and Notes Payable - Aggregate Minimum Maturities of Notes Payable (Details) | Sep. 30, 2017USD ($) |
2,018 | $ 4,189,605 |
2,019 | 1,565,476 |
2,020 | 298,880 |
2,021 | 184,008 |
2,022 | 45,882 |
Thereafter | |
Total | $ 6,283,851 |
Note 9 - Stock-based Compensa53
Note 9 - Stock-based Compensation (Details Textual) - USD ($) xbrli-pure in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | Mar. 31, 2015 | Apr. 30, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 140,000 | 50,000 | 0 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 74,985 | ||||||||
Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | |||||||||
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] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||
Employees [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||
Board Of Directors [Member] | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 3,333 | 4,465 | |||||||
Fair Value Of Restricted Shares Upon Issuance | $ 7,500 | $ 10,000 | |||||||
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 | 58,009 | 62,874 | 31,915 | ||||||
Restricted Stock Holding Period | 1 year | ||||||||
Fair Value Of Restricted Shares Upon Issuance | $ 105,000 | $ 105,000 | $ 60,000 | ||||||
Director [Member] | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 6,383 | ||||||||
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] | Maximum [Member] | |||||||||
Restricted Stock Holding Period | 3 years | ||||||||
Certain Employees [Member] | Minimum [Member] | |||||||||
Restricted Stock Holding Period | 1 year | ||||||||
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 | 212,451 |
Note 9 - Stock-based Compensa54
Note 9 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Outstanding (in shares) | 570,000 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 2.73 | ||
Granted (in shares) | 140,000 | 50,000 | 0 |
Granted, weighted average exercise price (in dollars per share) | $ 1.80 | ||
Exercised (in shares) | 0 | 0 | 0 |
Exercised, weighted average exercise price (in dollars per share) | |||
Exercised, aggregate intrinsic value | $ 0 | ||
Expired (in shares) | (10,000) | ||
Expired, weighted average exercise price (in dollars per share) | $ 3.45 | ||
Forfeited (in shares) | |||
Forfeited, weighted average exercise price (in dollars per share) | |||
Outstanding (in shares) | 700,000 | 570,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.54 | $ 2.73 | |
Outstanding, aggregate intrinsic value | $ 0 | ||
Exercisable (in shares) | 526,667 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 2.78 | ||
Exercisable, aggregate intrinsic value | $ 0 |
Note 9 - Stock-based Compensa55
Note 9 - Stock-based Compensation and Preferred Stock - Outstanding and Exercisable Stock Options (Details) | Sep. 30, 2017$ / sharesshares |
Stock Options Outstanding (in shares) | 526,667 |
Exercisable Stock Options Outstanding (in shares) | |
Exercise Price Range 1 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 50,000 |
Stock Options Outstanding (in shares) | |
Exercisable Stock Options Outstanding (in shares) | 9.6 |
Exercise Price Range 2 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 90,000 |
Stock Options Outstanding (in shares) | |
Exercisable Stock Options Outstanding (in shares) | 9.4 |
Exercise Price Range 3 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 50,000 |
Stock Options Outstanding (in shares) | 16,667 |
Exercisable Stock Options Outstanding (in shares) | 8.6 |
Exercise Price Range 4 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 200,000 |
