Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | ADDVANTAGE TECHNOLOGIES GROUP INC | |
Entity Central Index Key | 0000874292 | |
Trading Symbol | aey | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 10,361,292 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Assets | ||
Cash and cash equivalents | $ 1,371,501 | $ 3,129,280 |
Restricted cash | 106,447 | |
Accounts receivable, net of allowance for doubtful accounts of $150,000 | 6,727,126 | 4,400,868 |
Unbilled revenue | 1,414,992 | |
Income tax receivable | 108,746 | 178,766 |
Inventories, net of allowance for excess and obsolete inventory of $4,850,000 and $4,965,000, respectively | 19,404,567 | 18,888,042 |
Prepaid expenses | 772,621 | 264,757 |
Other current assets | 258,209 | |
Assets held for sale | 3,666,753 | |
Total current assets | 30,164,209 | 30,528,466 |
Property and equipment, at cost: | ||
Land and buildings | 1,006,163 | 2,208,676 |
Machinery and equipment | 5,259,708 | 3,884,859 |
Leasehold improvements | 190,984 | 200,617 |
Total property and equipment, at cost | 6,456,855 | 6,294,152 |
Less: Accumulated depreciation | (3,992,053) | (4,276,024) |
Net property and equipment | 2,464,802 | 2,018,128 |
Investment in and loans to equity method investee | 49,000 | |
Intangibles, net of accumulated amortization | 6,548,748 | 6,844,398 |
Goodwill | 4,836,472 | 4,820,185 |
Other assets | 217,461 | 134,443 |
Total assets | 44,231,692 | 44,394,620 |
Current liabilities: | ||
Accounts payable | 6,612,708 | 4,657,188 |
Accrued expenses | 1,596,386 | 1,150,010 |
Notes payable – current portion | 750,000 | 2,594,185 |
Deferred gain – current portion | 194,152 | |
Other current liabilities | 739,887 | 664,374 |
Total current liabilities | 9,893,133 | 9,065,757 |
Deferred gain, less current portion | 1,701,243 | |
Other liabilities | 228,820 | 801,612 |
Total liabilities | 11,823,196 | 9,867,369 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 10,861,950 and 10,806,803 shares issued, respectively; 10,361,292 and 10,306,145 shares outstanding, respectively | 108,620 | 108,068 |
Paid in capital | (4,462,806) | (4,598,343) |
Retained earnings | 37,762,696 | 40,017,540 |
Total shareholders’ equity before treasury stock | 33,408,510 | 35,527,265 |
Less: Treasury stock, 500,658 shares, at cost | (1,000,014) | (1,000,014) |
Total shareholders’ equity | 32,408,496 | 34,527,251 |
Total liabilities and shareholders’ equity | $ 44,231,692 | $ 44,394,620 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 150,000 | $ 150,000 |
Inventories, allowance for excess and obsolete inventory | $ 4,850,000 | $ 4,965,000 |
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) | 10,861,950 | 10,806,803 |
Common stock, shares outstanding (in shares) | 10,361,292 | 10,306,145 |
Treasury stock, shares (in shares) | 500,658 | 500,658 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Sales | $ 17,273,103 | $ 11,649,528 | $ 28,545,389 | $ 23,934,293 |
Cost of sales | 13,709,089 | 8,304,463 | 22,139,813 | 17,208,073 |
Gross profit | 3,564,014 | 3,345,065 | 6,405,576 | 6,726,220 |
Operating, selling, general and administrative expenses | 4,767,843 | 3,429,282 | 8,564,523 | 7,076,105 |
Loss from operations | (1,203,829) | (84,217) | (2,158,947) | (349,885) |
Other expense: | ||||
Income (loss) from equity method investment | 55,000 | (258,558) | 55,000 | (258,558) |
Other expense | (43,259) | (43,259) | ||
Interest expense | (19,775) | (45,922) | (44,638) | (142,016) |
Total other expense, net | (8,034) | (304,480) | (32,897) | (400,574) |
Loss before income taxes | (1,211,863) | (388,697) | (2,191,844) | (750,459) |
Provision (benefit) for income taxes | 4,000 | (129,000) | 63,000 | 216,000 |
Net loss | $ (1,215,863) | $ (259,697) | $ (2,254,844) | $ (966,459) |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.12) | $ (0.03) | $ (0.22) | $ (0.09) |
Diluted (in dollars per share) | $ (0.12) | $ (0.03) | $ (0.22) | $ (0.09) |
Shares used in per share calculation: | ||||
Basic (in shares) | 10,361,292 | 10,252,712 | 10,361,292 | 10,239,353 |
Diluted (in shares) | 10,361,292 | 10,252,712 | 10,361,292 | 10,239,353 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
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) | (706,762) | (706,762) | |||
Share based compensation expense | 12,328 | 12,328 | |||
Balance (in shares) at Dec. 31, 2017 | 10,726,653 | ||||
Balance at Dec. 31, 2017 | $ 107,267 | (4,734,138) | 46,630,634 | (1,000,014) | 41,003,749 |
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) | (966,459) | ||||
Balance (in shares) at Mar. 31, 2018 | 10,806,803 | ||||
Balance at Mar. 31, 2018 | $ 108,068 | (4,619,408) | 46,370,937 | (1,000,014) | 40,859,583 |
Balance (in shares) at Dec. 31, 2017 | 10,726,653 | ||||
Balance at Dec. 31, 2017 | $ 107,267 | (4,734,138) | 46,630,634 | (1,000,014) | 41,003,749 |
Net income (loss) | (259,697) | (259,697) | |||
Restricted stock issuance (in shares) | 80,150 | ||||
Restricted stock issuance | $ 801 | 104,199 | 105,000 | ||
Share based compensation expense | 10,531 | 10,531 | |||
Balance (in shares) at Mar. 31, 2018 | 10,806,803 | ||||
Balance at Mar. 31, 2018 | $ 108,068 | (4,619,408) | 46,370,937 | (1,000,014) | 40,859,583 |
