Note 7 - Segment Information

3 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 7 – Segment Information

In accordance with FASB ASC 280, “Disclosures about Segments of an Enterprise and related information”, the Company determined it has two reportable segments - avionics government and avionics commercial.  There are no inter-segment revenues.

The Company is organized primarily on the basis of its avionics products.  The avionics government segment consists primarily of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries either directly or through distributors.  The avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines, directly or through commercial distributors, and to general aviation repair and maintenance shops.  The Company develops and designs test equipment for the avionics industry and as such, the Company’s products and designs cross segments.

Management evaluates the performance of its segments and allocates resources to them based on gross margin.  The Company’s general and administrative costs and sales and marketing expenses, and engineering costs are not segment specific.  As a result, all operating expenses are not managed on a segment basis.  Net interest includes expenses on debt and income earned on cash balances, both maintained at the corporate level.

The table below presents information about reportable segments within the avionics business for the three month periods ending June 30, 2013 and 2012:

Three Months Ended  June 30, 2013	Avionics  Government		Avionics  Commercial		Avionics  Total		Corporate  Items			Total
Net sales		2,802,842		397,133		3,199,975		-			3,199,975
Cost of Sales		1,662,246		351,571		2,013,817		-			2,013,817
Gross Margin		1,140,596		45,562		1,186,158		-			1,186,158
Engineering, research, and development						480,377					480,377
Selling, general and administrative						264,145		389,105			653,250
Amortization of debt discount								22,987			22,987
Amortization of deferred financing costs								27,080			27,080
Loss on extinguishment of debt								26,600			26,600
Change in fair value of common stock warrants								(24,572	)		(24,572	)
Interest expense, net								104,077			104,077
Total expenses						744,522		545,277			1,289,799
Income (loss) before income taxes						441,636		(545,277	)		(103,641	)

Three Months Ended June 30, 2012	Avionics Government		Avionics Commercial		Avionics Total			Corporate Items			Total
Net sales		549,966		627,322		1,177,288			-			1,177,288
Cost of Sales		315,929		577,665		893,594			-			893,594
Gross Margin		234,037		49,657		283,694			-			283,694
Engineering, research, and development						578,604						578,604
Selling, general, and administrative						316,989			336,899			653,888
Amortization of debt discount									13,392			13,392
Amortization of deferred financing costs									27,080			27,080
Change in fair value of common stock warrants									(249,394	)		(249,394	)
Interest (income) expense, net									92,468			92,468
Total expenses						895,593			220,445			1,116,038
Loss before income taxes						(611,899	)		(220,445	)		(832,344	)