Document And Entity Information
Document And Entity Information | 9 Months Ended |
Dec. 31, 2021 | |
Document And Entity Information | |
Document Type | S-4 |
Entity Registrant Name | Universal Security Instruments, Inc. |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000102109 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
CURRENT ASSETS | |||||||||
Cash | $ 387,223 | $ 160,604 | $ 93,794 | ||||||
Accounts receivable: | |||||||||
Trade, less allowance for doubtful accounts | 877,960 | 653,172 | 109,548 | ||||||
Receivables from employees | 7,250 | 5,000 | 36,876 | ||||||
Accounts, Notes, Loans and Financing Receivable, Net, Current | 885,210 | 658,172 | 146,424 | ||||||
Amount due from factor | 3,355,802 | 1,925,291 | 2,300,109 | ||||||
Inventories - finished goods | 5,123,468 | 4,181,193 | 5,123,959 | ||||||
Prepaid expenses | 202,669 | 336,699 | 113,145 | ||||||
TOTAL CURRENT ASSETS | 9,954,372 | 7,261,959 | 7,777,431 | ||||||
PROPERTY AND EQUIPMENT - NET | 53,920 | 184,678 | 346,477 | ||||||
INTANGIBLE ASSETS - NET | 41,363 | 44,717 | 49,189 | ||||||
OTHER ASSETS | 4,000 | 4,000 | 4,000 | ||||||
TOTAL ASSETS | 10,053,655 | 7,495,354 | 8,177,097 | ||||||
CURRENT LIABILITIES | |||||||||
Line of credit - factor | 2,357,431 | 18,904 | 1,561,665 | ||||||
Note payable - Eyston Company Ltd. | 1,081,440 | ||||||||
Short-term portion of operating lease liability | 43,965 | 171,122 | 158,578 | ||||||
Accounts payable - trade | 443,032 | 509,561 | 505,904 | ||||||
Accounts payable - Eyston Company Ltd. | 1,002,385 | 755,148 | 266,409 | ||||||
Accrued liabilities: | |||||||||
Accrued payroll and employee benefits | 139,217 | 103,381 | 136,683 | ||||||
Accrued commissions and other | 111,941 | 139,242 | 88,694 | ||||||
TOTAL CURRENT LIABILITIES | 5,179,411 | 1,697,358 | 2,717,933 | ||||||
NOTE PAYABLE - Eyston Company Ltd. | 1,081,440 | ||||||||
ACCOUNTS PAYABLE - Eyston Company Ltd. - noncurrent | 1,081,440 | 839,831 | |||||||
TOTAL LONG-TERM LIABILITIES | 1,081,440 | 1,010,951 | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock, $.01 par value per share; authorized 20,000,000 shares; 2,312,887 shares issued and outstanding at December 31, 2021 and March 31, 2021 | 23,129 | 23,129 | 23,129 | ||||||
Additional paid-in capital | 12,885,841 | 12,885,841 | 12,885,841 | ||||||
Accumulated Deficit | (8,034,726) | (8,192,414) | (8,460,757) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 4,874,244 | $ 4,838,893 | $ 4,731,197 | 4,716,556 | $ 5,173,394 | $ 5,095,076 | $ 4,369,231 | 4,448,213 | $ 10,873,860 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 10,053,655 | $ 7,495,354 | $ 8,177,097 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,312,887 | 2,312,887 | 2,312,887 |
Common stock, shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||
Net sales | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 | ||
Cost of goods sold - acquired from Joint Venture | 10,009,571 | ||||||||||||||
Cost of goods sold | 3,602,391 | 3,604,427 | 10,708,109 | 9,821,319 | 11,880,442 | 1,034,599 | |||||||||
GROSS PROFIT | 1,716,623 | 938,215 | 1,520,323 | 2,104,028 | 1,077,143 | 653,687 | 769,992 | 1,090,346 | 1,244,829 | 4,551,126 | 4,701,494 | 5,639,709 | 3,758,854 | ||
Selling, general and administrative expense | 1,569,746 | 1,321,311 | 4,059,988 | 3,572,189 | 5,034,380 | 4,628,881 | |||||||||
Research and development expense | 97,370 | 106,608 | 295,496 | 332,276 | 471,545 | 691,886 | |||||||||
Operating income | 49,507 | 92,404 | 195,642 | 797,029 | 133,784 | (1,561,913) | |||||||||
Other expense: | |||||||||||||||
Forgiveness of debt - PPP Loan | 221,400 | ||||||||||||||
Loss from investment in Hong Kong Joint Venture | (3,842,275) | ||||||||||||||
Interest expense | (14,156) | (14,086) | (37,954) | (71,848) | (86,841) | (409,703) | |||||||||
Earnings (Loss) before income taxes | 268,343 | (5,813,891) | |||||||||||||
NET INCOME | $ 35,351 | $ 107,696 | $ 14,641 | $ (456,838) | $ 78,318 | $ 725,845 | $ (78,982) | $ (3,492,290) | $ (1,011,833) | $ (700,814) | $ (608,954) | $ 157,688 | $ 725,181 | $ 268,343 | $ (5,813,891) |
Earnings per share: | |||||||||||||||
Basic per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) | ||
Diluted per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) | ||
Shares used in computing earnings per share: | |||||||||||||||
Weighted average basic shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | |||||||||
Weighted average diluted shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accum. Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2019 | $ 23,129 | $ 12,885,841 | $ (2,646,866) | $ 611,756 | $ 10,873,860 |
Balance (in shares) at Mar. 31, 2019 | 2,312,887 | ||||
Currency translation loss | (134,151) | (134,151) | |||
Unrealized loss on investment securities | (50,397) | (50,397) | |||
Less: Reclassification adjustment for net gain included in loss | $ (427,208) | (427,208) | |||
Net Income (Loss) | (5,813,891) | (5,813,891) | |||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | (78,982) | (78,982) | |||
Balance at Jun. 30, 2020 | $ 23,129 | 12,885,841 | (8,539,739) | 4,369,231 | |
Balance (in shares) at Jun. 30, 2020 | 2,312,887 | ||||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | 725,181 | ||||
Balance at Dec. 31, 2020 | $ 23,129 | 12,885,841 | (7,735,576) | 5,173,394 | |
Balance (in shares) at Dec. 31, 2020 | 2,312,887 | ||||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | 268,343 | 268,343 | |||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Balance at Jun. 30, 2020 | $ 23,129 | 12,885,841 | (8,539,739) | 4,369,231 | |
Balance (in shares) at Jun. 30, 2020 | 2,312,887 | ||||
Net Income (Loss) | 725,845 | 725,845 | |||
Balance at Sep. 30, 2020 | $ 23,129 | 12,885,841 | (7,813,894) | 5,095,076 | |
Balance (in shares) at Sep. 30, 2020 | 2,312,887 | ||||
Net Income (Loss) | 78,318 | 78,318 | |||
Balance at Dec. 31, 2020 | $ 23,129 | 12,885,841 | (7,735,576) | 5,173,394 | |
Balance (in shares) at Dec. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | (456,838) | ||||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Net Income (Loss) | 14,641 | 14,641 | |||
Balance at Jun. 30, 2021 | $ 23,129 | 12,885,841 | (8,177,773) | 4,731,197 | |
Balance (in shares) at Jun. 30, 2021 | 2,312,887 | ||||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Net Income (Loss) | 157,688 | ||||
Balance at Dec. 31, 2021 | $ 23,129 | 12,885,841 | (8,034,726) | 4,874,244 | |
Balance (in shares) at Dec. 31, 2021 | 2,312,887 | ||||
Balance at Jun. 30, 2021 | $ 23,129 | 12,885,841 | (8,177,773) | 4,731,197 | |
Balance (in shares) at Jun. 30, 2021 | 2,312,887 | ||||
Net Income (Loss) | 107,696 | 107,696 | |||
Balance at Sep. 30, 2021 | $ 23,129 | 12,885,841 | (8,070,077) | 4,838,893 | |
Balance (in shares) at Sep. 30, 2021 | 2,312,887 | ||||
Net Income (Loss) | 35,351 | 35,351 | |||
Balance at Dec. 31, 2021 | $ 23,129 | $ 12,885,841 | $ (8,034,726) | $ 4,874,244 | |
Balance (in shares) at Dec. 31, 2021 | 2,312,887 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES: | ||||
Net Income | $ 157,688 | $ 725,181 | $ 268,343 | $ (5,813,891) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 6,955 | 6,532 | 7,695 | 7,690 |
Forgiveness of debt - Paycheck Protection Program | (221,400) | |||
Depreciation of right-of-use asset | 158,576 | 156,250 | ||
Increase in allowance for doubtful accounts receivable | 100,000 | |||
Loss from investment in Hong Kong Joint Venture | 3,842,275 | |||
Changes in operating assets and liabilities: | ||||
Increase in accounts receivable and amounts due from factor | (1,657,549) | (1,017,400) | (236,930) | 568,879 |
Decrease in inventories | 942,766 | 1,728,346 | ||
(Increase) Decrease in inventories, prepaid expenses, and other | (808,245) | 2,018,807 | ||
(Increase) Decrease in prepaid expenses | (223,554) | 32,045 | ||
Increase in accounts payable and accrued expenses | 189,243 | 94,255 | 751,252 | (356,096) |
Decrease in operating lease liability | (158,576) | (156,250) | ||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (2,111,908) | 1,827,375 | 1,388,172 | 9,248 |
FINANCING ACTIVITIES: | ||||
Proceeds from - Paycheck Protection Program | 221,400 | |||
Net borrowing (repayment) of Line of Credit - Factor | 2,338,527 | (1,561,665) | (1,542,762) | (289,926) |
Note payable - Commercial Bank | 221,400 | |||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 2,338,527 | (1,340,265) | (1,321,362) | (289,926) |
NET INCREASE IN CASH | 226,619 | 487,110 | 66,810 | (280,678) |
Cash at beginning of period | 160,604 | 93,794 | 93,794 | 374,472 |
CASH AT END OF PERIOD | 387,223 | 580,904 | 160,604 | 93,794 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid | $ 37,954 | 68,174 | 82,184 | 496,250 |
Supplemental disclosures of non-cash activities: | ||||
Right-of-use asset in exchange for operating lease liability | 485,948 | |||
Conversion of trade accounts payable to note payable | $ 1,081,440 | $ 1,081,440 | ||
Reduction in trade accounts payable to Eyston Co. Ltd. arising from the sale of the Hong Kong Joint Venture | $ 4,000,000 |
Statement of Management
Statement of Management | 9 Months Ended |
Dec. 31, 2021 | |
Statement of Management | |
Statement of Management | Statement of Management The condensed consolidated financial statements include the accounts of Universal Security Instruments, Inc. (USI or the Company) and its wholly-owned subsidiary. Except for the condensed consolidated balance sheet as of March 31, 2021, which was derived from audited financial statements, the accompanying condensed consolidated financial statements are unaudited. Significant inter-company accounts and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the interim condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US-GAAP) have been condensed or omitted. The interim condensed consolidated financial statements should be read in conjunction with the Company’s March 31, 2021 audited financial statements filed with the Securities and Exchange Commission on Form 10-K as filed on July 8, 2021. The interim operating results are not necessarily indicative of the operating results for the full fiscal year. |
Liquidity and Management Plans
Liquidity and Management Plans | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Liquidity and Management Plans | ||
Liquidity and Management Plans | Liquidity and As the Company previously reported, on August 31, 2020, the Company received a letter from NYSE American LLC (the “Exchange”) stating that the Exchange has determined that the Company is not in compliance with the Exchange’s continued listing requirements as the result of the Company’s failure to maintain stockholders’ equity of $6.0 million after reporting losses from continuing operations and/or net losses in its five most recent fiscal years. On October 1, 2021, the Company received a letter from the Exchange notifying the Company that it is now in compliance with all of the continued listing standards of the Exchange and that the Company has resolved the continued listing deficiency previously referenced. As our products are sold primarily to the construction industry and do-it-yourself centers, restrictions and limitations imposed by the COVID-19 pandemic have had an impact on the Company’s sales. We are not yet able to quantify the full impact of the COVID-19 pandemic on our sales and financial results, but we believe that sales, customs charges, and freight costs were negatively impacted by delays in freight forwarding from ports of entry in California due to delays related to issues with COVID-19. Our short-term borrowings to finance any operating losses, trade accounts receivable, and foreign inventory purchases are provided pursuant to the terms of its Factoring Agreement with Merchant Factors Corporation (Merchant or Factor). Borrowings under the Factoring Agreement bear interest at prime plus 2% and are secured by trade accounts receivable and inventory. Advances from Merchant are at the sole discretion of Merchant based on Merchant’s assessment of the Company’s receivables, inventory and financial condition at the time of each request for an advance. The unused availability of this facility totaled approximately $383,000 at December 31, 2021. The Company’s non-factored trade accounts receivable net of allowance for uncollectible amounts totaled approximately $878,000 at December 31, 2021 . | NOTE B – LIQUIDITY AND MANAGEMENT’S PLAN As the Company previously reported, on August 31, 2020, the Company received a letter from NYSE American LLC (the “Exchange”) stating that the Exchange has determined that the Company is not in compliance with the Exchange’s continued listing requirements as the result of the Company’s failure to maintain stockholders’ equity of $6.0 million after reporting losses from continuing operations and/or net losses in its five most recent fiscal years. On September 23, 2020, the Company submitted to the Exchange the Company’s plan (the “Plan”) of actions the Company has taken or will take to regain compliance with the continued listing standards by February 28, 2022 (the “Plan Period”). On November 5, 2020, the Company received a letter from the Exchange advising the Company that the Exchange has accepted the Plan and granted the Plan Period through February 28, 2022. The Exchange will review the Company periodically to determine whether the Company is making progress consistent with the Plan. The Company is working diligently to execute its Plan to regain compliance with the Exchange’s continued listing requirements. The Company had net income of $268,343 for the fiscal year ended March 31, 2021 and a net loss of $5,813,891 for the year ended March 31, 2020. As the Company’s products are sold primarily to the construction industry and do-it-yourself centers, restrictions and limitations imposed by the COVID-19 pandemic have had an impact on the Company’s sales We are not yet able to quantify the full impact of the COVID-19 pandemic on our sales and financial results, but we believe that during the first half of calendar 2020 (our fourth quarter of fiscal 2020 and first quarter of fiscal 2021) sales were negatively impacted by lower sales resulting from steps taken to combat the spread of COVID-19. Sales in our second and third fiscal quarters ended September 30, 2020, and December 31, 2020 increased significantly when compared to sales for the comparable 2019 periods due to the Company’s ability to fill orders from inventory for a large national retailer new customer, when the national retailer’s usual supplier was unable to fill the orders due to delays caused by the pandemic. Our sales growth was also due to sales of two products to another large national retailer which purchased certain of our models as a 1,350 store test, which were completed in the fourth quarter of the