Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Feb. 07, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TEL INSTRUMENT ELECTRONICS CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 3,255,887 | |
Amendment Flag | false | |
Entity Central Index Key | 96,885 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,162,154 | $ 972,633 |
Accounts receivable, net | 1,057,931 | 1,454,361 |
Inventories, net | 4,473,887 | 4,679,032 |
Prepaid expenses and other current assets | 156,135 | 128,071 |
Deferred income tax asset | 578,507 | 578,507 |
Total current assets | 7,428,614 | 7,812,604 |
Equipment and leasehold improvements, net | 135,379 | 193,518 |
Deferred income tax asset – non-current | 1,747,617 | 2,065,126 |
Other long-term assets | 33,509 | 36,871 |
Total assets | 9,345,119 | 10,108,119 |
Current liabilities: | ||
Current portion of long-term debt | 396,225 | 418,255 |
Capital lease obligations – current portion | 6,121 | 10,232 |
Accounts payable and accrued liabilities | 2,102,141 | 2,401,500 |
Federal and state taxes payable | 0 | 53,623 |
Deferred revenues – current portion | 253,031 | 48,766 |
Accrued payroll, vacation pay and payroll taxes | 612,517 | 836,589 |
Total current liabilities | 3,370,035 | 3,768,965 |
Subordinated notes payable - related parties | 0 | 25,000 |
Capital lease obligations – long-term | 15,381 | 20,524 |
Long-term debt | 3,696 | 304,560 |
Deferred revenues – long-term | 307,230 | 172,703 |
Warrant liability – long-term | 128,000 | 1,136,203 |
Other long-term liabilities | 0 | 7,800 |
Total liabilities | 3,824,342 | 5,435,755 |
Commitments | ||
Stockholders’ equity: | ||
Common stock, 4,000,000 shares authorized, par value $0.10 per share, 3,255,887 shares issued and outstanding, respectively | 325,586 | 325,586 |
Additional paid-in capital | 8,099,191 | 8,074,655 |
Accumulated deficit | (2,904,000) | (3,727,877) |
Total stockholders’ equity | 5,520,777 | 4,672,364 |
Total liabilities and stockholders’ equity | $ 9,345,119 | $ 10,108,119 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2016 | Mar. 31, 2016 |
Common stock, par value (in Dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued | 3,255,887 | 3,255,887 |
Common stock, shares outstanding | 3,255,887 | 3,255,887 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 4,236,519 | $ 5,970,865 | $ 14,654,917 | $ 18,635,174 |
Cost of sales | 2,602,268 | 3,936,108 | 9,318,425 | 12,541,656 |
Gross margin | 1,634,251 | 2,034,757 | 5,336,492 | 6,093,518 |
Operating expenses: | ||||
Selling, general and administrative | 865,370 | 767,923 | 2,652,252 | 2,517,487 |
Engineering, research and development | 615,007 | 541,502 | 1,783,655 | 1,477,290 |
Total operating expenses | 1,480,377 | 1,309,425 | 4,435,907 | 3,994,777 |
Income from operations | 153,874 | 725,332 | 900,585 | 2,098,741 |
Other income (expense): | ||||
Amortization of deferred financing costs | (1,359) | (1,357) | (4,072) | (4,072) |
Change in fair value of common stock warrants | 37,000 | (246,751) | 288,203 | (697,579) |
Interest expense | (11,620) | (23,687) | (46,953) | (79,156) |
Total other income (expense) | 24,021 | (271,795) | 237,178 | (780,807) |
Income before income taxes | 177,895 | 453,537 | 1,137,763 | 1,317,934 |
Income tax expense | 36,382 | 226,951 | 313,886 | 612,816 |
Net income | $ 141,513 | $ 226,586 | $ 823,877 | $ 705,118 |
Basic income (loss) per common share (in Dollars per share) | $ 0.04 | $ 0.07 | $ 0.25 | $ 0.22 |
Diluted income per common share (in Dollars per share) | $ 0.03 | $ 0.07 | $ 0.23 | $ 0.22 |
Weighted average shares outstanding: | ||||
Basic (in Shares) | 3,255,887 | 3,256,887 | 3,255,887 | 3,256,887 |
Diluted (in Shares) | 3,265,135 | 3,261,690 | 3,266,532 | 3,261,955 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 823,877 | $ 705,118 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 317,509 | 612,816 |
Depreciation and amortization | 95,209 | 122,399 |
Provision for bad debts | 0 | 1,205 |
Provision for inventory obsolescence | 20,000 | 35,713 |
Amortization of deferred financing costs | 4,072 | 4,072 |
Change in fair value of common stock warrant | (288,203) | 697,579 |
Non-cash stock-based compensation | 24,536 | 23,546 |
Changes in assets and liabilities: | ||
Decrease in accounts receivable | 396,430 | 596,529 |
Decrease (increase) in inventories | 185,145 | (812,003) |
(Increase) decrease in prepaid expenses & other assets | (28,774) | 28,393 |
Decrease in accounts payable and other accrued expenses | (299,359) | (1,238,440) |
Decrease in federal and state taxes | (53,623) | 0 |
(Decrease) increase in accrued payroll, vacation pay & withholdings | (224,072) | 215,019 |
Increase in deferred revenues | 338,792 | 5,401 |
Decrease in other long-term liabilities | (7,800) | (18,900) |
Net cash generated by operating activities | 1,303,739 | 978,447 |
Cash flows from investing activities: | ||
Purchases of equipment | (37,070) | (45,041) |
Net cash used in investing activities | (37,070) | (45,041) |
Cash flows from financing activities: | ||
Proceeds from bank loan | 0 | 18,000 |
Payment of warrant liability | (720,000) | 0 |
Repayment of long-term debt | (322,894) | (290,937) |
Repayment of subordinated notes - related parties | (25,000) | (205,000) |
Repayment of capitalized lease obligations | (9,254) | (12,348) |
Net cash used in financing activities | (1,077,148) | (490,285) |
Net (decrease) increase in cash and cash equivalents | 189,521 | 443,121 |
Cash and cash equivalents at beginning of period | 972,633 | 185,932 |
Cash and cash equivalents at end of period | 1,162,154 | 629,053 |
Supplemental cash flow information: | ||
Taxes paid | 87,374 | 0 |
