Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Oct. 06, 2023 | Sep. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | IEH Corporation | ||
Trading Symbol | IEHC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 2,370,251 | ||
Entity Public Float | $ 12,929,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000050292 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-5278 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-5549348 | ||
Entity Address, Address Line One | 140 58th Street | ||
Entity Address, Address Line Two | Suite 8E | ||
Entity Address, City or Town | Brooklyn | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11220 | ||
City Area Code | (718) | ||
Local Phone Number | 492-4440 | ||
Title of 12(g) Security | Shares of common stock, $0.01 par value | ||
Security Exchange Name | NONE | ||
Entity Interactive Data Current | No | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum llp | ||
Auditor Location | New York, NY |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash | $ 8,344,706 | $ 12,675,271 |
Accounts receivable | 2,985,936 | 3,039,468 |
Inventories | 9,446,392 | 9,728,387 |
Corporate income taxes receivable | 1,723,473 | 2,096,480 |
Prepaid expenses and other current assets | 96,783 | 112,173 |
Total current assets | 22,597,290 | 27,651,779 |
Non-current assets: | ||
Property, plant and equipment, net | 3,865,066 | 4,354,111 |
Operating lease right-of-use assets | 2,661,779 | 2,980,820 |
Deferred income tax assets, net | 806,380 | |
Security Deposit | 75,756 | 75,756 |
Total assets | 29,199,891 | 35,868,846 |
Current liabilities: | ||
Accounts payable | 1,054,078 | 808,631 |
Customer advance payments | 20,639 | 97,885 |
Operating lease liabilities | 317,334 | 285,275 |
Other current liabilities | 902,149 | 951,106 |
Total current liabilities | 2,294,200 | 2,142,897 |
Operating lease liabilities, non-current | 2,589,121 | 2,906,455 |
Total liabilities | 4,883,321 | 5,049,352 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ Equity | ||
Common Stock, $0.01 par value; 10,000,000 shares authorized; 2,370,251 shares issued and outstanding at March 31, 2023 and March 31, 2022 | 23,703 | 23,703 |
Additional paid-in capital | 7,566,324 | 7,566,324 |
Retained earnings | 16,726,543 | 23,229,467 |
Total Stockholders’ Equity | 24,316,570 | 30,819,494 |
Total Liabilities and Stockholders’ Equity | $ 29,199,891 | $ 35,868,846 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,370,251 | 2,370,251 |
Common stock, shares outstanding | 2,370,251 | 2,370,251 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 19,136,890 | $ 24,265,589 |
Costs and expenses: | ||
Cost of products sold | 18,395,865 | 19,328,249 |
Selling, general and administrative | 5,519,278 | 5,039,072 |
Depreciation and amortization | 1,034,559 | 837,201 |
Total operating expenses | 24,949,702 | 25,204,522 |
Operating loss | (5,812,812) | (938,933) |
Other income (expense): | ||
Other income (for fiscal year ended March 31, 2022, consists principally of $2,103,885 debt forgiveness income from the forgiveness of the PPP Loan, see Note 5) | 85,231 | 2,214,030 |
Interest income (expense), net | 31,037 | 391 |
Total other income (expense), net | 116,268 | 2,214,421 |
(Loss) income before (provision for) benefit from income taxes | (5,696,544) | 1,275,488 |
(Provision for) benefit from income taxes | (806,380) | 162,646 |
Net (loss) income | $ (6,502,924) | $ 1,438,134 |
(Net loss) earnings per common share: | ||
Basic (in Dollars per share) | $ (2.74) | $ 0.61 |
Diluted (in Dollars per share) | $ (2.74) | $ 0.59 |
Weighted-average number of common and common equivalent shares (in thousands): | ||
Basic (in Shares) | 2,370 | 2,370 |
Diluted (in Shares) | 2,370 | 2,448 |
Statements of Operations (Paren
Statements of Operations (Parentheticals) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Debt forgiveness income | $ 2,103,885 |
Statement of Changes in Stockho
Statement of Changes in Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Balances at Mar. 31, 2021 | $ 23,703 | $ 7,183,241 | $ 21,791,333 | $ 28,998,277 |
Balances (in Shares) at Mar. 31, 2021 | 2,370,251 | |||
Stock-based compensation expense | 383,083 | 383,083 | ||
Net income (loss) | 1,438,134 | 1,438,134 | ||
Balances at Mar. 31, 2022 | $ 23,703 | 7,566,324 | 23,229,467 | 30,819,494 |
Balances (in Shares) at Mar. 31, 2022 | 2,370,251 | |||
Net income (loss) | (6,502,924) | (6,502,924) | ||
Balances at Mar. 31, 2023 | $ 23,703 | $ 7,566,324 | $ 16,726,543 | $ 24,316,570 |
Balances (in Shares) at Mar. 31, 2023 | 2,370,251 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (6,502,924) | $ 1,438,134 |
Adjustments to reconcile net (loss) income to | ||
Depreciation and amortization | 1,034,559 | 837,201 |
Stock-based compensation expense | 0 | 383,083 |
Inventory obsolescence provision | 222,000 | (14,000) |
Deferred income taxes, net | 806,380 | (164,427) |
Operating lease right-of-use assets | 502,876 | 484,359 |
Gain on forgiveness of PPP loan | (2,103,885) | |
Changes in assets and liabilities: | ||
Accounts receivable | 53,532 | 2,607,255 |
Inventories | 59,995 | (412,590) |
Corporate income taxes receivable | 373,007 | (1,561,384) |
Prepaid expenses and other current assets | 15,390 | 27,227 |
Accounts payable | 245,447 | 189,577 |
Customer advance payments | (77,246) | 59,224 |
Operating lease liabilities | (469,110) | (367,008) |
Other current liabilities | (48,957) | 11,727 |
Net cash (used in) provided by operating activities | (3,785,051) | 1,414,493 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (545,514) | (2,646,764) |
Net cash used in investing activities | (545,514) | (2,646,764) |
Net decrease in cash | (4,330,565) | (1,232,271) |
Cash - beginning of fiscal year | 12,675,271 | 13,907,542 |
Cash - end of fiscal year | 8,344,706 | 12,675,271 |
Cash paid during the year for: | ||
Interest | 110 | |
Income Taxes | $ 7,804 | $ 1,274,539 |
Description of Business
Description of Business | 12 Months Ended |
Mar. 31, 2023 | |
Description of Business [Abstract] | |
