ADDvantage Technologies (AEYGQ) 10-Q 11 May 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Mar. 31, 2022	May 10, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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, 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
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,219,857
Entity Central Index Key	0000874292
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 3,934	$ 2,608
Restricted cash	1,912	334
Accounts receivable, net of allowances of $250, respectively	369	7,013
Unbilled revenue	3,177	2,488
Inventories, net of allowances of $3,647 and $3,476, respectively	5,808	5,922
Prepaid expenses and other assets	1,682	1,431
Total current assets	16,882	19,796
Property and equipment, at cost:
Machinery and equipment	5,386	4,973
Leasehold improvements	899	813
Total property and equipment, at cost	6,285	5,786
Less: Accumulated depreciation	(2,670)	(2,293)
Net property and equipment	3,615	3,493
Right-of-use lease assets	2,239	2,730
Intangibles, net of accumulated amortization	948	1,107
Goodwill	58	58
Other assets	130	128
Total assets	23,872	27,312
Current liabilities:
Accounts payable	8,093	7,044
Accrued expenses	1,449	1,581
Deferred revenue	225	168
Bank line of credit	0	2,050
Right-of-use lease obligations, current	1,196	1,198
Finance lease obligations, current	698	582
Other current liabilities	843	692
Total current liabilities	12,504	13,315
Right-of-use lease obligations, long-term	1,533	2,141
Finance lease obligations, long-term	1,499	1,429
Total liabilities	15,536	16,885
Shareholders’ equity:
Common stock, $0.01 par value; 30,000,000 shares authorized; 13,189,112 and 12,610,229 shares issued and outstanding, respectively	132	126
Paid in capital	748	(578)
Retained earnings	7,456	10,879
Total shareholders’ equity	8,336	10,427
Total liabilities and shareholders’ equity	$ 23,872	$ 27,312

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 250	$ 250
Allowance for excess and obsolete inventory	$ 3,647	$ 3,476
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	13,189,112	13,189,112
Common stock, shares outstanding (in shares)	12,610,229	12,610,229

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Sales	$ 23,759	$ 12,667	$ 42,449	$ 25,416
Cost of sales	18,001	9,486	32,060	18,606
Gross profit	5,758	3,181	10,389	6,810
Operating expenses	2,753	2,167	5,253	4,224
Selling, general and administrative expenses	3,850	3,757	7,538	6,972
Depreciation and amortization expense	318	304	662	585
Loss (gain) on disposal of assets	2	0	2	(10)
Loss from operations	(1,165)	(3,047)	(3,066)	(4,961)
Other income (expense):
Interest income	0	33	0	81
Other expense, net	(168)	(8)	(240)	(27)
Interest expense	(61)	(42)	(116)	(110)
Other income (expense), net	(229)	(17)	(356)	(56)
Loss before income taxes	(1,394)	(3,064)	(3,422)	(5,017)
Income tax expense	0	0	0	0
Net loss	$ (1,394)	$ (3,064)	$ (3,422)	$ (5,017)
Loss per share:
Basic (in dollars per share)	$ (0.11)	$ (0.25)	$ (0.27)	$ (0.41)
Diluted (in dollars per share)	$ (0.11)	$ (0.25)	$ (0.27)	$ (0.41)
Shares used in per share calculation:
Basic (in shares)	13,071,053	12,416,594	12,875,055	12,281,721
Diluted (in shares)	13,071,053	12,416,594	12,875,055	12,281,721

