10-K/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-K/A
(Amendment No. 1)

(Mark One)
     [X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2017

     [   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________to____________________

Commission file number 000-12196

 
NVE CORPORATION
(Exact name of registrant as specified in its charter)

Minnesota	41-1424202
State or other jurisdiction of incorporation or organization	(I.R.S.Employer Identification No.)
11409 Valley View Road, Eden Prairie, Minnesota	55344
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (952) 829-9217 Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common stock, $0.01 par value (“Common Stock”)	The NASDAQ Stock Market, LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [   ]  No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes [   ]  No [X]

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]  No [   ]

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]  No [   ]

     Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  [X]
     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [   ]	Accelerated filer [X]
Non-accelerated filer [   ]   (Do not check if a smaller reporting company)	Smaller reporting company [   ]
	Emerging growth company [   ]

     If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]
     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes [   ]  No [X] 
     The aggregate market value of the voting stock held by non-affiliates of the Registrant, based on the closing price on September 30, 2016, the last business day of the Registrant’s most recently completed second fiscal quarter, as reported on the NASDAQ Stock Market, was approximately $144 million.
     The number of shares of the registrant’s Common Stock (par value $0.01) outstanding as of April 28, 2017 was 4,841,010.

DOCUMENTS INCORPORATED BY REFERENCE

     None.
   

EXPLANATORY NOTE

 
     This Amendment No. 1 to our Annual Report on Form 10-K for the year ended March 31, 2017 is being filed solely for the purpose of furnishing Exhibit 101 (XBRL Exhibit), which was not included in the original May 3, 2017 filing on Form 10-K. No other changes have been made to the Form 10-K, and this Amendment does not reflect events that may have occurred after the original filing.

2

 
 
15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
(b) Exhibits
 

Exhibit #	Description
3.1	Amended and Restated Articles of Incorporation of the company as amended by the Board of Directors effective November 21, 2002 (incorporated by reference to the Form 10-QSB for the period ended December 31, 2002).
3.2	Bylaws of the company as amended by the Board of Directors effective December 18, 2007 (incorporated by reference to the Form 8-K filed December 19, 2007).
10.1	Lease dated October 1, 1998 between the company and Glenborough Properties, LP (incorporated by reference to the Form 10-QSB for the period ended September 30, 2002).
10.2	First amendment to lease between the company and Glenborough dated September 18, 2002 (incorporated by reference to the Form 10-QSB for the period ended September 30, 2002).
10.3	Second amendment to lease between the company and Glenborough dated December 1, 2003 (incorporated by reference to the Form 10-QSB for the period ended December 31, 2003).
10.4	Third amendment to lease between the company and Carlson Real Estate (incorporated by reference to the Form 8-K/A filed December 20, 2007).
10.5	Fourth amendment to lease between the company and the Barbara C. Gage Revocable Trust (incorporated by reference to our Current Report on Form 8-K/A filed August 3, 2011).
10.6*	Employment Agreement between the company and Daniel A. Baker dated January 29, 2001 (incorporated by reference to the Form 10-KSB for the year ended March 31, 2001).
10.7*	NVE Corporation 2000 Stock Option Plan as Amended July 19, 2001 by the shareholders (incorporated by reference to our Registration Statement on Form S-8 filed July 20, 2001).
10.8	Indemnification Agreement by and between Pacesetter, Inc., a St. Jude Medical Company, d.b.a. St. Jude Medical Cardiac Rhythm Management Division, and the company (incorporated by reference to the Form 8-K filed September 27, 2005).
10.9+	Supplier Partnering Agreement by and between St. Jude and the company (incorporated by reference to the Form 8-K filed January 4, 2006).
10.10+	Amendment No. 1 to Supplier Partnering Agreement between St. Jude and the company (incorporated by reference to the Form 8-K/A filed September 10, 2007).
10.11+	Amendment No. 2 to Supplier Partnering Agreement between St. Jude and the company (incorporated by reference to the Form 8-K/A filed December 18, 2009).
10.12+	Amendment No. 3 to Supplier Partnering Agreement between St. Jude and the company (incorporated by reference to the Form 8-K/A filed September 16, 2010).
10.13	Amendment No. 4 to Supplier Partnering Agreement between St. Jude and the company (incorporated by reference to the Form 8-K/A filed February 7, 2011).
10.14	Supplier Quality Agreement between St. Jude and the company (incorporated by reference to the Form 8-K filed February 10, 2016).
10.15	Amendment No. 5 to Supplier Partnering Agreement between St. Jude and the company (incorporated by reference to the Form 8-K/A filed April 21, 2016).
10.16+	Supply Agreement by and between the company and Sonova AG (incorporated by reference to the Form 8-K/A filed November 16, 2015).
23	Consent of Grant Thornton LLP (previously filed with Form 10-K on May 3, 2017).
31.1	Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a) (previously filed with Form 10-K on May 3, 2017).
31.2	Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a) (previously filed with Form 10-K on May 3, 2017).
32	Certification by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C. Section 1350 (previously filed with Form 10-K on May 3, 2017).
101.INS	XBRL Instance Document (filed herewith).
101.SCH	XBRL Taxonomy Extension Schema Document (filed herewith).
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (filed herewith).
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).

*Indicates a management contract or compensatory plan or arrangement.
+Confidential portions deleted and filed separately with the SEC.

3

SIGNATURES

 
     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NVE CORPORATION
          (Registrant)

/s/Daniel A. Baker
by Daniel A. Baker
President and Chief Executive Officer

Date    May 3, 2017

     Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/Terrence W. Glarner Terrence W. Glarner	Director and Chairman of the Board	May 3, 2017
/s/Daniel A. Baker Daniel A. Baker	Director, President & Chief Executive Officer (Principal Executive Officer)	May 3, 2017
/s/Curt A. Reynders Curt A. Reynders	Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)	May 3, 2017
/s/Patricia M. Hollister Patricia M. Hollister	Director	May 3, 2017
/s/Richard W. Kramp Richard W. Kramp	Director	May 3, 2017
/s/Gary R. Maharaj Gary R. Maharaj	Director	May 3, 2017

 
4

XML

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2017	Apr. 28, 2017	Sep. 30, 2016
Document Information [Line Items]
Entity Registrant Name	NVE CORP /NEW/
Entity Central Index Key	0000724910
Trading Symbol	nvec
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		4,841,010
Entity Public Float			$ 144
Document Type	10-K
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false

XML

Balance Sheets - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Current assets
Cash and cash equivalents	$ 8,199,364	$ 7,534,593
Marketable securities, short-term	19,591,833	19,697,384
Accounts receivable, net of allowance for uncollectible accounts of $15,000	3,436,802	2,244,086
Inventories	3,358,298	3,205,233
Prepaid expenses and other assets	607,283	734,524
Total current assets	35,193,580	33,415,820
Fixed assets
Machinery and equipment	9,007,455	8,840,033
Leasehold improvements	1,644,419	1,539,965
	10,651,874	10,379,998
Less accumulated depreciation and amortization	9,238,626	8,688,285
Net fixed assets	1,413,248	1,691,713
Long-term deferred tax assets	357,055	51,188
Marketable securities, long-term	56,810,923	65,695,335
Total assets	93,774,806	100,854,056
Current liabilities
Accounts payable	376,275	317,990
Accrued payroll and other	576,313	556,674
Deferred revenue	142,733	714,805
Total current liabilities	1,095,321	1,589,469
Shareholders’ equity
Common stock, $0.01 par value, 6,000,000 shares authorized; 4,841,010 issued and outstanding as of March 31, 2017 and 4,835,010 issued and outstanding as of March 31, 2016	48,410	48,350
Additional paid-in capital	19,507,348	19,205,682
Accumulated other comprehensive (loss) income	(38,298)	451,359
Retained earnings	73,162,025	79,559,196
Total shareholders’ equity	92,679,485	99,264,587
Total liabilities and shareholders’ equity	$ 93,774,806	$ 100,854,056

XML

Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Allowance for uncollectible accounts	$ 15,000	$ 15,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	6,000,000	6,000,000
Common stock, shares issued (in shares)	4,841,010	4,835,010
Common stock, shares outstanding (in shares)	4,841,010	4,835,010

XML

Statements of Income - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Revenue
Product sales	$ 26,182,453	$ 24,410,391	$ 29,894,045
Contract research and development	2,143,743	3,306,887	690,043
Total revenue	28,326,196	27,717,278	30,584,088
Cost of sales	6,078,294	6,616,852	6,019,868
Gross profit	22,247,902	21,100,426	24,564,220
Expenses
Selling, general, and administrative	1,458,598	1,752,962	2,312,076
Research and development	3,344,101	3,061,184	3,000,193
Total expenses	4,802,699	4,814,146	5,312,269
Income from operations	17,445,203	16,286,280	19,251,951
Interest income	1,650,808	1,890,817	2,187,723
Income before taxes	19,096,011	18,177,097	21,439,674
Provision for income taxes	6,147,142	5,884,782	7,071,320
Net income	$ 12,948,869	$ 12,292,315	$ 14,368,354
Net income per share – basic (in dollars per share)	$ 2.68	$ 2.53	$ 2.96
Net income per share – diluted (in dollars per share)	2.68	2.53	2.95
Common Stock, Dividends, Per Share, Declared	$ 4	$ 4	$ 2.06
Weighted average shares outstanding
Basic (in shares)	4,836,602	4,850,209	4,855,504
Diluted (in shares)	4,838,389	4,852,602	4,871,935

