Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Aug. 31, 2016 | Sep. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UNIVERSAL SECURITY INSTRUMENTS INC | ||
Entity Central Index Key | 102,109 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 11,278,438 | ||
Trading Symbol | UUU | ||
Entity Common Stock, Shares Outstanding | 2,312,887 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 362,728 | $ 49,427 |
Funds held by factor | 0 | 631,906 |
Accounts receivable: | ||
Trade, less allowance for doubtful accounts | 17,389 | 381,254 |
Receivables from employees | 62,090 | 53,990 |
Receivable from Hong Kong Joint Venture | 60,506 | 135,768 |
Accounts, Notes, Loans and Financing Receivable, Net, Current | 139,985 | 571,012 |
Amount due from factor | 1,789,619 | 1,217,311 |
Inventories - finished goods | 3,883,247 | 3,852,182 |
Prepaid expenses | 410,166 | 438,745 |
TOTAL CURRENT ASSETS | 6,585,745 | 6,760,583 |
INVESTMENT IN HONG KONG JOINT VENTURE | 11,779,663 | 12,943,280 |
PROPERTY AND EQUIPMENT - NET | 71,556 | 104,618 |
INTANGIBLE ASSETS - NET | 67,075 | 71,547 |
OTHER ASSETS | 6,000 | 26,000 |
TOTAL ASSETS | 18,510,039 | 19,906,028 |
CURRENT LIABILITIES | ||
Line of credit - factor | 313,891 | 0 |
Accounts payable - trade | 587,343 | 668,846 |
Accounts payable - Hong Kong Joint Venture | 1,070,103 | 299,985 |
Accrued liabilities: | ||
Accrued payroll and employee benefits | 76,480 | 69,180 |
Accrued commissions and other | 74,327 | 111,020 |
TOTAL CURRENT LIABILITIES | 2,122,144 | 1,149,031 |
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, 2016 and 2015 | 23,129 | 23,129 |
Additional paid-in capital | 12,885,841 | 12,885,841 |
Retained earnings | 2,450,540 | 4,588,332 |
Accumulated other comprehensive income | 1,028,385 | 1,259,695 |
TOTAL SHAREHOLDERS' EQUITY | 16,387,895 | 18,756,997 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 18,510,039 | $ 19,906,028 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
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 issued | 2,312,887 | 2,312,887 |
Common stock, shares outstanding | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 13,740,840 | $ 9,891,554 |
Cost of goods sold - acquired from Joint Venture | 9,670,761 | 6,616,789 |
Cost of goods sold - other | 290,649 | 946,655 |
GROSS PROFIT | 3,779,430 | 2,328,110 |
Selling, general and administrative expense | 4,480,330 | 4,175,584 |
Research and development expense | 665,278 | 776,778 |
Operating loss | (1,366,178) | (2,624,252) |
Other (expense) income : | ||
Loss from investment in Hong Kong Joint Venture | (741,846) | (1,128,559) |
Interest (expense) income | (29,768) | 22,826 |
Loss from operations before income taxes | (2,137,792) | (3,729,985) |
Income tax benefit | 0 | 25,000 |
NET LOSS | $ (2,137,792) | $ (3,704,985) |
Loss per share: | ||
Basic and diluted (in dollars per share) | $ (0.92) | $ (1.60) |
Shares used in computing net loss per share: | ||
Weighted average basis and diluted shares outstanding (in shares) | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
NET LOSS | $ (2,137,792) | $ (3,704,985) |
Other Comprehensive (Loss) Income Company’s Portion of Hong Kong Joint Venture’s Other Comprehensive (Loss) Income: | ||
Currency translation | (156,983) | (53,289) |
Unrealized (loss) gain on investment securities | (74,327) | 122,856 |
Total Comprehensive (Loss) Income | (231,310) | 69,567 |
COMPREHENSIVE LOSS | $ (2,369,102) | $ (3,635,418) |
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, 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) | |||
Unrealized gain on 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 | ||||
Currency translation | (156,983) | (156,983) | |||
Unrealized gain on securities | (74,327) | (74,327) | |||
Net loss | (2,137,792) | (2,137,792) | |||
Balance at Mar. 31, 2016 | $ 16,387,895 | $ 23,129 | $ 12,885,841 | $ 2,450,540 | $ 1,028,385 |
Balance (in shares) at Mar. 31, 2016 | 2,312,887 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (2,137,792) | $ (3,704,985) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 37,534 | 46,067 |
Deferred income tax benefit | 0 | (25,000) |
Loss from investment in Hong Kong Joint Venture | 741,846 | 1,128,559 |
Changes in operating assets and liabilities: | ||
(Increase) Decrease in accounts receivable and amounts due from factor | (141,281) | 554,699 |
(Increase) Decrease in inventories | (31,065) | 288,131 |
Decrease (Increase) in prepaid expenses | 28,579 | (32,733) |
Increase in accounts payable and accrued expenses | 659,222 | 363,468 |
Decrease in other assets | 20,000 | 12,134 |
