Nordicus Partners (NORD) 10-Q 14 Feb 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Document and Entity Information:	'	'
Entity Registrant Name	'Advansource Biomaterials Corp	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Amendment Flag	'false	'
Entity Central Index Key	'0001011060	'
Current Fiscal Year End Date	'--03-31	'
Entity Common Stock, Shares Outstanding	21,490,621	'
Entity Public Float	'	$1,452,597
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2013		Mar. 31, 2013
Current assets	'		'
Cash	$108,000		$103,000
Accounts receivable-trade, net	161,000	[1]	145,000	[2]
Accounts receivable-other	82,000		208,000
Inventories, net	378,000		258,000
Prepaid expenses and other current assets	16,000		6,000
Total current assets	745,000		720,000
Property, plant and equipment, net	2,153,000		2,299,000
Deferred financing costs, net	88,000		93,000
Other assets	47,000		10,000
Total assets	3,033,000		3,122,000
Current liabilities	'		'
Accounts payable	142,000		170,000
Accrued expenses	227,000		170,000
Notes payable	100,000		'
Related party payable	30,000		60,000
Deferred revenue	163,000		25,000
Total current liabilities	662,000		425,000
Long-term liabilities	'		'
Long-term financing obligation	1,986,000		1,986,000
Accrued interest on financing obligation	134,000		88,000
Total long-term liabilities	2,120,000		2,074,000
Total liabilities	2,782,000		2,499,000
Commitments and contingencies	'		'
Stockholders' equity	'		'
Preferred stock	'	[3]	'	[4]
Common stock	21,000	[5]	21,000	[6]
Additional paid-in capital	38,048,000		38,013,000
Accumulated deficit	-37,788,000		-37,381,000
Treasury stock	-30,000	[7]	-30,000	[8]
Total stockholders' equity	251,000		623,000
Total liabilities and stockholders' equity	$3,033,000		$3,122,000
[1]	Net of allowance of $5 as of December 31, 2013.
[2]	Net of allowance of $5 as March 31, 2013.
[3]	$.001 par value, 5,000,000 shares authorized; no shares issued and outstanding as of December 31, 2013.
[4]	$.001 par value, 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2013.
[5]	$.001 par value, 50,000,000 shares authorized; 21,567,313 shares issued and 21,490,621 shares outstanding as of December 31, 2013.
[6]	$.001 par value, 50,000,000 shares authorized; 21,567,313 shares issued and 21,490,621 shares outstanding as of March 31, 2013.
[7]	76,692 shares at cost at December 31, 2013.
[8]	76,692 shares at cost at March 31, 2012.

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Revenues	'	'	'	'
Product sales	$425	$440	$1,145	$1,114
License, royalty and development fees	260	429	603	672
Total revenues	685	869	1,748	1,786
Cost of sales	168	196	551	562
Gross profit	517	673	1,197	1,224
Operating expenses	'	'	'	'
Research, development and regulatory	90	99	298	342
Selling, general and administrative	342	376	1,080	1,232
Total operating expenses	432	475	1,378	1,574
Loss from operations	85	198	-181	-350
Interest and other expenses	'	'	'	'
Interest expense	88	85	271	254
Other income	-44	'	-45	'
Total interest and other expense	44	85	226	254
Net loss	$41	$113	($407)	($604)
Net loss per common share, basic and diluted	$0	$0.01	($0.02)	($0.03)
Shares used in computing net loss per common share, basic	21,491	21,491	21,491	21,491
Shares used in computing net loss per common share, diluted	21,491	21,491	21,491	21,491

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities	'	'
Net loss	($407,000)	($604,000)
Adjustments to reconcile net loss to net cash flows used in operating activities:	'	'
Depreciation	137,000	142,000
Amoritization of deferred financing costs	5,000	5,000
Stock-based compensation	35,000	27,000
Gain on sale of equipment	-36,000	'
Changes in assets and liabilities:	'	'
(Increase) decrease in accounts receivable-trade	-16,000	-76,000
(Increase) decrease in accounts receivable-other	126,000	-252,000
(Increase) decrease in inventories	-120,000	11,000
(Increase) decrease in prepaid expenses and other current assets	-10,000	211,000
Increase (decrease) in accounts payable	-28,000	69,000
Increase (decrease) in accrued expenses	30,000	12,000
Increase (decrease) in deferred revenue	138,000	7,000
Net cash flows provided by (used in) operating activities	-146,000	-448,000
Cash flows from investing activities	'	'
Sale of equipment	45,000	'
Increase in other assets	-10,000	'
Net cash flows provided by (used in) investing activities	35,000	'
Cash flows from financing activities	'	'
Increase (decrease) in interest on financing obligation	46,000	39,000
Proceeds from issuance of promissory note	100,000	'
Repayment of related party payable	-30,000	'
Net cash flows provided by (used in) financing activities	116,000	39,000
Net change in cash	5,000	-409,000
Cash at beginning of period	103,000	484,000
Cash at end of period	108,000	75,000
Supplemental disclosures of cash flow information	'	'
Interest paid	$210,000	$215,000

