Segment Information

3 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 12 – 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 months ended June 30, 2023, and 2022:

Three Months Ended June 30, 2023	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	1,977,812	$	889,117	$	2,866,929	$	-		$	2,866,929
Cost of sales		986,038		586,342		1,572,380		-			1,572,380
Gross margin		991,774		302,775		1,294,549		-			1,294,549
Total expenses						479,347		439,363			918,710
Income (loss) before income taxes					$	815,202	$	(439,363	)	$	375,839

Three Months Ended June 30, 2022	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	1,604,150	$	649,607	$	2,253,757	$	-		$	2,253,757
Cost of sales		962,236		456,336		1,418,572		-			1,418,572
Gross margin		641,914		193,271		835,185		-			835,185
Total expenses						694,954		435,016			1,129,970
Income (loss) before income taxes					$	140,231	$	(435,016	)	$	(294,785	)