NET CASH USED IN OPERATING ACTIVITIES | (822,957) | (1,369,660) |
INVESTING ACTIVITIES: | ||
Change in funds held by factor | 631,906 | (631,906) |
Cash distributions from Joint Venture | 190,461 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 822,367 | (631,906) |
FINANCING ACTIVITIES: | ||
Net proceeds from line of credit - factor | 313,891 | 0 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 313,891 | 0 |
INCREASE (DECREASE) IN CASH | 313,301 | (2,001,566) |
Cash at beginning of period | 49,427 | 2,050,993 |
CASH AT END OF PERIOD | 362,728 | 49,427 |
Supplemental information: | ||
Interest paid | 29,768 | 0 |
Income taxes paid | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | 50 102,176 68,100 January 6, 2018 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. 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, 2016 and 2015, an allowance of $ 57,000 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, if any, related to income tax matters are recorded as income tax expenses. See Note H, Income Taxes. 267,128 248,128 In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern, which is included in Accounting Standards Codification (“ASC”) 205, Presentation of Financial Statements In June 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606. Revenue Recognition, Revenue RecognitionConstruction-Type and Production-Type Contracts. Property, Plant, and Equipment, IntangiblesGoodwill and Other) The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. This guidance is effective for annual periods beginning on or after December 15, 2017, including interim reporting periods within that reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company is currently assessing the impact that adopting this new accounting standard will have on the consolidated financial statements and footnote disclosures. Other 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. |
MANAGEMENT PLANS
MANAGEMENT PLANS | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE B MANAGEMENT PLANS The Company had net losses of $ 2,137,792 3,704,985 1,147,951 5,611,552 4,463,601 Our short-term borrowings to finance operating losses, 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. In addition, we have secured extended payment terms for purchases up to $2,000,000 from our Hong Kong Joint Venture for the purchase of the new sealed battery products. These amounts are unsecured, bear interest at 3.25 provides for repayment terms of ninety days for each advance thereunder 3,338,000 The Company has a history of sales that are insufficient to generate profitable operations and has limited sources of financing. Management’s plan in response to these conditions includes increasing sales of the Company’s new line of sealed battery safety alarms, decreasing payroll expenses, and seeking additional financing on our existing credit facility. The Company has seen positive results on this plan during the fiscal year ended March 31, 2016 due to the release of certain of its sealed battery products and management expects this growth to continue going forward. Though no assurances can be given, if management’s plan is successful over the next twelve months, the Company anticipates that it should be able to meet its cash needs. Cash flows and credit availability is expected to be adequate to fund operations for one year from the issuance date of these consolidated financial statements. |
INVESTMENT IN THE HONG KONG JOI
INVESTMENT IN THE HONG KONG JOINT VENTURE | 12 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE C INVESTMENT IN THE HONG KONG JOINT VENTURE The Company holds a 50 11,779,663 12,943,280 50 March 31, 2016 2015 Current assets $ 10,528,508 $ 11,368,526 Property and other assets 17,903,298 20,606,047 Total assets $ 28,431,806 $ 31,974,573 Current liabilities $ 4,383,546 $ 5,980,992 Non-current liabilities 470,850 - Equity 23,577,410 25,993,581 Total liabilities and equity $ 28,431,806 $ 31,974,573 For the Year Ended March 31, 2016 2015 Net sales $ 17,581,195 $ 15,753,815 Gross profit 2,337,649 2,413,517 Net loss (1,584,012) (2,418,189) During the years ended March 31, 2016 and 2015, the Company purchased $ 9,078,485 6,585,785 97.0 87.3 60,506 135,768 At March 31, 2016 and 2015, the Company borrowed $ 1,070,103 299,985 2,000,000 3.25 190,461 729,135 299,985 340,968 0 |
SHORT-TERM BORROWINGS AND CREDI