XML

Statements of Comprehensive Income - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 12,948,869	$ 12,292,315	$ 14,368,354
Unrealized loss from marketable securities, net of tax	(489,657)	(295,088)	(131,410)
Comprehensive income	$ 12,459,212	$ 11,997,227	$ 14,236,944

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Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Comprehensive income:
Balance (in shares)	4,851,043
Balance (in shares) at Mar. 31, 2014	4,851,043
Balance at Mar. 31, 2014	$ 48,510	$ 20,464,883	$ 877,857	$ 82,313,391	$ 103,704,641
Exercise of stock options (in shares)	6,910
Exercise of stock options	$ 70	302,631			302,701
Comprehensive income:
Unrealized loss from marketable securities, net of tax			(131,410)		(131,410)
Net income				14,368,354	14,368,354
Total comprehensive income					14,236,944
Stock-based compensation		58,960			58,960
Tax benefit of stock-based compensation		24,288			24,288
Cash dividends declared				(10,000,000)	(10,000,000)
Balance (in shares)	4,851,043
Balance at Mar. 31, 2015	$ 48,580	20,850,762	746,447	86,681,745	108,327,534
Comprehensive income:
Exercise of stock options (in shares)	6,910
Exercise of stock options	$ 70	302,631			302,701
Repurchase of common stock					0
Balance (in shares) at Mar. 31, 2015	4,857,953
Comprehensive income:
Balance (in shares)	4,857,953
Exercise of stock options (in shares)	18,090
Exercise of stock options	$ 181	292,728			292,909
Unrealized loss from marketable securities, net of tax			(295,088)		(295,088)
Net income				12,292,315	12,292,315
Total comprehensive income					11,997,227
Stock-based compensation		21,160			21,160
Tax benefit of stock-based compensation		352,294			352,294
Cash dividends declared				(19,414,864)	(19,414,864)
Balance (in shares)	4,857,953
Balance at Mar. 31, 2016	$ 48,350	19,205,682	451,359	79,559,196	99,264,587
Comprehensive income:
Exercise of stock options (in shares)	18,090
Exercise of stock options	$ 181	292,728			292,909
Repurchase of common stock (in shares)	(41,033)
Repurchase of common stock	$ (411)	(2,311,262)			(1,695,788)
Balance (in shares) at Mar. 31, 2016	4,835,010
Comprehensive income:
Balance (in shares)	4,835,010
Exercise of stock options (in shares)	6,000
Exercise of stock options	$ 60	247,050			247,110
Unrealized loss from marketable securities, net of tax			(489,657)		(489,657)
Net income				12,948,869	12,948,869
Total comprehensive income					12,459,212
Stock-based compensation		22,000			22,000
Tax benefit of stock-based compensation		32,616			32,616
Cash dividends declared				(19,346,040)	(19,346,040)
Balance (in shares)	4,835,010
Balance at Mar. 31, 2017	$ 48,410	19,507,348	$ (38,298)	$ 73,162,025	92,679,485
Comprehensive income:
Exercise of stock options (in shares)	6,000
Exercise of stock options	$ 60	$ 247,050			247,110
Repurchase of common stock					$ 0
Balance (in shares) at Mar. 31, 2017	4,841,010
Comprehensive income:
Balance (in shares)	4,841,010

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Statements of Shareholders' Equity (Parentheticals) - $ / shares	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Additional Paid-in Capital [Member]
Cash dividends declared per common share (in dollars per share)	$ 4	$ 4	$ 2.06

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Statements of Cash Flows - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES
Net income	$ 12,948,869	$ 12,292,315	$ 14,368,354
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, Depletion and Amortization	1,147,451	850,970	934,371
Stock-based compensation	22,000	21,160	58,960
Excess tax benefits	(32,616)	(352,294)	(24,288)
Deferred income taxes	6,144	295,827	155,713
Changes in operating assets and liabilities
Accounts receivable	(1,192,716)	719,888	(632,400)
Inventories	(153,065)	537,259	(535,159)
Prepaid expenses and other assets	127,241	(159,611)	241,363
Accounts payable and accrued expenses	77,924	(611,290)	303,152
Deferred revenue	(572,072)	714,805
Net cash provided by operating activities	12,379,160	14,309,029	14,870,066
INVESTING ACTIVITIES
Purchases of fixed assets	(519,835)	(287,275)	(185,007)
Purchases of marketable securities	(11,528,240)	(14,568,089)	(8,997,086)
Proceeds from maturities of marketable securities	19,400,000	19,725,000	12,160,000
Net cash provided by investing activities	7,351,925	4,869,636	2,977,907
FINANCING ACTIVITIES
Proceeds from sale of common stock	247,110	292,909	302,701
Excess tax benefits	32,616	352,294	24,288
Repurchase of common stock		(2,311,673)
Payment of dividends to shareholders	(19,346,040)	(19,414,864)	(10,000,000)
Net cash used in financing activities	(19,066,314)	(21,081,334)	(9,673,011)
Increase (decrease) in cash and cash equivalents	664,771	(1,902,669)	8,174,962
Cash and cash equivalents at beginning of year	7,534,593	9,437,262	1,262,300
Cash and cash equivalents at end of year	8,199,364	7,534,593	9,437,262
Supplemental disclosures of cash flow information:
Cash paid during the year for income taxes	$ 6,040,000	$ 5,810,000	$ 6,800,000

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Note 1 - Description of Business

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

NOTE

1.

DESCRIPTION OF BUSINESS

     We develop and sell devices that use spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. We operate in

one

reportable segment.

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Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents

     We consider all highly liquid investments with maturities of

three

months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments

     The carrying amount of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value because of the short maturity of these instruments. Fair values of marketable securities are based on quoted market prices.

Marketable Securities

     All of the investments we have held the past

two

years were marketable securities. We classify securities with original maturities greater than

three

months and remaining maturities

one

year or less as short-term marketable securities and securities with remaining maturities greater than

one

year as long-term marketable securities. We classify all of our marketable securities as available-for-sale, thus securities are recorded at fair value and any associated unrealized gain or loss, net of tax, is included as a separate component of shareholders’ equity, “Accumulated other comprehensive income (loss).” We use a specific-identification cost basis to determine gains and losses. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity, both of which are included in interest income.

     We consider an other-than-temporary impairment of our marketable securities to exist if we determine it is probable that we will be unable to collect all amounts due according to the contractual terms of a debt security. If we judged a decline in fair value for any security to be other than temporary, the cost basis of the individual security would be written down and a charge recognized in net income. We consider a number of factors in determining whether other-than-temporary impairment exists, including: credit market conditions; the credit ratings of the securities; historical default rates for securities of comparable credit rating; the presence of insurance of the securities and, if insured, the credit rating and financial condition of the insurer; the effect of market interest rates on the value of the securities; and the duration and extent of any unrealized losses. We also consider the likelihood that we will be required to sell the securities prior to maturity based on our financial condition and anticipated cash flows. We determined that

no

write-downs for other-than-temporary impairment were required on available-for-sale securities during fiscal

2017,

2016,

or

2015.

Concentration of Risk and Financial Instruments

     Financial instruments potentially subject to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, and accounts receivable.

     Cash and cash equivalents have been maintained in financial institutions we believe have high credit quality, however these accounts are generally in excess of federally insured amounts. We have invested our excess cash in corporate-backed and municipal-backed bonds and money market instruments. Our investment policy prescribes purchases of only high-grade securities, and limits the amount of credit exposure to any

one

issuer.

     Our customers are throughout the world. We generally do not require collateral from our customers, but we perform ongoing credit evaluations of their financial condition. More information on accounts receivable is contained in the paragraph titled “Accounts Receivable and Allowance for Doubtful Accounts” of this note.

     Additionally, we are dependent on critical suppliers including our packaging vendors and suppliers of certain raw silicon and semiconductor wafers that are incorporated in our products.

Accounts Receivable and Allowance for Doubtful Accounts

     We grant credit to customers in the normal course of business and at times

may

require customers to prepay for an order prior to shipment. Accounts receivable are recorded net of an allowance for doubtful accounts. We make estimates of the uncollectibility of accounts receivable. We specifically analyze accounts receivable, historical bad debts, and customer creditworthiness when evaluating the adequacy of the allowance. We had

no

charges or provisions to our allowance for doubtful accounts in fiscal

2017,

2016,

or

2015.