Interest paid | $ 107,768 | $ 47,793 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Basis of Accounting [Text Block] | Note 1 – Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Tel-Instrument Electronics Corp. (the “Company” or “TIC”) as of December 31, 2016, the results of operations for the three and nine months ended December 31, 2016 and December 31, 2015, and statements of cash flows for the nine months ended December 31, 2016 and December 31, 2015. These results are not necessarily indicative of the results to be expected for the full year. The financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include disclosures normally made in an Annual Report on Form 10-K. The March 31, 2016 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016, as filed with the United States Securities and Exchange Commission (the “SEC”) on June 29, 2016 (the “Annual Report). |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 – Summary of Significant Accounting Policies During the nine months ended December 31, 2016, there have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Annual Report. |
Note 3 - Accounts Receivable, n
Note 3 - Accounts Receivable, net | 9 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3 – Accounts Receivable, net The following table sets forth the components of accounts receivable: December 31, 2016 March 31, 2016 Government $ 927,997 $ 1,343,477 Commercial 137,434 118,384 Less: Allowance for doubtful accounts (7,500 ) (7,500 ) $ 1,057,931 $ 1,454,361 |
Note 4 - Inventories, net
Note 4 - Inventories, net | 9 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 4 – Inventories, net Inventories consist of: December 31, 2016 March 31, 2016 Purchased parts $ 2,999,640 $ 3,420,249 Work-in-process 1,491,461 1,446,293 Finished goods 292,786 102,490 Less: Inventory reserve (310,000 ) (290,000 ) $ 4,473,887 $ 4,679,032 |
Note 5 - Net Income per Share
Note 5 - Net Income per Share | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 5 – Net Income per Share Net income per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income (loss) per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS reflects the potential dilution that could occur if securities, including warrants and options, were converted into common stock. The dilutive effect of outstanding warrants and options is reflected in earnings per share by use of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation costs attributed to future services. Three Months Ended Three Months Ended December 31, 2016 December 31, 2015 Basic net income per share computation: Net income $ 141,513 $ 226,586 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net income per share $ 0.04 $ 0.07 Diluted net income per share computation Net income $ 141,513 $ 226,586 Less: Change in fair value of warrants 37,000 - Diluted income $ 104,513 226,586 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 9,248 4,803 Total adjusted weighted-average shares 3,265,135 3,261,690 Diluted net income per share $ 0.03 $ 0.07 Nine Months Ended Nine Months Ended December 31, 2016 December 31, 2015 Basic net income per share computation: Net income $ 823,877 $ 705,118 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net income per share $ 0.25 $ 0.22 Diluted net income per share computation Net income $ 823,877 $ 705,118 Change in fair value of warrants 70,000 - Diluted income $ 753,877 705,118 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 10,645 5,068 Total adjusted weighted-average shares 3,266,532 3,261,955 Diluted net income per share $ 0.23 $ 0.22 The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share: December 31, 2016 December 31, 2015 Stock options 71,000 80,000 Warrants - 286,920 71,000 366,920 |
Note 6 - Long-Term Debt
Note 6 - Long-Term Debt | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | Note 6 – Long-Term Debt Term Loans with Bank of America In November 2014, the Company entered into a term loan in the amount of $1,200,000 with Bank of America. The term loan is for three years, and matures in November 2017. Monthly payments are at $36,551 including interest at 6%. The term loan is collateralized by substantially all of the assets of the Company. At December 31, 2016 and March 31, 2016, the outstanding balances were $390,113 and $693,407, respectively. At December 31, 2016, $390,113 was classified as current. In July 2015, the Company entered into a term loan in the amount of $18,000 with Bank of America. The term loan is for three years, and matures in July 2018. Monthly payments are at $536 including interest at 4.5%. The term loan is collateralized by substantially all of the assets of the Company. At December 31, 2016 and March 31, 2016, the outstanding balances were $9,808 and $14,211, respectively. At December 31, 2016, $6,112 was classified as current. Automobile Loan In March 2014, the Company entered into a loan with Ford Credit to purchase a van for the Company in the amount of $23,712. Such note has a term of five (5) years with an annual interest rate of 8.79% and monthly payments of $492. During the three months ended December 31, 2016, the Company paid the remaining balance of this loan and the accrued interest. The outstanding balances at December 31, 2016 and March 31, 2016 were $-0- and $15,197, respectively. Line of Credit On March 21, 2016, the Company entered into a line of credit agreement with Bank of America, which expires March 31, 2017. The line provides a revolving credit facility with borrowing capacity of up to $500,000. There are no covenants or borrowing base calculations associated with his line of credit. Interest on any outstanding balance is payable monthly at an annual interest rate equal to the LIBOR (London Interbank Offered Rates) Daily Floating plus 3.75 percentage points. The Company’s interest rate was 4.96% at December 31, 2016. The line is collateralized by substantially all of the assets of the Company. The Company has not made any borrowings against this line of credit. As of December 31, 2016, the remaining availability under this line is $500,000. The Company is currently negotiating an extension for this line of credit. |
Note 7 - Deferred Revenues
Note 7 - Deferred Revenues | 9 Months Ended |
Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue Disclosure [Text Block] | Note 7 – Deferred Revenues In June 2016, the Company negotiated a settlement with a customer in the amount of $679,935 for price increases due to delays on a production release. Deferred revenues are recognized based upon the shipment of units under this contract. During the three and nine months ended December 31, 2016, the Company recognized $127,452 and $470,288, respectively, of this amount as revenues. As of December 31, 2016, the remaining deferred revenues related to the above-mentioned settlement amounted to $209,647. It is expected that the most of this remaining amount will be recognized in the current fiscal year. |
Note 8 - Segment Information
Note 8 - Segment Information | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 8 – Segment Information In accordance with FASB ASC 280, “Disclosures about Segments of an Enterprise and related information”, the Company determined it has two reportable segments - avionics government and avionics commercial. There are no inter-segment revenues. The Company is organized primarily on the basis of its avionics products. The avionics government segment consists primarily of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries either directly or through distributors. The avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines, directly or through commercial distributors, and to general aviation repair and maintenance shops. The Company develops and designs test equipment for the avionics industry and as such, the Company’s products and designs cross segments. Management evaluates the performance of its segments and allocates resources to them based on gross margin. The Company’s general and administrative costs and sales and marketing expenses, and engineering costs are not segment specific. As a result, all operating expenses are not managed on a segment basis. Net interest includes expenses on debt and income earned on cash balances, both maintained at the corporate level. Segment assets include accounts receivable and work-in-process inventory. Asset information, other than accounts receivable and work-in-process inventory, is not reported, since the Company does not produce such information internally. All long-lived assets are located in the U.S. The table below presents information about reportable segments within the avionics business for the three and six month periods ending December 31, 2016 and 2015: Three Months Ended December 31, 2016 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 3,771,384 $ 465,135 $ 4,236,519 $ - $ 4,236,519 Cost of sales 2,297,157 305,111 2,602,268 - 2,602,268 Gross margin 1,474,227 160,024 1,634,251 - 1,634,251 Engineering, research, and development 615,007 - 615,007 Selling, general and administrative 256,599 608,771 865,370 Amortization of deferred financing costs - 1,359 1,359 Change in fair value of common stock warrants - (37,000 ) (37,000 ) Interest expense, net - 11,620 11,620 Total expenses 871,606 584,750 1,456,356 Income (loss) before income taxes $ 762,645 $ (584,750 ) $ 177,895 Three Months Ended December 31, 2015 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 5,658,695 $ 312,170 $ 5,970,865 $ - $ 5,970,865 Cost of sales 3,709,998 226,110 3,936,108 - 3,936,108 Gross margin 1,948,697 86,060 2,034,757 - 2,034,757 Engineering, research, and development 541,502 - 541,502 Selling, general and administrative 203,249 564,674 767,923 Amortization of deferred financing costs - 1,357 1,357 Change in fair value of common stock warrants - 246,751 246,751 Interest expense, net - 23,687 23,687 Total expenses 744,751 836,469 1,581,220 Income (loss) before income taxes $ 1,290,006 $ (836,469 ) $ 453,537 Nine Months Ended December 31, 2016 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 12,981,768 $ 1,673,149 $ 14,654,917 $ - $ 14,654,917 Cost of sales 8,067,636 1,250,789 9,318,425 - 9,318,425 Gross margin 4,914,132 422,360 5,336,492 - 5,336,492 Engineering, research, and development 1,783,655 - 1,783,655 Selling, general and administrative 946,589 1,705,663 2,652,252 Amortization of deferred financing costs - 4,072 4,072 Change in fair value of common stock warrants - (288,203 ) (288,203 ) Interest expense, net - 46,953 46,953 Total expenses 2,730,244 1,468,485 4,198,729 Income (loss) before income taxes $ 2,606,248 $ (1,468,485 ) $ 1,137,763 Nine Months Ended December 31, 2015 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 17,248,766 $ 1,386,408 $ 18,635,174 $ - $ 18,635,174 Cost of sales 11,506,710 1,034,946 12,541,656 - 12,541,656 Gross margin 5,742,056 351,462 6,093,518 - 6,093,518 Engineering, research, and development 1,477,290 - 1,477,290 Selling, general and administrative 908,829 1,608,658 2,517,487 Amortization of deferred financing costs - 4,072 4,072 Change in fair value of common stock warrants - 697,579 697,579 Interest expense, net - 79,156 79,156 Total expenses 2,386,119 2,389,465 4,775,584 Income (loss) before income taxes $ 3,707,399 $ (2,389,465 ) $ 1,317,934 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 9 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 9 – Income Taxes FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes” (“ASC 740-10”) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company does not have any unrecognized tax benefits. The tax effect of temporary differences, primarily net operating loss carryforwards, asset reserves and accrued liabilities, gave rise to the Company’s deferred tax asset in the accompanying December 31, 2016 and March 31, 2016 condensed consolidated balance sheets. Deferred income taxes are recognized for the tax consequence of such temporary differences at the enacted tax rate expected to be in effect when the differences reverse. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 9 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 10 – Fair Value Measurements FASB ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and expands disclosures about fair value measurements. As defined in ASC 820-10, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observation of those inputs. ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs 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 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy defined by ASC 820-10 are as follows: · Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. · Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. · Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The valuation techniques that may be used to measure fair value are as follows: · Market approach — Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. · Income approach — Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models and excess earnings method. · Cost approach — Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The carrying value of the Company’s borrowings is a reasonable estimate of its fair value as borrowings under the Company’s credit facility reflect currently available terms and conditions for similar debt. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of September 30, 2016 and March 31, 2016. As required by ASC 820-10, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. December 31, 2016 Level I Level II Level III Total Total Assets $ - $ - $ - $ - Warrant liability - - 128,000 128,000 Total Liabilities $ - $ - $ 128,000 $ 128,000 March 31, 2016 Level I Level II Level III Total Total Assets $ - $ - $ - $ - Warrant liability - - 1,136,203 1,136,203 Total Liabilities $ - $ - $ 1,136,203 $ 1,136,203 The Company adopted the guidance of ASC 815 “Derivative and Hedging”, which requires that we mark the value of our warrant liability to market and recognize the change in valuation in our statement of operations each reporting period. Determining the warrant liability to be recorded requires us to develop estimates to be used in calculating the fair value of the warrant. The following table provides a summary of the changes in fair value of our Level 3 financial liabilities from March 31, 2016 through September 30, 2016, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to the liability held at September 30, 2016: Level 3 Reconciliation Balance at beginning of period (Gains) and losses for the period (realized and unrealized) Purchases, issuances, sales and settlements, net Transfers in or out of Level 3 Balance at the end of period Warrant liability $ 1,136,203 $ (288,203 ) $ (720,000 ) $ - $ 128,000 Total Liabilities $ 1,136,203 $ (288,203 ) $ (720,000 ) $ - $ 128,000 The common stock warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign corporation. The warrants do not qualify for hedge accounting, and, as such, all changes in the fair value of these warrants are recognized as other income/expense in the statement of operations until such time as the warrants are exercised or expire. Since these common stock warrants do not trade in an active securities market, the Company recognized a warrant liability and estimated the fair value of these warrants using the Black-Scholes options model using the following assumptions until the payment of the loan in November 2014. With the payment of the loan in November 2014, the holder has the right, exercisable at any time, in writing (the “Warrant Put Notice”), to cause the Company, subject to the terms and conditions hereof, to purchase from the holder all, or any portion, of the warrant for the warrant put repurchase price (the “Repurchase Price”). The Repurchase Price is the greater of 1) Adjusted EBITDA (as defined below) per share as of the date of the Warrant Put Notice, less $0.01, multiplied by the number of warrants or 2) the product of the current market price per share as of the date of the Warrant Put Notice, less the purchase price of the warrant or warrants, multiplied by the number of warrants, if this amount is higher. “Adjusted EBITDA” means EBITDA, multiplied by 5, plus cash and cash equivalents less unpaid debt divided by the number of shares outstanding on a fully diluted basis. During May 2016, BCA Mezzanine Fund LLP (“BCA”) informed the Company that BCA has elected to exercise its “put option”, thereby requiring the Company to purchase all the warrants held by BCA. Total warrants were to purchase a total of 236,920 shares of the Company’s common stock. The table below shows the warrants held by BCA for which the “put option” has been exercised. Date of Warrant Expiration Date Number of Warrants Exercise Price 09-10-2010 09-10-2019 136,920 $ 6.70 07-26-2012 09-10-2019 20,000 $ 3.35 11-20-2012 09-10-2019 20,000 $ 3.56 02-14-2013 09-10-2019 20,000 $ 3.58 07-12-2013 09-10-2019 20,000 $ 3.33 08/12/2013 09-10-2019 20,000 $ 3.69 The value of the warrants for the 236,920 shares of the Company’s common stock at the time of exercise was $720,000, and the Company paid this amount using cash from operations in August 2016, thereby extinguishing the warrant liability with BCA. The warrant liability for these warrants was $-0- at December 31, 2016 as compared to $938,203 at March 31, 2016. Upon payment to BCA, the Company has remaining warrants with an outside investor to purchase 50,000 shares of the Company’s common stock at an exercise price of $3.35 per share or exercising the “put option” to the Company in the same fashion as BCA. The warrant liability of the 50,000 warrants was $128,000 at December 31, 2016 as compared to $198,000 at March 31, 2016. |
Note 11 - Reclassifications
Note 11 - Reclassifications | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Reclassifications [Text Block] | Note 11 – Reclassifications Certain prior year and period amounts have been reclassified to conform to the current period presentation. |
Note 12 - Litigation
