Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2021 | Apr. 14, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | Clearfield, Inc. | |
Entity Central Index Key | 0000796505 | |
Trading Symbol | clfd | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 13,732,806 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.01 par value |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 22,338,721 | $ 16,449,636 |
Short-term investments | 9,957,831 | 10,582,527 |
Accounts receivables, net | 13,195,295 | 10,496,672 |
Inventories, net | 14,627,176 | 14,408,538 |
Other current assets | 717,599 | 585,436 |
Total current assets | 60,836,622 | 52,522,809 |
Property, plant and equipment, net | 4,749,530 | 4,952,819 |
Other Assets | ||
Long-term investments | 25,565,000 | 25,143,000 |
Goodwill | 4,708,511 | 4,708,511 |
Intangible assets, net | 4,793,137 | 4,986,216 |
Right of use lease assets | 2,724,233 | 2,539,100 |
Deferred tax asset | 178,118 | 178,118 |
Other | 262,352 | 266,857 |
Total other assets | 38,231,351 | 37,821,802 |
Total Assets | 103,817,503 | 95,297,430 |
Current Liabilities | ||
Current portion of lease liability | 887,677 | 665,584 |
Accounts payable | 5,011,965 | 3,689,587 |
Accrued compensation | 5,496,056 | 4,856,885 |
Accrued expenses | 492,758 | 1,202,753 |
Total current liabilities | 11,888,456 | 10,414,809 |
Other Liabilities | ||
Long-term portion of lease liability | 2,080,562 | 2,129,343 |
Total other liabilities | 2,080,562 | 2,129,343 |
Total liabilities | 13,969,018 | 12,544,152 |
Shareholders’ Equity | ||
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding | ||
Common stock, authorized 50,000,000, $.01 par value; 13,732,806 and 13,649,962 shares issued and outstanding as of March 31, 2021 and September 30, 2020. | 137,328 | 136,500 |
Additional paid-in capital | 57,794,061 | 57,502,905 |
Retained earnings | 31,917,096 | 25,113,873 |
Total shareholders’ equity | 89,848,485 | 82,753,278 |
Total Liabilities and Shareholders’ Equity | $ 103,817,503 | $ 95,297,430 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 13,732,806 | 13,649,962 |
Common stock, shares outstanding (in shares) | 13,732,806 | 13,649,962 |
Condensed Statements of Earning
Condensed Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 29,691,934 | $ 20,408,509 | $ 56,784,081 | $ 39,786,500 |
Cost of sales | 16,750,354 | 12,257,076 | 32,473,256 | 23,907,532 |
Gross profit | 12,941,580 | 8,151,433 | 24,310,825 | 15,878,968 |
Operating expenses | ||||
Selling, general and administrative | 8,490,120 | 7,431,261 | 16,145,657 | 14,757,881 |
Income from operations | 4,451,460 | 720,172 | 8,165,168 | 1,121,087 |
Interest income | 123,324 | 217,725 | 257,055 | 440,968 |
Income before income taxes | 4,574,784 | 937,897 | 8,422,223 | 1,562,055 |
Income tax expense | 935,000 | 190,000 | 1,619,000 | 313,000 |
Net income | $ 3,639,784 | $ 747,897 | $ 6,803,223 | $ 1,249,055 |
Net income per share Basic (in dollars per share) | $ 0.27 | $ 0.05 | $ 0.50 | $ 0.09 |
Net income per share Diluted (in dollars per share) | $ 0.27 | $ 0.05 | $ 0.50 | $ 0.09 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 13,730,150 | 13,521,172 | 13,711,135 | 13,516,608 |
Diluted (in shares) | 13,779,779 | 13,521,172 | 13,738,090 | 13,571,674 |
Condensed Statements of Shareho
Condensed Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Sep. 30, 2019 | 13,641,805 | |||
Balance at Sep. 30, 2019 | $ 136,418 | $ 56,976,162 | $ 17,820,807 | $ 74,933,387 |
Balance (in shares) at Dec. 31, 2019 | 13,657,459 | |||
Balance at Dec. 31, 2019 | $ 136,575 | 57,383,020 | 18,321,965 | 75,841,560 |
Balance (in shares) at Sep. 30, 2019 | 13,641,805 | |||
Balance at Sep. 30, 2019 | $ 136,418 | 56,976,162 | 17,820,807 | 74,933,387 |
Stock-based compensation expense | 328,523 | 328,523 | ||
Restricted stock issuance, net of forfeitures (in shares) | 9,580 | |||
Restricted stock issuance, net of forfeitures | $ 96 | (96) | ||
Exercise of stock options, net of shares exchanged for payment (in shares) | 3,396 | |||
Exercise of stock options, net of shares exchanged for payment | $ 33 | 2,549 | 2,582 | |
Tax withholding related to vesting of restricted stock grants (in shares) | (453) | |||
Tax withholding related to vesting of restricted stock grants | $ (4) | (5,799) | (5,803) | |
