Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 27, 2019 | Nov. 19, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | IEH Corp | |
Entity Central Index Key | 0000050292 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 27, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-29 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,331,751 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 27, 2019 | Mar. 29, 2019 |
CURRENT ASSETS: | ||
Cash | $ 6,563,424 | $ 7,080,126 |
Accounts receivable | 5,515,887 | 3,833,090 |
Inventories (Note 3) | 13,091,697 | 12,021,443 |
Excess payments to commercial finance company (Note 6) | 608,666 | |
Prepaid expenses and other current assets (Note 4) | 551,032 | 534,897 |
Total Current Assets | 26,330,706 | 23,469,556 |
PROPERTY, PLANT AND EQUIPMENT (Note 5) | 2,433,956 | 2,560,607 |
OTHER ASSETS: | ||
Right of use Asset-Leasehold (Note 2) | 206,541 | |
Other assets | 54,489 | 54,489 |
Total Other Assets | 261,030 | 54,489 |
Total Assets | 29,025,692 | 26,084,652 |
CURRENT LIABILITIES: | ||
Accounts payable | 119,691 | 480,012 |
Due to commercial finance company (Note 6) | 334,306 | |
Customer advance payments | 222,541 | 348,230 |
Accrued corporate income taxes | 2,747,407 | 1,676,428 |
Deferred Lease Liability - Net of Long Term (Note 2) | 177,664 | |
Other current liabilities (Note 7) | 1,171,749 | 977,420 |
Total Current Liabilities | 4,439,052 | 3,816,396 |
LONG TERM LIABILITIES | ||
Deferred Lease Liability-Long Term (Note 2) | 33,047 | |
Total Long-Term Liabilities | 33,047 | |
Total Liabilities | 4,472,099 | 3,816,396 |
SHAREHOLDERS' EQUITY: | ||
Common stock, $.01 par value; 10,000,000 shares authorized; 2,331,751 shares issued and outstanding at September 27, 2019 and 2,323,468 shares issued and outstanding at March 29, 2019 | 23,318 | 23,235 |
Capital in excess of par value | 3,849,715 | 3,802,672 |
Retained earnings | 20,680,560 | 18,442,349 |
Total Shareholders' Equity | 24,553,593 | 22,268,256 |
Total Liabilities and Shareholders' Equity | $ 29,025,692 | $ 26,084,652 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 27, 2019 | Mar. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,331,751 | 2,323,468 |
Common stock, shares outstanding | 2,331,751 | 2,323,468 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Statement [Abstract] | ||||
REVENUE, net sales | $ 7,551,384 | $ 6,597,876 | $ 15,118,782 | $ 15,641,182 |
COSTS AND EXPENSES | ||||
Cost of products sold | 4,052,488 | 4,041,230 | 8,874,100 | 8,626,465 |
Selling, general and administrative | 1,232,611 | 1,042,532 | 2,345,776 | 2,077,479 |
Depreciation | 223,333 | 84,000 | 459,953 | 225,600 |
Total Costs and Expenses | 5,508,432 | 5,167,762 | 11,679,829 | 10,929,544 |
OPERATING INCOME | 2,042,952 | 1,430,114 | 3,438,953 | 4,711,638 |
Other income | 7,976 | 1,955 | 16,874 | 3,162 |
Interest expense | (19,816) | (5,304) | (33,743) | (15,552) |
NET OTHER EXPENSE | (11,840) | (3,349) | (16,869) | (12,390) |
INCOME BEFORE INCOME TAXES | 2,031,112 | 1,426,765 | 3,422,084 | 4,699,248 |
PROVISION FOR INCOME TAXES | 702,434 | 480,461 | 1,183,873 | 1,493,659 |
NET INCOME | $ 1,328,678 | $ 946,304 | $ 2,238,211 | $ 3,205,589 |
BASIC EARNINGS PER SHARE (Note 2) | $ 0.57 | $ 0.41 | $ 0.96 | $ 1.38 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.54 | $ 0.39 | $ 0.92 | $ 1.34 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (in thousands) | 2,328 | 2,323 | 2,326 | 2,319 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - FULLY DILUTED (in thousands) | 2,446 | 2,411 | 2,443 | 2,397 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Total |
Balances, beginning at Mar. 30, 2018 | $ 23,305 | $ 3,767,608 | $ 13,281,573 | $ 17,072,216 |
Balances, beginning, shares at Mar. 30, 2018 | 2,303,468 | |||
Recognition of stock compensation | 5,596 | 5,596 | ||
Exercise of stock options (Note 8) | $ 200 | (200) | 0 | |
Exercise of stock options (Note 8), shares | 20,000 | |||
Net income for the quarter ended | 3,205,589 | 3,205,589 | ||
Balances, ending at Sep. 28, 2018 | $ 23,235 | 3,773,004 | 16,487,162 | 20,283,401 |
Balances, ending, shares at Sep. 28, 2018 | 2,323,468 | |||
Balances, beginning at Jun. 29, 2018 | $ 23,235 | 3,770,206 | 15,540,858 | 19,334,299 |
Balances, beginning, shares at Jun. 29, 2018 | 2,323,468 | |||
Recognition of stock compensation | 2,798 | 2,798 | ||
Net income for the quarter ended | 946,304 | 946,304 | ||
Balances, ending at Sep. 28, 2018 | $ 23,235 | 3,773,004 | 16,487,162 | 20,283,401 |
Balances, ending, shares at Sep. 28, 2018 | 2,323,468 | |||
Balances, beginning at Mar. 29, 2019 | $ 23,235 | 3,802,672 | 18,442,349 | $ 22,268,256 |
Balances, beginning, shares at Mar. 29, 2019 | 2,323,468 | 2,323,468 | ||
Recognition of stock compensation | 14,126 | $ 14,126 | ||
Exercise of stock options (Note 8) | $ 83 | 32,917 | 33,000 | |
Exercise of stock options (Note 8), shares | 8,283 | |||
Net income for the quarter ended | 2,238,211 | 2,238,211 | ||
Balances, ending at Sep. 27, 2019 | $ 23,318 | 3,849,715 | 20,680,560 | $ 24,553,593 |
Balances, ending, shares at Sep. 27, 2019 | 2,331,751 | 2,331,751 | ||
Balances, beginning at Jun. 28, 2019 | $ 23,235 | 3,811,134 | 19,351,882 | $ 23,186,251 |
Balances, beginning, shares at Jun. 28, 2019 | 2,323,468 | |||
Recognition of stock compensation | 5,664 | 5,664 | ||
