Note 4 - Inventories

9 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 4 – Inventories

Inventories at June 30, 2014 and September 30, 2013 are as follows:

	June 30, 2014			September 30, 2013
New	$	18,695,780		$	15,679,789
Refurbished		7,232,401			3,931,917
Allowance for excess and obsolete inventory		(2,200,000	)		(1,600,000	)
	$	23,728,181		$	18,011,706

New inventory includes products purchased from the manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators.  Refurbished inventory includes factory refurbished, Company refurbished and used products. Generally, the Company does not refurbish its used inventory until there is a sale of that product or to keep a certain quantity on hand. The refurbished inventory at June 30, 2014 includes $3.3 million from the Nave Communications acquisition.

The Company regularly reviews the cable television segment inventory quantities on hand, and an adjustment to cost is recognized when the loss of usefulness of an item or other factors, such as obsolete and excess inventories, indicate that cost will not be recovered when an item is sold.  The Company recorded charges to allow for cable television obsolete inventory, increasing the cost of sales by approximately $0.5 million for the nine months ended June 30, 2014, and 2013. Any obsolete and excess telecommunications inventory is processed through Nave Communications’ recycling program.