Segment Information

3 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 9 – 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 tables below present information about reportable segments within the avionics business for the three months ending June 30, 2020 and 2019:

Three Months Ended June 30, 2020	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,563,276	$	376,161	$	2,939,437	$	-		$	2,939,437
Cost of sales		1,182,282		252,544		1,434,826		-			1,434,826
Gross margin		1,380,994		123,617		1,504,611		-			1,504,611
Engineering, research, and development						631,953		-			631,953
Selling, general and administrative						253,838		407,413			661,251
Litigation costs						-		2,696			2,696
Interest income						-		(2,846	)		(2,846	)
Other income						-		(13,854	)		(13,854	)
Interest expense - judgment						-		75,144			75,144
Interest expense						-		9,780			9,780
Total expenses						885,791		478,333			1,364,124
Income (loss) before income taxes					$	618,820	$	(478,333	)	$	140,487

Three Months Ended June 30, 2019	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,504,140	$	802,322	$	3,306,462	$	-		$	3,306,462
Cost of sales		1,242,567		482,291		1,724,858		-			1,724,858
Gross margin		1,261,573		320,031		1,581,604		-			1,581,604
Engineering, research, and development						525,103		-			525,103
Selling, general and administrative						234,578		377,893			612,471
Litigation costs						-		10,507			10,507
Change in fair value of common stock warrants						-		78,500			78,500
Interest income						-		(1,000	)		(1,000	)
Interest expense - judgment						-		80,510			80,510
Interest expense						-		17,737			17,737
Total expenses						759,681		564,147			1,323,828
Income (loss) before income taxes					$	821,923	$	(564,147	)	$	257,776