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE D SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS On January 15, 2015, the Company entered into a Factoring Agreement (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 for the assignment of accounts receivable expires on January 6, 2018 and provides for continuation of the program on successive two year periods until terminated by one of the parties to the Agreement. In accordance with the provisions of the Agreement with Merchant, the Company may take advances equal to eighty percent ( 80 50 1,000,000 2,067,000 5.50 5.25 313,891 0 |
AMOUNTS DUE FROM FACTOR
AMOUNTS DUE FROM FACTOR | 12 Months Ended |
Mar. 31, 2016 | |
Amount Due From Factor [Abstract] | |
Amounts Due From Factor [Text Block] | NOTE E - AMOUNTS DUE FROM FACTOR Under the Agreement, the Company assigned receivables of $ 12,942,571 8,917,127 1,789,619 1,217,311 Collected cash maintained on deposit with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 1.00% at March 31, 2016.) |
PROPERTY AND EQUIPMENT - NET
PROPERTY AND EQUIPMENT - NET | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE F 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 for financial reporting purposes and accelerated methods for income tax purposes. 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 10 Furniture and fixtures - 5 15 Computer equipment - 5 March 31, 2016 2015 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 and amortization (833,386) (800,324) $ 71,556 $ 104,618 Depreciation and amortization expense totaled $ 37,534 46,067 |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2016 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | NOTE G - 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. This lease is subject to increasing rentals at 3 3,000 3,400 214,072 190,375 2017 2018 2019 Total Future minimum lease payments are as follows: 202,950 154,188 142,628 $ 499,766 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2016 | |
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. At March 31, 2016, the Company has total net operating loss carry forwards of approximately $ 7,527,000 2016 2015 Current benefit Federal $ - $ (25,000) State - - Deferred benefit - - Total income tax benefit $ - $ (25,000) Years ended March 31, 2016 2015 Federal benefit at statutory rate (34%) before loss carry-forward $ (726,849) $ (1,268,195) Non-repatriated loss of Hong Kong Joint Venture 252,228 383,710 Permanent differences 83,024 32,713 State income tax benefit net of federal effect (38,815) (111,900) Increase in deferred tax allowance 430,412 938,672 $ - $ (25,000) March 31, 2016 2015 Deferred tax assets: Accruals and allowances $ 57,922 $ 57,965 Inventory uniform capitalization 26,309 28,250 Net operating loss carry forward 2,821,998 2,389,602 Foreign tax credit carry forward 947,347 1,190,390 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,915,277) (3,727,908) Net deferred tax asset $ - $ - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE I - 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 1,995,000 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2016 | |
Major Customers [Abstract] | |
Major Customers [Text Block] | NOTE J - 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, 2016, the Company had one customer that represented 14.1 13 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE K - QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Results of Operations (Unaudited): Quarter Ended June 30, September 30, December 31, March 31, 2016 Net sales $ 2,936,490 $ 3,278,225 $ 4,112,908 $ 3,413,217 Gross profit 882,427 684,657 1,308,368 903,978 Net loss (777,077) (411,302) (174,172) (775,241) Net loss per share: Basic and diluted (0.34) (0.18) (0.08) (0.34) 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 and diluted (0.32) (0.48) (0.48) (0.32) The accumulated net loss per share when accumulated per the 2016 table above does not equal the total net loss per share as reported on the consolidated statement of operations due to rounding. |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Mar. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure [Text Block] | NOTE L 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 47,338 50,963 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE M RELATED PARTY TRANSACTIONS During the fiscal year ended March 31, 2016 and 2015, inventory purchases and other company expenses of approximately $ 493,000 66,884 |
INTANGIBLE ASSETS - NET