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 |
Net income (loss) | (1,038,981) | (1,038,981) | |||
Restricted stock issuance (in shares) | 55,147 | ||||
Restricted stock issuance | $ 552 | 74,448 | 75,000 | ||
Share based compensation expense | 28,070 | 28,070 | |||
Balance (in shares) at Dec. 31, 2018 | 10,861,950 | ||||
Balance at Dec. 31, 2018 | $ 108,620 | (4,495,825) | 38,978,559 | (1,000,014) | 33,591,340 |
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 |
Net income (loss) | (2,254,844) | ||||
Balance (in shares) at Mar. 31, 2019 | 10,861,950 | ||||
Balance at Mar. 31, 2019 | $ 108,620 | (4,462,806) | 37,762,696 | (1,000,014) | 32,408,496 |
Balance (in shares) at Dec. 31, 2018 | 10,861,950 | ||||
Balance at Dec. 31, 2018 | $ 108,620 | (4,495,825) | 38,978,559 | (1,000,014) | 33,591,340 |
Net income (loss) | (1,215,863) | (1,215,863) | |||
Share based compensation expense | 33,019 | 33,019 | |||
Balance (in shares) at Mar. 31, 2019 | 10,861,950 | ||||
Balance at Mar. 31, 2019 | $ 108,620 | $ (4,462,806) | $ 37,762,696 | $ (1,000,014) | $ 32,408,496 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net loss | $ (2,254,844) | $ (966,459) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 246,026 | 197,352 |
Amortization | 539,650 | 626,622 |
Provision for excess and obsolete inventories | 74,958 | 60,711 |
Charge for lower of cost or net realizable value for inventories | 27,026 | |
Gain on disposal of property and equipment | (46,048) | (8,762) |
Deferred income tax provision | 215,000 | |
Share based compensation expense | 106,089 | 75,360 |
(Gain) loss from equity method investment | (55,000) | 258,558 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,498,120) | 328,485 |
Unbilled revenue | (935,676) | |
Income tax receivable\payable | 70,020 | 4,859 |
Inventories | (682,670) | (93,792) |
Prepaid expenses | (395,577) | (54,148) |
Other assets | (48,260) | 2,959 |
Accounts payable | 705,628 | 982,617 |
Accrued expenses | (8,674) | (410,396) |
Other liabilities | (7,923) | 35,679 |
Net cash provided by (used in) operating activities | (4,190,421) | 1,281,671 |
Investing Activities | ||
Acquisition of net operating assets | (1,264,058) | |
Loan repayment from (investment in and loans to) equity method investee | 104,000 | (259,854) |
Purchases of property and equipment | (139,668) | (35,138) |
Disposals of property and equipment | 23,900 | |
Proceeds from sale of real estate | 6,350,000 | |
Net cash provided by (used in) investing activities | 5,050,274 | (271,092) |
Financing Activities | ||
Change in revolving line of credit | 750,000 | |
Guaranteed payments for acquisition of business | (667,000) | (667,000) |
Payments on notes payable | (2,594,185) | (3,429,935) |
Net cash used in financing activities | (2,511,185) | (4,096,935) |
Net decrease in cash and cash equivalents and restricted cash | (1,651,332) | (3,086,356) |
Cash and cash equivalents and restricted cash at beginning of period | 3,129,280 | 3,972,723 |
Cash and cash equivalents and restricted cash at end of period | 1,477,948 | 886,367 |
Supplemental cash flow information: | ||
Cash paid for interest | 92,939 | 129,655 |
Cash paid for income taxes | $ 2,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Accounting Policies | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1 Accounting Policies Basis of presentation The consolidated condensed financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company” or “we”). Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Wireless Infrastructure Services (“Wireless”), Telecommunications (“Telco”), and Cable Television (“Cable TV”). 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, 2018. Reclassification The Company adopted Accounting Standards Update (“ASU”) 2016 15: 230 October 1, 2018. $667,000 six March 31, 2019. no Recently Issued Accounting Standards In February 2016, 2016 02: 842 twelve December 15, 2018 2016 02 not $6.7 In June 2016, 2016 13: 326 2016 13 December 15, 2019, may December 15, 2018, |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 2 On October 1, 2018, 2014 09, 606 no not The Company acquired the net assets of Fulton Technologies, Inc. (“Fulton”) and Mill City Communications, Inc. (“Mill City”), wireless infrastructure services businesses, on January 4, 2019 ( 3 three seven The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for its products, repair services or wireless infrastructure services. The following steps are applied in determining the amount and timing of revenue recognition: 1. Identification of a contract with a customer is a sales arrangement involving a purchase order issued by the customer stating the goods or services to be transferred. Payment terms are generally due in net 30 not 2. Identification of performance obligations in the sales arrangement which is predominantly the promise to transfer goods, repair services, recycled items or wireless infrastructure services to the customer. 3. Determination of the transaction price which is specified in the purchase order based on product or services pricing negotiated between the Company and the customer. Wireless infrastructure services transaction prices are based on the Master Service Agreement contracts between the Company and the wireless customers. 