Note 14 - Commitments and Contingencies

9 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

1

4

. COMMITMENTS AND CONTINGENCIES

Litigation

The Company

may

at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management's estimation, record adequate reserves in the Company's consolidated financial statements for pending litigation. Currently, there are

no

pending material legal proceedings to which the Company is a party or to which any of its property is subject.

Bonus Plan

The Company has a bonus plan for employees, in accordance with their terms of employment, whereby they can earn a percentage of their salary based on meeting targeted objectives for orders received, revenue, operating income and operating cash flow. In the

nine

months ended

June 30, 2020,

the Company recorded

$1,143,267

of bonus expense. In the

nine

months ended

June 30, 2019,

the Company recorded

$902,274

of bonus expense. Bonus expense is recorded in accrued liabilities on the Company's condensed consolidated balance sheet as of

June 30, 2020

and

September 30, 2019.