AMCON Distributing (DIT) 10-K 9 Nov 20 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2020	Nov. 06, 2020	Mar. 31, 2020
Document and Entity Information
Document Type	10-K
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	AMCON DISTRIBUTING CO
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
Entity Shell Company	false
Entity Public Float			$ 11,353,860
Entity Common Stock, Shares Outstanding		551,437
Entity Central Index Key	0000928465
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Sep. 30, 2019
Current assets:
Cash	$ 661,195	$ 337,704
Accounts receivable, less allowance for doubtful accounts of $0.9 million at September 2020 and September 2019	34,278,429	24,665,620
Inventories, net	98,971,773	102,343,517
Income taxes receivable		350,378
Prepaid and other current assets	2,091,645	7,148,459
Total current assets	136,003,042	134,845,678
Property and equipment, net	17,497,274	17,655,415
Operating lease right-of-use assets, net	18,936,126
Note receivable	3,500,000
Goodwill	4,436,950	4,436,950
Other intangible assets, net	500,000	500,000
Equity method investment	6,744,095
Other assets	383,786	273,579
Total assets	188,001,273	157,711,622
Current liabilities:
Accounts payable	22,108,299	18,647,572
Accrued expenses	8,306,160	8,577,972
Accrued wages, salaries and bonuses	4,761,020	3,828,847
Income taxes payable	567,408
Current operating lease liabilities	5,607,098
Current maturities of long-term debt	516,850	532,747
Total current liabilities	41,866,835	31,587,138
Credit facility	61,971,682	60,376,714
Deferred income tax liability, net	1,806,575	1,823,373
Long-term operating lease liabilities	14,028,606
Long-term debt, less current maturities	2,608,794	3,125,644
Other long-term liabilities	927,241	42,011
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized
Common stock, $.01 par value, 3,000,000 shares authorized, 537,715 shares outstanding at September 2020 and 552,614 shares outstanding at September 2019	8,697	8,561
Additional paid-in capital	24,282,058	23,165,639
Retained earnings	71,362,334	66,414,397
Treasury stock at cost	(30,861,549)	(28,831,855)
Total shareholders' equity	64,791,540	60,756,742
Total liabilities and shareholders' equity	$ 188,001,273	$ 157,711,622

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 0.9	$ 0.9
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares outstanding (in shares)	537,715	552,614

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Sales (including excise taxes of $393.3 million and $370.2 million, respectively)	$ 1,521,278,763	$ 1,392,388,157
Cost of sales	1,433,544,831	1,308,364,726
Gross profit	87,733,932	84,023,431
Selling, general and administrative expenses	75,051,227	72,182,883
Depreciation and amortization	3,116,449	2,617,591
Impairment charges	485,270	2,873,269
Total operating expenses	78,652,946	77,673,743
Operating income	9,080,986	6,349,688
Other expense (income):
Interest expense	1,693,251	1,598,864
Other (income), net	(114,276)	(61,119)
Total other expenses (income)	1,578,975	1,537,745
Income from operations before income taxes	7,502,011	4,811,943
Income tax expense	2,143,000	1,609,000
Net income (loss) attributable to AMCON, net of tax (1)	183,579
Net income available to common shareholders	$ 5,542,590	$ 3,202,943
Basic earnings per share available to common shareholders (in dollars per share)	$ 9.88	$ 5.36
Diluted earnings per share available to common shareholders (in dollars per share)	$ 9.76	$ 5.25
Basic weighted average shares outstanding (in shares)	561,166	597,961
Diluted weighted average shares outstanding (in shares)	567,961	609,836
Dividends declared and paid per common share (in dollars per share)	$ 1	$ 1

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Sales, excise taxes	$ 393.3	$ 370.2

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($)	Common Stock	Treasury Stock	Additional Paid in Capital	Retained Earnings	Total
Balance at Sep. 30, 2018	$ 8,441	$ (21,324,752)	$ 22,069,098	$ 63,848,030	$ 64,600,817
Balance (in shares) at Sep. 30, 2018	844,089	(228,312)
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(636,576)	(636,576)
Compensation expense and issuance of stock in connection with equity-based awards	$ 120		1,096,541		1,096,661
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	11,950
Repurchase of common stock		$ (7,507,103)			(7,507,103)
Repurchase of common stock (in shares)		(75,113)
Net income				3,202,943	3,202,943
Balance at Sep. 30, 2019	$ 8,561	$ (28,831,855)	23,165,639	66,414,397	$ 60,756,742
Balance (in shares) at Sep. 30, 2019	856,039	(303,425)			552,614
Increase (Decrease) in Stockholders' Equity
Dividends on common stock				(594,653)	$ (594,653)
Compensation expense and issuance of stock in connection with equity-based awards	$ 136		1,116,419		1,116,555
Compensation expense and issuance of stock in connection with equity-based awards (in shares)	13,828
Repurchase of common stock		$ (2,029,694)			(2,029,694)
Repurchase of common stock (in shares)		(28,727)
Net income				5,542,590	5,542,590
Balance at Sep. 30, 2020	$ 8,697	$ (30,861,549)	$ 24,282,058	$ 71,362,334	$ 64,791,540
Balance (in shares) at Sep. 30, 2020	869,867	(332,152)			537,715

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Dividends on common stock	$ 1	$ 1

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,542,590	$ 3,202,943
Adjustments to reconcile net income from operations to net cash flows from (used in) operating activities:
Depreciation	3,116,449	2,575,924
Amortization		41,667
Equity method investment earnings, net of tax	(183,579)
Impairment charges	485,270	2,873,269
Loss (gain) on sales of property and equipment	105,039	(13,775)
Equity-based compensation	1,085,287	1,299,792
Deferred income taxes	(16,798)	40,572
Provision for losses on doubtful accounts	(21,000)	21,000
Inventory allowance	(322,240)	560,610
Changes in assets and liabilities:
Accounts receivable	(9,591,809)	6,742,225
Inventories	3,693,984	(24,034,512)
Prepaid and other current assets	4,794,469	(2,207,684)
Other assets	(110,207)	28,214
Accounts payable	3,529,980	(2,247,262)
Accrued expenses and accrued wages, salaries and bonuses	1,353,113	(262,330)
Other long-term liabilities	885,230	3,956
Income taxes payable and receivable	857,270	(78,266)
Net cash flows from (used in) operating activities	15,203,048	(11,453,657)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(3,356,573)	(4,438,280)
Proceeds from sales of property and equipment	43,600	57,200
Investment in equity method investee	(6,500,000)
Issuance of note receivable	(3,500,000)
Net cash flows from (used in) investing activities	(13,312,973)	(4,381,080)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility	1,515,476,055	1,427,544,804
Repayments under revolving credit facility	(1,513,881,087)	(1,402,596,687)
Principal payments on long-term debt	(532,747)	(1,096,306)
Proceeds from exercise of stock options	25,750
Repurchase of common stock	(2,029,694)	(7,507,103)
Dividends on common stock	(594,653)	(636,576)
Settlement and withholdings of equity-based awards	(30,208)	(56,335)
Net cash flows from (used in) financing activities	(1,566,584)	15,651,797
Net change in cash	323,491	(182,940)
Cash, beginning of period	337,704	520,644
Cash, end of period	661,195	337,704
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	1,743,098	1,561,531
Cash paid during the period for income taxes	1,302,528	1,646,694
Supplemental disclosure of non-cash information:
Equipment acquisitions classified in accounts payable		69,253
Issuance of common stock in connection with the vesting and exercise of equity-based awards	$ 990,653	$ 1,005,792

