Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 8,788,971 | ||
Trading Symbol | UUU | ||
Entity Common Stock, Shares Outstanding | 2,312,887 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
CURRENT ASSETS | ||
Cash | $ 262,355 | $ 362,728 |
Accounts receivable: | ||
Trade, less allowance for doubtful accounts | 170,010 | 17,389 |
Receivables from employees | 60,087 | 62,090 |
Receivable from Hong Kong Joint Venture | 17,584 | 60,506 |
Accounts, Notes, Loans and Financing Receivable, Net, Current | 247,681 | 139,985 |
Amount due from factor | 2,009,471 | 1,789,619 |
Inventories - finished goods | 4,700,104 | 3,883,247 |
Prepaid expenses | 491,928 | 410,166 |
TOTAL CURRENT ASSETS | 7,711,539 | 6,585,745 |
INVESTMENT IN HONG KONG JOINT VENTURE | 10,562,837 | 12,417,450 |
PROPERTY AND EQUIPMENT - NET | 46,293 | 71,556 |
INTANGIBLE ASSETS - NET | 62,604 | 67,075 |
OTHER ASSETS | 4,000 | 6,000 |
TOTAL ASSETS | 18,387,273 | 19,147,826 |
CURRENT LIABILITIES | ||
Line of credit - factor | 2,264,125 | 313,891 |
Accounts payable - trade | 525,638 | 587,343 |
Accounts payable - Hong Kong Joint Venture | 1,206,731 | 1,070,103 |
Accrued liabilities: | ||
Accrued payroll and employee benefits | 82,894 | 76,480 |
Accrued commissions and other | 75,627 | 74,327 |
TOTAL CURRENT LIABILITIES | 4,155,015 | 2,122,144 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $.01 par value per share; 20,000,000 shares authorized, 2,312,887 shares issued and outstanding at March 31, 2017 and 2016 | 23,129 | 23,129 |
Additional paid-in capital | 12,885,841 | 12,885,841 |
Retained earnings | 963,430 | 3,022,332 |
Accumulated other comprehensive income | 359,858 | 1,094,380 |
TOTAL SHAREHOLDERS’ EQUITY | 14,232,258 | 17,025,682 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 18,387,273 | $ 19,147,826 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2017 | Mar. 31, 2016 |
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, 2017 | Mar. 31, 2016 | |
Net sales | $ 14,083,428 | $ 13,740,840 |
Cost of goods sold - acquired from Joint Venture | 9,380,752 | 9,670,761 |
Cost of goods sold - other | 554,078 | 290,649 |
GROSS PROFIT | 4,148,598 | 3,779,430 |
Selling, general and administrative expense | 4,444,230 | 4,480,330 |
Research and development expense | 682,508 | 665,278 |
Operating loss | (978,140) | (1,366,178) |
Other expense: | ||
Loss from investment in Hong Kong Joint Venture | (1,017,510) | (741,846) |
Interest expense, net | (63,252) | (29,768) |
Loss from operations before income taxes | (2,058,902) | (2,137,792) |
Income tax benefit | 0 | 0 |
NET LOSS | $ (2,058,902) | $ (2,137,792) |
Loss per share: | ||
Basic and diluted (in dollars per share) | $ (0.89) | $ (0.92) |
Shares used in computing net loss per share: | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 2,312,887 | 2,312,887 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
NET LOSS | $ (2,058,902) | $ (2,137,792) |
Other Comprehensive Loss Company's Portion of Hong Kong Joint Venture’s Other Comprehensive Loss: | ||
Currency translation | (657,806) | (156,983) |
Unrealized loss on investment securities | (76,716) | (74,327) |
Total Other Comprehensive Loss | (734,522) | (231,310) |
COMPREHENSIVE LOSS | $ (2,793,424) | $ (2,369,102) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accum. Other Comprehensive Income [Member] |
Balance at Mar. 31, 2015 | $ 19,394,784 | $ 23,129 | $ 12,885,841 | $ 5,160,124 | $ 1,325,690 |
Balance (in shares) at Mar. 31, 2015 | 2,312,887 | ||||
Currency translation | (156,983) | (156,983) | |||
Unrealized loss on investment securities | (74,327) | (74,327) | |||
Net loss | (2,137,792) | (2,137,792) | |||
Balance at Mar. 31, 2016 | 17,025,682 | $ 23,129 | 12,885,841 | 3,022,332 | 1,094,380 |
Balance (in shares) at Mar. 31, 2016 | 2,312,887 | ||||
Currency translation | (657,806) | (657,806) | |||
Unrealized loss on investment securities | (76,716) | (76,716) | |||
Net loss | (2,058,902) | (2,058,902) | |||
Balance at Mar. 31, 2017 | $ 14,232,258 | $ 23,129 | $ 12,885,841 | $ 963,430 | $ 359,858 |
Balance (in shares) at Mar. 31, 2017 | 2,312,887 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (2,058,902) | $ (2,137,792) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 29,734 | 37,534 |
Loss from investment in Hong Kong Joint Venture | 1,017,510 | 741,846 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable and amounts due from factor | (327,548) | (141,281) |
Increase in inventories | (816,857) | (31,065) |
(Increase) Decrease in prepaid expenses | (81,762) | 28,579 |
Increase in accounts payable and accrued expenses | 82,637 | 659,222 |