Description_of_Business_and_Ba

Description of Business and Basis of Presentation	9 Months Ended
	Dec. 31, 2013
Notes	'
Description of Business and Basis of Presentation	'
	1.       Description of Business
	AdvanSource Biomaterials Corporation develops advanced polymer materials which provide critical characteristics in the design and development of medical devices. Our biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. Our business model leverages our proprietary materials science technology and manufacturing expertise in order to expand product sales and royalty and license fee income.
	Our technology, notably products such as ChronoFlex®, HydroMed , and HydroThane , which have been developed to overcome a wide range of design and functional challenges, such as the need for dimensional stability, ease of manufacture and demanding physical properties to overcoming environmental stress cracking and providing heightened lubricity for ease of insertion. Our new product extensions customize proprietary polymers for specific customer applications in a wide range of device categories.
	Our corporate, development and manufacturing operations are located in our leased facility in Wilmington, Massachusetts.
	2.       Interim Financial Statements and Basis of Presentation
	The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three and nine months ended 12/31/2013 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended 3/31/2013 as filed with the Securities and Exchange Commission (the “SEC”).
	Except as discussed in the following paragraph, significant accounting policies are described in Note B to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of 3/31/2013. With respect to license, royalty and development fees, we entered into a non-exclusive license agreement and a consulting services agreement (collectively, the “Agreements”) with a major international developer and manufacturer of medical devices (“Customer”) in June 2011. The Agreements generally provides the Customer with the right to use, and the know-how to produce, a specific proprietary polymer biomaterial for a specific field of use (the “Licensed Polymer”) within the Customer’s suite of medical device products. In accordance with the applicable accounting guidance, we determined the Agreements included certain units of accounting which achievement of milestones resulted in the cumulative recognition of revenues from the inception of the Agreements through June 30, 2013 of $540,000 in the aggregate. Although the Agreements did provide for up to an additional $970,000 in payments based upon the achievement of additional milestones, we mutually agreed with our Customer to amend the Agreements on September 27, 2013 to provide for a fixed payment of $560,000 over a fixed 12 month term ending September 2014. We received $176,000 on 9/30/2013, which was recorded as deferred revenue in our condensed balance sheet as of 9/30/2013 and we will receive 12 monthly payments of $32,000 per month commencing 10/1/2013 and ending 9/30/2014. During the three months ended 12/31/2013 we recognized $140,000 of revenue pursuant to the terms of the amended Agreements. As of 12/31/2013, the unamortized balance of deferred revenue in connection with the amended Agreements was $132,000, which will continue to be recorded as revenue on a straight-line basis over the term of the amended Agreements.
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, allowance for doubtful accounts, inventory reserves, useful lives and valuation of property and equipment.

