Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 29, 2017 | Sep. 23, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | IEH CORPORATION | ||
Entity Central Index Key | 50,292 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Is Entity a Well-known Seasoned Issuer | No | ||
Is Entity a Voluntary Filer | No | ||
Is Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 6,611,413.85 | ||
Entity Common Stock, Shares Outstanding | 2,303,468 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
CURRENT ASSETS: | ||
Cash | $ 1,210,761 | $ 1,753,749 |
Accounts receivable, less allowances for doubtful accounts of $11,562 at March 31, 2017 and March 25, 2016 | 3,107,670 | 2,212,508 |
Inventories (Note 2) | 8,685,988 | 7,250,300 |
Excess payments to accounts receivable factor (Note 5) | 191,430 | 186,114 |
Prepaid expenses and other current assets (Note 3) | 1,308,038 | 1,377,868 |
Total Current Assets | 14,503,887 | 12,780,539 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation and amortization of $9,047,324 at March 31, 2017 and $8,603,892 at March 25, 2016 and (Note 4) | 2,019,150 | 1,867,191 |
OTHER ASSETS: | ||
Other assets | 54,451 | 54,361 |
Total Assets | 16,577,488 | 14,702,091 |
CURRENT LIABILITIES: | ||
Accounts payable | 235,187 | 195,831 |
Accrued corporate income taxes | 599,739 | 294,412 |
Other current liabilities (Note 6) | 688,018 | 631,280 |
Total Current Liabilities | 1,522,944 | 1,121,523 |
Total Liabilities | 1,522,944 | 1,121,523 |
STOCKHOLDERS' EQUITY: | ||
Common Stock, $.01 par value; 10,000,000 shares authorized; 2,303,468 shares issued and outstanding at March 31, 2017 and March 25, 2016 | 23,035 | 23,035 |
Capital in excess of par value | 2,744,573 | 2,744,573 |
Retained earnings (Note 8) | 12,286,936 | 10,812,960 |
Total Stockholders' Equity | 15,054,544 | 13,580,568 |
Total Liabilities and Stockholders' Equity | $ 16,577,488 | $ 14,702,091 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 11,562 | $ 11,562 |
Accumulated depreciation and amortization | $ 9,047,324 | $ 8,603,892 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,303,468 | 2,303,468 |
Common stock, shares outstanding | 2,303,468 | 2,303,468 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Income Statement [Abstract] | ||
REVENUE, net sales | $ 20,128,041 | $ 19,358,246 |
COSTS AND EXPENSES: | ||
Cost of products sold | 13,096,955 | 12,831,775 |
Selling, general and administrative | 3,754,803 | 3,047,556 |
Interest expense | 53,094 | 25,193 |
Depreciation and amortization | 443,432 | 331,786 |
Total Costs and Expenses | 17,348,284 | 16,236,310 |
OPERATING INCOME | 2,779,757 | 3,121,936 |
OTHER INCOME | 1,229 | 853 |
INCOME BEFORE INCOME TAXES | 2,780,986 | 3,122,789 |
PROVISION FOR INCOME TAXES | (1,307,010) | (1,432,679) |
NET INCOME | $ 1,473,976 | $ 1,690,110 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE (Note 1) | $ 0.64 | $ 0.73 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (IN THOUSANDS) | 2,303 | 2,303 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Total |
Balances, beginning at Mar. 27, 2015 | $ 23,035 | $ 2,744,573 | $ 9,122,850 | $ 11,890,458 |
Balances, beginning, shares at Mar. 27, 2015 | 2,303,468 | 2,303,468 | ||
Net income | 1,690,110 | $ 1,690,110 | ||
Balances, ending at Mar. 25, 2016 | $ 23,035 | 2,744,573 | 10,812,960 | $ 13,580,568 |
Balances, ending, shares at Mar. 25, 2016 | 2,303,468 | 2,303,468 | ||
Net income | 1,473,976 | $ 1,473,976 | ||
Balances, ending at Mar. 31, 2017 | $ 23,035 | $ 2,744,573 | $ 12,286,936 | $ 15,054,544 |
Balances, ending, shares at Mar. 31, 2017 | 2,303,468 | 2,303,468 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,473,976 | $ 1,690,110 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 443,432 | 331,786 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | (895,162) | 14,199 |
(Increase) in excess payments to accounts receivable factor | (5,316) | (143,073) |
(Increase) in inventories | (1,435,688) | (500,641) |
(Increase) decrease in prepaid expenses and other current assets | 69,829 | (1,023,417) |
(Increase) in other assets | (88) | |
Increase in accounts payable | 39,356 | 57,175 |
Increase in other current liabilities | 56,737 | 1,158 |
Increase in accrued corporate income taxes | 305,327 | 112,478 |
Total adjustments | (1,421,573) | (1,150,335) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 52,403 | 539,775 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | (595,391) | (507,436) |
NET CASH (USED) BY INVESTING ACTIVITIES | (595,391) | (507,436) |
INCREASE (DECREASE) IN CASH | (542,988) | 32,339 |
CASH, beginning of period | 1,753,749 | 1,721,410 |
CASH, end of period | 1,210,761 | 1,753,749 |
Cash paid during the year for: | ||
Interest | 50,809 | 25,193 |
Income Taxes | $ 942,151 | $ 2,327,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Description of Business: The Company designs, develops and manufactures printed circuit connectors for high performance applications. We have also developed a high performance plastic circular connector line. All of our connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We are the only independent producer of HYPERBOLOID in the United States. The Company’s customers consist of OEM’s (Original Equipment Manufacturers), companies manufacturing medical equipment, and distributors who resell the Company’s products to OEMs. The Company sells its products directly and through regional representatives located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union (EU). The customers the Company services are in the Government, Military, Aerospace, Medical, Automotive, Industrial, Test Equipment and Commercial Electronics markets. The Company appears on the Military Qualified Product Listing “QPL” to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic and military markets were 