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings
Beginning balance (in shares) at Sep. 30, 2020		11,822,009
Beginning balance at Sep. 30, 2020	$ 14,933	$ 118	$ (2,567)	$ 17,382
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,953)			(1,953)
Common stock issuance (in shares)		238,194
Common stock issuance	879	$ 3	876
Restricted stock issuance (in shares)		306,390
Restricted stock issuance	0	$ 3	(3)
Amortization of stock-based compensation	315		315
Ending balance (in shares) at Dec. 31, 2020		12,366,593
Ending balance at Dec. 31, 2020	14,174	$ 124	(1,379)	15,429
Beginning balance (in shares) at Sep. 30, 2020		11,822,009
Beginning balance at Sep. 30, 2020	14,933	$ 118	(2,567)	17,382
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,017)
Ending balance (in shares) at Mar. 31, 2021		12,413,372
Ending balance at Mar. 31, 2021	11,465	$ 124	(1,023)	12,364
Beginning balance (in shares) at Dec. 31, 2020		12,366,593
Beginning balance at Dec. 31, 2020	14,174	$ 124	(1,379)	15,429
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,064)			(3,064)
Common stock issuance (in shares)		7,779
Common stock issuance	21		21
Restricted stock issuance (in shares)		(10,000)
Restricted stock issuance	(1)	$ (1)
Stock option exercise (in shares)		49,000
Stock option exercise	89		89
Amortization of stock-based compensation	246		246
Ending balance (in shares) at Mar. 31, 2021		12,413,372
Ending balance at Mar. 31, 2021	11,465	$ 124	(1,023)	12,364
Beginning balance (in shares) at Sep. 30, 2021		12,610,229
Beginning balance at Sep. 30, 2021	10,427	$ 126	(578)	10,879
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,029)			(2,029)
Common stock issuance (in shares)		320,787
Common stock issuance	636	$ 3	633
Restricted stock issuance (in shares)		110,111
Restricted stock issuance	0	$ 1	(1)
Amortization of stock-based compensation	281		281
Ending balance (in shares) at Dec. 31, 2021		13,041,127
Ending balance at Dec. 31, 2021	9,315	$ 130	335	8,850
Beginning balance (in shares) at Sep. 30, 2021		12,610,229
Beginning balance at Sep. 30, 2021	10,427	$ 126	(578)	10,879
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,422)
Ending balance (in shares) at Mar. 31, 2022		13,189,112
Ending balance at Mar. 31, 2022	8,336	$ 132	748	7,456
Beginning balance (in shares) at Dec. 31, 2021		13,041,127
Beginning balance at Dec. 31, 2021	9,315	$ 130	335	8,850
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,394)			(1,394)
Common stock issuance (in shares)		143,985
Common stock issuance	168	$ 2	166
Restricted stock issuance (in shares)		4,000
Amortization of stock-based compensation	247		247
Ending balance (in shares) at Mar. 31, 2022		13,189,112
Ending balance at Mar. 31, 2022	$ 8,336	$ 132	$ 748	$ 7,456

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities:
Net loss	$ (3,422)	$ (5,017)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	503	426
Amortization	159	159
Non cash amortization of right-of-use asset and liability	(58)	(105)
Provision for excess and obsolete inventories	171	115
Share based compensation expense	528	561
Loss (gain) from disposal of property and equipment	2	(10)
Changes in assets and liabilities:
Accounts receivable	6,644	(649)
Unbilled revenue	(689)	(54)
Income tax receivable/payable	0	35
Inventories	(57)	(247)
Prepaid expenses and other assets	(254)	(533)
Accounts payable	1,049	881
Accrued expenses and other liabilities	19	375
Deferred revenue	57	(46)
Net cash provided by (used in) operating activities	4,652	(4,109)
Investing Activities:
Proceeds from promissory note receivable	0	1,505
Purchases of property and equipment	(194)	(93)
Disposals of property and equipment	42	29
Net cash (used in) provided by investing activities	(152)	1,441
Financing Activities:
Change in bank line of credit	(2,050)	0
Payments on financing lease obligations	(350)	(207)
Payments on notes payable	0	(1,249)
Proceeds from sale of common stock	804	900
Proceeds from stock options exercised	0	89
Net cash used in financing activities	(1,596)	(467)
Net increase (decrease) in cash, cash equivalents and restricted cash	2,904	(3,135)
Cash, cash equivalents and restricted cash at beginning of period	2,942	8,373
Cash, cash equivalents and restricted cash at end of period	$ 5,846	$ 5,238