New_Accounting_Pronouncement

New Accounting Pronouncement	9 Months Ended
	Dec. 31, 2013
Notes	'
New Accounting Pronouncement	'
	3.       New Accounting Pronouncement
	We have evaluated all issued but not effective accounting pronouncements and determined they are either immaterial or not relevant to us.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2013
Notes	'
Related Party Transactions	'
	4.       Related Party Transactions
	On 1/16/2013, we were advanced $60,000 for working capital purposes by Michael Adams, our President and Chief Executive Officer.  The advance was payable on demand and did not bear interest. As of 12/31/2013 and 3/31/2013 the outstanding balance was $30,000 and $60,000, respectively.
	On 8/22/2013, Mr. Adams and David Volpe, our Chief Financial Officer, participated along with three independent investors in an aggregate financing resulting in the issuance of $100,000 in promissory notes (see Note 11). Messrs Adams and Volpe each contributed approximately $13,000 in cash. In addition to the promissory notes, Messrs Adams and Volpe also received warrants entitling them to exercise said warrants in 54,375 shares of our common stock at an exercise price of $0.075 per share (see Note 9 and 11). As of 12/31/2013, the principle balance of the promissory notes remained outstanding and no warrants were exercised.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Dec. 31, 2013
Notes	'
Stock-Based Compensation	'
	5.       Equity-Based Compensation
	Our 1996 Employee, Director and Consultants Stock Option Plan (the “1996 Plan”) was approved by the Board of Directors and Stockholders in March 1996. A total of 7,000,000 shares were reserved for issuance under the 1996 Plan. Under the terms of the 1996 Plan, the exercise price of Incentive Stock Options issued under the 1996 Plan must be equal to the fair market value of the common stock at the date of grant. In the event that Non Qualified Options are granted under the 1996 Plan, the exercise price may be less than the fair market value of the common stock at the time of the grant (but not less than par value). In October 2003, our shareholders approved the 2003 Stock Option Plan (the “2003 Plan”), which authorizes the issuance of 3,000,000 shares of common stock with terms similar to the 1996 Plan. In January 2006, we filed Form S-8 with the SEC registering an additional 489,920 total shares of common stock in the 1996 Plan and 2003 Plan. Total shares of common stock registered under the 1996 Plan and 2003 Plan (collectively, the “Plans”) are 10,489,920. Substantially all of the stock options granted pursuant to the 1996 Plan provide for the acceleration of vesting of the shares of Common Stock subject to such options in connection with certain changes in our control. A similar provision is not included in the 2003 Plan. Options granted expire ten years from the grant date. As of 9/30/2013, all Plans and shares not granted expired. As of 12/31/2013, there are no other equity incentive plans in place for the future issuance of our common stock.
	Activity under the Plans for the nine months ended 12/31/2013 is as follows:
		Options Outstanding			Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
									(in thousands)
	Options outstanding as of April 1, 2013	1,844,500		$	0.99		5.36	$	-
	Granted	796,250			0.06		8.50	$	-
	Exercised	-			-		-
	Cancelled or forfeited	25,000			-		-	$	-
	Options outstanding as of 12/31/2013 (unaudited)	2,615,750			0.66		6.19	$	-
	Options exercisable as of 12/31/2013 (unaudited)	2,018,562			0.84		5.16	$	-
	Options vested or expected to vest as of	2,615,750			0.66		6.19	$	-
	12/31/2013 (unaudited)
	On 5/1/2013 and 9/4/2013, we granted options exercisable into 25,000 shares and 771,250 shares, respectively, of our common stock. The fair value of options granted on 9/4/2013 and 5/1/2013 is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:
			9/4/13			5/1/13
	Dividend yield		0.00%			0.00%
	Expected volatility		180.90%			180.60%
	Risk-free interest rate		1.27%			2.70%
	Expected life in years		8.5			8.5
	Fair value of options granted		$0.06			$0.07
	Our unaudited condensed statements of operations include equity-based compensation expense related to our stock option plans for employee and non-employee director awards in the amount of $4,000 and $6,000 for the three months ended 12/31/2013 and 12/31/2012, respectively; and $25,000 and $27,000 for the nine months ended 12/31/2013 and 12/31/2012, respectively. There was no income tax benefit related to these costs. As of 12/31/2013, the total amount of unrecognized equity-based compensation expense was approximately $32,000 which will be recognized over a weighted average period of 2.67 years.

