Annual report pursuant to Section 13 and 15(d)

Note E - Concentrations

v3.19.3
Note E - Concentrations
 12 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE E – CONCENTRATIONS
 
Suppliers:
The Company purchases critical components for our products, including injection molded parts and connectors from
third
parties, some of whom are single- or limited-source suppliers. If any of our suppliers are unable to ship critical components, we
may
be unable to manufacture and ship products to our distributors or customers. If the price of these components increases for any reason, or if these suppliers are unable or unwilling to deliver, we
may
have to find another source, which could result in interruptions, increased costs, delays, loss of sales and quality control problems.
 
Customers:
For the fiscal years ended
September 30, 2019,
2018,
and
2017,
the Company had
two
customers that comprised
29%,
33%,
and
35%
of net sales, respectively. Both of these customers are distributors. These major customers, like our other customers, purchase our products from time to time through purchase orders, and we do
not
have any agreements that obligate these major customers to purchase products in the future from us.
 
As of
September 30, 2019,
two
customers accounted for
28%
of accounts receivable. Both of these customers were distributors. As of
September 30, 2018,
two
customers accounted for
45%
of accounts receivable. One of these customers was a distributor and
one
was a private label original equipment manufacturer.
 
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 customers in countries in the Caribbean, Canada, Central and South America.
 
The following table presents our domestic and international sales for each of the last
three
fiscal years:
 
    Year Ended September 30,
    2019   2018   2017
United States   $
78,553,000
     $
72,295,000
     $
67,901,000
  
All Other Countries    
6,481,000
      
5,356,000
      
6,047,000
  
Total Net Sales   $
85,034,000
     $
77,651,000
     $
73,948,000
  
 
Long-lived assets:
As of
September 30, 2019
and
2018,
the Company had property, plant and equipment with a net book value of
$1,406,546
and
$412,755,
respectively, located in Mexico.