Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
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 | $ 12,138,955 | ||
Entity Common Stock, Shares Outstanding | 14,132,033 | ||
Entity Central Index Key | 0000874292 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 483 |
Auditor Name | Hogan Taylor LLP |
Auditor Location | Tulsa, Oklahoma |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 2,552 | $ 1,837 | $ 2,608 |
Restricted cash | 1,101 | 581 | 334 |
Accounts receivable, net of allowances of $262, $250 and $250, respectively | 1,682 | 6,469 | 7,013 |
Unbilled revenue | 5,005 | 2,219 | 2,488 |
Income tax receivable | 102 | 0 | 0 |
Inventories, net of allowance of $3,871, $3,567 and $3,476, respectively | 9,563 | 5,653 | 5,922 |
Prepaid expenses and other current assets | 1,399 | 1,371 | 1,431 |
Total current assets | 21,404 | 18,130 | 19,796 |
Machinery and equipment | 5,542 | 5,354 | 4,973 |
Leasehold improvements | 899 | 821 | 813 |
Total property and equipment, at cost | 6,441 | 6,175 | 5,786 |
Less: Accumulated depreciation | (3,057) | (2,558) | (2,293) |
Net property and equipment | 3,384 | 3,617 | 3,493 |
Right-of-use lease assets | 1,540 | 2,466 | 2,730 |
Intangibles, net of accumulated amortization | 709 | 1,027 | 1,107 |
Goodwill | 58 | 58 | 58 |
Other assets | 123 | 128 | 128 |
Total assets | 27,218 | 25,426 | 27,312 |
Current liabilities: | |||
Accounts payable | 9,407 | 6,812 | 7,044 |
Accrued expenses | 1,445 | 1,184 | 1,581 |
Deferred revenue | 148 | 207 | 168 |
Bank line of credit | 0 | 2,050 | 2,050 |
Right-of-use lease obligations, current | 1,204 | 1,177 | 1,198 |
Finance lease obligations, current | 636 | 652 | 582 |
Other current liabilities | 442 | 706 | 692 |
Total current liabilities | 13,282 | 12,788 | 13,315 |
Right-of-use lease obligations, long-term | 635 | 1,839 | 2,141 |
Finance lease obligations, long-term | 1,254 | 1,484 | 1,429 |
Total liabilities | 15,171 | 16,111 | 16,885 |
Shareholders’ equity: | |||
Common stock, $.01 par value; 30,000,000 shares authorized; 14,132,033, 13,041,127, and 12,610,229 shares issued and outstanding, respectively | 141 | 130 | 126 |
Paid in capital | 2,585 | 335 | (578) |
Retained earnings | 9,321 | 8,850 | 10,879 |
Total shareholders’ equity | 12,047 | 9,315 | 10,427 |
Total liabilities and shareholders’ equity | $ 27,218 | $ 25,426 | $ 27,312 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | |||
Accounts receivable, allowance for credit loss, current | $ 262 | $ 250 | $ 250 |
Inventory valuation reserves | $ 3,871 | $ 3,567 | $ 3,476 |
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock issuance (in shares) | 14,132,033 | 13,041,127 | 12,610,229 |
Common stock, shares, outstanding (in shares) | 14,132,033 | 13,041,127 | 12,610,229 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 18,690 | $ 97,028 | $ 62,160 |
Cost of sales | 14,059 | 69,239 | 46,033 |
Gross profit | 4,631 | 27,789 | 16,127 |
Operating expenses | 2,500 | 9,845 | 9,329 |
Selling, general and administrative expense | 3,688 | 15,571 | 14,890 |
Depreciation and amortization expense | 345 | 1,234 | 1,228 |
Gain on disposal of assets | 0 | 338 | 23 |
Income (loss) from operations | (1,902) | 1,477 | (9,297) |
Other income (expense): | |||
Gain on extinguishment of debt | 0 | 0 | 2,955 |
Interest income | 0 | 0 | 135 |
Interest expense | (55) | (176) | (238) |
Other expense | (72) | (822) | (110) |
Other income (expense), net | (127) | (998) | 2,742 |
Income (loss) before income taxes | (2,029) | 479 | (6,555) |
Income tax provision (benefit) | 0 | 8 | (53) |
Net income (loss) | $ (2,029) | $ 471 | $ (6,502) |
Income (loss) per share: | |||
Basic (in dollars per share) | $ (0.16) | $ 0.03 | $ (0.52) |
Diluted (in dollars per share) | $ (0.16) | $ 0.03 | $ (0.52) |
Shares used in per share calculation: | |||
Basic (in shares) | 12,683,312 | 13,484,271 | 12,401,043 |
Diluted (in shares) | 12,683,312 | 13,484,271 | 12,401,043 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Product [Member] | Product [Member] | Product [Member] |
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 income (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 | |||
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 | ||
Ending balance (in shares) at Sep. 30, 2021 | 12,610,229 | 12,610,229 | ||
Ending balance at Sep. 30, 2021 | $ 10,427 | $ 126 | (578) | 10,879 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (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 | 13,041,127 | ||
Ending balance at Dec. 31, 2021 | $ 9,315 | $ 130 | 335 | 8,850 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 471 | 471 | ||
Common stock issuance (in shares) | 892,181 | |||
Common stock issuance | $ 1,627 | $ 9 | 1,618 | |
Stock options exercised (in shares) | 50,000 | 50,000 | ||
Stock option exercise | $ 64 | $ 1 | 63 | |
Restricted stock issuance (in shares) | 148,725 | |||
Restricted stock issuance | 0 | $ 1 | (1) | |
Amortization of stock-based compensation | $ 570 | 570 | ||
Ending balance (in shares) at Dec. 31, 2022 | 14,132,033 | 14,132,033 | ||
Ending balance at Dec. 31, 2022 | $ 12,047 | $ 141 | $ 2,585 | $ 9,321 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Operating Activities: | |||
Net income (loss) | $ (2,029) | $ 471 | $ (6,502) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 265 | 915 | 910 |
Amortization | 80 | 319 | 318 |
Non cash amortization of right-of-use asset and liability | (51) | (252) | (288) |
Provision for excess and obsolete inventories | 91 | 304 | 422 |
Charge for lower of cost or net realizable value inventories | 0 | 165 | 105 |
Gain on disposal of property and equipment | 0 | (338) | (23) |
Share based compensation expense | 281 | 570 | 1,009 |
Gain on extinguishment of debt | 0 | 0 | (2,955) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 544 | 4,787 | (3,045) |
Unbilled revenue | 269 | (2,786) | (1,899) |
Income tax refund receivable\payable | 0 | (74) | 1,284 |
Inventories | 179 | (4,379) | (875) |
Prepaid expenses and other current assets | 59 | (23) | (547) |
Other assets | 0 | 0 | 51 |
Accounts payable | (232) | 2,595 | 3,572 |
Accrued expenses | (384) | (31) | 898 |
Deferred revenue | 39 | (59) | 55 |
Net cash provided by (used in) operating activities | (889) | 2,184 | (7,510) |
Investing Activities: | |||
Proceeds from promissory note receivable | 0 | 0 | 3,775 |
Purchases of property and equipment | (116) | (240) | (300) |
Disposals of property and equipment | 0 | 549 | 44 |
Net cash provided by (used in) investing activities | (116) | 309 | 3,519 |
Financing Activities: | |||
Change in bank line of credit | 0 | (2,050) | (750) |
Payments on financing lease obligations | (155) | (899) | (484) |