Note 12 - Litigation | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note 12 – Litigation Contingencies are recorded in the consolidated financial statements when it is probable that a liability will be incurred and the amount of the loss is reasonably estimable, or otherwise disclosed, in accordance with Accounting Standards Codification 450, Contingencies (“ASC 450”). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company will, when applicable, adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss or if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. On March 24, 2009, Aeroflex Wichita, Inc. (“Aeroflex”) filed a petition against the Company and two of its employees in the District Court, Sedgwick County, Kansas, Case No. 09 CV 1141 (the “Aeroflex Action”), alleging that the Company and its two employees misappropriated Aeroflex’s proprietary technology in connection with the Company winning a substantial contract from the U.S. Army (the “Award”), to develop new Mode-5 radar test sets and kits to upgrade the existing TS-4530 radar test sets to Mode 5. Aeroflex’s petition alleges that in connection with the Award, the Company and its named employees misappropriated Aeroflex’s trade secrets; tortiously interfered with its business relationship; conspired to harm Aeroflex and tortiously interfered with its contract and seeks injunctive relief and damages. The central basis of all the claims in the Aeroflex Action is that the Company misappropriated and used Aeroflex proprietary technology and confidential information in winning the Award. In February 2009, subsequent to the Company winning the Award, Aeroflex filed a protest of the Award with the Government Accounting Office (“GAO”). In its protest, Aeroflex alleged, inter alia, that the Company used Aeroflex’s proprietary technology in order to win the Award, the same material allegations as were later alleged in the Aeroflex Action. On or about March 17, 2009, the U.S. Army Contracts Attorney and the U.S. Army Contracting Officer each filed a statement with the GAO, expressly rejecting Aeroflex’s allegations that the Company used or infringed Aeroflex proprietary technology in winning the Award, and concluding that the Company had used only its own proprietary technology. On April 6, 2009, Aeroflex withdrew its protest. In December 2009, the Kansas District Court dismissed the Aeroflex Action on jurisdiction grounds. Aeroflex appealed this decision. In May 2012, the Kansas Supreme Court reversed the decision and remanded the Aeroflex Action to the Kansas District Court for further proceedings. On May 23, 2016, the Company filed a motion for summary judgment based on Aeroflex’s lack of jurisdictional standing to bring the case. The motion asserts that Aeroflex does not own the intellectual property at issue since it is a bare licensee of Northrop Grumman. Northrop Grumman had declined to join this suit as a plaintiff. As such, it is our contention that Aeroflex lacks standing to sue alone. Also, the motion raises the fact that in December 2011 Aeroflex allowed the license to expire, so that Aeroflex’s claims are either moot or it lacks standing to sue for damages allegedly accruing after the license ended. The Kansas court has rejected this summary judgment motion but has not yet issued a written opinion detailing its reasoning. On January 4, 2017, the Company filed a summary judgment motion on the merits of the issues in dispute. This motion is scheduled to be heard on February 9, 2017. The current Scheduling Order has the trial date set for February 27, 2017 and is estimated to last three weeks. The Company is optimistic as to the outcome of this litigation. However, the outcome of any litigation is unpredictable and an adverse decision in this matter could have a material adverse effect on our financial condition, results of operations or liquidity. Other than the matters outlined above, we are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of executive officers of our Company, threatened against or affecting our Company, or our common stock in which an adverse decision could have a material effect. |
Note 13 - New Accounting Pronou
Note 13 - New Accounting Pronouncements | 9 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 13 – New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 (“Improvements to Employee Share-Based Payment Accounting”) which simplifies several aspects of accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which is an update to Topic 740, “Income Taxes”. The update will require that all deferred tax assets and liabilities be classified as non-current. The update is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. ASU 2015-17 will have a material impact on the Company’s balance sheet, as the deferred tax reported as a current asset will be reported as a non-current asset once the update is effective, resulting in a decrease to the Company’s current ratio. As of December 31, 2016, the Company reported $578,507 of deferred tax as a current asset. It will not have any material impact on the Company’s results of operations. In May 2014, the FASB issued ASU 2014-09 that introduces a new five-step revenue recognition model in which an entity should 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. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In March 2016, the FASB issued ASU 2016-08 which further clarifies the guidance on the principal versus agent considerations within ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 to improve revenue recognition in the areas of collectability, presentation of sales tax and other similar taxes collected from customers, noncash consideration, contract modifications and completed contracts at transition. This update also amends the disclosure requirements within ASU 2014-09 for entities that retrospectively apply the guidance. The latest amendments are intended to address implementation issues that were raised by stakeholders and discussed by the Revenue Recognition Transition Resource Group, and provide additional practical expedients. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact, if any, it will have on its consolidated financial statements. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s condensed consolidated financial statements. |
