Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

We consider all highly liquid investments with maturities of

three

months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value because of the short maturity of these instruments. Fair values of marketable securities are based on quoted market prices.

Concentration Of Risk and Financial Instruments Policy [Policy Text Block]

Concentration of Risk and Financial Instruments

Financial instruments potentially subject to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, and accounts receivable.

Cash and cash equivalents have been maintained in financial institutions we believe have high credit quality, however these accounts are generally in excess of federally insured amounts.

We have invested our excess cash in corporate-backed and municipal-backed bonds and money market instruments. Our investment policy prescribes purchases of only high-grade securities, and limits the amount of credit exposure to any

one

issuer. The effects of the COVID-

19

pandemic have degraded outlooks for some of our securities' issuers, which

may

increase the risk of default on

one

or more securities.
 

Our customers are throughout the world. We generally do

not

require collateral from our customers, but we perform ongoing credit evaluations of their financial condition. More information on accounts receivable is contained in the paragraph titled “Accounts Receivable and Allowance for Doubtful Accounts” of this note. The effects of the COVID-

19

pandemic could increase our bad-debt risk in the future.
 

Additionally, we are dependent on critical suppliers including our packaging vendors and suppliers of certain raw silicon and semiconductor wafers that are incorporated in our products. The effects of the COVID-

19

pandemic have increased the risk of supply interruptions.

Receivable [Policy Text Block]

Accounts Receivable and Allowance for Doubtful Accounts

We grant credit to customers in the normal course of business and at times

may

require customers to prepay for an order prior to shipment. Accounts receivable are recorded net of an allowance for doubtful accounts. We make estimates of the uncollectibility of accounts receivable. We specifically analyze accounts receivable, historical bad debts, and customer creditworthiness when evaluating the adequacy of the allowance. We had

no

charges or provisions to our allowance for doubtful accounts in fiscal

2021

or

2020.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined by the

first

in,

first

out method. We record inventory reserves when we determine certain inventory is unlikely to be sold based on sales trends, turnover, competition, and other market factors.

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty

In general we warranty our products to be free from defects in material and workmanship for

one

year.

Property, Plant and Equipment, Policy [Policy Text Block]

Fixed Assets

Fixed assets are stated at cost. Depreciation of machinery and equipment is recorded over the estimated useful lives of the assets, generally

five

years, using the straight-line method. Amortization of leasehold improvements is recorded using the straight-line method over the lesser of the lease term or

five

-year useful life. We record losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. We did

not

identify any indicators of impairment during fiscal

2021

or

2020.

Depreciation and amortization expense related to fixed assets was

$308,511

for fiscal

2021

and

364,409

for fiscal

2020.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

We recognize revenue when we satisfy performance obligations by the transfer of control of products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Revenue is disaggregated into product sales and contract research and development to depict the nature, amount, timing of revenue recognition and economic characteristics of our business, and is represented within the financial statements.
 

We recognize revenue from product sales to customers and distributors when we satisfy our performance obligation, at a point in time, on product shipment or delivery to our customer or distributor as determined by agreed on shipping terms. Shipping charges billed to customers are included in product sales and the related shipping costs are included in cost of sales. Under certain limited circumstances, our distributors

may

earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with

third

parties. We recognize any such commissions as selling, general, and administrative expenses. We recognize discounts provided to our distributors as reductions in revenue.
 

We recognize contract research and development revenue over a period of time as the performance obligation is satisfied over a period of time rather than a point in time. Contracts have specifications unique to each customer and do

not

create an asset with an alternate use, and we have an enforceable right to payment for performance completed to date. We recognize revenue over a period of time using costs incurred as the measurement of progress towards completion.
 

Accounts receivable is recognized when we have transferred a good or service to a customer and our right to receive consideration is unconditional through the completion of our performance obligation. A contract asset is recognized when we have a right to consideration from the transfer of goods or services to a customer but have

not

completed our performance obligation. A contract liability is recognized when we have been paid by a customer but have

not

yet satisfied the performance obligation by transferring goods or services. We had

no

material contract assets or contract liabilities as of

March 31, 2021

or

March 

31,

2020.

