Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | TEL-INSTRUMENT ELECTRONICS CORP. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 3,255,887 | |
Amendment Flag | false | |
Entity Central Index Key | 0000096885 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-31990 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1441806 | |
Entity Address, Address Line One | One Branca Road | |
Entity Address, City or Town | East Rutherford | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07073 | |
City Area Code | 201 | |
Local Phone Number | 933-1600 | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash | $ 356,942 | $ 3,839,398 |
Accounts receivable, net | 941,826 | 900,881 |
Inventories, net | 4,102,786 | 3,586,065 |
Restricted cash to support appeal bond | 0 | 2,011,083 |
Prepaid expenses and other current assets | 233,670 | 817,625 |
Total current assets | 5,635,224 | 11,155,052 |
Equipment and leasehold improvements, net | 93,194 | 85,167 |
Operating lease right-of-use assets | 1,426,491 | 1,526,551 |
Deferred tax asset, net | 2,720,638 | 2,627,935 |
Other long-term assets | 35,109 | 35,109 |
Total assets | 9,910,656 | 15,429,814 |
Current liabilities: | ||
Line of credit | 690,000 | 690,000 |
Operating lease liabilities – current portion | 206,060 | 202,087 |
Accounts payable | 607,564 | 322,582 |
Deferred revenues - current portion | 132,345 | 123,117 |
Accrued expenses ‐vacation pay, payroll and payroll withholdings | 307,757 | 240,034 |
Accrued legal damages | 0 | 6,360,698 |
Accrued expenses - other | 186,553 | 157,896 |
Total current liabilities | 2,130,279 | 8,096,414 |
Operating lease liabilities – long-term | 1,220,431 | 1,324,464 |
Other long term liabilities | 49,459 | 53,416 |
Deferred revenues – long-term | 142,497 | 173,883 |
Total liabilities | 3,542,666 | 9,648,177 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
Common stock, 7,000,000 shares authorized, par value $0.10 per share, 3,255,887 and 3,255,887 shares issued and outstanding, respectively | 325,586 | 325,586 |
Additional paid-in capital | 6,564,040 | 6,721,535 |
Accumulated deficit | (6,488,710) | (6,348,849) |
Total stockholders’ equity | 6,367,990 | 5,781,637 |
Total liabilities and stockholders’ equity | 9,910,656 | 15,429,814 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | 3,995,998 | 3,875,998 |
Series B Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | 1,648,701 | 1,207,367 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | $ 322,375 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
Common stock, par value (in Dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares issued | 3,255,887 | 3,255,887 |
Common stock, shares outstanding | 3,255,887 | 3,255,887 |
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred stock, shares outstanding | 500,000 | 500,000 |
Preferred stock, Cumulative Series Convertible Preferred | 8% | 8% |
Preferred stock, shares authorized | 500,000 | 500,000 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock, shares issued | 233,224 | 166,667 |
Preferred stock, shares outstanding | 233,224 | 166,667 |
Preferred stock, Cumulative Series Convertible Preferred | 8% | 8% |
Preferred stock, shares authorized | 302,000 | 302,000 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock, shares issued | 53,500 | 0 |
Preferred stock, shares outstanding | 53,500 | 0 |
Preferred stock, Cumulative Series Convertible Preferred | 8% | 8% |
Preferred stock, shares authorized | 166,667 | 166,667 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,565,094 | $ 2,012,758 | $ 4,432,024 | $ 4,266,515 |
Cost of sales | 1,205,610 | 1,459,286 | 2,777,990 | 2,877,858 |
Gross margin | 359,484 | 553,472 | 1,654,034 | 1,388,657 |
Operating expenses: | ||||
Selling, general and administrative | 521,070 | 479,253 | 1,105,928 | 1,036,186 |
Engineering, research, and development | 317,715 | 609,636 | 607,155 | 1,131,739 |
Total operating expenses | 838,785 | 1,088,889 | 1,713,083 | 2,167,925 |
Loss from operations | (479,301) | (535,417) | (59,049) | (779,268) |
Other income (expense): | ||||
Interest income | 12,320 | 2,137 | 51,609 | 3,123 |
Interest expense – judgement | (128,290) | (71,016) | (198,535) | (122,936) |
Interest expense – other | (13,133) | 0 | (26,587) | |
Total other net (expense) income | (129,103) | (68,879) | (173,513) | (119,813) |
Loss before income taxes | (608,404) | (604,296) | (232,562) | (899,081) |
Income tax benefit | (173,251) | (126,928) | (92,701) | (188,844) |
Net loss | (435,153) | (477,368) | (139,861) | (710,237) |
Preferred dividends | (82,708) | (80,000) | (162,708) | (160,000) |
Net loss attributable to common shareholders | $ (517,861) | $ (557,368) | $ (302,569) | $ (870,237) |
Basic net loss per common share (in Dollars per share) | $ (0.16) | $ (0.17) | $ (0.09) | $ (0.27) |
Diluted net loss per common share (in Dollars per share) | $ (0.16) | $ (0.17) | $ (0.09) | $ (0.27) |
Weighted average shares outstanding: | ||||
Basic (in Shares) | 3,255,887 | 3,255,887 | 3,255,887 | 3,255,887 |
Diluted (in Shares) | 3,255,887 | 3,255,887 | 3,255,887 | 3,255,887 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Series A Preferred Stock [Member] Preferred Stock [Member] | Series B Preferred Stock [Member] Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] Preferred Stock [Member] | Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balances at at Mar. 31, 2022 | $ 3,695,998 | $ 1,147,367 | $ 325,586 | $ 7,018,353 | $ (5,960,304) | $ 6,227,000 | |||
Balances at (in Shares) at Mar. 31, 2022 | 500,000 | 166,667 | 3,255,887 | ||||||
8% Dividends on Preferred Stock | $ 120,000 | $ 40,000 | (160,000) | 160,000 | |||||
Dividend Payments | (60,000) | (20,000) | (80,000) | ||||||
Stock-based compensation | 12,469 | 12,469 | |||||||
Net loss | (710,237) | (710,237) | |||||||
Balances at at Sep. 30, 2022 | $ 3,755,998 | $ 1,167,367 | $ 325,586 | 6,870,822 | (6,670,541) | 5,449,232 | |||
Balances at (in Shares) at Sep. 30, 2022 | 500,000 | 166,667 | 3,255,887 | ||||||
Balances at at Jun. 30, 2022 | $ 3,695,998 | $ 1,147,367 | $ 325,586 | 6,944,588 | (6,193,173) | 5,920,366 | |||
Balances at (in Shares) at Jun. 30, 2022 | 500,000 | 166,667 | 3,255,887 | ||||||
8% Dividends on Preferred Stock | $ 60,000 | $ 20,000 | (80,000) | 80,000 | |||||
Stock-based compensation | 6,234 | 6,234 | |||||||
Net loss | (477,368) | (477,368) | |||||||
Balances at at Sep. 30, 2022 | $ 3,755,998 | $ 1,167,367 | $ 325,586 | 6,870,822 | (6,670,541) | 5,449,232 | |||
Balances at (in Shares) at Sep. 30, 2022 | 500,000 | 166,667 | 3,255,887 | ||||||
Balances at at Mar. 31, 2023 | $ 3,875,998 | $ 1,207,367 | $ 325,586 | 6,721,535 | (6,348,849) | 5,781,637 | |||
Balances at (in Shares) at Mar. 31, 2023 | 500,000 | 166,667 | 3,255,887 | ||||||
8% Dividends on Preferred Stock | $ 120,000 | $ 41,334 | $ 1,334 | $ 1,375 | $ 1,375 | (162,709) | 162,708 | ||
Dividend Payments | 0 | ||||||||
Issuance of Series B and Series C Preferred Stock | $ 400,000 | $ 321,000 | 721,000 | ||||||
Issuance of Series B and Series C Preferred Stock (in Shares) | 66,667 | 53,500 | 53,500 | ||||||
Stock-based compensation | 5,214 | 5,214 | |||||||
Net loss | (139,861) | (139,861) | |||||||
Balances at at Sep. 30, 2023 | $ 3,995,998 | $ 1,648,701 | $ 322,375 | $ 325,586 | 6,564,040 | (6,488,710) | 6,367,990 | ||
Balances at (in Shares) at Sep. 30, 2023 | 500,000 | 233,334 | 53,500 | 3,255,887 | |||||
Balances at at Jun. 30, 2023 | $ 3,935,998 | $ 1,227,367 | $ 325,586 | 6,644,804 | (6,053,557) | 6,080,198 | |||
Balances at (in Shares) at Jun. 30, 2023 | 500,000 | 166,667 | 3,255,887 | ||||||
8% Dividends on Preferred Stock | $ 60,000 | $ 21,334 | $ 1,375 | (82,709) | 82,708 | ||||
Issuance of Series B and Series C Preferred Stock | $ 400,000 | $ 321,000 | 721,000 | ||||||
Issuance of Series B and Series C Preferred Stock (in Shares) | 66,667 | 53,500 | |||||||
Stock-based compensation | 1,945 | 1,945 | |||||||
Net loss | (435,153) | (435,153) | |||||||
Balances at at Sep. 30, 2023 | $ 3,995,998 | $ 1,648,701 | $ 322,375 | $ 325,586 | $ 6,564,040 | $ (6,488,710) | $ 6,367,990 | ||
Balances at (in Shares) at Sep. 30, 2023 | 500,000 | 233,334 | 53,500 | 3,255,887 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Additional Paid-in Capital [Member] | ||||
Dividends on Preferred Stock | 8% | 8% | 8% | 8% |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (139,861) | $ (710,237) |
Adjustments to reconcile net loss used in operating activities | ||
Deferred income taxes | (92,701) | (188,844) |
Depreciation and amortization | 24,325 | 30,910 |
Amortization of right of use assets | 100,060 | 96,239 |
Recovery of for inventory obsolescence | (5,132) | (13,068) |
Non-cash stock-based compensation | 5,214 | 12,469 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (40,945) | (386,983) |
Increase in inventories | (511,589) | (100,682) |
Decrease (increase) in prepaid expenses & other assets | 583,951 | (89,482) |
Increase in accounts payable | 313,639 | 83,181 |
Increase (decrease) in accrued payroll, vacation pay and payroll taxes | 67,723 | (117,190) |
Decrease in deferred revenues | (22,158) | (64,602) |
Decrease in operating lease liabilities | (100,060) | (96,239) |
Decrease in other long term liabilities | (3,955) | 0 |
(Decrease) increase in accrued legal damages | (6,360,698) | 122,936 |
Net cash used in operating activities | (6,182,187) | (1,421,592) |
Purchases of equipment | (32,352) | (11,732) |
Net cash used in investing activities | (32,352) | (11,732) |
Proceeds from issuance of Preferred Stock | 721,000 | 0 |
Payment of dividends | 0 | (80,000) |
Net cash provided (used in) financing activities | 721,000 | (80,000) |