DESCRIPTION OF BUSINESS | Note 1 DESCRIPTION OF BUSINESS: Overview: IEH Corporation (hereinafter referred to as “IEH” or the “Company”) began in New York, New York in 1941. IEH was incorporated in March, 1943. The Company designs and manufactures HYPERBOLOID connectors that not only accommodate, but exceed military and aerospace specification standards. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition The core principle underlying Accounting Standards Codification ASC 606 “Revenue from Contracts with Customers” (“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 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 recognizes revenue and the related cost of products sold when the performance obligations are satisfied. The performance obligations are typically satisfied upon shipment of physical goods. In addition to the satisfaction of the performance obligations, the following conditions are required for revenue recognition: an arrangement exists, there is a fixed price, and collectability is reasonably assured. 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 provide a replacement at its own cost. The Company’s disaggregated revenue by geographical location is as follows: For the Fiscal Years Ended 2023 2022 Domestic $ 16,297,959 $ 18,480,329 International 2,838,931 5,785,260 Total $ 19,136,890 $ 24,265,589 Approximately 39.8% and 68.2% of the international net revenues for fiscal years ended March 31, 2023 and 2022, respectively, represent sales to customers located in China. The Company’s the aggregated revenue by industry as a percentage of total revenue is provided below: For the Fiscal Years Ended 2023 2022 Industry % % Defense 56.3 59.1 Commercial Aerospace 25.7 14.7 Space 9.4 17.7 Other 8.6 8.5 Inventories: Inventories are comprised of raw materials, work-in-process and finished goods, and 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 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 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’s allowance for obsolete inventory was $433,000 and $211,000 as of March 31, 2023 and 2022, respectively, and was reflected as a reduction of inventory. 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. At times, the Company’s cash in banks was in excess of the Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any loss as a result of these deposits. Property, Plant and Equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on a straight-line basis 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: The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary and permanent differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. Uncertain Tax Positions: The Company has recorded liabilities for underpayment of income taxes and related interest and penalties for uncertain tax positions based on the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with unrecognized tax benefits as part of the income tax provision. (Net Loss) 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 (loss) earnings per common share are computed by dividing net (loss) income by the weighted average number of common shares outstanding for the fiscal year. Diluted (loss) earnings per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive). Basic and diluted (net loss) earnings per share is calculated as follows: For the Fiscal Years Ended 2023 2022 Net (loss) income $ (6,502,924 ) $ 1,438,134 (Net loss) earnings per common share: Basic $ (2.74 ) $ 0.61 Diluted $ (2.74 ) $ 0.59 Weighted average number of common shares outstanding-basic (in-thousands) 2,370 2,370 Dilutive effect of options to the extent that that such options are determined to be in the money for the period (in thousands) - 78 Weighted average number of common shares outstanding-fully diluted (in thousands) 2,370 2,448 Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted (net loss) earnings per share because the effect of their inclusion would have been anti-dilutive. For the Fiscal Years Ended 2023 2022 Potentially dilutive options to purchase common shares 467,217 330,000 Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable and accounts payable, approximate their fair value due to the relatively short maturity of these instruments. The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions. The Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Level 3 - Significant unobservable inputs that cannot be corroborated by market data and inputs that are derived principally from or corroborated by observable market data or correlation by other means. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (“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, an incremental borrowing rate for determining for its leases the present value of lease payments, the calculation of inventory obsolescence, as well as determining the amount of the valuation allowance for deferred income tax assets, net. Actual amounts could differ from those estimates. Segment Information: The Company identifies its operating segments in accordance with Accounting Standards Codification (“ASC”) 280, Segment Reporting (“ASC 280”). Operating segments are defined as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations on a combined basis for the purposes of allocating resources. Accordingly, the Company has determined it operates and manages its business in a single reportable operating segment. 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 fiscal years ended March 31, 2023 and 2022, respectively. Stock-Based Compensation: 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 the 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. The Company determined the fair value of the stock option grants based upon the assumptions as provided below. There were no stock options granted during the fiscal year ended March 31, 2023. For the Fiscal Years Ended 2023 2022 Weighted Average Stock Price $ - $ 15.18 Expected life (in years) - 5 Expected volatility - % 55 % Dividend yield - % 0 % Risk-Free interest rate, per annum - % 1.4 % Recent Accounting Standards Financial Instruments - Credit Losses In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which was subsequently revised by ASU 2018-19 and ASU 2020-02. The ASU introduces a new model for assessing impairment on most financial assets. Entities will be required to use a forward-looking expected loss model, which will replace the current incurred loss model, which will result in earlier recognition of allowance for losses. The ASU will be effective for the Company’s first interim period of the fiscal year ended March 31, 2024. The Company has evaluated the impact of the adoption of ASU 2016-13, and related updates, and has determined that the impact would not be material to its financial statements and disclosures. Subsequent Events: The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were available to be issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | Note 3 INVENTORIES: Inventories are comprised of the following: As of March 31, 2023 2022 Raw materials $ 8,332,522 $ 7,875,015 Work in progress 1,048,097 1,505,614 Finished goods 498,773 558,758 Allowance for obsolete inventory (433,000 ) (211,000 ) $ 9,446,392 $ 9,728,387 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 4 PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are as follows: As of March 31, 2023 2022 Computers $ 639,204 $ 572,423 Leasehold improvements 2,922,521 2,784,674 Machinery and equipment 7,989,915 7,909,982 Tools and dies 5,286,624 5,030,650 Furniture and fixtures 357,352 352,372 Website development cost 9,785 9,785 $ 17,205,401 $ 16,659,886 Less: accumulated depreciation and amortization (13,340,335 ) (12,305,775 ) Property, Plant and Equipment, net $ 3,865,066 $ 4,354,111 Depreciation and amortization expense for the fiscal years ended March 31, 2023 and 2022 was $1,034,559 and $837,201, respectively. |
