Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2020 | Jul. 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 Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 11,788,940 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $.01 par value |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Assets | ||
Cash and cash equivalents | $ 10,365,744 | $ 1,242,143 |
Restricted cash | 105,117 | 351,909 |
Accounts receivable, net of allowance for doubtful accounts of $250,000 and $150,000, respectively | 3,164,893 | 4,826,716 |
Unbilled revenue | 677,702 | 2,691,232 |
Promissory note – current | 1,400,000 | 1,400,000 |
Income tax receivable | 34,915 | 21,350 |
Inventories, net of allowance for excess and obsolete inventory of $3,400,000 and $1,275,000, respectively | 5,964,490 | 7,625,573 |
Prepaid expenses | 1,013,645 | 543,762 |
Other assets | 289,300 | 262,462 |
Total current assets | 23,015,806 | 18,965,147 |
Property and equipment, at cost: | ||
Machinery and equipment | 3,503,199 | 2,475,545 |
Leasehold improvements | 846,783 | 190,984 |
Total property and equipment, at cost | 4,349,982 | 2,666,529 |
Less: Accumulated depreciation | (1,326,477) | (835,424) |
Net property and equipment | 3,023,505 | 1,831,105 |
Right-of-use operating lease assets | 4,158,786 | |
Promissory note – noncurrent | 2,950,000 | 4,975,000 |
Intangibles, net of accumulated amortization | 1,504,773 | 6,002,998 |
Goodwill | 57,554 | 4,877,739 |
Deferred income taxes | 1,220,564 | |
Other assets | 178,602 | 176,355 |
Total assets | 36,109,590 | 36,828,344 |
Current liabilities: | ||
Accounts payable | 4,786,788 | 4,730,537 |
Accrued expenses | 1,415,792 | 1,617,911 |
Deferred revenue | 241,452 | 97,478 |
Bank line of credit | 2,800,000 | |
Note payable – current | 2,580,652 | |
Operating lease obligations – current | 1,224,630 | |
Financing lease obligations – current | 328,151 | |
Other current liabilities | 757,867 | |
Total current liabilities | 13,377,465 | 7,203,793 |
Note payable | 2,171,680 | |
Operating lease obligations | 3,809,803 | |
Financing lease obligations | 855,052 | |
Other liabilities | 15,000 | 177,951 |
Total liabilities | 20,229,000 | 7,381,744 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 11,294,839 and 10,861,950 shares issued, respectively; 11,294,839 and 10,361,292 shares outstanding, respectively | 112,950 | 108,620 |
Paid in capital | (2,592,034) | (4,377,103) |
Retained earnings | 18,359,674 | 34,715,097 |
Total shareholders’ equity before treasury stock | 15,880,590 | 30,446,614 |
Less: Treasury stock, 0 and 500,658 shares, respectively, at cost | (1,000,014) | |
Total shareholders’ equity | 15,880,590 | 29,446,600 |
Total liabilities and shareholders’ equity | $ 36,109,590 | $ 36,828,344 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 250,000 | $ 150,000 |
Inventories, allowance for excess and obsolete inventory | $ 3,400,000 | $ 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) | 11,294,839 | 10,861,950 |
Common stock, shares outstanding (in shares) | 11,294,839 | 10,361,292 |
Treasury stock, shares (in shares) | 0 | 500,658 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Sales | $ 12,021,820 | $ 17,559,315 | $ 37,943,303 | $ 37,259,352 |
Cost of sales | 7,851,241 | 12,971,910 | 30,619,379 | 27,472,042 |
Gross profit | 4,170,579 | 4,587,405 | 7,323,924 | 9,787,310 |
Operating expenses | 1,998,184 | 1,611,751 | 6,276,442 | 3,943,026 |
Selling, general and administrative expenses | 2,420,629 | 2,846,168 | 8,095,815 | 7,385,008 |
Impairment of right of use asset | 660,242 | 660,242 | ||
Impairment of intangibles including goodwill | 8,714,306 | |||
Depreciation and amortization expense | 241,501 | 382,565 | 1,196,860 | 1,069,653 |
Loss from operations | (1,149,977) | (253,079) | (17,619,741) | (2,610,377) |
Other income (expense): | ||||
Interest income | 83,544 | 258,847 | ||
Income from equity method investment | 20,005 | 40,500 | 75,005 | |
Other income (expense) | (29,454) | 158,739 | (86,588) | 118,319 |
Interest expense | (101,327) | (25,860) | (184,005) | (68,612) |
Total other income (expense), net | (47,237) | 152,884 | 28,754 | 124,712 |
Loss before income taxes | (1,197,214) | (100,195) | (17,590,987) | (2,485,665) |
Benefit for income taxes | (1,220,564) | (42,000) | (1,235,564) | (13,000) |
Income (loss) from continuing operations | 23,350 | (58,195) | (16,355,423) | (2,472,665) |
Loss from discontinued operations, net of tax | (1,426,970) | (1,267,344) | ||
Net income (loss) | $ 23,350 | $ (1,485,165) | $ (16,355,423) | $ (3,740,009) |
Income (loss) per share: | ||||
Continuing operations (in dollars per share) | $ 0 | $ 0 | $ (1.49) | $ (0.24) |
Discontinued operations (in dollars per share) | (0.14) | (0.12) | ||
Net income (loss) (in dollars per share) | 0 | (0.14) | (1.49) | (0.36) |
Continuing operations (in dollars per share) | 0 | 0 | (1.49) | (0.24) |
Discontinued operations (in dollars per share) | (0.14) | (0.12) | ||
Net income (loss) (in dollars per share) | $ 0 | $ (0.14) | $ (1.49) | $ (0.36) |
Shares used in per share calculation: | ||||
Basic (in shares) | 11,079,580 | 10,361,292 | 10,955,235 | 10,361,292 |
Diluted (in shares) | 11,216,688 | 10,361,292 | 10,955,235 | 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 loss | (1,038,981) | (1,038,981) | |||
Share based compensation expense | 28,070 | 28,070 | |||
Restricted stock issuance | $ 552 | 74,448 | 75,000 | ||
Restricted stock issuance (in shares) | 55,147 | ||||
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 loss | (3,740,009) | ||||
Balance (in shares) at Jun. 30, 2019 | 10,861,950 | ||||
Balance at Jun. 30, 2019 | $ 108,620 | (4,419,954) | 36,277,531 | (1,000,014) | 30,966,183 |
