Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2015 | Jun. 15, 2015 | Sep. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | UNIVERSAL SECURITY INSTRUMENTS INC | ||
Entity Central Index Key | 102,109 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | UUU | ||
Entity Common Stock, Shares Outstanding | 2,312,887 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,501,401 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 49,427 | $ 2,050,993 |
Funds held by Factor | 631,906 | 0 |
Accounts receivable: | ||
Trade less allowance for doubtful accounts of approximately $57,000 at March 31, 2015 and 2014 | 381,254 | 686,228 |
Receivables from employees | 53,990 | 67,583 |
Receivable from Hong Kong Joint Venture | 135,768 | 137,360 |
Accounts, Notes, Loans and Financing Receivable, Net, Current | 571,012 | 891,171 |
Amount due from factor | 1,217,311 | 1,397,951 |
Inventories | 3,852,182 | 4,194,213 |
Prepaid expenses | 438,745 | 406,012 |
TOTAL CURRENT ASSETS | 6,760,583 | 8,940,340 |
INVESTMENT IN HONG KONG JOINT VENTURE | 12,943,280 | 14,002,270 |
PROPERTY AND EQUIPMENT - NET | 104,618 | 146,212 |
INTANGIBLE ASSET - NET | 71,547 | 76,020 |
OTHER ASSETS | 26,000 | 38,134 |
TOTAL ASSETS | 19,906,028 | 23,202,976 |
CURRENT LIABILITIES | ||
Accounts payable - trade | 668,846 | 606,314 |
Accounts payable - Hong Kong Joint Venture | 299,985 | 28,681 |
Accrued liabilities: | ||
Accrued payroll and employee benefits | 69,180 | 78,054 |
Accrued commissions and other | 111,020 | 72,512 |
TOTAL CURRENT LIABILITIES | 1,149,031 | 785,561 |
Long-term obligation - other | 0 | 25,000 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY | ||
Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887 shares outstanding at March 31, 2015 and 2014 | 23,129 | 23,129 |
Additional paid-in capital | 12,885,841 | 12,885,841 |
Retained earnings | 4,588,332 | 8,293,317 |
Accumulated other comprehensive income | 1,259,695 | 1,190,128 |
TOTAL SHAREHOLDERS' EQUITY | 18,756,997 | 22,392,415 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 19,906,028 | $ 23,202,976 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for doubtful accounts (in dollars) | $ 57,000 | $ 57,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares outstanding | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net sales | $ 9,891,554 | $ 12,577,127 |
Cost of goods sold - acquired from Joint Venture | 6,616,789 | 9,008,944 |
Cost of goods sold - other | 946,655 | 727,199 |
GROSS PROFIT | 2,328,110 | 2,840,984 |
Research and development expense | 776,778 | 592,488 |
Selling, general and administrative expense | 4,175,584 | 4,251,274 |
Operating loss | (2,624,252) | (2,002,778) |
Other income : | ||
Interest and other | 22,826 | 23,316 |
LOSS BEFORE EQUITY IN LOSS OF JOINT VENTURE | (2,601,426) | (1,979,462) |
Equity in loss of Hong Kong Joint Venture | (1,128,559) | (159,947) |
Loss from operations before income taxes | (3,729,985) | (2,139,409) |
Income tax benefit (expense) | 25,000 | (2,310,835) |
NET LOSS | $ (3,704,985) | $ (4,450,244) |
Loss per share: | ||
Basic (in dollars per share) | $ (1.60) | $ (1.94) |
Diluted (in dollars per share) | $ (1.60) | $ (1.94) |
Weighted average number of shares used in computing net loss per share: | ||
Basic (in shares) | 2,312,887 | 2,290,010 |
Diluted (in shares) | 2,312,887 | 2,290,010 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
NET LOSS | $ (3,704,985) | $ (4,450,244) |
Other Comprehensive Income (Loss) Company’s Portion of Hong Kong Joint Venture’s Other Comprehensive Income (Loss): | ||
Currency translations | (53,289) | (44,678) |
Unrealized gain (loss) on investment securities | 122,856 | (141,605) |
Total Comprehensive Income (Loss) | 69,567 | (186,283) |
COMPREHENSIVE LOSS | $ (3,635,418) | $ (4,636,527) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Other Comprehensive Income (Loss) [Member] |
Balance at Mar. 31, 2013 | $ 26,892,106 | $ 22,879 | $ 12,749,256 | $ 12,743,561 | $ 1,376,410 |
Balance (in shares) at Mar. 31, 2013 | 2,287,887 | ||||
Stock based compensation | 55,585 | $ 0 | 55,585 | 0 | |
Currency translation | (44,678) | 0 | 0 | 0 | (44,678) |
Investment securities | (141,605) | 0 | 0 | 0 | (141,604) |
Exercise of stock options | 81,250 | $ 250 | 81,000 | 0 | |
Exercise of stock options (in shares) | 25,000 | ||||
Net loss | (4,450,244) | $ 0 | 0 | (4,450,244) | 0 |
Balance at Mar. 31, 2014 | 22,392,415 | $ 23,129 | $ 12,885,841 | $ 8,293,317 | 1,190,128 |
Balance (in shares) at Mar. 31, 2014 | 2,312,887 | ||||
Currency translation | (53,289) | (53,289) | |||
Investment securities | 122,856 | 122,856 | |||
Net loss | (3,704,985) | $ (3,704,985) | |||
Balance at Mar. 31, 2015 | $ 18,756,997 | $ 23,129 | $ 12,885,841 | $ 4,588,332 | $ 1,259,695 |
Balance (in shares) at Mar. 31, 2015 | 2,312,887 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES OPERATING ACTIVITIES | ||
Net loss | $ (3,704,985) | $ (4,450,244) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 46,067 | 43,943 |
Stock based compensation | 0 | 55,585 |
Deferred income taxes (benefit) tax | (25,000) | 2,310,835 |
Loss of the Hong Kong Joint Venture | 1,128,559 | 159,947 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable and amounts due from factor | 554,699 | 630,310 |
Decrease in inventories | 288,131 | 147,439 |
(Increase) Decrease in prepaid expenses | (32,733) | 192,672 |
Increase in accounts payable and accrued expenses | 363,468 | 57,572 |
Decrease in other assets | 12,134 | 0 |
NET CASH USED IN OPERATING ACTIVITIES | (1,369,660) | (851,941) |
