Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Jul. 07, 2017 | Sep. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TEL INSTRUMENT ELECTRONICS CORP | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 3,255,887 | ||
Entity Public Float | $ 6,606,534 | ||
Amendment Flag | false | ||
Entity Central Index Key | 96,885 | ||
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 | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash | $ 287,873 | $ 972,633 |
Accounts receivable, net of allowance for doubtful accounts of $7,500 and $7,500, respectively | 1,556,382 | 1,454,361 |
Inventories, net | 4,208,179 | 4,679,032 |
Prepaid expenses and other current assets | 188,578 | 128,071 |
Total current assets | 6,241,012 | 7,234,097 |
Equipment and leasehold improvements, net | 161,427 | 193,518 |
Deferred tax asset – non-current | 0 | 2,643,633 |
Other assets | 33,509 | 36,871 |
Total assets | 6,435,948 | 10,108,119 |
Current liabilities: | ||
Current portion of long-term debt | 291,991 | 418,255 |
Line of credit | 200,000 | 0 |
Capital lease obligations – current portion | 6,268 | 10,232 |
Accounts payable | 1,428,320 | 1,686,469 |
Deferred revenues – current portion | 123,720 | 48,766 |
Federal and state taxes payable | 4,105 | 53,623 |
Accrued expenses - vacation pay, payroll and payroll withholdings | 527,413 | 836,589 |
Accrued legal damages | 2,800,000 | 0 |
Accrued expenses - related parties | 45,586 | 213,344 |
Accrued expenses – other | 599,049 | 501,687 |
Total current liabilities | 6,026,452 | 3,768,965 |
Subordinated notes payable – related parties | 0 | 25,000 |
Capital lease obligations – long-term | 13,760 | 20,524 |
Long-term debt, net of debt discount | 2,124 | 304,560 |
Warrant liability | 95,000 | 1,136,203 |
Deferred revenues – long-term | 352,973 | 172,703 |
Other long-term liabilities | 0 | 7,800 |
Total liabilities | 6,490,309 | 5,435,755 |
Commitments and contingencies | ||
Stockholders’ (deficit) equity | ||
Common stock, 4,000,000 shares authorized, par value $.10 per share, 3,255,887 and 3,255,887 shares issued and outstanding, respectively | 325,586 | 325,586 |
Additional paid-in capital | 8,107,369 | 8,074,655 |
Accumulated deficit | (8,487,316) | (3,727,877) |
Total stockholders’ (deficit) equity | (54,361) | 4,672,364 |
Total liabilities and stockholders’ (deficit) equity | $ 6,435,948 | $ 10,108,119 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $ 7,500 | $ 7,500 |
Common stock, par value (in Dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued | 3,255,887 | 3,255,887 |
Common stock, shares outstanding | 3,255,887 | 3,255,887 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 18,745,456 | $ 24,804,825 |
Cost of sales | 12,061,341 | 16,819,235 |
Gross margin | 6,684,115 | 7,985,590 |
Operating expenses: | ||
Selling, general and administrative | 2,581,085 | 2,919,165 |
Litigation expenses | 1,244,639 | 448,379 |
Legal damages | 2,800,000 | 0 |
Engineering, research and development | 2,430,322 | 2,038,126 |
Total operating expenses | 9,056,046 | 5,405,670 |
(Loss) income from operations | (2,371,931) | 2,579,920 |
Other income (expense): | ||
Amortization of deferred financing costs | (5,429) | (5,429) |
Change in fair value of common stock warrants | 321,203 | (617,241) |
Interest expense | (40,431) | (58,133) |
Interest expense - related parties | (18,736) | (42,996) |
Total other income (expense) | 256,607 | (723,799) |
(Loss) income before income taxes | (2,115,324) | 1,856,121 |
Provision for income taxes | 2,644,115 | 851,968 |
Net (loss) income | $ (4,759,439) | $ 1,004,153 |
Basic (loss) income per common share (in Dollars per share) | $ (1.46) | $ 0.31 |
Diluted (loss) income per common share (in Dollars per share) | $ (1.49) | $ 0.31 |
Weighted average number of shares outstanding | ||
Basic (in Shares) | 3,255,887 | 3,256,887 |
Diluted (in Shares) | 3,266,842 | 3,261,153 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balances at Mar. 31, 2015 | $ 325,686 | $ 8,046,168 | $ (4,732,030) | $ 3,639,824 |
Balances (in Shares) at Mar. 31, 2015 | 3,256,887 | |||
Stock-based compensation | 32,277 | 32,277 | ||
Reversal of shares intended to be issued in connection with the exercise of stock options | $ (100) | (3,790) | (3,890) | |
Reversal of shares intended to be issued in connection with the exercise of stock options (in Shares) | (1,000) | |||
Net income (loss) | 1,004,153 | 1,004,153 | ||
Balances at Mar. 31, 2016 | $ 325,586 | 8,074,655 | (3,727,877) | $ 4,672,364 |
Balances (in Shares) at Mar. 31, 2016 | 3,255,887 | 3,255,887 | ||
Stock-based compensation | 32,714 | $ 32,714 | ||
Net income (loss) | (4,759,439) | (4,759,439) | ||
Balances at Mar. 31, 2017 | $ 325,586 | $ 8,107,369 | $ (8,487,316) | $ (54,361) |
Balances (in Shares) at Mar. 31, 2017 | 3,255,887 | 3,255,887 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,759,439) | $ 1,004,153 |
Adjustments to reconcile net (loss) income to net cash (Used in) provided by operating activities: | ||
Deferred income taxes | 2,643,633 | 798,345 |
Allowance for doubtful accounts | 0 | (17,295) |
Depreciation and amortization | 120,160 | 164,774 |
Amortization of deferred financing costs | 5,429 | 5,429 |
Change in fair value of common stock warrant | (321,203) | 617,241 |
Provision for inventory obsolescence | 40,000 | 60,713 |
Non-cash stock-based compensation | 32,714 | 32,277 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | (102,021) | 188,105 |
Decrease (increase) in inventories | 430,853 | (707,671) |
(Increase) decrease in prepaid expenses and other assets | (62,574) | 153,279 |
Decrease in accounts payable | (258,149) | (1,125,312) |
Increase in accrued legal damages | 2,800,000 | 0 |
Increase in deferred revenues | 255,224 | 69,210 |
(Decrease) increase in federal and state taxes payable | (49,518) | 53,623 |
(Decrease) increase in accrued payroll, vacation pay & withholdings | (309,176) | 242,475 |
Decrease in accrued expenses – related party and other | (70,396) | (50,754) |
Decrease in other long-term liabilities | (7,800) | (25,200) |
Net cash provided by operating activities | 387,737 | 1,463,392 |
Cash flows from investing activities: | ||
Acquisition of equipment | (88,069) | (61,306) |
Net cash used in investing activities | (88,069) | (61,306) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 200,000 | 0 |
Proceeds from issuance of debt | 0 | 18,000 |
Payment of warrant liability | (720,000) | 0 |
Repayment of subordinated notes - related parties | (25,000) | (225,000) |
Repayment of long-term debt | (428,700) | (391,628) |
Repayment of capitalized lease obligations | (10,728) | (16,757) |
Net cash used in financing activities | (984,428) | (615,385) |
Net (decrease) increase in cash | (684,760) | 786,701 |
Cash, beginning of year | 972,633 | 185,932 |
Cash, end of year | 287,873 | 972,633 |
Supplemental cash flow information: | ||
Taxes paid | 50,000 | 0 |
Interest paid | 228,358 | 59,100 |
Supplemental non-cash information: | ||
Capital lease obligations | $ 0 | $ 26,194 |
1. Business, Organization, and
1. Business, Organization, and Liquidity | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Basis of Accounting [Text Block] | 1. Business, Organization, and Liquidity Business and Organization Tel-Instrument Electronics Corp. (“Tel” or the “Company”) has been in business since 1947. The Company is a leading designer and manufacturer of avionics test and measurement instruments for the global, commercial air transport, general aviation, and government/military defense markets. Tel provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. The Company sells its equipment in both domestic and international markets. Tel continues to develop new products in anticipation of customers’ needs and to maintain its strong market position. Its development of multi-function testers has made it easier for customers to perform ramp tests with less operator training, fewer test sets, and lower product support costs. The Company has become a major manufacturer and supplier of Identification Friend or Foe (“IFF”) flight line test equipment and over the last few years was awarded three major military contracts. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and include the Company and its wholly-owned subsidiary. All significant inter-company accounts and transactions have been eliminated. Liquidity and Going Concern: These audited consolidated financial statements have been prepared in conformity with GAAP, which contemplates continuation of the Company as a going concern. As discussed in Note 19 to the Notes to the Consolidated Financial Statements, the Company has recorded estimated damages of $2,800,000 as a result of the jury verdict associated with the Aeroflex litigation. The jury found no misappropriation of Aeroflex trade secrets but it did rule that the Company tortiously interfered with a prospective business opportunity and awarded damages. The jury also ruled that Tel tortiously interfered with Aeroflex’s non-disclosure agreements with two former Aeroflex employees. The jury also found that the former Aeroflex employees breached their non-disclosure agreements with Aeroflex. The court will conduct further hearings in the next few weeks which will include a punitive damages claim. Subsequent to the jury verdict, the Company filed a motion with the Kansas court seeking to reduce the damages award. The court will conduct further hearings on both motions in the next few weeks. Given the uncertainty involving the final damages amount and the ability of the Company to secure adequate financing to support an appeal or satisfy the judgment, the Company has written off its deferred tax asset in the amount of $3,490,778. The damages, legal expense and write off of the deferred tax asset resulted in the Company incurring a net loss of $4,759,439 for the current fiscal year. Additionally, working capital at March 31, 2017 was just $214,560 and the Company has a Stockholders’ Deficit of $54,361. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital to support the appeal process or pay any final damages amount and achieve profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company has been profitable from an operational standpoint for the last several years and should be able to obtain sufficient cash proceeds to support the planned appeal assuming the final judgment amount remains at or below the current $2.8 million accrual. Financing discussions have been taking place with various parties but the Company has no commitment from any party to provide additional funding at this time. Moreover, there is no assurance that sufficient funding will be available, or if available, that its terms will be favorable to the Company. Revenue Recognition: Revenues are recognized at the time of shipment to, or acceptance by the customer, provided title and risk of loss is transferred to the customer as the product price is fixed or determinable, collection of the resulting receivable is probable, evidence of an arrangement exists and product returns are reasonably estimable. Provisions, when appropriate, are made where the right to return exists. Revenues for repairs and calibrations of the Company’s products represented 5.7% and 3.7% of sales for the years ended March 31, 2017 and 2016, respectively. These revenues are for units that are periodically returned for annual calibrations and/or for repairs after the warranty period has expired. Revenues on repairs and calibrations are recognized at the time the repaired or calibrated unit is shipped, as it is at this time that the work is completed. The Company’s terms are F.O.B. Plant, and as such, delivery has occurred, and revenue recognized, when picked up and acknowledged by a common carrier. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. Payments received prior to the delivery of units or services performed are recorded as deferred revenues. With respect to warranty revenues, upon the completion of two years from the date of sale, considered to be the warranty period, the Company offers customers an optional warranty. Amounts received for warranties are recorded as deferred revenue and recognized over the respective terms of the agreements. Fair Value of Financial Instruments: The Company estimates that the fair value of all financial instruments at March 31, 2017 and March 31, 2016, as defined in Financial Accounting Standards Board (“FASB”) ASC 825 “Financial Instruments”, does not differ materially, except for the items discussed below, from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The carrying amounts reported in the consolidated balance sheets as of March 31, 2017 and March 31, 2016 for cash, accounts receivable and accounts payable approximate the fair value because of the immediate or short-term maturity of these financial instruments. Each reporting period we evaluate market conditions including available interest rates, credit spreads relative to our credit rating and liquidity in estimating the fair value of our debt. After considering such market conditions, we estimate that the fair value of debt approximates its carrying value. The warrant liability is recorded at fair value. Concentrations of Credit Risk: Cash held in banks: Accounts Receivable: Inventories: Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. Inventories are written down if the estimated net realizable value is less than the recorded value. The Company reviews the carrying cost of inventories by product to determine the adequacy of reserves for obsolescence. In accounting for inventories, the Company must make estimates regarding the estimated realizable value of inventory. The estimate is based, in part, on the Company’s forecasts of future sales and age of inventory. In accordance with industry practice, service parts inventory is included in current assets, although service parts are carried for established requirements during the serviceable lives of the products and, therefore, not all parts are expected to be sold within one year. Equipment and Leasehold Improvements: Office and manufacturing equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization are provided on a straight-line basis over periods ranging from 3 to 5 years. Leasehold improvements are amortized over the term of the lease or the useful life of the asset, whichever is shorter. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its life are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in the Statement of Operations. Engineering, Research and Development Costs: Engineering, research and development costs are expensed as incurred. Advertising Expenses: Advertising expenses consist primarily of costs for direct advertising. The Company expenses all advertising costs as incurred, and classifies these costs under selling, general and administrative expenses. Advertising costs amounted to $-0- and $577 for the years ended March 31, 2017 and 2016, respectively. Deferred Revenues: Amounts billed in advance of the period in which the service is rendered or product delivered are recorded as deferred revenue. At March 31, 2017 and 2016, deferred revenues totaled $476,693 and $221,469, respectively. See above for additional information regarding our revenue recognition policies. Net Income (Loss) per Common Share: Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed by dividing diluted net income by the weighted-average number of common shares outstanding during the period, including common stock equivalents, such as stock options and warrants using the treasury stock method. