Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
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 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Entity Interactive Data Current | Yes |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | ||
Cash and cash equivalents | $ 608,105 | $ 1,242,143 |
Restricted cash | 296,174 | 351,909 |
Accounts receivable, net of allowance for doubtful accounts of $150,000 | 4,777,580 | 4,826,716 |
Unbilled revenue | 2,679,442 | 2,691,232 |
Promissory note – current | 1,400,000 | 1,400,000 |
Income tax receivable | 36,350 | 21,350 |
Inventories, net of allowance for excess and obsolete inventory of $1,275,000 | 8,161,656 | 7,625,573 |
Prepaid expenses | 650,818 | 543,762 |
Other assets | 77,103 | 262,462 |
Total current assets | 18,687,228 | 18,965,147 |
Property and equipment, at cost: | ||
Machinery and equipment | 2,575,220 | 2,475,545 |
Leasehold improvements | 1,014,643 | 190,984 |
Total property and equipment, at cost | 3,589,863 | 2,666,529 |
Less: Accumulated depreciation | (993,427) | (835,424) |
Net property and equipment | 2,596,436 | 1,831,105 |
Right-of-use operating lease assets | 4,261,166 | |
Promissory note – noncurrent | 4,390,738 | 4,975,000 |
Intangibles, net of accumulated amortization | 5,738,457 | 6,002,998 |
Goodwill | 4,877,739 | 4,877,739 |
Other assets | 205,100 | 176,355 |
Total assets | 40,756,864 | 36,828,344 |
Current liabilities: | ||
Accounts payable | 4,188,259 | 4,730,537 |
Accrued expenses | 1,478,122 | 1,617,911 |
Deferred revenue | 290,977 | 97,478 |
Bank line of credit | 1,700,000 | |
Operating lease obligations - current | 1,086,871 | |
Financing lease obligations – current | 316,417 | |
Other current liabilities | 757,867 | |
Total current liabilities | 9,060,646 | 7,203,793 |
Operating lease obligations | 3,333,181 | |
Financing lease obligations | 590,040 | |
Other liabilities | 30,199 | 177,951 |
Total liabilities | 13,014,066 | 7,381,744 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 10,861,950 shares issued; 10,361,292 shares outstanding | 108,620 | 108,620 |
Paid in capital | (4,363,213) | (4,377,103) |
Retained earnings | 32,997,405 | 34,715,097 |
Total shareholders’ equity before treasury stock | 28,742,812 | 30,446,614 |
Less: Treasury stock, 500,658 shares, at cost | (1,000,014) | (1,000,014) |
Total shareholders’ equity | 27,742,798 | 29,446,600 |
Total liabilities and shareholders’ equity | $ 40,756,864 | $ 36,828,344 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 150,000 | $ 150,000 |
Inventories, allowance for excess and obsolete inventory | $ 1,275,000 | $ 1,275,000 |
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 | 10,861,950 |
Common stock, shares outstanding (in shares) | 10,361,292 | 10,361,292 |
Treasury stock, shares (in shares) | 500,658 | 500,658 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Sales | $ 13,962,358 | $ 6,810,097 |
Cost of sales | 10,370,376 | 5,086,708 |
Gross profit | 3,591,982 | 1,723,389 |
Operating expenses | 1,887,726 | 492,823 |
Selling, general and administrative expenses | 3,019,403 | 1,939,605 |
Depreciation and amortization expense | 447,574 | 299,385 |
Loss from operations | (1,762,721) | (1,008,424) |
Other income (expense): | ||
Interest income | 88,631 | |
Income from equity method investment | 22,000 | |
Other income (expense) | (57,042) | 90 |
Interest expense | (23,560) | (22,977) |
Total other income (expense), net | 30,029 | (22,887) |
Loss before income taxes | (1,732,692) | (1,031,311) |
Provision (benefit) for income taxes | (15,000) | 172,000 |
Loss from continuing operations | (1,717,692) | (1,203,311) |
Income from discontinued operations, net of tax | 164,330 | |
Net loss | $ (1,717,692) | $ (1,038,981) |
Income (loss) per share: | ||
Continuing operations (in dollars per share) | $ (0.17) | $ (0.12) |
Discontinued operations (in dollars per share) | 0.02 | |
Net loss (in dollars per share) | (0.17) | (0.10) |
Continuing operations (in dollars per share) | (0.17) | (0.12) |
Discontinued operations (in dollars per share) | 0.02 | |
Net loss (in dollars per share) | $ (0.17) | $ (0.10) |
Shares used in per share calculation: | ||
Basic (in shares) | 10,361,292 | 10,361,292 |
Diluted (in shares) | 10,361,292 | 10,361,292 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Paid in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
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) | |||
Share based compensation expense | 28,070 | 28,070 | |||
Restricted stock issuance (in shares) | 55,147 | ||||
Restricted stock issuance | $ 552 | 74,448 | 75,000 | ||
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, 2019 | 10,861,950 | ||||