INVESTING ACTIVITIES: | ||
Cash distributions from Joint Venture | 0 | 416,275 |
Purchase of equipment | 0 | 33,483 |
Funds held by factor | (631,906) | 0 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | (631,906) | 382,792 |
FINANCING ACTIVITIES: | ||
Exercise of stock options | 0 | 81,250 |
Borrowing from Hong Kong Joint Venture | 0 | 0 |
NET CASH USED IN FINANCING ACTIVITIES | 0 | 81,250 |
DECREASE IN CASH | (2,001,566) | (387,899) |
Cash at beginning of period | 2,050,993 | 2,438,892 |
CASH AT END OF PERIOD | 49,427 | 2,050,993 |
Supplemental information: | ||
Interest paid | 0 | 0 |
Income taxes recovered (paid) | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | Universal Security Instruments, Inc.’s (“the Company”) primary business is the sale of smoke alarms and other safety products to retailers, wholesale distributors and to the electrical distribution trade which includes electrical and lighting distributors as well as manufactured housing companies. The Company imports all of its safety and other products from foreign manufacturers. The Company, as an importer, is subject to numerous tariffs which vary depending on types of products and country of origin, changes in economic and political conditions in the country of manufacture, potential trade restrictions and currency fluctuations. 50 In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents: Revenue Recognition: The Company recognizes sales upon shipment of products, when title has passed to the buyer, net of applicable provisions for any discounts or allowances. We recognize revenue when the following criterion are met: evidence of an arrangement exists, fixed and determinable fee, delivery has taken place, and collectability is reasonably assured. Customers may not return, exchange or refuse acceptance of goods without our approval. We have established allowances to cover anticipated doubtful accounts based upon historical experience. We generally provide warranties, on the safety products, from one to ten years to the non-commercial end user on all products sold. The manufacturers of our safety products provide us with a one-year warranty on all products we purchase for resale. Claims for warranty replacement of products beyond the one-year warranty period covered by the manufacturers have not been historically material. Research and development costs are charged to operations as incurred. The Company nets the factored accounts receivable with the corresponding advance from the Factor, with the net amount reflected in the consolidated balance sheet. The Company assigns trade receivables on a pre-approved non-recourse basis to the Factor under the Factoring Agreement on an ongoing basis. Factoring charges recognized on assignment of receivables are included in selling, general and administrative expenses in the consolidated statements of operations and amounted to $ 68,100 70,666 Financing Receivables. In September 2010, the FASB issued, and the Company adopted, an Accounting Standards Update requiring enhanced disclosure of the credit quality of financing receivables, as defined therein, and the adequacy of allowances for credit losses. Management considers amounts due from the Company’s factor to be “financing receivables”. Trade accounts receivable, other receivables, and receivables from our Hong Kong Joint Venture are not considered to be financing receivables. 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 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. At March 31, 2015 and 2014, an allowance of $ 57,000 The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with inbound freight are included in cost of goods sold. Shipping and handling costs associated with outbound freight are included in selling, general and administrative expenses and totaled $ 248,128 182,668 Inventories are stated at the lower of cost (first in/first out method) or market. Included as a component of finished goods inventory are additional non-material costs. These costs include overhead costs, freight, import duty and inspection fees of $ 355,017 381,891 The Company follows 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 related to income tax matters are recorded as income tax expenses. The Company had recorded a long-term liability of $ 25,000 : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The factors considered in performing this assessment include current operating results, anticipated future results, the manner in which the asset is used and the effects of obsolescence, demand, competition and other economic factors. Accordingly, when indicators of impairment are present, the Company evaluates the carrying value of these assets in relation to the operating performance of the business and future undiscounted cash flows expected to result from the use of these assets. Impairment losses are recognized when the sum of expected future cash flows is less than the assets’ carrying value, and losses are determined based upon the excess carrying value of the assets over its fair value. Based on this assessment, no impairment to long-lived assets resulted for fiscal years ended March 31, 2015 and 2014. : The activity and accounts of the Hong Kong Joint Venture are denominated in Hong Kong dollars and are translated to US dollars in consolidation. The Company translates the accounts of the Hong Kong Joint Venture at the applicable exchange rate in effect at the year-end date for balance sheet purposes and at the average exchange rate for the reporting period for statement of operation purposes. Transaction gains and losses arising from transactions denominated in foreign currencies are included in the results of operations. The Company currently does not maintain cash in foreign banks to support its operations in Hong Kong. Net Loss per Share There were securities considered to be antidilutive outstanding during the 2015 or 2014. Changes to accounting principles generally accepted in the United States of America (US. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updated (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASU’s. Recently issued ASU’s were evaluated and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements. Revision of Prior Period Financial Statements 141,799 141,799 |
