18. Segment Information

12 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

18.                 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. Segment assets include accounts receivable and work-in-process inventory. Asset information, other than accounts receivable and work-in-process inventory, is not reported, since the Company does not produce such information internally.  All long-lived assets are located in the U.S.

The table below presents information about reportable segments for the years ended March 31:

2014	Avionics Government		Avionics Commercial		Avionics Total		Corporate/ Reconciling Items			Total
Net sales	$	13,726,976	$	1,774,520	$	15,501,496	$	326,795	(1)	$	15,828,291
Cost of Sales		8,003,137		1,461,267		9,464,404		-			9,464,404
Gross Margin		5,723,839		313,253		6,037,092		326,795			6,363,887
Engineering, research, and Development						1,853,338		-			1,853,338
Selling, general, and administrative						1,372,342		1,774,305			3,146,647
Amortization of debt discount						-		104,644			104,644
Amortization of deferred financing costs						-		108,321			108,321
Change in fair value of common stock warrant						-		114,869			114,869
Loss on extinguishment of debt					-			26,600			26,600
Interest expense, net					-			305,095			305,095
						3,225,680		2,433,834			5,659,514
Income (loss) before income taxes					$	2,811,412	$	(2,107,039	)	$	704,373
Segment Assets	$	5,801,273	$	319,758	$	6,121,031	$	4,513,322		$	10,634,353

(1) Represents sale of intellectual property

2013	Avionics Government		Avionics Commercial		Avionics Total			Corporate/ Reconciling Items			Total
Net sales	$	5,779,947	$	2,047,311	$	7,827,258		$	-		$	7,827,258
Cost of Sales		4,934,322		1,931,714		6,866,036			-			6,866,036
Gross Margin		845,625		115,597		961,222			-			961,222
Engineering, research, and Development						2,149,591						2,149,591
Selling, general, and administrative						1,162,608			1,402,029			2,564,637
Amortization of debt discount						-			129,763			129,763
Amortization of deferred financing costs						-			219,662			219,662
Change in fair value of     common stock warrant						-			(294,785	)		(294,785	)
Loss on extinguishment of debt						-			-			-
Interest expense, net					-				508,505			508,505
						3,312,199			1,965,174			5,277,373
Loss before income taxes					$	(2,350,977	)	$	(1,965,174	)	$	(4,316,151	)
Segment Assets	$	5,191,777	$	1,651,204	$	6,848,981		$	5,070,453		$	11,919,434