Balance at Sep. 30, 2019 | $ 108,620 | (4,377,103) | 34,715,097 | (1,000,014) | 29,446,600 |
Net income (loss) | (1,717,692) | (1,717,692) | |||
Share based compensation expense | 13,890 | 13,890 | |||
Balance (in shares) at Dec. 31, 2019 | 10,861,950 | ||||
Balance at Dec. 31, 2019 | $ 108,620 | $ (4,363,213) | $ 32,997,405 | $ (1,000,014) | $ 27,742,798 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Operating Activities | |||
Net loss | $ (1,717,692) | $ (1,038,981) | |
Net income from discontinued operations | 164,330 | ||
Net loss from continuing operations | (1,717,692) | (1,203,311) | |
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities: | |||
Depreciation | 183,033 | 32,610 | |
Amortization | 264,541 | 266,775 | |
Provision for excess and obsolete inventories | 28,000 | ||
Share based compensation expense | 17,640 | 54,320 | |
Gain from equity method investment | (22,000) | ||
Changes in assets and liabilities: | |||
Accounts receivable | 49,136 | (452,453) | |
Unbilled revenue | 11,792 | ||
Income tax receivable\payable | (15,000) | 69,715 | |
Inventories | (536,083) | (262,699) | |
Prepaid expenses and other assets | 45,807 | (79,631) | |
Accounts payable | (542,278) | (499,053) | |
Accrued expenses and other liabilities | (108,807) | 150,523 | |
Deferred revenue | 193,498 | ||
Net cash used in operating activities – continuing operations | (2,176,413) | (1,895,204) | |
Net cash used in operating activities – discontinued operations | (32,783) | ||
Net cash used in operating activities | (2,176,413) | (1,927,987) | |
Investing Activities | |||
Principal payments from promissory note | 584,262 | ||
Acquisition of net operating assets of a business | (500,000) | ||
Loan repayment from equity method investee | 22,000 | 37,000 | |
Purchases of property and equipment | (99,675) | (1,519) | |
Disposals of property and equipment | 25,030 | ||
Net cash provided by (used in) investing activities – continuing operations | 531,617 | (464,519) | |
Net cash provided by investing activities – discontinued operations | 5,010,400 | ||
Net cash provided by investing activities | 531,617 | 4,545,881 | |
Financing Activities | |||
Change in bank line of credit | 1,700,000 | ||
Guaranteed payments for acquisition of business | (667,000) | (667,000) | |
Payments on financing lease obligations | (77,977) | ||
Payments on notes payable | (1,996,279) | ||
Net cash provided by (used in) financing activities – continuing operations | 955,023 | (2,663,279) | |
Net cash used in financing activities – discontinued operations | (184,008) | ||
Net cash provided by (used in) financing activities | 955,023 | (2,847,287) | |
Net decrease in cash and cash equivalents and restricted cash | (689,773) | (229,393) | |
Cash and cash equivalents and restricted cash at beginning of period | 1,594,052 | 3,129,280 | $ 3,129,280 |
Cash and cash equivalents and restricted cash at end of period | 904,279 | 2,899,887 | $ 1,594,052 |
Supplemental cash flow information: | |||
Cash paid for interest | 102,313 | 57,178 | |
Cash paid for income taxes |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Accounting Policies | 3 Months Ended |
Dec. 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”) and Telecommunications (“Telco”). The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not not three December 31, 2019 2018, not 10 September 30, 2019. Reclassification The Company changed its presentation of cost of sales and operating, selling, general and administrative expenses on the consolidated condensed statements of operations. During fiscal year 2020, not no Recently Issued Accounting Standards In June 2016, 2016 13: 326 2016 13 December 15, 2019, may December 15, 2018, |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 2 The Company’s principal sales are from Wireless services, sales of Telco equipment and Telco recycled equipment. Sales are primarily to customers in the United States. International sales are made by the Telco segment to customers in Central America, South America and, to a substantially lesser extent, other international regions that utilize the same technology which totaled approximately $0.4 $0.5 three December 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 11% three December 31, 2019. Our sales by type were as follows: Three Months Ended 2019 2018 Wireless services sales $ 6,797,881 $ ‒ Equipment sales: Telco 6,782,983 6,619,410 Intersegment ‒ (40,242 ) Telco repair sales 8,410 3,600 Telco recycle sales 373,084 227,329 Total sales $ 13,962,358 $ 6,810,097 The timing of revenue recognition from the wireless segment results in contract assets and contract liabilities. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, the Company sometimes receives advances or deposits from customers before revenue is recognized, resulting in contract liabilities. Contract assets and contract liabilities are included in Unbilled revenue and Deferred revenue, respectively, in the consolidated condensed balance sheets. At December 31, 2019 September 30, 2019, $2.7 $2.7 $0.3 $0.1 $67 three December 31, 2019 $0.1 September 30, 2019. |