FINANCIAL CONDITION, LIQUIDITY
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES | 12 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | For the fiscal year ended March 31, 2015, the Company reported losses from domestic operations in the amount of $ 2,601,426 9,891,554 2,543,227 8,154,779 5,611,552 Our short-term borrowings to finance trade accounts receivable and foreign inventory purchases are provided pursuant to the terms of our Factoring Agreement with Merchant. The Company previously reported that advances from the Company’s factor, were 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. Subsequent to that report, management has entered into discussions with Merchant to stipulate that Merchant will provide advances unless the Company is in default or the Company’s dilution percentage changes substantially. Management anticipates that our agreement with Merchant will be modified to reflect these changes but we are not certain Merchant will agree to such changes, or that they will agree on terms that are acceptable to the Company. In addition we have secured additional inventory financing of $ 1,000,000 3.25 We anticipate introducing our new line of sealed smoke and carbon monoxide (CO) alarms later this fiscal year, These sealed products will compete on price and functionality when we introduce them to the market with similar products offered by our larger competitors. While we believe there will be market acceptance of our new 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, will cause a continued decline in our sales and potentially impact our ability to continue operations. The Company’s recent history of operating losses, declining revenue, and limited financing raises substantial doubt about our ability to continue as a going concern. Our consolidated financial statements included in this Report do not include any adjustments that might result from the outcome of this uncertainty. No assurances can be given regarding management’s plans, the timing of sales, or the reduction of expenditures, and we may have to seek additional financing if events do not occur as anticipated. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE C PROPERTY AND EQUIPMENT Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided by using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Repair and maintenance costs are expensed as incurred. The estimated useful lives for financial reporting purposes are as follows: Leasehold improvements - Machinery and equipment - 5 10 Furniture and fixtures - 5 15 Computer equipment - 5 March 31, 2015 2014 Leasehold improvements $ 166,722 $ 166,722 Machinery and equipment 190,400 190,400 Furniture and fixtures 261,292 261,292 Computer equipment 286,528 286,528 904,942 904,942 Less accumulated depreciation (800,324) (758,730) $ 104,618 $ 146,212 Depreciation and amortization expense totaled $ 41,595 39,471 |
INVESTMENT IN THE HONG KONG JOI
INVESTMENT IN THE HONG KONG JOINT VENTURE | 12 Months Ended |
Mar. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE D - INVESTMENT IN THE HONG KONG JOINT VENTURE The Company holds a 50 12,943,280 50 During the years ended March 31, 2015 and 2014, the Company purchased $ 6,585,785 7,407,826 87.3 92.4 0 28,681 135,768 137,360 299,985 The Company’s investment in the Hong Kong Joint Venture as recorded on the Company’s Consolidated Balance sheets has been adjusted for the effect of intercompany profit of the Hong Kong Joint Venture in the ending inventory of the Company. |
AMOUNTS DUE FROM FACTOR
AMOUNTS DUE FROM FACTOR | 12 Months Ended |
Mar. 31, 2015 | |
Amount Due From Factor [Abstract] | |
Amounts Due From Factor [Text Block] | NOTE E - AMOUNTS DUE FROM FACTOR The Company assigns certain of its trade receivables on a pre-approved, non-recourse basis to our Factor. Since these are assigned on a non-recourse basis, the factored trade receivables and related repayment obligations are not separately recorded in the Company’s consolidated balance sheets. The Factoring Agreement provides for financing 80% of uncollected non-recourse receivables assigned to the factor, and 50% of qualifying inventory up to a maximum borrowing on inventory of $1,000,000. 1,977,000 5.25 Under this Factoring Agreement, the Company assigned receivables of $ 8,917,127 11,370,850 1,217,311 1,397,951 Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less two percentage points (effective rate of 1.25%) at March 31, 2015 and 2014. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2015 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | NOTE F - LEASES During January 2009, the Company entered into an operating lease for its office and warehouse location in Owings Mills, Maryland which expires in March 2019. 3 3,000 3,400 190,375 185,625 2020 2016 2017 2018 2019 Remainder Future minimum lease payments are as follows: 222,915 165,922 162,327 164,366 0 |
