Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | |
Dec. 31, 2017 | Feb. 05, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | AuraSource, Inc. | |
Entity Central Index Key | 1,083,922 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
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? | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 26,377,573 | |
Entity Common Stock, Shares Outstanding | 71,640,546 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets | ||
Cash and equivalents | $ 85,039 | $ 88,423 |
Accounts receivable, net | 0 | 0 |
Deposits and other current assets | 516,045 | 516,045 |
Total current assets | 601,084 | 604,468 |
Fixed assets, net of accumulated depreciation | 0 | 0 |
Intangible assets, net | 616,247 | 651,941 |
Total assets | 1,217,331 | 1,256,409 |
Current liabilities | ||
Accounts payable | 149,786 | 147,271 |
Accounts payable related parties | 1,315,790 | 970,642 |
Note payable | 167,214 | 156,598 |
Customer advances | 35,300 | 0 |
Note payable related party | 2,331,198 | 2,164,821 |
Total current liabilities | 3,999,288 | 3,439,332 |
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 68,154,830 and 66,311,972 shares issued and outstanding, respectively | 68,153 | 66,310 |
Additional paid in capital | 12,594,633 | 12,470,434 |
Accumulated other comprehensive income | 29,812 | 54,645 |
Accumulated deficit | (15,474,555) | (14,774,312) |
Total shareholders equity | (2,781,957) | (2,182,923) |
Total liabilities and shareholders equity | $ 1,217,331 | $ 1,256,409 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Dec. 31, 2017 | Mar. 31, 2017 |
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 | 68,154,830 | 66,311,972 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of revenue | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
General & administrative expenses | 162,841 | 170,722 | 523,245 | 773,184 |
Total operating expenses | 162,841 | 170,722 | 523,245 | 773,184 |
Loss from operations | (162,841) | (170,722) | (523,245) | (773,184) |
Interest income / (expense) and other, net | (60,450) | (54,841) | (176,998) | (150,010) |
Net loss | (223,291) | (225,563) | (700,243) | (923,194) |
Foreign currency translation gain (loss) | (5,256) | 16,202 | (24,833) | 27,239 |
Total Comprehensive Loss | $ (228,547) | $ (209,361) | $ (725,076) | $ (895,955) |
Basic & Diluted Loss per share | $ 0 | $ (.00) | $ (.01) | $ (.01) |
Weighted average shares outstanding | 67,460,730 | 62,217,769 | 66,794,465 | 61,871,106 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (700,243) | $ (923,194) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 35,694 | 40,382 |
Options issued for services | 41,042 | 74,816 |
Stock issued for related party finance charge | $ 0 | $ 197,638 |
Stock issued for debt | 0 | 18,750 |
Changes in operating assets and liabilities: | ||
Accounts receivable | $ 0 | $ 0 |
Inventory | 0 | 0 |
Deposits and other current assets net | 35,300 | 0 |
Accounts payable | 2,515 | (50,262) |
Accounts payable related parties | 511,525 | 596,127 |
Deferred revenue | 0 | 0 |
Interest payable | 10,616 | 9,750 |
Customer deposits | 0 | 0 |
Net cash used in operating activities | (63,551) | (35,993) |
Cash flows from investing activities : | ||
Capital equipment purchases | 0 | 0 |
Cash paid for acquisition of intangible | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net | 85,000 | 30,000 |
Net proceeds from issuance of note payable | 0 | 0 |
Repayment of note payable | 0 | 0 |
Proceeds from loans payable, net | 0 | 0 |
Advances from related parties, net | 0 | 0 |
Net cash provided by financing activities | 85,000 | 30,000 |
Effect of exchange rate fluctuation on cash and cash equivalents | (24,833) | 27,239 |
Net change in cash and equivalents | (3,384) | 21,246 |
Cash and equivalents - beginning balance | 88,423 | 3,550 |
Cash and equivalents - ending balance | 85,039 | 24,796 |
Supplemental disclosures of cash flows information: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background Recently, due to our various international sourcing contacts, we have been requested from various parties to source vendors and customers in the automotive industry. There can be no assurances that our efforts towards this line of business will succeed. AuraSource’s physical separation includes ultrafine grinding and impurities removal, which separate metallic and non-metallic minerals. AuraSource develops and tests hydrometallurgical flow sheets for the recovery and refining of metals from concentrate leaching, precipitation, cementation, ion-exchange, solvent extraction, electro-winning, and process simulations. AuraSource also carries out high-temperature research and process development for the production of a wide variety of mineral commodities. AuraSource formed AuraSource Qinzhou Co. Ltd. (“Qinzhou”), a wholly owned subsidiary in China, to acquire these types of technologies, performing research and development (“R&D”) related to the reduction of harmful emissions and energy costs. AuraSource is currently looking to license this technology to third parties through joint ventures with strategic partners and/or selling services and products derived from this technology. Currently, we have seven patents patent issued related to our technologies: 1) ultrafine grinding and 2) ultrafine separation. There can be no assurance we will be able to carry out our development plans for our technology. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our 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 Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes for the year ended March 31, 2017 included in our Annual Report on Form 10-K. The results of the three and nine months ended December 31, 2017 are not necessarily indicative of the results to be expected for the full year ending March 31, 2018. Use of Estimates Cash and Equivalents Property and Equipment - Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- Income Taxes “Income Taxes.” Stock-Based Compensation Foreign Currency Translation. - 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 Company evaluates embedded conversion features within convertible debt under ASC Topic 815, “Derivatives and Hedging,” “Debt with Conversion and Other Options,” Recent Accounting Pronouncements – In February 5016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for us beginning July 1, 2020, with early adoption permitted beginning July 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. We are currently evaluating the impact of this standard on our consolidated financial statements. 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 | 9 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 2 - CONCENTRATION OF CREDIT RISK As of December 31, 2017 and March 31, 2017, our deposits did not exceed amounts insured by the FDIC (up to $250,000, per financial institution as of December 31, 2017). We have not experienced any losses in such accounts and we believe we are not exposed to any 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. |
DEPOSITS AND OTHER CURRENT ASSE
DEPOSITS AND OTHER CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEPOSITS AND OTHER CURRENT ASSETS | NOTE 3 – DEPOSITS AND OTHER CURRENT ASSETS – RELATED PARTY Deposits and other current assets were $516,045 and $516,045 as of December 31, 2017 and March 31, 2017, respectively, and were comprised of the following: December 31, 2017 March 31, 2017 (Unaudited) Mineral reserve deposits $ 516,045 $ 516,045 Ending Balance $ 516,045 $ 516,045 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, 2017, 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. GCH, GCM and HKM all have the same beneficial owner. HKM is considered an affiliate as it owns greater than 10% of our outstanding common stock. 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. |
FIXED ASSETS
FIXED ASSETS | 9 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 4 – FIXED ASSETS, NET Fixed assets, net consisted of the following: December 31, March 31, 2017 2017 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 (543,521 ) (543,521 ) Total fixed assets, net $ — $ — The depreciation expense for the three and nine months ended December 31, 2017 was $0. The depreciation expense for the three and nine months ended December 31, 2016 was $0. |
INTANGIBLE
INTANGIBLE | 9 Months Ended |
Dec. 31, 2017 | |
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 AuraMetal, its HCF technology. AuraSource Qinzhou will utilize the particle grinding technology in its AuraMetal Qinzhou production line, as well as license it to others in non-related industries. The net intangibles were $616,247 and $251,941 as of December 31, 2017 and March 31, 2017. 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 Company recorded $11,898 and $11,898 in amortization expense in the three months ended December 31, 2017 and 2016, respectively. The Company recorded $35,694 and $35,694 in amortization expense in the nine months ended December 31, 2017 and 2016, respectively. |
ACCOUNTS PAYABLE RELATED PARTIE
ACCOUNTS PAYABLE RELATED PARTIES | 9 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE RELATED PARTIES | NOTE 6 – DUE TO RELATED PARTIES As of December 31, 2017 and March 31, 2017, $1,315,790 and $970,642, respectively, is owed to the officers and directors of the Company. As of December 31, 2017, $431,384 is from the advancement of expenses and $722,484 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. As of December 31, 2017, $161,922 is owed to GCH. |
NOTE PAYABLE
NOTE PAYABLE | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 7 – NOTE PAYABLE 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. 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 December 31, 2017, the Company accrued interest of $91,503 and remains in the note payable account with no conversion right. This will be settled upon the Company having a gross profit of $1 million. In December 31, 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 amount of principle and interest as of December 31, 2017 is $75,712. The principle and interest are due on September 15, 2016. The note payable is currently in default. |
NOTE PAYABLE - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | NOTE 8 – NOTE PAYABLE – RELATED PARTY On April 26, 2016, we entered into a note payable with Philip Liu, our CEO, whereby he converted amounts owed of $1,565,169. $1,845,368 of principle and interest is owed as of December 31, 2017. The note has an interest rate of 10% and is due on March 31, 2017. The note is in default as of the date of this filing. On April 26, 2016, we entered into a note payable with Eric Stoppenhagen, our CFO, whereby he converted amounts owed of $411,214. $484,830 of principle and interest is owed as of December 31, 2017. The note has an interest rate of 10% and is due on March 31, 2017. The note is in default as of the date of this filing. |