Note 3 - Accounts Receivable,19
Note 3 - Accounts Receivable, net (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table sets forth the components of accounts receivable: December 31, 2016 March 31, 2016 Government $ 927,997 $ 1,343,477 Commercial 137,434 118,384 Less: Allowance for doubtful accounts (7,500 ) (7,500 ) $ 1,057,931 $ 1,454,361 |
Note 4 - Inventories, net (Tabl
Note 4 - Inventories, net (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: December 31, 2016 March 31, 2016 Purchased parts $ 2,999,640 $ 3,420,249 Work-in-process 1,491,461 1,446,293 Finished goods 292,786 102,490 Less: Inventory reserve (310,000 ) (290,000 ) $ 4,473,887 $ 4,679,032 |
Note 5 - Net Income per Share (
Note 5 - Net Income per Share (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Three Months Ended December 31, 2016 December 31, 2015 Basic net income per share computation: Net income $ 141,513 $ 226,586 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net income per share $ 0.04 $ 0.07 Diluted net income per share computation Net income $ 141,513 $ 226,586 Less: Change in fair value of warrants 37,000 - Diluted income $ 104,513 226,586 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 9,248 4,803 Total adjusted weighted-average shares 3,265,135 3,261,690 Diluted net income per share $ 0.03 $ 0.07 Nine Months Ended Nine Months Ended December 31, 2016 December 31, 2015 Basic net income per share computation: Net income $ 823,877 $ 705,118 Weighted-average common shares outstanding 3,255,887 3,256,887 Basic net income per share $ 0.25 $ 0.22 Diluted net income per share computation Net income $ 823,877 $ 705,118 Change in fair value of warrants 70,000 - Diluted income $ 753,877 705,118 Weighted-average common shares outstanding 3,255,887 3,256,887 Incremental shares attributable to the assumed exercise of outstanding stock options and warrants 10,645 5,068 Total adjusted weighted-average shares 3,266,532 3,261,955 Diluted net income per share $ 0.23 $ 0.22 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share: December 31, 2016 December 31, 2015 Stock options 71,000 80,000 Warrants - 286,920 71,000 366,920 |
Note 8 - Segment Information (T
Note 8 - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The table below presents information about reportable segments within the avionics business for the three and six month periods ending December 31, 2016 and 2015: Three Months Ended December 31, 2016 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 3,771,384 $ 465,135 $ 4,236,519 $ - $ 4,236,519 Cost of sales 2,297,157 305,111 2,602,268 - 2,602,268 Gross margin 1,474,227 160,024 1,634,251 - 1,634,251 Engineering, research, and development 615,007 - 615,007 Selling, general and administrative 256,599 608,771 865,370 Amortization of deferred financing costs - 1,359 1,359 Change in fair value of common stock warrants - (37,000 ) (37,000 ) Interest expense, net - 11,620 11,620 Total expenses 871,606 584,750 1,456,356 Income (loss) before income taxes $ 762,645 $ (584,750 ) $ 177,895 Three Months Ended December 31, 2015 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 5,658,695 $ 312,170 $ 5,970,865 $ - $ 5,970,865 Cost of sales 3,709,998 226,110 3,936,108 - 3,936,108 Gross margin 1,948,697 86,060 2,034,757 - 2,034,757 Engineering, research, and development 541,502 - 541,502 Selling, general and administrative 203,249 564,674 767,923 Amortization of deferred financing costs - 1,357 1,357 Change in fair value of common stock warrants - 246,751 246,751 Interest expense, net - 23,687 23,687 Total expenses 744,751 836,469 1,581,220 Income (loss) before income taxes $ 1,290,006 $ (836,469 ) $ 453,537 Nine Months Ended December 31, 2016 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 12,981,768 $ 1,673,149 $ 14,654,917 $ - $ 14,654,917 Cost of sales 8,067,636 1,250,789 9,318,425 - 9,318,425 Gross margin 4,914,132 422,360 5,336,492 - 5,336,492 Engineering, research, and development 1,783,655 - 1,783,655 Selling, general and administrative 946,589 1,705,663 2,652,252 Amortization of deferred financing costs - 4,072 4,072 Change in fair value of common stock warrants - (288,203 ) (288,203 ) Interest expense, net - 46,953 46,953 Total expenses 2,730,244 1,468,485 4,198,729 Income (loss) before income taxes $ 2,606,248 $ (1,468,485 ) $ 1,137,763 Nine Months Ended December 31, 2015 Avionics Government Avionics Commercial Avionics Total Corporate Items Total Net sales $ 17,248,766 $ 1,386,408 $ 18,635,174 $ - $ 18,635,174 Cost of sales 11,506,710 1,034,946 12,541,656 - 12,541,656 Gross margin 5,742,056 351,462 6,093,518 - 6,093,518 Engineering, research, and development 1,477,290 - 1,477,290 Selling, general and administrative 908,829 1,608,658 2,517,487 Amortization of deferred financing costs - 4,072 4,072 Change in fair value of common stock warrants - 697,579 697,579 Interest expense, net - 79,156 79,156 Total expenses 2,386,119 2,389,465 4,775,584 Income (loss) before income taxes $ 3,707,399 $ (2,389,465 ) $ 1,317,934 |
Note 10 - Fair Value Measurem23