Payments on notes payable | 0 | 0 | (1,194) |
Proceeds from sale of common stock | 636 | 1,627 | 899 |
Proceeds from stock options exercised | 0 | 64 | 89 |
Net cash (used in) provided by financing activities | 481 | (1,258) | (1,440) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (524) | 1,235 | (5,431) |
Cash, cash equivalents and restricted cash at beginning of year | 2,942 | 2,418 | 8,373 |
Cash, cash equivalents and restricted cash at end of year | $ 2,418 | $ 3,653 | $ 2,942 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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”). Change in year end In September 2022, the Company's Board of Directors approved a change in the Company's fiscal year end from September 30 to December 31. The Company's current fiscal year runs from January 1, 2022 through December 31, 2022 (fiscal 2022). As a result of the change in year end, the Company filed a Transition Report on Form 10-Q for the period from October 1, 2021 through December 31, 2021. 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, see Note 3 - Accounts Receivable Agreements. Revenue recognition The Company recognizes revenue at the time a good or service is transferred to the 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 new and refurbished 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 both the Company’s Wireless and Telco segments, the Company has entered into various agreements 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 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. 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. 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 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, 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). 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, $0.3 million and $0.9 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively. 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 $0.3 million, $0.1 million and $0.4 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, 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 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 December 31, 2022, two Telco customers accounted for 24% and 11% of trade accounts receivable, respectively. 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. 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 $0.1 million, $34 thousand and $0.2 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively. 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 |
Dec. 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 $6.2 million, $1.1 million, and $4.7 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 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 amounted to 10% or greater of the Company's revenue, to two customers totaled approximately 28%, 37%, and 28% of consolidated sales for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively. Sales by type for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 were as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Wireless services sales $ 30,813 $ 7,119 $ 20,708 Equipment sales: Telco 66,016 11,424 40,663 Inter-segment (5) — (101) Telco repair sales 12 11 27 Telco recycle sales 192 136 863 Total sales $ 97,028 $ 18,690 $ 62,160 Contract assets and contract liabilities are included in unbilled revenue and deferred revenue, respectively, in the consolidated balance sheets. Contract assets were $5.0 million, $2.2 million and $2.5 million at December 31, 2022, 2021, and September 30, 2021, respectively. Contract liabilities were were $0.1 million, $0.2 million and $0.2 million at December 31, 2022, 2021, and September 30, 2021, respectively. During the year ended December 31, 2022, the Company recognized $0.2 million as revenue from amounts classified as deferred revenue on our consolidated balance sheet at December 31, 2021. During the three months ended ended December 31, 2021, the Company recognized $0.2 million as revenue from amounts classified as deferred revenue on our consolidated balance sheet at September 30, 2021. |
Accounts Receivable Agreements
Accounts Receivable Agreements | 12 Months Ended |
Dec. 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 $13.0 million for Nave and $3.0 million for Triton. The lender charges a fee of 1.3% of sold receivables. On March 17, 2022, the Company also restructured its accounts receivable purchase facilities secured by the Company’s Fulton subsidiary’s receivables. Effective December 17, 2022, the modified Fulton facilities provide a credit capacity excluding a major customer of $1.5 million, with a fee of 2.0% of sold receivables, and credit capacity secured by receivables of a major customer of $1.5 million, with a fee of 1.6% of sold receivables. For all four facilities, the lender advances 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. All four facilities mature on December 17, 2023. The Company has a total capacity under all four facilities of $19.0 million. As of December 31, 2022, the lender has a reserve against the sold receivables of $1.1 million, which is reflected as restricted cash on the consolidated balance sheets. 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 $7.0 million at December 31, 2022. Although the sale of receivables is with recourse, the Company did not record a recourse obligation at December 31, 2022 as the Company concluded that the sold receivables are collectible. For the year ended December 31, 2022, the Company received proceeds from the sold receivables under all of their various agreements of $71.6 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 $1.0 million for the year ended December 31, 2022, in other expense in the consolidated statements of operations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | InventoriesInventories, which are all within the Telco segment, at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 New equipment $ 2,286 $ 1,396 $ 1,295 Refurbished and used equipment 11,148 7,824 8,103 Allowance for excess and obsolete inventory: (3,871) (3,567) (3,476) Total inventories, net $ 9,563 $ 5,653 $ 5,922 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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, 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 $0.3 million, $0.1 million and $0.4 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively and the Company has a $3.9 million allowance at December 31, 2022. The Company also reviewed the cost of inventories against estimated net realizable value and for the years ended December 31, 2022 and September 30, 2021, recorded a lower of cost or net realizable value charge of $0.2 million and $0.1 million, respectively. There were no adjustments for lower of cost or net realizable value recorded for the transition period of three months ended December 31, 2021. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The intangible assets with their associated accumulated amortization amounts at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, 2022 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,913) $ 242 Trade name – 10 years 2,122 (1,655) 467 Total intangible assets $ 5,277 $ (4,568) $ 709 December 31, 2021 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,807) $ 348 Trade name – 10 years 2,122 (1,443) 679 Total intangible assets $ 5,277 $ (4,250) $ 1,027 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 Amortization expense was $0.3 million, $0.1 million and $0.3 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows, in thousands: 2023 $ 319 2024 142 2025 107 2026 90 2027 25 Thereafter 26 Total $ 709 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 Employee costs $ 915 $ 945 $ 1,255 Taxes other than income tax 54 3 (13) Other, net 476 236 339 Total accrued expenses $ 1,445 $ 1,184 $ 1,581 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Agreement On December 28, 2021, the Company renewed its credit facility for its Nave and Triton subsidiaries with its primary financial lender by entering into a Business Loan Agreement and various ancillary debt and collateral agreements. The renewed Nave and Triton credit facility was for a maximum of $3.0 million and was secured by the Company’s Nave and Triton Subsidiaries’ accounts receivable and inventory. As renewed, the previous Nave and Triton credit facility was reduced by $1.0 million and required quarterly interest payments based on the Wall Street Journal Prime Rate floating rate (3.25% at December 31, 2021) plus 0.75%. At December 31, 2021, there was $2.1 million outstanding under the line of credit. 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases 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 The components of lease expense for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Right-of-use lease cost Right-of-use lease cost $ 1,087 $ 319 $ 1,160 Finance lease costs Amortization assets under finance leases $ 604 $ 139 $ 412 Interest on finance lease liabilities 155 37 75 Total finance lease cost $ 759 $ 176 $ 487 Supplemental cash flow information related to leases for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,087 $ 319 $ 1,160 Operating cash flows from finance leases $ 155 $ 37 $ 75 Financing cash flows from finance leases $ 899 $ 155 $ 484 Supplemental balance sheet information related to leases at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 Right-of-use leases Right-of-use lease assets $ 1,540 $ 2,466 $ 2,730 Right-of-use lease obligations - current $ 1,204 $ 1,177 $ 1,198 Right-of-use lease obligations 635 1,839 2,141 Total right-of-use lease liabilities $ 1,839 $ 3,016 $ 3,339 Finance leases Property and equipment, gross $ 3,409 $ 3,115 $ 2,843 Accumulated depreciation (1,244) (846) (707) Property and equipment, net $ 2,165 $ 2,269 $ 2,136 Financing lease obligations - current $ 636 $ 652 $ 582 Financing lease obligations 1,254 1,484 1,429 Total finance lease liabilities $ 1,890 $ 2,136 $ 2,011 Weighted Average Remaining Lease Term Right-of-use leases 1.64 years 2.63 years 2.78 years Finance leases 3.25 years 3.47 years 3.75 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % 5.00 % Finance leases 7.77 % 6.76 % 6.72 % Maturities of lease liabilities are as follows for the year ending December 31, 2022, in thousands: Right-of-use Leases Finance Leases 2023 $ 1,316 $ 760 2024 621 675 2025 65 415 2026 — 223 2027 — 78 Thereafter — — Total lease payments 2,002 2,151 Less: imputed interest 163 261 Total lease obligations $ 1,839 $ 1,890 |
Leases | Leases 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 The components of lease expense for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Right-of-use lease cost Right-of-use lease cost $ 1,087 $ 319 $ 1,160 Finance lease costs Amortization assets under finance leases $ 604 $ 139 $ 412 Interest on finance lease liabilities 155 37 75 Total finance lease cost $ 759 $ 176 $ 487 Supplemental cash flow information related to leases for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,087 $ 319 $ 1,160 Operating cash flows from finance leases $ 155 $ 37 $ 75 Financing cash flows from finance leases $ 899 $ 155 $ 484 Supplemental balance sheet information related to leases at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 Right-of-use leases Right-of-use lease assets $ 1,540 $ 2,466 $ 2,730 Right-of-use lease obligations - current $ 1,204 $ 1,177 $ 1,198 Right-of-use lease obligations 635 1,839 2,141 Total right-of-use lease liabilities $ 1,839 $ 3,016 $ 3,339 Finance leases Property and equipment, gross $ 3,409 $ 3,115 $ 2,843 Accumulated depreciation (1,244) (846) (707) Property and equipment, net $ 2,165 $ 2,269 $ 2,136 Financing lease obligations - current $ 636 $ 652 $ 582 Financing lease obligations 1,254 1,484 1,429 Total finance lease liabilities $ 1,890 $ 2,136 $ 2,011 Weighted Average Remaining Lease Term Right-of-use leases 1.64 years 2.63 years 2.78 years Finance leases 3.25 years 3.47 years 3.75 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % 5.00 % Finance leases 7.77 % 6.76 % 6.72 % Maturities of lease liabilities are as follows for the year ending December 31, 2022, in thousands: Right-of-use Leases Finance Leases 2023 $ 1,316 $ 760 2024 621 675 2025 65 415 2026 — 223 2027 — 78 Thereafter — — Total lease payments 2,002 2,151 Less: imputed interest 163 261 Total lease obligations $ 1,839 $ 1,890 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 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. In September 2022, at the Company's annual meeting of shareholders, the shareholders authorized an additional 1,000,000 shares of common stock be added to the Plan. At December 31, 2022, 3,100,415 shares of common stock were reserved for stock award grants under the Plan. Of these reserved shares, 1,072,304 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 thousand outstanding under the Plan. As of December 31, 2021, there were 50,000 stock options with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $22 thousand outstanding under the Plan. There were 50,000 stock options exercised during the year ended December 31, 2022 with a weighted average exercise price of $1.28 per share and an aggregate intrinsic value of $47 thousand. As of December 31, 2022, no stock options remained outstanding. Restricted stock awards A summary of the Company's non-vested restricted share awards at December 31, 2022 and changes during the transition