Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Aug. 12, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TEL INSTRUMENT ELECTRONICS CORP | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 3,251,387 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000096885 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Current assets: | ' | ' |
Cash and cash equivalents | $202,458 | $232,118 |
Accounts receivable, net | 844,712 | 2,095,640 |
Inventories, net | 4,568,538 | 4,025,391 |
Prepaid expenses and other current assets | 580,220 | 263,592 |
Deferred financing costs | 108,321 | 108,321 |
Deferred income tax asset | 1,089,538 | 1,089,538 |
Total current assets | 7,393,787 | 7,814,600 |
Equipment and leasehold improvements, net | 392,945 | 450,873 |
Deferred financing costs – long-term | 21,062 | 48,142 |
Deferred income tax asset – non-current | 2,386,250 | 2,273,068 |
Other long-term assets | 47,670 | 47,670 |
Total assets | 10,241,714 | 10,634,353 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 745,090 | 718,848 |
Capital lease obligations – current portion | 37,183 | 53,608 |
Accounts payable and accrued liabilities | 3,329,588 | 3,332,181 |
Progress billings | 775,475 | 775,475 |
Deferred revenues – current portion | 4,226 | 37,452 |
Accrued payroll, vacation pay and payroll taxes | 473,174 | 444,238 |
Total current liabilities | 5,364,736 | 5,361,802 |
Subordinated notes payable - related parties | 250,000 | 250,000 |
Capital lease obligations – long-term | 17,345 | 21,320 |
Long-term debt, net of debt discount | 445,089 | 596,526 |
Deferred revenues – long-term | 133,650 | 133,650 |
Warrant liability | 488,190 | 354,309 |
Other long-term liabilities | 54,000 | 56,100 |
Total liabilities | 6,753,010 | 6,773,707 |
Stockholders' equity: | ' | ' |
Common stock, par value $0.10 per share, 3,251,387 shares issued and outstanding as of June 30, 2014 and March 31, 2014 | 325,136 | 325,136 |
Additional paid-in capital | 7,999,163 | 7,987,100 |
Accumulated deficit | -4,835,595 | -4,451,590 |
Total stockholders' equity | 3,488,704 | 3,860,646 |
Total liabilities and stockholders' equity | $10,241,714 | $10,634,353 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Common stock, par value (in Dollars per share) | $0.10 | $0.10 |
Common stock, shares issued | 3,251,387 | 3,251,387 |
Common stock, shares outstanding | 3,251,387 | 3,251,387 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Net sales | $3,129,076 | $3,199,975 |
Cost of sales | 2,008,859 | 2,013,817 |
Gross margin | 1,120,217 | 1,186,158 |
Operating expenses: | ' | ' |
Selling, general and administrative | 879,193 | 653,250 |
Engineering, research and development | 483,896 | 480,377 |
Total operating expenses | 1,363,089 | 1,133,627 |
Income (loss) from operations | -242,872 | 52,531 |
Other income (expense): | ' | ' |
Amortization of debt discount | -30,874 | -22,987 |
Amortization of deferred financing costs | -27,080 | -27,080 |
Change in fair value of common stock warrants | -133,881 | 24,572 |
Loss on extinguishment of debt | 0 | -26,600 |
Interest expense | -62,480 | -104,077 |
Total other income (expense) | -254,315 | -156,172 |
Loss before income taxes | -497,187 | -103,641 |
Income tax benefit | -113,182 | -17,869 |
Net loss | ($384,005) | ($85,772) |
Net loss per share: | ' | ' |
Basic loss per common share (in Dollars per share) | ($0.12) | ($0.03) |
Diluted loss per common share (in Dollars per share) | ($0.12) | ($0.03) |
Weighted average shares outstanding: | ' | ' |
Basic (in Shares) | 3,251,387 | 3,079,871 |
Diluted (in Shares) | 3,251,387 | 3,079,871 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($384,005) | ($85,772) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Deferred income taxes | -113,182 | -17,869 |
Depreciation and amortization | 45,062 | 53,351 |
Provision for inventory obsolescence | 5,000 | 0 |
Amortization of debt discount | 30,874 | 22,987 |
Amortization of deferred financing costs | 27,080 | 27,080 |
Loss on extinguishment of debt | 0 | 26,600 |
Change in fair value of common stock warrant | 133,881 | -24,572 |
Non-cash stock-based compensation | 12,063 | 16,358 |
Changes in assets and liabilities: | ' | ' |
Decrease (increase) in accounts receivable | 1,250,928 | -412,173 |
(Increase) decrease in inventories, net | -534,136 | 763,938 |
(Increase) decrease in prepaid expenses & other | -316,628 | 28,810 |
Decrease in accounts payable and other accrued liabilities | -2,593 | -1,301,001 |
Increase (decrease) in accrued payroll, vacation pay & withholdings | 28,936 | -10,618 |
Decrease in deferred revenues | -33,226 | -7,339 |
Increase in progress billings | 0 | 858,050 |
Decrease in other long-term liabilities | -2,100 | 0 |
Net cash provided by (used in) operating activities | 147,954 | -62,170 |
Cash flows from investing activities: | ' | ' |
Purchases of equipment | -1,145 | 0 |
Net cash used in investing activities | -1,145 | 0 |
Cash flows from financing activities: | ' | ' |
Proceeds from note payable – related party | 0 | 100,000 |
Repayment of long-term debt | -156,069 | -136,540 |
Repayment of capitalized lease obligations | -20,400 | -17,637 |
Net cash used in financing activities | -176,469 | -54,177 |
Net decrease in cash and cash equivalents | -29,660 | -116,347 |
Cash and cash equivalents at beginning of period | 232,118 | 310,297 |
Cash and cash equivalents at end of period | 202,458 | 193,950 |
Supplemental cash flow information: | ' | ' |
Taxes paid | 20,500 | 0 |
Interest paid | 53,556 | 101,554 |
Conversion of Debt [Member] | ' | ' |
Supplemental non-cash information: | ' | ' |
Conversion of debt and accrued interest to equity | 0 | 600,000 |
Conversion of Accrued Interest [Member] | ' | ' |
Supplemental non-cash information: | ' | ' |
