Note 5 - Inventories

6 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note

5

–

Inventories

Inventories, which are all within the Telco segment, at

March 31, 2020

and

September 30, 2019

are as follows:

	March 31, 2020			September 30, 2019
New equipment	$	946,878		$	1,496,145
Refurbished and used equipment		7,859,303			7,404,428
Allowance for excess and obsolete inventory		(3,400,000	)		(1,275,000	)
Total inventories, net	$	5,406,181		$	7,625,573

New equipment includes products purchased from manufacturers plus “surplus-new”, which are unused products purchased from other distributors or multiple system operators.  Refurbished and used equipment includes factory refurbished, Company refurbished and used products.

The Telco segment identified certain inventory that more than likely will

not

be sold or that the cost will

not

be recovered when it is processed through its recycling program and recorded a

$2.1

million expense in Cost of sales to increase the allowance for excess and obsolete inventory.  Therefore, the Company has a

$3.4

million and a

$1.3

million allowance at

March 31, 2020

and

September 30, 2019,

respectively.