Note 2 - Revenue Recognition

9 Months Ended

Jun. 30, 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 a customer in Asia for its recycling program and, to a substantially lesser extent, other international regions for equipment sales that utilize the same technology, which totaled approximately

$0.7

million and

$0.6

million for the

three

months ended

June 30, 2020

and

2019,

respectively, and

$1.5

million and

$1.6

million for the

nine

months ended

June 30, 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

14%

of consolidated revenues for the

nine

months ended

June 30, 2020.

Our sales by type were as follows:

	Three Months Ended June 30,						Nine Months Ended June 30,
	2020			2019			2020			2019
Wireless services sales	$	5,123,176		$	8,733,444		$	16,592,907		$	12,951,368
Equipment sales:
Telco		6,147,676			7,989,318			19,912,137			22,876,047
Intersegment		(23,033	)		(5,305	)		(23,033	)		(49,452	)
Telco repair sales		33,236			31,142			49,438			36,542
Telco recycle sales		740,765			810,716			1,411,854			1,444,847
Total sales	$	12,021,820		$	17,559,315		$	37,943,303		$	37,259,352

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

June 30, 2020

and

September 30, 2019,

contract assets were

$0.7

million and

$2.7

million, respectively, and contract liabilities were

$0.2

million and

$0.1

million, respectively. The Company recognized the entire

$0.1

million of contract revenue during the

nine

months ended

June 30, 2020

related to contract liabilities recorded in Deferred revenue at

September 30, 2019.

For the

three

months ended

June 30, 2020,

the Company recognized

$0.5

million of revenue in its Wireless segment associated with adjustments to constrained variable consideration from change orders related to several projects for which the costs had been recognized in prior quarters.