Decrease in other assets | 2,000 | 20,000 |
NET CASH USED IN OPERATING ACTIVITIES | (2,153,188) | (822,957) |
INVESTING ACTIVITIES: | ||
Change in funds held by factor | 0 | 631,906 |
Cash distributions from Joint Venture | 102,581 | 190,461 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 102,581 | 822,367 |
FINANCING ACTIVITIES: | ||
Net proceeds from line of credit - factor | 1,950,234 | 313,891 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,950,234 | 313,891 |
(DECREASE) INCREASE IN CASH | (100,373) | 313,301 |
Cash at beginning of period | 362,728 | 49,427 |
CASH AT END OF PERIOD | 262,355 | 362,728 |
Supplemental information: | ||
Interest paid | 63,252 | 29,768 |
Income taxes paid | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | NOTE A NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Principles of Consolidation: 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. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk with cash. 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 criteria are met: evidence of an arrangement exists; the fee is fixed and determinable; delivery has taken place; and collectability is reasonably assured. Customers may not return, exchange or refuse acceptance of goods without our approval. However, the Company has entered into an agreement with a customer to grant pre-approved rights of return of up to fifty percent of products sold on certain invoices to provide for and gain acceptance within certain markets. When a pre-approved right of return is granted, revenue recognition is deferred until the right of return expires. We have established allowances to cover anticipated doubtful accounts based upon historical experience. Accounts Receivable: a factoring agreement 107,879 102,176 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, 2017 and 2016, an allowance of $ 57,000 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 freight, import duty and inspection fees. Expenses approximately 43,000 37,000 : 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, 2017 and 2016. The Company recognizes a liability or asset for the deferred tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the consolidated financial statements. These temporary differences may result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. The deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided whenever it is more likely than not that a deferred tax asset will not be realized. The Company follows Accounting Standards Codification ( 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. Shipping and Handling Fees and Costs: 315,957 267,128 : 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 assets and liabilities and at the average exchange rate for the reporting period for statement of operation purposes. The Company currently does not maintain cash in foreign banks to support its operations in Hong Kong. The cumulative balance of currency 325,725 983,529 Basic net loss per share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is anti-dilutive) for the period. As a result of the net losses, the weighted average number of common shares outstanding is identical for the years ended March 31, 2017 and 2016 for both basic and diluted shares. In addition, there were no other securities outstanding during 2017 or 2016. Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASU’s. 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. In December 2016 the FASB issued Accounting Standards Update No. 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, Narrow Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies and provides guidance on eight cash flow classification issues and is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
MANAGEMENT'S PLAN
MANAGEMENT'S PLAN | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE B MANAGEMENT’S PLAN The Company had net losses of $ 2,058,902 2,137,792 907,077 4,463,601 3,556,524 2,153,188 822,957 respectively Our short-term borrowings to finance operating losses, trade accounts receivable, and foreign inventory purchases are provided pursuant to the terms of a factoring agreement 3,000,000 inventory. 4.00 provide for repayment terms of ninety days for each advance thereunder. 1,385,000 We anticipate that the introduction of our complete line of sealed smoke and carbon monoxide alarms will result in increased sales. These sealed products will compete on price and functionality with similar products offered by our larger competitors. While we believe there will be market acceptance of our 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 and potentially impact our ability to continue operations. 