Inventories

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventories

InventoriesInventories, which are all within the Telco segment, at December 31, 2022, 2021, and September 30, 2021 are as follows, in thousands:

	December 31,		December 31,		September 30,
	2022		2021		2021
New equipment	$	2,286	$	1,396	$	1,295
Refurbished and used equipment	11,148		7,824		8,103
Allowance for excess and obsolete inventory:	(3,871)		(3,567)		(3,476)
Total inventories, net	$	9,563	$	5,653	$	5,922

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 year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, 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.  The Telco segment recorded inventory obsolescence charges of $0.3 million, $0.1 million and $0.4 million for the year ended December 31, 2022, the transition period of three months ended December 31, 2021, and the year ended September 30, 2021, respectively and the Company has a $3.9 million allowance at December 31, 2022. The Company also reviewed the cost of inventories against estimated net realizable value and for the years ended December 31, 2022 and September 30, 2021, recorded a lower of cost or net realizable value charge of $0.2 million and $0.1 million, respectively. There were no adjustments for lower of cost or net realizable value recorded for the transition period of three months ended December 31, 2021.