Note 12 - Segment Reporting

12 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 12 – SEGMENT REPORTING

The Company’s reportable segments are based on the Company’s method of internal reporting. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer.

Upon closing of the acquisition of Nestor Cables, the Company reassessed its operating segments as defined under Accounting Standards Codification (“ASC”) 280, Segment Reporting.  Under ASC 280, operating segments are defined as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision -maker (“CODM”), in deciding how to allocate resources and in assessing performance. Based upon the Company’s assessment, the Company determined that the business of Nestor Cables was considered a second reportable segment as of July 26, 2022.

For the year ended September 30, 2022, the Company has two reportable segments: (1) Clearfield and (2) Nestor Cables. Clearfield’s Finnish holding company Clearfield Finland Ltd purchased Nestor Cables Ltd, including its Estonia subsidiary Nestor Cables Baltics on July 26, 2022. These entities comprise the Nestor Cables Segment. Refer to Note 11 -Acquisition of Nestor Cables for additional information on this transaction.

Financial results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM in making internal operating decisions. For consolidated reporting, the Company eliminates transactions between reportable segments.

The following table summarizes the amounts between the two reportable segments year ended September 30, 2022.

	Year ended September 30, 2022
(in thousands)	Clearfield		Nestor Cables			Consolidated
Revenue from external customers	$	263,822	$	7,061		$	270,883
Revenue from internal customers (Clearfield, Inc.)		-		182			182
Net investment income		327		1			328
Interest Expense		141		170			311
Depreciation and amortization		3,174		239			3,413
Stock based compensation		2,339		-			2,339
Income taxes		14,258		214			14,472
Net Income (loss)		49,771		(409	)		49,362
Capital Expenditures		8,487		13			8,500
Goodwill		4,709		1,693			6,402
Total Assets	$	198,255	$	30,873		$	229,128