Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 30, 2018 | Mar. 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 | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 10,306,145 | ||
Entity Public Float | $ 7,240,925 | ||
Document Type | 10-K/A | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | Amendment to include XBRL. | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Cash and cash equivalents | $ 3,129,280 | $ 3,972,723 |
Accounts receivable, net of allowance for doubtful accounts of $150,000 | 4,400,868 | 5,567,005 |
Income tax receivable | 178,766 | 247,186 |
Inventories, net of allowance for excess and obsolete inventory of $4,965,000 and $2,939,289, respectively | 18,888,042 | 22,333,820 |
Prepaid expenses | 264,757 | 298,152 |
Assets held for sale | 3,666,753 | |
Total current assets | 30,528,466 | 32,418,886 |
Land and buildings | 2,208,676 | 7,218,678 |
Machinery and equipment | 3,884,859 | 3,995,668 |
Leasehold improvements | 200,617 | 202,017 |
Total property and equipment, at cost | 6,294,152 | 11,416,363 |
Less: Accumulated depreciation | (4,276,024) | (5,395,791) |
Net property and equipment | 2,018,128 | 6,020,572 |
Investment in and loans to equity method investee | 49,000 | 98,704 |
Intangibles, net of accumulated amortization | 6,844,398 | 8,547,487 |
Goodwill | 4,820,185 | 5,970,244 |
Deferred income taxes, net of valuation allowance | 1,653,000 | |
Other assets | 134,443 | 138,712 |
Total assets | 44,394,620 | 54,847,605 |
Current liabilities: | ||
Accounts payable | 4,657,188 | 3,392,725 |
Accrued expenses | 1,150,010 | 1,406,722 |
Notes payable – current portion | 2,594,185 | 4,189,605 |
Other current liabilities | 664,374 | 664,325 |
Total current liabilities | 9,065,757 | 9,653,377 |
Notes payable, less current portion | 2,094,246 | |
Other liabilities | 801,612 | 1,401,799 |
Total liabilities | 9,867,369 | 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 | (4,598,343) | (4,746,466) |
Retained earnings | 40,017,540 | 47,337,396 |
Total shareholders’ equity before treasury stock | 35,527,265 | 42,698,197 |
Less: Treasury stock, 500,658 shares, at cost | (1,000,014) | (1,000,014) |
Total shareholders’ equity | 34,527,251 | 41,698,183 |
Total liabilities and shareholders’ equity | $ 44,394,620 | $ 54,847,605 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 150,000 | $ 150,000 |
Inventories, allowance for excess and obsolete inventory | $ 4,965,000 | $ 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 Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | $ 47,413,987 | $ 48,713,746 | $ 38,663,264 |
Cost of sales | 36,191,011 | 33,903,153 | 26,222,381 |
Gross profit | 11,222,976 | 14,810,593 | 12,440,883 |
Operating, selling, general and administrative expenses | 14,325,268 | 14,664,987 | 12,097,022 |
Restructuring Charges, Total | 941,059 | ||
Goodwill impairment charge | 1,150,059 | ||
Income (loss) from operations | (5,193,410) | 145,606 | 343,861 |
Other income (expense): | |||
Other income | 459,636 | ||
Interest income | 90,686 | ||
Loss from equity method investment | (258,558) | (184,996) | |
Interest expense | (231,888) | (389,722) | (236,024) |
Total other income (expense), net | (490,446) | (389,722) | 129,302 |
Income (loss) before income taxes | (5,683,856) | (244,116) | 473,163 |
Provision (benefit) for income taxes | 1,636,000 | (146,000) | 179,000 |
Net income (loss) | $ (7,319,856) | $ (98,116) | $ 294,163 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (0.71) | $ (0.01) | $ 0.03 |
Diluted (in dollars per share) | $ (0.71) | $ (0.01) | $ 0.03 |
Shares used in per share calculation: | |||
Basic (in shares) | 10,272,749 | 10,201,825 | 10,141,234 |
Diluted (in shares) | 10,272,749 | 10,201,825 | 10,145,296 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Paid in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
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, net of forfeited (in shares) | 70,672 | ||||
Restricted stock, net of forfeited | $ 707 | 121,794 | 122,501 | ||
Share based compensation expense | 73,684 | 73,684 | |||
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, net of forfeited (in shares) | 58,009 | ||||
Restricted stock, net of forfeited | $ 580 | 104,420 | 105,000 | ||
Share based compensation expense | 66,243 | 66,243 | |||
Stock options exercised (in shares) | 33,751 | ||||
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 |
Net income (loss) | (7,319,856) | (7,319,856) | |||
Restricted stock, net of forfeited (in shares) | 80,150 | ||||
Restricted stock, net of forfeited | $ 801 | 104,199 | 105,000 | ||
Share based compensation expense | 43,924 | $ 43,924 | |||
Stock options exercised (in shares) | |||||
Balance (in shares) at Sep. 30, 2018 | 10,806,803 | ||||
Balance at Sep. 30, 2018 | $ 108,068 | $ (4,598,343) | $ 40,017,540 | $ (1,000,014) | $ 34,527,251 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | |||
Net income (loss) | $ (7,319,856) | $ (98,116) | $ 294,163 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 378,196 | 446,834 | 421,950 |
Amortization | 1,253,244 | 1,267,182 | 825,804 |
Provision for excess and obsolete inventories | 2,025,711 | 901,599 | 951,282 |
Charge for lower of cost or net realizable value for inventories | 246,053 | 126,822 | 73,716 |
(Gain) loss on disposal of property and equipment | 41,354 | (2,000) | |
Deferred income tax provision (benefit) | 1,653,000 | (320,000) | 157,000 |
Share based compensation expense | 155,174 | 175,465 | 192,213 |
Restructuring charge | 449,845 | ||
Goodwill impairment charge | 1,150,059 | ||
Loss from equity method investment | 258,558 | 184,996 | |
Cash provided (used) by changes in operating assets and liabilities: | |||
Accounts receivable | 1,359,983 | (71,254) | 115,479 |
Income tax receivable\payable | 68,420 | 233,651 | (603,329) |
Inventories | 988,285 | (688,729) | 1,067,179 |
Prepaid expenses | 27,145 | 22,097 | (165,863) |
Other assets | 4,269 | (2,724) | (1,310) |
Accounts payable | 1,264,463 | 951,099 | 15,514 |
Accrued expenses | (245,331) | (90,003) | (34,029) |
Other liabilities | 66,862 | 134,890 | 47,726 |
Net cash provided by operating activities | 3,825,434 | 2,988,813 | 3,540,491 |
Investing Activities | |||
Acquisition of net operating assets | (6,643,540) | (178,000) | |
Guaranteed payments for acquisition of business | (667,000) | (1,000,000) | (1,000,000) |
