Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Revenue

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Note 5 - Revenue
 6 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
Note
5.
Revenue
 
Revenue Recognition
 
Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of the Company's contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.
 
Disaggregation of Revenue
 
The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to countries in the Caribbean, Canada, Central and South America.
 
Revenues related to the following geographic areas were as follows for the
three
and
six
months ended:
 
    Three Months Ended March 31,   Six Months Ended March 31,
    2021   2020   2021   2020
United States   $
27,743,937
     $
19,489,270
     $
53,776,138
     $
37,731,957
  
All other countries    
1,947,997
      
919,239
      
3,007,943
      
2,054,543
  
Total Net Sales   $
29,691,934
     $
20,408,509
     $
56,784,081
     $
39,786,500
  
 
The Company manufactures and sells a proprietary product line designed for the Broadband Service Provider marketplace. In addition, the Company's Legacy business provides build-to-print services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification.
 
 
The percentages of our sales by markets were as follows for the
three
and
six
months ended:
 
    Three Months Ended March 31,   Six Months Ended March 31,
    2020   2020   2020   2020
Broadband service providers    
97
 %    
96
 %    
98
 %    
95
 %
Legacy customers    
3
 %    
4
 %    
2
 %    
5
 %
Total Net Sales    
100
 %    
100
 %    
100
 %    
100
 %
 
Broadband Service Providers are made up of Community Broadband, which includes local and regional telecom companies, utilities, municipalities and alternative carriers, multiple system operators (“MSO's, or Cable TV”), which are also referred to as Tier
2
and Tier
3
customers; National Carriers, which includes
large national and global wireline and wireless providers also referred to as Tier
1's
; and International customers.
 
Accounts Receivable
 
Credit is extended based on the evaluation of a customer's financial condition, and collateral is generally
not
required. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of
March 31, 2021
and
September 30, 2020,
the balance in the allowance for doubtful accounts was
$79,473
and
$289,085,
respectively. The allowance for doubtful accounts decreased by the amount recovered during the
three
months ended
March 31, 2021
on an account previously reserved.
 
See Note
7,
“Major Customer Concentration” for further information regarding accounts receivable and net sales.