Document and Entity Information
Document and Entity Information | 6 Months Ended |
Sep. 29, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | IEH CORPORATION |
Entity Central Index Key | 50,292 |
Document Type | 10-Q |
Document Period End Date | Sep. 29, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 2,303,468 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2,018 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 1,306,814 | $ 1,210,761 |
Accounts receivable, less allowances for doubtful accounts of $11,562 at September 29, 2017 and March 31, 2017 | 3,129,904 | 3,107,670 |
Inventories (Note 3) | 9,435,496 | 8,685,988 |
Excess payments to commercial finance company (Note 6) | 604,334 | 191,430 |
Prepaid expenses and other current assets (Note 4) | 709,957 | 1,308,038 |
Total Current Assets | 15,186,505 | 14,503,887 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation and amortization of $9,259,924 at September 29, 2017 and $9,047,324 at March 31, 2017 (Note 5) | 2,039,450 | 2,019,150 |
OTHER ASSETS: | ||
Other assets | 54,451 | 54,451 |
Total Assets | 17,280,406 | 16,577,488 |
CURRENT LIABILITIES: | ||
Accounts payable | 427,770 | 235,187 |
Accrued corporate income taxes | 878,378 | 599,739 |
Other current liabilities (Note 7) | 602,916 | 688,018 |
Total Current Liabilities | 1,909,064 | 1,522,944 |
Total Liabilities | 1,909,064 | 1,522,944 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $.01 par value; 10,000,000 shares authorized; 2,303,468 shares issued and outstanding at September 29, 2017 and March 31, 2017 | 23,035 | 23,035 |
Capital in excess of par value | 2,744,573 | 2,744,573 |
Retained earnings (Note 8) | 12,603,734 | 12,286,936 |
Total Stockholders' Equity | 15,371,342 | 15,054,544 |
Total Liabilities and Stockholders' Equity | $ 17,280,406 | $ 16,577,488 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 11,562 | $ 11,562 |
Accumulated depreciation and amortization | $ 9,259,924 | $ 9,047,324 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,303,468 | 2,303,468 |
Common stock, shares outstanding | 2,303,468 | 2,303,468 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2017 | Sep. 23, 2016 | Sep. 29, 2017 | Sep. 23, 2016 | |
Income Statement [Abstract] | ||||
REVENUE, net sales | $ 6,058,261 | $ 5,259,784 | $ 11,051,240 | $ 9,719,421 |
COSTS AND EXPENSES | ||||
Cost of products sold | 3,622,433 | 3,257,646 | 6,977,485 | 6,091,642 |
Selling, general and administrative | 1,110,415 | 914,648 | 2,029,840 | 1,821,165 |
Interest expense | 8,101 | 25,971 | 16,639 | 37,483 |
Depreciation | 105,300 | 72,000 | 212,600 | 157,800 |
Total Costs and Expenses | 4,846,249 | 4,270,265 | 9,236,564 | 8,108,090 |
OPERATING INCOME | 1,212,012 | 989,519 | 1,814,676 | 1,611,331 |
OTHER INCOME | 382 | 249 | 1,326 | 465 |
INCOME BEFORE INCOME TAXES | 1,212,394 | 989,768 | 1,816,002 | 1,611,796 |
PROVISION FOR INCOME TAXES | 644,936 | 453,117 | 923,336 | 737,549 |
NET INCOME | $ 567,458 | $ 536,651 | $ 892,666 | $ 874,247 |
BASIC AND DILUTED EARNINGS PER SHARE (Note 2) | $ 0.25 | $ 0.23 | $ 0.39 | $ 0.38 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (IN THOUSANDS) | 2,303 | 2,303 | 2,303 | 2,303 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Sep. 29, 2017 | Sep. 23, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 892,666 | $ 874,247 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 212,600 | 157,800 |
Changes in assets and liabilities: | ||
(Increase) in accounts receivable | (22,234) | (65,875) |
(Increase) in inventories | (749,508) | (782,120) |
(Increase) in excess payments to commercial finance company | (412,904) | (149,849) |
(Increase) decrease in prepaid expenses and other current assets | 598,082 | (293,561) |
(Increase) in other assets | (23) | |
Increase in accounts payable | 192,583 | 30,196 |
Increase (decrease) in other current liabilities | (85,104) | 139,064 |
Increase in accrued corporate taxes | 278,639 | 209,862 |
Total adjustments | 12,154 | (754,506) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 904,820 | 119,741 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of fixed assets | (232,900) | (359,313) |
NET CASH (USED) BY INVESTING ACTIVITIES | (232,900) | (359,313) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of dividend | (575,867) | |
NET CASH (USED) BY FINANCING ACTIVITIES | (575,867) | |
INCREASE (DECREASE) IN CASH | 96,053 | (239,572) |
CASH, beginning of period | 1,210,761 | 1,753,749 |
CASH, end of period | 1,306,814 | 1,514,177 |
Cash paid during the six months for: | ||
Interest | 15,138 | 30,420 |
Income Taxes | $ 51,147 | $ 808,783 |
INTERIM RESULTS AND BASIS OF PR
INTERIM RESULTS AND BASIS OF PRESENTATION | 6 Months Ended |