Stock Options Outstanding (in shares) | 200,000 |
Exercisable Stock Options Outstanding (in shares) | 6.5 |
Exercise Price Range 5 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 250,000 |
Stock Options Outstanding (in shares) | 250,000 |
Exercisable Stock Options Outstanding (in shares) | 4.5 |
Exercise Price Range 6 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 60,000 |
Stock Options Outstanding (in shares) | 60,000 |
Exercisable Stock Options Outstanding (in shares) | 0.9 |
Note 9 - Stock-based Compensa56
Note 9 - Stock-based Compensation - Estimated Fair Value of Stock Options (Details) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Estimated fair value of options at grant date | $ 96,690 | $ 34,350 |
Black-Scholes model assumptions: | ||
Average expected life (years) (Year) | 6 years | 6 years |
Average expected volatile factor | 35.00% | 38.00% |
Average risk-free interest rate | 2.40% | 1.75% |
Average expected dividend yield |
Note 9 - Stock-based Compensa57
Note 9 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation expense | $ 66,243 | $ 73,684 | $ 141,668 |
Fiscal Year 2012 [Member] | |||
Compensation expense | 5,359 | 17,417 | 33,044 |
Fiscal Year 2014 [Member] | |||
Compensation expense | 13,575 | 47,522 | 108,624 |
Fiscal Year 2016 [Member] | |||
Compensation expense | 16,221 | 8,745 | |
Fiscal Year 2017 [Member] | |||
Compensation expense | $ 31,088 |
Note 9 - Stock-based Compensa58
Note 9 - Stock-based Compensation and Preferred Stock - Compensation Expense Related to Restricted Stock (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restricted Stock Granted in FY 2014 [Member] | |||
Compensation expense | $ 4,222 | $ 14,779 | $ 58,778 |
Restricted Stock Granted in FY 2015 [Member] | |||
Compensation expense | 25,000 | 39,167 | |
Restricted Stock Granted in FY 2016 [Member] | |||
Compensation expense | 43,750 | 78,750 | |
Restricted Stock Granted in FY 2017 [Member] | |||
Compensation expense | $ 61,250 | ||
Restricted Stock [Member] | |||
Average expected volatile factor | 109222.00% | 118529.00% | 97945.00% |
Note 10 - Retirement Plan (Deta
Note 10 - Retirement Plan (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Years of Employee Service Required to Be Eligible for 401k Plan | 1 year | ||
Defined Contribution Plan, Cost | $ 0.3 | $ 0.3 | $ 0.3 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) attributable to common shareholders | $ (98,116) | $ 294,163 | $ 1,497,900 | ||||||||||||
Basic weighted average shares (in shares) | 10,201,825 | 10,141,234 | 10,088,803 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options (in shares) | 4,062 | ||||||||||||||
Diluted weighted average shares (in shares) | 10,201,825 | 10,145,296 | 10,088,803 | ||||||||||||
Earnings (loss) per common share: | |||||||||||||||
Basic (in dollars per share) | $ (0.03) | $ (0.01) | $ 0 | $ 0.02 | $ (0.02) | $ 0.03 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.02 | $ 0.04 | $ (0.01) | $ 0.03 | $ 0.15 |
Diluted (in dollars per share) | $ (0.03) | $ (0.01) | $ 0 | $ 0.02 | $ (0.02) | $ 0.03 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.02 | $ 0.04 | $ (0.01) | $ 0.03 | $ 0.15 |
Note 11 - Earnings Per Share 61
Note 11 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock options excluded (in shares) | 700,000 | 520,000 | 535,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 2.54 | $ 2.83 | $ 2.88 |
Average market price of common stock (in dollars per share) | $ 1.70 | $ 1.90 | $ 2.38 |
Note 12 - Related Parties (Deta