37% and 51%, respectively, of the Company’s net sales for the year ended March 31, 2017. The Company’s offering of “QPL” items has recently been expanded to include additional products. In order to remain competitive, the Company has an internal program to upgrade, add and maintain machinery, review material costs and increase labor force productively. During the fiscal year ended March 31, 2017, we purchased several machines to increase the productivity of certain processes. This will help us meet this goal. Business New Product Development: The Company is sought after by many of its customers to design and manufacture custom connectors. This has created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. We will continue to support our customers to the best of our ability. The circular product line of connectors introduced several years ago for the medical industry continues to be very rewarding for the Company. The line has been expanded to include connector cable assemblies utilizing the circular connectors. A new product line featuring high density connectors is being added to the Company’s product offering. This offering should be available within the next few months. The Company expects the new product line to bring additional revenue. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that we can offer under the Military Qualified Product Listing “QPL.” Accounting Period: The Company maintains an accounting period based upon a 52-53 week year, which ends on the nearest Friday in business days to March 31 st Revenue Recognition: Revenues are recognized at the shipping date of the Company's products. The Company has historically adopted the shipping terms that title to merchandise passes to the customer at the shipping point (FOB Shipping Point). At this juncture, title has passed, the Company has recognized the sale, inventory has been relieved, and the customer has been invoiced. The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has had little or no collection issues with its customer base. The Company’s policy with respect to customer returns and allowances as well as product warranty is as follows: The Company will accept a return of a defective product within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost will repair and return to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of the defective product. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not charge its customers separately for these services. Inventories: Inventories are stated at cost, on an average basis, which does not exceed market value. The Company manufactures products pursuant to specific technical and contractual requirements. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience is made to inventory in recognition of this impairment. Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law on July 21, 2010, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with financial institutions up to $250,000 in the aggregate. As of March 31, 2017, the Company had funds on deposit in the amount of $1,210,761 in one financial institution comprised of the following: Non-interest bearing accounts $ 71,826 Interest bearing account 1,138,935 $ 1,210,761 The Company has not experienced any losses in such accounts and believes its cash balances are not exposed to any significant risk. Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization account. Any gain or loss thereon is either credited or charged to operations. Income Taxes: Deferred income taxes arise from temporary differences resulting from different depreciation methods used for financial and income tax purposes. The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes which includes the provisions of Statement of Financial Accounting Standards (SFAS) No. 109, “Accounting for Income Taxes”. Net Income Per Share: The Company has adopted the provisions of ASC Topic 260, Earnings Per Share which includes the provisions of SFAS No. 128, “Earnings Per Share,” which requires the disclosure of “basic” and “diluted” earnings (loss) per share. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is similar to basic earnings per share except that the weighted average number of common shares outstanding is increased to reflect the dilutive effect of potential common shares, such as those issuable upon the exercise of stock or warrants, as if they had been issued. For the years ended March 31, 2017 and March 25, 2016, respectively, there were no items of potential dilution that would impact on the computation of diluted earnings or loss per share. Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable, accounts payable, and borrowings, approximate their fair value due to the relatively short maturity (three months) of these instruments. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual amounts could differ from those estimates. Impairment of Long-Lived Assets: The Company has adopted the provisions of ASC Topic 360, Property, Plant and Equipment-Impairment or Disposal of Long Lived Assets which includes the provisions of SFAS No. 144, “Accounting For The Impairment of Long-Lived Assets And Long-Lived Assets To Be Disposed Of”, and requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company has adopted SFAS No. 144. There were no long-lived asset impairments recognized by the Company for the years ended March 31, 2017 and March 25, 2016, respectively. Recent Accounting Pronouncements In December 2016, the FASB issued ASU 2016-19; the amendments cover a wide range of topics in the Accounting Standards Codification, including differences between original guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. The adoption of ASU 2016-19 is effective for annual periods, including interim periods, within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the effect of