INTANGIBLE ASSETS - NET | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE N INTANGIBLE ASSETS - NET Intangible assets consist of legal expenses of $ 89,434 4,472 4,472 22,359 4,472 The estimated useful lives for financial reporting purposes are as follows: Intangible patent costs 20 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE O SHAREHOLDERS’ EQUITY Under the terms of the Company’s 2011 Non-Qualified Stock Option Plan, 120,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE P SUBSEQUENT EVENTS No events occurred subsequent to March 31, 2016, and to the date of this report, that require disclosure herein. |
NATURE OF BUSINESS AND SUMMAR24
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature Of Operations [Policy Text Block] | Nature of Business: |
Consolidation, Policy [Policy Text Block] | 50 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash: |
Funds Held by Factor [Policy Text Block] | Funds Held by Factor: |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable: 102,176 68,100 January 6, 2018 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. 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, 2016 and 2015, an allowance of $ 57,000 |
Inventory, Policy [Policy Text Block] | Inventories: |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of long-lived assets |
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, if any, related to income tax matters are recorded as income tax expenses. See Note H, Income Taxes. |
Warranties [Policy Text Block] | Warranties: |
Research and Development Expense, Policy [Policy Text Block] | Research and Development: |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs: 267,128 248,128 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | |
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Share: |
New Accounting Pronouncements, Policy [Policy Text Block] | In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern, which is included in Accounting Standards Codification (“ASC”) 205, Presentation of Financial Statements In June 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606. Revenue Recognition, Revenue RecognitionConstruction-Type and Production-Type Contracts. Property, Plant, and Equipment, IntangiblesGoodwill and Other) The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. This guidance is effective for annual periods beginning on or after December 15, 2017, including interim reporting periods within that reporting period and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company is currently assessing the impact that adopting this new accounting standard will have on the consolidated financial statements and footnote disclosures. Other 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. |
INVESTMENT IN THE HONG KONG J25
INVESTMENT IN THE HONG KONG JOINT VENTURE (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Financial Statement Information Of Joint Ventures [Table Text Block] | March 31, 2016 2015 Current assets $ 10,528,508 $ 11,368,526 Property and other assets 17,903,298 20,606,047 Total assets $ 28,431,806 $ 31,974,573 Current liabilities $ 4,383,546 $ 5,980,992 Non-current liabilities 470,850 - Equity 23,577,410 25,993,581 Total liabilities and equity $ 28,431,806 $ 31,974,573 For the Year Ended March 31, 2016 2015 Net sales $ 17,581,195 $ 15,753,815 Gross profit 2,337,649 2,413,517 Net loss (1,584,012) (2,418,189) |
PROPERTY AND EQUIPMENT - NET (T
PROPERTY AND EQUIPMENT - NET (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: March 31, 2016 2015 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 and amortization (833,386) (800,324) $ 71,556 $ 104,618 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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 $ 214,072 190,375 2017 2018 2019 Total Future minimum lease payments are as follows: 202,950 154,188 142,628 $ 499,766 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax (benefit) from continuing operations for the Company are as follows: 2016 2015 Current benefit Federal $ - $ (25,000) State - - Deferred benefit - - Total income tax benefit $ - $ (25,000) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended March 31, 2016 2015 Federal benefit at statutory rate (34%) before loss carry-forward $ (726,849) $ (1,268,195) Non-repatriated loss of Hong Kong Joint Venture 252,228 383,710 Permanent differences 83,024 32,713 State income tax benefit net of federal effect (38,815) (111,900) Increase in deferred tax allowance 430,412 938,672 $ - $ (25,000) |
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, 2016 2015 Deferred tax assets: Accruals and allowances $ 57,922 $ 57,965 Inventory uniform capitalization 26,309 28,250 Net operating loss carry forward 2,821,998 2,389,602 Foreign tax credit carry forward 947,347 1,190,390 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,915,277) (3,727,908) Net deferred tax asset $ - $ - |