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (a) Company Operations: AMCON Distributing Company and Subsidiaries (“AMCON” and “the Company”) serves customers in 26 states and is primarily engaged in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States. AMCON’s wholesale distribution business includes six distribution centers that sell approximately 17,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products and institutional foodservice products. The Company distributes products primarily to retailers such as convenience stores, discount and general merchandise stores, grocery stores, drug stores, and gas stations. In addition, the Company services institutional customers, including restaurants and bars, schools, sports complexes, as well as other wholesalers. AMCON, through its Healthy Edge Inc. subsidiary, operates twenty-one retail health food stores as Chamberlin’s Natural Foods (“Chamberlin’s”), Akin’s Natural Foods (“Akin’s”), and Earth Origins Market (“EOM”). These stores carry natural supplements, organic and natural groceries, health and beauty care products, and other food items. The Company’s operations are subject to a number of factors which are beyond the control of management, such as changes in manufacturers’ cigarette pricing, state excise tax increases, or the opening of competing retail stores in close proximity to the Company’s retail stores. While the Company sells a diversified product line, it remains dependent upon the sale of cigarettes which accounted for approximately 69% of the Company’s consolidated revenue during both fiscal 2020 and fiscal 2019, and 17% of the Company’s consolidated gross profit during both fiscal 2020 and fiscal 2019. (b) Accounting Period: The Company’s fiscal year ends on September 30 and the fiscal years ended September 30, 2020 and September 30, 2019 have been included herein. (c) Principles of Consolidation and Basis of Presentation: The Consolidated Financial Statements include the accounts of AMCON and its wholly‑owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. (d) Cash and Accounts Payable: AMCON utilizes a cash management system under which an overdraft is the normal book balance in the primary disbursing accounts. Overdrafts included in accounts payable at fiscal 2020 and fiscal 2019 totaled approximately $1.3 million and $1.1 million, respectively, and reflect checks drawn on the disbursing accounts that have been issued but have not yet cleared through the banking system. The Company’s policy has been to fund these outstanding checks as they clear with borrowings under its revolving credit facility (see Note 8). These outstanding checks (book overdrafts) are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. (e) Accounts Receivable: Accounts receivable consist primarily of amounts due to the Company from its normal business activities, including trade receivables from customers and other receivables primarily related to various rebate and promotional incentives with the Company’s suppliers. An allowance for doubtful accounts is maintained to reflect the expected uncollectibility of accounts receivable based on past collection history, evaluation of economic conditions as they may impact our customers, and specific risks identified in the portfolio. The Company determines the past due status of trade receivables based on our terms with each customer. Account balances are charged off against the allowance for doubtful accounts when collection efforts have been exhausted and the account receivable is deemed worthless. Any subsequent recoveries of charged off account balances are recorded as income in the period received. As of September 2020 and September 2019, receivables from transactions with customers, less allowance for doubtful accounts were $33.3 million and $23.7 million, respectively. (f) Inventories: At September 2020 and September 2019, inventories in our wholesale segment consisted of finished goods and are stated at the lower of cost or net realizable value determined on a FIFO basis. Inventories in our retail segment consisted of finished goods and are stated at the lower of cost or market using the retail method. The wholesale distribution and retail health food segment inventories consist of finished products purchased in bulk quantities to be redistributed to the Company’s customers or sold at retail. Finished goods included total reserves of approximately $0.7 million and $1.0 million at September 2020 and September 2019, respectively. These reserves include the Company’s obsolescence allowance, which reflects estimated unsaleable or non‑refundable inventory based upon an evaluation of slow moving and discontinued products. (g) Prepaid Expenses and Other Current Assets: A summary of prepaid expenses and other current assets is as follows (in millions): September 2020 September 2019 Prepaid expenses $ 1.6 $ 1.8 Prepaid inventory 0.5 5.3 $ 2.1 $ 7.1 Prepaid inventory represents inventory in-transit that has been paid for but not received. (h) Property and Equipment: Property and equipment are stated at cost less accumulated depreciation or amortization. Major renewals and improvements are capitalized and charged to expense over their useful lives through depreciation or amortization charges. Repairs and maintenance are charged to expense in the period incurred. The straight-line method of depreciation is used to depreciate assets over the estimated useful lives as follows: Years Buildings and improvements - 40 Warehouse equipment - 15 Furniture, fixtures and leasehold improvements - 12 Vehicles - 5 Costs and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and the resulting gains or losses are reported as a component of operating income. The Company reviews property and equipment for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the asset group are estimated over the asset’s useful life of the primary asset and based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the asset group may not be recoverable, the potential impairment is determined based on the amount by which the carrying value of the asset group exceeds the fair value of the asset group. The Company recorded impairment charges of approximately $0.5 million during fiscal 2020 related to a non-performing store in our retail reporting unit, of which $0.2 million was related to fixed assets. There was no impairment of any property and equipment during fiscal 2019. (i) Goodwill and Intangible Assets: Goodwill consists of the excess purchase price paid in business combinations over the fair value of assets acquired. Intangible assets consist of trademarks, tradenames, and customer relationships acquired as part of acquisitions. Goodwill, trademarks, and tradenames are considered to have indefinite lives. Goodwill and intangible assets having indefinite useful lives are not amortized into the results of operations, but instead are reviewed annually or more frequently if events or changes in circumstances indicate that the assets might be impaired, to assess whether their fair value exceeds their carrying value. The Company performs its annual goodwill and intangible asset impairment assessment during the fourth fiscal quarter of each year. When evaluating the potential impairment of non-amortizable indefinite lived assets and goodwill, the Company first assesses a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, market prices, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company’s reporting units. If after completing this assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative evaluation is performed using the income approach (discounted cash flow method). A discounted cash flow methodology requires the estimation of a wide range of factors including but not limited to: (i) forecasting future earnings and cash flows (ii) determining the discount rate applicable to the earnings stream being discounted, and (iii) computing a terminal value at some point in the future. These estimations require significant judgment and include making assumptions such as sales growth rates including the addition of new retail stores, future store profitability, planned capital expenditures, our ability to control costs, the successful implementation of initiatives designed to enhance sales and improve inventory management, gross profit estimates, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. For goodwill impairment testing, the Company utilizes the guidance in ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” whereby a reporting unit’s carrying value is compared to its fair value and impairment charges are recognized for an amount by which a reporting unit’s carrying amount exceeds its fair value. The Company’s identifiable intangible assets with finite lives are amortized over their estimated useful lives and are assessed for impairment whenever events or circumstances change which may indicate that the carrying amount of the assets may not be recoverable. Identifiable intangible assets which are subject to amortization are evaluated for impairment using a process similar to that used in evaluating the elements of property and equipment. If impaired, the related assets are written down to their estimated fair value. The Company’s retail reporting unit recorded intangible asset impairment charges of approximately $2.9 million during fiscal 2019 (See Note 6). These impairment charges arose from a range of considerations including, but not limited to, heightened competition in the industry, retail sector market conditions, and earning shortfalls which impacted the Company’s projections of future cash flows to be generated from these assets. (j) Equity Method Investment The Company uses the equity method to account for its investment in an investee if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss (net of income taxes) of the investee is included in consolidated net earnings. Judgment regarding the level of influence over its equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company evaluates its equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing its equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and future prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified. See Note 7 (Equity Method Investment) for further information relating to the Company’s equity method investment. (k) Revenue Recognition: The Company recognizes revenues when the performance obligation is satisfied, which is the point where control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment due to the simultaneous nature of the Company’s customer arrangements (same day creation and fulfillment). After the completion of its performance obligations, the Company has an unconditional right of payment from customers with varying collection and payment terms based on region, credit risk, and other situational factors . Customer receivables are included on the consolidated balance sheets less an allowance for doubtful accounts. The Company has elected the practical expedient permitting it to disregard financing components which may be deemed to be part of its transaction price as its customary payments terms are less than one year. See Footnote 13 “Business Segments” for the disaggregation of net sales for each of our business segments. (l) Insurance: The Company’s workers’ compensation, general liability, and employee‑related health care benefits are provided through high‑deductible or self‑insurance programs. As a result, the Company accrues for its workers’ compensation and general liability based upon a claim reserve analysis. The Company has issued a letter of credit in the amount of $0.5 million to its workers’ compensation insurance carrier as part of its loss control program. The reserve for incurred, but not reported, employee health care benefits is calculated using the Company’s historical claims experience rate, plus specific reserves for large claims. The reserves associated with the exposure to these liabilities are reviewed by management for adequacy at the end of each reporting period. (m) Income Taxes: The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when we do not consider it more likely than not that some portion or all of the deferred tax assets will be realized. (n) Share-Based Compensation: The Company recognizes expense for its share‑based compensation based on the fair value of the awards that are granted. The fair value of stock options are estimated at the date of grant using the Black‑Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock units is based on the period ending closing price of the Company’s common stock. Measured compensation cost is recognized ratably over the vesting period of the related share‑based compensation award and is reflected in our Consolidated Statement of Operations under “selling, general and administrative expenses.” (o) Customer Sales Incentives: The Company provides consideration to customers, such as sales allowances or discounts on a regular basis. In accordance with ASC 606, the Company estimates customer sales incentives due as sales are made and records them as a reduction of net sales. (p) Excise Taxes: Under ASC 606, the Company is primarily responsible for excise taxes levied on cigarette and other tobacco products and presents excise taxes as a component of revenue. (q) Contract Costs: Under ASC 606, the Company expenses as incurred any incremental costs to obtain and fulfill customer contracts as the related amortization period would be one year or less. (r) Per-share Results: Basic earnings or loss per share data are based on the weighted‑average number of common shares outstanding during each period. Diluted earnings or loss per share data are based on the weighted‑average number of common shares outstanding and the effect of all dilutive potential common shares including stock options and conversion features of the Company’s preferred stock issuances. (s) Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. (t) Fair Value Measurements: The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of trade accounts receivable, other receivables, trade accounts payable, accounts payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable and fixed rate debt also approximates fair value. During fiscal 2019, intangible assets with indefinite useful lives were adjusted to fair value, resulting in a pretax, non-cash impairment charge of $2.9 million (see Note 6). (u) Accounting Pronouncements: Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 “Leases (Topic 842)”. Accounting Standards Codification Topic (“ASC”) 842 superseded the lease accounting requirements in “ASC 840 - Leases”. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption during the Company’s first quarter of fiscal 2020, which resulted in recognition of ROU assets of approximately $21.9 million, lease liabilities of $22.2 million, and a decrease of deferred rent recorded under ASC 840 of $0.3 million. The adoption of ASC 842 did not have a material effect on the Company’s consolidated statements of operations or cash flows. The fiscal 2019 comparative period presented in the financial statements continues to be presented under ASC 840. The adoption of ASC 842 did not have a material impact on the Company’s debt-covenant compliance under its revolving credit facility. In accordance with an accounting policy election under ASC 842, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less as these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASC 842 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to account for non-lease components as part of the lease for all asset classes. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for the Company) with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The amendments in this update were effective upon issuance for all entities through December 31, 2022. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Sep. 30, 2020
ACQUISITION
ACQUISITION	2. ACQUISITIONS AND INVESTMENTS: During fiscal 2020, the Company made a $10.0 million investment in Team Sledd LLC (“Team Sledd”) as discussed further in Note 7. During fiscal 2019, the Company acquired the assets (primarily inventory) from a wholesale distributor for approximately $1.1 million. No material intangible assets or liabilities were assumed in connection with this transaction and the Company does not consider this transaction material to the Company’s consolidated financial statements.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	3. EARNINGS PER SHARE: Basic earnings per share available to common shareholders is calculated by dividing net income by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations by the sum of the weighted average common shares outstanding and the weighted average dilutive equity awards. For Fiscal Years 2020 2019 Basic Basic Weighted average common shares outstanding 561,166 597,961 Net income available to common shareholders $ 5,542,590 $ 3,202,943 Net earnings per share available to common shareholders $ 9.88 $ 5.36 For Fiscal Years 2020 2019 Diluted Diluted Weighted average common shares outstanding 561,166 597,961 Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock(1) 6,795 11,875 Weighted average number of shares outstanding 567,961 609,836 Net income available to common shareholders $ 5,542,590 $ 3,202,943 Net earnings per share available to common shareholders $ 9.76 $ 5.25 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Sep. 30, 2020
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET	4. PROPERTY AND EQUIPMENT, NET: Property and equipment at September 2020 and September 2019 consisted of the following: 2020 2019 Land $ 773,068 $ 773,068 Buildings and improvements 12,605,512 12,574,893 Warehouse equipment 15,409,944 15,011,605 Furniture, fixtures and leasehold improvements 13,539,336 13,155,606 Vehicles 3,846,227 3,687,901 Construction in progress 33,149 617,881 46,207,236 45,820,954 Less accumulated depreciation and amortization: (28,709,962) (28,165,539) Owned property and equipment $ 17,497,274 $ 17,655,415

LEASES

LEASES	12 Months Ended
	Sep. 30, 2020
Leases
LEASES	5. LEASES: The Company’s wholesale segment leases certain warehouse facilities, office space, vehicles and office equipment. The Company’s retail segment leases store space in various shopping center complexes. Certain of the warehouse and retail store leases include one or more options to renew or terminate the applicable lease agreement, with the exercise of such options at the Company’s discretion. The Company’s leases do not contain any significant residual value guarantees nor do they impose any significant restrictions or covenants other than those customarily found in similar types of leases. The operating right-of-use (ROU) lease assets and liabilities recorded on the Company’s consolidated balance sheet consist of fixed lease payments. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the lease term. Additionally, certain leases contain variable payments such as vehicle leases with per-mile charges or retail leases with an additional rent payment based on store performance. These variable payments are expensed as incurred. The Company combines lease components and non-lease components for all asset classes for purposes of recognizing lease assets and liabilities. The Company determines its incremental borrowing rates based on information available at the lease commencement date in calculating the present value of lease payments. The Company reviews its ROU lease assets for indicators of impairment in the same manner as its other property and equipment as described in Note 1. The Company recorded impairment charges of approximately $0.5 million during fiscal 2020 related to a non-performing store in our retail reporting unit, of which $0.3 million was related to a ROU asset. Leases consist of the following: Assets Classification September 2020 Operating Operating lease right-of-use assets $ 18,936,126 Liabilities Current: Operating Operating lease liabilities $ 5,607,098 Non-current: Operating Long-term operating lease liabilities 14,028,606 Total lease liabilities $ 19,635,704 The components of lease costs were as follows: Fiscal Year 2020 Operating lease cost $ 6,757,206 Short-term lease cost 261,708 Variable lease cost 350,313 Net lease cost $ 7,369,227 Maturities of lease liabilities as of September 2020 were as follows: Operating Leases 2021 $ 6,279,478 2022 5,309,736 2023 4,032,833 2024 2,841,950 2025 1,795,480 2026 and thereafter 1,050,961 Total lease payments 21,310,438 Less: interest (1,674,734) Present value of lease liabilities $ 19,635,704 Weighted-average remaining lease term and weighted-average discount rate information regarding the Company’s leases were as follows: Lease Term September 2020 Weighted-average remaining lease term (years): Operating Discount Rate Weighted-average discount rate: Operating % Other information regarding the Company’s leases were as follows: For the year ended September 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 6,661,365 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 3,116,737 Future minimum operating lease payments as of September 2019, as reported in the 2019 Form 10-K under ASC 840, were as follows: Operating Fiscal Year Ending Leases 2020 $ 6,468,837 2021 5,418,617 2022 4,299,261 2023 3,216,671 2024 2,456,810 Thereafter 2,387,618 Total minimum lease payments $ 24,247,814