Inventories

     Inventories are stated at the lower of cost or net realizable value. Cost is determined by the

first

in,

first

out method. We record inventory reserves when we determine certain inventory is unlikely to be sold based on sales trends, turnover, competition, and other market factors.
 

Product Warranty

     In general we warranty our products to be free from defects in material and workmanship for

one

year.

Fixed Assets

     Fixed assets are stated at cost. Depreciation of machinery and equipment is recorded over the estimated useful lives of the assets, generally

five

years, using the straight-line method. Amortization of leasehold improvements is recorded using the straight-line method over the lesser of the lease term or

five

-year useful life. We record losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. We have

not

identified any indicators of impairment during fiscal

2017,

2016,

or

2015.

Depreciation and amortization expense related to fixed assets was

$798,300

for fiscal

2017,

$850,970

for

2016,

and

$934,371

for fiscal

2015.

Revenue Recognition

Product Sales Revenue Recognition

     We recognize product sales revenue when evidence of an arrangement exists, the price to the buyer is fixed and determinable, collectability is reasonably assured and the product has shipped. Our sales are shipped FOB shipping point, meaning that our customers (end users and distributors) take title and assume the risks and rewards of ownership on shipment. Our customers

may

return defective products for refund or replacement under warranty, and have other very limited rights of return.

     Shipping charges billed to customers are included in product sales and the related shipping costs are included in selling, general, and administrative expense. Such shipping costs were

$12,760

for fiscal

2017,

$20,721

for fiscal

2016,

and

$12,771

for fiscal

2015.

     Our stocking distributors take title and assume the risks and rewards of product ownership. Payments from our distributors are not contingent on resale or any other matter other than the passage of time, and delivery of products is not dependent on the number of units resold to the ultimate customer. There are no other significant acceptance criteria, pricing or payment terms that would affect revenue recognition.

Accounting for Commissions and Discounts

     We sometimes utilize independent sales representatives that provide services relating to promoting our products and facilitating product sales but do not purchase our products. We pay commissions to sales representatives based on the amount of revenue facilitated, and such commissions are recorded as selling, general, and administrative expenses. Under certain limited circumstances, our distributors

may

earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with

third

parties. We recognize any such commissions as selling, general, and administrative expenses.

     We presume consideration given to a customer is a reduction in revenue unless both of the following conditions are met: (i) we receive an identifiable benefit in exchange for the consideration and the identifiable benefit is sufficiently separable from the customer’s purchase of our products such that we could have purchased the products or services from a

third

party; and (ii) we can reasonably estimate the fair value of the benefit received. We recognize discounts provided to our distributors as reductions in revenue.

Contract Research and Development Revenue Recognition

     We recognize contract research and development revenue pro-rata as work progresses. Our research and development contracts do not contain post-shipment obligations. Contracts

may

be either firm-fixed-price or cost-plus-fixed-fee. Firm-fixed-price contracts provide for a price that is not subject to any adjustment based on our cost in performing the contract.

     Cost-plus-fixed-fee contracts are cost-reimbursement contracts that also provide for payment to us of a negotiated fee that is fixed at the inception of the contract. The costs for which we earn reimbursement are the actual costs incurred and are recorded in the period in which they are incurred. We recognize the contract fees pro-rata as work progresses.

Income Taxes

     We account for income taxes using the liability method. Deferred income taxes are provided for temporary differences between the financial reporting and tax bases of assets and liabilities. We provide valuation allowances against deferred tax assets if we determine that it is less likely than not that we will be able to utilize the deferred tax assets.
 

Research and Development Expense Recognition

     Research and development costs are expensed as they are incurred.
 

Stock-Based Compensation

     We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is generally the vesting period. We estimate pre-vesting option forfeitures at the time of grant by analyzing historical data and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the total expense recognized over the vesting period will only be for those awards that vest.

Net Income Per Share

     Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each year. Net income per diluted share amounts assume conversion, exercise or issuance of all potential common stock instruments. Stock options were the only such instruments for the

three

most recent fiscal years. Stock options totaling

4,000

for fiscal

2017,

6,000

for fiscal

2016,

and

4,000

for fiscal

2015

were not included in the computation of diluted earnings per share because the exercise prices were greater than the market price of the common stock. The following table shows the components of diluted shares:

	Year Ended March 31
	2017		2016		2015
Weighted average common shares outstanding – basic		4,836,602		4,850,209		4,855,504
Dilutive effect of stock options		1,787		2,393		16,431
Shares used in computing net income per share – diluted		4,838,389		4,852,602		4,871,935

 

Use of Estimates

     The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
 

Recently Issued Accounting Standards

     In

March

2017,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2017

-

08,

Nonrefundable Fees and Other Costs (Subtopic

310

-

20)—Premium

Amortization on Purchased Callable Debt Securities

. This ASU is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities. ASU

2017

-

08’s

amendments are effective for fiscal years beginning after

December

15,

2018

and interim periods within those fiscal years, which will be fiscal

2020

for us. We do not expect adoption of ASU 

2017

-

08

to have a significant impact on our financial statements.

     In

August

2016,

the FASB issued ASU No.

2016

-

15,

Statement of Cash Flows (Topic

230),

Classification of Certain Cash Receipts and Cash Payments

, which will make

eight

targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU

2016

-

15

will be effective for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. ASU

2016

-

15

requires retrospective adoption unless it is impracticable to apply, in which case it is to be applied prospectively as of the earliest practicable date. We do not expect adoption of ASU 

2016

-

15

to have a significant impact on our financial statements.

     In

June

2016,

the FASB issued ASU No.

2016

-

13,

Financial Instruments—Credit Losses (Topic

326),

Measurement of Credit Losses on Financial Statements

. This ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendment is effective for financial statements issued for fiscal years beginning after

December

15,

2019

and interim periods within those fiscal years, which will be fiscal

2021

for us. We do not expect adoption of ASU 

2016

-

13

to have a significant impact on our financial statements.
 
     In

March

2016,

the FASB issued ASU No.

2016

-

09,

Compensation—Stock Compensation

, which simplifies the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. The guidance is effective for fiscal years beginning after

December

15,

2016

and interim periods within those fiscal years, which will be fiscal

2018

for us. We do not expect adoption of ASU 

2016

-

09

to have a significant impact on our financial statements.
 
     In

February

2016,

the FASB issued ASU No. 

2016

-

02,

Lease Accounting

. ASU

2016

-

02

requires recognition of lease assets and lease liabilities on the balance sheet of lessees. This update is effective for financial statements issued for fiscal years beginning after

December

 

15,

2018

and interim periods within those fiscal years, which will be fiscal

2020

for us. ASU 

2016

-

02

requires a modified retrospective transition approach and provides certain optional transition relief. We have not yet evaluated the impact of ASU 

2016

-

02

on our financial statements.

     In

January

2016,

the FASB issued ASU No.

2016

-

01,

Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

. The amendment changes the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendment provides clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. The amendment is effective for financial statements issued for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. We do not expect adoption of ASU 

2016

-

01

to have a significant impact on our financial statements.
 
     In

July

2015,

the FASB issued ASU No.

2015

-

11,

Simplifying the Measurement of Inventory

. ASU 

2015

-

11

requires inventory that is recorded using the

first

-in,

first

-out method to be measured at the lower of cost or net realizable value. ASU 

2015

-

11

will be effective prospectively for our fiscal

2018,

with early adoption permitted. We do not expect adoption of ASU 

2015

-

11

to have a significant impact on our financial statements. 
     

 In

May

2014,

the FASB issued ASU  No.

2014

-

09,

which supersedes the revenue recognition requirements in Accounting Standards Codification

605,

Revenue Recognition

. ASU 

2014

-

09

is based on the principle that revenue is recognized to depict the transfer of 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. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits

two

methods of adoption: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. In

August

 

2015,

the FASB issued ASU No. 

2015

-

14,

Revenue from Contracts with Customers: Deferral of the Effective Date

, which deferred the effective date of ASU 

2014

-

09

by

one

year. As a result, ASU 

2014

-

09

is effective for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. Based on our preliminary assessment, we do not expect adoption of ASU 

2014

-

09

to have a significant impact on our financial statements, because we do not expect to change the manner or timing of recognizing revenue. We recognize revenue on product sales to customers and distributors when we satisfy our performance obligations as the products are shipped. We recognize contract research and development revenue pro-rata as work progresses, and our research and development contracts do not contain post-shipment obligations.

XML

Note 3 - Fair Value Measurements

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE

3.

FAIR VALUE MEASUREMENTS

     Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The valuation hierarchy categories are as follows:

     Level

1

– Financial instruments with quoted prices in active markets for identical assets or liabilities. Our Level 

1

financial instruments consist of publicly-traded marketable corporate debt securities, which are classified as available-for-sale. On the balance sheets, these securities are included in “Marketable securities, short term” and “Marketable securities, long term.” The fair value of our Level 

1

marketable securities was

$75,098,153

as of

March

 

31,

2017

and

$84,045,869

as of

March

 

31,

2016.

