Cover
Cover - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 27, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-10799 | ||
Entity Registrant Name | ADDvantage Technologies Group, Inc. | ||
Entity Incorporation, State or Country Code | OK | ||
Entity Tax Identification Number | 73-1351610 | ||
Entity Address, Address Line One | 1430 Bradley Lane | ||
Entity Address, Address Line Two | Suite 196 | ||
Entity Address, City or Town | Carrollton | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75007 | ||
City Area Code | 918 | ||
Local Phone Number | 251-9121 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | AEY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22,959,185 | ||
Entity Common Stock, Shares Outstanding | 12,739,686 | ||
Entity Central Index Key | 0000874292 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,608 | $ 8,265 |
Restricted cash | 334 | 108 |
Accounts receivable, net of allowances of $250 | 7,013 | 3,968 |
Unbilled revenue | 2,488 | 590 |
Promissory note, current | 0 | 1,400 |
Income tax receivable | 0 | 1,283 |
Inventories, net of allowance of $3,476 and $3,054, respectively | 5,922 | 5,576 |
Prepaid expenses and other current assets | 1,431 | 884 |
Total current assets | 19,796 | 22,074 |
Property and equipment, at cost: | ||
Machinery and equipment | 4,973 | 3,500 |
Leasehold improvements | 813 | 720 |
Total property and equipment, at cost | 5,786 | 4,220 |
Less: Accumulated depreciation | (2,293) | (1,586) |
Net property and equipment | 3,493 | 2,634 |
Right-of-use lease assets | 2,730 | 3,758 |
Promissory note, long-term | 0 | 2,375 |
Intangibles, net of accumulated amortization | 1,107 | 1,425 |
Goodwill | 58 | 58 |
Other assets | 128 | 179 |
Total assets | 27,312 | 32,503 |
Current liabilities: | ||
Accounts payable | 7,044 | 3,472 |
Accrued expenses | 1,581 | 1,277 |
Deferred revenue | 168 | 113 |
Bank line of credit | 2,050 | 2,800 |
Notes payable, current | 0 | 1,709 |
Right-of-use lease obligations, current | 1,198 | 1,275 |
Finance lease obligations, current | 582 | 285 |
Other current liabilities | 692 | 83 |
Total current liabilities | 13,315 | 11,014 |
Non-current Liabilities | ||
Note payable | 0 | 2,440 |
Right-of-use lease obligations, long-term | 2,141 | 3,310 |
Finance lease obligations, long-term | 1,429 | 791 |
Other liabilities | 0 | 15 |
Total liabilities | 16,885 | 17,570 |
Shareholders’ equity: | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 12,610,229 and 11,822,009 shares issued and outstanding, respectively | 126 | 118 |
Paid in capital | (578) | (2,567) |
Retained earnings | 10,879 | 17,382 |
Total shareholders’ equity | 10,427 | 14,933 |
Total liabilities and shareholders’ equity | $ 27,312 | $ 32,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 250 | $ 250 |
Inventory valuation reserves | $ 3,476 | $ 3,054 |
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock issuance (in shares) | 12,610,229 | 11,822,009 |
Common stock, shares, outstanding (in shares) | 12,610,229 | 11,822,009 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 62,160 | $ 50,182 |
Cost of sales | 46,033 | 38,502 |
Gross profit | 16,127 | 11,680 |
Operating expenses | 9,329 | 8,166 |
Selling, general and administrative expense | 14,890 | 11,249 |
Impairment of right-of-use asset | 0 | 660 |
Impairment of intangibles including goodwill | 0 | 8,714 |
Depreciation and amortization expense | 1,228 | 1,554 |
Gain on disposal of assets | 23 | 133 |
Loss from operations | (9,297) | (18,530) |
Other income (expense): | ||
Gain on extinguishment of debt | 2,955 | 0 |
Interest income | 135 | 321 |
Interest expense | (238) | (254) |
Income from equity method investment | 0 | 41 |
Other expense | (110) | (160) |
Other income (expense), net | 2,742 | (52) |
Loss before income taxes | (6,555) | (18,582) |
Income tax benefit | (53) | (1,249) |
Net loss | $ (6,502) | $ (17,333) |
Loss per share: | ||
Basic (in dollars per share) | $ (0.52) | $ (1.55) |
Diluted (in dollars per share) | $ (0.52) | $ (1.55) |
Shares used in per share calculation: | ||
Basic (in shares) | 12,401,043 | 11,163,660 |
Diluted (in shares) | 12,401,043 | 11,163,660 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid in Capital | Retained Earnings | Treasury Stock |
Balance (in shares) at Sep. 30, 2019 | 10,861,950 | ||||
Balance at Sep. 30, 2019 | $ 29,447 | $ 109 | $ (4,377) | $ 34,715 | $ (1,000) |
Net loss | (17,333) | (17,333) | |||
Treasury stock, net (in shares) | (500,658) | ||||
Treasury stock, net | 0 | $ (5) | (995) | 1,000 | |
Common stock issuance (in shares) | 573,199 | ||||
Common stock issuance | 2,109 | $ 6 | 2,103 | ||
Stock options, exercised (in shares) | 123,334 | ||||
Stock option exercise | 205 | $ 1 | 204 | ||
Restricted stock issuance (in shares) | 764,184 | ||||
Restricted stock issuance | (69) | $ 7 | (76) | ||
Amortization of stock-based compensation | 574 | 574 | |||
Balance (in shares) at Sep. 30, 2020 | 11,822,009 | ||||
Balance at Sep. 30, 2020 | 14,933 | $ 118 | (2,567) | 17,382 | 0 |
Net loss | (6,502) | (6,502) | |||
Common stock issuance (in shares) | 245,973 | ||||
Common stock issuance | $ 899 | $ 2 | 897 | ||
Stock options, exercised (in shares) | 49,000 | 49,000 | |||
Stock option exercise | $ 89 | $ 1 | 88 | ||
Restricted stock issuance (in shares) | 493,247 | ||||
Restricted stock issuance | 0 | $ 5 | (5) | ||
Amortization of stock-based compensation | 1,009 | 1,009 | |||
Balance (in shares) at Sep. 30, 2021 | 12,610,229 | ||||
Balance at Sep. 30, 2021 | $ 10,427 | $ 126 | $ (578) | $ 10,879 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net income (loss) | $ (6,502) | $ (17,333) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 910 | 868 |
Amortization | 318 | 687 |
Non cash amortization of right-of-use asset and liability | (288) | 225 |
Charge for lower of cost or net realizable value inventories | 105 | 60 |
Impairment of right-of-use asset | 0 | 660 |
Impairment of intangibles including goodwill | 0 | 8,714 |
Gain on disposal of property and equipment | (23) | (133) |
Share based compensation expense | 1,009 | 574 |
Gain from equity method investment | 0 | (41) |
Gain on extinguishment of debt | (2,955) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,045) | 859 |
Unbilled revenue | (1,899) | 2,101 |
Income tax refund receivable\payable | 1,284 | (1,262) |
Inventories | (875) | 27 |
Prepaid expenses and other current assets | (547) | (147) |
Other assets | 51 | (2) |
Accounts payable | 3,572 | (1,259) |
Accrued expenses | 898 | (220) |
Deferred revenue | 55 | 16 |
Net cash used in operating activities | (7,510) | (3,824) |
Investing Activities: | ||
Proceeds from promissory note receivable | 3,775 | 2,600 |
Loan repayments from equity method investee | 0 | 41 |
Purchases of property and equipment | (300) | (608) |
Disposals of property and equipment | 44 | 361 |
Net cash provided by investing activities | 3,519 | 2,394 |
Financing Activities: | ||
Change in bank line of credit | (750) | 2,800 |
Proceeds from note payable | 0 | 6,372 |
Guaranteed payments for acquisition of business | 0 | (667) |
Payments on financing lease obligations | (484) | (388) |
Payments on notes payable | (1,194) | (2,223) |
Proceeds from sale of common stock | 899 | 2,109 |
Proceeds from stock options exercised | 89 | 206 |
Net cash (used in) provided by financing activities | (1,440) | 8,209 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (5,431) | 6,779 |
Cash, cash equivalents and restricted cash at beginning of year | 8,373 | 1,594 |
Cash, cash equivalents and restricted cash at end of year | $ 2,942 | $ 8,373 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and basis of presentation The consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”). Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Wireless Infrastructure Services (“Wireless”) and Telecommunications (“Telco”). Reclassifications Certain prior year amounts have been reclassified to conform with the current year's presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. Cash, cash equivalents and restricted cash Cash and cash equivalents include demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. Restricted cash consists of cash held by a third-party financial institution as a reserve in connection with an agreement to sell certain receivables with recourse in the Wireless segment, see Note 3 - Accounts Receivable Agreements. Revenue recognition The Company recognizes revenue at the time a good or service is transferred to a customer and the customer, obtains control of that good or receives the service performed. Most of the Company’s sales arrangements with customers are short-term in nature involving single performance obligations related to the delivery of goods or repair of equipment and generally provide for transfer of control at the time of shipment to the customer. The Company generally permits returns of product or repaired equipment due to defects, historically, returns have not been significant. Additionally, the Company provides services related to the installation and upgrade of technology on cell sites and the construction of new small cells for 5G technology. The work under the purchase orders for wireless infrastructure services are generally completed in less than a month. These services generally consist of a single performance obligation which the Company recognizes as revenue over time. The Company uses an input method based upon a ratio of direct costs incurred to date compared to management’s estimate of the total direct costs to be incurred on each contract, since it best depicts the transfer of control to the customer. The Company’s principal sales are from Wireless services, sales of Telco equipment and Telco recycled equipment. The Company’s customers include wireless carriers, wireless equipment providers, multiple system operators, resellers and direct sales to end-user customers. 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, on the consolidated balance sheets. Accounts receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not charge interest on past due accounts. For the Company’s Wireless segment, the Company has entered into various agreements, one with recourse, to sell certain receivables to unrelated third-party financial institutions. The other agreements without recourse are under programs offered by certain customers of the Wireless segment. The Company accounts for these transactions in accordance with Accounting Standards Codification (“ASC”) 860, “Transfers and Servicing” (“ASC 860”). ASC 860 allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from accounts receivable, net on the consolidated balance sheets. Receivables are considered sold when they are transferred beyond the reach of the Company and its creditors, the purchaser has the right to pledge or exchange the receivables and the Company has surrendered control over the transferred receivables. The Company records a recourse obligation if it determines that any portion of the sold receivables with recourse are uncollectible. Inventories For the Telco segment, inventories consist of new, refurbished and used telecommunications equipment. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the weighted-average method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For the Telco segment, the Company records an inventory reserve provision to reflect inventory at its estimated net realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. Leases The Company determines if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as either a right-of-use ("ROU") lease or a finance lease. We capitalize ROU leases on our consolidated balance sheets through a ROU asset and a corresponding ROU lease liability. ROU assets represent our right to use an underlying asset for the lease term and ROU lease liabilities represent our obligation to make lease payments arising from the lease. ROU leases are included in long-term assets and ROU lease liabilities are classified as either current or long-term liabilities in our consolidated balance sheets. ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. Lease expense for ROU lease payments is recognized on a straight-line basis over the lease term. Property and equipment Property and equipment consist of software, office equipment, wireless services equipment and warehouse and service equipment with estimated useful lives generally of 3 years, 5 years, 7 years, and 10 years, respectively. The wireless services equipment includes mobile wireless temporary towers, equipment trailers and construction equipment. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the useful lives or the remainder of the lease agreement. Gains or losses from the ordinary sale or retirement of property and equipment are recorded and included in operating expense. Repairs and maintenance costs are generally expensed as incurred, whereas major improvements are capitalized. Depreciation expense was $0.9 million in each of the years ended September 30, 2021 and 2020. Goodwill Goodwill represents the excess of purchase price of acquisitions over the acquisition date fair value of the net assets of businesses acquired. Goodwill is not amortized and is tested at least annually for impairment. The Company performs its annual analysis during the fourth quarter of each fiscal year and in any other period in which indicators of impairment warrant additional analysis. Goodwill is evaluated for impairment by comparing the estimate of the fair value of each reporting unit, or operating segment, with the reporting unit’s carrying value, including goodwill. The reporting units for purposes of the goodwill impairment calculation are aggregated into the Wireless segment and ADDvantage Triton LLC (Triton) operating segment, and Nave Communications Company (Nave) operating segment. Management utilizes a discounted cash flow analysis to determine the estimated fair value of each reporting unit. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate, gross margins and operating expenses are inherent in these fair value estimates. As a result, actual results may differ from the estimates utilized in the discounted cash flow analysis. The use of alternate judgments and/or assumptions could result in the recognition of different levels of impairment charges in the financial statements. During the year ended September 30, 2020, due to operating losses and uncertainties surrounding the impact of the COVID-19 pandemic on the overall economy and the resulting impact on the capital budgets of both Customers and our Company, we determined that impairment indicators were present. The Company performed a valuation using a discounted cash flow analysis for the Nave and Triton operating segments to determine if the fair value exceeded their respective carrying values. For both Nave and Triton, the fair value for each was less than their respective carrying values. Therefore, the Company recorded an impairment charge of $4.8 million as of March 31, 2020, which fully impaired goodwill for both operating segments in the Telco segment. Although the Company does not anticipate a future impairment charge, certain events could occur that might adversely affect the reported value of the remaining goodwill in the Wireless segment, which was $0.1 million at September 30, 2021. Intangible assets Intangible assets consist of customer relationships, trade names, and intellectual property. Intangibles assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 years to 10 years. Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. Income taxes The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. Advertising costs Advertising costs are expensed as incurred. Advertising expense was $0.4 million and $0.5 million for the years ended September 30, 2021 and 2020, respectively. Management estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the wireless infrastructure or telecommunications industries could have a significant impact on the value of the Company's inventory and operating results. Concentrations of risk The Company holds cash with one major financial institution, which at times exceeds FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. As of September 30, 2021, one Telco customer accounted for 31% of accounts receivable, and one Wireless customer accounted for 28% of accounts receivable. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers but does not require collateral to support customer receivables. Share-based compensation ADDvantage compensates our directors and executives using time-based stock options and restricted shares awards (RSA's). ADDvantage accounts for share-based payment awards under ASC 718 - Compensation - Stock Compensation (ASC 718) , which requires that the value of the award is established at the date of the grant and is expensed over the vesting period of the grant. The method of determining the fair value of share-based payments depends on the type of award. Share-based awards that vest over a certain service period with no market conditions are valued at the closing market price on the grant date. Option grants are valued using the Black-Scholes-Merton model using model inputs that are determined on the date of the grant. Once the per-share fair value on the grant date is established, the aggregate expense of the grant is recognized on a graded vesting basis over the vesting period of the grant. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. 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. Retirement Plan The Company sponsors a 401(k) plan that allows participation by all employees who are at least 21 years of age and have completed over 60 days of service. The Company's contributions to the plan consist of a matching contribution as determined by the plan document. Costs recognized under the 401(k) plan were $0.2 million and, $0.1 million for the years ended September 30, 2021 and September 30, 2020, respectively, after temporarily suspending matching contributions during 2020. Recently issued accounting standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” This ASU requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Upon adoption, entities will use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. On November 15, 2019, the FASB delayed the effective date of the standard for companies that qualify under smaller reporting company reporting rules. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the Securities and Exchange Commission definition. We are currently in the process of evaluating this new standard update, however we do not anticipate the adoption will have a material impact on our results. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s principal sales are from Wireless services, sales of Telco equipment and Telco recycled equipment, primarily in the United States. Sales to international customers in Central and South America totaled approximately $4.7 million and $1.9 million in the years ended September 30, 2021 and 2020, respectively. 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 18% of consolidated sales. Sales by type were as follows, in thousands: Years Ended September 30, 2021 2020 Wireless services sales $ 20,708 $ 21,354 Equipment sales: Telco 40,663 27,109 Inter-segment (101) (25) Telco repair sales 27 68 Telco recycle sales 863 1,676 Total sales $ 62,160 $ 50,182 At September 30, 2021 contract assets were $2.5 million and contract liabilities were $0.2 million. There were $0.6 million in contract assets and $0.1 million in contract liabilities at September 30, 2020. During the year ended September 30, 2021, the Company recognized $0.1 million as revenue from amounts classified as deferred revenue on our consolidated balance sheet at September 30, 2020. |
Accounts Receivable Agreements
Accounts Receivable Agreements | 12 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable Agreements | Accounts Receivable Agreements The Company’s Wireless segment has entered into an agreement to sell certain receivables with recourse to an unrelated third-party financial institution. The Company is responsible for collecting payments on the sold receivables from its customers. Under this agreement, the third-party financial institution advances the Company 90% of the sold receivables and establishes a reserve of 10% of the sold receivables until the Company collects the sold receivables. In addition, the third party financial institution will charge and deduct 1.6% of sold receivables. As the Company collects the sold receivables, the third-party financial institution will remit the remaining 10% to the Company. At September 30, 2021, the third-party financial institution has a reserve against the sold receivables of $0.3 million, which is reflected as restricted cash. For the receivables sold under the agreement with recourse, the agreement addresses events and conditions which may obligate the Company to immediately repay the institution the outstanding purchase price of the receivables sold. The total amount of receivables uncollected by the institution was $2.1 million at September 30, 2021, for which there is a limit of $3.5 million. Although the sale of receivables is with recourse, the Company did not record a recourse obligation at September 30, 2021 as the Company determined the sold receivables are collectible. For the year ended September 30, 2021, the Company received proceeds from the sold receivables under all of their various agreements of $18.3 million and included the proceeds in net cash provided by operating activities in the consolidated statements of cash flows. The Company recorded related costs of $0.2 million for the year ended September 30, 2021, in other expense in the consolidated statements of operations. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, which are all within the Telco segment, at September 30, 2021 and 2020 are as follows, in thousands: 2021 2020 New equipment $ 1,295 $ 1,311 Refurbished and used equipment 8,103 7,319 Allowance for excess and obsolete inventory: (3,476) (3,054) Total inventories, net $ 5,922 $ 5,576 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. Generally, the Company does not refurbish its used inventory until there is a sale of that product or to keep a certain quantity on hand. In the years ended September 30, 2021 and 2020, the Telco segment identified certain inventory that more than likely will not be sold or that the cost will not be recovered when it is processed through its recycling program. The Telco segment recorded inventory obsolescence charges of $0.4 million and $1.8 million for the years ended |
