Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
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) | 10,306,145 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Cash and cash equivalents | $ 2,141,434 | $ 3,972,723 |
Accounts receivable, net of allowance for doubtful accounts of $150,000 | 5,078,143 | 5,567,005 |
Income tax receivable | 197,418 | 247,186 |
Inventories, net of allowance for excess and obsolete inventory of $3,500,000 and $2,939,289, respectively | 20,045,232 | 22,333,820 |
Prepaid expenses | 274,605 | 298,152 |
Total current assets | 27,736,832 | 32,418,886 |
Land and buildings | 7,211,190 | 7,218,678 |
Machinery and equipment | 3,792,933 | 3,995,668 |
Leasehold improvements | 200,617 | 202,017 |
Total property and equipment, at cost | 11,204,740 | 11,416,363 |
Less: Accumulated depreciation | (5,522,693) | (5,395,791) |
Net property and equipment | 5,682,047 | 6,020,572 |
Investment in and loans to equity method investee | 89,500 | 98,704 |
Intangibles, net of accumulated amortization | 7,607,554 | 8,547,487 |
Goodwill | 4,820,185 | 5,970,244 |
Deferred income taxes | 1,731,000 | 1,653,000 |
Other assets | 134,443 | 138,712 |
Total assets | 47,801,561 | 54,847,605 |
Current liabilities: | ||
Accounts payable | 2,665,043 | 3,392,725 |
Accrued expenses | 1,346,663 | 1,406,722 |
Notes payable – current portion | 2,976,044 | 4,189,605 |
Other current liabilities | 657,498 | 664,325 |
Total current liabilities | 7,645,248 | 9,653,377 |
Notes payable, less current portion | 2,094,246 | |
Other liabilities | 792,896 | 1,401,799 |
Total liabilities | 8,438,144 | 13,149,422 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized;10,806,803 and 10,726,653 shares issued, respectively; 10,306,145 and 10,225,995 shares outstanding, respectively | 108,068 | 107,267 |
Paid in capital | (4,608,875) | (4,746,466) |
Retained earnings | 44,864,238 | 47,337,396 |
Total shareholders’ equity before treasury stock | 40,363,431 | 42,698,197 |
Less: Treasury stock, 500,658 shares, at cost | (1,000,014) | (1,000,014) |
Total shareholders’ equity | 39,363,417 | 41,698,183 |
Total liabilities and shareholders’ equity | $ 47,801,561 | $ 54,847,605 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 150,000 | $ 150,000 |
Inventories, allowance for excess and obsolete inventory | $ 3,500,000 | $ 2,939,289 |
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) | 10,806,803 | 10,726,653 |
Common stock, shares outstanding (in shares) | 10,306,145 | 10,225,995 |
Treasury stock, shares (in shares) | 500,658 | 500,658 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sales | $ 12,573,899 | $ 12,989,990 | $ 36,508,192 | $ 36,380,572 |
Cost of sales | 9,490,966 | 9,234,039 | 26,699,039 | 24,836,563 |
Gross profit | 3,082,933 | 3,755,951 | 9,809,153 | 11,544,009 |
Operating, selling, general and administrative expenses | 3,641,434 | 3,757,027 | 10,717,539 | 11,031,276 |
Goodwill impairment charge | 1,150,059 | 1,150,059 | ||
Income (loss) from operations | (1,708,560) | (1,076) | (2,058,445) | 512,733 |
Other income (expense): | ||||
Loss from equity method investment | (258,558) | |||
Interest expense | (45,139) | (85,787) | (187,155) | (279,764) |
Total other expense, net | (45,139) | (85,787) | (445,713) | (279,764) |
Income (loss) before income taxes | (1,753,699) | (86,863) | (2,504,158) | 232,969 |
Provision (benefit) for income taxes | (247,000) | (20,000) | (31,000) | 72,000 |
Net income (loss) | $ (1,506,699) | $ (66,863) | $ (2,473,158) | $ 160,969 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (0.15) | $ (0.01) | $ (0.24) | $ 0.02 |
Diluted (in dollars per share) | $ (0.15) | $ (0.01) | $ (0.24) | $ 0.02 |
Shares used in per share calculation: | ||||
Basic (in shares) | 10,306,145 | 10,192,244 | 10,261,617 | 10,160,017 |