Sep. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM RESULTS AND BASIS OF PRESENTATION | Note 1- INTERIM RESULTS AND BASIS OF PRESENTATION: The accompanying unaudited financial statements as of September 29, 2017 and September 23, 2016 and for the six months then ended have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 29, 2017 and September 23, 2016 and the results of operations and cash flows for the six months then ended. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the six months ended September 29, 2017, are not necessarily indicative of the results to be expected for any subsequent quarter or the entire fiscal year. The balance sheet at March 31, 2017 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes, however, that the disclosures in this report are adequate to make the information presented not misleading in any material respect. The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto of IEH Corporation for the fiscal year ended March 31, 2017 included in the Company’s Annual Report on Form 10-K as filed with the SEC and the attached Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 29, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Description of Business: The Company designs, develops and manufactures printed circuit connectors for high performance applications. We have also developed a high-performance plastic circular connector line. All of our products utilize the HYPERBOLOID contact design, a rugged high-reliability contact system ideally suited for high-stress environments. We are the only independent producer of HYPERBOLOID in the United States. Our customers consist of OEM’s (Original Equipment Manufacturers), companies manufacturing medical equipment, and distributors who resell our products to OEMs. We sell our products directly and through regional representatives located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union (EU). The customers of the Company services are in the following markets: Government, Military, Aerospace, Medical, Automotive, Industrial, Test Equipment and Commercial Electronics. The Company appears on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the Commercial Electronic and Military markets were 37% and 51%, respectively, of the Company’s net sales for the year ended March 31, 2017. The Company’s offering of “QPL” items has recently been expanded to include additional products. In order to remain competitive, the Company has an internal program to upgrade, add and maintain machinery, review material costs and increase labor force productivity. During the fiscal year ended March 31, 2017, the Company purchased several machines to increase the productivity of certain processes. This will help the Company meet this goal. Business New Product Development: The Company is sought after by many of its customers to design and manufacture custom connectors. This has created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. The Company will continue to support its customers to the best of its ability. The circular product line of connectors introduced several years ago for the medical industry continues to be very rewarding for the Company. The line has been expanded to include connector cable assemblies utilizing the circular connectors. A new product line featuring high density connectors is being added to the Company’s product offering. This offering should be available within the next few months. The Company expects the new product line to bring additional revenue. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that the Company can offer under the Military Qualified Product Listing “QPL.” Accounting Period: The Company maintains an accounting period based upon a 52-53-week year, which ends on the nearest Friday in business days to March 31. The year ended March 31, 2017 was comprised of 53 weeks. The current fiscal year, ending on March 30, 2018, will be comprised of 52 weeks. Revenue Recognition: Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. The Company has historically adopted the shipping terms that title to merchandise passes to the customer at the shipping point (FOB Shipping Point). The Company does not offer any discounts, credits or other sales incentives. Historically, the Company believes that it has no collection issues with its customer base. Revenue is realized or realizable and earned when all of the following criteria are met: · Persuasive evidence of an arrangement exists. · Shipment has occurred. · The Company’s selling price for its products are fixed and determinable. · Collectability is reasonably assured. The Company’s policy with respect to customer returns and allowances as well as product warranty is as follows: The Company will accept a return of defective product within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost, will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of product. The cost of defective products is immaterial at this time. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not invoice its customers separately for these services. Inventories: Inventories are stated at cost, on an average basis, which does not exceed market value. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience, is made to inventory in recognition of this impairment. Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law on July 21, 2010, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. As of September 29, 2017 and March 31, 2017, the Company had funds on deposit in the amount of $1,076,739 and $1,660,904, in one financial institution comprised of the following: Sept. 29, 2017 March 31, 2017 Non-interest-bearing accounts $ 387,720 $ 521,969 Interest bearing account 689,019 1,138,935 $ 1,076,739 $ 1,660,904 The Company has not experienced any losses in such accounts and believes its cash balances are not exposed to any significant risk. Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization accounts. Any gain or loss thereon is either credited or charged to operations. Income Taxes: Deferred income taxes arise from temporary differences resulting from different depreciation methods used for financial and income tax purposes. The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, Net Income Per Share: The Company has adopted the provisions of ASC Topic 260, Earnings per Share, Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable, accounts payable, and borrowings, approximate their fair value due to the relatively short maturity (three months) of these instruments. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual amounts could differ from those estimates. Impairment of Long-Lived Assets: The Company has adopted the provisions of ASC Topic, 360, Property, Plant and Equipment-Impairment or Disposal of Long-Lived Assets Recent Accounting Pronouncements: In December 2016, the FASB issued ASU 2016-19; the amendments cover a wide range of topics in the Accounting Standards Codification, including differences between original guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. The adoption of ASU 2016-19 is effective for annual periods, including interim periods, within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the effect of this standard on its financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update are of a similar nature to the items typically addressed in the ASU 2016-19, Technical Corrections and Improvements. The FASB elected to issue a separate update for technical corrections and improvements to Topic 606 as well as other Topics amended by ASU 2014-09 to increase public awareness of the proposals and to expedite improvements to ASU-2014-9. The adoption of ASU 2016-20 is effective from the periods beginning after December 31, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect of this standard on its financial statements. In addition, the Financial Accounting Standards Board (“FASB”) has issued certain accounting standards updates as of September 29, 2017 that will become effective in subsequent periods. The Company believes that none of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during the months ended September 29, 2017 and September 23, 2016, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time that they become effective. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Sep. 29, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Note 3- INVENTORIES: Inventories are stated at cost, on an average basis, which does not exceed market value. The Company manufactures products pursuant to specific technical and contractual requirements. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience, is made to inventory in recognition of this impairment. Inventories were comprised of the following: Sept. 29, March 31, 2017 2017 Raw materials $ 5,717,485 $ 5,263,317 Work in progress 933,729 859,558 Finished goods 2,784,282 2,563,113 $ 9,435,496 $ 8,685,988 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Sep. 29, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Note 4- PREPAID EXPENSES AND OTHER CURRENT ASSETS: Prepaid expenses and other current assets were comprised of the following: Sept. 29, March 31, 2017 2017 Prepaid insurance $ 37,054 $ 24,079 Prepaid corporate taxes 661,132 1,282,098 Other current assets 11,771 1,861 $ 709,957 $ 1,308,038 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Sep. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 5- PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment were comprised of the following: Sept. 29, March 31, 2017 2017 Computers $ 485,014 $ 444,184 Leasehold improvements 888,488 878,888 Machinery and equipment 6,123,645 6,079,401 Tools and dies 3,614,106 3,484,307 Furniture and fixture 179,071 170,644 Website development cost 9,050 9,050 11,299,374 11,066,474 Less: accumulated depreciation and amortization (9,259,924 ) (9,047,324 ) $ 2,039,450 $ 2,019,150 |
ACCOUNTS RECEIVABLE FINANCING
ACCOUNTS RECEIVABLE FINANCING | 6 Months Ended |
Sep. 29, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE FINANCING | Note 6- ACCOUNTS RECEIVABLE FINANCING: The Company entered into an accounts receivable financing agreement with a commercial finance company, whereby it can borrow up to 80 percent of its eligible receivables (as defined in the financing agreement) at an interest rate of 2.5% above JP Morgan Chase’s publicly announced rate with a minimum rate of 6% per annum. The financing agreement has an initial term of one year and will automatically renew for successive one-year terms, unless terminated by the Company or the commercial finance company upon receiving 60 days’ prior notice. Funds advanced by the commercial finance company are secured by IEH’s accounts receivable and inventories. At September 29, 2017, the Company had reported excess payments to the commercial finance company of $604,334. As of March 31, 2017, the Company had reported excess payments to the commercial finance company of $191,430. These excess payments are reported in the accompanying financial statements as of September 29, 2017 and March 31, 2017 as “Excess payments to commercial finance company.” |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 6 Months Ended |