fiscal year ending March 31, 2021. Our short-term borrowings to finance operations, trade accounts receivable, and foreign inventory purchases are provided pursuant to the terms of our Factoring Agreement with Merchant. Advances from the Company’s factor, are at the sole discretion of Merchant based on their assessment of the Company’s receivables, inventory and financial condition at the time of each request for an advance. The unused availability of this facility totaled approximately $1,795,000 at March 31, 2021. The Company sold its fifty percent ownership in Eyston effective March 31, 2020. The non-cash proceeds from the sale were used to reduce our trade accounts payable due to Eyston by $4,000,000. In addition, the Company and Eyston agreed to convert $1,081,440 of trade accounts payable to an interest only note payable with a maturity date of April 19, 2022. Until March 31, 2020 we had secured extended payment terms for purchases up to $4,000,000 from Eyston for the purchase of sealed battery alarms. These amounts were unsecured, incurred interest at 5.5% per annum, and provided for repayment terms of 120 days for each purchase. Subsequent to March 31, 2020, Eyston continues to be the Company’s principal supplier of safety alarms and the Company will pay for these purchases upon evidence of shipment from the factory. We anticipate, now that our complete line of sealed smoke and carbon monoxide alarms has been introduced, that these products will compete on price and functionality with similar products offered by our larger competitors. While we believe there will be market acceptance of our products we cannot be assured of this. Should our products not achieve the level of acceptance we anticipate this will have a significant impact on our future operations and potentially impact our ability to continue operations. Prior to the fiscal year ended March 31, 2021 the Company has a history of sales that were insufficient to generate profitable operations, and has limited sources of financing. Management’s plan in response to these conditions continues to be to increase sales resulting from the delivery of the Company’s line of sealed battery ionization smoke alarms, carbon monoxide products, and ground fault circuit interrupters. The Company has seen positive results on this plan due to increased sales of its product offerings to a major home improvement retailer during the second and third quarters of the Company’s fiscal year ended March 31, 2021. This increase in sales has resulted in significant additional availability under the Company’s facility with its Factor. Management expects sales growth to continue going forward. In May, 2020 the Company received a Paycheck Protection Program loan of $221,400 under the CARES Act and the loan was subsequently forgiven in compliance with the provisions of the CARES Act. Though no assurances can be given, if management’s plan continues to be successful over the next twelve months, the Company anticipates that it should be able to meet its cash needs for the next twelve months following the issuance date of this report. Cash flows and credit availability is expected to be adequate to fund operations for one year from the issuance date of this report. |
Line of Credit - Factor
Line of Credit - Factor | 9 Months Ended |
Dec. 31, 2021 | |
Line of Credit - Factor | |
Line of Credit - Factor | Line of Credit – Factor In 2015, the Company entered into a Factoring Agreement (the Agreement) with Merchant for the purpose of factoring the Company’s trade accounts receivable and to provide financing secured by finished goods inventory. Under the Agreement the Company may borrow eighty percent (80%) of eligible accounts receivable. Additional funding, characterized by Merchant as an over advance, may be provided up to one hundred percent (100%) of eligible accounts receivable. The over advance portion, if any, may not exceed fifty percent (50%) of eligible inventory up to a maximum of $500,000. Subject to a temporary modification agreement effective on August 11, 2021, and which subsequently expired on November 30, 2021, the over advance portion, if any, may not exceed fifty percent (50%) of eligible inventory up to a maximum of $1,500,000. The Agreement has been extended and now expires on January 6, 2022, and provides for continuation of the program for successive two year periods until terminated by one of the parties to the Agreement. Subsequent to December 31, 2021, the Company and Merchant have agreed to continue the Agreement on a month-to-month basis pending renewal of the Agreement for another two year period. As of December 31, 2021, the Company had borrowings under the Agreement of approximately $2,357,000, and the Company had availability under the Agreement of approximately $383,000. Advances on factored trade accounts receivable are secured by all of the Company’s trade accounts receivable and inventories, are repaid periodically as collections are made by Merchant but are otherwise due upon demand, and bear interest at the prime commercial rate of interest, as published, plus two percent (Effective rate 5.25% at December 31, 2021). Advances under the factoring agreement are made at the sole discretion of Merchant, based on their assessment of the receivables, inventory and our financial condition at the time of each request for an advance. |
Use of Estimates
Use of Estimates | 9 Months Ended |
Dec. 31, 2021 | |
Use of Estimates | |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with US-GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition | |
Revenue Recognition | Revenue Recognition The Company’s primary source of revenue is the sale of safety and security products based upon purchase orders or contracts with customers. Revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the product is shipped or delivered to the customer. Customers may not return, exchange or refuse acceptance of goods without our approval. Generally, the Company does not grant extended payment terms. Shipping and handling costs associated with outbound freight, after control over a product has transferred to a customer, are accounted for as a fulfillment cost and are recorded in selling, general and administrative expense. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration. The Company uses the expected value method based on historical data in considering the impact of estimates of variable consideration, which may include trade discounts, allowances, product returns (including rights of return) or warranty replacements. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We have established allowances to cover anticipated doubtful accounts based upon historical experience. Disaggregation of Revenue The Company presents below revenue associated with sales of products acquired from Eyston Company Ltd. (Eyston) separately from revenue associated with sales of ground fault circuit interrupters (GFCI’s) and ventilation fans. The Company believes this disaggregation best depicts how our various product lines perform and are affected by economic factors. Revenue recognized by these categories for the three and nine months ended December 31, 2021 and 2020 are as follows: Three months ended Nine months ended Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2020 Sales of products acquired from Eyston $ 4,571,682 $ 4,669,289 $ 13,248,027 $ 12,945,622 Sales of GFCI’s and ventilation fans 747,332 455,461 2,011,208 1,577,191 $ 5,319,014 $ 5,124,750 $ 15,259,235 $ 14,522,813 |
Concentrations
Concentrations | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Concentrations | ||
Concentrations | Concentrations The Company is primarily a distributor of safety products for use in home and business under both its trade names and private labels for other companies. The Company acquires all of the smoke alarm and carbon monoxide alarm safety products that it sells from Eyston Company, Ltd. In addition, the Company had one customer in the three month period ended December 31, 2021 that represented 24.1% of the Company’s net sales, and two customers in the nine month period ended December 31, 2021 that represented 11.8% and 11.1% of the Company’s net sales, respectively. The Company had one customer that had an accounts receivable balance that amounted to 11.2% of the total of accounts receivable and amount due from factor at December 31, 2021. In addition, the Company had one customer in the fiscal quarter ended December 31, 2020 that represented 14.1% of the Company’s net sales. Sales to this one customer represented 26.4% of net sales for the nine months ended December 31, 2020. Related Party Transactions During the three and nine month periods ended December 31, 2021 inventory purchases and other company expenses of approximately $509,000 and $1,332,000 respectively, were charged to credit card accounts of Harvey B. Grossblatt, the Company’s Chief Executive Officer and certain of his immediate family members. During the three and nine month periods ended December 31, 2020 inventory purchases and other company expenses charged to credit card accounts of Mr. Grossblatt and certain of his immediate family members amounted to approximately $379,000 and $746,000, respectively. The Company subsequently reimbursed these charges in full. Mr. Grossblatt receives mileage benefits from these charges. The maximum amount outstanding and due to Mr. Grossblatt at any point during the nine month periods ended December 31, 2021 and 2020 amounted to $210,773 and $134,329, respectively. Receivables Receivables are recorded when the Company has an unconditional right to consideration. We have established allowances to cover anticipated doubtful accounts based upon historical experience. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for satisfied or partially satisfied performance obligations on contracts with an original expected duration of one year or more. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. | NOTE I - CONCENTRATIONS The Company is primarily a distributor of safety products for use in home and business under both its trade names and private labels for other companies. The Company acquires all of the smoke alarm and carbon monoxide alarm safety products that it sells from Eyston Company, Ltd. At March 31, 2021, the Company had receivables due from Eyston Company, Ltd. of $381,401 recorded in trade accounts receivable. The Company had one customer in the fiscal year that ended March 31, 2021 that represented 21.9% of the Company’s net sales and two customers in the fiscal year that ended March 31, 2020 that represented 12.2% and 10.3% of the Company’s net sales, respectively. |
Income Taxes
Income Taxes | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Income Taxes | ||
Income Taxes | Income Taxes We calculate our interim tax provision in accordance with the guidance for accounting for income taxes in interim periods. We estimate the annual effective tax rate and apply that tax rate to our ordinary quarterly pre-tax income. The tax expense or benefit related to discrete events during the interim period is recognized in the interim period in which those events occurred. The Company recognizes a liability or asset for the deferred tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the condensed consolidated financial statements. These temporary differences may result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. The deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided whenever it is more likely than not that a deferred tax asset will not be realized. After a review of projected taxable income and the components of the deferred tax asset in accordance with applicable accounting guidance it was determined that it is more likely than not that the tax benefits associated with the remaining components of the deferred tax assets will not be realized. This determination was made based on the Company’s history of losses from operations and the uncertainty as to whether the Company will generate sufficient taxable income to use the deferred tax assets prior to their expiration. Accordingly, a valuation allowance was established to fully offset the value of the deferred tax assets. Our ability to realize the tax benefits associated with the deferred tax assets depends primarily upon the timing of future taxable income and the expiration dates of the components of the deferred tax assets. If sufficient future taxable income is generated, we may be able to offset a portion of future tax expenses. The Company follows ASC 740-10 which provides guidance for tax positions related to the recognition and measurement of a tax position taken or expected to be taken in a tax return and requires that we recognize in our condensed consolidated financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties, if any, related to income tax matters are recorded as income tax expenses. | NOTE G – INCOME TAXES The Company files its income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Income tax returns filed for the fiscal years ended March 31, 2020, 2019, and 2018 are considered open and subject to examination by tax authorities. Deferred income tax assets and liabilities are computed and recognized for those differences that have future tax consequences and will result in net taxable or deductible amounts in future periods. Deferred tax expense or benefit is the result of changes in the net asset or liability for deferred taxes. The deferred tax liabilities and assets for the Company result primarily from net operating loss and tax credit carry forwards, reserves and accrued liabilities. At March 31, 2021, the Company has total net federal operating loss carry forwards of approximately $5,912,000. There are certain limitations to the use and application of these items. Management reviews net operating loss carry forwards and income tax credit carry forwards to evaluate if those amounts are recoverable. After a review of projected taxable income and the components of the deferred tax assets in accordance with applicable accounting guidance it was determined that it is more likely than not that the tax benefits associated with the remaining components of the deferred tax assets will not be realized. This determination was made based on the Company’s history of losses from operations and the uncertainty as to whether the Company will generate sufficient taxable income to use the deferred tax assets prior to their expiration. Accordingly, a valuation allowance was established to fully offset the value of the deferred tax assets. Our ability to realize the tax benefits associated with the deferred tax assets depends primarily upon the timing of future taxable income and the expiration dates of the components of the deferred tax assets. If sufficient future taxable income is generated, we may be able to offset a portion of future tax expenses. The reconciliation between the statutory federal income tax provision and the actual effective tax provision is as follows: Years ended March 31, 2021 2020 Federal tax (benefit) at statutory rate (21%) before loss carry-forward $ 56,352 $ (1,220,917) Permanent and other differences (33,029) 7,646 State income tax (benefit) – net of federal effect 3,353 (72,000) Expiration of tax credits 129,999 — Change in deferred tax asset valuation allowance (156,675) 1,285,271 $ — $ — The individual components of the Company’s deferred tax assets are as follows: March 31, 2021 2020 Deferred tax assets: Accruals and allowances $ 76,376 $ 39,112 Inventory uniform capitalization 11,027 18,544 Net operating loss carry forward 1,241,522 1,258,433 Foreign tax credit carry forward — 169,511 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (1,390,626) (1,547,301) Net deferred tax asset $ — $ — |