this standard on its financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update are of a similar nature to the items typically addressed in the ASU 2016-19, Technical Corrections and Improvements. The FASB elected to issue a separate update for technical corrections and improvements to Topic 606 as well as other Topics amended by ASU 2014-09 to increase public awareness of the proposals and to expedite improvements to ASU-2014-9. The adoption of ASU 2016-20 is effective from the periods beginning after December 31, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect of this standard on its financial statements. In addition, the Financial Accounting Standards Board (“FASB”) has issued certain accounting standards updates as of March 31, 2017 that will become effective in subsequent periods. The Company believes that none of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during the fiscal years ended March 31, 2017 or March 25, 2016, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time that they become effective. |
INVENTORIES_
INVENTORIES: | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Note 2 - INVENTORIES: Inventories are stated at cost, on the average basis that does not exceed market value. The Company manufactures products pursuant to specific technical and contractual requirements. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience is made to inventory in recognition of this impairment. Inventories are comprised of the following: March 31, March 25, 2017 2016 Raw materials $ 5,263,317 $ 4,844,510 Work in progress 859,558 596,371 Finished goods 2,563,113 1,809,419 $ 8,685,988 $ 7,250,300 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS: | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Note 3 - PREPAID EXPENSES AND OTHER CURRENT ASSETS: Prepaid expenses and other current assets are comprised of the following: March 31, March 25, 2017 2016 Prepaid insurance $ 24,079 $ 22,834 Prepaid corporate taxes 1,282,098 1,345,459 Prepaid other 1,861 9,575 $ 1,308,038 $ 1,377,868 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 4 - PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are as follows: March 31, March 25, 2017 2016 Computers $ 444,184 $ 394,175 Leasehold improvements 878,888 845,589 Machinery and equipment 6,079,401 5,767,672 Tools and dies 3,484,307 3,283,953 Furniture and fixture 170,644 170,644 Website development cost 9,050 9,050 11,066,474 10,471,083 Less: accumulated depreciation and amortization (9,047,324 ) (8,603,892 ) $ 2,019,050 $ 1,867,191 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE FINANCING | Note 5 - ACCOUNTS RECEIVABLE FINANCING: The Company has an accounts receivable financing agreement with a non-bank lending institution (“Factor”) whereby it can borrow up to 80 percent of its eligible receivables (as defined in such financing agreement) at an interest rate of 2 ½% above JP Morgan Chase’s publicly announced rate with a minimum rate of 6% per annum. The financing agreement has an initial term of one year and automatically renews for successive one-year terms, unless terminated by the Company or its lender upon receiving 60 days prior notice. Funds advanced by the Factor are secured by the Company’s accounts receivable and inventories. As of March 31, 2017, the Company reported in the accompanying financial statements, excess payments to the Factor of $191,430 compared to March 25, 2016, when the Company had reported excess payments to the Factor of $186,114. |
OTHER CURRENT LIABILITIES_
OTHER CURRENT LIABILITIES: | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | Note 6 - OTHER CURRENT LIABILITIES: Other current liabilities are comprised of the following: March 31, March 25, 2017 2016 Payroll and vacation accruals $ 598,832 $ 560,995 Sales commissions 85,523 50,357 Insurance 3,663 17,014 Other — 2,914 $ 688,018 $ 631,280 |
INCOME TAXES_
INCOME TAXES: | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 7 - INCOME TAXES: The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes which includes the provisions of SFAS No. 109 (“SFAS 109”). Under SFAS 109, deferred income tax assets or liabilities are computed based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using the currently enacted marginal income tax rates. Deferred income tax expenses or credits are based on the changes in the deferred income tax assets or liabilities from period to period. The provision for income taxes consists of the following: March 31, March 25, 2017 2016 Current: Federal $ 532,892 $ 639,476 State and local 429,785 406,379 Total current tax provision 962,677 1,045,855 Deferred: Federal 262,469 236,519 State and local 81,864 150,305 Total deferred tax benefit 344,333 386,824 Total provision (benefit) $ 1,307,010 $ 1,432,679 The components of the Company’s deferred taxes at March 31, 2017 and March 25, 2016 are as follows: March 31, March 25, 2017 2016 Deferred tax assets: Accounts receivable reserves $ 11,562 $ 11,562 Accrued expenses 332,613 611,355 Prepaid expenses 1,308,038 1,345,459 1,652,213 1,968,376 Deferred tax liabilities: Depreciation (47,341 ) 221,715 Net deferred tax assets before valuation allowance 1,604,872 2,190,091 Valuation allowance (1,604,872 ) (2,190,091 ) Net deferred tax assets $ — $ — The Company has fully utilized its net operating loss carryovers in prior years. The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling net profitable contracts or the failure of the Company’s engineering development efforts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets. A reconciliation of the income tax benefit at the statutory Federal tax rate of 34 % to the income tax benefit recognized in the financial statements is as follows: March 31, March 25, 2017 2016 Income tax expense (benefit) – statutory rate 34 % 34 % Income tax expenses – state and local, net of federal benefit 12 % 12 % Income tax expense (benefit) 46 % 46 % |