     Level

2

– Financial instruments with quoted prices in active markets for similar assets or liabilities. Level 

2

fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates. We had

one

Level 

2

financial instrument, a municipal debt security, which is classified as available-for-sale. The fair value of the Level 

2

marketable security was

$1,304,603

as of

March

 

31,

2017

and

$1,346,850

as of

March

 

31,

2016.

The security is included in “Marketable securities, short term” on the

March

 

31,

2017

balance sheet, and “Marketable securities, long term” on the

March

 

31,

2016

balance sheet.

     Level

3

– Inputs to the fair value measurement are unobservable inputs or valuation techniques. We do

not

have any financial assets or liabilities being measured at fair value that are classified as Level 

3

financial instruments.

XML

Note 4 - Marketable Securities

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE

4.

MARKETABLE SECURITIES

     Marketable securities with remaining maturities less than

one

year are classified as short-term, and those with remaining maturities greater than

one

year are classified as long-term. The fair value of our marketable securities as of

March

 

31,

2017,

by maturity, were as follows:

Total		<1 Year		1–3 Years		3–5 Years
$	76,402,756	$	19,591,833	$	33,461,493	$	23,349,430

 
     As of

March

 

31,

2017

and

2016

our marketable securities were as follows:

	As of March 31, 2017									As of March 31, 2016
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value		Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Corporate bonds	$	75,158,087	$	187,001	$	(246,935	)	$	75,098,153	$	83,339,487	$	717,206	$	(10,824	)	$	84,045,869
Municipal bonds		1,304,817		-		(214	)		1,304,603		1,344,328		2,522		-			1,346,850
Total	$	76,462,904	$	187,001	$	(247,149	)	$	76,402,756	$	84,683,815	$	719,728	$	(10,824	)	$	85,392,719

    

Ten

securities were in an unrealized loss position as of

March

 

31,

2017.

The following table shows the gross unrealized losses and fair value of our investments with unrealized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position as of

March

 

31,

2017

and

2016:

	Less Than 12 Months					12 Months or Greater					Total
	Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses
As of March 31, 2017
Corporate bonds	$	32,198,766	$	(246,935	)	$	-	$	-		$	32,198,766	$	(246,935	)
Municipal bonds		1,304,603		(214	)		-		-			1,304,603		(214	)
Total	$	33,503,369	$	(247,149	)	$	-	$	-		$	33,503,369	$	(247,149	)
As of March 31, 2016
Corporate bonds	$	3,003,606	$	(6,703	)	$	2,599,870	$	(4,121	)	$	5,603,476	$	(10,824	)
Municipal bonds		-		-			-		-			-		-
Total	$	3,003,606	$	(6,703	)	$	2,599,870	$	(4,121	)	$	5,603,476	$	(10,824	)

 
      Gross unrealized losses totaled

$247,149

as of

March

 

31,

2017,

and were attributed to

nine

corporate bonds and a municipal bond out of a portfolio of

23

 bonds. The gross unrealized losses were due to market-price decreases after the bonds were purchased.

    

 None

of our securities had been in continuous unrealized loss positions for

12

 months or greater. All of the bonds we held had investment-grade credit ratings by Moody’s or Standard and Poor’s. Because we expect to recover the cost basis of investments held, we do

not

consider any of our marketable securities to be other-than-temporarily impaired as of

March

 

31,

2017.

 

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Note 5 - Inventories

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE

5.

INVENTORIES

     Inventories are shown in the following table:
 

	March 31
	2017		2016
Raw materials	$	786,775	$	810,987
Work in process		1,968,990		1,653,800
Finished goods		602,533		740,446
Total inventories	$	3,358,298	$	3,205,233

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Note 6 - Stock-based Compensation

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE

6.

STOCK-BASED COMPENSATION
Stock Option Plan

     Our

2000

Stock Option Plan, as amended, provides for issuance to employees, directors, and certain service providers of incentive stock options and nonstatutory stock options. Generally, the options

may

be exercised at any time prior to expiration, subject to vesting based on terms of employment. The period ranges from immediate vesting to vesting over a

five

-year period. The options have exercisable lives ranging from

one

year to

ten

years from the date of grant, and are generally not eligible to vest early in the event of retirement, death, disability, or change in control. Exercise prices are not less than fair market value of the underlying Common Stock at the date the options are granted. Stock-based compensation expense was

$22,000

in fiscal

2017,

$21,160

in fiscal

2016,

and

$58,960

in fiscal

2015.

Valuation assumptions

     We use the Black-Scholes standard option-pricing model to determine the fair value of stock options. The following assumptions were used to estimate the fair value of options granted:

	Year Ended March 31
	2017			2016			2015
Risk-free interest rate		1.0	%		1.6	%		1.6	%
Expected volatility		27	%		26	%		24	%
Expected life (years)		4.3			4.3			4.2
Dividend yield		7.0	%		7.1	%		0	%

 
     The determination of the fair value of the awards on the date of grant using the Black-Scholes model is affected by our stock price as well as assumptions of other variables, including projected stock option exercise behaviors, risk-free interest rate, and expected volatility of our stock price in future periods. Our estimates and assumptions affect the amounts reported in the financial statements and accompanying notes.

Expected life

     We analyze historical exercise and termination data to estimate the expected life assumption. We believe historical data currently represents the best estimate of the expected life of a new option.

Risk-free interest rate

     The risk-free rate is based on the yield of U.S. Treasury securities on the grant date for maturities similar to the expected lives of the options.

Volatility

     We use historical volatility to estimate the expected volatility of our common stock.

Dividend yield

     We assumed a dividend yield of

7.0%

for fiscal

2017

and

7.1%

for fiscal

2016,

based on the dividend yield on the date the options were granted. We assumed a dividend yield of

zero

for fiscal

2015

because we had no plans to pay dividends at the time options were granted.

Tax effects of stock-based compensation

     Stock-based compensation increased deferred tax assets by

$7,993

for fiscal

2017

and

$7,688

for fiscal

2016.

 

General stock option information

     We had

no

nonvested shares as of

March

 

31,

2017

or

2016.

The following table summarizes information about options outstanding as of

March

 

31,

2017,

all of which were exercisable:

Ranges of Exercise Prices			Number Outstanding		Weighted Average Exercise Price		Weighted Remaining Contractual Life (years)
$42.45	-	54.11		5,000	$	49.70		4.0
56.76	-	67.69		14,000		60.30		7.8
				19,000	$	57.51		6.8

 
     Our

2000

Stock Option Plan, as amended, provides for issuance to employees, directors, and certain service providers of incentive stock options and nonstatutory stock options. Generally, the options

may

be exercised at any time prior to expiration, subject to vesting based on terms of employment. The period ranges from immediate vesting to vesting over a

five

-year period. The options have exercisable lives ranging from

one

year to

ten

years from the date of grant. Exercise prices are not less than fair market value as determined by our Board at the date the options are granted.

     A summary of our stock options and warrants are shown in the following table:
 

	Option Shares Reserved			Options Outstanding			Weighted Average Option Exercise Price		Warrants Outstanding			Weighted Average Warrant Exercise Price
At March 31, 2014		155,230			38,000		$	31.78		2,000		$	37.38
Granted		(4,000	)		4,000		$	67.69		-			-
Exercised		-			(6,910	)	$	43.81		-			-
Terminated		-			-		$	-		(2,000	)		37.38
At March 31, 2015		151,230			35,090		$	33.51		-		$	-
Granted		(4,000	)		4,000		$	56.76		-			-
Exercised		-			(18,090	)	$	16.19		-			-
Terminated		-			-		$	-		-			-
At March 31, 2016		147,230			21,000		$	52.85		-		$	-
Granted		(4,000	)		4,000		$	57.46		-			-
Exercised		-			(6,000	)	$	41.19		-			-
Terminated		-			-		$	-		-			-
At March 31, 2017		143,230			19,000		$	57.51		-		$	-

 
     The remaining weighted-average exercisable life was

6.8

 years as of

March

 

31,

2017;

6.2

 years as of

March

 

31,

2016;

and

3.5

 years as of

March

 

31,

2015.

All outstanding options were exercisable as of

March

 

31,

2017,

2016,

and

2015.

The total intrinsic value of options exercised during fiscal

2017

was

$191,388

based on the difference between the exercise price and stock price at the time of exercise for in-the-money options. The total intrinsic value of options outstanding

March

 

31,

2017,

based on our closing stock price for that day, was

$480,370,

all of which was exercisable. The total fair value of option grants was

$22,000

in fiscal

2017.

There was

no

unrecognized stock-based compensation as of

March

 

31,

2017.

     

No

warrants were issued in the past

three

fiscal years and

none

were outstanding as of

March

 

31,

2017

or

2016,

or

2015.

XML

Note 7 - Income Taxes

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

7.