Net income | 1,249,055 | 1,249,055 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 15,107 | |||
Issuance of common stock under employee stock purchase plan | $ 151 | 169,501 | 169,652 | |
Repurchase of common stock (in shares) | (41,796) | |||
Repurchase of common stock | $ (418) | (428,236) | (428,654) | |
Balance (in shares) at Mar. 31, 2020 | 13,627,639 | |||
Balance at Mar. 31, 2020 | $ 136,276 | 57,042,604 | 19,069,862 | 76,248,742 |
Balance (in shares) at Dec. 31, 2019 | 13,657,459 | |||
Balance at Dec. 31, 2019 | $ 136,575 | 57,383,020 | 18,321,965 | 75,841,560 |
Stock-based compensation expense | 87,937 | 87,937 | ||
Restricted stock issuance, net of forfeitures (in shares) | 9,580 | |||
Restricted stock issuance, net of forfeitures | $ 96 | (96) | ||
Exercise of stock options, net of shares exchanged for payment (in shares) | 2,396 | |||
Exercise of stock options, net of shares exchanged for payment | $ 23 | (21) | 2 | |
Net income | 747,897 | 747,897 | ||
Repurchase of common stock (in shares) | (41,796) | |||
Repurchase of common stock | $ (418) | (428,236) | (428,654) | |
Balance (in shares) at Mar. 31, 2020 | 13,627,639 | |||
Balance at Mar. 31, 2020 | $ 136,276 | 57,042,604 | 19,069,862 | 76,248,742 |
Balance (in shares) at Sep. 30, 2020 | 13,649,962 | |||
Balance at Sep. 30, 2020 | $ 136,500 | 57,502,905 | 25,113,873 | 82,753,278 |
Balance (in shares) at Dec. 31, 2020 | 13,727,906 | |||
Balance at Dec. 31, 2020 | $ 137,279 | 57,696,847 | 28,277,312 | 86,111,438 |
Balance (in shares) at Sep. 30, 2020 | 13,649,962 | |||
Balance at Sep. 30, 2020 | $ 136,500 | 57,502,905 | 25,113,873 | 82,753,278 |
Stock-based compensation expense | 623,235 | 623,235 | ||
Restricted stock issuance, net of forfeitures (in shares) | 36,509 | |||
Restricted stock issuance, net of forfeitures | $ 365 | (365) | ||
Exercise of stock options, net of shares exchanged for payment (in shares) | 33,543 | |||
Exercise of stock options, net of shares exchanged for payment | $ 336 | (456,460) | (456,124) | |
Tax withholding related to vesting of restricted stock grants (in shares) | (2,219) | |||
Tax withholding related to vesting of restricted stock grants | $ (23) | (54,185) | (54,208) | |
Net income | 6,803,223 | 6,803,223 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 15,011 | |||
Issuance of common stock under employee stock purchase plan | $ 150 | 178,931 | 179,081 | |
Balance (in shares) at Mar. 31, 2021 | 13,732,806 | |||
Balance at Mar. 31, 2021 | $ 137,328 | 57,794,061 | 31,917,096 | 89,848,485 |
Balance (in shares) at Dec. 31, 2020 | 13,727,906 | |||
Balance at Dec. 31, 2020 | $ 137,279 | 57,696,847 | 28,277,312 | 86,111,438 |
Stock-based compensation expense | 334,178 | 334,178 | ||
Restricted stock issuance, net of forfeitures (in shares) | (1,178) | |||
Restricted stock issuance, net of forfeitures | $ (12) | 12 | ||
Exercise of stock options, net of shares exchanged for payment (in shares) | 7,828 | |||
Exercise of stock options, net of shares exchanged for payment | $ 79 | (193,733) | (193,654) | |
Tax withholding related to vesting of restricted stock grants (in shares) | (1,750) | |||
Tax withholding related to vesting of restricted stock grants | $ (18) | (43,243) | (43,261) | |
Net income | 3,639,784 | 3,639,784 | ||
Balance (in shares) at Mar. 31, 2021 | 13,732,806 | |||
Balance at Mar. 31, 2021 | $ 137,328 | $ 57,794,061 | $ 31,917,096 | $ 89,848,485 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 6,803,223 | $ 1,249,055 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,139,261 | 1,210,961 |
Change in allowance for doubtful accounts | 209,612 | |
Amortization of discount on investments | (55,641) | |
Stock-based compensation | 623,235 | 328,523 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,908,235) | 1,049,108 |
Inventories, net | (218,638) | (2,675,123) |
Other assets | (188,542) | 98,010 |
Accounts payable and accrued expenses | 1,239,733 | 1,091,431 |
Net cash provided by operating activities | 6,699,649 | 2,296,324 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment and intangible assets | (682,009) | (1,183,336) |
Purchases of investments | (6,448,304) | (19,076,930) |
Proceeds from maturities of investments | 6,651,000 | 16,720,000 |
