Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2019

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.

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

charges or provisions to our allowance for doubtful accounts in fiscal

2019

2018.

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

2019

2018.

Depreciation and amortization expense related to fixed assets was

$498,813

for fiscal

2019

and

$692,665

for fiscal

2018.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

We recognize revenue when we satisfy performance obligations by the transfer of control of products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. Revenue is disaggregated into product sales and contract research and development to depict the nature, amount, timing of revenue recognition and economic characteristics of our business, and is represented within the financial statements.

We recognize revenue from product sales to customers and distributors when we satisfy our performance obligation, at a point in time, upon product shipment or delivery to our customer or distributor as determined by agreed upon shipping terms. Shipping charges billed to customers are included in product sales and the related shipping costs are included in 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 recognize discounts provided to our distributors as reductions in revenue.

We recognize contract research and development revenue over a period of time as the performance obligation is satisfied over a period of time rather than a point in time. Contracts have specifications unique to each customer and do

not

create an asset with an alternate use, and we have an enforceable right to payment for performance completed to date. We recognize revenue over a period of time using costs incurred as the measurement of progress towards completion.

Accounts receivable is recognized when we have transferred a good or service to a customer and our right to receive consideration is unconditional through the completion of our performance obligation. A contract asset is recognized when we have a right to consideration from the transfer of goods or services to a customer but have

not

completed our performance obligation. A contract liability is recognized when we have been paid by a customer but have

not

yet satisfied the performance obligation by transferring goods or services. We had

material contract assets or contract liabilities as of

March 31, 2019

March

31,

2018.

Our performance obligations related to product sales and contract research and development contracts are satisfied in

one

year or less. Unsatisfied performance obligations represent contracts with an original expected duration of

one

year or less. As permitted under Accounting Standards Codification (“ASC”) Topic

606,

Revenue from Contracts with Customers

, we are using the practical expedient

not

to disclose the value of these unsatisfied performance obligations. We also use the practical expedient in which we do

not

assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be

one

year or less.

Income Tax, Policy [Policy Text Block]

Income Taxes

We account for income taxes using the asset and 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. Customer-sponsored research and development costs are included in cost of sales.

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 recognize any forfeitures as they occur.

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 exercise of all stock options. The following table shows the components of diluted shares:

	Year Ended March 31
	2019		2018
Weighted average common shares outstanding – basic		4,844,010		4,841,347
Dilutive effect of stock options		6,557		4,865
Shares used in computing net income per share – diluted		4,850,567		4,846,212

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

Recently Adopted Accounting Standards

August 2018,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2018

13,

Fair Value Measurement

. ASU

2018

modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in ASU

2018

will be effective for fiscal years beginning after

December 15, 2019,

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

2021

for us. Early adoption is permitted for the removed disclosures and delayed adoption is permitted until fiscal

2021

for the new disclosures. We adopted ASU

2018

early, effective the quarter ended

September 30, 2018.

The removed and modified disclosures were adopted on a retrospective basis and the new disclosures on a prospective basis. The adoption did

not

have a significant effect on our financial statements.

In

February 2018,

the FASB issued ASU

No.

2018

02,

Income Statement—Reporting Comprehensive Income (Topic

220

)

. ASU

2018

addresses the effect of the change in the U.S. federal corporate tax rate on items within accumulated other comprehensive income or loss due to the enactment of the Act “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year

2018”

(the “Tax Reform Act”) on

December

22,

2017.

The guidance will be effective for fiscal years beginning after

December

15,

2018,

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

2020

for us. Early adoption is permitted, and we adopted ASU

2018

in the quarter ended

June

30,

2018.

The adoption resulted in a

$60,365

reclassification from accumulated other comprehensive loss to retained earnings due to the change in the federal corporate tax rate.

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 made

eight

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

2016

retrospectively in the quarter ended

June

30,

2018.

The adoption did

not

have a significant impact 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 changed 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. We adopted ASU

2016

retrospectively in the quarter ended

June

30,

2018.

The adoption did

not

have a significant impact on our financial statements.

In

May 2014,

the FASB issued ASU

No.

2014

09,

which superseded the revenue recognition requirements in Accounting Standards Codification

605,

Revenue Recognition

. ASU

2014

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. We adopted the guidance using the modified retrospective method to contracts that were

not

complete as of

April

2018.

The adoption did

not

have a significant impact on our financial statements

New Accounting Standards

Not

Yet Adopted

June 2016,

the FASB issued ASU

No.

2016

13,

Financial Instruments—Credit Losses (Topic

326

), Measurement of Credit Losses on Financial Statements

. In

November

2018

the FASB issued ASU

No.

2018

19,

Codification Improvements to Topic

326,

Financial Instruments—Credit Losses

, which clarifies codification and corrects unintended application of the guidance. ASU

2016

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. ASU

2016

and ASU

2018

are 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 the new guidance to have a significant impact on our financial statements.

In

February 2016,

the FASB issued ASU

No.

2016

02,

Lease Accounting

. ASU

2016

requires recognition of lease assets and lease liabilities on the balance sheet of lessees. In

July 2018,

the FASB issued ASU

2018

10,

Codification Improvements to Topic

842

(Leases)

, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The guidance is effective for fiscal years beginning after

December

15,

2018,

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

2020

for us. In

July 2018,

the FASB issued ASU

No.

2018

11,

Leases Topic (

842

): Targeted Improvements.

ASU

No.

2018

provided companies an option to apply the transition provisions of the new lease standard at its adoption date instead of at the earliest comparative period presented in its financial statements, and we expect to adopt the new lease guidance using that method. Currently our only lease is the lease for our facility. We expect to recognize a leased asset and corresponding liability on our balance sheet, which will increase total assets by less than

one

percent. The leased asset and corresponding liability will exclude non-lease components.