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Note 8 - Segment Information
6 Months Ended
Sep. 30, 2016
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. 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 within the avionics business for the three and six month periods ending September 30, 2016 and 2015:

Three Months Ended
 September 30, 2016
 
Avionics
Government
   
Avionics
Commercial
   
Avionics
Total
   
Corporate
Items
   
Total
 
Net sales
 
$
4,338,764
   
$
737,265
   
$
5,076,029
   
$
-
   
$
5,076,029
 
Cost of sales
   
2,665,561
     
584,880
     
3,250,441
     
-
     
3,250,441
 
Gross margin
   
1,673,203
     
152,385
     
1,825,588
     
-
     
1,825,588
 
 
                                       
Engineering, research, and development
                   
583,771
     
-
     
583,771
 
Selling, general and administrative
                   
346,108
     
529,030
     
875,138
 
Amortization of deferred financing costs
                   
-
     
1,357
     
1,357
 
Change in fair value of common stock warrants
                   
-
     
(34,000
)
   
(34,000
)
Interest expense, net
                   
-
     
17,507
     
17,507
 
Total expenses
                   
929,879
     
513,894
     
1,443,773
 
Income (loss) before income taxes
                 
$
895,709
   
$
(513,894
)
 
$
381,815
 

Three Months Ended
 September 30, 2015
 
Avionics
Government
   
Avionics
Commercial
   
Avionics
Total
   
Corporate
Items
   
Total
 
Net sales
 
$
6,328,752
   
$
489,638
   
$
6,818,390
   
$
-
   
$
6,818,390
 
Cost of sales
   
4,235,118
     
339,806
     
4,574,924
     
-
     
4,574,924
 
Gross margin
   
2,093,634
     
149,832
     
2,243,466
     
-
     
2,243,466
 
 
                                       
Engineering, research, and development
                   
443,656
     
-
     
443,656
 
Selling, general and administrative
                   
344,951
     
538,925
     
883,876
 
Amortization of deferred financing costs
                   
-
     
1,358
     
1,358
 
Change in fair value of common stock warrants
                   
-
     
518,588
     
518,588
 
Interest expense, net
                   
-
     
25,835
     
25,835
 
Total expenses
                   
788,607
     
1,084,706
     
1,873,313
 
 
                                       
Income (loss) before income taxes
                 
$
1,454,859
   
$
(1,084,706
)
 
$
370,153
 

Six Months Ended
 September 30, 2016
 
Avionics
Government
   
Avionics
Commercial
   
Avionics
Total
   
Corporate
Items
   
Total
 
Net sales
 
$
9,210,384
   
$
1,208,014
   
$
10,418,398
   
$
-
   
$
10,418,398
 
Cost of sales
   
5,770,479
     
945,678
     
6,716,157
     
-
     
6,716,157
 
Gross margin
   
3,439,905
     
262,336
     
3,702,241
     
-
     
3,702,241
 
 
                                       
Engineering, research, and development
                   
1,168,648
     
-
     
1,168,648
 
Selling, general and administrative
                   
689,990
     
1,096,892
     
1,786,882
 
Amortization of deferred financing costs
                   
-
     
2,713
     
2,713
 
Change in fair value of common stock warrants
                   
-
     
(251,203
)
   
(251,203
)
Interest expense, net
                   
-
     
35,333
     
35,333
 
Total expenses
                   
1,858,638
     
883,735
     
2,742,373
 
Income (loss) before income taxes
                 
$
1,843,603
   
$
(883,735
)
 
$
959,868
 

Six Months Ended
 September 30, 2015
 
Avionics
Government
   
Avionics
Commercial
   
Avionics
Total
   
Corporate
Items
   
Total
 
Net sales
 
$
11,590,071
   
$
1,074,238
   
$
12,664,309
   
$
-
   
$
12,664,309
 
Cost of sales
   
7,796,712
     
808,836
     
8,605,548
     
-
     
8,605,548
 
Gross margin
   
3,793,359
     
265,402
     
4,058,761
     
-
     
4,058,761
 
 
                                       
Engineering, research, and development
                   
935,788
     
-
     
935,788
 
Selling, general and administrative
                   
705,580
     
1,043,984
     
1,749,564
 
Amortization of deferred financing costs
                   
-
     
2,715
     
2,715
 
Change in fair value of common stock warrants
                   
-
     
450,828
     
450,828
 
Interest expense, net
                   
-
     
55,469
     
55,469
 
Total expenses
                   
1,641,368
     
1,552,996
     
3,194,364
 
 
                                       
Income (loss) before income taxes
                 
$
2,417,393
   
$
(1,552,996
)
 
$
864,397