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 resulting from the delivery of the Company’s new line of sealed battery ionization smoke alarms and carbon monoxide products, and obtaining additional financing on its credit facility. The Company has seen positive results on this plan during the fiscal year ended March 31, 2017 due to the release of its sealed battery products and management expects this growth to continue going forward. Though no assurances can be given, if management’s plan continues to be successful over the next twelve months, the Company anticipates that it should be able to meet its cash needs. Cash flows and credit availability is expected to be adequate to fund operations for one year from the issuance date of this report. |
INVESTMENT IN THE HONG KONG JOI
INVESTMENT IN THE HONG KONG JOINT VENTURE | 12 Months Ended |
Mar. 31, 2017 | |
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 10,562,837 12,417,450 March 31, 2016 2,017 (Revised) Current assets $ 12,314,103 $ 10,528,508 Property and other assets 11,960,064 17,193,499 Total assets $ 24,274,167 $ 27,722,007 Current liabilities $ 2,356,685 $ 2,530,163 Non-current liabilities 392,354 470,850 Equity 21,525,128 24,720,994 Total liabilities and equity $ 24,274,167 $ 27,722,007 For the Year Ended March 31, 2017 2016 Net sales $ 15,470,589 $ 17,581,195 Gross profit 1,932,919 2,337,649 Net loss (1,808,497) (1,584,012) During the years ended March 31, 2017 and 2016, the Company purchased $ 9,595,346 9,078,485 95.6 97.0 17,584 60,506 At March 31, 2017 and 2016, the Company borrowed $ 1,206,731 1,070,103 inventory 2,000,000 3.25 102,581 190,461 1,206,731 729,135 0 340,968 has increased its payment terms for purchases 3,000,000 4.00 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. |
SHORT-TERM BORROWINGS AND CREDI
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS | 12 Months Ended |
Mar. 31, 2017 | |
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 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%) of the uncollected non-recourse factored trade accounts receivable balance less applicable factoring commissions, and may borrow up to fifty percent (50%) of eligible inventories subject to a borrowing limitation on inventory of $1,000,000. 587,000 2,067,000 bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 5.50% at March 31, 2016 and 6.00% at March 31, 2017). 2,264,125 313,891 Under the Agreement, the Company assigned receivables of $ 13,770,764 12,942,571 2,009,471 1,789,619 Collected cash maintained on deposit at March 31 2017 and 2016 with the factor earns interest at the factor’s prime rate of interest less 2.5 percent (effective rate of 1.50% at March 31, 2017.) |
PROPERTY AND EQUIPMENT - NET
PROPERTY AND EQUIPMENT - NET | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE E PROPERTY AND EQUIPMENT - NET Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided by using the straight-line method based on estimated useful lives. Expenditures for major betterments that extend the useful life of property and equipment are capitalized. Repair and maintenance costs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is included in the results of operations. The estimated useful lives for financial reporting purposes are as follows: Leasehold improvements - Shorter of term of lease or useful life of asset Machinery and equipment - 5 to 10 years Furniture and fixtures - 5 to 15 years Computer equipment - 5 years March 31, 2017 2016 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 (858,649) (833,386) $ 46,293 $ 71,556 Depreciation and amortization expense totaled $ 25,263 33,062 |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2017 | |
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 3,400 220,492 214,072 2018 2019 2020 Total Future minimum lease payments are as follows: $ 229,082 $ 174,958 $ 10,170 $ 414,210 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE G INCOME TAXES The Company files its income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. Income tax returns filed for the fiscal years ended March 31, 2016, 2015, and 2014 are considered open and subject to examination by tax authorities. Deferred income tax assets and liabilities are computed and recognized for those differences that have future tax consequences and will result in net taxable or deductible amounts in future periods. Deferred tax expense or benefit is the result of changes in the net asset or liability for deferred taxes. The deferred tax liabilities and assets for the Company result primarily from net operating loss and tax credit