Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2024

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

Commission File Number: 001-31990

TEL-INSTRUMENT ELECTRONICS CORP.

(Exact name of registrant as specified in its charter)

New Jersey

22-1441806

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

One Branca Road

East Rutherford, NJ 07073

(Address of principal executive offices)

(201) 933-1600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

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 past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an 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	☐
Non-accelerated filer	☒	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 Exchange Act). Yes ☐ No ☒

As of August 13, 2024, there were 3,255,887 shares outstanding of the registrant’s common stock.

TEL-INSTRUMENT ELECTRONICS CORP.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
		Page
Item 1.	Unaudited Condensed Consolidated Financial Statements.	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	20

Item 4.	Controls and Procedures.	20

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings.	22

Item 1A.	Risk Factors.	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	22

Item 3.	Defaults Upon Senior Securities.	22

Item 4.	Mine Safety Disclosures.	22

Item 5.	Other Information.	22

Item 6.	Exhibits.	23

Signatures		24

PART I – FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements.

TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2024			March 31, 2024
	(unaudited)
ASSETS

Current assets:
Cash	$	149,550		$	132,013
Accounts receivable, net		1,763,680			1,110,548
Inventories, net		5,208,229			5,411,644
Prepaid expenses and other current assets		213,024			214,161
Total current assets		7,334,483			6,868,366

Equipment and leasehold improvements, net		64,165			73,195
Operating lease right-of-use assets		1,272,700			1,324,463
Deferred tax asset, net		2,439,427			2,450,657
Other long-term assets		35,109			35,109
Total assets	$	11,145,884		$	10,751,790

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	1,242,906		$	1,276,935
Accrued expenses ‐vacation pay, payroll and payroll withholdings		265,948			248,713
Deferred revenues - current portion		57,778			72,803
Operating lease liabilities – current portion		204,064			210,111
Accrued expenses - other		179,748			120,027
Line of credit		1,000,000			690,000
Promissory notes – related parties		80,500			-
Total current liabilities		3,030,944			2,618,589

Operating lease liabilities – long-term		1,068,636			1,114,352
Other long term liabilities		43,524			45,501
Deferred revenues – long-term		104,963			119,721

Total liabilities		4,248,067			3,898,163

Commitments and contingencies

Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, par value $0.10 per share
Preferred stock, 500,000 shares 8% Cumulative Series A Convertible Preferred authorized, issued and outstanding, respectively par value $0.10 per share		4,175,998			4,115,998
Preferred stock, 320,000 shares 8% Cumulative Series B Convertible Preferred authorized, 233,334 and 233,334 issued and outstanding, par value $0.10 per share		1,732,701			1,704,701
Preferred stock, 166,667 shares 8% Cumulative Series C Convertible Preferred authorized; 53,500 and 53,500 issued, and outstanding, par value $0.10 per share		341,635			335,215
Common stock, 7,000,000 shares authorized, par value $0.10 per share, 3,255,887 and 3,255,887 shares issued and outstanding, respectively		325,586			325,586
Additional paid-in capital		6,286,607			6,379,085
Accumulated deficit		(5,964,710	)		(6,006,958	)
Total stockholders’ equity		6,897,817			6,853,627
Total liabilities and stockholders’ equity	$	11,145,884		$	10,751,790

See accompanying notes to unaudited condensed consolidated financial statements.

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TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
	June 30, 2024			June 30, 2023

Net sales	$	2,842,176		$	2,866,929
Cost of sales		2,096,274			1,572,380

Gross margin		745,902			1,294,549

Operating expenses:
Selling, general and administrative		542,340			584,858
Engineering, research, and development		131,638			289,441
Total operating expenses		673,978			874,299

Income from operations		71,924			420,250

Other (expense) income:
Interest income		11			39,289
Interest expense – other		(18,457	)		(13,455	)
Interest expense – judgement		-			(70,245	)
Total other net expense		(18,446	)		(44,411	)

Income before income taxes		53,478			375,839

Income tax expense		11,230			80,547

Net income		42,248			295,292

Preferred dividends		(94,420	)		(80,000	)

Net income (loss) attributable to common shareholders	$	(52,172	)	$	215,292

Basic net (loss) income per common share	$	(0.02	)	$	0.07
Diluted net (loss) income per common share	$	(0.02	)	$	0.06

Weighted average shares outstanding:
Basic		3,255,887			3,255,887
Diluted		3,255,887			5,215,665

See accompanying notes to unaudited condensed consolidated financial statements.

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TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Three Months Ended June 30, 2024, and 2023

(Unaudited)

	Series A Convertible Preferred Stock				Series B Convertible Preferred Stock				Series C Convertible Preferred Stock				Common Stock
	# of Shares Issued		Amount		# of Shares Issued		Amount		# of Shares Issued		Amount		# of Shares Issued		Amount		Additional Paid-In Capital			Accumulated Deficit			Total
Balances at April 1, 2024		500,000	$	4,115,998		233,334	$	1,704,701		53,500	$	335,215		3,255,887	$	325,586	$	6,379,085		$	(6,006,958	)	$	6,853,627
8% Dividends on Preferred Stock		-		60,000		-		28,000		-		6,420		-		-		(94,420	)		-			-
Stock-based compensation		-		-		-		-		-		-		-		-		1,942			-			1,942
Net income		-		-		-		-		-		-		-		-		-			42,248			42,248
Balances at June 30, 2024		500,000	$	4,175,998		233,334	$	1,732,701		53,500	$	341,635		3,255,887	$	325,586	$	6,286,607		$	(5,964,710	)	$	6,897,817

	Series A Convertible Preferred Stock				Series B Convertible Preferred Stock				Common Stock
	# of Shares Issued		Amount		# of Shares Issued		Amount		# of Shares Issued		Amount		Additional Paid-In Capital			Accumulated Deficit			Total
Balances at April 1, 2023		500,000	$	3,875,998		166,667	$	1,207,367		3,255,887	$	325,586	$	6,721,535		$	(6,348,849	)	$	5,781,637
8% Dividends on Preferred Stock		-		60,000		-		20,000		-		-		(80,000	)		-			-
Stock-based compensation		-		-		-		-		-		-		3,269			-			3,269
Net income		-		-		-		-		-		-		-			295,292			295,292
Balances at June 30, 2023		500,000	$	3,935,998		166,667	$	1,227,367		3,255,887	$	325,586	$	6,644,804		$	(6,053,557	)	$	6,080,198

See accompanying notes to unaudited condensed consolidated financial statements.

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TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	June 30, 2024			June 30, 2023
Cash flows from operating activities:
Net income	$	42,248		$	295,292
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Deferred income taxes		11,230			80,547
Depreciation and amortization		9,030			12,274
Amortization of right of use assets		51,763			49,786
Provision for inventory obsolescence		4,127			1,004
Non-cash stock-based compensation		1,942			3,269
Changes in assets and liabilities:
Increase in accounts receivable		(653,132	)		(336,663	)
Decrease (increase) in inventories		199,288			(21,600	)
Decrease in prepaid expenses and other current assets		1,137			573,177
Decrease in accounts payable		(34,029	)		(9,360	)
Increase in accrued payroll, vacation pay and payroll taxes		17,235			64,416
Decrease in deferred revenues		(29,783	)		(32,501	)
Decrease in operating lease liabilities		(51,763	)		(49,786	)
Decrease in other long term liabilities		(1,977	)		(1,978	)
Increase in accrued expenses - other		59,721			8,150
Increase in accrued legal damages		-			70,245
Net cash (used) provided by operating activities		(372,963	)		706,272

Cash flows from investing activities:
Purchases of equipment		-			(13,983	)
Net cash used in investing activities		-			(13,983	)

Cash flows from financing activities:
Draw from line of credit		310,000			-
Proceeds from promissory notes-related parties		80,500			-
Net cash provided by financing activities		390,500			-

Net increase in cash and restricted cash		17,537			692,289
Cash and restricted cash at beginning of period		132,013			5,850,481
Cash and restricted cash at end of period	$	149,550		$	6,542,770

End of period
Cash	$	149,550		$	4,531,637
Restricted cash		-			2,011,133
	$	149,550		$	6,542,770
Beginning of period
Cash	$	132,013		$	3,839,398
Restricted cash		-			2,011,083
	$	132,013		$	5,850,481
Supplemental cash flow information:
Taxes paid	$	-			-
Interest paid	$	17,869		$	13,455

See accompanying notes to unaudited condensed consolidated financial statements.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Business, Organization and Liquidity

Business and Organization

Tel-Instrument Electronics Corp. (“Tel,” “TIC” or the “Company”) has been in business since 1947. The Company is a leading designer and manufacturer of avionics test and measurement instruments for the global, commercial air transport, general aviation, and government/military defense markets. Tel provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. The Company sells its equipment in both domestic and international markets. Tel continues to develop new products in anticipation of customers’ needs and to maintain its strong market position. Its development of multi-function testers has made it easier for customers to perform ramp tests with less operator training, fewer test sets, and lower product support costs. The Company has become a major manufacturer and supplier of Identification Friend or Foe (“IFF”) flight line test equipment over the last two decades.

