Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 29, 2019 | Jul. 12, 2019 | Sep. 28, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | IEH CORP | ||
Entity Central Index Key | 0000050292 | ||
Document Type | 10-K/A | ||
Document Period End Date | Mar. 29, 2019 | ||
Amendment Flag | true | ||
Amendment description | We are filing this Amendment No. 1 to Form 10-K (Amendment No. 1) on Form 10-K/A to our Annual Report on Form 10-K for the year ended March 29, 2019 (“Original Form 10-K”), which amends and restates the Original Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on July 12, 2019. The reasons for filing this Amendment No. 1 to Form 10-K on Form 10-K/A are (1) amending the Management’s Report on Internal Control over Financial Reporting to reference the date of 2013 to the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Item 9A. Controls and Procedures; (iii) amending, restating and inserting a new revised Report of Independent Registered Public Accounting Firm that coverage for the fiscal ended March 29, 2019 and March 30, 2018, and (iii) amending, restating and inserting the revised Consent of Manuel Reina, CPA, Registered Independent Accounting Firm to the date of the revised Report. Except as described above, no other changes have been made to the Original Form 10-K, including, without limitation, no changes to the Company’s audited financial statements and accompanying notes for the fiscal year ended March 29, 2019, as set forth in Item 15 of the Original Form 10-K. With this Amendment No. 1 on Form 10-K/A, the principal executive officer and principal financial officer of the Company have reissued their certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, respectively, including in Part IV, Item 15 and attached as Exhibits 31.1, 31.2 and 32.1 to the Amendment No. 1 on Form 10-K/A. | ||
Current Fiscal Year End Date | --03-29 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Is Entity a Well-known Seasoned Issuer | No | ||
Is Entity a Voluntary Filer | No | ||
Is Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | No | ||
Entity Common Stock, Shares Outstanding | 2,323,468 | ||
Entity Public Float | $ 18,108,029 | ||
Entity Incorporation State Country Code | NY | ||
Entity File Number | 0-5278 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 29, 2019 | Mar. 30, 2018 |
CURRENT ASSETS: | ||
Cash | $ 7,080,126 | $ 1,407,013 |
Accounts receivable, less allowances for doubtful accounts of $0 and $11,562 at March 29, 2019 and March 30, 2018, respectively | 3,833,090 | 4,483,011 |
Inventories (Note 2) | 12,021,443 | 10,751,498 |
Excess payments to accounts receivable finance company (Note 5) | 154,960 | |
Prepaid expenses and other current assets (Note 3) | 534,897 | 489,594 |
Total Current Assets | 23,469,556 | 17,286,076 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation and amortization of $9,723,201 at March 29, 2019 and $9,377,361 at March 30, 2018 (Note 4) | 2,560,607 | 2,066,155 |
OTHER ASSETS: | ||
Other assets | 54,489 | 54,489 |
Total Assets | 26,084,652 | 19,406,720 |
CURRENT LIABILITIES: | ||
Accounts payable | 480,012 | 576,629 |
Due to accounts receivable financing company | 334,306 | |
Customer advance payments | 348,230 | 53,744 |
Accrued corporate income taxes | 1,676,428 | 935,762 |
Other current liabilities (Note 6) | 977,420 | 768,369 |
Total Current Liabilities | 3,816,396 | 2,334,504 |
Total Liabilities | 3,816,396 | 2,334,504 |
STOCKHOLDERS' EQUITY: | ||
Common Stock, $.01 par value; 10,000,000 shares authorized; 2,323,468 shares issued and outstanding at March 29, 2019 and 2,303,468 shares issued and outstanding at March 30, 2018 | 23,235 | 23,035 |
Capital in excess of par value | 3,802,672 | 3,767,608 |
Retained earnings | 18,442,349 | 13,281,573 |
Total Stockholders' Equity | 22,268,256 | 17,072,216 |
Total Liabilities and Stockholders' Equity | $ 26,084,652 | $ 19,406,720 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 29, 2019 | Mar. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 0 | $ 11,562 |
Accumulated depreciation and amortization | $ 9,723,201 | $ 9,377,361 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,323,468 | 2,303,468 |
Common stock, shares outstanding | 2,323,468 | 2,303,468 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Income Statement [Abstract] | ||
REVENUE, net sales | $ 28,406,666 | $ 23,472,694 |
COSTS AND EXPENSES: | ||
Cost of products sold | 16,377,063 | 14,734,561 |
Selling, general and administrative | 4,007,145 | 4,006,950 |
Interest expense | 63,271 | 48,178 |
Depreciation and amortization | 345,840 | 330,037 |
Total Costs and Expenses | 20,793,319 | 19,119,726 |
OPERATING INCOME | 7,613,347 | 4,352,968 |
OTHER INCOME | 16,559 | 3,069 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 7,629,906 | 4,356,037 |
PROVISION FOR INCOME TAXES | (2,469,130) | (1,790,478) |
NET INCOME | $ 5,160,776 | $ 2,565,559 |
BASIC EARNINGS PER COMMON SHARE (Note 1) | $ 2.23 | $ 1.11 |
FULLY DILUTED EARNINGS PER SHARE (Note 1) | $ 2.15 | $ 1.10 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (IN THOUSANDS) | 2,321 | 2,303 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - FULLY DILUTED (IN THOUSANDS) | 2,414 | 2,334 |
