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SEGMENTS AND CONCENTRATIONS | 12 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
SEGMENTS AND CONCENTRATIONS | NOTE 16 SEGMENTS AND CONCENTRATIONS Segments As a result of discontinuing the retail segment, see Note 3, the Company now has two reportable segments: OEM distribution and design. See Note 2 for more information on the composition and accounting policies of our reportable segments. The results of the retail segment were classified as discontinued operations as discussed in Note 3. Segment information presented herein excludes the results of the retail segment for all periods presented. 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 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 and related reconciliations |  |  |  |  |  |  |  |
|  | Revenues |
|  | Fiscal 2024 |  |  | Fiscal 2023 |
OEM distribution |  | $ | 10,204,000 |  |  | $ | 14,002,000 |
Design |  |  | 19,991,000 |  |  |  | 22,686,000 |
Total segment revenues |  | $ | 30,195,000 |  |  | $ | 36,688,000 |
|  | Operating Income/(Loss) |
|  | Fiscal 2024 |  |  | Fiscal 2023 |
OEM distribution |  | $ | 369,000 |  |  | $ | 440,000 |
Design |  |  | 26,000 |  |  |  | 2,182,000 |
Total segment operating income |  |  | 395,000 |  |  |  | 2,622,000 |
General corporate expenses |  |  | (2,327,000 | ) |  |  | (2,462,000 | )
Operating (loss)/income from continuing operations before income taxes |  |  | (1,932,000 | ) |  |  | 160,000 |
Other income, net |  |  | (7,000 | ) |  |  | (19,000 | )
(Loss)/income from continuing operations before income taxes |  | $ | (1,925,000 | ) |  | $ | 179,000 |
|  | Depreciation and Amortization |
|  | Fiscal 2024 |  |  | Fiscal 2023 |
OEM distribution |  | $ | 4,000 |  |  | $ | 4,000 |
Design |  |  | 329,000 |  |  |  | 312,000 |
Total |  | $ | 333,000 |  |  | $ | 316,000 |
Schedule of condensed balance sheet |  |  |  |  |  |  |  |
|  | Segment Assets |
|  | September 30, |
|  | 2024 |  |  | 2023 |
OEM distribution |  | $ | 2,614,000 |  |  | $ | 2,478,000 |
Design |  |  | 5,820,000 |  |  |  | 6,721,000 |
Total segment assets |  |  | 8,434,000 |  |  |  | 9,199,000 |
General corporate assets |  |  | 6,334,000 |  |  |  | 6,924,000 |
Discontinued assets held for sale |  |  | – |  |  |  | 508,000 |
Other assets of discontinued retail segment |  |  | – |  |  |  | 755,000 |
Total assets |  | $ | 14,768,000 |  |  | $ | 17,386,000 |
Geographic Concentrations The Company’s long-lived assets consist of property and equipment and operating lease right-of-use assets, all of which are located in the United States. The following table sets forth our consolidated net revenues by country for Fiscal 2024 and Fiscal 2023:
Schedule of consolidated net revenues |  |  |  |  |  |  |  |
|  | Revenues |
|  | Fiscal 2024 |  |  | Fiscal 2023 |
United States |  | $ | 23,593,000 |  |  | $ | 27,116,000 |
Poland |  |  | 2,797,000 |  |  |  | 1,275,000 |
Germany |  |  | 1,276,000 |  |  |  | 3,000,000 |
China |  |  | 435,000 |  |  |  | 3,443,000 |
Other foreign countries |  |  | 2,094,000 |  |  |  | 1,854,000 |
Total |  | $ | 30,195,000 |  |  | $ | 36,688,000 |
Customer Concentrations The Company had certain customers in the OEM distribution segment whose individual percentage of the Company’s consolidated revenues was 10% or greater. Revenue from one of these customers or their affiliates or contract manufacturers represented 13.0% and 11.2% of the Company’s consolidated net revenues in Fiscal 2024 and Fiscal 2023, respectively. 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 25.2% and 27.9% of the Company’s consolidated net revenues in Fiscal 2024 and Fiscal 2023, respectively. In December 2024, our largest design customer notified the Company of its plan to discontinue their insulin patch program, on which the Company was working. We expect this to cause a material decrease in our revenues beginning with the second quarter of fiscal 2025. We are currently working on cost reduction efforts to mitigate the reduction in revenue, including a reduction in force which was communicated in December 2024. See Note 1. The Company had customers in the OEM distribution segment whose accounts receivable balances accounted for 10% or more of the Company’s consolidated accounts receivable. One customer or its affiliate or contract manufacturer represented 14.5% and 12.0% of the Company’s consolidated accounts receivable at September 30, 2024 and 2023, respectively. At September 30, 2024, the Company had one customer in the design segment whose accounts receivable balances accounted for 10% or more of the Company’s consolidated accounts receivable. Accounts receivable from this customer represented 19.0% and 31.1% of the Company’s consolidated accounts receivable at September 30, 2024 and 2023, respectively. Supplier Concentration The Company’s OEM distribution segment procures substantially all its products through independent suppliers in China through Forward China (see Note 14). Depending on the product, Forward China may require several different suppliers to furnish component parts or pieces.

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- Definition The entire disclosure for reporting segments including data and tables. 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