Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Jun. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | AuraSource, Inc. | |
Entity Central Index Key | 1,083,922 | |
Document Type | 10-K | |
Document Period End Date | Mar. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 26,377,573 | |
Entity Common Stock, Shares Outstanding | 60,206,655 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Current assets | ||
Cash and equivalents | $ 9,784 | $ 11,112 |
Accounts receivable, net | 0 | 250,000 |
Deposits and other current assets | 526,963 | 584,689 |
Total current assets | 536,747 | 845,801 |
Fixed assets, net of accumulated depreciation | 129,336 | 284,869 |
Intangible assets, net | 733,463 | 780,582 |
Total assets | 1,399,546 | 1,911,252 |
Current liabilities | ||
Accounts payable | 334,778 | 375,562 |
Accounts payable related parties | 1,508,955 | 1,147,446 |
Note payable | 132,458 | 94,000 |
Convertible note payable and accrued interest | 0 | 35,861 |
Customer advances | 5,832 | 0 |
Total current liabilities | 1,982,023 | 1,652,869 |
Shareholders equity | ||
Preferred stock, 10,000 shares authorized, no shares issued and outstanding, no rights or privileges designated | 0 | 0 |
Common stock, $.001 par value, 150,000,000 shares authorized 60,206,655 and 58,404,734 shares issued and outstanding at March 31, 2015 and 2014, respectively | 60,206 | 58,404 |
Additional paid in capital | 11,753,473 | 11,141,229 |
Accumulated deficit | (12,396,156) | (10,941,250) |
Total shareholders equity | (582,477) | 258,383 |
Total liabilities and shareholders equity | $ 1,399,546 | $ 1,911,252 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, Authorized | 10,000 | 10,000 |
Preferred Stock, Issued | 0 | 0 |
Common Stock, Authorized | 150,000,000 | 150,000,000 |
Common Stock, Issued | 60,206,655 | 58,404,734 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Revenue | $ 519,168 | $ 454,820 |
Cost of revenue | 444,149 | 222,189 |
Gross profit | 75,019 | 232,631 |
Operating expenses: | ||
General & administrative expenses | 1,431,572 | 1,539,920 |
Total operating expenses | 1,431,572 | 1,539,920 |
Loss from operations | (1,356,553) | (1,307,289) |
Interest income / (expense) and other, net | (98,353) | (1,541,089) |
Net loss applicable to common stockholders | $ (1,454,906) | $ (2,848,378) |
Basic & Diluted Loss per share | $ (0.02) | $ (.05) |
Weighted average shares outstanding | 58,694,562 | 52,077,920 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Begining balance at Mar. 31, 2013 | $ 50,402 | $ 8,493,178 | $ (8,092,872) | $ 450,708 |
Begining balance, shares at Mar. 31, 2013 | 50,401,940 | |||
Shares issued for services | $ 583 | 174,417 | ||
Shares issued for services, shares | 583,333 | |||
Issuance of common stock | $ 6,886 | 1,719,127 | ||
Issuance of common stock, shares | 6,886,129 | |||
Issuance of options | 77,538 | |||
Stock compensation | $ 533 | 132,800 | ||
BCF on convertible note, net | 51,149 | |||
Net loss | 533,332 | (2,848,378) | ||
Ending balance at Mar. 31, 2014 | $ 58,404 | 11,141,229 | (10,941,250) | 258,383 |
Ending balance, shares at Mar. 31, 2014 | 58,404,734 | |||
Issuance of common stock | $ 1,802 | 360,582 | 362,384 | |
Issuance of common stock, shares | 1,807,920 | |||
Net loss | 251,662 | 251,662 | ||
Ending balance at Mar. 31, 2015 | $ 60,206 | $ 11,753,473 | $ (12,396,156) | $ (582,477) |
Ending balance, shares at Mar. 31, 2015 | 60,206,654 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (1,454,906) | $ (2,848,378) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 202,652 | 207,911 |
Amortization of debt discount | 0 | 47,511 |
Stock issued for services and interest | 0 | 1,464,866 |
Options issued for services | 251,662 | 77,538 |
Bad debt expense | 150,000 | 0 |
Loss in settlement of debt | 62,500 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 100,000 | (250,000) |
Due from affiliate | 0 | 54,418 |
Inventory | 42,580 | (32,580) |
Deposits and other current assets net | 15,145 | 79,145 |
Accounts payable | (40,784) | 277,328 |
Deferred revenue | 0 | (63,755) |
Interest payable | 116,740 | 50,000 |
Customer deposits | 5,832 | 0 |
Net cash used in operating activities | (611,079) | (873,496) |
Cash flows from investing activities : | ||
Capital equipment purchases | 0 | 0 |
Cash paid for acquisition of intangible | 0 | (9,231) |
