Related Party Transactions

12 Months Ended

Sep. 30, 2016

17.Related Party Transactions

The Company has a minority interest in Yamasato, Fujiwara, Higa & Associates, Inc. doing business as Aquila. The Company provides dosimetry parts to Aquila for their military contract. The Company also has a 50% equity interest in Nagase.

In connection with the preparation of the consolidated financial statements for the interim periods ended March 31, 2015, the Company identified errors in its previously issued financial statements for the interim periods ended June 30, 2014. The Company did not properly report sales to related parties in its Related Party Transactions footnote. As a result of these errors, the Company understated sales to Aquila by $215 and understated sales to Nagase by $271, respectively, as previously reported for the year ended September 30, 2014. In accordance with accounting guidance presented in SAB 99, management assessed the materiality of these errors and concluded that they were not material to the Company’s financial statements for the year ended September 30, 2014.

The sales to and purchases from Aquila are reported in the table below for the fiscal years ended September 30. Sales to Aquila for the fiscal year ended September 30, 2014 has been corrected for the error discussed above.



(Dollars in Thousands)	2016		2015		2014
Sales to Aquila	$	3,388	$	5,844	$	6,271
Purchases from Aquila		559		647		890

Balance sheet items associated with Aquila at September 30 were as follows:



(Dollars in Thousands)	2016		2015
Amounts in accounts receivable	$	1,910	$	2,795
Amounts in accounts payable		320		284

The sales to and purchases from Nagase are reported in the table below for the fiscal years ended September 30. Sales to Nagase for the fiscal year ended September 30, 2014 has been corrected for the error discussed above.



(Dollars in Thousands)	2016		2015		2014
Sales to Nagase	$	4,613	$	1,924	$	1,341
Purchases from Nagase		1,013		1,189		1,710

Balance sheet items associated with Nagase at September 30 were as follows:

(Dollars in Thousands)

Amounts in accounts receivable

Amounts in accounts payable