Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Feb. 14, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | IEH Corp | |
Entity Central Index Key | 0000050292 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-29 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,360,251 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NY | |
Entity File Number | 0-5278 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Mar. 29, 2019 |
CURRENT ASSETS: | ||
Cash | $ 8,191,969 | $ 7,080,126 |
Accounts receivable | 5,776,564 | 3,833,090 |
Inventories | 14,108,916 | 12,021,443 |
Prepaid expenses and other current assets | 271,540 | 534,897 |
Total Current Assets | 28,348,989 | 23,469,556 |
PROPERTY, PLANT AND EQUIPMENT | 2,331,705 | 2,560,607 |
OTHER ASSETS: | ||
Right of use Asset-Leasehold | 158,833 | |
Other assets | 54,489 | 54,489 |
Total Other Assets | 213,322 | 54,489 |
Total Assets | 30,894,016 | 26,084,652 |
CURRENT LIABILITIES: | ||
Accounts payable | 246,706 | 480,012 |
Due to commercial finance company | 381,871 | 334,306 |
Customer advance payments | 348,230 | |
Accrued corporate income taxes | 1,844,650 | 1,676,428 |
Deferred lease liability - net of long term | 165,395 | |
Other current liabilities | 2,025,287 | 977,420 |
Total Current Liabilities | 4,663,909 | 3,816,396 |
Total Liabilities | 4,663,909 | 3,816,396 |
SHAREHOLDERS' EQUITY: | ||
Common stock, $.01 par value; 10,000,000 shares authorized; 2,360,251 shares issued and outstanding at December 31, 2019 and 2,323,468 shares issued and outstanding at March 29, 2019 | 23,603 | 23,235 |
Capital in excess of par value | 5,165,588 | 3,802,672 |
Retained earnings | 21,040,916 | 18,442,349 |
Total Shareholders' Equity | 26,230,107 | 22,268,256 |
Total Liabilities and Shareholders' Equity | $ 30,894,016 | $ 26,084,652 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,360,251 | 2,323,468 |
Common stock, shares outstanding | 2,360,251 | 2,323,468 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | |
Income Statement [Abstract] | ||||
REVENUE, net sales | $ 8,424,657 | $ 5,977,835 | $ 23,542,266 | $ 21,619,017 |
COSTS AND EXPENSES | ||||
Cost of products sold | 5,270,795 | 3,790,188 | 14,143,666 | 12,415,830 |
Selling, general and administrative | 1,469,198 | 985,043 | 4,699,640 | 3,063,345 |
Depreciation | 237,764 | 84,000 | 697,717 | 309,600 |
Total Costs and Expenses | 6,977,757 | 4,859,231 | 19,541,023 | 15,788,775 |
OPERATING INCOME | 1,446,900 | 1,118,604 | 4,001,243 | 5,830,242 |
Other income | 6,025 | 5,417 | 22,899 | 8,579 |
Interest expense | (17,263) | (40,904) | (51,006) | (56,456) |
OTHER INCOME AND (EXPENSE), NET | (11,238) | (35,487) | (28,107) | (47,877) |
INCOME BEFORE INCOME TAXES | 1,435,662 | 1,083,117 | 3,973,136 | 5,782,365 |
PROVISION FOR INCOME TAXES | 587,550 | 294,237 | 1,374,511 | 1,787,896 |
NET INCOME | $ 848,112 | $ 788,880 | $ 2,598,625 | $ 3,994,469 |
BASIC EARNINGS PER SHARE | $ 0.36 | $ 0.34 | $ 1.11 | $ 1.72 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.31 | $ 0.33 | $ 0.99 | $ 1.66 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (in thousands) | 2,349 | 2,323 | 2,334 | 2,321 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - FULLY DILUTED (in thousands) | 2,769 | 2,427 | 2,616 | 2,407 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Total |
Balances, beginning at Mar. 30, 2018 | $ 23,305 | $ 3,767,608 | $ 13,281,573 | $ 17,072,216 |
Balances, beginning, shares at Mar. 30, 2018 | 2,303,468 | |||
Stock based compensation - Amortization of stock options | 26,802 | 26,802 | ||
Exercise of stock option | $ 200 | (200) | ||
Exercise of stock option, shares | 20,000 | |||
Net income | 3,994,469 | 3,994,469 | ||
Balances, ending at Dec. 28, 2018 | $ 23,235 | 3,794,210 | 17,276,042 | 21,093,487 |
Balances, ending, shares at Dec. 28, 2018 | 2,323,468 | |||
Balances, beginning at Sep. 28, 2018 | $ 23,235 | 3,773,004 | 16,487,162 | 20,283,401 |
Balances, beginning, shares at Sep. 28, 2018 | 2,323,468 | |||
Stock based compensation - Amortization of stock options | 21,206 | 21,206 | ||
Net income | 788,880 | 788,880 | ||
Balances, ending at Dec. 28, 2018 | $ 23,235 | 3,794,210 | 17,276,042 | 21,093,487 |
Balances, ending, shares at Dec. 28, 2018 | 2,323,468 | |||
Balances, beginning at Mar. 29, 2019 | $ 23,235 | 3,802,672 | 18,442,348 | $ 22,268,256 |
Balances, beginning, shares at Mar. 29, 2019 | 2,323,468 | 2,323,468 | ||
Stock based compensation - Amortization of stock options | 1,159,284 | $ 1,159,284 | ||
Exercise of stock option | $ 368 | 203,632 | 204,000 | |
Exercise of stock option, shares | 36,783 | |||
Net income | 2,598,568 | 2,598,625 | ||
Balances, ending at Dec. 31, 2019 | $ 23,603 | 5,165,588 | 21,040,916 | $ 26,230,107 |
Balances, ending, shares at Dec. 31, 2019 | 2,360,251 | 2,360,251 | ||
Balances, beginning at Sep. 27, 2019 | $ 23,318 | 4,734,382 | 20,192,804 | $ 24,950,504 |
Balances, beginning, shares at Sep. 27, 2019 | 2,331,751 | |||
Stock based compensation - Amortization of stock options | 260,491 | 260,491 | ||
Exercise of stock option | $ 285 | 170,715 | $ 171,000 | |
Exercise of stock option, shares | 28,500 | 37,783 | ||
Net income | 848,112 | $ 848,112 | ||
Balances, ending at Dec. 31, 2019 | $ 23,603 | $ 5,165,588 | $ 21,040,916 | $ 26,230,107 |
Balances, ending, shares at Dec. 31, 2019 | 2,360,251 | 2,360,251 |
STATEMENTS OF CHANGES IN STOC_2
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) | 9 Months Ended |
Dec. 28, 2018shares | |
Statement of Stockholders' Equity [Abstract] | |
Number of options exercised by surrendering common stock shares | 75,000 |
Number of common stock shares surrendered | 55,000 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 28, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,598,625 | $ 3,994,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 697,717 | 309,600 |
Stock based compensation expense | 1,159,284 | 26,802 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (1,943,474) | 1,517,791 |
Increase in inventories | (2,087,473) | (677,892) |
Increase in excess payments to commercial finance company | 154,960 | |
Decrease in prepaid expenses and other current assets | 263,357 | 373,711 |
Increase in right of use asset leasehold | (158,833) | |
Increase in deferred lease liability | 165,395 | |
Decrease in accounts payable | (233,363) | (535,684) |
Decrease in customer advance payments | (348,230) | |
Increase in other current liabilities | 1,047,867 | 331,196 |
Increase in accrued corporate taxes | 168,221 | 486,330 |
Total adjustments | (1,269,532) | 1,986,814 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,329,093 | 5,981,283 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | (468,815) | (528,088) |
NET CASH USED BY INVESTING ACTIVITIES | (468,815) | (528,088) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Activity from commercial financing company | 47,565 | 228,757 |
Exercise of Options for cash | 204,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 251,565 | 228,757 |