Conversion of debt and accrued interest to equity | $0 | $37,400 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Basis of Accounting [Text Block] | ' |
Note 1 – Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Tel-Instrument Electronics Corp (the “Company” or “TIC”) as of June 30, 2014, the results of operations for the three months ended June 30, 2014 and June 30, 2013, and statements of cash flows for the three months ended June 30, 2014 and June 30, 2013. These results are not necessarily indicative of the results to be expected for the full year. The financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include disclosures normally made in an Annual Report on Form 10-K. The March 31, 2014 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014 , as filed with the United States Securities and Exchange Commission (the “SEC”) on June 30, 2014. | |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
Note 2 – Summary of Significant Accounting Policies | |
During the three months ended June 30, 2014, there have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2014, as filed with the SEC on June 30, 2014. | |
Note_3_Accounts_Receivable_net
Note 3 - Accounts Receivable, net | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
Note 3 – Accounts Receivable, net | |||||||||
The following table sets forth the components of accounts receivable: | |||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Government | $ | 552,100 | $ | 1,982,215 | |||||
Commercial | 319,894 | 140,707 | |||||||
Less: Allowance for doubtful accounts | (27,282 | ) | (27,282 | ) | |||||
$ | 844,712 | $ | 2,095,640 | ||||||
Note_4_Inventories_net
Note 4 - Inventories, net | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
Note 4 – Inventories, net | |||||||||
Inventories consist of: | |||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Purchased parts | $ | 3,169,621 | $ | 3,085,070 | |||||
Work-in-process | 1,597,284 | 1,134,714 | |||||||
Finished goods | 11,633 | 10,607 | |||||||
Less: Inventory reserve | (210,000 | ) | (205,000 | ) | |||||
$ | 4,568,538 | $ | 4,025,391 | ||||||
Note_5_Loss_Per_Share
Note 5 - Loss Per Share | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
Note 5 – Loss Per Share | |||||||||
Net loss per share has been computed according to FASB ASC 260, “Earnings per Share,” which requires a dual presentation of basic and diluted loss per share (“EPS”). Basic EPS represents net loss divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS reflects the potential dilution that could occur if securities, including warrants and options, were converted into common stock. The dilutive effect of outstanding warrants and options is reflected in earnings per share by use of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation costs attributed to future services. | |||||||||
Diluted loss per share for the three months ended June 30, 2014 and 2013 does not include common stock equivalents, as these stock equivalents would be anti-dilutive. | |||||||||
Three Months Ended | Three Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Basic net loss per share computation: | |||||||||
Net loss | $ | (384,005 | ) | $ | (85,772 | ) | |||
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 | |||||||
Basic net loss per share | $ | (0.12 | ) | $ | (0.03 | ) | |||
Diluted net loss per share computation: | |||||||||
Net loss | $ | (384,005 | ) | $ | (85,772 | ) | |||
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 | |||||||
Incremental shares attributable to the assumed exercise of outstanding stock options | - | - | |||||||
Total adjusted weighted-average shares | 3,251,387 | 3,079,871 | |||||||
Diluted net loss per share | $ | (0.12 | ) | $ | (0.03 | ) | |||
For the three months ended June 30, 2014 and 2013, all outstanding warrants and options were excluded from the computation of diluted loss per share because their effect would be anti-dilutive. | |||||||||
Note_6_LongTerm_Debt
Note 6 - Long-Term Debt | 3 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Long-term Debt [Text Block] | ' |
Note 6 – Long-Term Debt | |
In September 2010, the Company entered into an agreement with BCA Mezzanine Fund LLP (“BCA”) to loan the Company $2,500,000 in the form of a Promissory Note (the “Note”). The Note contains a number of affirmative and negative covenants which restrict our operations. For the quarter ended June 30, 2014, the Company was not in compliance with two of the four covenants related to maintaining agreed upon financial ratios for fixed charges and debt service. On August 11, 2014 the Company received a waiver from BCA on each of the above mentioned covenants. | |
Note_7_Segment_Information
Note 7 - Segment Information | 3 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||
Note 7 – Segment Information | |||||||||||||||||||||
In accordance with FASB ASC 280, “Disclosures about Segments of an Enterprise and related information,” the Company determined it has two reportable segments - avionics government and avionics commercial. There are no inter-segment revenues. | |||||||||||||||||||||
The Company is organized primarily on the basis of its avionics products. The avionics government segment consists primarily of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries either directly or through distributors. The avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines, directly or through commercial distributors, and to general aviation repair and maintenance shops. The Company develops and designs test equipment for the avionics industry and as such, the Company’s products and designs cross segments. | |||||||||||||||||||||
Management evaluates the performance of its segments and allocates resources to them based on gross margin. The Company’s general and administrative costs and sales and marketing expenses, and engineering costs are not segment specific. As a result, all operating expenses are not managed on a segment basis. Net interest includes expenses on debt and income earned on cash balances, both maintained at the corporate level. | |||||||||||||||||||||