Note 10 - Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. December 31, 2016 Level I Level II Level III Total Total Assets $ - $ - $ - $ - Warrant liability - - 128,000 128,000 Total Liabilities $ - $ - $ 128,000 $ 128,000 March 31, 2016 Level I Level II Level III Total Total Assets $ - $ - $ - $ - Warrant liability - - 1,136,203 1,136,203 Total Liabilities $ - $ - $ 1,136,203 $ 1,136,203 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a summary of the changes in fair value of our Level 3 financial liabilities from March 31, 2016 through September 30, 2016, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to the liability held at September 30, 2016: Level 3 Reconciliation Balance at beginning of period (Gains) and losses for the period (realized and unrealized) Purchases, issuances, sales and settlements, net Transfers in or out of Level 3 Balance at the end of period Warrant liability $ 1,136,203 $ (288,203 ) $ (720,000 ) $ - $ 128,000 Total Liabilities $ 1,136,203 $ (288,203 ) $ (720,000 ) $ - $ 128,000 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | During May 2016, BCA Mezzanine Fund LLP (“BCA”) informed the Company that BCA has elected to exercise its “put option”, thereby requiring the Company to purchase all the warrants held by BCA. Total warrants were to purchase a total of 236,920 shares of the Company’s common stock. The table below shows the warrants held by BCA for which the “put option” has been exercised. Date of Warrant Expiration Date Number of Warrants Exercise Price 09-10-2010 09-10-2019 136,920 $ 6.70 07-26-2012 09-10-2019 20,000 $ 3.35 11-20-2012 09-10-2019 20,000 $ 3.56 02-14-2013 09-10-2019 20,000 $ 3.58 07-12-2013 09-10-2019 20,000 $ 3.33 08/12/2013 09-10-2019 20,000 $ 3.69 |
Note 3 - Accounts Receivable,24
Note 3 - Accounts Receivable, net (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (7,500) | $ (7,500) |
Accounts Receivable, net | 1,057,931 | 1,454,361 |
Government Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | 927,997 | 1,343,477 |
Commercial Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | $ 137,434 | $ 118,384 |
Note 4 - Inventories, net (Det
Note 4 - Inventories, net (Details) - Schedule of Inventory, Current - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Schedule of Inventory, Current [Abstract] | ||
Purchased parts | $ 2,999,640 | $ 3,420,249 |
Work-in-process | 1,491,461 | 1,446,293 |
Finished goods | 292,786 | 102,490 |
Less: Inventory reserve | (310,000) | (290,000) |
$ 4,473,887 | $ 4,679,032 |
Note 5 - Net Income per Share26
Note 5 - Net Income per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic net income per share computation: | ||||
Net income | $ 141,513 | $ 226,586 | $ 823,877 | $ 705,118 |
Weighted-average common shares outstanding | 3,255,887 | 3,256,887 | 3,255,887 | 3,256,887 |
Basic net income per share | $ 0.04 | $ 0.07 | $ 0.25 | $ 0.22 |
Diluted net income per share computation | ||||
Net income | $ 141,513 | $ 226,586 | $ 823,877 | $ 705,118 |
Less: Change in fair value of warrants | 37,000 | 0 | 70,000 | 0 |
Diluted income | $ 104,513 | $ 226,586 | $ 753,877 | $ 705,118 |
Weighted-average common shares outstanding | 3,255,887 | 3,256,887 | 3,255,887 | 3,256,887 |
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants | 9,248 | 4,803 | 10,645 | 5,068 |
Total adjusted weighted-average shares | 3,265,135 | 3,261,690 | 3,266,532 | 3,261,955 |
Diluted net income per share | $ 0.03 | $ 0.07 | $ 0.23 | $ 0.22 |
Note 5 - Net Income per Share27
Note 5 - Net Income per Share (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-Dilutive Securities | 71,000 | 366,920 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-Dilutive Securities | 71,000 | 80,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-Dilutive Securities | 0 | 286,920 |
Note 6 - Long-Term Debt (Detail
Note 6 - Long-Term Debt (Details) - USD ($) | Mar. 21, 2016 | Jul. 31, 2015 | Nov. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Mar. 31, 2016 |
Automobiles [Member] | Notes Payable, Other Payables [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
$ 23,712 | ||||||
Debt Instrument, Term | 5 years | |||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||||
Debt Instrument, Periodic Payment | $ 492 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.79% | |||||
Notes Payable | $ 0 | $ 15,197 | ||||
Line of Credit [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 500,000 | |||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |||||
Line of Credit [Member] | Automobiles [Member] | Notes Payable, Other Payables [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
Line of Credit Facility, Interest Rate at Period End | 4.96% | |||||
Note to Bank #1 [Member] | Notes Payable to Banks [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
$ 1,200,000 | ||||||
Debt Instrument, Term | 3 years | |||||
Debt Instrument, Maturity Date, Description | November 2,017 | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||
Debt Instrument, Periodic Payment | $ 36,551 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Notes Payable | $ 390,113 | 693,407 | ||||
Notes Payable, Current | 390,113 | |||||
Debt Instrument, Collateral | collateralized by substantially all of the assets of the Company | |||||
Note to Bank #2 [Member] | Notes Payable to Banks [Member] | ||||||
Note 6 - Long-Term Debt (Details) [Line Items] | ||||||
$ 18,000 | ||||||
Debt Instrument, Term | 3 years | |||||
Debt Instrument, Frequency of Periodic Payment | Monthly | |||||
Debt Instrument, Periodic Payment | $ 536 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Notes Payable | 9,808 | $ 14,211 | ||||
Notes Payable, Current | $ 6,112 | |||||
Debt Instrument, Collateral | collateralized by substantially all of the assets of the Company |
Note 7 - Deferred Revenues (Det
Note 7 - Deferred Revenues (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |||
Deferred Revenue, Additions | $ 679,935 | ||
Deferred Revenue, Revenue Recognized | $ 127,452 | $ 470,288 | |
Deferred Revenue | $ 209,647 | $ 209,647 |
Note 8 - Segment Information (D
Note 8 - Segment Information (Details) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 8 - Segment Information (
Note 8 - Segment Information (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,236,519 | $ 5,970,865 | $ 14,654,917 | $ 18,635,174 |
Cost of sales | 2,602,268 | 3,936,108 | 9,318,425 | 12,541,656 |
Gross margin | 1,634,251 | 2,034,757 | 5,336,492 | 6,093,518 |
Engineering, research, and development | 615,007 | 541,502 | 1,783,655 | 1,477,290 |