INCREASE IN CASH | 1,111,843 | 5,681,952 |
CASH, beginning of period | 7,080,126 | 1,407,013 |
CASH, end of period | 8,191,969 | 7,088,965 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 48,592 | 54,956 |
Income Taxes | $ 953,365 | $ 694,040 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | Note 1- DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Description of Business The Company designs, develops and manufactures printed circuit connectors for high performance applications. We have also developed a high performance plastic circular connector line. All of our connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We believe we are the only independent producer of HYPERBOLOID printed circuit board connectors in the United States. Our customers consist of Original Equipment Manufacturers (“OEMs”), companies manufacturing medical equipment and distributors who resell our products to OEMs. We sell our products directly and through regional representatives and distributors located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union. The customers we service are in the Military, Aerospace, Space, Medical, Oil & Gas, Industrial, Test Equipment and Commercial Electronics markets. We appear on the Military Qualified Product Listing (“QPL”) to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic (inclusive of aerospace, space, oil & gas, medical & miscellaneous) and military markets were 49.9% and 50.1%, respectively, of the Company’s net sales for the year ended March 29, 2019. Our offering of QPL items has recently been expanded to include additional products. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that the Company can offer under the Military Qualified Product Listing. The Company created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. Basis of Presentation The accompanying unaudited financial statements for the three and nine months ended December 31, 2019 have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. In the opinion of management, these unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2019 and the results of operations and cash flows for the three and nine months then ended. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and nine months ended December 31, 2019, are not necessarily indicative of the results to be expected for any subsequent quarter or the entire fiscal year. The balance sheet at March 29, 2019 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes, however, that the disclosures in this report are adequate to make the information presented not misleading in any material respect. The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto of IEH Corporation for the fiscal year ended March 29, 2019 included in the Company’s Annual Report on Form 10-K as filed with the SEC on July 12, 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounting Period: On February 11, 2020, the Audit Committee of the Board of Directors of the Company adopted a resolution approving a change in the fiscal year end from a 52-53 week year ending on the last Friday of March to a calendar year ending on March 31. In addition, each applicable fiscal quarter, which previously ended on the last Friday of each of June, September, December and March would now, beginning with the third fiscal quarter ending on December 31, 2019, change to a calendar fiscal quarter ending on June 30, September 30, December and March 31, respectively. Accordingly, the Company’s current calendar year will end on March 31, 2020 and thereafter each March 31. The Company does not intend to adjust operating results for prior periods. Correction of an Immaterial Misstatement in a Prior Period Financial Statement: During the third quarter of 2019, the Company identified certain adjustments required to correct and disclose stock based compensation expense related to an option that was granted to its President and Chief Executive Officer on July 29, 2019. The Company had omitted the disclosure and expense related to this option. This omission resulted in an understatement of selling, general and administrative expense of $884,667 for the three and six months ended September 27, 2019, and overstatement of income tax expense by $396,911 for the three and six months ended September 27, 2019 and an overstatement of net income by $487,756 for the three and six months ended September 27, 2019. Based on an analysis of Accounting Standards Codification (“ASC”) 250 – “Accounting Changes and Error Corrections” (“ASC 250”), Staff Accounting Bulletin 99 – “Materiality” (“SAB 99”) and Staff Accounting Bulletin 108 – “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”), the Company determined that these errors were immaterial to the previously issued financial statements, and as such no restatement was necessary. Correcting prior period financial statements for immaterial errors would not require previously filed reports to be amended. Such correction may be made the next time the registrant files the prior period financial statements. Accordingly, the misstatements were corrected during the period ended December 31, 2019 in the accompanying balance sheet as of December 31, 2019 and statements of operations for the nine months ended December 31, 2019. The effect of these revisions on the Company’s balance sheet as of September 27, 2019 is as follows: As previously Adjustment – As revised at Accrued corporate income taxes 2,747,407 396,911 2,350,496 Capital in excess of par value 3,849,715 (884,667 ) 4,734,382 Retained Earnings 20,680,560 487,756 20,192,804 Revenue Recognition: In May 2014, the Financial Accounting Standards Board issued ASC 606 “Revenue from Contracts with Customers” that, as amended on August 12, 2015, became effective for annual report periods beginning after December 15, 2017. The core principle underlying ASC 606, is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASC 606-10-05-4 sets out the following steps for an entity to follow when applying the core principle to its revenue generating transactions: · Identify the contract with a customer · Identify the performance obligations in the contract · Determine the transaction price · Allocate the transaction price to the performance obligations · Recognize revenue when (or as) each performance obligation is satisfied The Company’s disaggregated revenue, as of December 31, 2019 and December 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months ended December 31, 2019 December 28, 2018 December 31, 2019 December 28, 2018 Domestic $ 6,908,219 $ 4,901,825 $ 19,304,658 $ 17,727,594 International 1,516,438 1,076,010 4,237,608 3,891,423 Total $ 8,424,657 $ 5,977,835 $ 23,542,266 $ 21,619,017 The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has not had an issue with uncollectible accounts receivable. The Company will accept a return of defective products within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost, will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of product. The Company provides engineering services as part of the relationship with its customers in developing custom products. The Company is not obligated to provide such engineering service to its customers. The Company does not invoice its customers separately for these services. Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. The Company does maintain cash balances in excess of insured limits. Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization accounts. Any gain or loss thereon is either credited or charged to operations. Earnings Per Share: The Company accounts for earnings per share pursuant to ASC Topic 260, “Earnings per Share”, which requires disclosure on the Financial Statements of “basic” and “diluted” earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the year. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options for each year. As the Company reported net income for both the three months and nine months ended December 31, 2019 and December 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Nine months Nine months NET INCOME $ 848,112 $ 788,880 $ 2,598,625 $ 3,994,469 BASIC EARNINGS PER COMMON SHARE $ 0.36 $ 0.34 $ 1.11 $ 1.72 FULLY DILUTED EARNINGS PER SHARE $ 0.31 $ 0.33 $ 0.99 $ 1.66 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,348,718 2,323,468 2,333,573 2,320,632 DILUTIVE EFFECT OF OPTIONS GRANTED 420,448 103,825 282,481 86,568 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-FULLY DILUTED 2,769,166 2,427,293 2,616,054 2,407,200 Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments approximate their fair value due to the relatively short maturity of these instruments. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. The Company utilizes estimates with respect to determining the useful lives of fixed assets, the fair value of stock based instruments as well as in the calculation of inventory obsolescence. Actual amounts could differ from those estimates. Stock Based Compensation Plan: Compensation expense for stock options granted to directors, officers and key employees is based on the fair value of the award on the measurement date, which is the date of the grant. The expense is generally recognized ratably over the vesting period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other stock awards is generally the market price of the Company’s common stock on the date of the grant. Leases: ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The classification is based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Accordingly, we have adopted ASC 2016-02 as of March 30, 2019. On our balance sheet operating leases are reported as operating lease right-of-use (“ROU”) assets and deferred lease liabilities. ROU assets represent our right to use an underlying asset for the lease term and deferred lease liabilities represent our obligation to make lease payments over time arising from the lease. Operating lease ROU assets and deferred lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our contracted leases do not provide an implicit rate, we do use an incremental borrowing rate based on the information available at the transition date and commencement date in determining the present value of lease payments. This is the rate that we would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company leases space for its corporate offices and its manufacturing facility located at 140 58 th Presented below are the balances of the ROU asset and the corresponding deferred lease liability and resultant amortization as of December 31, 2019 and March 30, 2019. The present value of the ROU was calculated using an interest rate of six (6%) percent. ROU Asset Deferred Lease Liability Amortization December 31, 2019 $ 158,833 $ 165,395 $ 143,124 March 30, 2019 301,957 301,957 — Future lease commitments as of December 31, 2019 were as follows: Fiscal year 2020 (3 months) $ 48,180 2021 128,480 Total lease commitments $ 176,660 |
INVENTORIES_
INVENTORIES: | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Note 3- INVENTORIES: Inventories were comprised of the following as of: December 31, March 29, 2019 2019 Raw materials $ 10,941,582 $ 7,053,896 Work in progress 2,739,934 2,797,006 Finished goods 427,400 2,170,541 $ 14,108,916 $ 12,021,443 The Company recognized $162,000 for the nine months ended December 31, 2019 and December 28, 2018, respectively, as a reduction of inventory due to obsolescence. The Company recognized $54,000 for the three months ended December 31, 2019 and December 28, 2018, respectively, as a reduction of inventory due to obsolescence. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS: | 9 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | Note 4- PREPAID EXPENSES AND OTHER CURRENT ASSETS: Prepaid expenses and other current assets were comprised of the following as of: December 31, March 29, 2019 2019 Prepaid insurance $ 32,587 $ 106,801 Prepaid payroll liabilities 232,605 289,311 Other prepaid expenses and Other Current Assets 6,348 138,785 $ 271,540 $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 5- PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment were comprised of the following as of: December 31, March 29, 2019 2019 Computers $ 536,409 $ 502,723 Leasehold improvements 988,024 934,648 Machinery and equipment 6,826,425 6,657,875 Tools and dyes 4,212,909 3,999,705 Furniture and fixture 179,071 179,072 Website development cost 9,785 9,785 12,752,623 12,283,808 Less: accumulated depreciation and amortization (10,420,918 ) (9,723,201 ) $ 2,331,705 $ 2,560,607 Depreciation expense for the nine months ended December 31, 2019 and December 28, 2018 was $697,717 and $309,600, respectively. Depreciation expense for the three months ended December 31, 2019 and December 28, 2018 was $237,764 and $84,000, respectively. |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: | 9 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE FINANCING | Note 6- ACCOUNTS RECEIVABLE FINANCING: The Company has an accounts receivable financing agreement with a non-bank lending institution (“Financing Company”), whereby it can borrow up to 80 percent of its eligible receivables (as defined in the financing agreement) at an interest rate of 2.5% above JP Morgan Chase’s publicly announced rate with a minimum rate of 6% per annum. The financing agreement has an initial term of one year and will automatically renew for successive one-year terms, unless terminated by the Company or its lender upon receiving 60 days’ prior notice. Funds advanced by the Financing Company are secured by IEH’s accounts receivable. As of December 31, 2019, the Company reported a liability to its Financing Company of $381,871, and at March 29, 2019, the Company had reported a liability to its Financing Company of $334,306. |
OTHER CURRENT LIABILITIES_