period of three months ended December 31, 2021 and the year ended December 31, 2022 is presented in the following table ($ in thousands): Shares Fair Value Non-vested at September 30, 2021 739,913 $ 1,706 Granted 130,111 $ 333 Vested (112,390) $ (230) Forfeited (20,000) $ (41) Non-vested at December 31, 2021 737,634 $ 1,768 Granted 260,391 361 Vested (354,634) (857) Forfeited (111,666) (256) Non-vested at December 31, 2022 531,725 $ 1,016 Compensation expense related to restricted stock recorded for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 is as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Fiscal year 2020 grant $ 36 $ 37 $ 450 Fiscal year 2021 grant 252 125 556 2021 Transition period grant 87 119 — Fiscal year 2022 grant 195 — — Total restricted stock compensation expense $ 570 $ 281 $ 1,006 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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021. At December 31, 2022, unrecognized compensation expense related to non-vested stock-based compensation awards not yet recognized in the consolidated statements of operations was $0.4 million. That cost is expected to be recognized over a period of 2.50 years. |
Equity Distribution Agreement a
Equity Distribution Agreement and Sale of Common Stock | 12 Months Ended |
Dec. 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 (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 were 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 sold 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 used 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 have imposed. The Company paid Northland a commission rate equal to an aggregate of 3.0% of the aggregate gross proceeds from each sale of Shares and agreed to provide Northland with customary indemnification and contribution rights. The Company also reimbursed Northland for certain specified expenses in connection with entering into the Sales Agreement. The Sales Agreement contained customary representations and warranties and conditions to the placements of the Shares pursuant thereto. During the three months ended December 31, 2021, 320,787 Shares were sold by Northland on behalf of the Company with gross proceeds of $0.7 million, and net proceeds after commissions and fees of $0.6 million. During the year ended December 31, 2022, 892,181 shares were sold by Northland on behalf of the Company with gross proceeds of $1.7 million, and net proceeds after commissions and fees of $1.6 million. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (in thousands) Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Supplemental cash flow information: Cash paid for interest $ 176 $ 59 $ 257 Supplemental noncash investing activities: Assets acquired under financing leases $ 653 $ 272 $ 1,623 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted earnings per share for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Net loss attributable to common shareholders $ 471 $ (2,029) $ (6,502) Basic weighted average shares 13,484 12,683 12,401 Effect of dilutive securities: Stock options — — — Diluted weighted average shares 13,484 12,683 12,401 Loss per common share: Basic $ 0.03 $ (0.16) $ (0.52) Diluted $ 0.03 $ (0.16) $ (0.52) 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. December 31, December 31, September 30, 2022 2021 2021 Stock options excluded — 50,000 50,000 Weighted average exercise price of stock options $ 1.28 $ 1.28 Average market price of common stock $ 2.05 $ 2.57 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 consists of, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Current $ 8 $ — $ (53) Deferred — — — Total provision (benefit) for income taxes $ 8 $ — $ (53) 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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of U.S. federal tax benefit (3.2) % 1.9 % 5.4 % Return to accrual adjustment — % — % 5.8 % Change in rate (4.1 %) — % — % Permanent differences (14.5) % — % — % Valuation allowance 20.5 % (21.4 %) (32.7 %) Other exclusions (18.0) % (1.5) % 1.3 % Company’s effective tax rate 1.7 % 0.0% 0.8 % The Company continues to provide a valuation allowance of $9.1 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 December 31, 2022, 2021, and September 30, 2021 consist of the following, in thousands: December 31, December 31, September 30, 2022 2021 2021 Deferred tax assets: Net operating loss carryforwards $ 6,376 $ 6,382 $ 5,895 Accounts receivable 72 69 69 Inventory 1,071 994 966 Intangibles 2,079 2,320 2,370 Accrued expenses 312 271 334 Stock options — 5 5 Other 64 64 64 Total deferred tax assets 9,974 10,105 9,703 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 803 855 815 Other 120 294 365 Total deferred tax liabilities 923 1,149 1180 Less valuation allowance 9,051 8,956 8,523 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 December 31, 2022 — Transition period ended December 31, 2021 2,100 No expiry Year ended September 30, 2021 9,500 No expiry Year ended September 30, 2020 9,270 No expiry Year ended September 30, 2019 1,495 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 $9.1 million is needed. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 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. (in thousands) Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Sales Wireless $ 30,813 $ 7,119 $ 20,708 Telco 66,220 11,571 41,553 Intersegment (5) — (101) Total sales $ 97,028 $ 18,690 $ 62,160 Gross profit Wireless $ 8,611 $ 1,507 $ 6,277 Telco 19,178 3,124 9,850 Total gross profit $ 27,789 $ 4,631 $ 16,127 Income (loss) from operations Wireless $ (4,792) $ (2,326) $ (6,864) Telco 6,269 424 (2,433) Total operating income ( loss) $ 1,477 $ (1,902) $ (9,297) (in thousands) December 31, December 31, September 30, 2022 2021 2021 Segment assets Wireless $ 9,790 $ 7,640 $ 7,867 Telco 13,217 14,545 14,472 Non-allocated 4,211 3,241 4,973 Total assets $ 27,218 $ 25,426 $ 27,312 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent eventsThe Company has evaluated subsequent events through the filing of this Form 10-K, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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”). |
Change in year end | Change in year end In September 2022, the Company's Board of Directors approved a change in the Company's fiscal year end from September 30 to December 31. The Company's current fiscal year runs from January 1, 2022 through December 31, 2022 (fiscal 2022). As a result of the change in year end, the Company filed a Transition Report on Form 10-Q for the period from October 1, 2021 through December 31, 2021. |
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, see Note 3 - Accounts Receivable Agreements. |