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. 31, 2017 | $ 23,035 | $ 3,739,628 | $ 11,291,881 | $ 15,054,544 |
Balances, beginning, shares at Mar. 31, 2017 | 2,303,468 | |||
Dividend Payment | (575,867) | (575,867) | ||
Recognition of stock option compensation expense | 27,980 | $ 27,980 | ||
Exercise of stock options, shares | 0 | |||
Net income: year ended | 2,565,559 | $ 2,565,559 | ||
Balances, ending at Mar. 30, 2018 | $ 23,035 | 3,767,608 | 13,281,573 | $ 17,072,216 |
Balances, ending, shares at Mar. 30, 2018 | 2,303,468 | 2,303,468 | ||
Recognition of stock option compensation expense | 35,264 | $ 35,264 | ||
Exercise of stock options | $ 200 | (200) | ||
Exercise of stock options, shares | 20,000 | 75,000 | ||
Net income: year ended | 5,160,776 | $ 5,160,776 | ||
Balances, ending at Mar. 29, 2019 | $ 23,235 | $ 3,802,672 | $ 18,442,349 | $ 22,268,256 |
Balances, ending, shares at Mar. 29, 2019 | 2,323,468 | 2,323,468 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,160,776 | $ 2,565,559 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 345,840 | 330,037 |
Recognition of stock option compensation expense | 35,264 | 27,980 |
Obsolescence Provision | 399,979 | 208,257 |
Changes in assets and liabilities: | ||
Decrease (Increase) in accounts receivable | 944,407 | (1,321,597) |
Decrease in excess payments to accounts receivable factor | 154,960 | 36,470 |
(Increase) in inventories | (1,669,924) | (2,273,767) |
(Increase) decrease in prepaid expenses and other current assets | (45,303) | 818,444 |
(Increase) in other assets | (38) | |
Decrease (Increase) in accounts payable | (96,617) | 341,444 |
Increase in other current liabilities | 209,051 | 80,349 |
Increase in accrued corporate income taxes | 740,666 | 336,023 |
Total adjustments | 1,018,323 | (1,416,398) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,179,099 | 1,149,161 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | (840,292) | (377,042) |
NET CASH (USED) BY INVESTING ACTIVITIES | (840,292) | (377,042) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Net activity on accounts receivable financing | 334,306 | |
Cash dividend payment | (575,867) | |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 334,306 | (575,867) |
INCREASE IN CASH | 5,673,113 | 196,252 |
CASH, beginning of period | 1,407,013 | 1,210,761 |
CASH, end of period | 7,080,126 | 1,407,013 |
Cash paid during the year for: | ||
Interest | 59,535 | 42,588 |
Income Taxes | $ 1,691,322 | $ 684,893 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Mar. 29, 2019 | |
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 believe we are the only independent producer of HYPERBOLOID printed circuit board connectors 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 (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 as compared to the comparable sales of 35% and 45%, respectively, for the year ended March 30, 2018. 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 29, 2019, we purchased several machines to increase the productivity of certain processes. This should help us meet this goal. 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. A new product line featuring high density connectors has been added to the Company’s product offering. The Company is beginning to recognize meaningful revenue from this product line and we expect it to grow in the coming years. 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: 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 has adopted the provisions of ASC 606 for the quarter ended June 29, 2018. However, such adoption did not have any material effect on the way in which the Company recognizes, records and reports revenues. The Company does not offer any discounts, credits or other sales incentives. Historically, the Company believes that it has 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 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 cost of this warranty with respect to defective products is immaterial at this time. 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. Inventories: Inventories are stated at cost, on an average basis, which does not exceed net realizable 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. The Company recognized $399,979 and $208,257 for the years ended March 29, 2019 and March 30, 2018, respectively, as a reduction of inventory due to obsolescence. 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, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained in each financial institution up to $250,000 in the aggregate. As of March 29, 2019, the Company had funds on deposit in the amount of $7,263,839 in one financial institution of which $7,013,839 exceeds FDIC coverage. 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. 