SHORT-TERM BORROWINGS AND CREDI
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE G SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS In March, 2015, the Company obtained additional financing for the purchase of certain inventory with its Hong Kong Joint Venture in the amount of $ 1,000,000 3.25 299,985 In addition, the Hong Kong Joint Venture provides repayment terms of sixty ( 60 On January 15, 2015, the Company entered into a Factoring Agreement with Merchant Factors Corporation (Merchant or Factor) for the purpose of factoring the Company’s trade accounts receivable and to provide financing secured by finished goods inventory. The agreement replaces the financing and factoring agreement with CIT which was terminated on the same date. In accordance with the provisions of the Factoring Agreement with Merchant, the Company may take, advances equal to eighty percent ( 80 50 1,000,000 2 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE H INCOME TAXES The Company files its income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. 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. For the fiscal years ended March 31, 2015 and 2014, the Company generated net operating loss carryovers of approximately $ 2,568,000 1,040,000 At March 31, 2015 and 2014, the Company has total net operating loss carry forwards of approximately $ 6,370,000 3,687,000 expire in various amounts at dates from 2015 through 2031 2015 2014 Current (benefit) expense U.S. Federal $ (25,000) $ - U.S. State - - Deferred (benefit) expense - 2,310,835 Total income tax (benefit) expense $ (25,000) $ 2,310,835 Years ended March 31, 2015 2014 Federal tax (benefit) at statutory rate (34%) before loss carry-forward $ (1,193,309) $ (749,936) Non-repatriated loss (earnings) of Hong Kong Joint Venture 346,832 218,452 Permanent differences 32,713 26,281 State income tax expense net of federal effect (81,738) (50,658) True-up adjustments and allowance 870,502 2,866,696 Income tax (benefit) expense $ (25,000) $ 2,310,835 March 31, 2015 2014 Deferred tax assets: Financial statement accruals and allowances $ 57,965 $ 63,321 Inventory uniform capitalization 28,250 45,885 Net operating loss carry forward 2,389,602 1,433,185 Foreign tax credit carry forward 1,190,390 1,516,111 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,727,908) (3,120,203) Net deferred tax asset $ - $ - The Company has adopted ASC 740-10 Accounting for Income Taxes and recorded a liability for an uncertain income tax position, tax penalties and any imputed interest thereon. The amount, recorded as a long-term obligation, is $ 0 25,000 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE I - SHAREHOLDERS’ EQUITY Stock Options Under the terms of the Company’s 2011 Non-Qualified Stock Option Plan, 120,000 97,000 5.51 In March 2009, 25,000 3.25 Weighted Average For the Year Ended March 31, 2014: Number of Shares Exercise Price Exercised on March 14, 2014 Grant 1 25,000 3.25 Expired on December 14, 2013 Grant 2 97,000 5.51 122,000 5.05 Status as of March 31, 2014 Number of Shares Presently exercisable 0 Outstanding options by Grant as of March 31, 2013 Number of options Grant 1 25,000 Average exercise price per option $ 3.25 Exercised March 14, 2014 Number of options Grant 2 97,000 Average exercise price per option $ 5.51 Expired unexercised December 14, 2013 The fair value of each stock option was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions; no annual dividends, expected volatility of 57.73 0.3 two |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE J - 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 the advice of 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 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 or resignation with “Good Reason” under terms of the Agreement. Additionally, the Agreement requires the Company to make post-employment payments, estimated to be $ 631,000 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2015 | |
Major Customers [Abstract] | |
Major Customers [Text Block] | NOTE K - MAJOR CUSTOMERS 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. As described in Note C, the Company purchased a majority of its products from its 50 For the fiscal year ended March 31, 2015, the Company had no customers that represented in excess of 10 13 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE L - QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Results of Operations (Unaudited): The unaudited quarterly results of operations for fiscal years 2015 and 2014 are summarized as follows: Quarter Ended June 30, September 30, December 31, March 31, 2015 Net sales $ 2,514,385 $ 2,223,943 $ 2,371,016 $ 2,782,210 Gross profit 611,488 493,516 382,335 840,771 Net loss (742,849) (1,112,264) (1,101,372) (748,500) Net loss per share: Basic (0.32) (0.48) (0.48) (0.32) Diluted (0.32) (0.48) (0.48) (0.32) 2014 Net sales $ 3,005,669 $ 3,195,611 $ 3,738,914 $ 2,636,933 Gross profit 749,324 809,155 1,125,470 157,035 Net loss (19,530) (2,559,218) (367,190) (1,504,306) Net loss per share: Basic (0.01) (1.12) (0.16) (0.65) Diluted (0.01) (1.12) (0.16) (0.65) |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Mar. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure [Text Block] | NOTE M 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 $50,963 and $59,027 for the years ended March 31, 2015 and 2014, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE N INTANGIBLE ASSETS Intangible assets consist of legal expenses of $ 89,434 4,472 4,472 17,887 The estimated useful lives for financial reporting purposes are as follows: Intangible patent costs - 20 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | UNIVERSAL SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED MARCH 31, 2015 AND 2014 Balance at beginning Charged to cost Balance at of year and expenses Deductions end of year Year ended March 31, 2015 Allowance for doubtful accounts $ 57,012 $ 0 $ 0 $ 57,012 Year ended March 31, 2014 Allowance for doubtful accounts $ 57,012 $ 0 $ 0 $ 57,012 Year ended March 31, 2015 Valuation allowance for deferred tax asset $ 3,069,578 $ 658,330 $ 0 $ 3,727,908 Year ended March 31, 2014 Valuation allowance for deferred tax asset $ 300,000 $ 2,769,578 $ 0 $ 3,069,578 |