Revenue recognition | Revenue recognition The Company recognizes revenue at the time a good or service is transferred to the 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 new and refurbished 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 both the Company’s Wireless and Telco segments, the Company has entered into various agreements with recourse, to sell certain receivables to unrelated third-party financial institutions. The other agreements without |
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 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. 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. 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 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, 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). |
Property and equipment | Property and equipment Property and equipment consist of software, office equipment, wireless services equipment and warehouse and service equipment |
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 costsAdvertising costs are expensed as incurred. |
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 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. |
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 |
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. Retirement Plan |
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 |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Sales by type for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 were as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Wireless services sales $ 30,813 $ 7,119 $ 20,708 Equipment sales: Telco 66,016 11,424 40,663 Inter-segment (5) — (101) Telco repair sales 12 11 27 Telco recycle sales 192 136 863 Total sales $ 97,028 $ 18,690 $ 62,160 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, which are all within the Telco segment, at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 New equipment $ 2,286 $ 1,396 $ 1,295 Refurbished and used equipment 11,148 7,824 8,103 Allowance for excess and obsolete inventory: (3,871) (3,567) (3,476) Total inventories, net $ 9,563 $ 5,653 $ 5,922 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The intangible assets with their associated accumulated amortization amounts at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, 2022 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,913) $ 242 Trade name – 10 years 2,122 (1,655) 467 Total intangible assets $ 5,277 $ (4,568) $ 709 December 31, 2021 Intangible assets: Gross Accumulated Amortization Net Customer relationships – 10 years $ 3,155 $ (2,807) $ 348 Trade name – 10 years 2,122 (1,443) 679 Total intangible assets $ 5,277 $ (4,250) $ 1,027 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 |
Schedule of Estimated Future Amortization Expense | The estimated aggregate amortization expense for each of the next five fiscal years is as follows, in thousands: 2023 $ 319 2024 142 2025 107 2026 90 2027 25 Thereafter 26 Total $ 709 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 Employee costs $ 915 $ 945 $ 1,255 Taxes other than income tax 54 3 (13) Other, net 476 236 339 Total accrued expenses $ 1,445 $ 1,184 $ 1,581 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Right-of-use lease cost Right-of-use lease cost $ 1,087 $ 319 $ 1,160 Finance lease costs Amortization assets under finance leases $ 604 $ 139 $ 412 Interest on finance lease liabilities 155 37 75 Total finance lease cost $ 759 $ 176 $ 487 |
Schedule of Cash Flow and Supplemental Disclosures | Supplemental cash flow information related to leases for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,087 $ 319 $ 1,160 Operating cash flows from finance leases $ 155 $ 37 $ 75 Financing cash flows from finance leases $ 899 $ 155 $ 484 (in thousands) Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Supplemental cash flow information: Cash paid for interest $ 176 $ 59 $ 257 Supplemental noncash investing activities: Assets acquired under financing leases $ 653 $ 272 $ 1,623 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands: December 31, December 31, September 30, 2022 2021 2021 Right-of-use leases Right-of-use lease assets $ 1,540 $ 2,466 $ 2,730 Right-of-use lease obligations - current $ 1,204 $ 1,177 $ 1,198 Right-of-use lease obligations 635 1,839 2,141 Total right-of-use lease liabilities $ 1,839 $ 3,016 $ 3,339 Finance leases Property and equipment, gross $ 3,409 $ 3,115 $ 2,843 Accumulated depreciation (1,244) (846) (707) Property and equipment, net $ 2,165 $ 2,269 $ 2,136 Financing lease obligations - current $ 636 $ 652 $ 582 Financing lease obligations 1,254 1,484 1,429 Total finance lease liabilities $ 1,890 $ 2,136 $ 2,011 Weighted Average Remaining Lease Term Right-of-use leases 1.64 years 2.63 years 2.78 years Finance leases 3.25 years 3.47 years 3.75 years Weighted Average Discount Rate Right-of-use leases 5.00 % 5.00 % 5.00 % Finance leases 7.77 % 6.76 % 6.72 % |
Schedule of Future Maturities of Operating Lease Liabilities | Maturities of lease liabilities are as follows for the year ending December 31, 2022, in thousands: Right-of-use Leases Finance Leases 2023 $ 1,316 $ 760 2024 621 675 2025 65 415 2026 — 223 2027 — 78 Thereafter — — Total lease payments 2,002 2,151 Less: imputed interest 163 261 Total lease obligations $ 1,839 $ 1,890 |
Schedule of Future Maturities of Finance Lease Liabilities | Maturities of lease liabilities are as follows for the year ending December 31, 2022, in thousands: Right-of-use Leases Finance Leases 2023 $ 1,316 $ 760 2024 621 675 2025 65 415 2026 — 223 2027 — 78 Thereafter — — Total lease payments 2,002 2,151 Less: imputed interest 163 261 Total lease obligations $ 1,839 $ 1,890 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Non-vested Restricted Share Awards | A summary of the Company's non-vested restricted share awards at December 31, 2022 and changes during the transition period of three months ended December 31, 2021 and the year ended December 31, 2022 is presented in the following table ($ in thousands): Shares Fair Value Non-vested at September 30, 2021 739,913 $ 1,706 Granted 130,111 $ 333 Vested (112,390) $ (230) Forfeited (20,000) $ (41) Non-vested at December 31, 2021 737,634 $ 1,768 Granted 260,391 361 Vested (354,634) (857) Forfeited (111,666) (256) Non-vested at December 31, 2022 531,725 $ 1,016 |