The table below presents information about reportable segments within the avionics business for the three month periods ending June 30, 2014 and 2013: | |||||||||||||||||||||
Three Months Ended | Avionics | Avionics | Avionics | Corporate | Total | ||||||||||||||||
June 30, 2014 | Government | Commercial | Total | Items | |||||||||||||||||
Net sales | $ | 2,520,723 | $ | 608,353 | $ | 3,129,076 | - | $ | 3,129,076 | ||||||||||||
Cost of sales | 1,514,415 | 494,444 | 2,008,859 | - | 2,008,859 | ||||||||||||||||
Gross margin | 1,006,308 | 113,909 | 1,120,217 | - | 1,120,217 | ||||||||||||||||
Engineering, research, and development | 483,896 | - | 483,896 | ||||||||||||||||||
Selling, general and administrative | 292,383 | 586,810 | 879,193 | ||||||||||||||||||
Amortization of debt discount | - | 30,874 | 30,874 | ||||||||||||||||||
Amortization of deferred financing costs | - | 27,080 | 27,080 | ||||||||||||||||||
Change in fair value of common stock warrants | - | 133,881 | 133,881 | ||||||||||||||||||
Interest expense, net | - | 62,480 | 62,480 | ||||||||||||||||||
Total expenses | 776,279 | 841,125 | 1,617,404 | ||||||||||||||||||
Income (loss) before income taxes | $ | 343,938 | $ | (841,125 | ) | $ | (497,187 | ) | |||||||||||||
Three Months Ended | Avionics | Avionics | Avionics | Corporate | |||||||||||||||||
June 30, 2013 | Government | Commercial | Total | Items | Total | ||||||||||||||||
Net sales | $ | 2,802,842 | $ | 397,133 | $ | 3,199,975 | - | $ | 3,199,975 | ||||||||||||
Cost of sales | 1,662,246 | 351,571 | 2,013,817 | - | 2,013,817 | ||||||||||||||||
Gross margin | 1,140,596 | 45,562 | 1,186,158 | - | 1,186,158 | ||||||||||||||||
Engineering, research, and development | 480,377 | 480,377 | |||||||||||||||||||
Selling, general, and administrative | 264,145 | 389,105 | 653,250 | ||||||||||||||||||
Amortization of debt discount | - | 22,987 | 22,987 | ||||||||||||||||||
Amortization of deferred financing costs | - | 27,080 | 27,080 | ||||||||||||||||||
Loss on extinguishment of debt | - | 26,600 | 26,600 | ||||||||||||||||||
Change in fair value of common stock warrants | - | (24,572 | ) | (24,572 | ) | ||||||||||||||||
Interest (income) expense, net | - | 104,077 | 104,077 | ||||||||||||||||||
Total expenses | 744,522 | 545,277 | 1,289,799 | ||||||||||||||||||
Income (loss) before income taxes | $ | 441,636 | $ | (545,277 | ) | $ | (103,641 | ) | |||||||||||||
Note_8_Income_Taxes
Note 8 - Income Taxes | 3 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Note 8 – Income Taxes | |
The Company adopted FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, effective April 1, 2007 (“ASC 740-10”). ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company does not have any unrecognized tax benefits. | |
The tax effect of temporary differences, primarily net operating loss carryforwards, asset reserves and accrued liabilities, gave rise to the Company’s deferred tax asset in the accompanying June 30, 2014 and March 31, 2014 condensed consolidated balance sheets. Deferred income taxes are recognized for the tax consequence of such temporary differences at the enacted tax rate expected to be in effect when the differences reverse. | |
Note_9_Fair_Value_Measurements
Note 9 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||||||||||||
Note 9 – Fair Value Measurements | |||||||||||||||||||||||||||||||||||
FASB ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and expands disclosures about fair value measurements. | |||||||||||||||||||||||||||||||||||
As defined in ASC 820-10, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observation of those inputs. ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). | |||||||||||||||||||||||||||||||||||
The three levels of the fair value hierarchy defined by ASC 820-10 are as follows: | |||||||||||||||||||||||||||||||||||
· | Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. | ||||||||||||||||||||||||||||||||||
· | Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. | ||||||||||||||||||||||||||||||||||
· | Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||||||||||||||||||||
The valuation techniques that may be used to measure fair value are as follows: | |||||||||||||||||||||||||||||||||||
· | Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | ||||||||||||||||||||||||||||||||||
· | Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models and excess earnings method. | ||||||||||||||||||||||||||||||||||
· | Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). | ||||||||||||||||||||||||||||||||||
The carrying value of the Company’s borrowings is a reasonable estimate of its fair value as borrowings under the Company’s credit facility reflect currently available terms and conditions for similar debt. | |||||||||||||||||||||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of June 30, 2014 and March 31, 2014. As required by ASC 820-10, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||||||||||||
30-Jun-14 | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||
Total Assets | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Warrant liability | - | - | 488,190 | 488,190 | |||||||||||||||||||||||||||||||
Total Liabilities | $ | - | $ | - | $ | 488,190 | $ | 488,190 | |||||||||||||||||||||||||||
31-Mar-14 | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||
Total Assets | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Warrant liability | - | - | 354,309 | 354,309 | |||||||||||||||||||||||||||||||
Total Liabilities | $ | - | $ | - | $ | 354,309 | $ | 354,309 | |||||||||||||||||||||||||||