Accounts Receivable and Amount
Accounts Receivable and Amount Due From Factor | 9 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable and Amount Due From Factor | |
Accounts Receivable and Amount Due From Factor | Accounts Receivable and Amount Due from Factor The Company assigns the majority of its short-term receivables arising in the ordinary course of business to our factor. At the time a receivable is assigned to our factor the credit risk associated with the credit worthiness of the debtor is assumed by the factor. The Company continues to bear any credit risk associated with delivery or warranty issues related to the products sold. Management assesses the credit risk of both its trade accounts receivable and its financing receivables based on the specific identification of accounts that have exceeded credit terms. An allowance for uncollectible receivables is provided based on that assessment. Changes in the allowance account are charged to operations in the period the change is determined. Amounts ultimately determined to be uncollectible are eliminated from the receivable accounts and from the allowance account in the period that the receivables’ status is determined to be uncollectible. Based on the nature of the factoring agreement and prior experience, no allowance related to Amounts Due from Factor has been provided. At December 31, 2021 and March 31, 2021, an allowance of approximately $157,000 has been provided for uncollectible trade accounts receivable. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Dec. 31, 2021 | |
Earnings per Common Share | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per common share is computed based on the weighted average number of common shares outstanding plus the effect of stock options and other potentially dilutive common stock equivalents. The dilutive effect of stock options and other potentially dilutive common stock equivalents is determined using the treasury stock method based on the Company’s average stock price. There were no potentially dilutive common stock equivalents outstanding during the nine months ended December 31, 2021 or 2020. As a result, basic and diluted weighted average common shares outstanding are identical for the three and nine months ended December 31, 2021 and 2020. |
Contingencies
Contingencies | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Contingencies | ||
Contingencies | Contingencies From time to time, the Company is involved in various claims and routine litigation matters. In the opinion of management, after consultation with legal counsel, the outcomes of such matters are not anticipated to have a material adverse effect on the Company’s condensed consolidated financial position, results of operations, or cash flows in future years. | NOTE H – COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in various lawsuits and legal matters. It is the opinion of management, based on consultation with legal counsel, that there are no outstanding material claims outside of the normal course of business. The Company’s employment agreement with its CEO (the “CEO Agreement”) requires the Company to make certain post-employment payments to the CEO in the event of his termination following a change in control, death, disability, non-renewal, or resignation with “Good Reason” under terms of the CEO Agreement. Additionally, the CEO Agreement requires the Company to make post-employment payments, which can range from approximately $94,000 to $1,995,000, dependent upon the controlling event, as discussed above. In July, 2020, the Company renewed the CEO Agreement through July 31, 2021. |
Note Payable - Eyston Company L
Note Payable - Eyston Company Ltd. | 9 Months Ended |
Dec. 31, 2021 | |
Note Payable - Eyston Company Ltd. | |
Note Payable - Eyston Company Ltd. | Note Payable - Eyston Company Ltd. Effective March 31, 2020 the Company sold its fifty percent ownership interest in the Hong Kong Joint Venture. On April 19, 2020, the Company converted $1,081,440 of trade accounts payable due to the Hong Kong Joint Venture to an unsecured long-term note payable. Interest is based on the Shanghai Commercial Bank Limited in Hong Kong US Dollar prime rate published on the first day of each calendar month plus 2% (5.25% effective rate at December 31, 2021) and is payable monthly. The principal balance of $1,081,440 is due and payable on April 19, 2022. |
Leases
Leases | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Leases | ||
Leases | Leases The Company is a lessee in lease agreements for office space. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The Company’s leases are comprised of fixed lease payments, with its real estate leases including lease payments subject to a rate or index which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under Accounting Standards Codification “ASC” 842, the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable lease amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. None of the Company’s lease agreements contain any residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term and amounted to approximately $485,000 at the date of adoption. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of use asset also includes any lease payments made at or before lease commencement less any lease incentives. As of December 31, 2021, the Company had right-of-use assets of $43,965 and lease liabilities of $43,965 related to its operating leases. Right-of-use assets are included in property and equipment, net, on the condensed consolidated balance sheet and lease liabilities related to the Company’s operating leases are included in short-term and long-term lease liability on the condensed consolidated balance sheet. As of December 31, 2021 the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases were .25 years and 6.0%, respectively. During the nine months ended December 31, 2021, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was $128,600, which is included as an operating cash outflow within the condensed consolidated statements of cash flows. On November 1, 2021 the Company signed a one year extension for an operating lease for premises to commence March 1, 2022. During the nine months ended December 31, 2021 there were no newly leased assets for which a right-of use asset was recorded in exchange for a new lease liability. The future minimum payments under operating leases were as follows at December 31, 2021 for the fiscal year ending March 31, 2022: 2022 $ 44,329 Total operating lease payments $ 44,329 Less: amounts representing interest (364) Present value of net operating lease payments $ Less: current portion 43,965 Long-term portion of operating lease obligations $ — | NOTE F – LEASES The Company is a lessee in lease agreements for office space. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The Company’s leases are comprised of fixed lease payments, with its real estate leases including lease payments subject to a rate or index which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under ASC 842, the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable lease amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. During January 2009, the Company entered into an operating lease for its office and warehouse location in Owings Mills, Maryland which was set to expire in March 2019. In October, 2018, we extended this operating lease to expire in April 2022. This lease is subject to increasing rentals at 2.5% per year. The Company renewed its operating lease through February 2022 for a 3,400 square foot office in Naperville, Illinois. Included are 3 one Our operating leases for real estate are generally renewable with terms and conditions similar to the original lease. Rent expense, including common area maintenance, totaled $239,557 and $208,734 for the years ended March 31, 2021 and 2020, respectively. None of the Company’s lease agreements contain any residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements in existence at the date of adoption that were classified as operating leases under ASC 840 have been classified as operating leases under ASC 842. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term and amounted to approximately $485,000 at the date of adoption. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of use asset also includes any lease payments made at or before lease commencement less any lease incentives. As of March 31, 2021, the Company had right-of-use assets of $171,122 and lease liabilities of $171,122 related to its operating leases. Right-of-use assets are included in property and equipment, net, on the consolidated balance sheet and lease liabilities related to the Company’s operating leases are included in short-term and long-term lease liability on the consolidated balance sheet. As of March 31, 2021 the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases is one year and 6.0%, respectively. During the fiscal year ended March 31, 2021, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was $173,622, which is included as an operating cash outflow within the consolidated statements of cash flows. During the fiscal year ended March 31, 2021, the operating lease costs related to the Company’s operating leases was $173,622 which is included in operating costs and expenses in the consolidated statements of operations. During the fiscal years ended March 31, 2021 and 2020, the Company did not enter into any material lease agreements set to commence in the future and there were no newly leased assets for which a right-of use asset was recorded in exchange for a new lease liability, other than th o The future minimum payments under operating leases were as follows at March 31, 2021: 2022 $ 175,792 2023 — Total operating lease payments $ 175,792 Less: amounts representing interest (4,670) Present value of net operating lease payments $ 171,122 Less: current portion — Long-term portion of operating lease obligations $ 171,122 |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 9 Months Ended |
Dec. 31, 2021 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Changes to US-GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASU’s. Management determined that recently issued ASU’s did not have a material impact on the consolidated financial statements at December 31, 2021. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Revenue Recognition | ||
Schedule of revenue recognized by these categories | Three months ended Nine months ended Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2020 Sales of products acquired from Eyston $ 4,571,682 $ 4,669,289 $ 13,248,027 $ 12,945,622 Sales of GFCI’s and ventilation fans 747,332 455,461 2,011,208 1,577,191 $ 5,319,014 $ 5,124,750 $ 15,259,235 $ 14,522,813 | disaggregation best depicts how our various product lines perform and are affected by economic factors. Revenue recognized by these categories for the fiscal years ended March 31, 2021 and 2020 are as follows: Fiscal Year ended March 31, 2021 March 31, 2020 Sales of safety alarms $ 15,218,162 $ 13,098,923 Sales of GFCI’s and ventilation fans 2,301,989 1,704,101 $ 17,520,151 $ 14,803,024 |
Leases (Tables)
Leases (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Leases | ||
Summary of future minimum payments under operating leases | The future minimum payments under operating leases were as follows at December 31, 2021 for the fiscal year ending March 31, 2022: 2022 $ 44,329 Total operating lease payments $ 44,329 Less: amounts representing interest (364) Present value of net operating lease payments $ Less: current portion 43,965 Long-term portion of operating lease obligations $ — | The future minimum payments under operating leases were as follows at March 31, 2021: 2022 $ 175,792 2023 — Total operating lease payments $ 175,792 Less: amounts representing interest (4,670) Present value of net operating lease payments $ 171,122 Less: current portion — Long-term portion of operating lease obligations $ 171,122 |
Liquidity and Management Plans
Liquidity and Management Plans (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 31, 2020 | Dec. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Aug. 31, 2020 | |
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||
Failure to maintain stockholders' equity after reporting losses from continuing operations and/or net losses | $ 6,000,000 | ||||
Unused availability of facility | $ 2,357,000 | ||||
Spread on variable interest rate (as a percent) | 2.00% | ||||
Trade accounts receivable net | $ 878,000 | ||||
Prime Rate | |||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||
Spread on variable interest rate (as a percent) | 2.00% | ||||
Hong Kong Joint Venture | |||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||
Unused availability of facility | $ 383,000 | $ 1,795,000 | |||
Reduce trade accounts payable | $ 4,000,000 | ||||
Trade accounts payable converted to an unsecured long-term note payable | $ 1,081,440 | ||||
Line of Credit Facility, Interest Rate at Period End | 5.50% | ||||
Repayment term for each advance | 120 days | ||||
Paycheck Protection Program loan | |||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||
Proceeds from debt | $ 221,400 |
Line of Credit - Factor (Detail
Line of Credit - Factor (Details) - USD ($) | Aug. 11, 2021 | Jan. 15, 2015 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Line of Credit Facility [Line Items] | |||||
Percentage of maximum borrowing capacity of eligible accounts receivables under the line of credit | 80.00% | ||||
Over advance percentage of maximum borrowing capacity of eligible accounts receivables under the line of credit | 100.00% | ||||
Over advance maximum percentage of maximum borrowing capacity of eligible accounts receivables under the line of credit | 50.00% | 50.00% | |||