Diluted (in shares) | 10,306,145 | 10,192,244 | 10,261,617 | 10,160,582 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income (loss) | $ (2,473,158) | $ 160,969 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 289,104 | 328,673 |
Amortization | 939,933 | 953,871 |
Provision for excess and obsolete inventories | 560,711 | 433,579 |
Charge for lower of cost or net realizable value for inventories | 219,846 | 119,257 |
Loss on disposal of property and equipment | 41,354 | |
Deferred income tax benefit | (78,000) | (157,000) |
Share based compensation expense | 122,142 | 130,390 |
Goodwill impairment charge | 1,150,059 | |
Loss from equity method investment | 258,558 | |
Changes in assets and liabilities: | ||
Accounts receivable | 682,708 | (629,035) |
Income tax receivable\payable | 49,768 | 379,083 |
Inventories | 1,322,302 | (539,594) |
Prepaid expenses | 39,797 | 14,078 |
Other assets | 4,269 | (424) |
Accounts payable | (727,682) | 908,972 |
Accrued expenses | (48,678) | 93,613 |
Other liabilities | 51,270 | 88,312 |
Net cash provided by operating activities | 2,404,303 | 2,284,744 |
Investing Activities | ||
Acquisition of net operating assets | (6,643,540) | |
Guaranteed payments for acquisition of business | (667,000) | (1,000,000) |
Loan repayments from (loans to) equity method investee | (249,354) | 2,299,921 |
Purchases of property and equipment | (35,331) | (169,560) |
Disposals of property and equipment | 23,900 | 1,817 |
Net cash used in investing activities | (927,785) | (5,511,362) |
Financing Activities | ||
Net change in bank revolving line of credit | 500,000 | |
Proceeds from notes payable | 4,000,000 | |
Debt issuance costs | (16,300) | |
Payments on notes payable | (3,807,807) | (1,520,700) |
Net cash provided by (used in) financing activities | (3,307,807) | 2,463,000 |
Net decrease in cash and cash equivalents | (1,831,289) | (763,618) |
Cash and cash equivalents at beginning of period | 3,972,723 | 4,508,126 |
Cash and cash equivalents at end of period | 2,141,434 | 3,744,508 |
Supplemental cash flow information: | ||
Cash paid for interest | 173,282 | 256,882 |
Cash paid for (received from) income taxes | 5,146 | (200,000) |
Supplemental noncash investing activities: | ||
Deferred guaranteed payments for acquisition of business | (1,836,105) | |
Note receivable from disposition of net operating assets | $ 225,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Accounting Policies | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1 Basis of Presentation and Accounting Policies Basis of presentation The consolidated condensed financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company” or “we”). 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 not 10 September 30, 2017. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no 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, not 2014 09 In February 2016, 2016 02: 842 twelve December 15, 2018 2016 02 not $3 In March 2016, 2016 09: 718 December 15, 2016 2016 09 not not 2016 09 October 1, 2017. In June 2016, 2016 13: 326 2016 13 December 15, 2019, may December 15, 2018, In August 2016, 2016 15: 230 eight December 15, 2017, 2016 15, In January 2017, 2017 04: 350 second not December 15, 2019, 2017 04 June 30, 2018 June 30, 2018 ( 4 |
Note 2 - Inventories
Note 2 - Inventories | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 2 Inventories Inventories at June 30, 2018 September 30, 2017 June 30, 2018 September 30, 2017 New: Cable TV $ 12,325,608 $ 14,014,188 Telco 936,404 990,218 Refurbished and used: Cable TV 3,087,361 3,197,426 Telco 7,195,859 7,071,277 Allowance for excess and obsolete inventory: Cable TV (2,800,000 ) (2,300,000 ) Telco (700,000 ) (639,289 ) $ 20,045,232 $ 22,333,820 New inventory includes products purchased from 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 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 $0.5 nine June 30, 2018, $2.8 June 30, 2018. 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 not not $0.7 June 30, 2018. nine June 30, 2018, $0.1 nine June 30, 2018 June 30, 2017 $0.2 $0.1 |