NATURE OF BUSINESS AND SUMMAR23
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature Of Operations [Policy Text Block] | Nature of Business: Universal Security Instruments, Inc.’s (“the Company”) primary business is the sale of smoke alarms and other safety products to retailers, wholesale distributors and to the electrical distribution trade which includes electrical and lighting distributors as well as manufactured housing companies. The Company imports all of its safety and other products from foreign manufacturers. The Company, as an importer, is subject to numerous tariffs which vary depending on types of products and country of origin, changes in economic and political conditions in the country of manufacture, potential trade restrictions and currency fluctuations. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation: 50 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: |
Funds Held by Factor [Policy Text Block] | Funds Held by Factor: |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: The Company recognizes sales upon shipment of products, when title has passed to the buyer, net of applicable provisions for any discounts or allowances. We recognize revenue when the following criterion are met: evidence of an arrangement exists, fixed and determinable fee, delivery has taken place, and collectability is reasonably assured. Customers may not return, exchange or refuse acceptance of goods without our approval. We have established allowances to cover anticipated doubtful accounts based upon historical experience. |
Warranties [Policy Text Block] | Warranties: We generally provide warranties, on the safety products, from one to ten years to the non-commercial end user on all products sold. The manufacturers of our safety products provide us with a one-year warranty on all products we purchase for resale. Claims for warranty replacement of products beyond the one-year warranty period covered by the manufacturers have not been historically material. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development: Research and development costs are charged to operations as incurred. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable: The Company nets the factored accounts receivable with the corresponding advance from the Factor, with the net amount reflected in the consolidated balance sheet. The Company assigns trade receivables on a pre-approved non-recourse basis to the Factor under the Factoring Agreement on an ongoing basis. Factoring charges recognized on assignment of receivables are included in selling, general and administrative expenses in the consolidated statements of operations and amounted to $ 68,100 70,666 Financing Receivables. In September 2010, the FASB issued, and the Company adopted, an Accounting Standards Update requiring enhanced disclosure of the credit quality of financing receivables, as defined therein, and the adequacy of allowances for credit losses. Management considers amounts due from the Company’s factor to be “financing receivables”. Trade accounts receivable, other receivables, and receivables from our Hong Kong Joint Venture are not considered to be financing receivables. 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 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. At March 31, 2015 and 2014, an allowance of $ 57,000 |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs: The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with inbound freight are included in cost of goods sold. Shipping and handling costs associated with outbound freight are included in selling, general and administrative expenses and totaled $ 248,128 182,668 |
Inventory, Policy [Policy Text Block] | Inventories: Inventories are stated at the lower of cost (first in/first out method) or market. Included as a component of finished goods inventory are additional non-material costs. These costs include overhead costs, freight, import duty and inspection fees of $ 355,017 381,891 |