The Company adopted the guidance of ASC 815 “Derivative and Hedging”, which requires that we mark the value of our warrant liability (see Note 6) to market and recognize the change in valuation in our statement of operations each reporting period. Determining the warrant liability to be recorded requires us to develop estimates to be used in calculating the fair value of the warrant. The fair value of the warrants is calculated using the Black-Scholes valuation model. | |||||||||||||||||||||||||||||||||||
The following table provides a summary of the changes in fair value of our Level 3 financial liabilities from March 31, 2014 through June 30, 2014, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to the liability held at June 30, 2014: | |||||||||||||||||||||||||||||||||||
Level 3 Reconciliation | Beginning at beginning of period | Gains and losses for the period | Purchases, issuances, sales | Transfers in or out of Level 3 | Balance at the end of period | ||||||||||||||||||||||||||||||
(realized and unrealized) | and settlements, net | ||||||||||||||||||||||||||||||||||
Warrant liability | 354,309 | 133,881 | - | - | 488,190 | ||||||||||||||||||||||||||||||
Total Liabilities | $ | 354,309 | $ | 133,881 | $ | - | $ | - | $ | 488,190 | |||||||||||||||||||||||||
The common stock warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign corporation. The warrants do not qualify for hedge accounting, and, as such, all changes in the fair value of these warrants are recognized as other income/expense in the statement of operations until such time as the warrants are exercised or expire. Since these common stock warrants do not trade in an active securities market, the Company recognizes a warrant liability and estimates the fair value of these warrants using the Black-Scholes options model using the following assumptions: | |||||||||||||||||||||||||||||||||||
Values at Inception | |||||||||||||||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 6.7 | 28.51 | % | 9 | 2.81 | % | $ | 267,848 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 6.7 | 28.51 | % | 5 | 1.59 | % | $ | 13,808 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 3.9 | 42.04 | % | 7 | 0.94 | % | $ | 66,193 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 3.9 | 42.04 | % | 7 | 0.94 | % | $ | 26,477 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 3.5 | 42.45 | % | 6.83 | 1.09 | % | $ | 21,441 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 3.8 | 41.25 | % | 6.58 | 1.43 | % | $ | 23,714 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 3.32 | 40.26 | % | 6.17 | 2 | % | $ | 19,523 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 3.69 | 40.2 | % | 6.08 | 2.01 | % | $ | 21,587 | ||||||||||||||||||||||
Values at March 31, 2014 | |||||||||||||||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 123,564 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 4.42 | 43.35 | % | 1.45 | 0.44 | % | $ | 2,498 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 77,626 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 31,050 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,892 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,310 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 31,163 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,206 | ||||||||||||||||||||||
Values at June 30, 2014 | |||||||||||||||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 174,114 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 5.44 | 42.56 | % | 1.2 | 0.47 | % | $ | 4,415 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 105,124 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 42,049 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 40,624 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 39,902 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 42,189 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 39,773 | ||||||||||||||||||||||
The volatility calculation was based on the 54 months for the Company’s stock price prior to the measurement date, utilizing January 1, 2010 as the initial period, as the Company believes that this is the best indicator of future performance, and the source of the risk free interest rate is the US Treasury rate. The exercise price is per the agreement, the fair market value is the closing price of our stock on the date of measurement, and the expected life is based on management’s current estimate of when the warrants will be exercised. All inputs to the Black-Scholes options model are evaluated each reporting period. | |||||||||||||||||||||||||||||||||||
Note_10_Reclassifications
Note 10 - Reclassifications | 3 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Reclassifications [Text Block] | ' |
Note 10 – Reclassifications | |
Certain prior year and period amounts have been reclassified to conform to the current period presentation. | |
Note_11_Litigation
Note 11 - Litigation | 3 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
Note 11 – Litigation | |
