Note 12 - Risks and Uncertainties

12 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 12 — RISKS AND UNCERTAINTIES:

Customer Concentration

For fiscal 2026, the Company’s two largest customers accounted for approximately 55% of the Company’s net revenues, with Amazon accounting for 42% and Fred Meyer accounting for 13%. For fiscal 2025, the Company’s two largest customers accounted for approximately 70% of the Company’s net revenues with Amazon accounting for 39% and Walmart accounting for 31%. No other customer accounted for more than 10% of net revenues in either period. 

Product Concentration

For fiscal 2026, the Company’s gross product sales included microwave ovens, which generated approximately 69%, and audio products, which generated approximately 25% of the Company's gross product sales. 

For fiscal 2025, the Company’s gross product sales included microwave ovens, which generated approximately 51%, and audio products, which generated approximately 47% of the Company's gross product sales.

As a result of this dependence, a significant decline in pricing of, or market acceptance of these product types and categories, either in general or specifically as marketed by the Company, would have a material adverse effect on the Company’s business, financial condition and results of operations. Because the market for these product types and categories is characterized by periodic new product introductions, the Company’s future financial performance will depend, in part, on the successful and timely development and customer acceptance of new and enhanced versions of these product types and other products distributed by the Company. There can be no assurance that the Company will continue to be successful in marketing these products types within these categories or any other new or enhanced products.

Concentrations of Credit Risk

As a percent of the Company’s total trade accounts receivable, net of specific reserves, Amazon and Fred Meyer accounted for 64% and 20%, respectively, as of March 31, 2026. As a percent of the Company’s total trade accounts receivable, net of specific reserves, Amazon and Variety Wholesalers accounted for 59% and 19%, respectively, as of March 31, 2025. No other customer accounted for more than 10% of the Company’s total trade accounts receivable, net of specific reserves, as of March 31, 2026 or March 31, 2025. 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 $7,000 at March 31, 2026 and $1,107,000 at March 31, 2025. Due to the high concentration of the Company’s net trade accounts receivables among just two or three customers, any significant failure by one of these customers to pay the Company their outstanding balances 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 and restricted cash balances on deposit in the U.S. as of March 31, 2026 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 $9.1 million and approximately $0.9 million at March 31, 2026 and March 31, 2025, respectively. The Company also has short term deposits in foreign financial institutions which are not FDIC insured of approximately of $3.1 million. These short term deposits have maturity dates over 90 days and are classified as short term investments on the Company's Consolidated Balance Sheets.

Supplier Concentration

During fiscal 2026 and 2025, the Company procured approximately 96% and 95%, respectively, of its products for resale from its four largest factory suppliers. Approximately 49% of these products were procured from its largest supplier in fiscal 2026 and approximately 37% in fiscal 2025. See the Supplier table under the heading "Design and Manufacturing" in this Form 10-K, for further details.

No assurance can be given that ample supply of product would be available at current prices and on current credit terms. This is if the Company were required to seek alternative sources of supply, without adequate notice by a supplier or a reasonable opportunity to seek alternate production facilities and component parts. Any resulting significant shortage of product supply would have a material adverse effect on the Company’s business, financial condition and results of operation.

Third Party Representatives

In fiscal 2026, the Company utilized six sales representative organizations, two of which were responsible for approximately 68% of the Company's net revenues, including one which represented approximately 43% and another which represented approximately 25% of its net revenues. In fiscal 2025, the Company utilized five sales representative organizations, two of which were responsible for approximately 48% of the Company's net revenues, including one which represented approximately 38% and another which represented approximately 10% of its net revenues. No other sales representative organization accounted for more than 10% of the Company's net revenues in fiscal 2026 or fiscal 2025. The loss or reduction of product sales made through third party representative organizations could have a material adverse effect on the Company's business and results of operations. Finding replacement organizations could be a time consuming process during which the Company's revenues could be negatively impacted.