Note 13 - Segment and Related Information

12 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13.

SEGMENT AND RELATED INFORMATION

The Company's

three

business units have a common management team and infrastructure. The indicators and gauges unit has different technologies and customers than the other business units. Therefore, the business units have been aggregated into

three

reportable segments:

1)

indicators and gauges;

2)

automotive diagnostic tools and equipment; and

3)

flexible metal hose and silicone hose. The Company's management evaluates segment performance based primarily on operating earnings before taxes. Non - operating items such as interest income and interest expense are included in general corporate expenses. Depreciation expense on assets used in manufacturing are considered part of each segment's operating performance. Depreciation expense on non - manufacturing assets is included in general corporate expenses.

Indicators and Gauges:

This segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture or service business and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment.

Automotive Diagnostic Tools and Equipment:

This segment consists primarily of products designed and manufactured to support the testing or servicing of automotive systems using electronic means to measure vehicle parameters. These products are sold to OEMs and to the aftermarket using several brand names and a variety of distribution methods. Included in this segment are products used for state required testing of vehicle emissions.

Flexible Metal Hose and Silicone Hose:

This segment consists primarily of products designed and manufactured or distributed primarily to the trucking industry. These products are sold to OEMs and to the aftermarket using a variety of distribution methods.

Information by industry segment is set forth below:

 

Years Ended September 30,	2016			2015			2014
Net Sales
Indicators and Gauges	$	1,196,204		$	1,298,901		$	1,492,348
Automotive Diagnostic Tools and Equipment		3,688,574			4,554,023			4,813,488
Flexible Metal Hose and Silicone Hose		1,761,002			-			-
	$	6,645,780		$	5,852,924		$	6,305,836
Income (Loss) Before Provision for Income Taxes
Indicators and Gauges	$	161,878		$	260,296		$	312,692
Automotive Diagnostic Tools and Equipment		(18,857	)		679,720			704,427
Flexible Metal Hose and Silicone Hose		166,075			-			-
General Corporate Expenses		1,024,152			(1,062,393	)		(1,008,743	)
	$	1,333,248		$	(122,377	)	$	8,376

Asset Information

Years Ended September 30,	2016		2015
Identifiable Assets
Indicators and Gauges	$	754,149	$	729,520
Automotive Diagnostic Tools and Equipment		1,418,345		2,292,737
Flexible Metal Hose and Silicone Hose		6,784,751		-
Corporate		6,477,510		844,318
	$	15,434,755	$	3,866,575

Geographical Information

Included in the consolidated financial statements are the following amounts related to geographic locations:

Years Ended September 30,	2016		2015		2014
Revenue:
United States of America	$	6,492,423	$	5,678,888	$	6,149,883
Australia		60,412		20,043		64,744
Canada		59,653		75,612		58,983
England		25,789		21,822		6,938
Mexico		6,976		26,902		25,288
Taiwan and other		527		29,657		-
	$	6,645,780	$	5,852,924	$	6,305,836

All export sales to Australia, Canada, England, Mexico, Taiwan and other foreign countries are made in United States of America Dollars.