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 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 |
Net loss | (1,485,165) | (1,485,165) | |||
Share based compensation expense | 42,852 | 42,852 | |||
Balance (in shares) at Jun. 30, 2019 | 10,861,950 | ||||
Balance at Jun. 30, 2019 | $ 108,620 | (4,419,954) | 36,277,531 | (1,000,014) | 30,966,183 |
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 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 |
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 loss | $ (16,355,423) | ||||
Stock option exercise (in shares) | 123,334 | ||||
Balance (in shares) at Jun. 30, 2020 | 11,294,839 | ||||
Balance at Jun. 30, 2020 | $ 112,950 | (2,592,034) | 18,359,674 | $ 15,880,590 | |
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 |
Net loss | (14,661,081) | (14,661,081) | |||
Share based compensation expense | (6,364) | (6,364) | |||
Restricted stock issuance | 475,618 | 475,618 | |||
Stock option exercise (in shares) | 110,000 | ||||
Stock option exercise | $ 1,100 | 171,833 | 172,933 | ||
Balance (in shares) at Mar. 31, 2020 | 10,971,950 | ||||
Balance at Mar. 31, 2020 | $ 109,720 | (3,722,126) | 18,336,324 | (1,000,014) | 13,723,904 |
Net loss | 23,350 | 23,350 | |||
Share based compensation expense | (14,656) | (14,656) | |||
Restricted stock issuance | $ 2,370 | 12,630 | 15,000 | ||
Stock option exercise (in shares) | 13,334 | ||||
Stock option exercise | $ 134 | 24,001 | 24,135 | ||
Utilization of treasury shares (in shares) | (500,658) | ||||
Utilization of treasury shares | $ (5,006) | (995,008) | |||
Utilization of treasury shares, treasury | 1,000,014 | ||||
Issuance of shares (in shares) | 573,199 | ||||
Issuance of shares | $ 5,732 | 2,103,125 | 2,108,857 | ||
Restricted stock issuance (in shares) | 237,014 | ||||
Balance (in shares) at Jun. 30, 2020 | 11,294,839 | ||||
Balance at Jun. 30, 2020 | $ 112,950 | $ (2,592,034) | $ 18,359,674 | $ 15,880,590 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net loss | $ (16,355,423) | $ (3,740,009) |
Net loss from discontinued operations | (1,267,344) | |
Net loss from continuing operations | (16,355,423) | (2,472,665) |
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: | ||
Depreciation | 589,866 | 257,128 |
Amortization | 606,994 | 812,525 |
Impairment of right of use asset | 660,242 | |
Impairment of intangibles including goodwill | 8,714,306 | |
Provision for excess and obsolete inventories | 2,125,000 | 77,889 |
Share based compensation expense | 167,405 | 152,691 |
Gain from disposal of property and equipment | (36,286) | (250,877) |
Gain from equity method investment | (40,500) | (75,005) |
Deferred income taxes | (1,220,564) | |
Changes in assets and liabilities: | ||
Accounts receivable | 1,661,823 | (2,074,342) |
Unbilled revenue | 2,013,531 | (1,793,065) |
Income tax receivable\payable | (13,565) | 4,476 |
Inventories | (463,917) | (1,799,042) |
Prepaid expenses and other assets | 97,118 | (395,726) |
Accounts payable | 56,251 | 2,306,092 |
Accrued expenses and other liabilities | (135,416) | 455,426 |
Deferred revenue | 143,974 | |
Net cash used in operating activities – continuing operations | (1,429,161) | (4,794,495) |
Net cash provided by operating activities – discontinued operations | 1,179,876 | |
Net cash used in operating activities | (1,429,161) | (3,614,619) |
Investing Activities | ||
Proceeds from promissory note receivable | 2,025,000 | |
Acquisition of net operating assets of a business | (1,264,058) | |
Loan repayment from equity method investee | 40,500 | 124,005 |
Purchases of property and equipment | (471,226) | (457,225) |
Disposals of property and equipment | 77,505 | 452,244 |
Net cash provided by (used in) investing activities – continuing operations | 1,671,779 | (1,145,034) |
Net cash provided by investing activities – discontinued operations | 7,075,000 | |
Net cash provided by investing activities | 1,671,779 | 5,929,966 |
Financing Activities | ||
Change in bank line of credit | 2,800,000 | |
Proceeds from note payable | 6,373,929 | |
Guaranteed payments for acquisition of business | (667,000) | (667,000) |
Payments on financing lease obligations | (277,061) | |
Payments on notes payable | (1,621,597) | (1,246,279) |
Proceeds from sale of common stock | 1,828,852 | |
Proceeds from stock options exercised | 197,068 | |
Net cash provided by (used in) financing activities – continuing operations | 8,634,191 | (1,913,279) |
Net cash used in financing activities – discontinued operations | (597,906) | |
Net cash provided by (used in) financing activities | 8,634,191 | (2,511,185) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 8,876,809 | (195,838) |
Cash and cash equivalents and restricted cash at beginning of period | 1,594,052 | 3,129,280 |
Cash and cash equivalents and restricted cash at end of period | 10,470,861 | 2,933,442 |
Supplemental cash flow information: | ||
Cash paid for interest | 244,995 | 109,106 |
Cash paid for income taxes | ||
Non-cash financing activities: | ||
Proceeds from sale of common stock receivable | $ 280,005 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Accounting Policies | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1 Accounting Policies Basis of presentation The unaudited 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 nine June 30, 2020 2019, not 10 September 30, 2019. Reclassification The Company changed its presentation of cost of sales and operating, selling, general and administrative expenses on the unaudited 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, |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Jun. 30, 2020 | |
