Note 16 - Segment and Related Information

12 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

1 6 . SEGMENT AND RELATED INFORMATION

The Company

operates

three

reportable segments:

1

) commercial air handling,

2

) test and measurement and

3

) industrial hose. The Company's management evaluates segment performance based primarily on income (loss) before the provision for income taxes. Non-operating items such as marketing and general administrative expenses, interest income and interest expense are included in administrative and other 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 administrative and other expenses.

Commercial Air Handling

:

This segment manufactures custom air handling units under fixed price contract to customers in the health care, universities, research, pharmaceutical and industrial manufacturing market segments, and across the United States and worldwide.

Test and Measurement

:

This segment consists of diagnostic tools and equipment sold to the automotive industry and indicators and gauges sold primarily to companies in the aircraft and locomotive industries. These products are sold to original equipment manufacturers and to the aftermarket using a variety of distribution methods.

Industrial

Hose:

This segment consists primarily of flexible metal and silicone hose products designed and manufactured or distributed primarily to the trucking industry and other industrial end-users. These products are sold to original equipment manufacturers and to the aftermarket using a variety of distribution method.

Information by industry segment is set forth below:

Years Ended September 30,	201 7			201 6		201 5
Net Sales
Commercial Air Handling	$	11,190,844		$	-	$	-
Test and Measurement		6,610,684			4,884,778		5,852,924
Industrial Hose		6,015,207			1,761,002		-
	$	23,816,735		$	6,645,780	$	5,852,924
Income (Loss) Before Provision for Income Taxes
Commercial Air Handling	$	1,424,878		$	-	$	-
Test and Measurement		1,859,936			143,021		940,016
Industrial Hose		595,939			166,075		-
General Corporate Expenses		(1,691,993	)		1,024,152		(1,062,393	)
	$	2,188,760		$	1,333,248	$	(122,377	)

Geographical Information

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

Years Ended September 30,	2017		2016		2015
Revenue:
United States of America	$	22,735,947	$	6,492,423	$	5,678,888
Australia		4,112		60,412		20,043
Canada		419,625		59,653		75,612
England		-		25,789		21,822
Mexico		315,869		6,976		26,902
Poland		316,666		-		-
Other		24,515		527		29,657
	$	23,816,735	$	6,645,780	$	5,852,924

All export sales to Australia, Canada, England, Mexico, and other foreign countries are made in

US Dollars.