Schedule of Compensation Expense Related to Restricted Stock | Compensation expense related to restricted stock recorded for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 is as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Fiscal year 2020 grant $ 36 $ 37 $ 450 Fiscal year 2021 grant 252 125 556 2021 Transition period grant 87 119 — Fiscal year 2022 grant 195 — — Total restricted stock compensation expense $ 570 $ 281 $ 1,006 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow and Supplemental Disclosures | Supplemental cash flow information related to leases for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 are as follows, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from right-of-use leases $ 1,087 $ 319 $ 1,160 Operating cash flows from finance leases $ 155 $ 37 $ 75 Financing cash flows from finance leases $ 899 $ 155 $ 484 (in thousands) Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Supplemental cash flow information: Cash paid for interest $ 176 $ 59 $ 257 Supplemental noncash investing activities: Assets acquired under financing leases $ 653 $ 272 $ 1,623 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Net loss attributable to common shareholders $ 471 $ (2,029) $ (6,502) Basic weighted average shares 13,484 12,683 12,401 Effect of dilutive securities: Stock options — — — Diluted weighted average shares 13,484 12,683 12,401 Loss per common share: Basic $ 0.03 $ (0.16) $ (0.52) Diluted $ 0.03 $ (0.16) $ (0.52) |
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. December 31, December 31, September 30, 2022 2021 2021 Stock options excluded — 50,000 50,000 Weighted average exercise price of stock options $ 1.28 $ 1.28 Average market price of common stock $ 2.05 $ 2.57 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021 consists of, in thousands: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Current $ 8 $ — $ (53) Deferred — — — Total provision (benefit) for income taxes $ 8 $ — $ (53) |
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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021: Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of U.S. federal tax benefit (3.2) % 1.9 % 5.4 % Return to accrual adjustment — % — % 5.8 % Change in rate (4.1 %) — % — % Permanent differences (14.5) % — % — % Valuation allowance 20.5 % (21.4 %) (32.7 %) Other exclusions (18.0) % (1.5) % 1.3 % Company’s effective tax rate 1.7 % 0.0% 0.8 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences related to deferred taxes at December 31, 2022, 2021, and September 30, 2021 consist of the following, in thousands: December 31, December 31, September 30, 2022 2021 2021 Deferred tax assets: Net operating loss carryforwards $ 6,376 $ 6,382 $ 5,895 Accounts receivable 72 69 69 Inventory 1,071 994 966 Intangibles 2,079 2,320 2,370 Accrued expenses 312 271 334 Stock options — 5 5 Other 64 64 64 Total deferred tax assets 9,974 10,105 9,703 Deferred tax liabilities: Financial basis in excess of tax basis of certain assets 803 855 815 Other 120 294 365 Total deferred tax liabilities 923 1,149 1180 Less valuation allowance 9,051 8,956 8,523 Net deferred taxes $ — $ — $ — |
Schedule 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 December 31, 2022 — Transition period ended December 31, 2021 2,100 No expiry Year ended September 30, 2021 9,500 No expiry Year ended September 30, 2020 9,270 No expiry Year ended September 30, 2019 1,495 No expiry |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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. (in thousands) Year Ended Three Months Ended Year Ended December 31, December 31, September 30, 2022 2021 2021 Sales Wireless $ 30,813 $ 7,119 $ 20,708 Telco 66,220 11,571 41,553 Intersegment (5) — (101) Total sales $ 97,028 $ 18,690 $ 62,160 Gross profit Wireless $ 8,611 $ 1,507 $ 6,277 Telco 19,178 3,124 9,850 Total gross profit $ 27,789 $ 4,631 $ 16,127 Income (loss) from operations Wireless $ (4,792) $ (2,326) $ (6,864) Telco 6,269 424 (2,433) Total operating income ( loss) $ 1,477 $ (1,902) $ (9,297) (in thousands) December 31, December 31, September 30, 2022 2021 2021 Segment assets Wireless $ 9,790 $ 7,640 $ 7,867 Telco 13,217 14,545 14,472 Non-allocated 4,211 3,241 4,973 Total assets $ 27,218 $ 25,426 $ 27,312 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 265 | $ 915 | $ 910 |
Advertising expense | 100 | $ 300 | 400 |
Pension Plan | |||
Property, Plant and Equipment [Line Items] | |||
Minimum year of service | 60 days | ||
Recognized costs | $ 34 | $ 100 | $ 200 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life (in years) | 10 years | ||
Telco | Customer One | Trade Accounts Receivable | Customer Concentration Risk | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 24% | ||
Telco | Customer Two | Trade Accounts Receivable | Customer Concentration Risk | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 11% | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Office Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Wireless Service Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 7 years | ||
Warehouse and Service Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 10 years |
Revenue Recognition- Additional
Revenue Recognition- Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 18,690 | $ 97,028 | $ 62,160 |
Contract assets | 2,219 | 5,005 | 2,488 |
Contract liabilities | 207 | 148 | 168 |
Contract liabilities, revenue recognized | 200 | 200 | |
Non-US | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 1,100 | $ 6,200 | $ 4,700 |
Revenue Benchmark | Customer Concentration Risk | Two Customers | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 37% | 28% | 28% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total sales | $ 18,690 | $ 97,028 | $ 62,160 |
Operating Segments | Telco | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 11,571 | 66,220 | 41,553 |
Intersegment | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | (5) | (101) |
Wireless services sales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 7,119 | 30,813 | 20,708 |
Equipment sales: | Operating Segments | Telco | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 11,424 | 66,016 | 40,663 |
Equipment sales: | Intersegment | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | (5) | (101) |
Telco repair sales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 11 | 12 | 27 |
Telco recycle sales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | $ 136 | $ 192 | $ 863 |
Accounts Receivable Agreements
Accounts Receivable Agreements (Details) | 12 Months Ended | |||||
Mar. 17, 2022 USD ($) facility | Dec. 31, 2022 USD ($) facility | Dec. 17, 2023 facility | Dec. 17, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | $ 19,000,000 | ||||
Accounts receivable agreement, reserve of sold receivables, increase period | 120 days | |||||
Number of lines of credit facilities | facility | 4 | |||||
Restricted cash | $ 1,101,000 | $ 581,000 | $ 334,000 | |||