On March 24, 2009, Aeroflex Wichita, Inc. (“Aeroflex”) filed a petition against the Company and two of its employees in the District Court, Sedgwick County, Kansas, Case No. 09 CV 1141 (the “Aeroflex Action”), alleging that the Company and its two employees misappropriated Aeroflex’s proprietary technology in connection with the Company winning a substantial contract from the U.S. Army (the “Award”), to develop new Mode-5 radar test sets and kits to upgrade the existing TS-4530 radar test sets to Mode 5. Aeroflex’s petition alleges that in connection with the Award, the Company and its named employees misappropriated Aeroflex’s trade secrets; tortiously interfered with its business relationship; conspired to harm Aeroflex and tortiously interfered with its contract and seeks injunctive relief and damages. The central basis of all the claims in the Aeroflex Action is that the Company misappropriated and used Aeroflex proprietary technology and confidential information in winning the Award. In February 2009, subsequent to the Award to the Company, Aeroflex filed a protest of the Award with the Government Accounting Office (“GAO”). In its protest, Aeroflex alleged, inter alia, that the Company used Aeroflex’s proprietary technology in order to win the Award, the same material allegations as were later alleged in the Aeroflex Action. On or about March 17, 2009, the U.S. Army Contracts Attorney and the U.S. Army Contracting Officer each filed a statement with the GAO, expressly rejecting Aeroflex’s allegations that the Company used or infringed Aeroflex proprietary technology in winning the Award, and concluding that the Company had used only its own proprietary technology. On April 6, 2009, Aeroflex withdrew its protest. | |
In December 2009, the Kansas District Court dismissed on jurisdiction grounds the Aeroflex Action. Aeroflex appealed this decision. In May 2012, the Kansas Supreme Court reversed the decision and remanded the Aeroflex Action to the District Court for further proceedings. The Company has been in engaged in discovery and depositions for the last two quarters, which has resulted in substantially higher legal expense. The case is currently set for trial on May 19, 2015, but this date may continue to slip. Tel is optimistic as to the outcome of this litigation. However, the outcome of any litigation is unpredictable and an adverse decision in this matter could have a material adverse effect on our financial condition, results of operations or liquidity. | |
On October 9, 2013, the SEC notified the Company that it may be in violation of Section 16(a) for failure to accurately and timely file beneficial ownership reports (the “Filings”) for certain officers and directors. The Company accepted responsibility for filing all such reports on behalf of each officer and director. | |
The Company apparently made certain coding errors with respect to certain of the Filings, in addition to, not filing within two business days of a reportable transaction as reported by an officer or director. Based on the above, the SEC notified the Company that it may be in violation of Section 16(a). Currently, all transactions by the Holders have been disclosed with the SEC and the Company believes that the transactions which required timely Section 16(a) reports did not involve a material amount of equity securities. Additionally, no sales were made by any officer or director and the violation is related to disclosure only. | |
The Company has made an Offer to Settle to the Commission and is finalizing such Offer. The Company has also revised its procedures for Section 16(a) reports to ensure complete compliance. | |
Other than the matters outlined above, we are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of executive officers of our Company, threatened against or affecting our Company, or our common stock in which an adverse decision could have a material effect. | |
Note_12_New_Accounting_Pronoun
Note 12 - New Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
Note 12 – New Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standard Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on April 1, 2017. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and management is currently evaluating which transition approach to use. The Company is currently assessing the impact that adopting this new accounting guidance will have on its condensed consolidated financial statements and footnote disclosures. | |
No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s condensed consolidated financial statements. | |
Note_3_Accounts_Receivable_net1
Note 3 - Accounts Receivable, net (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 'The following table sets forth the components of accounts receivable: | ||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Government | $ | 552,100 | $ | 1,982,215 | |||||
Commercial | 319,894 | 140,707 | |||||||
Less: Allowance for doubtful accounts | (27,282 | ) | (27,282 | ) | |||||
$ | 844,712 | $ | 2,095,640 |
Note_4_Inventories_net_Tables
Note 4 - Inventories, net (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventories consist of: | ||||||||
June 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Purchased parts | $ | 3,169,621 | $ | 3,085,070 | |||||
Work-in-process | 1,597,284 | 1,134,714 | |||||||
Finished goods | 11,633 | 10,607 | |||||||
Less: Inventory reserve | (210,000 | ) | (205,000 | ) | |||||
$ | 4,568,538 | $ | 4,025,391 |
Note_5_Loss_Per_Share_Tables
Note 5 - Loss Per Share (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'Diluted loss per share for the three months ended June 30, 2014 and 2013 does not include common stock equivalents, as these stock equivalents would be anti-dilutive. | ||||||||
Three Months Ended | Three Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Basic net loss per share computation: | |||||||||
Net loss | $ | (384,005 | ) | $ | (85,772 | ) | |||
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 | |||||||
Basic net loss per share | $ | (0.12 | ) | $ | (0.03 | ) | |||
Diluted net loss per share computation: | |||||||||
Net loss | $ | (384,005 | ) | $ | (85,772 | ) | |||
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 | |||||||
Incremental shares attributable to the assumed exercise of outstanding stock options | - | - | |||||||
Total adjusted weighted-average shares | 3,251,387 | 3,079,871 | |||||||
Diluted net loss per share | $ | (0.12 | ) | $ | (0.03 | ) |
Note_7_Segment_Information_Tab
Note 7 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 'The table below presents information about reportable segments within the avionics business for the three month periods ending June 30, 2014 and 2013: | ||||||||||||||||||||