Net cash used in investing activities | 0 | (9,231) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net | 362,384 | 0 |
Net proceeds from issuance of note payable | 63,357 | 274,000 |
Repayment of note payable | (177,500) | (190,500) |
Proceeds from loans payable, net | 0 | 0 |
Advances from related parties, net | 361,510 | 734,831 |
Net cash provided by financing activities | 609,751 | 818,331 |
Net change in cash and equivalents | (1,328) | (64,396) |
Cash and equivalents - beginning balance | 11,112 | 75,508 |
Cash and equivalents - ending balance | 9,784 | 11,112 |
Supplemental disclosures of cash flows information: | ||
Interest | 2,361 | 2,361 |
Income taxes | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITY | ||
The Company issued shares of common stock in lieu of a customer deposit | 0 | (500,000) |
Shares issued for settlement of debt | $ 0 | $ (500,000) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background There can be no assurance we will be able to carry out our development plans for our HCF technology, including AuraCoal and AuraFuel. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our HCF technology. We also need to finance the cost of effectively protecting our intellectual property rights in the United States (US) and abroad where we intend to market our technology and products. Going Concern Basis of Presentation and Principles of Consolidation Use of Estimates Cash and Cash Equivalents Accounts Receivable - Inventory Property and Equipment - Revenue Recognition - Cost of goods sold- Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- Beneficial Conversion Features- Income Taxes Stock-Based Compensation Foreign Currency Transactions Net (Loss) Per Share Concentration of Credit Risk Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The carrying value of cash, accounts receivable, accounts payables, and notes payable approximates their fair values due to their short-term maturities. Reclassifications Recently Issued Accounting Pronouncements In July 2012, the FASB issued guidance on testing for indefinite-lived intangible assets for impairment. The new guidance allows an entity to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine if an intangible asset has lost value. The amendments to U.S. GAAP are effective for fiscal years starting after September 15, 2012. The adoption of this accounting guidance did not have a material impact on our consolidated financial statements and related disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017. In August, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), which now requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date the financial statements are issued. If conditions or events raise substantial doubt about an entitys ability to continue as a going concern, and substantial doubt is not alleviated after consideration of managements plans, additional disclosures are required. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. These requirements were previously included within auditing standards and federal securities law, but are now included within U.S. GAAP. The Company is evaluating the effect, if any, the adoption of ASU 2013-02 will have on its consolidated financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by management to have a material impact on our present or future consolidated financial statements. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Mar. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 2 CONCENTRATION OF CREDIT RISK We maintain our cash balances in financial institutions that from time to time exceed amounts insured by the FDIC (up to $250,000, per financial institution as of March 31, 2015). As of March 31, 2015 and 2014, our deposits did not exceed insured amounts. We have not experienced any losses in such accounts and we believe we are not exposed to any significant credit risk on cash. Currently, we maintain a bank account in China. This account is not insured and we believe is exposed to credit risk on cash. The cash balance in China as of March 31, 2015 is very minimal. |
DEPOSITS AND OTHER CURRENT ASSE