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 a customer in Asia for its recycling program and, to a substantially lesser extent, other international regions for equipment sales that utilize the same technology, which totaled approximately $0.7 $0.6 three June 30, 2020 2019, $1.5 $1.6 nine June 30, 2020 2019, 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 14% nine June 30, 2020. Our sales by type were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Wireless services sales $ 5,123,176 $ 8,733,444 $ 16,592,907 $ 12,951,368 Equipment sales: Telco 6,147,676 7,989,318 19,912,137 22,876,047 Intersegment (23,033 ) (5,305 ) (23,033 ) (49,452 ) Telco repair sales 33,236 31,142 49,438 36,542 Telco recycle sales 740,765 810,716 1,411,854 1,444,847 Total sales $ 12,021,820 $ 17,559,315 $ 37,943,303 $ 37,259,352 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 June 30, 2020 September 30, 2019, $0.7 $2.7 $0.2 $0.1 $0.1 nine June 30, 2020 September 30, 2019. For the three June 30, 2020, $0.5 |
Note 3 - Accounts Receivable Ag
Note 3 - Accounts Receivable Agreements | 9 Months Ended |
Jun. 30, 2020 | |
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% June 30, 2020, third $0.1 may $0.5 June 30, 2020 $4.0 not June 30, 2020 For the nine June 30, 2020 2019, $15.9 $9.9 1.0% 1.8% nine June 30, 2020 2019. $0.1 $0.3 three nine June 30, 2020, $0.1 $0.2 three nine June 30, 2019, The Company accounts for these transactions in accordance with ASC 860, 860” 860 |
Note 4 - Promissory Note
Note 4 - Promissory Note | 9 Months Ended |
Jun. 30, 2020 | |
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. third 2020, 8 $1.7 $1.4 $2.5 $0.7 March 10, 2020, $3.5 8 The remaining promissory note will be paid in semi-annual installments over five 6% June 30, 2020: Fiscal year 2021 $ 1,400,000 Fiscal year 2022 940,000 Fiscal year 2023 940,000 Fiscal year 2024 1,725,754 Total proceeds 5,005,754 Less: interest to be paid (655,754 ) Promissory note principal balance $ 4,350,000 |
Note 5 - Inventories
Note 5 - Inventories | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 5 – Inventories Inventories, which are all within the Telco segment, at June 30, 2020 September 30, 2019 June 30, 2020 September 30, 2019 New equipment $ 1,174,899 $ 1,496,145 Refurbished and used equipment 8,189,591 7,404,428 Allowance for excess and obsolete inventory (3,400,000 ) (1,275,000 ) Total inventories, net $ 5,964,490 $ 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 $2.1 nine June 30, 2020. $3.4 $1.3 June 30, 2020 September 30, 2019, |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 – Intangible Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset's carrying amount may not 360 10 15, 360 10 15 not As of March 31, 2020, 19 may $3.9 March 31, 2020. June 30, 2020, no Intangible assets with their associated accumulated amortization and impairment at June 30, 2020 September 30, 2019 June 30, 2020 Gross Accumulated Amortization Impairment Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,991,306 ) $ (3,894,121 ) $ 510,573 Trade name – 10 years 2,119,000 (1,124,800 ) ‒ 994,200 Non-compete agreements – 3 years 374,000 (374,000 ) ‒ ‒ Total intangible assets $ 10,889,000 $ (5,490,106 ) $ (3,894,121 ) $ 1,504,773 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 - Goodwill
Note 7 - Goodwill | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | Note 7 – Goodwill The Company tests goodwill at least annually for impairment. The Company tests more frequently if indicators are present or changes in circumstances suggest that impairment may one two As of March 31, 2020, 19 19 March 31, 2020. $4.8 March 31, 2020. |
Note 8 - Notes Payable and Line
Note 8 - Notes Payable and Line of Credit | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 – Notes Payable and Line of Credit Loan Agreement On March 10, 2020, $3.5 6% seven first June 30, 2020, June 30, 2023. may 8 4 $1.7 third 2020 8 $1.6 $1.0 $1.9 June 30, 2022. 2019 8, 4 Credit Agreement The Company has a $4.0 December 17, 2020. 3.25% June 30, 2020), June 30, 2020, $2.8 $4.0 80% 25% $3.1 June 30, 2020. Loan Covenant with Primary Financial Lender Both the March 10, 2020 not 1.25 1.0 not September 30, 2020. not Paycheck Protection Program Loan On April 14, 2020, $2.9 1% $164,045 November 10, 2020, April 10, 2022. may 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. The carrying value of the Company's term debt approximates fair value. |
Note 9 - Equity Distribution Ag
Note 9 - Equity Distribution Agreement and Sale of Common Stock | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 9 – Equity Distribution Agreement and Sale of Common Stock On April 24, 2020, may $0.01 $13,850,000 The offer and sale of the Shares will be made pursuant to a shelf registration statement on Form S- 3 March 3, 2020, March 23, 2020, April 1, 2020. Pursuant to the Sales Agreement, Northland may 415 1933 may may not The Company will pay Northland a commission rate equal to an aggregate of 3.0% During the three June 30, 2020, 573,199 $2.2 $2.1 573,199 80,043 June 30, 2020, July 2020, $0.3 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10 – Income Taxes As a result of the CARES Act, the Company can carryback net operating losses generated in 2018 2020 five nine June 30, 2020 June 30, 2020, $1.2 $9.4 not not |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 11 – 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 nine June 30, 2020 2019 Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Income (loss) from continuing operations $ 23,350 $ (58,195 ) $ (16,355,423 ) $ (2,472,665 ) Discontinued operations, net of tax − (1,426,970 ) − (1,267,344 ) Net income (loss) attributable to common shareholders $ 23,350 $ (1,485,165 ) $ (16,355,423 ) $ (3,740,009 ) Basic weighted average shares 11,079,580 10,361,292 10,955,235 10,361,292 Effect of dilutive securities: Stock options 137,108 ‒ ‒ ‒ Diluted weighted average shares 11,216,688 10,361,292 10,955,235 10,361,292 Earnings (loss) per common share: Basic: Continuing operations $ 0.00 $ (0.00 ) $ (1.49 ) $ (0.24 ) Discontinued operations − (0.14 ) − (0.12 ) Net income (loss) $ 0.00 $ (0.14 ) $ (1.49 ) $ (0.36 ) Diluted: Continuing operations $ 0.00 $ (0.00 ) $ (1.49 ) $ (0.24 ) Discontinued operations − (0.14 ) − (0.12 ) Net income (loss) $ 0.00 $ (0.14 ) $ (1.49 ) $ (0.36 ) The table below includes information related to stock options that were outstanding at the end of each respective three nine June 30, three nine June 30, 2020 2019. Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Stock options excluded 150,000 770,000 480,000 770,000 Weighted average exercise price of stock options $ 2.96 $ 1.73 $ 1.89 $ 1.73 Average market price of common stock $ 2.41 $ 1.38 $ 2.48 $ 1.37 |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 12 – Stock-Based Compensation Plan Information The 2015 may not In March 2020, 1,000,000 June 30, 2020, 2,100,415 936,806 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 expenses and selling, general and administrative expenses sections 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 June 30, 2020 nine Shares Wtd. Avg. Ex. Price Aggregate Outstanding at September 30, 2019 770,000 $ 1.73 $ 352,700 Granted ‒ ‒ ‒ Exercised (123,334 ) $ 1.20 $ 304,568 Expired – – – Forfeited (166,666 ) $ 1.35 $ 347,999 Outstanding at June 30, 2020 480,000 $ 1.89 $ 742,800 Exercisable at June 30, 2020 376,667 $ 1.99 $ 546,101 No nine June 30, 2020. zero not zero Compensation expense related to unvested stock options recorded for the nine June 30, 2020 Nine Months Ended June 30, 2020 Fiscal year 2017 grant $ (5,652 ) Fiscal year 2019 grants $ (1,476 ) The Company records compensation expense over the vesting term of the related options. At June 30, 2020, not $7,202. Restricted Stock As a result of the shareholders authorizing the additional shares being added to the Plan in March 2020, 237,014, three The Company granted restricted stock in October 2018 55,147 20% first first |
Note 13 - Leases
Note 13 - Leases | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | Note 13 – 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 Company has an operating lease for a building in Jessup, Maryland for Nave Communications. As a result of moving Nave's operations to Palco Telecom, a third 2019, May 2020 2020. June 30, 2020, may 360 10 15 $0.7 June 30, 2020. The components of lease expense were as follows: Three Months ended Nine Months ended Operating lease cost: Operating lease cost $ 296,677 $ 943,834 Impairment of right of use asset 660,242 660,242 Operating lease cost $ 956,919 $ 1,604,076 Finance lease cost: Amortization of right-of-use assets $ 71,925 $ 198,289 Interest on lease liabilities 18,220 43,182 Total finance lease cost $ 90,145 $ 241,471 Supplemental cash flow information related to leases are as follows for the nine June 30, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 768,784 Operating cash flows from finance leases $ 43,182 Financing cash flows from finance leases $ 277,061 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,076,700 Finance leases $ 718,058 Supplemental balance sheet information related to leases are as follows: June 30, 2020 Operating l eases Operating lease right-of-use assets $ 4,158,786 Operating lease obligations - current $ 1,224,630 Operating lease obligations 3,809,803 Total operating lease liabilities $ 5,034,433 Finance leases Property and equipment, gross $ 1,462,865 Accumulated depreciation (210,253 ) Property and equipment, net $ 1,252,612 Financing lease obligations - current $ 328,151 Financing lease obligations 855,052 Total finance lease liabilities $ 1,183,203 Weighted Average Remaining Lease Term Operating leases (in years) 3.94 Finance leases (in years) 3.98 Weighted Average Discount Rate Operating leases 5.00 % Finance leases 4.96 % Maturities of lease liabilities are as follows for the years ending September 30: Operating Finance Leases 2020 $ 355,239 $ 140,761 2021 1,440,544 314,093 2022 1,468,081 295,617 2023 1,369,882 281,636 2024 802,026 227,541 Thereafter 150,478 44,334 Total lease payments 5,586,250 1,303,982 Less imputed interest 555,817 120,779 Total $ 5,034,433 $ 1,183,203 |
Note 14 - Segment Reporting
Note 14 - Segment Reporting | 9 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 14 – 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, property and equipment, goodwill and intangible assets. Three Months Ended Nine Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Sales Wireless $ 5,123,175 $ 8,733,444 $ 16,592,907 $ 12,951,368 Telco 6,898,645 8,825,871 21,350,396 24,307,984 Total sales $ 12,021,820 $ 17,559,315 $ 37,943,303 $ 37,259,352 Gross profit Wireless $ 2,251,153 $ 2,235,406 $ 4,298,915 $ 3,524,164 Telco 1,919,426 2,351,999 3,025,009 6,263,146 Total gross profit $ 4,170,579 $ 4,587,405 $ 7,323,924 $ 9,787,310 Loss from operations Wireless $ (253,416 ) $ (454,672 ) $ (4,136,645 ) $ (1,568,255 ) Telco (896,561 ) 201,593 (13,483,096 ) (1,042,122 ) Total loss from operations $ (1,149,977 ) $ (253,079 ) $ (17,619,741 ) $ (2,610,377 ) June 30, 2020 September 30, 2019 Segment assets Wireless $ 5,082,120 $ 5,515,793 Telco 12,274,168 22,619,565 Non-allocated 18,753,302 8,692,986 Total assets $ 36,109,590 $ 36,828,344 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The unaudited 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 nine June 30, 2020 2019, not 10 September 30, 2019. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification The Company changed its presentation of cost of sales and operating, selling, general and administrative expenses on the unaudited 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, |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Wireless services sales $ 5,123,176 $ 8,733,444 $ 16,592,907 $ 12,951,368 Equipment sales: Telco 6,147,676 7,989,318 19,912,137 22,876,047 Intersegment (23,033 ) (5,305 ) (23,033 ) (49,452 ) Telco repair sales 33,236 31,142 49,438 36,542 Telco recycle sales 740,765 810,716 1,411,854 1,444,847 Total sales $ 12,021,820 $ 17,559,315 $ 37,943,303 $ 37,259,352 |