Loan repayments from (investment in and loans to) equity method investee | (208,854) | 2,389,920 | (2,773,620) |
Purchases of property and equipment | (127,257) | (190,303) | (319,810) |
Disposals of property and equipment | 23,900 | 1,817 | 2,000 |
Net cash used in investing activities | (979,211) | (5,442,106) | (4,269,430) |
Financing Activities | |||
Net change in bank revolving line of credit | 500,000 | ||
Proceeds on notes payable | 4,000,000 | ||
Debt issuance costs | (16,300) | ||
Payments on notes payable | (4,189,666) | (2,065,810) | (873,921) |
Net cash provided by (used in) financing activities | (3,689,666) | 1,917,890 | (873,921) |
Net decrease in cash and cash equivalents | (843,443) | (535,403) | (1,602,860) |
Cash and cash equivalents at beginning of year | 3,972,723 | 4,508,126 | 6,110,986 |
Cash and cash equivalents at end of year | 3,129,280 | 3,972,723 | 4,508,126 |
Supplemental cash flow information: | |||
Cash paid for interest | 220,117 | 360,805 | 195,086 |
Cash paid for (received from) income taxes | (59,674) | (61,000) | 597,200 |
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 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
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 Inventories 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, 2018, 2017 2016. Goodwill Goodwill represents the excess of purchase price of acquisitions over the acquisition date fair value of the net assets of businesses acquired. Goodwill is not fourth Management utilizes a discounted cash flow analysis to determine the estimated fair value of each reporting unit. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate, gross margins and operating expenses are inherent in these fair value estimates. As a result, actual results may 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 $0.6 $0.5 $0.2 September 30, 2018, 2017 2016, Management estimates The preparation of financial statements in conformity with United 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 risk The Company holds cash with one 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 The Company had no 2018, 2017 2016 10% $4.1 $4.3 $3.0 September 30, 2018, 2017 2016, 2018, 15% 11% not 10% one Employee stock-based awards 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. 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 ● Level 2 1 ● Level 3 not Recent ly i ssued a ccounting s tandards In May 2014, 2014 09: 606 August 2015, 2015 14: 606 2014 09 one 2014 09 December 15, 2017. 2014 09, not 2014 09 not 2014 09 October 1, 2018, 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 ( 5 Reclassification Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no |
Note 2 - Assets Held for Sale
Note 2 - Assets Held for Sale | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Assets Held for Sale [Text Block] | Note 2 Assets Held for S ale On September 28, 2018, one $3.7 September 30, 2018, September 30, 2018 Subsequent to year end, on October 9, 2018, $5,000,000 November 29, 2018, $1.4 In connection with the sale of the Broken Arrow, Oklahoma facility, Tulsat entered into a ten $44,000, $528,000 1.4 |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 3 – Inventories Inventories at September 30, 2018 2017 September 30, 2018 September 30, 2017 New: Cable TV $ 12,594,138 $ 14,014,188 Telco 1,371,545 554,034 Refurbished and used: Cable TV 2,981,413 3,197,426 Telco 6,905,946 7,507,460 Allowance for excess and obsolete inventory: Cable TV (4,150,000 ) (2,300,000 ) Telco (815,000 ) (639,288 ) Total inventories $ 18,888,042 $ 22,333,820 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 not $1.9 $0.6 $0.6 September 30, 2018, 2017 2016. In fiscal years ended September 30, 2018, 2017 2016, not not $0.2 $0.3 $0.4 September 30, 2018, 2017 2016, $0.2 $0.1 $0.1 September 30, 2018, 2017 2016, $0.2 |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 4 – Intangible Assets During the year ended September 30, 2018, third $0.4 September 30, 2018, 11 The intangible assets with their associated accumulated amortization amounts at September 30, 2018 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (2,713,890 ) $ 5,438,110 Trade name – 10 years 2,119,000 (754,380 ) 1,364,620 Non-compete agreements – 3 years 374,000 (332,332 ) 41,668 Total intangible assets $ 10,645,000 $ (3,800,602 ) $ 6,844,398 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 Amortization expense was $1.3 $1.3 $0.8 September 30, 2018, 2017 2016, The estimated aggregate amortization expense for each of the next five 2019 $ 1,067,100 2020 1,028,768 2021 1,027,100 2022 1,027,100 2023 1,027,100 Thereafter 1,667,230 Total $ 6,844,398 |
Note 5 - Goodwill
Note 5 - Goodwill | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | Note 5 – Goodwill 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 September 30, 2018, We performed our annual impairment test for the Telco reporting unit in the fourth 2018 not |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 – Income Taxes The Tax Cuts and Jobs Act was enacted on December 22, 2017. 34% 21% January 1, 2018. September 30, 2018 $0.4 no The provision (benefit) for income taxes for the years ended September 30, 2018, 2017 2016 2018 2017 2016 Current $ (17,000 ) $ 174,000 $ 22,000 Deferred 1,653,000 (320,000 ) 157,000 Total provision (benefit) for income taxes $ 1,636,000 $ (146,000 ) $ 179,000 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, 2018, 2017 2016: 2018 2017 2016 Statutory tax rate 21.0 % 34.0 % 34.0 % State income taxes, net of U.S. federal tax benefit 6.1 % 43.7 % (4.4 %) Return to accrual adjustment (0.1 %) (9.8 %) 1.5 % Tax credits 0.3 % 8.2 % − Charges without tax benefit (3.2 %) (16.2 %) 6.8 % Change in statutory rate (7.7 %) ‒ ‒ Valuation allowance (45.1 %) ‒ − Other exclusions (0.1 %) (0.1 %) (0.1 %) Company’s effective tax rate (28.8 %) 59.8 % 37.8 % The charges without tax benefit rate for fiscal year 2018 The tax effects of temporary differences related to deferred taxes at September 30, 2018 2017 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 804,000 $ 208,000 Accounts receivable 40,000 58,000 Inventory 1,453,000 1,432,000 Intangibles 614,000 560,000 Accrued expenses 76,000 175,000 Stock options 66,000 246,000 Investment in equity method investee 162,000 174,000 Other 102,000 ‒ 3,317,000 2,853,000 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 726,000 1,156,000 Other 27,000 44,000 Less valuation allowance 2,564,000 ‒ Net deferred tax asset $ – $ 1,653,000 The Company’s U.S. Federal net operating loss (“NOL”) carryforwards consist of the following: NOL carryforward Year Expires Year ended September 30, 2018 $ 2,120,000 No expiry Year ended September 30, 2016 82,820 2036 The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not not $2.6 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 2015. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 7 – Accrued Expenses Accrued expenses at September 30, 2018 2017 2018 2017 Employee costs $ 741,818 $ 884,390 Triton Datacom earn-out – 222,611 Taxes other than income tax 260,390 163,016 Interest 9,251 22,121 Other, net 138,551 114,584 $ 1,150,010 $ 1,406,722 |
