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SEGMENTS AND CONCENTRATIONS | 6 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
SEGMENTS AND CONCENTRATIONS |
NOTE 5 | SEGMENTS AND CONCENTRATIONS
The Company has three reportable segments: OEM distribution, retail distribution and design. See Note 2 for more information on the composition and accounting policies of our reportable segments. Our chief operating decision maker (“CODM”) regularly reviews revenue and operating income for each segment to assess financial results and allocate resources. In Fiscal 2021, due to the growth of our retail division, we determined it to be a separate reportable segment. For our OEM and retail distribution segments, we exclude general and administrative and general corporate expenses from their measure of profitability as these expenses are not allocated to the segments and therefore not included in the measure of profitability used by the CODM. For the design segment, general and administrative expenses directly attributable to that segment are included in its measure of profitability as these expenses are included in the measure of its profitability reviewed by the CODM. We do not include intercompany activity in our segment results shown below to be consistent with the information that is presented to the CODM. Segment assets consist of accounts receivable and inventory, which are regularly reviewed by the CODM, as well as goodwill and intangible assets resulting from design segment acquisitions. The results of operations for the three and six months ended March 31, 2021 for each segment discussed below have been reformatted from what was previously disclosed to segregate the retail distribution segment and exclude general corporate expenses from segment operating income to show them as a reconciling item so that results are comparable to the current period presentation. Information by segment and related reconciliations are shown in tables below:
Segment operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended March 31, |  |  | For the Six Months Ended March 31, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 4,676,000 |  |  | $ | 4,254,000 |  |  | $ | 9,917,000 |  |  | $ | 9,467,000 |
Retail distribution |  |  | 649,000 |  |  |  | 229,000 |  |  |  | 2,041,000 |  |  |  | 621,000 |
Design |  |  | 4,990,000 |  |  |  | 3,912,000 |  |  |  | 9,970,000 |  |  |  | 8,025,000 |
Total segment revenues |  | $ | 10,315,000 |  |  | $ | 8,395,000 |  |  | $ | 21,928,000 |  |  | $ | 18,113,000 |
Operating income/(loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 326,000 |  |  | $ | 302,000 |  |  | $ | 823,000 |  |  | $ | 719,000 |
Retail distribution |  |  | (356,000 | ) |  |  | (210,000 | ) |  |  | (584,000 | ) |  |  | (389,000 | )
Design |  |  | 389,000 |  |  |  | (288,000 | ) |  |  | 974,000 |  |  |  | (112,000 | )
Total segment operating income/(loss) |  |  | 359,000 |  |  |  | (196,000 | ) |  |  | 1,213,000 |  |  |  | 218,000 |
General corporate expenses |  |  | (682,000 | ) |  |  | (620,000 | ) |  |  | (1,322,000 | ) |  |  | (1,202,000 | )
Total loss from operations |  |  | (323,000 | ) |  |  | (816,000 | ) |  |  | (109,000 | ) |  |  | (984,000 | )
Other expense/(income), net |  |  | 33,000 |  |  |  | 19,000 |  |  |  | 67,000 |  |  |  | (1,348,000 | )
(Loss)/income before income taxes |  | $ | (356,000 | ) |  | $ | (835,000 | ) |  | $ | (176,000 | ) |  | $ | 364,000 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 3,000 |  |  | $ | 2,000 |  |  | $ | 4,000 |  |  | $ | 4,000 |
Design |  |  | 80,000 |  |  |  | 77,000 |  |  |  | 153,000 |  |  |  | 168,000 |
Total depreciation and amortization |  | $ | 83,000 |  |  | $ | 79,000 |  |  | $ | 157,000 |  |  | $ | 172,000 |
Schedule of segment assets |  |  |  |  |  |
|  | March 31, 2022 |  |  | September 30, 2021 |
Segment Assets: |  |  |  |  |  |  |  |
OEM distribution |  | $ | 5,577,000 |  |  | $ | 5,898,000 |
Retail distribution |  |  | 3,662,000 |  |  |  | 2,178,000 |
Design |  |  | 6,316,000 |  |  |  | 5,824,000 |
Total segment assets |  |  | 15,555,000 |  |  |  | 13,900,000 |
General corporate assets |  |  | 6,418,000 |  |  |  | 5,956,000 |
Total assets |  | $ | 21,973,000 |  |  | $ | 19,856,000 |
The Company had certain customers in the OEM distribution segment whose individual percentage of the Company’s consolidated revenues was 10% or greater. Revenues from two customers or their affiliates or contract manufacturers represented 26.2% and 25.7%, respectively, of the Company’s consolidated revenues for the three and six months ended March 31, 2022. Revenues from three customers or their affiliates or contract manufacturers represented 40.4% of the Company’s consolidated revenues for the three months ended March 31, 2021 and revenues from two customers or their affiliates or contract manufacturers represented 29.7% of the Company’s consolidated revenues for the six months ended March 31, 2021. For the three and six months ended March 31, 2022, the Company had one customer in the design segment whose individual percentage of the Company’s consolidated revenues was 10% or greater. Revenues from this customer represented 11.7% and 10.2%, respectively, of the Company’s consolidated revenues for the three and six months ended March 31, 2022. There were no customers in the design segment whose individual percentage of the Company’s consolidated revenues was 10% or greater during the three or six months ended March 31, 2021. At March 31, 2022 and September 30, 2021, the Company had customers in the OEM distribution segment whose accounts receivable balance accounted for 10% or more of the Company’s consolidated accounts receivable. Accounts receivable from two customers or their affiliates or contract manufacturers represented 34.8% of the Company’s consolidated accounts receivable at March 31, 2022 and revenues from three customers or their contract manufacturers represented 44.0% of the Company’s consolidated accounts receivable at September 30, 2021.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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