Exercise of stock options (Note 8) | $ 83 | 32,917 | 33,000 | |
Exercise of stock options (Note 8), shares | 8,283 | |||
Net income for the quarter ended | 1,328,678 | 1,328,678 | ||
Balances, ending at Sep. 27, 2019 | $ 23,318 | $ 3,849,715 | $ 20,680,560 | $ 24,553,593 |
Balances, ending, shares at Sep. 27, 2019 | 2,331,751 | 2,331,751 |
STATEMENTS OF CHANGES IN STOC_2
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) | 6 Months Ended |
Sep. 28, 2018shares | |
Statement of Stockholders' Equity [Abstract] | |
Number of options exercised by surrendering common stock shares | 75,000 |
Number of common stock shares surrendered | 55,000 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,238,211 | $ 3,205,589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 459,953 | 225,600 |
Stock compensation expense | 14,126 | 5,596 |
Increase in right of use asset leasehold | (206,541) | |
Increase in deferred lease liability | 210,711 | |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (1,682,797) | 22,250 |
Increase in inventories | (1,070,254) | (826,202) |
Increase in excess payments to commercial finance company | (608,666) | (293,970) |
Increase decrease in prepaid expenses and other current assets | (16,135) | 192,961 |
Decrease in accounts payable | (360,321) | (421,111) |
Decrease in customer advance payments | (125,689) | |
Increase in other current liabilities | 194,329 | 66,918 |
Increase in accrued corporate taxes | 1,070,979 | 828,498 |
Total adjustments | (2,120,305) | (199,460) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 117,906 | 3,006,129 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | (333,302) | (325,894) |
NET CASH USED BY INVESTING ACTIVITIES | (333,302) | (325,894) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Activity from commercial financing company | (334,306) | |
Exercise of Options for cash | 33,000 | |
NET CASH USED BY FINANCING ACTIVITIES | (301,306) | |
(DECREASE) INCREASE IN CASH | (516,702) | 2,680,235 |
CASH, beginning of period | 7,080,126 | 1,407,013 |
CASH, end of period | 6,563,424 | 4,087,248 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 31,329 | 14,052 |
Income Taxes | $ 112,895 | $ 504,662 |
INTERIM RESULTS AND BASIS OF PR
INTERIM RESULTS AND BASIS OF PRESENTATION: | 6 Months Ended |
Sep. 27, 2019 | |
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 27, 2019 and for the three and 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 27, 2019 and the results of operations and cash flows for the three and 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 three and six months ended September 27, 2019, are not necessarily indicative of the results to be expected for any subsequent quarter or the entire fiscal year. The balance sheet at March 29, 2019 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 29, 2019 included in the Company’s Annual Report on Form 10-K as filed with the SEC on July 12, 2019 and 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. 27, 2019 | |
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 connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We believe we are the only independent producer of HYPERBOLOID printed circuit board connectors 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 and distributors located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union. The customers we service are in the Military, Aerospace, Space, Medical, Oil & Gas, Industrial, Test Equipment and Commercial Electronics markets. We appear on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic (inclusive of aerospace, space, oil & gas, medical & miscellaneous) and military markets were 49.9% and 50.1%, respectively, of the Company’s net sales for the year ended March 29, 2019. Our 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 29, 2019, 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 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 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 29, 2019 was comprised of 52 weeks. The current fiscal year, ending on March 27, 2020, will be comprised of 52 weeks. Revenue Recognition: In May 2014, the Financial Accounting Standards Board issued ASC 606 “Revenue from Contracts with Customers” that, as amended on August 12, 2015, became effective for annual report periods beginning after December 15, 2017. The core principle underlying ASC 606, is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASC 606-10-05-4 sets out the following steps for an entity to follow when applying the core principle to its revenue -generating transactions: · Identify the contract with a customer · Identify the performance obligations in the contract · Determine the transaction price · Allocate the transaction price to the performance obligations · Recognize revenue when (or as) each performance obligation is satisfied The Company designs, develops and manufactures printed circuit board connectors and custom interconnects for high performance applications. All of our connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. The customers we service are in the Military, Aerospace, Space, Medical, Oil and Gas, Industrial, Test Equipment and Commercial Electronics markets. The Company’s disaggregated revenue, as of September 27, 2019 and September 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Six Months Ended Six Months ended September 27, 2019 September 28, 2018 September 27, 2019 September 28, 2018 Domestic $ 6,169,481 $ 6,004,067 $ 12,352,045 $ 14,233,476 International 1,381,903 593,809 2,766,737 $ 1,407,706 Total $ 7,551,384 $ 6,597,876 $ 15,118,782 $ 15,641,182 The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has not had an issue with uncollectible accounts receivable. The Company will accept a return of defective products 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 Company provides engineering services as part of the relationship with its customers in developing custom products. 