Certain Receivables to Unrelated Third-parties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable agreement, percent of sold receivables advanced, deduction | 1.30% | |||||
Accounts receivable agreement number of facilities | facility | 4 | |||||
Accounts receivable agreement, percent of sold receivables advanced | 90% | |||||
Accounts receivable agreement, reserve of sold receivables (as percent) | 10% | |||||
Accounts receivable agreement, Percentage of sold receivables final | 100% | |||||
Certain Receivables to Unrelated Third-parties | Forecast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable agreement number of facilities | facility | 4 | |||||
Certain Receivables to Unrelated Third-parties | Other Nonoperating Income (Expense) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from collection of finance receivables | 71,600,000 | |||||
Cost of selling receivables | 1,000,000 | |||||
Certain Receivables to Unrelated Third-parties | Customer One | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable maximum credit purchase capacity | $ 1,500,000 | |||||
Accounts receivable sales percentage | 2% | |||||
Certain Receivables to Unrelated Third-parties | Customer Two | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable maximum credit purchase capacity | $ 1,500,000 | |||||
Accounts receivable sales percentage | 1.60% | |||||
Uncollectible Receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Thirty party financial institution reserve | $ (7,000,000) | |||||
Nave | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable maximum credit purchase capacity | $ 13,000,000 | |||||
Triton | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable maximum credit purchase capacity | $ 3,000,000 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Inventory [Line Items] | |||
Provision for excess and obsolete inventories | $ 91 | $ 304 | $ 422 |
Inventory valuation reserves | 3,567 | 3,871 | 3,476 |
Inventory, lower of cost or market reserve | 200 | 100 | |
Telco | |||
Inventory [Line Items] | |||
Provision for excess and obsolete inventories | $ 100 | $ 300 | $ 400 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory [Line Items] | |||
Allowance for excess and obsolete inventory: | $ (3,871) | $ (3,567) | $ (3,476) |
Total inventories, net | 9,563 | 5,653 | 5,922 |
New equipment | |||
Inventory [Line Items] | |||
Inventory, gross | 2,286 | 1,396 | 1,295 |
Refurbished and used equipment | |||
Inventory [Line Items] | |||
Inventory, gross | $ 11,148 | $ 7,824 | $ 8,103 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 0.1 | $ 0.3 | $ 0.3 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 5,277 | $ 5,277 | $ 5,277 |
Accumulated Amortization | (4,170) | (4,250) | (4,568) |
Net | 1,107 | 1,027 | 709 |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross | 3,155 | 3,155 | 3,155 |
Accumulated Amortization | (2,780) | (2,807) | (2,913) |
Net | $ 375 | $ 348 | $ 242 |
Useful life (in years) | 10 years | 10 years | 10 years |
Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 2,122 | $ 2,122 | $ 2,122 |
Accumulated Amortization | (1,390) | (1,443) | (1,655) |
Net | $ 732 | $ 679 | $ 467 |
Useful life (in years) | 10 years | 10 years | 10 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2023 | $ 319 | ||
2024 | 142 | ||
2025 | 107 | ||
2026 | 90 | ||
2027 | 25 | ||
Thereafter | 26 | ||
Net | $ 709 | $ 1,027 | $ 1,107 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Payables and Accruals [Abstract] | |||
Employee costs | $ 915 | $ 945 | $ 1,255 |
Taxes other than income tax | 54 | 3 | (13) |
Other, net | 476 | 236 | 339 |
Total accrued expenses | $ 1,445 | $ 1,184 | $ 1,581 |
Debt (Details)
Debt (Details) - USD ($) | Dec. 28, 2021 | Dec. 31, 2022 | Mar. 17, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 19,000,000 | $ 3,000,000 | ||
Revolving Credit Facility | New Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | |||
Line of credit period decrease | $ 1,000,000 | |||
Debt instrument, interest rate, effective percentage | 0.75% | 3.25% | ||
Bank line of credit | $ 2,100,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 1,540 | $ 2,466 | $ 2,730 |
Operating lease, liability | 1,839 | 3,016 | 3,339 |
Finance lease, right-of-use asset | 2,165 | 2,269 | 2,136 |
Finance lease, liability | $ 1,890 | $ 2,136 | $ 2,011 |
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 | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Lease cost | |||
Right-of-use lease cost | $ 319 | $ 1,087 | $ 1,160 |
Amortization assets under finance leases | 139 | 604 | 412 |
Interest on finance lease liabilities | 37 | 155 | 75 |
Total finance lease cost | $ 176 | $ 759 | $ 487 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow and Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from right-of-use leases | $ 319 | $ 1,087 | $ 1,160 |
Operating cash flows from finance leases | 37 | 155 | 75 |
Financing cash flows from finance leases | $ 155 | $ 899 | $ 484 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Right-of-use leases | |||
Right-of-use lease assets | $ 1,540 | $ 2,466 | $ 2,730 |
Right-of-use lease obligations - current | 1,204 | 1,177 | 1,198 |
Right-of-use lease obligations | 635 | 1,839 | 2,141 |
Total right-of-use lease liabilities | 1,839 | 3,016 | 3,339 |
Finance leases | |||
Property and equipment, gross | 3,409 | 3,115 | 2,843 |
Accumulated depreciation | $ (1,244) | $ (846) | $ (707) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Property and equipment, net | $ 2,165 | $ 2,269 | $ 2,136 |
Financing lease obligations - current | 636 | 652 | 582 |
Financing lease obligations | 1,254 | 1,484 | 1,429 |
Total finance lease liabilities | $ 1,890 | $ 2,136 | $ 2,011 |
Weighted Average Remaining Lease Term | |||
Right-of-use leases | 1 year 7 months 20 days | 2 years 7 months 17 days | 2 years 9 months 10 days |
Finance leases | 3 years 3 months | 3 years 5 months 19 days | 3 years 9 months |
Weighted Average Discount Rate | |||
Right-of-use leases | 5% | 5% | 5% |
Finance leases | 7.77% | 6.76% | 6.72% |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Operating Lease and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Right-of-use Leases | |||
2023 | $ 1,316 | ||
2024 | 621 | ||
2025 | 65 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Total lease payments | 2,002 | ||
Less: imputed interest | 163 | ||
Total lease obligations | 1,839 | $ 3,016 | $ 3,339 |
Finance Leases | |||
2023 | 760 | ||
2024 | 675 | ||
2025 | 415 | ||
2026 | 223 | ||
2027 | 78 | ||
Thereafter | 0 | ||
Total lease payments | 2,151 | ||
Less: imputed interest | 261 | ||
Total lease obligations | $ 1,890 | $ 2,136 | $ 2,011 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding (in shares) | 50,000 | 0 | 50,000 | |