4. Allocation of the transaction price to performance obligations. Substantially all the contracts are single performance obligations and the allocated purchase price is the transaction price. 5. Recognition of revenue occurs upon the satisfaction of the performance obligation and transfer of control. Transfer of control by the Telco and Cable TV segments generally occurs at the point the Company ships the sold or repaired product from its warehouse locations. Transfer of control for the Wireless segment generally occurs over time as the Company installs or decommissions the equipment on the cell towers or performs other services. To measure progress towards completion on performance obligations for which revenue is recognized over time the Company utilizes an input method based upon a ratio of direct labor costs incurred to date to management’s estimate of the total labor costs to be incurred on each contract. The Company has established the systems and procedures to develop the estimates required to account for performance obligations over time. These procedures include monthly review by management of costs incurred, progress towards completion, changes in estimates of costs yet to be incurred and execution by subcontractors. The Company’s principal revenues are from Wireless services, sales of Telco and Cable TV equipment, Telco recycled equipment, and Cable TV repair services. Sales are primarily to customers in the United States. International sales are made by the Telco and Cable TV segments to customers in Central America, South America and, to a substantially lesser extent, other international regions that utilize the same technology which totaled approximately $1.8 $3.7 six March 31, 2019 2018, The Company’s customers include wireless carriers, wireless equipment providers, multiple system operators, resellers and direct sales to end-user customers. Sales to the Company’s largest customer totaled approximately 7% Our revenues by type were as follows: Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Wireless services revenue $ 4,217,924 $ ‒ $ 4,217,924 $ ‒ Equipment sales: Wireless ‒ ‒ ‒ ‒ Telco 8,282,486 6,845,571 14,892,128 12,536,891 Cable TV 3,949,929 4,130,486 8,002,068 9,244,777 Intersegment (3,905 ) (2,130 ) (44,147 ) (2,310 ) Telco recycle revenue 393,434 160,989 634,131 928,210 Cable TV repair revenue 433,235 514,612 843,285 1,226,725 Total revenues $ 17,273,103 $ 11,649,528 $ 28,545,389 $ 23,934,293 With the acquisition of Fulton, the timing of revenue recognition results in contract assets and contract liabilities. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities. Contract assets and contract liabilities are included in Unbilled revenue and Accrued expenses, respectively, in the Consolidated Condensed Balance Sheets. At March 31, 2019 $1.4 |
Note 3 - Acquisition
Note 3 - Acquisition | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 3 – Acquisition Purchase of Net Assets of Fulton Technologies, Inc. and Mill City Communications, Inc. On December 27, 2018, January 4, 2019. The purchase price for the net assets of Fulton and Mill City was $1.3 January 4, 2019, The Company has one may may The following summarizes the preliminary purchase price allocation of the fair value of the assets acquired and the liabilities assumed at January 4, 2019: Assets acquired: (in thousands) Accounts receivable $ 1,307 Prepaid expenses 341 Property and equipment, net 1,201 Intangible assets 244 Goodwill 16 Other assets 35 Total assets acquired 3,144 Liabilities assumed: Accounts payable 1,250 Accrued expenses 455 Capital lease obligation 175 Total liabilities assumed 1,880 Net purchase price $ 1,264 The acquired intangible asset of approximately $0.2 |
Note 4 - Sale and Leaseback of
Note 4 - Sale and Leaseback of Assets | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Assets Held for Sale [Text Block] | Note 4 – Sale and Leaseback of Assets In October 2018, $5,000,000 November 29, 2018, $1.4 In connection with the sale of the Broken Arrow, Oklahoma facility, Tulsat, which is one ten $528,000 $1.4 In March 2019, $1,350,000. one ten $128,250 $0.6 |
Note 5 - Disposition of Assets
Note 5 - Disposition of Assets | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 5 – Disposition of Assets In December 2018, $10.3 April 2019, May 29, 2019 $3.9 $1.4 4 $6.4 five 6.0%. $3.3 $1.3 $0.6 4 |
Note 6 - Accounts Receivable Ag
Note 6 - Accounts Receivable Agreements | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 6 – Ac counts Receivable Agreements The Company’s Wireless segment has entered into various agreements, one third third 90% 10% third 10% March 31, 2019, third $0.1 may $0.9 March 31, 2019. not March 31, 2019 For the six March 31, 2019, $2.9 1.75% 2.0% $43 three six March 31, 2019 The Company accounts for these transactions in accordance with ASC 860, 860" 860 |
Note 7 - Inventories