Note 3 - Intangible Assets
Note 3 - Intangible Assets | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 3 – Intangible Assets The intangible assets with their associated accumulated amortization amounts at June 30, 2018 September 30, 2017 June 30, 2018 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (2,510,092 ) $ 5,641,908 Technology – 7 years 1,303,000 (806,616 ) 496,384 Trade name – 10 years 2,119,000 (701,405 ) 1,417,595 Non-compete agreements – 3 years 374,000 (322,333 ) 51,667 Total intangible assets $ 11,948,000 $ (4,340,446 ) $ 7,607,554 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 |
Note 4 - Goodwill
Note 4 - Goodwill | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | Note 4 The Company performs its annual analysis in the fourth third As a result of these indicators, the Company determined that it was necessary to perform the goodwill impairment analysis for the Cable TV segment. This analysis compares a calculation of the estimated fair value for the Cable TV segment utilizing a discounted cash flow analysis and compares it to the carrying value of the Cable TV segment. The Company determined that the carrying value of the Cable TV segment exceeded the fair value. In accordance with ASU 2017 04, June 30, 2018, not $1.2 three June 30, 2018, |
Note 5 - Income Taxes
Note 5 - Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 5 – In come Taxes The Tax Cuts and Jobs Act was enacted on December 22, 2017. 34% 21% January 1, 2018. October 1, 2018 24.3%. nine $0.4 no |
Note 6 - Notes Payable and Line
Note 6 - Notes Payable and Line of Credit | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 6 – Notes Payable and Line of Credit Notes Payable On May 31, 2018, March 31, 2018 10 May 15, 2018, not March 31, 2018 Under the forbearance agreement, which is Amendment Ten to the Credit and Term Loan Agreement, Lender agrees to delete the fixed charge ratio covenant from the Credit and Term Loan Agreement and to forbear from exercising its rights and remedies under the Credit and Term Loan Agreement through October 31, 2018 ● Reduce the revolving line commitment from $5.0 $3.0 ● Lender is not ● Limit the Company’s capital expenditure to $100,000 ● Require semi-monthly reporting of its borrowing base calculation; ● The Company must remain in compliance with the terms of the amended Credit and Term Loan Agreement. The Company believes that it will be able to secure funding from a different lender based on its continued ability to service the existing debt, its available assets, and the sales strategy and operational improvements it is implementing within its segments. 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 leverage ratio (total funded debt to EBITDA) of not 2.50 1.0. At June 30, 2018, two first $0.6 June 30, 2018 October 31, 2018, $15,334 30 1.4% 3.40% June 30, 2018) The second $1.8 June 30, 2018 October 31, 2018, $118,809. 4.40%. On December 6, 2017, one $2.7 $25,000. Line of Credit On May 31, 2018, October 31, 2018 $3.0 $5.0 June 30, 2018, $0.5 – 30 2.75% 4.82% June 30, 2018), October 31, 2018. $3.0 80% 50% $3.0 June 30, 2018. Fair Value of Debt FASB ASC 820, Fair Value Measurements and Disclosures, three ● Level 1 ● Level 2 1 ● Level 3 not 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 $1.8 June 30, 2018. |
Note 7 - Earnings Per Share
Note 7 - Earnings Per Share | 9 Months Ended |
Jun. 30, 2018 | |
