Note 16 - Segment Reporting

12 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

1

6

– Segment Reporting

The Company is reporting its financial performance based on its external reporting segments: Wireless Infrastructure Services and Telecommunications. These reportable segments are described below.

Wireless Infrastructure Services

(“

Wireless

”)

On

January 4, 2019,

the Company purchased substantially all of the net assets of Fulton, which comprises the Wireless segment. Fulton provides turn-key wireless infrastructure services for the

four

major U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers that support these wireless carriers. These services primarily consist of the installation and upgrade of technology on cell sites and the construction of new small cells for

5G.

Telecommunications

(“Telco”)

The Company’s Telco segment sells new and refurbished telecommunications networking equipment, including both central office and customer premise equipment, to its customer base of telecommunications providers, enterprise customers and resellers located primarily in North America. This segment also offers its customers repair and testing services for telecommunications networking equipment. In addition, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program.

The Company evaluates performance and allocates its resources based on operating income. The accounting policies of its reportable segments are the same as those described in the summary of significant accounting policies. Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, the promissory note related to the sale of the Cable TV segment, property and equipment, goodwill and intangible assets.

	Years Ended
	September 30, 2019			September 30, 2018			September 30, 2017
Sales
Wireless	$	22,918,535		$	‒		$	‒
Telco		32,254,303			27,522,696			25,994,521
Intersegment		(54,541	)		(49,414	)		(86,950	)
Total sales	$	55,118,297		$	27,473,282		$	25,907,571
Gross profit
Wireless	$	1,997,041		$	‒		$	‒
Telco		7,095,481			7,417,215			7,072,238
Total gross profit	$	9,092,522		$	7,417,215		$	7,072,238
Operating loss
Wireless	$	(1,513,280	)	$	‒		$	‒
Telco		(2,462,834	)		(3,797,957	)		(2,916,351	)
Total operating loss	$	(3,976,114	)	$	(3,797,957	)	$	(2,916,351	)
Segment assets
Wireless	$	5,515,793		$	‒		$	‒
Telco		22,619,565			22,173,797			24,135,091
Discontinued operations		‒			18,450,498			24,158,314
Non-allocated		8,692,986			3,770,325			6,554,200
Total assets	$	36,828,344		$	44,394,620		$	54,847,605