Note 3 - Accounts Receivable Ag
Note 3 - Accounts Receivable Agreements | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 3 – Accounts Receivable Agreements The Company’s Wireless segment has entered into various agreements, one third third 90% 10% third 10% December 31, 2019, third $0.3 may $2.4 December 31, 2019 $3.5 not December 31, 2019 For the three December 31, 2019, $7.0 1.0% 1.8%. $0.1 three December 31, 2019, The Company accounts for these transactions in accordance with ASC 860, 860” 860 |
Note 4 - Promissory Note
Note 4 - Promissory Note | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 – Promissory Note The Company completed a sale of its former Cable TV reporting segment on June 30, 2019. first 2020, 8 8” first $0.7 $0.1 8. The remaining promissory note will be paid in semi-annual installments over five 6% Fiscal year 2020 $ 700,000 Fiscal year 2021 1,400,000 Fiscal year 2022 940,000 Fiscal year 2023 940,000 Fiscal year 2024 2,970,000 Total proceeds 6,950,000 Less: interest to be paid 1,159,262 Promissory note principal balance $ 5,790,738 |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 5 – Inventories Inventories, which are all within the Telco segment, at December 31, 2019 September 30, 2019 December 31, 2019 September 30, 2019 New equipment $ 1,547,653 $ 1,496,145 Refurbished and used equipment 7,889,003 7,404,428 Allowance for excess and obsolete inventory (1,275,000 ) (1,275,000 ) Total inventories, net $ 8,161,656 $ 7,625,573 New equipment includes products purchased from manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators. Refurbished and used equipment includes factory refurbished, Company refurbished and used products. The Telco segment identified certain inventory that more than likely will not not $1.3 December 31, 2019 September 30, 2019. |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 – Intangible Assets The intangible assets with their associated accumulated amortization amounts at December 31, 2019 September 30, 2019 December 31, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,757,291 ) $ 4,638,709 Trade name – 10 years 2,119,000 (1,019,252 ) 1,099,748 Non-compete agreements – 3 years 374,000 (374,000 ) ‒ Total intangible assets $ 10,889,000 $ (5,150,543 ) $ 5,738,457 September 30, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,547,389 ) $ 4,848,611 Trade name – 10 years 2,119,000 (966,280 ) 1,152,720 Non-compete agreements – 3 years 374,000 (372,333 ) 1,667 Total intangible assets $ 10,889,000 $ (4,886,002 ) $ 6,002,998 |
Note 7 - Notes Payable and Line
Note 7 - Notes Payable and Line of Credit | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7 – Notes Payable and Line of Credit Credit Agreement The Company has a $4.0 December 17, 2020. 4.75% December 31, 2019), not 1.25 1.0 December 31, 2019, $1.7 $4.0 80% 25% $3.5 December 31, 2019. 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 8 - Earnings Per Share
Note 8 - Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 8 – Earnings Per Share Basic earnings per share are based on the sum of the average number of common shares outstanding and issuable, restricted and deferred shares. Diluted earnings per share include any dilutive effect of stock options and restricted stock. In computing the diluted weighted average shares, the average share price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method from the exercise of options. Basic and diluted earnings per share for the three December 31, 2019 2018 Three Months Ended December 31, 2019 2018 Loss from continuing operations $ (1,717,692 ) $ (1,203,311 ) Discontinued operations, net of tax − 164,330 Net income attributable to common shareholders $ (1,717,692 ) $ (1,038,981 ) Basic weighted average shares 10,361,292 10,361,292 Effect of dilutive securities: Stock options ‒ ‒ Diluted weighted average shares 10,361,292 10,361,292 Earnings (loss) per common share: Basic: Continuing operations $ (0.17 ) $ (0.12 ) Discontinued operations − 0.02 Net loss $ (0.17 ) $ (0.10 ) Diluted: Continuing operations $ (0.17 ) $ (0.12 ) Discontinued operations − 0.02 Net loss $ (0.17 ) $ (0.10 ) The table below includes information related to stock options that were outstanding at the end of each respective three December 31 three December 31, 2019 2018. Three Months Ended December 31, 2019 2018 Stock options excluded 770,000 620,000 Weighted average exercise price of stock options $ 1.73 $ 1.83 Average market price of common stock $ 2.27 $ 1.34 |