The Company is publicly traded and was quoted on the Over-the-Counter Market Place (“OTCQB”) under the symbol “TIKK.”

Liquidity

On June 30, 2024, the Company had positive working capital of $4,303,539 as compared to working capital of $4,249,777 on March 31, 2024. This included $149,550 of cash on hand and $1.8 million of accounts receivable.

The Company had a $7 million sales backlog on June 30, 2024.

On April 1, 2023, Bank of America further extended the maturity date of our line of credit from June 30, 2024 to July 31, 2024. Bank of America has extended the line of credit while in process of formally renewing the line of credit for an additional period. Additionally, the line of credit available was increased from $690,000 to $1,000,000. The line of credit was fully drawn upon for $1,000,000 on June 30, 2024. The Company repaid $75,000 of this line of credit in July 2024.

During June 2024, the Company’s CEO provided short term advances totaling $105,500. During July 2024, an additional $40,000 was provided in short term advances of which $25,000 was repaid during July 2024, with a balance owed as of August 13, 2024 of $120,500.

The Company believes it has sufficient cash on hand and expected cash flow from operations for the next twelve months due to the increase in business and the opportunities we have included in our projections. Revenues and profits are expected to improve in fiscal year 2025 due to the success of our SDR-OMNI product and the commencement of CRAFT ECP production.

Based on the foregoing, we believe that our expected cash flows from operations, and fulfillment of our $7 million open orders will be sufficient to operate in the normal course of business for next 12 months from the issuance date of these unaudited condensed consolidated financial statements.

Currently, the Company has no material future capital expenditure requirements.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Tel-Instrument Electronics Corp. as of June 30, 2024, the results of operations, change in stockholders’ equity and statements of cash flow for the three months ended June 30, 2024 and June 30, 2023. These results are not necessarily indicative of the results to be expected for the full year. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include disclosures normally made in an Annual Report on Form 10-K. The March 31, 2024 balance sheet included herein was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K as of that date. Accordingly, the unaudited condensed consolidated financial statements included herein should be reviewed in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as filed with the United States Securities and Exchange Commission (the “SEC”) on June 28, 2024 (the “Annual Report”).

Revenue Recognition

Under Financial Accounting Standards Board (“FASB”) Topic 606, Revenue from Contacts with Customers (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods and services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company accounts for revenue recognition in accordance with ASC 606.The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The ASC 606 defines a five-step process to achieve the core principle and, in doing so, it is possible more judgement and estimates may be required within the revenue recognition process than are currently in use.

The Company generates revenue from designing, manufacturing, and selling avionic tests and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. The Company also offers calibration and repair services for a wide range of airborne navigation and communication equipment.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 – Summary of Significant Accounting Policies (continued)

Nature of goods and services

The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each.

Test Units/Sets

The Company develops and manufactures unit sets to test navigation and communication equipment, such as ramp testers and bench testers for equipment installed in aircraft and ground radios. The Company recognizes revenue when the customer obtains control of the Company’s product based on the contractual shipping terms of the contract, which is usually at the time of shipment. Revenue on products is presented gross because the Company is primarily responsible for fulfilling the promise to provide the product, is responsible to ensure that the product is produced in accordance with the related supply agreement and bears the risk of loss while the inventory is in-transit. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines stand-alone selling prices based on the price at which the performance obligation is sold separately. If the stand-alone selling price is not observable through past transactions, the Company estimates the standalone selling price considering available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of June 30, 2024.

Replacement Parts

The Company offers replacement parts for test equipment, ramp testers, and bench testers. Similar to the sale of test units, the control of the product transfers at a point of time and therefore, revenue is recognized at the point in time when the obligation to the customer has been fulfilled.

Extended Warranties

The extended warranties sold by the Company provide a level of assurance beyond the coverage for defects that existed at the time of a sale or against certain types of covered damage with coverage terms ranging from 2 to 7 years. Amounts received for warranties are recorded as deferred revenue and recognized as revenue ratably over the respective term of the agreements. As of June 30, 2024, $162,741 is expected to be recognized from remaining performance obligations for extended warranties as compared to $179,422 at March 31, 2024. For the three months ended June 30, 2024, the Company recognized revenue from extended warranties of $16,681 from amounts that were included in Deferred Revenue as compared to $34,006 of extended warranties from amounts that were included in Deferred Revenue for the three months ended June 30, 2023.

The following table provides a summary of the changes in deferred revenues for the three months ended June 30, 2024:

Deferred revenues at April 1, 2024	$	179,422
Revenue recognized for the three months ended June 30, 2024		(16,681	)
Deferred revenues at June 30, 2024	$	162,741

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 – Summary of Significant Accounting Policies (continued)

Repair and Calibration Services

The Company offers repair and calibration services for units that are returned for annual calibrations and/or for repairs after the warranty period has expired. The Company repairs and calibrates a wide range of airborne navigation and communication equipment. Revenue is recognized at the time the repaired or calibrated unit is shipped back to the customer, as it is at this time that the work is completed.

Other

The majority of the Company’s revenues are from contracts with the U.S. government, airlines, aircraft manufacturers, domestic distributors, international distributors for sales to military and commercial customers, and other commercial customers. The contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (“FAR”) which provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within a range from 30 to 60 days, or in certain cases, up-front deposits. In circumstances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the Company's contracts generally do not include a significant financing component. Payments received prior to the delivery of units or services performed are recorded as deferred revenues. The Company applied the practical expedient to account for shipping and handling activities as fulfillment cost rather than as a separate performance obligation. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. All sales are denominated in U.S. dollars. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. The Company chose to apply the available practical expedient as commission eligible sales orders are fulfilled within less than one year and commissions are generally paid by the Company within 30 days of the related sales order fulfillment.

Disaggregation of revenue

In the following tables, revenue is disaggregated by revenue category.

	For the Three Months Ended June 30, 2024
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	186,702	$	2,374,860
	$	186,702	$	2,374,860

The remainder of our revenues for the three months ended June 30, 2024, are derived from repairs and calibration of $221,581, replacement parts of $41,846, extended warranties of $16,681 and other net revenues of $506. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments.

	For the Three Months Ended June 30, 2023
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	408,959	$	1,977,812
	$	408,959	$	1,977,812

The remainder of our revenues for the three months ended June 30, 2023, are derived from repairs and calibration of $342,051, replacement parts of $97,297, extended warranties of $34,006 and other revenues of $6,804. We do not disaggregate these revenue streams as they are not deemed an important element related to how management operates the business between segments.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 2 – Summary of Significant Accounting Policies (continued)

In the following table, revenue is disaggregated by geography.

	For the Three Months Ended June 30, 2024		For the Three Months Ended June 30, 2023
Geography
United States	$	2,569,844	$	2,263,829
International		272,332		603,100
Total	$	2,842,176	$	2,866,929

For the three months ended June 30, 2024, two customers accounted for sales of 46% and 12%, respectively.

For the three months ended June 30, 2023, two customers accounted for sales of 36%, and 12%, respectively.

The Company, in addition to inside sales efforts, utilizes independent sales agents to sell its products to customers. A related party independent sales agent earned $10,026 in commissions for the three months ended June 30, 2024. The sales agent earned $9,000 for sales and marketing assistance for the three ended June 30, 2024. The same related party independent sales agent earned $1,600 in commissions for the three months ended June 30, 2023. The sales agent earned $9,000 for sales and marketing assistance for the three months ended June 30, 2023.

Long-Lived Assets

The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment losses have been recognized for the three months ended June 30, 2024 and 2023.

New Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities ‘segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. We are currently evaluating this guidance to determine the impact it may have on our consolidated financial statements related disclosures.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid. The guidance will first be effective in our annual disclosures for the year ending December 31, 2026, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted. The Company is in the process of assessing the impact of ASU 2023-09 on our disclosures.

No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 3 – Accounts Receivable, net

The following table sets forth the components of accounts receivable:

	June 30, 2024			March 31, 2024
Government	$	1,636,977		$	933,249
Commercial		135,273			185,869
Less: Allowance for credit losses		(8,570	)		(8,570	)
	$	1,763,680		$	1,110,548

Note 4 – Inventories, net

Inventories consist of:

	June 30, 2024			March 31, 2024

Purchased parts	$	2,896,263		$	2,835,120
Work-in-process		2,624,754			2,912,737
Finished Goods		76,181			48,630
Less: Inventory reserve		(388,969	)		(384,843	)
	$	5,208,229		$	5,411,644

Note 5 – Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of:

	June 30, 2024		March 31, 2024

Prepaid expenses	$	185,094	$	186,231
Deferred charges		27,719		27,719
Other receivables		211		211
	$	213,024	$	214,161

Note 6 – Equipment and Leasehold Improvements

Equipment and leasehold improvements consist of the following:

	June 30, 2024			March 31, 2024
Leasehold improvements	$	127,655		$	127,655
Machinery and equipment		1,931,831			1,931,831
Automobiles		23,712			23,712
Sales equipment		590,365			590,365
Assets under finance leases		637,189			637,189
Less: Accumulated depreciation & amortization		(3,246,587	)		(3,237,557	)
	$	64,165		$	73,195

Depreciation and amortization expense related to the assets above for June 30, 2024 was $9,030 and March 31, 2024 was $45,823.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 7 – Line of Credit

The Company has a line of credit with Bank of America with open availability up to $1,000,000 as of June 30, 2024, with monthly payments of interest only. The borrowing base calculation is tied to accounts receivable collateralized by substantially all of the assets of the Company.

