5. SEGMENT INFORMATION

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 5                  SEGMENT INFORMATION

The Company has two reportable segments: distribution and design. The distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic devices as well as smart-enabled and other products. The design segment provides a full spectrum of hardware and software product design and engineering services. We measure the performance of our operating segments based upon revenue and operating income or loss. Operating income/(loss) and net income/(loss) before income taxes are shown in the table below:

	For the Three Months Ended December 31,
	2020			2019
Revenues, net
Distribution	$	5,606,000		$	4,696,000
Design		4,112,000			3,697,000
Total revenues, net	$	9,718,000		$	8,393,000
Cost of sales
Distribution	$	4,880,000		$	4,093,000
Design		2,575,000			2,580,000
Total cost of sales	$	7,455,000		$	6,673,000
Income/(loss) from operations
Distribution	$	(344,000	)	$	(443,000	)
Design		177,000			414,000
Total income/(loss) from operations	$	(167,000	)	$	(29,000	)
Other (income)/expense, net
Distribution	$	(1,000	)	$	34,000
Design		(1,365,000	)		19,000
Total other (income)/expense, net	$	(1,366,000	)	$	53,000
Income/(loss) before income taxes
Distribution	$	(343,000	)	$	(477,000	)
Design		1,542,000			395,000
Total income/(loss) before income taxes	$	1,199,000		$	(82,000	)

The following table presents total assets by operating segment:

	December 31, 2020		September 30, 2020
Distribution	$	7,808,000	$	8,289,000
Design		10,801,000		11,067,000
Total	$	18,609,000	$	19,356,000