Note 4 - Promissory Note (Table
Note 4 - Promissory Note (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | Fiscal year 2021 $ 1,400,000 Fiscal year 2022 940,000 Fiscal year 2023 940,000 Fiscal year 2024 1,725,754 Total proceeds 5,005,754 Less: interest to be paid (655,754 ) Promissory note principal balance $ 4,350,000 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2020 September 30, 2019 New equipment $ 1,174,899 $ 1,496,145 Refurbished and used equipment 8,189,591 7,404,428 Allowance for excess and obsolete inventory (3,400,000 ) (1,275,000 ) Total inventories, net $ 5,964,490 $ 7,625,573 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2020 Gross Accumulated Amortization Impairment Net Intangible assets: Customer relationships – 10 years $ 8,396,000 $ (3,991,306 ) $ (3,894,121 ) $ 510,573 Trade name – 10 years 2,119,000 (1,124,800 ) ‒ 994,200 Non-compete agreements – 3 years 374,000 (374,000 ) ‒ ‒ Total intangible assets $ 10,889,000 $ (5,490,106 ) $ (3,894,121 ) $ 1,504,773 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 11 - Earnings Per Share (T
Note 11 - Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Income (loss) from continuing operations $ 23,350 $ (58,195 ) $ (16,355,423 ) $ (2,472,665 ) Discontinued operations, net of tax − (1,426,970 ) − (1,267,344 ) Net income (loss) attributable to common shareholders $ 23,350 $ (1,485,165 ) $ (16,355,423 ) $ (3,740,009 ) Basic weighted average shares 11,079,580 10,361,292 10,955,235 10,361,292 Effect of dilutive securities: Stock options 137,108 ‒ ‒ ‒ Diluted weighted average shares 11,216,688 10,361,292 10,955,235 10,361,292 Earnings (loss) per common share: Basic: Continuing operations $ 0.00 $ (0.00 ) $ (1.49 ) $ (0.24 ) Discontinued operations − (0.14 ) − (0.12 ) Net income (loss) $ 0.00 $ (0.14 ) $ (1.49 ) $ (0.36 ) Diluted: Continuing operations $ 0.00 $ (0.00 ) $ (1.49 ) $ (0.24 ) Discontinued operations − (0.14 ) − (0.12 ) Net income (loss) $ 0.00 $ (0.14 ) $ (1.49 ) $ (0.36 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Stock options excluded 150,000 770,000 480,000 770,000 Weighted average exercise price of stock options $ 2.96 $ 1.73 $ 1.89 $ 1.73 Average market price of common stock $ 2.41 $ 1.38 $ 2.48 $ 1.37 |
Note 12 - Stock-based Compens_2
Note 12 - Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Wtd. Avg. Ex. Price Aggregate Outstanding at September 30, 2019 770,000 $ 1.73 $ 352,700 Granted ‒ ‒ ‒ Exercised (123,334 ) $ 1.20 $ 304,568 Expired – – – Forfeited (166,666 ) $ 1.35 $ 347,999 Outstanding at June 30, 2020 480,000 $ 1.89 $ 742,800 Exercisable at June 30, 2020 376,667 $ 1.99 $ 546,101 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Nine Months Ended June 30, 2020 Fiscal year 2017 grant $ (5,652 ) Fiscal year 2019 grants $ (1,476 ) |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months ended Nine Months ended Operating lease cost: Operating lease cost $ 296,677 $ 943,834 Impairment of right of use asset 660,242 660,242 Operating lease cost $ 956,919 $ 1,604,076 Finance lease cost: Amortization of right-of-use assets $ 71,925 $ 198,289 Interest on lease liabilities 18,220 43,182 Total finance lease cost $ 90,145 $ 241,471 |
Lessee, Operating and Finance Lease, Supplemental Cash Flow Information [Table Text Block] | June 30, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 768,784 Operating cash flows from finance leases $ 43,182 Financing cash flows from finance leases $ 277,061 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,076,700 Finance leases $ 718,058 |
Lessee, Operating and Finance Lease, Supplemental Balance Sheet Information [Table Text Block] | June 30, 2020 Operating l eases Operating lease right-of-use assets $ 4,158,786 Operating lease obligations - current $ 1,224,630 Operating lease obligations 3,809,803 Total operating lease liabilities $ 5,034,433 Finance leases Property and equipment, gross $ 1,462,865 Accumulated depreciation (210,253 ) Property and equipment, net $ 1,252,612 Financing lease obligations - current $ 328,151 Financing lease obligations 855,052 Total finance lease liabilities $ 1,183,203 Weighted Average Remaining Lease Term Operating leases (in years) 3.94 Finance leases (in years) 3.98 Weighted Average Discount Rate Operating leases 5.00 % Finance leases 4.96 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Operating Finance Leases 2020 $ 355,239 $ 140,761 2021 1,440,544 314,093 2022 1,468,081 295,617 2023 1,369,882 281,636 2024 802,026 227,541 Thereafter 150,478 44,334 Total lease payments 5,586,250 1,303,982 Less imputed interest 555,817 120,779 Total $ 5,034,433 $ 1,183,203 |
Note 14 - Segment Reporting (Ta
Note 14 - Segment Reporting (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Sales Wireless $ 5,123,175 $ 8,733,444 $ 16,592,907 $ 12,951,368 Telco 6,898,645 8,825,871 21,350,396 24,307,984 Total sales $ 12,021,820 $ 17,559,315 $ 37,943,303 $ 37,259,352 Gross profit Wireless $ 2,251,153 $ 2,235,406 $ 4,298,915 $ 3,524,164 Telco 1,919,426 2,351,999 3,025,009 6,263,146 Total gross profit $ 4,170,579 $ 4,587,405 $ 7,323,924 $ 9,787,310 Loss from operations Wireless $ (253,416 ) $ (454,672 ) $ (4,136,645 ) $ (1,568,255 ) Telco (896,561 ) 201,593 (13,483,096 ) (1,042,122 ) Total loss from operations $ (1,149,977 ) $ (253,079 ) $ (17,619,741 ) $ (2,610,377 ) June 30, 2020 September 30, 2019 Segment assets Wireless $ 5,082,120 $ 5,515,793 Telco 12,274,168 22,619,565 Non-allocated 18,753,302 8,692,986 Total assets $ 36,109,590 $ 36,828,344 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 12,021,820 | $ 17,559,315 | $ 37,943,303 | $ 37,259,352 | |