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period, and excludes the anti-dilutive effects of common stock equivalents. Income Taxes The Company accounts for income taxes using the asset and liability method described in FASB ASC 740, “Income Taxes”. Deferred tax assets arise from a variety of sources, the most significant being: a) tax losses that can be carried forward to be utilized against profits in future years; b) expenses recognized for financial reporting purposes but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes of assets which need to be tax effected for book purposes but are deductible only when the valuation change is realized. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when such differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit which is not more likely than not to be realized. In assessing the need for a valuation allowance, future taxable income is estimated, considering the realization of tax loss carryforwards. Valuation allowances related to deferred tax assets can also be affected by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event it was determined that the Company would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through a charge to income in the period in which that determination is made. Conversely, if we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation allowance through an increase to income in the period in which that determination is made. In its evaluation of a valuation allowance the Company takes into account existing contracts and backlog, and the probability that options under these contract awards will be exercised as well as sales of existing products. The Company prepares profit projections based on the revenue and expenses forecast to determine that such revenues will produce sufficient taxable income to realize the deferred tax assets. The Company accounts for uncertainties in income taxes under ASC 740-10-50 which 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. ASC 740-10 requires that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained upon audit based on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. The implementation of ASC 740-10 had no impact on the Company’s results of operations or financial position. Accounting for Income Taxes: Despite the Company’s belief that its tax return positions are consistent with applicable tax laws, one or more positions may be challenged by taxing authorities. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations or litigation. Interest and penalties related to income tax matters, if applicable, will be recognized as income tax expense. During the years ended March 31, 2017 and 2016 the Company did not incur any expense related to interest or penalties for income tax matters, and no such amounts were accrued as of March 31, 2017 and 2016. The Company’s tax years remain open for examination by the tax authorities primarily beginning 2013 through present. Stock-based Compensation: The Company accounts for stock-based compensation in accordance with FASB ASC 718 which requires the measurement of stock-based compensation based on the fair value of the award on the date of grant. The Company recognizes compensation cost on awards on a straight-line basis over the vesting period, typically four years. The Company estimates the fair value of each option granted using the Black-Scholes option-pricing model. Additional information and disclosure are provided in Note 14 below. Long-Lived Assets: The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment losses have been recognized for the years ended March 31, 2017 and 2016, respectively. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include income taxes, warranty claims, inventory and accounts receivable valuations. Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation. Accounts Receivable: The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current credit worthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for and payments from its customers and maintains provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. While such credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. Warranty Reserves: Warranty reserves are based upon historical rates and specific items that are identifiable and can be estimated at time of sale. While warranty costs have historically been within the Company’s expectations and the provisions established, future warranty costs could be in excess of the Company’s warranty reserves. A significant increase in these costs could adversely affect the Company’s operating results for the period and the periods these additional costs materialize. Warranty reserves are adjusted from time to time when actual warranty claim experience differs from estimates. For the year ended March 31, 2017 warranty costs were $107,735 as compared to $367,935 for the year ended March 31, 2016 and are included in Cost of Sales in the accompanying statement of operations. See Note 6 for warranty reserves. Risks and Uncertainties: The Company’s operations are subject to a number of risks, including but not limited to changes in the general economy, demand for the Company’s products, the success of its customers, research and development results, reliance on the government and commercial markets, litigation, and the renewal of its line of credit. The Company has major contracts with the U.S. Government, which like all government contracts are subject to termination. New Accounting Pronouncements: Adopted In August 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The guidance requires management to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies such conditions or events, a footnote disclosure is required to disclose their nature, as well as management’s plans to alleviate the substantial doubt to continue as a going concern. The standard became effective for our fiscal year end 2017 and did not have an impact on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which is an update to Topic 740, “Income Taxes”. The update requires that all deferred tax assets and liabilities be classified as non-current. The Company adopted this update in the current year, which is reflected in the accompanying balance sheets. The deferred tax recorded as a current asset for the year ended March 31, 2016 was reclassified as Deferred Tax – Non-Current. The adoption of this update did not have any impact on the Company’s results of operations. To Be Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 (“Improvements to Employee Share-Based Payment Accounting”) which simplifies several aspects of accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (“Leases”), which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The new standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The adoption of this ASU will increase assets and liabilities for operating leases. The Company is evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 that introduces a new five-step revenue recognition model in which an entity should 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. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In March 2016, the FASB issued ASU 2016-08 which further clarifies the guidance on the principal versus agent considerations within ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 to improve revenue recognition in the areas of collectability, presentation of sales tax and other similar taxes collected from customers, noncash consideration, contract modifications and completed contracts at transition. This update also amends the disclosure requirements within ASU 2014-09 for entities that retrospectively apply the guidance. The latest amendments are intended to address implementation issues that were raised by stakeholders and discussed by the Revenue Recognition Transition Resource Group, and provide additional practical expedients. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact, if any, it will have on its consolidated financial statements. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s condensed consolidated financial statements. |
3. Accounts Receivable
3. Accounts Receivable | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Accounts Receivable The following table sets forth the components of accounts receivable: March 31, 2017 2016 Government $ 1,392,482 $ 1,343,477 Commercial 171,400 118,384 Less: Allowance for doubtful accounts (7,500 ) (7,500 ) $ 1,556,382 $ 1,454,361 |
4. Inventories
4. Inventories | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories Inventories consist of: March 31, 2017 2016 Purchased parts $ 3,197,378 $ 3,420,249 Work-in-process 1,272,235 1,446,293 Finished goods 68,566 102,490 Less: Allowance for obsolete inventory (330,000 ) (290,000 ) $ 4,208,179 $ 4,679,032 Work-in-process inventory includes $870,448 and $1,331,784 for government contracts at March 31, 2017 and 2016, respectively. |
5. Equipment and Leasehold Impr
5. Equipment and Leasehold Improvements | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Equipment and Leasehold Improvements Equipment and leasehold improvements consist of the following: March 31, 2017 2016 Leasehold Improvements $ 95,858 $ 95,858 Machinery and equipment 1,574,058 1,518,780 Automobiles 23,712 23,712 Sales equipment 599,796 572,236 Assets under capitalized leases 637,189 637,189 Less: Accumulated depreciation & amortization (2,769,186 ) (2,654,257 ) $ 161,427 $ 193,518 Depreciation and amortization expense related to the assets above for the years ended March 31, 2017 and 2016 was $120,160 and $164,774 respectively. |
6. Accrued Expenses
6. Accrued Expenses | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 6. Accrued Expenses Accrued vacation pay, deferred wages, payroll and payroll withholdings consist of the following: March 31, 2017 2016 Accrued vacation pay $ 390,348 $ 394,404 Accrued compensation and payroll withholdings 137,065 442,185 $ 527,413 $ 836,589 Accrued vacation pay, payroll and payroll withholdings includes $136,731 and $321,831 at March 31, 2017 and 2016, respectively, which is due to officers. Accrued expenses - other consist of the following: March 31, 2017 2016 Accrued commissions 72,171 8,189 Accrued legal costs 251,459 53,766 Warranty reserve 188,444 208,102 Accrued – other 86,975 231,630 $ 599,049 $ 501,687 The following table provides a summary of the changes in warranty reserves for the years ended March 31, 2017 and 2016: March 31, 2017 2016 Warranty reserve, at beginning of period $ 208,102 $ 140,333 Warranty expense 107,735 367,935 Warranty deductions (127,393 ) (300,166 ) Warranty reserve, at end of period $ 188,444 $ 208,102 Accrued expenses – related parties consists of the following: March 31, 2017 2016 Interest due to the estate of the Company’s former Chairman $ - $ 107,237 Interest and other expenses due to the Company’s President/CEO 45,586 106,107 $ 45,586 $ 213,344 |
7. Income Taxes
7. Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 7. Income Taxes Income tax (benefit) provision: Fiscal Year Ended March 31, March 31, 2017 2016 Current: Federal $ (1,018 ) $ 52,123 State and local 1,500 1,500 Total current tax provision 482 53,623 Deferred: Federal 2,643,357 796,500 State and local 276 1,845 Total deferred tax provision 2,643,633 798,345 Total provision $ 2,644,115 $ 851,968 The approximate values of the components of the Company’s deferred taxes at March 31, 2017 and 2016 are as follows: March 31, March 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 1,645,868 $ 1,802,492 Tax credits 329,032 329,032 Charitable contributions 102 51 Legal damages 956,000 - Allowance for doubtful accounts 2,561 2,550 Reserve for inventory obsolescence 112,671 98,614 Inventory capitalization 105,998 69,918 Deferred payroll - 88,288 Vacation accrual 133,276 134,116 Warranty reserve 64,340 70,765 Deferred revenues 162,757 75,310 Stock options 25,494 23,544 Non-compete agreement 5,941 7,889 AMT credit 66,106 52,123 Depreciation 18,412 26,721 Deferred tax asset 3,628,558 2,781,413 Less valuation allowance (3,628,558 ) (137,780 ) Deferred tax asset, net $ -0- $ 2,643,633 The recognized deferred tax asset is based upon the expected utilization of its benefit from future taxable income. The Company has federal net operating loss (“NOL”) carryforwards of approximately $4,827,000 as of March 31, 2017. These carryforward losses are available to offset future taxable income, and begin to expire in the year 2027. New Jersey State NOL carryforwards approximate $3,357,000 as of March 31, 2017. New Jersey State NOL carryforwards expire in 20 years, and certain of these amounts begin to expire in 2030. The foregoing amounts are management’s estimates, and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling new profitable sales agreements and modifying products. The inability to obtain new profitable contracts or the failure of the Company’s engineering development efforts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets. It is management’s belief that the deferred tax assets is not more likely than not to be fully realized, and as a result, a valuation allowance of $3,628,558 was recorded at March 31, 2017. A reconciliation of the income tax (benefit) provision at the statutory Federal tax rate of 34% to the income tax (benefit) provision recognized in the financial statements is as follows: March 31, March 31, 2017 2016 Income tax (benefit) provision – statutory rate $ (711,344 ) $ 631,081 Income tax expenses – state and local, net of federal benefit (2,404 ) 2,835 Permanent items 12,870 12,194 Change in value of warrants – permanent difference (109,209 ) 209,862 True-up of prior year’s deferred taxes (25,178 ) (4,281 ) Valuation allowance 3,490,778 - Rate changes (7,776 ) - Other (3,622 ) 277 Income tax provision (benefit) $ 2,644,115 $ 851,968 |
8. Related Parties
8. Related Parties | 12 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 8. Related Parties Subordinated Notes On February 22, 2010, the Company borrowed $250,000 in exchange for issuing subordinated notes to two executive officers and directors in the amount of $125,000 (individually, the “Subordinated Note” and collectively, the “Subordinated Notes”). Each officer and director also received 5,000 options to purchase Common Stock at an exercise price of $8.00 per share, the market price at the date of grant. In September 2010, these officers/directors entered into an Intercreditor and Subordination agreement which subordinated their loans to the BCA Loan Agreement (see Note 10 to Notes to Consolidated Financial Statements). The notes were to become due April 1, 2011 with an interest rate of 1% per month, payable on a monthly basis within 14 days of the end of each month. The Intercreditor and Subordination Agreement amongst the parties precludes the payment of principal or interest under these subordinated notes unless and until the Senior Obligations (as defined in the Intercreditor and Subordination Agreement) have been paid in full or without the express written consent of Senior Lender. The holders of Subordinated Notes agreed that the Company’s failure to pay the monthly interest amounts pursuant to the terms of the February 22, 2010 Subordinated Notes will not constitute an event of default on such notes if the Company is precluded from making these payments pursuant to the limitations included in the loan agreement with BCA Mezzanine Fund L.L.P. (“BCA”). Upon payment in full of the loan to BCA in November 2014, the Company was able to commence to pay down the principal balance of the Subordinated Notes. During fiscal year 2012, the Company’s Chairman, at the time, passed away. His surviving spouse has retained this Subordinated Note and continues to acknowledge the terms. During the fiscal year ended March 31, 2016, the Company repaid $225,000 of the Subordinated Notes. The remaining balance was paid during the year ended March 31, 2017. The outstanding balances at March 31, 2017 and 2016 were $-0- and $25,000, respectively. Total interest expense was $18,736 and $42,966 for the years ended March 31, 2017 and 2016, respectively. Accrued interest at March 31, 2017 and 2016 was $45,586 and $107,237, respectively. Services The Company has obtained marketing and sales services from a brother-in-law of the Company’s CEO with the related fees and commissions amounting to $154,302 and $107,980 for the years ended March 31, 2017 and 2016, respectively. |
