Segment Information

9 Months Ended

Dec. 31, 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 nine months ending December 31, 2020 and 2019:

Three Months Ended December 31, 2020	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,212,507	$	460,235	$	2,672,742	$	-		$	2,672,742
Cost of sales		1,247,606		414,047		1,661,653		-			1,661,653
Gross margin		964,901		46,188		1,011,089		-			1,011,089
Engineering, research, and development						492,432		-			492,432
Selling, general and administrative						215,952		524,744			740,696
Litigation costs						-		1,998			1,998
Interest income						-		(1,591	)		(1,591	)
Other income						-		(758	)		(758	)
Forgiveness of PPP loan						-		(722,577	)		(722,577	)
Interest expense – judgment						-		52,490			52,490
Interest expense						-		8,030			8,030
Total expenses						708,384		(137,664	)		570,720
Income before income taxes					$	302,705	$	137,664		$	440,369

Three Months Ended December 31, 2019	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	3,919,605	$	813,530	$	4,733,135	$	-		$	4,733,135
Cost of sales		2,089,563		431,090		2,520,653		-			2,520,653
Gross margin		1,830,042		382,440		2,212,482		-			2,212,482
Engineering, research, and development						580,517		-			580,517
Selling, general and administrative						195,151		414,243			609,394
Litigation costs						-		16,830			16,830
Interest income						-		(2,065	)		(2,065	)
Interest expense - judgment						-		84,715			84,715
Interest expense						-		15,514			15,514
Total expenses						775,668		529,237			1,304,905
Income (loss) before income taxes					$	1,436,814	$	(529,237	)	$	907,577

Nine Months Ended December 31, 2020	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	7,751,936	$	1,196,639	$	8,948,575	$	-		$	8,948,575
Cost of sales		4,145,959		920,093		5,066,052		-			5,066,052
Gross margin		3,605,977		276,546		3,882,523		-			3,882,523
Engineering, research, and development						1,678,940		-			1,678,940
Selling, general and administrative						627,944		1,238,812			1,866,756
Litigation costs						-		10,208			10,208
Interest income						-		(6,316	)		(6,316	)
Forgiveness of PPP loan								(722,577	)		(722,577	)
Other income						-		(14,612	)		(14,612	)
Interest expense – judgment						-		180,124			180,124
Interest expense						-		27,190			27,190
Total expenses						2,306,884		712,829			3,019,713
Income (loss) before income taxes					$	1,575,639	$	(712,829	)	$	862,810

Nine Months Ended December 31, 2019	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	9,564,199	$	2,387,566	$	11,951,765	$	-		$	11,951,765
Cost of sales		4,958,219		1,325,827		6,284,046		-			6,284,046
Gross margin		4,605,980		1,061,739		5,667,719		-			5,667,719
Engineering, research, and development						1,631,359		-			1,631,359
Selling, general and administrative						707,755		1,139,273			1,847,028
Litigation costs						-		118,890			118,890
Change in fair value of common stock warrants						-		73,000			73,000
Interest income						-		(4,083	)		(4,083	)
Interest expense - judgment						-		255,821			255,821
Interest expense						-		44,117			44,117
Total expenses						2,339,114		1,627,018			3,966,132
Income (loss) before income taxes					$	3,328,605	$	(1,627,018	)	$	1,701,587