As of June 30, 2024, and March 31, 2024, the outstanding balances were $1,000,000 and $690,000, respectively. The interest rate on June 30, 2024, was 9.55%.

On April 1, 2024 Bank of America extended the Company line of credit with a maturity date of July 31, 2024, in addition the line of credit cash limit amount was increased from $690,000 to $1,000,000. The renewal of the line of credit is in process by Bank of America. Under the amendment, interest on any outstanding balance is payable monthly at an annual interest rate equal to the Bank’s Prime Rate plus 1.05 percentage points and no less than 3.25%. The “Prime Rate” is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Bank’s costs and desired return, general economic conditions, and other factors, and is used as a reference point for pricing loans.

Note 8 – Right of Use Assets and Operating Lease Liability

The Company leases its facility in East Rutherford, NJ with monthly payments of $21,237 until August 2025. Thereafter, monthly payments are $23,083 for the balance of the 8 year lease agreement expiring August 2029.

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company used a discount rate of 3.90% for both June 30, 2024 and March 31,2024. The weighted average remaining lease term is 5.17 years.

Right to use assets is summarized below:

	June 30, 2024			March 31, 2024
Right to use asset	$	1,830,857		$	1,830,857
Less: Accumulated amortization		(558,157	)		(506,394	)
Right to use assets, net	$	1,272,700		$	1,324,463

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancelable operating leases with terms of more than one year to the total lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2024:

Remaining payments in fiscal 2025	$	191,130
2026		267,767
2027		277,000
2028		277,000
2029		277,000
Thereafter		115,416
Total undiscounted future minimum lease payments		1,405,313
Less: Difference between undiscounted lease payments and discounted lease liabilities		(132,613	)
Present value of net minimum lease payments		1,272,700
Less current portion		(204,064	)
Operating lease liabilities – long-term	$	1,068,636

Total rent expense for the three months ended June 30, 2024 was $91,777, as compared to $102,811 for the three months ended June 30, 2023.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 9 – Stock Options Plans

The Board of Directors (the “Board”) adopted on January 18, 2017, and ratified by the shareholders at the Annual Meeting on January 18, 2017, the Company’s 2016 Stock Option Plan (the “Plan”). The Plan provides for the granting of incentive stock options, by a committee to be appointed by the Board (both the Board and the Committee are referred to herein as the “Committee”) to directors, officers, and employees (excluding directors and officers who are not employees) to purchase shares of the Common Stock of the Company, par value $0.10 per share (the “Stock”), in accordance with the terms and provisions. The 2016 Plan reserves for issuance, options to purchase up to 250,000 shares of its common stock. Options granted under the plan are exercisable up to a period of five years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant. Options are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary.

A summary of the status of the Company’s stock option plans for the fiscal year ended March 31, 2024, and year to date June 30, 2024, and changes during the year are presented below (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options at April 1, 2024		99,000		$	3.13	0.78 years	$	-
Options granted		-		$	-
Options exercised		-		$	-
Options canceled/forfeited		(66,000	)	$	3.19

Outstanding options at June 30, 2024		33,000		$	3.02	1.89 years	$	-

Vested options at June 30, 2024		16,200		$	3.03	1.8 years	$	-

Remaining options available for grant were 217,000 as of June 30, 2024. It is anticipated that additional stock options will be awarded to key employees in the second quarter of the current fiscal year.

At June 30, 2024, the unamortized compensation expense for stock options was $6,622. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 2.7 years.

For the three months ended June 30, 2024, the Company recorded stock compensation costs of $1,942 as compared to $3,269 for the three months ended June 30, 2023.

Note 10 – Income Taxes

FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes” (“ASC 740-10”) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The Company does not have any unrecognized tax benefits.

The tax effect of temporary differences, primarily net operating loss carryforwards, asset reserves and accrued liabilities, gave rise to the Company’s deferred tax asset. Deferred income taxes are recognized for the tax consequence of such temporary differences at the enacted tax rate expected to be in effect when the differences reverse. The Company had approximately $2.4 million in deferred tax assets at June 30, 2024 and approximately $2.5 million in deferred tax assets at March 31, 2024. The Company recognizes the impact of an uncertain income tax position taken on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.

The net income was $42,248 for the three months ended June 30, 2024.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 11 – Net Income (Loss) per Share

Net income (loss) per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS to common stockholders reflects the potential dilution that could occur if securities, including preferred stock and options, were converted into common stock. The dilutive effect of outstanding options is reflected in earnings per share by use of the treasury stock method. The dilutive effect of preferred stock is reflected in earnings per share by use of the if-converted method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation. For the three months ended June 30, 2024, since the Company has a net loss attributable to common shareholders, the effect of common stock equivalents is anti-dilutive, and as such, common stock equivalents have been excluded from this calculation.

	Three Months Ended			Three Months Ended
	June 30, 2024			June 30, 2023
Basic net income (loss) per share computation:
Net income	$	42,248		$	295,292
Less: Preferred dividends		(94,420	)		(80,000	)
Net income (loss) attributable to common shareholders		(52,172	)		215,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	(0.02	)	$	0.07
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	(52,172	)	$	215,292
Add: Preferred dividends		-			80,000
Diluted net income (loss) attributable to common shareholders	$	(52,172	)	$	295,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock		-			1,959,778
Total adjusted weighted-average shares		3,255,887			5,215,665
Diluted net income (loss) per share	$	(0.02	)	$	0.06

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the three months ended:

	June 30, 2024		June 30, 2023
Convertible preferred stock		2,663,109		-
Stock options		33,000		99,000
		2,696,109		99,000

Note 12 – Segment Information

In accordance with FASB ASC 280, “Disclosures about Segments of an Enterprise and related information”, the Company determined it has two reportable segments - avionics government and avionics commercial. There are no inter-segment revenues.

The Company is organized primarily on the basis of its avionics products. The avionics government segment consists primarily of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries either directly or through distributors. The avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines, directly or through commercial distributors, and to general aviation repair and maintenance shops. The Company develops and designs test equipment for the avionics industry and as such, the Company’s products and designs cross segments.

Management evaluates the performance of its segments and allocates resources to them based on gross margin. The Company’s general and administrative costs and sales and marketing expenses, and engineering costs are not segment specific. As a result, all operating expenses are not managed on a segment basis. Net interest includes expenses on debt and income earned on cash balances, both maintained at the corporate level.

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TEL-INSTRUMENT ELECTRONICS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 12 – Segment Information (continued)

The tables below present information about reportable segments within the avionics business for the three months ended June 30, 2024, and 2023:

Three Months Ended June 30, 2024	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,374,860	$	467,316	$	2,842,176	$	-		$	2,842,176
Cost of sales		1,847,674		248,600		2,096,274		-			2,096,274
Gross margin		527,186		218,716		745,902		-			745,902

Total expenses						315,933		376,491			692,424
Income (loss) before income taxes					$	429,969	$	(376,491	)	$	53,478

Three Months Ended June 30, 2023	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	1,977,812	$	889,117	$	2,866,929	$	-		$	2,866,929
Cost of sales		986,038		586,342		1,572,380		-			1,572,380
Gross margin		991,774		302,775		1,294,549		-			1,294,549

Total expenses						479,347		439,363			918,710
Income (loss) before income taxes					$	815,202	$	(439,363	)	$	375,839

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report on Form 10-Q and other reports filed by the Company from time to time with the SEC (collectively the “Filings”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the Filings, the words “may,” “will,” “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management are intended to identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and we caution you that these statements are not guarantees of future performance or events and are subject to risks, assumptions, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

The key factors that are not within the Company’s control and that may have a direct bearing on operating results include, but are not limited to, managements’ ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry, as well as the risk factors identified in the Company’s filings.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our unaudited condensed consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this report.

For purposes of this Quarterly Report, “Tel-Instrument,” “we,” “our,” “us,” or similar references refers to Tel-Instrument Electronics, Inc, unless the context requires otherwise.

Overview

Operations continued to be affected by major delays in component shipments from our vendors further delaying TIC’s ability to fulfill our customer orders which have hampered our ability to ship units under normal lead times. The supply chain situation is gradually improving, and TIC has received sufficient parts to resume normal production operations for the current fiscal year with the one major exception being parts for the CRAFT test sets. The Company was impacted by late deliveries of several components which negatively impacted production revenues in the first quarter. Although the Company has been negatively impacted by this situation, there was an increase in our receipt of new orders with an open order backlog of approximately $7 million on June 30, 2024.