carry forwards, reserves and accrued liabilities. At March 31, 2017, the Company has total net federal and state 8,418,000 Years ended March 31, 2017 2016 Federal benefit at statutory rate (34%) before loss carry-forward $ (700,027) $ (726,849) Non-repatriated loss of Hong Kong Joint Venture 345,953 252,228 Permanent differences 57,651 83,024 State income tax benefit net of federal effect (30,515) (38,815) Expiration of tax credits 251,520 243,043 Increase in deferred tax valuation allowance 75,418 187,369 $ - $ - March 31, 2017 2016 Deferred tax assets: Accruals and allowances $ 58,558 $ 57,922 Inventory uniform capitalization 17,966 26,309 Net operating loss carry forward 3,156,643 2,821,998 Foreign tax credit carry forward 695,827 947,347 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,990,695) (3,915,277) Net deferred tax asset $ - $ - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE H - COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in various lawsuits and legal matters. It is the opinion of management, based on consultation with legal counsel, that there are no outstanding material claims outside of the normal course of business. The Company’s employment agreement with its CEO (the “CEO Agreement”) requires the Company to make certain post-employment payments to the CEO in the event of his termination following a change in control, death, disability, non-renewal, or resignation with “Good Reason” under terms of the CEO Agreement. Additionally, the CEO Agreement requires the Company to make post-employment payments, which can range from approximately $ 94,000 1,995,000 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Mar. 31, 2017 | |
Major Customers [Abstract] | |
Major Customers [Text Block] | NOTE I - 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, 2017, the Company had one customer that represented 14.8 14.1 |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE J - QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Results of Operations (Unaudited): Quarter Ended June 30, September 30, December 31, March 31, 2017 Net sales $ 3,178,607 $ 4,213,705 $ 3,177,632 $ 3,513,484 Gross profit 1,062,994 1,246,616 1,048,780 790,208 Net loss (389,679) (64,066) (549,806) (1,055,351) Net loss per share: Basic and diluted (0.17) (0.03) (0.24) (0.45) 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) |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure [Text Block] | NOTE K RETIREMENT PLAN The Company has a retirement savings plan under Section 401(k) of the Internal Revenue Code. All full-time employees who have completed 12 months of service are eligible to participate. Employees are permitted to contribute up to the amounts prescribed by law. The Company may provide contributions to the plan consisting of a matching amount equal to a percentage of the employee’s contribution, not to exceed four percent ( 4 37,855 47,338 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE L RELATED PARTY TRANSACTIONS During the fiscal year ended March 31, 2017 and 2016, inventory purchases and other company expenses of approximately $ 988,000 493,000 102,004 66,884 24,068 66,884 |
INTANGIBLE ASSETS - NET
INTANGIBLE ASSETS - NET | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE M INTANGIBLE ASSETS - NET Intangible assets consist of legal expenses of $ 89,434 4,471 4,472 26,830 22,359 4,472 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE N 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, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE O SUBSEQUENT EVENTS Subsequent to March 31, 2017, we have secured extended payment terms for purchases up to $3,000,000 from our Hong Kong Joint Venture for the purchase of inventory. |
PRIOR PERIOD REVISIONS
PRIOR PERIOD REVISIONS | 12 Months Ended |
Mar. 31, 2017 | |
Prior Period Adjustment [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | NOTE P PRIOR PERIOD REVISIONS The retained earnings and accumulated other comprehensive income of the Company as at April 1, 2015 have been revised to reflect an adjustment to the carrying value of the Company’s investment in its Hong Kong Joint Venture. As of April 1, 2015 adjustments of the Hong Kong Joint Venture’s financial statements reflect revisions related to the carrying value of certain of its assets and liabilities. Management has determined that the revisions as shown below are not material to the Company’s consolidated financial statements. Balance Adjustment Revised Balance Revisions to financial statements of the HKJV: Property and other assets $ 20,606,047 $ (709,799) $ 19,896,248 Current Liabilities 5,980,992 (1,853,383) 4,127,609 Equity 25,993,581 1,143,584 27,137,165 Revisions to consolidated financial statements of the Company: Investment in HKJV $ 12,943,280 $ 637,787 $ 13,581,067 Retained earnings 4,588,332 571,792 5,160,124 Accumulated other comprehensive income 1,259,695 65,995 1,325,690 Balance Adjustment Revised Balance Revisions to financial statements of the HKJV: Property and other assets $ 17,903,298 $ (709,799) $ 17,193,499 Current Liabilities 4,383,546 (1,853,383) 2,530,163 Equity 23,577,410 1,143,584 24,720,994 Revisions to consolidated financial statements of the Company: Investment in HKJV $ 11,779,663 $ 637,787 $ 12,417,450 Retained earnings 2,450,540 571,792 3,022,332 Accumulated other comprehensive income 1,028,385 65,995 1,094,380 |
NATURE OF BUSINESS AND SUMMAR24
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
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: The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk with cash. |
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 criteria are met: evidence of an arrangement exists; the fee is fixed and determinable; delivery has taken place; and collectability is reasonably assured. Customers may not return, exchange or refuse acceptance of goods without our approval. However, the Company has entered into an agreement with a customer to grant pre-approved rights of return of up to fifty percent of products sold on certain invoices to provide for and gain acceptance within certain markets. When a pre-approved right of return is granted, revenue recognition is deferred until the right of return expires. We have established allowances to cover anticipated doubtful accounts based upon historical experience. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable: a factoring agreement 107,879 102,176 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, 2017 and 2016, an allowance of $ 57,000 |
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 freight, import duty and inspection fees. Expenses approximately 43,000 37,000 |
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, 2017 and 2016. |
Income Tax, Policy [Policy Text Block] | Income Taxes: The Company recognizes a liability or asset for the deferred tax consequences of temporary differences between the tax basis of assets or liabilities and their reported amounts in the consolidated financial statements. These temporary differences may result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. The deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided whenever it is more likely than not that a deferred tax asset will not be realized. The Company follows Accounting Standards Codification ( |
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. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs: 315,957 267,128 |
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 assets and liabilities and at the average exchange rate for the reporting period for statement of operation purposes. The Company currently does not maintain cash in foreign banks to support its operations in Hong Kong. The cumulative balance of currency 325,725 983,529 |
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Share: Basic net loss per share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is anti-dilutive) for the period. As a result of the net losses, the weighted average number of common shares outstanding is identical for the years ended March 31, 2017 and 2016 for both basic and diluted shares. In addition, there were no other securities outstanding during 2017 or 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements: Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASU’s) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASU’s. 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. In December 2016 the FASB issued Accounting Standards Update No. 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, Narrow Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies and provides guidance on eight cash flow classification issues and is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
INVESTMENT IN THE HONG KONG J25
INVESTMENT IN THE HONG KONG JOINT VENTURE (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Financial Statement Information Of Joint Ventures [Table Text Block] | The following represents summarized financial information derived from the financial statements of the Hong Kong Joint Venture as of March 31, 2017 and 2016. March 31, 2016 2,017 (Revised) Current assets $ 12,314,103 $ 10,528,508 Property and other assets 11,960,064 17,193,499 Total assets $ 24,274,167 $ 27,722,007 Current liabilities $ 2,356,685 $ 2,530,163 Non-current liabilities 392,354 470,850 Equity 21,525,128 24,720,994 Total liabilities and equity $ 24,274,167 $ 27,722,007 For the Year Ended March 31, 2017 2016 Net sales $ 15,470,589 $ 17,581,195 Gross profit 1,932,919 2,337,649 Net loss (1,808,497) (1,584,012) |
