Significant Customer Concentrations

12 Months Ended

Mar. 31, 2023

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

18. 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 $2,165,485 in domestic commercial sales in fiscal year 2023 and there was two (2) direct commercial customer who accounted for 22% and 19% of domestic commercial sales, respectively. 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 19 % and 14%, respectively, of commercial sales during fiscal years 2023 and 2022.

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, 2023, and 2022, sales to the U.S. Government, including shipments through the government’s logistics centers, represented approximately 18% and 26%, respectively, of total sales. For the year ended March 31, 2023, two (2) direct customers represented 17% and 11% of total sales and 16%, 13% and 11% of government sales, respectively. No international distributors represented 10% or more of total sales or of total government sales for the year ended March 31, 2023. 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.

Net sales to foreign customers, which, for the most part, are international distributors were $1,941,090 and $4,757,489 for the years ended March 31, 2023, and 2022, respectively. All other sales were to customers located in the U.S. The following table presents net sales by U.S. and foreign countries:

	2023		2022
United States	$	6,690,067	$	8,175,301
Foreign countries		1,941,090		4,757,489
Total Avionics Sales	$	8,631,157	$	12,932,790

There were no net sales related to any single foreign country more than 10% of consolidated net sales for fiscal year ended March 31, 2023. 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%). The Company had no assets outside the United States. Receivables from the U.S. Government represented approximately 11% and 11%, respectively, of total receivables on March 31, 2023, and 2022, respectively. As of March 31, 2023, there was one individual customer that represented 25% of the Company’s total outstanding accounts receivable. As of March 31, 2022, one individual customer represented 11% of the Company’s outstanding accounts receivable.

Total sales by test set product that were more than 10% of consolidated net sales were the T-47/M5 dual (17%) and AN/USM-708 (25%) for the year ended March 31, 2023. 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.