Note 8 - Forgivable Loans Receivable

12 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

NOTE

8.

FORGIVABLE LOANS RECEIVABLE

From time to time, the Company's operating subsidiaries

may

make loans, evidenced by promissory notes, primarily to newly recruited independent financial advisors as an incentive for their affiliation. The notes receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (weighted average interest rate of

4%

). These notes have various schedules for repayment or forgiveness based on production or retention requirements being met and mature at various dates through

2029.

Amortization of forgivable loans amounted to

$894,000

and 

$680,000

for the years ended

September 30, 2020

and

2019

respectively, and the related compensation was included in commissions, compensation and fees in the statement of operations. In the event the advisor's affiliation with the subsidiary terminates, the advisor is required to repay the unamortized balance of the note. The Company provides an allowance for doubtful accounts on the notes based on historical collection experience and continually evaluates the receivables for collectability and possible write-offs where a loss is deemed probable. As of

September 30, 2020

and

2019

,

no

allowance for doubtful accounts was required.

Forgivable loan activity for the fiscal years ended

September 30, 2020

and

2019

is as follows:

Balance, September 30, 2018	$	1,567,000
Advances		1,052,000
Amortization		(680,000	)
Reclassification to other receivables		(105,000	)
Balance, September 30, 2019		1,834,000
Advances		3,508,000
Acquired through the Winslow acquisition (see note 4)		91,000
Amortization		(894,000	)
Reclassification to other receivables		(270,000	)
Balance, September 30, 2020	$	4,269,000