PPP Loan and Note
PPP Loan and Note | 12 Months Ended |
Mar. 31, 2023 | |
PPP Loan and Note [Abstract] | |
PPP LOAN AND NOTE | Note 5 PPP LOAN AND NOTE: On April 13, 2020, the Company entered into an unsecured note evidencing an unsecured loan (“PPP Loan”) in the principal amount of $2,103,885 pursuant to the Payment Protection Program (“PPP”) under the Coronavirus Aid Relief and Economic Security Act (“CARES Act”). On April 21, 2021, the Company received notice that the PPP Loan was forgiven. The Company recorded the forgiveness of the principal balance of $2,103,885 as debt forgiveness income in the quarter ended June 30, 2021. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2023 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | Note 6 OTHER CURRENT LIABILITIES: Other current liabilities are comprised of the following: As of March 31, 2023 2022 Payroll and vacation accruals $ 788,136 $ 871,117 Sales commissions 58,685 48,681 Other current liabilities 55,328 31,308 $ 902,149 $ 951,106 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | Note 7 LEASES: Under ASC 842, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods and may include options to extend or terminate the lease term, when it is reasonably certain such options will be exercised. The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature and records the associated lease liability and right-of-use asset on its balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available at the commencement date of a lease arrangement. With respect to operating lease arrangements, the Company accounts for lease components, and non-lease components that are fixed, as a single lease component. Non-lease components that are variable are expensed as incurred as in the statement of operations and comprehensive loss. The Company recognizes costs associated with lease arrangements having an initial term of 12 months or less (“short-term leases”) on a straight-line basis over the lease term; such short-term leases are not recorded on the balance sheet. Balance sheet information related to our leases is presented below: As of March 31, Balance Sheet Location 2023 2022 Operating leases: Right-of-use assets Operating lease right-of-use assets $ 2,661,779 $ 2,980,820 Right-of-use liability, current Operating lease liabilities $ 317,334 $ 285,275 Right-of-use lease liability, long-term Operating lease liabilities, non-current $ 2,589,121 $ 2,906,455 The lease expense for the fiscal years ended March 31, 2023 and 2022 was $550,904 and $573,125, respectively. In addition to the base rent, the Company pays insurance premiums and utility charges relating to the use of the premises. The Company considers its present facilities to be adequate for its present and anticipated future needs. The basic minimum annual rental remaining on the leases is $3,581,583 as of March 31, 2023. The weighted-average remaining lease term and the weighted average discount rate for operating leases were: As of March 31, 2023 2022 Other information Weighted-average discount rate – operating leases 6.00 % 6.00 % Weighted-average remaining lease term – operating lease (in years) 6.8 7.8 The total remaining operating lease payments included in the measurement of lease liabilities on the Company’s balance sheet as of March 31, 2023 was as follows: For the fiscal year ended March 31: Operating Lease Payments 2024 $ 483,184 2025 497,684 2026 519,036 2027 547,460 2028 563,891 Thereafter 970,328 Total gross operating lease payments 3,581,583 Less: imputed interest (675,128 ) Total lease liabilities, reflecting present value of future minimum lease payments $ 2,906,455 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax [Abstract] | |
INCOME TAXES | Note 8 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 (benefit) for income taxes consists of the following: For the Fiscal Years Ended 2023 2022 Current: Federal $ - $ - State and local - - Total current tax provision - - Deferred: Federal 755,981 (150,204 ) State and local 50,399 (12,442 ) Total deferred tax expense (benefit) 806,380 (162,646 ) Total provision (benefit) $ 806,380 $ (162,646 ) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows: As of March 31, 2023 2022 Deferred tax assets: Net operating loss $ 1,556,081 $ 424,263 Operating right-of-use liability 624,914 714,947 Stock options 798,083 883,522 Accrued expenses 18,045 67,146 Inventory 189,282 150,460 Total deferred tax assets 3,186,405 2,240,338 Valuation allowance (2,049,283 ) - Deferred tax assets, net of valuation allowance 1,137,122 2,240,338 Deferred tax liabilities: Depreciation 564,816 766,255 Operating lease right-of-use assets 572,306 667,703 Total deferred tax liabilities 1,137,122 1,433,958 Deferred tax assets (liability), net $ - $ 806,380 A reconciliation of the provision for income taxes with the amounts computed by applying the statutory Federal income tax rate to income before provision for income taxes is as follows: For the Fiscal Years Ended 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 0.5 % 1.4 % Stock-based compensation (0.4 )% 1.6 % Other 0.3 % 0.2 % Debt forgiveness income of the PPP Note- not subject to income tax - % (36.9 )% True-up of tax provision 0.4 % - % Valuation allowance (36.0 )% - % Effective tax rate (14.2 )% (12.7 )% During the fiscal 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. For the year ended March 31, 2023, the Company’s effective tax rate was (14.2)%, which consisted principally of a federal rate of 21%, and the Company’s estimate of state taxes, net of federal benefit, of 0.5%, offset by a charge of (36.0)% for the establishment of a full valuation allowance for the Company’s deferred tax assets at March 31, 2023. For the year ended March 31, 2022, the Company’s effective tax rate was (12.7)%, which consisted principally of a federal rate of 21%, and the Company’s estimate of state taxes, net of federal benefit, of 1.4%, offset by the impact of a gain on the forgiveness of debt that was not subject to income tax. As of March 31, 2023, for U.S. federal and state income tax reporting purposes, the Company has approximately $7,237,000 of unused net operating losses (“NOLs”) available for carry forward to future years. As a result of the Tax Cuts and Jobs Act of 2017 (“TCJA”), for U.S. income tax purposes, NOLs generated in tax years beginning after December 31, 2017 may be carried forward indefinitely to offset future taxable income. The total amount of the Federal NOL as of March 31, 2023, may be carried forward indefinitely. The state and city NOLs may generally be carried forward for twenty years and may be applied against future taxable income. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes that could occur if the Company issues additional shares of common stock. The Company remains subject to examination by tax authorities for fiscal tax years ended March 31, 2020 and later. Based upon the Company’s recent taxable losses, the Company performed an analysis and determined that it was necessary to establish a valuation reserve with respect to its net deferred income tax assets as of and for the fiscal year ended March 31, 2023. As of March 31, 2023, management does not believe that the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Mar. 31, 2023 | |
Equity Incentive Plans [Abstract] | |
EQUITY INCENTIVE PLANS | Note 9 EQUITY INCENTIVE PLANS: 2011 Equity Incentive Plan On August 31, 2011, the Company’s stockholders approved the adoption of the Company’s 2011 Equity Incentive Plan (“2011 Plan”) to provide for the grant of stock options and restricted stock awards to purchase up to 750,000 shares of the Company’s common stock to all employees, consultants and other eligible participants including senior management and members of the Board of Directors of the Company. The 2011 Equity Incentive Plan expired on August 31, 2021 after which no further awards will be granted under such plan. 2020 Equity Incentive Plan On November 18, 2020, the Board of Directors approved the Company’s 2020 Equity Incentive Plan (the “2020 Plan”) for submission to stockholders at the next annual meeting. On December 16, 2020, the Company’s stockholders approved the adoption of the 2020 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 both the 2011 Plan and the 2020 Plan (together the “Plans”) 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 Plans, 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 stockholders, 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 Plans also provide 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 not 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. Stock-based compensation expense Stock-based compensation expense is recorded in general and administrative expenses included in the statement of operations. For the fiscal years ended March 31, 2023 and 2022, stock-based compensation expense was $0 and $383,083, respectively. As of March 31, 2023 there was no unrecognized compensation expense related to unamortized stock options. Stock option activity The following table provides the stock option activity: Shares Weighted Avg. Grant Date Fair Value Weighted Avg. Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of March 31, 2022 482,217 $ 7.91 $ 14.69 6.56 $ 865 Granted - - - Exercised - - - Forfeited or Expired (15,000 ) 6.76 13.70 Balance as of March 31, 2023 467,217 $ 7.94 $ 14.72 5.51 $ 105 Exercisable as of March 31, 2023 467,217 $ 7.94 $ 14.72 5.51 $ 105 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. |
Cash Bonus Plan
Cash Bonus Plan | 12 Months Ended |
Mar. 31, 2023 | |
Cash Bonus Plan [Abstract] | |
CASH BONUS PLAN | Note 10 CASH BONUS PLAN: In 1987, the Company adopted a cash bonus plan (the “Cash Bonus Plan”) for non-union, management and administration staff. Unless otherwise approved by the Company’s Board of Directors, contributions to the Cash Bonus Plan are made by the Company only when the Company is profitable for the fiscal year. As of March 31, 2023 and 2022, the Company’s accrued bonus was $354,250 and $408,000, respectively. Bonus expense recorded for each of the years ended March 31, 2023 and 2022 was $82,901 and $402,000, respectively. The Company paid bonus earned during the fiscal year ended March 31, 2023 of $354,250 in June 2023 and the bonus earned during the fiscal year ended March 31, 2022 of $137,750 in June 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 11 COMMITMENTS AND CONTINGENCIES: The Company maintains its operations in facilities located in both New York and Pennsylvania. On December 1, 2020, the Company entered into a 120 month extension of its lease agreement for an industrial building in Brooklyn, NY, expiring December 1, 2030. Monthly rent at inception was $20,400, such monthly rent escalates annually to a monthly rent of $28,426 for the final year of the lease term. The Company maintains a security deposit of $40,800, which is included in other assets on the accompanying balance sheet. On January 29, 2021, the Company entered into an 87 month lease agreement for an industrial building in Allentown, Pennsylvania, expiring March 30, 2028. Monthly rent at inception was $18,046, such that the monthly rent escalates annually to a monthly rent of $20,920 for the final year of the lease term. The Company maintains a security deposit of $35,040, which is included in other assets on the accompanying balance sheet. The rental expense for the fiscal years ended March 31, 2023 and 2022, was $550,904 and $573,125, 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). The Multi-Employer Plan is covered by a collective bargaining agreement with the Company, which expires on March 31, 2024. Contributions are made in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the Multi-Employer Pension Plan Amendments Act of 1990 (the “1990 Act”), the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these liabilities are contingent upon the termination, withdrawal, or partial withdrawal from the Multi-Employer Plan. The risks of participating in a multiemployer plan are different from single-employer plans, for example, assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, if a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers, and if a participating employer chooses to stop participating in these multiemployer plans, the employer may be required to pay those plans an amount based on the underfunded status of the plan. Based upon the Multi-Employer Plan’s consulting actuary, the actuarial certification of plan status for the years ended December 31, 2023 (preliminary assessment) and December 31, 2022 is neither endangered nor critical under the Pension Protection Act of 2006. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $52,815 and $56,791 for the fiscal years ended March 31, 2023 and 2022, respectively. For the plan years ended December, 31, 2022 and 2021 respectively, the Company was listed in the United Auto Workers of America, Local 259 as providing less than 5% of the total contributions for the plan. The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan nor does it intend to do so in the future. |