Net decrease in cash and restricted cash | (5,493,539) | (1,513,324) |
5,850,481 | 6,960,740 | |
Supplemental cash flow information: | ||
Taxes paid | 0 | 0 |
Interest paid | 26,587 | 0 |
356,942 | 5,447,416 | |
Beginning of period | ||
Cash | 3,839,398 | 4,949,690 |
Restricted cash | 2,011,083 | 2,011,050 |
End of period | ||
Cash | 356,942 | 3,436,366 |
Restricted cash | $ 0 | $ 2,011,050 |
Business, Organization and Liqu
Business, Organization and Liquidity | 6 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | Note 1 Business, Organization and Liquidity Business and Organization Tel-Instrument Electronics Corp. (“Tel,” “TIC” 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 over the last two decades. The Company is publicly traded and was quoted on the Over-the-Counter Market Place (“OTCQB”) under the symbol “TIKK.” Liquidity On September 30, 2023, the Company had positive net working capital of $3,504,945, as compared to working capital of $3,058,638 at March 31, 2023. The Bank of America line of credit has been extended from July 30, 2023 maturity to December 31, 2023 maturity. As of September 30, 2023, the $690,000 line of credit was fully used. On September 30, 2023, the Company had $356,942 of cash on hand. The Company had a $6.5 million sales backlog on September 30, 2023. The Company had recorded total damages of $6,559,233 including interest of $1,659,233 as a result of the jury verdict associated with the Aeroflex litigation as well as the Court’s decision on punitive damages. A decision on the case was rendered and released on July 21, 2023, the Kansas Appeals Court rejected each of TIC’s appeal arguments, however there will be no impact on net worth, as these damages had already been fully accrued. TIC paid the full judgement amount of $6,559,233 on September 15, 2023. The Employee Retention Credit (ERC) is a refundable tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to December 31, 2021. Eligible employers can claim the ERC on an original or adjusted employment tax return for a period within those dates. The Company filed adjusted employment tax returns for quarters one and two of calendar year 2021, with a refund of $628,401 that was on June 1, 2023. Moving forward, we believe that our expected cash flows from operations and fulfillment of our $6.5 million open orders will be sufficient to operate in the normal course of business for at least the next 12 months from the issuance date of these unaudited condensed consolidated financial statements. Currently, the Company has no material future capital expenditure requirements. Impact of the COVID-19 Coronavirus In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 coronavirus has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the U.S. government imposed travel restrictions on travel between the United States, Europe, and certain other countries. The impact of this pandemic has been, and will likely continue to be, extensive in many aspects of society, which has resulted, and will likely continue to result, in significant disruptions to the global economy as well as businesses and capital markets around the world. On September 9, 2021, President Biden announced Executive Order 14042 (“Executive Order”) and related initiatives designed to lead the country out of the COVID-19 pandemic. The Executive Order includes policies that will require employees of contractors that do business with the federal government to be vaccinated. On September 24, 2021, The Safer Federal Workforce Task Force released COVID-19 vaccine guidance for Federal contractors and subcontractors. According to this guidance, covered employees must be fully vaccinated by December 8, 2021, or at the latest, by the first day of performance on a covered contract, absent the need for a disability or religious accommodation. In addition, covered contractors must follow the CDC’s mask and physical distance requirements for covered contractor employees and visitors. The Executive Order and the guidance apply to any prime contractor or subcontractor that is a party to a “contract or contract-like instrument” that includes a clause incorporating the requirements of the Executive Order. The new clause applied on or after October 15, 2021, to only new federal contracts, solicitations, contract extensions and renewals. On December 7, 2021, the federal court in Georgia issued a preliminary injunction temporarily halting the enforcement of EO 14042 (Ensuring Adequate COVID Safety Protocols for Federal Contractors) for all covered contracts nation-wide. New guidance from OMB also followed suit giving federal agencies input on how to go about non-enforcement provisions until legal challenges have been resolved. The updated guidance will remain applicable despite any change to new or existing court decisions. The new guidance does not impact the Safer Federal Workforce Taskforce Guidance. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 Summary of Significant Accounting Policies Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Tel-Instrument Electronics Corp. as of September 30, 2023, the results of operations, change in stockholders’ equity and statements of cash flow for the six months ended September 30, 2023 and September 30, 2022. These results are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include disclosures normally made in an Annual Report on Form 10-K. The March 31, 2023 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the unaudited condensed consolidated financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the United States Securities and Exchange Commission (the “SEC”) on June 15, 2023 (the “Annual Report”). Inventory Reserve Policy Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Inventories are reviewed for obsolescence and a reserve is recorded for inventory allowances 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. If actual conditions are less favorable than those we have projected, we may need to increase our reserves for excess and obsolete inventories. Any increases in our reserves will adversely impact our results of operations. Such reserves are not reduced until the product is sold. If we are able to sell such inventory any related reserves would be reversed in the period of sale. 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. Revenue Recognition Under Financial Accounting Standards Board (“FASB”) Topic 606, Revenue from Contacts with Customers The Company accounts for revenue recognition in accordance with ASC 606.The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The ASC 606 defines a five-step process to achieve the core principle and, in doing so, it is possible more judgement and estimates may be required within the revenue recognition process than are currently in use. The Company generates revenue from designing, manufacturing, and selling avionic tests and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. The Company also offers calibration and repair services for a wide range of airborne navigation and communication equipment. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each. Test Units/Sets The Company develops and manufactures unit sets to test navigation and communication equipment, such as ramp testers and bench testers for equipment installed in aircraft and ground radios. The Company recognizes revenue when the customer obtains control of the Company’s product based on the contractual shipping terms of the contract, which is usually at the time of shipment. Revenue on products is presented gross because the Company is primarily responsible for fulfilling the promise to provide the product, is responsible to ensure that the product is produced in accordance with the related supply agreement and bears the risk of loss while the inventory is in-transit. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines stand-alone selling prices based on the price at which the performance obligation is sold separately. If the stand-alone selling price is not observable through past transactions, the Company estimates the standalone selling price considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of September 30, 2023. Replacement Parts The Company offers replacement parts for test equipment, ramp testers, and bench testers. Similar to the sale of test units, the control of the product transfers at a point of time and therefore, revenue is recognized at the point in time when the obligation to the customer has been fulfilled. Extended Warranties The extended warranties sold by the Company provide a level of assurance beyond the coverage for defects that existed at the time of a sale or against certain types of covered damage with coverage terms ranging from 2 to 7 years. Amounts received for warranties are recorded as deferred revenue and recognized as revenue ratably over the respective term of the agreements. As of September 30, 2023, $229,814 is expected to be recognized from remaining performance obligations for extended warranties as compared to $296,400 at March 31, 2023. For the three and six months ended September 30, 2023, the Company recognized revenue of $32,580 and $66,586 respectively from amounts that were included in Deferred Revenue as compared to $23,862 and $47,403, respectively from amounts that were included in Deferred Revenue for the three months and six months ended September 30, 2022. The following table provides a summary of the changes in deferred revenues for the six months ended September 30, 2023: Deferred revenues at April 1, 2023 $ 296,400 Revenue recognized for the six months ended September 30, 2023 (66,586 ) Deferred revenues at September 30, 2023 $ 229,814 Other