Significant Customer Concentrations

12 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

19. 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 $2,113,567 in domestic commercial sales in fiscal year 2024 and there was two (2) direct commercial customer who accounted for 24% 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 24% and 19%, respectively, of commercial sales during fiscal years 2024 and 2023.

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, 2024, and 2023, sales to the U.S. Government, including shipments through the government’s logistics centers, represented approximately 5% and 18%, respectively, of total sales.

For the year ended March 31, 2024, two (2) direct customers represented 28% and 10% of total sales and 31%, 13% and 10% 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, 2024. 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.

Net sales to foreign customers, which, for the most part, are international distributors were $1,130,087 and $1,941,090 for the years ended March 31, 2024, and 2023, respectively. All other sales were to customers located in the U.S. The following table presents net sales by U.S. and foreign countries:

	2024		2023
United States	$	7,679,000	$	6,690,067
Foreign countries		1,130,087		1,941,090
Total Avionics Sales	$	8,809,087	$	8,631,157

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, 2024. They were Korea (35%) and United Kingdom (30%). 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.

The Company had no assets outside the United States. Receivables from the U.S. Government represented approximately 6% and 11%, respectively, of total receivables on March 31, 2024, and 2023, respectively. As of March 31, 2024, there were two individual customers that represented 33% and 15% respectively of the Company’s total outstanding accounts receivable. As of March 31, 2023, one individual customer represented 25% of the Company’s outstanding accounts receivable.

The Company had one individual vendor that represented 18% of payables as of March 31, 2024 and no individual vendor representing over 10% of payables as of March 31, 2023.

Total sales by test set product that were more than 10% of consolidated net sales were the AN/USM-708 (13%) and the T-47/M5 (11%) for the year ended March 31, 2024. 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.