9. Long-Term Debt
9. Long-Term Debt | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 9. Long-Term Debt Term Loans with Bank of America On November 13, 2014, the Company entered into a term loan in the amount of $1,200,000 with Bank of America. The proceeds from the term loan were primarily used to pay off the remaining balance of the BCA Note in the amount of $1,153,109, including accrued interest of $4,467 (see above). The term loan is for three years, and expires on November 13, 2017. Monthly payments are at $36,551 including interest at 6%. The term loan is collateralized by substantially all of the assets of the Company. At March 31, 2017 and March 31, 2016, the outstanding balances were $285,810 and $693,407, respectively. At March 31, 2017, $285,810 was classified as current. For the years ended March 31, 2017 and 2016, the Company recorded amortization of deferred financing costs in the amount of $5,429 and $5,429, respectively. As of March 31, 2017 and March 31, 2016, the Company had unamortized deferred financing costs in the amount of $3,363 and $8,792, respectively. In July 2015, the Company entered into a term loan in the amount of $18,000 with Bank of America. The term loan is for three years, and expires in July 2018. Monthly payments are at $536 including interest at 4.5%. The term loan is collateralized by substantially all of the assets of the Company. At March 31, 2017 and March 31, 2016, the outstanding balances were $8,305 and $14,211, respectively. Automobile Loan In March 2014, the Company entered into a loan with Ford Credit for its van in the amount of $23,712. Such note has a term of five (5) years with an annual interest rate of 8.79% with monthly payments of $492. In December 2016, the Company paid-off the remaining balance of the loan. The outstanding balances at March 31, 2017 and 2016 were $-0- and $15,197, respectively. The annual maturities of long-term debt for the five fiscal years subsequent to March 31, 2017 are as follows: 2018 $ 291,991 2019 2,124 2020 - 2021 - 2022 - Total Principal 294,115 Less: Current Portion (291,991 ) Total Long-Term Debt $ 2,124 |
10. Line of Credit
10. Line of Credit | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 10. Line of Credit On March 21, 2016, the Company entered into a line of credit agreement with Bank of America, which expires March 31, 2017. In March 2017, the Company extended until March 31, 2018. The new line provides a revolving credit facility with borrowing capacity of up to $1,000,000 . In April 2017, the Company borrowed an additional $200,000 from this line of credit. |
11. Commitments
11. Commitments | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments The Company leases its general office and manufacturing facility in East Rutherford, NJ under an operating lease agreement which expires July 31, 2016. The lease is for a five year period, beginning August 1, 2011, with a five year option in a one-story facility. In June 2016, the Company extended the lease term for another five years until August 2021. Under terms of the lease, the Company is also responsible for its proportionate share of the additional rent to include all real estate taxes, insurance, snow removal, landscaping and other building charges. The Company is also responsible for the utility costs for the premises. The Company also leases a small office in Lawrence, Kansas under an operating lease agreement which expires June 30, 2018. In addition, the Company has agreements to lease equipment for use in the operations of the business under operating leases. The following is a schedule of approximate future minimum rental payments for operating leases subsequent to the year ended March 31, 2017. Years Ended March 31, 2018 $ 322,201 2019 307,206 2020 306,153 2021 306,153 2022 127,564 $ 1,369,277 Total rent expense, including common charges related to the building as well as equipment rentals, was approximately $357,000 and $358,000 for the years ended March 31, 2017 and 2016, respectively. The Company sponsors a 401k Plan in which employee contributions on a pre-tax basis are supplemented by matching contributions by the Company. The Company charged to operations $25,698 and $27,916 as its matching contribution to the Company’s 401k Plan for the years ended March 31, 2017 and 2016, respectively. |
12. Capitalized Lease Obligatio
12. Capitalized Lease Obligations | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | 12. Capitalized Lease Obligations The Company has entered into lease commitments for furniture and equipment that meet the requirements for capitalization. The equipment has been capitalized and shown in equipment and leasehold improvements in the accompanying balance sheets. The related obligations are also recorded in the accompanying consolidated balance sheets and are based upon the present value of the future minimum lease payments with interest rates ranging from 9% to 14%. The net book value of equipment acquired under capitalized lease obligations amounted to $20,519 and $51,230 at March 31, 2017 and 2016, respectively. There were no new capital lease obligations during the year ended March 31, 2017.There was one new capital lease for the year ended March 31, 2016 in the amount of $26,194. As of March 31, 2017 and 2016, accumulated amortization under capital leases was $616,670 and $589,959, respectively. At March 31, 2017, future payments under capital leases are as follows over each of the next five fiscal years: 2018 $ 7,864 2019 7,864 2020 7,209 2021 - 2022 -- Total minimum lease payments 22,937 Less amounts representing interest (2,909 ) Present value of net minimum lease payments 20,028 Less current portion (6,268 ) Long-term capital lease obligation $ 13,760 |
13. Significant Customer Concen
13. Significant Customer Concentrations | 12 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 13. Significant Customer Concentrations For the years ended March 31, 2017 and 2016, sales to the U.S. Government represented approximately 64% and 79%, respectively of net sales. No other individual customer represented over 10% of net sales for these years. One customer represented 10.3% of government sales for the year ended march 31, 2017. No direct customer accounted for more than 10% of commercial or government net sales for the year ended March 31, 2016. Our U.S. distributor accounted for 24% and 21% of commercial sales for the years ended March 31, 2017 and 2016, respectively. Net sales to foreign customers were $1,782,646 and $1,900,724 for the years ended March 31, 2017 and 2016, respectively. All other sales were to customers located in the U.S. The following table presents net sales by U.S. and foreign countries: 2017 2016 United States $ 16,962,810 $ 22,904,101 Foreign countries 1,782,646 1,900,724 Total Avionics Sales $ 18,745,456 $ 24,804,825 Net sales related to any single foreign country did not comprise more than 10% of consolidated net sales. The Company had no assets outside the United States. Receivables from the U.S. Government represented approximately 42% and 37%, respectively, of total receivables at March 31, 2017 and 2016, respectively. As of March 31, 2017, one individual customer represented 16.6% and a second customer represented 10% of the Company’s outstanding accounts receivable. As of March 31, 2016, one individual customer accounted for 27% of the Company’s outstanding accounts receivable. No other customers represented more than 10% of outstanding accounts receivable for the years ending March 31, 2017 and 2016. |
14. Stock Option Plans
14. Stock Option Plans | 12 Months Ended |
Mar. 31, 2017 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | 14. Stock Option Plans In December 2016, the Board adopted the 2016 Stock Option Plan (the “2016 Plan”) which reserved for issuance options to purchase up to 250,000 shares of its Common Stock. The stockholders approved the Plan at the January 2017 annual meeting Shareholders had previously adopted the 2006 Stock Option Plan, under which substantially all of the options have been granted. Therefore, the Board approved the 2016 Plan, and the terms are substantially the same as under the 2006 Employees Stock Option. The 2016 Plan reserves for issuance options to purchase up to 250,000 shares of its common stock. All employees, directors and consultants are eligible to receive stock option grants under this plan. The 2016 Plan, which has a term of ten years from the date of adoption, is administered by the Board or by a committee appointed by the Board. The selection of participants, allotment of shares, and other conditions related to the grant of options, to the extent not set forth in the Plan, are determined by the Board. Options granted under the Plan are exercisable up to a period of five years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant. Options, for the most part, are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary. The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period of time from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. There were no stock options granted for the year ended March 31, 2017. The per share weighted-average fair value of stock options granted for the year ended March 31, 2016 was $2.36 on the date of grant using the Black Scholes option-pricing model with the following assumptions: Dividend Risk-free Yield Interest rate Volatility Life 2016 0.0 % 1.39 % 44.54 % 5 years A summary of the status of the Company’s stock option plans for the fiscal years ended March 31, 2017 and 2016 and changes during the years are presented below (in number of options): Number of Options Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding options at April 1, 2015 71,500 $ 6.06 Options granted 51,000 $ 5.85 Options exercised - $ - Options canceled/forfeited (37,500 ) $ 7.43 Outstanding options at March 31, 2016 85,000 $ 5.33 3.4 years $ 9,000 Options granted - $ - Options exercised - $ - Options canceled/forfeited (6,000 ) $ 6.34 Outstanding options at March 31, 2017 79,000 $ 5.26 2.5 years $ 28,900 Vested Options: March 31, 2017: 33,800 $ 4.59 1.9 years $ 28,460 March 31, 2016: 26,000 $ 4.38 2.1 years $ 9,000 Remaining options available for grant were 250,000 and -0- as of March 31, 2017 and 2016, respectively. For the years ended March 31, 2017 and 2016, the unamortized compensation expense for stock options was $60,819 and $95,792, respectively. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 1 year. A summary of the Company’s non-vested shares as of March 31, 2017 and changes during the year ended March 31, 2016 is presented below: Non-vested Shares Shares Weighted-Average Grant-Date Fair value Non-vested at April 1, 2016 59,000 $ 5.75 Granted - $ - Vested (11,800 ) $ 5.73 Forfeited (1,600 ) $ 5.85 Non-vested at March 31, 2017 45,600 $ 5.76 The compensation cost that has been charged was $32,714 and $32,277 for the fiscal years ended March 31, 2017 and 2016, respectively. |
15. Net Diluted Income (Loss) p
15. Net Diluted Income (Loss) per Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 15. Net Diluted Income (Loss) per Share Net income (loss) per share has been computed according to FASB ASC 260, “Earnings per Share,” which requires a dual presentation of basic and diluted earnings (loss) per share (“EPS”). Basic EPS represents net (loss) income 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. March 31, 2017 March 31, 2016 Basic net (loss) income per share computation: Net (loss) income $ (4,759,439 ) $ 1,004,153 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net (loss) income per share $ (1.46 ) $ 0.31 Diluted net (loss) income per share computation Net (loss) income $ (4,759,439 ) $ 1,004,153 Less: Change in fair value of warrants 103,000 - Diluted (loss) income (4,862,439 ) 1,004,153 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 10,955 4,266 Total adjusted weighted-average shares 3,266,842 3,261,153 Diluted net (loss) income per share $ (1.49 ) $ 0.31 The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share: March 31, 2017 March 31, 2016 Stock options 61,000 65,000 Warrants - 286,920 61,000 351,920 |
16. Segment Information
16. Segment Information | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 16. 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. Segment assets include accounts receivable and work-in-process inventory. Asset information, other than accounts receivable and work-in-process inventory, is not reported, since the Company does not produce such information internally. All long-lived assets are located in the U.S. The tables below present information about reportable segments for the years ended March 31: Avionics Avionics Avionics Corporate/ 2017 Government Commercial Total Reconciling Items Total Net sales $ 16,531,913 $ 2,213,543 $ 18,745,456 $ - $ 18,745,456 Cost of Sales 10,363,318 1,698,023 12,061,341 - 12,061,341 Gross Margin 6,168,595 515,520 6,684,115 - 6,684,115 Engineering, research, and development 2,430,322 - 2,430,322 Selling, general, and administrative 1,260,388 1,320,697 2,581,085 Litigation expenses 1,244,639 1,244,639 Legal damages 2,800,000 2,800,000 Amortization of deferred financing costs - 5,429 5,429 Change in fair value of common stock warrant - (321,203 ) (321,203 ) Interest expense, net - 59,167 59,167 3,690,710 5,108,729 8,799,439 Income (loss) before income taxes $ 2,993,405 $ (5,108,729 ) $ (2,115,324 ) Segment Assets $ 4,264,168 $ 1,500,393 $ 5,764,561 $ 671,387 $ 6,435,948 Avionics Avionics Avionics Corporate/ 2016 Government Commercial Total Reconciling Items Total Net sales $ 23,011,016 $ 1,793,809 $ 24,804,825 $ - $ 24,804,825 Cost of Sales 15,446,232 1,373,003 16,819,235 - 16,819,235 Gross Margin 7,564,784 420,806 7,985,590 - 7,985,590 Engineering, research, and development 2,038,126 - 2,038,126 Selling, general, and administrative 1,218,327 1,700,838 2,919,165 Litigation expenses 448,379 448,379 Amortization of deferred financing costs - 5,429 5,429 Change in fair value of common stock warrant - 617,241 617,241 Interest expense, net - 101,129 101,129 3,256,453 2,873,016 6,129,469 Income (loss) before income taxes $ 4,729,137 $ (2,873,016 ) $ 1,856,121 Segment Assets $ 5,644,551 $ 488,842 $ 6,133,393 $ 3,974,726 $ 10,108,119 |
17. Quarterly Results of Operat
17. Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 17. Quarterly Results of Operations (Unaudited) Quarterly consolidated data for the years ended March 31, 2017 and 2016 is as follows: Quarter Ended FY 2017 June 30 September 30 December 31 March 31 (See Notes 7 and 19) Net sales $ 5,342,369 $ 5,076,029 $ 4,236,519 $ 4,090,539 Gross margin 1,876,653 1,825,588 1,634,251 1,347,623 Income (loss) before taxes 578,053 381,815 177,895 (3,253,087 ) Net income (loss) 410,309 272,055 141,513 (5,583,316 ) Basic income (loss) per share 0.13 0.08 0.04 (1.71 ) Diluted income (loss) per share 0.10 0.07 0.03 (1.72 ) FY 2016 June 30 September 30 December 31 March 31 Net sales $ 5,845,919 $ 6,818,390 $ 5,970,865 $ 6,169,651 Gross margin 1,815,295 2,243,466 2,034,757 1,892,072 Income before taxes 494,244 370,153 453,537 538,187 Net income 279,066 199,466 226,586 299,035 Basic income per share 0.09 0.06 0.07 0.09 Diluted income per share 0.02 0.06 0.07 0.09 |