Intangible Assets
Intangible Assets | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The intangible assets with their associated accumulated amortization amounts at September 30, 2021 and September 30, 2020 are as follows, in thousands: September 30, 2021 Gross Accumulated Impairment Net Intangible assets: Customer relationships – 10 years $ 3,155 $ (2,780) $ — $ 375 Trade name – 10 years 2,122 (1,390) — 732 Non-compete agreements – 3 years 374 (374) — — Total intangible assets $ 5,651 $ (4,544) $ — $ 1,107 September 30, 2020 Gross Accumulated Impairment Net Intangible assets: Customer relationships – 10 years $ 8,396 $ (4,021) $ (3,894) $ 481 Trade name – 10 years 2,122 (1,178) — 944 Non-compete agreements – 3 years 374 (374) — — Total intangible assets $ 10,892 $ (5,573) $ (3,894) $ 1,425 As of March 31, 2020, the Company determined that changes in the economy related to the COVID-19 pandemic and the continued losses experienced in the Telco segment may cause the carrying amounts of its intangible assets to exceed their fair values. The Company performed an assessment of its intangible assets and determined that the carrying value of its customer relationships were in fact impaired based on valuation appraisals performed by the Company using a multi-period excess earnings model. Therefore, the Company recorded a $3.9 million impairment charge in the Telco segment as of March 31, 2020. Amortization expense was $0.3 million and $0.7 million for the years ended September 30, 2021 and 2020, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows, in thousands: 2022 $ 319 2023 319 2024 195 2025 107 2026 107 Thereafter 60 Total $ 1,107 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at September 30, 2021 and 2020 are as follows, in thousands: 2021 2020 Employee costs $ 1,255 $ 942 Taxes other than income tax (13) 49 Interest 5 23 Other, net 334 263 Total accrued expenses $ 1,581 $ 1,277 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Loan Agreement On March 10, 2020, the Company entered into a loan agreement with its primary financial lender for $3.5 million, bearing interest at 6% per annum. The loan was payable in seven semi-annual installments of principal and interest with the first payment occurring June 30, 2020. In connection with the $1.5 million payment received in the first fiscal quarter of 2021 from the promissory note receivable, the Company fully repaid the remaining $1.2 million of principal outstanding under this loan. Line of Credit and Notes Payable Credit Agreement The Company has a $4.0 million revolving line of credit agreement with its primary financial lender. The line of credit requires quarterly interest payments based on the Wall Street Journal Prime Rate ("WSJP" ) floating rate with a 4% minimum, and a fixed charge coverage ratio of 1.25x to be tested quarterly beginning June 30, 2021. At September 30, 2021, there was $2.1 million outstanding under the line of credit. Future borrowings under the line of credit are limited to the lesser of $4.0 million or the sum of 80% of eligible accounts receivable and 60% of eligible Telco segment inventory. Under these limitations, the Company’s total line of credit additional borrowing capacity over the amount outstanding was $1.9 million as of September 30, 2021. On December 14, 2021, the Company signed an agreement with its primary financial lender to extend the expiration date of its revolving line of credit to January 17, 2022. The Company is in the process of completing an annual extension which the Company expects will be completed by the new expiration date. Loan Covenant with Primary Financial Lender The credit agreement provides that the Company maintain a fixed charge coverage ratio (net cash flow to total fixed charge) of not less than 1.25 to 1.0 to be tested quarterly beginning June 30, 2021. The Company was not in compliance with this covenant at September 30, 2021. The Company notified its primary financial lender of the covenant violation, and on December 22, 2021, the primary financial lender granted a waiver of the covenant violation under the credit agreement. Paycheck Protection Program Loan On April 14, 2020, the Company entered into an unsecured loan in the amount of $2.9 million ("PPP Loan") with its primary lender pursuant to the Paycheck Protection Program ("PPP") which is sponsored by the Small Business Administration (“SBA”), and is part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as amended by the Paycheck Protection Program Flexibility Act of 2020 (“Flexibility Act”). The Company applied for and has been notified by the SBA that $2.9 million in eligible expenditures for payroll and other expenses described in the CARES Act has been forgiven. Loan and accrued interest forgiveness is reflected in the accompanying financial statements as a gain on extinguishment of debt. As of September 30, 2021, the aggregate maturities of debt for the next five years and thereafter are as follows, in thousands: 2022 $ 2,050 Thereafter — Total $ 2,050 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases ADDvantage adopted ASU No. 2016-02, Topic 842 (ASC 842) - Leases, effective October 1, 2019. This ASU requires lessees to recognize an operating lease or right-of-use ("ROU") asset and liability on the balance sheet for all ROU leases with an initial lease term greater than twelve months. ASU 2018-11 Leases – Targeted Improvements, allows for a practical expedient wherein all periods previously reported under ASC 840 will continue to be reported under ASC 840, and periods beginning October 1, 2019 and after are reported under ASC 842. ADDvantage elected to adopt this practical expedient along with the package of practical expedients, which allows the Company to combine lease and non-lease costs. As a lessee, ADDvantage leases its corporate office headquarters in Carrollton, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance facilities sufficient to support its operations in the area. ADDvantage leases these properties under either non-cancelable term leases many of which contain renewal options that can extend the lease term from one ROU lease expense consists of rent expense related to leases that were included in ROU assets under ASC 842. ADDvantage recognizes ROU lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable ROU lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of facilities or office equipment (for example, copiers). As a result of adopting ASC 842, on the effective date, the Company recognized ROU assets and liabilities of $4.6 million, and financing lease assets and liabilities of $1.4 million. ROU leases are included in ROU assets and current or long-term ROU obligations on the consolidated balance sheets. Finance leases are included in net property and equipment, and current or long-term finance lease obligations in the consolidated balance sheets. ROU 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 readily determinable. Impairment of ROU asset - The Company has a ROU for a building in Jessup, Maryland for Nave Communications. The Company ceased operations in Jessup, Maryland in May 2020, and vacated the Jessup, Maryland building. The building was partially subleased during fiscal year 2020. During the third quarter of 2020, the Company determined that the ROU asset was not recoverable and used an income approach to estimate its fair value, determining that the carrying value was partially impaired. Therefore, the Company recorded $0.7 million of impairment charges related to the lease in the Telco segment during the year ended September 30, 2020. The components of lease expense for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Right-of-use lease cost Impairment of right-of-use asset $ — $ 660 Right-of-use lease cost 1,160 926 Total right-of-use lease cost $ 1,160 $ 1,586 Finance lease costs Amortization assets under finance leases $ 412 $ 335 Interest on finance lease liabilities 75 59 Total finance lease cost $ 487 $ 394 Supplemental cash flow information related to leases for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,160 $ 1,586 Operating cash flows from finance leases $ 75 $ 59 Financing cash flows from finance leases $ 484 $ 388 Supplemental balance sheet information related to leases are as follows, in thousands: September 30, 2021 September 30, 2020 Right-of-use leases Right-of-use lease assets $ 2,730 $ 3,758 Right-of-use lease obligations - current $ 1,198 $ 1,275 Right-of-use lease obligations 2,141 3,310 Total right-of-use lease liabilities $ 3,339 $ 4,585 Finance leases Property and equipment, gross $ 2,843 $ 1,463 Accumulated depreciation (707) (393) Property and equipment, net $ 2,136 $ 1,070 Financing lease obligations - current $ 582 $ 285 Financing lease obligations 1,429 791 Total finance lease liabilities $ 2,011 $ 1,076 Weighted Average Remaining Lease Term Right-of-use leases 2.78 years 3.75 years Finance leases 3.75 years 3.88 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % Finance leases 6.72 % 4.96 % Maturities of lease liabilities are as follows for the year ending September 30, 2021, in thousands: Right-of-Use Leases Finance Leases 2022 $ 1,341 $ 700 2023 1,328 605 2024 802 523 2025 151 303 2026 — 166 Total lease payments 3,622 2,297 Less: imputed interest 283 286 Total lease obligations $ 3,339 $ 2,011 |