Net cash used in investing activities | (479,313) | (3,540,266) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock under employee stock purchase plan | 179,081 | 169,652 |
Tax withholding related to exercise of stock options | (456,124) | 2,582 |
Tax withholding related to vesting of restricted stock grants | (54,208) | (5,803) |
Repurchase of common stock | (428,654) | |
Net cash used in financing activities | (331,251) | (262,223) |
Increase (Decrease) in cash and cash equivalents | 5,889,085 | (1,506,165) |
Cash and cash equivalents, beginning of period | 16,449,636 | 10,081,721 |
Cash and cash equivalents, end of period | 22,338,721 | 8,575,556 |
Supplemental disclosures for cash flow information | ||
Cash paid during the year for income taxes | 2,331,002 | 355,657 |
Non-cash financing activities | ||
Cashless exercise of stock options | $ 1,269,414 | $ 7,737 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 1. The accompanying (a) condensed balance sheet as of September 30, 2020, three six March 31, 2021 not These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10 September 30, 2020. In preparation of the Company's financial statements, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and related revenues and expenses during the reporting periods. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. For the purposes of comparability, certain prior period amounts have been reclassified to conform to current period classification. There was no New Accounting Pronouncements In January 2017, 2017 04, 2 December 15, 2019. first 2021. 2017 04 first 2021 not In June 2016, 2016 13, November 2018, 2018 19 2016 13. first 2023, 2016 13 |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2. Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive. The following is a reconciliation of the numerator and denominator of the net income per common share computations for the three six March 31, 2021 2020: Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Net income $ 3,639,784 $ 747,897 $ 6,803,223 $ 1,249,055 Weighted average common shares 13,730,150 13,521,172 13,711,135 13,516,608 Dilutive potential common shares 49,629 - 26,956 55,066 Weighted average dilutive common shares outstanding 13,779,779 13,521,172 13,738,090 13,571,674 Net income per common share: Basic $ 0.27 $ 0.05 $ 0.50 $ 0.09 Diluted $ 0.27 $ 0.05 $ 0.50 $ 0.09 |
Note 3 - Cash, Cash Equivalents
Note 3 - Cash, Cash Equivalents, and Investments | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 3. The Company invests its excess cash in bank certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) as well as money market accounts. CDs with original maturities of more than three The maturity dates of the Company's investments as of March 31, 2021 September 30, 2020 March 31, 2021 September 30, 2020 Less than one year $ 9,957,831 $ 10,582,527 1-5 years 25,565,000 25,143,000 Total $ 35,522,831 $ 35,725,527 |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 4. The Company recorded $334,178 $623,235 three six March 31, 2021, three March 31, 2021, $313,658 $20,520 six March 31, 2021, $594,546 $28,689 $87,937 $328,523 three six March 31, 2020, three March 31, 2020, $83,140 $4,797 six March 31, 2020, $318,928 $9,595 March 31, 2021, $3,182,923 3.4 Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of options granted. During the six March 31, 2021, 105,089 five three $23.74. six March 31, 2020, 116,600 5.78 4.78 $12.43. The fair value of stock option awards during the six March 31, 2021 Six months ended March 31, 2021 Dividend yield 0 % Expected volatility 46.9 % Risk-free interest rate 0.24 % Expected life (years) 5 Vesting period (years) 3 The expected stock price volatility is based on the historical volatility of the Company's stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate as of the grant date on zero Options are granted at fair market values determined on the date of grant and vesting normally occurs over a three five The following is a summary of stock option activity during the six March 31, 2021: Number of options Weighted average exercise price Outstanding as of September 30, 2020 337,100 $ 12.48 Granted 105,089 23.74 Exercised (101,800 ) 12.47 Forfeited or Expired (25,309 ) 13.89 Outstanding as of March 31, 2021 315,080 $ 16.13 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of