Concentrations
Concentrations | 12 Months Ended |
Mar. 31, 2023 | |
Concentrations [Abstract] | |
CONCENTRATIONS | Note 12 CONCENTRATIONS: During the fiscal year ended March 31, 2023, no customers accounted for greater than 10% of the Company’s net sales. During the fiscal year ended March 31, 2022, three customers accounted for 37.1% of the Company’s net sales, each represented 12.5%, 12.3% and 12.3%, respectively. As of March 31, 2023, three customers accounted for 44.5% of accounts receivable, each represented 23.2%, 11.0% and 10.3%, respectively. As of March 31, 2022, one customer accounted for 15.0% of accounts receivable. During the fiscal years ended March 31, 2023 and 2022, one vendor accounted for 10.0% and 10.3% of the Company’s purchases, respectively. As of March 31, 2023 and 2022 one vendor accounted for 20.9% and two vendors accounted for 21.4% of accounts payable, respectively. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The core principle underlying Accounting Standards Codification ASC 606 “Revenue from Contracts with Customers” (“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 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 recognizes revenue and the related cost of products sold when the performance obligations are satisfied. The performance obligations are typically satisfied upon shipment of physical goods. In addition to the satisfaction of the performance obligations, the following conditions are required for revenue recognition: an arrangement exists, there is a fixed price, and collectability is reasonably assured. 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 provide a replacement at its own cost. The Company’s disaggregated revenue by geographical location is as follows: For the Fiscal Years Ended 2023 2022 Domestic $ 16,297,959 $ 18,480,329 International 2,838,931 5,785,260 Total $ 19,136,890 $ 24,265,589 Approximately 39.8% and 68.2% of the international net revenues for fiscal years ended March 31, 2023 and 2022, respectively, represent sales to customers located in China. The Company’s the aggregated revenue by industry as a percentage of total revenue is provided below: For the Fiscal Years Ended 2023 2022 Industry % % Defense 56.3 59.1 Commercial Aerospace 25.7 14.7 Space 9.4 17.7 Other 8.6 8.5 |
Inventories | Inventories: Inventories are comprised of raw materials, work-in-process and finished goods, and 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 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 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’s allowance for obsolete inventory was $433,000 and $211,000 as of March 31, 2023 and 2022, respectively, and was reflected as a reduction of inventory. |
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. At times, the Company’s cash in banks was in excess of the Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any loss as a result of these deposits. |
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 on a straight-line basis 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: The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary and permanent differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. |
Uncertain Tax Positions | Uncertain Tax Positions: The Company has recorded liabilities for underpayment of income taxes and related interest and penalties for uncertain tax positions based on the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties associated with unrecognized tax benefits as part of the income tax provision. |
(Net Loss) Earnings Per Share | (Net Loss) 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 (loss) earnings per common share are computed by dividing net (loss) income by the weighted average number of common shares outstanding for the fiscal year. Diluted (loss) earnings per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive). Basic and diluted (net loss) earnings per share is calculated as follows: For the Fiscal Years Ended 2023 2022 Net (loss) income $ (6,502,924 ) $ 1,438,134 (Net loss) earnings per common share: Basic $ (2.74 ) $ 0.61 Diluted $ (2.74 ) $ 0.59 Weighted average number of common shares outstanding-basic (in-thousands) 2,370 2,370 Dilutive effect of options to the extent that that such options are determined to be in the money for the period (in thousands) - 78 Weighted average number of common shares outstanding-fully diluted (in thousands) 2,370 2,448 Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted (net loss) earnings per share because the effect of their inclusion would have been anti-dilutive. For the Fiscal Years Ended 2023 2022 Potentially dilutive options to purchase common shares 467,217 330,000 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The carrying value of the Company’s financial instruments, consisting of accounts receivable and accounts payable, approximate their fair value due to the relatively short maturity of these instruments. The Company is exposed to credit risk through its cash but mitigates this risk by keeping these deposits at major financial institutions. The Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Level 3 - Significant unobservable inputs that cannot be corroborated by market data and inputs that are derived principally from or corroborated by observable market data or correlation by other means. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (“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, an incremental borrowing rate for determining for its leases the present value of lease payments, the calculation of inventory obsolescence, as well as determining the amount of the valuation allowance for deferred income tax assets, net. Actual amounts could differ from those estimates. |
Segment Information | Segment Information: The Company identifies its operating segments in accordance with Accounting Standards Codification (“ASC”) 280, Segment Reporting (“ASC 280”). Operating segments are defined as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, its Chief Executive Officer, manages the Company’s operations on a combined basis for the purposes of allocating resources. Accordingly, the Company has determined it operates and manages its business in a single reportable operating segment. |