Income Tax, Policy [Policy Text Block] | Income Taxes: The Company follows 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 related to income tax matters are recorded as income tax expenses. The Company had recorded a long-term liability of $ 25,000 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of long-lived assets : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The factors considered in performing this assessment include current operating results, anticipated future results, the manner in which the asset is used and the effects of obsolescence, demand, competition and other economic factors. Accordingly, when indicators of impairment are present, the Company evaluates the carrying value of these assets in relation to the operating performance of the business and future undiscounted cash flows expected to result from the use of these assets. Impairment losses are recognized when the sum of expected future cash flows is less than the assets’ carrying value, and losses are determined based upon the excess carrying value of the assets over its fair value. Based on this assessment, no impairment to long-lived assets resulted for fiscal years ended March 31, 2015 and 2014. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency : The activity and accounts of the Hong Kong Joint Venture are denominated in Hong Kong dollars and are translated to US dollars in consolidation. The Company translates the accounts of the Hong Kong Joint Venture at the applicable exchange rate in effect at the year-end date for balance sheet purposes and at the average exchange rate for the reporting period for statement of operation purposes. Transaction gains and losses arising from transactions denominated in foreign currencies are included in the results of operations. The Company currently does not maintain cash in foreign banks to support its operations in Hong Kong. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Share There were securities considered to be antidilutive outstanding during the 2015 or 2014. |
New Accounting Pronouncements, Policy [Policy Text Block] | Changes to accounting principles generally accepted in the United States of America (US. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updated (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASU’s. Recently issued ASU’s were evaluated and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements. Revision of Prior Period Financial Statements 141,799 141,799 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: March 31, 2015 2014 Leasehold improvements $ 166,722 $ 166,722 Machinery and equipment 190,400 190,400 Furniture and fixtures 261,292 261,292 Computer equipment 286,528 286,528 904,942 904,942 Less accumulated depreciation (800,324) (758,730) $ 104,618 $ 146,212 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Each of the operating leases for real estate has renewal options with terms and conditions similar to the original lease. Rent expense, including common area maintenance, totaled $ 190,375 185,625 2020 2016 2017 2018 2019 Remainder Future minimum lease payments are as follows: 222,915 165,922 162,327 164,366 0 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense (benefit) from continuing operations for the Company are as follows: 2015 2014 Current (benefit) expense U.S. Federal $ (25,000) $ - U.S. State - - Deferred (benefit) expense - 2,310,835 Total income tax (benefit) expense $ (25,000) $ 2,310,835 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the statutory federal income tax provision and the actual effective tax provision for continuing operations is as follows: Years ended March 31, 2015 2014 Federal tax (benefit) at statutory rate (34%) before loss carry-forward $ (1,193,309) $ (749,936) Non-repatriated loss (earnings) of Hong Kong Joint Venture 346,832 218,452 Permanent differences 32,713 26,281 State income tax expense net of federal effect (81,738) (50,658) True-up adjustments and allowance 870,502 2,866,696 Income tax (benefit) expense $ (25,000) $ 2,310,835 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The individual components of the Company’s deferred tax assets are as follows: March 31, 2015 2014 Deferred tax assets: Financial statement accruals and allowances $ 57,965 $ 63,321 Inventory uniform capitalization 28,250 45,885 Net operating loss carry forward 2,389,602 1,433,185 Foreign tax credit carry forward 1,190,390 1,516,111 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,727,908) (3,120,203) Net deferred tax asset $ - $ - |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Schedule of Stock Options Roll Forward [Table Text Block] | The following tables summarize the status of stock options at March 31, 2014 and option transactions for the year then ended: Weighted Average For the Year Ended March 31, 2014: Number of Shares Exercise Price Exercised on March 14, 2014 Grant 1 25,000 3.25 Expired on December 14, 2013 Grant 2 97,000 5.51 122,000 5.05 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Status as of March 31, 2014 Number of Shares Presently exercisable 0 Outstanding options by Grant as of March 31, 2013 Number of options Grant 1 25,000 Average exercise price per option $ 3.25 Exercised March 14, 2014 Number of options Grant 2 97,000 Average exercise price per option $ 5.51 Expired unexercised December 14, 2013 |
QUARTERLY FINANCIAL DATA (UNA28
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The unaudited quarterly results of operations for fiscal years 2015 and 2014 are summarized as follows: Quarter Ended June 30, September 30, December 31, March 31, 2015 Net sales $ 2,514,385 $ 2,223,943 $ 2,371,016 $ 2,782,210 Gross profit 611,488 493,516 382,335 840,771 Net loss (742,849) (1,112,264) (1,101,372) (748,500) Net loss per share: Basic (0.32) (0.48) (0.48) (0.32) Diluted (0.32) (0.48) (0.48) (0.32) 2014 Net sales $ 3,005,669 $ 3,195,611 $ 3,738,914 $ 2,636,933 Gross profit 749,324 809,155 1,125,470 157,035 Net loss (19,530) (2,559,218) (367,190) (1,504,306) Net loss per share: Basic (0.01) (1.12) (0.16) (0.65) Diluted (0.01) (1.12) (0.16) (0.65) |
NATURE OF BUSINESS AND SUMMAR29
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Equity Method Investment, Ownership Percentage | 50.00% | ||
Factoring Charges | $ 68,100 | $ 70,666 | |