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 (loss) per share for the three nine June 30, 2018 2017 Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net income (loss) attributable to common shareholders $ (1,506,699 ) $ (66,863 ) $ (2,473,158 ) $ 160,969 Basic weighted average shares 10,306,145 10,192,244 10,261,617 10,160,017 Effect of dilutive securities: Stock options – – – 565 Diluted weighted average shares 10,306,145 10,192,244 10,261,617 10,160,582 Earnings (loss) per common share: Basic $ (0.15 ) $ (0.01 ) $ (0.24 ) $ 0.02 Diluted $ (0.15 ) $ (0.01 ) $ (0.24 ) $ 0.02 The table below includes information related to stock options that were outstanding at the end of each respective three nine June 30, three nine June 30, Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Stock options excluded 645,000 700,000 645,000 650,000 Weighted average exercise price of stock options $ 2.59 $ 2.54 $ 2.59 $ 2.60 Average market price of common stock $ 1.29 $ 1.72 $ 1.38 $ 1.77 |
Note 8 - Stock-based Compensati
Note 8 - Stock-based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8 Plan Information The 2015 may not At June 30, 2018, 1,100,415 187,301 Stock Options All share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their grant date fair value over the requisite service period. Compensation expense for share-based awards is included in the operating, selling, general and administrative expense section of the Company’s consolidated condensed statements of operations. Stock options are valued at the date of the award, which does not four five ten ten A summary of the status of the Company's stock options at June 30, 2018 nine Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2017 700,000 $ 2.54 Granted – – Exercised – – Expired – – Forfeited (55,000 ) $ 1.86 Outstanding at June 30, 2018 645,000 $ 2.59 Exercisable at June 30, 2018 551,667 $ 2.73 No nine June 30, 2018. zero not zero Compensation expense related to unvested stock options recorded for the nine June 30, 2018 Nine Months Ended June 30, 2018 Fiscal year 2016 grant $ 1,789 Fiscal year 2017 grant $ 31,603 The Company records compensation expense over the vesting term of the related options. At June 30, 2018, not $33,999. Restricted Stock The Company granted restricted stock in March 2018 80,150 12 12 $105,000, 12 |
Note 9 - Segment Reporting
Note 9 - Segment Reporting | 9 Months Ended |
Jun. 30, 2018 | |
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 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. In addition, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program. The Company evaluates performance and allocates its resources based on operating income. The accounting policies of its reportable segments are the same as those described in the summary of significant accounting policies. Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, property and equipment, goodwill and intangible assets. Three Months Ended Nine Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Sales Cable TV $ 4,898,902 $ 6,037,503 $ 15,370,405 $ 17,609,293 Telco 7,680,559 6,954,787 21,145,659 18,858,229 Intercompany (5,562 ) (2,300 ) (7,872 ) (86,950 ) Total sales $ 12,573,899 $ 12,989,990 $ 36,508,192 $ 36,380,572 Gross profit Cable TV $ 1,089,582 $ 1,874,513 $ 3,830,092 $ 6,029,913 Telco 1,993,351 1,881,438 5,979,061 5,514,096 Total gross profit $ 3,082,933 $ 3,755,951 $ 9,809,153 $ 11,544,009 Income (loss) from operations Cable TV $ (1,355,387 ) $ 414,383 $ (1,247,733 ) $ 1,586,013 Telco (353,173 ) (415,459 ) (810,712 ) (1,073,280 ) Total income (loss) from operations $ (1,708,560 ) $ (1,076 ) $ (2,058,445 ) $ 512,733 June 30, 2018 September 30, 2017 Segment assets Cable TV $ 19,743,820 $ 24,116,395 Telco 23,328,865 24,135,091 Non-allocated 4,728,876 6,596,119 Total assets $ 47,801,561 $ 54,847,605 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
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” or “we”). 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 not 10 September 30, 2017. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no |