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	6 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Accounting Policies	Basis of Presentation and Accounting Policies 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”). The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. However, the information furnished reflects all adjustments, which are, in the opinion of management, necessary in order to make the unaudited consolidated financial statements not misleading. The Company’s business is subject to seasonal variations due to weather in the geographic areas where services are performed, as well as calendar events and national holidays. Therefore, the results of operations for the six months ended March 31, 2022 and 2021, are not necessarily indicative of the results to be expected for the full fiscal year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021. 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	6 Months Ended
	Mar. 31, 2022
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 totaled approximately $1.5 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively, and $2.6 million and $1.3 million for the six month period ended March 31, 2022 and 2021, respectively. The Company’s customers include wireless carriers, wireless equipment providers, multiple system operators, resellers and direct sales to end-user customers. Sales, which individually accounted to 10% or greater of the Company's revenue, to two customers which totaled 38%, and to three customers comprised approximately 24%, of consolidated revenues for the six months ended March 31, 2022 and 2021, respectively. Our sales by type were as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Wireless services $ 7,767 $ 4,334 $ 14,885 $ 9,581 Telco equipment 15,986 8,189 27,410 15,464 Telco repair 6 7 18 13 Telco recycle — 137 136 358 Total sales $ 23,759 $ 12,667 $ 42,449 $ 25,416 Contract assets and contract liabilities are included in unbilled revenue and deferred revenue, respectively, in the consolidated balance sheets. At March 31, 2022 and September 30, 2021, contract assets were $3.2 million and $2.5 million, respectively, and contract liabilities were $0.2 million and $0.2 million, respectively. The Company recognized $0.2 million of contract revenue during the six months ended March 31, 2021 related to contract liabilities recorded in deferred revenue at September 30, 2021.

Accounts Receivable Agreements

Accounts Receivable Agreements	6 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Accounts Receivable Agreements	Accounts Receivable Agreements On March 17, 2022, the Company replaced its $3.0 million credit facility for its Nave and Triton subsidiaries with its primary financial lender with new accounts receivable purchase facilities with capacities of $9.0 million for Nave and $1.5 million for Triton. Under both facilities, the lender advances the Company 90% of sold receivables and establishes a reserve of 10% of the sold receivables until the Company collects the sold receivables. The lender charges a fee of 1.3% of sold receivables, and both facilities mature on March 17, 2023. On March 17, 2022, the Company also restructured its accounts receivable purchase facilities secured by the Company’s Fulton subsidiary’s receivables. Under the restructure, the credit capacity excluding a major customer was reduced from $4.5 million to $2.0 million, with a fee of 1.6% of sold receivables. The credit capacity secured by receivables of a major customer was reduced from $8.5 million to $6.5 million, with a fee of 1.5% of sold receivables. The lender advances the Company 90% of sold receivables and establishes a reserve of 10% of the sold receivables at initial sale, which increases to 100% over time after 120 days, until the Company collects the sold receivables. The facilities mature on December 17, 2022. The Company has a total capacity under all four lines of $19.0 million, which can be reallocated between the lines as needed. As of March 31, 2022, the lender has a reserve against the sold receivables of $1.9 million, which is reflected as restricted cash. The facilities agreements address 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 $11.3 million at March 31, 2022 for which there is a limit of $19.0 million. Although the sale of receivables is with recourse, the Company did not record a recourse obligation at March 31, 2022 as the Company concluded that the sold receivables are collectible. For the six months ended March 31, 2022 and 2021, the Company received proceeds from the sold receivables from all of the facilities of $19.9 million and $9.5 million, respectively, and included the proceeds in net cash used in operating activities in the consolidated statements of cash flows. The Company recorded costs of $0.3 million and $0.1 million for the six months ended March 31, 2022 and 2021, respectively, in other expense in the consolidated statements of operations.

Inventories

Inventories	6 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories, which are all within the Telco segment, at March 31, 2022 and September 30, 2021 are as follows, in thousands: March 31, 2022 September 30, 2021 New equipment $ 1,437 $ 1,295 Refurbished and used equipment 8,018 8,103 Allowance for excess and obsolete inventory (3,647) (3,476) Total inventories, net $ 5,808 $ 5,922

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company groups 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 future 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. Intangible assets with their associated accumulated amortization and impairment at March 31, 2022 and September 30, 2021 are as follows, in thousands: March 31, 2022 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,833) $ 322 Trade name – 10 years 2,122 (1,496) 626 Total intangible assets $ 5,277 $ (4,329) $ 948 September 30, 2021 Intangible assets: Gross Accumulated Net Customer relationships – 10 years $ 3,155 $ (2,780) $ 375 Trade name – 10 years 2,122 (1,390) 732 Total intangible assets $ 5,277 $ (4,170) $ 1,107

Debt

Debt	6 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Credit Agreement On March 17, 2022, the Company closed its $3.0 million credit facility for its Nave and Triton subsidiaries with its primary financial lender. See Note 3 - Accounts Receivable Agreements for more information about the Company's receivables purchase facilities.