Note 8 - Line of Credit and Not
Note 8 - Line of Credit and Notes Payable | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 – Line of Credit and Notes Payable 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 agreed 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 ● Reducing the revolving line commitment from $5.0 $3.0 ● Terminating the Lender’s obligation to lend or make advances under the revolving line of credit; ● Limiting the Company’s capital expenditure to $100,000 ● Requiring semi-monthly reporting of its borrowing base calculation; and ● Requiring the Company to remain in compliance with the terms of the amended Credit and Term Loan Agreement. Revolving credit and term loans created under the Credit and Term Loan Agreement were 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 provided that the Company maintain a leverage ratio (total funded debt to EBITDA) of not 2.50 1.0. At September 30, 2018, two first $0.6 September 30, 2018 October 31, 2018, $15,334 30 1.4% 3.66% September 30, 2018) The second $1.5 September 30, 2018 October 31, 2018, $118,809. 4.40%. On December 6, 2017, one $2.7 $25,000. September 30, 2018, two $2.1 Line of Credit On May 31, 2018, October 31, 2018 $3.0 $5.0 September 30, 2018, $0.5 – 30 2.75% 5.03% September 30, 2018), October 31, 2018. $3.0 80% 50% Subsequent to September 30, 2018, $0.5 The aggregate minimum maturities of notes payable and the line of credit for fiscal year 2019 $2,594,185 $0 2020 2023 As noted above, subsequent to September 30, 2018, no Subsequent to September 30, 2018, $2.5 December 17, 2019. 0.75% 6.00% December 17, 2018), not 1.25 1.0. $2.5 80% 25% $2.5 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 $1.5 September 30, 2018. |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 – Stock-B ased Compensation Plan Information The 2015 may not At September 30, 2018, 1,100,415 542,301 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 four five ten ten A summary of the status of the Company's stock options at September 30, 2018 Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at September 30, 2017 700,000 $ 2.54 Granted – $ – Exercised − $ – $ 0 Expired (55,000 ) $ 3.00 Forfeited (355,000 ) $ 2.57 Outstanding at September 30, 2018 290,000 $ 2.40 $ 0 Exercisable at September 30, 2018 196,667 $ 2.68 $ 0 There were no September 30, 2018, 2017 2016. Information about the Company’s outstanding and exercisable stock options at September 30, 2018 Exercise Price Stock Options Outstanding Exercisable Stock Options Outstanding Remaining Contractual Life (in years) $ 1.79 50,000 16,667 8.6 $ 1.81 90,000 30,000 8.4 $ 3.21 100,000 100,000 5.5 $ 2.45 50,000 50,000 3.5 290,000 196,667 No 2018. 140,000 50,000 September 30, 2017 September 30, 2016, zero not zero The estimated fair value at date of grant for stock options utilizing the Black-Scholes option valuation model and the assumptions that were used in the Black-Scholes option valuation model for the fiscal years 2017 2016 2017 2016 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 the years ended September 30, 2018, 2017 2016 2018 2017 2016 Fiscal year 2012 grant $ ‒ $ 5,359 $ 17,417 Fiscal year 2014 grant ‒ 13,575 47,522 Fiscal year 2016 grant 1,789 16,221 8,745 Fiscal year 2017 grant 42,135 31,088 – Total compensation expense $ 43,924 $ 66,243 $ 73,684 The Company records compensation expense over the vesting term of the related options. At September 30, 2018, not $23,469. Restricted stock The Company granted restricted stock in March 2018, 2017 2016 80,150 58,009 62,874 12 $105,000 2018, 2017 2016 12 Compensation expense related to restricted stock recorded for the years ended September 30, 2018, 2017 2016 2018 2017 2016 Fiscal year 2014 grants $ – $ 4,222 $ 14,779 Fiscal year 2015 grants – – 25,000 Fiscal year 2016 grants – 43,750 78,750 Fiscal year 2017 grant 43,750 61,250 – Fiscal year 2018 grant 61,250 – − $ 105,000 $ 109,222 $ 118,529 |
Note 10 - Retirement Plan
Note 10 - Retirement Plan | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 10 The Company sponsors a 401 21 one 401 $0.3 September 30, 2018, 2017 2016. |
Note 11 - Restructuring Charge
Note 11 - Restructuring Charge | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | Note 11 The Company recorded a $0.9 September 30, 2018 third 1 $0.4 no 2 $0.4 3 $0.1 |
Note 12 - Earnings Per Share
Note 12 - Earnings Per Share | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 1 2 – Earnings per Share Basic and diluted earnings per share for the years ended September 30, 2018, 2017 2016 2018 2017 2016 Net income (loss) attributable to common shareholders $ (7,319,856 ) $ (98,116 ) $ 294,163 Basic weighted average shares 10,272,749 10,201,825 10,141,234 Effect of dilutive securities: Stock options – – 4,062 Diluted weighted average shares 10,272,749 10,201,825 10,145,296 Earnings (loss) per common share: Basic $ (0.71 ) $ (0.01 ) $ 0.03 Diluted $ (0.71 ) $ (0.01 ) $ 0.03 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. 2018 2017 2016 Stock options excluded 290,000 700,000 520,000 Weighted average exercise price of stock options $ 2.40 $ 2.54 $ 2.83 Average market price of common stock $ 1.39 $ 1.70 $ 1.90 |
Note 13 - Related Parties
Note 13 - Related Parties | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | N ote 1 3 – Related Parties The Company leases three two $0.2 $0.1 September 30, 2018 2017, three December 31, 2019. David E. Chymiak and Kenneth A. Chymiak beneficially owned 26% 19%, September 30, 2018. As disclosed in Note 2 September 30, 2018, $5.0 ten $44,000. |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 1 4 – Commitments and Contingencies The Company leases and rents various office and warehouse properties in Florida, Georgia, Maryland, North Carolina, and Pennsylvania. 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 $0.8 $0.7 September 30, 2018, 2017 2016, At September 30, 2018, five 2019 $ 701,837 2020 592,268 2021 568,250 2022 582,456 2023 597,017 Thereafter 99,909 Total $ 3,141,737 |