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 an average cost on a first-in, first-out basis, which does not exceed net realizable 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. The Company recognized $108,000 for the six months ended September 27, 2019 and September 28, 2018, respectively, as a reduction of inventory due to obsolescence. Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. The Company does maintain cash balances in excess of insured limits. 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. Earnings Per Share: The Company accounts for earnings per share pursuant to ASC Topic 260, “Earnings per Share”, which requires disclosure on the Financial Statements of “basic” and “diluted” earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the year. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options for each year. As the Company reported net income for both the three months and six months ended September 27, 2019 and September 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Six months Six months NET INCOME $ 1,328,678 $ 946,304 $ 2,238,211 $ 3,205,589 BASIC EARNINGS PER COMMON SHARE $ .57 $ .41 $ .96 $ 1.38 FULLY DILUTED EARNINGS PER SHARE $ .54 $ .39 $ .92 $ 1.34 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,328,423 2,323,468 2,325,959 2,319,206 DILUTIVE EFFECT OF OPTIONS GRANTED 118,462 88,134 117,343 77,893 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- 2,446,885 2,411,602 2,443,302 2,397,099 Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments approximate their fair value due to the relatively short maturity 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. The Company utilizes estimates with respect to determining the useful lives of fixed assets as well as in the calculation of inventory obsolescence. 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,” and requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There were no long-lived asset impairments recognized by the Company for the six months ended September 27, 2019 and September 28, 2018, respectively, and currently all assets are being utilized. Stock-Based Compensation Plan: Compensation expense for stock options granted to directors, officers and key employees is based on the fair value of the award on the measurement date, which is the date of the grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other non-vested stock awards is generally the market price of the Company’s common stock on the date of the grant. Leases: ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The classification is based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Accordingly, we have adopted ASC 2016-2 as of March 30, 2019. On our balance sheet operating leases are reported as operating lease right-of-use (“ROU”) assets and deferred lease liabilities. ROU assets represent our right to use an underlying asset for the lease term and deferred lease liabilities represent our obligation to make lease payments over time arising from the lease. Operating lease ROU assets and deferred lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our contracted leases do not provide an implicit rate, we do use an incremental borrowing rate based on the information available at the transition date and commencement date in determining the present value of lease payments. This is the rate that we would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company leases space for its corporate offices and its manufacturing facility located at 140 58 th Presented below are the balances of ROU asset and the corresponding deferred lease liability and resultant amortization as of March 30, 2019 and September 27, 2019. The present value was calculated using an interest rate of six (6%) percent. ROU Deferred Amortization March 30, 2019 $ 301,957 $ 301,957 — September 27, 2019 206,541 210,711 95,416 Future lease commitments to be paid by us as of September 27, 2019 were as follows: Payments Fiscal year Operating Leases Interest Total 2020(a) $ 88,832 $ 4,828 $ 93,660 2021 121,879 3,001 124,880 Total lease commitments $ 210,711 $ 7,829 $ 218,540 (a) Represents the remainder of fiscal year 2020 which excludes the six months ended September 27, 2019. |
INVENTORIES_
INVENTORIES: | 6 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Note 3- INVENTORIES: Inventories were comprised of the following: September 27, March 29, 2019 2019 Raw materials $ 7,681,895 $ 7,053,896 Work in progress 3,046,020 2,797,006 Finished goods 2,363,782 2,170,541 $ 13,091,697 $ 12,021,443 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS: | 6 Months Ended |
Sep. 27, 2019 | |