Note 9 - Stock-based Compensati
Note 9 - Stock-based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 9 – Stock-Based Compensation Plan Information The 2015 may not At December 31, 2019, 1,100,415 7,154 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 three four five ten ten A summary of the status of the Company's stock options at December 31, 2019 three Shares Wtd. Avg. Ex. Price Aggregate Intrinsic Value Outstanding at September 30, 2019 770,000 $ 1.73 $ 352,700 Granted ‒ ‒ ‒ Exercised – – – Expired – – – Forfeited ‒ ‒ ‒ Outstanding at December 31, 2019 770,000 $ 1.73 $ 56,300 Exercisable at December 31, 2019 486,668 $ 1.93 $ 22,933 No three December 31, 2019. zero not zero Compensation expense related to unvested stock options recorded for the three December 31, 2019 Three Months Ended December 31, 2019 Fiscal year 2017 grant $ 2,686 Fiscal year 2019 grants $ 11,203 The Company records compensation expense over the vesting term of the related options. At December 31, 2019, not $59,754. Restricted Stock The Company granted restricted stock in October 2018 55,147 20% first first |
Note 10 - Leases
Note 10 - Leases | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | Note 10 – Leases Effective October 1, 2019, 2016 02, 842 842 not In accordance with ASC 842, 1 not twelve 2 not not 842, $4.7 $4.7 842, $0.6 $0.6 The Company categorizes leases at their inception as either operating or finance leases. The Company has operating and financing leases in place for various office and warehouse properties, vehicles and certain wireless services equipment. The leases have remaining lease terms of one ten Leased assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses a discount rate that approximates the rate of interest for a collateralized loan over a similar term as the discount rate for present value of lease payments when the rate implicit in the contract is not twelve not The components of lease expense are as follows for the three December 31, 2019 Operating lease cost $ 292,122 Finance lease cost: Amortization of right-of-use assets $ 60,230 Interest on lease liabilities 12,169 Total finance lease cost $ 72,399 Supplemental cash flow information related to leases are as follows for the three December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292,428 Operating cash flows from finance leases $ 12,169 Financing cash flows from finance leases $ 77,977 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ ‒ Finance leases $ 239,517 Supplemental balance sheet information related to leases are as follows: December 31, 2019 Operating l eases Operating lease right-of-use assets $ 4,261,166 Operating lease obligations - current $ 1,086,871 Operating lease obligations 3,333,181 Total operating lease liabilities $ 4,420,052 Finance leases Property and equipment, gross $ 873,719 Accumulated depreciation (60,230 ) Property and equipment, net $ 813,489 Financing lease obligations - current $ 316,417 Financing lease obligations 590,040 Total finance lease liabilities $ 906,457 Weighted Average Remaining Lease Term Operating leases 4.29 years Finance leases 3.80 years Weighted Average Discount Rate Operating leases 5.00 % Finance leases 4.94 % Maturities of lease liabilities are as follows for the years ending September 30: Operating Leases Finance Leases 2020 $ 890,541 $ 292,742 2021 1,204,948 225,066 2022 1,225,470 191,948 2023 1,119,773 177,771 2024 544,256 138,753 Thereafter 19,699 4,008 Total lease payments 5,004,687 1,030,288 Less imputed interest 584,635 123,831 Total $ 4,420,052 $ 906,457 The Company will be relocating its headquarters and Wireless segment Texas location to a new facility in Carrollton, Texas, a suburb of Dallas, Texas, commencing in February 2020. five $1.1 |
Note 11 - Segment Reporting