OTHER CURRENT LIABILITIES: | 9 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | Note 7- OTHER CURRENT LIABILITIES: Other current liabilities were comprised of the following as of: December 31, March 29, 2019 2019 Payroll and vacation accruals $ 775,492 $ 831,187 Due to Commercial Finance Company 1,173,359 — Sales commissions 67,637 80,553 Other current liabilities 8,799 65,680 $ 2,025,287 $ 977,420 |
2011 EQUITY INCENTIVE PLAN_
2011 EQUITY INCENTIVE PLAN: | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
2011 EQUITY INCENTIVE PLAN | Note 8- 2011 EQUITY INCENTIVE PLAN: The Company established a stock based compensation plan in 2011. As of December 31, 2019, the total authorized stock based instruments (including stock options) was 750,000 and 255,000 stock based instruments (including stock options) remain available for future issuance. On July 29, 2019, the Board of Directors granted David Offerman, the Company’s President and Chief Executive Officer an option to purchase 225,000 shares of the Company’s common stock under the 2011 Equity Incentive Plan, in connection with his employment agreement dated as of July 29, 2019. (See Note 2 – Correction of an Immaterial Misstatement in a Prior Period Financial Statement). The option has an exercise price of $20.00 per share, expires ten years from the date of grant, and vests in three equal annual installments of 75,000 options each, with the first vesting installment occurring on the date of grant. The option had a fair value on the date of grant of $2,274,858. The Company determined the fair value of the stock option grant based upon the assumptions as provided below: For the Nine Months Ended December 31, 2019 Stock price $ 20.00 Exercise price $ 20.00 Dividend yield 0% Expected volatility 55% Risk-Free interest rate, per annum 1.69% Expected life (in years) 5.50 The following table summarizes the option activity for the nine months ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at March 29, 2019 185,000 $ 6.05 $ 6.05 7.75 $ 1,832 Granted 10,000 13.00 13.00 Granted 225,000 20.00 20.00 Exercised (37,783 ) 6.00 6.00 Outstanding at December 31, 2019 382,217 $ 14.50 $ 14.50 8.09 $ 3,250 Exercisable at December 31, 2019 230,217 $ 6.51 $ 6.51 8.09 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock at December 31, 2019. As of December 31, 2019 there was a total of $1,200,620 of unrecognized compensation expense related to unamortized stock options. This cost is expected to be recognized through 2021 over a weighted average period of 1.59 years. The Company’s stock based compensation expense was $260,491 and $1,159,284 during the three and nine months ended December 31, 2019 and $21,206 and $26,802 during the three and nine months ended December 28, 2018. During the quarter ended September 27, 2019, three individuals opted to exercise some of their options, including 3,783 of such options exercised by the Company’s Chief Executive Officer by means of a cashless exercise using 1,000 previously issued shares of the Company’s common stock. During the quarter ended December 31, 2019, five individuals opted to exercise some of their options. Consequently, the issued and outstanding number of shares of the Company’s common stock increased by 28,500 shares to 2,360,251 shares. During the quarter ended December 31, 2019, 10,000 options were granted to a senior employee of the Company. For the nine months ended December 31, 2019, a total of 235,000 options were granted including 225,000 options granted to the Company’s Chief Executive Officer. |
CASH BONUS PLAN_
CASH BONUS PLAN: | 9 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
CASH BONUS PLAN | Note 9- CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (“Cash Bonus Plan”) for non-union, management and administrative staff. Contributions to the Cash Bonus Plan are made by the Company only when the Company is profitable for the fiscal year. The Company accrued a contribution of $81,000 for each of the three months ended December 31, 2019 and December 28, 2018. The Company accrued a contribution provision of $243,000 for the nine months ended December 31, 2019 and the nine months ended December 28, 2018. |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 10- COMMITMENTS AND CONTINGENCIES: The Company has a collective bargaining multi-employer pension plan (“Multi-Employer Plan”) with the United Auto Workers of America, Local 259 (“UAW”). Contributions are made by the Company in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the Multi-Employer Pension Plan Amendment Act of 1990 (the “1990 Act”), the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these are contingent upon termination, withdrawal, or partial withdrawal from the Multi-Employer Plan. Based upon such Plan’s information and data as of December 31, 2018 furnished to the Company (including, without limitation, unfunded vested benefits, accumulated benefits and net assets), such Plan is fully funded. Based thereupon, the Company’s proportional share of the liability through December 31, 2018 is fully funded. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $9,497 and $13,105 for the three months ended December 31, 2019 and December 28, 2018, respectively, and $36,255 and $50,153 for the nine months ended December 31, 2019 and December 28, 2018, respectively. The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan nor does it intend to do so in the future. |
REVENUE FROM MAJOR CUSTOMERS_
REVENUE FROM MAJOR CUSTOMERS: | 9 Months Ended |
Dec. 31, 2019 | |
REVENUES FROM MAJOR CUSTOMERS [Abstract] | |
REVENUE FROM MAJOR CUSTOMERS | Note 11- REVENUE FROM MAJOR CUSTOMERS: During the three months ended December 31, 2019, two customers accounted for $2,548,988 constituting approximately 30% of the Company’s net sales. One of those customers accounted for approximately 17% of the Company’s net sales while the second customer accounted for approximately 13% of the Company’s net sales. During the three months ended December 28, 2018 one customer accounted for $1,002,255 constituting approximately 17% of the Company’s net sales. During the nine months ended December 31, 2019, three customers accounted for $9,189,430 or approximately 39% of the Company’s net sales. One of those customers accounted for approximately 15% of the Company’s net sales while the second and third customers accounted for approximately 13% and 11% of the Company’s net sales, respectively. During the nine months ended December 28, 2018, three customers accounted for $8,102,144 or approximately 38% of the Company’s net sales. One of the customers accounted for approximately 14% of the Company’s net sales while the second and third customers accounted for approximately 13% and 11% of the Company’s net sales, respectively. As of December 31, 2019, two customers represented approximately 19% and 14%, respectively, of the Company’s account receivables. As of March 29, 2019, one customer represented approximately 24% of the Company’s account receivables. There was no concentration for purchases. |
SUBSEQUENT EVENTS_