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: September 27, March 29, 2019 2019 Prepaid insurance $ 69,491 $ 106,801 Prepaid payroll liabilities 430,214 289,311 Other prepaid expenses and Other Current Assets 51,327 138,785 $ 551,032 $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: | 6 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 5- PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment were comprised of the following: September 27, March 29, 2019 2019 Computers $ 512,420 $ 502,723 Leasehold improvements 969,253 934,648 Machinery and equipment 6,825,097 6,657,875 Tools and dyes 4,121,484 3,999,705 Furniture and fixture 179,071 179,072 Website development cost 9,785 9,785 12,617,110 12,283,808 Less: accumulated depreciation and amortization (10,183,154 ) (9,723,201 ) $ 2,433,956 $ 2,560,607 Depreciation expense for the six months ended September 27, 2019 and September 28, 2018 was $459,953 and $225,600, respectively. Depreciation expense for the three months ended September 27, 2019 and September 28, 2018 was $223,333 and $84,000, respectively. |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: | 6 Months Ended |
Sep. 27, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE FINANCING | Note 6- ACCOUNTS RECEIVABLE FINANCING: The Company has an accounts receivable financing agreement with a non-bank lending institution (“Financing 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 its lender upon receiving 60 days’ prior notice. Funds advanced by the Finance Company are secured by IEH’s accounts receivable and inventories. As of September 27, 2019, the Company reported excess payments to its Finance Company of $608,666. These excess payments are reported in the accompanying condensed Financial Statements as of September 27, 2019 as “Excess payments to commercial finance company.” As of March 29, 2019, the Company had reported a liability to its commercial finance company of $334,306. |
OTHER CURRENT LIABILITIES_
OTHER CURRENT LIABILITIES: | 6 Months Ended |
Sep. 27, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | Note 7- OTHER CURRENT LIABILITIES: Other current liabilities were comprised of the following: September 27, March 29, 2019 2019 Payroll and vacation accruals $ 1,105,044 $ 831,187 Sales commissions 64,154 80,553 Other current liabilities 2,551 65,680 $ 1,171,749 $ 977,420 |
2011 EQUITY INCENTIVE PLAN_
2011 EQUITY INCENTIVE PLAN: | 6 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
2011 EQUITY INCENTIVE PLAN | Note 8- 2011 EQUITY INCENTIVE PLAN: Stock-based compensation expense: The Company reported compensation expense of $5,664 and $14,126 during the three and six months ended September 27, 2019 and $2,398 and $5,596 during the three and six months ended September 28, 2018. Unrecognized stock-based compensation expense The Company expects to recognize $25,454 in stock option compensation expense for the entire fiscal year ended March 2020 and $16,992 for the entire fiscal year ended March 2021. The following table shows the activity for the fiscal years ended March 29, 2019 and March 30, 2018 and through September 27, 2019: Shares Weighted Avg. Remaining Aggregate Outstanding at the Beginning of the Quarter 3/29/2019 185,000 $ 6.05 7.75 $ 1,832 Granted — Exercised — Forfeited or Expired — Outstanding at the End of the Quarter 6/28/2019 185,000 $ 6.05 Fully Vested 181,000 $ 5.87 7.50 2,008 Exercisable at the End of the Quarter 181,000 Outstanding at the Beginning of the Quarter 6/28/2019 185,000 $ 6.05 Granted — Exercised (9,283 ) 6.00 Forfeited or Expired — Outstanding at the End of the Quarter 9/27/2019 175,717 $ 6.24 7.25 $ 2,418 Fully Vested 171,717 $ 5.95 Exercisable at the End of the Quarter 171,717 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in-the-money options on those dates. This amount will change based on the fair market value of the Company’s common stock. During the quarter ended September 27, 2019, three individuals opted to exercise some of their options, consequently, the issued and outstanding number of shares increased by 8,283 shares (9,283 shares exercised less 1,000 issued and outstanding shares surrendered) to 2,331,751 shares. |
CASH BONUS PLAN_
CASH BONUS PLAN: | 6 Months Ended |
Sep. 27, 2019 | |
Compensation Related Costs [Abstract] | |
CASH BONUS PLAN | Note 9- CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (“Cash Bonus Plan”) for non-union, management and administrative staff. Contributions to the Cash Bonus Plan are made by the Company only when the Company is profitable for the fiscal year. The Company accrued a contribution of $81,000 for each of the three months ended September 27, 2019 and September 28, 2018. The Company accrued a contribution provision of $162,000 for the six months ended September 27, 2019 and the six months ended September 28, 2018. |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 6 Months Ended |