Note 15 - Segment Reporting
Note 15 - Segment Reporting | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 5 – 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. 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. Years Ended September 30, 2018 September 30, 2017 September 30, 2016 Sales Cable TV $ 19,940,705 $ 22,806,175 $ 22,996,998 Telco 27,522,696 25,994,521 15,800,424 Intersegment (49,414 ) (86,950 ) (134,158 ) Total sales $ 47,413,987 $ 48,713,746 $ 38,663,264 Gross profit Cable TV $ 3,805,761 $ 7,738,355 $ 7,753,735 Telco 7,417,215 7,072,238 4,687,148 Total gross profit $ 11,222,976 $ 14,810,593 $ 12,440,883 Operating income (loss) Cable TV $ (2,570,050 ) $ 1,834,484 $ 1,478,676 Telco (2,623,360 ) (1,688,878 ) (1,134,815 ) Total operating income (loss) $ (5,193,410 ) $ 145,606 $ 343,861 Segment assets Cable TV $ 18,371,530 $ 24,116,395 $ 25,201,697 Telco 22,173,797 24,135,091 15,122,911 Non-allocated 3,849,293 6,596,119 9,943,551 Total assets $ 44,394,620 $ 54,847,605 $ 50,268,159 |
Note 16 - Quarterly Results of
Note 16 - Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | Note 1 6 – Quarterly Results of Operations (Unaudited) The following is a summary of the quarterly results of operations for the years ended September 30, 2018, 2017 2016: First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended 201 8 Sales $ 12,284,765 $ 11,649,528 $ 12,573,899 $ 10,905,795 Gross profit $ 3,381,155 $ 3,345,065 $ 3,082,933 $ 1,413,823 Net loss $ (706,762 ) $ (259,697 ) $ (1,506,699 ) $ (4,846,698 ) Basic loss per common share $ (0.07 ) $ (0.03 ) $ (0.15 ) $ (0.47 ) Diluted loss per common share $ (0.07 ) $ (0.03 ) $ (0.15 ) $ (0.47 ) Fiscal year ended 201 7 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 income (loss) $ 217,161 $ 10,671 $ (66,863 ) $ (259,085 ) Basic earnings (loss) per common share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Diluted earnings (loss) per common share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Fiscal year ended 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 income (loss) $ 23,994 $ 145,630 $ 316,086 $ (191,547 ) Basic earnings (loss) per common share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Diluted earnings (loss) per common share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 7 – Subsequent Events Sale of Cable TV Segment In December 2018, $10.3 third 2019. $3.9 $6.4 five 6.0%. $2.8 $1.4 2 Purchase of Net Assets of Fulton Technologies, Inc. and Mill City Communications, Inc. On December 27, 2018, January 2019. The purchase price for the net assets of Fulton Technologies, Inc. and Mill City Communications, Inc. will be $1.7 $500,000 December 27, 2018 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
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 Inventories 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, 2018, 2017 2016. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of purchase price of acquisitions over the acquisition date fair value of the net assets of businesses acquired. Goodwill is not fourth Management utilizes a discounted cash flow analysis to determine the estimated fair value of each reporting unit. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate, gross margins and operating expenses are inherent in these fair value estimates. As a result, actual results may |
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 $0.6 $0.5 $0.2 September 30, 2018, 2017 2016, |
Use of Estimates, Policy [Policy Text Block] | Management estimates The preparation of financial statements in conformity with United 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 risk The Company holds cash with one 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 The Company had no 2018, 2017 2016 10% $4.1 $4.3 $3.0 September 30, 2018, 2017 2016, 2018, 15% 11% not 10% one |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Employee stock-based awards 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. 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 ● Level 2 1 ● Level 3 not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent ly i ssued a ccounting s tandards In May 2014, 2014 09: 606 August 2015, 2015 14: 606 2014 09 one 2014 09 December 15, 2017. 2014 09, not 2014 09 not 2014 09 October 1, 2018, 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 ( 5 |
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 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2018 September 30, 2017 New: Cable TV $ 12,594,138 $ 14,014,188 Telco 1,371,545 554,034 Refurbished and used: Cable TV 2,981,413 3,197,426 Telco 6,905,946 7,507,460 Allowance for excess and obsolete inventory: Cable TV (4,150,000 ) (2,300,000 ) Telco (815,000 ) (639,288 ) Total inventories $ 18,888,042 $ 22,333,820 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,152,000 $ (2,713,890 ) $ 5,438,110 Trade name – 10 years 2,119,000 (754,380 ) 1,364,620 Non-compete agreements – 3 years 374,000 (332,332 ) 41,668 Total intangible assets $ 10,645,000 $ (3,800,602 ) $ 6,844,398 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 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2019 $ 1,067,100 2020 1,028,768 2021 1,027,100 2022 1,027,100 2023 1,027,100 Thereafter 1,667,230 Total $ 6,844,398 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2018 2017 2016 Current $ (17,000 ) $ 174,000 $ 22,000 Deferred 1,653,000 (320,000 ) 157,000 Total provision (benefit) for income taxes $ 1,636,000 $ (146,000 ) $ 179,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2018 2017 2016 Statutory tax rate 21.0 % 34.0 % 34.0 % State income taxes, net of U.S. federal tax benefit 6.1 % 43.7 % (4.4 %) Return to accrual adjustment (0.1 %) (9.8 %) 1.5 % Tax credits 0.3 % 8.2 % − Charges without tax benefit (3.2 %) (16.2 %) 6.8 % Change in statutory rate (7.7 %) ‒ ‒ Valuation allowance (45.1 %) ‒ − Other exclusions (0.1 %) (0.1 %) (0.1 %) Company’s effective tax rate (28.8 %) 59.8 % 37.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 804,000 $ 208,000 Accounts receivable 40,000 58,000 Inventory 1,453,000 1,432,000 Intangibles 614,000 560,000 Accrued expenses 76,000 175,000 Stock options 66,000 246,000 Investment in equity method investee 162,000 174,000 Other 102,000 ‒ 3,317,000 2,853,000 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 726,000 1,156,000 Other 27,000 44,000 Less valuation allowance 2,564,000 ‒ Net deferred tax asset $ – $ 1,653,000 |