Allowance for Doubtful Accounts Receivable | 57,000 | 57,000 | $ 57,012 |
Shipping, Handling and Transportation Costs | 248,128 | 182,668 | |
Direct Operating Costs | 355,017 | 381,891 | |
Long-term Debt, Excluding Current Maturities, Total | 0 | 25,000 | |
Retained Earnings (Accumulated Deficit) | $ 4,588,332 | 8,293,317 | |
Hong Kong Joint Venture [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Retained Earnings (Accumulated Deficit) | $ 141,799 | $ 141,799 |
FINANCIAL CONDITION, LIQUIDIT30
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Organization Consolidation And Presentation OF Financial Statements [Line Items] | ||
Income (Loss) From Continuing Operations Before Equity Method Investments, Income Taxes, Extraordinary Items, Cumulative Effects Of Changes In Accounting Principles, Noncontrolling Interest | $ (2,601,426) | $ (1,979,462) |
Sales Revenue, Goods, Net | 9,891,554 | 12,577,127 |
Increase Decrease in Working Capital | 2,543,227 | |
Working Capital | $ 5,611,552 | $ 8,154,779 |
Line of Credit Facility, Interest Rate at Period End | 5.25% | |
Hong Kong Joint Venture [Member] | ||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 3.25% | |
Long-term Line of Credit | $ 1,000,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment, Gross | $ 904,942 | $ 904,942 |
Less accumulated depreciation | (800,324) | (758,730) |
Property, Plant and Equipment, Net | 104,618 | 146,212 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment, Gross | 166,722 | 166,722 |
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 | $ 286,528 | $ 286,528 |
PROPERTY AND EQUIPMENT (Detai32
PROPERTY AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Depreciation, Depletion and Amortization | $ 46,067 | $ 43,943 |
Leasehold improvements [Member] | ||
Property Plant And Equipment Useful Life Description | Shorter of term of lease or useful life of asset | |
Computer equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum [Member] | Furniture and fixtures [Member] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Minimum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Furniture and fixtures [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years |
INVESTMENT IN THE HONG KONG J33
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity Method Investment, Aggregate Cost | $ 12,943,280 | |
Hong Kong Joint Venture accounts payable | $ 299,985 | $ 28,681 |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Related Party Transaction, Purchases from Related Party | $ 6,585,785 | $ 7,407,826 |
Related Party Transaction, Rate | 87.30% | 92.40% |
Hong Kong Joint Venture accounts payable | $ 0 | $ 28,681 |
Receivable from Hong Kong Joint Venture | 135,768 | $ 137,360 |
Accounts Payable, Related Parties | $ 299,985 |
AMOUNTS DUE FROM FACTOR (Detail
AMOUNTS DUE FROM FACTOR (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Factoring Agreement Receivables Sold | $ 8,917,127 | $ 11,370,850 |
Line of Credit Facility, Current Borrowing Capacity | $ 1,977,000 | |
Line of Credit Facility, Interest Rate at Period End | 5.25% | |
Due From Factor | $ 1,217,311 | $ 1,397,951 |
Line of Credit Facility, Borrowing Capacity, Description | The Factoring Agreement provides for financing 80% of uncollected non-recourse receivables assigned to the factor, and 50% of qualifying inventory up to a maximum borrowing on inventory of $1,000,000. | |
Line of Credit Facility, Interest Rate Description | Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less two percentage points (effective rate of 1.25%) at March 31, 2015 and 2014. | Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less two percentage points (effective rate of 1.25%) at March 31, 2015 and 2014. |
LEASES (Details)
LEASES (Details) | Mar. 31, 2015USD ($) |
2,016 | $ 222,915 |
2,017 | 165,922 |
2,018 | 162,327 |
2,019 | 164,366 |
2020 Remainder | $ 0 |
LEASES (Details Textual)
LEASES (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2009 | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Feb. 28, 2012ft² | Jun. 30, 2009ft² | |
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 expires in March 2019. | ||||
Operating Lease Rent Increment Percentage | 3.00% | ||||
Operating Leases, Rent Expense | $ | $ 190,375 | $ 185,625 | |||
Warehouse [Member] | |||||
Land Subject to Ground Leases | 3,000 | ||||
Office in Naperville [Member] | |||||
Land Subject to Ground Leases | 3,400 |
SHORT-TERM BORROWINGS AND CRE37
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS (Details Textual) - Mar. 31, 2015 - USD ($) | Total |
Short-term Debt [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 5.25% |
Merchant Factors Corporation [Member] | |
Short-term Debt [Line Items] | |
Long-term Line of Credit | $ 1,000,000 |
Line of Credit Facility, Interest Rate at Period End | 80.00% |
Line Of Credit Facility Interest Rate At Period End Maximum | 50.00% |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Hong Kong Joint Venture [Member] | |
Short-term Debt [Line Items] | |
Long-term Line of Credit | $ 1,000,000 |
Line of Credit Facility, Interest Rate at Period End | 3.25% |
Accounts Payable, Related Parties | $ 299,985 |
Line of Credit Facility, Frequency of Payments | 60 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Current (benefit) expense | ||
U.S. Federal | $ (25,000) | $ 0 |
U.S. State | 0 | 0 |
Deferred (benefit) expense | 0 | 2,310,835 |
Total income tax (benefit) expense | $ (25,000) | $ 2,310,835 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Federal tax (benefit) at statutory rate (34%) before loss carry-forward | $ (1,193,309) | $ (749,936) |