CHANGES IN STOCKHOLDERS' EQUITY
CHANGES IN STOCKHOLDERS' EQUITY: | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
CHANGES IN STOCKHOLDERS' EQUITY | Note 8 - CHANGES IN STOCKHOLDERS’ EQUITY: Stockholders’ equity increased by $1,473,976 which represented the reported net income for the year ended March 31, 2017. Accordingly, the Company reported accumulated retained earnings of $12,286,936 as of March 31, 2017. |
2011 EQUITY INCENTIVE PLAN_
2011 EQUITY INCENTIVE PLAN: | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
2011 EQUITY INCENTIVE PLAN | Note 9 - 2011 EQUITY INCENTIVE PLAN: On August 31, 2011, the Company’s shareholders approved the adoption of the Company’s 2011 Equity Incentive Plan (“2011 Plan”) to provide for the grant of stock options and restricted stock awards to purchase up to 750,000 shares of the Company’s common stock to all employees, consultants and other eligible participants including senior management and members of the Board of Directors of the Company. The 2011 Plan replaced the prior 2002 Employee Stock Option Plan which had expired in accordance with its terms. Options granted to employees under the 2011 Plan may be designated as options which qualify for incentive stock option treatment under Section 422A of the Internal Revenue Code, or options which do not qualify (non-qualified stock options). Under the 2011 Plan, the exercise price of an option designated as an incentive stock option shall not be less than the fair market value of the Company’s common stock on the day the option is granted. In the event an option designated as an incentive stock option is granted to a ten percent (10%) or greater shareholder, such exercise price shall be at least 110 percent (110%) of the fair market value of the Company’s common stock and the option must not be exercisable after the expiration of ten years from the day of the grant. The 2011 Plan also provides that holders of options that wish to pay for the exercise price of their options with shares of the Company’s common stock must have beneficially owned such stock for at least six months prior to the exercise date. Exercise prices of non-incentive stock options may be less than the fair market value of the Company’s common stock. The aggregate fair market value of shares subject to options granted to a participant(s), which are designated as incentive stock options, and which become exercisable in any calendar year, shall not exceed $100,000. On July 1, 2015, our Board of Directors granted 245,000 options to purchase shares of the Company’s common stock under the 2011 Plan, including, without limitation, as follows: (i) Michael Offerman, our former Chief Executive Officer, was granted 75,000 options; (ii) Robert Knoth, our Chief Financial Officer, was granted 50,000 options; (iii) four non-executive officer key employees were granted an aggregate of 110,000 options including David Offerman (then Vice-President of Sales and Marketing) who was granted 50,000 options; and (iv) each of our non-management directors, Allen Gottlieb and Gerald Chafetz, was granted 5,000 options. The stock options (i) have a ten-year term; (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined under the 2011 Plan, as reported in the OTCBB, on the date of grant ($6.00), except that the options granted to Michael Offerman has an exercise price equal to 110% of such fair market value because he owns ten percent (10%) or greater of the Company’s outstanding common stock; and (iii) were all immediately vested. In the event of the termination of each recipient’s employment by, or association with, the Company (as applicable), the options will remain exercisable in accordance with the terms of the 2011 Plan. Effective July 15, 2016, the Board of Directors of the Company unanimously voted to increase the number of directors from three to six directors and elected David Offerman as a Class II director and Dr. Sonia Marciano and Eric C. Hugel as Class I Directors. Effective August 15, 2016, the Board of Directors also approved the granting of stock options to purchase shares of the Company’s common stock under the 2011 Plan to each of Dr. Marciano and Mr. Hugel as follows: Each of the new non-management directors will receive a grant of options totaling 5,000 shares each subject to the following vesting schedule: (i) 1,000 shares will vest immediately (August 15, 2016); (ii) 2,000 shares will vest on August 15, 2017; and (iii) 2,000 shares will vest on August 15, 2018. The stock options (i) have a ten-year term; and (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined under the 2011 Plan, as reported in the OTCBB, on the date of grant ($5.30). In the event of the termination of each recipient’s association with the Company, the options will remain exercisable in accordance with the terms of the 2011 Plan. The table below summarizes the option awards for the named executive officers and non-management directors: Name Stock Option Grants Michael Offerman * 75,000 David Offerman * 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano** 5,000 Eric Hugel** 5,000 *On March 24, 2017, Michael Offerman died suddenly. On March 26, 2017, the Board of Directors elected David Offerman to the positions of Chairman of the Board, President and Chief Executive Officer of the Company. ** |
CASH BONUS PLAN_
CASH BONUS PLAN: | 12 Months Ended |
Mar. 31, 2017 | |
Compensation Related Costs [Abstract] | |