DEPOSITS AND OTHER CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEPOSITS AND OTHER CURRENT ASSETS | NOTE 3 DEPOSITS AND OTHER CURRENT ASSETS Deposits and other current assets were $526,963 and $584,689 as of March 31, 2015 and 2014, respectively, and were comprised of the following: March 31, 2015 March 31, 2014 Inventory $ $ 42,580 Shipping deposits 10,918 10,205 Mineral reserve deposits 516,045 525,000 Prepaid expenses 6,904 Ending Balance $ 526,963 $ 584,689 On February 15, 2012, we entered into an agreement with Gulf Coast Holdings, LLC (GCH), an affiliate with over 10% voting rights, to reserve export ready one million tons of 64% Fe higher content iron ore and 13 million tons of 45% grade lower content iron ore, and two million tons of manganese ore. We issued the Mineral Deposit Shares to GCH or its assigns. On February 19, 2012, GCH assigned 100% of its interest in the Mineral Reserve Agreement to Hong Kong Minerals Holdings, Ltd. The Mineral Deposit Shares shall vest and be delivered as follows: five million immediately and 11 million upon the successful completion of the first customer order of total revenue over $5 million. Success shall be defined as customer acceptance of order and final payment. To the extent a successful order does not occur, the unvested Mineral Deposit Shares shall be returned to our treasury and cancelled. To date, the Company has not achieved $5 million in revenue, as such the 11 million shares is being held by the Company. As of March 31, 2015, the Company has obtained possession a small amount of the above noted minerals. As such, the issuance of the shares have been recorded as a charge to additional paid in capital and a credit to common stock at par value of $0.001 per share for a total of $16,000. GCH has the right to designate two members on the Board of Directors (BOD), one of whom is to be mutually agreed. To date GCH has not designated any board members. Additionally, we entered into an agreement with Gulf Coast Mining Group, LLC (GCM) to purchase Minerals which will be delivered loose in bulk modified FOB. We entered into an agreement with GCH appointing GCH as the exclusive North American licensee for use and exploitation of our technology as it relates to applications involving precious metals in exchange for royalty payments of 5% of gross revenues. For the year ended March 31, 2013, the Company paid $400,000 to GCM and $125,000 cash to HKM Minerals as deposit for mineral reserve. During the year ended March 31, 2015, AuraSource started shipping minerals from GCM and have reduced the deposit by $8,955. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 4 FIXED ASSETS, NET Fixed assets, net consisted of the following: March 31, March 31, 2015 2014 Office equipment $ 5,013 $ 5,013 Vehicles 147,390 147,390 Equipment 391,118 391,118 Total fixed assets 543,521 543,521 Less accumulated depreciation (414,185 ) (258,652 ) Total fixed assets, net $ 129,336 $ 284,869 The depreciation expense for the years ended March 31, 2015 and 2014 was $155,533 and $160,835, respectively. |
INTANGIBLE
INTANGIBLE | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE | NOTE 5 INTANGIBLE ASSETS, NET We entered into an agreement with Beijing Pengchuang Technology Development Co. (Pengchuang), Ltd., an independent Chinese company, to purchase 50% of the intellectual property related to ultrafine particle processing. Pengchuang developed a highly efficient and low energy consumption grinding technology, which utilizes fluid shock waves to make ultrafine particles. This technology can be applied to the coal water slurry, solid lubricant and other material grinding processes. Through a joint development and ownership agreement, AuraSource will enrich its intellectual property portfolio, enabling the further development of AuraCoal, its HCF technology. AuraSource Qinzhou will utilize the particle grinding technology in its AuraCoal Qinzhou production line, as well as license it to others in non-related industries. The net intangibles were $733,463 and $780,582 as of March 31, 2015 and 2014. We issued 600,000 shares of common stock for the acquisition of certain intangibles. The shares issued in connection with $753,530 of the acquired intangibles were valued at $606,000 or $1.01 per share which was the share price on August 8, 2010, the acquisition date. The Company paid cash for the remainder of the amount due. The increases in intangible assets in the years ended March 31, 2015 and 2014 were $0 and $9,231, representing patent application fees. The Company recorded $47,119 and $47,076 in amortization expense for the years ended March 31, 2015 and 2014, respectively. |
ACCOUNTS PAYABLE RELATED PARTIE