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Sep. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS: Goodwill at September 2020 and September 2019 was as follows: September September 2020 2019 Wholesale Segment $ 4,436,950 $ 4,436,950 Other intangible assets at September 2020 and September 2019 consisted of the following: September September 2020 2019 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000 Goodwill, trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. The Company’s retail reporting unit recorded intangible asset (trademarks and tradenames) impairment charges of approximately $2.9 million during fiscal 2019 when it was determined that the carrying values of these assets exceeded their fair values. These impairment charges arose from a range of considerations including, but not limited to, heightened competition in the industry, retail sector market conditions, and earning shortfalls which impacted the Company’s projections of future cash flows to be generated. These impairment charges were recorded in the Company’s consolidated statement of operations as a component of operating income. Goodwill recorded on the Company’s consolidated balance sheet represents amounts allocated to its wholesale reporting unit which totaled $4.4 million at both September 2020 and September 2019. The Company determined that the estimated fair value of its wholesale reporting unit exceeded its carrying value at both September 2020 and September 2019.

EQUITY METHOD INVESTMENT

EQUITY METHOD INVESTMENT	12 Months Ended
	Sep. 30, 2020
EQUITY METHOD INVESTMENT
EQUITY METHOD INVESTMENT	7. EQUITY METHOD INVESTMENT: In April 2020, the Company completed a transaction with Chas. M. Sledd Company (“Sledd”), a West Virginia wholesale distributor serving the convenience store industry, to jointly own and operate Team Sledd, a limited liability company formed for the purpose of owning and operating Sledd’s wholesale distribution business. In conjunction with the transaction, Sledd contributed substantially all of its operating assets and stated liabilities to Team Sledd, while the Company contributed $10.0 million in cash, of which $6.5 million was structured as equity and $3.5 million was structured as a secured loan to Team Sledd which is subordinate to the liens of Team Sledd's existing secured lenders. The transaction was primarily funded from the Company’s revolving line of credit and profits from operations. At September 2020, AMCON owned approximately 44% of Team Sledd’s outstanding equity, with a carrying value of $6.7 million. During fiscal 2020, the Company recognized $0.2 million in equity in earnings (net of income taxes) from its investment in Team Sledd. The Company’s secured loan to Team Sledd had a carrying value of $3.5 million as of September 2020. Team Sledd’s summarized financial data for the six months ended September 2020 was as follows: For the six months ended September 2020 Sales $ 350,685,407 Gross profit $ 14,218,204 Net income (loss) before income taxes $ 551,280 Net income (loss) attributable to AMCON, net of tax $ 183,579

DEBT

DEBT	12 Months Ended
	Sep. 30, 2020
DEBT
DEBT	8. DEBT: The Company primarily finances its operations through a credit facility agreement (the “Facility”) and long-term debt agreements with banks. The Facility is provided through Bank of America acting as the senior agent and with BMO Harris Bank (“BMO”) participating in a loan syndication. CREDIT FACILITY 2020 2019 Revolving portion of the Facility, interest payable at 2.41% at September 2020 $ 61,971,682 $ 60,376,714 The Facility included the following significant terms at September 2020: · A March 2025 maturity date without a penalty for prepayment. · $110.0 million revolving credit limit. · Loan accordion allowing the Company to increase the size of the credit facility agreement by $25.0 million. · A provision providing an additional $10.0 million of credit advances for certain inventory purchases. · Evergreen renewal clause automatically renewing the agreement for one year unless either the borrower or lender provides written notice terminating the agreement at least 90 days prior to the end of any original or renewal term of the agreement. · The Facility bears interest at either the bank’s prime rate, or at LIBOR (or equivalent successor rate index) plus 125 ‑ 150 basis points depending on certain credit facility utilization measures, at the election of the Company. For these purposes, in no event shall LIBOR be less than 100 basis points. · Lending limits subject to accounts receivable and inventory limitations. · An unused commitment fee equal to one‑quarter of one percent ( 1 / 4 %) per annum on the difference between the maximum loan limit and average monthly borrowings. · Secured by collateral including all of the Company’s equipment, intangibles, inventories, and accounts receivable. · A financial covenant requiring a fixed charge coverage ratio of at least 1.0 as measured by the previous twelve month period then ended only if excess availability falls below 10% of the maximum loan limit as defined in the credit agreement. The Company’s fixed charge coverage ratio was over 1.0 for the trailing twelve months. · Provides that the Company may use up to $3.5 million annually, on a collective basis, for the payment of dividends on its common stock, or other distributions or investments, provided the Company is not in default before or after such dividends, distributions or investments. Additionally, the Company may pay dividends on its common stock, or make other distributions or investments in excess of $3.5 million annually provided the Company meets certain excess availability and proforma fixed charge coverage ratios and is not in default before or after such dividends, distributions or investments. During fiscal 2020, total borrowings and payments on the Facility were approximately $1.5 billion and $1.5 billion, respectively, resulting in net advances of $1.6 million. Total borrowings and repayment on the Facility during fiscal 2019 were approximately $1.4 billion and $1.4 billion, respectively, resulting in net advances of $24.9 million. The amount available for use on the Facility at any given time is subject to a number of factors including eligible accounts receivable and inventory balances that fluctuate day‑to‑day. Based on our collateral and loan limits as defined in the Facility agreement, the credit limit of the Facility at September 2020 was $109.6 million, of which $62.0 million was outstanding, leaving $47.6 million available. LONG-TERM DEBT In addition to the Facility, the Company also had the following long‑term obligations at fiscal 2020 and fiscal 2019. 2020 2019 Note payable to a bank (“Real Estate Loan”), interest payable at a fixed rate of 2.99% with monthly installments of principal and interest of $38,344 through August 2021 with remaining principal due October 2021, collateralized by three distribution facilities $ 1,866,231 $ 2,263,040 Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023 1,259,413 1,395,351 3,125,644 3,658,391 Less current maturities (516,850) (532,747) $ 2,608,794 $ 3,125,644 The aggregate minimum principal maturities of the long‑term debt for each of the next five fiscal years are as follows: Fiscal Year Ending 2021 $ 516,850 2022 1,640,205 2023 968,589 2024 — 2025 — $ 3,125,644 Market rate risk for fixed rate debt is estimated as the potential increase in fair value of debt obligations resulting from decreases in interest rates. Based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities, the fair value of the Company’s long‑term debt approximated its carrying value at September 2020. Cross Default and Co‑Terminus Provisions The Company owns real estate in Bismarck, ND, Quincy, IL, and Rapid City, SD, which is financed through a single term Real Estate Loan with BMO which is also a participant lender on the Company’s revolving line of credit. The Real Estate Loan contains cross default provisions which cause the loan to be considered in default if the loans where BMO is a lender, including the revolving credit facility, is in default. There were no such cross defaults at September 2020. In addition, the Real Estate Loan contains co‑terminus provisions which require all loans with BMO to be paid in full if any of the loans are paid in full prior to the end of their specified terms. Other The Company has issued a letter of credit for $0.5 million to its workers’ compensation insurance carrier as part of its self‑insured loss control program .

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2020
INCOME TAXES
INCOME TAXES	9. INCOME TAXES: The components of income tax expense from operations for fiscal 2020 and fiscal 2019 consisted of the following: 2020 2019 Current: Federal $ 1,690,956 $ 1,139,927 Current: State 468,842 428,501 2,159,798 1,568,428 Deferred: Federal (14,270) 34,466 Deferred: State (2,528) 6,106 (16,798) 40,572 Income tax expense $ 2,143,000 $ 1,609,000 The difference between the Company’s income tax expense in the accompanying consolidated financial statements and that which would be calculated using the statutory income tax rate of 21% for both fiscal 2020 and fiscal 2019 on income before income taxes is as follows: 2020 2019 Tax at statutory rate $ 1,575,422 $ 1,010,517 Nondeductible business expenses 230,571 226,670 State income taxes, net of federal tax benefit 376,262 332,931 Other (39,255) 38,882 $ 2,143,000 $ 1,609,000 Temporary differences between the financial statement carrying balances and tax basis of assets and liabilities giving rise to net deferred tax assets (liabilities) at September 2020 and September 2019 relates to the following: 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 210,734 $ 215,925 Accrued expenses 1,243,132 796,542 Inventory 365,417 452,192 Intangible assets 15,803 71,849 Other — 23,237 Net operating loss carry forwards - federal 35,545 63,983 Net operating loss carry forwards - state 716,241 723,306 Total gross deferred tax assets 2,586,872 2,347,034 Less: Valuation allowance (716,241) (723,306) Total net deferred tax assets 1,870,631 1,623,728 Deferred tax liabilities: Trade discounts 318,070 375,172 Property and equipment 2,437,337 2,150,130 Goodwill 921,799 921,799 Total deferred tax liabilities 3,677,206 3,447,101 Total net deferred income tax liability $ 1,806,575 $ 1,823,373 At September 2020, the Company had noncurrent deferred tax assets related to federal net operating loss carryforwards in an amount less than $0.1 million. These federal net operating loss carryforwards totaled approximately $0.2 million and were primarily attributable to the Company’s fiscal 2002 purchase of Hawaiian Natural Water Company, Inc. (“HNWC”), a wholly owned subsidiary of the Company. The utilization of HNWC’s net operating losses is limited by Internal Revenue Code Section 382 to approximately $0.1 million per year through 2022. The Company had a valuation allowance of approximately $0.7 million at both September 2020 and September 2019, against certain state net operating losses, which more likely than not will not be utilized. The Company had no material unrecognized tax benefits, interest, or penalties during fiscal 2020 or fiscal 2019, and the Company does not anticipate any such items during the next twelve months. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Operations. The Company files income tax returns in the U.S. and various states and the tax years 2017 and forward remain open under U.S. and state statutes. During fiscal 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act is an emergency economic stimulus package in response to the coronavirus outbreak which, among other things, contains numerous income tax provisions. The Company evaluated the impact of the legislation and determined that while there was an impact on the timing of certain future tax payments, there is no material impact on the Company’s consolidated financial statements or related disclosures.