The Company reported net sales of $2,842,176 for the three months ended June 30, 2024. This compared to net sales of $2,866,929 for the same three month period in the prior fiscal year.

Gross margin for the current quarter was $745,902 (26.2%) which is approximately 19 percentage points lower than the three months ended June 30, 2023 of $1,294,549 (45.2%). This is primarily attributable to the Navy Craft ECP margin true up as the program is nearing completion and engineering labor hours have exceeded our projections. Approximately $730,000 of Navy funding remains on this contract which should be completed in calendar year 2024. Once the development work is completed, production revenues of approximately $5 million per year are expected over a four-year period.

Net income was $42,248 for the three months ended June 30, 2024, as compared to net income of $295,292 in the prior year three months ended June 30, 2023.

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Overview (continued)

The Company continues to pursue opportunities in the domestic and international market for our Mode 5 test sets. We continue to receive substantial orders from the U.S. Government and Northrup Grumman for our AN/USM-708 (“CRAFT”) Mode 5 test sets. We have completed the funded software upgrade to the TS-4530A product in the amount of $0.9 million and are in the process of securing AIMS certification. It is also possible that the USAF will elect to upgrade its TS-4530A units as well.

TIC has spent several years and millions of dollars in developing our ground-breaking SDR/OMNI and SDR-OMNI/MIL product which will address both the commercial market for transponder and navigation test sets as well as competing in the military secure comm test set market. The SDR/OMNI product line supports a wide frequency range to accommodate new commercial and military waveforms in an industry leading 4.5-pound package. This is approximately half the weight of competitive test sets. It is also the only new multi-purpose test set which meets the Class 1 military environmental specifications. It utilizes the latest touch screen technology and has the capability to replace all TIC commercial test sets and military flight-line test sets with one handheld product. The Company started initial production deliveries in December 2022. The Company recently received an order from Airbus for SDR-OMNI test sets to replace the obsolete test sets used in their world-wide manufacturing. This is a significant win as Airbus evaluated competitive products and selected the SDR-OMNI due to its faster speed and ease of use. In August 2024, the Company received a follow-on order from Airbus with additional orders expected. We have added a direct sales representative for the SDR-OMNI and are instituting a customer demo program which should allow us to significantly extend our sales reach for smaller customers. Significantly, every commercial customer that evaluates our test sets versus the competition has selected the SDR-OMNI.

TIC recently released the SDR-OMNI/MIL test set which adds SIF and TACAN test capability. The SDR-OMNI/MIL has received positive reviews from the U.S. DOD and international military customers. We have received purchase orders from Italy, South Korea and from U.S. customers and have shipped our first SDR-OMNI/MIL test set in July 2024. This is designed to replace thousands of obsolete military test sets currently in use. This is expected to be a significant driver of both revenues and future profitability. There are several companies competing in this market space, but we believe that our SDR/OMNI design will be extremely competitive.

TIC is also exploring new avenues to broaden its product portfolio including designing a high frequency test set for the Lockheed Martin F-35 program. This contract takes advantage of our expertise in RF technology. This is a completely new market for TIC as it involves high frequency communication signals. TIC is currently negotiating a sizeable production contract with Northrup Grumman for the new MADL test set.

Results of Operations

Sales

Net sales were $2,842,176 for the three months ended June 30, 2024, as compared to $2,866,929 for the same three month period in the prior fiscal year.

Gross Margin

Operating Expenses

Selling, general and administrative expenses decreased $42,518 (7%) to $542,340 for the three months ended June 30, 2024, as compared to $584,858 for the three months ended June 30, 2023. The three month decrease is primarily a result of profit sharing accruals in the prior year three month period that was later reversed and travel and trade show participation timing.

Engineering, research, and development expenses decreased $157,803 (55%) to $131,638 for the three months ended June 30, 2024 as compared to $289,441 for the three months ended June 30, 2023. Total engineering expense decreased primarily as a result of the Navy ECP Contract non-recurring engineering expenditures (“NRE”) which reduced engineering costs in the current quarter by $244,769 with offsets for outside consultants and salary increases.

Income from Operations

As a result of the above, the Company recorded income from operations of $71,924 for the three months ended June 30, 2024, as compared to an income from operations of $420,250 for the three months ended June 30, 2023.

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Other Expense, Net

Other net expense for the three months ended June 30, 2024 was $18,446 consisting primarily of line of credit interest, as compared to the three months ended June 30, 2023, total other net expense was $44,411, which was primarily a result of $70,245 accrued interest related to the legal judgement that was settled in the prior fiscal year.

Income before Income Taxes

The Company recorded income before taxes of $53,478 and $375,839 for the three months ended June 30, 2024 and June 30, 2023, respectively.

Income Tax Expense

For the three months ended June 30, 2024 and the three months ended June 30, 2023, the Company recorded income tax expense of $11,230 and $80,547, respectively.

Net Income

The Company recorded net income of $42,248 and $295,292 for the three months ended June 30, 2024 and June 30, 2023, respectively.

Liquidity and Capital Resources

At June 30, 2024, the Company had net working capital of $4,303,539 as compared to working capital of $4,249,777 at March 31, 2024. This included $149,550 of cash on hand and $1,763,680 million of accounts receivable.

The Company’s principal sources, and uses of funds were as follows:

Cash (used in) provided by operating activities. For the three months ended June 30, 2024, $372,963 in cash from operations was used, as compared to the three months ended June 30, 2023, the Company provided $706,272. This decrease in cash provided by (used in) for operations is mostly attributed to an increase in trade receivables offset by a decrease in inventories.

Cash used in investing activities. For the three months ended June 30, 2024, the Company used $0 for purchases of equipment as compared to the three months ended June 30, 2023, the Company used $13,983.

Cash provided by financing activities. For the three months ended June 30, 2024, the Company provided $390,500 from funds received from the Bank of America line of credit ($310,000) and short term related party loans ($80,500) as compared to $0 funds provided for in the three months ended June 30, 2023.

The Bank of America line of credit is in the process of being renewed and the current line of credit matured July 31, 2024. Bank of America has extended the line of credit during their renewal process. As of June 30, 2024, the $1,000,000 line of credit was fully used. The Company repaid $75,000 of this line of credit in July 2024.

Moving forward, we believe that our expected cash flows from increased operations and increased accounts receivable payments will be sufficient to operate in the normal course of business for next 12 months from the issuance date of these unaudited condensed financial statements.

Currently, the Company has no material future capital expenditure requirements.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on For 10-K for the fiscal year ended March 31, 2024, filed with the SEC on June 28, 2024 (the “Annual Report”).

Off-Balance Sheet Arrangements

As of June 30, 2024, the Company had no off-balance sheet arrangements.

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Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with U.S. generally accepted accounting principles, which require our management to make estimates that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. There are items within our financial statements that require estimation but are not deemed critical, as defined above.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We are a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this Item. We do not hold any derivative instruments and do not engage in any hedging activities.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(e) under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on management’s evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are not designed at a reasonable assurance level and are not effective in providing reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Management’s report on internal control over financial reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for our company. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act, as a process designed by, or under the supervision of, a company’s principal executive and principal financial officer and effected by the our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

	1.	pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

	2.	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made in accordance with authorizations of management and directors of the company; and

	3.	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible enhancements to controls and procedures.

Management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our internal control over financial reporting as of March 31, 2024, based on the criteria in a framework developed by the Company’s management pursuant to and in compliance with the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (“COSO”) of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, walkthroughs of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management has concluded that our internal control over financial reporting was not effective as of June 30, 2024, because management identified that there was a lack of adherence to formal policies and procedures with inventory controls.

Management has been implementing and continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. The remediation actions include:

●	Management personnel, including our Chief Accounting Officer, are overseeing the financial reporting process and implementation of enhanced controls and governance;
●	Formation of an internal task team to enhance weaknesses over inventory movement, valuation, and internal controls.

Management is committed to maintaining a strong internal controls environment and implementing measures designed to help ensure that control deficiencies contributing to the material weakness are remediated as soon as possible. We have documented key procedures and controls using a risk-based approach and have, therefore, made progress toward remediation. We continue to implement our remediation plan, which includes continued engagement of an external financial consulting firm to enhance financial reporting and operations as well as design and implementation of controls. We will consider the material weakness remediated after the applicable controls operate for a sufficient period of time, and Management has concluded, through testing, that the controls are operating effectively.

(b) Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting identified in connection with the evaluation referred to above that occurred during our last completed fiscal quarter that has materially negatively affected, or is reasonably likely to materially affect, our internal control over financial reporting. As discussed above, management has remediation plans that will be implemented during fiscal year 2025.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material proceedings to which any director or officer, or any associate of any such director or officer, is a party that is adverse to our Company or any of our subsidiaries or has a material interest adverse to our Company or any of our subsidiaries. No director or executive officer has been a director or executive officer of any business which has filed a bankruptcy petition or had a bankruptcy petition filed against it during the past ten years. No director or executive officer has been convicted of a criminal offense or is the subject of a pending criminal proceeding during the past ten years. No director or executive officer has been the subject of any order, judgment or decree of any court permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities, or banking activities during the past ten years. No director or officer has been found by a court to have violated a federal or state securities or commodities law during the past ten years.

