Note 14 - Segment Reporting

9 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

14

– Segment Reporting

The Company is reporting its financial performance based on its external reporting segments: Wireless Infrastructure Services and Telecommunications. These reportable segments are described below.

Wireless Infrastructure Services (“Wireless”)

The Wireless segment provides turn-key wireless infrastructure services for the

four

major U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers that support these wireless carriers. These services primarily consist of the installation and upgrade of technology on cell sites and the construction of new small cells for

5G.

Telecommunications (“Telco”)

The Company's Telco segment sells new and refurbished telecommunications networking equipment, including both central office and customer premise equipment, to its customer base of telecommunications providers, enterprise customers and resellers located primarily in North America. This segment also offers its customers repair and testing services for telecommunications networking equipment. In addition, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program.

The Company evaluates performance and allocates its resources based on operating income. The accounting policies of its reportable segments are the same as those described in the summary of significant accounting policies. Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, property and equipment, goodwill and intangible assets.

	Three Months Ended						Nine Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Sales
Wireless	$	5,123,175		$	8,733,444		$	16,592,907		$	12,951,368
Telco		6,898,645			8,825,871			21,350,396			24,307,984
Total sales	$	12,021,820		$	17,559,315		$	37,943,303		$	37,259,352
Gross profit
Wireless	$	2,251,153		$	2,235,406		$	4,298,915		$	3,524,164
Telco		1,919,426			2,351,999			3,025,009			6,263,146
Total gross profit	$	4,170,579		$	4,587,405		$	7,323,924		$	9,787,310
Loss from operations
Wireless	$	(253,416	)	$	(454,672	)	$	(4,136,645	)	$	(1,568,255	)
Telco		(896,561	)		201,593			(13,483,096	)		(1,042,122	)
Total loss from operations	$	(1,149,977	)	$	(253,079	)	$	(17,619,741	)	$	(2,610,377	)

	June 30, 2020		September 30, 2019
Segment assets
Wireless	$	5,082,120	$	5,515,793
Telco		12,274,168		22,619,565
Non-allocated		18,753,302		8,692,986
Total assets	$	36,109,590	$	36,828,344