CASH BONUS PLAN | Note 10 - CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (“Cash Bonus Plan”) for Executive Officers. Contributions to the Bonus Plan are made by the Company only after pre-tax operating profits exceed $150,000 for a fiscal year, and then to the extent of 10% of the excess of the greater of $150,000 or 25% of pre-tax operating profits. For the year ended March 31, 2017, the Company’s contribution was $324,000. For the year ended March 25, 2016, the Company’s contribution was $227,700. |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 11 - COMMITMENTS AND CONTINGENCIES: The Company’s lease term for its manufacturing facility located at 140 58 th Fiscal year ending March: 2018 $ 178,360 2019 183,720 2020 189,200 Thereafter 128,640 $ 679,920 The rental expense for the years ended March 31, 2017 and March 25, 2016, was $173,180 and $162,403, respectively. The Company has a collective bargaining multi-employer pension plan (“Multi-Employer Plan”) with the United Auto Workers of America, Local 259. Contributions are made in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the Multi-Employer Pension Plan Amendments Act of 1990 (the “1990 Act”), the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these liabilities are contingent upon the termination, withdrawal, or partial withdrawal from the Multi-Employer Plan. The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan nor does it intend to do so in the future. Under the 1990 Act, liabilities would be based upon the Company’s proportional share of the Multi-Employer Plan’s unfunded vested benefits, which is currently not available. The amount of accumulated benefits and net assets of such Plan also is not currently available to the Company. The total contributions charged to operations under this pension plan were $134,843 for the year ended March 31, 2017 and $134,036 for the year ended March 25, 2016. |
REVENUES FROM MAJOR CUSTOMERS_
REVENUES FROM MAJOR CUSTOMERS: | 12 Months Ended |
Mar. 31, 2017 | |
REVENUES FROM MAJOR CUSTOMERS [Abstract] | |
REVENUES FROM MAJOR CUSTOMERS | Note 12 - REVENUES FROM MAJOR CUSTOMERS: During the year ended March 31, 2017 five customers accounted for $6,946,000 constituting approximately 34.5% of the Company’s revenues. None of such customers accounted for over 10% of such revenues. During the year ended March 25, 2016 five customers individually accounted for $5,569,000 constituting approximately 29% of the Company’s revenues. Two of such customers accounted for 16% of such revenues. As of March 31, 2017, amounts due from two customers represented approximately 22.31% of the total amount of accounts receivable. Only one customer exceeded 10%. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business New Product Development | Business New Product Development: The Company is sought after by many of its customers to design and manufacture custom connectors. This has created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. We will continue to support our customers to the best of our ability. The circular product line of connectors introduced several years ago for the medical industry continues to be very rewarding for the Company. The line has been expanded to include connector cable assemblies utilizing the circular connectors. A new product line featuring high density connectors is being added to the Company’s product offering. This offering should be available within the next few months. The Company expects the new product line to bring additional revenue. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that we can offer under the Military Qualified Product Listing “QPL.” |
Accounting Period | Accounting Period: The Company maintains an accounting period based upon a 52-53 week year, which ends on the nearest Friday in business days to March 31 st |
Revenue Recognition | Revenue Recognition: Revenues are recognized at the shipping date of the Company's products. The Company has historically adopted the shipping terms that title to merchandise passes to the customer at the shipping point (FOB Shipping Point). At this juncture, title has passed, the Company has recognized the sale, inventory has been relieved, and the customer has been invoiced. The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has had little or no collection issues with its customer base. The Company’s policy with respect to customer returns and allowances as well as product warranty is as follows: The Company will accept a return of a defective product within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost will repair and return to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of the defective product. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not charge its customers separately for these services. |
Inventories | Inventories: Inventories are stated at cost, on an average basis, which does not exceed market value. The Company manufactures products pursuant to specific technical and contractual requirements. The Company historically purchases material in excess of its requirements to avail itself of favorable pricing as well as the possibility of receiving additional orders from customers. This excess may result in material not being used in subsequent periods, which may result in this material being deemed obsolete. The Company annually reviews its purchase and usage activity of its inventory of parts as well as work in process and finished goods to determine which items of inventory have become obsolete within the framework of current and anticipated orders. The Company based upon historical experience has determined that if a part has not been used and purchased or an item of finished goods has not been sold in three years, it is deemed to be obsolete. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost. A periodic adjustment, based upon historical experience is made to inventory in recognition of this impairment. |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law on July 21, 2010, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with financial institutions up to $250,000 in the aggregate. As of March 31, 2017, the Company had funds on deposit in the amount of $1,210,761 in one financial institution comprised of the following: Non-interest bearing accounts $ 71,826 Interest bearing account 1,138,935 $ 1,210,761 The Company has not experienced any losses in such accounts and believes its cash balances are not exposed to any significant risk |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization account. Any gain or loss thereon is either credited or charged to operations. |
