Note 2 - Revenue Recognition

6 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note

2

– Revenue Recognition

The Company’s principal sales are from Wireless services, sales of Telco equipment and Telco recycled equipment. Sales are primarily to customers in the United States. International sales are made by the Telco segment to customers in Central America, South America and, to a substantially lesser extent, other international regions that utilize the same technology which totaled approximately

$0.4

million and

$0.5

million for the

three

months ended

March 31, 2020

and

2019,

respectively, and

$0.8

million and

$1.0

million for the

six

months ended

March 31, 2020

and

2019,

respectively.

The Company’s customers include wireless carriers, wireless equipment providers, multiple system operators, resellers and direct sales to end-user customers. Sales to the Company’s largest customer totaled approximately

10%

of consolidated revenues for the

six

months ended

March 31, 2020.

Our sales by type were as follows:

	Three Months Ended March 31,					Six Months Ended March 31,
	2020		2019			2020		2019
Wireless services sales	$	4,671,850	$	4,217,924		$	11,469,731	$	4,217,924
Equipment sales:
Telco		6,981,478		8,258,719			13,764,461		14,878,129
Intersegment		‒		(3,905	)		‒		(44,147	)
Telco repair sales		7,792		10,400			16,202		14,000
Telco recycle sales		298,005		406,802			671,089		634,131
Total sales	$	11,959,125	$	12,889,940		$	25,921,483	$	19,700,037

The timing of revenue recognition from the wireless segment results in contract assets and contract liabilities.  Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, the Company sometimes receives advances or deposits from customers before revenue is recognized, resulting in contract liabilities.  Contract assets and contract liabilities are included in Unbilled revenue and Deferred revenue, respectively, in the consolidated condensed balance sheets. At

March 31, 2020

and

September 30, 2019,

contract assets were

$1.7

million and

$2.7

million, respectively, and contract liabilities were

$1.0

million and

$0.1

million, respectively. The Company recognized the entire

$0.1

million of contract revenue during the

six

months ended

March 31, 2020

related to contract liabilities recorded in Deferred revenue at

September 30, 2019.