Leases | Leases ADDvantage adopted ASU No. 2016-02, Topic 842 (ASC 842) - Leases, effective October 1, 2019. This ASU requires lessees to recognize an operating lease or right-of-use ("ROU") asset and liability on the balance sheet for all ROU leases with an initial lease term greater than twelve months. ASU 2018-11 Leases – Targeted Improvements, allows for a practical expedient wherein all periods previously reported under ASC 840 will continue to be reported under ASC 840, and periods beginning October 1, 2019 and after are reported under ASC 842. ADDvantage elected to adopt this practical expedient along with the package of practical expedients, which allows the Company to combine lease and non-lease costs. As a lessee, ADDvantage leases its corporate office headquarters in Carrollton, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance facilities sufficient to support its operations in the area. ADDvantage leases these properties under either non-cancelable term leases many of which contain renewal options that can extend the lease term from one ROU lease expense consists of rent expense related to leases that were included in ROU assets under ASC 842. ADDvantage recognizes ROU lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable ROU lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of facilities or office equipment (for example, copiers). As a result of adopting ASC 842, on the effective date, the Company recognized ROU assets and liabilities of $4.6 million, and financing lease assets and liabilities of $1.4 million. ROU leases are included in ROU assets and current or long-term ROU obligations on the consolidated balance sheets. Finance leases are included in net property and equipment, and current or long-term finance lease obligations in the consolidated balance sheets. ROU 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 readily determinable. Impairment of ROU asset - The Company has a ROU for a building in Jessup, Maryland for Nave Communications. The Company ceased operations in Jessup, Maryland in May 2020, and vacated the Jessup, Maryland building. The building was partially subleased during fiscal year 2020. During the third quarter of 2020, the Company determined that the ROU asset was not recoverable and used an income approach to estimate its fair value, determining that the carrying value was partially impaired. Therefore, the Company recorded $0.7 million of impairment charges related to the lease in the Telco segment during the year ended September 30, 2020. The components of lease expense for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Right-of-use lease cost Impairment of right-of-use asset $ — $ 660 Right-of-use lease cost 1,160 926 Total right-of-use lease cost $ 1,160 $ 1,586 Finance lease costs Amortization assets under finance leases $ 412 $ 335 Interest on finance lease liabilities 75 59 Total finance lease cost $ 487 $ 394 Supplemental cash flow information related to leases for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,160 $ 1,586 Operating cash flows from finance leases $ 75 $ 59 Financing cash flows from finance leases $ 484 $ 388 Supplemental balance sheet information related to leases are as follows, in thousands: September 30, 2021 September 30, 2020 Right-of-use leases Right-of-use lease assets $ 2,730 $ 3,758 Right-of-use lease obligations - current $ 1,198 $ 1,275 Right-of-use lease obligations 2,141 3,310 Total right-of-use lease liabilities $ 3,339 $ 4,585 Finance leases Property and equipment, gross $ 2,843 $ 1,463 Accumulated depreciation (707) (393) Property and equipment, net $ 2,136 $ 1,070 Financing lease obligations - current $ 582 $ 285 Financing lease obligations 1,429 791 Total finance lease liabilities $ 2,011 $ 1,076 Weighted Average Remaining Lease Term Right-of-use leases 2.78 years 3.75 years Finance leases 3.75 years 3.88 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % Finance leases 6.72 % 4.96 % Maturities of lease liabilities are as follows for the year ending September 30, 2021, in thousands: Right-of-Use Leases Finance Leases 2022 $ 1,341 $ 700 2023 1,328 605 2024 802 523 2025 151 303 2026 — 166 Total lease payments 3,622 2,297 Less: imputed interest 283 286 Total lease obligations $ 3,339 $ 2,011 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Plan Information The 2015 Incentive Stock Plan (the “Plan”) provides for awards of stock options and restricted stock to officers, directors, key employees and consultants. Under the Plan, option prices will be set by the Compensation Committee and may not be less than the fair market value of the stock on the grant date. At September 30, 2021, 2,100,415 shares of common stock were reserved for stock award grants under the Plan. Of these reserved shares, 297,389 shares were available for future grants. Stock Options All share-based payments to employees, including grants of employee stock options, are recognized in the consolidated financial statements based on their grant date fair value over the requisite service period. Compensation expense for stock-based awards is included in the operating, selling, general and administrative expense section of the consolidated statements of operations. Stock options are valued at the date of the award, which does not precede the approval date, and compensation cost is recognized on a straight-line basis over the vesting period. Stock options granted generally become exercisable three years from the date of grant and generally expire ten years after the date of grant. A summary of the status of the Company's stock options at September 30, 2021 and changes during the year then ended is presented below in thousands, except share and per share amounts: Options (Shares) Weighted Average Aggregate Outstanding at September 30, 2020 100,000 $ 1.55 $ 37 Granted — — — Exercised (49,000) 1.81 49 Expired — — — Forfeited (1,000) 1.81 — Outstanding at September 30, 2021 50,000 $ 1.28 $ 54 Exercisable at September 30, 2021 33,334 $ 1.28 $ 36 The intrinsic value of exercised options for the years ended September 30, 2021 and 2020, in thousands: 2021 2020 Value at exercise date $ 137 $ 510 Exercise price 88 206 Intrinsic value $ 49 $ 304 Information about the Company’s outstanding and exercisable stock options at September 30, 2021 is as follows, in thousands except share and per share amounts: Exercise Price Stock Options Exercisable Remaining Contractual Life Aggregate $ 1.28 50,000 33,334 7.25 $ 36 The Company granted no nonqualified stock options for the years ended September 30, 2021 and 2020, respectively. The Company realized a net benefit related to the recognition of forfeitures of stock options during the year ended September 30, 2020. Compensation expense related to stock options recorded for the years ended September 30, 2021 and 2020 is as follows: 2021 2020 Fiscal year 2017 grant $ — $ (6) Fiscal year 2019 grant 3 — Total compensation expense $ 3 $ (6) At September 30, 2021, compensation costs related to these unvested stock options not yet recognized in the statements of operations was approximately $0.0 million which will be fully amortized by 2022. Restricted stock awards In fiscal year 2021, the Company granted a total of 24,390 shares to a board member, which were valued at market value on the date of grant and vested immediately. The fair value of the shares upon issuance totaled $0.1 million. In fiscal year 2021, the Company granted a total of 588,857 shares to certain members of management, which were valued at market value on the date of grant. The shares ranged in vesting periods from one A summary of the Company's non-vested restricted share awards (RSA) at September 30, 2021 and changes during the year ended September 30, 2021 is presented in the following table ($ in thousands): Shares Fair Value Non-vested at September 30, 2020 475,024 $ 1,058 Granted 613,247 1,372 Vested (228,358) (455) Forfeited (120,000) (270) Non-vested at September 30, 2021 739,913 $ 1,706 Compensation expense related to restricted stock recorded for the years ended September 30, 2021 and 2020 is as follows, in thousands: 2021 2020 Fiscal year 2020 grant $ 450 $ 15 Fiscal year 2021 grant 556 565 Total compensation expense $ 1,006 $ 580 Valuation of time vesting restricted stock awards for all periods presented is equal to the quoted market price for the shares on the date of the grant. The Company amortizes the fair value of the restricted share awards, graded, over the vesting period of the awards. The Company did not recognize a tax benefit for compensation expense recognized during the years ended September 30, 2021 and 2020. |
Equity Distribution Agreement a
Equity Distribution Agreement and Sale of Common Stock | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity Distribution Agreement and Sale of Common Stock | Equity Distribution Agreement and Sale of Common Stock On April 24, 2020, the Company entered into an Equity Distribution Agreement (the “Sales Agreement”) with Northland Securities, Inc., as agent (“Northland”), pursuant to which the Company may offer and sell, from time to time, through Northland, shares of the Company’s common stock, par value $0.01 per share, having an aggregate offering price of up to $13.9 million ("Shares"). The offer and sale of the Shares will be made pursuant to a shelf registration statement on Form S-3 and the related prospectus filed by the Company with the Securities and Exchange Commission (the "SEC") on March 3, 2020, as amended on March 23, 2020, and declared effective by the SEC on April 1, 2020. Pursuant to the Sales Agreement, Northland may sell the Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933 (the “Securities Act”), including sales made by means of ordinary brokers’ transactions, including on The Nasdaq Global Market, at market prices or as otherwise agreed with Northland. Northland will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the Shares from time to time, based upon instructions from the Company, including any price or size limits or other customary parameters or conditions the Company may impose. The Sales Agreement may be terminated without prior notice at any time prior to the fulfillment of the Sales Agreement if additional sales are deemed not warranted. The Company will pay Northland a commission rate equal to an aggregate of 3.0% of the aggregate gross proceeds from each sale of Shares and have agreed to provide Northland with customary indemnification and contribution rights. The Company will also reimburse Northland for certain specified expenses in connection with entering into the Sales Agreement. The Sales Agreement contains customary representations and warranties and conditions to the placements of the Shares pursuant thereto. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (in thousands) Years ended September 30, 2021 2020 Supplemental cash flow information: Cash paid for interest $ 257 $ 230 Supplemental noncash investing activities: Assets acquired under financing leases $ 1,623 $ 1,352 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted earnings per share for the years ended September 30, 2021 and 2020, in thousands: 2021 2020 Net loss attributable to common shareholders $ (6,502) $ (17,333) Basic weighted average shares 12,401 11,164 Effect of dilutive securities: Stock options — — Diluted weighted average shares 12,401 11,164 Loss per common share: Basic $ (0.52) $ (1.55) Diluted $ (0.52) $ (1.55) The table below includes information related to stock options that were outstanding at the end of each respective year but have been excluded from the computation of weighted-average stock options for dilutive securities because their effect would be anti-dilutive. 