Note 8 - Segment Information

9 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 8 – 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 and nine month periods ending December 31, 2013 and 2012:

Three Months Ended  December 31, 2013	Avionics  Government		Avionics  Commercial		Avionics  Total		Corporate  Items		Total
Net sales		3,797,272		291,757		4,089,029		-		4,089,029
Cost of Sales		2,415,427		277,915		2,693,342		-		2,693,342
Gross Margin		1,381,845		13,842		1,395,687		-		1,395,687
Engineering, research, and development						449,477				449,477
Selling, general and administrative						375,255		322,664		697,919
Amortization of debt discount								27,120		27,120
Amortization of deferred financing costs								27,826		27,826
Change in fair value of common stock warrants								229,726		229,726
Interest expense, net								50,700		50,700
Total expenses						824,732		658,036		1,482,768
Income (loss) before income taxes						570,955		(658,036)		(87,081	)

Three Months Ended  December 31, 2012	Avionics Government		Avionics Commercial		Avionics Total			Corporate Items			Total
Net sales		1,828,941		521,079		2,350,020			-			2,350,020
Cost of Sales		1,480,584		416,068		1,896,652			-			1,896,652
Gross Margin		348,357		105,011		453,368			-			453,368
Engineering, research, and development						481,055						481,055
Selling, general, and administrative						264,627			322,519			587,146
Amortization of debt discount									37,948			37,948
Amortization of deferred financing costs									68,384			68,384
Financing costs									21,441			21,441
Change in fair value of common stock warrants									(19,710	)		(19,710	)
Interest (income) expense, net									126,069			126,069
Total expenses						745,682			556,651			1,302,333
Loss before income taxes						(292,314	)		(556,651	)		(848,965	)

Nine Months Ended  December 31 2013	Avionics  Government		Avionics  Commercial		Avionics  Total		Corporate  Items			Total
Net sales		10,054,033		1,269,552		11,323,585		-			11,323,585
Cost of Sales		6,497,178		968,813		7,465,991		-			7,465,991
Gross Margin		3,556,855		300,739		3,857,594		-			3,857,594
Engineering, research, and development						1,378,426					1,378,426
Selling, general and administrative						933,033		1,089,546			2,022,579
Amortization of debt discount								75,707			75,707
Amortization of deferred financing costs								81,986			81,986
Loss on extinguishment of debt								26,600			26,600
Change in fair value of common stock warrants								272,499			272,499
Interest expense, net								252,133			252,133
Total expenses						2,311,459		1,798,471			4,109,930
Income (loss) before income taxes						1,546,135		(1,798,471	)		(252,336	)

Nine Months Ended  December 31, 2012	Avionics  Government		Avionics  Commercial		Avionics  Total			Corporate  Items			Total
Net sales		4,226,451		1,695,807		5,922,258			-			5,922,258
Cost of Sales		3,051,873		1,530,900		4,582,773			-			4,582,773
Gross Margin		1,174,578		164,907		1,339,485			-			1,339,485
Engineering, research, and development						1,608,459			-			1,608,459
Selling, general and administrative						891,764			1,035,616			1,927,380
Amortization of debt discount									82,349			82,349
Amortization of deferred financing costs									152,175			152,175
Financing costs									47,918			47,918
Change in fair value of common stock warrants									(268,767	)		(268,767	)
Interest expense, net									349,556			349,556
Total expenses						2,500,223			1,398,847			3,899,070
Income (loss) before income taxes						(1,160,738	)		(1,398,847	)		(2,559,585	)