18. Fair Value Measurements
18. Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 18. Fair Value Measurements FASB ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and prescribes disclosures about fair value measurements. As defined in ASC 820, 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 observability of those inputs. ASC 820 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 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 have variable rates that reflect currently available terms and conditions for similar debt. 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. 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 March 31, 2017 and March 31, 2016. As required by FASB ASC 820, 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. March 31, 2017 Level I Level II Level III Total Warrant Liability $ - $ - $ 95,000 $ 95,000 Total Liabilities $ - $ - $ 95,000 $ 95,000 March 31, 2016 Level I Level II Level III Total Warrant Liability $ - $ - $ 1,136,203 $ 1,136,203 Total Liabilities $ - $ - $ 1,136,203 $ 1,136,203 ASC 815, “Derivatives and Hedging” requires that we mark the value of our warrant liability 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 following table provides a summary of the changes in fair value of our Level 3 financial liabilities for the years ended March 31, 2017 and 2016 as well as the unrealized gains or losses included in income. March 31, 2017 March 31, 2016 Fair value, at beginning of period $ 1,136,203 $ 518,962 New purchases and issuances - - Sales and settlements (720,000 ) - Change in fair value (321,203 ) 617,241 Fair value, at end of period $ 95,000 $ 1,136,203 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 recognized a warrant liability and estimated the fair value of these warrants using the Black-Scholes options model until the payment of the loan in November 2014. With the payment of the loan in November 2014, the holder has the right, exercisable at any time, in writing (the “Warrant Put Notice”, to cause the Company, subject to the terms and conditions hereof, to purchase from the holder all, or any portion, of the warrant for the warrant put repurchase price (the “Repurchase Price”). The Repurchase Price is the greater of 1) Adjusted EBITDA (as defined below) per share as of the date of the Warrant Put Notice, less $0.01, multiplied by the number of warrants or 2) the product of the current market price per share as of the date of the Warrant Put Notice, less the purchase price of the warrant or warrants, multiplied by the number of warrants, if this amount is higher. “Adjusted EBITDA” means EBITDA, multiplied by 5, plus cash and cash equivalents less unpaid debt divided by the number of shares outstanding on a fully diluted basis. During May 2016, BCA Mezzanine Fund LLP (“BCA”) informed the Company that BCA has elected to exercise its “put option”, thereby requiring the Company to purchase all the warrants held by BCA. Total warrants were to purchase a total of 236,920 shares of the Company’s common stock. The table below shows the warrants held by BCA for which the “put option” has been exercised. Date of Warrant Expiration Date Number of Warrants Exercise Price 09-10-2010 09-10-2019 136,920 $ 6.70 07-26-2012 09-10-2019 20,000 $ 3.35 11-20-2012 09-10-2019 20,000 $ 3.56 02-14-2013 09-10-2019 20,000 $ 3.58 07-12-2013 09-10-2019 20,000 $ 3.33 08/12/2013 09-10-2019 20,000 $ 3.69 The value of the warrants for the 236,920 shares of the Company’s common stock at the time of exercise was $720,000, and the Company paid this amount using cash from operations in August 2016, thereby extinguishing the warrant liability with BCA. The warrant liability for these warrants was $-0- at March 31, 2017 as compared to $938,203 at March 31, 2016. Upon payment to BCA, the Company has remaining warrants with an outside investor to purchase 50,000 shares of the Company’s common stock at an exercise price of $3.35 per share or exercising the “put option” to the Company in the same fashion as BCA. The warrant liability of the 50,000 warrants was $95,000 at March 31, 2017 as compared to $198,000 at March 31, 2016. Values at Inception Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Expected Volatility Remaining Life in Years Risk Free Interest Rate Warrant Liability 09-10-2010 09-10-2019 136,920 $ 6.70 $ 6.70 28.51 % 9 2.81 % $ 267,848 09-10-2010 09-10-2015 10,416 $ 6.70 $ 6.70 28.51 % 5 1.59 % $ 13,808 07-26-2012 09-10-2019 50,000 $ 3.35 $ 3.90 42.04 % 7 0.94 % $ 66,193 07-26-2012 09-10-2019 20,000 $ 3.35 $ 3.90 42.04 % 7 0.94 % $ 26,477 11-20-2012 09-10-2019 20,000 $ 3.56 $ 3.50 42.45 % 6.83 1.09 % $ 21,441 02-14-2013 09-10-2019 20,000 $ 3.58 $ 3.80 41.72 % 6.58 1.43 % $ 23,714 07-12-2013 09-10-2019 20,000 $ 3.33 $ 3.32 40.26 % 6.17 2.00 % $ 19,523 08-12-2013 09-10-2019 20,000 $ 3.69 $ 3.69 40.20 % 6.08 2.01 % $ 21,587 Values at March 31, 2016 Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Put Option Value Market Price Option Remaining Life in Years Warrant Liability 09-10-2010 09-10-2019 136,920 $ 6.70 $ 4.31 542,203 NA 3.45 $ 542,203 07-26-2012 09-10-2019 50,000 $ 3.35 $ 4.31 198,000 48,000 3.45 $ 198,000 07-26-2012 09-10-2019 20,000 $ 3.35 $ 4.31 79,200 19,200 3.45 $ 79,200 11-20-2012 09-10-2019 20,000 $ 3.56 $ 4.31 79,200 15,000 3.45 $ 79,200 02-14-2013 09-10-2019 20,000 $ 3.58 $ 4.31 79,200 12,800 3.45 $ 79,200 07-12-2013 09-10-2019 20,000 $ 3.33 $ 4.31 79,200 19,600 3.45 $ 79,200 08/12/2013 09-10-2019 20,000 $ 3.69 $ 4.31 79,200 12,400 3.45 $ 79,200 Values at March 31, 2017 Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Put Option Value Market Price Option Remaining Life in Years Warrant Liability 07-26-2012 09-10-2019 50,000 $ 3.35 $ 5.25 NA 95,000 2.45 $ 95,000 |
19. Litigation
19. Litigation | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 19. Litigation Contingencies are recorded in the consolidated financial statements when it is probable that a liability will be incurred and the amount of the loss is reasonably estimable, or otherwise disclosed, in accordance with Accounting Standards Codification 450, Contingencies (ASC 450). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, when applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss or if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. On March 24, 2009, Aeroflex Wichita, Inc. (“Aeroflex”) filed a petition against the Company and two of its employees in the District Court located in 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, to develop new Mode-5 radar test sets and kits to upgrade the existing TS-4530 radar test sets to Mode 5 (the “Award”). Aeroflex’s petition, seeking injunctive relief and damages, alleges that in connection with the Award, the Company and its named employees misappropriated Aeroflex’s trade secrets; tortiously interfered with Aeroflex’s business relationship; conspired to harm Aeroflex and tortiously interfered with Aeroflex’s contract. 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 Company winning the Award, 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 on Aeroflex’s 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 the Aeroflex Action on jurisdiction grounds. Aeroflex appealed this decision. In May 2012, the Kansas Supreme Court reversed the decision and remanded the Aeroflex Action to the Kansas District Court for further proceedings. On May 23, 2016, the Company filed a motion for summary judgment based on Aeroflex’s lack of jurisdictional standing to bring the case. The motion asserts that Aeroflex does not own the intellectual property at issue since it is a bare licensee of Northrop Grumman. Northrop Grumman has declined to join this suit as plaintiff. Aeroflex lacks standing to sue alone. Also, the motion raises the fact that Aeroflex allowed the license to expire, Aeroflex’s claims are either moot or Aeroflex lacks standing to sue for damages alleged to have accrued after the license ended in December 2011. The motion for summary judgment was denied. The Aeroflex trial on remand in the Kansas District Court began in March 2017. After a six-week trial, the jury rendered its verdict. The jury found no misappropriation of Aeroflex trade secrets but it did rule that the Company tortiously interfered with a prospective business opportunity and awarded damages of $1.3 million for lost profits. The jury also ruled that Tel tortiously interfered with Aeroflex’s non-disclosure agreements with two former Aeroflex employees and awarded damages of $1.5 million for lost profits, resulting in total damages against the Company of $2.8 million. The jury also found that the former Aeroflex employees breached their non-disclosure agreements with Aeroflex and awarded damages against these two individuals totaling $525,000. The jury also decided that punitive damages should be allowed against the Company. The court has not yet entered final judgment on the verdict. Following the verdict, the Company filed a motion for judgment as a matter of law, which is pending. In the motion, the Company renewed its motion for judgment on Aeroflex’s tortious interference with prospective business opportunity claim arguing that such claim is barred by the statute of limitations. Alternatively, the motion asserts there is insufficient evidence supporting the lost profit award on that claim. Additionally, the motion for judgment addresses inconsistency between the awards against the former Aeroflex employees for breach of the non-disclosure agreements and the award against the Company for interfering with those agreements. Alternatively, the motion asserts there is insufficient evidence supporting the lost profit award on that claim. While we believe that this motion has merit, there is no assurance that the judge will reduce the jury awards. During July, 2017, the Court will hear the Company’s motion for judgment. The Court will also conduct a hearing as to the amount of a punitive damages award. Kansas statutes limit punitive damages to a maximum of $5 million. Aeroflex has submitted a motion to the Court requesting that the judge award punitive damages at the maximum $5 million amount. In Kansas, punitive damages are awarded to “punish the wrongdoer for his malicious, vindictive or willful and wanton invasion of another’s rights, with the ultimate purpose being to restrain and deter others from the commission of similar wrongdoings.” Importantly, Kansas courts have ruled that the purpose of punitive damages “is to sting, not to kill”. The Court will also take into consideration the Company’s financial condition in setting the amount of punitive damages. The Company does not believe that punitive damages, in any amount are appropriate. Regardless, the Company will vigorously defend against an award. In summary, until the Court rules on the pending matters the final judgment on the verdict is speculative. At this stage, the Company has recorded a $2.8 million liability but this could materially change based on the judge’s ruling which could come as early as July, 2017. Punitive damages can also range between $-0- and $5 million. Depending on the outcome of these hearings, both sides have the ability to appeal the decision or the judge could vacate the jury decision and schedule a new trial. If the judge enters a final damages award, both sides have approximately 30 days to file an appeal or a request a new trial. If the Company files the appeal on its own, it will be required to post a bond in the equal to the lesser of: (1) the final damages award; or (2) $1 million plus 25% of the amount of the verdict in excess of $1 million, which would currently total $1.45 million. The Company believes it has excellent grounds to appeal this verdict. The appeal process would be expected to take several years to complete. 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. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation: The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and include the Company and its wholly-owned subsidiary. All significant inter-company accounts and transactions have been eliminated. |
Liquidity and Going Concern, Policy [Policy Text Block] | Liquidity and Going Concern: These audited consolidated financial statements have been prepared in conformity with GAAP, which contemplates continuation of the Company as a going concern. As discussed in Note 19 to the Notes to the Consolidated Financial Statements, the Company has recorded estimated damages of $2,800,000 as a result of the jury verdict associated with the Aeroflex litigation. The jury found no misappropriation of Aeroflex trade secrets but it did rule that the Company tortiously interfered with a prospective business opportunity and awarded damages. The jury also ruled that Tel tortiously interfered with Aeroflex’s non-disclosure agreements with two former Aeroflex employees. The jury also found that the former Aeroflex employees breached their non-disclosure agreements with Aeroflex. The court will conduct further hearings in the next few weeks which will include a punitive damages claim. Subsequent to the jury verdict, the Company filed a motion with the Kansas court seeking to reduce the damages award. The court will conduct further hearings on both motions in the next few weeks. Given the uncertainty involving the final damages amount and the ability of the Company to secure adequate financing to support an appeal or satisfy the judgment, the Company has written off its deferred tax asset in the amount of $3,490,778. The damages, legal expense and write off of the deferred tax asset resulted in the Company incurring a net loss of $4,759,439 for the current fiscal year. Additionally, working capital at March 31, 2017 was just $214,560 and the Company has a Stockholders’ Deficit of $54,361. The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital to support the appeal process or pay any final damages amount and achieve profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company has been profitable from an operational standpoint for the last several years and should be able to obtain sufficient cash proceeds to support the planned appeal assuming the final judgment amount remains at or below the current $2.8 million accrual. Financing discussions have been taking place with various parties but the Company has no commitment from any party to provide additional funding at this time. Moreover, there is no assurance that sufficient funding will be available, or if available, that its terms will be favorable to the Company. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: Revenues are recognized at the time of shipment to, or acceptance by the customer, provided title and risk of loss is transferred to the customer as the product price is fixed or determinable, collection of the resulting receivable is probable, evidence of an arrangement exists and product returns are reasonably estimable. Provisions, when appropriate, are made where the right to return exists. Revenues for repairs and calibrations of the Company’s products represented 5.7% and 3.7% of sales for the years ended March 31, 2017 and 2016, respectively. These revenues are for units that are periodically returned for annual calibrations and/or for repairs after the warranty period has expired. Revenues on repairs and calibrations are recognized at the time the repaired or calibrated unit is shipped, as it is at this time that the work is completed. The Company’s terms are F.O.B. Plant, and as such, delivery has occurred, and revenue recognized, when picked up and acknowledged by a common carrier. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. Payments received prior to the delivery of units or services performed are recorded as deferred revenues. With respect to warranty revenues, upon the completion of two years from the date of sale, considered to be the warranty period, the Company offers customers an optional warranty. Amounts received for warranties are recorded as deferred revenue and recognized over the respective terms of the agreements. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments: The Company estimates that the fair value of all financial instruments at March 31, 2017 and March 31, 2016, as defined in Financial Accounting Standards Board (“FASB”) ASC 825 “Financial Instruments”, does not differ materially, except for the items discussed below, from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The carrying amounts reported in the consolidated balance sheets as of March 31, 2017 and March 31, 2016 for cash, accounts receivable and accounts payable approximate the fair value because of the immediate or short-term maturity of these financial instruments. Each reporting period we evaluate market conditions including available interest rates, credit spreads relative to our credit rating and liquidity in estimating the fair value of our debt. After considering such market conditions, we estimate that the fair value of debt approximates its carrying value. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash held in banks: |