Item 1A. Risk Factors.

Not applicable because we are a smaller reporting company. Notwithstanding, we believe there are no changes that constitute material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the SEC on June 28, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of the Company’s equity securities during the quarter ended June 30, 2024.

Item 3. Defaults upon Senior Securities.

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company during the quarter ending June 30, 2024.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

There is no other information required to be disclosed under this item which was not previously disclosed.

Table of Contents

Item 6. Exhibits.

Exhibit No.		Description

31.1		Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*

31.2		Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*

32.1		Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

32.2		Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

101.INS		Inline XBRL Instance Document*

101.SCH		Inline XBRL Taxonomy Extension Schema Document*

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document*

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document*

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document*

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

* Filed herewith

Table of Contents

SIGNATURES

Pursuant to the requirements 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.

	TEL-INSTRUMENT ELECTRONICS CORP.


Date: August 14, 2024	By:	/s/ Jeffrey C. O’Hara
	Name:	Jeffrey C. O’Hara
	Title:	Chief Executive Officer (Principal Executive Officer)

Date: August 14, 2024	By:	/s/ Pauline Romeo
	Name:	Pauline Romeo
	Title:	Chief Accounting Officer (Principal Financial and Accounting Officer)

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Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey C. O’Hara, certify that:

1.	I have reviewed this Form 10-Q of Tel-Instrument Electronics Corp.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;

Along with the Principal Financial Officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

By:

/s/ Jeffrey C. O’Hara

Jeffrey C. O’Hara

Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Pauline Romeo, certify that:

1.	I have reviewed this Form 10-Q of Tel-Instrument Electronics Corp.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;

Along with the Principal Executive Officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

5.	I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

By:

/s/ Pauline Romeo

Pauline Romeo

Chief Accounting Officer

(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Tel-Instrument Electronics Corp. (the “Company”), on Form 10-Q for the quarter ended June 30, 2024, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Jeffrey C. O’Hara, Principal Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	Such Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)	The information contained in such Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2024	By:	/s/ Jeffrey C. O’Hara
		Jeffrey C. O’Hara
		Chief Executive Officer (Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Tel-Instrument Electronics Corp. (the “Company”), on Form 10-Q for the quarter ended June 30, 2024, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Pauline Romeo, Chief Accounting Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	Such Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)	The information contained in such Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2024

By:

/s/ Pauline Romeo

Pauline Romeo

Chief Accounting Officer

(Principal Financial and Accounting Officer)

Cover - shares	3 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 13, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Information [Line Items]
Entity Registrant Name	TEL-INSTRUMENT ELECTRONICS CORP.
Entity Central Index Key	0000096885
Entity File Number	001-31990
Entity Tax Identification Number	22-1441806
Entity Incorporation, State or Country Code	NJ
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	One Branca Road
Entity Address, City or Town	East Rutherford
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07073
Entity Phone Fax Numbers [Line Items]
City Area Code	201
Local Phone Number	933-1600
Entity Listings [Line Items]
Title of 12(b) Security	N/A
No Trading Symbol Flag	true
Entity Common Stock, Shares Outstanding		3,255,887

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Current assets:
Cash	$ 149,550	$ 132,013
Accounts receivable, net	1,763,680	1,110,548
Inventories, net	5,208,229	5,411,644
Prepaid expenses and other current assets	213,024	214,161
Total current assets	7,334,483	6,868,366
Equipment and leasehold improvements, net	64,165	73,195
Operating lease right-of-use assets	1,272,700	1,324,463
Deferred tax asset, net	2,439,427	2,450,657
Other long-term assets	35,109	35,109
Total assets	11,145,884	10,751,790
Current liabilities:
Accounts payable	1,242,906	1,276,935
Accrued expenses ‐vacation pay, payroll and payroll withholdings	265,948	248,713
Deferred revenues - current portion	57,778	72,803
Operating lease liabilities – current portion	204,064	210,111
Accrued expenses - other	179,748	120,027
Line of credit	1,000,000	690,000
Promissory notes – related parties	80,500	0
Total current liabilities	3,030,944	2,618,589
Operating lease liabilities – long-term	1,068,636	1,114,352
Other long term liabilities	43,524	45,501
Deferred revenues – long-term	104,963	119,721
Total liabilities	4,248,067	3,898,163
Commitments and contingencies	0	0
Stockholders’ equity:
Common stock, 7,000,000 shares authorized, par value $0.10 per share, 3,255,887 and 3,255,887 shares issued and outstanding, respectively	325,586	325,586
Additional paid-in capital	6,286,607	6,379,085
Accumulated deficit	(5,964,710)	(6,006,958)
Total stockholders’ equity	6,897,817	6,853,627
Total liabilities and stockholders’ equity	11,145,884	10,751,790
Series A Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	4,175,998	4,115,998
Series B Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	1,732,701	1,704,701
Series C Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	$ 341,635	$ 335,215

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	3 Months Ended	12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Common stock, par value (in Dollars per share)	$ 0.1	$ 0.1
Common stock, shares issued	3,255,887	3,255,887
Common stock, shares outstanding	3,255,887	3,255,887
Common stock, shares authorized	7,000,000	7,000,000
Series A Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.1	$ 0.1
Preferred stock, shares issued	500,000	500,000
Preferred stock, shares outstanding	500,000	500,000
Preferred stock, Cumulative Series Convertible Preferred	8.00%	8.00%
Preferred stock, shares authorized	500,000	500,000
Series B Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.1	$ 0.1
Preferred stock, shares issued	233,334	233,334
Preferred stock, shares outstanding	233,334	233,334
Preferred stock, Cumulative Series Convertible Preferred	8.00%	8.00%
Preferred stock, shares authorized	320,000	320,000
Series C Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.1	$ 0.1
Preferred stock, shares issued	53,500	53,500
Preferred stock, shares outstanding	53,500	53,500
Preferred stock, Cumulative Series Convertible Preferred	8.00%	8.00%
Preferred stock, shares authorized	166,667	166,667

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net sales	$ 2,842,176	$ 2,866,929
Cost of sales	2,096,274	1,572,380
Gross margin	745,902	1,294,549
Operating expenses:
Selling, general and administrative	542,340	584,858
Engineering, research, and development	131,638	289,441
Total operating expenses	673,978	874,299
Income from operations	71,924	420,250
Other (expense) income:
Interest income	11	39,289
Interest expense – other	(18,457)	(13,455)
Interest expense – judgement	0	(70,245)
Total other net expense	(18,446)	(44,411)
Income before income taxes	53,478	375,839
Income tax expense	11,230	80,547
Net income	42,248	295,292
Preferred dividends	(94,420)	(80,000)
Net income (loss) attributable to common shareholders	$ (52,172)	$ 215,292
Basic net (loss) income per common share (in Dollars per share)	$ (0.02)	$ 0.07
Diluted net (loss) income per common share (in Dollars per share)	$ (0.02)	$ 0.06
Weighted average shares outstanding:
Basic (in Shares)	3,255,887	3,255,887
Diluted (in Shares)	3,255,887	5,215,665

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Preferred Stock [Member] Series A Preferred Stock [Member]	Preferred Stock [Member] Series B Preferred Stock [Member]	Preferred Stock [Member] Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balances at at Mar. 31, 2023	$ 3,875,998	$ 1,207,367		$ 325,586	$ 6,721,535	$ (6,348,849)	$ 5,781,637
Balances at (in Shares) at Mar. 31, 2023	500,000	166,667		3,255,887
8% Dividends on Preferred Stock	$ 60,000	$ 20,000			(80,000)		80,000
Stock-based compensation					3,269		3,269
Net income						295,292	295,292
Balances at at Jun. 30, 2023	$ 3,935,998	$ 1,227,367		$ 325,586	6,644,804	(6,053,557)	6,080,198
Balances at (in Shares) at Jun. 30, 2023	500,000	166,667		3,255,887
Balances at at Mar. 31, 2024	$ 4,115,998	$ 1,704,701	$ 335,215	$ 325,586	6,379,085	(6,006,958)	6,853,627
Balances at (in Shares) at Mar. 31, 2024	500,000	233,334	53,500	3,255,887
8% Dividends on Preferred Stock	$ 60,000	$ 28,000	$ 6,420		(94,420)		94,420
Stock-based compensation					1,942		1,942
Net income						42,248	42,248
Balances at at Jun. 30, 2024	$ 4,175,998	$ 1,732,701	$ 341,635	$ 325,586	$ 6,286,607	$ (5,964,710)	$ 6,897,817
Balances at (in Shares) at Jun. 30, 2024	500,000	233,334	53,500	3,255,887

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parentheticals)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Additional Paid-in Capital [Member]
Dividends on Preferred Stock	8.00%	8.00%