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 fiscal years ended March 31, 2023 and 2022, respectively. |
Stock-Based Compensation | Stock-Based Compensation: 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 the 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. The Company determined the fair value of the stock option grants based upon the assumptions as provided below. There were no stock options granted during the fiscal year ended March 31, 2023. For the Fiscal Years Ended 2023 2022 Weighted Average Stock Price $ - $ 15.18 Expected life (in years) - 5 Expected volatility - % 55 % Dividend yield - % 0 % Risk-Free interest rate, per annum - % 1.4 % |
Recent Accounting Standards | Recent Accounting Standards Financial Instruments - Credit Losses In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which was subsequently revised by ASU 2018-19 and ASU 2020-02. The ASU introduces a new model for assessing impairment on most financial assets. Entities will be required to use a forward-looking expected loss model, which will replace the current incurred loss model, which will result in earlier recognition of allowance for losses. The ASU will be effective for the Company’s first interim period of the fiscal year ended March 31, 2024. The Company has evaluated the impact of the adoption of ASU 2016-13, and related updates, and has determined that the impact would not be material to its financial statements and disclosures. |
Subsequent Events | Subsequent Events: The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were available to be issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Disaggregated Revenue by Geographical Location | The Company’s disaggregated revenue by geographical location is as follows: For the Fiscal Years Ended 2023 2022 Domestic $ 16,297,959 $ 18,480,329 International 2,838,931 5,785,260 Total $ 19,136,890 $ 24,265,589 |
Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue | The Company’s the aggregated revenue by industry as a percentage of total revenue is provided below: For the Fiscal Years Ended 2023 2022 Industry % % Defense 56.3 59.1 Commercial Aerospace 25.7 14.7 Space 9.4 17.7 Other 8.6 8.5 |
Schedule of Basic and Diluted Net Income Per Share | Basic and diluted (net loss) earnings per share is calculated as follows: For the Fiscal Years Ended 2023 2022 Net (loss) income $ (6,502,924 ) $ 1,438,134 (Net loss) earnings per common share: Basic $ (2.74 ) $ 0.61 Diluted $ (2.74 ) $ 0.59 Weighted average number of common shares outstanding-basic (in-thousands) 2,370 2,370 Dilutive effect of options to the extent that that such options are determined to be in the money for the period (in thousands) - 78 Weighted average number of common shares outstanding-fully diluted (in thousands) 2,370 2,448 For the Fiscal Years Ended 2023 2022 Potentially dilutive options to purchase common shares 467,217 330,000 |
Schedule of Fair Value of the Stock Option Grant | The Company determined the fair value of the stock option grants based upon the assumptions as provided below. There were no stock options granted during the fiscal year ended March 31, 2023. For the Fiscal Years Ended 2023 2022 Weighted Average Stock Price $ - $ 15.18 Expected life (in years) - 5 Expected volatility - % 55 % Dividend yield - % 0 % Risk-Free interest rate, per annum - % 1.4 % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of inventories | Inventories are comprised of the following: As of March 31, 2023 2022 Raw materials $ 8,332,522 $ 7,875,015 Work in progress 1,048,097 1,505,614 Finished goods 498,773 558,758 Allowance for obsolete inventory (433,000 ) (211,000 ) $ 9,446,392 $ 9,728,387 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment are as follows: As of March 31, 2023 2022 Computers $ 639,204 $ 572,423 Leasehold improvements 2,922,521 2,784,674 Machinery and equipment 7,989,915 7,909,982 Tools and dies 5,286,624 5,030,650 Furniture and fixtures 357,352 352,372 Website development cost 9,785 9,785 $ 17,205,401 $ 16,659,886 Less: accumulated depreciation and amortization (13,340,335 ) (12,305,775 ) Property, Plant and Equipment, net $ 3,865,066 $ 4,354,111 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are comprised of the following: As of March 31, 2023 2022 Payroll and vacation accruals $ 788,136 $ 871,117 Sales commissions 58,685 48,681 Other current liabilities 55,328 31,308 $ 902,149 $ 951,106 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related to our Leases | Balance sheet information related to our leases is presented below: As of March 31, Balance Sheet Location 2023 2022 Operating leases: Right-of-use assets Operating lease right-of-use assets $ 2,661,779 $ 2,980,820 Right-of-use liability, current Operating lease liabilities $ 317,334 $ 285,275 Right-of-use lease liability, long-term Operating lease liabilities, non-current $ 2,589,121 $ 2,906,455 |
Schedule of Lease Term and the Weighted Average Discount Rate | The weighted-average remaining lease term and the weighted average discount rate for operating leases were: As of March 31, 2023 2022 Other information Weighted-average discount rate – operating leases 6.00 % 6.00 % Weighted-average remaining lease term – operating lease (in years) 6.8 7.8 |
Schedule of Remaining Operating Lease Payments | The total remaining operating lease payments included in the measurement of lease liabilities on the Company’s balance sheet as of March 31, 2023 was as follows: For the fiscal year ended March 31: Operating Lease Payments 2024 $ 483,184 2025 497,684 2026 519,036 2027 547,460 2028 563,891 Thereafter 970,328 Total gross operating lease payments 3,581,583 Less: imputed interest (675,128 ) Total lease liabilities, reflecting present value of future minimum lease payments $ 2,906,455 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax [Abstract] | |
Schedule of Provision For Income Taxes | The provision (benefit) for income taxes consists of the following: For the Fiscal Years Ended 2023 2022 Current: Federal $ - $ - State and local - - Total current tax provision - - Deferred: Federal 755,981 (150,204 ) State and local 50,399 (12,442 ) Total deferred tax expense (benefit) 806,380 (162,646 ) Total provision (benefit) $ 806,380 $ (162,646 ) |