SUBSEQUENT EVENTS: | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS: | Note 12- SUBSEQUENT EVENTS: The Company has evaluated all subsequent events through February 14, 2020, the date the financial statements were available to be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure through the date that these financial statements were available to be issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business The Company designs, develops and manufactures printed circuit connectors for high performance applications. We have also developed a high performance plastic circular connector line. All of our connectors utilize the HYPERBOLOID contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We believe we are the only independent producer of HYPERBOLOID printed circuit board connectors in the United States. Our customers consist of Original Equipment Manufacturers (“OEM’s”), companies manufacturing medical equipment and distributors who resell our products to OEMs. We sell our products directly and through regional representatives and distributors located in all regions of the United States, Canada, Israel, India, various Pacific Rim countries, South Korea and the European Union. The customers we service are in the Military, Aerospace, Space, Medical, Oil & Gas, Industrial, Test Equipment and Commercial Electronics markets. We appear on the Military Qualified Product Listing (“QPL”) to MIL-DTL-55302 and supply customer requested modifications to this specification. Sales to the commercial electronic (inclusive of aerospace, space, oil & gas, medical & miscellaneous) and military markets were 49.9% and 50.1%, respectively, of the Company’s net sales for the year ended March 29, 2019. Our offering of QPL items has recently been expanded to include additional products. The standard printed circuit board connectors we produce are continually being expanded and utilized in many of the military programs being built today. We have recently received approval for additional products that the Company can offer under the Military Qualified Product Listing. The Company created many new products that are innovative designs and employ new technologies. The Company continues to be successful because of its ability to assist its customers and create a new design, including engineering drawing packages, in a relatively short period of time. |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements for the three and nine months ended December 31, 2019 have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. In the opinion of management, these unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of December 31, 2019 and the results of operations and cash flows for the three and nine months then ended. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and nine months ended December 31, 2019, are not necessarily indicative of the results to be expected for any subsequent quarter or the entire fiscal year. The balance sheet at March 29, 2019 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes, however, that the disclosures in this report are adequate to make the information presented not misleading in any material respect. The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto of IEH Corporation for the fiscal year ended March 29, 2019 included in the Company’s Annual Report on Form 10-K as filed with the SEC on July 12, 2019. |
Accounting Period: | Accounting Period: On February 11, 2020, the Audit Committee of the Board of Directors of the Company adopted a resolution approving a change in the fiscal year end from a 52-53 week year ending on the last Friday of March to a calendar year ending on March 31. In addition, each applicable fiscal quarter, which previously ended on the last Friday of each of June, September, December and March would now, beginning with the third fiscal quarter ending on December 31, 2019, change to a calendar fiscal quarter ending on June 30, September 30, December and March 31, respectively. Accordingly, the Company’s current calendar year will end on March 31, 2020 and thereafter each March 31. The Company does not intend to adjust operating results for prior periods. |
Correction of an Immaterial Misstatement in a Prior Period Financial Statement: | Correction of an Immaterial Misstatement in a Prior Period Financial Statement: During the third quarter of 2019, the Company identified certain adjustments required to correct and disclose stock based compensation expense related to an option that was granted to its President and Chief Executive Officer on July 29, 2019. The Company had omitted the disclosure and expense related to this option. This omission resulted in an understatement of selling, general and administrative expense of $884,667 for the three and six months ended September 27, 2019, and overstatement of income tax expense by $396,911 for the three and six months ended September 27, 2019 and an overstatement of net income by $487,756 for the three and six months ended September 27, 2019. Based on an analysis of Accounting Standards Codification (“ASC”) 250 – “Accounting Changes and Error Corrections” (“ASC 250”), Staff Accounting Bulletin 99 – “Materiality” (“SAB 99”) and Staff Accounting Bulletin 108 – “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”), the Company determined that these errors were immaterial to the previously issued financial statements, and as such no restatement was necessary. Correcting prior period financial statements for immaterial errors would not require previously filed reports to be amended. Such correction may be made the next time the registrant files the prior period financial statements. Accordingly, the misstatements were corrected during the period ended December 31, 2019 in the accompanying balance sheet as of December 31, 2019 and statements of operations for the nine months ended December 31, 2019. The effect of these revisions on the Company’s balance sheet as of September 27, 2019 is as follows: As previously Adjustment – As revised at Accrued corporate income taxes 2,747,407 396,911 2,350,496 Capital in excess of par value 3,849,715 (884,667 ) 4,734,382 Retained Earnings 20,680,560 487,756 20,192,804 |