PROFIT SHARING PLAN

PROFIT SHARING PLAN	12 Months Ended
	Sep. 30, 2020
PROFIT SHARING PLAN
PROFIT SHARING PLAN	10 . PROFIT SHARING PLAN: The Company sponsors a profit sharing plan (i.e. a section 401(k) plan) covering substantially all employees. The plan allows employees to make voluntary contributions up to 100% of their compensation, subject to Internal Revenue Service limits. The Company matches 100% of the first 2% contributed and 50% of the next 4% contributed for a maximum match of 4% of employee compensation. The Company made matching contributions to the profit sharing plan of approximately $0.9 million and $0.8 million (net of employee forfeitures) in fiscal 2020 and fiscal 2019, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES: Liability Insurance The Company carries property, general liability, vehicle liability, directors’ and officers’ liability and workers’ compensation insurance. Additionally, the Company carries an umbrella liability policy to provide excess coverage over the underlying limits of the aforementioned primary policies. The Company’s insurance programs for workers’ compensation, general liability, and employee related health care benefits are provided through high deductible or self‑insured programs. Claims in excess of self‑insurance levels are fully insured subject to policy limits. Accruals are based on historical claims experience, actual claims filed, and estimates of claims incurred but not reported. The Company’s liabilities for unpaid and incurred, but not reported claims, for workers’ compensation, general liability, and health insurance was $1.5 million at both September 2020 and September 2019. These amounts are included in accrued expenses in the accompanying Consolidated Balance Sheets. While the ultimate amount of claims incurred is dependent on future developments, in the Company’s opinion, recorded reserves are adequate to cover the future payment of claims previously incurred. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to claims estimates previously recorded, resulting from actual claim payments, are reflected in operations in the periods in which such adjustments are known. A summary of the activity in the Company’s self‑insured liabilities reserve is set forth below (in millions): 2020 2019 Beginning balance $ 1.5 $ 1.6 Charged to expense 6.6 5.4 Payments (6.6) (5.5) Ending balance $ 1.5 $ 1.5

EQUITY-BASED INCENTIVE AWARDS

EQUITY-BASED INCENTIVE AWARDS	12 Months Ended
	Sep. 30, 2020
EQUITY-BASED INCENTIVE AWARDS
EQUITY-BASED INCENTIVE AWARDS	12. EQUITY-BASED INCENTIVE AWARDS: Omnibus Plans The Company has two equity-based incentive plans, the 2014 Omnibus Incentive Plan and 2018 Omnibus Incentive Plan (collectively “the Omnibus Plans”), which provide for equity incentives to employees. Each Omnibus Plan was designed with the intent of encouraging employees to acquire a vested interest in the growth and performance of the Company. The Omnibus Plans together permit the issuance of up to 135,000 shares of the Company’s common stock in the form of stock options, restricted stock awards, restricted stock units, performance share awards as well as awards such as stock appreciation rights, performance units, performance shares, bonus shares, and dividend share awards payable in the form of common stock or cash. The number of shares issuable under the Omnibus Plans is subject to customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. At September 2020, awards with respect to a total of 101,280 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 33,720 shares may be awarded under the Omnibus Plans. Stock Options No incentive stock options awards were issued during fiscal 2020. The Company issued 5,450 incentive stock option awards to employees during fiscal 2019 pursuant to the provisions of the Company’s 2014 Omnibus Plan. These awards vest in equal installments over a five year service period. The fiscal 2019 incentive stock option awards had an estimated grant date fair value of approximately $0.2 million using the Black‑Scholes option pricing model. The following assumptions were used in connection with the Black‑Scholes option pricing calculation as it relates to the fiscal 2019 incentive stock option awards: Stock Option Pricing Assumptions 2019 Risk-free interest rate 2.55 % Dividend yield 0.8 % Expected volatility % Expected life in years The stock options issued by the Company expire ten years from the grant date and include a five year graded vesting schedule. At September 2020, the Company had 34,350 stock options outstanding with a weighted average exercise price of $80.33 per share and 22,890 stock options which were exercisable with a weighted average exercise price of $72.67 per share. The following is a summary of stock option activity during fiscal 2020: Weighted Number Average of Exercise Shares Price Outstanding at September 2019 36,450 $ 78.67 Granted — — Exercised (2,100) 51.50 Forfeited/Expired — — Outstanding at September 2020 34,350 $ 80.33 Net income before income taxes included compensation expense related to the amortization of the Company’s stock option awards of $0.1 million during both fiscal 2020 and fiscal 2019. At September 2020, total unamortized compensation expense related to stock options was approximately $0.2 million. This unamortized compensation expense is expected to be amortized over approximately the next 29 months. The aggregate intrinsic value of stock options outstanding was less than $0.1 million at September 2020 and $0.2 million at September 2019. The aggregate intrinsic value of stock options exercisable was less than $0.1 million and $0.2 million at September 2020 and September 2019, respectively. The total intrinsic value of stock options exercised was less than $0.1 million in both fiscal 2020 and fiscal 2019. The total fair value of stock options vested was $0.4 million during both fiscal 2020 and fiscal 2019. Restricted Stock Units At September 2020, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans: Restricted Restricted Restricted Restricted Date of award: October 2015 October 2017 October 2018 October 2019 Original number of awards issued: Service period: 36 - 60 months 36 months 36 months 36 months Estimated fair value of award at grant date: $ $ $ $ Non-vested awards outstanding at September 30, 2020: Fair value of non-vested awards at September 30, 2020 of approximately: $ $ $ $ (1) (2) (3) (4) There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met. The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the Company, or a cash settlement based upon the closing price of the Company’s shares, at the time of vesting. Based on these award provisions, the compensation expense recorded in the Company’s Statement of Operations reflects the straight‑line amortized fair value based on the liability method under “ASC 718 – Compensation – Stock Compensation”. Net income before income taxes included compensation expense related to the amortization of the Company’s restricted stock unit awards of approximately $1.0 million and $1.2 million during fiscal 2020 and fiscal 2019, respectively. These amounts were recorded as accrued expenses in the Company’s Consolidated Balance Sheets at both September 2020 and September 2019. The tax benefit related to this compensation expense was approximately $0.2 million and $0.3 million in fiscal 2020 and fiscal 2019, respectively. The total intrinsic value of restricted stock units vested during fiscal 2020 and fiscal 2019 was approximately $0.9 million and $1.1 million, respectively. Total unamortized compensation expense for these awards based on the grant date fair value price was approximately $1.1 million. This unamortized compensation expense, plus any changes in the fair value of the awards through the settlement date, are expected to be amortized over approximately the next 16 months (the weighted‑average period). The following summarizes restricted stock unit activity under the Omnibus Plans during fiscal 2020: Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2019 28,151 $ 76.25 Granted 14,550 69.20 Vested (13,730) 74.02 Expired — — Nonvested restricted stocks units at September 2020 28,971 $ 64.59

BUSINESS SEGMENTS

BUSINESS SEGMENTS	12 Months Ended
	Sep. 30, 2020
BUSINESS SEGMENTS
BUSINESS SEGMENTS	13. BUSINESS SEGMENTS: The Company has two reportable business segments: the wholesale distribution of consumer products and the retail sale of health and natural food products. The retail health food stores’ operations are aggregated to comprise the Retail Segment because such operations have similar economic characteristics, as well as similar characteristics with respect to the nature of products sold, the type and class of customers for the health food products and the methods used to sell the products. Included in the “Other” column are intercompany eliminations, and assets held and charges incurred by our holding company. The segments are evaluated on revenues, gross margins, operating income (loss), and income before taxes. Wholesale Retail Segment Segment Other Consolidated FISCAL YEAR ENDED 2020: External revenues: Cigarettes $ 1,045,661,081 $ — $ — $ 1,045,661,081 Tobacco 227,807,266 — — 227,807,266 Confectionery 82,910,260 — — 82,910,260 Health food — 46,010,692 — 46,010,692 Foodservice & other 118,889,464 — — 118,889,464 Total external revenue 1,475,268,071 46,010,692 — 1,521,278,763 Depreciation 1,791,414 1,325,035 — 3,116,449 Amortization — — — — Operating income (loss) 17,291,306 (1,824,416) (6,385,904) 9,080,986 Interest expense 128,672 — 1,564,579 1,693,251 Income (loss) from operations before taxes 17,207,935 (1,814,850) (7,891,074) 7,502,011 Equity method investment earnings, net of tax — — 183,579 183,579 Total assets 158,292,477 19,124,233 10,584,563 188,001,273 Capital expenditures 2,071,956 1,215,364 — 3,287,320 FISCAL YEAR ENDED 2019: External revenue: Cigarettes $ 955,667,916 $ — $ — $ 955,667,916 Tobacco 197,678,519 — — 197,678,519 Confectionery 83,130,063 — — 83,130,063 Health food — 44,210,688 — 44,210,688 Foodservice & other 111,700,971 — — 111,700,971 Total external revenue 1,348,177,469 44,210,688 — 1,392,388,157 Depreciation 1,569,178 1,006,746 — 2,575,924 Amortization 41,667 — — 41,667 Operating income (loss) 17,280,500 (4,731,717) (6,199,095) 6,349,688 Interest expense 145,980 — 1,452,884 1,598,864 Income (loss) from operations before taxes 17,186,295 (4,722,375) (7,651,977) 4,811,943 Total assets 143,541,723 14,028,232 141,667 157,711,622 Capital expenditures 2,982,273 1,524,007 — 4,506,280

TREASURY STOCK

TREASURY STOCK	12 Months Ended
	Sep. 30, 2020
TREASURY STOCK
TREASURY STOCK	14. TREASURY STOCK: The Company repurchased a total of 28,727 and 75,113 shares of its common stock during fiscal 2020 and fiscal 2019, respectively, for cash totaling approximately $2.0 million and $7.5 million, respectively. All repurchased shares were recorded in treasury stock at cost.