2021 2020 Stock options excluded 50,000 100,000 Weighted average exercise price of stock options $ 1.28 $ 1.55 Average market price of common stock $ 2.57 $ 2.44 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The benefit for income taxes for the years ended September 30, 2021 and 2020 consists of, in thousands: 2021 2020 Continuing operations: Current $ (53) $ (1,249) Deferred — — (53) (1,249) Discontinued operations – current — — Total benefit for income taxes $ (53) $ (1,249) The following table summarizes the differences between the U.S. federal statutory rate and the Company’s effective tax rate for continuing operations financial statement purposes for the years ended September 30, 2021 and 2020: 2021 2020 Statutory tax rate 21.0 % 21.0 % State income taxes, net of U.S. federal tax benefit 5.4 % 4.8 % Return to accrual adjustment 5.8 % — % Tax credits — % — % Charges without tax benefit — % 0.1 % Valuation allowance (32.7 %) (19.4 %) Other exclusions 1.3 % 0.1 % Company’s effective tax rate 0.8 % 6.6 % The charges without tax benefit rate include, among other things, the impact of officer life insurance, nondeductible meals and entertainment and permanent basis differences in goodwill. As a result of the CARES Act, the Company can carryback net operating losses (NOL) generated in 2018 through 2020 for a period of five years. As a result, the Company’s effective tax rate included an income tax benefit recognized during the fiscal year ended September 30, 2020 related to tax losses generated during the fiscal year up to the amount that the Company estimates is realizable based upon taxable income in the carryback periods. Therefore, as of September 30, 2020, the Company recorded a $1.2 million income tax receivable and a corresponding current benefit for income taxes. The Company continues to provide a valuation allowance of $8.5 million for all net deferred tax assets where the Company believes it is more likely than not that those deferred taxes will not be realized. The tax effects of temporary differences related to deferred taxes at September 30, 2021 and 2020 consist of the following, in thousands: 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 5,895 $ 4,659 Accounts receivable 69 69 Inventory 966 883 Intangibles 2,370 1,259 Accrued expenses 334 132 Stock options 5 14 Investment in equity method investee — 100 Other 64 — Total deferred tax assets 9,703 7,116 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 815 416 Other 365 323 Total deferred tax liabilities 1,180 739 Less valuation allowance 8,523 6,377 Net deferred taxes $ — $ — The Company’s U.S. Federal net operating loss (“NOL”) carryforwards consist of the following, in thousands: NOL carryforward Year Expires Year ended September 30, 2021 9,500 No expiry Year ended September 30, 2020 9,270 No expiry Year ended September 30, 2019 1,605 No expiry The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. The Company has concluded, based on its recent cumulative losses, that it is more likely than not that the Company will not be able to realize the full effect of the deferred tax assets and a valuation allowance of $8.5 million is needed. Based upon a review of its income tax positions, the Company believes that its positions would be sustained upon an examination by the Internal Revenue Service and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. Generally, the Company is no longer subject to examinations by the U.S. federal, state or local tax authorities for tax years before 2018. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 Company's Wireless segment provides turn-key wireless infrastructure services for the four major U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers that support these wireless carriers. These services primarily consist of the installation and upgrade of technology on cell sites and the construction of new small cells for 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. The Company changed the allocation of corporate general and administrative expenses between our reportable business segments. At September 30, 2020, the Company did not allocate the corporate general and administrative expenses to the reportable segments and listed those expenses separate from the operating results of those reportable segments. During fiscal 2021, the Company reviewed its reportable segments and its corporate general and administrative expenses and allocation methodology, which resulted in the Company allocating its corporate general and administrative expenses to the reportable segments. The prior period allocations have been adjusted to reflect the Company's current allocation methodology. (in thousands) Twelve months ended September 30, 2021 2020 Sales Wireless $ 20,708 $ 21,354 Telco 41,553 28,853 Intersegment (101) (25) Total sales $ 62,160 $ 50,182 Gross profit Wireless $ 6,277 $ 6,580 Telco 9,850 5,100 Total gross profit $ 16,127 $ 11,680 Loss from operations Wireless $ (6,864) $ (4,377) Telco (2,433) (14,153) Total operating loss $ (9,297) $ (18,530) (in thousands) September 30, 2021 2020 Segment assets Wireless $ 7,867 $ 5,324 Telco 14,472 12,298 Non-allocated 4,973 14,881 Total assets $ 27,312 $ 32,503 |
Subsequent events
Subsequent events | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events During the period from November 9, 2021 through December 15, 2021, the Company sold 19,346 shares of stock under our ATM for an average share price of $2.19 pursuant to our agreement with Northland Securities, Inc. as described in Note 10 – Equity Distribution Agreement and Sale of Common Stock. On December 14, 2021, the Company signed an agreement with its primary financial lender to extend the expiration date of its revolving line of credit to January 17, 2022. The Company is in the process of completing an annual extension which is expected to be completed by the new expiration date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and basis of presentation | Organization and basis of presentationThe consolidated financial statements include the accounts of ADDvantage Technologies Group, Inc. and its subsidiaries, all of which are wholly owned (collectively, the “Company”). Intercompany balances and transactions have been eliminated in consolidation. The Company’s reportable segments are Wireless Infrastructure Services (“Wireless”) and Telecommunications (“Telco”). |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with the current year's presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cashCash and cash equivalents include demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. Restricted cash consists of cash held by a third-party financial institution as a reserve in connection with an agreement to sell certain receivables with recourse in the Wireless segment, see Note 3 - Accounts Receivable Agreements. |
Revenue recognition | Revenue recognition The Company recognizes revenue at the time a good or service is transferred to a customer and the customer, obtains control of that good or receives the service performed. Most of the Company’s sales arrangements with customers are short-term in nature involving single performance obligations related to the delivery of goods or repair of equipment and generally provide for transfer of control at the time of shipment to the customer. The Company generally permits returns of product or repaired equipment due to defects, historically, returns have not been significant. Additionally, the Company provides services related to the installation and upgrade of technology on cell sites and the construction of new small cells for 5G technology. The work under the purchase orders for wireless infrastructure services are generally completed in less than a month. These services generally consist of a single performance obligation which the Company recognizes as revenue over time. The Company uses an input method based upon a ratio of direct costs incurred to date compared to management’s estimate of the total direct costs to be incurred on each contract, since it best depicts the transfer of control to the customer. The Company’s principal sales are from Wireless services, sales of Telco equipment and Telco recycled equipment. The Company’s customers include wireless carriers, wireless equipment providers, multiple system operators, resellers and direct sales to end-user customers. |
Accounts receivable | Accounts receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company generally does not charge interest on past due accounts. For the Company’s Wireless segment, the Company has entered into various agreements, one with recourse, to sell certain receivables to unrelated third-party financial institutions. The other agreements without recourse are under programs offered by certain customers of the Wireless segment. The Company accounts for these transactions in accordance with Accounting Standards Codification (“ASC”) 860, “Transfers and Servicing” (“ASC 860”). ASC 860 |
Inventories | Inventories For the Telco segment, inventories consist of new, refurbished and used telecommunications equipment. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the weighted-average method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For the Telco segment, the Company records an inventory reserve provision to reflect inventory at its estimated net realizable value based on a review of inventory quantities on hand, historical sales volumes and technology changes. These reserves are to provide for items that are potentially slow-moving, excess or obsolete. |
Leases | Leases The Company determines if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as either a right-of-use ("ROU") lease or a finance lease. We capitalize ROU leases on our consolidated balance sheets through a ROU asset and a corresponding ROU lease liability. ROU assets represent our right to use an underlying asset for the lease term and ROU lease liabilities represent our obligation to make lease payments arising from the lease. ROU leases are included in long-term assets and ROU lease liabilities are classified as either current or long-term liabilities in our consolidated balance sheets. ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. Lease expense for ROU lease payments is recognized on a straight-line basis over the lease term. |
Property and equipment | Property and equipment Property and equipment consist of software, office equipment, wireless services equipment and warehouse and service equipment with estimated useful lives generally of 3 years, 5 years, 7 years, and 10 years, respectively. The wireless services equipment includes mobile wireless temporary towers, equipment trailers and construction equipment. Depreciation is provided using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the useful lives or the remainder of the lease agreement. Gains or losses from the ordinary sale or retirement of property and equipment are recorded and included in operating expense. Repairs and maintenance costs are generally expensed as incurred, whereas major improvements are capitalized. Depreciation expense was $0.9 million in each of the years ended September 30, 2021 and 2020. |
Goodwill | Goodwill Goodwill represents the excess of purchase price of acquisitions over the acquisition date fair value of the net assets of businesses acquired. Goodwill is not amortized and is tested at least annually for impairment. The Company performs its annual analysis during the fourth quarter of each fiscal year and in any other period in which indicators of impairment warrant additional analysis. Goodwill is evaluated for impairment by comparing the estimate of the fair value of each reporting unit, or operating segment, with the reporting unit’s carrying value, including goodwill. The reporting units for purposes of the goodwill impairment calculation are aggregated into the Wireless segment and ADDvantage Triton LLC (Triton) operating segment, and Nave Communications Company (Nave) operating segment. Management utilizes a discounted cash flow analysis to determine the estimated fair value of each reporting unit. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate, gross margins and operating expenses are inherent in these fair value estimates. As a result, actual results may differ from the estimates utilized in the discounted cash flow analysis. The use of alternate judgments and/or assumptions could result in the recognition of different levels of impairment charges in the financial statements. |