March 31, 2021, 2.79 $890,093. Restricted Stock The Company's 2007 one ten During the six March 31, 2021, 2021 2,120 one $32.41 six March 31, 2021, 37,687 three $23.74 During the six March 31, 2020, 2020 5,830 one $10.72 Restricted stock transactions during the six March 31, 2021 Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2020 109,070 $ 12.97 Granted 39,807 24.20 Vested (12,230 ) 11.08 Forfeited (3,298 ) 16.07 Unvested as of March 31, 2021 133,349 $ 16.41 Employee Stock Purchase Plan The Company's ESPP allows participating employees to purchase shares of the Company's common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees may may no 85% one six January 1 July 1 December 31, 2020 December 31, 2019, 15,011 15,107 $11.93 $11.23 December 31, 2020, 204,612 |
Note 5 - Revenue
Note 5 - Revenue | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 5. Revenue Recognition Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of the Company's contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Disaggregation of Revenue The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to countries in the Caribbean, Canada, Central and South America. Revenues related to the following geographic areas were as follows for the three six Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 United States $ 27,743,937 $ 19,489,270 $ 53,776,138 $ 37,731,957 All other countries 1,947,997 919,239 3,007,943 2,054,543 Total Net Sales $ 29,691,934 $ 20,408,509 $ 56,784,081 $ 39,786,500 The Company manufactures and sells a proprietary product line designed for the Broadband Service Provider marketplace. In addition, the Company's Legacy business provides build-to-print services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification. The percentages of our sales by markets were as follows for the three six Three Months Ended March 31, Six Months Ended March 31, 2020 2020 2020 2020 Broadband service providers 97 % 96 % 98 % 95 % Legacy customers 3 % 4 % 2 % 5 % Total Net Sales 100 % 100 % 100 % 100 % Broadband Service Providers are made up of Community Broadband, which includes local and regional telecom companies, utilities, municipalities and alternative carriers, multiple system operators (“MSO's, or Cable TV”), which are also referred to as Tier 2 3 large national and global wireline and wireless providers also referred to as Tier 1's Accounts Receivable Credit is extended based on the evaluation of a customer's financial condition, and collateral is generally not March 31, 2021 September 30, 2020, $79,473 $289,085, three March 31, 2021 See Note 7, |
Note 6 - Inventories
Note 6 - Inventories | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 6. Inventories consist of the following as of: March 31, September 30, Raw materials $ 11,932,008 $ 12,287,134 Work-in-process 2,191,469 1,033,021 Finished goods 1,541,111 2,048,514 Inventories, gross 15,664,588 15,368,669 Inventory reserve (1,037,412 ) (960,131 ) Inventories, net $ 14,627,176 $ 14,408,538 |
Note 7 - Major Customer Concent
Note 7 - Major Customer Concentration | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 7. For the three March 31, 2021, 21% 11% six March 31, 2021, 20% 11% three March 31, 2020, 21% six March 31, 2020, 20%, 11% 10%, not As of March 31, 2021, 10% 14% September 30, 2020, 12% 13%, |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangibles | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. The Company analyzes its goodwill for impairment annually or at an interim period when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of September 30, 2020 not six March 31, 2021, no The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not 20 March 31, 2021, 26 In addition, the Company has various finite lived intangible assets, most of which were acquired as a result of the acquisition of the active cabinet product line from Calix, Inc. during fiscal year 2018. September 30, 2020 not six March 31, 2021, no |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9. For the three six March 31, 2021, $935,000 $1,619,000, 20.4% 19.2%, three six March 31, 2020, $190,000 $313,000, 20.3% 20.0%, Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company's realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax asset for expected utilization using a “more likely than not” March 31, 2021 September 30, 2020 not As of March 31, 2021, not not 12 |