IMPACT OF COVID-19

IMPACT OF COVID-19	12 Months Ended
	Sep. 30, 2020
IMPACT OF COVID-19
IMPACT OF COVID-19	15. IMPACT OF COVID-19: In March 2020, the World Health Organization (WHO) declared the novel strain of coronavirus (COVID-19) a global pandemic. The Company has been designated as a critical infrastructure supplier to the Convenience Store Industry. Both of the Company’s business segments have continued to operate during the pandemic as essential suppliers of goods and services and the Company has taken certain proactive and precautionary steps to ensure the safety of its employees, customers, and suppliers, including frequent cleaning and disinfection of workspaces, property and equipment, instituting social distancing measures, and mandating remote working environments for certain employees. The Company continues to monitor medical, regulatory and consumer developments, and community-based regulations, however, we cannot predict the long-term effects on our business, including our financial position or results of operations, if governmental restrictions such as Stay-At-Home orders or other such directives continue or are reinstated for a prolonged period of time and materially disrupt consumer demand, our supply chain or our ability to procure products or fulfill orders due to disruptions in our warehouse operations.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Sep. 30, 2020
SUBSEQUENT EVENT
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS: On October 27, 2020 the Compensation Committee of the Company’s Board of Directors awarded 20,500 restricted stock units to members of the Company’s executive management team. These awards include a three year graded vesting schedule and can be settled in either cash or stock. At the same time, the Company’s Board of Directors replenished the number of shares authorized for repurchase under AMCON’s existing Common Stock repurchase program. The program provides for periodic repurchases of up to 75,000 shares of AMCON’s common stock in open market or privately negotiated transactions.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Company Operations	(a) Company Operations: AMCON Distributing Company and Subsidiaries (“AMCON” and “the Company”) serves customers in 26 states and is primarily engaged in the wholesale distribution of consumer products in the Central, Rocky Mountain, and Mid-South regions of the United States. AMCON’s wholesale distribution business includes six distribution centers that sell approximately 17,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products and institutional foodservice products. The Company distributes products primarily to retailers such as convenience stores, discount and general merchandise stores, grocery stores, drug stores, and gas stations. In addition, the Company services institutional customers, including restaurants and bars, schools, sports complexes, as well as other wholesalers. AMCON, through its Healthy Edge Inc. subsidiary, operates twenty-one retail health food stores as Chamberlin’s Natural Foods (“Chamberlin’s”), Akin’s Natural Foods (“Akin’s”), and Earth Origins Market (“EOM”). These stores carry natural supplements, organic and natural groceries, health and beauty care products, and other food items. The Company’s operations are subject to a number of factors which are beyond the control of management, such as changes in manufacturers’ cigarette pricing, state excise tax increases, or the opening of competing retail stores in close proximity to the Company’s retail stores. While the Company sells a diversified product line, it remains dependent upon the sale of cigarettes which accounted for approximately 69% of the Company’s consolidated revenue during both fiscal 2020 and fiscal 2019, and 17% of the Company’s consolidated gross profit during both fiscal 2020 and fiscal 2019.
Accounting Period	(b) Accounting Period: The Company’s fiscal year ends on September 30 and the fiscal years ended September 30, 2020 and September 30, 2019 have been included herein.
Principles of Consolidation and Basis of Presentation	(c) Principles of Consolidation and Basis of Presentation: The Consolidated Financial Statements include the accounts of AMCON and its wholly‑owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Cash and Accounts Payable	(d) Cash and Accounts Payable: AMCON utilizes a cash management system under which an overdraft is the normal book balance in the primary disbursing accounts. Overdrafts included in accounts payable at fiscal 2020 and fiscal 2019 totaled approximately $1.3 million and $1.1 million, respectively, and reflect checks drawn on the disbursing accounts that have been issued but have not yet cleared through the banking system. The Company’s policy has been to fund these outstanding checks as they clear with borrowings under its revolving credit facility (see Note 8). These outstanding checks (book overdrafts) are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows.
Accounts Receivable	(e) Accounts Receivable: Accounts receivable consist primarily of amounts due to the Company from its normal business activities, including trade receivables from customers and other receivables primarily related to various rebate and promotional incentives with the Company’s suppliers. An allowance for doubtful accounts is maintained to reflect the expected uncollectibility of accounts receivable based on past collection history, evaluation of economic conditions as they may impact our customers, and specific risks identified in the portfolio. The Company determines the past due status of trade receivables based on our terms with each customer. Account balances are charged off against the allowance for doubtful accounts when collection efforts have been exhausted and the account receivable is deemed worthless. Any subsequent recoveries of charged off account balances are recorded as income in the period received. As of September 2020 and September 2019, receivables from transactions with customers, less allowance for doubtful accounts were $33.3 million and $23.7 million, respectively.
Inventories	(f) Inventories: At September 2020 and September 2019, inventories in our wholesale segment consisted of finished goods and are stated at the lower of cost or net realizable value determined on a FIFO basis. Inventories in our retail segment consisted of finished goods and are stated at the lower of cost or market using the retail method. The wholesale distribution and retail health food segment inventories consist of finished products purchased in bulk quantities to be redistributed to the Company’s customers or sold at retail. Finished goods included total reserves of approximately $0.7 million and $1.0 million at September 2020 and September 2019, respectively. These reserves include the Company’s obsolescence allowance, which reflects estimated unsaleable or non‑refundable inventory based upon an evaluation of slow moving and discontinued products.
Prepaid Expenses and Other Current Assets	(g) Prepaid Expenses and Other Current Assets: A summary of prepaid expenses and other current assets is as follows (in millions): September 2020 September 2019 Prepaid expenses $ 1.6 $ 1.8 Prepaid inventory 0.5 5.3 $ 2.1 $ 7.1 Prepaid inventory represents inventory in-transit that has been paid for but not received.
Property and Equipment	(h) Property and Equipment: Property and equipment are stated at cost less accumulated depreciation or amortization. Major renewals and improvements are capitalized and charged to expense over their useful lives through depreciation or amortization charges. Repairs and maintenance are charged to expense in the period incurred. The straight-line method of depreciation is used to depreciate assets over the estimated useful lives as follows: Years Buildings and improvements - 40 Warehouse equipment - 15 Furniture, fixtures and leasehold improvements - 12 Vehicles - 5 Costs and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and the resulting gains or losses are reported as a component of operating income. The Company reviews property and equipment for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the asset group are estimated over the asset’s useful life of the primary asset and based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the asset group may not be recoverable, the potential impairment is determined based on the amount by which the carrying value of the asset group exceeds the fair value of the asset group. The Company recorded impairment charges of approximately $0.5 million during fiscal 2020 related to a non-performing store in our retail reporting unit, of which $0.2 million was related to fixed assets. There was no impairment of any property and equipment during fiscal 2019.
Goodwill and Intangible Assets	(i) Goodwill and Intangible Assets: Goodwill consists of the excess purchase price paid in business combinations over the fair value of assets acquired. Intangible assets consist of trademarks, tradenames, and customer relationships acquired as part of acquisitions. Goodwill, trademarks, and tradenames are considered to have indefinite lives. Goodwill and intangible assets having indefinite useful lives are not amortized into the results of operations, but instead are reviewed annually or more frequently if events or changes in circumstances indicate that the assets might be impaired, to assess whether their fair value exceeds their carrying value. The Company performs its annual goodwill and intangible asset impairment assessment during the fourth fiscal quarter of each year. When evaluating the potential impairment of non-amortizable indefinite lived assets and goodwill, the Company first assesses a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, market prices, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company’s reporting units. If after completing this assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative evaluation is performed using the income approach (discounted cash flow method). A discounted cash flow methodology requires the estimation of a wide range of factors including but not limited to: (i) forecasting future earnings and cash flows (ii) determining the discount rate applicable to the earnings stream being discounted, and (iii) computing a terminal value at some point in the future. These estimations require significant judgment and include making assumptions such as sales growth rates including the addition of new retail stores, future store profitability, planned capital expenditures, our ability to control costs, the successful implementation of initiatives designed to enhance sales and improve inventory management, gross profit estimates, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. For goodwill impairment testing, the Company utilizes the guidance in ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” whereby a reporting unit’s carrying value is compared to its fair value and impairment charges are recognized for an amount by which a reporting unit’s carrying amount exceeds its fair value. The Company’s identifiable intangible assets with finite lives are amortized over their estimated useful lives and are assessed for impairment whenever events or circumstances change which may indicate that the carrying amount of the assets may not be recoverable. Identifiable intangible assets which are subject to amortization are evaluated for impairment using a process similar to that used in evaluating the elements of property and equipment. If impaired, the related assets are written down to their estimated fair value. The Company’s retail reporting unit recorded intangible asset impairment charges of approximately $2.9 million during fiscal 2019 (See Note 6). These impairment charges arose from a range of considerations including, but not limited to, heightened competition in the industry, retail sector market conditions, and earning shortfalls which impacted the Company’s projections of future cash flows to be generated from these assets.
Equity Method Investment	(j) Equity Method Investment The Company uses the equity method to account for its investment in an investee if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss (net of income taxes) of the investee is included in consolidated net earnings. Judgment regarding the level of influence over its equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company evaluates its equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing its equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and future prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified. See Note 7 (Equity Method Investment) for further information relating to the Company’s equity method investment.
Revenue Recognition	(k) Revenue Recognition: The Company recognizes revenues when the performance obligation is satisfied, which is the point where control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment due to the simultaneous nature of the Company’s customer arrangements (same day creation and fulfillment). After the completion of its performance obligations, the Company has an unconditional right of payment from customers with varying collection and payment terms based on region, credit risk, and other situational factors . Customer receivables are included on the consolidated balance sheets less an allowance for doubtful accounts. The Company has elected the practical expedient permitting it to disregard financing components which may be deemed to be part of its transaction price as its customary payments terms are less than one year. See Footnote 13 “Business Segments” for the disaggregation of net sales for each of our business segments.
Insurance	(l) Insurance: The Company’s workers’ compensation, general liability, and employee‑related health care benefits are provided through high‑deductible or self‑insurance programs. As a result, the Company accrues for its workers’ compensation and general liability based upon a claim reserve analysis. The Company has issued a letter of credit in the amount of $0.5 million to its workers’ compensation insurance carrier as part of its loss control program. The reserve for incurred, but not reported, employee health care benefits is calculated using the Company’s historical claims experience rate, plus specific reserves for large claims. The reserves associated with the exposure to these liabilities are reviewed by management for adequacy at the end of each reporting period.
Income Taxes	(m) Income Taxes: The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when we do not consider it more likely than not that some portion or all of the deferred tax assets will be realized.
Share-Based Compensation	(n) Share-Based Compensation: The Company recognizes expense for its share‑based compensation based on the fair value of the awards that are granted. The fair value of stock options are estimated at the date of grant using the Black‑Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock units is based on the period ending closing price of the Company’s common stock. Measured compensation cost is recognized ratably over the vesting period of the related share‑based compensation award and is reflected in our Consolidated Statement of Operations under “selling, general and administrative expenses.”
Customer Sales Incentives	(o) Customer Sales Incentives: The Company provides consideration to customers, such as sales allowances or discounts on a regular basis. In accordance with ASC 606, the Company estimates customer sales incentives due as sales are made and records them as a reduction of net sales.
Excise Taxes	(p) Excise Taxes: Under ASC 606, the Company is primarily responsible for excise taxes levied on cigarette and other tobacco products and presents excise taxes as a component of revenue.
Contract Costs	(q) Contract Costs: Under ASC 606, the Company expenses as incurred any incremental costs to obtain and fulfill customer contracts as the related amortization period would be one year or less.
Per-share Results	(r) Per-share Results: Basic earnings or loss per share data are based on the weighted‑average number of common shares outstanding during each period. Diluted earnings or loss per share data are based on the weighted‑average number of common shares outstanding and the effect of all dilutive potential common shares including stock options and conversion features of the Company’s preferred stock issuances.
Use of Estimates	(s) Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value Measurements	(t) Fair Value Measurements: The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of trade accounts receivable, other receivables, trade accounts payable, accounts payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable and fixed rate debt also approximates fair value. During fiscal 2019, intangible assets with indefinite useful lives were adjusted to fair value, resulting in a pretax, non-cash impairment charge of $2.9 million (see Note 6).
Accounting Pronouncements	(u) Accounting Pronouncements: Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 “Leases (Topic 842)”. Accounting Standards Codification Topic (“ASC”) 842 superseded the lease accounting requirements in “ASC 840 - Leases”. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption during the Company’s first quarter of fiscal 2020, which resulted in recognition of ROU assets of approximately $21.9 million, lease liabilities of $22.2 million, and a decrease of deferred rent recorded under ASC 840 of $0.3 million. The adoption of ASC 842 did not have a material effect on the Company’s consolidated statements of operations or cash flows. The fiscal 2019 comparative period presented in the financial statements continues to be presented under ASC 840. The adoption of ASC 842 did not have a material impact on the Company’s debt-covenant compliance under its revolving credit facility. In accordance with an accounting policy election under ASC 842, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less as these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASC 842 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to account for non-lease components as part of the lease for all asset classes. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years beginning after December 15, 2022 (fiscal 2024 for the Company) with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The amendments in this update were effective upon issuance for all entities through December 31, 2022. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Summary of prepaid expenses and other current assets	September 2020 September 2019 Prepaid expenses $ 1.6 $ 1.8 Prepaid inventory 0.5 5.3 $ 2.1 $ 7.1
Schedule of estimated useful lives of property and equipment	Years Buildings and improvements - 40 Warehouse equipment - 15 Furniture, fixtures and leasehold improvements - 12 Vehicles - 5