Schedule of Provision for Income Taxes | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows: As of March 31, 2023 2022 Deferred tax assets: Net operating loss $ 1,556,081 $ 424,263 Operating right-of-use liability 624,914 714,947 Stock options 798,083 883,522 Accrued expenses 18,045 67,146 Inventory 189,282 150,460 Total deferred tax assets 3,186,405 2,240,338 Valuation allowance (2,049,283 ) - Deferred tax assets, net of valuation allowance 1,137,122 2,240,338 Deferred tax liabilities: Depreciation 564,816 766,255 Operating lease right-of-use assets 572,306 667,703 Total deferred tax liabilities 1,137,122 1,433,958 Deferred tax assets (liability), net $ - $ 806,380 |
Schedule of Reconciliation of the Provision for Income Taxes | A reconciliation of the provision for income taxes with the amounts computed by applying the statutory Federal income tax rate to income before provision for income taxes is as follows: For the Fiscal Years Ended 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 0.5 % 1.4 % Stock-based compensation (0.4 )% 1.6 % Other 0.3 % 0.2 % Debt forgiveness income of the PPP Note- not subject to income tax - % (36.9 )% True-up of tax provision 0.4 % - % Valuation allowance (36.0 )% - % Effective tax rate (14.2 )% (12.7 )% |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity Incentive Plans [Abstract] | |
Schedule of Stock Option Activity | The following table provides the stock option activity: Shares Weighted Avg. Grant Date Fair Value Weighted Avg. Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of March 31, 2022 482,217 $ 7.91 $ 14.69 6.56 $ 865 Granted - - - Exercised - - - Forfeited or Expired (15,000 ) 6.76 13.70 Balance as of March 31, 2023 467,217 $ 7.94 $ 14.72 5.51 $ 105 Exercisable as of March 31, 2023 467,217 $ 7.94 $ 14.72 5.51 $ 105 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for obsolete inventory | $ 433,000 | $ 211,000 |
China [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
International net sales percentage | 39.80% | 68.20% |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Estimated useful lives | 5 years | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Estimated useful lives | 7 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue by Geographical Location - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 19,136,890 | $ 24,265,589 |
Domestic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,297,959 | 18,480,329 |
International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,838,931 | $ 5,785,260 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue - Revenue [Member] - Concentration Risk [Member] | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defense [Member] | ||
Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue [Abstract] | ||
Percentage of revenue | 56.30% | 59.10% |
Commercial Aerospace [Member] | ||
Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue [Abstract] | ||
Percentage of revenue | 25.70% | 14.70% |
Space [Member] | ||
Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue [Abstract] | ||
Percentage of revenue | 9.40% | 17.70% |
Other [Member] | ||
Schedule of Aggregated Revenue by Industry as a Percentage of Total Revenue [Abstract] | ||
Percentage of revenue | 8.60% | 8.50% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Basic and Diluted Net Income Per Share - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Basic and Diluted Net Income Per Share [Abstract] | ||
Net (loss) income (in Dollars) | $ (6,502,924) | $ 1,438,134 |
(Net loss) earnings per common share: | ||
Basic (in Dollars per share) | $ (2.74) | $ 0.61 |
Diluted (in Dollars per share) | $ (2.74) | $ 0.59 |
Weighted average number of common shares outstanding-basic (in-thousands) | 2,370 | 2,370 |
Dilutive effect of options to the extent that that such options are determined to be in the money for the period (in thousands) | 78 | |
Weighted average number of common shares outstanding-fully diluted (in thousands) | 2,370 | 2,448 |
Potentially dilutive options to purchase common shares | 467,217 | 330,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Fair Value of the Stock Option Grant - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Fair Value of the Stock Option Grant [Abstract] | ||
Weighted Average Stock Price (in Dollars per share) | $ 15.18 | |
Expected life (in years) | 5 years | |
Expected volatility | 55% | |
Dividend yield | 0% | |
Risk-Free interest rate, per annum | 1.40% |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Inventories Abstract | ||
Raw materials | $ 8,332,522 | $ 7,875,015 |
Work in progress | 1,048,097 | 1,505,614 |
Finished goods | 498,773 | 558,758 |
Allowance for obsolete inventory | (433,000) | (211,000) |
Total | $ 9,446,392 | $ 9,728,387 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 1,034,559 | $ 837,201 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17,205,401 | $ 16,659,886 |
Less: accumulated depreciation and amortization | (13,340,335) | (12,305,775) |
Property, Plant and Equipment, net | 3,865,066 | 4,354,111 |
Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 639,204 | 572,423 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,922,521 | 2,784,674 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,989,915 | 7,909,982 |
Tools and Dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,286,624 | 5,030,650 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 357,352 | 352,372 |
Website Development Cost [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,785 | $ 9,785 |
PPP Loan and Note (Details)
PPP Loan and Note (Details) - PPP loan [Member] - USD ($) | Jun. 30, 2021 | Apr. 13, 2020 |
PPP Loan and Note (Details) [Line Items] | ||
Principal amount | $ 2,103,885 | |
Debt forgiveness income | $ 2,103,885 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of Other Current Liabilities - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Other Current Liabilities [Abstract] | ||
Payroll and vacation accruals | $ 788,136 | $ 871,117 |
Sales commissions | 58,685 | 48,681 |
Other current liabilities | 55,328 | 31,308 |
Total | $ 902,149 | $ 951,106 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Lease expense | $ 550,904 | $ 573,125 |
Operating lease, liability | $ 3,581,583 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Balance Sheet Information Related to our Leases - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Balance Sheet Information Related To Our Leases Abstract | ||
Right-of-use assets | $ 2,661,779 | $ 2,980,820 |
Right-of-use liability, current | 317,334 | 285,275 |
Right-of-use lease liability, long-term | $ 2,589,121 | $ 2,906,455 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Lease Term and the Weighted Average Discount Rate | Mar. 31, 2023 | Mar. 31, 2022 |
Other information | ||
Weighted-average discount rate – operating leases | 6% | 6% |