Note 10 - Leases
Note 10 - Leases | 6 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 10. The Company leases an 85,000 7050 ten two February 28, 2025. $249,000, one eighth not not On October 9, 2020, 46,000 three July 31, 2020. three 12 On February 12, 2020, 52,000 42 February 12, 2020. two three Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods the Company is reasonably certain to exercise. The Company's leases do not March 31, 2021, not not Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three six March 31, 2021: Three Months Ended March 31, Six Months Ended March 31, Operating lease expense within: 2021 2020 2021 2020 Cost of sales $ 252,459 $ 218,874 $ 505,395 $ 404,502 Selling, general and administrative 55,335 55,398 110,733 111,764 Total lease expense $ 307,794 $ 274,272 $ 616,128 $ 516,266 Future maturities of lease liabilities were as follows as of March 31, 2021: FY2021 $ 485,717 FY2022 986,844 FY2023 943,682 FY2024 516,725 FY2025 217,552 Thereafter - Total lease payments 3,150,520 Less: Interest (182,281 ) Present value of lease liabilities $ 2,968,239 The weighted average term and weighted average discount rate for the Company's leases as of March 31, 2021 3.33 3.40%, 4.78 3.48%, March 31, 2021. three six March 31, 2021, $240,066 $479,801, $168,815 $336,655, three six March 31, 2020, |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Net income $ 3,639,784 $ 747,897 $ 6,803,223 $ 1,249,055 Weighted average common shares 13,730,150 13,521,172 13,711,135 13,516,608 Dilutive potential common shares 49,629 - 26,956 55,066 Weighted average dilutive common shares outstanding 13,779,779 13,521,172 13,738,090 13,571,674 Net income per common share: Basic $ 0.27 $ 0.05 $ 0.50 $ 0.09 Diluted $ 0.27 $ 0.05 $ 0.50 $ 0.09 |
Note 3 - Cash, Cash Equivalen_2
Note 3 - Cash, Cash Equivalents, and Investments (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Investments Classified by Contractual Maturity Date [Table Text Block] | March 31, 2021 September 30, 2020 Less than one year $ 9,957,831 $ 10,582,527 1-5 years 25,565,000 25,143,000 Total $ 35,522,831 $ 35,725,527 |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six months ended March 31, 2021 Dividend yield 0 % Expected volatility 46.9 % Risk-free interest rate 0.24 % Expected life (years) 5 Vesting period (years) 3 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of options Weighted average exercise price Outstanding as of September 30, 2020 337,100 $ 12.48 Granted 105,089 23.74 Exercised (101,800 ) 12.47 Forfeited or Expired (25,309 ) 13.89 Outstanding as of March 31, 2021 315,080 $ 16.13 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2020 109,070 $ 12.97 Granted 39,807 24.20 Vested (12,230 ) 11.08 Forfeited (3,298 ) 16.07 Unvested as of March 31, 2021 133,349 $ 16.41 |
Note 5 - Revenue (Tables)
Note 5 - Revenue (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 United States $ 27,743,937 $ 19,489,270 $ 53,776,138 $ 37,731,957 All other countries 1,947,997 919,239 3,007,943 2,054,543 Total Net Sales $ 29,691,934 $ 20,408,509 $ 56,784,081 $ 39,786,500 Three Months Ended March 31, Six Months Ended March 31, 2020 2020 2020 2020 Broadband service providers 97 % 96 % 98 % 95 % Legacy customers 3 % 4 % 2 % 5 % Total Net Sales 100 % 100 % 100 % 100 % |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, September 30, Raw materials $ 11,932,008 $ 12,287,134 Work-in-process 2,191,469 1,033,021 Finished goods 1,541,111 2,048,514 Inventories, gross 15,664,588 15,368,669 Inventory reserve (1,037,412 ) (960,131 ) Inventories, net $ 14,627,176 $ 14,408,538 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Lessee, Operating Lease Expense [Table Text Block] | Three Months Ended March 31, Six Months Ended March 31, Operating lease expense within: 2021 2020 2021 2020 Cost of sales $ 252,459 $ 218,874 $ 505,395 $ 404,502 Selling, general and administrative 55,335 55,398 110,733 111,764 Total lease expense $ 307,794 $ 274,272 $ 616,128 $ 516,266 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FY2021 $ 485,717 FY2022 986,844 FY2023 943,682 FY2024 516,725 FY2025 217,552 Thereafter - Total lease payments 3,150,520 Less: Interest (182,281 ) Present value of lease liabilities $ 2,968,239 |