Sep. 29, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | Note 7- OTHER CURRENT LIABILITIES: Other current liabilities were comprised of the following: Sept. 29, March 31, 2017 2017 Payroll and vacation accruals $ 495,620 $ 598,832 Sales commissions 54,520 85,523 Insurance 52,776 3,663 $ 602,916 $ 688,018 |
CHANGES IN STOCKHOLDERS' EQUITY
CHANGES IN STOCKHOLDERS' EQUITY | 6 Months Ended |
Sep. 29, 2017 | |
Equity [Abstract] | |
CHANGES IN STOCKHOLDERS' EQUITY | Note 8- CHANGES IN STOCKHOLDERS’ EQUITY: The accumulated retained earnings increased by $892,666, which represents the net income for the six months ended September 29, 2017. On May 17, 2017, the Company’s board of directors voted to authorize a $0.25 one-time special cash dividend payable on June 19, 2017, to shareholders of record on the close of business at June 6, 2017. This dividend distribution of $575,867 was the first dividend ever paid by the Company since it became an SEC reporting company. Accordingly, the Company reported accumulated retained earnings of $12,603,734 as of September 29, 2017. |
2011 EQUITY INCENTIVE PLAN
2011 EQUITY INCENTIVE PLAN | 6 Months Ended |
Sep. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
2011 EQUITY INCENTIVE PLAN | Note 9- 2011 EQUITY INCENTIVE PLAN: On August 31, 2011, the Company’s shareholders approved the adoption of the Company’s 2011 Equity Incentive Plan (“2011 Plan”) to provide for the grant of stock options and restricted stock awards to purchase up to 750,000 shares of the Company’s common stock to all employees, consultants and other eligible participants including senior management and members of the Board of Directors of the Company. The 2011 Plan replaced the prior 2002 Employee Stock Option Plan which had expired in accordance with its terms. Options granted to employees under the 2011 Plan may be designated as options which qualify for incentive stock option treatment under Section 422A of the Internal Revenue Code, or options which do not qualify (non-qualified stock options). Under the 2011 Plan, the exercise price of an option designated as an incentive stock option shall not be less than the fair market value of the Company’s common stock on the day the option is granted. In the event an option designated as an incentive stock option is granted to a ten percent (10%) or greater shareholder, such exercise price shall be at least 110 percent (110%) of the fair market value of the Company’s common stock and the option must not be exercisable after the expiration of five years from the day of the grant. The 2011 Plan also provides that holders of options that wish to pay for the exercise price of their options with shares of the Company’s common stock must have beneficially owned such stock for at least six months prior to the exercise date. Exercise prices of non-incentive stock options may be less than the fair market value of the Company’s common stock. The aggregate fair market value of shares subject to options granted to a participant(s) that are designated as incentive stock options, and which become exercisable in any calendar year, shall not exceed $100,000. On July 1, 2015, our Board of Directors granted 245,000 options to purchase shares of the Company’s common stock under the 2011 Plan as follows: (i) Michael Offerman, our then Chief Executive Officer, was granted 75,000 options; (ii) Robert Knoth, our Chief Financial Officer, was granted 50,000 options; (iii) four non-executive officer key employees were granted 110,000 options; and (iv) each of our non-management directors, Allen Gottlieb and Gerald Chafetz, was granted 5,000 options. The stock options: (i) have a ten-year term; (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined under the 2011 Plan, as reported in the OTCBB, on the date of grant ($6.00), except that the options granted to Michael Offerman has an exercise price equal to 110% of such fair market value because he owns ten percent (10%) or greater of the Company’s outstanding common stock; and (iii) were all immediately vested. In the event of the termination of each recipient’s employment by, or association with, the Company (as applicable), the options will remain exercisable in accordance with the terms of the 2011 Plan. Effective July 15, 2016, the Board of Directors of the Company unanimously voted to increase the number of directors from three to six directors and elected David Offerman as a Class II director and Dr. Sonia Marciano and Eric C. Hugel as Class I Directors. Effective August 15, 2016, the Board of Directors also approved the granting of stock options to purchase shares of the Company’s common stock under the 2011 Plan to each of Dr. Marciano and Mr. Hugel as follows: Each of the new non-management directors will receive a grant of options totalling 5,000 shares each subject to the following vesting schedule: (i) 1,000 shares will vest immediately (August 15, 2016); (ii) 2,000 shares will vest on August 15, 2017; and (iii) 2,000 shares will vest on August 15, 2018. The stock options: (i) have a ten-year term; and (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined under the 2011 Plan, as reported in the OTCBB, on the date of grant ($5.30). In the event of the termination of each recipient’s association with the Company, the options will remain exercisable in accordance with the terms of the 2011 Plan. The table below summarizes the option awards for the named executive officers and non-management