Line of credit facility, capacity available for trade purchases | $ 1,500,000 | $ 500,000 | |||
Accounts receivables factoring agreement term | 2 years | ||||
Line of credit facility, remaining borrowing capacity | $ 2,357,000 | ||||
Long-term line of credit | $ 383,000 | ||||
Variable rate on the debt instrument (as a percent) | 2.00% | ||||
Effective interest rate (as a percent) | 5.25% | ||||
Hong Kong Joint Venture | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, capacity available for trade purchases | $ 4,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 383,000 | $ 1,795,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 |
Sales of products acquired from our HKJV | |||||||||||||
Revenues | 15,218,162 | 13,098,923 | |||||||||||
Products Acquired From Eyston Company Ltd. | |||||||||||||
Revenues | 4,571,682 | 4,669,289 | 13,248,027 | 12,945,622 | |||||||||
Sales of GFCI's and ventilation fans | |||||||||||||
Revenues | $ 747,332 | $ 455,461 | $ 2,011,208 | $ 1,577,191 | $ 2,301,989 | $ 1,704,101 |
Concentrations (Details)
Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Purchase Of Inventory And Other Company | $ 509,000 | $ 379,000 | $ 1,332,000 | $ 746,000 | ||
Maximum Amount Outstanding | $ 210,773 | $ 134,329 | ||||
Trade Accounts Receivable | ||||||
Receivables due from Eyston Company, Ltd. | $ 381,401 | |||||
One Customer | Sales Revenue, Net | Customer Concentration Risk | ||||||
Concentration risk, percentage | 24.10% | 14.10% | 11.10% | 26.40% | 21.90% | 12.20% |
One Customer | Sales Revenue, Net | Trade Accounts Receivable | Customer Concentration Risk | ||||||
Concentration risk, percentage | 11.20% | |||||
Two Customer | Sales Revenue, Net | Customer Concentration Risk | ||||||
Concentration risk, percentage | 11.80% | 10.30% |
Accounts Receivable and Amoun_2
Accounts Receivable and Amount Due From Factor (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Accounts Receivable and Amount Due From Factor | ||
Amount of uncollectible trade accounts receivable | $ 157,000 | $ 157,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per Common Share | ||
Number of potentially dilutive common stock equivalents outstanding | 0 | 0 |
Note Payable - Eyston Company_2
Note Payable - Eyston Company Ltd. (Details) | Apr. 19, 2020USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020USD ($) |
Note Payable - Eyston Company Ltd. | ||||
Spread on variable interest rate (as a percent) | 2.00% | |||
Effective interest rate (as a percent) | 5.25% | |||
Prime Rate | ||||
Note Payable - Eyston Company Ltd. | ||||
Spread on variable interest rate (as a percent) | 2.00% | |||
Unsecured long-term interest only note payable | ||||
Note Payable - Eyston Company Ltd. | ||||
Trade accounts payable converted to an unsecured long-term note payable | $ 1,081,440 | $ 1,081,440 | ||
Effective interest rate (as a percent) | 5.25% | 5.25% | ||
Principal balance due and payable | $ 1,081,440 | |||
Unsecured long-term interest only note payable | Prime Rate | ||||
Note Payable - Eyston Company Ltd. | ||||
Spread on variable interest rate (as a percent) | 2.00% | 2.00% | ||
Hong Kong Joint Venture | Disposed by sale | ||||
Note Payable - Eyston Company Ltd. | ||||
Ownership interest disposed | 50 | 50 |
Leases (Details)
Leases (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Future minimum payments under operating leases | |||
2022 | $ 44,329 | $ 175,792 | |
Total operating lease payments | 44,329 | 175,792 | |
Less: amounts representing interest | (364) | (4,670) | |
Present value of net operating lease payments | 43,965 | 171,122 | $ 329,698 |
Less: current portion | $ 43,965 | 171,122 | 158,578 |
Long-term portion of operating lease obligations | $ 171,122 | $ 171,120 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2009 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||||
Lease, Practical Expedients, Package [true false] | true | true | ||
Non Cash Right Of Use Asset In Exchange For Operating Lease Liability | $ 485,000 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 485,000 | $ 485,948 | ||
Right-of-use assets | 43,965 | $ 171,122 | 329,698 | |
Lease liabilities | $ 43,965 | $ 171,122 | $ 329,698 | |
Weighted-average remaining lease term | 25 years | 1 year | 2 years | |
Weighted-average discount rate | 6.00% | 6.00% | 6.00% | |
Cash paid for amounts included in measurement of lease liabilities | $ 128,600 | $ 173,622 | $ 160,605 | |
Operating lease costs | $ 173,622 | $ 160,605 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
CURRENT ASSETS | |||||||||
Cash | $ 387,223 | $ 160,604 | $ 93,794 | ||||||
Accounts receivable: | |||||||||
Trade, less allowance for doubtful accounts | 877,960 | 653,172 | 109,548 | ||||||
Receivables from employees | 7,250 | 5,000 | 36,876 | ||||||
Accounts, Notes, Loans and Financing Receivable, Net, Current | 885,210 | 658,172 | 146,424 | ||||||
Amount due from factor | 3,355,802 | 1,925,291 | 2,300,109 | ||||||
Inventories - finished goods | 5,123,468 | 4,181,193 | 5,123,959 | ||||||
Prepaid expenses | 202,669 | 336,699 | 113,145 | ||||||
TOTAL CURRENT ASSETS | 9,954,372 | 7,261,959 | 7,777,431 | ||||||
INTANGIBLE ASSETS - NET | 41,363 | 44,717 | 49,189 | ||||||
PROPERTY AND EQUIPMENT - NET | 53,920 | 184,678 | 346,477 | ||||||
OTHER ASSETS | 4,000 | 4,000 | 4,000 | ||||||
TOTAL ASSETS | 10,053,655 | 7,495,354 | 8,177,097 | ||||||
CURRENT LIABILITIES | |||||||||
Line of credit - factor | 2,357,431 | 18,904 | 1,561,665 | ||||||
Note payable - Eyston Company Ltd. | 1,081,440 | ||||||||
Short-term portion of operating lease liability | 43,965 | 171,122 | 158,578 | ||||||
Accounts payable - trade | 443,032 | 509,561 | 505,904 | ||||||
Accounts payable - Eyston Company Ltd. | 1,002,385 | 755,148 | 266,409 | ||||||
Accrued liabilities: | |||||||||
Accrued payroll and employee benefits | 139,217 | 103,381 | 136,683 | ||||||
Accrued commissions and other | 111,941 | 139,242 | 88,694 | ||||||
TOTAL CURRENT LIABILITIES | 5,179,411 | 1,697,358 | 2,717,933 | ||||||
NOTE PAYABLE - Eyston Company Ltd. | 1,081,440 | ||||||||
ACCOUNTS PAYABLE - Eyston Company Ltd. - noncurrent | 1,081,440 | 839,831 | |||||||
LONG-TERM PORTION OF OPERATING LEASE LIABILITY | 171,122 | 171,120 | |||||||
TOTAL LONG-TERM LIABILITIES | 1,081,440 | 1,010,951 | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Common stock, $.01 par value per share; 20,000,000 shares authorized, 2,312,887 shares issued and outstanding at March 31, 2021 and 2020 | 23,129 | 23,129 | 23,129 | ||||||
Additional paid-in capital | 12,885,841 | 12,885,841 | 12,885,841 | ||||||
Accumulated Deficit | (8,034,726) | (8,192,414) | (8,460,757) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 4,874,244 | $ 4,838,893 | $ 4,731,197 | 4,716,556 | $ 5,173,394 | $ 5,095,076 | $ 4,369,231 | 4,448,213 | $ 10,873,860 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 10,053,655 | $ 7,495,354 | $ 8,177,097 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,312,887 | 2,312,887 | 2,312,887 |
Common stock, shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||
Net sales | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 | ||
Cost of goods sold - acquired from Joint Venture | 10,009,571 | ||||||||||||||
Cost of goods sold - other | 3,602,391 | 3,604,427 | 10,708,109 | 9,821,319 | 11,880,442 | 1,034,599 | |||||||||
GROSS PROFIT | 1,716,623 | 938,215 | 1,520,323 | 2,104,028 | 1,077,143 | 653,687 | 769,992 | 1,090,346 | 1,244,829 | 4,551,126 | 4,701,494 | 5,639,709 | 3,758,854 | ||
Selling, general and administrative expense | 1,569,746 | 1,321,311 | 4,059,988 | 3,572,189 | 5,034,380 | 4,628,881 | |||||||||
Research and development expense | 97,370 | 106,608 | 295,496 | 332,276 | 471,545 | 691,886 | |||||||||
Operating income | 49,507 | 92,404 | 195,642 | 797,029 | 133,784 | (1,561,913) | |||||||||
Other income (expense): | |||||||||||||||
Forgiveness of debt - PPP Loan | 221,400 | ||||||||||||||
Loss from investment in Hong Kong Joint Venture | (3,842,275) | ||||||||||||||
Interest expense, net | (14,156) | (14,086) | (37,954) | (71,848) | (86,841) | (409,703) | |||||||||
Earnings (Loss) before income taxes | 268,343 | (5,813,891) | |||||||||||||
NET INCOME | $ 35,351 | $ 107,696 | $ 14,641 | $ (456,838) | $ 78,318 | $ 725,845 | $ (78,982) | $ (3,492,290) | $ (1,011,833) | $ (700,814) | $ (608,954) | $ 157,688 | $ 725,181 | $ 268,343 | $ (5,813,891) |
Earnings (Loss) per share: | |||||||||||||||
Basic per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) | ||
Diluted per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) | ||
Shares used in computing net earnings (loss) per share: | |||||||||||||||
Weighted average basic shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | |||||||||
Weighted average diluted shares outstanding | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
NET INCOME (LOSS) | $ 268,343 | $ (5,813,891) |
Other Comprehensive Loss Company's Portion of Hong Kong Joint Venture's Other Comprehensive Loss: | ||
Currency translation loss | (134,151) | |
Unrealized loss on investment securities | (50,397) | |
Less: Reclassification adjustment for net gain included in loss | (427,208) | |
Total Other Comprehensive Loss | (611,756) | |
COMPREHENSIVE INCOME (LOSS) | $ 268,343 | $ (6,425,647) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accum. Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2019 | $ 23,129 | $ 12,885,841 | $ (2,646,866) | $ 611,756 | $ 10,873,860 |
Balance (in shares) at Mar. 31, 2019 | 2,312,887 | ||||
Currency translation loss | (134,151) | (134,151) | |||
Unrealized loss on investment securities | (50,397) | (50,397) | |||
Less: Reclassification adjustment for net gain included in loss | $ (427,208) | (427,208) | |||
Net Income (Loss) | (5,813,891) | (5,813,891) | |||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | (78,982) | (78,982) | |||
Balance at Jun. 30, 2020 | $ 23,129 | 12,885,841 | (8,539,739) | 4,369,231 | |
Balance (in shares) at Jun. 30, 2020 | 2,312,887 | ||||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | 725,181 | ||||
Balance at Dec. 31, 2020 | $ 23,129 | 12,885,841 | (7,735,576) | 5,173,394 | |
Balance (in shares) at Dec. 31, 2020 | 2,312,887 | ||||
Balance at Mar. 31, 2020 | $ 23,129 | 12,885,841 | (8,460,757) | 4,448,213 | |
Balance (in shares) at Mar. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | 268,343 | 268,343 | |||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Balance at Jun. 30, 2020 | $ 23,129 | 12,885,841 | (8,539,739) | 4,369,231 | |
Balance (in shares) at Jun. 30, 2020 | 2,312,887 | ||||
Net Income (Loss) | 725,845 | 725,845 | |||
Balance at Sep. 30, 2020 | $ 23,129 | 12,885,841 | (7,813,894) | 5,095,076 | |
Balance (in shares) at Sep. 30, 2020 | 2,312,887 | ||||
Net Income (Loss) | 78,318 | 78,318 | |||
Balance at Dec. 31, 2020 | $ 23,129 | 12,885,841 | (7,735,576) | 5,173,394 | |
Balance (in shares) at Dec. 31, 2020 | 2,312,887 | ||||
Net Income (Loss) | (456,838) | ||||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Net Income (Loss) | 14,641 | 14,641 | |||
Balance at Jun. 30, 2021 | $ 23,129 | 12,885,841 | (8,177,773) | 4,731,197 | |
Balance (in shares) at Jun. 30, 2021 | 2,312,887 | ||||
Balance at Mar. 31, 2021 | $ 23,129 | 12,885,841 | (8,192,414) | 4,716,556 | |
Balance (in shares) at Mar. 31, 2021 | 2,312,887 | ||||
Net Income (Loss) | 157,688 | ||||
Balance at Dec. 31, 2021 | $ 23,129 | 12,885,841 | (8,034,726) | 4,874,244 | |
Balance (in shares) at Dec. 31, 2021 | 2,312,887 | ||||
Balance at Jun. 30, 2021 | $ 23,129 | 12,885,841 | (8,177,773) | 4,731,197 | |
Balance (in shares) at Jun. 30, 2021 | 2,312,887 | ||||
Net Income (Loss) | 107,696 | 107,696 | |||
Balance at Sep. 30, 2021 | $ 23,129 | 12,885,841 | (8,070,077) | 4,838,893 | |
Balance (in shares) at Sep. 30, 2021 | 2,312,887 | ||||
Net Income (Loss) | 35,351 | 35,351 | |||
Balance at Dec. 31, 2021 | $ 23,129 | $ 12,885,841 | $ (8,034,726) | $ 4,874,244 | |
Balance (in shares) at Dec. 31, 2021 | 2,312,887 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES: | ||||
Net Income (Loss) | $ 157,688 | $ 725,181 | $ 268,343 | $ (5,813,891) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 6,955 | 6,532 | 7,695 | 7,690 |
Forgiveness of debt - Paycheck Protection Program | (221,400) | |||
Depreciation of right-of-use asset | 158,576 | 156,250 | ||
Increase in allowance for doubtful accounts receivable | 100,000 | |||
Loss from investment in Hong Kong Joint Venture | 3,842,275 | |||
Changes in operating assets and liabilities: | ||||
Increase in accounts receivable and amounts due from factor | (1,657,549) | (1,017,400) | (236,930) | 568,879 |
Decrease in inventories | 942,766 | 1,728,346 | ||
(Increase) Decrease in inventories, prepaid expenses, and other | (808,245) | 2,018,807 | ||
(Increase) Decrease in prepaid expenses | (223,554) | 32,045 | ||
Increase (Decrease) in accounts payable and accrued expenses | 189,243 | 94,255 | 751,252 | (356,096) |
Decrease in operating lease liability | (158,576) | (156,250) | ||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (2,111,908) | 1,827,375 | 1,388,172 | 9,248 |
FINANCING ACTIVITIES: | ||||
Proceeds from - Paycheck Protection Program | 221,400 | |||
Net repayment of line of credit - factor | 2,338,527 | (1,561,665) | (1,542,762) | (289,926) |
Note payable - Commercial Bank | 221,400 | |||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 2,338,527 | (1,340,265) | (1,321,362) | (289,926) |
NET INCREASE IN CASH | 226,619 | 487,110 | 66,810 | (280,678) |
Cash at beginning of period | 160,604 | 93,794 | 93,794 | 374,472 |
CASH AT END OF PERIOD | 387,223 | 580,904 | 160,604 | 93,794 |
Supplemental information: | ||||
Interest paid | $ 37,954 | 68,174 | 82,184 | 496,250 |
Supplemental disclosures of non-cash activities: | ||||
Right-of-use asset in exchange for operating lease liability | 485,948 | |||
Conversion of trade accounts payable to note payable | $ 1,081,440 | $ 1,081,440 | ||
