Note

– Inventories

Inventories at

March

31,

2017

and

September

30,

2016

are as follows:

	March 31, 201 7			September 30, 201 6
New:
Cable TV	$	14,500,705		$	15,087,495
Telco		362,089			–
Refurbished and used:
Cable TV		3,299,490			3,383,079
Allowance for excess and obsolete inventory		(2,519,586	)		(2,219,586	)
Telco		6,811,191			5,625,213
Allowance for excess and obsolete inventory		(335,859	)		(351,282	)

	$	22,118,030		$	21,524,919

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 Telco new and refurbished inventory at

March

31,

2017

includes

$0.2

million and

$1.0

million, respectively from the Triton Miami acquisition.

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

six

months ended

March

31,

2017

and

2016,

$0.3

million, to an allowance of

$2.5

million at

March

31,

2017.

For the Telco segment, any obsolete or excess telecommunications inventory is generally processed through its recycling program when it is identified. However, the Telco segment has identified certain inventory that more than likely will not be sold or that the cost will not be recovered when it is sold, and had not yet been processed through its recycling program. Therefore, the Company has a

$0.3

million allowance at

March

31,

2017.