Wireless Services [Member] | |||||
Contract with Customer, Liability, Revenue Recognized | 500,000 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member] | |||||
Concentration Risk, Percentage | 14.00% | ||||
International Regions Excluding Central America and South America [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 700,000 | $ 600,000 | $ 1,500,000 | $ 1,600,000 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Total | 700,000 | 700,000 | $ 2,700,000 | ||
Contract with Customer, Liability, Total | $ 200,000 | 200,000 | $ 100,000 | ||
Contract with Customer, Liability, Revenue Recognized | $ 100,000 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Sales | $ 12,021,820 | $ 17,559,315 | $ 37,943,303 | $ 37,259,352 |
Telco [Member] | Operating Segments [Member] | ||||
Sales | 6,898,645 | 8,825,871 | 21,350,396 | 24,307,984 |
Wireless Services [Member] | ||||
Sales | 5,123,176 | 8,733,444 | 16,592,907 | 12,951,368 |
Equipment Sales [Member] | Intersegment Eliminations [Member] | ||||
Sales | (23,033) | (5,305) | (23,033) | (49,452) |
Equipment Sales [Member] | Telco [Member] | Operating Segments [Member] | ||||
Sales | 6,147,676 | 7,989,318 | 19,912,137 | 22,876,047 |
Telco Repair [Member] | ||||
Sales | 33,236 | 31,142 | 49,438 | 36,542 |
Telco Recycle [Member] | ||||
Sales | $ 740,765 | $ 810,716 | $ 1,411,854 | $ 1,444,847 |
Note 3 - Accounts Receivable _2
Note 3 - Accounts Receivable Agreements (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Restricted Cash, Total | $ 105,117 | $ 105,117 | $ 351,909 | ||
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 | 500,000 | 500,000 | |||
Sale of Receivables, Maximum Limit of Receivables Uncollected | 4,000,000 | 4,000,000 | |||
Proceeds from Collection of Finance Receivables | 15,900,000 | $ 9,900,000 | |||
Certain Receivables to Unrelated Third-parties [Member] | Other Nonoperating Income (Expense) [Member] | |||||
Cost of Selling Receivables | $ 100,000 | $ 100,000 | $ 300,000 | $ 200,000 | |
Certain Receivables to Unrelated Third-parties [Member] | Minimum [Member] | |||||
Receivables, Cost of Sales, Percent | 1.00% | 2019.00% | |||
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) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Mar. 10, 2020 | |
Loan Agreement with Primary Financial Leader [Member] | |||
Debt Instrument, Face Amount | $ 3.5 | ||
Leveling 8 [Member] | Promissory Note [Member] | |||
Proceeds from Collection of Notes Receivable, Gross | $ 1.7 | $ 0.7 | |
Proceeds from Collection of Notes Receivable, Interest | $ 0.1 | ||
Proceeds from Collection of Notes Receivable, Principal | 1.4 | ||
Notes Receivable, Balloon Payment to Be Received at Maturity | 2.5 | ||
Proceeds from Collection of Notes Receivable, Prepayment Portion | $ 0.7 | ||
Notes Receivable, Interest Rate | 6.00% |
Note 4 - Promissory Note - Repa
Note 4 - Promissory Note - Repayment Installments (Details) | Jun. 30, 2020USD ($) |
Fiscal year 2021 | $ 1,400,000 |
Fiscal year 2022 | 940,000 |
Fiscal year 2023 | 940,000 |
Fiscal year 2024 | 1,725,754 |
Total proceeds | 5,005,754 |
Less: interest to be paid | (655,754) |
Promissory note principal balance | $ 4,350,000 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Inventory Write-down | $ 2,125,000 | $ 77,889 | |
Inventory Valuation Reserves, Ending Balance | 3,400,000 | $ 1,275,000 | |
Telco [Member] | |||
Inventory Write-down | 2,100,000 | ||
Inventory Valuation Reserves, Ending Balance | $ 3,400,000 | $ 1,300,000 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Allowance for excess and obsolete inventory | $ (3,400,000) | $ (1,275,000) |
Total inventories, net | 5,964,490 | 7,625,573 |
New Inventory [Member] | ||
Inventory | 1,174,899 | 1,496,145 |
Refurbished and Used Inventory [Member] | ||
Inventory | $ 8,189,591 | $ 7,404,428 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Telco [Member] | COVID-19 Pandemic [Member] | Customer Relationships [Member] | |
Impairment of Intangible Assets, Finite-lived | $ 3.9 |
Note 6 - Intangible Assets - Sc
Note 6 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Gross | $ 10,889,000 | $ 10,889,000 |
Accumulated Amortization | (5,490,106) | (4,886,002) |
Impairment | (3,894,121) | |
Net | 1,504,773 | 6,002,998 |
Customer Relationships [Member] | ||
Gross | 8,396,000 | 8,396,000 |
Accumulated Amortization | (3,991,306) | (3,547,389) |
Impairment | (3,894,121) | |
Net | 510,573 | 4,848,611 |
Trade Names [Member] | ||
Gross | 2,119,000 | 2,119,000 |
Accumulated Amortization | (1,124,800) | (966,280) |
Impairment | ||
Net | 994,200 | 1,152,720 |
Noncompete Agreements [Member] | ||
Gross | 374,000 | 374,000 |
Accumulated Amortization | (374,000) | (372,333) |
Impairment | ||
Net | $ 1,667 |
Note 6 - Intangible Assets - _2
Note 6 - Intangible Assets - Schedule of Intangible Assets (Details) (Parentheticals) | 9 Months Ended |
Jun. 30, 2020 | |
Customer Relationships [Member] | |
Finite-lived intangible asset, useful life (Year) | 10 years |
Trade Names [Member] | |
Finite-lived intangible asset, useful life (Year) | 10 years |
Noncompete Agreements [Member] | |
Finite-lived intangible asset, useful life (Year) | 3 years |
Note 7 - Goodwill (Details Text
Note 7 - Goodwill (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Jun. 30, 2020 | |
Number of Reporting Units | 2 | |
COVID-19 Pandemic [Member] | Telco [Member] | ||