Intangible assets | Intangible assetsIntangible assets consist of customer relationships, trade names, and intellectual property. Intangibles assets that have finite useful lives are amortized on a straight-line basis over their estimated useful lives ranging from 3 years to 10 years. |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. |
Income taxes | Income taxes The Company provides for income taxes in accordance with the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carryforward amounts. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred. Advertising expense was $0.4 million and $0.5 million for the years ended September 30, 2021 and 2020, respectively. |
Management estimates | Management estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any significant, unanticipated changes in product demand, technological developments or continued economic trends affecting the wireless infrastructure or telecommunications industries could have a significant impact on the value of the Company's inventory and operating results. |
Concentrations of risk | Concentrations of risk The Company holds cash with one major financial institution, which at times exceeds FDIC insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. Other financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade receivables. Concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. As of September 30, 2021, one Telco customer accounted for 31% of accounts receivable, and one Wireless |
Share-based compensation | Share-based compensation ADDvantage compensates our directors and executives using time-based stock options and restricted shares awards (RSA's). ADDvantage accounts for share-based payment awards under ASC 718 - Compensation - Stock Compensation (ASC 718) , which requires that the value of the award is established at the date of the grant and is expensed over the vesting period of the grant. The method of determining the fair value of share-based payments depends on the type of award. Share-based awards that vest over a certain service period with no market conditions are valued at the closing market price on the grant date. Option grants are valued using the Black-Scholes-Merton model using model inputs that are determined on the date of the grant. Once the per-share fair value on the grant date is established, the aggregate expense of the grant is recognized on a graded vesting basis over the vesting period of the grant. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate fair value due to their short maturities. 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. Retirement Plan The Company sponsors a 401(k) plan that allows participation by all employees who are at least 21 years of age and have completed over 60 days of service. The Company's contributions to the plan consist of a matching contribution as determined by the plan document. Costs recognized under the 401(k) plan were $0.2 million and, $0.1 million for the years ended September 30, 2021 and September 30, 2020, respectively, after temporarily suspending matching contributions during 2020. |
Recently issued accounting standards | Recently issued accounting standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” This ASU requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Upon adoption, entities will use forward-looking information to better form their credit loss estimates. This ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. On November 15, 2019, the FASB delayed the effective date of the standard for companies that qualify under smaller reporting company reporting rules. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the Securities and Exchange Commission definition. We are currently in the process of evaluating this new standard update, however we do not anticipate the adoption will have a material impact on our results. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Sales by type were as follows, in thousands: Years Ended September 30, 2021 2020 Wireless services sales $ 20,708 $ 21,354 Equipment sales: Telco 40,663 27,109 Inter-segment (101) (25) Telco repair sales 27 68 Telco recycle sales 863 1,676 Total sales $ 62,160 $ 50,182 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, which are all within the Telco segment, at September 30, 2021 and 2020 are as follows, in thousands: 2021 2020 New equipment $ 1,295 $ 1,311 Refurbished and used equipment 8,103 7,319 Allowance for excess and obsolete inventory: (3,476) (3,054) Total inventories, net $ 5,922 $ 5,576 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The intangible assets with their associated accumulated amortization amounts at September 30, 2021 and September 30, 2020 are as follows, in thousands: September 30, 2021 Gross Accumulated Impairment Net Intangible assets: Customer relationships – 10 years $ 3,155 $ (2,780) $ — $ 375 Trade name – 10 years 2,122 (1,390) — 732 Non-compete agreements – 3 years 374 (374) — — Total intangible assets $ 5,651 $ (4,544) $ — $ 1,107 September 30, 2020 Gross Accumulated Impairment Net Intangible assets: Customer relationships – 10 years $ 8,396 $ (4,021) $ (3,894) $ 481 Trade name – 10 years 2,122 (1,178) — 944 Non-compete agreements – 3 years 374 (374) — — Total intangible assets $ 10,892 $ (5,573) $ (3,894) $ 1,425 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense for each of the next five fiscal years is as follows, in thousands: 2022 $ 319 2023 319 2024 195 2025 107 2026 107 Thereafter 60 Total $ 1,107 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | 2021 2020 Employee costs $ 1,255 $ 942 Taxes other than income tax (13) 49 Interest 5 23 Other, net 334 263 Total accrued expenses $ 1,581 $ 1,277 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of September 30, 2021, the aggregate maturities of debt for the next five years and thereafter are as follows, in thousands: 2022 $ 2,050 Thereafter — Total $ 2,050 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Right-of-use lease cost Impairment of right-of-use asset $ — $ 660 Right-of-use lease cost 1,160 926 Total right-of-use lease cost $ 1,160 $ 1,586 Finance lease costs Amortization assets under finance leases $ 412 $ 335 Interest on finance lease liabilities 75 59 Total finance lease cost $ 487 $ 394 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,160 $ 1,586 Operating cash flows from finance leases $ 75 $ 59 Financing cash flows from finance leases $ 484 $ 388 (in thousands) Years ended September 30, 2021 2020 Supplemental cash flow information: Cash paid for interest $ 257 $ 230 Supplemental noncash investing activities: Assets acquired under financing leases $ 1,623 $ 1,352 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases are as follows, in thousands: September 30, 2021 September 30, 2020 Right-of-use leases Right-of-use lease assets $ 2,730 $ 3,758 Right-of-use lease obligations - current $ 1,198 $ 1,275 Right-of-use lease obligations 2,141 3,310 Total right-of-use lease liabilities $ 3,339 $ 4,585 Finance leases Property and equipment, gross $ 2,843 $ 1,463 Accumulated depreciation (707) (393) Property and equipment, net $ 2,136 $ 1,070 Financing lease obligations - current $ 582 $ 285 Financing lease obligations 1,429 791 Total finance lease liabilities $ 2,011 $ 1,076 Weighted Average Remaining Lease Term Right-of-use leases 2.78 years 3.75 years Finance leases 3.75 years 3.88 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % Finance leases 6.72 % 4.96 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities are as follows for the year ending September 30, 2021, in thousands: Right-of-Use Leases Finance Leases 2022 $ 1,341 $ 700 2023 1,328 605 2024 802 523 2025 151 303 2026 — 166 Total lease payments 3,622 2,297 Less: imputed interest 283 286 Total lease obligations $ 3,339 $ 2,011 |
Finance Lease, Liability, Fiscal Year Maturity | Maturities of lease liabilities are as follows for the year ending September 30, 2021, in thousands: Right-of-Use Leases Finance Leases 2022 $ 1,341 $ 700 2023 1,328 605 2024 802 523 2025 151 303 2026 — 166 Total lease payments 3,622 2,297 Less: imputed interest 283 286 Total lease obligations $ 3,339 $ 2,011 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity | A summary of the status of the Company's stock options at September 30, 2021 and changes during the year then ended is presented below in thousands, except share and per share amounts: Options (Shares) Weighted Average Aggregate Outstanding at September 30, 2020 100,000 $ 1.55 $ 37 Granted — — — Exercised (49,000) 1.81 49 Expired — — — Forfeited (1,000) 1.81 — Outstanding at September 30, 2021 50,000 $ 1.28 $ 54 Exercisable at September 30, 2021 33,334 $ 1.28 $ 36 The intrinsic value of exercised options for the years ended September 30, 2021 and 2020, in thousands: 2021 2020 Value at exercise date $ 137 $ 510 Exercise price 88 206 Intrinsic value $ 49 $ 304 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | Information about the Company’s outstanding and exercisable stock options at September 30, 2021 is as follows, in thousands except share and per share amounts: Exercise Price Stock Options Exercisable Remaining Contractual Life Aggregate $ 1.28 50,000 33,334 7.25 $ 36 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The Company realized a net benefit related to the recognition of forfeitures of stock options during the year ended September 30, 2020. Compensation expense related to stock options recorded for the years ended September 30, 2021 and 2020 is as follows: 2021 2020 Fiscal year 2017 grant $ — $ (6) Fiscal year 2019 grant 3 — Total compensation expense $ 3 $ (6) 2021 2020 Fiscal year 2020 grant $ 450 $ 15 Fiscal year 2021 grant 556 565 Total compensation expense $ 1,006 $ 580 |