Note 7 - Inventories | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 7 – Inventories Inventories at March 31, 2019 September 30, 2018 March 31, 2019 September 30, 2018 New equipment: Cable TV $ 12,247,466 $ 12,594,138 Telco 2,002,539 1,371,545 Refurbished and used equipment: Cable TV 2,791,141 2,981,413 Telco 7,213,421 6,905,946 Allowance for excess and obsolete inventory: Cable TV (4,050,000 ) (4,150,000 ) Telco (800,000 ) (815,000 ) Total inventories $ 19,404,567 $ 18,888,042 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 $0.1 $4.1 March 31, 2019. In the six March 31, 2019 2018, not not $0.8 March 31, 2019. |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 8 – Intangible Assets As a result of the Fulton and Mill City acquisition, the Company has recorded an additional intangible asset for customer relationships of $0.2 3 March 31, 2019 September 30, 2018 March 31, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,127,589 ) $ 5,268,411 Trade name – 10 years 2,119,000 (860,330 ) 1,258,670 Non-compete agreements – 3 years 374,000 (352,333 ) 21,667 Total intangible assets $ 10,889,000 $ (4,340,252 ) $ 6,548,748 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 |
Note 9 - Notes Payable and Line
Note 9 - Notes Payable and Line of Credit | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9 – Notes Payable and Line of Credit New Credit Agreement In December 2018, $2.5 December 17, 2019. 0.75% 6.25% March 31, 2019), not 1.25 1.0 March 31, 2019, $750,000 – $2.5 80% 25% $2.5 March 31, 2019. Forbearance Agreement On May 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 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. The Company had two first $0.6 October 31, 2018, $15,334 30 1.4% 3.66% October 31, 2018). The second $1.5 October 31, 2018, $118,809. 4.40%. During the first 2019, two $2.1 $0.5 Since the Company extinguished all of its outstanding term loans and line of credit outstanding under the forbearance agreement in the first 2019, no Fair Value of Debt The carrying value of the Company’s variable-rate line of credit approximates its fair value since the interest rate fluctuates periodically based on a floating interest rate. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 10 – Earnings Per Share Basic earnings per share are based on the sum of the average number of common shares outstanding and issuable, restricted and deferred shares. Diluted earnings per share include any dilutive effect of stock options and restricted stock. In computing the diluted weighted average shares, the average share price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method from the exercise of options. Basic and diluted earnings per share for the six March 31, 2019 2018 Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net loss attributable to common shareholders $ (1,215,863 ) $ (259,697 ) $ (2,254,844 ) $ (966,459 ) Basic weighted average shares 10,361,292 10,252,712 10,361,292 10,239,353 Effect of dilutive securities: Stock options – – – – Diluted weighted average shares 10,361,292 10,252,712 10,361,292 10,239,353 Loss per common share: Basic $ (0.12 ) $ (0.03 ) $ (0.22 ) $ (0.09 ) Diluted $ (0.12 ) $ (0.03 ) $ (0.22 ) $ (0.09 ) The table below includes information related to stock options that were outstanding at the end of each respective three six March 31, three six March 31, 2019 2018. Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options excluded 620,000 645,000 620,000 645,000 Weighted average exercise price of stock options $ 1.83 $ 2.59 $ 1.83 $ 2.59 Average market price of common stock $ 1.40 $ 1.39 $ 1.37 $ 1.43 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 1 1 – Stock-Based Compensation Plan Information The 2015 may not At March 31, 2019, 1,100,415 157,154 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 March 31, 2019 three Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2018 290,000 $ 2.40 Granted 330,000 $ 1.33 Exercised – – Expired – – Forfeited ‒ ‒ Outstanding at March 31, 2019 620,000 $ 1.83 Exercisable at March 31, 2019 426,667 $ 2.00 The Company granted 330,000 six March 31, 2019. 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 six March 31, 2019 Six Months Ended March 31, 2019 Estimated fair value of options at grant date $ 132,620 Black-Scholes model assumptions: Average expected life (years) 5 Average expected volatility factor 28 % Average risk-free interest rate 3.0 % Average expected dividends yield – Compensation expense related to unvested stock options recorded for the six March 31, 2019 Six Months Ended March 31, 2019 Fiscal year 2017 grants $ 9,188 Fiscal year 2019 grants $ 51,901 The Company records compensation expense over the vesting term of the related options. At March 31, 2019, not $94,999. Restricted Stock The Company granted restricted stock in October 2018 55,147 20% first first March 2018 80,150 12 12 $105,000, 12 |
Note 12 - Segment Reporting