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 years ended March 29, 2019 and March 30, 2018, respectively, basic and diluted income per share are calculated separately as follows: 3/29/2019 3/30/2018 NET INCOME $ 5,160,776 $ 2,565,559 BASIC EARNINGS PER COMMON SHARE $ 2.23 $ 1.11 FULLY DILUTED EARNINGS PER SHARE $ 2.15 $ 1.10 WEIGHTED AVERAGE NUMBER OF 2,321,331 $ 2,303,468 DILUTIVE EFFECT OF OPTIONS GRANTED 92,399 30,238 WEIGHTED AVERAGE NUMBER OF 2,413,730 2,333,706 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 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,” 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. There were no long-lived asset impairments recognized by the Company for the years ended March 29, 2019 and March 30, 2018, respectively. 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 recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other non-vested stock awards is generally the market price of the Company’s common stock on the date of the grant. Recent Accounting Pronouncements 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. Leases FASB ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize almost 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 or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. ASC 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have adopted ASC 2016-02 as of April 1, 2019, and do expect guidance to have an impact on the financial statements for the forthcoming fiscal year. |
INVENTORIES_
INVENTORIES: | 12 Months Ended |
Mar. 29, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Note 2 INVENTORIES: Inventories are stated at cost, on the average basis that does not exceed net realizable value. Inventories are comprised of the following: March 29, March 30, 2019 2018 Raw materials $ 7,053,896 $ 6,644,437 Work in progress 2,797,006 2,288,115 Finished goods 2,170,541 1,818,946 $ 12,021,443 $ 10,751,498 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS: | 12 Months Ended |
Mar. 29, 2019 | |
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 29, March 30, 2019 2018 Prepaid insurance $ 106,801 $ 16,256 Prepaid corporate taxes — 467,606 Prepaid payroll taxes 289,311 — Prepaid other 138,785 5,732 $ 534,897 $ 489,594 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: | 12 Months Ended |
Mar. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 4 PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are as follows: March 29, March 30, 2019 2018 Computers $ 502,723 $ 496,489 Leasehold improvements 934,648 888,488 Machinery and equipment 6,657,876 6,189,340 Tools and dies 3,999,705 3,681,077 Furniture and fixture 179,072 179,072 Website development cost 9,784 9,050 12,283,808 11,443,516 Less: accumulated depreciation and amortization (9,723,201 ) (9,377,361 ) $ 2,560,607 $ 2,066,155 Depreciation and amortization expense $ 345,840 $ 330,037 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: | 12 Months Ended |
Mar. 29, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE FINANCING | Note 5 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 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 Financing Company are secured by the Company’s accounts receivable and inventories. As of March 29, 2019, the Company reported in the accompanying Financial Statements, a liability to the Financing Company of $334,306 compared to March 30, 2018, when the Company had reported excess payments to the Financing Company of $154,960. These excess payments are reported in the accompanying Financial Statements as “Excess payments to accounts receivable financing company.” |
OTHER CURRENT LIABILITIES_
OTHER CURRENT LIABILITIES: | 12 Months Ended |
Mar. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | Note 6 OTHER CURRENT LIABILITIES: Other current liabilities are comprised of the following: March 29, March 30, 2019 2018 Payroll and vacation accruals $ 831,187 $ 569,043 Sales commissions 80,553 104,791 Insurance — 52,648 Other 65,680 41,887 $ 977,420 $ 768,369 |
INCOME TAXES_
INCOME TAXES: | 12 Months Ended |
Mar. 29, 2019 | |
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.” Under ASC Topic 740, 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 expense 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 29, March 30, 2019 2018 Current: Federal $ 828,728 $ 449,123 State and local 1,166,106 222,982 Total current tax provision 1,994,834 672,105 Deferred: Federal 408,174 561,920 State and local 222,217 556,453 Total deferred tax expense 630,391 1,118,373 Total provision $ 2,625,225 $ 1,790,478 With the enactment of the Tax Cuts and Jobs Act (TCJA) in December 2017, Federal corporate income tax rates were reduced from 35 percent to 21 percent. As the Company reported on a fiscal year ending in March, the federal income tax rate for the year ended March 30, 2018 was a blended rate. 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 to the income tax benefit recognized in the financial statements is as follows: March 29, March 30, 2019 2018 Income tax expense (benefit) – twelve months 21% — Income tax expense (benefit) – nine months — 26% Income tax expense (benefit) – three months — 5% Income tax expense (benefit) — — Income tax expenses – state and local, net of federal benefit 11% 10% During the year ended March 29, 2019, the Company received a remittance of $460,442 from the Internal Revenue Service. The remittance did not indicate the basis for the payment. The Company has reported this payment as a current liability in the accompanying financial statements until such time that the basis for this remittance can be determined. |