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, not 2014 09 In February 2016, 2016 02: 842 twelve December 15, 2018 2016 02 not $3 In March 2016, 2016 09: 718 December 15, 2016 2016 09 not not 2016 09 October 1, 2017. In June 2016, 2016 13: 326 2016 13 December 15, 2019, may December 15, 2018, In August 2016, 2016 15: 230 eight December 15, 2017, 2016 15, In January 2017, 2017 04: 350 second not December 15, 2019, 2017 04 June 30, 2018 June 30, 2018 ( 4 |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2018 September 30, 2017 New: Cable TV $ 12,325,608 $ 14,014,188 Telco 936,404 990,218 Refurbished and used: Cable TV 3,087,361 3,197,426 Telco 7,195,859 7,071,277 Allowance for excess and obsolete inventory: Cable TV (2,800,000 ) (2,300,000 ) Telco (700,000 ) (639,289 ) $ 20,045,232 $ 22,333,820 |
Note 3 - Intangible Assets (Tab
Note 3 - Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2018 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (2,510,092 ) $ 5,641,908 Technology – 7 years 1,303,000 (806,616 ) 496,384 Trade name – 10 years 2,119,000 (701,405 ) 1,417,595 Non-compete agreements – 3 years 374,000 (322,333 ) 51,667 Total intangible assets $ 11,948,000 $ (4,340,446 ) $ 7,607,554 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 |
Note 7 - Earnings Per Share (Ta
Note 7 - Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net income (loss) attributable to common shareholders $ (1,506,699 ) $ (66,863 ) $ (2,473,158 ) $ 160,969 Basic weighted average shares 10,306,145 10,192,244 10,261,617 10,160,017 Effect of dilutive securities: Stock options – – – 565 Diluted weighted average shares 10,306,145 10,192,244 10,261,617 10,160,582 Earnings (loss) per common share: Basic $ (0.15 ) $ (0.01 ) $ (0.24 ) $ 0.02 Diluted $ (0.15 ) $ (0.01 ) $ (0.24 ) $ 0.02 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Stock options excluded 645,000 700,000 645,000 650,000 Weighted average exercise price of stock options $ 2.59 $ 2.54 $ 2.59 $ 2.60 Average market price of common stock $ 1.29 $ 1.72 $ 1.38 $ 1.77 |
Note 8 - Stock-based Compensa19
Note 8 - Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2017 700,000 $ 2.54 Granted – – Exercised – – Expired – – Forfeited (55,000 ) $ 1.86 Outstanding at June 30, 2018 645,000 $ 2.59 Exercisable at June 30, 2018 551,667 $ 2.73 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Nine Months Ended June 30, 2018 Fiscal year 2016 grant $ 1,789 Fiscal year 2017 grant $ 31,603 |
Note 9 - Segment Reporting (Tab
Note 9 - Segment Reporting (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Sales Cable TV $ 4,898,902 $ 6,037,503 $ 15,370,405 $ 17,609,293 Telco 7,680,559 6,954,787 21,145,659 18,858,229 Intercompany (5,562 ) (2,300 ) (7,872 ) (86,950 ) Total sales $ 12,573,899 $ 12,989,990 $ 36,508,192 $ 36,380,572 Gross profit Cable TV $ 1,089,582 $ 1,874,513 $ 3,830,092 $ 6,029,913 Telco 1,993,351 1,881,438 5,979,061 5,514,096 Total gross profit $ 3,082,933 $ 3,755,951 $ 9,809,153 $ 11,544,009 Income (loss) from operations Cable TV $ (1,355,387 ) $ 414,383 $ (1,247,733 ) $ 1,586,013 Telco (353,173 ) (415,459 ) (810,712 ) (1,073,280 ) Total income (loss) from operations $ (1,708,560 ) $ (1,076 ) $ (2,058,445 ) $ 512,733 June 30, 2018 September 30, 2017 Segment assets Cable TV $ 19,743,820 $ 24,116,395 Telco 23,328,865 24,135,091 Non-allocated 4,728,876 6,596,119 Total assets $ 47,801,561 $ 54,847,605 |
Note 1 - Basis of Presentatio21
Note 1 - Basis of Presentation and Accounting Policies (Details Textual) $ in Millions | Oct. 01, 2018USD ($) |
Accounting Standards Update 2016-02 [Member] | Scenario, Forecast [Member] | |
Operating Lease, Right-of-Use Asset | $ 3 |
Note 2 - Inventories (Details T
Note 2 - Inventories (Details Textual) - USD ($) | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Inventory Write-down | $ 560,711 | $ 433,579 | |
Inventory Valuation Reserves, Ending Balance | 3,500,000 | $ 2,939,289 | |
Cable TV [Member] | |||
Inventory Write-down | 500,000 | ||
Inventory Valuation Reserves, Ending Balance | 2,800,000 | 2,300,000 | |
Telco [Member] | |||
Inventory Write-down | 700,000 | ||
Inventory Valuation Reserves, Ending Balance | 700,000 | $ 639,289 | |