ACCOUNTS PAYABLE RELATED PARTIES | 12 Months Ended |
Mar. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE RELATED PARTIES | NOTE 6 DUE TO RELATED PARTIES As of March 31, 2015 and 2014, $1,508,955 and $1,147,446, respectively, is owed to the officers and directors of the Company. As of March 31, 2015, $169,949 is from the advancement of expenses and $1,339,006 is for past due compensation. In December 2011, the officers and directors of the Company agreed to accrue compensation for their services until such time the Company had sufficient funds to pay this liability. |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 7 NOTE PAYABLE RELATED PARTY On December 31, 2012, the Company received $500,000 from Pelican Creek, LLC (Pelican Creek), a former related party who resigned in June 2014, and recorded the corresponding note as a current liability on the balance sheet. Our former director, Larry Kohler, manages Pelican Creek. As an inducement to receive this loan, the Company issued 1,250,000 shares of its common stock to Pelican Creek for the year ended March 31, 2012. The FV of the shares issued was $812,500 valued at $0.65 per share, using the closing price on the effective date of the agreement. See Note 10, Stock Issuance, for further details. The coupon interest on this note accrues daily on the outstanding principal amount at 8% per annum. On March 26, 2014, the Company issued 2,000,000 shares of common stock in exchange for the cancelation of a $500,000 note payable. As such, as of March 31, 2015, the Company accrued interest of $69,101 and remains in the note payable account with no conversion right. NOTE 8 NOTE PAYABLE In the quarter ended March 31, 2014, the Company issued a note payable of $44,000 with no conversion right and interest of $1,000 per week which was paid in full on April 30, 2014. In September 30, 2014, we entered into a note payable for $63,357 which bears an interest rate of 6% per year as a settlement for previously due amounts recorded in accounts payable. The principle and interest are due on September 15, 2016. |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
CONVERTIBLE NOTE PAYABLE | NOTE 9 CONVERTIBLE NOTES PAYABLE On April 5, 2013, the Company entered into a Securities Purchase Agreement (SPA) with Asher Enterprises, Inc. (Asher). Under the terms of the SPA, the Company issued to Asher a convertible promissory note of $63,000. The note had a nine month maturity date from issuance. The note holder can convert the note after 180 days after the date of advance. The note bears interest at 8%. Any principal or interest on this note which is not paid when due shall bear interest at 22% from the due date until paid. The conversion price shall equal the variable conversion price, 61% multiplied by the market price (representing a discount rate of 39%). Market price is the average of the lowest three trading prices for the common stock during the ten trading day period ending on the latest complete trading day prior to the conversion date. This note had beneficial conversion feature (BCF) of $40,279 and was recorded in the balance sheet at face value less the unamortized BCF. On September 20, 2013, the Company paid off this note for $87,345 before the note holder can convert the balance to common shares. On July 19, 2013, the Company entered into an SPA with Asher. Under the terms of the SPA, the Company issued to Asher a convertible promissory note of $37,500. The note had a nine month maturity date from issuance. The note holder can convert the note after 180 days after the date of advance. The note bears interest at 8%. Any principal or interest on this note which is not paid when due shall bear interest at 22% from the due date until paid. The conversion price shall equal the variable conversion price, 61% multiplied by the market price (representing a discount rate of 39%). Market price is the average of the lowest three trading prices for the common stock during the ten trading day period ending on the latest complete trading day prior to the conversion date. This note had BCF of $23,975 and was recorded in the balance sheet at face value less the unamortized BCF. On January 22, 2014, the Company paid off this note for $52,113 before the note holder can convert the balance to common shares. On September 20, 2013, the Company entered into an SPA with Todd Andis (Andis). Under the terms