2011 EQUITY INCENTIVE PLAN_
2011 EQUITY INCENTIVE PLAN: | 12 Months Ended |
Mar. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
2011 EQUITY INCENTIVE PLAN | Note 8 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. 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. 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 received a grant of options totaling 5,000 shares each subject to the following vesting schedule: (i) 1,000 shares vested immediately (August 15, 2016); (ii) 2,000 shares vested 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. On September 7, 2018, the Board of Directors elected Michael E. Rosenfeld to the Board of Directors to fill the vacancy of a Class I Director of the Company created by the death of the Company’s then President and Chief Executive Officer, Michael Offerman. Such appointment became effective on October 26, 2018. At the same time, 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 Mr. Rosenfeld as follows: He received a grant of options totalling 5,000 shares each subject to the following vesting schedule: (i) 1,000 shares vested on October 26, 2018; (ii) 2,000 shares will vest on October 26, 2019; and (iii) 2,000 shares will vest on October 26, 2020. The stock options: (i) have a ten-year term; and (ii) have an exercise price equal to the value of the Company’s common stock on the date of grant. 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 David Offerman 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano 5,000 Eric Hugel 5,000 Michael E. Rosenfeld 5,000 * * The following table shows the option activity for the fiscal years ended March 29, 2019 and March 30, 2018. Stock-based compensation expense Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations: Year ended Year ended March 29, 2019 March 30, 2018 Ref (in thousands) (in thousands) IEH employees $ — $ — Non-employee directors 35 28 Total stock option expense (a) $ 35 $ 28 (a): The Company reported compensation expense of $27,980 during the year ended March 30, 2018. The Company reported compensation expense of $35,264 during the year ended March 29, 2019. Unrecognized stock-based compensation expense Year ended Year ended March 29, 2019 March 30, 2018 Ref (in thousands) (in thousands) Unrecognized expense for IEH employees $ — $ — Unrecognized expense for Non-employee directors 42 14 Total unrecognized expense (b) $ 42 $ 14 (b): Unrecognized stock-based compensation expense related to prior years’ equity grants of stock options to non-employee directors, that had not vested as of the end of the applicable fiscal year. The Company expects to recognize $25,454 in stock option compensation expense for the fiscal year ended March 2020 and $16,992 for the fiscal year ended March 2021. Note March 29, 2019 March 30, 2018 Risk free interest rate 2.40 % 2.09 % Contractual term 10 years 10 years Dividend yield — — Expected lives 10 years 10 years The following table shows the activity for the fiscal years ended March 29, 2019 and March 30, 2018. Weighted Avg. Remaining Aggregate Exercise Contractual Intrinsic Value Shares Price Term (Years) (in thousands) Outstanding at the Beginning of the Year 3/31/2017 255,000 $ 6.15 8.82 $ 125 Granted 0 Exercised 0 Forfeited or Expired 0 Outstanding at the End of the Year 3/30/2018 255,000 $ 6.15 8.07 $ 3,852 Fully Vested 251,000 $ 6.02 Exercisable at the End of the Year 251,000 Outstanding at the Beginning of the Year 3/30/2018 255,000 $ 6.15 8.07 $ 702 Granted 5,000 Exercised (75,000 ) Forfeited or Expired 0 Outstanding at the End of the Quarter 3/29/2019 185,000 $ 6.05 7.75 $ 1,832 Fully Vested 181,000 $ 5.88 Exercisable at the End of the Year 181,000 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in-the-money options on those dates. This amount will change based on the fair market value of the Company’s common stock. |
CASH BONUS PLAN_
CASH BONUS PLAN: | 12 Months Ended |
Mar. 29, 2019 | |
Compensation Related Costs [Abstract] | |
CASH BONUS PLAN | Note 9 CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (the “Cash Bonus Plan”) for non-union, management and administration staff. Contributions to the Cash Bonus Plan are made by the Company only when the Company is profitable for the fiscal year. Accordingly, the Company has accrued a contribution provision of $324,000 for the fiscal years ended March 29, 2019 and March 30, 2018, respectively. |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: | 12 Months Ended |
Mar. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 10 COMMITMENTS AND CONTINGENCIES: The Company leases space for its corporate offices and its manufacturing facility located at 140 58 th Fiscal year ending March: 2020 189,200 2021 128,640 $ 317,840 The rental expense for the years ended March 29, 2019 and March 30, 2018, was $183,720 and $178,360, respectively. The Company has a collective bargaining multi-employer pension plan (“Multi-Employer Plan”) with the United Auto Workers of America, Local 259 (ID No. 136115077). 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. 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 $65,075 and $151,314 for the fiscal years ended March 29, 2019 and March 30, 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. |