Revenue Recognition: | Revenue Recognition: In May 2014, the Financial Accounting Standards Board issued ASC 606 “Revenue from Contracts with Customers” that, as amended on August 12, 2015, became effective for annual report periods beginning after December 15, 2017. The core principle underlying ASC 606, is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASC 606-10-05-4 sets out the following steps for an entity to follow when applying the core principle to its revenue generating transactions: · Identify the contract with a customer · Identify the performance obligations in the contract · Determine the transaction price · Allocate the transaction price to the performance obligations · Recognize revenue when (or as) each performance obligation is satisfied The Company’s disaggregated revenue, as of December 31, 2019 and December 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months ended December 31, 2019 December 28, 2018 December 31, 2019 December 28, 2018 Domestic $ 6,908,219 $ 4,901,825 $ 19,304,658 $ 17,727,594 International 1,516,438 1,076,010 4,237,608 3,891,423 Total $ 8,424,657 $ 5,977,835 $ 23,542,266 $ 21,619,017 The Company does not offer any discounts, credits or other sales incentives. Historically, the Company has not had an issue with uncollectible accounts receivable. The Company will accept a return of defective products within one year from shipment for repair or replacement at the Company’s option. If the product is repairable, the Company at its own cost, will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of product. The Company provides engineering services as part of the relationship with its customers in developing custom products. The Company is not obligated to provide such engineering service to its customers. The Company does not invoice its customers separately for these services. |
Concentration of Credit Risk: | Concentration of Credit Risk: Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained with each financial institution up to $250,000 in the aggregate. The Company does maintain cash balances in excess of insured limits. |
Property, Plant and Equipment: | Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization using the Double Declining Balance method over the estimated useful lives (5-7 years) of the related assets. Maintenance and repair expenditures are charged to operations, and renewals and betterments are capitalized. Items of property, plant and equipment, which are sold, retired or otherwise disposed of, are removed from the asset and accumulated depreciation or amortization accounts. Any gain or loss thereon is either credited or charged to operations. |
Earnings Per Share: | Earnings Per Share: The Company accounts for earnings per share pursuant to ASC Topic 260, “Earnings per Share”, which requires disclosure on the Financial Statements of “basic” and “diluted” earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the year. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options for each year. As the Company reported net income for both the three months and nine months ended December 31, 2019 and December 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Nine months Nine months NET INCOME $ 848,112 $ 788,880 $ 2,598,625 $ 3,994,469 BASIC EARNINGS PER COMMON SHARE $ 0.36 $ 0.34 $ 1.11 $ 1.72 FULLY DILUTED EARNINGS PER SHARE $ 0.31 $ 0.33 $ 0.99 $ 1.66 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,348,718 2,323,468 2,333,573 2,320,632 DILUTIVE EFFECT OF OPTIONS GRANTED 420,448 103,825 282,481 86,568 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-FULLY DILUTED 2,769,166 2,427,293 2,616,054 2,407,200 |
Fair Value of Financial Instruments: | Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments approximate their fair value due to the relatively short maturity of these instruments. |
Use of Estimates: | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. The Company utilizes estimates with respect to determining the useful lives of fixed assets, the fair value of stock based instruments as well as in the calculation of inventory obsolescence. Actual amounts could differ from those estimates. |
Stock Based Compensation Plan: | Stock Based Compensation Plan: Compensation expense for stock options granted to directors, officers and key employees is based on the fair value of the award on the measurement date, which is the date of the grant. The expense is generally recognized ratably over the vesting period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other stock awards is generally the market price of the Company’s common stock on the date of the grant. |
Leases: | Leases: ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The classification is based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Accordingly, we have adopted ASC 2016-02 as of March 30, 2019. On our balance sheet operating leases are reported as operating lease right-of-use (“ROU”) assets and deferred lease liabilities. ROU assets represent our right to use an underlying asset for the lease term and deferred lease liabilities represent our obligation to make lease payments over time arising from the lease. Operating lease ROU assets and deferred lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our contracted leases do not provide an implicit rate, we do use an incremental borrowing rate based on the information available at the transition date and commencement date in determining the present value of lease payments. This is the rate that we would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company leases space for its corporate offices and its manufacturing facility located at 140 58 th Presented below are the balances of the ROU asset and the corresponding deferred lease liability and resultant amortization as of December 31, 2019 and March 30, 2019. The present value of the ROU was calculated using an interest rate of six (6%) percent. ROU Asset Deferred Lease Liability Amortization December 31, 2019 $ 158,833 $ 165,395 $ 143,124 March 30, 2019 301,957 301,957 — Future lease commitments as of December 31, 2019 were as follows: Fiscal year 2020 (3 months) $ 48,180 2021 128,480 Total lease commitments $ 176,660 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Revisions Balance Sheet | The effect of these revisions on the Company’s balance sheet as of September 27, 2019 is as follows: As previously Adjustment – As revised at Accrued corporate income taxes 2,747,407 396,911 2,350,496 Capital in excess of par value 3,849,715 (884,667 ) 4,734,382 Retained Earnings 20,680,560 487,756 20,192,804 |
Schedule of Disaggregated Revenue | The Company’s disaggregated revenue, as of December 31, 2019 and December 28, 2018, respectively, by geographical location is as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months ended December 31, 2019 December 28, 2018 December 31, 2019 December 28, 2018 Domestic $ 6,908,219 $ 4,901,825 $ 19,304,658 $ 17,727,594 International 1,516,438 1,076,010 4,237,608 3,891,423 Total $ 8,424,657 $ 5,977,835 $ 23,542,266 $ 21,619,017 |
Schedule of Basic and Diluted Income Per Share | As the Company reported net income for both the three months and nine months ended December 31, 2019 and December 28, 2018, respectively, basic and diluted income per share are calculated separately as follows: Three months Three months Nine months Nine months NET INCOME $ 848,112 $ 788,880 $ 2,598,625 $ 3,994,469 BASIC EARNINGS PER COMMON SHARE $ 0.36 $ 0.34 $ 1.11 $ 1.72 FULLY DILUTED EARNINGS PER SHARE $ 0.31 $ 0.33 $ 0.99 $ 1.66 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC 2,348,718 2,323,468 2,333,573 2,320,632 DILUTIVE EFFECT OF OPTIONS GRANTED 420,448 103,825 282,481 86,568 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-FULLY DILUTED 2,769,166 2,427,293 2,616,054 2,407,200 |