Sep. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 10- COMMITMENTS AND CONTINGENCIES: 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. Based upon such Plan’s information and data as of December 31, 2018 furnished to the Company (including, without limitation, unfunded vested benefits, accumulated benefits and net assets), such Plan is fully funded. Based thereupon, the Company’s proportional share of the liability through December 31, 2018 is fully funded. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $13,329 and $24,837 for the three months ended September 29, 2019 and September 28, 2018, respectively and $26,759 and $37,042 for the six months ended September 27, 2019 and September 28, 2018, respectively. 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. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 11 - INCOME TAXES The income tax provision for three months ended September 27, 2019 and the three months ended September 28, 2018 reflect effective tax rates of 34.6% and 33.7% respectively. The Company’s effective tax rate for the six months ended September 27, 2019 and September 28, 2018 reflect effective tax rates of 34.6% and 31.8% respectively. |
REVENUE FROM MAJOR CUSTOMERS_
REVENUE FROM MAJOR CUSTOMERS: | 6 Months Ended |
Sep. 27, 2019 | |
REVENUES FROM MAJOR CUSTOMERS [Abstract] | |
REVENUE FROM MAJOR CUSTOMERS | Note 12- REVENUE FROM MAJOR CUSTOMERS: During the three months ended September 29, 2019, two customers accounted for $2,247,968 constituting 30% of the Company’s net sales. One of those customers accounted for 16% of the Company’s net sales while the second customer accounted for 14% of the Company’s net sales. During the three months ended September 28, 2018 one customer accounted for $1,065,411 constituting 16% of the Company’s net sales. During the six months ended September 27, 2019, three customers accounted for $5,729,924 or 38% of the Company’s net sales. One of those customers accounted for 16% of the Company’s net sales while the second and third customers accounted for 12% and 10% of the Company’s net sales respectively. During the six months ended September 28, 2018, three customers accounted for $6,096,486 or 39% of the Company’s net sales. One of the customers accounted for 15% of the Company’s net sales while the other two accounted for 12% each of the Company’s net sales, respectively. |
SUBSEQUENT EVENTS_
SUBSEQUENT EVENTS: | 6 Months Ended |
Sep. 27, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS: | Note 13- SUBSEQUENT EVENTS: The Company has evaluated all subsequent events through November 19, 2019, the date the financial statements were available to be issued. Based on this evaluation, 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 ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 6 Months Ended |
Sep. 27, 2019 | |
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 connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We believe we are the only independent producer of HYPERBOLOID printed circuit board connectors 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 and distributors located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union. The customers we service are in the Military, Aerospace, Space, Medical, Oil & Gas, Industrial, Test Equipment and Commercial Electronics markets. We appear on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic (inclusive of aerospace, space, oil & gas, medical & miscellaneous) and military markets were 49.9% and 50.1%, respectively, of the Company’s net sales for the year ended March 29, 2019. Our 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 29, 2019, 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 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 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 29, 2019 was comprised of 52 weeks. The current fiscal year, ending on March 27, 2020, will be comprised of 52 weeks. |
Revenue Recognition: | Revenue Recognition: In May 2014, the Financial Accounting Standards Board issued ASC 606 “Revenue from Contracts with Customers” that, as amended on August 12, 2015, became effective for annual report periods beginning after December 15, 2017. The core principle underlying ASC 606, is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASC 606-10-05-4 sets out the following steps for an entity to follow when applying the core principle to its revenue -generating transactions: · Identify the contract with a customer · Identify the performance obligations in the contract · Determine the transaction price · Allocate the transaction price to the performance obligations · Recognize revenue when (or as) each performance obligation is satisfied The Company designs, develops and manufactures printed circuit board connectors and custom interconnects for high performance applications. All of our connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. The customers we service are in the Military, Aerospace, Space, Medical, Oil and Gas, Industrial, Test Equipment and Commercial Electronics markets. The Company’s disaggregated revenue, as of September 27, 2019 and September 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Six Months Ended Six Months ended September 27, 2019 September 28, 2018 September 27, 2019 September 28, 2018 Domestic $ 6,169,481 $ 6,004,067 $ 12,352,045 $ 14,233,476 International 1,381,903 593,809 2,766,737 $ 1,407,706 Total $ 7,551,384 $ 6,597,876 $ 15,118,782 $ 15,641,182 The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has not had an issue with uncollectible accounts receivable. The Company will accept a return of defective products 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 Company provides engineering services as part of the relationship with its customers in developing custom products. 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 an average cost on a first-in, first-out basis, which does not exceed net realizable 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. The Company recognized $108,000 for the six months ended September 27, 2019 and September 28, 2018, respectively, as a reduction of inventory due to obsolescence. |