Note 12 - Related Parties (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Leases, Rent Expense | $ 0.8 | $ 0.7 | $ 0.6 |
Two Employees [Member] | |||
Operating Leases, Rent Expense | $ 0.1 | ||
David E. Chhymiak [Member] | |||
Percentage of Outstanding Common Stock Owned by a Related Party | 26.00% | ||
Kenneth A. Chymiak [Member] | |||
Percentage of Outstanding Common Stock Owned by a Related Party | 19.00% |
Note 13 - Commitments and Con63
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Leases, Rent Expense | $ 0.8 | $ 0.7 | $ 0.6 |
Note 13 - Commitments and Con64
Note 13 - Commitments and Contingencies - Minimum Annual Future Obligations for Operating Leases (Details) | Sep. 30, 2017USD ($) |
2,018 | $ 758,662 |
2,019 | 704,380 |
2,020 | 592,268 |
2,021 | 568,250 |
2,022 | 582,456 |
Thereafter | 696,926 |
Total | $ 3,902,942 |
Note 14 - Segment Reporting (De
Note 14 - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 30, 2017 | |
Number of Reportable Segments | 2 |
Note 14 - Segment Reporting - S
Note 14 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | $ 48,713,746 | $ 38,663,264 | $ 43,733,620 | ||||||||||||
Gross profit | $ 3,266,584 | $ 3,755,951 | $ 3,764,429 | $ 4,023,629 | $ 2,624,740 | $ 3,466,151 | $ 3,584,612 | $ 2,765,380 | $ 3,078,967 | $ 4,144,607 | $ 4,243,512 | $ 3,831,803 | 14,810,593 | 12,440,883 | 15,298,889 |
Operating income (loss) | 145,606 | 343,861 | 2,576,210 | ||||||||||||
Segment assets | 54,847,605 | 50,268,159 | 51,687,056 | 54,847,605 | 50,268,159 | 51,687,056 | |||||||||
Operating Segments [Member] | Cable TV [Member] | |||||||||||||||
Sales | 22,806,175 | 22,996,998 | 25,396,779 | ||||||||||||
Gross profit | 7,738,355 | 7,753,735 | 8,025,651 | ||||||||||||
Operating income (loss) | 1,834,484 | 1,478,676 | 2,210,414 | ||||||||||||
Segment assets | 24,116,395 | 25,201,697 | 26,494,430 | 24,116,395 | 25,201,697 | 26,494,430 | |||||||||
Operating Segments [Member] | Telco [Member] | |||||||||||||||
Sales | 25,994,521 | 15,800,424 | 18,835,116 | ||||||||||||
Gross profit | 7,072,238 | 4,687,148 | 7,273,238 | ||||||||||||
Operating income (loss) | (1,688,878) | (1,134,815) | 365,796 | ||||||||||||
Segment assets | 24,135,091 | 15,122,911 | 17,094,713 | 24,135,091 | 15,122,911 | 17,094,713 | |||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Sales | (86,950) | (134,158) | (498,275) | ||||||||||||
Segment Reconciling Items [Member] | |||||||||||||||
Segment assets | $ 6,596,119 | $ 9,943,551 | $ 8,097,913 | $ 6,596,119 | $ 9,943,551 | $ 8,097,913 |
Note 15 - Quarterly Results o67
Note 15 - Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | $ 12,333,174 | $ 12,989,990 | $ 11,294,756 | $ 12,095,826 | $ 9,766,167 | $ 10,060,242 | $ 10,587,187 | $ 8,249,668 | $ 9,627,532 | $ 11,902,391 | $ 11,366,539 | $ 10,837,158 | $ 48,713,746 | $ 38,663,264 | $ 43,733,620 |
Gross profit | 3,266,584 | 3,755,951 | 3,764,429 | 4,023,629 | 2,624,740 | 3,466,151 | 3,584,612 | 2,765,380 | 3,078,967 | 4,144,607 | 4,243,512 | 3,831,803 | $ 14,810,593 | $ 12,440,883 | $ 15,298,889 |
Net income (loss) | $ (259,085) | $ (66,863) | $ 10,671 | $ 217,161 | $ (191,547) | $ 316,086 | $ 145,630 | $ 23,994 | $ 210,588 | $ 637,134 | $ 234,255 | $ 415,923 | |||
Basic (in dollars per share) | $ (0.03) | $ (0.01) | $ 0 | $ 0.02 | $ (0.02) | $ 0.03 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.02 | $ 0.04 | $ (0.01) | $ 0.03 | $ 0.15 |
Diluted (in dollars per share) | $ (0.03) | $ (0.01) | $ 0 | $ 0.02 | $ (0.02) | $ 0.03 | $ 0.01 | $ 0 | $ 0.02 | $ 0.06 | $ 0.02 | $ 0.04 | $ (0.01) | $ 0.03 | $ 0.15 |