Three Months Ended | Avionics | Avionics | Avionics | Corporate | Total | ||||||||||||||||
June 30, 2014 | Government | Commercial | Total | Items | |||||||||||||||||
Net sales | $ | 2,520,723 | $ | 608,353 | $ | 3,129,076 | - | $ | 3,129,076 | ||||||||||||
Cost of sales | 1,514,415 | 494,444 | 2,008,859 | - | 2,008,859 | ||||||||||||||||
Gross margin | 1,006,308 | 113,909 | 1,120,217 | - | 1,120,217 | ||||||||||||||||
Engineering, research, and development | 483,896 | - | 483,896 | ||||||||||||||||||
Selling, general and administrative | 292,383 | 586,810 | 879,193 | ||||||||||||||||||
Amortization of debt discount | - | 30,874 | 30,874 | ||||||||||||||||||
Amortization of deferred financing costs | - | 27,080 | 27,080 | ||||||||||||||||||
Change in fair value of common stock warrants | - | 133,881 | 133,881 | ||||||||||||||||||
Interest expense, net | - | 62,480 | 62,480 | ||||||||||||||||||
Total expenses | 776,279 | 841,125 | 1,617,404 | ||||||||||||||||||
Income (loss) before income taxes | $ | 343,938 | $ | (841,125 | ) | $ | (497,187 | ) | |||||||||||||
Three Months Ended | Avionics | Avionics | Avionics | Corporate | |||||||||||||||||
June 30, 2013 | Government | Commercial | Total | Items | Total | ||||||||||||||||
Net sales | $ | 2,802,842 | $ | 397,133 | $ | 3,199,975 | - | $ | 3,199,975 | ||||||||||||
Cost of sales | 1,662,246 | 351,571 | 2,013,817 | - | 2,013,817 | ||||||||||||||||
Gross margin | 1,140,596 | 45,562 | 1,186,158 | - | 1,186,158 | ||||||||||||||||
Engineering, research, and development | 480,377 | 480,377 | |||||||||||||||||||
Selling, general, and administrative | 264,145 | 389,105 | 653,250 | ||||||||||||||||||
Amortization of debt discount | - | 22,987 | 22,987 | ||||||||||||||||||
Amortization of deferred financing costs | - | 27,080 | 27,080 | ||||||||||||||||||
Loss on extinguishment of debt | - | 26,600 | 26,600 | ||||||||||||||||||
Change in fair value of common stock warrants | - | (24,572 | ) | (24,572 | ) | ||||||||||||||||
Interest (income) expense, net | - | 104,077 | 104,077 | ||||||||||||||||||
Total expenses | 744,522 | 545,277 | 1,289,799 | ||||||||||||||||||
Income (loss) before income taxes | $ | 441,636 | $ | (545,277 | ) | $ | (103,641 | ) |
Note_9_Fair_Value_Measurements1
Note 9 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 'The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | ||||||||||||||||||||||||||||||||||
30-Jun-14 | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||
Total Assets | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Warrant liability | - | - | 488,190 | 488,190 | |||||||||||||||||||||||||||||||
Total Liabilities | $ | - | $ | - | $ | 488,190 | $ | 488,190 | |||||||||||||||||||||||||||
31-Mar-14 | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||
Total Assets | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Warrant liability | - | - | 354,309 | 354,309 | |||||||||||||||||||||||||||||||
Total Liabilities | $ | - | $ | - | $ | 354,309 | $ | 354,309 | |||||||||||||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | 'The following table provides a summary of the changes in fair value of our Level 3 financial liabilities from March 31, 2014 through June 30, 2014, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to the liability held at June 30, 2014: | ||||||||||||||||||||||||||||||||||
Level 3 Reconciliation | Beginning at beginning of period | Gains and losses for the period | Purchases, issuances, sales | Transfers in or out of Level 3 | Balance at the end of period | ||||||||||||||||||||||||||||||
(realized and unrealized) | and settlements, net | ||||||||||||||||||||||||||||||||||
Warrant liability | 354,309 | 133,881 | - | - | 488,190 | ||||||||||||||||||||||||||||||
Total Liabilities | $ | 354,309 | $ | 133,881 | $ | - | $ | - | $ | 488,190 | |||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | 'The common stock warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign corporation. The warrants do not qualify for hedge accounting, and, as such, all changes in the fair value of these warrants are recognized as other income/expense in the statement of operations until such time as the warrants are exercised or expire. Since these common stock warrants do not trade in an active securities market, the Company recognizes a warrant liability and estimates the fair value of these warrants using the Black-Scholes options model using the following assumptions: | ||||||||||||||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 6.7 | 28.51 | % | 9 | 2.81 | % | $ | 267,848 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 6.7 | 28.51 | % | 5 | 1.59 | % | $ | 13,808 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 3.9 | 42.04 | % | 7 | 0.94 | % | $ | 66,193 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 3.9 | 42.04 | % | 7 | 0.94 | % | $ | 26,477 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 3.5 | 42.45 | % | 6.83 | 1.09 | % | $ | 21,441 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 3.8 | 41.25 | % | 6.58 | 1.43 | % | $ | 23,714 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 3.32 | 40.26 | % | 6.17 | 2 | % | $ | 19,523 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 3.69 | 40.2 | % | 6.08 | 2.01 | % | $ | 21,587 | ||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 123,564 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 4.42 | 43.35 | % | 1.45 | 0.44 | % | $ | 2,498 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 77,626 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 31,050 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,892 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,310 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 31,163 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 4.42 | 43.35 | % | 5.45 | 1.73 | % | $ | 29,206 | ||||||||||||||||||||||