Deferred Revenues The Company sometimes receives payments in advance of shipment. These amounts are classified as other deferred revenues. For the periods ended September 30, 2023, and March 31, 2023, the Company has other deferred revenues of $45,028 and $600, respectively. Repair and Calibration Services The Company offers repair and calibration services for units that are returned for annual calibrations and/or for repairs after the warranty period has expired. The Company repairs and calibrates a wide range of airborne navigation and communication equipment. Revenue is recognized at the time the repaired or calibrated unit is shipped back to the customer, as it is at this time that the work is completed. Other The majority of the Company’s revenues are from contracts with the U.S. government, airlines, aircraft manufacturers, such as Boeing and Lockheed Martin, domestic distributors, international distributors for sales to military and commercial customers, and other commercial customers. The contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (“FAR”) which provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. Payment terms and conditions vary by contract, although terms include a requirement of payment within a range from 30 to 60 days, or in certain cases, up-front deposits. In circumstances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the Company's contracts do not include a significant financing component. Payments received prior to the delivery of units or services performed are recorded as deferred revenues. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from sales. The Company applied the practical expedient to account for shipping and handling activities as fulfillment cost rather than as a separate performance obligation. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. All sales are denominated in U.S. dollars. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. The Company chose to apply the available practical expedient as commission eligible sales orders are fulfilled within less than one year and commissions are generally paid by the Company within 30 days of the related sales order fulfillment. Accordingly, management has determined that no change in accounting for costs to obtain a contract will be required for the Company to conform to ASC 606. Disaggregation of revenue In the following tables, revenue is disaggregated by revenue category. For the Three Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units & Engineering $ 77,125 $ 1,108,426 $ 77,125 $ 1,108,426 The remainder of our revenues for the three months ended September 30, 2023, are derived from repairs and calibration of $298,382, replacement parts of $41,893, extended warranties of $32,580 and other revenues of $6,688. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Three Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 93,982 $ 1,364,876 $ 93,982 $ 1,364,876 The remainder of our revenues for the three months ended September 30, 2022, are derived from repairs and calibration of $460,331, replacement parts of $56,749, extended warranties of $28,862 and other revenues of $7,958. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Six Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units and Engineering $ 486,084 $ 3,086,238 $ 486,084 $ 3,086,238 The remainder of our revenues for the six months ended September 30, 2023, are derived from repairs and calibration of $640,433, replacement parts of $139,190, extended warranties of $66,585 and other revenues of $13,494. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Six Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 201,932 $ 2,969,026 $ 201,932 $ 2,969,026 The remainder of our revenues for the six months ended September 30, 2022, are derived from repairs and calibration of $930,365, replacement parts of $85,076, extended warranties of $57,404 and other revenues of $22,712. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. In the following table, revenue is disaggregated by geography. For the Three Months Ended September 30, 2023 For the Three Months Ended September 30, 2022 Geography United States $ 1,352,734 $ 1,601,639 International 212,360 411,119 Total $ 1,565,094 $ 2,012,758 For the Six Months Ended September 30, 2023 For the Six Months Ended September 30, 2022 Geography United States $ 3,616,564 $ 3,502,568 International 815,460 763,947 Total $ 4,432,024 $ 4,266,515 For the three months ended September 30, 2023, two customers accounted for sales of $412,770 or 26%, and $366,127 or 23%. For the six months ended September 30, 2023 one customer accounted for sales of $1,446,626, or 33%. For the three months ended September 30, 2022, one customer accounted for sales of $451,853, or 22%. For the six months ended September 30, 2022, two customers accounted for sales of $1,016,194 and $585,802 or 24%, and 14% respectively. The Company, in addition to inside sales efforts, utilizes independent sales agents to sell its products to customers. A related party independent sales agent earned $54,636 and $56,236 in commissions for the three and six months ended September 30, 2023, respectively. The sales agent earned $9,000 and $18,000 for sales and marketing assistance for the three and six months ended September 30, 2023. The same related party independent sales agent earned $16,520 and $27,680 in commissions for the three and six months ended September 30, 2022, respectively. The sales agent earned $9,000 and $18,000 for sales and marketing assistance for the three and six months ended September 30, 2022. 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 three and six months ended September 30, 2023 and 2022. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. The amendment in this update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The effective date of the new standard is for fiscal years beginning after December 15, 2022 and was adopted by the Company on April 1, 2023. The adoption of this standard did not have a significant impact on our financial position and results of operations. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements. |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3 Accounts Receivable, net The following table sets forth the components of accounts receivable: September 30, 2023 March 31, 2023 Government $ 655,066 $ 651,370 Commercial 296,192 255,912 Less: Allowance for doubtful accounts (9,432 ) (6,401 ) $ 941,826 $ 900,881 |
Inventories, net
Inventories, net | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 4 Inventories, net Inventories consist of: September 30, 2023 March 31, 2023 Purchased parts $ 2,756,698 $ 2,602,447 Work-in-process 1,774,939 1,388,679 Finished Goods 26,130 55,052 Less: Inventory reserve (454,981 ) (460,113 ) $ 4,102,786 $ 3,586,065 |
Restricted Cash to Support Appe
Restricted Cash to Support Appeal Bond | 6 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 5 Restricted Cash to Support Appeal Bond In January 2018, the Company transferred $2,000,000 to a restricted cash account to secure a letter of credit which was used for collateral for the appeal bond (See Note 14). In September 2023, the restricted cash account funds of $2,011,083 which includes interest earned, were used to make payment towards the final judgment. At September 30, 2023, the restricted cash balance was $0. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 6 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | Note 6 Prepaid expenses and other current assets Prepaid expenses and other current assets consist of: September 30, 2023 March 31, 2023 Prepaid expenses $ 186,722 $ 148,929 Deferred charges 27,720 24,720 Other receivables 19,228 643,976 $ 233,670 $ 817,625 In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Tax Credit (“ERTC”): a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERTC. We qualified for the ERTC in the first two quarters of 2021. During year ended March 31, 2023, we recorded an aggregate benefit of $628,401 in our consolidated financial statements and the receivable for the ERTC benefit as of March 31, 2023 is in other current assets, which was received on June 1, 2023. |
Line of Credit
Line of Credit | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 7 Line of Credit The Company has a line of credit with Bank of America with open availability up to $690,000, with monthly payments of interest only. The borrowing base calculation is tied to accounts receivable and is collateralized by substantially all of the assets of the Company. Interest on any outstanding balance is payable monthly at an annual interest rate equal to the sum of the greater of the BSBY (Bloomberg Short-Term Bank Yield Index rate) daily float plus 3.75 percentage points. As of September 30, 2023, and March 31, 2023, the outstanding balances were $690,000, respectively. The interest rate on September 30, 2023, was 9.15%. Bank of America renewed the Company’s line of credit with a maturity date of July 30, 2023 and has extended the maturity date to December 31, 2023. The annual interest rate was amended as part of the renewal agreement. Effective October 12, 2023, interest on any outstanding balance is payable monthly at an annual interest rate equal to the sum of the greater of the BSBY daily float or 1.25% plus 4.62 percentage points. |
Right of Use Assets and Operati
