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SEGMENTS AND CONCENTRATIONS | 9 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
SEGMENTS AND CONCENTRATIONS | NOTE 5 SEGMENTS AND CONCENTRATIONS As a result of discontinuing the retail segment (see Note 3), the Company now has two reportable segments: OEM distribution and design. The results of the retail segment are 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 segment, we exclude general and administrative and general corporate expenses from its 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 |  |  |  |  |  |  |  |
|  | For the Three Months Ended June 30, |  | For the Nine Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenues: |  |  |  |  |  |  |  |
OEM distribution |  | $ | 2,851,000 |  |  | $ | 2,930,000 |  |  | $ | 7,620,000 |  |  | $ | 11,364,000 |
Design |  |  | 5,036,000 |  |  |  | 5,777,000 |  |  |  | 15,249,000 |  |  |  | 16,835,000 |
Total segment revenues |  | $ | 7,887,000 |  |  | $ | 8,707,000 |  |  | $ | 22,869,000 |  |  | $ | 28,199,000 |
Operating income / (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | 138,000 |  |  | $ | 161,000 |  |  | $ | 291,000 |  |  | $ | 303,000 |
Design |  |  | 57,000 |  |  |  | 576,000 |  |  |  | 266,000 |  |  |  | 1,539,000 |
Total segment operating income |  |  | 195,000 |  |  |  | 737,000 |  |  |  | 557,000 |  |  |  | 1,842,000 |
General corporate expenses |  |  | (577,000 | ) |  |  | (588,000 | ) |  |  | (1,858,000 | ) |  |  | (1,913,000 | )
Operating (loss) / income from continuing operations before income taxes |  |  | (382,000 | ) |  |  | 149,000 |  |  |  | (1,301,000 | ) |  |  | (71,000 | )
Other expense / (income), net |  |  | (5,000 | ) |  |  | 15,000 |  |  |  | 3,000 |  |  |  | 5,000 |
(Loss) / income from continuing operations before income taxes |  | $ | (377,000 | ) |  | $ | 134,000 |  |  | $ | (1,304,000 | ) |  | $ | (76,000 | )
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OEM distribution |  | $ | – |  |  | $ | 1,000 |  |  | $ | 4,000 |  |  | $ | 3,000 |
Design |  |  | 83,000 |  |  |  | 78,000 |  |  |  | 245,000 |  |  |  | 232,000 |
Total depreciation and amortization |  | $ | 83,000 |  |  | $ | 79,000 |  |  | $ | 249,000 |  |  | $ | 235,000 |
Schedule of segment assets |  |  |  |  |  |  |  |
|  | June 30, 2024 |  | September 30, 2023
Segment Assets: |  |  |  |  |  |  |  |
OEM distribution |  | $ | 2,796,000 |  |  | $ | 2,478,000 |
Design |  |  | 6,426,000 |  |  |  | 6,721,000 |
Total segment assets |  |  | 9,222,000 |  |  |  | 9,199,000 |
General corporate assets |  |  | 6,004,000 |  |  |  | 6,924,000 |
Discontinued assets held for sale |  |  | – |  |  |  | 508,000 |
Other assets of discontinued retail segment |  |  | – |  |  |  | 755,000 |
Total assets |  | $ | 15,226,000 |  |  | $ | 17,386,000 |
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 one customer or their affiliates or contract manufacturers represented 14.7% and 10.3% of the Company’s consolidated net revenues for the three months ended June 30, 2024 and 2023, respectively. Revenues from one customer or their affiliates or contract manufacturers represented 12.6% of the Company’s consolidated net revenues for the nine months ended June 30, 2024 and revenues from two customers or their affiliates or contract manufacturers represented 21.1% of the Company’s consolidated net revenues for the nine months ended June 30, 2023. For the three and nine months ended June 30, 2024 and 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 23.9% and 35.0% of the Company’s consolidated net revenues for the three months ended June 30, 2024 and 2023, respectively. Revenues from this customer represented 26.3% and 25.4% of the Company’s consolidated net revenues for the nine months ended June 30, 2024 and 2023, respectively. At June 30, 2024 and September 30, 2023, 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. One customer or its affiliate or contract manufacturer represented 17.8% and 12.0% of the Company’s consolidated accounts receivable at June 30, 2024 and September 30, 2023, respectively. At June 30, 2024 and September 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 19.7% and 31.1%, respectively, of the Company’s consolidated accounts receivable at June 30, 2024 and September 30, 2023. 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 approximated 2.0% and 10.0% of our consolidated net revenues for the three and nine months ended June 30, 2023, respectively. The Company expects the loss of this customer to continue to cause a significant decline in OEM distribution segment revenues in future periods.

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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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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