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SEGMENTS AND CONCENTRATIONS | 9 Months Ended
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Jun. 30, 2023
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. 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. Information by segment and related reconciliations are shown in tables below:
Schedule of segment operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended June 30, |  |  | For the Nine Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 2,930,000 |  |  | $ | 4,775,000 |  |  | $ | 11,364,000 |  |  | $ | 14,692,000 |
Retail distribution |  |  | 1,420,000 |  |  |  | 878,000 |  |  |  | 3,396,000 |  |  |  | 2,919,000 |
Design |  |  | 5,777,000 |  |  |  | 4,936,000 |  |  |  | 16,835,000 |  |  |  | 14,906,000 |
Total segment revenues |  | $ | 10,127,000 |  |  | $ | 10,589,000 |  |  | $ | 31,595,000 |  |  | $ | 32,517,000 |
Operating income/(loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 163,000 |  |  | $ | 179,000 |  |  | $ | 303,000 |  |  | $ | 1,002,000 |
Retail distribution |  |  | (680,000 | ) |  |  | (397,000 | ) |  |  | (1,742,000 | ) |  |  | (981,000 | )
Design |  |  | 576,000 |  |  |  | 447,000 |  |  |  | 1,539,000 |  |  |  | 1,422,000 |
Total segment operating (loss)/income |  |  | 59,000 |  |  |  | 229,000 |  |  |  | 100,000 |  |  |  | 1,443,000 |
General corporate expenses |  |  | (581,000 | ) |  |  | (615,000 | ) |  |  | (1,933,000 | ) |  |  | (1,937,000 | )
Total loss from operations |  |  | (522,000 | ) |  |  | (386,000 | ) |  |  | (1,833,000 | ) |  |  | (494,000 | )
Other expense, net |  |  | 15,000 |  |  |  | 33,000 |  |  |  | 5,000 |  |  |  | 101,000 |
Loss before income taxes |  | $ | (537,000 | ) |  | $ | (419,000 | ) |  | $ | (1,838,000 | ) |  | $ | (595,000 | )
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 1,000 |  |  | $ | 2,000 |  |  | $ | 3,000 |  |  | $ | 6,000 |
Design |  |  | 78,000 |  |  |  | 75,000 |  |  |  | 232,000 |  |  |  | 228,000 |
Total depreciation and amortization |  | $ | 79,000 |  |  | $ | 77,000 |  |  | $ | 235,000 |  |  | $ | 234,000 |
Schedule of segment assets |  |  |  |  |  |  |  |
|  | June 30, 2023 |  |  | September 30, 2022 |
Segment Assets: |  |  |  |  |  |  |  |
OEM distribution |  | $ | 3,117,000 |  |  | $ | 4,276,000 |
Retail distribution |  |  | 2,661,000 |  |  |  | 3,816,000 |
Design |  |  | 6,479,000 |  |  |  | 6,116,000 |
Total segment assets |  |  | 12,257,000 |  |  |  | 14,208,000 |
General corporate assets |  |  | 6,987,000 |  |  |  | 6,731,000 |
Total assets |  | $ | 19,244,000 |  |  | $ | 20,939,000 |
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 24.2% and 24.1% of the Company’s consolidated net revenues for the three and nine months ended June 30, 2022, respectively. There were no customers in the OEM distribution segment whose individual percentage of the Company’s consolidated revenues was 10% or greater during the three or nine months ended June 30, 2023. For the three and nine months ended June 30, 2023, 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 30.1% and 10.8% of the Company’s consolidated net revenues for the three months ended June 30, 2023 and 2022, respectively, and 22.7% and 10.4% of the Company’s consolidated net revenues for the nine months ended June 30, 2023 and 2022, respectively. At June 30, 2023 and September 30, 2022, 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 one customer or their affiliates or contract manufacturers represented 13.3% of the Company’s consolidated accounts receivable at June 30, 2023 and accounts receivable from two customers or their affiliates or contract manufacturers represented 28.1% of the Company’s consolidated accounts receivable at September 30, 2022. At June 30, 2023, the Company had one customer in the design segment whose accounts receivable balance accounted for 10% or more of the Company’s consolidated accounts receivable. Accounts receivable from this customer represented 26.3% of the Company’s consolidated accounts receivable at June 30, 2023. There were no customers in the design segment whose individual percentage of the Company’s consolidated accounts receivable was 10% or greater at September 30, 2022. In March 2023, the Company’s contract with one of its major diabetic customers in the OEM distribution segment expired. Due to increased pricing pressures, the Company did not extend its contract with this customer. Revenue from this customer represented approximately 12% of our consolidated net revenues for the nine months ended June 30, 2022. The Company expects the loss of this customer to cause a significant decline in OEM distribution segment revenues in future periods. On July 21, 2023, the Company decided to cease its retail distribution operations. The exit from the retail distribution operations will have no effect on the operations of the Company’s design or OEM distribution businesses. The Company is working on a plan that will ensure the transition out of the retail business is done in an orderly manner while also satisfying existing customer obligations. At the time of this filing, the Company does not know the extent, or a range, of the costs that it will incur as a result of the exit.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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