REVENUES FROM MAJOR CUSTOMERS_
REVENUES FROM MAJOR CUSTOMERS: | 12 Months Ended |
Mar. 29, 2019 | |
REVENUES FROM MAJOR CUSTOMERS [Abstract] | |
REVENUES FROM MAJOR CUSTOMERS | Note 11 REVENUES FROM MAJOR CUSTOMERS: During the fiscal year ended March 29, 2019, two customers accounted for $7,451,032 constituting 26.2% of the Company’s net sales. One of those customers accounted for 13.7% of the Company’s net sales while the second customer accounted for 12.5% of the Company’s net sales. During the fiscal year ended March 30, 2018, one customer accounted for $2,685,250 constituting 11.4% of the Company’s net sales. |
SUBSEQUENT EVENTS_
SUBSEQUENT EVENTS: | 12 Months Ended |
Mar. 29, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 12 SUBSEQUENT EVENTS: The Company has evaluated all other subsequent events through July 12, 2019, the date the financial statements were available to be issued. Based on this evaluation, except as set forth below, 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) | 12 Months Ended |
Mar. 29, 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. 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 (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 as compared to the comparable sales of 35% and 45%, respectively, for the year ended March 30, 2018. 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 29, 2019, we purchased several machines to increase the productivity of certain processes. This should help us meet this goal. |
New Product Development | 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. A new product line featuring high density connectors has been added to the Company’s product offering. The Company is beginning to recognize meaningful revenue from this product line and we expect it to grow in the coming years. 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: 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 has adopted the provisions of ASC 606 for the quarter ended June 29, 2018. However, such adoption did not have any material effect on the way in which the Company recognizes, records and reports revenues. The Company does not offer any discounts, credits or other sales incentives. Historically, the Company believes that it has 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 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 cost of this warranty with respect to defective products is immaterial at this time. 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. |
Inventories | Inventories: Inventories are stated at cost, on an average basis, which does not exceed net realizable 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. The Company recognized $399,979 and $208,257 for the years ended March 29, 2019 and March 30, 2018, respectively, as a reduction of inventory due to obsolescence. |
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, the Federal Deposit Insurance Corporation (FDIC) will permanently insure all accounts maintained in each financial institution up to $250,000 in the aggregate. As of March 29, 2019, the Company had funds on deposit in the amount of $7,263,839 in one financial institution of which $7,013,839 exceeds FDIC coverage. 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. |
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 years ended March 29, 2019 and March 30, 2018, respectively, basic and diluted income per share are calculated separately as follows: 3/29/2019 3/30/2018 NET INCOME $ 5,160,776 $ 2,565,559 BASIC EARNINGS PER COMMON SHARE $ 2.23 $ 1.11 FULLY DILUTED EARNINGS PER SHARE $ 2.15 $ 1.10 WEIGHTED AVERAGE NUMBER OF 2,321,331 $ 2,303,468 DILUTIVE EFFECT OF OPTIONS GRANTED 92,399 30,238 WEIGHTED AVERAGE NUMBER OF 2,413,730 2,333,706 |
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 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,” 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. There were no long-lived asset impairments recognized by the Company for the years ended March 29, 2019 and March 30, 2018, respectively. |
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 recognized ratably over the service period of the award. The fair value of stock options is estimated using a Black-Scholes valuation model. The fair value of any other non-vested stock awards is generally the market price of the Company’s common stock on the date of the grant. |
Recent Accounting Pronouncements: | Recent Accounting Pronouncements 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. |