Note 11 - Segment Reporting | 3 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 1 – Segment Reporting The Company is reporting its financial performance based on its external reporting segments: Wireless Infrastructure Services and Telecommunications. These reportable segments are described below. Wireless Infrastructure Services (“Wireless”) The Wireless segment provides turn-key wireless infrastructure services for the four 5G. Telecommunications (“Telco”) The Company’s Telco segment sells new and refurbished 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. 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, the promissory note related to the sale of the Cable TV segment, property and equipment, goodwill and intangible assets. Three Months Ended December 31, 2019 December 31, 2018 Sales Wireless $ 6,797,881 $ ‒ Telco 7,164,477 6,810,097 Total sales $ 13,962,358 $ 6,810,097 Gross profit Wireless $ 1,872,556 $ ‒ Telco 1,719,426 1,723,389 Total gross profit $ 3,591,982 $ 1,723,389 Loss from operations Wireless $ (1,087,444 ) $ ‒ Telco (675,277 ) (1,008,424 ) Total loss from operations $ (1,762,721 ) $ (1,008,424 ) December 31, 2019 September 30, 2019 Segment assets Wireless $ 7,846,232 $ 5,515,793 Telco 25,335,171 22,619,565 Non-allocated 7,575,461 8,692,986 Total assets $ 40,756,864 $ 36,828,344 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 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”) and Telecommunications (“Telco”). The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not not three December 31, 2019 2018, not 10 September 30, 2019. |
Reclassification, Policy [Policy Text Block] | Reclassification The Company changed its presentation of cost of sales and operating, selling, general and administrative expenses on the consolidated condensed statements of operations. During fiscal year 2020, not no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards 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) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended 2019 2018 Wireless services sales $ 6,797,881 $ ‒ Equipment sales: Telco 6,782,983 6,619,410 Intersegment ‒ (40,242 ) Telco repair sales 8,410 3,600 Telco recycle sales 373,084 227,329 Total sales $ 13,962,358 $ 6,810,097 |
Note 4 - Promissory Note (Table
Note 4 - Promissory Note (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | Fiscal year 2020 $ 700,000 Fiscal year 2021 1,400,000 Fiscal year 2022 940,000 Fiscal year 2023 940,000 Fiscal year 2024 2,970,000 Total proceeds 6,950,000 Less: interest to be paid 1,159,262 Promissory note principal balance $ 5,790,738 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2019 September 30, 2019 New equipment $ 1,547,653 $ 1,496,145 Refurbished and used equipment 7,889,003 7,404,428 Allowance for excess and obsolete inventory (1,275,000 ) (1,275,000 ) Total inventories, net $ 8,161,656 $ 7,625,573 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,757,291 ) $ 4,638,709 Trade name – 10 years 2,119,000 (1,019,252 ) 1,099,748 Non-compete agreements – 3 years 374,000 (374,000 ) ‒ Total intangible assets $ 10,889,000 $ (5,150,543 ) $ 5,738,457 September 30, 2019 Gross Accumulated Amortization Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,547,389 ) $ 4,848,611 Trade name – 10 years 2,119,000 (966,280 ) 1,152,720 Non-compete agreements – 3 years 374,000 (372,333 ) 1,667 Total intangible assets $ 10,889,000 $ (4,886,002 ) $ 6,002,998 |
Note 8 - Earnings Per Share (Ta
Note 8 - Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, 2019 2018 Loss from continuing operations $ (1,717,692 ) $ (1,203,311 ) Discontinued operations, net of tax − 164,330 Net income attributable to common shareholders $ (1,717,692 ) $ (1,038,981 ) Basic weighted average shares 10,361,292 10,361,292 Effect of dilutive securities: Stock options ‒ ‒ Diluted weighted average shares 10,361,292 10,361,292 Earnings (loss) per common share: Basic: Continuing operations $ (0.17 ) $ (0.12 ) Discontinued operations − 0.02 Net loss $ (0.17 ) $ (0.10 ) Diluted: Continuing operations $ (0.17 ) $ (0.12 ) Discontinued operations − 0.02 Net loss $ (0.17 ) $ (0.10 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended December 31, 2019 2018 Stock options excluded 770,000 620,000 Weighted average exercise price of stock options $ 1.73 $ 1.83 Average market price of common stock $ 2.27 $ 1.34 |
Note 9 - Stock-based Compensa_2
Note 9 - Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Wtd. Avg. Ex. Price Aggregate Intrinsic Value Outstanding at September 30, 2019 770,000 $ 1.73 $ 352,700 Granted ‒ ‒ ‒ Exercised – – – Expired – – – Forfeited ‒ ‒ ‒ Outstanding at December 31, 2019 770,000 $ 1.73 $ 56,300 Exercisable at December 31, 2019 486,668 $ 1.93 $ 22,933 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended December 31, 2019 Fiscal year 2017 grant $ 2,686 Fiscal year 2019 grants $ 11,203 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | December 31, 2019 Operating lease cost $ 292,122 Finance lease cost: Amortization of right-of-use assets $ 60,230 Interest on lease liabilities 12,169 Total finance lease cost $ 72,399 |
Lessee, Operating and Finance Lease, Supplemental Cash Flow Information [Table Text Block] | December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 292,428 Operating cash flows from finance leases $ 12,169 Financing cash flows from finance leases $ 77,977 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ ‒ Finance leases $ 239,517 |