Note 12 - Segment Reporting | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 2 – Segment Reporting The Company is reporting its financial performance based on its external reporting segments: Cable Television, Telecommunications and Wireless Infrastructure Services. These reportable segments are described below. Wireless Infrastruture Services (“ Wireless ”) On January 4, 2019, four 5G. Telecommunications (“Telco”) The Company’s Telco segment sells new and used telecommunications networking equipment, including both central office and customer premise equipment, to its customer base of telecommunications providers, enterprise customers and resellers located primarily in North America. This segment also offers its customers repair and testing services for telecommunications networking equipment. In addition, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program. 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. 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 Six Months Ended March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Sales Wireless $ 4,217,924 $ ‒ $ 4,217,924 $ ‒ Telco 8,675,921 7,006,561 15,526,260 13,465,101 Cable TV 4,383,163 4,645,097 8,845,352 10,471,502 Intercompany (3,905 ) (2,130 ) (44,147 ) (2,310 ) Total sales $ 17,273,103 $ 11,649,528 $ 28,545,389 $ 23,934,293 Gross profit Wireless $ 83,942 $ ‒ $ 83,942 $ ‒ Telco 2,188,094 1,805,683 3,911,483 3,985,711 Cable TV 1,291,978 1,539,382 2,410,151 2,740,509 Total gross profit $ 3,564,014 $ 3,345,065 $ 6,405,576 $ 6,726,220 Income (loss) from operations Wireless $ (1,114,326 ) $ ‒ $ (1,114,326 ) $ ‒ Telco 25,977 (380,370 ) (608,760 ) (457,538 ) Cable TV (115,480 ) 296,153 (435,861 ) 107,653 Total loss from operations $ (1,203,829 ) $ (84,217 ) $ (2,158,947 ) $ (349,885 ) March 31, 2019 September 30, 2018 Segment assets Wireless $ 4,411,887 $ ‒ Telco 23,885,373 22,173,797 Cable TV 13,191,696 18,371,530 Non-allocated 2,742,736 3,849,293 Total assets $ 44,231,692 $ 44,394,620 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
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 Wireless Infrastructure Services (“Wireless”), Telecommunications (“Telco”), and Cable Television (“Cable TV”). 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, 2018. |
Reclassification, Policy [Policy Text Block] | Reclassification The Company adopted Accounting Standards Update (“ASU”) 2016 15: 230 October 1, 2018. $667,000 six March 31, 2019. no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards In February 2016, 2016 02: 842 twelve December 15, 2018 2016 02 not $6.7 In June 2016, 2016 13: 326 2016 13 December 15, 2019, may December 15, 2018, |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Wireless services revenue $ 4,217,924 $ ‒ $ 4,217,924 $ ‒ Equipment sales: Wireless ‒ ‒ ‒ ‒ Telco 8,282,486 6,845,571 14,892,128 12,536,891 Cable TV 3,949,929 4,130,486 8,002,068 9,244,777 Intersegment (3,905 ) (2,130 ) (44,147 ) (2,310 ) Telco recycle revenue 393,434 160,989 634,131 928,210 Cable TV repair revenue 433,235 514,612 843,285 1,226,725 Total revenues $ 17,273,103 $ 11,649,528 $ 28,545,389 $ 23,934,293 |
Note 3 - Acquisition (Tables)
Note 3 - Acquisition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Assets acquired: (in thousands) Accounts receivable $ 1,307 Prepaid expenses 341 Property and equipment, net 1,201 Intangible assets 244 Goodwill 16 Other assets 35 Total assets acquired 3,144 Liabilities assumed: Accounts payable 1,250 Accrued expenses 455 Capital lease obligation 175 Total liabilities assumed 1,880 Net purchase price $ 1,264 |
Note 7 - Inventories (Tables)
Note 7 - Inventories (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2019 September 30, 2018 New equipment: Cable TV $ 12,247,466 $ 12,594,138 Telco 2,002,539 1,371,545 Refurbished and used equipment: Cable TV 2,791,141 2,981,413 Telco 7,213,421 6,905,946 Allowance for excess and obsolete inventory: Cable TV (4,050,000 ) (4,150,000 ) Telco (800,000 ) (815,000 ) Total inventories $ 19,404,567 $ 18,888,042 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | March 31, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,127,589 ) $ 5,268,411 Trade name – 10 years 2,119,000 (860,330 ) 1,258,670 Non-compete agreements – 3 years 374,000 (352,333 ) 21,667 Total intangible assets $ 10,889,000 $ (4,340,252 ) $ 6,548,748 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 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net loss attributable to common shareholders $ (1,215,863 ) $ (259,697 ) $ (2,254,844 ) $ (966,459 ) Basic weighted average shares 10,361,292 10,252,712 10,361,292 10,239,353 Effect of dilutive securities: Stock options – – – – Diluted weighted average shares 10,361,292 10,252,712 10,361,292 10,239,353 Loss per common share: Basic $ (0.12 ) $ (0.03 ) $ (0.22 ) $ (0.09 ) Diluted $ (0.12 ) $ (0.03 ) $ (0.22 ) $ (0.09 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options excluded 620,000 645,000 620,000 645,000 Weighted average exercise price of stock options $ 1.83 $ 2.59 $ 1.83 $ 2.59 Average market price of common stock $ 1.40 $ 1.39 $ 1.37 $ 1.43 |
Note 11 - Stock-based Compens_2
Note 11 - Stock-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Wtd. Avg. Ex. Price Outstanding at September 30, 2018 290,000 $ 2.40 Granted 330,000 $ 1.33 Exercised – – Expired – – Forfeited ‒ ‒ Outstanding at March 31, 2019 620,000 $ 1.83 Exercisable at March 31, 2019 426,667 $ 2.00 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended March 31, 2019 Estimated fair value of options at grant date $ 132,620 Black-Scholes model assumptions: Average expected life (years) 5 Average expected volatility factor 28 % Average risk-free interest rate 3.0 % Average expected dividends yield – |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Six Months Ended March 31, 2019 Fiscal year 2017 grants $ 9,188 Fiscal year 2019 grants $ 51,901 |
