Segment Information

6 Months Ended

Sep. 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 and six months ending September 30, 2020 and 2019:

Three Months Ended September 30, 2020	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,976,153	$	360,243	$	3,336,396	$	-		$	3,336,396
Cost of sales		1,720,943		248,630		1,969,573		-			1,969,573
Gross margin		1,255,210		111,613		1,366,823		-			1,366,823
Engineering, research, and development						554,555		-			554,555
Selling, general and administrative						158,154		306,655			464,809
Litigation costs						-		5,514			5,514
Interest income						-		(1,879	)		(1,879	)
Interest expense – judgment						-		52,490			52,490
Interest expense						-		9,380			9,380
Total expenses						712,709		372,160			1,084,869
Income (loss) before income taxes					$	654,114	$	(372,160	)	$	281,954

Three Months Ended September 30, 2019	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	3,140,454	$	771,714	$	3,912,168	$	-		$	3,912,168
Cost of sales		1,626,089		412,446		2,038,535		-			2,038,535
Gross margin		1,514,365		359,268		1,873,633		-			1,873,633
Engineering, research, and development						525,739		-			525,739
Selling, general and administrative						278,026		347,137			625,163
Litigation costs								91,553			91,553
Change in fair value of common stock warrants								(5,500	)		(5,500	)
Interest income						-		(1,018	)		(1,018	)
Interest expense - judgment								90,596			90,596
Interest expense						-		10,866			10,866
Total expenses						803,765		533,634			1,337,399
Income (loss) before income taxes					$	1,069,868	$	(533,634	)	$	536,234

Six Months Ended September 30, 2020	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	5,539,429	$	736,404	$	6,275,833	$	-		$	6,275,833
Cost of sales		2,903,225		501,174		3,404,399		-			3,404,399
Gross margin		2,636,204		235,230		2,871,434		-			2,871,434
Engineering, research, and development						1,186,508		-			1,186,508
Selling, general and administrative						411,992		714,068			1,126,060
Litigation costs						-		8,210			8,210
Interest income						-		(4,725	)		(4,725	)
Other income						-		(13,854	)		(13,854	)
Interest expense – judgment						-		127,634			127,634
Interest expense						-		19,160			19,160
Total expenses						1,598,500		850,493			2,448,993
Income (loss) before income taxes					$	1,272,934	$	(850,493	)	$	422,441

Six Months Ended September 30, 2019	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	5,644,594	$	1,574,036	$	7,218,630	$	-		$	7,218,630
Cost of sales		2,868,656		894,737		3,763,393		-			3,763,393
Gross margin		2,775,938		679,299		3,455,237		-			3,455,237
Engineering, research, and development						1,050,842		-			1,050,842
Selling, general and administrative						512,604		725,030			1,237,634
Litigation costs								102,060			102,060
Change in fair value of common stock warrants								73,000			73,000
Interest income						-		(2,018	)		(2,018	)
Interest expense - judgment								171,106			171,106
Interest expense						-		28,603			28,603
Total expenses						1,563,446		1,097,781			2,661,227
Income (loss) before income taxes					$	1,891,791	$	(1,097,781	)	$	794,010