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Sep. 30, 2020
EARNINGS PER SHARE
Schedule of net earnings per share available to common shareholders	For Fiscal Years 2020 2019 Basic Basic Weighted average common shares outstanding 561,166 597,961 Net income available to common shareholders $ 5,542,590 $ 3,202,943 Net earnings per share available to common shareholders $ 9.88 $ 5.36 For Fiscal Years 2020 2019 Diluted Diluted Weighted average common shares outstanding 561,166 597,961 Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock and conversion of preferred stock(1) 6,795 11,875 Weighted average number of shares outstanding 567,961 609,836 Net income available to common shareholders $ 5,542,590 $ 3,202,943 Net earnings per share available to common shareholders $ 9.76 $ 5.25 (1) Diluted earnings per share calculation includes all stock options and restricted stock units deemed to be dilutive.

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Sep. 30, 2020
PROPERTY AND EQUIPMENT, NET
Schedule of property and equipment	2020 2019 Land $ 773,068 $ 773,068 Buildings and improvements 12,605,512 12,574,893 Warehouse equipment 15,409,944 15,011,605 Furniture, fixtures and leasehold improvements 13,539,336 13,155,606 Vehicles 3,846,227 3,687,901 Construction in progress 33,149 617,881 46,207,236 45,820,954 Less accumulated depreciation and amortization: (28,709,962) (28,165,539) Owned property and equipment $ 17,497,274 $ 17,655,415

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Sep. 30, 2020
Leases
Schedule of leases	Assets Classification September 2020 Operating Operating lease right-of-use assets $ 18,936,126 Liabilities Current: Operating Operating lease liabilities $ 5,607,098 Non-current: Operating Long-term operating lease liabilities 14,028,606 Total lease liabilities $ 19,635,704
Schedule of components of lease costs	Fiscal Year 2020 Operating lease cost $ 6,757,206 Short-term lease cost 261,708 Variable lease cost 350,313 Net lease cost $ 7,369,227
Schedule of maturities of lease liabilities	Operating Leases 2021 $ 6,279,478 2022 5,309,736 2023 4,032,833 2024 2,841,950 2025 1,795,480 2026 and thereafter 1,050,961 Total lease payments 21,310,438 Less: interest (1,674,734) Present value of lease liabilities $ 19,635,704
Schedule of weighted-average remaining lease term and weighted-average discount rate	Lease Term September 2020 Weighted-average remaining lease term (years): Operating Discount Rate Weighted-average discount rate: Operating %
Schedule of other information regarding the Company’s leases	For the year ended September 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 6,661,365 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 3,116,737
Schedule of future minimum operating lease payments	Operating Fiscal Year Ending Leases 2020 $ 6,468,837 2021 5,418,617 2022 4,299,261 2023 3,216,671 2024 2,456,810 Thereafter 2,387,618 Total minimum lease payments $ 24,247,814

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Sep. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill	September September 2020 2019 Wholesale Segment $ 4,436,950 $ 4,436,950
Schedule of other intangible assets	September September 2020 2019 Trademarks and tradenames (Retail Segment) $ 500,000 $ 500,000

EQUITY METHOD INVESTMENT (Table

EQUITY METHOD INVESTMENT (Tables)	12 Months Ended
	Sep. 30, 2020
EQUITY METHOD INVESTMENT
Summarized financial data of equity investee	For the six months ended September 2020 Sales $ 350,685,407 Gross profit $ 14,218,204 Net income (loss) before income taxes $ 551,280 Net income (loss) attributable to AMCON, net of tax $ 183,579

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Sep. 30, 2020
DEBT
Schedule of revolving portion of the Facility	2020 2019 Revolving portion of the Facility, interest payable at 2.41% at September 2020 $ 61,971,682 $ 60,376,714
Schedule of long-term obligations	2020 2019 Note payable to a bank (“Real Estate Loan”), interest payable at a fixed rate of 2.99% with monthly installments of principal and interest of $38,344 through August 2021 with remaining principal due October 2021, collateralized by three distribution facilities $ 1,866,231 $ 2,263,040 Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023 1,259,413 1,395,351 3,125,644 3,658,391 Less current maturities (516,850) (532,747) $ 2,608,794 $ 3,125,644
Schedule of minimum principal maturities of the long-term debt	Fiscal Year Ending 2021 $ 516,850 2022 1,640,205 2023 968,589 2024 — 2025 — $ 3,125,644

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2020
INCOME TAXES
Schedule of components of income tax expense from operations	2020 2019 Current: Federal $ 1,690,956 $ 1,139,927 Current: State 468,842 428,501 2,159,798 1,568,428 Deferred: Federal (14,270) 34,466 Deferred: State (2,528) 6,106 (16,798) 40,572 Income tax expense $ 2,143,000 $ 1,609,000
Schedule of difference between the income tax expense and that which would be calculated using the statutory income tax rate	2020 2019 Tax at statutory rate $ 1,575,422 $ 1,010,517 Nondeductible business expenses 230,571 226,670 State income taxes, net of federal tax benefit 376,262 332,931 Other (39,255) 38,882 $ 2,143,000 $ 1,609,000
Schedule of temporary differences between the financial statement carrying balances and tax basis of assets and liabilities giving rise to a net deferred tax asset (liabilities)	2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 210,734 $ 215,925 Accrued expenses 1,243,132 796,542 Inventory 365,417 452,192 Intangible assets 15,803 71,849 Other — 23,237 Net operating loss carry forwards - federal 35,545 63,983 Net operating loss carry forwards - state 716,241 723,306 Total gross deferred tax assets 2,586,872 2,347,034 Less: Valuation allowance (716,241) (723,306) Total net deferred tax assets 1,870,631 1,623,728 Deferred tax liabilities: Trade discounts 318,070 375,172 Property and equipment 2,437,337 2,150,130 Goodwill 921,799 921,799 Total deferred tax liabilities 3,677,206 3,447,101 Total net deferred income tax liability $ 1,806,575 $ 1,823,373

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
Summary of self-insured liabilities reserve	2020 2019 Beginning balance $ 1.5 $ 1.6 Charged to expense 6.6 5.4 Payments (6.6) (5.5) Ending balance $ 1.5 $ 1.5

EQUITY-BASED INCENTIVE AWARDS (

EQUITY-BASED INCENTIVE AWARDS (Tables)	12 Months Ended
	Sep. 30, 2020
EQUITY-BASED INCENTIVE AWARDS
Schedule of assumptions used in connection with the Black-Scholes option pricing calculation	Stock Option Pricing Assumptions 2019 Risk-free interest rate 2.55 % Dividend yield 0.8 % Expected volatility % Expected life in years
Summary of stock options activity	Weighted Number Average of Exercise Shares Price Outstanding at September 2019 36,450 $ 78.67 Granted — — Exercised (2,100) 51.50 Forfeited/Expired — — Outstanding at September 2020 34,350 $ 80.33
Schedule of restricted stock unit awards	Restricted Restricted Restricted Restricted Date of award: October 2015 October 2017 October 2018 October 2019 Original number of awards issued: Service period: 36 - 60 months 36 months 36 months 36 months Estimated fair value of award at grant date: $ $ $ $ Non-vested awards outstanding at September 30, 2020: Fair value of non-vested awards at September 30, 2020 of approximately: $ $ $ $ (1) (2) (3) (4)
Summary of restricted stock unit activity	Number Weighted of Average Shares Fair Value Nonvested restricted stocks units at September 2019 28,151 $ 76.25 Granted 14,550 69.20 Vested (13,730) 74.02 Expired — — Nonvested restricted stocks units at September 2020 28,971 $ 64.59

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	12 Months Ended
	Sep. 30, 2020
BUSINESS SEGMENTS
Schedule of segment information	Wholesale Retail Segment Segment Other Consolidated FISCAL YEAR ENDED 2020: External revenues: Cigarettes $ 1,045,661,081 $ — $ — $ 1,045,661,081 Tobacco 227,807,266 — — 227,807,266 Confectionery 82,910,260 — — 82,910,260 Health food — 46,010,692 — 46,010,692 Foodservice & other 118,889,464 — — 118,889,464 Total external revenue 1,475,268,071 46,010,692 — 1,521,278,763 Depreciation 1,791,414 1,325,035 — 3,116,449 Amortization — — — — Operating income (loss) 17,291,306 (1,824,416) (6,385,904) 9,080,986 Interest expense 128,672 — 1,564,579 1,693,251 Income (loss) from operations before taxes 17,207,935 (1,814,850) (7,891,074) 7,502,011 Equity method investment earnings, net of tax — — 183,579 183,579 Total assets 158,292,477 19,124,233 10,584,563 188,001,273 Capital expenditures 2,071,956 1,215,364 — 3,287,320 FISCAL YEAR ENDED 2019: External revenue: Cigarettes $ 955,667,916 $ — $ — $ 955,667,916 Tobacco 197,678,519 — — 197,678,519 Confectionery 83,130,063 — — 83,130,063 Health food — 44,210,688 — 44,210,688 Foodservice & other 111,700,971 — — 111,700,971 Total external revenue 1,348,177,469 44,210,688 — 1,392,388,157 Depreciation 1,569,178 1,006,746 — 2,575,924 Amortization 41,667 — — 41,667 Operating income (loss) 17,280,500 (4,731,717) (6,199,095) 6,349,688 Interest expense 145,980 — 1,452,884 1,598,864 Income (loss) from operations before taxes 17,186,295 (4,722,375) (7,651,977) 4,811,943 Total assets 143,541,723 14,028,232 141,667 157,711,622 Capital expenditures 2,982,273 1,524,007 — 4,506,280