directors: Name Stock Option Grants* Michael Offerman** 75,000 David Offerman** 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano 5,000*** Eric Hugel 5,000*** *As of the date hereof, none of the options has been exercised. **On March 24, 2017, Michael Offerman, our President and Chief Executive Officer, died suddenly. On March 26, 2017, the Board of Directors elected David Offerman to the positions of Chairman of the Board, President and Chief Executive Officer of the Company. ***Options for 3,000 shares vested, options for 2,000 shares not yet vested. The Company intends to provide additional information regarding the compensation awarded to the named executive officers and non-management directors in respect of and during the fiscal year ended March 31, 2017, in the proxy statement for the Company’s 2017 annual meeting of stockholders. |
CASH BONUS PLAN
CASH BONUS PLAN | 6 Months Ended |
Sep. 29, 2017 | |
Compensation Related Costs [Abstract] | |
CASH BONUS PLAN | Note 10- CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (“Cash Bonus Plan”) for executive officers. Contributions to the Cash Bonus Plan are made by the Company only after pre-tax operating profits exceed $150,000 for a fiscal year, and then to the extent of 10% of the excess of the greater of $150,000 or 25% of pre-tax operating profits. Accordingly, the Company has accrued a contribution provision of $162,000 for the six months ended September 29, 2017. For the year ended March 31, 2017, the Company’s contribution was $324,000. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 11- COMMITMENTS AND CONTINGENCIES: The Company leases space for its corporate offices (including its manufacturing facility) at 140 58 th Fiscal year ending March: 2018 $ 88,290 2019 183,720 2020 189,200 2021 128,640 $ 589,850 The rental expense for the six months ended September 29, 2017 was $88,290 and $85,740 for the six months ended September 23, 2016. The Company has a collective bargaining multi-employer pension plan (“Multi-Employer Plan”) with the United Auto Workers of America, Local 259 (“UAW”). Contributions are made by the Company in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the Multi-Employer Pension Plan Amendment Act of 1990 (the “1990 Act”), the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these are contingent upon termination, withdrawal, or partial withdrawal from the Multi-Employer Plan. The Company has not been advised by the UAW that the Company has any liability under the Multi-Employer Plan as of the date hereof. The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan, nor does it intend to do so in the future. Under the 1990 Act, liabilities would be based upon the Company’s proportional share of the Multi-Employer Plan’s unfunded vested benefits which is currently not available. The amount of accumulated benefits and net assets of such Plan also is not currently available to the Company. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $58,652 and $65,265 for the six months ended September 29, 2017 and September 23, 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 29, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 12- SUBSEQUENT EVENTS: The Company has evaluated all other subsequent events through November 13, 2017, the date the financial statements were available to be issued. Based on this evaluation, except as set forth below, the Company has determined that no subsequent events have occurred which require disclosure through the date that these financial statements were available to be issued. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 29, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: The Company designs, develops and manufactures printed circuit connectors for high performance applications. We have also developed a high-performance plastic circular connector line. All of our products utilize the HYPERBOLOID contact design, a rugged high-reliability contact system ideally suited for high-stress environments. We are the only independent producer of HYPERBOLOID in the United States. Our customers consist of OEM’s (Original Equipment Manufacturers), companies manufacturing medical equipment, and distributors who resell our products to OEMs. We sell our products directly and through regional representatives located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union (EU). The customers of the Company services are in the following markets: Government, Military, Aerospace, Medical, Automotive, Industrial, Test Equipment and Commercial Electronics. The Company appears on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the Commercial Electronic and Military markets were 37% and 51%, respectively, of the Company’s net sales for the year ended March 31, 2017. The Company’s offering of “QPL” items has recently been expanded to include additional products. In order to remain competitive, the Company has an internal program to upgrade, add and maintain machinery, review material costs and increase labor force productivity. During the fiscal year ended March 31, 2017, the Company purchased several machines to increase the productivity of certain processes. This will help the Company meet this goal. |