Leases | Leases FASB ASC 2016-02 Leases (Topic 842) – In February 2016, the FASB issued ASC 2016-02, which requires lessees to recognize almost 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 or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. ASC 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have adopted ASC 2016-02 as of April 1, 2019, and do expect guidance to have an impact on the financial statements for the forthcoming fiscal year. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Basic and Diluted Income Per Share | As the Company reported net income for both the years ended March 29, 2019 and March 30, 2018, respectively, basic and diluted income per share are calculated separately as follows: 3/29/2019 3/30/2018 NET INCOME $ 5,160,776 $ 2,565,559 BASIC EARNINGS PER COMMON SHARE $ 2.23 $ 1.11 FULLY DILUTED EARNINGS PER SHARE $ 2.15 $ 1.10 WEIGHTED AVERAGE NUMBER OF 2,321,331 $ 2,303,468 DILUTIVE EFFECT OF OPTIONS GRANTED 92,399 30,238 WEIGHTED AVERAGE NUMBER OF 2,413,730 2,333,706 |
INVENTORIES_ (Tables)
INVENTORIES: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories are comprised of the following: March 29, March 30, 2019 2018 Raw materials $ 7,053,896 $ 6,644,437 Work in progress 2,797,006 2,288,115 Finished goods 2,170,541 1,818,946 $ 12,021,443 $ 10,751,498 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
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 29, March 30, 2019 2018 Prepaid insurance $ 106,801 $ 16,256 Prepaid corporate taxes — 467,606 Prepaid payroll taxes 289,311 — Prepaid other 138,785 5,732 $ 534,897 $ 489,594 |
PROPERTY, PLANT AND EQUIPMENT_
PROPERTY, PLANT AND EQUIPMENT: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment are as follows: March 29, March 30, 2019 2018 Computers $ 502,723 $ 496,489 Leasehold improvements 934,648 888,488 Machinery and equipment 6,657,876 6,189,340 Tools and dies 3,999,705 3,681,077 Furniture and fixture 179,072 179,072 Website development cost 9,784 9,050 12,283,808 11,443,516 Less: accumulated depreciation and amortization (9,723,201 ) (9,377,361 ) $ 2,560,607 $ 2,066,155 Depreciation and amortization expense $ 345,840 $ 330,037 |
OTHER CURRENT LIABILITIES_ (Tab
OTHER CURRENT LIABILITIES: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities are comprised of the following: March 29, March 30, 2019 2018 Payroll and vacation accruals $ 831,187 $ 569,043 Sales commissions 80,553 104,791 Insurance — 52,648 Other 65,680 41,887 $ 977,420 $ 768,369 |
INCOME TAXES_ (Tables)
INCOME TAXES: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes consists of the following: March 29, March 30, 2019 2018 Current: Federal $ 828,728 $ 449,123 State and local 1,166,106 222,982 Total current tax provision 1,994,834 672,105 Deferred: Federal 408,174 561,920 State and local 222,217 556,453 Total deferred tax expense 630,391 1,118,373 Total provision $ 2,625,225 $ 1,790,478 |
Schedule of reconciliation of the income tax benefit | A reconciliation of the income tax benefit at the statutory Federal tax rate to the income tax benefit recognized in the financial statements is as follows: March 29, March 30, 2019 2018 Income tax expense (benefit) – twelve months 21% — Income tax expense (benefit) – nine months — 26% Income tax expense (benefit) – three months — 5% Income tax expense (benefit) — — Income tax expenses – state and local, net of federal benefit 11% 10% |
2011 EQUITY INCENTIVE PLAN_ (Ta
2011 EQUITY INCENTIVE PLAN: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Share-based Payment Arrangement [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 David Offerman 50,000 Robert Knoth 50,000 Allen Gottlieb 5,000 Gerald Chafetz 5,000 Sonia Marciano 5,000 Eric Hugel 5,000 Michael E. Rosenfeld 5,000 * * |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations: Year ended Year ended March 29, 2019 March 30, 2018 Ref (in thousands) (in thousands) IEH employees $ — $ — Non-employee directors 35 28 Total stock option expense (a) $ 35 $ 28 (a): The Company reported compensation expense of $27,980 during the year ended March 30, 2018. The Company reported compensation expense of $35,264 during the year ended March 29, 2019. |
Schedule of Unrecognized Stock-Based Compensation Expense | Unrecognized stock-based compensation expense Year ended Year ended March 29, 2019 March 30, 2018 Ref (in thousands) (in thousands) Unrecognized expense for IEH employees $ — $ — Unrecognized expense for Non-employee directors 42 14 Total unrecognized expense (b) $ 42 $ 14 (b): Unrecognized stock-based compensation expense related to prior years’ equity grants of stock options to non-employee directors, that had not vested as of the end of the applicable fiscal year. |
Schedule of Stock Option Grants | Note March 29, 2019 March 30, 2018 Risk free interest rate 2.40 % 2.09 % Contractual term 10 years 10 years Dividend yield — — Expected lives 10 years 10 years |
Schedule of Option Activity | The following table shows the activity for the fiscal years ended March 29, 2019 and March 30, 2018. Weighted Avg. Remaining Aggregate Exercise Contractual Intrinsic Value Shares Price Term (Years) (in thousands) Outstanding at the Beginning of the Year 3/31/2017 255,000 $ 6.15 8.82 $ 125 Granted 0 Exercised 0 Forfeited or Expired 0 Outstanding at the End of the Year 3/30/2018 255,000 $ 6.15 8.07 $ 3,852 Fully Vested 251,000 $ 6.02 Exercisable at the End of the Year 251,000 Outstanding at the Beginning of the Year 3/30/2018 255,000 $ 6.15 8.07 $ 702 Granted 5,000 Exercised (75,000 ) Forfeited or Expired 0 Outstanding at the End of the Quarter 3/29/2019 185,000 $ 6.05 7.75 $ 1,832 Fully Vested 181,000 $ 5.88 Exercisable at the End of the Year 181,000 |