Weighted average exercise price (in dollars per share) | $ 1.28 | $ 1.28 | ||
Intrinsic value | $ 22,000 | $ 54,000 | ||
Stock options exercised (in shares) | 50,000 | |||
Exercised (in dollars per share) | $ 1.28 | |||
Aggregate intrinsic value, exercised | $ 47,000 | |||
Compensation expense | $ 0 | 0 | $ 0 | |
Compensation cost, not yet recognized | $ 400,000 | |||
Recognized over a period (in years) | 2 years 6 months | |||
The 2015 Incentive Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional shareholders authorized (in shares) | 1,000,000 | |||
Common stock, capital shares reserved for future issuance (in shares) | 3,100,415 | |||
Number of shares available for grant (in shares) | 1,072,304 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-vested Restricted Share Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
Shares | ||
Nonvested, beginning balance (in shares) | 739,913 | 737,634 |
Granted (in shares) | 130,111 | 260,391 |
Vested (in shares) | (112,390) | (354,634) |
Forfeited (in shares) | (20,000) | (111,666) |
Nonvested, ending balance (in shares) | 737,634 | 531,725 |
Fair Value | ||
Non - vested, beginning balance | $ 1,706 | $ 1,768 |
Granted | 333 | 361 |
Vested | (230) | (857) |
Forfeited | (41) | (256) |
Non - vested, ending balance | $ 1,768 | $ 1,016 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Compensation Expense Related to Restricted Stock (Details) - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total restricted stock compensation expense | $ 281 | $ 570 | $ 1,006 |
Fiscal year 2020 grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total restricted stock compensation expense | 37 | 36 | 450 |
Fiscal year 2021 grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total restricted stock compensation expense | 125 | 252 | 556 |
2021 Transition period grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total restricted stock compensation expense | 119 | 87 | 0 |
Fiscal year 2022 grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total restricted stock compensation expense | $ 0 | $ 195 | $ 0 |
Equity Distribution Agreement_2
Equity Distribution Agreement and Sale of Common Stock (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | 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 | $ 0.01 | |
Commission rate | 3% | |||
Proceeds from sale of common stock | $ 636,000 | $ 1,627,000 | $ 899,000 | |
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) | 320,787 | 892,181 | ||
Proceeds from issuance of common stock gross | $ 700,000 | $ 1,700,000 | ||
Proceeds from sale of common stock | $ 600,000 | $ 1,600,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Supplemental cash flow information: | |||
Cash paid for interest | $ 59 | $ 176 | $ 257 |
Supplemental noncash investing activities: | |||
Assets acquired under financing leases | $ 272 | $ 653 | $ 1,623 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to common shareholders | $ (2,029) | $ 471 | $ (6,502) |
Basic weighted average shares (in shares) | 12,683,312 | 13,484,271 | 12,401,043 |
Effect of dilutive securities: Stock options (in shares) | 0 | 0 | 0 |
Effect of dilutive securities: Diluted weighted average shares (in shares) | 12,683,312 | 13,484,271 | 12,401,043 |
Loss per common share: | |||
Basic (in dollars per share) | $ (0.16) | $ 0.03 | $ (0.52) |
Diluted (in dollars per share) | $ (0.16) | $ 0.03 | $ (0.52) |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Stock options excluded (in shares) | 50 | 0 | 50 |
Weighted average exercise price of stock options (in dollars per share) | $ 1.28 | $ 1.28 | |
Average market price of common stock (in dollars per share) | $ 2.05 | $ 2.57 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 0 | $ 8 | $ (53) |
Deferred | 0 | 0 | 0 |
Total provision (benefit) for income taxes | $ 0 | $ 8 | $ (53) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
State income taxes, net of U.S. federal tax benefit | 1.90% | (3.20%) | 5.40% |
Return to accrual adjustment | 0% | 0% | 5.80% |
Change in rate | 0% | (4.10%) | 0% |
Permanent differences | 0% | (14.50%) | 0% |
Valuation allowance | (21.40%) | 20.50% | (32.70%) |
Other exclusions | (1.50%) | (18.00%) | 1.30% |
Company’s effective tax rate | (0.00%) | 1.70% | 0.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, valuation allowance | $ 9,051,000 | $ 8,956,000 | $ 8,523,000 |
Unrecognized tax benefits | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 6,376 | $ 6,382 | $ 5,895 |
Accounts receivable | 72 | 69 | 69 |
Inventory | 1,071 | 994 | 966 |
Intangibles | 2,079 | 2,320 | 2,370 |
Accrued expenses | 312 | 271 | 334 |
Stock options | 0 | 5 | 5 |
Other | 64 | 64 | 64 |
Total deferred tax assets | 9,974 | 10,105 | 9,703 |
Deferred tax liabilities: | |||
Financial basis in excess of tax basis of certain assets | 803 | 855 | 815 |
Other | 120 | 294 | 365 |
Total deferred tax liabilities | 923 | 1,149 | 1,180 |
Less valuation allowance | 9,051 | 8,956 | 8,523 |
Net deferred taxes | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Oper
Income Taxes - Schedule of Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Year ended December 31, 2022 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | $ 0 |
Year ended December 31, 2021 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | 2,100 |
Year ended September 30, 2021 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | 9,500 |
Year ended September 30, 2020 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | 9,270 |
Year ended September 30, 2019 | |
Income Tax Examination [Line Items] | |
Operating loss carryforwards | $ 1,495 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) carrier | Sep. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of U.S. wireless carriers | carrier | 4 | ||
Total sales | $ 18,690 | $ 97,028 | $ 62,160 |
Total gross profit | 4,631 | 27,789 | 16,127 |
Total operating income ( loss) | (1,902) | 1,477 | (9,297) |
Segment assets | 25,426 | 27,218 | 27,312 |
Operating Segments | Wireless | |||
Segment Reporting Information [Line Items] | |||
Total sales | 7,119 | 30,813 | 20,708 |
Total gross profit | 1,507 | 8,611 | 6,277 |
Total operating income ( loss) | (2,326) | (4,792) | (6,864) |
Segment assets | 7,640 | 9,790 | 7,867 |
Operating Segments | Telco | |||
Segment Reporting Information [Line Items] | |||
Total sales | 11,571 | 66,220 | 41,553 |
Total gross profit | 3,124 | 19,178 | 9,850 |
Total operating income ( loss) | 424 | 6,269 | (2,433) |
Segment assets | 14,545 | 13,217 | 14,472 |
Intersegment | |||
Segment Reporting Information [Line Items] | |||
Total sales | 0 | (5) | (101) |
Non-allocated | |||
Segment Reporting Information [Line Items] | |||
Segment assets | $ 3,241 | $ 4,211 | $ 4,973 |