PROPERTY AND EQUIPMENT - NET (T
PROPERTY AND EQUIPMENT - NET (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: March 31, 2017 2016 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 (858,649) (833,386) $ 46,293 $ 71,556 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 $ 220,492 214,072 2018 2019 2020 Total Future minimum lease payments are as follows: $ 229,082 $ 174,958 $ 10,170 $ 414,210 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
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 is as follows: Years ended March 31, 2017 2016 Federal benefit at statutory rate (34%) before loss carry-forward $ (700,027) $ (726,849) Non-repatriated loss of Hong Kong Joint Venture 345,953 252,228 Permanent differences 57,651 83,024 State income tax benefit net of federal effect (30,515) (38,815) Expiration of tax credits 251,520 243,043 Increase in deferred tax valuation allowance 75,418 187,369 $ - $ - |
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, 2017 2016 Deferred tax assets: Accruals and allowances $ 58,558 $ 57,922 Inventory uniform capitalization 17,966 26,309 Net operating loss carry forward 3,156,643 2,821,998 Foreign tax credit carry forward 695,827 947,347 Research and development tax credit carry forward 61,701 61,701 Allowance for unrealizable deferred tax assets (3,990,695) (3,915,277) Net deferred tax asset $ - $ - |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarter Ended June 30, September 30, December 31, March 31, 2017 Net sales $ 3,178,607 $ 4,213,705 $ 3,177,632 $ 3,513,484 Gross profit 1,062,994 1,246,616 1,048,780 790,208 Net loss (389,679) (64,066) (549,806) (1,055,351) Net loss per share: Basic and diluted (0.17) (0.03) (0.24) (0.45) 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) |
PRIOR PERIOD REVISIONS (Tables)
PRIOR PERIOD REVISIONS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Prior Period Adjustment [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Balance Adjustment Revised Balance Revisions to financial statements of the HKJV: Property and other assets $ 20,606,047 $ (709,799) $ 19,896,248 Current Liabilities 5,980,992 (1,853,383) 4,127,609 Equity 25,993,581 1,143,584 27,137,165 Revisions to consolidated financial statements of the Company: Investment in HKJV $ 12,943,280 $ 637,787 $ 13,581,067 Retained earnings 4,588,332 571,792 5,160,124 Accumulated other comprehensive income 1,259,695 65,995 1,325,690 Balance Adjustment Revised Balance Revisions to financial statements of the HKJV: Property and other assets $ 17,903,298 $ (709,799) $ 17,193,499 Current Liabilities 4,383,546 (1,853,383) 2,530,163 Equity 23,577,410 1,143,584 24,720,994 Revisions to consolidated financial statements of the Company: Investment in HKJV $ 11,779,663 $ 637,787 $ 12,417,450 Retained earnings 2,450,540 571,792 3,022,332 Accumulated other comprehensive income 1,028,385 65,995 1,094,380 |
NATURE OF BUSINESS AND SUMMAR31
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Factoring Charges | $ 107,879 | $ 102,176 |
Allowance for Doubtful Accounts Receivable | 57,000 | 50 |
Shipping, Handling and Transportation Costs | 315,957 | 267,128 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 325,725 | 983,529 |
Expenses Incurred in Inventory, Amount | $ 43,000 | $ 37,000 |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% |
MANAGEMENT'S PLAN (Details Text
MANAGEMENT'S PLAN (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 01, 2017 | |
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||||||
Net Income (Loss) Attributable To Parent | $ (549,806) | $ (64,066) | $ (389,679) | $ (1,055,351) | $ (174,172) | $ (411,302) | $ (777,077) | $ (775,241) | $ (2,058,902) | $ (2,137,792) | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | (2,153,188) | (822,957) | |||||||||
Increase Decrease in Working Capital | 907,077 | ||||||||||
Working Capital | 3,556,524 | $ 4,463,601 | $ 3,556,524 | $ 4,463,601 | |||||||
Line of Credit Facility, Frequency of Payment and Payment Terms | provide for repayment terms of ninety days for each advance thereunder. | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,385,000 | $ 1,385,000 | |||||||||
Hong Kong Joint Venture [Member] | Subsequent Event [Member] | |||||||||||
Organization Consolidation And Presentation OF Financial Statements [Line Items] | |||||||||||
