16. OPERATING SEGMENT INFORMATION (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment operating income (loss)

Segment operating income (loss) and net income (loss) before taxes for the years ended September 30, 2019 and 2018 are shown in table below:

	For the Year Ended September 30,
	2019			2018
Revenue
Distribution	$	21,987,670		$	24,347,408
Design		15,421,360			10,152,095
Total revenue		37,409,030			34,499,503
Cost of sales
Distribution	$	18,612,881		$	20,286,446
Design		12,215,267			7,644,981
Total cost of sales	$	30,828,148		$	27,931,427
Segment operating income (loss)
Distribution	$	(1,376,675	)	$	(140,804	)
Design		(1,720,708	)		401,456
Total income (loss) from operations	$	(3,097,383	)	$	260,652
Other income (expenses)
Distribution	$	(437,809	)	$	401,779
Design		(73,000	)		(30,111	)
Total other income (expense)	$	(510,809	)	$	371,668
Income (loss) before income taxes
Distribution	$	(1,814,484	)	$	260,975
Design		(1,793,708	)		371,345
Total income (loss) before income taxes	$	(3,608,192	)	$	632,320

Revenues from External Customers

The following table sets forth our consolidated net revenues by geographic region for the fiscal years ended September 30, 2019 and 2018. All of design segment customer revenues are classified under the United States within the Americas region:

	(dollars in thousands)
	For the Fiscal Years Ended
	September 30,
	2019		2018
EMEA Region:
Germany	$	3,875	$	3,987
Poland		3,355		4,071
Switzerland		297		407
Austria		186		302
Other		166		553
Total EMEA Region		7,879		9,320
Americas:
United States [1]		21,730		17,307
Other		4		8
Total Americas		21,734		17,315
APAC Region:
Hong Kong		6,017		6,485
Malaysia		153		480
China		318		248
Singapore		564		338
Taiwan		164		195
Other		580		119
Total APAC Region		7,796		7,865
Total Net Revenues	$	37,409	$	34,500

[1] Includes $15.421 million of revenue attributed to IPS whose customers reside in the United States

Schedule of concentration percentages

The following customers or their affiliates or contract manufacturers accounted for more than 10% of the distribution segment’s net revenues, by geographic region, and in segment total for the fiscal years ended September 30, 2019 and 2018.

	For the Fiscal Year Ended September 30, 2019
		EMEA	Americas	APAC	Total
Diabetic Products Customer A		49%	42%	–	30%
Diabetic Products Customer B		29%	22%	6%	19%
Diabetic Products Customer C		–	3%	76%	28%
Diabetic Products Customer D		13%	15%	3%	10%
Totals		91%	82%	85%	87%

	For the Fiscal Year Ended September 30, 2018
		EMEA	Americas	APAC	Total
Diabetic Products Customer A		42%	36%	–	20%
Diabetic Products Customer B		30%	28%	–	27%
Diabetic Products Customer C		–	–	82%	27%
Diabetic Products Customer D		13%	16%	2%	10%
Totals		85%	80%	84%	84%

Schedule of Operating Assets and Liabilities

The following table presents total assets by operating segment for the years ended September 30, 2019 and 2018:

	September 30,
	2019		2018
Distribution	$	9,554,465	$	12,010,344
Design		6,539,887		7,217,522
Total assets	$	16,094,352	$	19,227,866

The following table presents total liabilities by operating segment for the years ended September 30, 2019 and 2018:

	September 30,
	2019		2018
Distribution	$	6,061,472	$	6,568,918
Design		2,321,581		1,559,353
Total liabilities	$	8,383,053	$	8,128,271

Schedule of Long-Lived Assets

All of the Company’s long-lived assets are geographically located in the United States or Americas region. See table below:

	September 30,
	2019						2018
	Consolidated		Distribution		Design		Consolidated		Distribution		Design
Americas	$	243,002	$	17,825	$	225,177	$	358,975	$	26,871	$	332,104
APAC		–		–		–		–		–		–
EMEA		–		–		–		–		–		–
Total long-lived assets (net)	$	243,002	$	17,825	$	225,177	$	358,975	$	26,871	$	332,104