Loss_Per_Share

Loss Per Share	9 Months Ended
	Dec. 31, 2013
Notes	'
Loss Per Share	'
	8.       Loss Per Share
	Basic loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share are based upon the weighted-average common shares outstanding during the period plus additional weighted-average common equivalent shares outstanding during the period. Common equivalent shares result from the assumed exercise of outstanding stock options and warrants, the proceeds of which are then assumed to have been used to repurchase outstanding common stock using the treasury stock method. In addition, the numerator is adjusted for any changes in loss that would result from the assumed conversion of potential shares. At 12/31/2013 and 12/31/2012, potentially dilutive shares of 3,270,048 and 2,063,798, respectively, were excluded from the diluted loss per share calculations because their effect would be antidilutive or the options exercise prices were greater than the average market price of the common shares. Shares deemed to be antidilutive include stock options and warrants issuable upon exercise.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Dec. 31, 2013
Notes	'
Stockholders' Equity	'
	9.       Stockholders’ Equity
	Common Stock and Warrants
	On 3/31/2008, we issued warrants to purchase 219,298 shares of our common stock in connection with the disposition of one of our subsidiaries. These warrants are exercisable at a price of $0.874 per share and expire on 3/31/2015. At 12/31/2013 and 3/31/2013, all of these warrants were outstanding.
	On 8/22/2013, we entered into Promissory Notes in the aggregate principal amount of $100,000 (the “Notes”) with three shareholders and the Company’s chief executive officer and chief financial officer (the “Investors”). The Notes have a six-month term, bear interest at the rate of 1.75% per month and all principal and accrued interest, if any, is due and payable on or before 2/21/2014. In lieu of cash payment of interest, the Investors chose to receive Warrants exercisable into an aggregate 435,000 shares of our common stock. The Warrants have a one-year term and are exercisable at a 150% premium over the closing price of our common stock as of 8/21/2013, or $0.075 per share. The Notes are secured by accounts receivable from certain customers.
	In calculating the estimated fair value of the Warrants, we use the Black-Scholes pricing model with the following assumptions:
		8/22/13
	Dividend yield	0.00%
	Expected volatility	156.90%
	Risk-free interest rate	1.64%
	Expected life in years	1
	The estimated fair value of approximately $10,000 was recorded as interest expense in our condensed statements of operations. As of 12/31/2013 the principle balance outstanding was $100,000 and all of the warrants were outstanding.
	Employee Stock Purchase Plan
	There were no shares of our common stock issued pursuant to the Employee Stock Purchase Plan (the “ESP Plan”) as of 3/31/2013 as all 500,000 shares authorized under the ESP Plan have been issued.

Income_Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2013
Notes	'
Income Taxes	'
	10.    Income Taxes
	The provision for income taxes includes federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. We evaluate the realizability of our deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. A valuation allowance has been recorded to offset all deferred tax assets due to uncertainty of realizing the tax benefits of the underlying operating loss and tax credit carry forwards over their carry forward periods. We have no significant deferred tax liabilities as of 12/31/2013 and 3/31/2013.
	We account for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. We evaluate this tax position on a quarterly basis. We also accrue for potential interest and penalties, if applicable, related to unrecognized tax benefits in income tax expense. As of 12/31/2013 and 3/31/2013, we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.

Notes_Payable

Notes Payable	9 Months Ended
	Dec. 31, 2013
Notes	'
Notes Payable	'
	11.    Notes Payable
	On 8/22/2013, we entered into Promissory Notes in the aggregate principal amount of $100,000 (the “Notes”) with three shareholders and the Company’s chief executive officer and chief financial officer (the “Investors”). The Notes have a six-month term, bear interest at the rate of 1.75% per month and all principal and accrued interest, if any, is due and payable on or before 2/21/2014. In lieu of cash payment of interest, the Investors chose to receive Warrants exercisable into an aggregate 435,000 shares of our common stock. The Warrants have a one-year term and are exercisable at a 150% premium over the closing price of our common stock as of 8/21/2013, or $0.075 per share. The Notes are secured by accounts receivable from certain customers. As of 12/31/2013 the principle balance outstanding was $100,000 and all of the warrants were outstanding.

Longterm_Financing_Obligation

Long-term Financing Obligation	9 Months Ended
	Dec. 31, 2013
Notes	'
Long-term Financing Obligation	'
	12.    Long-Term Financing Obligation
	On 12/22/2011, we entered into an agreement with an independent third-party under which we sold and leased back our land and building generating gross proceeds of $2,000,000. Pursuant to a lease agreement, the initial minimum lease term is 15 years. At the end of the initial minimum lease term, we have the option to renew the lease for three periods of five years each. Under the terms of the lease, we were required to place $280,000 of the net proceeds in escrow as a prepayment of the calendar year 2012 lease payments. As of 12/31/2012, the balance of the prepaid lease payment was $0 and there is no further obligation to provide for prepaid lease payments. In addition, we provided, as collateral, a security interest in all furnishings, fixtures and equipment owned and used by us, having a net book value of approximately $49,000 as of 12/31/2013.  For accounting purposes, the provision of such collateral constitutes continuing involvement with the associated property. Due to this continuing involvement, this sale-leaseback transaction is accounted for under the financing method, rather than as a completed sale. Under the financing method, we include the sales proceeds received as a financing obligation. As of 12/31/2013 and 3/31/2013, the total financing obligation was $1,986,000, respectively, and accrued interest on financing obligation was $134,000 and $88,000, respectively. The building, building improvements and land remain on the condensed balance sheet and the building and building improvements will continue to be depreciated over their remaining useful lives. Payments made under the lease are applied as payments of imputed interest and deemed principal on the underlying financing obligation.