Reduction in trade accounts payable to Eyston Co. Ltd. arising from the sale of the Hong Kong Joint Venture | $ 4,000,000 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Principles of Consolidation: Use of Estimates: Cash: Revenue Recognition: The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration. The Company uses the expected value method based on historical data in considering the impact of estimates of variable consideration, which may include trade discounts, allowances, product returns (including rights of return) or warranty replacements. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Disaggregation of Revenue: The Company presents below revenue associated with sales of safety alarm products separately from revenue associated with sales of ground fault circuit interrupters (GFCI’s) and ventilation fans. The Company believes this disaggregation best depicts how our various product lines perform and are affected by economic factors. Revenue recognized by these categories for the fiscal years ended March 31, 2021 and 2020 are as follows: Fiscal Year ended March 31, 2021 March 31, 2020 Sales of safety alarms $ 15,218,162 $ 13,098,923 Sales of GFCI’s and ventilation fans 2,301,989 1,704,101 $ 17,520,151 $ 14,803,024 Accounts Receivable: The Company assigns the majority of its trade receivables on a pre-approved non-recourse basis to Merchant Factors Corporation (Merchant or Factor) under a factoring agreement on an ongoing basis. Factoring charges recognized on assignment of receivables are deducted from revenue in the consolidated statements of operations and amounted to $154,267 and $118,141 for the years ended March 31, 2021 and 2020, respectively. Management considers amounts due from the Company’s factor to be “financing receivables”. Trade accounts receivable, foreign receivables, and receivables from our suppliers are not considered to be financing receivables. At the time a receivable is assigned to our factor, the credit risk associated with the credit worthiness of the debtor is assumed by the factor. The Company continues to bear any credit risk associated with delivery or warranty issues related to the products sold. Management assesses the credit risk of both its trade accounts receivable and its financing receivables based on the specific identification of accounts that have exceeded credit terms. An allowance for uncollectible receivables is provided based on that assessment. Changes in the allowance account from one accounting period to the next are charged to operations in the period the change is determined. Amounts ultimately determined to be uncollectible are eliminated from the receivable accounts and from the allowance account in the period that the receivables’ status is determined to be uncollectible. Based on the nature of the factoring agreement and prior experience, no allowance for uncollectible financing receivables has been provided and no amounts are considered to be past due at March 31, 2021. At March 31, 2021 and 2020, respectively, an allowance of $157,000 and $57,000 has been provided for uncollectible trade accounts receivable. Inventories: Impairment of long-lived assets Leases: Income Taxes: The Company follows Accounting Standards Codification (ASC) 740-10 that gives guidance to tax positions related to the recognition and measurement of a tax position taken or expected to be taken in a tax return and requires that we recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties, if any, related to income tax matters are recorded as income tax expenses. See Note G, Income Taxes. Warranties: Research and Development: Shipping and Handling Fees and Costs: Foreign currency The reclassification of the realized gain from other comprehensive income is included in the loss from investment in the Hong Kong Joint Venture in the Consolidated Statements of Operations for the fiscal year ended March 31, 2020. Net Earnings (Loss) per Share: Recently Issued Accounting Standards: Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments |
LIQUIDITY AND MANAGEMENT'S PLAN
LIQUIDITY AND MANAGEMENT'S PLAN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Liquidity and Management Plans | ||
LIQUIDITY AND MANAGEMENT'S PLAN | Liquidity and As the Company previously reported, on August 31, 2020, the Company received a letter from NYSE American LLC (the “Exchange”) stating that the Exchange has determined that the Company is not in compliance with the Exchange’s continued listing requirements as the result of the Company’s failure to maintain stockholders’ equity of $6.0 million after reporting losses from continuing operations and/or net losses in its five most recent fiscal years. On October 1, 2021, the Company received a letter from the Exchange notifying the Company that it is now in compliance with all of the continued listing standards of the Exchange and that the Company has resolved the continued listing deficiency previously referenced. As our products are sold primarily to the construction industry and do-it-yourself centers, restrictions and limitations imposed by the COVID-19 pandemic have had an impact on the Company’s sales. We are not yet able to quantify the full impact of the COVID-19 pandemic on our sales and financial results, but we believe that sales, customs charges, and freight costs were negatively impacted by delays in freight forwarding from ports of entry in California due to delays related to issues with COVID-19. Our short-term borrowings to finance any operating losses, trade accounts receivable, and foreign inventory purchases are provided pursuant to the terms of its Factoring Agreement with Merchant Factors Corporation (Merchant or Factor). Borrowings under the Factoring Agreement bear interest at prime plus 2% and are secured by trade accounts receivable and inventory. Advances from Merchant are at the sole discretion of Merchant based on Merchant’s assessment of the Company’s receivables, inventory and financial condition at the time of each request for an advance. The unused availability of this facility totaled approximately $383,000 at December 31, 2021. The Company’s non-factored trade accounts receivable net of allowance for uncollectible amounts totaled approximately $878,000 at December 31, 2021 . | NOTE B – LIQUIDITY AND MANAGEMENT’S PLAN As the Company previously reported, on August 31, 2020, the Company received a letter from NYSE American LLC (the “Exchange”) stating that the Exchange has determined that the Company is not in compliance with the Exchange’s continued listing requirements as the result of the Company’s failure to maintain stockholders’ equity of $6.0 million after reporting losses from continuing operations and/or net losses in its five most recent fiscal years. On September 23, 2020, the Company submitted to the Exchange the Company’s plan (the “Plan”) of actions the Company has taken or will take to regain compliance with the continued listing standards by February 28, 2022 (the “Plan Period”). On November 5, 2020, the Company received a letter from the Exchange advising the Company that the Exchange has accepted the Plan and granted the Plan Period through February 28, 2022. The Exchange will review the Company periodically to determine whether the Company is making progress consistent with the Plan. The Company is working diligently to execute its Plan to regain compliance with the Exchange’s continued listing requirements. The Company had net income of $268,343 for the fiscal year ended March 31, 2021 and a net loss of $5,813,891 for the year ended March 31, 2020. As the Company’s products are sold primarily to the construction industry and do-it-yourself centers, restrictions and limitations imposed by the COVID-19 pandemic have had an impact on the Company’s sales We are not yet able to quantify the full impact of the COVID-19 pandemic on our sales and financial results, but we believe that during the first half of calendar 2020 (our fourth quarter of fiscal 2020 and first quarter of fiscal 2021) sales were negatively impacted by lower sales resulting from steps taken to combat the spread of COVID-19. Sales in our second and third fiscal quarters ended September 30, 2020, and December 31, 2020 increased significantly when compared to sales for the comparable 2019 periods due to the Company’s ability to fill orders from inventory for a large national retailer new customer, when the national retailer’s usual supplier was unable to fill the orders due to delays caused by the pandemic. Our sales growth was also due to sales of two products to another large national retailer which purchased certain of our models as a 1,350 store test, which were completed in the fourth quarter of the fiscal year ending March 31, 2021. Our short-term borrowings to finance operations, trade accounts receivable, and foreign inventory purchases are provided pursuant to the terms of our Factoring Agreement with Merchant. Advances from the Company’s factor, are at the sole discretion of Merchant based on their assessment of the Company’s receivables, inventory and financial condition at the time of each request for an advance. The unused availability of this facility totaled approximately $1,795,000 at March 31, 2021. The Company sold its fifty percent ownership in Eyston effective March 31, 2020. The non-cash proceeds from the sale were used to reduce our trade accounts payable due to Eyston by $4,000,000. In addition, the Company and Eyston agreed to convert $1,081,440 of trade accounts payable to an interest only note payable with a maturity date of April 19, 2022. Until March 31, 2020 we had secured extended payment terms for purchases up to $4,000,000 from Eyston for the purchase of sealed battery alarms. These amounts were unsecured, incurred interest at 5.5% per annum, and provided for repayment terms of 120 days for each purchase. Subsequent to March 31, 2020, Eyston continues to be the Company’s principal supplier of safety alarms and the Company will pay for these purchases upon evidence of shipment from the factory. We anticipate, now that our complete line of sealed smoke and carbon monoxide alarms has been introduced, that these products will compete on price and functionality with similar products offered by our larger competitors. While we believe there will be market acceptance of our products we cannot be assured of this. Should our products not achieve the level of acceptance we anticipate this will have a significant impact on our future operations and potentially impact our ability to continue operations. Prior to the fiscal year ended March 31, 2021 the Company has a history of sales that were insufficient to generate profitable operations, and has limited sources of financing. Management’s plan in response to these conditions continues to be to increase sales resulting from the delivery of the Company’s line of sealed battery ionization smoke alarms, carbon monoxide products, and ground fault circuit interrupters. The Company has seen positive results on this plan due to increased sales of its product offerings to a major home improvement retailer during the second and third quarters of the Company’s fiscal year ended March 31, 2021. This increase in sales has resulted in significant additional availability under the Company’s facility with its Factor. Management expects sales growth to continue going forward. In May, 2020 the Company received a Paycheck Protection Program loan of $221,400 under the CARES Act and the loan was subsequently forgiven in compliance with the provisions of the CARES Act. Though no assurances can be given, if management’s plan continues to be successful over the next twelve months, the Company anticipates that it should be able to meet its cash needs for the next twelve months following the issuance date of this report. Cash flows and credit availability is expected to be adequate to fund operations for one year from the issuance date of this report. |
INVESTMENT IN THE HONG KONG JOI
INVESTMENT IN THE HONG KONG JOINT VENTURE | 12 Months Ended |
Mar. 31, 2021 | |
INVESTMENT IN THE HONG KONG JOINT VENTURE | |
INVESTMENT IN THE HONG KONG JOINT VENTURE | NOTE C – INVESTMENT IN THE HONG KONG JOINT VENTURE The Company held a fifty percent interest in Eyston Company Limited, the Hong Kong Joint Venture, which has manufacturing facilities in the People’s Republic of China, for the manufacturing of certain of our electronic and electrical products. The Company sold its fifty percent interest in the Hong Kong Joint Venture in exchange for $4,000,000. The Company recorded a loss related to the sale of the Company’s investment in the Hong Kong Joint Venture of $2,472,620, and a loss from its equity share of the Hong Kong Joint Venture’s net loss for the year ended March 31, 2020 of $1,369,655. The combined loss is recorded as the loss from investment in the Hong Kong Joint Venture on the Consolidated Statements of Operations for the year ended March 31, 2020. The proceeds of the sale were used to reduce our outstanding trade account payable balance owed to the Hong Kong Joint Venture. There are no material differences between US-GAAP and those used by the Hong Kong Joint Venture. The following represents summarized financial information derived from the financial statements of the Hong Kong Joint Venture for the fiscal year ended March 31, 2020. For the Year Ended March 31, 2020 Net Sales $ 8,054,070 Gross Profit 276,787 Net Loss (3,235,107) During the year ended March 31, 2021 and 2020, the Company purchased $7,612,131 and $7,335,646, respectively, of finished product from Eyston, which represented 77.6% and 82.7%, respectively, of the Company’s total finished product purchases. Effective March 31, 2020, the Company sold its fifty percent ownership interest in the Hong Kong Joint Venture and converted $1,081,440 of trade accounts payable due to the Hong Kong Joint Venture to an unsecured long-term interest only note payable with the principal balance due in April 2022. Interest is based on the Shanghai Commercial Bank Limited in Hong Kong US Dollar prime rate published on the first day of each calendar month plus 2% (5.25% effective rate at March 31, 2020) and is payable monthly. For the fiscal year ended March 31, 2020 the Company had secured extended payment terms for purchases up to $4,000,000 from Eyston for the purchase of sealed battery alarms. These amounts were unsecured, incurred interest at 5.5% per annum, and provided for repayment terms of 120 days for each purchase. |
SHORT-TERM BORROWINGS AND CREDI
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2021 | |
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | |
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | NOTE D – SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS On January 15, 2015, the Company entered into an Agreement with Merchant for the purpose of factoring the Company’s trade accounts receivable and to provide financing secured by finished goods inventory. Under the modified Agreement the Company may borrow eighty percent (80%) of eligible accounts receivable. Additional funding, characterized by Merchant as an over advance, may be provided up to one hundred percent (100%) of eligible accounts receivable. The over advance portion, if any, may not exceed fifty percent (50%) of eligible inventory up to a maximum of $500,000. The Agreement which was extended and expires on January 6, 2022, provides for continuation of the program for successive two year periods until terminated by one of the parties to the Agreement. The amount available to borrow from Merchant is approximately $1,795,000 and $738,000 at March 31, 2021 and 2020, respectively. Advances on factored trade accounts receivable and borrowing on inventories are secured by all of the Company’s trade accounts receivable and inventories, are repaid periodically as collections are made by Merchant but are otherwise due upon demand, and bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 5.25% at March 31, 2021 and March 31, 2020). Advances under the Agreement are made at the sole discretion of Merchant, based on their assessment of the receivables, inventory and our financial condition at the time of each request for an advance. At March 31, 2021 and 2020 there was $18,904 and $1,561,665 borrowed and outstanding under the factoring agreement, respectively. Under the Agreement, the Company assigned receivables of $17,003,317 and $14,162,999 during the years ended March 31, 2021 and 2020, respectively. The uncollected balance of non-recourse receivables held by the factor amounted to $1,925,291 and $2,300,109 at March 31, 2021 and 2020. Collected cash maintained on deposit at March 31, 2021 and 2020 with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 0.75% and 0.75% at March 31, 2021 and 2020, respectively.) There was no cash on deposit with the Factor at March 31, 2021 or 2020. In May, 2020 the Company received a Paycheck Protection Program loan of $221,400 under the CARES Act and during the fiscal year ended March 31, 2021, the loan was forgiven in compliance with the provisions of the CARES Act. |
PROPERTY AND EQUIPMENT - NET
PROPERTY AND EQUIPMENT - NET | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT - NET | |
PROPERTY AND EQUIPMENT - NET | NOTE E – PROPERTY AND EQUIPMENT - NET Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided by using the straight-line method based on estimated useful lives. Expenditures for major betterments that extend the useful life of property and equipment are capitalized. Repair and maintenance costs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in the results of operations. The estimated useful lives for financial reporting purposes are as follows: Leasehold improvements -Shorter of term of lease or useful life of asset Machinery and equipment -5 Furniture and fixtures -5 Computer equipment -5 years Property and equipment consist of the following: March 31, 2021 2020 Leasehold improvements $ 652,670 $ 652,670 Machinery and equipment 190,400 190,400 Furniture and fixtures 261,292 261,292 Computer equipment 302,634 302,634 1,406,996 1,406,996 Less accumulated depreciation (1,222,318) (1,060,519) $ 184,678 $ 346,477 Depreciation expense totaled $161,799, which includes $158,576 of amortization of right-of-use lease asset, and $159,469 which included $156,250 of amortization of right-of-use lease asset for fiscal years ended March 31, 2021 and 2020, respectively. Right-of-use lease assets of $171,122 and $329,698, net, are included in leasehold improvements in Property and Equipment on the Consolidated Balance Sheets as of March 31, 2021 and 2020, respectively. |
LEASES_2
LEASES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Leases | ||
LEASES | Leases The Company is a lessee in lease agreements for office space. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The Company’s leases are comprised of fixed lease payments, with its real estate leases including lease payments subject to a rate or index which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under Accounting Standards Codification “ASC” 842, the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable lease amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. None of the Company’s lease agreements contain any residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term and amounted to approximately $485,000 at the date of adoption. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of use asset also includes any lease payments made at or before lease commencement less any lease incentives. As of December 31, 2021, the Company had right-of-use assets of $43,965 and lease liabilities of $43,965 related to its operating leases. Right-of-use assets are included in property and equipment, net, on the condensed consolidated balance sheet and lease liabilities related to the Company’s operating leases are included in short-term and long-term lease liability on the condensed consolidated balance sheet. As of December 31, 2021 the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases were .25 years and 6.0%, respectively. During the nine months ended December 31, 2021, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was $128,600, which is included as an operating cash outflow within the condensed consolidated statements of cash flows. On November 1, 2021 the Company signed a one year extension for an operating lease for premises to commence March 1, 2022. During the nine months ended December 31, 2021 there were no newly leased assets for which a right-of use asset was recorded in exchange for a new lease liability. The future minimum payments under operating leases were as follows at December 31, 2021 for the fiscal year ending March 31, 2022: 2022 $ 44,329 Total operating lease payments $ 44,329 Less: amounts representing interest (364) Present value of net operating lease payments $ Less: current portion 43,965 Long-term portion of operating lease obligations $ — | NOTE F – LEASES The Company is a lessee in lease agreements for office space. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The Company’s leases are comprised of fixed lease payments, with its real estate leases including lease payments subject to a rate or index which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under ASC 842, the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable lease amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. During January 2009, the Company entered into an operating lease for its office and warehouse location in Owings Mills, Maryland which was set to expire in March 2019. In October, 2018, we extended this operating lease to expire in April 2022. This lease is subject to increasing rentals at 2.5% per year. The Company renewed its operating lease through February 2022 for a 3,400 square foot office in Naperville, Illinois. Included are 3 one Our operating leases for real estate are generally renewable with terms and conditions similar to the original lease. Rent expense, including common area maintenance, totaled $239,557 and $208,734 for the years ended March 31, 2021 and 2020, respectively. None of the Company’s lease agreements contain any residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements in existence at the date of adoption that were classified as operating leases under ASC 840 have been classified as operating leases under ASC 842. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term and amounted to approximately $485,000 at the date of adoption. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of use asset also includes any lease payments made at or before lease commencement less any lease incentives. As of March 31, 2021, the Company had right-of-use assets of $171,122 and lease liabilities of $171,122 related to its operating leases. Right-of-use assets are included in property and equipment, net, on the consolidated balance sheet and lease liabilities related to the Company’s operating leases are included in short-term and long-term lease liability on the consolidated balance sheet. As of March 31, 2021 the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases is one year and 6.0%, respectively. During the fiscal year ended March 31, 2021, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was $173,622, which is included as an operating cash outflow within the consolidated statements of cash flows. During the fiscal year ended March 31, 2021, the operating lease costs related to the Company’s operating leases was $173,622 which is included in operating costs and expenses in the consolidated statements of operations. During the fiscal years ended March 31, 2021 and 2020, the Company did not enter into any material lease agreements set to commence in the future and there were no newly leased assets for which a right-of use asset was recorded in exchange for a new lease liability, other than th o The future minimum payments under operating leases were as follows at March 31, 2021: 2022 $ 175,792 2023 — Total operating lease payments $ 175,792 Less: amounts representing interest (4,670) Present value of net operating lease payments $ 171,122 Less: current portion — Long-term portion of operating lease obligations $ 171,122 |
INCOME TAXES_2
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Income Taxes | ||
INCOME TAXES | Income Taxes We calculate our interim tax provision in accordance with the guidance for accounting for income taxes in interim periods. We estimate the annual effective tax rate and apply that tax rate to our ordinary quarterly pre-tax income. The tax expense or benefit related to discrete events during the interim period is recognized in the interim period in which those events occurred. The Company recognizes a liability or asset for the deferred tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the condensed consolidated financial statements. These temporary differences may result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. The deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided whenever it is more likely than not that a deferred tax asset will not be realized. After a review of projected taxable income and the components of the deferred tax asset in accordance with applicable accounting guidance it was determined that it is more likely than not that the tax benefits associated with the remaining components of the deferred tax assets will not be realized. This determination was made based on the Company’s history of losses from operations and the uncertainty as to whether the Company will generate sufficient taxable income to use the deferred tax assets prior to their expiration. Accordingly, a valuation allowance was established to fully offset the value of the deferred tax assets. Our ability to realize the tax benefits associated with the deferred tax assets depends primarily upon the timing of future taxable income and the expiration dates of the components of the deferred tax assets. If sufficient future taxable income is generated, we may be able to offset a portion of future tax expenses. The Company follows ASC 740-10 which provides guidance for tax positions related to the recognition and measurement of a tax position taken or expected to be taken in a tax return and requires that we recognize in our condensed consolidated financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties, if any, related to income tax matters are recorded as income tax expenses. | NOTE G – INCOME TAXES The Company files its income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Income tax returns filed for the fiscal years ended March 31, 2020, 2019, and 2018 are considered open and subject to examination by tax authorities. Deferred income tax assets and liabilities are computed and recognized for those differences that have future tax consequences and will result in net taxable or deductible amounts in future periods. Deferred tax expense or benefit is the result of changes in the net asset or liability for deferred taxes. The deferred tax liabilities and assets for the Company result primarily from net operating loss and tax credit carry forwards, reserves and accrued liabilities. At March 31, 2021, the Company has total net federal operating loss carry forwards of approximately $5,912,000. There are certain limitations to the use and application of these items. Management reviews net operating loss carry forwards and income tax credit carry forwards to evaluate if those amounts are recoverable. After a review of projected taxable income and the components of the deferred tax assets in accordance with applicable accounting guidance it was determined that it is more likely than not that the tax benefits associated with the remaining components of the deferred tax assets will not be realized. This determination was made based on the Company’s history of losses from operations and the uncertainty as to whether the Company will generate sufficient taxable income to use the deferred tax assets prior to their expiration. Accordingly, a valuation allowance was established to fully offset the value of the deferred tax assets. Our ability to realize the tax benefits associated with the deferred tax assets depends primarily upon the timing of future taxable income and the expiration dates of the components of the deferred tax assets. If sufficient future taxable income is generated, we may be able to offset a portion of future tax expenses. The reconciliation between the statutory federal income tax provision and the actual effective tax provision is as follows: Years ended March 31, 2021 2020 Federal tax (benefit) at statutory rate (21%) before loss carry-forward $ 56,352 $ (1,220,917) Permanent and other differences (33,029) 7,646 State income tax (benefit) – net of federal effect 3,353 (72,000) Expiration of tax credits 129,999 — Change in deferred tax asset valuation allowance (156,675) 1,285,271 $ — $ — The individual components of the Company’s deferred tax assets are as follows: March 31, 2021 2020 Deferred tax assets: Accruals and allowances $ 76,376 $ 39,112 Inventory uniform capitalization 11,027 18,544 Net operating loss carry forward 1,241,522 1,258,433 Foreign tax credit carry forward — 169,511 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (1,390,626) (1,547,301) Net deferred tax asset $ — $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Contingencies | ||
COMMITMENTS AND CONTINGENCIES | Contingencies From time to time, the Company is involved in various claims and routine litigation matters. In the opinion of management, after consultation with legal counsel, the outcomes of such matters are not anticipated to have a material adverse effect on the Company’s condensed consolidated financial position, results of operations, or cash flows in future years. | NOTE H – COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in various lawsuits and legal matters. It is the opinion of management, based on consultation with legal counsel, that there are no outstanding material claims outside of the normal course of business. The Company’s employment agreement with its CEO (the “CEO Agreement”) requires the Company to make certain post-employment payments to the CEO in the event of his termination following a change in control, death, disability, non-renewal, or resignation with “Good Reason” under terms of the CEO Agreement. Additionally, the CEO Agreement requires the Company to make post-employment payments, which can range from approximately $94,000 to $1,995,000, dependent upon the controlling event, as discussed above. In July, 2020, the Company renewed the CEO Agreement through July 31, 2021. |