QUARTERLY FINANCIAL DATA (UNA29
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The unaudited quarterly results of operations for fiscal years 2016 and 2015 are summarized as follows: Quarter Ended June 30, September 30, December 31, March 31, 2016 Net sales $ 2,936,490 $ 3,278,225 $ 4,112,908 $ 3,413,217 Gross profit 882,427 684,657 1,308,368 903,978 Net loss (777,077) (411,302) (174,172) (775,241) Net loss per share: Basic and diluted (0.34) (0.18) (0.08) (0.34) 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 and diluted (0.32) (0.48) (0.48) (0.32) |
NATURE OF BUSINESS AND SUMMAR30
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Factoring Charges | $ 102,176 | $ 68,100 |
Allowance for Doubtful Accounts Receivable | 57,000 | 57,000 |
Shipping, Handling and Transportation Costs | $ 267,128 | $ 248,128 |
Factoring Agreement Expiration Date | Jan. 6, 2018 | |
Factoring Agreement Term | 2 years | |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
MANAGEMENT PLANS (Details Textu
MANAGEMENT PLANS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization Consolidation And Presentation OF Financial Statements [Line Items] | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 2,137,792 | $ 3,704,985 |
Increase Decrease in Working Capital | 1,147,951 | |
Working Capital | $ 4,463,601 | $ 5,611,552 |
Line of Credit Facility, Frequency of Payment and Payment Terms | provides for repayment terms of ninety days for each advance thereunder | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,338,000 | |
Line of Credit Facility, Capacity Available for Trade Purchases | $ 2,137,792 | |
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% |
INVESTMENT IN THE HONG KONG J32
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details) - Hong Kong Joint Venture [Member] - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets | $ 10,528,508 | $ 11,368,526 |
Property and other assets | 17,903,298 | 20,606,047 |
Total assets | 28,431,806 | 31,974,573 |
Current liabilities | 4,383,546 | 5,980,992 |
Non-current liabilities | 470,850 | 0 |
Equity | 23,577,410 | 25,993,581 |
Total liabilities and equity | $ 28,431,806 | $ 31,974,573 |
INVESTMENT IN THE HONG KONG J33
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details 1) - Hong Kong Joint Venture [Member] - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 17,581,195 | $ 15,753,815 |
Gross profit | 2,337,649 | 2,413,517 |
Net loss | $ (1,584,012) | $ (2,418,189) |
INVESTMENT IN THE HONG KONG J34
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Hong Kong Joint Venture accounts payable | $ 1,070,103 | $ 299,985 |
Due to Related Parties, Current | $ 2,067,000 | |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Related Party Transaction, Purchases from Related Party | $ 9,078,485 | $ 6,585,785 |
Related Party Transaction, Rate | 97.00% | 87.30% |
Equity Method Investment, Aggregate Cost | $ 11,779,663 | $ 12,943,280 |
Hong Kong Joint Venture accounts payable | 729,135 | 299,985 |
Receivable from Hong Kong Joint Venture | 60,506 | 135,768 |
Accounts Payable, Related Parties | 1,070,103 | 299,985 |
Long-term Line of Credit | $ 2,000,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.25% | |
Dividends | $ 190,461 | |
Due to Related Parties, Current | $ 340,968 | $ 0 |
SHORT-TERM BORROWINGS AND CRE35
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Short-term Debt [Line Items] | ||
Line of Credit, Current | $ 313,891 | $ 0 |
Due to Related Parties, Current, Total | $ 2,067,000 | |
Factoring Agreement Expiration Date | Jan. 6, 2018 | |
Factoring Agreement Term | 2 years | |
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, Interest Rate, Effective Percentage | 5.50% | 5.25% |
Line of Credit, Current | $ 313,891 | $ 0 |
Factoring Agreement Expiration Date | Jun. 1, 2018 | |
Factoring Agreement Term | 2 years |
AMOUNTS DUE FROM FACTOR (Detail
AMOUNTS DUE FROM FACTOR (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Factoring Agreement Receivables Sold | $ 12,942,571 | $ 8,917,127 |
Due From Factor | $ 1,789,619 | $ 1,217,311 |
Line of Credit Facility, Interest Rate Description | Collected cash maintained on deposit with the factor earns interest at the factors prime rate of interest less 2.5 percent (effective rate of 1.00% at March 31, 2016.) |
PROPERTY AND EQUIPMENT - NET (D
PROPERTY AND EQUIPMENT - NET (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment, Gross | $ 904,942 | $ 904,942 |
Less accumulated depreciation and amortization | (833,386) | (800,324) |