Note 2 - Net Income Per Share -
Note 2 - Net Income Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net income | $ 3,639,784 | $ 747,897 | $ 6,803,223 | $ 1,249,055 |
Weighted average common shares (in shares) | 13,730,150 | 13,521,172 | 13,711,135 | 13,516,608 |
Dilutive potential common shares (in shares) | 49,629 | 26,956 | 55,066 | |
Weighted average dilutive common shares outstanding (in shares) | 13,779,779 | 13,521,172 | 13,738,090 | 13,571,674 |
Basic (in dollars per share) | $ 0.27 | $ 0.05 | $ 0.50 | $ 0.09 |
Diluted (in dollars per share) | $ 0.27 | $ 0.05 | $ 0.50 | $ 0.09 |
Note 3 - Cash, Cash Equivalen_3
Note 3 - Cash, Cash Equivalents, and Investments - Maturity Date of CDs (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Less than one year | $ 9,957,831 | $ 10,582,527 |
1-5 years | 25,565,000 | 25,143,000 |
Total | $ 35,522,831 | $ 35,725,527 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expense | $ 334,178 | $ 87,937 | $ 623,235 | $ 328,523 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 3,182,923 | $ 3,182,923 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 146 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 105,089 | 116,600 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 5 years | 5 years 284 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | 4 years 284 days | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 23.74 | $ 12.43 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 2 years 288 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 890,093 | $ 890,093 | ||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Market Price Percentage, Offering Date | 85.00% | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 15,011 | 15,107 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price (in dollars per share) | $ 11.93 | $ 11.23 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 204,612 | |||||
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 39,807 | |||||
Restricted Stock [Member] | Stock Compensation Plan 2007 [Member] | Share-based Payment Arrangement, Nonemployee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 2,120 | 5,830 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share (in dollars per share) | $ 32.41 | $ 10.72 | ||||
Restricted Stock [Member] | Stock Compensation Plan 2007 [Member] | Share-based Payment Arrangement, Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 37,687 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share (in dollars per share) | $ 23.74 | |||||
Restricted Stock [Member] | Minimum [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |||||
Restricted Stock [Member] | Maximum [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 10 years | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Share-based Payment Arrangement, Expense | 313,658 | 83,140 | $ 594,546 | $ 318,928 | ||
Cost of Sales [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 20,520 | $ 4,797 | $ 28,689 | $ 9,595 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation - Valuation Assumptions (Details) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Dividend yield | 0.00% | |
Expected volatility | 46.90% | |
Risk-free interest rate | 0.24% | |
Expected life (Year) | 5 years | |
Vesting period (Year) | 3 years | 4 years 284 days |
Note 4 - Stock-based Compensa_5
Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Options, outstanding (in shares) | 337,100 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 12.48 | |
Granted (in shares) | 105,089 | 116,600 |
Weighted-average exercise price, Granted (in dollars per share) | $ 23.74 | $ 12.43 |
Exercised (in shares) | (101,800) | |
Weighted-average exercise price, Exercised (in dollars per share) | $ 12.47 | |
Forfeited or Expired (in shares) | (25,309) | |
Weighted-average exercise price, Forfeited or Expired (in dollars per share) | $ 13.89 | |
Options, outstanding (in shares) | 315,080 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 16.13 |
Note 4 - Stock-based Compensa_6
Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member] | 6 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Balance, unvested shares (in shares) | shares | 109,070 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 12.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares | 39,807 |