Schedule of Deferred Lease Liability | Presented below are the balances of the ROU asset and the corresponding deferred lease liability and resultant amortization as of December 31, 2019 and March 30, 2019. The present value of the ROU was calculated using an interest rate of six (6%) percent. ROU Asset Deferred Lease Liability Amortization December 31, 2019 $ 158,833 $ 165,395 $ 143,124 March 30, 2019 301,957 301,957 — |
Schedule of Future Lease Commitments | Future lease commitments as of December 31, 2019 were as follows: Fiscal year 2020 (3 months) $ 48,180 2021 128,480 Total lease commitments $ 176,660 |
INVENTORIES_ (Tables)
INVENTORIES: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories were comprised of the following as of: December 31, March 29, 2019 2019 Raw materials $ 10,941,582 $ 7,053,896 Work in progress 2,739,934 2,797,006 Finished goods 427,400 2,170,541 $ 14,108,916 $ 12,021,443 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets were comprised of the following as of: December 31, March 29, 2019 2019 Prepaid insurance $ 32,587 $ 106,801 Prepaid payroll liabilities 232,605 289,311 Other prepaid expenses and Other Current Assets 6,348 138,785 $ 271,540 $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment were comprised of the following as of: December 31, March 29, 2019 2019 Computers $ 536,409 $ 502,723 Leasehold improvements 988,024 934,648 Machinery and equipment 6,826,425 6,657,875 Tools and dyes 4,212,909 3,999,705 Furniture and fixture 179,071 179,072 Website development cost 9,785 9,785 12,752,623 12,283,808 Less: accumulated depreciation and amortization (10,420,918 ) (9,723,201 ) $ 2,331,705 $ 2,560,607 |
OTHER CURRENT LIABILITIES_ (Tab
OTHER CURRENT LIABILITIES: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities were comprised of the following as of: December 31, March 29, 2019 2019 Payroll and vacation accruals $ 775,492 $ 831,187 Due to Commercial Finance Company 1,173,359 — Sales commissions 67,637 80,553 Other current liabilities 8,799 65,680 $ 2,025,287 $ 977,420 |
2011 EQUITY INCENTIVE PLAN_ (Ta
2011 EQUITY INCENTIVE PLAN: (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Grants | The Company determined the fair value of the stock option grant based upon the assumptions as provided below: For the Nine Months Ended December 31, 2019 Stock price $ 20.00 Exercise price $ 20.00 Dividend yield 0% Expected volatility 55% Risk-Free interest rate, per annum 1.69% Expected life (in years) 5.50 |
Schedule of Option Activity | The following table summarizes the option activity for the nine months ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at March 29, 2019 185,000 $ 6.05 $ 6.05 7.75 $ 1,832 Granted 10,000 13.00 13.00 Granted 225,000 20.00 20.00 Exercised (37,783 ) 6.00 6.00 Outstanding at December 31, 2019 382,217 $ 14.50 $ 14.50 8.09 $ 3,250 Exercisable at December 31, 2019 230,217 $ 6.51 $ 6.51 8.09 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: (Details) - Sales Revenue, Net [Member] | 12 Months Ended |
Mar. 29, 2019 | |
Commercial Electronic Markets [Member] | |
Percentage of sales | 49.90% |
Military Markets [Member] | |
Percentage of sales | 50.10% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Narrative) (Details) | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | |
Number of days in fiscal period | 366 days |
FDIC coverage of deposits | $ 250,000 |
Property, Plant and Equipment Other Types [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property plant and equipment | 5 years |
Property, Plant and Equipment Other Types [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property plant and equipment | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Revisions Balance Sheet) (Details) - USD ($) | Dec. 31, 2019 | Sep. 27, 2019 | Mar. 29, 2019 |
Cash and Cash Equivalents [Line Items] | |||
Accrued corporate income taxes | $ 1,844,650 | $ 1,676,428 | |
Capital in excess of par value | 5,165,588 | 3,802,672 | |
Retained Earnings | $ 21,040,916 | $ 18,442,349 | |
As previously reported [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Accrued corporate income taxes | $ 2,747,407 | ||
Capital in excess of par value | 3,849,715 | ||
Retained Earnings | 20,680,560 | ||
Adjustment - debit/(credit) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Accrued corporate income taxes | 396,911 | ||
Capital in excess of par value | (884,667) | ||
Retained Earnings | 487,756 | ||
As revised [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Accrued corporate income taxes | 2,350,496 | ||
Capital in excess of par value | 4,734,382 | ||
Retained Earnings | $ 20,192,804 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Disaggregated Revenue) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 8,424,657 | $ 5,977,835 | $ 23,542,266 | $ 21,619,017 |
Domestic Country [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 6,908,219 | 4,901,825 | 19,304,658 | 17,727,594 |
International Country [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 1,516,438 | $ 1,076,010 | $ 4,237,608 | $ 3,891,423 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Basic and Diluted Income Per Share) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | |
Accounting Policies [Abstract] | ||||
NET INCOME | $ 848,112 | $ 788,880 | $ 2,598,625 | $ 3,994,469 |
BASIC EARNINGS PER COMMON SHARE | $ 0.36 | $ 0.34 | $ 1.11 | $ 1.72 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.31 | $ 0.33 | $ 0.99 | $ 1.66 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-BASIC | 2,349,000 | 2,323,000 | 2,334,000 | 2,321,000 |
DILUTIVE EFFECT OF OPTIONS GRANTED | 420,448 | 103,825 | 282,481 | 86,568 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-FULLY DILUTED | 2,769,000 | 2,427,000 | 2,616,000 | 2,407,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Deferred Lease Liability) (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 29, 2019 |
Accounting Policies [Abstract] | |||
Interest rate percentage to calculate present value | 6.00% | 6.00% | |
Right of use Asset-Leasehold | $ 158,833 | $ 301,957 | |
Deferred Lease Liability | 165,395 | 301,957 | |
Leases Amortization | $ 143,124 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Schedule of Future Lease Commitments) (Details) | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
2020 (3 months) | $ 48,180 |
2021 | 128,480 |
Total lease commitments | $ 176,660 |
INVENTORIES_ (Details)
INVENTORIES: (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | Mar. 29, 2019 | |
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 10,941,582 | $ 10,941,582 | $ 7,053,896 | ||
Work in progress | 2,739,934 | 2,739,934 | 2,797,006 | ||
Finished goods | 427,400 | 427,400 | 2,170,541 | ||
Inventories | 14,108,916 | 14,108,916 | $ 12,021,443 | ||
Reduction of inventory due to obsolescence | $ 54,000 | $ 54,000 | $ 162,000 | $ 162,000 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Details) - USD ($) | Dec. 31, 2019 | Mar. 29, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 32,587 | $ 106,801 |
Prepaid payroll liabilities | 232,605 | 289,311 |