Concentration of Credit Risk: | Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. The Company does maintain cash balances in excess of insured limits. |
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. |
Earnings Per Share: | Earnings Per Share: The Company accounts for earnings per share pursuant to ASC Topic 260, “Earnings per Share”, which requires disclosure on the Financial Statements of “basic” and “diluted” earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the year. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options for each year. As the Company reported net income for both the three months and six months ended September 27, 2019 and September 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Six months Six months NET INCOME $ 1,328,678 $ 946,304 $ 2,238,211 $ 3,205,589 BASIC EARNINGS PER COMMON SHARE $ .57 $ .41 $ .96 $ 1.38 FULLY DILUTED EARNINGS PER SHARE $ .54 $ .39 $ .92 $ 1.34 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,328,423 2,323,468 2,325,959 2,319,206 DILUTIVE EFFECT OF OPTIONS GRANTED 118,462 88,134 117,343 77,893 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- 2,446,885 2,411,602 2,443,302 2,397,099 |
Fair Value of Financial Instruments: | Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments approximate their fair value due to the relatively short maturity 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. The Company utilizes estimates with respect to determining the useful lives of fixed assets as well as in the calculation of inventory obsolescence. 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,” and requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There were no long-lived asset impairments recognized by the Company for the six months ended September 27, 2019 and September 28, 2018, respectively, and currently all assets are being utilized. |
Stock-Based Compensation Plan: | Stock-Based Compensation Plan: Compensation expense for stock options granted to directors, officers and key employees is based on the fair value of the award on the measurement date, which is the date of the grant. The expense is recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other non-vested stock awards is generally the market price of the Company’s common stock on the date of the grant. |
Leases: | Leases: ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The classification is based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Accordingly, we have adopted ASC 2016-2 as of March 30, 2019. On our balance sheet operating leases are reported as operating lease right-of-use (“ROU”) assets and deferred lease liabilities. ROU assets represent our right to use an underlying asset for the lease term and deferred lease liabilities represent our obligation to make lease payments over time arising from the lease. Operating lease ROU assets and deferred lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our contracted leases do not provide an implicit rate, we do use an incremental borrowing rate based on the information available at the transition date and commencement date in determining the present value of lease payments. This is the rate that we would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company leases space for its corporate offices and its manufacturing facility located at 140 58 th Presented below are the balances of ROU asset and the corresponding deferred lease liability and resultant amortization as of March 30, 2019 and September 27, 2019. The present value was calculated using an interest rate of six (6%) percent. ROU Deferred Amortization March 30, 2019 $ 301,957 $ 301,957 — September 27, 2019 206,541 210,711 95,416 Future lease commitments to be paid by us as of September 27, 2019 were as follows: Payments Fiscal year Operating Leases Interest Total 2020(a) $ 88,832 $ 4,828 $ 93,660 2021 121,879 3,001 124,880 Total lease commitments $ 210,711 $ 7,829 $ 218,540 (a) Represents the remainder of fiscal year 2020 which excludes the six months ended September 27, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregated Revenue | The Company’s disaggregated revenue, as of September 27, 2019 and September 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Six Months Ended Six Months ended September 27, 2019 September 28, 2018 September 27, 2019 September 28, 2018 Domestic $ 6,169,481 $ 6,004,067 $ 12,352,045 $ 14,233,476 International 1,381,903 593,809 2,766,737 $ 1,407,706 Total $ 7,551,384 $ 6,597,876 $ 15,118,782 $ 15,641,182 |
Schedule of Basic and Diluted Income Per Share | As the Company reported net income for both the three months and six months ended September 27, 2019 and September 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Six months Six months NET INCOME $ 1,328,678 $ 946,304 $ 2,238,211 $ 3,205,589 BASIC EARNINGS PER COMMON SHARE $ .57 $ .41 $ .96 $ 1.38 FULLY DILUTED EARNINGS PER SHARE $ .54 $ .39 $ .92 $ 1.34 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,328,423 2,323,468 2,325,959 2,319,206 DILUTIVE EFFECT OF OPTIONS GRANTED 118,462 88,134 117,343 77,893 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- 2,446,885 2,411,602 2,443,302 2,397,099 |