Note 12 - Segment Reporting (Ta
Note 12 - Segment Reporting (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Sales Wireless $ 4,217,924 $ ‒ $ 4,217,924 $ ‒ Telco 8,675,921 7,006,561 15,526,260 13,465,101 Cable TV 4,383,163 4,645,097 8,845,352 10,471,502 Intercompany (3,905 ) (2,130 ) (44,147 ) (2,310 ) Total sales $ 17,273,103 $ 11,649,528 $ 28,545,389 $ 23,934,293 Gross profit Wireless $ 83,942 $ ‒ $ 83,942 $ ‒ Telco 2,188,094 1,805,683 3,911,483 3,985,711 Cable TV 1,291,978 1,539,382 2,410,151 2,740,509 Total gross profit $ 3,564,014 $ 3,345,065 $ 6,405,576 $ 6,726,220 Income (loss) from operations Wireless $ (1,114,326 ) $ ‒ $ (1,114,326 ) $ ‒ Telco 25,977 (380,370 ) (608,760 ) (457,538 ) Cable TV (115,480 ) 296,153 (435,861 ) 107,653 Total loss from operations $ (1,203,829 ) $ (84,217 ) $ (2,158,947 ) $ (349,885 ) March 31, 2019 September 30, 2018 Segment assets Wireless $ 4,411,887 $ ‒ Telco 23,885,373 22,173,797 Cable TV 13,191,696 18,371,530 Non-allocated 2,742,736 3,849,293 Total assets $ 44,231,692 $ 44,394,620 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Accounting Policies (Details Textual) - USD ($) | 6 Months Ended | |
Mar. 31, 2019 | Oct. 01, 2019 | |
Accounting Standards Update 2016-15 [Member] | ||
Reclassification of Guaranteed Payments for Business Acquisitions from Investing Activities to Financing Activities | $ 667,000 | |
Accounting Standards Update 2016-02 [Member] | Forecast [Member] | ||
Operating Lease, Right-of-Use Asset | $ 6,700,000 | |
Operating Lease, Liability, Total | $ 6,700,000 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 17,273,103 | $ 11,649,528 | $ 28,545,389 | $ 23,934,293 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | ||||
Concentration Risk, Percentage | 7.00% | |||
International Regions Excluding Central America and South America [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,400,000 | $ 1,800,000 | $ 3,700,000 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Sales | $ 17,273,103 | $ 11,649,528 | $ 28,545,389 | $ 23,934,293 |
Operating Segments [Member] | Wireless [Member] | ||||
Sales | 4,217,924 | 4,217,924 | ||
Operating Segments [Member] | Telco [Member] | ||||
Sales | 8,675,921 | 7,006,561 | 15,526,260 | 13,465,101 |
Operating Segments [Member] | Cable TV [Member] | ||||
Sales | 4,383,163 | 4,645,097 | 8,845,352 | 10,471,502 |
Intersegment Eliminations [Member] | ||||
Sales | (3,905) | (2,130) | (44,147) | (2,310) |
Wireless Services [Member] | ||||
Sales | 4,217,924 | 4,217,924 | ||
Equipment Sales [Member] | Operating Segments [Member] | Wireless [Member] | ||||
Sales | ||||
Equipment Sales [Member] | Operating Segments [Member] | Telco [Member] | ||||
Sales | 8,282,486 | 6,845,571 | 14,892,128 | 12,536,891 |
Equipment Sales [Member] | Operating Segments [Member] | Cable TV [Member] | ||||
Sales | 3,949,929 | 4,130,486 | 8,002,068 | 9,244,777 |
Equipment Sales [Member] | Intersegment Eliminations [Member] | ||||
Sales | (3,905) | (2,130) | (44,147) | (2,310) |
Telco [Member] | ||||
Sales | 393,434 | 160,989 | 634,131 | 928,210 |
Cable TV [Member] | ||||
Sales | $ 433,235 | $ 514,612 | $ 843,285 | $ 1,226,725 |
Note 3 - Acquisition (Details T
Note 3 - Acquisition (Details Textual) - Fulton and Mill City [Member] $ in Millions | Jan. 04, 2019USD ($) |
Business Combination, Consideration Transferred, Total | $ 1.3 |
Customer Relationships [Member] | |
Finite-lived Intangible Assets Acquired | $ 0.2 |
Note 3 - Acquisition - Assets A
Note 3 - Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) | Mar. 31, 2019 | Jan. 04, 2019 | Sep. 30, 2018 |
Goodwill | $ 4,836,472 | $ 4,820,185 | |
Fulton and Mill City [Member] | |||
Accounts receivable | $ 1,307,000 | ||
Prepaid expenses | 341,000 | ||
Property and equipment, net | 1,201,000 | ||
Intangible assets | 244,000 | ||
Goodwill | 16,000 | ||
Other assets | 35,000 | ||
Total assets acquired | 3,144,000 | ||
Accounts payable | 1,250,000 | ||
Accrued expenses | 455,000 | ||
Capital lease obligation | 175,000 | ||
Total liabilities assumed | 1,880,000 | ||
Net purchase price | $ 1,264,000 |
Note 4 - Sale and Leaseback o_2
Note 4 - Sale and Leaseback of Assets (Details Textual) - USD ($) | Nov. 29, 2018 | Sep. 28, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 23,900 | ||||
Proceeds from Sale of Buildings | $ 6,350,000 | ||||
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 | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Cable TV Ten Year Lease With David Chymiak LLC [Member] | |||||
Lessee, Operating Lease, Term of Contract | 10 years | 10 years | |||
Sale Leaseback Transaction, Annual Rental Payments | $ 128,250 | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Sedalia, Missouri Building [Member] | |||||
Deferred Gain on Sale of Property | 600,000 | $ 600,000 | |||
Proceeds from Sale of Buildings | $ 1,350,000 | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | Tulsat [Member] | |||||
Lessee, Operating Lease, Term of Contract | 10 years | ||||
Lessee, Operating Lease, Yearly Rent | $ 528,000 |
Note 5 - Disposition of Assets
