Significant Customer Concentrations

12 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

13. Significant Customer Concentrations

Domestic commercial sales are made throughout the U.S. to commercial airlines and general aviation businesses directly or through distributors. There were $2,482,424 in domestic commercial sales in fiscal year 2022 and there was one (1) direct commercial customer who accounted for more than 10% of domestic commercial sales, DFAS (22%). The Company has one domestic distributor which receives discounts ranging between 16%-20% discount for stocking, selling, and, in some cases, providing product calibration and repairs. The loss of this distributor would not have a material adverse effect on the Company or its operations. Our commercial distributor represented approximately 14% and 8%, respectively, of commercial sales during fiscal years 2022 and 2021.

Marketing to the U.S. Government is made directly by employees of the Company or through independent sales representatives, who receive similar commissions to the commercial distributors. For the years ended March 31, 2022, and 2021, sales to the U.S. Government, including shipments through the government’s logistics centers, represented approximately 26% and 38%, respectively, of total sales. For the year ended March 31, 2022, two (2) direct customers represented 20% and 12% of total sales and 25% and 10% of government sales, respectively. Two (2) international distributors represented 13% and 12% of total sales and two (2) represented 16% and 15% of government sales for the year ended March 31, 2022. For the year ended March 31, 2021, two (2) direct customers represented 10% and 33% of total sales and 12% and 39% of government sales, respectively. No international distributor represented 10% of total sales or 10% of government sales for the year ended March 31, 2021.

Net sales to foreign customers, which, for the most part, are international distributors were $4,757,489 and $6,071,004 for the years ended March 31, 2022, and 2021, respectively. All other sales were to customers located in the U.S. The following table presents net sales by U.S. and foreign countries:

	2022		2021
United States	$	8,175,301	$	5,511,516
Foreign countries		4,757,489		6,071,004
Total Avionics Sales	$	12,932,790	$	11,582,520

Net sales related to any single foreign country more than 10% of consolidated net sales included two (2) foreign countries for fiscal year ended March 31, 2022. They were United Kingdom (13%) and Korea (13%), none in the previous fiscal year. The Company had no assets outside the United States.

Receivables from the U.S. Government represented approximately 11% and 5.2%, respectively, of total receivables on March 31, 2022, and 2021, respectively. As of March 31, 2022, there was one individual customer that represented 11.2%  of the Company’s total outstanding accounts receivable. As of March 31, 2021, three individual customers represented in total 81% of the Company’s outstanding accounts receivable, ranging between 38% and 19% of the Company’s outstanding accounts receivable on March 31, 2021.

Total sales by test set product that were more than 10% of consolidated net sales were the T-47/M5 dual (28%), AN/USM-708 (18%) and the T-47/NH (14%) for the year ended March 31, 2022.  Total sales by test set product that were more than 10% of consolidated net sales were the T-47/M5 (37%), AN/USM-708 (10%) and the T-47/NH (14%) for the year ended March 31, 2021.