Business New Product Development | Business New Product Development: The Company is sought after by many of its customers to design and manufacture custom connectors. This has created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. The Company will continue to support its customers to the best of its ability. The circular product line of connectors introduced several years ago for the medical industry continues to be very rewarding for the Company. The line has been expanded to include connector cable assemblies utilizing the circular connectors. A new product line featuring high density connectors is being added to the Company’s product offering. This offering should be available within the next few months. The Company expects the new product line to bring additional revenue. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that the Company can offer under the Military Qualified Product Listing “QPL.” |
Accounting Period | Accounting Period: The Company maintains an accounting period based upon a 52-53-week year, which ends on the nearest Friday in business days to March 31. The year ended March 31, 2017 was comprised of 53 weeks. The current fiscal year, ending on March 30, 2018, will be comprised of 52 weeks. |
Revenue Recognition | Revenue Recognition: Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. The Company has historically adopted the shipping terms that title to merchandise passes to the customer at the shipping point (FOB Shipping Point). The Company does not offer any discounts, credits or other sales incentives. Historically, the Company believes that it has no collection issues with its customer base. Revenue is realized or realizable and earned when all of the following criteria are met: · Persuasive evidence of an arrangement exists. · Shipment has occurred. · The Company’s selling price for its products are fixed and determinable. · Collectability is reasonably assured. The Company’s policy with respect to customer returns and allowances as well as product warranty is as follows: The Company will accept a return of defective product within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost, will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of product. The cost of defective products is immaterial at this time. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not invoice its customers separately for these services. |
Inventories | Inventories: Inventories are stated at cost, on an average basis, which does not exceed market value. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience, is made to inventory in recognition of this impairment. |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law on July 21, 2010, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. As of September 29, 2017 and March 31, 2017, the Company had funds on deposit in the amount of $1,076,739 and $1,660,904, in one financial institution comprised of the following: Sept. 29, 2017 March 31, 2017 Non-interest-bearing accounts $ 387,720 $ 521,969 Interest bearing account 689,019 1,138,935 $ 1,076,739 $ 1,660,904 The Company has not experienced any losses in such accounts and believes its cash balances are not exposed to any significant risk. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization accounts. Any gain or loss thereon is either credited or charged to operations. |
Income Taxes | Income Taxes: Deferred income taxes arise from temporary differences resulting from different depreciation methods used for financial and income tax purposes. The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, |
Net Income Per Share | Net Income Per Share: The Company has adopted the provisions of ASC Topic 260, Earnings per Share, |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable, accounts payable, and borrowings, approximate their fair value due to the relatively short maturity (three months) of these instruments. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual amounts could differ from those estimates. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company has adopted the provisions of ASC Topic, 360, Property, Plant and Equipment-Impairment or Disposal of Long-Lived Assets |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In December 2016, the FASB issued ASU 2016-19; the amendments cover a wide range of topics in the Accounting Standards Codification, including differences between original guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. The adoption of ASU 2016-19 is effective for annual periods, including interim periods, within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the effect of this standard on its financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update are of a similar nature to the items typically addressed in the ASU 2016-19, Technical Corrections and Improvements. The FASB elected to issue a separate update for technical corrections and improvements to Topic 606 as well as other Topics amended by ASU 2014-09 to increase public awareness of the proposals and to expedite improvements to ASU-2014-9. The adoption of ASU 2016-20 is effective from the periods beginning after December 31, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect of this standard on its financial statements. In addition, the Financial Accounting Standards Board (“FASB”) has issued certain accounting standards updates as of September 29, 2017 that will become effective in subsequent periods. The Company believes that none of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during the months ended September 29, 2017 and September 23, 2016, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time that they become effective. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Accounting Policies [Abstract] | |