Lessee, Operating and Finance Lease, Supplemental Balance Sheet Information [Table Text Block] | December 31, 2019 Operating l eases Operating lease right-of-use assets $ 4,261,166 Operating lease obligations - current $ 1,086,871 Operating lease obligations 3,333,181 Total operating lease liabilities $ 4,420,052 Finance leases Property and equipment, gross $ 873,719 Accumulated depreciation (60,230 ) Property and equipment, net $ 813,489 Financing lease obligations - current $ 316,417 Financing lease obligations 590,040 Total finance lease liabilities $ 906,457 Weighted Average Remaining Lease Term Operating leases 4.29 years Finance leases 3.80 years Weighted Average Discount Rate Operating leases 5.00 % Finance leases 4.94 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2020 $ 890,541 $ 292,742 2021 1,204,948 225,066 2022 1,225,470 191,948 2023 1,119,773 177,771 2024 544,256 138,753 Thereafter 19,699 4,008 Total lease payments 5,004,687 1,030,288 Less imputed interest 584,635 123,831 Total $ 4,420,052 $ 906,457 |
Note 11 - Segment Reporting (Ta
Note 11 - Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, 2019 December 31, 2018 Sales Wireless $ 6,797,881 $ ‒ Telco 7,164,477 6,810,097 Total sales $ 13,962,358 $ 6,810,097 Gross profit Wireless $ 1,872,556 $ ‒ Telco 1,719,426 1,723,389 Total gross profit $ 3,591,982 $ 1,723,389 Loss from operations Wireless $ (1,087,444 ) $ ‒ Telco (675,277 ) (1,008,424 ) Total loss from operations $ (1,762,721 ) $ (1,008,424 ) December 31, 2019 September 30, 2019 Segment assets Wireless $ 7,846,232 $ 5,515,793 Telco 25,335,171 22,619,565 Non-allocated 7,575,461 8,692,986 Total assets $ 40,756,864 $ 36,828,344 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 13,962,358 | $ 6,810,097 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | |||
Concentration Risk, Percentage | 11.00% | ||
Wireless Sales in Central America, South America, and International Regions [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 400,000 | $ 500,000 | |
International Regions Excluding Central America and South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 67,000 | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Total | 2,700,000 | $ 2,700,000 | |
Contract with Customer, Liability, Total | $ 300,000 | $ 100,000 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Sales | $ 13,962,358 | $ 6,810,097 |
Telco [Member] | Operating Segments [Member] | ||
Sales | 7,164,477 | 6,810,097 |
Wireless Services [Member] | ||
Sales | 6,797,881 | |
Equipment Sales [Member] | Intersegment Eliminations [Member] | ||
Sales | (40,242) | |
Equipment Sales [Member] | Telco [Member] | Operating Segments [Member] | ||
Sales | 6,782,983 | 6,619,410 |
Telco Repair [Member] | ||
Sales | 8,410 | 3,600 |
Telco Recycle [Member] | ||
Sales | $ 373,084 | $ 227,329 |
Note 3 - Accounts Receivable _2
Note 3 - Accounts Receivable Agreements (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Restricted Cash, Total | $ 296,174 | $ 351,909 |
Certain Receivables to Unrelated Third-parties [Member] | ||
Accounts Receivable Agreement, Percent of Sold Receivables Advanced | 90.00% | |
Accounts Receivable Agreement, Reserve of Sold Receivables | 10.00% | |
Restricted Cash, Total | $ 300,000 | |
Accounts Receivable, after Allowance for Credit Loss, Total | 2,400,000 | |
Sale of Receivables, Maximum Limit of Receivables Uncollected | 3,500,000 | |
Proceeds from Collection of Finance Receivables | 7,000,000 | |
Certain Receivables to Unrelated Third-parties [Member] | Other Nonoperating Income (Expense) [Member] | ||
Cost of Selling Receivables | $ 100,000 | |
Certain Receivables to Unrelated Third-parties [Member] | Minimum [Member] | ||
Receivables, Cost of Sales, Percent | 1.00% | |
Certain Receivables to Unrelated Third-parties [Member] | Maximum [Member] | ||
Receivables, Cost of Sales, Percent | 1.80% |
Note 4 - Promissory Note (Detai
Note 4 - Promissory Note (Details Textual) - Leveling 8 [Member] - Promissory Note [Member] $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Proceeds from Collection of Notes Receivable, Gross | $ 0.7 |
Proceeds from Collection of Notes Receivable, Interest | $ 0.1 |
Notes Receivable, Interest Rate | 6.00% |
Note 4 - Promissory Note - Repa
Note 4 - Promissory Note - Repayment Installments (Details) | Dec. 31, 2019USD ($) |
Fiscal year 2020 | $ 700,000 |
Fiscal year 2021 | 1,400,000 |
Fiscal year 2022 | 940,000 |
Fiscal year 2023 | 940,000 |
Fiscal year 2024 | 2,970,000 |
Total proceeds | 6,950,000 |
Less: interest to be paid | 1,159,262 |