Inventory, Lower of Cost or Market Reserve | 200,000 | $ 100,000 | |
Telco [Member] | SEC Schedule, 12-09, Reserve, Inventory [Member] | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | $ 100,000 |
Note 2 - Inventories - Schedule
Note 2 - Inventories - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Refurbished and used: | ||
Inventory Valuation Reserve | $ (3,500,000) | $ (2,939,289) |
20,045,232 | 22,333,820 | |
Cable TV [Member] | ||
Refurbished and used: | ||
Inventory Valuation Reserve | (2,800,000) | (2,300,000) |
Cable TV [Member] | New Inventory [Member] | ||
New: | ||
Inventory Gross | 12,325,608 | 14,014,188 |
Refurbished and used: | ||
Inventory Gross | 12,325,608 | 14,014,188 |
Cable TV [Member] | Refurbished and Used Inventory [Member] | ||
New: | ||
Inventory Gross | 3,087,361 | 3,197,426 |
Refurbished and used: | ||
Inventory Gross | 3,087,361 | 3,197,426 |
Telco [Member] | ||
Refurbished and used: | ||
Inventory Valuation Reserve | (700,000) | (639,289) |
Telco [Member] | New Inventory [Member] | ||
New: | ||
Inventory Gross | 936,404 | 990,218 |
Refurbished and used: | ||
Inventory Gross | 936,404 | 990,218 |
Telco [Member] | Refurbished and Used Inventory [Member] | ||
New: | ||
Inventory Gross | 7,195,859 | 7,071,277 |
Refurbished and used: | ||
Inventory Gross | $ 7,195,859 | $ 7,071,277 |
Note 3 - Intangible Assets - Sc
Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Gross | $ 11,948,000 | $ 11,948,000 |
Accumulated Amortization | (4,340,446) | (3,400,513) |
Net | 7,607,554 | 8,547,487 |
Customer Relationships [Member] | ||
Gross | 8,152,000 | 8,152,000 |
Accumulated Amortization | (2,510,092) | (1,898,691) |
Net | 5,641,908 | 6,253,309 |
Technology-Based Intangible Assets [Member] | ||
Gross | 1,303,000 | 1,303,000 |
Accumulated Amortization | (806,616) | (667,009) |
Net | 496,384 | 635,991 |
Trade Names [Member] | ||
Gross | 2,119,000 | 2,119,000 |
Accumulated Amortization | (701,405) | (542,480) |
Net | 1,417,595 | 1,576,520 |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 374,000 |
Accumulated Amortization | (322,333) | (292,333) |
Net | $ 51,667 | $ 81,667 |
Note 3 - Intangible Assets - 25
Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
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 4 - Goodwill (Details Text
Note 4 - Goodwill (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill, Impairment Loss | $ 1,150,059 | $ 1,150,059 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 0.4 | |||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.30% |
Note 6 - Notes Payable and Li28
Note 6 - Notes Payable and Line of Credit (Details Textual) | Dec. 06, 2017USD ($) | Oct. 14, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 29, 2018USD ($) |
Line of Credit Facility, Maximum Capital Expenditure, Forbearance Period | $ 100,000 | |||
Number of Term Loans Outstanding | 2 | |||
Term Loan 3 [Member] | ||||
Payments for Loans | $ 2,700,000 | |||
Prepayment Penalty | $ 25,000 | |||
Credit and Term Loan Agreement [Member] | ||||
Fixed Charge Leverage Ratio, Maximum Requirement | 2.5 | |||
Credit and Term Loan Agreement [Member] | Term Loan 1 [Member] | ||||
Loans Payable, Total | $ 600,000 | |||
Debt Instrument, Periodic Payment, Principal | $ 15,334 | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | |||
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, Total | $ 1,800,000 | |||
Debt Instrument, Periodic Payment, Total | $ 118,809 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||
Credit and Term Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000 | $ 5,000,000 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 | |||
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% | |||
Credit and Term Loan Agreement [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.82% | |||
Credit and Term Loan Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Credit and Term Loan Agreement [Member] | Revolving Line Of Credit [Member] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 500,000 |