Line of Credit Facility, Interest Rate at Period End | 4.00% | ||||||||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 3,000,000 |
INVESTMENT IN THE HONG KONG J33
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details) - Hong Kong Joint Venture [Member] - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets | $ 12,314,103 | $ 10,528,508 | |
Property and other assets | 11,960,064 | 17,193,499 | $ 19,896,248 |
Total assets | 24,274,167 | 27,722,007 | |
Current liabilities | 2,356,685 | 2,530,163 | |
Non-current liabilities | 392,354 | 470,850 | |
Equity | 21,525,128 | 24,720,994 | |
Total liabilities and equity | $ 24,274,167 | $ 27,722,007 |
INVESTMENT IN THE HONG KONG J34
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details 1) - Hong Kong Joint Venture [Member] - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 15,470,589 | $ 17,581,195 |
Gross profit | 1,932,919 | 2,337,649 |
Net loss | $ (1,808,497) | $ (1,584,012) |
INVESTMENT IN THE HONG KONG J35
INVESTMENT IN THE HONG KONG JOINT VENTURE (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Apr. 01, 2017 | |
Hong Kong Joint Venture accounts payable | $ 1,206,731 | $ 1,070,103 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,385,000 | ||
Hong Kong Joint Venture [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Related Party Transaction, Purchases from Related Party | $ 9,595,346 | $ 9,078,485 | |
Related Party Transaction, Rate | 95.60% | 97.00% | |
Equity Method Investment, Aggregate Cost | $ 10,562,837 | $ 12,417,450 | |
Hong Kong Joint Venture accounts payable | 1,206,731 | 729,135 | |
Receivable from Hong Kong Joint Venture | 17,584 | 60,506 | |
Accounts Payable, Related Parties | 1,206,731 | 1,070,103 | |
Long-term Line of Credit | $ 2,000,000 | ||
Line of Credit Facility, Interest Rate at Period End | 3.25% | ||
Dividends | $ 102,581 | 190,461 | |
Due to Related Parties, Current | $ 0 | $ 340,968 | |
Hong Kong Joint Venture [Member] | Subsequent Event [Member] | |||
Line of Credit Facility, Interest Rate at Period End | 4.00% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
SHORT-TERM BORROWINGS AND CRE36
SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Short-term Debt [Line Items] | ||
Line of Credit, Current | $ 2,264,125 | $ 313,891 |
Line of Credit Facility, Interest Rate Description | Collected cash maintained on deposit at March 31 2017 and 2016 with the factor earns interest at the factors prime rate of interest less 2.5 percent (effective rate of 1.50% at March 31, 2017.) | |
Factoring Agreement Receivables Sold | $ 13,770,764 | 12,942,571 |
Due From Factor | 2,009,471 | 1,789,619 |
Merchant Factors Corporation [Member] | ||
Short-term Debt [Line Items] | ||
Long-term Line of Credit | 587,000 | 2,067,000 |
Line of Credit, Current | $ 2,264,125 | $ 313,891 |
Line of Credit Facility, Borrowing Capacity, Description | 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%) of the uncollected non-recourse factored trade accounts receivable balance less applicable factoring commissions, and may borrow up to fifty percent (50%) of eligible inventories subject to a borrowing limitation on inventory of $1,000,000. | |
Line of Credit Facility, Interest Rate Description | bear interest at the prime commercial rate of interest, as published, plus two percent (effective rate 5.50% at March 31, 2016 and 6.00% at March 31, 2017). | |
Accounts Receivables Factoring Agreement Expiration Date | Jan. 6, 2018 | |
Accounts Receivables Factoring Agreement Term | 2 years |
PROPERTY AND EQUIPMENT - NET (D
PROPERTY AND EQUIPMENT - NET (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment, Gross | $ 904,942 | $ 904,942 |
Less accumulated depreciation and amortization | (858,649) | (833,386) |
Property, Plant and Equipment, Net | 46,293 | 71,556 |
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, 2017 | Mar. 31, 2016 | |
Depreciation, Depletion and Amortization | $ 29,734 | $ 37,534 |
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, 2017USD ($) |
2,018 | $ 229,082 |
2,019 | 174,958 |
2,020 | 10,170 |
Total | $ 414,210 |
LEASES (Details Textual)
LEASES (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2009 | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Oct. 31, 2016ft² | 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 | $ | $ 220,492 | $ 214,072 | |||
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, 2017 | Mar. 31, 2016 | |
Federal benefit at statutory rate (34%) before loss carry-forward | $ (700,027) | $ (726,849) |
Non-repatriated loss of Hong Kong Joint Venture | 345,953 | 252,228 |
Permanent differences | 57,651 | 83,024 |
