Note 3 - Inventories

3 Months Ended

Dec. 31, 2015

Note 3

– Inventories

Inventories at December 31, 2015 and September 30, 2015 are as follows:

	December 31, 2015			September 30, 2015
New:
Cable TV	$	15,447,377		$	16,255,487
Refurbished:
Cable TV		3,846,451			3,676,132
Telco		6,604,672			6,426,005
Allowance for excess and obsolete inventory		(2,906,628	)		(2,756,628	)

	$	22,991,872		$	23,600,996

New inventory includes products purchased from the manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators. Refurbished inventory includes factory refurbished, Company refurbished and used products. Generally, the Company does not refurbish its used inventory until there is a sale of that product or to keep a certain quantity on hand.

The Company regularly reviews the Cable TV segment inventory quantities on hand, and an adjustment to cost is recognized when the loss of usefulness of an item or other factors, such as obsolete and excess inventories, indicate that cost will not be recovered when an item is sold. The Company recorded charges in the Cable TV segment to allow for obsolete inventory, which increased the cost of sales during the three months ended December 31, 2015, and 2014, by approximately $0.2 million. For the Telco segment, any obsolete and excess telecommunications inventory is processed through its recycling program when it is identified.