Income Taxes | Income Taxes: Deferred income taxes arise from temporary differences resulting from different depreciation methods used for financial and income tax purposes. The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes which includes the provisions of Statement of Financial Accounting Standards (SFAS) No. 109, “Accounting for Income Taxes”. |
Net Income Per Share | Net Income Per Share: The Company has adopted the provisions of ASC Topic 260, Earnings Per Share which includes the provisions of SFAS No. 128, “Earnings Per Share,” which requires the disclosure of “basic” and “diluted” earnings (loss) per share. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is similar to basic earnings per share except that the weighted average number of common shares outstanding is increased to reflect the dilutive effect of potential common shares, such as those issuable upon the exercise of stock or warrants, as if they had been issued. For the years ended March 31, 2017 and March 25, 2016, respectively, there were no items of potential dilution that would impact on the computation of diluted earnings or loss per share. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable, accounts payable, and borrowings, approximate their fair value due to the relatively short maturity (three months) of these instruments. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Actual amounts could differ from those estimates. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company has adopted the provisions of ASC Topic 360, Property, Plant and Equipment-Impairment or Disposal of Long Lived Assets which includes the provisions of SFAS No. 144, “Accounting For The Impairment of Long-Lived Assets And Long-Lived Assets To Be Disposed Of”, and requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company has adopted SFAS No. 144. There were no long-lived asset impairments recognized by the Company for the years ended March 31, 2017 and March 25, 2016, respectively. |
Recent Accounting Pronouncements: | Recent Accounting Pronouncements In December 2016, the FASB issued ASU 2016-19; the amendments cover a wide range of topics in the Accounting Standards Codification, including differences between original guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplification and minor improvements. The adoption of ASU 2016-19 is effective for annual periods, including interim periods, within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the effect of this standard on its financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update are of a similar nature to the items typically addressed in the ASU 2016-19, Technical Corrections and Improvements. The FASB elected to issue a separate update for technical corrections and improvements to Topic 606 as well as other Topics amended by ASU 2014-09 to increase public awareness of the proposals and to expedite improvements to ASU-2014-9. The adoption of ASU 2016-20 is effective from the periods beginning after December 31, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the effect of this standard on its financial statements. In addition, the Financial Accounting Standards Board (“FASB”) has issued certain accounting standards updates as of March 31, 2017 that will become effective in subsequent periods. The Company believes that none of those updates would have significantly affected the Company’s financial accounting measures or disclosures had they been in effect during the fiscal years ended March 31, 2017 or March 25, 2016, and it does not believe that any of those pronouncements will have a significant impact on the Company’s financial statements at the time that they become effective. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of funds on deposit | As of March 31, 2017, the Company had funds on deposit in the amount of $1,210,761 in one financial institution comprised of the following: Non-interest bearing accounts $ 71,826 Interest bearing account 1,138,935 $ 1,210,761 |
INVENTORIES_ (Tables)
INVENTORIES: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories are comprised of the following: March 31, March 25, 2017 2016 Raw materials $ 5,263,317 $ 4,844,510 Work in progress 859,558 596,371 Finished goods 2,563,113 1,809,419 $ 8,685,988 $ 7,250,300 |
PREPAID EXPENSES AND OTHER CU22
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets are comprised of the following: March 31, March 25, 2017 2016 Prepaid insurance $ 24,079 $ 22,834 Prepaid corporate taxes 1,282,098 1,345,459 Prepaid other 1,861 9,575 $ 1,308,038 $ 1,377,868 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment are as follows: March 31, March 25, 2017 2016 Computers $ 444,184 $ 394,175 Leasehold improvements 878,888 845,589 Machinery and equipment 6,079,401 5,767,672 Tools and dies 3,484,307 3,283,953 Furniture and fixture 170,644 170,644 Website development cost 9,050 9,050 11,066,474 10,471,083 Less: accumulated depreciation and amortization (9,047,324 ) (8,603,892 ) $ 2,019,050 $ 1,867,191 |
OTHER CURRENT LIABILITIES_ (Tab
OTHER CURRENT LIABILITIES: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities are comprised of the following: March 31, March 25, 2017 2016 Payroll and vacation accruals $ 598,832 $ 560,995 Sales commissions 85,523 50,357 Insurance 3,663 17,014 Other — 2,914 $ 688,018 $ 631,280 |