 

Our performance obligations related to product sales and contract research and development contracts are satisfied in

one

year or less. Unsatisfied performance obligations represent contracts with an original expected duration of

one

year or less. As permitted under Accounting Standards Codification (“ASC”) Topic 

606,

Revenue from Contracts with Customers

, we are using the practical expedient

not

to disclose the value of these unsatisfied performance obligations. We also use the practical expedient in which we do

not

assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be

one

year or less.

Income Tax, Policy [Policy Text Block]

Income Taxes

We account for income taxes using the asset and liability method. Deferred income taxes are provided for temporary differences between the financial reporting and tax bases of assets and liabilities. We provide valuation allowances against deferred tax assets if we determine that it is less likely than

not

that we will be able to utilize the deferred tax assets.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expense Recognition

Research and development costs are expensed as they are incurred. Customer-sponsored research and development costs are included in cost of sales.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is generally the vesting period. We recognize any forfeitures as they occur.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Share

Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each year. Net income per diluted share amounts assume exercise of all stock options. The following table shows the components of diluted shares:
 

	Year Ended March 31
	2021		2020
Weighted average common shares outstanding – basic		4,834,054		4,845,627
Dilutive effect of stock options		408		1,667
Shares used in computing net income per share – diluted		4,834,462		4,847,294

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

New Accounting Standards

Not

Yet Adopted

In

December 2019,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2019

-

12,

Income Taxes (Topic

740

)

—

Simplifying the Accounting for Income Taxes

. ASU 

2019

-

12

is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic

740

and amends existing guidance to improve consistent application. ASU

2019

-

12

is effective for fiscal years beginning after

December 15, 2020

and interim periods within those fiscal years, which is fiscal

2022

for us. We do

not

expect adoption of the new guidance to have a significant impact on our financial statements.

In

June 2016,

the FASB issued ASU

No.

 

2016

-

13,

Financial Instruments

—

Credit Losses (Topic

326

), Measurement of Credit Losses on Financial Statements

. ASU 

2016

-

13

requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. In

November 

2018

the FASB issued ASU

No.

 

2018

-

19,

Codification Improvements to Topic

 

326,

Financial Instruments

—

Credit Losses

, which clarifies codification and corrects unintended application of the guidance, and in

November 2019,

the FASB issued ASU

No.

 

2019

-

11,

Codification Improvements to Topic

326,

Financial Instruments-Credit Losses

, which clarifies or addresses specific issues about certain aspects of ASU 

2016

-

13.

In

November 

2019

the FASB issued ASU

No.

 

2019

-

10,

Financial Instruments

—

Credit Losses (Topic

 

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

 

842

): Effective Dates

, and in

February 2020

the FASB issued ASU

No.

 

2020

-

02,

Financial Instruments

—

Credit Losses (Topic

 

326

) and Leases (Topic

842

): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

 

119

and Update to SEC Section on Effective Date Related to Accounting Standards Update

No.

 

2016

-

02,

Leases (Topic

 

842

)

, both of which delay the effective date of ASU 

2016

-

13

by

three

years for certain Smaller Reporting Companies such as us. In

March 

2020,

the FASB issued ASU

No.

 

2020

-

03,

Codification Improvements to Financial Instruments

; which modifies the measurement of expected credit losses of certain financial instruments. In accordance with ASU 

2019

-

10

and ASU 

2020

-

02,

ASU 

2016

-

13

is effective for certain Smaller Reporting Companies for financial statements issued for fiscal years beginning after

December 

15,

2022

and interim periods within those fiscal years, which will be fiscal

2024

for us if we continue to be classified as a Smaller Reporting Company, with early adoption permitted. We do

not

expect adoption of the new guidance to have a significant impact on our financial statements.