of the SPA, the Company issued to Andis a convertible promissory note of $90,000. The note had a six month maturity date from issuance. The note bears interest at 8%. The note holder can convert the note after 180 days after the date of advance. Any principal or interest on this note which is not paid when due shall bear interest at 22% from the due date until paid. The conversion price shall equal the variable conversion price, 61% multiplied by the market price (representing a discount rate of 39%). Market price is the average of the lowest three trading prices for the common stock during the ten trading day period ending on the latest complete trading day prior to the conversion date. This note had BCF of $57,541 and was recorded in the balance sheet at face value less the unamortized BCF. On March 24, 2014, the Company paid off this note. On March 19, 2014, the Company entered into an SPA with Asher. Under the terms of the SPA, the Company issued to Asher a convertible promissory note of $83,500. The note had a nine month maturity date from issuance. The note bears interest at 8%. The note holder can convert the note after 180 days after the date of advance. Any principal or interest on this note which is not paid when due shall bear interest at 22% from the due date until paid. The conversion price shall equal the variable conversion price, 61% multiplied by the market price (representing a discount rate of 39%). Market price is the average of the lowest three trading prices for the common stock during the ten trading day period ending on the latest complete trading day prior to the conversion date. On July 15, 2014, the Company paid the note in full. |
STOCK ISSUANCE
STOCK ISSUANCE | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
STOCK ISSUANCE | NOTE 10 STOCK ISSUANCE On April 12, 2013, the Company issued 1,250,000 shares as a settlement for an advance from a customer in the amount of $500,000 which we valued at $562,500 and the difference of $62,500 is recorded as loss in settlement in other expense. On March 26, 2014, the Company issued 2,000,000 shares of common stock in exchange for the cancelation of a $500,000 note payable. During the year ended March 31, 2014, the Company issued 3,636,129 shares of common stock as a $1,156,533 finance charge for loans to related and unrelated parties. During the year ended March 31, 2014, the Company issued 583,333 shares of common stock as a $175,000 share based compensation related to the issuance of services. During the year ended March 31, 2014, the Company issued 533,332 shares of common stock for various services valued at $133,333. On June 4, 2014, we issued 20,000 shares of the Company common stock for $6,000 at a share price of $0.30. On February 3, 2015, the Company issued 1,781,920 shares of its common stock at $0.20 per share for a total of $356,384. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
STOCK OPTIONS | NOTE 11 - STOCK OPTIONS In January 2009, we granted 60,000 options to purchase shares of our common stock at $3.50 per share to members of our BOD. In April 2010, we granted an additional 60,000 options to purchase shares of our common stock at $1.00 per share to members of our BOD. The options vest quarterly and have an expiration period of 10 years. In April 2011, we granted an additional 60,000 options to purchase shares of our common stock at $0.75 per share to certain members of our BOD. The options vest quarterly and have an expiration period of 10 years. In February 2012, we granted an additional 2,850,000 options to purchase shares of our common stock at $0.28 per share to certain members of our BOD. The options will vest upon the Company earning $5 million in revenues. The options expire in 5 years. In April 2012, we granted an additional 60,000 options to purchase shares of our common stock at $0.27 per share to certain members of our BOD. In April 2013, we granted an additional 60,000 options to purchase shares of our common stock at $0.45 per share to certain members of our BOD. In January 2014, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO. In April 2014, we granted an additional 60,000 options to purchase shares of our common stock at $0.50 per share to certain members of our BOD. In April 2014, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In July 2014, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In October 