Summary of Operating Loss Carryforwards [Table Text Block] | NOL carryforward Year Expires Year ended September 30, 2018 $ 2,120,000 No expiry Year ended September 30, 2016 82,820 2036 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2018 2017 Employee costs $ 741,818 $ 884,390 Triton Datacom earn-out – 222,611 Taxes other than income tax 260,390 163,016 Interest 9,251 22,121 Other, net 138,551 114,584 $ 1,150,010 $ 1,406,722 |
Note 9 - Stock-based Compensa_2
Note 9 - Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at September 30, 2017 700,000 $ 2.54 Granted – $ – Exercised − $ – $ 0 Expired (55,000 ) $ 3.00 Forfeited (355,000 ) $ 2.57 Outstanding at September 30, 2018 290,000 $ 2.40 $ 0 Exercisable at September 30, 2018 196,667 $ 2.68 $ 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) $ 1.79 50,000 16,667 8.6 $ 1.81 90,000 30,000 8.4 $ 3.21 100,000 100,000 5.5 $ 2.45 50,000 50,000 3.5 290,000 196,667 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2017 2016 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] | 2018 2017 2016 Fiscal year 2012 grant $ ‒ $ 5,359 $ 17,417 Fiscal year 2014 grant ‒ 13,575 47,522 Fiscal year 2016 grant 1,789 16,221 8,745 Fiscal year 2017 grant 42,135 31,088 – Total compensation expense $ 43,924 $ 66,243 $ 73,684 |
Restricted Stock [Member] | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | 2018 2017 2016 Fiscal year 2014 grants $ – $ 4,222 $ 14,779 Fiscal year 2015 grants – – 25,000 Fiscal year 2016 grants – 43,750 78,750 Fiscal year 2017 grant 43,750 61,250 – Fiscal year 2018 grant 61,250 – − $ 105,000 $ 109,222 $ 118,529 |
Note 12 - Earnings Per Share (T
Note 12 - Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2018 2017 2016 Net income (loss) attributable to common shareholders $ (7,319,856 ) $ (98,116 ) $ 294,163 Basic weighted average shares 10,272,749 10,201,825 10,141,234 Effect of dilutive securities: Stock options – – 4,062 Diluted weighted average shares 10,272,749 10,201,825 10,145,296 Earnings (loss) per common share: Basic $ (0.71 ) $ (0.01 ) $ 0.03 Diluted $ (0.71 ) $ (0.01 ) $ 0.03 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | 2018 2017 2016 Stock options excluded 290,000 700,000 520,000 Weighted average exercise price of stock options $ 2.40 $ 2.54 $ 2.83 Average market price of common stock $ 1.39 $ 1.70 $ 1.90 |
Note 14 - Commitments and Con_2
Note 14 - Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 701,837 2020 592,268 2021 568,250 2022 582,456 2023 597,017 Thereafter 99,909 Total $ 3,141,737 |
Note 15 - Segment Reporting (Ta
Note 15 - Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended September 30, 2018 September 30, 2017 September 30, 2016 Sales Cable TV $ 19,940,705 $ 22,806,175 $ 22,996,998 Telco 27,522,696 25,994,521 15,800,424 Intersegment (49,414 ) (86,950 ) (134,158 ) Total sales $ 47,413,987 $ 48,713,746 $ 38,663,264 Gross profit Cable TV $ 3,805,761 $ 7,738,355 $ 7,753,735 Telco 7,417,215 7,072,238 4,687,148 Total gross profit $ 11,222,976 $ 14,810,593 $ 12,440,883 Operating income (loss) Cable TV $ (2,570,050 ) $ 1,834,484 $ 1,478,676 Telco (2,623,360 ) (1,688,878 ) (1,134,815 ) Total operating income (loss) $ (5,193,410 ) $ 145,606 $ 343,861 Segment assets Cable TV $ 18,371,530 $ 24,116,395 $ 25,201,697 Telco 22,173,797 24,135,091 15,122,911 Non-allocated 3,849,293 6,596,119 9,943,551 Total assets $ 44,394,620 $ 54,847,605 $ 50,268,159 |
Note 16 - Quarterly Results o_2
Note 16 - Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year ended 201 8 Sales $ 12,284,765 $ 11,649,528 $ 12,573,899 $ 10,905,795 Gross profit $ 3,381,155 $ 3,345,065 $ 3,082,933 $ 1,413,823 Net loss $ (706,762 ) $ (259,697 ) $ (1,506,699 ) $ (4,846,698 ) Basic loss per common share $ (0.07 ) $ (0.03 ) $ (0.15 ) $ (0.47 ) Diluted loss per common share $ (0.07 ) $ (0.03 ) $ (0.15 ) $ (0.47 ) Fiscal year ended 201 7 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 income (loss) $ 217,161 $ 10,671 $ (66,863 ) $ (259,085 ) Basic earnings (loss) per common share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Diluted earnings (loss) per common share $ 0.02 $ 0.00 $ (0.01 ) $ (0.03 ) Fiscal year ended 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 income (loss) $ 23,994 $ 145,630 $ 316,086 $ (191,547 ) Basic earnings (loss) per common share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) Diluted earnings (loss) per common share $ 0.00 $ 0.01 $ 0.03 $ (0.02 ) |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | 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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 01, 2018 | |
Depreciation, Depletion and Amortization, Total | $ 400,000 | $ 400,000 | $ 400,000 | |||||||||||||
Advertising Expense | 600,000 | 500,000 | 200,000 | |||||||||||||
Revenues, Total | $ 12,284,765 | $ 11,649,528 | $ 12,573,899 | $ 10,905,795 | $ 12,095,826 | $ 11,294,756 | $ 12,989,990 | $ 12,333,174 | $ 8,249,668 | $ 10,587,187 | $ 10,060,242 | $ 9,766,167 | 47,413,987 | 48,713,746 | 38,663,264 | |
Accounting Standards Update 2016-02 [Member] | Scenario, Forecast [Member] | ||||||||||||||||
Operating Lease, Right-of-Use Asset | $ 3,000,000 | |||||||||||||||
Non-US Based Customer [Member] | ||||||||||||||||
Revenues, Total | $ 4,100,000 | $ 4,300,000 | $ 3,000,000 | |||||||||||||
Arris Solutions, Inc [Member] | Supplier Concentration Risk [Member] | Inventory Purchased [Member] | ||||||||||||||||
Concentration Risk, Percentage | 15.00% | |||||||||||||||
Cisco [Member] | Supplier Concentration Risk [Member] | Inventory Purchased [Member] | ||||||||||||||||
Concentration Risk, Percentage | 11.00% | |||||||||||||||
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 - Assets Held for Sale (
Note 2 - Assets Held for Sale (Details Textual) - USD ($) | Nov. 29, 2018 | Sep. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Assets Held-for-sale, Not Part of Disposal Group, Current, Total | $ 3,666,753 | ||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 23,900 | $ 1,817 | $ 2,000 | ||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Tulsat [Member] | |||||