CONCENTRATIONS_2
CONCENTRATIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Concentrations | ||
CONCENTRATIONS | Concentrations The Company is primarily a distributor of safety products for use in home and business under both its trade names and private labels for other companies. The Company acquires all of the smoke alarm and carbon monoxide alarm safety products that it sells from Eyston Company, Ltd. In addition, the Company had one customer in the three month period ended December 31, 2021 that represented 24.1% of the Company’s net sales, and two customers in the nine month period ended December 31, 2021 that represented 11.8% and 11.1% of the Company’s net sales, respectively. The Company had one customer that had an accounts receivable balance that amounted to 11.2% of the total of accounts receivable and amount due from factor at December 31, 2021. In addition, the Company had one customer in the fiscal quarter ended December 31, 2020 that represented 14.1% of the Company’s net sales. Sales to this one customer represented 26.4% of net sales for the nine months ended December 31, 2020. Related Party Transactions During the three and nine month periods ended December 31, 2021 inventory purchases and other company expenses of approximately $509,000 and $1,332,000 respectively, were charged to credit card accounts of Harvey B. Grossblatt, the Company’s Chief Executive Officer and certain of his immediate family members. During the three and nine month periods ended December 31, 2020 inventory purchases and other company expenses charged to credit card accounts of Mr. Grossblatt and certain of his immediate family members amounted to approximately $379,000 and $746,000, respectively. The Company subsequently reimbursed these charges in full. Mr. Grossblatt receives mileage benefits from these charges. The maximum amount outstanding and due to Mr. Grossblatt at any point during the nine month periods ended December 31, 2021 and 2020 amounted to $210,773 and $134,329, respectively. Receivables Receivables are recorded when the Company has an unconditional right to consideration. We have established allowances to cover anticipated doubtful accounts based upon historical experience. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for satisfied or partially satisfied performance obligations on contracts with an original expected duration of one year or more. The Company’s contracts are predominantly short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC Topic 606 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. | NOTE I - CONCENTRATIONS The Company is primarily a distributor of safety products for use in home and business under both its trade names and private labels for other companies. The Company acquires all of the smoke alarm and carbon monoxide alarm safety products that it sells from Eyston Company, Ltd. At March 31, 2021, the Company had receivables due from Eyston Company, Ltd. of $381,401 recorded in trade accounts receivable. The Company had one customer in the fiscal year that ended March 31, 2021 that represented 21.9% of the Company’s net sales and two customers in the fiscal year that ended March 31, 2020 that represented 12.2% and 10.3% of the Company’s net sales, respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Mar. 31, 2021 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE J - QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Results of Operations (Unaudited): The unaudited quarterly results of operations for fiscal years 2021 and 2020 are summarized as follows: Quarter Ended June 30, September 30, December 31, March 31, 2021 Net sales $ 2,940,768 $ 6,457,295 $ 5,124,750 $ 2,997,338 Gross profit 1,077,143 2,104,028 1,520,323 938,215 Net income (loss) (78,982) 725,845 78,318 (456,838) Net income (loss) per share: Basic and diluted (0.03) 0.31 0.03 (0.19) 2020 Net sales $ 4,343,291 $ 3,622,269 $ 3,223,678 $ 3,613,786 Gross profit 1,244,829 1,090,346 769,992 653,687 Net loss (608,954) (700,814) (1,011,833) (3,492,290) Net loss per share: Basic and diluted (0.26) (0.30) (0.44) (1.51) |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Mar. 31, 2021 | |
RETIREMENT PLAN | |
RETIREMENT PLAN | NOTE K – RETIREMENT PLAN The Company has a retirement savings plan under Section 401(k) of the Internal Revenue Code. All full-time employees who have completed 12 months of service are eligible to participate. Employees are permitted to contribute up to the amounts prescribed by law. The Company may provide contributions to the plan consisting of a matching amount equal to a percentage of the employee’s contribution, not to exceed four percent (4%). Employer contributions were $43,412 and $41,121 for the years ended March 31, 2021 and 2020, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE L – RELATED PARTY TRANSACTIONS During the fiscal year ended March 31, 2021 and 2020, inventory purchases and other company expenses of approximately $1,206,000 and $999,000 respectively, were charged to credit card accounts of Harvey B. Grossblatt, the Company’s Chief Executive Officer and certain of his immediate family members. The Company subsequently reimbursed these charges in full. Mr. Grossblatt receives mileage benefits from these charges. The maximum amount outstanding and due to Mr. Grossblatt at any point during the fiscal year ended March 31, 2021 and 2020 amounted to $158,134 and $136,876, respectively, and the amount outstanding at March 31, 2021 and 2020 is $50,536 and $27,102, respectively. |
INTANGIBLE ASSETS - NET
INTANGIBLE ASSETS - NET | 12 Months Ended |
Mar. 31, 2021 | |
INTANGIBLE ASSETS - NET | |
INTANGIBLE ASSETS - NET | NOTE M – INTANGIBLE ASSETS - NET Intangible assets consist of legal expenses of $89,434 incurred in obtaining and perfecting patents on newly developed detector technology and are capitalized for financial statement purposes. Upon issuance, patents are amortized on a straight-line basis over twenty years. Amortization expense for the fiscal year ended March 31, 2021 and 2020 was $4,472 and $4,471, respectively. Accumulated amortization at March 31, 2021 and 2020 was $44,717 and $40,245, respectively. Amortization expense for the next five years is expected to be $4,472 through 2026. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE N – SHAREHOLDERS’ EQUITY Under the terms of the Company’s 2011 Non-Qualified Stock Option Plan, 120,000 shares of common stock are reserved for the granting of stock options. There were no stock options outstanding at March 31, 2021 or 2020. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Business | Nature of Business: |
Principles of Consolidation | Principles of Consolidation: |
Use of Estimates | Use of Estimates: |
Cash | Cash: |
Revenue Recognition | Revenue Recognition: The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for products sold. Revenue is recorded at the transaction price net of estimates of variable consideration. The Company uses the expected value method based on historical data in considering the impact of estimates of variable consideration, which may include trade discounts, allowances, product returns (including rights of return) or warranty replacements. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Disaggregation of Revenue: The Company presents below revenue associated with sales of safety alarm products separately from revenue associated with sales of ground fault circuit interrupters (GFCI’s) and ventilation fans. The Company believes this disaggregation best depicts how our various product lines perform and are affected by economic factors. Revenue recognized by these categories for the fiscal years ended March 31, 2021 and 2020 are as follows: Fiscal Year ended March 31, 2021 March 31, 2020 Sales of safety alarms $ 15,218,162 $ 13,098,923 Sales of GFCI’s and ventilation fans 2,301,989 1,704,101 $ 17,520,151 $ 14,803,024 |
Accounts Receivable | Accounts Receivable: The Company assigns the majority of its trade receivables on a pre-approved non-recourse basis to Merchant Factors Corporation (Merchant or Factor) under a factoring agreement on an ongoing basis. Factoring charges recognized on assignment of receivables are deducted from revenue in the consolidated statements of operations and amounted to $154,267 and $118,141 for the years ended March 31, 2021 and 2020, respectively. Management considers amounts due from the Company’s factor to be “financing receivables”. Trade accounts receivable, foreign receivables, and receivables from our suppliers are not considered to be financing receivables. At the time a receivable is assigned to our factor, the credit risk associated with the credit worthiness of the debtor is assumed by the factor. The Company continues to bear any credit risk associated with delivery or warranty issues related to the products sold. Management assesses the credit risk of both its trade accounts receivable and its financing receivables based on the specific identification of accounts that have exceeded credit terms. An allowance for uncollectible receivables is provided based on that assessment. Changes in the allowance account from one accounting period to the next are charged to operations in the period the change is determined. Amounts ultimately determined to be uncollectible are eliminated from the receivable accounts and from the allowance account in the period that the receivables’ status is determined to be uncollectible. Based on the nature of the factoring agreement and prior experience, no allowance for uncollectible financing receivables has been provided and no amounts are considered to be past due at March 31, 2021. At March 31, 2021 and 2020, respectively, an allowance of $157,000 and $57,000 has been provided for uncollectible trade accounts receivable. |
Inventories | Inventories: |
Impairment of long-lived assets | Impairment of long-lived assets |
Leases | Leases: |
Income Taxes | Income Taxes: The Company follows Accounting Standards Codification (ASC) 740-10 that gives guidance to tax positions related to the recognition and measurement of a tax position taken or expected to be taken in a tax return and requires that we recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties, if any, related to income tax matters are recorded as income tax expenses. See Note G, Income Taxes. |
Warranties | Warranties: |
Research and Development | Research and Development: |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs: |
Foreign currency | Foreign currency The reclassification of the realized gain from other comprehensive income is included in the loss from investment in the Hong Kong Joint Venture in the Consolidated Statements of Operations for the fiscal year ended March 31, 2020. |
Net Earnings (Loss) per Share | Net Earnings (Loss) per Share: |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of revenue recognized by these categories | Three months ended Nine months ended Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2020 Sales of products acquired from Eyston $ 4,571,682 $ 4,669,289 $ 13,248,027 $ 12,945,622 Sales of GFCI’s and ventilation fans 747,332 455,461 2,011,208 1,577,191 $ 5,319,014 $ 5,124,750 $ 15,259,235 $ 14,522,813 | disaggregation best depicts how our various product lines perform and are affected by economic factors. Revenue recognized by these categories for the fiscal years ended March 31, 2021 and 2020 are as follows: Fiscal Year ended March 31, 2021 March 31, 2020 Sales of safety alarms $ 15,218,162 $ 13,098,923 Sales of GFCI’s and ventilation fans 2,301,989 1,704,101 $ 17,520,151 $ 14,803,024 |
INVESTMENT IN THE HONG KONG J_2
INVESTMENT IN THE HONG KONG JOINT VENTURE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
INVESTMENT IN THE HONG KONG JOINT VENTURE | |
Schedule of income statement information of the Hong Kong joint venture | The following represents summarized financial information derived from the financial statements of the Hong Kong Joint Venture for the fiscal year ended March 31, 2020. For the Year Ended March 31, 2020 Net Sales $ 8,054,070 Gross Profit 276,787 Net Loss (3,235,107) |
PROPERTY AND EQUIPMENT - NET (T
PROPERTY AND EQUIPMENT - NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT - NET | |
Schedule of Estimated Useful Lives for Financial Reporting | The estimated useful lives for financial reporting purposes are as follows: Leasehold improvements -Shorter of term of lease or useful life of asset Machinery and equipment -5 Furniture and fixtures -5 Computer equipment -5 years |
Schedule of Property, Plant and Equipment | Property and equipment consist of the following: March 31, 2021 2020 Leasehold improvements $ 652,670 $ 652,670 Machinery and equipment 190,400 190,400 Furniture and fixtures 261,292 261,292 Computer equipment 302,634 302,634 1,406,996 1,406,996 Less accumulated depreciation (1,222,318) (1,060,519) $ 184,678 $ 346,477 |
LEASES (Tables)_2
LEASES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Leases | ||
Summary of future minimum payments under operating leases | The future minimum payments under operating leases were as follows at December 31, 2021 for the fiscal year ending March 31, 2022: 2022 $ 44,329 Total operating lease payments $ 44,329 Less: amounts representing interest (364) Present value of net operating lease payments $ Less: current portion 43,965 Long-term portion of operating lease obligations $ — | The future minimum payments under operating leases were as follows at March 31, 2021: 2022 $ 175,792 2023 — Total operating lease payments $ 175,792 Less: amounts representing interest (4,670) Present value of net operating lease payments $ 171,122 Less: current portion — Long-term portion of operating lease obligations $ 171,122 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Schedule of Reconciliation Between the Statutory Federal Income Tax Provision and the Actual Effective Tax Provision | The reconciliation between the statutory federal income tax provision and the actual effective tax provision is as follows: Years ended March 31, 2021 2020 Federal tax (benefit) at statutory rate (21%) before loss carry-forward $ 56,352 $ (1,220,917) Permanent and other differences (33,029) 7,646 State income tax (benefit) – net of federal effect 3,353 (72,000) Expiration of tax credits 129,999 — Change in deferred tax asset valuation allowance (156,675) 1,285,271 $ — $ — |