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Sep. 30, 2020USD ($)storestateitem	Sep. 30, 2019USD ($)
Number of states served | state	26
Number of operating health food retail stores | store	21
Cash and Accounts Payable
Overdrafts	$ 1,300,000	$ 1,100,000
Accounts Receivable
Receivables from transactions with customers, less allowance for doubtful accounts	33,300,000	23,700,000
Inventories
Total reserves on finished goods	700,000	1,000,000
Prepaid Expenses and Other Current Assets
Prepaid expenses	1,600,000	1,800,000
Prepaid inventory	500,000	5,300,000
Prepaid and other current assets	$ 2,091,645	$ 7,148,459
Cigarettes Product | Percentage of consolidated revenue
Concentration of cigarette sales	69.00%	69.00%
Cigarettes Product | Percentage of consolidated gross profit
Concentration of cigarette sales	17.00%	17.00%
Wholesale Segment
Number of distribution centers | item	6
Number of products sold or distributed | item	17,000

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment to Accounting Pronouncements (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Oct. 01, 2019
Property and Equipment
Impairment charges	$ 485,270	$ 2,873,269
Impairment of property and equipment	$ 200,000	0
Goodwill and Intangible Assets:
Intangible asset impairment charges		2,900,000
Revenue Recognition
Practical expedient, financing components	true
Insurance
Letter of credit issued for worker's compensation insurance carrier as part of the entity's self-insured loss control program	$ 500,000
Contract Costs
Practical expedient to expense as incurred any incremental costs to obtain and fulfill customer contracts	true
Fair Value Measurements
Intangible asset impairment charges		2,900,000
Accounting Pronouncements
ROU assets	$ 18,936,126
Lease liabilities	$ 19,635,704
Lease, Practical Expedients, Package [true false]	true
ASU 2016-12 | Adjustment
Accounting Pronouncements
ROU assets			$ 21,900,000
Lease liabilities			22,200,000
Decrease of deferred rent			$ 300,000
Retail Segment
Goodwill and Intangible Assets:
Intangible asset impairment charges		2,900,000
Fair Value Measurements
Intangible asset impairment charges		$ 2,900,000
Buildings and improvements | Minimum
Property and Equipment
Estimated useful lives	5 years
Buildings and improvements | Maximum
Property and Equipment
Estimated useful lives	40 years
Warehouse equipment | Minimum
Property and Equipment
Estimated useful lives	3 years
Warehouse equipment | Maximum
Property and Equipment
Estimated useful lives	15 years
Furniture, fixtures and leasehold improvements | Minimum
Property and Equipment
Estimated useful lives	1 year
Furniture, fixtures and leasehold improvements | Maximum
Property and Equipment
Estimated useful lives	12 years
Vehicles | Minimum
Property and Equipment
Estimated useful lives	2 years
Vehicles | Maximum
Property and Equipment
Estimated useful lives	5 years

ACQUISITION (Details)

ACQUISITION (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Acquisition
Payment to acquire wholesale distributor			$ 1.1
Team Sledd
Acquisition
Investment made	$ 10	$ 10

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
EARNINGS PER SHARE
Weighted average common shares outstanding, Basic	561,166	597,961
Net income available to common shareholders	$ 5,542,590	$ 3,202,943
Net earnings per share available to common shareholders, Basic (in dollars per share)	$ 9.88	$ 5.36
Weighted average of net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock	6,795	11,875
Weighted average number of shares outstanding, Diluted	567,961	609,836
Net income available to common shareholders, diluted	$ 5,542,590	$ 3,202,943
Net earnings per share available to common shareholders, Diluted (in dollars per share)	$ 9.76	$ 5.25

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 46,207,236	$ 45,820,954
Less accumulated depreciation and amortization: Owned property and equipment	(28,709,962)	(28,165,539)
Property and equipment, net	17,497,274	17,655,415
Land
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	773,068	773,068
Buildings and improvements
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	12,605,512	12,574,893
Warehouse equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	15,409,944	15,011,605
Furniture, fixtures and leasehold improvements
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	13,539,336	13,155,606
Vehicles
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	3,846,227	3,687,901
Construction in progress
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 33,149	$ 617,881

LEASES (Details)

LEASES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Lessee, Lease, Description [Line Items]
Options to renew	true
Options to terminate	true
Impairment charges	$ 485,270	$ 2,873,269
Operating lease right-of-use assets, net	18,936,126
Current operating lease liabilities	5,607,098
Non-current operating lease liabilities	14,028,606
Total lease liabilities	19,635,704
Retail Segment
Lessee, Lease, Description [Line Items]
Impairment charges related to a ROU asset	$ 300,000

LEASES - Components of lease co

LEASES - Components of lease costs (Details)	12 Months Ended
	Sep. 30, 2020USD ($)
Leases
Operating lease cost	$ 6,757,206
Short-term lease cost	261,708
Variable lease cost	350,313
Net lease cost	$ 7,369,227

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details)	Sep. 30, 2020USD ($)
Operating Leases
2021	$ 6,279,478
2022	5,309,736
2023	4,032,833
2024	2,841,950
2025	1,795,480
2026 and thereafter	1,050,961
Total lease payments	21,310,438
Less: interest	(1,674,734)
Present value of lease liabilities	$ 19,635,704

LEASES - Weighted-average remai

LEASES - Weighted-average remaining lease term and weighted-average discount rate (Details)	Sep. 30, 2020
Leases
Operating, weighted-average remaining lease term	4 years 2 months 12 days
Operating, weighted-average discount rate	4.04%

LEASES - Other information (Det

LEASES - Other information (Details)	12 Months Ended
	Sep. 30, 2020USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$ 6,661,365
Lease liabilities arising from obtaining new ROU assets:
Operating leases	$ 3,116,737

LEASES - Future minimum operati

LEASES - Future minimum operating lease payments (Details)	Sep. 30, 2019USD ($)
Future minimum operating lease payments
2020	$ 6,468,837
2021	5,418,617
2022	4,299,261
2023	3,216,671
2024	2,456,810
Thereafter	2,387,618
Total minimum lease payments	$ 24,247,814

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019
Goodwill by reporting segment
Goodwill	$ 4,436,950	$ 4,436,950
Wholesale Segment
Goodwill by reporting segment
Goodwill	$ 4,436,950	$ 4,436,950

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2020
Other intangible assets, net	$ 500,000	$ 500,000
Intangible asset impairment charges	2,900,000
Retail Segment
Intangible asset impairment charges	2,900,000
Trademarks and tradenames | Retail Segment
Other intangible assets, net	$ 500,000	$ 500,000

EQUITY METHOD INVESTMENT (Detai

EQUITY METHOD INVESTMENT (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2020
EQUITY METHOD INVESTMENT
Contribution structured as equity			$ 6,500,000
Contribution structured as a secured loan			3,500,000
Carrying value of investment		$ 6,744,095	6,744,095
Net income (loss) attributable to AMCON, net of tax (1)			183,579
Carrying value of secured loan		$ 3,500,000	3,500,000
Team Sledd
EQUITY METHOD INVESTMENT
Contribution in cash	$ 10,000,000		$ 10,000,000
Contribution structured as equity	6,500,000
Contribution structured as a secured loan	$ 3,500,000
Ownership (as a percent)		44.00%	44.00%
Carrying value of investment		$ 6,700,000	$ 6,700,000
Net income (loss) attributable to AMCON, net of tax (1)		183,579	200,000
Carrying value of secured loan		$ 3,500,000	$ 3,500,000

EQUITY METHOD INVESTMENT - Equi

EQUITY METHOD INVESTMENT - Equity investee's summarized financial data (Details) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
EQUITY METHOD INVESTMENT
Net income (loss) attributable to AMCON, net of tax (1)		$ 183,579
Team Sledd
EQUITY METHOD INVESTMENT
Sales	$ 350,685,407
Gross profit	14,218,204
Net income (loss) before income taxes (1)	551,280
Net income (loss) attributable to AMCON, net of tax (1)	$ 183,579	$ 200,000

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revolving credit facility
Revolving portion of the facility	$ 61,971,682	$ 60,376,714
Facility
Revolving credit facility
Revolving portion of the facility	$ 61,971,682	60,376,714
Interest rate (as a percent)	2.41%
Revolving credit limit	$ 109,600,000
Increase in borrowing capacity available under loan accordion	25,000,000
Additional credit advances for certain inventory purchases	$ 10,000,000
Automatic renewal period of agreement unless terminated	1 year
Unused commitment fee (as a percent)	0.25%
Period considered for computing fixed charge coverage ratio	12 months
Threshold of excess availability of credit as a percentage of maximum loan limit, required for financial covenant compliance	10.00%
Restricted amount of dividends on common stock, or other distributions or investments	$ 3,500,000
Borrowings on the facility	1,500,000,000	1,400,000,000
Payments on the facility	1,500,000,000	1,400,000,000
Net advances (payments) on the Facility	1,600,000	$ 24,900,000
Credit available under the Facility	$ 47,600,000
Facility | LIBOR
Revolving credit facility
Variable rate basis	LIBOR
Floor variable rate (as a percent)	1.00%
Facility | Prime rate
Revolving credit facility
Variable rate basis	Prime rate
Facility | Minimum
Revolving credit facility
Notice period prior to the end of any original or renewal term of the agreement required for terminating the agreement either by the borrower or lender	90 days
Fixed charge coverage ratio	1
Facility | Minimum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.25%
Facility | Maximum
Revolving credit facility
Revolving credit limit	$ 110,000,000
Facility | Maximum | LIBOR
Revolving credit facility
Basis points added to reference rate (as a percent)	1.50%

DEBT - Long-Term Debt (Details)

DEBT - Long-Term Debt (Details)	12 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)item
Long-term obligations
Long-term debt	$ 3,125,644	$ 3,658,391
Less current maturities	(516,850)	(532,747)
Long-term debt less current maturities	2,608,794	3,125,644
2.99% Real Estate Loan
Long-term obligations
Long-term debt	$ 1,866,231	$ 2,263,040
Fixed interest rate (as a percent)	2.99%	2.99%
Periodic installments of principal and interest	$ 38,344	$ 38,344
Number of owned distribution facilities which collateralize debt instrument | item	3	3
4.50% Note Payable
Long-term obligations
Long-term debt	$ 1,259,413	$ 1,395,351
Fixed interest rate (as a percent)	4.50%	4.50%
Periodic installments of principal and interest	$ 49,114	$ 49,114