Lessee, Operating Lease, Term of Contract | 10 years | ||||
Lessee, Operating Lease, Monthly Rent | $ 44,000 | ||||
Lessee, Operating Lease, Yearly Rent | $ 528,000 | ||||
Subsequent Event [Member] | Chief Technology Officer, Director, and Substantial Shareholder [Member] | |||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 5,000,000 | ||||
Deferred Gain on Sale of Property | $ 1,400,000 |
Note 3 - Inventories (Details T
Note 3 - Inventories (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory Write-down | $ 2,025,711 | $ 901,599 | $ 951,282 |
Cable TV [Member] | |||
Inventory Write-down | 1,900,000 | 600,000 | 600,000 |
Telco [Member] | |||
Inventory, Lower of Cost or Market Reserve | 200,000 | 100,000 | 100,000 |
Telco [Member] | Excess and Obsolete Inventory [Member] | |||
Inventory Write-down | 200,000 | $ 300,000 | $ 400,000 |
Telco [Member] | Inventory Moved from Nave Communications Company to Palco Telecom [Member] | |||
Inventory Write-down | $ 200,000 |
Note 3 - Inventories - Schedule
Note 3 - Inventories - Schedule of Inventory (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Inventory Valuation Reserve | $ (4,965,000) | $ (2,939,289) |
Total inventories | 18,888,042 | 22,333,820 |
Cable TV [Member] | ||
Inventory Valuation Reserve | (4,150,000) | (2,300,000) |
Cable TV [Member] | New Inventory [Member] | ||
Inventory, Gross | 12,594,138 | 14,014,188 |
Cable TV [Member] | Refurbished and Used Inventory [Member] | ||
Inventory, Gross | 2,981,413 | 3,197,426 |
Telco [Member] | ||
Inventory Valuation Reserve | (815,000) | (639,288) |
Telco [Member] | New Inventory [Member] | ||
Inventory, Gross | 1,371,545 | 554,034 |
Telco [Member] | Refurbished and Used Inventory [Member] | ||
Inventory, Gross | $ 6,905,946 | $ 7,507,460 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization of Intangible Assets, Total | $ 1.3 | $ 1.3 | $ 0.8 |
Restructuring Charges [Member] | Inventory Tracking Software [Member] | |||
Impairment of Intangible Assets, Finite-lived | $ 0.4 |
Note 4 - Intangible Assets - Sc
Note 4 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Gross | $ 10,645,000 | $ 11,948,000 |
Accumulated Amortization | (3,800,602) | (3,400,513) |
Net | 6,844,398 | 8,547,487 |
Customer Relationships [Member] | ||
Gross | 8,152,000 | 8,152,000 |
Accumulated Amortization | (2,713,890) | (1,898,691) |
Net | 5,438,110 | 6,253,309 |
Trade Names [Member] | ||
Gross | 2,119,000 | 2,119,000 |
Accumulated Amortization | (754,380) | (542,480) |
Net | 1,364,620 | 1,576,520 |
Technology-Based Intangible Assets [Member] | ||
Gross | 1,303,000 | |
Accumulated Amortization | (667,009) | |
Net | 635,991 | |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 374,000 |
Accumulated Amortization | (332,332) | (292,333) |
Net | $ 41,668 | $ 81,667 |
Note 4 - Intangible Assets - _2
Note 4 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Customer Relationships [Member] | ||
Finite-lived intangible asset, useful life (Year) | 10 years | 10 years |
Trade Names [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 | |
Noncompete Agreements [Member] | ||
Finite-lived intangible asset, useful life (Year) | 3 years | 3 years |
Note 4 - Intangible Assets - Es
Note 4 - Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
2,019 | $ 1,067,100 | |
2,020 | 1,028,768 | |
2,021 | 1,027,100 | |
2,022 | 1,027,100 | |
2,023 | 1,027,100 | |
Thereafter | 1,667,230 | |
Total | $ 6,844,398 | $ 8,547,487 |
Note 5 - Goodwill (Details Text
Note 5 - Goodwill (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill, Impairment Loss | $ 1,150,059 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 21.00% | 34.00% | 34.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 400,000 | ||||
Deferred Tax Assets, Valuation Allowance, Total | 2,564,000 | ||||
Unrecognized Tax Benefits, Ending Balance | $ 0 | ||||
Open Tax Year | 2015 2016 2017 2018 | ||||
Scenario, Forecast [Member] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 6 - Income Taxes - Provisi
Note 6 - Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current | $ (17,000) | $ 174,000 | $ 22,000 |
Deferred | 1,653,000 | (320,000) | 157,000 |
Total provision (benefit) for income taxes | $ 1,636,000 | $ (146,000) | $ 179,000 |
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) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statutory tax rate | 34.00% | 21.00% | 34.00% | 34.00% |
State income taxes, net of U.S. federal tax benefit | 6.10% | 43.70% | (4.40%) | |
Return to accrual adjustment | (0.10%) | (9.80%) | 1.50% | |
Tax credits | 0.30% | 8.20% | ||
Charges without tax benefit | (3.20%) | (16.20%) | 6.80% | |
Change in statutory rate | (7.70%) | |||
Valuation allowance | (45.10%) | |||
Other exclusions | (0.10%) | (0.10%) | (0.10%) | |
Company’s effective tax rate | (28.80%) | 59.80% | 37.80% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Tax Assets (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 804,000 | $ 208,000 |
Accounts receivable | 40,000 | 58,000 |
Inventory | 1,453,000 | 1,432,000 |
Intangibles | 614,000 | 560,000 |
Accrued expenses | 76,000 | 175,000 |
Stock options | 66,000 | 246,000 |
Investment in equity method investee | 162,000 | 174,000 |
Other | 102,000 | |
3,317,000 | 2,853,000 | |
Deferred tax liabilities: | ||
Financial basis in excess of tax basis of certain assets | 726,000 | 1,156,000 |
Other | 27,000 | 44,000 |
Less valuation allowance | 2,564,000 | |
Net deferred tax asset | $ 1,653,000 |
Note 6 - Income Taxes - Net Ope
Note 6 - Income Taxes - Net Operating Loss Carryforwards (Details) | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Tax Year 2018 [Member] | |
NOL carryforward | $ 2,120,000 |
Tax Year 2016 [Member] | |
NOL carryforward | $ 82,820 |
Year Expires | Sep. 30, 2036 |
Note 7 - Accrued Expenses - Sch
Note 7 - Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Employee costs | $ 741,818 | $ 884,390 |
Triton Datacom earn-out | 222,611 | |
Taxes other than income tax | 260,390 | 163,016 |
Interest | 9,251 | 22,121 |
Other, net | 138,551 | 114,584 |
$ 1,150,010 | $ 1,406,722 |
Note 8 - Line of Credit and N_2
Note 8 - Line of Credit and Notes Payable (Details Textual) | May 31, 2018USD ($) | Dec. 06, 2017USD ($) | Dec. 19, 2018USD ($) | Sep. 30, 2018USD ($) | May 30, 2018USD ($) |