Schedule of funds on deposit | As of September 29, 2017 and March 31, 2017, the Company had funds on deposit in the amount of $1,076,739 and $1,660,904, in one financial institution comprised of the following: Sept. 29, 2017 March 31, 2017 Non-interest-bearing accounts $ 387,720 $ 521,969 Interest bearing account 689,019 1,138,935 $ 1,076,739 $ 1,660,904 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories were comprised of the following: Sept. 29, March 31, 2017 2017 Raw materials $ 5,717,485 $ 5,263,317 Work in progress 933,729 859,558 Finished goods 2,784,282 2,563,113 $ 9,435,496 $ 8,685,988 |
PREPAID EXPENSES AND OTHER CU21
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets were comprised of the following: Sept. 29, March 31, 2017 2017 Prepaid insurance $ 37,054 $ 24,079 Prepaid corporate taxes 661,132 1,282,098 Other current assets 11,771 1,861 $ 709,957 $ 1,308,038 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment were comprised of the following: Sept. 29, March 31, 2017 2017 Computers $ 485,014 $ 444,184 Leasehold improvements 888,488 878,888 Machinery and equipment 6,123,645 6,079,401 Tools and dies 3,614,106 3,484,307 Furniture and fixture 179,071 170,644 Website development cost 9,050 9,050 11,299,374 11,066,474 Less: accumulated depreciation and amortization (9,259,924 ) (9,047,324 ) $ 2,039,450 $ 2,019,150 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities were comprised of the following: Sept. 29, March 31, 2017 2017 Payroll and vacation accruals $ 495,620 $ 598,832 Sales commissions 54,520 85,523 Insurance 52,776 3,663 $ 602,916 $ 688,018 |
2011 EQUITY INCENTIVE PLAN (Tab
2011 EQUITY INCENTIVE PLAN (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Options Awarded to Officers and Directors | The table below summarizes the option awards for the named executive officers and non-management directors: Name Stock Option Grants* Michael Offerman** 75,000 David Offerman** 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano 5,000*** Eric Hugel 5,000*** *As of the date hereof, none of the options has been exercised. **On March 24, 2017, Michael Offerman, our President and Chief Executive Officer, died suddenly. On March 26, 2017, the Board of Directors elected David Offerman to the positions of Chairman of the Board, President and Chief Executive Officer of the Company. ***Options for 3,000 shares vested, options for 2,000 shares not yet vested. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Sep. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of basic minimum annual rental payments | The Company leases space for its corporate offices (including its manufacturing facility) at 140 58 th Fiscal year ending March: 2018 $ 88,290 2019 183,720 2020 189,200 2021 128,640 $ 589,850 |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 29, 2017 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Number of days in fiscal period | 364 days | 371 days |
FDIC coverage of deposits | $ 250,000 | |
Property, Plant and Equipment Other Types [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of property plant and equipment | 5 years | |
Property, Plant and Equipment Other Types [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of property plant and equipment | 7 years | |
Commercial Electronic Markets [Member] | Sales Revenue, Net [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of sales | 37.00% | |
Military Markets [Member] | Sales Revenue, Net [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of sales | 51.00% |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Funds on Deposit) (Details) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Funds on deposit | $ 1,076,739 | $ 1,660,904 |
Non-interest-bearing accounts [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Funds on deposit | 387,720 | 521,969 |
Interest bearing account [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Funds on deposit | $ 689,019 | $ 1,138,935 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,717,485 | $ 5,263,317 |
Work in progress | 933,729 | 859,558 |
Finished goods | 2,784,282 | 2,563,113 |
Inventories | $ 9,435,496 | $ 8,685,988 |
PREPAID EXPENSES AND OTHER CU29
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 37,054 | $ 24,079 |
Prepaid corporate taxes | 661,132 | 1,282,098 |
Other current assets | 11,771 | 1,861 |
Prepaid expenses and other current assets | $ 709,957 | $ 1,308,038 |
PROPERTY, PLANT AND EQUIPMENT30
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 11,299,374 | $ 11,066,474 |
Less: accumulated depreciation and amortization | (9,259,924) | (9,047,324) |
Property, Plant and Equipment, Net | 2,039,450 | 2,019,150 |
Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 485,014 | 444,184 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 888,488 | 878,888 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,123,645 | 6,079,401 |
Tools and dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,614,106 | 3,484,307 |
Furniture and fixture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 179,071 | 170,644 |
