SEGMENTS AND CONCENTRATIONS

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENTS AND CONCENTRATIONS

NOTE 5 SEGMENTS AND CONCENTRATIONS

The Company has three reportable segments: OEM distribution, retail distribution and design. See Note 2 for more information on the composition and accounting policies of our reportable segments.

Our chief operating decision maker (“CODM”) regularly reviews revenue and operating income for each segment to assess financial results and allocate resources. In Fiscal 2021, due to the growth of our retail division, we determined it to be a separate reportable segment. For our OEM and retail distribution segments, we exclude general and administrative and general corporate expenses from their measure of profitability as these expenses are not allocated to the segments and therefore not included in the measure of profitability used by the CODM. For the design segment, general and administrative expenses directly attributable to that segment are included in its measure of profitability as these expenses are included in the measure of its profitability reviewed by the CODM. We do not include intercompany activity in our segment results shown below to be consistent with the information that is presented to the CODM. Segment assets consist of accounts receivable and inventory, which are regularly reviewed by the CODM, as well as goodwill and intangible assets resulting from design segment acquisitions.

The results of operations for the three months ended December 31, 2020 for each segment discussed below have been reformatted from what was previously disclosed to segregate the retail distribution segment and exclude general corporate expenses from segment operating income to show them as a reconciling item so that results are comparable to the current period presentation.

Information by segment and related reconciliations are shown in tables below:

	For the Three Months Ended December 31,
	2021			2020
Revenues:
OEM distribution	$	5,242,000		$	5,214,000
Retail distribution		1,392,000			392,000
Design		4,980,000			4,112,000
Total segment revenues	$	11,614,000		$	9,718,000
Operating Income/(Loss):
OEM distribution	$	497,000		$	417,000
Retail distribution		(228,000	)		(179,000	)
Design		585,000			177,000
Total segment operating income		854,000			415,000
General corporate expenses		(640,000	)		(582,000	)
Total income/(loss) from operations		214,000			(167,000	)
Other expense/(income), net		34,000			(1,366,000	)
Income before income taxes	$	180,000		$	1,199,000
Depreciation and Amortization:
OEM distribution	$	2,000		$	2,000
Design		71,000			92,000
Total depreciation and amortization	$	73,000		$	94,000

	December 31, 2021		September 30, 2021
Segment Assets:
OEM distribution	$	5,218,000	$	5,898,000
Retail distribution		3,217,000		2,178,000
Design		6,349,000		5,824,000
Total segment assets		14,784,000		13,900,000
General corporate assets		7,194,000		5,956,000
Total assets	$	21,978,000	$	19,856,000

For the three months ended December 31, 2021 and 2020, the Company had two significant customers in the OEM distribution segment whose individual percentage of the Company’s consolidated revenues was 10% or greater. Revenues from these customers or their affiliates or contract manufacturers were $1,566,000 and $1,357,000 for the three months ended December 31, 2021 and $1,574,000 and $1,280,000 for the three months ended December 31, 2020.

At December 31, 2021 and September 30, 2021, the Company had customers in the OEM distribution segment whose accounts receivable balance accounted for 10% or more of the Company’s consolidated accounts receivable. Accounts receivable from these customers or their affiliates or contract manufacturers were $1,386,000 and $891,000 at December 31, 2021 and $1,454,000, $1,259,000 and $1,138,000 at September 30, 2021.