Line of Credit Facility, Maximum Capital Expenditure, Forbearance Period | $ 100,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 2,594,185 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 0 | ||||
Line of Credit [Member] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.03% | ||||
Term Loan [Member] | Subsequent Event [Member] | |||||
Extinguishment of Debt, Amount | $ 2,100,000 | ||||
Revolving Line Of Credit [Member] | Subsequent Event [Member] | |||||
Extinguishment of Debt, Amount | 500,000 | ||||
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 | 3.66% | ||||
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 | $ 1,500,000 | ||||
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, Fair Value of Amount Outstanding | $ 500,000 | ||||
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] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | ||||
Fixed Charge Leverage Ratio, Maximum Requirement | 1.25 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,500,000 | ||||
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 | 25.00% | ||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | Subsequent Event [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
Term Loan [Member] | |||||
Debt Instrument, Fair Value Disclosure, Total | $ 1,500,000 |
Note 9 - Stock-based Compensa_3
Note 9 - Stock-based Compensation (Details Textual) - USD ($) xbrli-pure in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ 23,469 | |||||
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, Options, Grants in Period, Gross | 0 | 140,000 | 50,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments | $ 0 | |||||
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 | 58,009 | 62,874 | |||
Restricted Stock Holding Period | 1 year | |||||
Fair Value Of Restricted Shares Upon Issuance | $ 105,000 | $ 105,000 | $ 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 | 542,301 |
Note 9 - Stock-based Compensa_4
Note 9 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($)$ / 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 | |
Exercised, aggregate intrinsic value | $ | $ 0 |
Expired (in shares) | shares | (55,000) |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 3 |
Forfeited (in shares) | shares | (355,000) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 2.57 |
Outstanding (in shares) | shares | 290,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.40 |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Exercisable (in shares) | shares | 196,667 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 2.68 |
Exercisable, aggregate intrinsic value | $ | $ 0 |
Note 9 - Stock-based Compensa_5
Note 9 - Stock-based Compensation - Outstanding and Exercisable Stock Options (Details) | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Stock Options Outstanding (in shares) | 290,000 |
Exercisable Stock Options Outstanding (in shares) | 196,667 |
Exercise Price Range 1 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 1.79 |
Stock Options Outstanding (in shares) | 50,000 |
Exercisable Stock Options Outstanding (in shares) | 16,667 |
Remaining Contractual Life (Year) | 8 years 219 days |
Exercise Price Range 2 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 1.81 |
Stock Options Outstanding (in shares) | 90,000 |
Exercisable Stock Options Outstanding (in shares) | 30,000 |
Remaining Contractual Life (Year) | 8 years 146 days |
Exercise Price Range 3 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 3.21 |
Stock Options Outstanding (in shares) | 100,000 |
Exercisable Stock Options Outstanding (in shares) | 100,000 |
Remaining Contractual Life (Year) | 5 years 182 days |
Exercise Price Range 4 [Member] | |
Exercise Price (in dollars per share) | $ / shares | $ 2.45 |
Stock Options Outstanding (in shares) | 50,000 |
Exercisable Stock Options Outstanding (in shares) | 50,000 |
Remaining Contractual Life (Year) | 3 years 182 days |
Note 9 - Stock-based Compensa_6
Note 9 - Stock-based Compensation - Estimated Fair Value of Stock Options (Details) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Estimated fair value of options at grant date | $ 96,690 | $ 34,350 |
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 Compensa_7
Note 9 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Employee Stock Option [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Compensation expense | $ 43,924 | $ 66,243 | $ 73,684 |
Fiscal Year 2012 [Member] | |||
Compensation expense | 5,359 | 17,417 | |
Fiscal Year 2014 [Member] | |||
Compensation expense | 13,575 | 47,522 | |
Fiscal Year 2016 [Member] | |||
Compensation expense | 1,789 | 16,221 | 8,745 |
Fiscal Year 2017 [Member] | |||
Compensation expense | $ 42,135 | $ 31,088 |
Note 9 - Stock-based Compensa_8
Note 9 - Stock-based Compensation - Compensation Expense Related to Restricted Stock (Details) - Restricted Stock [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Compensation expense | $ 105,000 | $ 109,222 | $ 118,529 |
Fiscal Year 2014 Grants [Member] | |||
Compensation expense | 4,222 | 14,779 | |
Fiscal Year 2015 Grants [Member] | |||
Compensation expense | 25,000 | ||
Fiscal Year 2016 Grants [Member] | |||
Compensation expense | 43,750 | 78,750 | |
Fiscal Year 2017 Grants [Member] | |||
Compensation expense | 43,750 | 61,250 | |
Fiscal Year 2018 Grants [Member] | |||
Compensation expense | $ 61,250 |
Note 10 - Retirement Plan (Deta
Note 10 - Retirement Plan (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 - Restructuring Charge
Note 11 - Restructuring Charge (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Charges, Total | $ 941,059 | ||
Telco [Member] | |||
Restructuring Charges, Total | 900,000 | ||
Telco [Member] | Expenses to Transfer Inventory [Member] | |||
Restructuring Charges, Total | 400,000 | ||
Telco [Member] | Employee Severance [Member] | |||
Restructuring Charges, Total | 100,000 | ||
Telco [Member] | Inventory Tracking Software [Member] | |||
Impairment of Intangible Assets, Finite-lived | $ 400,000 |
Note 12 - Earnings Per Share -
Note 12 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | 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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) attributable to common shareholders | $ (7,319,856) | $ (98,116) | $ 294,163 | ||||||||||||
Basic weighted average shares (in shares) | 10,272,749 | 10,201,825 | 10,141,234 | ||||||||||||