Other prepaid expenses and Other Current Assets | 6,348 | 138,785 |
Prepaid expenses and other current assets | $ 271,540 | $ 534,897 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT: (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | Mar. 29, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 12,752,623 | $ 12,752,623 | $ 12,283,808 | ||
Less: accumulated depreciation and amortization | (10,420,918) | (10,420,918) | (9,723,201) | ||
Property, Plant and Equipment, Net | 2,331,705 | 2,331,705 | 2,560,607 | ||
Depreciation expense | 237,764 | $ 84,000 | 697,717 | $ 309,600 | |
Computers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 536,409 | 536,409 | 502,723 | ||
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 988,024 | 988,024 | 934,648 | ||
Machinery and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 6,826,425 | 6,826,425 | 6,657,875 | ||
Tools and dies [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 4,212,909 | 4,212,909 | 3,999,705 | ||
Furniture and fixture [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 179,071 | 179,071 | 179,072 | ||
Website development cost [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 9,785 | $ 9,785 | $ 9,785 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: (Narrative) (Details) - Accounts Receivable Financing Agreement [Member] - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Mar. 29, 2019 | |
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 | $ 381,871 | $ 334,306 |
OTHER CURRENT LIABILITIES_ (Det
OTHER CURRENT LIABILITIES: (Details) - USD ($) | Dec. 31, 2019 | Mar. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and vacation accruals | $ 775,492 | $ 831,187 |
Due to Commercial Finance Company | 1,173,359 | |
Sales commissions | 67,637 | 80,553 |
Other current liabilities | 8,799 | 65,680 |
Total other current liabilities | $ 2,025,287 | $ 977,420 |
2011 EQUITY INCENTIVE PLAN_ (Na
2011 EQUITY INCENTIVE PLAN: (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 29, 2019 | Dec. 31, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | Mar. 29, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options granted | 10,000 | ||||||
Options exrecise price | $ 14.50 | $ 6.05 | $ 14.50 | ||||
Unrecognized stock-based compensation expense | $ 1,200,620 | $ 1,200,620 | |||||
Unrecognized stock-based compensation expense weighted average period | 1 year 7 months 2 days | ||||||
Stock based compensation expense | $ 260,491 | $ 21,206 | $ 1,159,284 | $ 26,802 | |||
Options exercised by Chief Executive Officer using cashless exercise | 37,783 | ||||||
Number of shares increase in issued and outstanding | 28,500 | ||||||
Common stock, shares issued | 2,360,251 | 2,360,251 | 2,323,468 | ||||
2011 Equity Incentive Plan [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options granted | 235,000 | ||||||
2011 Equity Incentive Plan [Member] | President and Chief Executive Officer [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options granted | 225,000 | ||||||
Options exrecise price | $ 20 | ||||||
Options expiration period | 10 years | ||||||
Options vested in three equal annual installments | 75,000 | ||||||
Options fair value | $ 2,274,858 | ||||||
2011 Equity Incentive Plan [Member] | Senior employee [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options granted | 10,000 | ||||||
2011 Equity Incentive Plan [Member] | Chief Executive Officer [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options granted | 225,000 | ||||||
2011 Equity Incentive Plan [Member] | Three individuals [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options exercised by Chief Executive Officer using cashless exercise | 3,783 | ||||||
Previously issued shares | 1,000 | ||||||
2011 Equity Incentive Plan [Member] | Authorized stock based instruments (including stock options) [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options remain available for future issuance | 750,000 | 750,000 | |||||
2011 Equity Incentive Plan [Member] | Stock based instruments (including stock options) [Member] | |||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||
Options remain available for future issuance | 255,000 | 255,000 |
2011 EQUITY INCENTIVE PLAN_ (Sc
2011 EQUITY INCENTIVE PLAN: (Schedule of Stock Option Grants) (Details) | 9 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Stock price | $ 20 |
Exercise price | $ 20 |
Dividend yield | 0.00% |
Expected volatility | 55.00% |
Risk-Free interest rate, per annum | 1.69% |
Expected life (in years) | 5 years 6 months |
2011 EQUITY INCENTIVE PLAN_ (Op
2011 EQUITY INCENTIVE PLAN: (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 29, 2019 | |
Number of Shares | ||
Outstanding at March 29, 2019 | 185,000 | |
Granted | 10,000 | |
Granted | 225,000 | |
Exercised | (37,783) | |
Outstanding at December 31, 2019 | 382,217 | |
Exercisable at December 31, 2019 | 230,217 | |
Weighted Average Exercise Price | ||
Outstanding at March 29, 2019 | $ 6.05 | |
Granted | 13 | |
Granted | 20 | |
Exercised | 6 | |
Outstanding at December 31, 2019 | 14.50 | |
Exercisable at December 31, 2019 | 6.51 | |
Weighted Average Grant Date Fair Value | ||
Outstanding at March 29, 2019 | 6.05 | |
Granted | 13 | |
Granted | 20 | |
Exercised | 6 | |
Outstanding at December 31, 2019 | 14.50 | |
Exercisable at December 31, 2019 | $ 6.51 | |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding | 8 years 1 month 2 days | 7 years 9 months |
Exercisable at December 31, 2019 | 8 years 1 month 2 days | |
Aggregate Intrinsic Value | ||
Outstanding at March 29, 2019 | $ 1,832 | |
Outstanding at December 31, 2019 | $ 3,250 |
CASH BONUS PLAN_ (Narrative) (D
CASH BONUS PLAN: (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | |
Compensation Related Costs [Abstract] | ||||
Cash Bonus Plan, contribution | $ 81,000 | $ 81,000 | $ 243,000 | $ 243,000 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Pension plan contributions | $ 9,497 | $ 13,105 | $ 36,255 | $ 50,153 |
REVENUE FROM MAJOR CUSTOMERS_ (
REVENUE FROM MAJOR CUSTOMERS: (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 28, 2018 | Dec. 31, 2019 | Dec. 28, 2018 | Mar. 29, 2019 | |
Revenue derived from customers | $ 8,424,657 | $ 5,977,835 | $ 23,542,266 | $ 21,619,017 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Concentration risk | 30.00% | 17.00% | 39.00% | 38.00% | |
Revenue derived from customers | $ 2,548,988 | $ 1,002,255 | $ 9,189,430 | $ 8,102,144 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | |||||
Concentration risk | 17.00% | 15.00% | 14.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Major Customer Two [Member] | |||||
Concentration risk | 13.00% | 13.00% | 13.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Major Customer Three [Member] | |||||
Concentration risk | 11.00% | 11.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | |||||
Concentration risk | 19.00% | 24.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer Two [Member] | |||||
Concentration risk | 14.00% |