Note 5 - Disposition of Assets (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Nov. 29, 2018 | |
Proceeds from Sale of Buildings | $ 6,350,000 | ||||
Chief Technology Officer, Director, and Substantial Shareholder [Member] | |||||
Deferred Gain on Sale of Property | $ 1,400,000 | ||||
Sedalia, Missouri Building [Member] | Chief Technology Officer, Director, and Substantial Shareholder [Member] | |||||
Proceeds from Sale of Buildings | $ 1,350,000 | ||||
Deferred Gain on Sale of Property | $ 600,000 | $ 600,000 | |||
Cable TV Business Segment [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,300,000 | ||||
Disposal Group, Including Discontinued Operation, Consideration, Cash | 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% | ||||
Disposal Group, Including Discontinued Operation, Gain (Loss) on Disposal, Pretax | $ 3,300,000 | ||||
Deferred Gain on Sale of Property | $ 1,300,000 |
Note 6 - Accounts Receivable _2
Note 6 - Accounts Receivable Agreements (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Restricted Cash, Total | $ 106,447 | $ 106,447 | |||
Cost of Goods and Services Sold, Total | $ 13,709,089 | $ 8,304,463 | $ 22,139,813 | $ 17,208,073 | |
Certain Receivables to Unrelated Third-parties [Member] | |||||
Accounts Receivable Agreement, Percent of Sold Receivables Advanced | 90.00% | 90.00% | |||
Accounts Receivable Agreement, Reserve of Sold Receivables | 10.00% | 10.00% | |||
Restricted Cash, Total | $ 100,000 | $ 100,000 | |||
Accounts Receivable, after Allowance for Credit Loss, Total | 900,000 | 900,000 | |||
Proceeds from Collection of Finance Receivables | 2,900,000 | ||||
Certain Receivables to Unrelated Third-parties [Member] | Other Expense [Member] | |||||
Cost of Goods and Services Sold, Total | $ 43,000 | $ 43,000 | |||
Certain Receivables to Unrelated Third-parties [Member] | Minimum [Member] | |||||
Receivables, Cost of Sales, Percent | 1.75% | ||||
Certain Receivables to Unrelated Third-parties [Member] | Maximum [Member] | |||||
Receivables, Cost of Sales, Percent | 2.00% |
Note 7 - Inventories (Details T
Note 7 - Inventories (Details Textual) - USD ($) | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Inventory Write-down | $ 74,958 | $ 60,711 | |
Inventory Valuation Reserves, Ending Balance | 4,850,000 | $ 4,965,000 | |
Cable TV [Member] | |||
Inventory Write-down | 100,000 | ||
Inventory Valuation Reserves, Ending Balance | 4,050,000 | 4,150,000 | |
Telco [Member] | |||
Inventory Write-down | 0 | $ 0 | |
Inventory Valuation Reserves, Ending Balance | $ 800,000 | $ 815,000 |
Note 7 - Inventories - Schedule
Note 7 - Inventories - Schedule of Inventory (Details) - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Inventory Valuation Reserve | $ (4,850,000) | $ (4,965,000) |
Inventories, net of allowance for excess and obsolete inventory of $4,850,000 and $4,965,000, respectively | 19,404,567 | 18,888,042 |
Cable TV [Member] | ||
Inventory Valuation Reserve | (4,050,000) | (4,150,000) |
Cable TV [Member] | New Inventory [Member] | ||
Inventory, Gross | 12,247,466 | 12,594,138 |
Cable TV [Member] | Refurbished and Used Inventory [Member] | ||
Inventory, Gross | 2,791,141 | 2,981,413 |
Telco [Member] | ||
Inventory Valuation Reserve | (800,000) | (815,000) |
Telco [Member] | New Inventory [Member] | ||
Inventory, Gross | 2,002,539 | 1,371,545 |
Telco [Member] | Refurbished and Used Inventory [Member] | ||
Inventory, Gross | $ 7,213,421 | $ 6,905,946 |
Note 8 - Intangible Assets (Det
Note 8 - Intangible Assets (Details Textual) $ in Millions | Jan. 04, 2019USD ($) |
Customer Relationships [Member] | Fulton and Mill City [Member] | |
Finite-lived Intangible Assets Acquired | $ 0.2 |
Note 8 - Intangible Assets - Sc
Note 8 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Gross | $ 10,889,000 | $ 10,645,000 |
Accumulated Amortization | (4,340,252) | (3,800,602) |
Net | 6,548,748 | 6,844,398 |
Customer Relationships [Member] | ||
Gross | 8,396,000 | 8,152,000 |
Accumulated Amortization | (3,127,589) | (2,713,890) |
Net | 5,268,411 | 5,438,110 |
Trade Names [Member] | ||
Gross | 2,119,000 | 2,119,000 |
Accumulated Amortization | (860,330) | (754,380) |
Net | 1,258,670 | 1,364,620 |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 374,000 |
Accumulated Amortization | (352,333) | (332,332) |
Net | $ 21,667 | $ 41,668 |
Note 8 - Intangible Assets - _2
Note 8 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Sep. 30, 2018 | |
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 |
Noncompete Agreements [Member] | ||
Finite-lived intangible asset, useful life (Year) | 3 years | 3 years |
Note 9 - Notes Payable and Li_2
Note 9 - Notes Payable and Line of Credit (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Nov. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($) | |
Number of Term Loans Outstanding | 2 | |||
Term Loan [Member] | ||||
Extinguishment of Debt, Amount | $ 2,100,000 | |||
Credit and Term Loan Agreement [Member] | ||||
Fixed Charge Leverage Ratio, Maximum Requirement | 2.5 | |||
Credit and Term Loan Agreement [Member] | Term Loan 1 [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.66% | |||
Loans Payable, Total | $ 600,000 | |||
Debt Instrument, Periodic Payment, Principal | 15,334 | |||