INCOME TAXES

     Income tax provisions for fiscal

2015

through

2017

consisted of the following:

	Year Ended March 31
	2017			2016			2015
Current taxes
Federal	$	6,034,924		$	5,754,428		$	6,608,923
State		138,689			186,822			330,971
Deferred taxes
Federal		(25,196	)		(55,254	)		125,070
State		(1,275	)		(1,214	)		6,356
Income tax provision	$	6,147,142		$	5,884,782		$	7,071,320

    A reconciliation of income tax provisions at the U.S. statutory rate for fiscal

2015

through

2017

is as follows:
 

	Year Ended March 31
	2017			2016			2015
Tax expense at U.S. statutory rate	$	6,645,733		$	6,272,341		$	7,503,886
State income taxes, net of Federal benefit		83,116			118,057			216,518
Domestic manufacturing deduction		(536,063	)		(476,932	)		(600,207	)
Municipal interest		(4,207	)		(4,171	)		(11,489	)
Other		(41,437	)		(24,513	)		(37,388	)
Income tax provision	$	6,147,142		$	5,884,782		$	7,071,320

     Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of

March

 

31,

2017

and

2016

were as follows:
 

	March 31
	2017		2016
Vacation accrual	$	109,298	$	118,611
Inventory reserve		81,743		90,825
Depreciation and amortization		52,378		(30,174	)
Stock-based compensation deductions		86,335		115,257
Unrealized loss (gain) on marketable securities		21,852		(257,545	)
Other		5,449		14,214
Long-term deferred tax assets	$	357,055	$	51,188

     Realizations of stock-based compensation deductions are credited to “Additional paid-in capital” and included in “Tax benefit of stock-based compensation” on our statements of shareholders’ equity. Credits of

$32,616

in fiscal

2017

and

$352,294

in fiscal

2016

were attributed to stock-based compensation deductions. The “Additional paid-in capital” credits also included the tax benefit of stock-based compensation deductions in those years.

     The amounts credited to “Additional paid-in capital” were the tax benefits of the deductions to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. “Tax benefit of stock-based compensation” represented the tax benefits of deductions for stock-based compensation to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. Cash we received from the exercise of stock options related to excess tax benefits is included in “Proceeds from sale of common stock” in the statement of cash flows for the year in which the option was exercised and cash received.

     We had

no

unrecognized tax benefits as of

March

 

31,

2017,

and we do

not

expect any significant unrecognized tax benefits within

12

 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of

March

 

31,

2017

we had

no

accrued interest related to uncertain tax positions. The tax years

1999

and

2013

through

2016

remain open to examination by the major taxing jurisdictions to which we are subject.
 

XML

Note 8 - Concentrations

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE

8.

CONCENTRATIONS

     The following table summarizes customers comprising

10%

or more of revenue for fiscal

2017,

2016,

and

2015:

 

	% of Revenue for Year Ended March 31
	2017			2016			2015
Customer A		22	%		23	%		20	%
Customer B		20	%		20	%		16	%
Customer C		*			*			14	%
Customer D		*			*			12	%

*Less than

10%

 
     As of

March

 

31,

2017

the

two

largest customers accounted for

40%

of our accounts receivable, and as of

March

 

31,

2016

the

two

largest customers accounted for

36%.

We believe the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience.

     Revenue by geographic region was as follows:
 

	Year Ended March 31
	2017		2016		2015
United States	$	13,600,236	$	12,392,053	$	11,919,548
Europe, the Middle East, and Africa		9,612,883		11,392,046		13,779,392
Asia-Pacific		4,200,934		3,113,484		4,318,209
Rest of World		912,143		819,695		566,939
Total Revenue	$	28,326,196	$	27,717,278	$	30,584,088

XML

Note 9 - Commitments and Contingencies

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

9.

COMMITMENTS AND CONTINGENCIES

     Lease payments were

$271,470

for fiscal

2017,

$270,627

for fiscal

2016,

and

$269,473

for fiscal

2015.

The operating lease for our facility expires

December

 

31,

2020.

We pay operating expenses including maintenance, utilities, real estate taxes, and insurance in addition to rental payments. We also lease a piece of office equipment under an operating lease expiring

October

 

2018

with payments due quarterly.
 
     The following table shows our future minimum lease payments:
 

Year Ending March 31
2018		2019		2020		2021		2022		Total
$	283,494	$	286,590	$	290,523	$	220,296	$	-	$	1,080,903

XML

Note 10 - Stock Repurchase Program

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Stock Repurchase Plan Disclosure [Text Block]

NOTE

10.

STOCK REPURCHASE PROGRAM

     Our authorized stock is stated as

six

million shares of common stock,

$0.01

par value, and

ten

million shares of all types. Our Board

may

designate any series and fix any relative rights and preferences to authorized but undesignated stock.

     We repurchased

$1,695,788

of our Common Stock in fiscal

2016,

and

none

in fiscal

2017

or fiscal

2015.

The repurchases were under a program announced

January

 

21,

2009

authorizing the repurchase of up to

$2,500,000

of our Common Stock and an additional

$5,000,000

announced

August

 

27,

2015.

The remaining authorization was

$4,540,806

as of

March

 

31,

 

2017.

The Repurchase Program

may

be modified or discontinued at any time without notice.

XML

Note 11 - Information As to Employee Stock Purchase, Savings, and Similar Plans

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE

11.

INFORMATION AS TO EMPLOYEE STOCK PURCHASE, SAVINGS, AND SIMILAR PLANS

     All of our employees are eligible to participate in our

401(k)

savings plan the

first

quarter after reaching age 

21.

Employees

may

contribute up to the Internal Revenue Code maximum. We make matching contributions of

100%

of the

first

3%

of participants’ salary deferral contributions. Our matching contributions were

$104,643

for fiscal

2017,

$94,831

for fiscal

2016,

and

$105,554

for fiscal

2015.

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Note 12 - Subsequent Events

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

12.

SUBSEQUENT EVENTS

     On

May

3,

2017

,

we announced that our Board had declared a quarterly cash dividend of

$1.00

per share of Common Stock to be paid

May

 

31,

2017

to shareholders of record as of the close of business

May

 

15,

2017

.

XML

Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

     We consider all highly liquid investments with maturities of

three

months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

     The carrying amount of cash and cash equivalents, accounts receivable, and accounts payable approximates fair value because of the short maturity of these instruments. Fair values of marketable securities are based on quoted market prices.

Marketable Securities, Policy [Policy Text Block]

Marketable Securities

     All of the investments we have held the past

two

years were marketable securities. We classify securities with original maturities greater than

three

months and remaining maturities

one

year or less as short-term marketable securities and securities with remaining maturities greater than

one

year as long-term marketable securities. We classify all of our marketable securities as available-for-sale, thus securities are recorded at fair value and any associated unrealized gain or loss, net of tax, is included as a separate component of shareholders’ equity, “Accumulated other comprehensive income (loss).” We use a specific-identification cost basis to determine gains and losses. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity, both of which are included in interest income.

     We consider an other-than-temporary impairment of our marketable securities to exist if we determine it is probable that we will be unable to collect all amounts due according to the contractual terms of a debt security. If we judged a decline in fair value for any security to be other than temporary, the cost basis of the individual security would be written down and a charge recognized in net income. We consider a number of factors in determining whether other-than-temporary impairment exists, including: credit market conditions; the credit ratings of the securities; historical default rates for securities of comparable credit rating; the presence of insurance of the securities and, if insured, the credit rating and financial condition of the insurer; the effect of market interest rates on the value of the securities; and the duration and extent of any unrealized losses. We also consider the likelihood that we will be required to sell the securities prior to maturity based on our financial condition and anticipated cash flows. We determined that no write-downs for other-than-temporary impairment were required on available-for-sale securities during fiscal

2017,

2016,

or

2015.

Concentration Of Risk and Financial Instruments Policy [Policy Text Block]

Concentration of Risk and Financial Instruments

     Financial instruments potentially subject to significant concentrations of credit risk consist principally of cash equivalents, marketable securities, and accounts receivable.

     Cash and cash equivalents have been maintained in financial institutions we believe have high credit quality, however these accounts are generally in excess of federally insured amounts. We have invested our excess cash in corporate-backed and municipal-backed bonds and money market instruments. Our investment policy prescribes purchases of only high-grade securities, and limits the amount of credit exposure to any

one

issuer.

     Our customers are throughout the world. We generally do not require collateral from our customers, but we perform ongoing credit evaluations of their financial condition. More information on accounts receivable is contained in the paragraph titled “Accounts Receivable and Allowance for Doubtful Accounts” of this note.

     Additionally, we are dependent on critical suppliers including our packaging vendors and suppliers of certain raw silicon and semiconductor wafers that are incorporated in our products.

Receivables, Policy [Policy Text Block]

Accounts Receivable and Allowance for Doubtful Accounts

     We grant credit to customers in the normal course of business and at times

may

require customers to prepay for an order prior to shipment. Accounts receivable are recorded net of an allowance for doubtful accounts. We make estimates of the uncollectibility of accounts receivable. We specifically analyze accounts receivable, historical bad debts, and customer creditworthiness when evaluating the adequacy of the allowance. We had no charges or provisions to our allowance for doubtful accounts in fiscal

2017,

2016,

or

2015.