Equity Distribution Agreement a

Equity Distribution Agreement and Sale of Common Stock	6 Months Ended
	Mar. 31, 2022
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 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 Capital 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 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.

Earnings per Share

Earnings per Share	6 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic and diluted earnings per share for the three and six months ended March 31, 2022 and 2021 are (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (1,394) $ (3,064) (3,422) (5,017) Basic and diluted weighted average shares 13,071,053 12,416,594 12,875,055 12,281,721 Basic and diluted loss per common share: $ (0.11) $ (0.25) $ (0.27) $ (0.41) The table below includes information related to stock options that were outstanding at the end of each respective three and six-month period ended March 31, but have been excluded from the computation of weighted-average stock options for dilutive securities because their effect would be anti-dilutive. Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Stock options excluded 50,000 90,744 50,000 95,423 Weighted average exercise price of stock options $ 1.28 $ 1.52 $ 1.28 $ 1.53 Average market price of common stock $ 1.32 $ 2.94 $ 1.69 $ 2.74

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information (in thousands) Six Months Ended March 31, 2022 2021 Supplemental cash flow information: Cash paid for interest $ 121 $ 73 Supplemental noncash investing and financing activities: Assets acquired under financing leases $ 475 $ 369

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Mar. 31, 2022
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. At March 31, 2022, 2,100,415 shares of common stock were reserved for stock award grants under the Plan. Of these reserved shares, 217,029 shares were available for future grants. Stock Options As of September 30, 2021, there were 50,000 stock options with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $54,000 outstanding under the Plan. There were no stock options granted, exercised, expired or forfeited during the six months ended March 31, 2022. As of March 31, 2022, 50,000 stock options remained outstanding and exercisable, with an average exercise price of $1.28 per share and an aggregate intrinsic value of $7,500. Restricted stock awards A summary of the Company's non-vested restricted share awards (RSA) at March 31, 2022 and changes during the quarter ended March 31, 2022 is presented in the following table (in thousands, except shares): Shares Fair Value Non-vested at December 31, 2021 737,634 $ 1,768 Granted 40,000 53 Vested (144,847) (370) Forfeited (36,000) (74) Non-vested at March 31, 2022 596,787 $ 1,377 During the three month period ended March 31, 2022 and 2021, compensation expenses related to share-based arrangements including restricted stock and stock option awards, were $0.2 million and $0.2 million, respectively. During the six month period ended March 31, 2022 and 2021, compensation expenses related to share-based arrangements including restricted stock and stock option awards, were $0.5 million and $0.6 million respectively. The Company did not recognize a tax benefit for compensation expense recognized during the three and six month period ended March 31, 2022 and 2021. At March 31, 2022, unrecognized compensation expense related to non-vested share-based compensation awards not yet recognized in the consolidated statements of operations was $0.6 million. That cost is expected to be recognized over a period of 2.9 years.

Leases

Leases	6 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases Our Wireless segment has an operating lease for a building in Fridley, Minnesota for Fulton Technologies, Inc. As a result of closing down and vacating Fulton Technologies, Inc.’s Minnesota office in May 2019, a third-party telecom company began subleasing this building in June 2019. The lease term expired on December 31, 2021. Our Telco segment has an operating lease for a building in Jessup, Maryland for Nave Communications. As a result of moving Nave’s operations to Palco Telecom, a third-party logistics provider in Huntsville, Alabama, in fiscal year 2020, Nave completely vacated the building in May 2020 and has subleased part of the building through the end of the lease period.