Note 7 - Earnings Per Share - B
Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) attributable to common shareholders | $ (1,506,699) | $ (66,863) | $ (2,473,158) | $ 160,969 |
Basic weighted average shares (in shares) | 10,306,145 | 10,192,244 | 10,261,617 | 10,160,017 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 565 | |||
Diluted weighted average shares (in shares) | 10,306,145 | 10,192,244 | 10,261,617 | 10,160,582 |
Earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.15) | $ (0.01) | $ (0.24) | $ 0.02 |
Diluted (in dollars per share) | $ (0.15) | $ (0.01) | $ (0.24) | $ 0.02 |
Note 7 - Earnings Per Share - A
Note 7 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock options excluded (in shares) | 645,000 | 700,000 | 645,000 | 650,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 2.59 | $ 2.54 | $ 2.59 | $ 2.60 |
Average market price of common stock (in dollars per share) | $ 1.29 | $ 1.72 | $ 1.38 | $ 1.77 |
Note 8 - Stock-based Compensa31
Note 8 - Stock-based Compensation (Details Textual) xbrli-pure in Thousands | 9 Months Ended |
Jun. 30, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ | $ 33,999 |
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 |
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 | 80,150 |
Restricted Stock Holding Period | 1 year |
Fair Value Of Restricted Shares Upon Issuance | $ | $ 105,000 |
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 | 187,301 |
Note 8 - Stock-based Compensa32
Note 8 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) | 9 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Outstanding (in shares) | shares | 700,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.54 |
Granted (in shares) | shares | 0 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | |
Exercised (in shares) | shares | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | |
Expired (in shares) | shares | |
Expired, weighted average exercise price (in dollars per share) | $ / shares | |
Forfeited (in shares) | shares | (55,000) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 1.86 |
Outstanding (in shares) | shares | 645,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.59 |
Exercisable (in shares) | shares | 551,667 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 2.73 |
Note 8 - Stock-based Compensa33
Note 8 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Employee Stock Option [Member] | 9 Months Ended |
Jun. 30, 2018USD ($) | |
Fiscal Year 2016 [Member] | |
Compensation expense | $ 1,789 |
Fiscal Year 2017 [Member] | |
Compensation expense | $ 31,603 |
Note 9 - Segment Reporting - Se
Note 9 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Sales | $ 12,573,899 | $ 12,989,990 | $ 36,508,192 | $ 36,380,572 | |
Gross profit | 3,082,933 | 3,755,951 | 9,809,153 | 11,544,009 | |
Operating income (loss) | (1,708,560) | (1,076) | (2,058,445) | 512,733 | |
Segment assets | 47,801,561 | 47,801,561 | $ 54,847,605 | ||
Operating Segments [Member] | Cable TV [Member] | |||||
Sales | 4,898,902 | 6,037,503 | 15,370,405 | 17,609,293 | |
Gross profit | 1,089,582 | 1,874,513 | 3,830,092 | 6,029,913 | |
Operating income (loss) | (1,355,387) | 414,383 | (1,247,733) | 1,586,013 | |
Segment assets | 19,743,820 | 19,743,820 | 24,116,395 | ||
Operating Segments [Member] | Telco [Member] | |||||
Sales | 7,680,559 | 6,954,787 | 21,145,659 | 18,858,229 | |
Gross profit | 1,993,351 | 1,881,438 | 5,979,061 | 5,514,096 | |
Operating income (loss) | (353,173) | (415,459) | (810,712) | (1,073,280) | |
Segment assets | 23,328,865 | 23,328,865 | 24,135,091 | ||
Intersegment Eliminations [Member] | |||||
Sales | (5,562) | (2,300) | (7,872) | (86,950) | |
Gross profit | 3,082,933 | $ 3,755,951 | 9,809,153 | $ 11,544,009 | |
Segment Reconciling Items [Member] | |||||
Segment assets | $ 4,728,876 | $ 4,728,876 | $ 6,596,119 |