Inventory, Policy [Policy Text Block]

Inventories

     Inventories are stated at the lower of cost or net realizable value. Cost is determined by the

first

in,

first

out method. We record inventory reserves when we determine certain inventory is unlikely to be sold based on sales trends, turnover, competition, and other market factors.

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty

     In general we warranty our products to be free from defects in material and workmanship for

one

year.

Property, Plant and Equipment, Policy [Policy Text Block]

Fixed Assets

     Fixed assets are stated at cost. Depreciation of machinery and equipment is recorded over the estimated useful lives of the assets, generally

five

years, using the straight-line method. Amortization of leasehold improvements is recorded using the straight-line method over the lesser of the lease term or

five

-year useful life. We record losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. We have not identified any indicators of impairment during fiscal

2017,

2016,

or

2015.

Depreciation and amortization expense related to fixed assets was

$798,300

for fiscal

2017,

$850,970

for

2016,

and

$934,371

for fiscal

2015.

Revenue Recognition, Sales of Goods [Policy Text Block]

Revenue Recognition

Product Sales Revenue Recognition

     We recognize product sales revenue when evidence of an arrangement exists, the price to the buyer is fixed and determinable, collectability is reasonably assured and the product has shipped. Our sales are shipped FOB shipping point, meaning that our customers (end users and distributors) take title and assume the risks and rewards of ownership on shipment. Our customers

may

return defective products for refund or replacement under warranty, and have other very limited rights of return.

     Shipping charges billed to customers are included in product sales and the related shipping costs are included in selling, general, and administrative expense. Such shipping costs were

$12,760

for fiscal

2017,

$20,721

for fiscal

2016,

and

$12,771

for fiscal

2015.

     Our stocking distributors take title and assume the risks and rewards of product ownership. Payments from our distributors are not contingent on resale or any other matter other than the passage of time, and delivery of products is not dependent on the number of units resold to the ultimate customer. There are no other significant acceptance criteria, pricing or payment terms that would affect revenue recognition.

Revenue Recognition, Services, Commissions [Policy Text Block]

Accounting for Commissions and Discounts

     We sometimes utilize independent sales representatives that provide services relating to promoting our products and facilitating product sales but do not purchase our products. We pay commissions to sales representatives based on the amount of revenue facilitated, and such commissions are recorded as selling, general, and administrative expenses. Under certain limited circumstances, our distributors

may

earn commissions for activities unrelated to their purchases of our products, such as for facilitating the sale of custom products or research and development contracts with

third

parties. We recognize any such commissions as selling, general, and administrative expenses.

     We presume consideration given to a customer is a reduction in revenue unless both of the following conditions are met: (i) we receive an identifiable benefit in exchange for the consideration and the identifiable benefit is sufficiently separable from the customer’s purchase of our products such that we could have purchased the products or services from a

third

party; and (ii) we can reasonably estimate the fair value of the benefit received. We recognize discounts provided to our distributors as reductions in revenue.

Revenue Recognition Research And Development Contract Policy [Policy Text Block]

Contract Research and Development Revenue Recognition

     We recognize contract research and development revenue pro-rata as work progresses. Our research and development contracts do not contain post-shipment obligations. Contracts

may

be either firm-fixed-price or cost-plus-fixed-fee. Firm-fixed-price contracts provide for a price that is not subject to any adjustment based on our cost in performing the contract.

     Cost-plus-fixed-fee contracts are cost-reimbursement contracts that also provide for payment to us of a negotiated fee that is fixed at the inception of the contract. The costs for which we earn reimbursement are the actual costs incurred and are recorded in the period in which they are incurred. We recognize the contract fees pro-rata as work progresses.

Income Tax, Policy [Policy Text Block]

Income Taxes

     We account for income taxes using the liability method. Deferred income taxes are provided for temporary differences between the financial reporting and tax bases of assets and liabilities. We provide valuation allowances against deferred tax assets if we determine that it is less likely than not that we will be able to utilize the deferred tax assets.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expense Recognition

     Research and development costs are expensed as they are incurred.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

     We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is generally the vesting period. We estimate pre-vesting option forfeitures at the time of grant by analyzing historical data and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the total expense recognized over the vesting period will only be for those awards that vest.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Share

     Net income per basic share is computed based on the weighted-average number of common shares issued and outstanding during each year. Net income per diluted share amounts assume conversion, exercise or issuance of all potential common stock instruments. Stock options were the only such instruments for the

three

most recent fiscal years. Stock options totaling

4,000

for fiscal

2017,

6,000

for fiscal

2016,

and

4,000

for fiscal

2015

were not included in the computation of diluted earnings per share because the exercise prices were greater than the market price of the common stock. The following table shows the components of diluted shares:

	Year Ended March 31
	2017		2016		2015
Weighted average common shares outstanding – basic		4,836,602		4,850,209		4,855,504
Dilutive effect of stock options		1,787		2,393		16,431
Shares used in computing net income per share – diluted		4,838,389		4,852,602		4,871,935

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

     The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

     In

March

2017,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2017

-

08,

Nonrefundable Fees and Other Costs (Subtopic

310

-

20)—Premium

Amortization on Purchased Callable Debt Securities

. This ASU is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities. ASU

2017

-

08’s

amendments are effective for fiscal years beginning after

December

15,

2018

and interim periods within those fiscal years, which will be fiscal

2020

for us. We do not expect adoption of ASU 

2017

-

08

to have a significant impact on our financial statements.

     In

August

2016,

the FASB issued ASU No.

2016

-

15,

Statement of Cash Flows (Topic

230),

Classification of Certain Cash Receipts and Cash Payments

, which will make

eight

targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU

2016

-

15

will be effective for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. ASU

2016

-

15

requires retrospective adoption unless it is impracticable to apply, in which case it is to be applied prospectively as of the earliest practicable date. We do not expect adoption of ASU 

2016

-

15

to have a significant impact on our financial statements.

     In

June

2016,

the FASB issued ASU No.

2016

-

13,

Financial Instruments—Credit Losses (Topic

326),

Measurement of Credit Losses on Financial Statements

. This ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendment is effective for financial statements issued for fiscal years beginning after

December

15,

2019

and interim periods within those fiscal years, which will be fiscal

2021

for us. We do not expect adoption of ASU 

2016

-

13

to have a significant impact on our financial statements.
 
     In

March

2016,

the FASB issued ASU No.

2016

-

09,

Compensation—Stock Compensation

, which simplifies the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. The guidance is effective for fiscal years beginning after

December

15,

2016

and interim periods within those fiscal years, which will be fiscal

2018

for us. We do not expect adoption of ASU 

2016

-

09

to have a significant impact on our financial statements.
 
     In

February

2016,

the FASB issued ASU No. 

2016

-

02,

Lease Accounting

. ASU

2016

-

02

requires recognition of lease assets and lease liabilities on the balance sheet of lessees. This update is effective for financial statements issued for fiscal years beginning after

December

 

15,

2018

and interim periods within those fiscal years, which will be fiscal

2020

for us. ASU 

2016

-

02

requires a modified retrospective transition approach and provides certain optional transition relief. We have not yet evaluated the impact of ASU 

2016

-

02

on our financial statements.

     In

January

2016,

the FASB issued ASU No.

2016

-

01,

Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

. The amendment changes the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendment provides clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. The amendment is effective for financial statements issued for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. We do not expect adoption of ASU 

2016

-

01

to have a significant impact on our financial statements.
 
     In

July

2015,

the FASB issued ASU No.

2015

-

11,

Simplifying the Measurement of Inventory

. ASU 

2015

-

11

requires inventory that is recorded using the

first

-in,

first

-out method to be measured at the lower of cost or net realizable value. ASU 

2015

-

11

will be effective prospectively for our fiscal

2018,

with early adoption permitted. We do not expect adoption of ASU 

2015

-

11

to have a significant impact on our financial statements. 
     

 In

May

2014,

the FASB issued ASU  No.

2014

-

09,

which supersedes the revenue recognition requirements in Accounting Standards Codification

605,

Revenue Recognition

. ASU 

2014

-

09

is based on the principle that revenue is recognized to depict the transfer of 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. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits

two

methods of adoption: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. In

August

 

2015,

the FASB issued ASU No. 

2015

-

14,

Revenue from Contracts with Customers: Deferral of the Effective Date

, which deferred the effective date of ASU 

2014

-

09

by

one

year. As a result, ASU 

2014

-

09

is effective for fiscal years beginning after

December

 

15,

2017

and interim periods within those fiscal years, which will be fiscal

2019

for us. Based on our preliminary assessment, we do not expect adoption of ASU 

2014

-

09

to have a significant impact on our financial statements, because we do not expect to change the manner or timing of recognizing revenue. We recognize revenue on product sales to customers and distributors when we satisfy our performance obligations as the products are shipped. We recognize contract research and development revenue pro-rata as work progresses, and our research and development contracts do not contain post-shipment obligations.

