Note 8 - Concentration Risk

9 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 8 — CONCENTRATION RISK

Customer Concentration

For the three month period ended December 31, 2025, the Company’s two largest customers accounted for approximately 69% of the Company’s net revenues, of which Amazon accounted for approximately 54% and Bi-Mart accounted for approximately 15%. No other customer accounted for greater than 10% of the Company's net revenues during the period. 

For the nine months ended December 31, 2025, the Company’s two largest customers accounted for approximately 50% of the Company’s net revenues, of which Amazon accounted for approximately 39% and Fred Meyer accounted for approximately 11%. No other customer accounted for greater than 10% of the Company's net revenues during the period. 

For the three month period ended December 31, 2024, the Company’s three largest customers accounted for approximately 92% of the Company’s net revenues, of which Amazon accounted for approximately 43%, Walmart Inc. ("Walmart") accounted for approximately 25% and Big Lots Stores, Inc. ("Big Lots") accounted for approximately 24%. No other customer accounted for greater than 10% of the Company's net revenues during the period.

For the nine months ended December 31, 2024, the Company’s three largest customers accounted for approximately 82% of the Company’s net revenues, of which Amazon accounted for approximately 38%, Walmart accounted for approximately 33% and Big Lots 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 nine month periods ended December 31, 2025, the Company’s gross product sales included microwave ovens, which generated approximately 59% and 69%, respectively, of the Company’s gross product sales and audio products, which generated approximately 37% and 25%, 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 nine month periods ended December 31, 2024, the Company’s gross product sales included microwave ovens, which generated approximately 53% and 49%, respectively, of the Company’s gross product sales and audio products, which generated approximately 46% and 49%, 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 December 31, 2025, the Company’s top two customers accounted for approximately 69% and 12%, 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 $954,000 as of  December 31, 2025 and approximately $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 December 31, 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 $3.9 million and approximately $0.9 million at December 31, 2025 and March 31, 2025, respectively. The Company also has short term deposits in foreign financial institutions which are not FDIC insured of approximately $9.1 million and approximately $14.9 million as of December 31, 2025 and March 31, 2025, respectively.

Supplier Concentration

During the three month period ended December 31, 2025, the Company procured 100% of its products for resale from its four largest factory suppliers, of which approximately 34% was supplied by its largest supplier and approximately 25%, 23% and 18%, respectively, was supplied by the other three suppliers. During the three month period ended December 31, 2024, the Company procured approximately 94% of its products for resale from its four largest factory suppliers, of which approximately 46% was supplied by its largest supplier and approximately 22%, 15% and 11%, respectively, was supplied by the other three suppliers. No other suppliers accounted for greater than 10% for either the three month period ended December 31, 2025 or  December 31, 2024.

During the nine month period ended December 31, 2025, the Company procured approximately 88% of its products for resale from its three largest factory suppliers, of which approximately 35% was supplied by its largest supplier and approximately 28%, and 25%, respectively, was supplied by the other two suppliers. During the nine month period ended December 31, 2024, the Company procured 94% of its products for resale from its five largest factory suppliers, of which approximately 41% was supplied by its largest supplier and approximately 19%, 12%, 11% and 11%, respectively, was supplied by the other four suppliers. No other suppliers accounted for greater than 10% for either the nine month period ended December 31, 2025 or  December 31, 2024.