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Cash flows from operating activities:
Net income	$ 42,248	$ 295,292
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Deferred income taxes	11,230	80,547
Depreciation and amortization	9,030	12,274	$ 45,823
Amortization of right of use assets	51,763	49,786
Provision for inventory obsolescence	4,127	1,004
Non-cash stock-based compensation	1,942	3,269
Changes in assets and liabilities:
Increase in accounts receivable	(653,132)	(336,663)
Decrease (increase) in inventories	199,288	(21,600)
Decrease in prepaid expenses and other current assets	1,137	573,177
Decrease in accounts payable	(34,029)	(9,360)
Increase in accrued payroll, vacation pay and payroll taxes	17,235	64,416
Decrease in deferred revenues	(29,783)	(32,501)
Decrease in operating lease liabilities	(51,763)	(49,786)
Decrease in other long term liabilities	(1,977)	(1,978)
Increase in accrued expenses - other	59,721	8,150
Increase in accrued legal damages	0	70,245
Net cash (used) provided by operating activities	(372,963)	706,272
Cash flows from investing activities:
Purchases of equipment	0	(13,983)
Net cash used in investing activities	0	(13,983)
Cash flows from financing activities:
Draw from line of credit	310,000	0
Proceeds from promissory notes-related parties	80,500	0
Net cash provided by financing activities	390,500	0
Net increase in cash and restricted cash	17,537	692,289
	132,013	5,850,481	5,850,481
Supplemental cash flow information:
Taxes paid	0	0
Interest paid	17,869	13,455
	149,550	6,542,770	132,013
Beginning of period
Cash	132,013	3,839,398	3,839,398
Restricted cash	0	2,011,083	2,011,083
End of period
Cash	149,550	4,531,637	132,013
Restricted cash	$ 0	$ 2,011,133	$ 0

Business, Organization and Liquidity

3 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Accounting [Text Block]

Note 1 – Business, Organization and Liquidity

Business and Organization

The Company is publicly traded and was quoted on the Over-the-Counter Market Place (“OTCQB”) under the symbol “TIKK.”

Liquidity

The Company had a $7 million sales backlog on June 30, 2024.

Currently, the Company has no material future capital expenditure requirements.

Summary of Significant Accounting Policies

3 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Revenue Recognition

Nature of goods and services

Test Units/Sets

Replacement Parts

Extended Warranties

The following table provides a summary of the changes in deferred revenues for the three months ended June 30, 2024:

Deferred revenues at April 1, 2024	$	179,422
Revenue recognized for the three months ended June 30, 2024		(16,681	)
Deferred revenues at June 30, 2024	$	162,741

Repair and Calibration Services

Other

Disaggregation of revenue

In the following tables, revenue is disaggregated by revenue category.

	For the Three Months Ended June 30, 2024
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	186,702	$	2,374,860
	$	186,702	$	2,374,860

	For the Three Months Ended June 30, 2023
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	408,959	$	1,977,812
	$	408,959	$	1,977,812

In the following table, revenue is disaggregated by geography.

	For the Three Months Ended June 30, 2024		For the Three Months Ended June 30, 2023
Geography
United States	$	2,569,844	$	2,263,829
International		272,332		603,100
Total	$	2,842,176	$	2,866,929

For the three months ended June 30, 2024, two customers accounted for sales of 46% and 12%, respectively.

For the three months ended June 30, 2023, two customers accounted for sales of 36%, and 12%, respectively.

Long-Lived Assets

New Accounting Pronouncements

No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements.

Accounts Receivable, net

3 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 3 – Accounts Receivable, net

The following table sets forth the components of accounts receivable:

	June 30, 2024			March 31, 2024
Government	$	1,636,977		$	933,249
Commercial		135,273			185,869
Less: Allowance for credit losses		(8,570	)		(8,570	)
	$	1,763,680		$	1,110,548

Inventories, net

3 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 4 – Inventories, net

Inventories consist of:

	June 30, 2024			March 31, 2024

Purchased parts	$	2,896,263		$	2,835,120
Work-in-process		2,624,754			2,912,737
Finished Goods		76,181			48,630
Less: Inventory reserve		(388,969	)		(384,843	)
	$	5,208,229		$	5,411,644

Prepaid expenses and other current assets

3 Months Ended

Jun. 30, 2024

Disclosure Text Block Supplement [Abstract]

Other Current Assets [Text Block]

Note 5 – Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of:

	June 30, 2024		March 31, 2024

Prepaid expenses	$	185,094	$	186,231
Deferred charges		27,719		27,719
Other receivables		211		211
	$	213,024	$	214,161

Equipment and Leasehold Improvements

3 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6 – Equipment and Leasehold Improvements

Equipment and leasehold improvements consist of the following:

	June 30, 2024			March 31, 2024
Leasehold improvements	$	127,655		$	127,655
Machinery and equipment		1,931,831			1,931,831
Automobiles		23,712			23,712
Sales equipment		590,365			590,365
Assets under finance leases		637,189			637,189
Less: Accumulated depreciation & amortization		(3,246,587	)		(3,237,557	)
	$	64,165		$	73,195

Depreciation and amortization expense related to the assets above for June 30, 2024 was $9,030 and March 31, 2024 was $45,823.

Line of Credit

3 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 7 – Line of Credit

As of June 30, 2024, and March 31, 2024, the outstanding balances were $1,000,000 and $690,000, respectively. The interest rate on June 30, 2024, was 9.55%.

Right of Use Assets and Operating Lease Liability

3 Months Ended

Jun. 30, 2024

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

Note 8 – Right of Use Assets and Operating Lease Liability

Right to use assets is summarized below:

	June 30, 2024			March 31, 2024
Right to use asset	$	1,830,857		$	1,830,857
Less: Accumulated amortization		(558,157	)		(506,394	)
Right to use assets, net	$	1,272,700		$	1,324,463

Remaining payments in fiscal 2025	$	191,130
2026		267,767
2027		277,000
2028		277,000
2029		277,000
Thereafter		115,416
Total undiscounted future minimum lease payments		1,405,313
Less: Difference between undiscounted lease payments and discounted lease liabilities		(132,613	)
Present value of net minimum lease payments		1,272,700
Less current portion		(204,064	)
Operating lease liabilities – long-term	$	1,068,636

Total rent expense for the three months ended June 30, 2024 was $91,777, as compared to $102,811 for the three months ended June 30, 2023.

Stock Options Plans

3 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

Note 9 – Stock Options Plans

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options at April 1, 2024		99,000		$	3.13	0.78 years	$	-
Options granted		-		$	-
Options exercised		-		$	-
Options canceled/forfeited		(66,000	)	$	3.19

Outstanding options at June 30, 2024		33,000		$	3.02	1.89 years	$	-

Vested options at June 30, 2024		16,200		$	3.03	1.8 years	$	-

For the three months ended June 30, 2024, the Company recorded stock compensation costs of $1,942 as compared to $3,269 for the three months ended June 30, 2023.

Income Taxes

3 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10 – Income Taxes

The net income was $42,248 for the three months ended June 30, 2024.

Net Income (Loss) per Share

3 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 11 – Net Income (Loss) per Share

	Three Months Ended			Three Months Ended
	June 30, 2024			June 30, 2023
Basic net income (loss) per share computation:
Net income	$	42,248		$	295,292
Less: Preferred dividends		(94,420	)		(80,000	)
Net income (loss) attributable to common shareholders		(52,172	)		215,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	(0.02	)	$	0.07
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	(52,172	)	$	215,292
Add: Preferred dividends		-			80,000
Diluted net income (loss) attributable to common shareholders	$	(52,172	)	$	295,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock		-			1,959,778
Total adjusted weighted-average shares		3,255,887			5,215,665
Diluted net income (loss) per share	$	(0.02	)	$	0.06

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the three months ended:

	June 30, 2024		June 30, 2023
Convertible preferred stock		2,663,109		-
Stock options		33,000		99,000
		2,696,109		99,000

Segment Information

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 12 – Segment Information

The tables below present information about reportable segments within the avionics business for the three months ended June 30, 2024, and 2023:

Three Months Ended June 30, 2024	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,374,860	$	467,316	$	2,842,176	$	-		$	2,842,176
Cost of sales		1,847,674		248,600		2,096,274		-			2,096,274
Gross margin		527,186		218,716		745,902		-			745,902

Total expenses						315,933		376,491			692,424
Income (loss) before income taxes					$	429,969	$	(376,491	)	$	53,478

Three Months Ended June 30, 2023	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	1,977,812	$	889,117	$	2,866,929	$	-		$	2,866,929
Cost of sales		986,038		586,342		1,572,380		-			1,572,380
Gross margin		991,774		302,775		1,294,549		-			1,294,549

Total expenses						479,347		439,363			918,710
Income (loss) before income taxes					$	815,202	$	(439,363	)	$	375,839

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 42,248	$ 295,292

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy (Policies)

3 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Revenue [Policy Text Block]

Revenue Recognition

Nature of goods and services

Test Units/Sets

Replacement Parts

Extended Warranties

The following table provides a summary of the changes in deferred revenues for the three months ended June 30, 2024:

Deferred revenues at April 1, 2024	$	179,422
Revenue recognized for the three months ended June 30, 2024		(16,681	)
Deferred revenues at June 30, 2024	$	162,741

Repair and Calibration Services

Other

Disaggregation of revenue

In the following tables, revenue is disaggregated by revenue category.