Contingencies

Contingencies	9 Months Ended
	Dec. 31, 2013
Notes	'
Contingencies	'
	13.    Contingencies
	We are not a party to any legal proceedings, other than ordinary routine litigation incidental to its business, which we believe will not have a material affect on our financial position or results of operations.

Concentrations_of_Credit_Risk_

Concentrations of Credit Risk and Major Customers	9 Months Ended
	Dec. 31, 2013
Notes	'
Concentrations of Credit Risk and Major Customers	'
	14.    Concentrations of Credit Risk and Major Customers
	For the three months ended 12/31/2013, three customers represented 72% of our total revenues. For the three months ended 12/31/2012, three customers represented 75% of our total revenues.
	For the nine months ended 12/31/2013, three customers represented 71% of our total revenues. For the nine months ended 12/31/2012, four customers represented 65% of our total revenues.
	As of 12/31/2013, we had accounts receivable-trade, net, of $131,000, or 81%, due from one customer. As of 3/31/2013, we had accounts receivable-trade, net, of $95,000, or 65%, due from three customers.
	As of 12/31/2013, we had $82,000 due from two customers related to receivables on royalties, license and annual usage fees. As of 3/31/2013, we had $208,000 due from four customer related to receivables on royalties, license and annual usage fees. These amounts are classified as accounts receivable-other in the accompanying condensed balance sheets.

Subsequent_Events

Subsequent Events	9 Months Ended
	Dec. 31, 2013
Notes	'
Subsequent Events	'
	15.    Subsequent Events
	We evaluated all events or transactions that occurred after the balance sheet date through the date when we issued these unaudited condensed financial statements. During this period, we did not have any material recognizable subsequent events.

Description_of_Business_and_Ba1

Description of Business and Basis of Presentation: Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2013
Policies	'
Basis of Presentation and Significant Accounting Policies	'
	The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three and nine months ended 12/31/2013 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this quarterly report on Form 10-Q should be read in conjunction with our audited financial statements included in our annual report on Form 10-K as of and for the year ended 3/31/2013 as filed with the Securities and Exchange Commission (the “SEC”).
	Except as discussed in the following paragraph, significant accounting policies are described in Note B to the consolidated financial statements included in Item 8 of our annual report on Form 10-K as of 3/31/2013. With respect to license, royalty and development fees, we entered into a non-exclusive license agreement and a consulting services agreement (collectively, the “Agreements”) with a major international developer and manufacturer of medical devices (“Customer”) in June 2011. The Agreements generally provides the Customer with the right to use, and the know-how to produce, a specific proprietary polymer biomaterial for a specific field of use (the “Licensed Polymer”) within the Customer’s suite of medical device products. In accordance with the applicable accounting guidance, we determined the Agreements included certain units of accounting which achievement of milestones resulted in the cumulative recognition of revenues from the inception of the Agreements through June 30, 2013 of $540,000 in the aggregate. Although the Agreements did provide for up to an additional $970,000 in payments based upon the achievement of additional milestones, we mutually agreed with our Customer to amend the Agreements on September 27, 2013 to provide for a fixed payment of $560,000 over a fixed 12 month term ending September 2014. We received $176,000 on 9/30/2013, which was recorded as deferred revenue in our condensed balance sheet as of 9/30/2013 and we will receive 12 monthly payments of $32,000 per month commencing 10/1/2013 and ending 9/30/2014. During the three months ended 12/31/2013 we recognized $140,000 of revenue pursuant to the terms of the amended Agreements. As of 12/31/2013, the unamortized balance of deferred revenue in connection with the amended Agreements was $132,000, which will continue to be recorded as revenue on a straight-line basis over the term of the amended Agreements.

Description_of_Business_and_Ba2

Description of Business and Basis of Presentation: Use of Estimates (Policies)	9 Months Ended
	Dec. 31, 2013
Policies	'
Use of Estimates	'
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, allowance for doubtful accounts, inventory reserves, useful lives and valuation of property and equipment.