Promissory note principal balance | $ 5,790,738 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Inventory Write-down | $ 28,000 | ||
Inventory Valuation Reserves, Ending Balance | 1,275,000 | $ 1,275,000 | |
Telco [Member] | |||
Inventory Write-down | 0 | 0 | |
Inventory Valuation Reserves, Ending Balance | $ 1,300,000 | $ 1,300,000 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Allowance for excess and obsolete inventory | $ (1,275,000) | $ (1,275,000) |
Total inventories, net | 8,161,656 | 7,625,573 |
New Inventory [Member] | ||
Inventory | 1,547,653 | 1,496,145 |
Inventory | 1,547,653 | 1,496,145 |
Refurbished and Used Inventory [Member] | ||
Inventory | 7,889,003 | 7,404,428 |
Inventory | $ 7,889,003 | $ 7,404,428 |
Note 6 - Intangible Assets - Sc
Note 6 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Gross | $ 10,889,000 | $ 10,889,000 |
Accumulated Amortization | (5,150,543) | (4,886,002) |
Net | 5,738,457 | 6,002,998 |
Customer Relationships [Member] | ||
Gross | 8,396,000 | 8,396,000 |
Accumulated Amortization | (3,757,291) | (3,547,389) |
Net | 4,638,709 | 4,848,611 |
Trade Names [Member] | ||
Gross | 2,119,000 | 2,119,000 |
Accumulated Amortization | (1,019,252) | (966,280) |
Net | 1,099,748 | 1,152,720 |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 374,000 |
Accumulated Amortization | (374,000) | (372,333) |
Net | $ 1,667 |
Note 6 - Intangible Assets - _2
Note 6 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
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 7 - Notes Payable and Li_2
Note 7 - Notes Payable and Line of Credit (Details Textual) - Revolving Credit Facility [Member] - New Credit Agreement [Member] $ in Millions | Dec. 31, 2019USD ($) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4 |
Debt Instrument, Interest Rate, Effective Percentage | 4.75% |
Fixed Charge Leverage Ratio, Maximum Requirement | 1.25 |
Long-term Line of Credit, Total | $ 1.7 |
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 | $ 3.5 |
Note 8 - Earnings Per Share - B
Note 8 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss from continuing operations | $ (1,717,692) | $ (1,203,311) |
Discontinued operations, net of tax | 164,330 | |
Net income attributable to common shareholders | $ (1,717,692) | $ (1,038,981) |
Basic (in shares) | 10,361,292 | 10,361,292 |
Diluted weighted average shares (in shares) | 10,361,292 | 10,361,292 |
Continuing operations (in dollars per share) | $ (0.17) | $ (0.12) |
Discontinued operations (in dollars per share) | 0.02 | |
Net loss (in dollars per share) | (0.17) | (0.10) |
Continuing operations (in dollars per share) | (0.17) | (0.12) |
Discontinued operations (in dollars per share) | 0.02 | |
Net loss (in dollars per share) | $ (0.17) | $ (0.10) |
Note 8 - Earnings Per Share - A
Note 8 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options excluded (in shares) | 770,000 | 620,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 1.73 | $ 1.83 |
Average market price of common stock (in dollars per share) | $ 2.27 | $ 1.34 |
Note 9 - Stock-based Compensa_3
Note 9 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended |
Oct. 31, 2018 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 59,754 | |
Nonqualified Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 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] | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Employees [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Employees [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Board Of Directors [Member] | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Board of Directors Chairman [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 55,147 | |
Board of Directors Chairman [Member] | Restricted Stock [Member] | Vest 20% Per Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |
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 | 7,154 |
Note 9 - Stock-based Compensa_4
Note 9 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Outstanding (in shares) | 770,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.73 | |
Outstanding, aggregate intrinsic value | $ 56,300 | $ 352,700 |
Granted (in shares) | ||
Granted, weighted average exercise price (in dollars per share) | ||
Exercised (in shares) | ||
Exercised, weighted average exercise price (in dollars per share) | ||
Expired (in shares) | ||
Expired, weighted average exercise price (in dollars per share) | ||
Forfeited (in shares) | ||
Forfeited, weighted average exercise price (in dollars per share) | ||
Outstanding (in shares) | 770,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 1.73 | |
Exercisable (in shares) | 486,668 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 1.93 | |