Schedule of Non-vested Restricted Share Awards | A summary of the Company's non-vested restricted share awards (RSA) at September 30, 2021 and changes during the year ended September 30, 2021 is presented in the following table ($ in thousands): Shares Fair Value Non-vested at September 30, 2020 475,024 $ 1,058 Granted 613,247 1,372 Vested (228,358) (455) Forfeited (120,000) (270) Non-vested at September 30, 2021 739,913 $ 1,706 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases for the years ended September 30, 2021, and 2020 are as follows, in thousands: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,160 $ 1,586 Operating cash flows from finance leases $ 75 $ 59 Financing cash flows from finance leases $ 484 $ 388 (in thousands) Years ended September 30, 2021 2020 Supplemental cash flow information: Cash paid for interest $ 257 $ 230 Supplemental noncash investing activities: Assets acquired under financing leases $ 1,623 $ 1,352 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share for the years ended September 30, 2021 and 2020, in thousands: 2021 2020 Net loss attributable to common shareholders $ (6,502) $ (17,333) Basic weighted average shares 12,401 11,164 Effect of dilutive securities: Stock options — — Diluted weighted average shares 12,401 11,164 Loss per common share: Basic $ (0.52) $ (1.55) Diluted $ (0.52) $ (1.55) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below includes information related to stock options that were outstanding at the end of each respective year but have been excluded from the computation of weighted-average stock options for dilutive securities because their effect would be anti-dilutive. 2021 2020 Stock options excluded 50,000 100,000 Weighted average exercise price of stock options $ 1.28 $ 1.55 Average market price of common stock $ 2.57 $ 2.44 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The benefit for income taxes for the years ended September 30, 2021 and 2020 consists of, in thousands: 2021 2020 Continuing operations: Current $ (53) $ (1,249) Deferred — — (53) (1,249) Discontinued operations – current — — Total benefit for income taxes $ (53) $ (1,249) |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the differences between the U.S. federal statutory rate and the Company’s effective tax rate for continuing operations financial statement purposes for the years ended September 30, 2021 and 2020: 2021 2020 Statutory tax rate 21.0 % 21.0 % State income taxes, net of U.S. federal tax benefit 5.4 % 4.8 % Return to accrual adjustment 5.8 % — % Tax credits — % — % Charges without tax benefit — % 0.1 % Valuation allowance (32.7 %) (19.4 %) Other exclusions 1.3 % 0.1 % Company’s effective tax rate 0.8 % 6.6 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences related to deferred taxes at September 30, 2021 and 2020 consist of the following, in thousands: 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 5,895 $ 4,659 Accounts receivable 69 69 Inventory 966 883 Intangibles 2,370 1,259 Accrued expenses 334 132 Stock options 5 14 Investment in equity method investee — 100 Other 64 — Total deferred tax assets 9,703 7,116 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 815 416 Other 365 323 Total deferred tax liabilities 1,180 739 Less valuation allowance 8,523 6,377 Net deferred taxes $ — $ — |
Summary of Operating Loss Carryforwards | The Company’s U.S. Federal net operating loss (“NOL”) carryforwards consist of the following, in thousands: NOL carryforward Year Expires Year ended September 30, 2021 9,500 No expiry Year ended September 30, 2020 9,270 No expiry Year ended September 30, 2019 1,605 No expiry |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company changed the allocation of corporate general and administrative expenses between our reportable business segments. At September 30, 2020, the Company did not allocate the corporate general and administrative expenses to the reportable segments and listed those expenses separate from the operating results of those reportable segments. During fiscal 2021, the Company reviewed its reportable segments and its corporate general and administrative expenses and allocation methodology, which resulted in the Company allocating its corporate general and administrative expenses to the reportable segments. The prior period allocations have been adjusted to reflect the Company's current allocation methodology. (in thousands) Twelve months ended September 30, 2021 2020 Sales Wireless $ 20,708 $ 21,354 Telco 41,553 28,853 Intersegment (101) (25) Total sales $ 62,160 $ 50,182 Gross profit Wireless $ 6,277 $ 6,580 Telco 9,850 5,100 Total gross profit $ 16,127 $ 11,680 Loss from operations Wireless $ (6,864) $ (4,377) Telco (2,433) (14,153) Total operating loss $ (9,297) $ (18,530) (in thousands) September 30, 2021 2020 Segment assets Wireless $ 7,867 $ 5,324 Telco 14,472 12,298 Non-allocated 4,973 14,881 Total assets $ 27,312 $ 32,503 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 910 | $ 868 | |
Goodwill impairment | $ 4,800 | ||
Goodwill | 58 | 58 | |
Advertising expense | $ 400 | 500 | |
Pension Plan | |||
Property, Plant and Equipment [Line Items] | |||
Minimum year of service | 60 days | ||
Recognized costs | $ 200 | $ 100 | |
Wireless | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill | $ 100 | ||
Accounts Receivable | Telco | Customer Concentration Risk | One Customer | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 31.00% | ||
Accounts Receivable | Wireless | Customer Concentration Risk | One Customer | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 28.00% | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Software and Software Development Costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Office Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Warehouse and Service Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Revenue Recognition- Additional
Revenue Recognition- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 62,160 | $ 50,182 |
Unbilled revenue | 2,488 | 590 |
Deferred revenue | $ 168 | 113 |
Contract liabilities, revenue recognized | 100 | |
Revenue Benchmark | Customer Concentration Risk | Largest Customer | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 18.00% | |
International Regions Excluding Central America and South America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 4,700 | $ 1,900 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 62,160 | $ 50,182 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | (101) | (25) |
Telco | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 41,553 | 28,853 |
Wireless services sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 20,708 | 21,354 |
Equipment Sales | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | (101) | (25) |
Equipment Sales | Telco | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 40,663 | 27,109 |
Telco repair sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | 27 | 68 |
Telco recycle sales | ||
Disaggregation of Revenue [Line Items] | ||
Total sales | $ 863 | $ 1,676 |
Accounts Receivable Agreements
Accounts Receivable Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Restricted cash | $ 334 | $ 108 |
Certain Receivables to Unrelated Third-parties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable agreement, percent of sold receivables advanced | 90.00% | |
Accounts receivable agreement, reserve of sold receivables, percent | 10.00% | |
Accounts receivable agreement, percent of sold receivables advanced, deduction | 1.60% | |
Sale of receivables, maximum limit of receivables uncollected | $ 3,500 | |
Proceeds from collection of finance receivables | 18,300 | |
Certain Receivables to Unrelated Third-parties | Other Nonoperating Income (Expense) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cost of selling receivables | 200 | |
Uncollectible Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Thirty party financial institution reserve | $ (2,100) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Inventory [Line Items] | ||
Inventory valuation reserves | $ 3,476 | $ 3,054 |
Telco | ||
Inventory [Line Items] | ||
Provision for excess and obsolete inventories | 422 | 1,782 |
Inventory valuation reserves | 3,500 | |
Inventory, lower of cost or market reserve | $ 100 | $ 100 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Inventory [Line Items] | ||
Allowance for excess and obsolete inventory: | $ (3,476) | $ (3,054) |
Total inventories, net | 5,922 | 5,576 |
New equipment | ||
Inventory [Line Items] | ||
Inventory, gross | 1,295 | 1,311 |
Refurbished and used equipment | ||
Inventory [Line Items] | ||
Inventory, gross | $ 8,103 | $ 7,319 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 0.3 | $ 0.7 | |
Customer Relationships | Telco | COVID-19 Pandemic | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets, finite-lived | $ 3.9 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 5,651 | $ 10,892 |
Accumulated Amortization | (4,544) | (5,573) |
Impairment | 0 | (3,894) |
Net | 1,107 | 1,425 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 3,155 | 8,396 |
Accumulated Amortization | (2,780) | (4,021) |
Impairment | 0 | (3,894) |
Net | $ 375 | $ 481 |
Useful life | 10 years | 10 years |
Trade Names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 2,122 | $ 2,122 |
Accumulated Amortization | (1,390) | (1,178) |
Impairment | 0 | 0 |
Net | $ 732 | $ 944 |
Useful life | 10 years | 10 years |
Noncompete Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 374 | $ 374 |
Accumulated Amortization | (374) | (374) |
Impairment | 0 | 0 |
Net | $ 0 | $ 0 |
Useful life | 3 years | 3 years |
Intangible Assets - Estimated A
Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 319 | |
2023 | 319 | |
2024 | 195 | |
2025 | 107 | |
2026 | 107 | |
Thereafter | 60 | |
Net | $ 1,107 | $ 1,425 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
Employee costs | $ 1,255 | $ 942 |
Taxes other than income tax | (13) | 49 |
Interest | 5 | 23 |
Other, net | 334 | 263 |
Total accrued expenses | $ 1,581 | $ 1,277 |
Debt - Additional Information (
Debt - Additional Information (Details) | Apr. 14, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021 | Mar. 10, 2020USD ($)installment |
Debt Instrument [Line Items] | ||||||
Repayments of notes payable | $ 1,194,000 | $ 2,223,000 | ||||
Proceeds from note payable | 0 | $ 6,372,000 | ||||
Leveling 8 | Promissory Note | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from promissory note receivable | $ 1,500,000 | |||||
Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 3,500,000 | |||||
Interest rate | 6.00% | |||||
Loan Agreement | Leveling 8 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of notes payable | $ 1,200,000 | |||||
Loan Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of installments | installment | 7 | |||||
New Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio, minimum requirement | 125.00% | |||||
New Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000 | |||||
Floor rate | 4.00% | |||||
Bank line of credit | $ 2,100,000 | |||||
Percentage of qualified accounts receivable used in determination of maximum borrowing capacity of line of credit | 80.00% | |||||
Percentage of qualified inventory used in determination of maximum borrowing capacity of line of credit | 60.00% | |||||
Line of credit facility, remaining borrowing capacity | $ 1,900,000 | |||||
Loan Agreement with Primary Financial Leader | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio, minimum requirement | 125.00% | |||||
Paycheck Protection Program Loan | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from note payable | $ 2,900,000 | |||||
Debt instrument, decrease, forgiveness | $ 2,900,000 |
Debt - Schedule of Maturity of
Debt - Schedule of Maturity of Debt and Finance Lease (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 2,050 |
Thereafter | 0 |
Total | $ 2,050 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use lease assets | $ 2,730 | $ 3,758 |
Operating lease, liability | 3,339 | 4,585 |
Finance lease, right-of-use asset | 2,136 | 1,070 |
Finance lease, liability | 2,011 | 1,076 |