StockBased_Compensation_Stock_

Stock-Based Compensation: Stock Option Pricing Model Valuation Assumptions (Tables)	9 Months Ended
	Dec. 31, 2013
Tables/Schedules	'
Warrant Pricing Model Assumptions	'
		8/22/13
	Dividend yield	0.00%
	Expected volatility	156.90%
	Risk-free interest rate	1.64%
	Expected life in years	1

Property_Plant_and_Equipment_T

Property, Plant and Equipment (Tables)	9 Months Ended
	Dec. 31, 2013
Tables/Schedules	'
Property, Plant and Equipment	'
	(in thousands)	12/31/13	3/31/13
	Land	$500	$500
	Building	2,705	2,705
	Machinery, equipment and tooling	1,214	1,235
	Furniture, fixtures and office equipment	285	285
		4,704	4,725
	Less: accumulated depreciation	-2,551	-2,426
		$2,153	$2,299

Stockholders_Equity_Warrant_Pr

Stockholders' Equity: Warrant Pricing Model Assumptions (Tables)	9 Months Ended
	Dec. 31, 2013
Tables/Schedules	'
Warrant Pricing Model Assumptions	'
		8/22/13
	Dividend yield	0.00%
	Expected volatility	156.90%
	Risk-free interest rate	1.64%
	Expected life in years	1

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation	'	$4,000	$6,000	$25,000	$27,000
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards	$32,000	$32,000	'	$32,000	'
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards, Weighted Average Period of Recognition	2.67	'	'	'	'
Stock Options	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	'	'	'	1,844,500	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	'	'	'	$0.99	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	'	'	'	796,250	'
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	'	'	'	$0.06	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	'	'	'	25,000	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	2,615,750	2,615,750	'	2,615,750	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$0.66	$0.66	'	$0.66	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	'	'	'	'6 years 2 months 8 days	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	2,018,562	2,018,562	'	2,018,562	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$0.84	$0.84	'	$0.84	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	'	'	'	'5 years 1 month 28 days	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	2,615,750	2,615,750	'	2,615,750	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$0.66	$0.66	'	$0.66	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	'	'	'	'6 years 2 months 8 days	'

Items_Details

Items (Details) (USD $)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Inventory, Raw Materials, Net of Reserves	'	'	'	'	$102
Inventory, Work in Process, Net of Reserves	'	'	'	'	7
Inventory, Finished Goods, Net of Reserves	'	'	'	'	149
Depreciation Expense	44,000	47,000	137,000	142,000	'
Unaudited	'	'	'	'	'
Inventory, Raw Materials, Net of Reserves	81	'	81	'	'
Inventory, Work in Process, Net of Reserves	50	'	50	'	'
Inventory, Finished Goods, Net of Reserves	$247	'	$247	'	'

Property_Plant_and_Equipment_D

Property, Plant and Equipment (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2013
		Unaudited
Land	$500	$500
Buildings and Improvements, Gross	2,705	2,705
Machinery and Equipment, Gross	1,235	1,214
Furniture and Fixtures, Gross	285	285
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	($2,426)	($2,551)

Loss_Per_Share_Details

Loss Per Share (Details)	0 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,270,048	2,063,798

Notes_Payable_Details

Notes Payable (Details) (Loans Payable, USD $)	0 Months Ended
	Feb. 21, 2014	Sep. 30, 2013	Aug. 22, 2013
Loans Payable	'	'	'
Loans Payable	'	$100,000	$100,000
Debt Instrument, Interest Rate at Period End	'	1.75%	'
Debt Instrument, Maturity Date	21-Feb-14	'	'

Longterm_Financing_Obligation_

Long-term Financing Obligation (Details) (USD $)	0 Months Ended
	Dec. 22, 2011	Dec. 31, 2013	Sep. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Details	'	'	'	'	'
Sale Leaseback Transaction, Date	'12/22/2011	'	'	'	'
Proceeds from financing obligation	$2,000,000	'	'	'	'
Deposits Assets, Current	280,000	'	'	'	0
Property, plant and equipment, net	'	2,153,000	49,000	2,299,000	'
Long-term financing obligation	'	1,986,000	'	1,986,000	'
Interest Portion of Minimum Lease Payments, Sale Leaseback Transactions	'	$134,000	'	$88,000	'

Concentrations_of_Credit_Risk_1

Concentrations of Credit Risk and Major Customers (Details) (USD $)	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Details	'	'	'
Concentration Risk, Percentage	71.00%	'	65.00%
Fair Value, Concentration of Risk, Accounts Receivable	$131,000	$95,000	'
Accrued Fees and Other Revenue Receivable	$82,000	$208,000	'