Non-repatriated loss (earnings) of Hong Kong Joint Venture | 346,832 | 218,452 |
Permanent differences | 32,713 | 26,281 |
State income tax expense - net of federal effect | (81,738) | (50,658) |
True-up adjustments and allowance | 870,502 | 2,866,696 |
Income tax (benefit) expense | $ (25,000) | $ 2,310,835 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred tax assets: | ||
Financial statement accruals and allowances | $ 57,965 | $ 63,321 |
Inventory uniform capitalization | 28,250 | 45,885 |
Net operating loss carry forward | 2,389,602 | 1,433,185 |
Foreign tax credit carry forward | 1,190,390 | 1,516,111 |
Research and development tax credit carry forward | 61,701 | 61,701 |
Allowance for unrealizable deferred tax assets | (3,727,908) | (3,120,203) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accumulated Operating Loss Carryforwards | $ 2,568,000 | $ 1,040,000 |
Operating Loss Carryforwards | 6,370,000 | 3,687,000 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 25,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |
Operating Loss Carryforwards Expiration Period | expire in various amounts at dates from 2015 through 2031 | expire in various amounts at dates from 2015 through 2031 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Mar. 31, 2014 - $ / shares | Total |
Number of Shares | 122,000 |
Weighted Average Exercise Price | $ 5.05 |
Issue One [Member] | |
Exercised on March 14, 2014 - Grant 1, Number of Shares | 25,000 |
Exercised on March 14, 2014 - Grant 1, Weighted Average Exercise Price | $ 3.25 |
Number of Shares | 25,000 |
Weighted Average Exercise Price | $ 3.25 |
Issue Two [Member] | |
Expired on December 14, 2013 - Grant 2, Number of Shares | 97,000 |
Expired on December 14, 2013 - Grant 2, Weighted Averaged Exercise Price | $ 5.51 |
Number of Shares | 97,000 |
Weighted Average Exercise Price | $ 5.51 |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) - Mar. 31, 2014 - $ / shares | Total |
Presently exercisable Number of Shares | 0 |
Number of options | 122,000 |
Average exercise price per option | $ 5.05 |
Issue One [Member] | |
Number of options | 25,000 |
Average exercise price per option | $ 3.25 |
Expiration date | Mar. 14, 2014 |
Issue Two [Member] | |
Number of options | 97,000 |
Average exercise price per option | $ 5.51 |
Expiration date | Dec. 14, 2013 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) - $ / shares | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Mar. 31, 2009 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 25,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.25 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 57.73% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.30% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years | ||
Non Qualified Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 120,000 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 97,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 5.51 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Detail Textual) | 12 Months Ended |
Mar. 31, 2015USD ($) | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 631,000 |
MAJOR CUSTOMERS (Details Textua
MAJOR CUSTOMERS (Details Textual) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Method Investment, Ownership Percentage | 50.00% | |
Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 10.00% | 13.00% |
Trade Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 13.00% | 17.00% |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% |
QUARTERLY FINANCIAL DATA (UNA47
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net sales | $ 2,782,210 | $ 2,371,016 | $ 2,223,943 | $ 2,514,385 | $ 2,636,933 | $ 3,738,914 | $ 3,195,611 | $ 3,005,669 | ||
Gross profit | 840,771 | 382,335 | 493,516 | 611,488 | 157,035 | 1,125,470 | 809,155 | 749,324 | $ 2,328,110 | $ 2,840,984 |
Net loss | $ (748,500) | $ (1,101,372) | $ (1,112,264) | $ (742,849) | $ (1,504,306) | $ (367,190) | $ (2,559,218) | $ (19,530) | $ (3,704,985) | $ (4,450,244) |
Net loss per share: | ||||||||||
Basic (in dollars per share) | $ (0.32) | $ (0.48) | $ (0.48) | $ (0.32) | $ (0.65) | $ (0.16) | $ (1.12) | $ (0.01) | $ (1.60) | $ (1.94) |
Diluted (in dollars per share) | $ (0.32) | $ (0.48) | $ (0.48) | $ (0.32) | $ (0.65) | $ (0.16) | $ (1.12) | $ (0.01) | $ (1.60) | $ (1.94) |
RETIREMENT PLAN (Details Textua
RETIREMENT PLAN (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 4.00% | |
Defined Benefit Plan, Contributions by Employer | $ 50,963 | $ 59,027 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Capitalization Finite Lived Intangible Assets Legal Expenses | $ 89,434 | |
Amortization of Intangible Assets | 4,472 | $ 4,472 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 17,887 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
SCHEDULE II - VALUATION AND Q50
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Allowance for doubtful accounts - Balance at beginning of year | $ 57,000 | $ 57,012 |
Allowance for doubtful accounts - Charged to cost and expenses | 0 | 0 |
Allowance for doubtful accounts - Deductions | 0 | 0 |
Allowance for doubtful accounts - Balance at end of year | 57,000 | 57,000 |
Valuation allowance for deferred tax asset - Balance at beginning of year | 3,069,578 | 300,000 |
Valuation allowance for deferred tax asset - Charged to cost and expenses | 658,330 | 2,769,578 |
Valuation allowance for deferred tax asset - Deductions | 0 | 0 |
Valuation allowance for deferred tax asset - Balance at end of year | $ 3,727,908 | $ 3,069,578 |