Stock options (in shares) | 4,062 | ||||||||||||||
Diluted weighted average shares (in shares) | 10,272,749 | 10,201,825 | 10,145,296 | ||||||||||||
Basic (in dollars per share) | $ (0.07) | $ (0.03) | $ (0.15) | $ (0.47) | $ 0.02 | $ 0 | $ (0.01) | $ (0.03) | $ 0 | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.71) | $ (0.01) | $ 0.03 |
Diluted (in dollars per share) | $ (0.07) | $ (0.03) | $ (0.15) | $ (0.47) | $ 0.02 | $ 0 | $ (0.01) | $ (0.03) | $ 0 | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.71) | $ (0.01) | $ 0.03 |
Note 12 - Earnings Per Share _2
Note 12 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock options excluded (in shares) | 290,000 | 700,000 | 520,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 2.40 | $ 2.54 | $ 2.83 |
Average market price of common stock (in dollars per share) | $ 1.39 | $ 1.70 | $ 1.90 |
Note 13 - Related Parties (Deta
Note 13 - Related Parties (Details Textual) - USD ($) | Nov. 29, 2018 | Sep. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 23,900 | $ 1,817 | $ 2,000 | ||
Company Owned by Employees [Member] | |||||
Payments for Rent | $ 200,000 | $ 100,000 | |||
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% | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Tulsat [Member] | |||||
Lessee, Operating Lease, Term of Contract | 10 years | ||||
Lessee, Operating Lease, Monthly Rent | $ 44,000 | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Subsequent Event [Member] | |||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 5,000,000 |
Note 14 - Commitments and Con_3
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leases, Rent Expense, Total | $ 0.8 | $ 0.8 | $ 0.7 |
Note 14 - Commitments and Con_4
Note 14 - Commitments and Contingencies - Minimum Annual Future Obligations for Operating Leases (Details) | Sep. 30, 2018USD ($) |
2,019 | $ 701,837 |
2,020 | 592,268 |
2,021 | 568,250 |
2,022 | 582,456 |
2,023 | 597,017 |
Thereafter | 99,909 |
Total | $ 3,141,737 |
Note 15 - Segment Reporting (De
Note 15 - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 30, 2018 | |
Number of Reportable Segments | 2 |
Note 15 - Segment Reporting - S
Note 15 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | 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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | $ 12,284,765 | $ 11,649,528 | $ 12,573,899 | $ 10,905,795 | $ 12,095,826 | $ 11,294,756 | $ 12,989,990 | $ 12,333,174 | $ 8,249,668 | $ 10,587,187 | $ 10,060,242 | $ 9,766,167 | $ 47,413,987 | $ 48,713,746 | $ 38,663,264 |
Gross profit | 3,381,155 | $ 3,345,065 | $ 3,082,933 | $ 1,413,823 | 4,023,629 | $ 3,764,429 | $ 3,755,951 | $ 3,266,584 | 2,765,380 | $ 3,584,612 | $ 3,466,151 | $ 2,624,740 | 11,222,976 | 14,810,593 | 12,440,883 |
Operating income (loss) | (5,193,410) | 145,606 | 343,861 | ||||||||||||
Segment assets | 44,394,620 | 54,847,605 | 50,268,159 | 44,394,620 | 54,847,605 | 50,268,159 | |||||||||
Operating Segments [Member] | Cable TV [Member] | |||||||||||||||
Sales | 19,940,705 | 22,806,175 | 22,996,998 | ||||||||||||
Gross profit | 3,805,761 | 7,738,355 | 7,753,735 | ||||||||||||
Operating income (loss) | (2,570,050) | 1,834,484 | 1,478,676 | ||||||||||||
Segment assets | 18,371,530 | 24,116,395 | 25,201,697 | 18,371,530 | 24,116,395 | 25,201,697 | |||||||||
Operating Segments [Member] | Telco [Member] | |||||||||||||||
Sales | 27,522,696 | 25,994,521 | 15,800,424 | ||||||||||||
Gross profit | 7,417,215 | 7,072,238 | 4,687,148 | ||||||||||||
Operating income (loss) | (2,623,360) | (1,688,878) | (1,134,815) | ||||||||||||
Segment assets | 22,173,797 | 24,135,091 | 15,122,911 | 22,173,797 | 24,135,091 | 15,122,911 | |||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Sales | (49,414) | (86,950) | (134,158) | ||||||||||||
Gross profit | 11,222,976 | 14,810,593 | 12,440,883 | ||||||||||||
Segment Reconciling Items [Member] | |||||||||||||||
Segment assets | $ 3,849,293 | $ 6,596,119 | $ 9,943,551 | $ 3,849,293 | $ 6,596,119 | $ 9,943,551 |
Note 16 - Quarterly Results o_3
Note 16 - Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | 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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | $ 12,284,765 | $ 11,649,528 | $ 12,573,899 | $ 10,905,795 | $ 12,095,826 | $ 11,294,756 | $ 12,989,990 | $ 12,333,174 | $ 8,249,668 | $ 10,587,187 | $ 10,060,242 | $ 9,766,167 | $ 47,413,987 | $ 48,713,746 | $ 38,663,264 |
Gross profit | 3,381,155 | 3,345,065 | 3,082,933 | 1,413,823 | $ 4,023,629 | $ 3,764,429 | $ 3,755,951 | $ 3,266,584 | $ 2,765,380 | $ 3,584,612 | $ 3,466,151 | $ 2,624,740 | 11,222,976 | 14,810,593 | 12,440,883 |
Net loss | $ (706,762) | $ (259,697) | $ (1,506,699) | $ (4,846,698) | $ (7,319,856) | $ (98,116) | $ 294,163 | ||||||||
Basic (in dollars per share) | $ (0.07) | $ (0.03) | $ (0.15) | $ (0.47) | $ 0.02 | $ 0 | $ (0.01) | $ (0.03) | $ 0 | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.71) | $ (0.01) | $ 0.03 |
Diluted (in dollars per share) | $ (0.07) | $ (0.03) | $ (0.15) | $ (0.47) | $ 0.02 | $ 0 | $ (0.01) | $ (0.03) | $ 0 | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.71) | $ (0.01) | $ 0.03 |
Net income (loss) | $ 217,161 | $ 10,671 | $ (66,863) | $ (259,085) | $ 23,994 | $ 145,630 | $ 316,086 | $ (191,547) |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) - USD ($) | Dec. 27, 2018 | Jan. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Nov. 29, 2018 |
Other Payments to Acquire Businesses | $ 667,000 | $ 1,000,000 | $ 1,000,000 | |||
Net Assets of Fulton Technoligies, Inc [Member] | Scenario, Forecast [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 1,700,000 | |||||
Subsequent Event [Member] | Net Assets of Fulton Technoligies, Inc [Member] | ||||||
Other Payments to Acquire Businesses | $ 500,000 | |||||
Subsequent Event [Member] | Chief Technology Officer, Director, and Substantial Shareholder [Member] | ||||||
Deferred Gain on Sale of Property | $ 1,400,000 | |||||
Subsequent Event [Member] | Cable TV [Member] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | 10,300,000 | |||||
Disposal Group, Including Discontinued Operation, Consideration, Cah | 3,900,000 | |||||
Disposal Group, Including Discontinued Operation, Consideration, Promissory Note | $ 6,400,000 | |||||
Note Receivable, Term | 5 years | |||||
Note Receivable, Interest Rate | 6.00% |