Schedule of Deferred Tax Assets | The individual components of the Company’s deferred tax assets are as follows: March 31, 2021 2020 Deferred tax assets: Accruals and allowances $ 76,376 $ 39,112 Inventory uniform capitalization 11,027 18,544 Net operating loss carry forward 1,241,522 1,258,433 Foreign tax credit carry forward — 169,511 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (1,390,626) (1,547,301) Net deferred tax asset $ — $ — |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for fiscal years 2021 and 2020 are summarized as follows: Quarter Ended June 30, September 30, December 31, March 31, 2021 Net sales $ 2,940,768 $ 6,457,295 $ 5,124,750 $ 2,997,338 Gross profit 1,077,143 2,104,028 1,520,323 938,215 Net income (loss) (78,982) 725,845 78,318 (456,838) Net income (loss) per share: Basic and diluted (0.03) 0.31 0.03 (0.19) 2020 Net sales $ 4,343,291 $ 3,622,269 $ 3,223,678 $ 3,613,786 Gross profit 1,244,829 1,090,346 769,992 653,687 Net loss (608,954) (700,814) (1,011,833) (3,492,290) Net loss per share: Basic and diluted (0.26) (0.30) (0.44) (1.51) |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 |
Sales of products acquired from our HKJV | |||||||||||||
Revenues | 15,218,162 | 13,098,923 | |||||||||||
Sales of GFCI's and ventilation fans | |||||||||||||
Revenues | $ 747,332 | $ 455,461 | $ 2,011,208 | $ 1,577,191 | $ 2,301,989 | $ 1,704,101 |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Factoring Charges | $ 154,267 | $ 118,141 |
Allowance for Doubtful Accounts Receivable | 157,000 | 57,000 |
Expenses Incurred in Inventory, Amount | 45,000 | 45,000 |
Shipping and Handling [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost of Goods and Services Sold | $ 409,692 | $ 343,838 |
Disposed by sale | Hong Kong Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest disposed | 50 | 50 |
Consideration for disposal of joint venture | $ 4,000,000 | $ 4,000,000 |
Hong Kong Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest held (in percentage) | 50.00% |
LIQUIDITY AND MANAGEMENT'S PL_2
LIQUIDITY AND MANAGEMENT'S PLAN (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2020 | Dec. 31, 2021 | Mar. 31, 2020 | Aug. 11, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Jan. 15, 2015 | |
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||
Failure to maintain stockholders' equity after reporting losses from continuing operations and/or net losses | $ 6,000,000 | ||||||
Unused availability of facility | $ 2,357,000 | ||||||
Line of credit facility, capacity available for trade purchases | $ 1,500,000 | $ 500,000 | |||||
Spread on variable interest rate (as a percent) | 2.00% | ||||||
Trade accounts receivable net | $ 878,000 | ||||||
Prime Rate | |||||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||
Spread on variable interest rate (as a percent) | 2.00% | ||||||
Hong Kong Joint Venture | |||||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||
Unused availability of facility | $ 383,000 | $ 1,795,000 | |||||
Reduce trade accounts payable | $ 4,000,000 | ||||||
Trade accounts payable converted to an unsecured long-term note payable | 1,081,440 | ||||||
Line of credit facility, capacity available for trade purchases | $ 4,000,000 | ||||||
Line of Credit Facility, Interest Rate at Period End | 5.50% | ||||||
Repayment term for each advance | 120 days | ||||||
Paycheck Protection Program loan | |||||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||
Proceeds from debt | $ 221,400 |
INVESTMENT IN THE HONG KONG J_3
INVESTMENT IN THE HONG KONG JOINT VENTURE - Financial statements of the Hong Kong Joint Venture (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 | ||
Gross profit | 1,716,623 | 938,215 | 1,520,323 | 2,104,028 | 1,077,143 | 653,687 | 769,992 | 1,090,346 | 1,244,829 | 4,551,126 | 4,701,494 | 5,639,709 | 3,758,854 | ||
Net Income (Loss) | $ 35,351 | $ 107,696 | $ 14,641 | $ (456,838) | $ 78,318 | $ 725,845 | $ (78,982) | $ (3,492,290) | $ (1,011,833) | $ (700,814) | $ (608,954) | $ 157,688 | $ 725,181 | $ 268,343 | (5,813,891) |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | Hong Kong Joint Venture | |||||||||||||||
Net sales | 8,054,070 | ||||||||||||||
Gross profit | 276,787 | ||||||||||||||
Net Income (Loss) | $ (3,235,107) |
INVESTMENT IN THE HONG KONG J_4
INVESTMENT IN THE HONG KONG JOINT VENTURE - Additional Information (Details) | Apr. 19, 2020USD ($) | Dec. 31, 2021 | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Spread on variable interest rate (as a percent) | 2.00% | |||
Effective interest rate (as a percent) | 5.25% | |||
Prime Rate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Spread on variable interest rate (as a percent) | 2.00% | |||
Unsecured long-term interest only note payable | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Trade accounts payable converted to an unsecured long-term note payable | $ 1,081,440 | $ 1,081,440 | ||
Effective interest rate (as a percent) | 5.25% | 5.25% | ||
Principal balance due and payable | $ 1,081,440 | |||
Unsecured long-term interest only note payable | Prime Rate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Spread on variable interest rate (as a percent) | 2.00% | 2.00% | ||
Hong Kong Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net carrying value prior to the sale | $ 2,472,620 | |||
Hong Kong Joint Venture | Disposed by sale | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest disposed | 50 | 50 | ||
Consideration for disposal of joint venture | $ 4,000,000 | $ 4,000,000 | ||
Hong Kong Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Line of Credit Facility, Interest Rate at Period End | 5.50% | |||
Trade accounts payable converted to an unsecured long-term note payable | $ 1,081,440 | |||
Principal balance due and payable | $ 4,000,000 | |||
Repayment term for each advance | 120 days | |||
Hong Kong Joint Venture | Hong Kong Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net carrying value prior to the sale | $ 1,369,655 | |||
Hong Kong Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Related Party Transaction, Purchases from Related Party | $ 7,612,131 | $ 7,335,646 | ||
Related Party Transaction, Rate | 77.60% | 82.70% |
SHORT-TERM BORROWINGS AND CRE_2
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Short-term Debt [Line Items] | ||||
Long-term Line of Credit | $ 383,000 | |||
Line of Credit, Current | 2,357,431 | $ 18,904 | $ 1,561,665 | |
Line of Credit Facility, Borrowing Capacity, Description | Under the modified Agreement the Company may borrow eighty percent (80%) of eligible accounts receivable. Additional funding, characterized by Merchant as an over advance, may be provided up to one hundred percent (100%) of eligible accounts receivable. The over advance portion, if any, may not exceed fifty percent (50%) of eligible inventory up to a maximum of $500,000. | |||
Line of Credit Facility, Interest Rate Description | Collected cash maintained on deposit at March 31, 2021 and 2020 with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 0.75% and 0.75% at March 31, 2021 and 2020, respectively.) | |||
Factoring Agreement Receivables Sold | $ 17,003,317 | 14,162,999 | ||
Due From Factor | $ 3,355,802 | 1,925,291 | 2,300,109 | |
Accounts Receivables Factoring Agreement Term | 2 years | |||
Merchant Factors Corporation [Member] | ||||
Short-term Debt [Line Items] | ||||
Long-term Line of Credit | 1,795,000 | 738,000 | ||
Line of Credit, Current | $ 18,904 | $ 1,561,665 | ||
Line of Credit Facility, Interest Rate Description | bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 5.25% at March 31, 2021 and March 31, 2020). | |||
Accounts Receivables Factoring Agreement Expiration Date | Jan. 6, 2022 | |||
Accounts Receivables Factoring Agreement Term | 2 years | |||
Paycheck Protection Program loan | ||||
Short-term Debt [Line Items] | ||||
Proceeds from debt | $ 221,400 |
PROPERTY AND EQUIPMENT - NET (D
PROPERTY AND EQUIPMENT - NET (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment, Gross | $ 1,406,996 | $ 1,406,996 | |
Less accumulated depreciation | (1,222,318) | (1,060,519) | |
Property, Plant and Equipment, Net, Total | $ 53,920 | 184,678 | 346,477 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Gross | 652,670 | 652,670 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment, Gross | 190,400 | 190,400 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment, Gross | 261,292 | 261,292 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment, Gross | $ 302,634 | $ 302,634 |
PROPERTY AND EQUIPMENT - NET -
PROPERTY AND EQUIPMENT - NET - Estimated useful lives for financial reporting purposes (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | |
Non Cash Right of Use Assets, Depreciation | $ 158,576 | ||
Operating Lease, Right-of-Use Asset, Amortization Expense | 158,576 | $ 156,250 | |
Depreciation, Amortization and Accretion, Net | 161,799 | 159,469 | |
Right-of-use assets | $ 171,122 | 329,698 | $ 43,965 |
Leasehold Improvements [Member] | |||
Property Plant And Equipment Useful Life Description | -Shorter of term of lease or useful life of asset | ||
Right-of-use assets | $ 171,122 | $ 329,698 | |
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Computer Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years |
LEASES (Details)_2
LEASES (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Future minimum payments under operating leases | |||
2022 | $ 44,329 | $ 175,792 | |
Total operating lease payments | 44,329 | 175,792 | |
Less: amounts representing interest | (364) | (4,670) | |
Present value of net operating lease payments | 43,965 | 171,122 | $ 329,698 |
Less: current portion | $ 43,965 | 171,122 | 158,578 |
Long-term portion of operating lease obligations | $ 171,122 | $ 171,120 |
LEASES - Additional Informati_2
LEASES - Additional Information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2009USD ($)Options | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Nov. 30, 2019ft² | |
Description of Lessor Leasing Arrangements, Operating Leases | During January 2009, the Company entered into an operating lease for its office and warehouse location in Owings Mills, Maryland which was set to expire in March 2019 | ||||
Operating Lease Rent Increment Percentage | 2.50% | ||||
Term of renewal options that are not included in measurement of lease term | 1 year | ||||
Number of one-year renewal options that are not included in measurement of lease term | Options | 3 | ||||
Operating Leases, Rent Expense | $ 239,557 | $ 208,734 | |||
Lease, Practical Expedients, Package [true false] | true | true | |||
Non Cash Right Of Use Asset In Exchange For Operating Lease Liability | $ 485,000 | 485,948 | |||
Right-of-use assets | $ 43,965 | $ 171,122 | 329,698 | ||
Non Cash Right Of Use Asset In Exchange For Operating Lease Liability | 485,000 | ||||
Lease liabilities | $ 43,965 | $ 171,122 | $ 329,698 | ||
Weighted-average remaining lease term | 25 years | 1 year | 2 years | ||
Weighted-average discount rate | 6.00% | 6.00% | 6.00% | ||
Cash paid for amounts included in measurement of lease liabilities | $ 128,600 | $ 173,622 | $ 160,605 | ||
Operating lease costs | $ 173,622 | $ 160,605 | |||
Office in Naperville [Member] | |||||
Land Subject to Ground Leases | ft² | 3,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||
Federal tax (benefit) at statutory rate (21%) before loss carry-forward | $ 56,352 | $ (1,220,917) |
Permanent and other differences | (33,029) | 7,646 |
State income tax (benefit) - net of federal effect | 3,353 | (72,000) |
Expiration of tax credits | 129,999 | |
Change in deferred tax asset valuation allowance | $ (156,675) | $ 1,285,271 |
INCOME TAXES - Company's deferr
INCOME TAXES - Company's deferred tax assets (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Accruals and allowances | $ 76,376 | $ 39,112 |
Inventory uniform capitalization | 11,027 | 18,544 |
Net operating loss carry forward | 1,241,522 | 1,258,433 |
Foreign tax credit carry forward | 169,511 | |
Research and development tax credit carry forward | 61,701 | 61,701 |
Allowance for unrealizable deferred tax assets | $ (1,390,626) | $ (1,547,301) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||
Operating Loss Carryforwards | $ 5,912,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Mar. 31, 2021USD ($) |
Maximum [Member] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 1,995,000 |
Minimum [Member] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 94,000 |
CONCENTRATIONS (Details)_2
CONCENTRATIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Purchase Of Inventory And Other Company | $ 509,000 | $ 379,000 | $ 1,332,000 | $ 746,000 | ||
Maximum Amount Outstanding | $ 210,773 | $ 134,329 | ||||
Trade Accounts Receivable | ||||||
Receivables due from Eyston Company, Ltd. | $ 381,401 | |||||
One Customer | Sales Revenue, Net | Customer Concentration Risk | ||||||
Concentration Risk, Percentage | 24.10% | 14.10% | 11.10% | 26.40% | 21.90% | 12.20% |
One Customer | Sales Revenue, Net | Trade Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk, Percentage | 11.20% | |||||
Two Customer | Sales Revenue, Net | Customer Concentration Risk | ||||||
Concentration Risk, Percentage | 11.80% | 10.30% |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
Net sales | $ 5,319,014 | $ 2,997,338 | $ 5,124,750 | $ 6,457,295 | $ 2,940,768 | $ 3,613,786 | $ 3,223,678 | $ 3,622,269 | $ 4,343,291 | $ 15,259,235 | $ 14,522,813 | $ 17,520,151 | $ 14,803,024 | ||
Gross profit | 1,716,623 | 938,215 | 1,520,323 | 2,104,028 | 1,077,143 | 653,687 | 769,992 | 1,090,346 | 1,244,829 | 4,551,126 | 4,701,494 | 5,639,709 | 3,758,854 | ||
Net Income (Loss) | $ 35,351 | $ 107,696 | $ 14,641 | $ (456,838) | $ 78,318 | $ 725,845 | $ (78,982) | $ (3,492,290) | $ (1,011,833) | $ (700,814) | $ (608,954) | $ 157,688 | $ 725,181 | $ 268,343 | $ (5,813,891) |
Net income (loss) per share: | |||||||||||||||
Basic per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) | ||
Diluted per share | $ 0.02 | $ (0.19) | $ 0.03 | $ 0.31 | $ (0.03) | $ (1.51) | $ (0.44) | $ (0.30) | $ (0.26) | $ 0.07 | $ 0.31 | $ 0.12 | $ (2.51) |
RETIREMENT PLAN (Details)
RETIREMENT PLAN (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
RETIREMENT PLAN | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 43,412 | $ 41,121 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Chief Executive Officer [Member] - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 1,206,000 | $ 999,000 |
Due to Related Parties, Current | 50,536 | 27,102 |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 158,134 | $ 136,876 |
INTANGIBLE ASSETS - NET (Detail
INTANGIBLE ASSETS - NET (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalization Finite Lived Intangible Assets Legal Expenses | $ 89,434 | |
Amortization of Intangible Assets | 4,472 | $ 4,471 |
Finite-Lived Intangible Assets, Accumulated Amortization | 44,717 | $ 40,245 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 4,472 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | Mar. 31, 2021shares |
SHAREHOLDERS' EQUITY | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 120,000 |