XML

Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Weighted Average Number of Shares [Table Text Block]

	Year Ended March 31
	2017		2016		2015
Weighted average common shares outstanding – basic		4,836,602		4,850,209		4,855,504
Dilutive effect of stock options		1,787		2,393		16,431
Shares used in computing net income per share – diluted		4,838,389		4,852,602		4,871,935

XML

Note 4 - Marketable Securities (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Marketable Securities [Table Text Block]

Total		<1 Year		1–3 Years		3–5 Years
$	76,402,756	$	19,591,833	$	33,461,493	$	23,349,430

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	As of March 31, 2017									As of March 31, 2016
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value		Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Corporate bonds	$	75,158,087	$	187,001	$	(246,935	)	$	75,098,153	$	83,339,487	$	717,206	$	(10,824	)	$	84,045,869
Municipal bonds		1,304,817		-		(214	)		1,304,603		1,344,328		2,522		-			1,346,850
Total	$	76,462,904	$	187,001	$	(247,149	)	$	76,402,756	$	84,683,815	$	719,728	$	(10,824	)	$	85,392,719

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less Than 12 Months					12 Months or Greater					Total
	Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses
As of March 31, 2017
Corporate bonds	$	32,198,766	$	(246,935	)	$	-	$	-		$	32,198,766	$	(246,935	)
Municipal bonds		1,304,603		(214	)		-		-			1,304,603		(214	)
Total	$	33,503,369	$	(247,149	)	$	-	$	-		$	33,503,369	$	(247,149	)
As of March 31, 2016
Corporate bonds	$	3,003,606	$	(6,703	)	$	2,599,870	$	(4,121	)	$	5,603,476	$	(10,824	)
Municipal bonds		-		-			-		-			-		-
Total	$	3,003,606	$	(6,703	)	$	2,599,870	$	(4,121	)	$	5,603,476	$	(10,824	)

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Note 5 - Inventories (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31
	2017		2016
Raw materials	$	786,775	$	810,987
Work in process		1,968,990		1,653,800
Finished goods		602,533		740,446
Total inventories	$	3,358,298	$	3,205,233

XML

Note 6 - Stock-based Compensation (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year Ended March 31
	2017			2016			2015
Risk-free interest rate		1.0	%		1.6	%		1.6	%
Expected volatility		27	%		26	%		24	%
Expected life (years)		4.3			4.3			4.2
Dividend yield		7.0	%		7.1	%		0	%

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Ranges of Exercise Prices			Number Outstanding		Weighted Average Exercise Price		Weighted Remaining Contractual Life (years)
$42.45	-	54.11		5,000	$	49.70		4.0
56.76	-	67.69		14,000		60.30		7.8
				19,000	$	57.51		6.8

Share-based Compensation, Activity [Table Text Block]

	Option Shares Reserved			Options Outstanding			Weighted Average Option Exercise Price		Warrants Outstanding			Weighted Average Warrant Exercise Price
At March 31, 2014		155,230			38,000		$	31.78		2,000		$	37.38
Granted		(4,000	)		4,000		$	67.69		-			-
Exercised		-			(6,910	)	$	43.81		-			-
Terminated		-			-		$	-		(2,000	)		37.38
At March 31, 2015		151,230			35,090		$	33.51		-		$	-
Granted		(4,000	)		4,000		$	56.76		-			-
Exercised		-			(18,090	)	$	16.19		-			-
Terminated		-			-		$	-		-			-
At March 31, 2016		147,230			21,000		$	52.85		-		$	-
Granted		(4,000	)		4,000		$	57.46		-			-
Exercised		-			(6,000	)	$	41.19		-			-
Terminated		-			-		$	-		-			-
At March 31, 2017		143,230			19,000		$	57.51		-		$	-

XML

Note 7 - Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended March 31
	2017			2016			2015
Current taxes
Federal	$	6,034,924		$	5,754,428		$	6,608,923
State		138,689			186,822			330,971
Deferred taxes
Federal		(25,196	)		(55,254	)		125,070
State		(1,275	)		(1,214	)		6,356
Income tax provision	$	6,147,142		$	5,884,782		$	7,071,320

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended March 31
	2017			2016			2015
Tax expense at U.S. statutory rate	$	6,645,733		$	6,272,341		$	7,503,886
State income taxes, net of Federal benefit		83,116			118,057			216,518
Domestic manufacturing deduction		(536,063	)		(476,932	)		(600,207	)
Municipal interest		(4,207	)		(4,171	)		(11,489	)
Other		(41,437	)		(24,513	)		(37,388	)
Income tax provision	$	6,147,142		$	5,884,782		$	7,071,320

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	March 31
	2017		2016
Vacation accrual	$	109,298	$	118,611
Inventory reserve		81,743		90,825
Depreciation and amortization		52,378		(30,174	)
Stock-based compensation deductions		86,335		115,257
Unrealized loss (gain) on marketable securities		21,852		(257,545	)
Other		5,449		14,214
Long-term deferred tax assets	$	357,055	$	51,188

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Note 8 - Concentrations (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	% of Revenue for Year Ended March 31
	2017			2016			2015
Customer A		22	%		23	%		20	%
Customer B		20	%		20	%		16	%
Customer C		*			*			14	%
Customer D		*			*			12	%

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

	Year Ended March 31
	2017		2016		2015
United States	$	13,600,236	$	12,392,053	$	11,919,548
Europe, the Middle East, and Africa		9,612,883		11,392,046		13,779,392
Asia-Pacific		4,200,934		3,113,484		4,318,209
Rest of World		912,143		819,695		566,939
Total Revenue	$	28,326,196	$	27,717,278	$	30,584,088

XML

Note 9 - Commitments and Contingencies (Tables)

12 Months Ended

Mar. 31, 2017

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year Ending March 31
2018		2019		2020		2021		2022		Total
$	283,494	$	286,590	$	290,523	$	220,296	$	-	$	1,080,903

XML

Note 1 - Description of Business (Details Textual)	12 Months Ended
	Mar. 31, 2017
Number of Reportable Segments	1

XML

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Impairment of Long-Lived Assets Held-for-use	$ 0	$ 0	$ 0
Product Warranty Term	1 year
Depreciation, Depletion and Amortization	$ 1,147,451	850,970	934,371
Shipping, Handling and Transportation Costs	$ 12,760	$ 20,721	$ 12,771
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,000	6,000	4,000
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0	$ 0	$ 0
Provision for Doubtful Accounts	0	0	0
Allowance for Doubtful Accounts Receivable, Write-offs	$ 0	$ 0	$ 0
Machinery and Equipment [Member]
Property, Plant and Equipment, Useful Life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life	5 years

XML

Note 2 - Summary of Significant Accounting Policies - Weighted Average Number of Shares (Details) - shares	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Basic (in shares)	4,836,602	4,850,209	4,855,504
Dilutive effect of stock options (in shares)	1,787	2,393	16,431
Shares used in computing net income per share – diluted (in shares)	4,838,389	4,852,602	4,871,935

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Note 3 - Fair Value Measurements (Details Textual) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Fair Value, Inputs, Level 1 [Member]
Available-for-sale Securities	$ 75,098,153	$ 84,045,869
Fair Value, Inputs, Level 2 [Member]
Available-for-sale Securities	1,304,603	1,346,850
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 0	$ 0

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Note 4 - Marketable Securities (Details Textual)	12 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	$ 247,149	$ 10,824
Number of Corporate Bonds Resulted in Loss	9
Number of Corporate Bonds	23
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	10
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	0
Number of Other-than-temporarily Impaired Marketable Securities	0

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Note 4 - Marketable Securities - Fair Value of Marketable Securities (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Total	$ 76,402,756	$ 85,392,719
Less than 1 Year	19,591,833
1–3 Years	33,461,493
3-5 Years	$ 23,349,430

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Note 4 - Marketable Securities - Reconciliation of Marketable Securities (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Adjusted Cost	$ 76,462,904	$ 84,683,815
Gross Unrealized Gains	187,001	719,728
Gross Unrealized Losses	(247,149)	(10,824)
Fair Market Value	76,402,756	85,392,719
Corporate Bond Securities [Member]
Adjusted Cost	75,158,087	83,339,487
Gross Unrealized Gains	187,001	717,206
Gross Unrealized Losses	(246,935)	(10,824)
Fair Market Value	75,098,153	84,045,869
Municipal Bonds [Member]
Adjusted Cost	1,304,817	1,344,328
Gross Unrealized Gains		2,522
Gross Unrealized Losses	(214)
Fair Market Value	$ 1,304,603	$ 1,346,850