Schedule of Deferred Lease Liability | Presented below are the balances of ROU asset and the corresponding deferred lease liability and resultant amortization as of March 30, 2019 and September 27, 2019. The present value was calculated using an interest rate of six (6%) percent. ROU Deferred Amortization March 30, 2019 $ 301,957 $ 301,957 — September 27, 2019 206,541 210,711 95,416 |
Schedule of Future Lease Commitments | Future lease commitments to be paid by us as of September 27, 2019 were as follows: Payments Fiscal year Operating Leases Interest Total 2020(a) $ 88,832 $ 4,828 $ 93,660 2021 121,879 3,001 124,880 Total lease commitments $ 210,711 $ 7,829 $ 218,540 |
INVENTORIES_ (Tables)
INVENTORIES: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories were comprised of the following: September 27, March 29, 2019 2019 Raw materials $ 7,681,895 $ 7,053,896 Work in progress 3,046,020 2,797,006 Finished goods 2,363,782 2,170,541 $ 13,091,697 $ 12,021,443 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
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: September 27, March 29, 2019 2019 Prepaid insurance $ 69,491 $ 106,801 Prepaid payroll liabilities 430,214 289,311 Other prepaid expenses and Other Current Assets 51,327 138,785 $ 551,032 $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment were comprised of the following: September 27, March 29, 2019 2019 Computers $ 512,420 $ 502,723 Leasehold improvements 969,253 934,648 Machinery and equipment 6,825,097 6,657,875 Tools and dyes 4,121,484 3,999,705 Furniture and fixture 179,071 179,072 Website development cost 9,785 9,785 12,617,110 12,283,808 Less: accumulated depreciation and amortization (10,183,154 ) (9,723,201 ) $ 2,433,956 $ 2,560,607 |
OTHER CURRENT LIABILITIES_ (Tab
OTHER CURRENT LIABILITIES: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities were comprised of the following: September 27, March 29, 2019 2019 Payroll and vacation accruals $ 1,105,044 $ 831,187 Sales commissions 64,154 80,553 Other current liabilities 2,551 65,680 $ 1,171,749 $ 977,420 |
2011 EQUITY INCENTIVE PLAN_ (Ta
2011 EQUITY INCENTIVE PLAN: (Tables) | 6 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Option Activity | The following table shows the activity for the fiscal years ended March 29, 2019 and March 30, 2018 and through September 27, 2019: Shares Weighted Avg. Remaining Aggregate Outstanding at the Beginning of the Quarter 3/29/2019 185,000 $ 6.05 7.75 $ 1,832 Granted — Exercised — Forfeited or Expired — Outstanding at the End of the Quarter 6/28/2019 185,000 $ 6.05 Fully Vested 181,000 $ 5.87 7.50 2,008 Exercisable at the End of the Quarter 181,000 Outstanding at the Beginning of the Quarter 6/28/2019 185,000 $ 6.05 Granted — Exercised (9,283 ) 6.00 Forfeited or Expired — Outstanding at the End of the Quarter 9/27/2019 175,717 $ 6.24 7.25 $ 2,418 Fully Vested 171,717 $ 5.95 Exercisable at the End of the Quarter 171,717 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Number of days in fiscal period | 364 days | 364 days | |
FDIC coverage of deposits | $ 250,000 | ||
Recognition of stock option compensation expense | $ 14,126 | $ 5,596 | |
Commercial Electronic Markets [Member] | Sales Revenue, Net [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of sales | 49.90% | ||
Military Markets [Member] | Sales Revenue, Net [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of sales | 50.10% | ||
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 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Disaggregated Revenue) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 7,551,384 | $ 6,597,876 | $ 15,118,782 | $ 15,641,182 |
Domestic Country [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 6,169,481 | 6,004,067 | 12,352,045 | 14,233,476 |
International Country [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 1,381,903 | $ 593,809 | $ 2,766,737 | $ 1,407,706 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Basic and Diluted Income Per Share) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Accounting Policies [Abstract] | ||||
NET INCOME | $ 1,328,678 | $ 946,304 | $ 2,238,211 | $ 3,205,589 |
BASIC EARNINGS PER COMMON SHARE | $ 0.57 | $ 0.41 | $ 0.96 | $ 1.38 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.54 | $ 0.39 | $ 0.92 | $ 1.34 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC | 2,328,000 | 2,323,000 | 2,326,000 | 2,319,000 |
DILUTIVE EFFECT OF OPTIONS GRANTED | 118,462 | 88,134 | 117,343 | 77,893 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-FULLY DILUTED | 2,446,000 | 2,411,000 | 2,443,000 | 2,397,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Deferred Lease Liability) (Details) - USD ($) | Sep. 27, 2019 | Mar. 29, 2019 |
Accounting Policies [Abstract] | ||
Interest rate percentage to calculate present value | 6.00% | 6.00% |
Right of use Asset-Leasehold | $ 206,541 | |
Deferred Lease Liability | 177,664 | |
Leases Amortization | $ 95,416 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Future Lease Commitments) (Details) | Sep. 27, 2019USD ($) |
Accounting Policies [Abstract] | |
Payments operating leases - 2020 | $ 88,832 |