	For the Three Months Ended June 30, 2024
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	186,702	$	2,374,860
	$	186,702	$	2,374,860

	For the Three Months Ended June 30, 2023
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	408,959	$	1,977,812
	$	408,959	$	1,977,812

In the following table, revenue is disaggregated by geography.

	For the Three Months Ended June 30, 2024		For the Three Months Ended June 30, 2023
Geography
United States	$	2,569,844	$	2,263,829
International		272,332		603,100
Total	$	2,842,176	$	2,866,929

For the three months ended June 30, 2024, two customers accounted for sales of 46% and 12%, respectively.

For the three months ended June 30, 2023, two customers accounted for sales of 36%, and 12%, respectively.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

The following table provides a summary of the changes in deferred revenues for the three months ended June 30, 2024:

Deferred revenues at April 1, 2024	$	179,422
Revenue recognized for the three months ended June 30, 2024		(16,681	)
Deferred revenues at June 30, 2024	$	162,741

Disaggregation of Revenue [Table Text Block]

In the following tables, revenue is disaggregated by revenue category.

	For the Three Months Ended June 30, 2024
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	186,702	$	2,374,860
	$	186,702	$	2,374,860

	For the Three Months Ended June 30, 2023
	Commercial		Government
Sales Distribution
Test Units & Engineering	$	408,959	$	1,977,812
	$	408,959	$	1,977,812

Revenue from External Customers by Geographic Areas [Table Text Block]

In the following table, revenue is disaggregated by geography.

	For the Three Months Ended June 30, 2024		For the Three Months Ended June 30, 2023
Geography
United States	$	2,569,844	$	2,263,829
International		272,332		603,100
Total	$	2,842,176	$	2,866,929

Accounts Receivable, net (Tables)

3 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the components of accounts receivable:

	June 30, 2024			March 31, 2024
Government	$	1,636,977		$	933,249
Commercial		135,273			185,869
Less: Allowance for credit losses		(8,570	)		(8,570	)
	$	1,763,680		$	1,110,548

Inventories, net (Tables)

3 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of:

	June 30, 2024			March 31, 2024

Purchased parts	$	2,896,263		$	2,835,120
Work-in-process		2,624,754			2,912,737
Finished Goods		76,181			48,630
Less: Inventory reserve		(388,969	)		(384,843	)
	$	5,208,229		$	5,411,644

Prepaid expenses and other current assets (Tables)

3 Months Ended

Jun. 30, 2024

Disclosure Text Block Supplement [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

Prepaid expenses and other current assets consist of:

	June 30, 2024		March 31, 2024

Prepaid expenses	$	185,094	$	186,231
Deferred charges		27,719		27,719
Other receivables		211		211
	$	213,024	$	214,161

Equipment and Leasehold Improvements (Tables)

3 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Equipment and leasehold improvements consist of the following:

	June 30, 2024			March 31, 2024
Leasehold improvements	$	127,655		$	127,655
Machinery and equipment		1,931,831			1,931,831
Automobiles		23,712			23,712
Sales equipment		590,365			590,365
Assets under finance leases		637,189			637,189
Less: Accumulated depreciation & amortization		(3,246,587	)		(3,237,557	)
	$	64,165		$	73,195

Right of Use Assets and Operating Lease Liability (Tables)

3 Months Ended

Jun. 30, 2024

Disclosure Text Block [Abstract]

Lease, Cost [Table Text Block]

Right to use assets is summarized below:

	June 30, 2024			March 31, 2024
Right to use asset	$	1,830,857		$	1,830,857
Less: Accumulated amortization		(558,157	)		(506,394	)
Right to use assets, net	$	1,272,700		$	1,324,463

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Remaining payments in fiscal 2025	$	191,130
2026		267,767
2027		277,000
2028		277,000
2029		277,000
Thereafter		115,416
Total undiscounted future minimum lease payments		1,405,313
Less: Difference between undiscounted lease payments and discounted lease liabilities		(132,613	)
Present value of net minimum lease payments		1,272,700
Less current portion		(204,064	)
Operating lease liabilities – long-term	$	1,068,636

Stock Options Plans (Tables)

3 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options at April 1, 2024		99,000		$	3.13	0.78 years	$	-
Options granted		-		$	-
Options exercised		-		$	-
Options canceled/forfeited		(66,000	)	$	3.19

Outstanding options at June 30, 2024		33,000		$	3.02	1.89 years	$	-

Vested options at June 30, 2024		16,200		$	3.03	1.8 years	$	-

Net Income (Loss) per Share (Tables)

3 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended			Three Months Ended
	June 30, 2024			June 30, 2023
Basic net income (loss) per share computation:
Net income	$	42,248		$	295,292
Less: Preferred dividends		(94,420	)		(80,000	)
Net income (loss) attributable to common shareholders		(52,172	)		215,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	(0.02	)	$	0.07
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	(52,172	)	$	215,292
Add: Preferred dividends		-			80,000
Diluted net income (loss) attributable to common shareholders	$	(52,172	)	$	295,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock		-			1,959,778
Total adjusted weighted-average shares		3,255,887			5,215,665
Diluted net income (loss) per share	$	(0.02	)	$	0.06

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the three months ended:

	June 30, 2024		June 30, 2023
Convertible preferred stock		2,663,109		-
Stock options		33,000		99,000
		2,696,109		99,000

Segment Information (Tables)

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The tables below present information about reportable segments within the avionics business for the three months ended June 30, 2024, and 2023:

Three Months Ended June 30, 2024	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	2,374,860	$	467,316	$	2,842,176	$	-		$	2,842,176
Cost of sales		1,847,674		248,600		2,096,274		-			2,096,274
Gross margin		527,186		218,716		745,902		-			745,902

Total expenses						315,933		376,491			692,424
Income (loss) before income taxes					$	429,969	$	(376,491	)	$	53,478

Three Months Ended June 30, 2023	Avionics Government		Avionics Commercial		Avionics Total		Corporate Items			Total
Net sales	$	1,977,812	$	889,117	$	2,866,929	$	-		$	2,866,929
Cost of sales		986,038		586,342		1,572,380		-			1,572,380
Gross margin		991,774		302,775		1,294,549		-			1,294,549

Total expenses						479,347		439,363			918,710
Income (loss) before income taxes					$	815,202	$	(439,363	)	$	375,839

Business, Organization and Liquidity (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 31, 2024	Jun. 30, 2024	Aug. 13, 2024	Apr. 01, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Business, Organization and Liquidity (Details) [Line Items]
Working Capital		$ 4,303,539			$ 4,249,777
Cash and Cash Equivalents, at Carrying Value		149,550			132,013	$ 4,531,637	$ 3,839,398
Accounts Receivable, after Allowance for Credit Loss		1,800,000
Backlog		7,000,000
Long-Term Line of Credit		1,000,000			690,000
Repayments of Lines of Credit	$ 75,000
Chief Executive Officer [Member]
Business, Organization and Liquidity (Details) [Line Items]
Proceeds from Short-Term Debt	40,000	$ 105,500
Repayments of Short-Term Debt	$ 25,000
Short-Term Debt			$ 120,500
Line of Credit [Member]
Business, Organization and Liquidity (Details) [Line Items]
Long-Term Line of Credit				$ 1,000,000	$ 690,000

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Summary of Significant Accounting Policies (Details) [Line Items]
Extended Product Warranty Description	The extended warranties sold by the Company provide a level of assurance beyond the coverage for defects that existed at the time of a sale or against certain types of covered damage with coverage terms ranging from 2 to 7 years.
Extended Product Warranty Accrual	$ 162,741		$ 179,422
Recognition of Deferred Revenue	16,681	$ 34,006
Revenues	2,842,176	2,866,929
Payments for Commissions	10,026	1,600
Repairs and Calibration [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues	221,581	342,051
Replacement Parts [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues	41,846	97,297
Extended Warranty [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues	16,681	34,006
Other Revenue [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Revenues	506	6,804
Sales and Marketing Assistance [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Payments for Commissions	$ 9,000	$ 9,000
Customer Concentration Risk [Member] \| Customer One [Member] \| Revenue Benchmark [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Concentration Risk, Percentage	46.00%	36.00%
Customer Concentration Risk [Member] \| Customer Two [Member] \| Revenue Benchmark [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Concentration Risk, Percentage	12.00%	12.00%

Summary of Significant Accounting Policies (Details) - Deferred Revenue, by Arrangement, Disclosure	3 Months Ended
	Jun. 30, 2024 USD ($)
Deferred Revenue By Arrangement Disclosure Abstract
Deferred revenues related to extended warrants	$ 179,422
Revenue recognized	(16,681)
Deferred revenues related to extended warrants	$ 162,741

