Segment Information

9 Months Ended

Dec. 31, 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 nine months ending December 31, 2021, and 2020:

Three Months Ended December 31, 2021	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,552,546	$	618,986	$	3,171,532	$	-		$	3,171,532
Cost of sales		1,366,699		397,040		1,763,739		-			1,763,739
Gross margin		1,185,847		221,946		1,407,793		-			1,407,793
Engineering, research, and development						574,118		-			574,118
Selling, general and administrative						187,132		336,834			523,966
Litigation costs						-		17,145			17,145
Interest income						-		(996	)		(996	)
Interest expense – judgment						-		52,490			52,490
Total expenses						761,250		405,473			1,166,723
Income (loss) before income taxes					$	646,543	$	(405,473	)	$	241,070

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 (income)						708,384		(137,664	)		570,720
Income before income taxes					$	302,705	$	137,664		$	440,369

Nine Months Ended December 31, 2021	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	9,031,812	$	1,882,975	$	10,914,787	$	-		$	10,914,787
Cost of sales		4,627,834		1,196,507		5,824,341		-			5,824,341
Gross margin		4,403,978		686,468		5,090,446		-			5,090,446
Engineering, research, and development						1,950,545		-			1,950,545
Selling, general and administrative						589,076		1,085,542			1,674,618
Litigation costs						-		21,545			21,545
Interest income						-		(2,977	)		(2,977	)
Other income						-		(35,854	)		(35,854	)
Interest expense – judgment						-		156,901			156,901
Forgiveness of PPP Loan						-		(722,577	)		(722,577	)
Total expenses						2,539,621		502,580			3,042,201
Income (loss) before income taxes					$	2,550,825	$	(502,580	)	$	2,048,245

Nine Months Ended  December 30, 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