Accounts Receivable and Concentration of Credit Risk |
12 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Accounts Receivable and Concentration of Credit Risk [Abstract] | |
| Accounts Receivable and Concentration of Credit Risk | Note 5 – Accounts Receivable and Concentration of Credit Risk The Company’s standard credit terms vary from 30 to 120 days, depending on the class of trade and customary terms within a territory, so accounts receivable is affected by the mix of sales within the period. As is typical in the Company’s business, extended credit terms may occasionally be offered as a sales promotion or for certain sales. For sales to the Company’s distributor in Brazil, the Company has agreed to credit terms of up to 90 days subsequent to clearance of the product by the Ministry of Health in Brazil. The components of accounts receivable consist of the following at September 30, 2021 and 2020: 2021 2020 Trade receivables, gross$ 8,938,849 $ 5,332,786Less: allowance for doubtful accounts (20,643) (25,643)Less: allowance for sales returns and payment term discounts (123,982) (79,906)Accounts receivable, net$ 8,794,224 $ 5,227,237 No customer had a current accounts receivable balance that represented 10% of current assets at September 30, 2021 and 2020. At September 30, 2021, three customers had an accounts receivable balance greater than 10% of net accounts receivable, representing 90% of net accounts receivable in the aggregate. At September 30, 2020, three customers had an accounts receivable balance greater than 10% of net accounts receivable, representing 89% of the Company’s net accounts receivable in the aggregate. For the year ended September 30, 2021, there were two customers whose individual net revenue to the Company exceeded 10% of the Company’s net revenues, representing 75% of the Company’s net revenues in the aggregate. For the year ended September 30, 2020, there were three customers whose individual net revenue to the Company exceeded 10% of the Company’s net revenues, representing 76% of the Company’s net revenues in the aggregate. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments on accounts receivable. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Management also periodically evaluates individual customer receivables and considers a customer’s financial condition, credit history, and the current economic conditions. Accounts receivable are charged-off when deemed uncollectible. The table below summarizes the change in the allowance for doubtful accounts for the years ended September 30, 2021 and 2020: 2021 2020 Beginning balance $ 25,643 $ 33,143Charge-offs, net of recoveries (5,000) (7,500)Ending balance $ 20,643 $ 25,643 Recoveries of accounts receivable previously charged-off are recorded when received. The Company’s customers are primarily health care distributors, large global agencies, non-government organizations, ministries of health and other governmental agencies which purchase and distribute FC2 for use in HIV/AIDS prevention and family planning programs and, in the U.S. prescription channel, telemedicine providers. |