Selling, general and administrative | 865,370 | 767,923 | 2,652,252 | 2,517,487 |
Amortization of deferred financing costs | 1,359 | 1,357 | 4,072 | 4,072 |
Change in fair value of common stock warrants | (37,000) | 246,751 | (288,203) | 697,579 |
Interest (income) expense, net | 11,620 | 23,687 | 46,953 | 79,156 |
Total expenses | 1,456,356 | 1,581,220 | 4,198,729 | 4,775,584 |
Income (loss) before income taxes | 177,895 | 453,537 | 1,137,763 | 1,317,934 |
Avionics Government [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,771,384 | 5,658,695 | 12,981,768 | 17,248,766 |
Cost of sales | 2,297,157 | 3,709,998 | 8,067,636 | 11,506,710 |
Gross margin | 1,474,227 | 1,948,697 | 4,914,132 | 5,742,056 |
Avionics Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 465,135 | 312,170 | 1,673,149 | 1,386,408 |
Cost of sales | 305,111 | 226,110 | 1,250,789 | 1,034,946 |
Gross margin | 160,024 | 86,060 | 422,360 | 351,462 |
Avionics Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,236,519 | 5,970,865 | 14,654,917 | 18,635,174 |
Cost of sales | 2,602,268 | 3,936,108 | 9,318,425 | 12,541,656 |
Gross margin | 1,634,251 | 2,034,757 | 5,336,492 | 6,093,518 |
Engineering, research, and development | 615,007 | 541,502 | 1,783,655 | 1,477,290 |
Selling, general and administrative | 256,599 | 203,249 | 946,589 | 908,829 |
Amortization of deferred financing costs | 0 | 0 | 0 | 0 |
Change in fair value of common stock warrants | 0 | 0 | 0 | 0 |
Interest (income) expense, net | 0 | 0 | 0 | 0 |
Total expenses | 871,606 | 744,751 | 2,730,244 | 2,386,119 |
Income (loss) before income taxes | 762,645 | 1,290,006 | 2,606,248 | 3,707,399 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross margin | 0 | 0 | 0 | 0 |
Engineering, research, and development | 0 | 0 | 0 | 0 |
Selling, general and administrative | 608,771 | 564,674 | 1,705,663 | 1,608,658 |
Amortization of deferred financing costs | 1,359 | 1,357 | 4,072 | 4,072 |
Change in fair value of common stock warrants | (37,000) | 246,751 | (288,203) | 697,579 |
Interest (income) expense, net | 11,620 | 23,687 | 46,953 | 79,156 |
Total expenses | 584,750 | 836,469 | 1,468,485 | 2,389,465 |
Income (loss) before income taxes | $ (584,750) | $ (836,469) | $ (1,468,485) | $ (2,389,465) |
Note 10 - Fair Value Measurem32
Note 10 - Fair Value Measurements (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Note 10 - Fair Value Measurements (Details) [Line Items] | ||
Derivative Liability, Noncurrent | $ 128,000 | $ 1,136,203 |
Warrants Held by BCA [Member] | ||
Note 10 - Fair Value Measurements (Details) [Line Items] | ||
Class of Warrant or Right, Exercised (in Shares) | 236,920 | |
Class of Warrant or Rights, Fair Value | $ 720,000 | |
Derivative Liability, Current | 0 | |
Derivative Liability, Noncurrent | 938,203 | |
Warrants Held by Outside Investor [Member] | ||
Note 10 - Fair Value Measurements (Details) [Line Items] | ||
Derivative Liability, Noncurrent | 128,000 | $ 198,000 |
Warrants and Rights Outstanding | $ 50,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 3.35 |
Note 10 - Fair Value Measurem33
Note 10 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Note 10 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Assets | $ 0 | $ 0 |
Warrant liability | 128,000 | 1,136,203 |
Total Liabilities | 128,000 | 1,136,203 |
Fair Value, Inputs, Level 1 [Member] | ||
Note 10 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Assets | 0 | 0 |
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 10 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Assets | 0 | 0 |
Warrant liability | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Note 10 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Assets | 0 | 0 |
Warrant liability | 128,000 | 1,136,203 |
Total Liabilities | $ 128,000 | $ 1,136,203 |
Note 10 - Fair Value Measurem34
Note 10 - Fair Value Measurements (Details) - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation - Fair Value, Inputs, Level 3 [Member] | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at beginning of period | $ 1,136,203 |
Gains and losses for the period (realized and unrealized) | (288,203) |
Purchases, issuances, sales and settlements, net | (720,000) |
Transfers in or out of Level 3 | 0 |
Balance at the end of period | 128,000 |
Warrant [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at beginning of period | 1,136,203 |
Gains and losses for the period (realized and unrealized) | (288,203) |
Purchases, issuances, sales and settlements, net | (720,000) |
Transfers in or out of Level 3 | 0 |
Balance at the end of period | $ 128,000 |
Note 10 - Fair Value Measurem35
Note 10 - Fair Value Measurements (Details) - Schedule of Warrants Exercised - Warrants Held by BCA [Member] | 9 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrant, Number of Warrants Exercised | 236,920 |
Warrant Issued 09-10-2010 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 136,920 |
Warrant, Exercise Price | $ / shares | $ 6.70 |
Warrant Issued 07-26-2012 #2 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 20,000 |
Warrant, Exercise Price | $ / shares | $ 3.35 |
Warrant Issued 11-20-2012 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 20,000 |
Warrant, Exercise Price | $ / shares | $ 3.56 |
Warrant Issued 02-14-2013 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 20,000 |
Warrant, Exercise Price | $ / shares | $ 3.58 |
Warrant Issued 07-12-2013 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 20,000 |
Warrant, Exercise Price | $ / shares | $ 3.33 |
Warrant Issued 08-12-2013 [Member] | Warrant [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant, Expiration Date | Sep. 10, 2019 |
Warrant, Number of Warrants Exercised | 20,000 |
Warrant, Exercise Price | $ / shares | $ 3.69 |
Note 13 - New Accounting Pron36
Note 13 - New Accounting Pronouncements (Details) | Dec. 31, 2016USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Deferred Tax Assets, Net of Valuation Allowance | $ 578,507 |