Segment Information

6 Months Ended

Sep. 30, 2021

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, 2021, and 2020:

Three Months Ended September 30, 2021	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,909,663	$	701,200	$	3,610,863	$	-		$	3,610,863
Cost of sales		1,498,235		444,721		1,942,956		-			1,942,956
Gross margin		1,411,428		256,479		1,667,907		-			1,667,907
Engineering, research, and development						682,852		-			682,852
Selling, general and administrative						224,148		372,470			596,618
Litigation costs						-		3,220			3,220
Interest income						-		(995	)		(995	)
Other income						-		(22,260	)		(22,260	)
Interest expense – judgment						-		52,490			52,490
Forgiveness of PPP Loan						-		(722,577	)		(722,577	)
Total expenses (income)						907,000		(317,652	)		589,348
Income before income taxes					$	760,907	$	317,652		$	1,078,559

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

Six Months Ended September 30, 2021	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	6,479,266	$	1,263,990	$	7,743,256	$	-		$	7,743,256
Cost of sales		3,261,135		799,467		4,060,602		-			4,060,602
Gross margin		3,218,131		464,523		3,682,654		-			3,682,654
Engineering, research, and development						1,376,427		-			1,376,427
Selling, general and administrative						401,943		748,708			1,150,651
Litigation costs						-		4,400			4,400
Interest income						-		(1,980	)		(1,980	)
Other income						-		(35,853	)		(35,853	)
Interest expense – judgment						-		104,410			104,410
Forgiveness of PPP Loan						-		(722,577	)		(722,577	)
Total expenses						1,778,370		97,108			1,875,478
Income (loss) before income taxes					$	1,904,284	$	(97,108	)	$	1,807,176

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