Summary of Significant Accounting Policies (Details) - Disaggregation of Revenue - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Commercial Customers [Member]
Sales Distribution
Revenues	$ 186,702	$ 408,959
Commercial Customers [Member] \| Test Units & Engineering [Member]
Sales Distribution
Revenues	186,702	408,959
U.S. Government [Member]
Sales Distribution
Revenues	2,374,860	1,977,812
U.S. Government [Member] \| Test Units & Engineering [Member]
Sales Distribution
Revenues	$ 2,374,860	$ 1,977,812

Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items]
Revenues	$ 2,842,176	$ 2,866,929
UNITED STATES
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items]
Revenues	2,569,844	2,263,829
INTERNATIONAL
Summary of Significant Accounting Policies (Details) - Revenue from External Customers by Geographic Areas [Line Items]
Revenues	$ 272,332	$ 603,100

Accounts Receivable, net (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less: Allowance for credit loss	$ (8,570)	$ (8,570)
Total	1,763,680	1,110,548
Government Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable	1,636,977	933,249
Commercial Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable	$ 135,273	$ 185,869

Inventories, net (Details) - Schedule of Inventory, Current - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Schedule Of Inventory Current Abstract
Purchased parts	$ 2,896,263	$ 2,835,120
Work-in-process	2,624,754	2,912,737
Finished Goods	76,181	48,630
Less: Allowance for obsolete inventory	(388,969)	(384,843)
Inventory, net	$ 5,208,229	$ 5,411,644

Prepaid expenses and other current assets (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Deferred Costs Capitalized Prepaid And Other Assets Abstract
Prepaid expenses	$ 185,094	$ 186,231
Deferred charges	27,719	27,719
Other receivables	211	211
Prepaid expenses and other current assets	$ 213,024	$ 214,161

Equipment and Leasehold Improvements (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization	$ 9,030	$ 12,274	$ 45,823

Equipment and Leasehold Improvements (Details) - Property, Plant and Equipment - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Property, Plant and Equipment [Line Items]
Less: Accumulated depreciation & amortization	$ (3,246,587)	$ (3,237,557)
Property and equipment, net	64,165	73,195
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	127,655	127,655
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,931,831	1,931,831
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,712	23,712
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	590,365	590,365
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 637,189	$ 637,189

Line of Credit (Details) - USD ($)	3 Months Ended
Line of Credit (Details) - USD ($)	Jun. 30, 2024	Apr. 01, 2024	Mar. 31, 2024
Line of Credit (Details) [Line Items]
Long-Term Line of Credit	$ 1,000,000		$ 690,000
Line of Credit [Member]
Line of Credit (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000
Line of Credit Facility, Collateral	collateralized by substantially all of the assets of the Company.
Long-Term Line of Credit		$ 1,000,000	$ 690,000
Line of Credit Facility, Interest Rate at Period End	9.55%
Line of Credit Facility, Interest Rate Description	Prime Rate plus 1.05 percentage points

Right of Use Assets and Operating Lease Liability (Details) - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Right of Use Assets and Operating Lease Liability (Details) [Line Items]
Operating Lease, Expense	$ 91,777	$ 102,811
Operating Lease, Weighted Average Remaining Lease Term	5 years 2 months 1 day
Building [Member]
Right of Use Assets and Operating Lease Liability (Details) [Line Items]
Operating Lease, Expense	$ 21,237
Lessee, Operating Lease, Discount Rate	3.90%
Monthly Payments September 2025 [Member] \| Minimum [Member] \| Building [Member]
Right of Use Assets and Operating Lease Liability (Details) [Line Items]
Operating Lease, Expense	$ 23,083
Monthly Payments September 2021 [Member] \| Minimum [Member] \| Building [Member]
Right of Use Assets and Operating Lease Liability (Details) [Line Items]
Lessee, Operating Lease, Renewal Term	8 years

Right of Use Assets and Operating Lease Liability (Details) - Lease, Cost - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Lease, Cost [Abstract]
Right to use asset	$ 1,830,857	$ 1,830,857
Less: Accumulated amortization	(558,157)	(506,394)
Right to use assets, net	$ 1,272,700	$ 1,324,463

Right of Use Assets and Operating Lease Liability (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Lessee Operating Lease Liability Maturity Abstract
Remaining payments in fiscal 2025	$ 191,130
2026	267,767
2027	277,000
2028	277,000
2029	277,000
Thereafter	115,416
Total undiscounted future minimum lease payments	1,405,313
Less: Difference between undiscounted lease payments and discounted lease liabilities	(132,613)
Present value of net minimum lease payments	1,272,700
Less current portion	(204,064)	$ (210,111)
Operating lease liabilities – long-term	$ 1,068,636	$ 1,114,352

Stock Options Plans (Details) - USD ($)		3 Months Ended
Stock Options Plans (Details) - USD ($)	Jan. 18, 2017	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Stock Options Plans (Details) [Line Items]
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.1	$ 0.1		$ 0.1
Common Stock, Capital Shares Reserved for Future Issuance (in Shares)	250,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 6,622
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 8 months 12 days
Share-Based Payment Arrangement, Expense		$ 1,942	$ 3,269
Share-Based Payment Arrangement, Option [Member]
Stock Options Plans (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Terms of Award	Options granted under the plan are exercisable up to a period of five years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant.
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period	5 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights	Options are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary.
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in Shares)		217,000

Stock Options Plans (Details) - Share-based Payment Arrangement, Option, Activity - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Share Based Payment Arrangement Option Activity Abstract
Outstanding, Number of Options		99,000
Outstanding, Average Exercise Price (in Dollars per share)		$ 3.13
Outstanding, Average Remaining Contractual Term	1 year 10 months 20 days	9 months 10 days
Outstanding, Aggregate Intrinsic Value (in Dollars)		$ 0
Vested Options, Number of Options	16,200
Vested Options, Average Exercise Price (in Dollars per share)	$ 3.03
Vested Options, Average Remaining Contractual Term	1 year 9 months 18 days
Vested Options, Aggregate Intrinsic Value (in Dollars)	$ 0
Options granted, Average Exercise Price	0
Options granted, Average Exercise Price (in Dollars per share)	$ 0
Options granted	0
Options exercised, Average Exercise Price	0
Options exercised, Average Exercise Price (in Dollars per share)	$ 0
Options exercised	0
Options canceled/forfeited, Average Exercise Price	(66,000)
Options canceled/forfeited, Average Exercise Price (in Dollars per share)	$ 3.19
Options canceled/forfeited	0
Outstanding, Number of Options	33,000
Outstanding, Average Exercise Price (in Dollars per share)	$ 3.02
Outstanding, Aggregate Intrinsic Value (in Dollars)	$ 0

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Deferred Income Tax Assets, Net	$ 2,439,427		$ 2,450,657
Net Income (Loss) Attributable to Parent	$ 42,248	$ 295,292

Net Income (Loss) per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Basic net income (loss) per share computation:
Net income	$ 42,248	$ 295,292
Less: Preferred dividends	(94,420)	(80,000)
Net income (loss) attributable to common shareholders	(52,172)	215,292
Add: Preferred dividends	0	80,000
Diluted net income (loss) attributable to common shareholders	$ (52,172)	$ 295,292
Weighted-average common shares outstanding (in Shares)	3,255,887	3,255,887
Incremental shares attributable to the assumed conversion of preferred stock (in Shares)	0	1,959,778
Total adjusted weighted-average shares (in Shares)	3,255,887	5,215,665
Diluted net income (loss) per share (in Dollars per share)	$ (0.02)	$ 0.06
Basic net income (loss) per share (in Dollars per share)	$ (0.02)	$ 0.07

Net Income (Loss) per Share (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,696,109	99,000
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,663,109	0
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	33,000	99,000

Segment Information (Details) - Schedule of Segment Reporting Information, by Segment - USD ($)	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 2,842,176	$ 2,866,929
Cost of sales	2,096,274	1,572,380
Gross margin	745,902	1,294,549
Total expenses	692,424	918,710
Income (loss) before income taxes	53,478	375,839
Avionics Government [Member]
Segment Reporting Information [Line Items]
Net sales	2,374,860	1,977,812
Cost of sales	1,847,674	986,038
Gross margin	527,186	991,774
Avionics Commercial [Member]
Segment Reporting Information [Line Items]
Net sales	467,316	889,117
Cost of sales	248,600	586,342
Gross margin	218,716	302,775
Avionics Total [Member]
Segment Reporting Information [Line Items]
Net sales	2,842,176	2,866,929
Cost of sales	2,096,274	1,572,380
Gross margin	745,902	1,294,549
Total expenses	315,933	479,347
Income (loss) before income taxes	429,969	815,202
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Net sales	0	0
Cost of sales	0	0
Gross margin	0	0
Total expenses	376,491	439,363
Income (loss) before income taxes	$ (376,491)	$ (439,363)

Tel Instrument Electronics (QB) (USOTC:TIKK)
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