Goodwill, Impairment Loss | $ 4.8 |
Note 8 - Notes Payable and Li_2
Note 8 - Notes Payable and Line of Credit (Details Textual) | Apr. 14, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 10, 2020USD ($) |
Repayments of Notes Payable | $ 1,621,597 | $ 1,246,279 | ||||
Proceeds from Notes Payable, Total | 6,373,929 | |||||
Leveling 8 [Member] | Promissory Note [Member] | ||||||
Proceeds from Collection of Notes Receivable, Gross | $ 1,700,000 | $ 700,000 | ||||
Loan Agreement [Member] | ||||||
Debt Instrument, Face Amount | $ 3,500,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Repayments of Notes Payable | 1,600,000 | |||||
Repayments of Debt, Prepayment Portion | 1,000,000 | |||||
Long-term Debt, Total | 1,900,000 | 1,900,000 | ||||
New Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | $ 4,000,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.25% | 3.25% | ||||
Long-term Line of Credit, Total | $ 2,800,000 | $ 2,800,000 | ||||
Percentage of Qualified Accounts Receivable Used in Determination of Maximum Borrowing Capacity of Line of Credit | 80.00% | 80.00% | ||||
Percentage of Qualified Inventory Used in Determination of Maximum Borrowing Capacity of Line of Credit | 25.00% | 25.00% | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 3,100,000 | $ 3,100,000 | ||||
Loan Agreement with Primary Financial Leader [Member] | ||||||
Debt Instrument, Face Amount | $ 3,500,000 | |||||
Fixed Charge Coverage Ratio, Minimum Requirement | 1.25 | |||||
Paycheck Protection Program CARES Act [Member] | ||||||
Proceeds from Notes Payable, Total | $ 2,900,000 | |||||
Debt Instrument, Periodic Payment, Total | $ 164,045 |
Note 9 - Equity Distribution _2
Note 9 - Equity Distribution Agreement and Sale of Common Stock (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 24, 2020 | Sep. 30, 2019 | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Proceeds from Issuance of Common Stock | $ 1,828,852 | |||||
Sales Agreement With Northland [Member] | ||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | |||||
Equity Distribution Agreement, Maximum Amount | $ 13,850,000 | |||||
Equity Distribution Agreement, Commission Rate | 3.00% | 3.00% | ||||
Stock Issued During Period, Shares, New Issues (in shares) | 573,199 | |||||
Proceeds from Issuance of Common Stock | $ 2,200,000 | |||||
Proceeds from Issuance of Common Stock, Net | 2,100,000 | |||||
Sales Agreement With Northland [Member] | Other Current Assets [Member] | ||||||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 300,000 | $ 300,000 | ||||
Sales Agreement With Northland [Member] | Subsequent Event [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 80,043 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2019 | |
Deferred Income Tax Assets, Net, Total | $ 1,220,564 | |
Domestic Tax Authority [Member] | ||
Deferred Income Tax Assets, Net, Total | 1,200,000 | |
Deferred Income Tax Expense (Benefit), Total | (1,200,000) | |
Deferred Tax Assets, Valuation Allowance, Total | $ 9,400,000 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income (loss) from continuing operations | $ 23,350 | $ (58,195) | $ (16,355,423) | $ (2,472,665) |
Discontinued operations, net of tax | (1,426,970) | (1,267,344) | ||
Net income (loss) attributable to common shareholders | $ 23,350 | $ (1,485,165) | $ (16,355,423) | $ (3,740,009) |
Basic (in shares) | 11,079,580 | 10,361,292 | 10,955,235 | 10,361,292 |
Stock options (in shares) | 137,108 | |||
Diluted weighted average shares (in shares) | 11,216,688 | 10,361,292 | 10,955,235 | 10,361,292 |
Continuing operations (in dollars per share) | $ 0 | $ 0 | $ (1.49) | $ (0.24) |
Discontinued operations (in dollars per share) | (0.14) | (0.12) | ||
Net income (loss) (in dollars per share) | 0 | (0.14) | (1.49) | (0.36) |
Continuing operations (in dollars per share) | 0 | 0 | (1.49) | (0.24) |
Discontinued operations (in dollars per share) | (0.14) | (0.12) | ||
Net income (loss) (in dollars per share) | $ 0 | $ (0.14) | $ (1.49) | $ (0.36) |
Note 11 - Earnings Per Share _2
Note 11 - Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock options excluded (in shares) | 150,000 | 770,000 | 480,000 | 770,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 2.96 | $ 1.73 | $ 1.89 | $ 1.73 |
Average market price of common stock (in dollars per share) | $ 2.41 | $ 1.38 | $ 2.48 | $ 1.37 |
Note 12 - Stock-based Compens_3
Note 12 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Oct. 31, 2018 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 7,202 | ||
Nonqualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 237,014 | ||
Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||
Employees [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||
Employees [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | ||
Employees [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||
Board Of Directors [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 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 (in shares) | 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% | ||
Board of Directors Chairman [Member] | Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||
The 2015 Incentive Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 1,000,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 2,100,415 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 936,806 |
Note 12 - Stock-based Compens_4
Note 12 - Stock-based Compensation - Summary of the Status of the Company's Stock Options (Details) | 9 Months Ended | |
Jun. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | |
Outstanding (in shares) | shares | 770,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 1.73 | |
Outstanding, aggregate intrinsic value | $ | $ 742,800 | $ 352,700 |