Weighted-average remaining lease term – operating lease (in years) | 6 years 9 months 18 days | 7 years 9 months 18 days |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Remaining Operating Lease Payments | Mar. 31, 2023 USD ($) |
Schedule Of Remaining Operating Lease Payments Abstract | |
2024 | $ 483,184 |
2025 | 497,684 |
2026 | 519,036 |
2027 | 547,460 |
2028 | 563,891 |
Thereafter | 970,328 |
Total gross operating lease payments | 3,581,583 |
Less: imputed interest | (675,128) |
Total lease liabilities, reflecting present value of future minimum lease payments | $ 2,906,455 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 29, 2019 | |
Income Taxes (Details) [Line Items] | |||
Internal revenue service (in Dollars) | $ 460,442 | ||
Effective tax rate | (14.20%) | (12.70%) | |
Federal rate | 21% | 21% | |
Net of federal benefit | 0.50% | 1.40% | |
valuation deferred tax assets | (36.00%) | ||
Net operating losses (in Dollars) | $ 1,556,081 | $ 424,263 | |
State and city NOLs carried forward | 20 years | ||
U.S. Federal and State [Member] | |||
Income Taxes (Details) [Line Items] | |||
Net operating losses (in Dollars) | $ 7,237,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Provision for Income Taxes - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | ||
Federal | ||
State and local | ||
Total current tax provision | ||
Deferred: | ||
Federal | 755,981 | (150,204) |
State and local | 50,399 | (12,442) |
Total deferred tax expense (benefit) | 806,380 | (162,646) |
Total provision (benefit) | $ 806,380 | $ (162,646) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Provision for Income Taxes - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Net operating loss | $ 1,556,081 | $ 424,263 |
Operating right-of-use liability | 624,914 | 714,947 |
Stock options | 798,083 | 883,522 |
Accrued expenses | 18,045 | 67,146 |
Inventory | 189,282 | 150,460 |
Total deferred tax assets | 3,186,405 | 2,240,338 |
Valuation allowance | (2,049,283) | |
Deferred tax assets, net of valuation allowance | 1,137,122 | 2,240,338 |
Deferred tax liabilities: | ||
Depreciation | 564,816 | 766,255 |
Operating lease right-of-use assets | 572,306 | 667,703 |
Total deferred tax liabilities | 1,137,122 | 1,433,958 |
Deferred tax assets (liability), net | $ 806,380 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Reconciliation of the Provision for Income Taxes | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Reconciliation of the Provision for Income Taxes [Abstract] | ||
U.S. federal statutory rate | 21% | 21% |
State taxes, net of federal benefit | 0.50% | 1.40% |
Stock-based compensation | (0.40%) | 1.60% |
Other | 0.30% | 0.20% |
Debt forgiveness income of the PPP Note- not subject to income tax | (36.90%) | |
True-up of tax provision | 0.40% | |
Valuation allowance | (36.00%) | |
Effective tax rate | (14.20%) | (12.70%) |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 16, 2020 | Aug. 31, 2011 | |
Equity Incentive Plans (Details) [Line Items] | ||||
Exercise price percentage | 110% | |||
Aggregate fair market value | $ 100,000 | |||
Stock-based compensation expense | $ 0 | $ 383,083 | ||
2011 Equity Incentive Plan [Member] | ||||
Equity Incentive Plans (Details) [Line Items] | ||||
Common stock, shares issued (in Shares) | 750,000 | |||
2020 Equity Incentive Plan [Member] | ||||
Equity Incentive Plans (Details) [Line Items] | ||||
Common stock, shares issued (in Shares) | 750,000 | |||
2020 Equity Incentive Plan [Member] | ||||
Equity Incentive Plans (Details) [Line Items] | ||||
Stockholder percentage | 10% |
Equity Incentive Plans (Detai_2
Equity Incentive Plans (Details) - Schedule of Stock Option Activity | 12 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Schedule of Stock Option Activity [Abstract] | |
Shares, Beginning balance (in Shares) | shares | 482,217 |
Weighted Avg.Grant Date Fair Value, Beginning balance | $ 7.91 |
Weighted Avg. Exercise Price, Beginning balance | $ 14.69 |
Remaining Contractual Term (Years), Beginning balance | 6 years 6 months 21 days |
Aggregate Intrinsic Value, Beginning balance (in Dollars) | $ | $ 865 |
Shares, Ending balance (in Shares) | shares | 467,217 |
Weighted Avg.Grant Date Fair Value, Ending balance | $ 7.94 |
Weighted Avg. Exercise Price, Ending balance | $ 14.72 |
Remaining Contractual Term (Years), Ending balance | 5 years 6 months 3 days |
Aggregate Intrinsic Value, Ending balance (in Dollars) | $ | $ 105 |
Shares, Exercisable (in Shares) | shares | 467,217 |
Weighted Avg.Grant Date Fair Value, Exercisable | $ 7.94 |
Weighted Avg. Exercise Price, Exercisable | $ 14.72 |
Remaining Contractual Term (Years), Exercisable | 5 years 6 months 3 days |
Aggregate Intrinsic Value, Exercisable (in Dollars) | $ | $ 105 |
Shares, Granted (in Shares) | shares | |
Weighted Avg.Grant Date Fair Value, Granted | |
Weighted Avg. Exercise Price, Granted | |
Shares, Exercised (in Shares) | shares | |
Weighted Avg.Grant Date Fair Value, Exercised | |
Weighted Avg. Exercise Price, Exercised | |
Shares, Forfeited or Expired (in Shares) | shares | (15,000) |
Weighted Avg.Grant Date Fair Value, Forfeited or Expired | $ 6.76 |
Weighted Avg. Exercise Price, Forfeited or Expired | $ 13.7 |
Cash Bonus Plan (Details)
Cash Bonus Plan (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Bonus Plan [Abstract] | ||
Accrued bonus | $ 354,250 | $ 408,000 |
Bonus expense | 82,901 | 402,000 |
Bonus paid | $ 354,250 | $ 137,750 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |||
Jan. 29, 2021 | Dec. 01, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies [Abstract] | ||||
Monthly inception rent | $ 18,046 | $ 20,400 | ||
Rental expense | 20,920 | 28,426 | ||
Security deposit | $ 35,040 | $ 40,800 | ||
Rental expense | $ 550,904 | $ 573,125 | ||
Multi employer plan of contributions cost | $ 52,815 | $ 56,791 | ||
Percentage of providing less | 5% |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Sales [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 10% | |
Three Customers [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 44.50% | 37.10% |
One Vendor [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 10% | 10.30% |
One Customers [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 23.20% | 12.50% |
Second Customers [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 11% | 12.30% |
Third Customers [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 10.30% | 12.30% |
Accounts Receivable [Member] | One Customer [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 15% | |
Accounts Payable [Member] | One Vendor [Member] | ||
Concentrations [Abstract] | ||
Concentration risk percentage | 20.90% | 21.40% |