Receivables, Policy [Policy Text Block] | Accounts Receivable: |
Inventory, Policy [Policy Text Block] | Inventories: Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. Inventories are written down if the estimated net realizable value is less than the recorded value. The Company reviews the carrying cost of inventories by product to determine the adequacy of reserves for obsolescence. In accounting for inventories, the Company must make estimates regarding the estimated realizable value of inventory. The estimate is based, in part, on the Company’s forecasts of future sales and age of inventory. In accordance with industry practice, service parts inventory is included in current assets, although service parts are carried for established requirements during the serviceable lives of the products and, therefore, not all parts are expected to be sold within one year. |
Property, Plant and Equipment, Policy [Policy Text Block] | Equipment and Leasehold Improvements: Office and manufacturing equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization are provided on a straight-line basis over periods ranging from 3 to 5 years. Leasehold improvements are amortized over the term of the lease or the useful life of the asset, whichever is shorter. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its life are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in the Statement of Operations. |
Research and Development Expense, Policy [Policy Text Block] | Engineering, Research and Development Costs: Engineering, research and development costs are expensed as incurred. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expenses: Advertising expenses consist primarily of costs for direct advertising. The Company expenses all advertising costs as incurred, and classifies these costs under selling, general and administrative expenses. Advertising costs amounted to $-0- and $577 for the years ended March 31, 2017 and 2016, respectively. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues: Amounts billed in advance of the period in which the service is rendered or product delivered are recorded as deferred revenue. At March 31, 2017 and 2016, deferred revenues totaled $476,693 and $221,469, respectively. See above for additional information regarding our revenue recognition policies. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share: Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed by dividing diluted net income by the weighted-average number of common shares outstanding during the period, including common stock equivalents, such as stock options and warrants using the treasury stock method. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period, and excludes the anti-dilutive effects of common stock equivalents |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability method described in FASB ASC 740, “Income Taxes”. Deferred tax assets arise from a variety of sources, the most significant being: a) tax losses that can be carried forward to be utilized against profits in future years; b) expenses recognized for financial reporting purposes but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes of assets which need to be tax effected for book purposes but are deductible only when the valuation change is realized. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when such differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefit which is not more likely than not to be realized. In assessing the need for a valuation allowance, future taxable income is estimated, considering the realization of tax loss carryforwards. Valuation allowances related to deferred tax assets can also be affected by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event it was determined that the Company would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through a charge to income in the period in which that determination is made. Conversely, if we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation allowance through an increase to income in the period in which that determination is made. In its evaluation of a valuation allowance the Company takes into account existing contracts and backlog, and the probability that options under these contract awards will be exercised as well as sales of existing products. The Company prepares profit projections based on the revenue and expenses forecast to determine that such revenues will produce sufficient taxable income to realize the deferred tax assets. The Company accounts for uncertainties in income taxes under ASC 740-10-50 which 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. ASC 740-10 requires that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained upon audit based on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. The implementation of ASC 740-10 had no impact on the Company’s results of operations or financial position. Accounting for Income Taxes: Despite the Company’s belief that its tax return positions are consistent with applicable tax laws, one or more positions may be challenged by taxing authorities. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations or litigation. Interest and penalties related to income tax matters, if applicable, will be recognized as income tax expense. During the years ended March 31, 2017 and 2016 the Company did not incur any expense related to interest or penalties for income tax matters, and no such amounts were accrued as of March 31, 2017 and 2016. The Company’s tax years remain open for examination by the tax authorities primarily beginning 2013 through present. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation: The Company accounts for stock-based compensation in accordance with FASB ASC 718 which requires the measurement of stock-based compensation based on the fair value of the award on the date of grant. The Company recognizes compensation cost on awards on a straight-line basis over the vesting period, typically four years. The Company estimates the fair value of each option granted using the Black-Scholes option-pricing model. Additional information and disclosure are provided in Note 14 below. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets: The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment losses have been recognized for the years ended March 31, 2017 and 2016, respectively. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include income taxes, warranty claims, inventory and accounts receivable valuations. |
Reclassification, Policy [Policy Text Block] | Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Accounts Receivable: The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current credit worthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for and payments from its customers and maintains provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. While such credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | Warranty Reserves: Warranty reserves are based upon historical rates and specific items that are identifiable and can be estimated at time of sale. While warranty costs have historically been within the Company’s expectations and the provisions established, future warranty costs could be in excess of the Company’s warranty reserves. A significant increase in these costs could adversely affect the Company’s operating results for the period and the periods these additional costs materialize. Warranty reserves are adjusted from time to time when actual warranty claim experience differs from estimates. For the year ended March 31, 2017 warranty costs were $107,735 as compared to $367,935 for the year ended March 31, 2016 and are included in Cost of Sales in the accompanying statement of operations. See Note 6 for warranty reserves. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Risks and Uncertainties: The Company’s operations are subject to a number of risks, including but not limited to changes in the general economy, demand for the Company’s products, the success of its customers, research and development results, reliance on the government and commercial markets, litigation, and the renewal of its line of credit. The Company has major contracts with the U.S. Government, which like all government contracts are subject to termination. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements: Adopted In August 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The guidance requires management to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies such conditions or events, a footnote disclosure is required to disclose their nature, as well as management’s plans to alleviate the substantial doubt to continue as a going concern. The standard became effective for our fiscal year end 2017 and did not have an impact on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which is an update to Topic 740, “Income Taxes”. The update requires that all deferred tax assets and liabilities be classified as non-current. The Company adopted this update in the current year, which is reflected in the accompanying balance sheets. The deferred tax recorded as a current asset for the year ended March 31, 2016 was reclassified as Deferred Tax – Non-Current. The adoption of this update did not have any impact on the Company’s results of operations. To Be Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 (“Improvements to Employee Share-Based Payment Accounting”) which simplifies several aspects of accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (“Leases”), which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The new standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The adoption of this ASU will increase assets and liabilities for operating leases. The Company is evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 that introduces a new five-step revenue recognition model in which an entity should 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. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In March 2016, the FASB issued ASU 2016-08 which further clarifies the guidance on the principal versus agent considerations within ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 to improve revenue recognition in the areas of collectability, presentation of sales tax and other similar taxes collected from customers, noncash consideration, contract modifications and completed contracts at transition. This update also amends the disclosure requirements within ASU 2014-09 for entities that retrospectively apply the guidance. The latest amendments are intended to address implementation issues that were raised by stakeholders and discussed by the Revenue Recognition Transition Resource Group, and provide additional practical expedients. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact, if any, it will have on its consolidated financial statements. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s condensed consolidated financial statements. |
3. Accounts Receivable (Tables)
3. Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table sets forth the components of accounts receivable: March 31, 2017 2016 Government $ 1,392,482 $ 1,343,477 Commercial 171,400 118,384 Less: Allowance for doubtful accounts (7,500 ) (7,500 ) $ 1,556,382 $ 1,454,361 |
4. Inventories (Tables)
4. Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: March 31, 2017 2016 Purchased parts $ 3,197,378 $ 3,420,249 Work-in-process 1,272,235 1,446,293 Finished goods 68,566 102,490 Less: Allowance for obsolete inventory (330,000 ) (290,000 ) $ 4,208,179 $ 4,679,032 |
5. Equipment and Leasehold Im29
5. Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Equipment and leasehold improvements consist of the following: March 31, 2017 2016 Leasehold Improvements $ 95,858 $ 95,858 Machinery and equipment 1,574,058 1,518,780 Automobiles 23,712 23,712 Sales equipment 599,796 572,236 Assets under capitalized leases 637,189 637,189 Less: Accumulated depreciation & amortization (2,769,186 ) (2,654,257 ) $ 161,427 $ 193,518 |
6. Accrued Expenses (Tables)
6. Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
6. Accrued Expenses (Tables) [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a summary of the changes in warranty reserves for the years ended March 31, 2017 and 2016: March 31, 2017 2016 Warranty reserve, at beginning of period $ 208,102 $ 140,333 Warranty expense 107,735 367,935 Warranty deductions (127,393 ) (300,166 ) Warranty reserve, at end of period $ 188,444 $ 208,102 |
Accrued Employee Related Liabilities [Member] | |
6. Accrued Expenses (Tables) [Line Items] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued vacation pay, deferred wages, payroll and payroll withholdings consist of the following: March 31, 2017 2016 Accrued vacation pay $ 390,348 $ 394,404 Accrued compensation and payroll withholdings 137,065 442,185 $ 527,413 $ 836,589 |
Other Liabilities [Member] | |
6. Accrued Expenses (Tables) [Line Items] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses - other consist of the following: March 31, 2017 2016 Accrued commissions 72,171 8,189 Accrued legal costs 251,459 53,766 Warranty reserve 188,444 208,102 Accrued – other 86,975 231,630 $ 599,049 $ 501,687 |
Accrued Liabilities, Related Party [Member] | |
6. Accrued Expenses (Tables) [Line Items] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses – related parties consists of the following: March 31, 2017 2016 Interest due to the estate of the Company’s former Chairman $ - $ 107,237 Interest and other expenses due to the Company’s President/CEO 45,586 106,107 $ 45,586 $ 213,344 |
7. Income Taxes (Tables)
7. Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax (benefit) provision: Fiscal Year Ended March 31, March 31, 2017 2016 Current: Federal $ (1,018 ) $ 52,123 State and local 1,500 1,500 Total current tax provision 482 53,623 Deferred: Federal 2,643,357 796,500 State and local 276 1,845 Total deferred tax provision 2,643,633 798,345 Total provision $ 2,644,115 $ 851,968 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The approximate values of the components of the Company’s deferred taxes at March 31, 2017 and 2016 are as follows: March 31, March 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 1,645,868 $ 1,802,492 Tax credits 329,032 329,032 Charitable contributions 102 51 Legal damages 956,000 - Allowance for doubtful accounts 2,561 2,550 Reserve for inventory obsolescence 112,671 98,614 Inventory capitalization 105,998 69,918 Deferred payroll - 88,288 Vacation accrual 133,276 134,116 Warranty reserve 64,340 70,765 Deferred revenues 162,757 75,310 Stock options 25,494 23,544 Non-compete agreement 5,941 7,889 AMT credit 66,106 52,123 Depreciation 18,412 26,721 Deferred tax asset 3,628,558 2,781,413 Less valuation allowance (3,628,558 ) (137,780 ) Deferred tax asset, net $ -0- $ 2,643,633 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the income tax (benefit) provision at the statutory Federal tax rate of 34% to the income tax (benefit) provision recognized in the financial statements is as follows: March 31, March 31, 2017 2016 Income tax (benefit) provision – statutory rate $ (711,344 ) $ 631,081 Income tax expenses – state and local, net of federal benefit (2,404 ) 2,835 Permanent items 12,870 12,194 Change in value of warrants – permanent difference (109,209 ) 209,862 True-up of prior year’s deferred taxes (25,178 ) (4,281 ) Valuation allowance 3,490,778 - Rate changes (7,776 ) - Other (3,622 ) 277 Income tax provision (benefit) $ 2,644,115 $ 851,968 |
9. Long-Term Debt (Tables)
9. Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The annual maturities of long-term debt for the five fiscal years subsequent to March 31, 2017 are as follows: 2018 $ 291,991 2019 2,124 2020 - 2021 - 2022 - Total Principal 294,115 Less: Current Portion (291,991 ) Total Long-Term Debt $ 2,124 |
11. Commitments (Tables)
11. Commitments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a schedule of approximate future minimum rental payments for operating leases subsequent to the year ended March 31, 2017. Years Ended March 31, 2018 $ 322,201 2019 307,206 2020 306,153 2021 306,153 2022 127,564 $ 1,369,277 |
12. Capitalized Lease Obligat34
12. Capitalized Lease Obligations (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | At March 31, 2017, future payments under capital leases are as follows over each of the next five fiscal years: 2018 $ 7,864 2019 7,864 2020 7,209 2021 - 2022 -- Total minimum lease payments 22,937 Less amounts representing interest (2,909 ) Present value of net minimum lease payments 20,028 Less current portion (6,268 ) Long-term capital lease obligation $ 13,760 |
13. Significant Customer Conc35
13. Significant Customer Concentrations (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Net sales to foreign customers were $1,782,646 and $1,900,724 for the years ended March 31, 2017 and 2016, respectively. All other sales were to customers located in the U.S. The following table presents net sales by U.S. and foreign countries: 2017 2016 United States $ 16,962,810 $ 22,904,101 Foreign countries 1,782,646 1,900,724 Total Avionics Sales $ 18,745,456 $ 24,804,825 |
14. Stock Option Plans (Tables)
14. Stock Option Plans (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period of time from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. There were no stock options granted for the year ended March 31, 2017. The per share weighted-average fair value of stock options granted for the year ended March 31, 2016 was $2.36 on the date of grant using the Black Scholes option-pricing model with the following assumptions: Dividend Risk-free Yield Interest rate Volatility Life 2016 0.0 % 1.39 % 44.54 % 5 years |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of the Company’s stock option plans for the fiscal years ended March 31, 2017 and 2016 and changes during the years are presented below (in number of options): Number of Options Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding options at April 1, 2015 71,500 $ 6.06 Options granted 51,000 $ 5.85 Options exercised - $ - Options canceled/forfeited (37,500 ) $ 7.43 Outstanding options at March 31, 2016 85,000 $ 5.33 3.4 years $ 9,000 Options granted - $ - Options exercised - $ - Options canceled/forfeited (6,000 ) $ 6.34 Outstanding options at March 31, 2017 79,000 $ 5.26 2.5 years $ 28,900 Vested Options: March 31, 2017: 33,800 $ 4.59 1.9 years $ 28,460 March 31, 2016: 26,000 $ 4.38 2.1 years $ 9,000 |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the Company’s non-vested shares as of March 31, 2017 and changes during the year ended March 31, 2016 is presented below: Non-vested Shares Shares Weighted-Average Grant-Date Fair value Non-vested at April 1, 2016 59,000 $ 5.75 Granted - $ - Vested (11,800 ) $ 5.73 Forfeited (1,600 ) $ 5.85 Non-vested at March 31, 2017 45,600 $ 5.76 |
15. Net Diluted Income (Loss)37
15. Net Diluted Income (Loss) per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | March 31, 2017 March 31, 2016 Basic net (loss) income per share computation: Net (loss) income $ (4,759,439 ) $ 1,004,153 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net (loss) income per share $ (1.46 ) $ 0.31 Diluted net (loss) income per share computation Net (loss) income $ (4,759,439 ) $ 1,004,153 Less: Change in fair value of warrants 103,000 - Diluted (loss) income (4,862,439 ) 1,004,153 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 10,955 4,266 Total adjusted weighted-average shares 3,266,842 3,261,153 Diluted net (loss) income per share $ (1.49 ) $ 0.31 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share: March 31, 2017 March 31, 2016 Stock options 61,000 65,000 Warrants - 286,920 61,000 351,920 |
16. Segment Information (Tables
16. Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The tables below present information about reportable segments for the years ended March 31: Avionics Avionics Avionics Corporate/ 2017 Government Commercial Total Reconciling Items Total Net sales $ 16,531,913 $ 2,213,543 $ 18,745,456 $ - $ 18,745,456 Cost of Sales 10,363,318 1,698,023 12,061,341 - 12,061,341 Gross Margin 6,168,595 515,520 6,684,115 - 6,684,115 Engineering, research, and development 2,430,322 - 2,430,322 Selling, general, and administrative 1,260,388 1,320,697 2,581,085 Litigation expenses 1,244,639 1,244,639 Legal damages 2,800,000 2,800,000 Amortization of deferred financing costs - 5,429 5,429 Change in fair value of common stock warrant - (321,203 ) (321,203 ) Interest expense, net - 59,167 59,167 3,690,710 5,108,729 8,799,439 Income (loss) before income taxes $ 2,993,405 $ (5,108,729 ) $ (2,115,324 ) Segment Assets $ 4,264,168 $ 1,500,393 $ 5,764,561 $ 671,387 $ 6,435,948 Avionics Avionics Avionics Corporate/ 2016 Government Commercial Total Reconciling Items Total Net sales $ 23,011,016 $ 1,793,809 $ 24,804,825 $ - $ 24,804,825 Cost of Sales 15,446,232 1,373,003 16,819,235 - 16,819,235 Gross Margin 7,564,784 420,806 7,985,590 - 7,985,590 Engineering, research, and development 2,038,126 - 2,038,126 Selling, general, and administrative 1,218,327 1,700,838 2,919,165 Litigation expenses 448,379 448,379 Amortization of deferred financing costs - 5,429 5,429 Change in fair value of common stock warrant - 617,241 617,241 Interest expense, net - 101,129 101,129 3,256,453 2,873,016 6,129,469 Income (loss) before income taxes $ 4,729,137 $ (2,873,016 ) $ 1,856,121 Segment Assets $ 5,644,551 $ 488,842 $ 6,133,393 $ 3,974,726 $ 10,108,119 |
17. Quarterly Results of Oper39
17. Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Quarterly consolidated data for the years ended March 31, 2017 and 2016 is as follows: Quarter Ended FY 2017 June 30 September 30 December 31 March 31 (See Notes 7 and 19) Net sales $ 5,342,369 $ 5,076,029 $ 4,236,519 $ 4,090,539 Gross margin 1,876,653 1,825,588 1,634,251 1,347,623 Income (loss) before taxes 578,053 381,815 177,895 (3,253,087 ) Net income (loss) 410,309 272,055 141,513 (5,583,316 ) Basic income (loss) per share 0.13 0.08 0.04 (1.71 ) Diluted income (loss) per share 0.10 0.07 0.03 (1.72 ) FY 2016 June 30 September 30 December 31 March 31 Net sales $ 5,845,919 $ 6,818,390 $ 5,970,865 $ 6,169,651 Gross margin 1,815,295 2,243,466 2,034,757 1,892,072 Income before taxes 494,244 370,153 453,537 538,187 Net income 279,066 199,466 226,586 299,035 Basic income per share 0.09 0.06 0.07 0.09 Diluted income per share 0.02 0.06 0.07 0.09 |
18. Fair Value Measurements (Ta
18. Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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. March 31, 2017 Level I Level II Level III Total Warrant Liability $ - $ - $ 95,000 $ 95,000 Total Liabilities $ - $ - $ 95,000 $ 95,000 March 31, 2016 Level I Level II Level III Total Warrant Liability $ - $ - $ 1,136,203 $ 1,136,203 Total Liabilities $ - $ - $ 1,136,203 $ 1,136,203 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a summary of the changes in fair value of our Level 3 financial liabilities for the years ended March 31, 2017 and 2016 as well as the unrealized gains or losses included in income. March 31, 2017 March 31, 2016 Fair value, at beginning of period $ 1,136,203 $ 518,962 New purchases and issuances - - Sales and settlements (720,000 ) - Change in fair value (321,203 ) 617,241 Fair value, at end of period $ 95,000 $ 1,136,203 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | During May 2016, BCA Mezzanine Fund LLP (“BCA”) informed the Company that BCA has elected to exercise its “put option”, thereby requiring the Company to purchase all the warrants held by BCA. Total warrants were to purchase a total of 236,920 shares of the Company’s common stock. The table below shows the warrants held by BCA for which the “put option” has been exercised. Date of Warrant Expiration Date Number of Warrants Exercise Price 09-10-2010 09-10-2019 136,920 $ 6.70 07-26-2012 09-10-2019 20,000 $ 3.35 11-20-2012 09-10-2019 20,000 $ 3.56 02-14-2013 09-10-2019 20,000 $ 3.58 07-12-2013 09-10-2019 20,000 $ 3.33 08/12/2013 09-10-2019 20,000 $ 3.69 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Expected Volatility Remaining Life in Years Risk Free Interest Rate Warrant Liability 09-10-2010 09-10-2019 136,920 $ 6.70 $ 6.70 28.51 % 9 2.81 % $ 267,848 09-10-2010 09-10-2015 10,416 $ 6.70 $ 6.70 28.51 % 5 1.59 % $ 13,808 07-26-2012 09-10-2019 50,000 $ 3.35 $ 3.90 42.04 % 7 0.94 % $ 66,193 07-26-2012 09-10-2019 20,000 $ 3.35 $ 3.90 42.04 % 7 0.94 % $ 26,477 11-20-2012 09-10-2019 20,000 $ 3.56 $ 3.50 42.45 % 6.83 1.09 % $ 21,441 02-14-2013 09-10-2019 20,000 $ 3.58 $ 3.80 41.72 % 6.58 1.43 % $ 23,714 07-12-2013 09-10-2019 20,000 $ 3.33 $ 3.32 40.26 % 6.17 2.00 % $ 19,523 08-12-2013 09-10-2019 20,000 $ 3.69 $ 3.69 40.20 % 6.08 2.01 % $ 21,587 Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Put Option Value Market Price Option Remaining Life in Years Warrant Liability 09-10-2010 09-10-2019 136,920 $ 6.70 $ 4.31 542,203 NA 3.45 $ 542,203 07-26-2012 09-10-2019 50,000 $ 3.35 $ 4.31 198,000 48,000 3.45 $ 198,000 07-26-2012 09-10-2019 20,000 $ 3.35 $ 4.31 79,200 19,200 3.45 $ 79,200 11-20-2012 09-10-2019 20,000 $ 3.56 $ 4.31 79,200 15,000 3.45 $ 79,200 02-14-2013 09-10-2019 20,000 $ 3.58 $ 4.31 79,200 12,800 3.45 $ 79,200 07-12-2013 09-10-2019 20,000 $ 3.33 $ 4.31 79,200 19,600 3.45 $ 79,200 08/12/2013 09-10-2019 20,000 $ 3.69 $ 4.31 79,200 12,400 3.45 $ 79,200 Date of Warrant Expiration Date Number of Warrants Exercise Price Fair Market Value Per Share Put Option Value Market Price Option Remaining Life in Years Warrant Liability 07-26-2012 09-10-2019 50,000 $ 3.35 $ 5.25 NA 95,000 2.45 $ 95,000 |
2. Summary of Significant Acc41
2. Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
2. Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Estimated Litigation Liability | $ 2,800,000 | $ 2,800,000 | ||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 3,490,778 | |||||||||
Net (loss) income | (5,583,316) | $ 141,513 | $ 272,055 | $ 410,309 | $ 299,035 | $ 226,586 | $ 199,466 | $ 279,066 | (4,759,439) | $ 1,004,153 |
Working Capital | 214,560 | 214,560 | ||||||||
Stockholders' Equity Attributable to Parent | (54,361) | 4,672,364 | $ (54,361) | 4,672,364 | ||||||
Standard Product Warranty Description | two years from the date of sale | |||||||||
Property, Plant and Equipment, Depreciation Methods | straight-line basis | |||||||||
Advertising Expense | $ 0 | 577 | ||||||||
Deferred Revenue | $ 476,693 | $ 221,469 | $ 476,693 | 221,469 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||
Product Warranty Expense | $ 107,735 | $ 367,935 | ||||||||
Equipment [Member] | Minimum [Member] | ||||||||||
2. Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||||
Equipment [Member] | Maximum [Member] | ||||||||||
2. Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||||||
Sales Revenue, Services, Net [Member] | Product Concentration Risk [Member] | ||||||||||
2. Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 5.70% | 3.70% |
3. Accounts
3. Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (7,500) | $ (7,500) |
Total | 1,556,382 | 1,454,361 |
Government Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | 1,392,482 | 1,343,477 |
Commercial Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | $ 171,400 | $ 118,384 |
4. Inventories (Details)
4. Inventories (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
4. Inventories (Details) [Line Items] | ||
Inventory, Work in Process, Gross | $ 1,272,235 | $ 1,446,293 |
Government Receivables [Member] | ||
4. Inventories (Details) [Line Items] | ||
Inventory, Work in Process, Gross | $ 870,448 | $ 1,331,784 |
4. Inventori
4. Inventories (Details) - Schedule of Inventory, Current - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Schedule of Inventory, Current [Abstract] | ||
Purchased parts | $ 3,197,378 | $ 3,420,249 |
Work-in-process | 1,272,235 | 1,446,293 |
Finished goods | 68,566 | 102,490 |
Less: Allowance for obsolete inventory | (330,000) | (290,000) |
$ 4,208,179 | $ 4,679,032 |
5. Equipment and Leasehold Im45
5. Equipment and Leasehold Improvements (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization | $ 120,160 | $ 164,774 |
5. Equipment
5. Equipment and Leasehold Improvements (Details) - Property, Plant and Equipment - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation & amortization | $ (2,769,186) | $ (2,654,257) |
Property and equipment, net | 161,427 | 193,518 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 95,858 | 95,858 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,574,058 | 1,518,780 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,712 | 23,712 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 599,796 | 572,236 |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 637,189 | $ 637,189 |
6. Accrued Expenses (Details)
6. Accrued Expenses (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
6. Accrued Expenses (Details) [Line Items] | ||
Employee-related Liabilities, Current | $ 527,413 | $ 836,589 |
Officer [Member] | ||
6. Accrued Expenses (Details) [Line Items] | ||
Employee-related Liabilities, Current | $ 136,731 | $ 321,831 |
6. Accrued E
6. Accrued Expenses (Details) - Schedule of Accrued Employee Related Liabilities - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Schedule of Accrued Employee Related Liabilities [Abstract] | ||
Accrued vacation pay | $ 390,348 | $ 394,404 |
Accrued compensation and payroll withholdings | 137,065 | 442,185 |
$ 527,413 | $ 836,589 |