2014, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In January 2015, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. We will record stock based compensation expense over the requisite service period, which in our case approximates the vesting period of the options. During the year ended March 31, 2015, the Company recorded $251,662 in compensation expense arising from the vesting of options. The Company assumed all stock options issued during the quarter will vest. Though these expenses result in a deferred tax benefit, we have a full valuation allowance against the deferred tax benefit. The Company adopted the detailed method provided in FASB ASC Topic 718, Compensation Stock Compensation, The fair value of each stock option granted is estimated on the grant date using the Black-Scholes option pricing model (BSOPM). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk free interest rate is based upon market yields for United States Treasury debt securities at a 7-year constant maturity. Dividend rates are based on the Companys dividend history. The stock volatility factor is based on the last 60 days of market prices prior to the grant date. The expected life of an option grant is based on managements estimate. The fair value of each option grant, as calculated by the BSOPM, is recognized as compensation expense on a straight-line basis over the vesting period of each stock option award. These assumptions were used to determine the FV of stock options granted: Dividend yield 0.0% Volatility 25% to 160% Average expected option life 2.5 to 5 years Risk-free interest rate 0.68% to 2.59% The following table summarizes activity in the Company's stock option grants for the year ended March 31, 2015: Number of Shares Weighted Average Price Per Share Balance at March 31, 2013 3,090,000 0.37 Granted 260,000 0.30 Balance at March 31, 2014 3,350,000 $ 0.36 Granted 860,000 $ 0.25 Balance at March 31, 2015 4,210,000 $ 0.35 The following summarizes pricing and term information for options issued to employees and directors outstanding as of March 31, 2015 and 2014: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2014 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2014 Weighted Average Exercise Price $3.50 60,000 5.00 $3.50 60,000 $3.50 $1.00 60,000 6.00 $1.00 60,000 $1.00 $0.75 60,000 7.00 $0.75 60,000 $0.75 $0.45 60,000 9.00 $0.45 60,000 $0.45 $0.28 2,850,000 3.38 $0.28 - - $0.27 60,000 8.00 $0.27 60,000 $0.28 $0.25 200,000 9.75 $0.25 200,000 $0.25 Balance at March 31, 2014 3,350,000 4.08 $0.36 500,000 $0.82 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2015 Weighted Average Exercise Price $3.50 60,000 4.00 $3.50 60,000 $3.50 $1.00 60,000 5.00 $1.00 60,000 $1.00 $0.75 60,000 6.00 $0.75 60,000 $0.75 $0.50 60,000 9.00 $0.50 60,000 $0.50 $0.45 60,000 8.00 $0.45 60,000 $0.45 $0.28 2,850,000 2.63 $0.28 - - $0.27 60,000 7.00 $0.27 60,000 $0.28 $0.25 1,000,000 8.75 $0.25 1,000,000 $0.25 Balance at March 31, 2015 4,210,000 3.75 $0.35 1,315,000 $0.57 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
LOSS PER SHARE | NOTE 12 - LOSS PER SHARE The following table sets forth common stock equivalents (potential common stock) for the years ended March 31, 2015 and 2014 that are not included in the loss per share calculation above because their effect would be anti-dilutive for the periods indicated: 2015 2014 Weighted average common stock equivalents: Non-plan stock options 4,210,000 3,350,000 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 13 - INCOME TAX The deferred tax asset as of March 31, 2015 and 2014 consisted of the following: 2015 2014 Net operating loss carryforwards $ 4,501,044 $ 3,972,768 Less valuation allowance (4,501,044 ) (3,972,768 ) $ $ Management provided a deferred tax asset valuation allowance equal to the potential benefit due to the Companys loss. When the Company demonstrates the ability to generate taxable income, management will re-evaluate the allowance. As of March 31, 2015, the Company has net operating loss carryforward of $12,396,156 which is available to offset future taxable income that expires by year 2034. Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 34% for 2015 and 2014 is as follows: 2014 2013 Income tax benefit at federal statutory rate (34.00 )% (34.00 )% Foreign tax rate difference 1.49 % 1.49 % State income tax benefit, net of effect on federal taxes (3.80 )% (3.80 )% Increase in valuation allowance 36.31 % 36.31 % Income tax expense |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES Leases Litigation Employment Agreement Effective January 1, 2014, the Company entered into an employment agreement with Eric Stoppenhagen, the Companys CFO. Under the employment agreement, Mr. Stoppenhagen will receive a base salary of $120,000 per year and a guaranteed bonus of $20,000 per year. Each quarter Mr. Stoppenhagen shall receive 100,000 options to purchase the Companys common at an exercise price of $0.25 per share. Mr. Stoppenhagen will be eligible for an incentive bonus based on his performance. Additionally, Mr. Stoppenhagen will receive a car allowance of $250 per month and an office allowance of $250 per month. The term of the contract is from January 1, 2014 to December 31, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Going Concern | Going Concern ~ |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation |
Use of estimates | Use of Estimates ~ |
Accounts receivable | Accounts Receivable - ~ |
Cash and cash equivalents | Cash and Equivalents ~ |
Inventory | Inventory ~ |
Property and Equipment | Property and Equipment - ~ |
Revenue Recognition | Revenue Recognition - ~ |
Cost of goods sold | Cost of goods sold- Cost of goods sold includes cost of inventory sold during the period, net of discounts and allowances, freight and shipping costs, warranty and rework costs, and sales tax. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- ~ |
Beneficial Conversion Features | Beneficial Conversion Features- ~ |
Income Taxes | Income Taxes Income Taxes. |
Stock based compensation | Stock-Based Compensation |
Foreign currency transactions | Foreign Currency Transactions ~ |
Net loss per share | Net (Loss) Per Share ~ |
Concentration of Credit Risk | Concentration of Credit Risk ~ |
Financial instruments and fair value of financial instruments | Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The Company evaluates embedded conversion features within convertible debt under ASC Topic 815, Derivatives and Hedging, Debt with Conversion and Other Options, |
Reclassifications | Reclassifications |
DEPOSITS AND OTHER CURRENT AS21
DEPOSITS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Deposit Assets Disclosure [Abstract] | |
Deposits and other current assets | March 31, 2015 March 31, 2014 Inventory $ $ 42,580 Shipping deposits 10,918 10,205 Mineral reserve deposits 516,045 525,000 Prepaid expenses 6,904 Ending Balance $ 526,963 $ 584,689 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | March 31, March 31, 2015 2014 Office equipment $ 5,013 $ 5,013 Vehicles 147,390 147,390 Equipment 391,118 391,118 Total fixed assets 543,521 543,521 Less accumulated depreciation (414,185 ) (258,652 ) Total fixed assets, net $ 129,336 $ 284,869 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stock option grant | Number of Shares Weighted Average Price Per Share Balance at March 31, 2013 3,090,000 0.37 Granted 260,000 0.30 Balance at March 31, 2014 3,350,000 $ 0.36 Granted 860,000 $ 0.25 Balance at March 31, 2015 4,210,000 $ 0.35 |
Price and term share based compensation | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2014 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2014 Weighted Average Exercise Price $3.50 60,000 5.00 $3.50 60,000 $3.50 $1.00 60,000 6.00 $1.00 60,000 $1.00 $0.75 60,000 7.00 $0.75 60,000 $0.75 $0.45 60,000 9.00 $0.45 60,000 $0.45 $0.28 2,850,000 3.38 $0.28 - - $0.27 60,000 8.00 $0.27 60,000 $0.28 $0.25 200,000 9.75 $0.25 200,000 $0.25 Balance at March 31, 2014 3,350,000 4.08 $0.36 500,000 $0.82 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2015 Weighted Average Exercise Price $3.50 60,000 4.00 $3.50 60,000 $3.50 $1.00 60,000 5.00 $1.00 60,000 $1.00 $0.75 60,000 6.00 $0.75 60,000 $0.75 $0.50 60,000 9.00 $0.50 60,000 $0.50 $0.45 60,000 8.00 $0.45 60,000 $0.45 $0.28 2,850,000 2.63 $0.28 - - $0.27 60,000 7.00 $0.27 60,000 $0.28 $0.25 1,000,000 8.75 $0.25 1,000,000 $0.25 Balance at March 31, 2015 4,210,000 3.75 $0.35 1,315,000 $0.57 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
common stock equivalents | 2015 2014 Weighted average common stock equivalents: Non-plan stock options 4,210,000 3,350,000 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Asset Table | 2015 2014 Net operating loss carryforwards $ 4,501,044 $ 3,972,768 Less valuation allowance (4,501,044 ) (3,972,768 ) $ $ |
