CONCENTRATIONS OF CREDIT RISK, CUSTOMERS, AND SUPPLIERS

12 Months Ended

Mar. 31, 2014

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 15 - CONCENTRATIONS OF CREDIT RISK, CUSTOMERS, AND SUPPLIERS

The Company derives a majority of its revenues from retailers of products in the United States. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of accounts receivable. The Company's allowance for doubtful accounts is based upon management's estimates and historical experience and reflects the fact that accounts receivable are concentrated with several large customers whose credit worthiness have been evaluated by management. At March 31, 2014, 80% of accounts receivable were due from three customers in North America. Accounts receivable from customers that individually owed over 10% of total accounts receivable was 40%, 29% and 11% at March 31, 2014. Accounts receivable from customers that individually owed over 10% of total accounts receivable was 53%, 18% and 11% at March 31, 2013. The Company performs ongoing credit evaluations of its customers.

Revenues derived from five customers in 2014, 2013, and 2012 were 74%, 66% and 70% of total revenues, respectively. Revenues derived from top three customers in 2014, 2013 and 2012 as percentage of the total revenue were 26%, 17% and 11%; 23%, 21% and 13%; and 29%, 17% and 15%, respectively. The loss of any of these customers can have an adverse impact on the financial position of the Company.

Net sales derived from the Macau Subsidiary aggregated $9.3 million in 2014, $12.5 million in 2013 and $11.8 million in 2012.

The Company is dependent upon foreign companies for the manufacture of all of its electronic products. The Company's arrangements with manufacturers are subject to the risk of doing business abroad, such as import duties, trade restrictions, work stoppages, foreign currency fluctuations, political instability, and other factors, which could have an adverse impact on its business. The Company believes that the loss of any one or more of their suppliers would not have a long-term material adverse effect because other manufacturers with whom the Company does business would be able to increase production to fulfill their requirements. However, the loss of certain suppliers in the short-term could adversely affect business until alternative supply arrangements are secured.

During fiscal years 2014, 2013, and 2012, manufacturers in the People's Republic of China ("China") accounted for approximately 99% of the Company's total product purchases, including all of the Company's hardware purchases.