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Note 4 - Marketable Securities - Gross Unrealized Losses and Fair Value of Investments (Details) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair market value, less than 12 months	$ 33,503,369	$ 3,003,606
Gross unrealized losses, less than 12 months	(247,149)	(6,703)
Fair market value, greater than 12 months		2,599,870
Gross unrealized losses, greater than 12 months		(4,121)
Total fair market value	33,503,369	5,603,476
Total gross unrealized losses	(247,149)	(10,824)
Corporate Bond Securities [Member]
Fair market value, less than 12 months	32,198,766	3,003,606
Gross unrealized losses, less than 12 months	(246,935)	(6,703)
Fair market value, greater than 12 months		2,599,870
Gross unrealized losses, greater than 12 months		(4,121)
Total fair market value	32,198,766	5,603,476
Total gross unrealized losses	(246,935)	(10,824)
Municipal Bonds [Member]
Fair market value, less than 12 months	1,304,603
Gross unrealized losses, less than 12 months	(214)
Fair market value, greater than 12 months
Gross unrealized losses, greater than 12 months
Total fair market value	1,304,603
Total gross unrealized losses	$ (214)

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Note 5 - Inventories - Summary of Inventories (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Raw materials	$ 786,775	$ 810,987
Work in process	1,968,990	1,653,800
Finished goods	602,533	740,446
Total inventories	$ 3,358,298	$ 3,205,233

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Note 6 - Stock-based Compensation (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Allocated Share-based Compensation Expense	$ 22,000	$ 21,160	$ 58,960
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	7.00%	7.10%	0.00%
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options	$ 7,993	$ 7,688
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	191,388
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	480,370
Share-based Compensation Arrangement by Share Based Payment Award Options Grants in Period Fair Value	$ 22,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	0	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	6 years 292 days	6 years 73 days	3 years 182 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	19,000	21,000	35,090	38,000
Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0	0	0	2,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years

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Note 6 - Stock-based Compensation - Schedule of Valuation Assumptions (Details)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Risk-free interest rate	1.00%	1.60%	1.60%
Expected volatility	27.00%	26.00%	24.00%
Expected life (years) (Year)	4 years 109 days	4 years 109 days	4 years 73 days
Dividend yield	7.00%	7.10%	0.00%

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Note 6 - Stock-based Compensation - Summary of Options Outstanding (Details)	12 Months Ended
	Mar. 31, 2017 $ / shares shares
Number Outstanding (in shares) | shares	19,000
Weighted Average Exercise Price (in dollars per share)	$ 57.51
Weighted Remaining Contractual Life (Year)	6 years 292 days
Range One [Member]
Ranges of Exercise Prices, Lower Limit (in dollars per share)	$ 42.45
Ranges of Exercise Prices, Upper Limit (in dollars per share)	$ 54.11
Number Outstanding (in shares) | shares	5,000
Weighted Average Exercise Price (in dollars per share)	$ 49.70
Weighted Remaining Contractual Life (Year)	4 years
Range Two [Member]
Ranges of Exercise Prices, Lower Limit (in dollars per share)	$ 56.76
Ranges of Exercise Prices, Upper Limit (in dollars per share)	$ 67.69
Number Outstanding (in shares) | shares	14,000
Weighted Average Exercise Price (in dollars per share)	$ 60.30
Weighted Remaining Contractual Life (Year)	7 years 292 days

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Note 6 - Stock-based Compensation - Summary of Stock Options and Warrants (Details) - $ / shares	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Option Shares Reserved [Member]
Options Outstanding (in shares)	143,230	147,230	151,230	155,230
Granted (in shares)	(4,000)	(4,000)	(4,000)
Granted (in shares)	4,000	4,000	4,000
Exercised (in shares)
Terminated (in shares)
Employee Stock Option [Member]
Options Outstanding (in shares)	19,000	21,000	35,090	38,000
Weighted Average Option Exercise Price (in dollars per share)	$ 57.51	$ 52.85	$ 33.51	$ 31.78
Granted (in shares)	(4,000)	(4,000)	(4,000)
Granted (in shares)	4,000	4,000	4,000
Granted (in dollars per share)	$ 57.46	$ 56.76	$ 67.69
Exercised (in shares)	(6,000)	(18,090)	(6,910)
Exercised (in dollars per share)	$ 41.19	$ 16.19	$ 43.81
Terminated (in shares)
Terminated (in dollars per share)
Warrants [Member]
Options Outstanding (in shares)	0	0	0	2,000
Weighted Average Option Exercise Price (in dollars per share)				$ 37.38
Granted (in shares)
Granted (in shares)
Granted (in dollars per share)
Exercised (in shares)
Exercised (in dollars per share)
Terminated (in shares)			(2,000)
Terminated (in dollars per share)			$ 37.38

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Note 7 - Income Taxes (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation		$ 32,616	$ 352,294	$ 24,288
Open Tax Year	1999
Unrecognized Tax Benefits		0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit		0
Unrecognized Tax Benefits, Interest on Income Taxes Accrued		$ 0
Earliest Tax Year [Member]
Open Tax Year		2013
Latest Tax Year [Member]
Open Tax Year		2016

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Note 7 - Income Taxes - Schedule of Income Tax Provisions (Details) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Current taxes
Federal, Current taxes	$ 6,034,924	$ 5,754,428	$ 6,608,923
State, Current taxes	138,689	186,822	330,971
Deferred taxes
Federal, Deferred taxes	(25,196)	(55,254)	125,070
State, Deferred taxes	(1,275)	(1,214)	6,356
Income tax provision	$ 6,147,142	$ 5,884,782	$ 7,071,320

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Note 7 - Income Taxes - Reconciliation of Income Tax Provisions (Details) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Tax expense at U.S. statutory rate	$ 6,645,733	$ 6,272,341	$ 7,503,886
State income taxes, net of Federal benefit	83,116	118,057	216,518
Domestic manufacturing deduction	(536,063)	(476,932)	(600,207)
Municipal interest	(4,207)	(4,171)	(11,489)
Other	(41,437)	(24,513)	(37,388)
Income tax provision	$ 6,147,142	$ 5,884,782	$ 7,071,320

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Note 7 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Vacation accrual	$ 109,298	$ 118,611
Inventory reserve	81,743	90,825
Depreciation and amortization	52,378	(30,174)
Stock-based compensation deductions	86,335	115,257
Unrealized loss (gain) on marketable securities	21,852
Unrealized loss (gain) on marketable securities		(257,545)
Other	5,449	14,214
Long-term deferred tax assets	$ 357,055	$ 51,188

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Note 8 - Concentrations (Details Textual)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Number of Major Customers	2	2
Accounts Receivable [Member]
Concentration Risk, Percentage	40.00%	36.00%

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Note 8 - Concentrations - Revenue By Major Customers (Details) - Sales Revenue, Net [Member]	12 Months Ended
	Mar. 31, 2017		Mar. 31, 2016		Mar. 31, 2015
Customer A [Member]
Percentage of concentration	22.00%		23.00%		20.00%
Customer B [Member]
Percentage of concentration	20.00%		20.00%		16.00%
Customer C [Member[
Percentage of concentration		[1]		[1]	14.00%
Customer D [Member]
Percentage of concentration		[1]		[1]	12.00%

[1] Less than 10%

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Note 8 - Concentrations - Revenue By Geographic Region (Details) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 28,326,196	$ 27,717,278	$ 30,584,088
UNITED STATES
Revenue	13,600,236	12,392,053	11,919,548
EMEA [Member]
Revenue	9,612,883	11,392,046	13,779,392
Asia Pacific [Member]
Revenue	4,200,934	3,113,484	4,318,209
Rest of World [Member]
Revenue	$ 912,143	$ 819,695	$ 566,939

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Note 9 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Payments for (Proceeds from) Loans and Leases	$ 271,470	$ 270,627	$ 269,473

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Note 9 - Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)	Mar. 31, 2017 USD ($)
2018	$ 283,494
2019	286,590
2020	290,523
2021	220,296
2022
Total	$ 1,080,903

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Note 10 - Stock Repurchase Program (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Aug. 27, 2015	Jan. 21, 2009
Common Stock, Shares Authorized	6,000,000	6,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Capital Units, Authorized	10,000,000
Stock Repurchased and Retired During Period, Value	$ 0	$ 1,695,788	$ 0
Stock Repurchase Program, Authorized Amount					$ 2,500,000
Stock Repurchase Program Authorized Additional Amount				$ 5,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 4,540,806

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Note 11 - Information As to Employee Stock Purchase, Savings, and Similar Plans (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	100.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	3.00%
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 104,643	$ 94,831	$ 105,554

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Note 12 - Subsequent Events (Details Textual) - $ / shares		12 Months Ended
	May 03, 2017	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Common Stock, Dividends, Per Share, Declared		$ 4	$ 4	$ 2.06
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 1
Common Stock [Member] | Subsequent Event [Member]
Dividends Payable, Date Declared	May 03, 2017
Dividends Payable, Date to be Paid	May 31, 2017
Dividends Payable, Date of Record	May 15, 2017