Date of | Expiration | Number of | Exercise | Fair Market Value | Expected | Remaining | Risk Free | Warrant | |||||||||||||||||||||||||||
Warrant | Date | Warrants | Price | Per Share | Volatility | Life in Years | Interest Rate | Liability | |||||||||||||||||||||||||||
9/10/10 | 9/10/19 | 136,920 | $ | 6.7 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 174,114 | ||||||||||||||||||||||
9/10/10 | 9/10/15 | 10,416 | $ | 6.7 | $ | 5.44 | 42.56 | % | 1.2 | 0.47 | % | $ | 4,415 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 50,000 | $ | 3.35 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 105,124 | ||||||||||||||||||||||
7/26/12 | 9/10/19 | 20,000 | $ | 3.35 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 42,049 | ||||||||||||||||||||||
11/20/12 | 9/10/19 | 20,000 | $ | 3.56 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 40,624 | ||||||||||||||||||||||
2/14/13 | 9/10/19 | 20,000 | $ | 3.58 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 39,902 | ||||||||||||||||||||||
7/12/13 | 9/10/19 | 20,000 | $ | 3.33 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 42,189 | ||||||||||||||||||||||
8/12/13 | 9/10/19 | 20,000 | $ | 3.69 | $ | 5.44 | 42.56 | % | 5.2 | 1.62 | % | $ | 39,773 |
Note_3_Accounts_Receivable_net2
Note 3 - Accounts Receivable, net (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Less: Allowance for doubtful accounts | ($27,282) | ($27,282) |
844,712 | 2,095,640 | |
Government Receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable | 552,100 | 1,982,215 |
Commercial Receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable | $319,894 | $140,707 |
Note_4_Inventories_net_Details
Note 4 - Inventories, net (Details) - Schedule of Inventory, Current (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Schedule of Inventory, Current [Abstract] | ' | ' |
Purchased parts | $3,169,621 | $3,085,070 |
Work-in-process | 1,597,284 | 1,134,714 |
Finished goods | 11,633 | 10,607 |
Less: Inventory reserve | -210,000 | -205,000 |
$4,568,538 | $4,025,391 |
Note_5_Loss_Per_Share_Details_
Note 5 - Loss Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Basic net loss per share computation: | ' | ' |
Net loss (in Dollars) | ($384,005) | ($85,772) |
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 |
Basic net loss per share (in Dollars per share) | ($0.12) | ($0.03) |
Diluted net loss per share computation: | ' | ' |
Net loss (in Dollars) | ($384,005) | ($85,772) |
Weighted-average common shares outstanding | 3,251,387 | 3,079,871 |
Incremental shares attributable to the assumed exercise of outstanding stock options | 0 | 0 |
Total adjusted weighted-average shares | 3,251,387 | 3,079,871 |
Diluted net loss per share (in Dollars per share) | ($0.12) | ($0.03) |
Note_6_LongTerm_Debt_Details
Note 6 - Long-Term Debt (Details) (Loans Payable [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2010 |
Loans Payable [Member] | ' | ' |
Note 6 - Long-Term Debt (Details) [Line Items] | ' | ' |
Debt Instrument, Face Amount | ' | $2,500,000 |
Debt Instrument, Covenant Compliance | 'The Note contains a number of affirmative and negative covenants which restrict our operations. For the quarter ended June 30, 2014, the Company was not in compliance with two of the four covenants related to maintaining agreed upon financial ratios for fixed charges and debt service. On August 11, 2014 the Company received a waiver from BCA on each of the above mentioned covenants. | ' |
Note_7_Segment_Information_Det
Note 7 - Segment Information (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_7_Segment_Information_Det1
Note 7 - Segment Information (Details) - Schedule of Segment Reporting Information, by Segment (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $3,129,076 | $3,199,975 |
Cost of sales | 2,008,859 | 2,013,817 |
Gross margin | 1,120,217 | 1,186,158 |
Engineering, research, and development | 483,896 | 480,377 |
Selling, general and administrative | 879,193 | 653,250 |
Amortization of debt discount | 30,874 | 22,987 |
Amortization of deferred financing costs | 27,080 | 27,080 |
Loss on extinguishment of debt | 0 | 26,600 |
Change in fair value of common stock warrants | 133,881 | -24,572 |
Interest (income) expense, net | 62,480 | 104,077 |
Total expenses | 1,617,404 | 1,289,799 |
Income (loss) before income taxes | -497,187 | -103,641 |
Avionics Gov't [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 2,520,723 | 2,802,842 |
Cost of sales | 1,514,415 | 1,662,246 |
Gross margin | 1,006,308 | 1,140,596 |
Avionics Comm'l. [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 608,353 | 397,133 |
Cost of sales | 494,444 | 351,571 |
Gross margin | 113,909 | 45,562 |
Avionics Total [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 3,129,076 | 3,199,975 |
Cost of sales | 2,008,859 | 2,013,817 |
Gross margin | 1,120,217 | 1,186,158 |
Engineering, research, and development | 483,896 | 480,377 |
Selling, general and administrative | 292,383 | 264,145 |
Total expenses | 776,279 | 744,522 |
Income (loss) before income taxes | 343,938 | 441,636 |
Corporate Segment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Selling, general and administrative | 586,810 | 389,105 |
Amortization of debt discount | 30,874 | 22,987 |
Amortization of deferred financing costs | 27,080 | 27,080 |
Loss on extinguishment of debt | ' | 26,600 |
Change in fair value of common stock warrants | 133,881 | -24,572 |
Interest (income) expense, net | 62,480 | 104,077 |
Total expenses | 841,125 | 545,277 |
Income (loss) before income taxes | ($841,125) | ($545,277) |
Note_9_Fair_Value_Measurements2
Note 9 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Note 9 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Total Assets | $0 | $0 |
