16. OPERATING SEGMENT INFORMATION (Tables)

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment operating income (loss)

Segment operating loss and net loss before income taxes are shown in table below:

	Fiscal 2020			Fiscal 2019
Revenues, net
Distribution	$	20,752,000		$	21,988,000
Design		13,726,000			15,421,000
Total revenues, net	$	34,478,000		$	37,409,000
Cost of sales
Distribution	$	17,978,000		$	18,613,000
Design		9,862,000			12,215,000
Total cost of sales	$	27,840,000		$	30,828,000
Loss from operations
Distribution	$	(1,604,000	)	$	(1,377,000	)
Design		(378,000	)		(1,720,000	)
Total loss from operations	$	(1,982,000	)	$	(3,097,000	)
Other (income)/expense, net
Distribution	$	(202,000	)	$	438,000
Design		(14,000	)		73,000
Total other (income)/expense, net	$	(216,000	)	$	511,000
Loss before income taxes
Distribution	$	(1,402,000	)	$	(1,815,000	)
Design		(364,000	)		(1,793,000	)
Total loss before income taxes	$	(1,766,000	)	$	(3,608,000	)

Revenues from External Customers

The following table sets forth our consolidated net revenues by geographic region for Fiscal 2020 and Fiscal 2019. All of the design segment customer revenues are classified under the United States within the Americas region:

	Fiscal 2020		Fiscal 2019
EMEA Region:
Germany	$	3,375,000	$	3,875,000
Poland		2,675,000		3,355,000
Great Britain		267,000		–
Switzerland		–		297,000
Austria		406,000		186,000
Other		362,000		166,000
Total EMEA Region		7,085,000		7,879,000
Americas:
United States [1]		21,017,000		21,730,000
Other		44,000		4,000
Total Americas		21,061,000		21,734,000
APAC Region:
Hong Kong		4,876,000		6,017,000
Malaysia		200,000		153,000
China		217,000		318,000
Singapore		228,000		564,000
Taiwan		162,000		164,000
Other		649,000		580,000
Total APAC Region		6,332,000		7,796,000
Total Net Revenues	$	34,478,000	$	37,409,000

[1] Includes $13,726,000 and $15,421,000 of revenue in Fiscal 2020 and Fiscal 2019, respectively, attributed to the design segment 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 Fiscal 2020 and Fiscal 2019:

	Fiscal 2020
	EMEA		Americas		APAC		Total
Customer A		46%		39%		1%		29%
Customer B		24%		16%		9%		17%
Customer C		–		1%		76%		24%
Customer D		14%		11%		2%		9%
Totals		84%		67%		88%		79%

	Fiscal 2019
	EMEA		Americas		APAC		Total
Customer A		42%		42%		–		30%
Customer B		29%		22%		6%		19%
Customer C		–		3%		76%		28%
Customer D		13%		15%		3%		10%
Totals		84%		82%		85%		87%

All of our design segment customers operate in the United States. The following customers accounted for more than 10% of the design segment’s net revenues for Fiscal 2020 and Fiscal 2019:

	Fiscal 2020		Fiscal 2019
Customer 1		19%		1%
Customer 2		13%		9%
Customer 3		14%		19%
Customer 4		–		17%
Total		46%		46%

At September 30, 2020 and 2019, concentrations of accounts receivable with significant customers representing 10% or more of distribution segment accounts receivable were as follows:

	September 30,
	2020		2019
Customer A		23%		29%
Customer B		22%		21%
Customer C		20%		16%
Customer D		17%		24%
Totals		82%		90%

At September 30, 2020 and 2019, concentrations of accounts receivable with significant customers representing 10% or greater of design segment accounts receivable were as follows:

	September 30,
	2020		2019
Customer 1		24%		3%
Customer 3		5%		19%
Customer 4		–		44%
Customer 5		14%		5%
Customer 6		10%		3%
Totals		53%		74%

Schedule of Long-Lived Assets

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

	September 30,
	2020						2019
	Consolidated		Distribution		Design		Consolidated		Distribution		Design
Americas	$	215,000	$	23,000	$	192,000	$	243,000	$	18,000	$	225,000
APAC		–		–		–		–		–		–
EMEA		–		–		–		–		–		–
Total long-lived assets (net)	$	215,000	$	23,000	$	192,000	$	243,000	$	18,000	$	225,000

Schedule of Operating Assets and Liabilities

Segment assets are shown in the table below:

	September 30,
	2020		2019
Distribution	$	8,289,000	$	9,554,000
Design		11,067,000		6,540,000
Total	$	19,356,000	$	16,094,000

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

	September 30,
	2020		2019
Distribution	$	5,780,000	$	6,061,000
Design		6,993,000		2,322,000
Total	$	12,773,000	$	8,383,000