6. Accrued49
6. Accrued Expenses (Details) - Schedule of Accrued Liabilities - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Schedule of Accrued Liabilities [Abstract] | |||
Accrued commissions | $ 72,171 | $ 8,189 | |
Accrued legal costs | 251,459 | 53,766 | |
Warranty reserve | 188,444 | 208,102 | $ 140,333 |
Accrued – other | 86,975 | 231,630 | |
$ 599,049 | $ 501,687 |
6. Accrued50
6. Accrued Expenses (Details) - Schedule of Product Warranty Liability - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Product Warranty Liability [Abstract] | ||
Warranty reserve, at beginning of period | $ 208,102 | $ 140,333 |
Warranty expense | 107,735 | 367,935 |
Warranty deductions | (127,393) | (300,166) |
Warranty reserve, at end of period | $ 188,444 | $ 208,102 |
6. Accrued51
6. Accrued Expenses (Details) - Schedule of Accrued Liabilities, Related Party - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
6. Accrued Expenses (Details) - Schedule of Accrued Liabilities, Related Party [Line Items] | ||
Accrued expenses - related parties | $ 45,586 | $ 213,344 |
Estate of Former Chairman [Member] | ||
6. Accrued Expenses (Details) - Schedule of Accrued Liabilities, Related Party [Line Items] | ||
Accrued expenses - related parties | 0 | 107,237 |
President [Member] | ||
6. Accrued Expenses (Details) - Schedule of Accrued Liabilities, Related Party [Line Items] | ||
Accrued expenses - related parties | $ 45,586 | $ 106,107 |
7. Income Taxes (Details)
7. Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
7. Income Taxes (Details) [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 3,628,558 | $ 137,780 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |
Domestic Tax Authority [Member] | ||
7. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 4,827,000 | |
Operating Loss Carryforwards, Expiration Date | 2,027 | |
State and Local Jurisdiction [Member] | ||
7. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 3,357,000 | |
Operating Loss Carryforward, Expiration Period | 20 years |
7. Income Ta
7. Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Current: | ||
Federal | $ (1,018) | $ 52,123 |
State and local | 1,500 | 1,500 |
Total current tax provision | 482 | 53,623 |
Deferred: | ||
Federal | 2,643,357 | 796,500 |
State and local | 276 | 1,845 |
Total deferred tax provision | 2,643,633 | 798,345 |
Total provision | $ 2,644,115 | $ 851,968 |
7. Income 54
7. Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,645,868 | $ 1,802,492 |
Tax credits | 329,032 | 329,032 |
Charitable contributions | 102 | 51 |
Legal damages | 956,000 | 0 |
Allowance for doubtful accounts | 2,561 | 2,550 |
Reserve for inventory obsolescence | 112,671 | 98,614 |
Inventory capitalization | 105,998 | 69,918 |
Deferred payroll | 0 | 88,288 |
Vacation accrual | 133,276 | 134,116 |
Warranty reserve | 64,340 | 70,765 |
Deferred revenues | 162,757 | 75,310 |
Stock options | 25,494 | 23,544 |
Non-compete agreement | 5,941 | 7,889 |
AMT credit | 66,106 | 52,123 |
Depreciation | 18,412 | 26,721 |
Deferred tax asset | 3,628,558 | 2,781,413 |
Less valuation allowance | (3,628,558) | (137,780) |
Deferred tax asset, net | $ 0 | $ 2,643,633 |
7. Income 55
7. Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Income tax (benefit) provision – statutory rate | $ (711,344) | $ 631,081 |
Income tax expenses – state and local, net of federal benefit | (2,404) | 2,835 |
Permanent items | 12,870 | 12,194 |
Change in value of warrants – permanent difference | (109,209) | 209,862 |
True-up of prior year’s deferred taxes | (25,178) | (4,281) |
Valuation allowance | 3,490,778 | 0 |
Rate changes | (7,776) | 0 |
Other | (3,622) | 277 |
Income tax provision (benefit) | $ 2,644,115 | $ 851,968 |
8. Related Parties (Details)
8. Related Parties (Details) | Feb. 22, 2010USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($)shares |
8. Related Parties (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 0 | 51,000 | |
Repayments of Related Party Debt | $ 25,000 | $ 225,000 | |
Notes Payable, Related Parties, Noncurrent | 0 | 25,000 | |
Interest Expense, Related Party | 18,736 | 42,996 | |
Immediate Family Member of Management or Principal Owner [Member] | |||
8. Related Parties (Details) [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 154,302 | 107,980 | |
Subordinated Debt [Member] | Executive Officers and Directors [Member] | |||
8. Related Parties (Details) [Line Items] | |||
Proceeds from Related Party Debt | $ 250,000 | ||
Number of Related Parties | 2 | ||
Repayments of Related Party Debt | 225,000 | ||
Notes Payable, Related Parties, Noncurrent | 25,000 | ||
Interest Expense, Related Party | 18,736 | 42,966 | |
Interest Payable | $ 45,586 | $ 107,237 | |
Subordinated Debt [Member] | Executive Officer [Member] | |||
8. Related Parties (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 125,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 5,000 | ||
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares | $ 8 | ||
Debt Instrument, Maturity Date | Apr. 1, 2011 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Debt Instrument, Interest Rate Terms | payable on a monthly basis within 14 days of the end of each month | ||
Subordinated Debt [Member] | Director [Member] | |||
8. Related Parties (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 125,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 5,000 | ||
Debt Instrument, Maturity Date | Apr. 1, 2011 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Debt Instrument, Interest Rate Terms | payable on a monthly basis within 14 days of the end of each month |
9. Long-Term Debt (Details)
9. Long-Term Debt (Details) - USD ($) | Nov. 13, 2014 | Jul. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
9. Long-Term Debt (Details) [Line Items] | ||||||
Repayments of Long-term Debt | $ 428,700 | $ 391,628 | ||||
Interest Paid | 228,358 | 59,100 | ||||
Long-term Debt | 2,124 | |||||
Long-term Debt, Current Maturities | 291,991 | 418,255 | ||||
Notes Payable to Banks [Member] | Note to Bank #1 [Member] | ||||||
9. Long-Term Debt (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 1,200,000 | |||||
Debt Instrument, Term | 3 years | |||||
Debt Instrument, Maturity Date | Nov. 13, 2017 | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||
Debt Instrument, Periodic Payment | $ 36,551 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Long-term Debt | 285,810 | 693,407 | ||||
Amortization of Deferred Charges | 5,429 | 5,429 | ||||
Unamortized Debt Issuance Expense | 3,363 | 8,792 | ||||
Notes Payable to Banks [Member] | Note to Bank #2 [Member] | ||||||
9. Long-Term Debt (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 18,000 | |||||
Debt Instrument, Term | 3 years | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||
Debt Instrument, Periodic Payment | $ 536 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Long-term Debt, Current Maturities | 285,810 | |||||
Debt Instrument, Collateral | collateralized by substantially all of the assets of the Company | |||||
Notes Payable | $ 8,305 | 14,211 | ||||
Loans Payable [Member] | ||||||
9. Long-Term Debt (Details) [Line Items] | ||||||
Repayments of Long-term Debt | $ 1,153,109 | |||||
Interest Paid | $ 4,467 | |||||
Notes Payable, Other Payables [Member] | Vehicles [Member] | ||||||
9. Long-Term Debt (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 23,712 | |||||
Debt Instrument, Term | 5 years | |||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||||
Debt Instrument, Periodic Payment | $ 492 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.79% | |||||
Loans Payable | $ 15,197 |
9. Long-Term
9. Long-Term Debt (Details) - Schedule of Maturities of Long-term Debt | Mar. 31, 2017USD ($) |
Schedule of Maturities of Long-term Debt [Abstract] | |
2,018 | $ 291,991 |
2,019 | 2,124 |
2,021 | 0 |
2,022 | 0 |
Total Principal | 294,115 |
Less: Current Portion | (291,991) |
Total Long-Term Debt | $ 2,124 |
10. Line of Credit (Details)
10. Line of Credit (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
10. Line of Credit (Details) [Line Items] | ||||
Proceeds from Lines of Credit | $ 200,000 | $ 200,000 | $ 0 | |
Long-term Line of Credit | 200,000 | $ 200,000 | ||
Line of Credit [Member] | ||||
10. Line of Credit (Details) [Line Items] | ||||
Line of Credit Facility, Expiration Date | Mar. 31, 2018 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | ||
Line of Credit Facility, Interest Rate at Period End | 4.732% | 4.732% | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 800,000 | $ 800,000 | ||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
10. Line of Credit (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |||
Subsequent Event [Member] | ||||
10. Line of Credit (Details) [Line Items] | ||||
Proceeds from Lines of Credit | $ 200,000 |
11. Commitments (Details)
11. Commitments (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease Expiration Date | Jul. 31, 2016 | |
Description of Lessee Leasing Arrangements, Operating Leases | The lease is for a five year period, beginning August 1, 2011, with a five year option in a one-story facility. In June 2016, the Company extended the lease term for another five years until August 2021. | |
Lessee, Operating Lease, Term of Contract | 5 years | |
Operating Leases, Rent Expense | $ 357,000 | $ 358,000 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 25,698 | $ 27,916 |
11. Commitment
11. Commitments (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Mar. 31, 2017USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2,018 | $ 322,201 |
2,019 | 307,206 |
2,020 | 306,153 |
2,021 | 306,153 |
2,022 | 127,564 |
$ 1,369,277 |
12. Capitalized Lease Obligat62
12. Capitalized Lease Obligations (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
12. Capitalized Lease Obligations (Details) [Line Items] | ||
Capital Lease Obligations Incurred | $ 0 | $ 26,194 |
Assets Held under Capital Leases [Member] | ||
12. Capitalized Lease Obligations (Details) [Line Items] | ||
Property, Plant and Equipment, Other, Net | 20,519 | 51,230 |
Property, Plant and Equipment, Other, Accumulated Depreciation | $ 616,670 | $ 589,959 |
Capital Lease Obligations [Member] | Minimum [Member] | ||
12. Capitalized Lease Obligations (Details) [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |
Capital Lease Obligations [Member] | Maximum [Member] | ||
12. Capitalized Lease Obligations (Details) [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 14.00% |
12. Capitalize
12. Capitalized Lease Obligations (Details) - Schedule of Future Minimum Lease Payments for Capital Leases - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Schedule of Future Minimum Lease Payments for Capital Leases [Abstract] | ||
2,018 | $ 7,864 | |
2,019 | 7,864 | |
2,020 | 7,209 | |
2,021 | 0 | |
2,022 | 0 | |
Total minimum lease payments | 22,937 | |
Less amounts representing interest | (2,909) | |
Present value of net minimum lease payments | 20,028 | |
Less current portion | (6,268) | $ (10,232) |
Long-term capital lease obligation | $ 13,760 | $ 20,524 |
13. Significant Customer Conc64
13. Significant Customer Concentrations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 4,090,539 | $ 4,236,519 | $ 5,076,029 | $ 5,342,369 | $ 6,169,651 | $ 5,970,865 | $ 6,818,390 | $ 5,845,919 | $ 18,745,456 | $ 24,804,825 |
Sales Revenue, Goods, Net [Member] | Government Contracts Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 64.00% | 79.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Credit Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 10.30% | |||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | U.S. Distributor [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 24.00% | 21.00% | ||||||||
Sales Revenue, Goods, Net [Member] | Foreign Customers [Member] | Customer Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 1,782,646 | $ 1,900,724 | ||||||||
Accounts Receivable [Member] | U.S. Government [Member] | Credit Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 42.00% | 37.00% | ||||||||
Accounts Receivable [Member] | Customer A [Member] | Credit Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 16.60% | 27.00% | ||||||||
Accounts Receivable [Member] | Customer B [Member] | Credit Concentration Risk [Member] | ||||||||||
13. Significant Customer Concentrations (Details) [Line Items] | ||||||||||
Concentration Risk, Percentage | 10.00% |
13. Significan
13. Significant Customer Concentrations (Details) - Schedules of Concentration of Risk, by Risk Factor - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Concentration Risk [Line Items] | ||||||||||
Net sales | $ 4,090,539 | $ 4,236,519 | $ 5,076,029 | $ 5,342,369 | $ 6,169,651 | $ 5,970,865 | $ 6,818,390 | $ 5,845,919 | $ 18,745,456 | $ 24,804,825 |
Sales Revenue, Goods, Net [Member] | Domestic Customers [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Net sales | 16,962,810 | 22,904,101 | ||||||||
Sales Revenue, Goods, Net [Member] | Foreign Customers [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Net sales | $ 1,782,646 | $ 1,900,724 |
14. Stock Option Plans (Details
14. Stock Option Plans (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2006 | Mar. 31, 2017 | Mar. 31, 2016 | |
14. Stock Option Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation | $ 32,714 | $ 32,277 | |
2006 Stock Option Plan [Member] | |||
14. Stock Option Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||
Share-based Compensation by Share-based Payment Award, Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant. Options, for the most part, are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 250,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 60,819 | $ 95,792 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year |
14. Stock Opti
14. Stock Option Plans (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions - 2006 Stock Option Plan [Member] | 12 Months Ended |
Mar. 31, 2016 | |
14. Stock Option Plans (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items] | |
Dividend Yield | 0.00% |
Risk-free Interest rate | 1.39% |
Volatility | 44.54% |
Life | 5 years |
14. Stock Op68
14. Stock Option Plans (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | |||
Options Outstanding, Number of Options | 79,000 | 85,000 | 71,500 |
Options Outstanding, Average Exercise Price | $ 5.26 | $ 5.33 | $ 6.06 |
Options Outstanding, Average Remaining Contractual Term | 2 years 6 months | 3 years 146 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 28,900 | $ 9,000 | |
Vested Options: | |||
Vested Options, Number of Options | 33,800 | 26,000 | |
Vested Options, Average Exercise Price | $ 4.59 | $ 4.38 | |
Vested Options, Average Remaining Contractual Term | 1 year 328 days | 2 years 36 days | |
Vested Options, Aggregate Intrinsic Value | $ 28,460 | $ 9,000 | |
Options Granted, Number of Options | 0 | 51,000 | |
Options Granted, Average Exercise Price | $ 0 | $ 5.85 | |
Options Exercised, Number of Options | 0 | 0 | |
Options Exercised, Average Exercise Price | $ 0 | $ 0 | |
Options Canceled/Forfeited, Number of Options | (6,000) | (37,500) | |
Options Canceled/Forfeited, Average Exercise Price | $ 6.34 | $ 7.43 |
14. Stock Op69
14. Stock Option Plans (Details) - Schedule of Nonvested Share Activity - $ / shares | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Nonvested Share Activity [Abstract] | ||
Non-vested at April 1, 2016 | 59,000 | |
Non-vested at April 1, 2016 | $ 5.75 | |
Granted | 0 | 51,000 |
Granted | $ 0 | |
Vested | (11,800) | |
Vested | $ 5.73 | |
Forfeited | (1,600) | |
Forfeited | $ 5.85 | |
Non-vested at March 31, 2017 | 45,600 | 59,000 |
