Note 6 - Inventories

12 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note

6

–

Inventories

Inventories, which are all within the Telco segment, at

September 30, 2019

and

September 30, 2018

are as follows:

	September 30, 2019			September 30, 2018
New equipment	$	1,496,145		$	1,371,545
Refurbished and used equipment		7,404,428			6,905,946
Allowance for excess and obsolete inventory:		(1,275,000	)		(815,000	)
Total inventories, net	$	7,625,573		$	7,462,491

New equipment includes products purchased from manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators.  Refurbished and used equipment 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.

In the years ended

September 30, 2019

and

2018,

the Telco segment identified certain inventory that more than likely will

not

be sold or that the cost will

not

be recovered when it is processed through its recycling program. Therefore, the Company has a

$1.3

million allowance at

September 30, 2019.

The Company also reviewed the cost of inventories against estimated net realizable value and recorded a lower of cost or net realizable value charge of

$0.7

million,

$0.2

million and

$0.1

million for the years ended

September 30, 2019,

2018

and

2017,

respectively, for inventories that have a cost in excess of estimated net realizable value.