Segment Reporting

Segment Reporting	6 Months Ended
	Mar. 31, 2022
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. 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 allocates its corporate general and administrative expenses to the reportable segments. Three Months Ended Six Months Ended (in thousands) March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Sales Wireless $ 7,766 $ 4,334 $ 14,885 $ 9,581 Telco 15,993 8,333 27,564 15,835 Total sales $ 23,759 $ 12,667 $ 42,449 $ 25,416 Gross profit Wireless $ 1,537 $ 1,527 $ 3,044 $ 3,136 Telco 4,221 1,654 7,345 3,674 Total gross profit (loss) $ 5,758 $ 3,181 $ 10,389 $ 6,810 Loss from operations Wireless $ (2,203) $ (1,537) $ (4,528) $ (2,642) Telco 1,038 (1,510) 1,462 (2,319) Total loss from operations $ (1,165) $ (3,047) $ (3,066) $ (4,961) (in thousands) March 31, 2022 September 30, 2021 Segment assets Wireless $ 9,290 $ 7,867 Telco 9,256 14,472 Non-allocated 5,326 4,973 Total assets $ 23,872 $ 27,312

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	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”). The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. However, the information furnished reflects all adjustments, which are, in the opinion of management, necessary in order to make the unaudited consolidated financial statements not misleading. The Company’s business is subject to seasonal variations due to weather in the geographic areas where services are performed, as well as calendar events and national holidays. Therefore, the results of operations for the six months ended March 31, 2022 and 2021, are not necessarily indicative of the results to be expected for the full fiscal year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021.
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)	6 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our sales by type were as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Wireless services $ 7,767 $ 4,334 $ 14,885 $ 9,581 Telco equipment 15,986 8,189 27,410 15,464 Telco repair 6 7 18 13 Telco recycle — 137 136 358 Total sales $ 23,759 $ 12,667 $ 42,449 $ 25,416

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories, which are all within the Telco segment, at March 31, 2022 and September 30, 2021 are as follows, in thousands: March 31, 2022 September 30, 2021 New equipment $ 1,437 $ 1,295 Refurbished and used equipment 8,018 8,103 Allowance for excess and obsolete inventory (3,647) (3,476) Total inventories, net $ 5,808 $ 5,922

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Intangible assets with their associated accumulated amortization and impairment at March 31, 2022 and September 30, 2021 are as follows, in thousands: March 31, 2022 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,833) $ 322 Trade name – 10 years 2,122 (1,496) 626 Total intangible assets $ 5,277 $ (4,329) $ 948 September 30, 2021 Intangible assets: Gross Accumulated Net Customer relationships – 10 years $ 3,155 $ (2,780) $ 375 Trade name – 10 years 2,122 (1,390) 732 Total intangible assets $ 5,277 $ (4,170) $ 1,107

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Basic and diluted earnings per share for the three and six months ended March 31, 2022 and 2021 are (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (1,394) $ (3,064) (3,422) (5,017) Basic and diluted weighted average shares 13,071,053 12,416,594 12,875,055 12,281,721 Basic and diluted loss per common share: $ (0.11) $ (0.25) $ (0.27) $ (0.41)
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 three and six-month period ended March 31, but have been excluded from the computation of weighted-average stock options for dilutive securities because their effect would be anti-dilutive. Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Stock options excluded 50,000 90,744 50,000 95,423 Weighted average exercise price of stock options $ 1.28 $ 1.52 $ 1.28 $ 1.53 Average market price of common stock $ 1.32 $ 2.94 $ 1.69 $ 2.74

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	(in thousands) Six Months Ended March 31, 2022 2021 Supplemental cash flow information: Cash paid for interest $ 121 $ 73 Supplemental noncash investing and financing activities: Assets acquired under financing leases $ 475 $ 369

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	A summary of the Company's non-vested restricted share awards (RSA) at March 31, 2022 and changes during the quarter ended March 31, 2022 is presented in the following table (in thousands, except shares): Shares Fair Value Non-vested at December 31, 2021 737,634 $ 1,768 Granted 40,000 53 Vested (144,847) (370) Forfeited (36,000) (74) Non-vested at March 31, 2022 596,787 $ 1,377

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Three Months Ended Six Months Ended (in thousands) March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Sales Wireless $ 7,766 $ 4,334 $ 14,885 $ 9,581 Telco 15,993 8,333 27,564 15,835 Total sales $ 23,759 $ 12,667 $ 42,449 $ 25,416 Gross profit Wireless $ 1,537 $ 1,527 $ 3,044 $ 3,136 Telco 4,221 1,654 7,345 3,674 Total gross profit (loss) $ 5,758 $ 3,181 $ 10,389 $ 6,810 Loss from operations Wireless $ (2,203) $ (1,537) $ (4,528) $ (2,642) Telco 1,038 (1,510) 1,462 (2,319) Total loss from operations $ (1,165) $ (3,047) $ (3,066) $ (4,961) (in thousands) March 31, 2022 September 30, 2021 Segment assets Wireless $ 9,290 $ 7,867 Telco 9,256 14,472 Non-allocated 5,326 4,973 Total assets $ 23,872 $ 27,312