Impairment of right-of-use asset | 0 | $ 660 |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use lease assets | 4,600 | |
Operating lease, liability | 4,600 | |
Finance lease, right-of-use asset | 1,400 | |
Finance lease, liability | $ 1,400 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 5 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Right-of-use lease cost | ||
Impairment of right-of-use asset | $ 0 | $ 660 |
Right-of-use lease cost | 1,160 | 926 |
Total right-of-use lease cost | 1,160 | 1,586 |
Amortization assets under finance leases | 412 | 335 |
Interest on finance lease liabilities | 75 | 59 |
Total finance lease cost | $ 487 | $ 394 |
Leases - Schedule of Cash Flow,
Leases - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from right-of-use leases | $ 1,160 | $ 1,586 |
Operating cash flows from finance leases | 75 | 59 |
Payments on financing lease obligations | $ 484 | $ 388 |
Leases - Assets And Liabilities
Leases - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Right-of-use leases | ||
Right-of-use lease assets | $ 2,730 | $ 3,758 |
Right-of-use lease obligations, current | 1,198 | 1,275 |
Right-of-use lease obligations, long-term | 2,141 | 3,310 |
Total lease obligations | 3,339 | 4,585 |
Finance leases | ||
Property and equipment, gross | 2,843 | 1,463 |
Accumulated depreciation | $ (707) | $ (393) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | ||
Property and equipment, net | $ 2,136 | $ 1,070 |
Finance lease obligations, current | 582 | 285 |
Financing lease obligations | 1,429 | 791 |
Total lease obligations | $ 2,011 | $ 1,076 |
Weighted Average Remaining Lease Term [Abstract] | ||
Right-of-use leases | 2 years 9 months 10 days | 3 years 9 months |
Finance leases | 3 years 9 months | 3 years 10 months 17 days |
Leases, Weighted Average Discount Rate [Abstract] | ||
Right-of-use leases | 5.00% | 5.00% |
Finance leases | 6.72% | 4.96% |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Right-of-Use Leases | ||
2022 | $ 1,341 | |
2023 | 1,328 | |
2024 | 802 | |
2025 | 151 | |
2026 | 0 | |
Total lease payments | 3,622 | |
Less: imputed interest | 283 | |
Total lease obligations | 3,339 | $ 4,585 |
Finance Leases | ||
2022 | 700 | |
2023 | 605 | |
2024 | 523 | |
2025 | 303 | |
2026 | 166 | |
Total lease payments | 2,297 | |
Less: imputed interest | 286 | |
Total lease obligations | $ 2,011 | $ 1,076 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, granted (in shares) | 0 | |
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 0 | |
Granted (in shares) | 613,247 | |
Aggregate intrinsic value, nonvested | $ 1,706,000 | $ 1,058,000 |
Income tax, compensation expense | $ 0 | $ 0 |
Nonqualified Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, granted (in shares) | 0 | 0 |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Employees | Share-based Payment Arrangement, Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |
Board of Directors Chairman | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 24,390 | |
Aggregate intrinsic value, nonvested | $ 100,000 | |
Management | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |
Granted (in shares) | 588,857 | |
Aggregate intrinsic value, nonvested | $ 1,300,000 | |
Management | Maximum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
The 2015 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
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) | 297,389 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-based Payment Arrangement, Option, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Options (Shares) | ||
Outstanding, beginning balance (in shares) | 100,000 | |
Stock options, granted (in shares) | 0 | |
Stock options, exercised (in shares) | (49,000) | |
Stock options, expired (in shares) | 0 | |
Stock options, forfeited (in shares) | (1,000) | |
Outstanding, ending balance (in shares) | 50,000 | 100,000 |
Exercisable (in shares) | 33,334 | |
Weighted Average Exercise Price | ||
Outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 1.55 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 1.81 | |
Expired (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 1.81 | |
Outstanding, weighted average exercise price, ending balance (in dollars per share) | 1.28 | $ 1.55 |
Exercisable (in dollars per share) | $ 1.28 | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding, beginning balance | $ 37 | |
Aggregate intrinsic value, exercised | 49 | $ 304 |
Aggregate intrinsic value, forfeited | 0 | |
Aggregate intrinsic value, outstanding, ending balance | 54 | $ 37 |
Aggregate intrinsic value, exercisable | $ 36 |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic Value of Exercised Options (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Value at exercise date | $ 137 | $ 510 |
Exercise price | 88 | 206 |
Intrinsic value | $ 49 | $ 304 |
Stock-Based Compensation - Sh_2
Stock-Based Compensation - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) - Exercise Price Range 2 $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 1.28 |
Stock options outstanding (in shares) | 50,000 |
Exercisable stock options outstanding (in shares) | 33,334 |
Remaining Contractual Life | 7 years 3 months |
Aggregate Intrinsic Value | $ | $ 36 |
Stock-Based Compensation - Sh_3
Stock-Based Compensation - Share-based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | $ 3 | $ (6) |
Share-based Payment Arrangement, Option | Fiscal Year 2017 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | 0 | (6) |
Share-based Payment Arrangement, Option | Fiscal Year 2019 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | 3 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | 1,006 | 580 |
Restricted Stock | Fiscal Year 2020 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | 450 | 15 |
Restricted Stock | Fiscal Year 2021 Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense | $ 556 | $ 565 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-vested Restricted Share Awards (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($)shares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 475,024 |
Granted (in shares) | shares | 613,247 |
Vested (in shares) | shares | (228,358) |
Forfeited (in shares) | shares | (120,000) |
Nonvested, ending balance (in shares) | shares | 739,913 |
Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ | $ 1,058 |
Granted (in dollars per share) | $ | 1,372 |
Vested (in dollars per share) | $ | (455) |
Forfeited (in dollars per share) | $ | (270) |
Non-vested, ending balance (in dollars per share) | $ | $ 1,706 |
Equity Distribution Agreement_2
Equity Distribution Agreement and Sale of Common Stock (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 24, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Commission rate | 3.00% | ||
Proceeds from sale of common stock | $ 899,000 | $ 2,109,000 | |
Sales Agreement with Northland | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | ||
Maximum aggregate offering price | $ 13,900,000 | ||
Common stock issuance (in shares) | 245,973 | ||
Proceeds from sale of common stock | $ 900,000 | ||
Proceeds from sale of common stock, net | $ 900,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 257 | $ 230 |
Supplemental noncash investing activities: | ||
Assets acquired under financing leases | $ 1,623 | $ 1,352 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common shareholders | $ (6,502) | $ (17,333) |
Net loss attributable to common shareholders | $ (6,502) | $ (17,333) |
Basic weighted average shares (in shares) | 12,401,043 | 11,163,660 |
Stock options (in shares) | 0 | 0 |
Diluted weighted average shares (in shares) | 12,401,043 | 11,163,660 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | ||
Net loss (in dollars per share) | $ (0.52) | $ (1.55) |
Net loss (in dollars per share) | $ (0.52) | $ (1.55) |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 50,000 | 100,000 |
Weighted average exercise price of stock options (in dollars per share) | $ 1.55 | |
Average market price of common stock (in dollars per share) | $ 2.57 | $ 2.44 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit), intraperiod tax allocation | $ (53,000) | $ (1,249,000) |
Deferred tax assets, valuation allowance | 8,523,000 | $ 6,377,000 |
Unrecognized tax benefits | $ 0 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ (53) | $ (1,249) |
Deferred | 0 | 0 |
Income tax expense (benefit) | (53) | (1,249) |
Discontinued operations – current | 0 | 0 |
Total benefit for income taxes | $ (53) | $ (1,249) |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between U.S. Federal Statutory Rate and Company's Effective Tax Rate (Details) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory tax rate | 21.00% | 21.00% |
State income taxes, net of U.S. federal tax benefit | 5.40% | 4.80% |
Return to accrual adjustment | 5.80% | 0.00% |
Tax credits | 0.00% | 0.00% |
Charges without tax benefit | 0.00% | 0.10% |
Valuation allowance | (32.70%) | (19.40%) |
Other exclusions | 1.30% | 0.10% |
Company’s effective tax rate | 0.80% | 6.60% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 5,895 | $ 4,659 |
Accounts receivable | 69 | 69 |
Inventory | 966 | 883 |
Intangibles | 2,370 | 1,259 |
Accrued expenses | 334 | 132 |
Stock options | 5 | 14 |
Investment in equity method investee | 0 | 100 |
Other | 64 | 0 |
Total deferred tax assets | 7,116 | |
Deferred tax liabilities: | ||
Financial basis in excess of tax basis of certain assets | 815 | 416 |
Other | 365 | 323 |
Total deferred tax liabilities | 1,180 | 739 |
Less valuation allowance | 8,523 | 6,377 |
Net deferred taxes | $ 0 | $ 0 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Tax Year 2021 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | $ 9,500 |
Tax Year 2020 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | 9,270 |
Tax Year 2019 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | $ 1,605 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jan. 04, 2019carrier | |
Segment Reporting Information [Line Items] | |||
Number of U.S. wireless carriers | carrier | 4 | ||
Total sales | $ 62,160 | $ 50,182 | |
Total gross profit | 16,127 | 11,680 | |
Operating income (loss) | (9,297) | (18,530) | |
Segment assets | 27,312 | 32,503 | |
Operating Segments | Wireless | |||
Segment Reporting Information [Line Items] | |||
Total sales | 20,708 | 21,354 | |
Total gross profit | 6,277 | 6,580 | |
Operating income (loss) | (6,864) | (4,377) | |
Segment assets | 7,867 | 5,324 | |
Operating Segments | Telco | |||
Segment Reporting Information [Line Items] | |||
Total sales | 41,553 | 28,853 | |
Total gross profit | 9,850 | 5,100 | |
Operating income (loss) | (2,433) | (14,153) | |
Segment assets | 14,472 | 12,298 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total sales | (101) | (25) | |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Segment assets | $ 4,973 | $ 14,881 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent Event - Revolving Credit Facility - New Credit Agreement | 1 Months Ended |
Dec. 15, 2021$ / sharesshares | |
Subsequent Event [Line Items] | |
Number of shares sold | shares | 19,346 |
Price per share (in dollars per share) | $ / shares | $ 2.19 |