Property, Plant and Equipment, Net | 71,556 | 104,618 |
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 - NET 38
PROPERTY AND EQUIPMENT - NET (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Depreciation, Depletion and Amortization | $ 37,534 | $ 46,067 |
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 |
LEASES (Details)
LEASES (Details) | Mar. 31, 2016USD ($) |
2,017 | $ 202,950 |
2,018 | 154,188 |
2,019 | 142,628 |
Total | $ 499,766 |
LEASES (Details Textual)
LEASES (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2009 | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($)ft² | 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 | $ | $ 214,072 | $ 190,375 | ||
Warehouse [Member] | ||||
Land Subject to Ground Leases | 3,000 | |||
Office in Naperville [Member] | ||||
Land Subject to Ground Leases | 3,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Current benefit | ||
Federal | $ 0 | $ (25,000) |
State | 0 | 0 |
Deferred benefit | 0 | 0 |
Total income tax benefit | $ 0 | $ (25,000) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Federal benefit at statutory rate (34%) before loss carry-forward | $ (726,849) | $ (1,268,195) |
Non-repatriated loss of Hong Kong Joint Venture | 252,228 | 383,710 |
Permanent differences | 83,024 | 32,713 |
State income tax benefit - net of federal effect | (38,815) | (111,900) |
Increase in deferred tax allowance | 430,412 | 938,672 |
Income tax benefit | $ 0 | $ (25,000) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax assets: | ||
Accruals and allowances | $ 57,922 | $ 57,965 |
Inventory uniform capitalization | 26,309 | 28,250 |
Net operating loss carry forward | 2,821,998 | 2,389,602 |
Foreign tax credit carry forward | 947,347 | 1,190,390 |
Research and development tax credit carry forward | 61,701 | 61,701 |
Allowance for unrealizable deferred tax assets | (3,915,277) | (3,727,908) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | Mar. 31, 2016USD ($) |
Operating Loss Carryforwards | $ 7,527,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Minimum [Member] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 94,000 |
Maximum [Member] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,995,000 |
MAJOR CUSTOMERS (Details Textua
MAJOR CUSTOMERS (Details Textual) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
One Customer [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 14.10% | |
One Customer [Member] | Trade Accounts Receivable [Member] | ||
Concentration Risk, Percentage | 13.00% | |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
QUARTERLY FINANCIAL DATA (UNA47
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 3,413,217 | $ 4,112,908 | $ 3,278,225 | $ 2,936,490 | $ 2,782,210 | $ 2,371,016 | $ 2,223,943 | $ 2,514,385 | ||
Gross profit | 903,978 | 1,308,368 | 684,657 | 882,427 | 840,771 | 382,335 | 493,516 | 611,488 | $ 3,779,430 | $ 2,328,110 |
Net loss | $ (775,241) | $ (174,172) | $ (411,302) | $ (777,077) | $ (748,500) | $ (1,101,372) | $ (1,112,264) | $ (742,849) | $ (2,137,792) | $ (3,704,985) |
Net loss per share: | ||||||||||
Basic and diluted (in dollars per share) | $ (0.34) | $ (0.08) | $ (0.18) | $ (0.34) | $ (0.32) | $ (0.48) | $ (0.48) | $ (0.32) | $ (0.92) | $ (1.60) |
RETIREMENT PLAN (Details Textua
RETIREMENT PLAN (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 4.00% | |
Defined Benefit Plan, Contributions by Employer | $ 47,338 | $ 50,963 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current, Total | $ 2,067,000 | |
Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 493,000 | |
Due to Related Parties, Current, Total | 66,884 | |
Maximum [Member] | Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 66,884 | |
Minimum [Member] | Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 65,420 |
INTANGIBLE ASSETS - NET (Detail
INTANGIBLE ASSETS - NET (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capitalization Finite Lived Intangible Assets Legal Expenses | $ 89,434 | |
Amortization of Intangible Assets | 4,472 | $ 4,472 |
Finite-Lived Intangible Assets, Accumulated Amortization | 22,359 | $ 17,887 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 4,472 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 4,472 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 4,472 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 4,472 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 4,472 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) | Mar. 31, 2016shares |
Non Qualified Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 120,000 |