Right of Use Assets and Operating Lease Liability | 6 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 8 Right of Use Assets and Operating Lease Liability The Company leases its facility in East Rutherford, NJ with monthly payments of $21,237 until August 2025. Thereafter, monthly payments are $23,083 for the balance of the 8 year lease agreement expiring August 2029. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company used a discount rate of 3.90% for both September 30, 2023 and March 31,2023. The weighted average remaining lease term is 5.92 years. Right to use assets is summarized below: September 30, 2023 March 31, 2023 Right to use asset $ 1,830,857 $ 1,830,857 Less: Accumulated amortization (404,366 ) (304,306 ) Right to use assets, net $ 1,426,491 $ 1,526,551 The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of September 30, 2023: Remaining payments in fiscal 2024 $ 127,420 2025 254,840 2026 267,767 2027 277,000 2028 277,000 Thereafter 392,417 Total undiscounted future minimum lease payments 1,596,444 Less: Difference between undiscounted lease payments and discounted lease liabilities (169,953 ) Present value of net minimum lease payments 1,426,491 Less current portion (206,060 ) Operating lease liabilities – long-term $ 1,220,431 Total rent expense for the three and six months ended September 30, 2023, was $102,923 and $205,734, respectively, as compared to $104,595 and $208,503 for the three and six months ended September 30, 2022, respectively. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity [Text Block] | Note 9 Stockholder’s Equity Series B 8% Convertible Preferred Stock In September 2023, the Company entered into a definitive subscription agreement pursuant to which an accredited investor purchased 66,667 shares of the Company’s Series B Preferred Stock (the “Series B Preferred”) for $400,000. These funds were used for working capital purposes to support the orders received and expected in the near term. The shares of Series B Preferred to have a stated value of $6.00 per share (the “Series B Stated Value”) and are convertible into Common Stock at a price of $2.00 per share. The holder of shares of the Series B Preferred shall be entitled to receive dividends out of any assets legally available, to the extent permitted by New Jersey law, at an annual rate equal to 8% of the Series B Stated Value of such shares of Series B Preferred, calculated on the basis of a 360 day year, consisting of twelve 30-day months, and shall accrue from the date of issuance of such shares of Series B Preferred, payable quarterly in cash. Any unpaid dividends shall accrue at the same rate. To the extent not paid on the last day of March, June, September and December of each calendar year, all dividends on any share of Series B Preferred shall accumulate whether or not declared by the Board and shall remain accumulated dividends until paid. As of September 30, 2023, the Company recognized $1,334 for dividends, which have not been paid. Series C 8% Convertible Preferred Stock In September 2023, the Company entered into a definitive subscription agreement pursuant to which two accredited investors purchased 53,500 shares of the Company’s Series C Preferred Stock (the “Series C Preferred”) in total for $321,000. These funds were used for working capital purposes to support the orders received and expected in the near term (one accredited investor is a member of the Board of Directors who invested $171,000 and the other accredited investor is a related party who invested $150,000). The shares of Series C Preferred to have a stated value of $6.00 per share (the “Series C Stated Value”) and are convertible into Common Stock at a price of $2.00 per share. The holder of shares of the Series C Preferred shall be entitled to receive dividends out of any assets legally available, to the extent permitted by New Jersey law, at an annual rate equal to 8% of the Series C Stated Value of such shares of Series C Preferred, calculated on the basis of a 360 day year, consisting of twelve 30-day months, and shall accrue from the date of issuance of such shares of Series c Preferred, payable quarterly in cash. Any unpaid dividends shall accrue at the same rate. To the extent not paid on the last day of March, June, September and December of each calendar year, all dividends on any share of Series C Preferred shall accumulate whether or not declared by the Board and shall remain accumulated dividends until paid. As of September 30, 2023, the Company recognized $1,375 for dividends, which have not been paid. |
Stock Options Plans
Stock Options Plans | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement [Text Block] | Note 10 Stock Options Plans The Board of Directors (the “Board”) adopted on January 18, 2017, and ratified by the shareholders at the Annual Meeting on January 18, 2017, the Company’s 2016 Stock Option Plan (the “Plan”). The Plan provides for the granting of incentive stock options, by a committee to be appointed by the Board (both the Board and the Committee are referred to herein as the “Committee”) to directors, officers, and employees (excluding directors and officers who are not employees) to purchase shares of the Common Stock of the Company, par value $0.10 per share (the “Stock”), in accordance with the terms and provisions. The 2016 Plan reserves for issuance, options to purchase up to 250,000 shares of its common stock. 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 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. A summary of the status of the Company’s stock option plans for the fiscal year ended March 31, 2023, and year to date September 30, 2023, and changes during the year 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, 2023 99,000 $ 3.13 1.78 years $ - Options granted - $ - Options exercised - $ - Options canceled/forfeited - $ - Outstanding options at September 30, 2023 99,000 $ 3.13 1.28 years $ - Vested Options: September 30, 2023: 75,600 $ 3.17 0.8 years $ - Remaining options available for grant were 151,000 as of September 30, 2023. At September 30, 2023, the unamortized compensation expense for stock options was $12,451. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 2.61 years. For the three months ended September 30, 2023, the Company recorded stock compensation costs of $1,943, as compared to $6,234 for the three months ended September 30, 2022. The Company recorded stock compensation costs of $5,214 as compared to $12,469 for the six months ended September 30, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 11 Income Taxes FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes” (“ASC 740-10”) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company does not have any unrecognized tax benefits. The tax effect of temporary differences, primarily net operating loss carryforwards, asset reserves and accrued liabilities, gave rise to the Company’s deferred tax asset. Deferred income taxes are recognized for the tax consequence of such temporary differences at the enacted tax rate expected to be in effect when the differences reverse. The Company had approximately $2.7 million in deferred tax assets at September 30, 2023 and approximately $2.6 million in deferred tax assets at March 31, 2023. 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. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 12 Net loss per Share Net loss per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS to common stockholders reflects the potential dilution that could occur if securities, including preferred stock and options, were converted into common stock. The dilutive effect of outstanding options is reflected in earnings per share by use of the treasury stock method. The dilutive effect of preferred stock is reflected in earnings per share by use of the if-converted 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. For the three and six months ended September 30, 2023 and 2022, since the Company has a net loss, the effect of common stock equivalents is anti-dilutive, and as such, common stock equivalents have been excluded from this calculation. Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 Basic net loss per share computation: Net loss $ (435,153 ) $ (477,368 ) Less: Preferred dividends (82,708 ) (80,000 ) Net loss attributable to common shareholders (517,861 ) (557,368 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Basic net loss per share $ (0.16 ) $ (0.17 ) Diluted net loss per share computation Net loss attributable to common shareholders $ (517,861 ) $ (557,368 ) Add: Preferred dividends - - Diluted net loss attributable to common shareholders $ (517,861 ) $ (557,368 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Incremental shares attributable to the assumed conversion of preferred stock - - Total adjusted weighted-average shares 3,255,887 3,255,887 Diluted net loss per share $ (0.16 ) $ (0.17 ) Six Months Ended Six Months Ended September 30, 2023 September 30, 2022 Basic net loss per share computation: Net loss $ (139,861 ) $ (710,237 ) Less: Preferred dividends (162,708 ) (160,000 ) Net loss attributable to common shareholders (302,569 ) (870,237 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Basic net loss per share $ (0.09 ) $ (0.27 ) Diluted net loss per share computation Net loss attributable to common shareholders $ (302,569 ) $ (870,237 ) Add: Preferred dividends - - Net loss attributable to common shareholders $ (302,569 ) $ (870,237 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Incremental shares attributable to the assumed conversion of preferred stock - - Total adjusted weighted-average shares 3,255,887 3,255,887 Diluted net loss per share $ (0.09 ) $ (0.27 ) The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the three months ended: September 30, 2023 September 30, 2022 Convertible preferred stock 2,151,611 1,869,778 Stock options 99,000 111,500 2,250,611 1,981,278 The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the six months ended: September 30, 2023 September 30, 2022 Convertible preferred stock 2,151,611 1,869,778 Stock options 99,000 111,500 2,250,611 1,981,278 |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 13 Segment Information In accordance with FASB ASC 280, “Disclosures about Segments of an Enterprise and related information”, the Company determined it has two reportable segments - avionics government and avionics commercial. There are no inter-segment revenues. The Company is organized primarily on the basis of its avionics products. The avionics government segment consists primarily of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries either directly or through distributors. The avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines, directly or through commercial distributors, and to general aviation repair and maintenance shops. The Company develops and designs test equipment for the avionics industry and as such, the Company’s products and designs cross segments. Management evaluates the performance of its segments and allocates resources to them based on gross margin. The Company’s general and administrative costs and sales and marketing expenses, and engineering costs are not segment specific. As a result, all operating expenses are not managed on a segment basis. Net interest includes expenses on debt and income earned on cash balances, both maintained at the corporate level. The tables below present information about reportable segments within the avionics business for the three and six months ended September 30, 2023, and 2022: Three Months Ended September 30, 2023 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 1,108,425 $ 456,669 $ 1,565,094 $ - $ 1,565,094 Cost of sales 773,358 432,252 1,205,610 - 1,205,610 Gross margin 335,067 24,417 359,484 - 359,484 Total expenses 512,603 455,285 967,888 Loss before income taxes $ (153,119 ) $ (455,285 ) $ (608,404 ) Three Months Ended September 30, 2022 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 1,364,876 $ 647,882 $ 2,012,758 $ - $ 2,012,758 Cost of sales 966,980 492,306 1,459,286 - 1,459,286 Gross margin 397,896 155,576 553,472 - 553,472 Total expenses 775,789 381,979 1,157,768 Loss before income taxes $ (222,317 ) $ (381,979 ) $ (604,296 ) Six Months Ended September 30, 2023 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 3,086,237 $ 1,345,787 $ 4,432,024 $ - $ 4,432,024 Cost of sales 1,759,396 1,018,594 2,777,990 - 2,777,990 Gross margin 1,326,841 327,193 1,654,034 - 1,654,034 Total expenses 991,950 894,646 1,886,596 Income (loss) before income taxes $ 662,084 $ (894,646 ) $ (232,562 ) Six Months Ended September 30, 2022 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 2,969,026 $ 1,297,489 $ 4,266,515 $ - $ 4,266,515 Cost of sales 1,929,216 948,642 2,877,858 - 2,877,858 Gross margin 1,039,810 348,847 1,388,657 - 1,388,657 Total expenses 1,470,742 816,996 2,287,738 Loss before income taxes $ (82,085 ) $ (816,996 ) $ (899,081 ) |
Litigation
Litigation | 6 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note 14 Litigation Currently, we are 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. The Aeroflex litigation did not result in a favorable outcome for the Company, despite our belief that we committed no wrongdoing. We have paid the $6.6 million judgment in full and there are no outstanding obligations related to the Aeroflex litigation. The jury found no misappropriation of Aeroflex trade secrets but found that the Company tortiously interfered with a prospective business opportunity and awarded damages. The jury also found that TIC tortiously interfered with Aeroflex’s non-disclosure agreements with two former Aeroflex employees, and that the former Aeroflex employees breached their non-disclosure agreements with Aeroflex. Upon appeal, a decision on the case was rendered and released on July 21, 2023, the Kansas Appeals Court rejected each of TIC’s appeal arguments. TIC paid the full judgement amount of $6,559,233 on September 15, 2023, including interest of $1,659,233. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Tel-Instrument Electronics Corp. as of September 30, 2023, the results of operations, change in stockholders’ equity and statements of cash flow for the six months ended September 30, 2023 and September 30, 2022. These results are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include disclosures normally made in an Annual Report on Form 10-K. The March 31, 2023 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the unaudited condensed consolidated financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the United States Securities and Exchange Commission (the “SEC”) on June 15, 2023 (the “Annual Report”). |
Inventory, Policy [Policy Text Block] | Inventory Reserve Policy Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Inventories are reviewed for obsolescence and a reserve is recorded for inventory allowances 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. If actual conditions are less favorable than those we have projected, we may need to increase our reserves for excess and obsolete inventories. Any increases in our reserves will adversely impact our results of operations. Such reserves are not reduced until the product is sold. If we are able to sell such inventory any related reserves would be reversed in the period of sale. 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. |
Revenue [Policy Text Block] | Revenue Recognition Under Financial Accounting Standards Board (“FASB”) Topic 606, Revenue from Contacts with Customers The Company accounts for revenue recognition in accordance with ASC 606.The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The ASC 606 defines a five-step process to achieve the core principle and, in doing so, it is possible more judgement and estimates may be required within the revenue recognition process than are currently in use. The Company generates revenue from designing, manufacturing, and selling avionic tests and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. The Company also offers calibration and repair services for a wide range of airborne navigation and communication equipment. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each. Test Units/Sets The Company develops and manufactures unit sets to test navigation and communication equipment, such as ramp testers and bench testers for equipment installed in aircraft and ground radios. The Company recognizes revenue when the customer obtains control of the Company’s product based on the contractual shipping terms of the contract, which is usually at the time of shipment. Revenue on products is presented gross because the Company is primarily responsible for fulfilling the promise to provide the product, is responsible to ensure that the product is produced in accordance with the related supply agreement and bears the risk of loss while the inventory is in-transit. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines stand-alone selling prices based on the price at which the performance obligation is sold separately. If the stand-alone selling price is not observable through past transactions, the Company estimates the standalone selling price considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of September 30, 2023. Replacement Parts The Company offers replacement parts for test equipment, ramp testers, and bench testers. Similar to the sale of test units, the control of the product transfers at a point of time and therefore, revenue is recognized at the point in time when the obligation to the customer has been fulfilled. Extended Warranties The extended warranties sold by the Company provide a level of assurance beyond the coverage for defects that existed at the time of a sale or against certain types of covered damage with coverage terms ranging from 2 to 7 years. Amounts received for warranties are recorded as deferred revenue and recognized as revenue ratably over the respective term of the agreements. As of September 30, 2023, $229,814 is expected to be recognized from remaining performance obligations for extended warranties as compared to $296,400 at March 31, 2023. For the three and six months ended September 30, 2023, the Company recognized revenue of $32,580 and $66,586 respectively from amounts that were included in Deferred Revenue as compared to $23,862 and $47,403, respectively from amounts that were included in Deferred Revenue for the three months and six months ended September 30, 2022. The following table provides a summary of the changes in deferred revenues for the six months ended September 30, 2023: Deferred revenues at April 1, 2023 $ 296,400 Revenue recognized for the six months ended September 30, 2023 (66,586 ) Deferred revenues at September 30, 2023 $ 229,814 Other Deferred Revenues The Company sometimes receives payments in advance of shipment. These amounts are classified as other deferred revenues. For the periods ended September 30, 2023, and March 31, 2023, the Company has other deferred revenues of $45,028 and $600, respectively. Repair and Calibration Services The Company offers repair and calibration services for units that are returned for annual calibrations and/or for repairs after the warranty period has expired. The Company repairs and calibrates a wide range of airborne navigation and communication equipment. Revenue is recognized at the time the repaired or calibrated unit is shipped back to the customer, as it is at this time that the work is completed. Other The majority of the Company’s revenues are from contracts with the U.S. government, airlines, aircraft manufacturers, such as Boeing and Lockheed Martin, domestic distributors, international distributors for sales to military and commercial customers, and other commercial customers. The contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (“FAR”) which provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. Payment terms and conditions vary by contract, although terms include a requirement of payment within a range from 30 to 60 days, or in certain cases, up-front deposits. In circumstances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the Company's contracts do not include a significant financing component. Payments received prior to the delivery of units or services performed are recorded as deferred revenues. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from sales. The Company applied the practical expedient to account for shipping and handling activities as fulfillment cost rather than as a separate performance obligation. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. All sales are denominated in U.S. dollars. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. The Company chose to apply the available practical expedient as commission eligible sales orders are fulfilled within less than one year and commissions are generally paid by the Company within 30 days of the related sales order fulfillment. Accordingly, management has determined that no change in accounting for costs to obtain a contract will be required for the Company to conform to ASC 606. Disaggregation of revenue In the following tables, revenue is disaggregated by revenue category. For the Three Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units & Engineering $ 77,125 $ 1,108,426 $ 77,125 $ 1,108,426 The remainder of our revenues for the three months ended September 30, 2023, are derived from repairs and calibration of $298,382, replacement parts of $41,893, extended warranties of $32,580 and other revenues of $6,688. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Three Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 93,982 $ 1,364,876 $ 93,982 $ 1,364,876 The remainder of our revenues for the three months ended September 30, 2022, are derived from repairs and calibration of $460,331, replacement parts of $56,749, extended warranties of $28,862 and other revenues of $7,958. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Six Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units and Engineering $ 486,084 $ 3,086,238 $ 486,084 $ 3,086,238 The remainder of our revenues for the six months ended September 30, 2023, are derived from repairs and calibration of $640,433, replacement parts of $139,190, extended warranties of $66,585 and other revenues of $13,494. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. For the Six Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 201,932 $ 2,969,026 $ 201,932 $ 2,969,026 The remainder of our revenues for the six months ended September 30, 2022, are derived from repairs and calibration of $930,365, replacement parts of $85,076, extended warranties of $57,404 and other revenues of $22,712. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments. In the following table, revenue is disaggregated by geography. For the Three Months Ended September 30, 2023 For the Three Months Ended September 30, 2022 Geography United States $ 1,352,734 $ 1,601,639 International 212,360 411,119 Total $ 1,565,094 $ 2,012,758 For the Six Months Ended September 30, 2023 For the Six Months Ended September 30, 2022 Geography United States $ 3,616,564 $ 3,502,568 International 815,460 763,947 Total $ 4,432,024 $ 4,266,515 For the three months ended September 30, 2023, two customers accounted for sales of $412,770 or 26%, and $366,127 or 23%. For the six months ended September 30, 2023 one customer accounted for sales of $1,446,626, or 33%. For the three months ended September 30, 2022, one customer accounted for sales of $451,853, or 22%. For the six months ended September 30, 2022, two customers accounted for sales of $1,016,194 and $585,802 or 24%, and 14% respectively. The Company, in addition to inside sales efforts, utilizes independent sales agents to sell its products to customers. A related party independent sales agent earned $54,636 and $56,236 in commissions for the three and six months ended September 30, 2023, respectively. The sales agent earned $9,000 and $18,000 for sales and marketing assistance for the three and six months ended September 30, 2023. The same related party independent sales agent earned $16,520 and $27,680 in commissions for the three and six months ended September 30, 2022, respectively. The sales agent earned $9,000 and $18,000 for sales and marketing assistance for the three and six months ended September 30, 2022. |
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 three and six months ended September 30, 2023 and 2022. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. The amendment in this update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The effective date of the new standard is for fiscal years beginning after December 15, 2022 and was adopted by the Company on April 1, 2023. The adoption of this standard did not have a significant impact on our financial position and results of operations. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | The following table provides a summary of the changes in deferred revenues for the six months ended September 30, 2023: Deferred revenues at April 1, 2023 $ 296,400 Revenue recognized for the six months ended September 30, 2023 (66,586 ) Deferred revenues at September 30, 2023 $ 229,814 |
Disaggregation of Revenue [Table Text Block] | In the following tables, revenue is disaggregated by revenue category. For the Three Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units & Engineering $ 77,125 $ 1,108,426 $ 77,125 $ 1,108,426 For the Three Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 93,982 $ 1,364,876 $ 93,982 $ 1,364,876 For the Six Months Ended September 30, 2023 Commercial Government Sales Distribution Test Units and Engineering $ 486,084 $ 3,086,238 $ 486,084 $ 3,086,238 For the Six Months Ended September 30, 2022 Commercial Government Sales Distribution Test Units and Engineering $ 201,932 $ 2,969,026 $ 201,932 $ 2,969,026 |
Revenue from External Customers by Geographic Areas [Table Text Block] | In the following table, revenue is disaggregated by geography. For the Three Months Ended September 30, 2023 For the Three Months Ended September 30, 2022 Geography United States $ 1,352,734 $ 1,601,639 International 212,360 411,119 Total $ 1,565,094 $ 2,012,758 For the Six Months Ended September 30, 2023 For the Six Months Ended September 30, 2022 Geography United States $ 3,616,564 $ 3,502,568 International 815,460 763,947 Total $ 4,432,024 $ 4,266,515 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table sets forth the components of accounts receivable: September 30, 2023 March 31, 2023 Government $ 655,066 $ 651,370 Commercial 296,192 255,912 Less: Allowance for doubtful accounts (9,432 ) (6,401 ) $ 941,826 $ 900,881 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: September 30, 2023 March 31, 2023 Purchased parts $ 2,756,698 $ 2,602,447 Work-in-process 1,774,939 1,388,679 Finished Goods 26,130 55,052 Less: Inventory reserve (454,981 ) (460,113 ) $ 4,102,786 $ 3,586,065 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets consist of: September 30, 2023 March 31, 2023 Prepaid expenses $ 186,722 $ 148,929 Deferred charges 27,720 24,720 Other receivables 19,228 643,976 $ 233,670 $ 817,625 |
Right of Use Assets and Opera_2
Right of Use Assets and Operating Lease Liability (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Right to use assets is summarized below: September 30, 2023 March 31, 2023 Right to use asset $ 1,830,857 $ 1,830,857 Less: Accumulated amortization (404,366 ) (304,306 ) Right to use assets, net $ 1,426,491 $ 1,526,551 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of September 30, 2023: Remaining payments in fiscal 2024 $ 127,420 2025 254,840 2026 267,767 2027 277,000 2028 277,000 Thereafter 392,417 Total undiscounted future minimum lease payments 1,596,444 Less: Difference between undiscounted lease payments and discounted lease liabilities (169,953 ) Present value of net minimum lease payments 1,426,491 Less current portion (206,060 ) Operating lease liabilities – long-term $ 1,220,431 |
Stock Options Plans (Tables)