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] | London Interbank Offered Rate (LIBOR) [Member] | Term Loan 1 [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |||
Revolving Credit Facility [Member] | New Credit Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | |||
Fixed Charge Leverage Ratio, Maximum Requirement | 1.25 | |||
Long-term Line of Credit, Total | $ 750,000 | |||
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% | |||
Line of Credit Facility, Current Borrowing Capacity | $ 2,500,000 | |||
Revolving Credit Facility [Member] | New Credit Agreement [Member] | Prime Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Revolving Credit Facility [Member] | Credit and Term Loan Agreement [Member] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 500,000 |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss attributable to common shareholders | $ (1,215,863) | $ (259,697) | $ (2,254,844) | $ (966,459) |
Basic weighted average shares (in shares) | 10,361,292 | 10,252,712 | 10,361,292 | 10,239,353 |
Stock options (in shares) | ||||
Diluted (in shares) | 10,361,292 | 10,252,712 | 10,361,292 | 10,239,353 |
Basic (in dollars per share) | $ (0.12) | $ (0.03) | $ (0.22) | $ (0.09) |
Diluted (in dollars per share) | $ (0.12) | $ (0.03) | $ (0.22) | $ (0.09) |
Note 10 - Earnings Per Share _2
Note 10 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options excluded (in shares) | 620,000 | 645,000 | 620,000 | 645,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 1.83 | $ 2.59 | $ 1.83 | $ 2.59 |
Average market price of common stock (in dollars per share) | $ 1.40 | $ 1.39 | $ 1.37 | $ 1.43 |
Note 11 - Stock-based Compens_3
Note 11 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
Oct. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 330,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 94,999 | ||
Share-based Payment Arrangement, 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 | 330,000 | ||
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] | Share-based Payment Arrangement, 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] | Share-based Payment Arrangement, 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 | 55,147 | 80,150 | |
Restricted Stock, Vesting Percentage Per Year | 20.00% | ||
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 | 157,154 |
Note 11 - Stock-based Compens_4
Note 11 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) | 6 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Outstanding (in shares) | shares | 290,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 2.40 |
Granted (in shares) | shares | 330,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 1.33 |
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 | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | |
Outstanding (in shares) | shares | 620,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 1.83 |
Exercisable (in shares) | shares | 426,667 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 2 |
Note 11 - Stock-based Compens_5
Note 11 - Stock-based Compensation - Estimated Fair Value of Stock Options (Details) - Share-based Payment Arrangement, Option [Member] | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Estimated fair value of options at grant date | $ 132,620 |
Average expected life (years) (Year) | 5 years |
Average expected volatility factor | 28.00% |
Average risk-free interest rate | 3.00% |
Average expected dividends yield |
Note 11 - Stock-based Compens_6
Note 11 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Share-based Payment Arrangement, Option [Member] | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Fiscal Year 2017 Grants [Member] | |
Compensation expense | $ 9,188 |
Fiscal Year 2019 [Member] | |
Compensation expense | $ 51,901 |
Note 12 - Segment Reporting - S
Note 12 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Sales | $ 17,273,103 | $ 11,649,528 | $ 28,545,389 | $ 23,934,293 | |
Gross profit | 3,564,014 | 3,345,065 | 6,405,576 | 6,726,220 | |
Operating income (loss) | (1,203,829) | (84,217) | (2,158,947) | (349,885) | |
Segment assets | 44,231,692 | 44,231,692 | $ 44,394,620 | ||
Operating Segments [Member] | Wireless [Member] | |||||
Sales | 4,217,924 | 4,217,924 | |||
Gross profit | 83,942 | 83,942 | |||
Operating income (loss) | (1,114,326) | (1,114,326) | |||
Segment assets | 4,411,887 | 4,411,887 | |||
Operating Segments [Member] | Telco [Member] | |||||
Sales | 8,675,921 | 7,006,561 | 15,526,260 | 13,465,101 | |
Gross profit | 2,188,094 | 1,805,683 | 3,911,483 | 3,985,711 | |
Operating income (loss) | 25,977 | (380,370) | (608,760) | (457,538) | |
Segment assets | 23,885,373 | 23,885,373 | 22,173,797 | ||
Operating Segments [Member] | Cable TV [Member] | |||||
Sales | 4,383,163 | 4,645,097 | 8,845,352 | 10,471,502 | |
Gross profit | 1,291,978 | 1,539,382 | 2,410,151 | 2,740,509 | |
Operating income (loss) | (115,480) | 296,153 | (435,861) | 107,653 | |
Segment assets | 13,191,696 | 13,191,696 | 18,371,530 | ||
Intersegment Eliminations [Member] | |||||
Sales | (3,905) | $ (2,130) | (44,147) | $ (2,310) | |
Segment Reconciling Items [Member] | |||||
Segment assets | $ 2,742,736 | $ 2,742,736 | $ 3,849,293 |