Exercisable, aggregate intrinsic value | $ 22,933 |
Note 9 - Stock-based Compensa_5
Note 9 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Share-based Payment Arrangement, Option [Member] | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Fiscal Year 2017 [Member] | |
Compensation expense | $ 2,686 |
Fiscal Year 2019 [Member] | |
Compensation expense | $ 11,203 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) | 3 Months Ended | |||
Dec. 31, 2019 | Feb. 01, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | |
Operating Lease, Right-of-Use Asset | $ 4,261,166 | |||
Operating Lease, Liability, Total | 4,420,052 | |||
Finance Lease, Right-of-Use Asset | 873,719 | |||
Finance Lease, Liability, Total | $ 906,457 | |||
TEXAS | Subsequent Event [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 1,100,000 | |||
Operating Lease, Liability, Total | $ 1,100,000 | |||
Lessee, Operating Lease, Term of Contract | 5 years | |||
Minimum [Member] | ||||
Lessee, Operating and Finance Lease, Remaining Lease Term | 1 year | |||
Maximum [Member] | ||||
Lessee, Operating and Finance Lease, Remaining Lease Term | 10 years | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 4,700,000 | |||
Operating Lease, Liability, Total | 4,700,000 | |||
Finance Lease, Right-of-Use Asset | 600,000 | |||
Finance Lease, Liability, Total | $ 600,000 |
Note 10 - Leases - Components o
Note 10 - Leases - Components of Lease Expense (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease cost | $ 292,122 |
Amortization of right-of-use assets | 60,230 |
Interest on lease liabilities | 12,169 |
Total finance lease cost | $ 72,399 |
Note 10 - Leases - Supplemental
Note 10 - Leases - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating cash flows from operating leases | $ 292,428 | |
Operating cash flows from finance leases | 12,169 | |
Financing cash flows from finance leases | 77,977 | |
Right-of-use assets obtained in exchange for operating leases | ||
Right-of-use assets obtained in exchange for finance leases | $ 239,517 |
Note 10 - Leases - Supplement_2
Note 10 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 |
Right-of-use operating lease assets | $ 4,261,166 | |
Operating lease obligations - current | 1,086,871 | |
Operating lease obligations | 3,333,181 | |
Total operating lease liabilities | 4,420,052 | |
Property and equipment, gross | 873,719 | |
Accumulated depreciation | (60,230) | |
Property and equipment, net | 813,489 | |
Financing lease obligations – current | 316,417 | |
Financing lease obligations | 590,040 | |
Total finance lease liabilities | $ 906,457 | |
Weighted Average Remaining Lease Term, Operating leases (Year) | 4 years 105 days | |
Weighted Average Remaining Lease Term, Finance leases (Year) | 3 years 292 days | |
Weighted Average Discount Rate, Operating leases | 5.00% | |
Weighted Average Discount Rate, Finance leases | 4.94% |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease Liabilities (Details) | Dec. 31, 2019USD ($) |
2020, operating leases | $ 890,541 |
2020, finance leases | 292,742 |
2021, operating leases | 1,204,948 |
2021, finance leases | 225,066 |
2022, operating leases | 1,225,470 |
2022, finance leases | 191,948 |
2023, operating leases | 1,119,773 |
2023, finance leases | 177,771 |
2024, operating leases | 544,256 |
2024, finance leases | 138,753 |
Thereafter, operating leases | 19,699 |
Thereafter, finance leases | 4,008 |
Total lease payments, operating leases | 5,004,687 |
Total lease payments, finance leases | 1,030,288 |
Less imputed interest, operating leases | 584,635 |
Less imputed interest, finance leases | 123,831 |
Total, operating leases | 4,420,052 |
Total, finance leases | $ 906,457 |
Note 11 - Segment Reporting - S
Note 11 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Sales | $ 13,962,358 | $ 6,810,097 | |
Gross profit | 3,591,982 | 1,723,389 | |
Operating income (loss) | (1,762,721) | (1,008,424) | |
Segment assets | 40,756,864 | $ 36,828,344 | |
Operating Segments [Member] | Wireless [Member] | |||
Sales | 6,797,881 | ||
Gross profit | 1,872,556 | ||
Operating income (loss) | (1,087,444) | ||
Operating Segments [Member] | Wireless [Member] | Continuing Operations [Member] | |||
Segment assets | 7,846,232 | 5,515,793 | |
Operating Segments [Member] | Telco [Member] | |||
Sales | 7,164,477 | 6,810,097 | |
Gross profit | 1,719,426 | 1,723,389 | |
Operating income (loss) | (675,277) | $ (1,008,424) | |
Operating Segments [Member] | Telco [Member] | Continuing Operations [Member] | |||
Segment assets | 25,335,171 | 22,619,565 | |
Segment Reconciling Items [Member] | |||
Segment assets | $ 7,575,461 | $ 8,692,986 |