Note 8 - Concentration Risk

6 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 8 — CONCENTRATION RISK

Customer Concentration

For the three month period ended September 30, 2025, the Company’s three largest customers accounted for approximately 77% of the Company’s net revenues, of which Amazon accounted for approximately 56%, Costco accounted for approximately 11% and Variety accounted for approximately 10%. No other customer accounted for greater than 10% of the Company's net revenues during the period. 

For the six months ended September 30, 2025, the Company’s three largest customers accounted for approximately 62% of the Company’s net revenues, of which Amazon accounted for approximately 31%, Variety accounted for approximately 16% and Fred Meyer accounted for approximately 15%. No other customer accounted for greater than 10% of the Company's net revenues during the period. 

For the three month period ended September 30, 2024, the Company’s three largest customers accounted for approximately 86% of the Company’s net revenues, of which Walmart accounted for approximately 42%, Amazon accounted for approximately 31% and Fred Meyer accounted for approximately 13%. No other customer accounted for greater than 10% of the Company's net revenues during the period.

For the six months ended September 30, 2024, the Company’s three largest customers accounted for approximately 84% of the Company’s net revenues, of which Walmart accounted for approximately 39%, Amazon accounted for approximately 34% and Fred Meyer accounted for approximately 11%. No other customer accounted for greater than 10% of the Company's net revenues during the period.

A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation.             

Product Concentration

For the three and six month periods ended September 30, 2025, the Company’s gross product sales included microwave ovens, which generated approximately 63% and 76%, respectively, of the Company’s gross product sales and audio products, which generated approximately 27% and 18%, respectively, of the Company’s gross product sales. No other products accounted for greater than 10% of the Company's gross product sales during the respective periods.

For the three and six month periods ended September 30, 2024, the Company’s gross product sales included microwave ovens, which generated approximately 43% and 45%, respectively, of the Company’s gross product sales and audio products, which generated approximately 55% and 52%, respectively, of the Company’s gross product sales. No other products accounted for greater than 10% of the Company's gross product sales during the respective periods.    

Concentrations of Credit Risk

As of September 30, 2025, the Company’s top two customers accounted for approximately 59% and 15%, respectively, of the Company's total trade accounts receivable, net of specific reserves. No other customers accounted for greater than 10% of the Company's total trade accounts receivable, net of specific reserves, as of such date. As of March 31, 2025, the Company's top two customer's accounted for approximately 59% and 19%, respectively, of the Company's total trade accounts receivable, net of specific reserves. No other customers accounted for greater than 10% of the Company's total trade accounts receivable, net of specific reserves, as of such date. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. The allowance for credit losses on the Company's total trade accounts receivable balances was approximately $1,113,000 as of  September 30, 2025 and $1,107,000 as of  March 31, 2025. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations.

The Company maintains its cash accounts with major U.S. and foreign financial institutions. The Company’s cash balances on deposit in the U.S. as of September 30, 2025 and March 31, 2025 were insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per qualifying bank account in accordance with FDIC rules. The Company’s cash, cash equivalents and restricted cash balances in excess of these FDIC-insured limits were approximately $0.8 million and approximately $0.9 million at September 30, 2025 and March 31, 2025, respectively. The Company also has short term deposits in foreign financial institutions which are not FDIC insured of approximately $12.5 million and $14.9 million as of September 30, 2025 and March 31, 2025, respectively.

Supplier Concentration

During the three month period ended September 30, 2025, the Company procured 100% of its products for resale from its three largest factory suppliers, of which approximately 46% was supplied by its largest supplier and approximately 27%, and 27%, respectively, was supplied by the other two suppliers. During the three month period ended September 30, 2024, the Company procured approximately 91% of its products for resale from its four largest factory suppliers, of which approximately 47% was supplied by its largest supplier and approximately 16%, 16% and 12%, respectively, was supplied by the other three suppliers. No other suppliers accounted for greater than 10% for either the three month period ended September 30, 2025 or  September 30, 2024.

During the six month period ended September 30, 2025, the Company procured approximately 93% of its products for resale from its three largest factory suppliers, of which approximately 41% was supplied by its largest supplier and approximately 30%, and 22%, respectively, was supplied by the other two suppliers. During the six month period ended September 30, 2024, the Company procured 100% of its products for resale from its five largest factory suppliers, of which approximately 38% was supplied by its largest supplier and approximately 19%, 17%, 16% and 10%, respectively, was supplied by the other four suppliers. No other suppliers accounted for greater than 10% for either the three month period ended September 30, 2025 or  September 30, 2024.