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 24.20 |
Vested (in shares) | shares | (12,230) |
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 11.08 |
Forfeited (in shares) | shares | (3,298) |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 16.07 |
Balance, unvested shares (in shares) | shares | 133,349 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 16.41 |
Note 5 - Revenue (Details Textu
Note 5 - Revenue (Details Textual) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 79,473 | $ 289,085 |
Note 5 - Revenue - Disaggregati
Note 5 - Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Total Net Sales | $ 29,691,934 | $ 20,408,509 | $ 56,784,081 | $ 39,786,500 |
Percent of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Broadband Service Providers [Member] | ||||
Percent of net sales | 97.00% | 96.00% | 98.00% | 95.00% |
Legacy Customers [Member] | ||||
Percent of net sales | 3.00% | 4.00% | 2.00% | 5.00% |
UNITED STATES | ||||
Total Net Sales | $ 27,743,937 | $ 19,489,270 | $ 53,776,138 | $ 37,731,957 |
Non-US [Member] | ||||
Total Net Sales | $ 1,947,997 | $ 919,239 | $ 3,007,943 | $ 2,054,543 |
Note 6 - Inventories - Componen
Note 6 - Inventories - Components of Inventory (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Raw materials | $ 11,932,008 | $ 12,287,134 |
Work-in-process | 2,191,469 | 1,033,021 |
Finished goods | 1,541,111 | 2,048,514 |
Inventories, gross | 15,664,588 | 15,368,669 |
Inventory reserve | (1,037,412) | (960,131) |
Inventories, net | $ 14,627,176 | $ 14,408,538 |
Note 7 - Major Customer Conce_2
Note 7 - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 21.00% | 21.00% | 20.00% | 20.00% | |
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 11.00% | 11.00% | 11.00% | ||
Revenue Benchmark [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 10.00% | 12.00% | |||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 14.00% | 13.00% |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangibles (Details Textual) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Number of Patents Granted | 26 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Expense (Benefit), Total | $ 935,000 | $ 190,000 | $ 1,619,000 | $ 313,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 20.40% | 20.30% | 19.20% | 20.00% |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Oct. 09, 2020ft² | Feb. 12, 2020ft² | Aug. 01, 2017 | Jan. 01, 2015 | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 120 days | 4 years 284 days | 3 years 120 days | 4 years 284 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.48% | 3.40% | 3.48% | ||||
Operating Lease, Payments | $ | $ 240,066 | $ 168,815 | $ 479,801 | $ 336,655 | ||||
7050 Winnetka Avenue North, Brooklyn Park, Minnesota [Member] | ||||||||
Area of Real Estate Property (Square Foot) | 85,000 | 85,000 | ||||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years 62 days | |||||||
Operating Lease Termination Fee | $ | $ 249,000 | |||||||
Tijuana, Mexico [Member] | ||||||||
Area of Real Estate Property (Square Foot) | 46,000 | |||||||
Lessee, Operating Lease, Term of Contract (Year) | 3 years | 3 years | ||||||
Tijuana, Mexico 2 [Member] | ||||||||
Area of Real Estate Property (Square Foot) | 52,000 | |||||||
Lessee, Operating Lease, Term of Contract (Year) | 3 years 180 days | |||||||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||||||
Lessee, Operating Lease, Renewal Term (Year) | 3 years |
Note 10 - Leases - Operating Le
Note 10 - Leases - Operating Lease Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Total lease expense under ASC 842 | $ 307,794 | $ 274,272 | $ 616,128 | $ 516,266 |
Cost of Sales [Member] | ||||
Total lease expense under ASC 842 | 252,459 | 218,874 | 505,395 | 404,502 |
Selling, General and Administrative Expenses [Member] | ||||
Total lease expense under ASC 842 | $ 55,335 | $ 55,398 | $ 110,733 | $ 111,764 |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease Liabilities (Details) | Mar. 31, 2021USD ($) |
FY2021 | $ 485,717 |
FY2022 | 986,844 |
FY2023 | 943,682 |
FY2024 | 516,725 |
FY2025 | 217,552 |
Thereafter | |
Total lease payments | 3,150,520 |
Less: Interest | (182,281) |
Present value of lease liabilities | $ 2,968,239 |