COMMITMENTS AND CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES: (Tables) | 12 Months Ended |
Mar. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of basic minimum annual rental payments | The basic minimum annual rentals are as follows: Fiscal year ending March: 2020 189,200 2021 128,640 $ 317,840 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Number of days in fiscal period | 364 days | 364 days |
FDIC coverage of deposits | $ 250,000 | |
Recognition of stock option compensation expense | 35,264 | $ 27,980 |
Funds on deposit | $ 7,263,839 | $ 7,013,839 |
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 | |
Commercial Electronic Markets [Member] | Sales Revenue, Net [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of sales | 49.90% | 35.00% |
Military Markets [Member] | Sales Revenue, Net [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Percentage of sales | 50.10% | 45.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Basic and Diluted Income Per Share) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Accounting Policies [Abstract] | ||
NET INCOME | $ 5,160,776 | $ 2,565,559 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | $ 2.23 | $ 1.11 |
FULLY DILUTED EARNINGS PER SHARE | $ 2.15 | $ 1.10 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 2,321,000 | 2,303,000 |
DILUTIVE EFFECT OF OPTIONS GRANTED | 92,399 | 30,238 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - FULLY DILUTED | 2,414,000 | 2,334,000 |
INVENTORIES_ (Details)
INVENTORIES: (Details) - USD ($) | Mar. 29, 2019 | Mar. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,053,896 | $ 6,644,437 |
Work in progress | 2,797,006 | 2,288,115 |
Finished goods | 2,170,541 | 1,818,946 |
Inventories | $ 12,021,443 | $ 10,751,498 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS: (Details) - USD ($) | Mar. 29, 2019 | Mar. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 106,801 | $ 16,256 |
Prepaid corporate taxes | 467,606 | |
Prepaid payroll taxes | 289,311 | |
Prepaid other | 138,785 | 5,732 |
Prepaid expenses and other current assets | $ 534,897 | $ 489,594 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT: (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,283,808 | $ 11,443,516 |
Less: accumulated depreciation and amortization | (9,723,201) | (9,377,361) |
Property, Plant and Equipment, Net | 2,560,607 | 2,066,155 |
Depreciation and amortization expense | 345,840 | 330,037 |
Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 502,723 | 496,489 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 934,648 | 888,488 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,657,876 | 6,189,340 |
Tools and dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,999,705 | 3,681,077 |
Furniture and fixture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 179,072 | 179,072 |
Website development cost [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,784 | $ 9,050 |
ACCOUNTS RECEIVABLE FINANCING_
ACCOUNTS RECEIVABLE FINANCING: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Short-term Debt [Line Items] | ||
Excess payments to the Factor | $ 154,960 | |
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 | $ 334,306 | $ 154,960 |
OTHER CURRENT LIABILITIES_ (Det
OTHER CURRENT LIABILITIES: (Details) - USD ($) | Mar. 29, 2019 | Mar. 30, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and vacation accruals | $ 831,187 | $ 569,043 |
Sales commissions | 80,553 | 104,791 |
Insurance | 52,648 | |
Other | 65,680 | 41,887 |
Total other current liabilities | $ 977,420 | $ 768,369 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 12 Months Ended |
Mar. 29, 2019USD ($) | |
Initially reported [Member] | |
Amount of remittance received | $ 460,442 |
INCOME TAXES_ (Provision For In
INCOME TAXES: (Provision For Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Current: | ||
Federal | $ 828,728 | $ 449,123 |
State and local | 1,166,106 | 222,982 |
Total current tax provision | 1,994,834 | 672,105 |
Deferred: | ||
Federal | 408,174 | 561,920 |
State and local | 222,217 | 556,453 |
Total deferred tax expense | 630,391 | 1,118,373 |
Total provision | $ 2,625,225 | $ 1,790,478 |
INCOME TAXES_ (Reconciliation o
INCOME TAXES: (Reconciliation of Tax Rate) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 30, 2019 | Mar. 30, 2018 | Mar. 30, 2019 | Mar. 30, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | 5.00% | 26.00% | 21.00% | |||
Income tax expenses - state and local, net of federal benefit | 11.00% | 10.00% |
2011 EQUITY INCENTIVE PLAN (Nar
2011 EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Mar. 29, 2021 | Mar. 29, 2020 | Mar. 29, 2019 | Mar. 30, 2018 | ||
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 | ||||
FMV of shares subject to options granted to participants and designated as incentive stock options, maximum amount | $ 100,000 | ||||
Unrecognized stock-based compensation expense | [1] | $ 42,000 | $ 14,000 | ||
Stock Option [Member] | Subsequent Event [Member] | |||||
Unrecognized stock-based compensation expense | $ 16,992 | $ 25,454 | |||