Warrant liability | 488,190 | 354,309 |
Total Liabilities | 488,190 | 354,309 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Note 9 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Total Assets | 0 | 0 |
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 9 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Total Assets | 0 | 0 |
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 9 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Total Assets | 0 | 0 |
Warrant liability | 488,190 | 354,309 |
Total Liabilities | $488,190 | $354,309 |
Note_9_Fair_Value_Measurements3
Note 9 - Fair Value Measurements (Details) - Schedule of Changes in Fair Value of Plan Assets (USD $) | 3 Months Ended |
Jun. 30, 2014 | |
Note 9 - Fair Value Measurements (Details) - Schedule of Changes in Fair Value of Plan Assets [Line Items] | ' |
Balance at beginning of period | $354,309 |
Gains and losses for the period (realized and unrealized) | 133,881 |
Purchases, issuances, sales and settlements, net | 0 |
Transfers in or out of Level 3 | 0 |
Balance at the end of period | 488,190 |
Warrant [Member] | ' |
Note 9 - Fair Value Measurements (Details) - Schedule of Changes in Fair Value of Plan Assets [Line Items] | ' |
Balance at beginning of period | 354,309 |
Gains and losses for the period (realized and unrealized) | 133,881 |
Purchases, issuances, sales and settlements, net | 0 |
Transfers in or out of Level 3 | 0 |
Balance at the end of period | $488,190 |
Note_9_Fair_Value_Measurements4
Note 9 - Fair Value Measurements (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 10, 2010 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 10, 2010 | Sep. 10, 2010 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 10, 2010 | Jul. 26, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Jul. 26, 2012 | Jul. 26, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Jul. 26, 2012 | Nov. 20, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Nov. 20, 2012 | Feb. 14, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 14, 2013 | Jul. 12, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jul. 12, 2013 | Aug. 12, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Aug. 12, 2013 |
Warrant Issued 09-10-2010 [Member] | Warrant Issued 09-10-2010 [Member] | Warrant Issued 09-10-2010 [Member] | Warrant Issued 09-10-2010 [Member] | Warrant Issued 09-10-2010 #2 [Member] | Warrant Issued 09-10-2010 #2 [Member] | Warrant Issued 09-10-2010 #2 [Member] | Warrant Issued 09-10-2010 #2 [Member] | Warrant Issued 07-26-2012 [Member] | Warrant Issued 07-26-2012 [Member] | Warrant Issued 07-26-2012 [Member] | Warrant Issued 07-26-2012 [Member] | Warrant Issued 07-26-2012 #2 [Member] | Warrant Issued 07-26-2012 #2 [Member] | Warrant Issued 07-26-2012 #2 [Member] | Warrant Issued 07-26-2012 #2 [Member] | Warrant Issued 11-20-2012 [Member] | Warrant Issued 11-20-2012 [Member] | Warrant Issued 11-20-2012 [Member] | Warrant Issued 11-20-2012 [Member] | Warrant Issued 02-14-2013 [Member] | Warrant Issued 02-14-2013 [Member] | Warrant Issued 02-14-2013 [Member] | Warrant Issued 02-14-2013 [Member] | Warrant Issued 07-12-2013 [Member] | Warrant Issued 07-12-2013 [Member] | Warrant Issued 07-12-2013 [Member] | Warrant Issued 07-12-2013 [Member] | Warrant Issued 08-12-2013 [Member] | Warrant Issued 08-12-2013 [Member] | Warrant Issued 08-12-2013 [Member] | Warrant Issued 08-12-2013 [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration Date | ' | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-15 | 10-Sep-15 | 10-Sep-15 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' | 10-Sep-19 | 10-Sep-19 | 10-Sep-19 | ' |
Number of Warrants (in Shares) | ' | ' | 136,920 | 136,920 | 136,920 | ' | 10,416 | 10,416 | 10,416 | ' | 50,000 | 50,000 | 50,000 | ' | 20,000 | 20,000 | 20,000 | ' | 20,000 | 20,000 | 20,000 | ' | 20,000 | 20,000 | 20,000 | ' | 20,000 | 20,000 | 20,000 | ' | 20,000 | 20,000 | 20,000 | ' |
Exercise Price (in Dollars per Share) | ' | ' | ' | $6.70 | $6.70 | $6.70 | ' | $6.70 | $6.70 | $6.70 | ' | $3.35 | $3.35 | $3.35 | ' | $3.35 | $3.35 | $3.35 | ' | $3.56 | $3.56 | $3.56 | ' | $3.58 | $3.58 | $3.58 | ' | $3.33 | $3.33 | $3.33 | ' | $3.69 | $3.69 | $3.69 |
Fair Value Per Share (in Dollars per share) | ' | ' | ' | $5.44 | $4.42 | $6.70 | ' | $5.44 | $4.42 | $6.70 | ' | $5.44 | $4.42 | $3.90 | ' | $5.44 | $4.42 | $3.90 | ' | $5.44 | $4.42 | $3.50 | ' | $5.44 | $4.42 | $3.80 | ' | $5.44 | $4.42 | $3.32 | ' | $5.44 | $4.42 | $3.69 |
Expected Volatality | ' | ' | 28.51% | 42.56% | 43.35% | ' | 28.51% | 42.56% | 43.35% | ' | 42.04% | 42.56% | 43.35% | ' | 42.04% | 42.56% | 43.35% | ' | 42.45% | 42.56% | 43.35% | ' | 41.25% | 42.56% | 43.35% | ' | 40.26% | 42.56% | 43.35% | ' | 40.20% | 42.56% | 43.35% | ' |
Remaining Life in Years | ' | ' | '9 years | '5 years 73 days | '5 years 164 days | ' | '5 years | '1 year 73 days | '1 year 164 days | ' | '7 years | '5 years 73 days | '5 years 164 days | ' | '7 years | '5 years 73 days | '5 years 164 days | ' | '6 years 302 days | '5 years 73 days | '5 years 164 days | ' | '6 years 211 days | '5 years 73 days | '5 years 164 days | ' | '6 years 62 days | '5 years 73 days | '5 years 164 days | ' | '6 years 29 days | '5 years 73 days | '5 years 164 days | ' |
Risk Free Interest Rate | ' | ' | 2.81% | 1.62% | 1.73% | ' | 1.59% | 0.47% | 0.44% | ' | 0.94% | 1.62% | 1.73% | ' | 0.94% | 1.62% | 1.73% | ' | 1.09% | 1.62% | 1.73% | ' | 1.43% | 1.62% | 1.73% | ' | 2.00% | 1.62% | 1.73% | ' | 2.01% | 1.62% | 1.73% | ' |
Warrant Liability (in Dollars) | $488,190 | $354,309 | ' | $174,114 | $123,564 | $267,848 | ' | $4,415 | $2,498 | $13,808 | ' | $105,124 | $77,626 | $66,193 | ' | $42,049 | $31,050 | $26,477 | ' | $40,624 | $29,892 | $21,441 | ' | $39,902 | $29,310 | $23,714 | ' | $42,189 | $31,163 | $19,523 | ' | $39,773 | $29,206 | $21,587 |