Interest 2020 | 4,828 |
Total - 2020 | 93,660 |
Payments operating leases - 2021 | 121,879 |
Interest 2020 | 3,001 |
Total - 2021 | 124,880 |
Payments operating leases | 210,711 |
Interest | 7,829 |
Total lease commitments | $ 218,540 |
INVENTORIES_ (Details)
INVENTORIES: (Details) - USD ($) | Sep. 27, 2019 | Mar. 29, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,681,895 | $ 7,053,896 |
Work in progress | 3,046,020 | 2,797,006 |
Finished goods | 2,363,782 | 2,170,541 |
Inventories | $ 13,091,697 | $ 12,021,443 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Details) - USD ($) | Sep. 27, 2019 | Mar. 29, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 69,491 | $ 106,801 |
Prepaid payroll liabilities | 430,214 | 289,311 |
Other prepaid expenses and Other Current Assets | 51,327 | 138,785 |
Prepaid expenses and other current assets | $ 551,032 | $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT: (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Mar. 29, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 12,617,110 | $ 12,617,110 | $ 12,283,808 | ||
Less: accumulated depreciation and amortization | (10,183,154) | (10,183,154) | (9,723,201) | ||
Property, Plant and Equipment, Net | 2,433,956 | 2,433,956 | 2,560,607 | ||
Depreciation expense | 223,333 | $ 84,000 | 459,953 | $ 225,600 | |
Computers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 512,420 | 512,420 | 502,723 | ||
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 969,253 | 969,253 | 934,648 | ||
Machinery and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 6,825,097 | 6,825,097 | 6,657,875 | ||
Tools and dies [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 4,121,484 | 4,121,484 | 3,999,705 | ||
Furniture and fixture [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 179,071 | 179,071 | 179,072 | ||
Website development cost [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 9,785 | $ 9,785 | $ 9,785 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: (Narrative) (Details) - USD ($) | 6 Months Ended | |
Sep. 27, 2019 | Mar. 29, 2019 | |
Short-term Debt [Line Items] | ||
Excess payments to the Factor | $ 608,666 | |
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 | |
Excess payments to the Factor | $ 608,666 | $ 334,306 |
OTHER CURRENT LIABILITIES_ (Det
OTHER CURRENT LIABILITIES: (Details) - USD ($) | Sep. 27, 2019 | Mar. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and vacation accruals | $ 1,105,044 | $ 831,187 |
Sales commissions | 64,154 | 80,553 |
Other current liabilities | 2,551 | 65,680 |
Total other current liabilities | $ 1,171,749 | $ 977,420 |
2011 EQUITY INCENTIVE PLAN_ (Na
2011 EQUITY INCENTIVE PLAN: (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Mar. 29, 2021 | Mar. 29, 2020 | Mar. 29, 2019 | |
Recognition of stock compensation expense | $ 5,664 | $ 2,398 | $ 14,126 | $ 5,596 | |||
Number of shares increase in issued and outstanding | 8,283 | ||||||
Number of common stock shares surrendered | 1,000 | 55,000 | |||||
Common stock, shares issued | 2,331,751 | 2,331,751 | 2,323,468 | ||||
Common stock, shares outstanding | 2,331,751 | 2,331,751 | 2,323,468 | ||||
Stock Option [Member] | Subsequent Event [Member] | |||||||
Unrecognized stock-based compensation expense | $ 16,992 | $ 25,454 |
2011 EQUITY INCENTIVE PLAN_ (Op
2011 EQUITY INCENTIVE PLAN: (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | |
Shares | |||
Outstanding at the Beginning | 185,000 | 185,000 | |
Granted | |||
Exercised | (9,283) | ||
Forfeited or Expired | |||
Outstanding at the End | 175,717 | 185,000 | 185,000 |
Fully Vested | 171,717 | 181,000 | |
Exercisable at the End | 171,717 | 181,000 | |
Weighted Avg. Exercise Price | |||
Outstanding at the Beginning | $ 6.05 | $ 6.05 | |
Exercised | 6 | ||
Outstanding at the End | 6.24 | 6.05 | $ 6.05 |
Fully Vested | $ 5.95 | $ 5.87 | |
Remaining Contractual Term (Years) | |||
Outstanding | 7 years 2 months 30 days | 7 years 9 months | |
Fully Vested | 7 years 6 months | ||
Aggregate Intrinsic Value | |||
Outstanding at the Beginning | $ 1,832 | $ 1,832 | |
Fully Vested | 2,008 | ||
Outstanding at the End | $ 2,418 | $ 1,832 | $ 1,832 |
CASH BONUS PLAN_ (Narrative) (D
CASH BONUS PLAN: (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Compensation Related Costs [Abstract] | ||||
Cash Bonus Plan, contribution | $ 81,000 | $ 81,000 | $ 162,000 | $ 162,000 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Pension plan contributions | $ 13,329 | $ 24,837 | $ 26,759 | $ 37,042 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 34.60% | 33.70% | 34.60% | 31.80% |
REVENUE FROM MAJOR CUSTOMERS_ (
REVENUE FROM MAJOR CUSTOMERS: (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue derived from customers | $ 7,551,384 | $ 6,597,876 | $ 15,118,782 | $ 15,641,182 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Concentration risk | 30.00% | 38.00% | 39.00% | ||
Revenue derived from customers | $ 2,247,968 | $ 1,065,411 | $ 5,729,924 | $ 6,096,486 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | |||||
Concentration risk | 16.00% | 16.00% | 16.00% | 15.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer Two [Member] | |||||
Concentration risk | 14.00% | 12.00% | 12.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer Three [Member] | |||||
Concentration risk | 10.00% |