INCOME TAXES_ (Tables)
INCOME TAXES: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes consists of the following: March 31, March 25, 2017 2016 Current: Federal $ 532,892 $ 639,476 State and local 429,785 406,379 Total current tax provision 962,677 1,045,855 Deferred: Federal 262,469 236,519 State and local 81,864 150,305 Total deferred tax benefit 344,333 386,824 Total provision (benefit) $ 1,307,010 $ 1,432,679 |
Schedule of components of the Company's deferred taxes | The components of the Company’s deferred taxes at March 31, 2017 and March 25, 2016 are as follows: March 31, March 25, 2017 2016 Deferred tax assets: Accounts receivable reserves $ 11,562 $ 11,562 Accrued expenses 332,613 611,355 Prepaid expenses 1,308,038 1,345,459 1,652,213 1,968,376 Deferred tax liabilities: Depreciation (47,341 ) 221,715 Net deferred tax assets before valuation allowance 1,604,872 2,190,091 Valuation allowance (1,604,872 ) (2,190,091 ) Net deferred tax assets $ — $ — |
Schedule of reconciliation of the income tax benefit | A reconciliation of the income tax benefit at the statutory Federal tax rate of 34 % to the income tax benefit recognized in the financial statements is as follows: March 31, March 25, 2017 2016 Income tax expense (benefit) – statutory rate 34 % 34 % Income tax expenses – state and local, net of federal benefit 12 % 12 % Income tax expense (benefit) 46 % 46 % |
2011 EQUITY INCENTIVE PLAN_ (Ta
2011 EQUITY INCENTIVE PLAN: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Options Awarded to Officers and Directors | The table below summarizes the option awards for the named executive officers and non-management directors: Name Stock Option Grants Michael Offerman * 75,000 David Offerman * 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano** 5,000 Eric Hugel** 5,000 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of basic minimum annual rental payments | The basic minimum annual rentals are as follows: Fiscal year ending March: 2018 $ 178,360 2019 183,720 2020 189,200 Thereafter 128,640 $ 679,920 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Jun. 29, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Number of days in fiscal period | 371 days | 364 days | |
FDIC coverage of deposits | $ 250,000 | ||
Commercial Electronic Markets [Member] | Sales Revenue, Net [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of sales | 37.00% | ||
Military Markets [Member] | Sales Revenue, Net [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of sales | 51.00% | ||
Property, Plant and Equipment Other Types [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property plant and equipment | 5 years | ||
Property, Plant and Equipment Other Types [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property plant and equipment | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Funds on Deposit) (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 | Mar. 27, 2015 |
Cash and Cash Equivalents [Line Items] | |||
Cash | $ 1,210,761 | $ 1,753,749 | $ 1,721,410 |
Non-interest bearing accounts [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash | 71,826 | ||
Interest bearing account [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash | $ 1,138,935 |
INVENTORIES_ (Details)
INVENTORIES: (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,263,317 | $ 4,844,510 |
Work in progress | 859,558 | 596,371 |
Finished goods | 2,563,113 | 1,809,419 |
Inventories | $ 8,685,988 | $ 7,250,300 |
PREPAID EXPENSES AND OTHER CU31
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 24,079 | $ 22,834 |
Prepaid corporate taxes | 1,282,098 | 1,345,459 |
Prepaid other | 1,861 | 9,575 |
Prepaid expenses and other current assets | $ 1,308,038 | $ 1,377,868 |
PROPERTY, PLANT AND EQUIPMENT32
PROPERTY, PLANT AND EQUIPMENT: (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Property, Plant and Equipment, Gross | $ 11,066,474 | $ 10,471,083 |
Less: accumulated depreciation and amortization | (9,047,324) | (8,603,892) |
PROPERTY, PLANT AND EQUIPMENT, NET | 2,019,150 | 1,867,191 |
Computers [Member] | ||
Property, Plant and Equipment, Gross | 444,184 | 394,175 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment, Gross | 878,888 | 845,589 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment, Gross | 6,079,401 | 5,767,672 |
Tools and dies [Member] | ||
Property, Plant and Equipment, Gross | 3,484,307 | 3,283,953 |
Furniture and fixture [Member] | ||
Property, Plant and Equipment, Gross | 170,644 | 170,644 |
Website development cost [Member] | ||
Property, Plant and Equipment, Gross | $ 9,050 | $ 9,050 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Short-term Debt [Line Items] | ||
Excess payments to the Factor | $ 191,430 | $ 186,114 |
Accounts Receivable Financing Agreement [Member] | ||
Short-term Debt [Line Items] | ||
Financing agreement - percentage of eligible receivables that may be borrowed | 80.00% | |
Interest rate above JPMC rate, ceiling | 2.50% | |
Interest rate floor | 6.00% | |
Financing agreement term (years) | 1 year | |
Financing agreement notice (days) | 60 days | |
Excess payments to the Factor | $ 191,430 | $ 186,114 |
OTHER CURRENT LIABILITIES_ (Det
OTHER CURRENT LIABILITIES: (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and vacation accruals | $ 598,832 | $ 560,995 |
Sales commissions | 85,523 | 50,357 |
Insurance | 3,663 | 17,014 |
Other | 2,914 | |
Total other current liabilities | $ 688,018 | $ 631,280 |
INCOME TAXES_ (Provision For In
INCOME TAXES: (Provision For Income Taxes) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 25, 2016 | |
Current: | |||
Federal | $ 532,892 | $ 639,476 | |
State and local | 429,785 | 406,379 | |
Total current tax provision | 962,677 | 1,045,855 | |
Deferred: | |||
Federal | 262,469 | 236,519 | |
State and local | 81,864 | 150,305 | |