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total sales	$ 23,759	$ 12,667	$ 42,449	$ 25,416
Contract assets	3,177		3,177		$ 2,488
Contract liabilities	225		$ 225		$ 168
Contract liabilities, revenue recognized				$ 200
Customer Concentration Risk | Revenue Benchmark | Two Customers
Disaggregation of Revenue [Line Items]
Concentration risk, percentage			38.00%
Customer Concentration Risk | Revenue Benchmark | Three Customer
Disaggregation of Revenue [Line Items]
Concentration risk, percentage				24.00%
Central And South America
Disaggregation of Revenue [Line Items]
Total sales	$ 1,500	$ 900	$ 2,600	$ 1,300

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total sales	$ 23,759	$ 12,667	$ 42,449	$ 25,416
Operating segments
Disaggregation of Revenue [Line Items]
Total sales	23,759	12,667	42,449	25,416
Telco | Operating segments
Disaggregation of Revenue [Line Items]
Total sales	15,993	8,333	27,564	15,835
Wireless services
Disaggregation of Revenue [Line Items]
Total sales	7,767	4,334	14,885	9,581
Telco equipment | Telco | Operating segments
Disaggregation of Revenue [Line Items]
Total sales	15,986	8,189	27,410	15,464
Telco repair
Disaggregation of Revenue [Line Items]
Total sales	6	7	18	13
Telco recycle
Disaggregation of Revenue [Line Items]
Total sales	$ 0	$ 137	$ 136	$ 358

Accounts Receivable Agreements

Accounts Receivable Agreements (Details) - USD ($)	Mar. 17, 2022	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Line of credit, maximum borrowing capacity	$ 3,000,000	$ 19,000,000
Increase period	120 days
Restricted cash		1,912,000		$ 334,000
Triton
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable maximum credit purchase capacity	$ 1,500,000
Nave
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable maximum credit purchase capacity	$ 9,000,000
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	1.30%
Accounts receivable agreement percent of sold receivables final percent	100.00%
Line of credit, remaining borrowing capacity		19,000,000
Proceeds from collection of finance receivables		19,900,000	$ 9,500,000
Certain Receivables to Unrelated Third-parties | Customer One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable maximum credit purchase capacity	$ 4,500,000
Accounts receivable minimum credit purchase capacity	$ 2,000,000
Accounts receivable sales percentage	1.60%
Certain Receivables to Unrelated Third-parties | Customer Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable maximum credit purchase capacity	$ 8,500,000
Accounts receivable minimum credit purchase capacity	$ 6,500,000
Accounts receivable sales percentage	1.50%
Certain Receivables to Unrelated Third-parties | Other Nonoperating Income (Expense)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost of selling receivables		300,000	$ 100,000
Uncollectible Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Thirty party financial institution reserve		$ 11,300,000

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Inventory [Line Items]
Allowance for excess and obsolete inventory	$ (3,647)	$ (3,476)
Total inventories, net	5,808	5,922
New equipment
Inventory [Line Items]
Inventory, gross	1,437	1,295
Refurbished and used equipment
Inventory [Line Items]
Inventory, gross	$ 8,018	$ 8,103

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2022	Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Gross	$ 5,277	$ 5,277
Accumulated Amortization	(4,329)	(4,170)
Net	948	1,107
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	3,155	3,155
Accumulated Amortization	(2,833)	(2,780)
Net	$ 322	$ 375
Useful life	10 years	10 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross	$ 2,122	$ 2,122
Accumulated Amortization	(1,496)	(1,390)
Net	$ 626	$ 732
Useful life	10 years	10 years

Debt (Details)

Debt (Details) - USD ($)	Mar. 31, 2022	Mar. 17, 2022
Debt Disclosure [Abstract]
Line of credit, maximum borrowing capacity	$ 19,000,000	$ 3,000,000