Stock Options Plans (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | A summary of the status of the Company’s stock option plans for the fiscal year ended March 31, 2023, and year to date September 30, 2023, and changes during the year 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, 2023 99,000 $ 3.13 1.78 years $ - Options granted - $ - Options exercised - $ - Options canceled/forfeited - $ - Outstanding options at September 30, 2023 99,000 $ 3.13 1.28 years $ - Vested Options: September 30, 2023: 75,600 $ 3.17 0.8 years $ - |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net loss per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS to common stockholders reflects the potential dilution that could occur if securities, including preferred stock and options, were converted into common stock. The dilutive effect of outstanding options is reflected in earnings per share by use of the treasury stock method. The dilutive effect of preferred stock is reflected in earnings per share by use of the if-converted 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. For the three and six months ended September 30, 2023 and 2022, since the Company has a net loss, the effect of common stock equivalents is anti-dilutive, and as such, common stock equivalents have been excluded from this calculation. Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 Basic net loss per share computation: Net loss $ (435,153 ) $ (477,368 ) Less: Preferred dividends (82,708 ) (80,000 ) Net loss attributable to common shareholders (517,861 ) (557,368 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Basic net loss per share $ (0.16 ) $ (0.17 ) Diluted net loss per share computation Net loss attributable to common shareholders $ (517,861 ) $ (557,368 ) Add: Preferred dividends - - Diluted net loss attributable to common shareholders $ (517,861 ) $ (557,368 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Incremental shares attributable to the assumed conversion of preferred stock - - Total adjusted weighted-average shares 3,255,887 3,255,887 Diluted net loss per share $ (0.16 ) $ (0.17 ) Six Months Ended Six Months Ended September 30, 2023 September 30, 2022 Basic net loss per share computation: Net loss $ (139,861 ) $ (710,237 ) Less: Preferred dividends (162,708 ) (160,000 ) Net loss attributable to common shareholders (302,569 ) (870,237 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Basic net loss per share $ (0.09 ) $ (0.27 ) Diluted net loss per share computation Net loss attributable to common shareholders $ (302,569 ) $ (870,237 ) Add: Preferred dividends - - Net loss attributable to common shareholders $ (302,569 ) $ (870,237 ) Weighted-average common shares outstanding 3,255,887 3,255,887 Incremental shares attributable to the assumed conversion of preferred stock - - Total adjusted weighted-average shares 3,255,887 3,255,887 Diluted net loss per share $ (0.09 ) $ (0.27 ) |
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 for the three months ended: September 30, 2023 September 30, 2022 Convertible preferred stock 2,151,611 1,869,778 Stock options 99,000 111,500 2,250,611 1,981,278 September 30, 2023 September 30, 2022 Convertible preferred stock 2,151,611 1,869,778 Stock options 99,000 111,500 2,250,611 1,981,278 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The tables below present information about reportable segments within the avionics business for the three and six months ended September 30, 2023, and 2022: Three Months Ended September 30, 2023 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 1,108,425 $ 456,669 $ 1,565,094 $ - $ 1,565,094 Cost of sales 773,358 432,252 1,205,610 - 1,205,610 Gross margin 335,067 24,417 359,484 - 359,484 Total expenses 512,603 455,285 967,888 Loss before income taxes $ (153,119 ) $ (455,285 ) $ (608,404 ) Three Months Ended September 30, 2022 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 1,364,876 $ 647,882 $ 2,012,758 $ - $ 2,012,758 Cost of sales 966,980 492,306 1,459,286 - 1,459,286 Gross margin 397,896 155,576 553,472 - 553,472 Total expenses 775,789 381,979 1,157,768 Loss before income taxes $ (222,317 ) $ (381,979 ) $ (604,296 ) Six Months Ended September 30, 2023 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 3,086,237 $ 1,345,787 $ 4,432,024 $ - $ 4,432,024 Cost of sales 1,759,396 1,018,594 2,777,990 - 2,777,990 Gross margin 1,326,841 327,193 1,654,034 - 1,654,034 Total expenses 991,950 894,646 1,886,596 Income (loss) before income taxes $ 662,084 $ (894,646 ) $ (232,562 ) Six Months Ended September 30, 2022 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 2,969,026 $ 1,297,489 $ 4,266,515 $ - $ 4,266,515 Cost of sales 1,929,216 948,642 2,877,858 - 2,877,858 Gross margin 1,039,810 348,847 1,388,657 - 1,388,657 Total expenses 1,470,742 816,996 2,287,738 Loss before income taxes $ (82,085 ) $ (816,996 ) $ (899,081 ) |
Business, Organization and Li_2
Business, Organization and Liquidity (Details) - USD ($) | 6 Months Ended | ||||
Sep. 15, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Working Capital | $ 3,504,945 | $ 3,058,638 | |||
Long-Term Line of Credit | 690,000 | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 356,942 | $ 5,850,481 | $ 5,447,416 | $ 6,960,740 | |
Backlog | 6,500,000 | ||||
Loss Contingency, Damages Awarded, Value | 6,559,233 | ||||
Litigation Settlement Interest | 1,659,233 | ||||
Litigation Settlement, Expense | $ 6,559,233 | ||||
Proceeds from Income Tax Refunds | $ 628,401 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Extended Product Warranty Description | The extended warranties sold by the Company provide a level of assurance beyond the coverage for defects that existed at the time of a sale or against certain types of covered damage with coverage terms ranging from 2 to 7 years. | ||||
Extended Product Warranty Accrual | $ 229,814 | $ 229,814 | $ 296,400 | ||
Recognition of Deferred Revenue | 32,580 | $ 23,862 | 66,586 | $ 47,403 | |
Deferred Revenue and Credits, Current | 45,028 | 45,028 | $ 600 | ||
Revenues | 1,565,094 | 2,012,758 | 4,432,024 | 4,266,515 | |
Payments for Commissions | 54,636 | 16,520 | 56,236 | 27,680 | |
Repairs and Calibration [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | 298,382 | 460,331 | 640,433 | 930,365 | |
Replacement Parts [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | 41,893 | 56,749 | 139,190 | 85,076 | |
Extended Warranty [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | 32,580 | 28,862 | 66,585 | 57,404 | |
Other Revenue [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | 6,688 | 7,958 | 13,494 | 22,712 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | $ 412,770 | $ 451,853 | $ 1,446,626 | $ 1,016,194 | |
Concentration Risk, Percentage | 26% | 22% | 33% | 24% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Revenues | $ 366,127 | $ 585,802 | |||
Concentration Risk, Percentage | 23% | 14% | |||
Sales and Marketing Assistance [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Payments for Commissions | $ 9,000 | $ 9,000 | $ 18,000 | $ 18,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Deferred Revenue, by Arrangement, Disclosure | 6 Months Ended |
Sep. 30, 2023 USD ($) | |
Deferred Revenue By Arrangement Disclosure Abstract | |
Deferred revenues related to extended warrants | $ 296,400 |
Revenue recognized | (66,586) |
Deferred revenues related to extended warrants | $ 229,814 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Disaggregation of Revenue - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commercial Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 77,125 | $ 93,982 | $ 486,084 | $ 201,932 |
Commercial Customers [Member] | Test Units & Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 77,125 | 93,982 | 486,084 | 201,932 |
U.S. Government [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,108,426 | 1,364,876 | 3,086,238 | 2,969,026 |
U.S. Government [Member] | Test Units & Engineering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,108,426 | $ 1,364,876 | $ 3,086,238 | $ 2,969,026 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||||
Revenues | $ 1,565,094 | $ 2,012,758 | $ 4,432,024 | $ 4,266,515 |
UNITED STATES | ||||
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||||
Revenues | 1,352,734 | 1,601,639 | 3,616,564 | 3,502,568 |
INTERNATIONAL | ||||
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||||
Revenues | $ 212,360 | $ 411,119 | $ 815,460 | $ 763,947 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (9,432) | $ (6,401) |
Total | 941,826 | 900,881 |
Government Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | 655,066 | 651,370 |
Commercial Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | $ 296,192 | $ 255,912 |
Inventories, net (Details) - Sc
Inventories, net (Details) - Schedule of Inventory, Current - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Schedule Of Inventory Current Abstract | ||
Purchased parts | $ 2,756,698 | $ 2,602,447 |
Work-in-process | 1,774,939 | 1,388,679 |
Finished Goods | 26,130 | 55,052 |
Less: Allowance for obsolete inventory | (454,981) | (460,113) |
Inventory, net | $ 4,102,786 | $ 3,586,065 |
Restricted Cash to Support Ap_2
Restricted Cash to Support Appeal Bond (Details) - USD ($) | Sep. 30, 2023 | Sep. 14, 2023 | Jan. 31, 2018 |
Cash and Cash Equivalents [Abstract] | |||
Restricted Cash, Current | $ 0 | $ 2,011,083 | $ 2,000,000 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) | Sep. 30, 2023 USD ($) |
Disclosure Text Block Supplement [Abstract] | |
Other Receivables | $ 628,401 |
Prepaid expenses and other cu_4
Prepaid expenses and other current assets (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Deferred Costs Capitalized Prepaid And Other Assets Abstract | ||
Prepaid expenses | $ 186,722 | $ 148,929 |
Deferred charges | 27,720 | 24,720 |
Other receivables | 19,228 | 643,976 |
$ 233,670 | $ 817,625 |
Line of Credit (Details)
Line of Credit (Details) | 6 Months Ended |
Sep. 30, 2023 USD ($) | |
Line of Credit (Details) [Line Items] | |
Long-Term Line of Credit | $ 690,000 |
Line of Credit Facility, Interest Rate Description | 1.25% plus 4.62 percentage points |
London Interbank Offered Rate LIBOR [Member] | |
Line of Credit (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.75% |
Line of Credit [Member] | |
Line of Credit (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 690,000 |
Line of Credit Facility, Collateral | collateralized by substantially all of the assets of the Company |
Long-Term Line of Credit | $ 690,000 |
Line of Credit Facility, Interest Rate at Period End | 9.15% |
Right of Use Assets and Opera_3
Right of Use Assets and Operating Lease Liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Right of Use Assets and Operating Lease Liability (Details) [Line Items] | ||||
Operating Lease, Expense | $ 102,923 | $ 104,595 | $ 205,734 | $ 208,503 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 11 months 1 day | 5 years 11 months 1 day | ||
Building [Member] | ||||