[1] | Unrecognized stock-based compensation expense related to prior years' equity grants of stock options to non-employee directors, that had not vested as of the end of the applicable fiscal year. |
2011 EQUITY INCENTIVE PLAN (Gra
2011 EQUITY INCENTIVE PLAN (Grants Under Plan) (Details) - shares | 1 Months Ended | 12 Months Ended | |||||||
Oct. 26, 2020 | Oct. 26, 2019 | Oct. 26, 2018 | Mar. 29, 2019 | Mar. 30, 2018 | Aug. 15, 2018 | Aug. 15, 2017 | Aug. 15, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 5,000 | 0 | |||||||
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% | ||||||||
Option yet to vest | 181,000 | 251,000 | |||||||
David Offerman [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 50,000 | ||||||||
Robert Knoth [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 50,000 | ||||||||
Allen Gottlieb [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 5,000 | ||||||||
Gerald Chafetz [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 5,000 | ||||||||
Sonia Marciano [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 5,000 | ||||||||
Option yet to vest | 2,000 | 2,000 | 1,000 | ||||||
Eric Hugel [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | 5,000 | ||||||||
Option yet to vest | 2,000 | 2,000 | 1,000 | ||||||
Michael E. Rosenfeld [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted in period | [1] | 5,000 | |||||||
Option vested | 1,000 | ||||||||
Michael E. Rosenfeld [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Option vested | 2,000 | 2,000 | |||||||
[1] | Options for 1,000 shares vested on October 26, 2018. Options for 2,000 shares shall vest on October 26, 2019 and options for 2,000 shares shall vest on October 26, 2020. |
2011 EQUITY INCENTIVE PLAN (Sch
2011 EQUITY INCENTIVE PLAN (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock option expense | [1] | $ 35 | $ 28 |
IEH employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock option expense | |||
Non-employee directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock option expense | $ 35 | $ 28 | |
[1] | The Company reported compensation expense of $27,980 during the year ended March 30, 2018. The Company reported compensation expense of $35,264 during the year ended March 29, 2019. |
2011 EQUITY INCENTIVE PLAN (S_2
2011 EQUITY INCENTIVE PLAN (Schedule of Unrecognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized expense | [1] | $ 42 | $ 14 |
IEH employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized expense | |||
Non-employee directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized expense | $ 42 | $ 14 | |
[1] | Unrecognized stock-based compensation expense related to prior years' equity grants of stock options to non-employee directors, that had not vested as of the end of the applicable fiscal year. |
2011 EQUITY INCENTIVE PLAN (S_3
2011 EQUITY INCENTIVE PLAN (Schedule of Stock Option Grants) (Details) - Officers, directors and key employees [Member] | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 2.40% | 2.09% |
Contractual term | 10 years | 10 years |
Dividend yield | ||
Expected lives | 10 years | 10 years |
2011 EQUITY INCENTIVE PLAN (Opt
2011 EQUITY INCENTIVE PLAN (Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 29, 2019 | Mar. 30, 2018 | Mar. 31, 2017 | |
Shares | |||
Outstanding at the Beginning | 255,000 | 255,000 | |
Granted | 5,000 | 0 | |
Exercised | (75,000) | 0 | |
Forfeited or Expired | 0 | 0 | |
Outstanding at the End | 185,000 | 255,000 | 255,000 |
Fully Vested | 181,000 | 251,000 | |
Exercisable at the End | 181,000 | 251,000 | |
Weighted Avg. Exercise Price | |||
Outstanding at the Beginning | $ 6.15 | $ 6.15 | |
Outstanding at the End | 6.05 | 6.15 | $ 6.15 |
Fully Vested | $ 5.88 | $ 6.02 | |
Remaining Contractual Term (Years) | |||
Outstanding | 7 years 9 months | 8 years 26 days | 8 years 9 months 25 days |
Aggregate Intrinsic Value | |||
Outstanding at the Beginning | $ 702 | $ 125 | |
Outstanding at the End | $ 1,832 | $ 702 | $ 125 |
CASH BONUS PLAN_ (Narrative) (D
CASH BONUS PLAN: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Compensation Related Costs [Abstract] | ||
Cash Bonus Plan, contribution | $ 324,000 | $ 324,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES: (Narrative) (Details) - USD ($) | 12 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 183,720 | $ 178,360 |
Pension plan contributions | $ 65,075 | $ 151,314 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES: (Basic Minimum Annual Rentals) (Details) | Mar. 29, 2019USD ($) |
Future Minimum Rental Payments | |
2020 | $ 189,200 |
2021 | 128,640 |
Total | $ 317,840 |
REVENUES FROM MAJOR CUSTOMERS (
REVENUES FROM MAJOR CUSTOMERS (Narrative) (Details) | 12 Months Ended | |
Mar. 29, 2019USD ($)Customers | Mar. 30, 2018USD ($)Customers | |
Revenue derived from customers | $ 28,406,666 | $ 23,472,694 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Concentration risk | 26.20% | 11.40% |
Number of customers | Customers | 2 | 1 |
Revenue derived from customers | $ 7,451,032 | $ 2,685,250 |
Major Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration risk | 13.70% | |
Major Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration risk | 12.50% |