Equity Distribution Agreement_2

Equity Distribution Agreement and Sale of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021	Apr. 24, 2020
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Proceeds from sale of common stock, gross	$ 804	$ 900
Proceeds from sale of common stock, net	$ 800
Sales Agreement With Northland
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (in dollars per share)				$ 0.01
Maximum aggregate offering price				$ 13,900
Commission rate	3.00%
Common stock issuance (in shares)	464,772

Earnings Per Share - Basic and

Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (1,394)	$ (2,029)	$ (3,064)	$ (1,953)	$ (3,422)	$ (5,017)
Basic weighted average shares (in shares)	13,071,053		12,416,594		12,875,055	12,281,721
Diluted weighted average shares (in shares)	13,071,053		12,416,594		12,875,055	12,281,721
Basic loss per common share (in dollars per share)	$ (0.11)		$ (0.25)		$ (0.27)	$ (0.41)
Diluted loss per common share (in shares)	$ (0.11)		$ (0.25)		$ (0.27)	$ (0.41)

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive Securities (Details) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Stock options excluded (in shares)	50,000	90,744	50,000	95,423
Weighted average exercise price of stock options (in dollars per share)	$ 1.28	$ 1.52	$ 1.28	$ 1.53
Average market price of common stock (in dollars per share)	$ 1.32	$ 2.94	$ 1.69	$ 2.74

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental cash flow information:
Cash paid for interest	$ 121	$ 73
Supplemental noncash investing and financing activities:
Assets acquired under financing leases	$ 475	$ 369

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	50,000		50,000		50,000
Weighted average exercise price (in dollars per share)	$ 1.28		$ 1.28		$ 1.28
Options outstanding, intrinsic value	$ 7,500		$ 7,500		$ 54
Compensation expense	200	$ 200	500	$ 600
Compensation cost, not yet recognized	$ 600		$ 600
Recognized over a period			2 years 10 months 24 days
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		2,100,415
Number of shares available for grant (in shares)	217,029		217,029

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Non-vested Restricted Share Awards (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)shares
Shares
Nonvested, beginning balance (in shares) | shares	737,634
Granted (in shares) | shares	40,000
Vested (in shares) | shares	(144,847)
Forfeited (in shares) | shares	(36,000)
Nonvested, ending balance (in shares) | shares	596,787
Fair Value
Non-vested, beginning balance | $	$ 1,768
Granted | $	53
Vested | $	(370)
Forfeited | $	(74)
Non-vested, ending balance | $	$ 1,377

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022USD ($)carrier	Mar. 31, 2021USD ($)	Mar. 31, 2022USD ($)carrier	Mar. 31, 2021USD ($)	Sep. 30, 2021USD ($)
Segment Reporting [Abstract]
Number of US wireless carriers | carrier	4		4
Segment Reporting Information [Line Items]
Total sales	$ 23,759	$ 12,667	$ 42,449	$ 25,416
Total gross profit (loss)	5,758	3,181	10,389	6,810
Total loss from operations	(1,165)	(3,047)	(3,066)	(4,961)
Segment assets	23,872		23,872		$ 27,312
Operating segments
Segment Reporting Information [Line Items]
Total sales	23,759	12,667	42,449	25,416
Total loss from operations	(1,165)	(3,047)	(3,066)	(4,961)
Non-allocated
Segment Reporting Information [Line Items]
Segment assets	5,326		5,326		4,973
Wireless | Operating segments
Segment Reporting Information [Line Items]
Total sales	7,766	4,334	14,885	9,581
Total gross profit (loss)	1,537	1,527	3,044	3,136
Total loss from operations	(2,203)	(1,537)	(4,528)	(2,642)
Wireless | Operating segments | Continuing Operations
Segment Reporting Information [Line Items]
Segment assets	9,290		9,290		7,867
Telco | Operating segments
Segment Reporting Information [Line Items]
Total sales	15,993	8,333	27,564	15,835
Total gross profit (loss)	4,221	1,654	7,345	3,674
Total loss from operations	1,038	$ (1,510)	1,462	$ (2,319)
Telco | Operating segments | Continuing Operations
Segment Reporting Information [Line Items]
Segment assets	$ 9,256		$ 9,256		$ 14,472