Right of Use Assets and Operating Lease Liability (Details) [Line Items] | ||||
Operating Lease, Expense | $ 21,237 | |||
Lessee, Operating Lease, Discount Rate | 3.90% | 3.90% | ||
Building [Member] | Monthly Payments September 2025 [Member] | Minimum [Member] | ||||
Right of Use Assets and Operating Lease Liability (Details) [Line Items] | ||||
Operating Lease, Expense | $ 23,083 | |||
Building [Member] | Monthly Payments September 2021 [Member] | Minimum [Member] | ||||
Right of Use Assets and Operating Lease Liability (Details) [Line Items] | ||||
Lessee, Operating Lease, Renewal Term | 8 years | 8 years |
Right of Use Assets and Opera_4
Right of Use Assets and Operating Lease Liability (Details) - Lessee, Operating Lease, Disclosure - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Lessee Operating Lease Disclosure Abstract | ||
Right to use asset | $ 1,830,857 | $ 1,830,857 |
Less: Accumulated amortization | (404,366) | (304,306) |
Right to use assets, net | $ 1,426,491 | $ 1,526,551 |
Right of Use Assets and Opera_5
Right of Use Assets and Operating Lease Liability (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Lessee Operating Lease Liability Maturity Abstract | ||
Remaining payments in fiscal 2024 | $ 127,420 | |
2025 | 254,840 | |
2026 | 267,767 | |
2027 | 277,000 | |
2028 | 277,000 | |
Thereafter | 392,417 | |
Total undiscounted future minimum lease payments | 1,596,444 | |
Less: Difference between undiscounted lease payments and discounted lease liabilities | (169,953) | |
Present value of net minimum lease payments | 1,426,491 | |
Less current portion | (206,060) | $ (202,087) |
Operating lease liabilities – long-term | $ 1,220,431 | $ 1,324,464 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Stockholder's Equity (Details) [Line Items] | ||||||
Dividends, Preferred Stock | $ 82,708 | $ 80,000 | $ 162,708 | $ 160,000 | ||
Series B Preferred Stock [Member] | ||||||
Stockholder's Equity (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 66,667 | |||||
Proceeds from Issuance of Convertible Preferred Stock | $ 400,000 | |||||
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ 6 | $ 6 | $ 6 | |||
Preferred Stock, Convertible, Conversion Price (in Dollars per share) | 2 | 2 | $ 2 | |||
Dividend Payment Restrictions Schedule, Description | The holder of shares of the Series B Preferred shall be entitled to receive dividends out of any assets legally available, to the extent permitted by New Jersey law, at an annual rate equal to 8% of the Series B Stated Value of such shares of Series B Preferred, calculated on the basis of a 360 day year, consisting of twelve 30-day months, and shall accrue from the date of issuance of such shares of Series B Preferred, payable quarterly in cash. | |||||
Preferred Stock, Dividend Rate, Percentage | 8% | 8% | ||||
Dividends, Preferred Stock | $ 1,334 | |||||
Series C Preferred Stock [Member] | ||||||
Stockholder's Equity (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 53,500 | |||||
Proceeds from Issuance of Convertible Preferred Stock | $ 321,000 | |||||
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | 6 | 6 | $ 6 | |||
Preferred Stock, Convertible, Conversion Price (in Dollars per share) | $ 2 | $ 2 | $ 2 | |||
Dividend Payment Restrictions Schedule, Description | The holder of shares of the Series C Preferred shall be entitled to receive dividends out of any assets legally available, to the extent permitted by New Jersey law, at an annual rate equal to 8% of the Series C Stated Value of such shares of Series C Preferred, calculated on the basis of a 360 day year, consisting of twelve 30-day months, and shall accrue from the date of issuance of such shares of Series c Preferred, payable quarterly in cash. | |||||
Preferred Stock, Dividend Rate, Percentage | 8% | 8% | ||||
Dividends, Preferred Stock | $ 1,375 | |||||
Director [Member] | ||||||
Stockholder's Equity (Details) [Line Items] | ||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 171,000 | |||||
Investor [Member] | ||||||
Stockholder's Equity (Details) [Line Items] | ||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 150,000 |
Stock Options Plans (Details)
Stock Options Plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 18, 2017 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Stock Options Plans (Details) [Line Items] | ||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | ||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 250,000 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 12,451 | $ 12,451 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 7 months 9 days | |||||
Share-Based Payment Arrangement, Expense | $ 1,943 | $ 6,234 | $ 5,214 | $ 12,469 | ||
Share-Based Payment Arrangement, Option [Member] | ||||||
Stock Options Plans (Details) [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Terms of Award | 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. | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 5 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights | Options 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, Number of Shares Available for Grant (in Shares) | 151,000 | 151,000 |
Stock Options Plans (Details) -
Stock Options Plans (Details) - Share-based Payment Arrangement, Option, Activity - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
Share Based Payment Arrangement Option Activity Abstract | ||
Outstanding, Number of Options | 99,000 | |
Outstanding, Average Exercise Price | $ 3.13 | |
Outstanding, Average Remaining Contractual Term | 1 year 3 months 10 days | 1 year 9 months 10 days |
Outstanding, Aggregate Intrinsic Value | $ 0 | |
Balance, Number of Options | 75,600 | |
Balance, Average Exercise Price | $ 3.17 | |
Balance, Average Remaining Contractual Term | 9 months 18 days | |
Balance, Aggregate Intrinsic Value | $ 0 | |
Options granted, Average Exercise Price | 0 | |
Options granted, Average Exercise Price | $ 0 | |
Options exercised, Average Exercise Price | 0 | |
Options exercised, Average Exercise Price | $ 0 | |
Options canceled/forfeited, Average Exercise Price | 0 | |
Options canceled/forfeited, Average Exercise Price | $ 0 | |
Outstanding, Number of Options | 99,000 | |
Outstanding, Average Exercise Price | $ 3.13 | |
Outstanding, Aggregate Intrinsic Value | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred Income Tax Assets, Net | $ 2,720,638 | $ 2,627,935 |
Net Loss per Share (Details) -
Net Loss per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic net loss per share computation: | ||||
Net loss | $ (435,153) | $ (477,368) | $ (139,861) | $ (710,237) |
Less: Preferred dividends | (82,708) | (80,000) | (162,708) | (160,000) |
Net loss attributable to common shareholders | (517,861) | (557,368) | (302,569) | (870,237) |
Add: Preferred dividends | 0 | 0 | 0 | 0 |
Diluted net loss attributable to common shareholders | $ (517,861) | $ (557,368) | $ (302,569) | $ (870,237) |
Weighted-average common shares outstanding (in Shares) | 3,255,887 | 3,255,887 | 3,255,887 | 3,255,887 |
Incremental shares attributable to the assumed conversion of preferred stock (in Shares) | 0 | 0 | 0 | 0 |
Total adjusted weighted-average shares (in Shares) | 3,255,887 | 3,255,887 | 3,255,887 | 3,255,887 |
Diluted net loss per share (in Dollars per share) | $ (0.16) | $ (0.17) | $ (0.09) | $ (0.27) |
Net loss per share (in Dollars per share) | $ (0.16) | $ (0.17) | $ (0.09) | $ (0.27) |
Net Loss per Share (Details) _2
Net Loss per Share (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,250,611 | 1,981,278 | 2,250,611 | 1,981,278 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,151,611 | 1,869,778 | 2,151,611 | 1,869,778 |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 99,000 | 111,500 | 99,000 | 111,500 |
Segment Information (Details)
Segment Information (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,565,094 | $ 2,012,758 | $ 4,432,024 | $ 4,266,515 |
Cost of sales | 1,205,610 | 1,459,286 | 2,777,990 | 2,877,858 |
Gross margin | 359,484 | 553,472 | 1,654,034 | 1,388,657 |
Total expenses | 967,888 | 1,157,768 | 1,886,596 | 2,287,738 |
Income (loss) before income taxes | (608,404) | (604,296) | (232,562) | (899,081) |
Avionics Government [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,108,425 | 1,364,876 | 3,086,237 | 2,969,026 |
Cost of sales | 773,358 | 966,980 | 1,759,396 | 1,929,216 |
Gross margin | 335,067 | 397,896 | 1,326,841 | 1,039,810 |
Avionics Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 456,669 | 647,882 | 1,345,787 | 1,297,489 |
Cost of sales | 432,252 | 492,306 | 1,018,594 | 948,642 |
Gross margin | 24,417 | 155,576 | 327,193 | 348,847 |
Avionics Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,565,094 | 2,012,758 | 4,432,024 | 4,266,515 |
Cost of sales | 1,205,610 | 1,459,286 | 2,777,990 | 2,877,858 |
Gross margin | 359,484 | 553,472 | 1,654,034 | 1,388,657 |
Total expenses | 512,603 | 775,789 | 991,950 | 1,470,742 |
Income (loss) before income taxes | (153,119) | (222,317) | 662,084 | (82,085) |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross margin | 0 | 0 | 0 | 0 |
Total expenses | 455,285 | 381,979 | 894,646 | 816,996 |
Income (loss) before income taxes | $ (455,285) | $ (381,979) | $ (894,646) | $ (816,996) |
Litigation (Details)
Litigation (Details) - USD ($) | 6 Months Ended | |
Sep. 15, 2023 | Sep. 30, 2023 | |
Litigation (Details) [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $ 6,559,233 | |
Litigation Settlement, Expense | $ 6,559,233 | |
Litigation Settlement Interest | $ 1,659,233 | |
Aeroflex [Member] | ||
Litigation (Details) [Line Items] | ||
Litigation Settlement, Expense | 6,559,233 | |
Litigation Settlement Interest | $ 1,659,233 |