Website development cost [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,050 | $ 9,050 |
ACCOUNTS RECEIVABLE FINANCING (
ACCOUNTS RECEIVABLE FINANCING (Narrative) (Details) - USD ($) | 6 Months Ended | |
Sep. 29, 2017 | Mar. 31, 2017 | |
Short-term Debt [Line Items] | ||
Excess payments to the Factor | $ 604,334 | $ 191,430 |
Accounts Receivable Financing Agreement [Member] | ||
Short-term Debt [Line Items] | ||
Financing agreement - percentage of eligible receivables that may be borrowed | 80.00% | |
Interest rate above JPMC rate, ceiling | 2.50% | |
Interest rate floor | 6.00% | |
Financing agreement term (years) | 1 year | |
Financing agreement notice (days) | 60 days |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) | Sep. 29, 2017 | Mar. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and vacation accruals | $ 495,620 | $ 598,832 |
Sales commissions | 54,520 | 85,523 |
Insurance | 52,776 | 3,663 |
Total other current liabilities | $ 602,916 | $ 688,018 |
CHANGES IN STOCKHOLDERS' EQUI33
CHANGES IN STOCKHOLDERS' EQUITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2017 | Sep. 23, 2016 | Sep. 29, 2017 | Sep. 23, 2016 | Mar. 31, 2017 | |
Equity [Abstract] | |||||
Net income | $ 567,458 | $ 536,651 | $ 892,666 | $ 874,247 | |
Special cash dividend payable | $ 0.25 | $ 0.25 | |||
Dividend payable record date | Jun. 6, 2017 | ||||
Payment of dividend | $ 575,867 | ||||
Retained earnings | $ 12,603,734 | $ 12,603,734 | $ 12,286,936 |
2011 EQUITY INCENTIVE PLAN (Nar
2011 EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($) | Jul. 01, 2015 | Sep. 29, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Stock Options and Restricted Stock Awards authorized under 2011 Equity Incentive Plan | 750,000 | |
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | |
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | |
Expiration period from grant date | 10 years | 5 years |
FMV of shares subject to options granted to participants and designated as incentive stock options, maximum amount | $ 100,000 |
2011 EQUITY INCENTIVE PLAN (Gra
2011 EQUITY INCENTIVE PLAN (Grants Under Plan) (Details) - $ / shares | Aug. 15, 2016 | Jul. 15, 2016 | Jul. 01, 2015 | Sep. 29, 2017 | Aug. 15, 2018 | Aug. 15, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 245,000 | ||||||
Expiration period from grant date | 10 years | 5 years | |||||
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | ||||||
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | ||||||
Exercise price | $ 6 | ||||||
Four non-executive officer key employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 110,000 | ||||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Michael Offerman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1],[2] | 75,000 | |||||
Expiration period from grant date | 10 years | ||||||
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | ||||||
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | ||||||
David Offerman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1],[2] | 50,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Robert Knoth [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1] | 50,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Allen Gottlieb [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Gerald Chafetz [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Sonia Marciano [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1],[3] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Option vested | 3,000 | ||||||
Option yet to vest | 1,000 | 2,000 | |||||
Sonia Marciano [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option yet to vest | 2,000 | ||||||
Eric Hugel [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1],[3] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Option vested | 3,000 | ||||||
Option yet to vest | 1,000 | 2,000 | |||||
Eric Hugel [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option yet to vest | 2,000 | ||||||
[1] | As of the date hereof, none of the options has been exercised. | ||||||
[2] | On March 24, 2017, Michael Offerman, our President and Chief Executive Officer, died suddenly. On March 26, 2017, the Board of Directors elected David Offerman to the positions of Chairman of the Board, President and Chief Executive Officer of the Company. | ||||||
[3] | Options for 3,000 shares vested, options for 2,000 shares not yet vested. |
CASH BONUS PLAN (Narrative) (De
CASH BONUS PLAN (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 29, 2017 | Mar. 31, 2017 | |
Compensation Related Costs [Abstract] | ||
Cash Bonus Plan, threshold of pre-tax operating profits | $ 150,000 | |
Cash Bonus Plan, contribution tier 1 | 10.00% | |
Cash Bonus Plan, contribution tier 2 | 25.00% | |
Cash Bonus Plan, contribution | $ 162,000 | $ 324,000 |
COMMITMENTS AND CONTINGENCIES37
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) | 6 Months Ended | |
Sep. 29, 2017 | Sep. 23, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 88,290 | $ 85,740 |
Pension plan contributions | $ 58,652 | $ 65,265 |
COMMITMENTS AND CONTINGENCIES38
COMMITMENTS AND CONTINGENCIES (Basic Minimum Annual Rentals) (Details) | Sep. 29, 2017USD ($) |
Future Minimum Rental Payments | |
2,018 | $ 88,290 |
2,019 | 183,720 |
2,020 | 189,200 |
2,021 | 128,640 |
Total | $ 589,850 |