DEBT - Aggregate Minimum Princi

DEBT - Aggregate Minimum Principal Maturities of Long-Term Debt and Other (Details)	12 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)
Minimum principal maturities
2021	$ 516,850
2022	1,640,205
2023	968,589
Long-term debt	3,125,644	$ 3,658,391
Letter of credit issued for worker's compensation insurance carrier as part of the entity's self-insured loss control program	500,000
2.99% Real Estate Loan
Minimum principal maturities
Long-term debt	$ 1,866,231	$ 2,263,040
Number of cross defaults | item	0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Components of income tax expense from operations
Current: Federal	$ 1,690,956	$ 1,139,927
Current: State	468,842	428,501
Current income tax expense	2,159,798	1,568,428
Deferred: Federal	(14,270)	34,466
Deferred: State	(2,528)	6,106
Deferred income tax expense	(16,798)	40,572
Income tax expense	$ 2,143,000	$ 1,609,000
Income tax rate (as a percent)
Blended federal rate (as a percent)	21.00%	21.00%
Summary of difference between the Company's income tax expense in the accompanying consolidated financial statements and that which would be calculated using the statutory income tax rate
Tax at statutory rate	$ 1,575,422	$ 1,010,517
Nondeductible business expenses	230,571	226,670
State income taxes, net of federal tax benefit	376,262	332,931
Other	(39,255)	38,882
Income tax expense	2,143,000	1,609,000
Deferred tax assets:
Allowance for doubtful accounts	210,734	215,925
Accrued expenses	1,243,132	796,542
Inventory	365,417	452,192
Intangible assets	15,803	71,849
Other		23,237
Net operating loss carry forwards-federal	35,545	63,983
Net operating loss carry forwards-state	716,241	723,306
Total gross deferred tax assets	2,586,872	2,347,034
Less: Valuation allowance	(716,241)	(723,306)
Total net deferred tax assets	1,870,631	1,623,728
Deferred tax liabilities:
Trade discounts	318,070	375,172
Property and equipment	2,437,337	2,150,130
Goodwill	921,799	921,799
Total deferred tax liabilities	3,677,206	3,447,101
Total net deferred income tax liability	1,806,575	1,823,373
Limitation on utilization of HNWC's net operating losses per year through 2022	100,000
Valuation allowance against net operating losses	700,000	$ 700,000
Federal
Deferred tax liabilities:
Noncurrent deferred tax asset related to federal net operating loss carryforwards	100,000
Net operating loss carryforwards	$ 200,000

PROFIT SHARING PLAN (Details)

PROFIT SHARING PLAN (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
PROFIT SHARING PLAN
Employee's maximum voluntary contribution as percentage of their compensation	100.00%
Percentage of employer's contribution matching first 4 percent of employee's compensation	100.00%
Percentage of first portion of employee's compensation eligible for employer's matching contribution	2.00%
Percentage of employer's contribution matching next 2 percent of employee's compensation	50.00%
Percentage of second portion of employee's compensation eligible for employer's matching contribution	4.00%
Maximum matching percentage of employee compensation	4.00%
Company's matching contributions to the profit sharing plan (net of employee forfeitures)	$ 0.9	$ 0.8

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Liability Insurance
Liabilities for workers' compensation, general liability and health insurance	$ 1.5	$ 1.5
Self-insured liabilities reserve
Beginning balance	1.5	1.6
Charged to expense	6.6	5.4
Payments	(6.6)	(5.5)
Ending balance	$ 1.5	$ 1.5

EQUITY-BASED INCENTIVE AWARDS -

EQUITY-BASED INCENTIVE AWARDS - Omnibus Plans and Stock Options (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2020USD ($)item$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares
EQUITY-BASED INCENTIVE AWARD
Number of incentive plans | item	2
Stock options issued and outstanding
Number Outstanding (in shares) | shares	34,350
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 80.33
Omnibus Plans
EQUITY-BASED INCENTIVE AWARD
Number of shares of the company's common stock permitted for issuance under the plan | shares	135,000
Number of shares awarded pursuant to the plan | shares	101,280
Number of additional shares that may be awarded under the plan | shares	33,720
Stock Options
EQUITY-BASED INCENTIVE AWARD
Awards issued (in shares) | shares	0	5,450
Vesting period	5 years	5 years
Estimated fair value of the stock option awards using the Black-Scholes option pricing model | $		$ 0.2
Stock Option Pricing Assumptions
Risk-free interest rate (as a percent)		2.55%
Dividend yield (as a percent)		0.80%
Expected volatility (as a percent)		45.10%
Expected life		6 years
Stock options issued and outstanding
Expiration period	10 years	10 years
Number Outstanding (in shares) | shares	34,350	36,450
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 80.33	$ 78.67
Number Exercisable (in shares) | shares	22,890
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 72.67
Number of Shares
Granted (in shares) | shares	0	5,450
Exercised (in shares) | shares	(2,100)
Weighted Average Exercise Price
Exercised (in dollars per share) | $ / shares	$ 51.50
Aggregate intrinsic value and fair value of options outstanding
Compensation expense | $	$ 0.1	$ 0.1
Total unamortized compensation expense | $	$ 0.2
Amortization period of unamortized compensation expense	29 months
Aggregate intrinsic value of options outstanding | $		0.2
Aggregate intrinsic value of options exercisable | $		0.2
Total fair value of options vested | $	$ 0.4	0.4
Stock Options | Maximum
Aggregate intrinsic value and fair value of options outstanding
Aggregate intrinsic value of options outstanding | $	0.1
Aggregate intrinsic value of options exercisable | $	0.1
Total intrinsic value of options exercised | $	$ 0.1	$ 0.1

EQUITY-BASED INCENTIVE AWARDS_2

EQUITY-BASED INCENTIVE AWARDS - Authorized and Approved Restricted Stock Unit Awards (Details) - USD ($)	1 Months Ended				12 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2015	Sep. 30, 2020	Sep. 30, 2019
Restricted Stock Units
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued					14,550
Non-vested awards outstanding at the end of the period (in shares)					28,971	28,151
Direct cost to the recipients of the restricted stock units					$ 0
Compensation expense					1,000,000	$ 1,200,000
Tax benefit related to compensation expense					200,000	300,000
Total intrinsic value of equity-based compensation awards vested					900,000	$ 1,100,000
Total unamortized compensation expense					$ 1,100,000
Period over which unamortized compensation expense is expected to be amortized					16 months
Restricted Stock Units Awarded October 2015
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued				13,250
Estimated fair value of award at grant date				$ 1,112,000
Non-vested awards outstanding at the end of the period (in shares)					50
Fair value of non-vested awards at the end of the period					$ 3,000
Vested as of the end of the period (in shares)					13,200
Units scheduled to vest					50
Restricted Stock Units Awarded October 2015 | Minimum
EQUITY-BASED INCENTIVE AWARD
Service period				36 months
Restricted Stock Units Awarded October 2015 | Maximum
EQUITY-BASED INCENTIVE AWARD
Service period				60 months
Restricted Stock Units Awarded October 2017
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued			13,000
Service period			36 months
Estimated fair value of award at grant date			$ 1,177,000
Non-vested awards outstanding at the end of the period (in shares)					4,334
Fair value of non-vested awards at the end of the period					$ 280,000
Vested as of the end of the period (in shares)					8,666
Units scheduled to vest					4,334
Restricted Stock Units Awarded October 2018
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued		15,050
Service period		36 months
Estimated fair value of award at grant date		$ 1,264,000
Non-vested awards outstanding at the end of the period (in shares)					10,037
Fair value of non-vested awards at the end of the period					$ 648,000
Vested as of the end of the period (in shares)					5,013
Restricted Stock Units Awarded October 2018 | Vest in October 2020
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest					5,018
Restricted Stock Units Awarded October 2018 | Vest in October 2021
EQUITY-BASED INCENTIVE AWARD
Units scheduled to vest					5,019
Restricted Stock Units Awarded October 2019
EQUITY-BASED INCENTIVE AWARD
Original number of awards issued	14,550
Service period	36 months
Estimated fair value of award at grant date	$ 1,007,000
Non-vested awards outstanding at the end of the period (in shares)					14,550
Fair value of non-vested awards at the end of the period					$ 940,000
Units scheduled to vest					14,550

EQUITY-BASED INCENTIVE AWARDS_3

EQUITY-BASED INCENTIVE AWARDS - Restricted Stock Unit Activity (Details) - Restricted Stock Units	12 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of Shares
Nonvested restricted stock units at the beginning of the period (in shares) | shares	28,151
Granted (in shares) | shares	14,550
Vested (in shares) | shares	(13,730)
Nonvested restricted stock units at the end of the period (in shares) | shares	28,971
Weighted Average Fair Value
Nonvested restricted stock units at the beginning of the period (in dollars per share) | $ / shares	$ 76.25
Granted (in dollars per share) | $ / shares	69.20
Vested (in dollars per share) | $ / shares	74.02
Nonvested restricted stock units at the end of the period (in dollars per share) | $ / shares	$ 64.59

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details)	12 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)
Information by business segments
Number of reportable business segments | item	2
Total external revenue	$ 1,521,278,763	$ 1,392,388,157
Depreciation	3,116,449	2,575,924
Amortization		41,667
Operating income (loss)	9,080,986	6,349,688
Interest expense	1,693,251	1,598,864
Income (loss) from operations before taxes	7,502,011	4,811,943
Equity method investment earnings, net of tax	183,579
Total assets	188,001,273	157,711,622
Capital expenditures	3,287,320	4,506,280
Cigarettes
Information by business segments
Total external revenue	1,045,661,081	955,667,916
Tobacco
Information by business segments
Total external revenue	227,807,266	197,678,519
Confectionery
Information by business segments
Total external revenue	82,910,260	83,130,063
Health food
Information by business segments
Total external revenue	46,010,692	44,210,688
Foodservice & other
Information by business segments
Total external revenue	118,889,464	111,700,971
Other
Information by business segments
Operating income (loss)	(6,385,904)	(6,199,095)
Interest expense	1,564,579	1,452,884
Income (loss) from operations before taxes	(7,891,074)	(7,651,977)
Equity method investment earnings, net of tax	183,579
Total assets	10,584,563	141,667
Wholesale Segment
Information by business segments
Total external revenue	1,475,268,071	1,348,177,469
Depreciation	1,791,414	1,569,178
Amortization		41,667
Operating income (loss)	17,291,306	17,280,500
Interest expense	128,672	145,980
Income (loss) from operations before taxes	17,207,935	17,186,295
Total assets	158,292,477	143,541,723
Capital expenditures	2,071,956	2,982,273
Wholesale Segment | Cigarettes
Information by business segments
Total external revenue	1,045,661,081	955,667,916
Wholesale Segment | Tobacco
Information by business segments
Total external revenue	227,807,266	197,678,519
Wholesale Segment | Confectionery
Information by business segments
Total external revenue	82,910,260	83,130,063
Wholesale Segment | Foodservice & other
Information by business segments
Total external revenue	118,889,464	111,700,971
Retail Segment
Information by business segments
Total external revenue	46,010,692	44,210,688
Depreciation	1,325,035	1,006,746
Operating income (loss)	(1,824,416)	(4,731,717)
Income (loss) from operations before taxes	(1,814,850)	(4,722,375)
Total assets	19,124,233	14,028,232
Capital expenditures	1,215,364	1,524,007
Retail Segment | Health food
Information by business segments
Total external revenue	$ 46,010,692	$ 44,210,688

TREASURY STOCK (Details)

TREASURY STOCK (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
TREASURY STOCK
Number of shares of common stock repurchased	28,727	75,113
Value of shares of common stock repurchased	$ 2	$ 7.5

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - shares	Oct. 27, 2020	Sep. 30, 2020
Restricted Stock Units
SUBSEQUENT EVENT
Awards granted (in shares)		14,550
Subsequent events | Common Stock repurchase program
SUBSEQUENT EVENT
Number of shares of the company's common stock permitted for issuance under the plan	75,000
Subsequent events | Restricted Stock Units
SUBSEQUENT EVENT
Awards granted (in shares)	20,500
Vesting period	3 years