Granted (in shares) | shares | ||
Granted, weighted average exercise price (in dollars per share) | $ / shares | ||
Exercised (in shares) | shares | 123,334 | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 1.20 | |
Exercised, aggregate intrinsic value | $ | $ 304,568 | |
Expired (in shares) | shares | ||
Expired, weighted average exercise price (in dollars per share) | $ / shares | ||
Forfeited (in shares) | shares | (166,666) | |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 1.35 | |
Forfeited, aggregate intrinsic value | $ | $ 347,999 | |
Outstanding (in shares) | shares | 480,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 1.89 | |
Exercisable (in shares) | shares | 376,667 | |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 1.99 | |
Exercisable, aggregate intrinsic value | $ | $ 546,101 |
Note 12 - Stock-based Compens_5
Note 12 - Stock-based Compensation - Compensation Expense Related to Stock Options (Details) - Share-based Payment Arrangement, Option [Member] | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Fiscal Year 2017 [Member] | |
Compensation expense | $ (5,652) |
Fiscal Year 2019 [Member] | |
Compensation expense | $ (1,476) |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | |
Operating Lease, Right-of-Use Asset | $ 4,158,786 | $ 4,158,786 | ||||
Operating Lease, Liability, Total | 5,034,433 | 5,034,433 | ||||
Finance Lease, Right-of-Use Asset | 1,462,865 | 1,462,865 | ||||
Finance Lease, Liability, Total | 1,183,203 | 1,183,203 | ||||
Operating Lease, Impairment Loss | $ 660,242 | 660,242 | ||||
Telco [Member] | ||||||
Operating Lease, Impairment Loss | $ 700,000 | |||||
Minimum [Member] | ||||||
Lessee, Operating and Finance Lease, Remaining Lease Term (Year) | 1 year | |||||
Maximum [Member] | ||||||
Lessee, Operating and Finance Lease, Remaining Lease Term (Year) | 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 13 - Leases - Components o
Note 13 - Leases - Components of Lease Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating lease cost | $ 296,677 | $ 943,834 | ||
Impairment of right of use asset | 660,242 | 660,242 | ||
Operating lease cost | 956,919 | 1,604,076 | ||
Amortization of right-of-use assets | 71,925 | 198,289 | ||
Interest on lease liabilities | 18,220 | 43,182 | ||
Total finance lease cost | $ 90,145 | $ 241,471 |
Note 13 - Leases - Supplemental
Note 13 - Leases - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating cash flows from operating leases | $ 768,784 | |
Operating cash flows from finance leases | 43,182 | |
Financing cash flows from finance leases | 277,061 | |
Right-of-use assets obtained in exchange for operating leases | 1,076,700 | |
Right-of-use assets obtained in exchange for finance leases | $ 718,058 |
Note 13 - Leases - Supplement_2
Note 13 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Right-of-use operating lease assets | $ 4,158,786 | |
Operating lease obligations – current | 1,224,630 | |
Operating lease obligations | 3,809,803 | |
Total operating lease liabilities | 5,034,433 | |
Property and equipment, gross | 1,462,865 | |
Accumulated depreciation | (210,253) | |
Property and equipment, net | 1,252,612 | |
Financing lease obligations – current | 328,151 | |
Financing lease obligations | 855,052 | |
Total finance lease liabilities | $ 1,183,203 | |
Weighted Average Remaining Lease Term, Operating leases (Year) | 3 years 343 days | |
Weighted Average Remaining Lease Term, Finance leases (Year) | 3 years 357 days | |
Weighted Average Discount Rate, Operating leases | 5.00% | |
Weighted Average Discount Rate, Finance leases | 4.96% |
Note 13 - Leases - Maturities o
Note 13 - Leases - Maturities of Lease Liabilities (Details) | Jun. 30, 2020USD ($) |
2020, operating leases | $ 355,239 |
2020, finance leases | 140,761 |
2021, operating leases | 1,440,544 |
2021, finance leases | 314,093 |
2022, operating leases | 1,468,081 |
2022, finance leases | 295,617 |
2023, operating leases | 1,369,882 |
2023, finance leases | 281,636 |
2024, operating leases | 802,026 |
2024, finance leases | 227,541 |
Thereafter, operating leases | 150,478 |
Thereafter, finance leases | 44,334 |
Total lease payments, operating leases | 5,586,250 |
Total lease payments, finance leases | 1,303,982 |
Less imputed interest, operating leases | 555,817 |
Less imputed interest, finance leases | 120,779 |
Total, operating leases | 5,034,433 |
Total, finance leases | $ 1,183,203 |
Note 14 - Segment Reporting - S
Note 14 - Segment Reporting - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Sales | $ 12,021,820 | $ 17,559,315 | $ 37,943,303 | $ 37,259,352 | |
Gross profit | 4,170,579 | 4,587,405 | 7,323,924 | 9,787,310 | |
Operating income (loss) | (1,149,977) | (253,079) | (17,619,741) | (2,610,377) | |
Segment assets | 36,109,590 | 36,109,590 | $ 36,828,344 | ||
Operating Segments [Member] | Wireless [Member] | |||||
Sales | 5,123,175 | 8,733,444 | 16,592,907 | 12,951,368 | |
Gross profit | 2,251,153 | 2,235,406 | 4,298,915 | 3,524,164 | |
Operating income (loss) | (253,416) | (454,672) | (4,136,645) | (1,568,255) | |
Operating Segments [Member] | Wireless [Member] | Continuing Operations [Member] | |||||
Segment assets | 5,082,120 | 5,082,120 | 5,515,793 | ||
Operating Segments [Member] | Telco [Member] | |||||
Sales | 6,898,645 | 8,825,871 | 21,350,396 | 24,307,984 | |
Gross profit | 1,919,426 | 2,351,999 | 3,025,009 | 6,263,146 | |
Operating income (loss) | (896,561) | $ 201,593 | (13,483,096) | $ (1,042,122) | |
Operating Segments [Member] | Telco [Member] | Continuing Operations [Member] | |||||
Segment assets | 12,274,168 | 12,274,168 | 22,619,565 | ||
Segment Reconciling Items [Member] | |||||
Segment assets | $ 18,753,302 | $ 18,753,302 | $ 8,692,986 |