Non-vested at March 31, 2017 | $ 5.76 | $ 5.75 |
15. Net Dilute
15. Net Diluted Income (Loss) per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Basic net (loss) income per share computation: | ||||||||||
Net income(loss) | $ (5,583,316) | $ 141,513 | $ 272,055 | $ 410,309 | $ 299,035 | $ 226,586 | $ 199,466 | $ 279,066 | $ (4,759,439) | $ 1,004,153 |
Less: Change in fair value of warrants | 103,000 | 0 | ||||||||
Diluted income (loss) | $ (4,862,439) | $ 1,004,153 | ||||||||
Weighted-average common shares outstanding | 3,255,887 | 3,256,887 | ||||||||
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants | 10,955 | 4,266 | ||||||||
Total adjusted weighted-average shares | 3,266,842 | 3,261,153 | ||||||||
Diluted net income (loss) per share | $ (1.72) | $ 0.03 | $ 0.07 | $ 0.10 | $ 0.09 | $ 0.07 | $ 0.06 | $ 0.02 | $ (1.49) | $ 0.31 |
Basic net income (loss) per share | $ (1.71) | $ 0.04 | $ 0.08 | $ 0.13 | $ 0.09 | $ 0.07 | $ 0.06 | $ 0.09 | $ (1.46) | $ 0.31 |
15. Net Dilu71
15. Net Diluted Income (Loss) per Share (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 61,000 | 351,920 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 61,000 | 65,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 0 | 286,920 |
16. Segment In
16. Segment Information (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||
Net sales | $ 4,090,539 | $ 4,236,519 | $ 5,076,029 | $ 5,342,369 | $ 6,169,651 | $ 5,970,865 | $ 6,818,390 | $ 5,845,919 | $ 18,745,456 | $ 24,804,825 |
Cost of Sales | 12,061,341 | 16,819,235 | ||||||||
Gross Margin | 1,347,623 | 1,634,251 | 1,825,588 | 1,876,653 | 1,892,072 | 2,034,757 | 2,243,466 | 1,815,295 | 6,684,115 | 7,985,590 |
Engineering, research, and Development | 2,430,322 | 2,038,126 | ||||||||
Selling, general, and administrative | 2,581,085 | 2,919,165 | ||||||||
Litigation expenses | 1,244,639 | 448,379 | ||||||||
Legal damages | 2,800,000 | 0 | ||||||||
Amortization of deferred financing costs | 5,429 | 5,429 | ||||||||
Change in fair value of common stock warrant | (321,203) | 617,241 | ||||||||
Interest expense, net | 59,167 | 101,129 | ||||||||
Total expenses | 8,799,439 | 6,129,469 | ||||||||
Income (loss) before income taxes | (3,253,087) | $ 177,895 | $ 381,815 | $ 578,053 | 538,187 | $ 453,537 | $ 370,153 | $ 494,244 | (2,115,324) | 1,856,121 |
Segment Assets | 6,435,948 | 10,108,119 | 6,435,948 | 10,108,119 | ||||||
Avionics Government [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 16,531,913 | 23,011,016 | ||||||||
Cost of Sales | 10,363,318 | 15,446,232 | ||||||||
Gross Margin | 6,168,595 | 7,564,784 | ||||||||
Segment Assets | 4,264,168 | 5,644,551 | 4,264,168 | 5,644,551 | ||||||
Avionics Commercial [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 2,213,543 | 1,793,809 | ||||||||
Cost of Sales | 1,698,023 | 1,373,003 | ||||||||
Gross Margin | 515,520 | 420,806 | ||||||||
Segment Assets | 1,500,393 | 488,842 | 1,500,393 | 488,842 | ||||||
Avionics Total [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 18,745,456 | 24,804,825 | ||||||||
Cost of Sales | 12,061,341 | 16,819,235 | ||||||||
Gross Margin | 6,684,115 | 7,985,590 | ||||||||
Engineering, research, and Development | 2,430,322 | 2,038,126 | ||||||||
Selling, general, and administrative | 1,260,388 | 1,218,327 | ||||||||
Amortization of deferred financing costs | 0 | 0 | ||||||||
Change in fair value of common stock warrant | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | ||||||||
Total expenses | 3,690,710 | 3,256,453 | ||||||||
Income (loss) before income taxes | 2,993,405 | 4,729,137 | ||||||||
Segment Assets | 5,764,561 | 6,133,393 | 5,764,561 | 6,133,393 | ||||||
Corporate Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 0 | 0 | ||||||||
Cost of Sales | 0 | 0 | ||||||||
Gross Margin | 0 | 0 | ||||||||
Engineering, research, and Development | 0 | 0 | ||||||||
Selling, general, and administrative | 1,320,697 | 1,700,838 | ||||||||
Litigation expenses | 1,244,639 | 448,379 | ||||||||
Legal damages | 2,800,000 | |||||||||
Amortization of deferred financing costs | 5,429 | 5,429 | ||||||||
Change in fair value of common stock warrant | (321,203) | 617,241 | ||||||||
Interest expense, net | 59,167 | 101,129 | ||||||||
Total expenses | 5,108,729 | 2,873,016 | ||||||||
Income (loss) before income taxes | (5,108,729) | (2,873,016) | ||||||||
Segment Assets | $ 671,387 | $ 3,974,726 | $ 671,387 | $ 3,974,726 |
17. Quarterly R
17. Quarterly Results of Operations (Unaudited) (Details) - Schedule of Quarterly Financial Information - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Quarterly Financial Information [Abstract] | ||||||||||
Net sales | $ 4,090,539 | $ 4,236,519 | $ 5,076,029 | $ 5,342,369 | $ 6,169,651 | $ 5,970,865 | $ 6,818,390 | $ 5,845,919 | $ 18,745,456 | $ 24,804,825 |
Gross margin | 1,347,623 | 1,634,251 | 1,825,588 | 1,876,653 | 1,892,072 | 2,034,757 | 2,243,466 | 1,815,295 | 6,684,115 | 7,985,590 |
Income (loss) before taxes | (3,253,087) | 177,895 | 381,815 | 578,053 | 538,187 | 453,537 | 370,153 | 494,244 | (2,115,324) | 1,856,121 |
Net income (loss) | $ (5,583,316) | $ 141,513 | $ 272,055 | $ 410,309 | $ 299,035 | $ 226,586 | $ 199,466 | $ 279,066 | $ (4,759,439) | $ 1,004,153 |
Basic income (loss) per share (in Dollars per share) | $ (1.71) | $ 0.04 | $ 0.08 | $ 0.13 | $ 0.09 | $ 0.07 | $ 0.06 | $ 0.09 | $ (1.46) | $ 0.31 |
Diluted income (loss) per share (in Dollars per share) | $ (1.72) | $ 0.03 | $ 0.07 | $ 0.10 | $ 0.09 | $ 0.07 | $ 0.06 | $ 0.02 | $ (1.49) | $ 0.31 |
18. Fair Value Measurements (De
18. Fair Value Measurements (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | |
18. Fair Value Measurements (Details) [Line Items] | |||
Class of Warrant or Right, Exercised (in Shares) | 236,920 | ||
Class of Warrant or Rights, Fair Value | $ 720,000 | ||
Warrants and Rights Outstanding | $ 50,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 3.35 | ||
Derivative Liability, Noncurrent | $ 1,136,203 | $ 95,000 | |
Warrant [Member] | |||
18. Fair Value Measurements (Details) [Line Items] | |||
Derivative Liability, Noncurrent | $ 198,000 | $ 95,000 |
18. Fair Value
18. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
18. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Warrant liability | $ 95,000 | $ 1,136,203 |
Total Liabilities | 95,000 | 1,136,203 |
Fair Value, Inputs, Level 1 [Member] | ||
18. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
18. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
18. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Warrant liability | 95,000 | 1,136,203 |
Total Liabilities | $ 95,000 | $ 1,136,203 |
18. Fair Val76
18. Fair Value Measurements (Details) - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, at beginning of period | $ 1,136,203 | |
Fair value, at end of period | 95,000 | $ 1,136,203 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, at beginning of period | 1,136,203 | 518,962 |
Fair value, at end of period | 1,136,203 | |
New purchases and issuances | 0 | 0 |
Sales and settlements | (720,000) | 0 |
Change in fair value | $ (321,203) | $ 617,241 |
18. Fair Val77
18. Fair Value Measurements (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - $ / shares | Aug. 12, 2013 | Jul. 12, 2013 | Feb. 14, 2013 | Nov. 20, 2012 | Jul. 26, 2012 | Sep. 10, 2010 | May 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Class of Warrant or Right [Line Items] | |||||||||
Number of Warrants | 236,920 | ||||||||
Exercise Price | $ 3.35 | ||||||||
Warrant [Member] | Warrant Issued 09-10-2010 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | |||||||
Exercise Price | $ 6.70 | $ 6.70 | |||||||
Warrant [Member] | Warrant Issued 09-10-2010 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Sep. 10, 2010 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 136,920 | ||||||||
Exercise Price | $ 6.70 | ||||||||
Warrant [Member] | Warrant Issued 07-26-2012 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Exercise Price | $ 3.35 | $ 3.35 | $ 3.35 | ||||||
Warrant [Member] | Warrant Issued 07-26-2012 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Jul. 26, 2012 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 20,000 | ||||||||
Exercise Price | $ 3.35 | ||||||||
Warrant [Member] | Warrant Issued 11-20-2012 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | |||||||
Exercise Price | $ 3.56 | $ 3.56 | |||||||
Warrant [Member] | Warrant Issued 11-20-2012 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Nov. 20, 2012 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 20,000 | ||||||||
Exercise Price | $ 3.56 | ||||||||
Warrant [Member] | Warrant Issued 02-14-2013 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | |||||||
Exercise Price | $ 3.58 | $ 3.58 | |||||||
Warrant [Member] | Warrant Issued 02-14-2013 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Feb. 14, 2013 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 20,000 | ||||||||
Exercise Price | $ 3.58 | ||||||||
Warrant [Member] | Warrant Issued 07-12-2013 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | |||||||
Exercise Price | $ 3.33 | $ 3.33 | |||||||
Warrant [Member] | Warrant Issued 07-12-2013 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Jul. 12, 2013 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 20,000 | ||||||||
Exercise Price | $ 3.33 | ||||||||
Warrant [Member] | Warrant Issued 08-12-2013 [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | |||||||
Exercise Price | $ 3.69 | $ 3.69 | |||||||
Warrant [Member] | Warrant Issued 08-12-2013 [Member] | Warrants Held by BCA [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Date of Warrant | Aug. 12, 2013 | ||||||||
Expiration Date | Sep. 10, 2019 | ||||||||
Number of Warrants | 20,000 | ||||||||
Exercise Price | $ 3.69 |
18. Fair Val78
18. Fair Value Measurements (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - USD ($) | Aug. 12, 2013 | Jul. 12, 2013 | Feb. 14, 2013 | Nov. 20, 2012 | Jul. 26, 2012 | Sep. 10, 2010 | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Exercise Price | $ 3.35 | |||||||
Warrant [Member] | Warrant Issued 09-10-2010 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 136,920 | 136,920 | ||||||
Exercise Price | $ 6.70 | $ 6.70 | ||||||
Fair Market Value Per Share | $ 6.70 | $ 4.31 | ||||||
Expected Volatility | 28.51% | |||||||
Remaining Life in Years | 9 years | 3 years 164 days | ||||||
Risk Free Interest Rate | 2.81% | |||||||
Warrant Liability (in Dollars) | $ 267,848 | $ 542,203 | ||||||
Put Option Value (in Dollars) | 542,203 | |||||||
Market Price Option (in Dollars) | ||||||||
Warrant [Member] | Warrant Issued 09-10-2010 #2 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2015 | |||||||
Number of Warrants (in Shares) | 10,416 | |||||||
Exercise Price | $ 6.70 | |||||||
Fair Market Value Per Share | $ 6.70 | |||||||
Expected Volatility | 28.51% | |||||||
Remaining Life in Years | 5 years | |||||||
Risk Free Interest Rate | 1.59% | |||||||
Warrant Liability (in Dollars) | $ 13,808 | |||||||
Warrant [Member] | Warrant Issued 07-26-2012 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | Sep. 10, 2019 | |||||
Number of Warrants (in Shares) | 50,000 | 50,000 | 50,000 | |||||
Exercise Price | $ 3.35 | $ 3.35 | $ 3.35 | |||||
Fair Market Value Per Share | $ 3.90 | $ 5.25 | $ 4.31 | |||||
Expected Volatility | 42.04% | |||||||
Remaining Life in Years | 7 years | 2 years 164 days | 3 years 164 days | |||||
Risk Free Interest Rate | 0.94% | |||||||
Warrant Liability (in Dollars) | $ 66,193 | $ 95,000 | $ 198,000 | |||||
Put Option Value (in Dollars) | 198,000 | |||||||
Market Price Option (in Dollars) | $ 95,000 | $ 48,000 | ||||||
Warrant [Member] | Warrant Issued 07-26-2012 #2 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 20,000 | 20,000 | ||||||
Exercise Price | $ 3.35 | $ 3.35 | ||||||
Fair Market Value Per Share | $ 3.90 | $ 4.31 | ||||||
Expected Volatility | 42.04% | |||||||
Remaining Life in Years | 7 years | 3 years 164 days | ||||||
Risk Free Interest Rate | 0.94% | |||||||
Warrant Liability (in Dollars) | $ 26,477 | $ 79,200 | ||||||
Put Option Value (in Dollars) | 79,200 | |||||||
Market Price Option (in Dollars) | $ 19,200 | |||||||
Warrant [Member] | Warrant Issued 11-20-2012 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 20,000 | 20,000 | ||||||
Exercise Price | $ 3.56 | $ 3.56 | ||||||
Fair Market Value Per Share | $ 3.50 | $ 4.31 | ||||||
Expected Volatility | 42.45% | |||||||
Remaining Life in Years | 6 years 302 days | 3 years 164 days | ||||||
Risk Free Interest Rate | 1.09% | |||||||
Warrant Liability (in Dollars) | $ 21,441 | $ 79,200 | ||||||
Put Option Value (in Dollars) | 79,200 | |||||||
Market Price Option (in Dollars) | $ 15,000 | |||||||
Warrant [Member] | Warrant Issued 02-14-2013 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 20,000 | 20,000 | ||||||
Exercise Price | $ 3.58 | $ 3.58 | ||||||
Fair Market Value Per Share | $ 3.80 | $ 4.31 | ||||||
Expected Volatility | 41.72% | |||||||
Remaining Life in Years | 6 years 211 days | 3 years 164 days | ||||||
Risk Free Interest Rate | 1.43% | |||||||
Warrant Liability (in Dollars) | $ 23,714 | $ 79,200 | ||||||
Put Option Value (in Dollars) | 79,200 | |||||||
Market Price Option (in Dollars) | $ 12,800 | |||||||
Warrant [Member] | Warrant Issued 07-12-2013 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 20,000 | 20,000 | ||||||
Exercise Price | $ 3.33 | $ 3.33 | ||||||
Fair Market Value Per Share | $ 3.32 | $ 4.31 | ||||||
Expected Volatility | 40.26% | |||||||
Remaining Life in Years | 6 years 62 days | 3 years 164 days | ||||||
Risk Free Interest Rate | 2.00% | |||||||
Warrant Liability (in Dollars) | $ 19,523 | $ 79,200 | ||||||
Put Option Value (in Dollars) | 79,200 | |||||||
Market Price Option (in Dollars) | $ 19,600 | |||||||
Warrant [Member] | Warrant Issued 08-12-2013 [Member] | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||||
Expiration Date | Sep. 10, 2019 | Sep. 10, 2019 | ||||||
Number of Warrants (in Shares) | 20,000 | 20,000 | ||||||
Exercise Price | $ 3.69 | $ 3.69 | ||||||
Fair Market Value Per Share | $ 3.69 | $ 4.31 | ||||||
Expected Volatility | 40.20% | |||||||
Remaining Life in Years | 6 years 29 days | 3 years 164 days | ||||||
Risk Free Interest Rate | 2.01% | |||||||
Warrant Liability (in Dollars) | $ 21,587 | $ 79,200 | ||||||
Put Option Value (in Dollars) | 79,200 | |||||||
Market Price Option (in Dollars) | $ 12,400 |
19. Litigation (Details)
19. Litigation (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
Aeroflex [Member] | ||
19. Litigation (Details) [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $ 2.8 | |
Loss Contingency Accrual | $ 2.8 | $ 2.8 |
Loss Contingency, Damages Sought | Depending on the outcome of these hearings, both sides have the ability to appeal the decision or the judge could vacate the jury decision and schedule a new trial. If the judge enters a final damages award, both sides have approximately 30 days to file an appeal or a request a new trial. If the Company files the appeal on its own, it will be required to post a bond in the equal to the lesser of: (1) the final damages award; or (2) $1 million plus 25% of the amount of the verdict in excess of $1 million, which would currently total $1.45 million. | |
Business Opportunity [Member] | Aeroflex [Member] | ||
19. Litigation (Details) [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $ 1.3 | |
Non-Disclosure Agreements [Member] | Aeroflex [Member] | ||
19. Litigation (Details) [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $ 1.5 | |
Maximum [Member] | ||
19. Litigation (Details) [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 5 |