State income tax benefit - net of federal effect | (30,515) | (38,815) |
Expiration of tax credits | 251,520 | 243,043 |
Increase in deferred tax valuation allowance | 75,418 | 187,369 |
Income tax benefit | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Accruals and allowances | $ 58,558 | $ 57,922 |
Inventory uniform capitalization | 17,966 | 26,309 |
Net operating loss carry forward | 3,156,643 | 2,821,998 |
Foreign tax credit carry forward | 695,827 | 947,347 |
Research and development tax credit carry forward | 61,701 | 61,701 |
Allowance for unrealizable deferred tax assets | (3,990,695) | (3,915,277) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Operating Loss Carryforwards | $ 8,418,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) | 12 Months Ended |
Mar. 31, 2017USD ($) | |
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, 2017 | Mar. 31, 2016 | |
One Customer [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 14.80% | 14.10% |
Hong Kong Joint Venture [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% |
QUARTERLY FINANCIAL DATA (Detai
QUARTERLY FINANCIAL DATA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 3,177,632 | $ 4,213,705 | $ 3,178,607 | $ 3,513,484 | $ 4,112,908 | $ 3,278,225 | $ 2,936,490 | $ 3,413,217 | ||
Gross profit | 1,048,780 | 1,246,616 | 1,062,994 | 790,208 | 1,308,368 | 684,657 | 882,427 | 903,978 | $ 4,148,598 | $ 3,779,430 |
Net loss | $ (549,806) | $ (64,066) | $ (389,679) | $ (1,055,351) | $ (174,172) | $ (411,302) | $ (777,077) | $ (775,241) | $ (2,058,902) | $ (2,137,792) |
Net loss per share: | ||||||||||
Basic and diluted (in dollars per share) | $ (0.24) | $ (0.03) | $ (0.17) | $ (0.45) | $ (0.08) | $ (0.18) | $ (0.34) | $ (0.34) | $ (0.89) | $ (0.92) |
RETIREMENT PLAN (Details Textua
RETIREMENT PLAN (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 4.00% | |
Defined Benefit Plan, Contributions by Employer | $ 37,855 | $ 47,338 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - Chief Executive Officer [Member] - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 988,000 | $ 493,000 |
Due to Related Parties, Current | 24,068 | 66,884 |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 102,004 | |
Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 66,884 |
INTANGIBLE ASSETS - NET (Detail
INTANGIBLE ASSETS - NET (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Capitalization Finite Lived Intangible Assets Legal Expenses | $ 89,434 | |
Amortization of Intangible Assets | 4,471 | $ 4,472 |
Finite-Lived Intangible Assets, Accumulated Amortization | 26,830 | $ 22,359 |
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, 2017shares |
Non Qualified Stock Option Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 120,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Mar. 31, 2017USD ($) |
Hong Kong Joint Venture [Member] | |
Subsequent Event [Line Items] | |
Line of Credit Facility, Capacity Available for Trade Purchases | $ 3,000,000 |
PRIOR PERIOD REVISIONS(Details)
PRIOR PERIOD REVISIONS(Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Liabilities, Current, Total | $ 4,155,015 | $ 2,122,144 | |
Stockholders' Equity Attributable To Parent | 14,232,258 | 17,025,682 | $ 19,394,784 |
Equity Method Investments | 10,562,837 | 12,417,450 | 13,581,067 |
Retained earnings | 963,430 | 3,022,332 | 5,160,124 |
Accumulated other comprehensive income | 359,858 | 1,094,380 | 1,325,690 |
Scenario, Previously Reported [Member] | |||
Equity Method Investments | 11,779,663 | 12,943,280 | |
Retained earnings | 2,450,540 | 4,588,332 | |
Accumulated other comprehensive income | 1,028,385 | 1,259,695 | |
Restatement Adjustment [Member] | |||
Equity Method Investments | 637,787 | 637,787 | |
Retained earnings | 571,792 | 571,792 | |
Accumulated other comprehensive income | 65,995 | 65,995 | |
Hong Kong Joint Venture [Member] | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | $ 11,960,064 | 17,193,499 | 19,896,248 |
Liabilities, Current, Total | 2,530,163 | 4,127,609 | |
Stockholders' Equity Attributable To Parent | 24,720,994 | 27,137,165 | |
Hong Kong Joint Venture [Member] | Scenario, Previously Reported [Member] | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 17,903,298 | 20,606,047 | |
Liabilities, Current, Total | 4,383,546 | 5,980,992 | |
Stockholders' Equity Attributable To Parent | 23,577,410 | 25,993,581 | |
Hong Kong Joint Venture [Member] | Restatement Adjustment [Member] | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | (709,799) | (709,799) | |
Liabilities, Current, Total | (1,853,383) | (1,853,383) | |
Stockholders' Equity Attributable To Parent | $ 1,143,584 | $ 1,143,584 |