Schedule of Income Tax Rates | 2014 2013 Income tax benefit at federal statutory rate (34.00 )% (34.00 )% Foreign tax rate difference 1.49 % 1.49 % State income tax benefit, net of effect on federal taxes (3.80 )% (3.80 )% Increase in valuation allowance 36.31 % 36.31 % Income tax expense |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Notes to Financial Statements | ||
Retained earnings accumulated deficit | $ (12,396,156) | $ (10,941,250) |
DEPOSITS AND OTHER CURRENT AS27
DEPOSITS AND OTHER CURRENT ASSETS (Details Narrative) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory | $ 0 | $ 42,580 |
Shipping deposits | 10,918 | 10,205 |
Mineral reserve deposits | 516,045 | 525,000 |
Prepaid expenses | 0 | 6,904 |
Prepaid expenses | $ 526,963 | $ 584,689 |
FIXED ASSETS - FIXED ASSETS (De
FIXED ASSETS - FIXED ASSETS (Details) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Office equipment | $ 5,013 | $ 5,013 |
Vehicles | 147,390 | 147,390 |
Equipment | 391,118 | 391,118 |
Total fixed assets | 543,521 | 543,521 |
Less: accumulated depreciation | (414,185) | (258,652) |
Total fixed assets, net | $ 129,336 | $ 284,869 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
depreciation expense | $ 155,533 | $ 160,835 |
INTANGIBLE (Details Narrative)
INTANGIBLE (Details Narrative) - USD ($) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Aug. 08, 2010 | |
Notes to Financial Statements | |||
Intangible assets, net | $ 733,463 | $ 780,582 | |
Common stock value | 60,206 | 58,404 | $ 606,000 |
Paid intangibles | 0 | 9,231 | $ 147,530 |
Intangible amortization | $ 47,119 | $ 47,076 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Notes to Financial Statements | ||
Accounts payable related parties | $ 1,508,955 | $ 1,147,446 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ||
Interest payable | $ 69,101 | $ 60,000 |
Loans Payable | $ 63,357 | $ 44,000 |
CONVERTIBLE NOTE PAYABLE - CONV
CONVERTIBLE NOTE PAYABLE - CONVERTIBLE NOTE PAYABLE (Details) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Notes to Financial Statements | ||
Convertible note payable, 8% interest, due in 2014 | $ 0 | $ 83,500 |
Accrued interest | 0 | 1,210 |
Less: unamortized discount of BCF | 0 | (48,849) |
Convertible note payable, net of unamortized beneficial conversion feature | $ 0 | $ 35,861 |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Notes to Financial Statements | ||
convertible note | $ 0 | $ 83,500 |
beneficial conversion feature | $ 0 | $ 104,123 |
STOCK ISSUANCE (Details Narrati
STOCK ISSUANCE (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity [Abstract] | ||
shares issued for cash | 1,801,920 | 1,250,000 |
proceeds from sale of stock | $ 362,384 | |
shares issued for debt | 437,963 |
STOCK OPTIONS - STOCK OPTIONS (
STOCK OPTIONS - STOCK OPTIONS (Details) - USD ($) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 02, 2015 | Oct. 02, 2014 | Jul. 02, 2014 | Apr. 02, 2014 | Jan. 02, 2014 | Apr. 02, 2013 | Apr. 02, 2012 | Feb. 15, 2012 | Apr. 02, 2011 | Apr. 02, 2010 | Jan. 01, 2009 | |
Notes to Financial Statements | |||||||||||||
Number of Options | 4,210,000 | 3,350,000 | 200,000 | 200,000 | 200,000 | 260,000 | 200,000 | 60,000 | 60,000 | 2,850,000 | 60,000 | 60,000 | 60,000 |
Weighted Average Price Per Share | $ .35 | $ .36 | |||||||||||
Options granted | $ 860,000 | $ 260,000 | |||||||||||
Option exercise price | $ .25 | $ .30 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - $ / shares | Mar. 31, 2015 | Jan. 02, 2015 | Oct. 02, 2014 | Jul. 02, 2014 | Apr. 02, 2014 | Mar. 31, 2014 | Jan. 02, 2014 | Apr. 02, 2013 | Apr. 02, 2012 | Feb. 15, 2012 | Apr. 02, 2011 | Apr. 02, 2010 | Jan. 01, 2009 |
Notes to Financial Statements | |||||||||||||
Options granted | 4,210,000 | 200,000 | 200,000 | 200,000 | 260,000 | 3,350,000 | 200,000 | 60,000 | 60,000 | 2,850,000 | 60,000 | 60,000 | 60,000 |
Exercise price of options | $ .25 | $ .25 | $ .25 | $ .25 | $ .25 | $ .26 | $ 0.27 | $ 0.28 | $ 0.75 | $ 1 | $ 3.50 |
INCOME TAX - Deferred Tax Asset
INCOME TAX - Deferred Tax Asset Table (Details) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 4,501,044 | $ 3,972,768 |
Less valuation allowance | $ (4,501,044) | $ (3,972,768) |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | Mar. 31, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
loss carryforward | $ 12,396,156 |