Total deferred tax benefit | 344,333 | 386,824 | |
Total provision (benefit) | $ 1,307,010 | $ 1,432,679 | $ 1,432,679 |
INCOME TAXES_ (Components of De
INCOME TAXES: (Components of Deferred Taxes) (Details) - USD ($) | Mar. 31, 2017 | Mar. 25, 2016 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 11,562 | $ 11,562 |
Accrued expenses | 332,613 | 611,355 |
Prepaid expenses | 1,308,038 | 1,345,459 |
Gross deferred tax assets | 1,652,213 | 1,968,376 |
Deferred tax liabilities: | ||
Depreciation | (47,341) | 221,715 |
Net deferred tax assets before valuation allowance | 1,604,872 | 2,190,091 |
Valuation allowance | (1,604,872) | (2,190,091) |
Net deferred tax assets |
INCOME TAXES_ (Reconciliation o
INCOME TAXES: (Reconciliation of Tax Rate) (Details) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) - statutory rate | 34.00% | 34.00% |
Income tax expenses - state and local, net of federal benefit | 12.00% | 12.00% |
Income tax expense (benefit) | 46.00% | 46.00% |
CHANGES IN STOCKHOLDERS' EQUI38
CHANGES IN STOCKHOLDERS' EQUITY: (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Equity [Abstract] | ||
Net income | $ 1,473,976 | $ 1,690,110 |
Retained Earnings Accumulated | $ 12,286,936 | $ 10,812,960 |
2011 EQUITY INCENTIVE PLAN_ (Na
2011 EQUITY INCENTIVE PLAN: (Narrative) (Details) - USD ($) | Jul. 01, 2015 | Mar. 31, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Stock Options and Restricted Stock Awards authorized under 2011 Equity Incentive Plan | 750,000 | |
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | |
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | |
Expiration period from grant date | 10 years | 10 years |
FMV of shares subject to options granted to participants and designated as incentive stock options, maximum amount | $ 100,000 |
2011 EQUITY INCENTIVE PLAN_ (Gr
2011 EQUITY INCENTIVE PLAN: (Grants Under Plan) (Details) - $ / shares | Aug. 15, 2016 | Jul. 15, 2016 | Jul. 01, 2015 | Mar. 31, 2017 | Aug. 15, 2018 | Aug. 15, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 245,000 | ||||||
Expiration period from grant date | 10 years | 10 years | |||||
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | ||||||
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | ||||||
Exercise price | $ 6 | ||||||
Four non-executive officer key employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 110,000 | ||||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Michael Offerman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1] | 75,000 | |||||
Expiration period from grant date | 10 years | ||||||
Incentive stock options, exercise price as compared to fair market value (percent) to majority shareholder | 110.00% | ||||||
Incentive stock options, granted to shareholder holdings (percent) | 10.00% | ||||||
Robert Knoth [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 50,000 | ||||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Gerald Chafetz [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 5,000 | ||||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
Allen Gottlieb [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 5,000 | ||||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 6 | ||||||
David Offerman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [1] | 50,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Sonia Marciano [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [2] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Option vested | 1,000 | ||||||
Sonia Marciano [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option yet to vest | 2,000 | 2,000 | |||||
Eric Hugel [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | [2] | 5,000 | |||||
Expiration period from grant date | 10 years | ||||||
Exercise price | $ 5.30 | ||||||
Option vested | 1,000 | ||||||
Eric Hugel [Member] | Scenario, Forecast [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option yet to vest | 2,000 | 2,000 | |||||
[1] | On March 24, 2017, Michael Offerman died suddenly. On March 26, 2017, the Board of Directors elected David Offerman to the positions of Chairman of the Board, President and Chief Executive Officer of the Company. | ||||||
[2] | Options for 1,000 shares vested, options for 4,000 shares not yet vested. |
CASH BONUS PLAN_ (Narrative) (D
CASH BONUS PLAN: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Compensation Related Costs [Abstract] | ||
Cash Bonus Plan, threshold of pre-tax operating profits | $ 150,000 | |
Cash Bonus Plan, contribution tier 1 | 10.00% | |
Cash Bonus Plan, contribution tier 2 | 25.00% | |
Cash Bonus Plan, contribution | $ 324,000 | $ 227,700 |
COMMITMENTS AND CONTINGENCIES42
COMMITMENTS AND CONTINGENCIES: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 173,180 | $ 162,403 |
Pension plan contributions | $ 134,843 | $ 134,036 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES: (Basic Minimum Annual Rentals) (Details) | Mar. 31, 2017USD ($) |
Future Minimum Rental Payments | |
2,018 | $ 178,360 |
2,019 | 183,720 |
2,020 | 189,200 |
Thereafter | 128,640 |
Total | $ 679,920 |
REVENUES FROM MAJOR CUSTOMERS (
REVENUES FROM MAJOR CUSTOMERS (Narrative) (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Mar. 31, 2017USD ($)Customers | Mar. 25, 2016USD ($)Customers | |
Accounts Receivable [Member] | ||
Concentration risk | 22.31% | |
Number of customers | 2 | |
Accounts Receivable [Member] | Major Customer One [Member] | ||
Concentration risk | 10.00% | |
Sales Revenue, Net [Member] | ||
Concentration risk | 34.50% | 29.00% |
Number of customers | 5 | 5 |
Revenue derived from customers | $ | $ 6,946,000 | $ 5,569,000 |
Sales Revenue, Net [Member] | Major Customer One [Member] | ||
Concentration risk | 16.00% | 16.00% |
Sales Revenue, Net [Member] | Major Customer Two [Member] | ||
Concentration risk | 16.00% | 16.00% |