STOCK ISSUANCE
STOCK ISSUANCE | 9 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCK ISSUANCE | NOTE 9 – STOCK ISSUANCE During the year ended March 31, 2017, the Company issued 1,646,985 shares of common stock as finance charge for loans to related parties. We valued these shares at $197,638 using a 10% interest rate and the share price of $.12. During the year ended March 31, 2017, the Company issued 125,000 shares of common stock to settle a note signed in 2016 with principal amount of $15,000 plus interest, and no gain or loss resulted from the settlement. During the year ended March 31, 2017, the Company issued 4,333,333 shares of common stock for $130,000. During the quarter ended September 30, 2017, the Company issued 1,000,000 shares of common stock for $40,000. During the quarter ended December 31, 2017, the Company issued 842,858 shares of common stock for $45,000. |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCK OPTIONS | NOTE 10 - STOCK OPTIONS In April 2016, we granted an additional 40,000 options to purchase shares of our common stock at $0.15 per share to certain members of our BOD. In April 2016, 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 2016, 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 2016, 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 2017, 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 April 2017, we granted an additional 40,000 options to purchase shares of our common stock at $0.075 per share to certain members of our BOD. In April 2017, 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 2017, 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 2017, 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 three and nine months ended December 31, 2017, the Company recorded $11,998 and $27,042, respectively, in compensation expense arising from the vesting of options, respectively. 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 Company’s 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 management’s 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 382% 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 three months ended December 31, 2017: Number of Shares Weighted Average Price Per Share Balance at March 31, 2016 5,050,000 $ 0.35 Granted 840,000 $ 0.25 Balance at March 31, 2017 5,890,000 $ 0.32 Granted 640,000 $ 0.25 Balance at December 31, 2017 6,530,000 $ 0.32 The following summarizes pricing and term information for options issued to employees and directors outstanding as of December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at December 31, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at December 31, 2017 Weighted Average Exercise Price $3.50 60,000 2.75 $3.50 60,000 $3.50 $1.00 60,000 3.75 $1.00 60,000 $1.00 $0.75 60,000 4.75 $0.75 60,000 $0.75 $0.50 60,000 6.75 $0.50 60,000 $0.50 $0.49 40,000 7.75 $0.49 40,000 $0.49 $0.45 60,000 6.75 $0.45 60,000 $0.45 $0.28 2,850,000 1.13 $0.28 - - $0.27 60,000 5.75 $0.27 60,000 $0.28 $0.25 3,200,000 8.75 $0.25 3,200,000 $0.25 $0.15 40,000 8.75 $0.15 40,000 $0.15 $0.075 40,000 9.75 $0.075 40,000 $0.075 Balance at December 31, 2017 6,530,000 7.64 $0.32 3,680,000 $0.35 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 11 – SUBSEQUENT EVENT In January 2018, the Company issued 3,485,716 shares of its common stock in exchange for $200,000. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Going Concern | Going Concern Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes for the year ended March 31, 2017 included in our Annual Report on Form 10-K. The results of the three and nine months ended December 31, 2017 are not necessarily indicative of the results to be expected for the full year ending March 31, 2018. |
Use of estimates | Use of Estimates |
Cash and cash equivalents | Cash and Equivalents ~ |
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- ~ |
Income Taxes | Income Taxes Income Taxes. |
Stock based compensation | Stock-Based Compensation |
Comprehensive Income | Foreign Currency Translation. - |
Foreign currency transactions | Foreign Currency Translation. - |
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, |
DEPOSITS AND OTHER CURRENT AS18
DEPOSITS AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Deposit Assets Disclosure [Abstract] | |
Deposits and other current assets | December 31, 2017 March 31, 2017 (Unaudited) Mineral reserve deposits $ 516,045 $ 516,045 Ending Balance $ 516,045 $ 516,045 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | December 31, March 31, 2017 2017 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 (543,521 ) (543,521 ) Total fixed assets, net $ — $ — |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stock option grant | Number of Shares Weighted Average Price Per Share Balance at March 31, 2016 5,050,000 $ 0.35 Granted 840,000 $ 0.25 Balance at March 31, 2017 5,890,000 $ 0.32 Granted 640,000 $ 0.25 Balance at December 31, 2017 6,530,000 $ 0.32 |
Price and term share based compensation | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at December 31, 2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at December 31, 2017 Weighted Average Exercise Price $3.50 60,000 2.75 $3.50 60,000 $3.50 $1.00 60,000 3.75 $1.00 60,000 $1.00 $0.75 60,000 4.75 $0.75 60,000 $0.75 $0.50 60,000 6.75 $0.50 60,000 $0.50 $0.49 40,000 7.75 $0.49 40,000 $0.49 $0.45 60,000 6.75 $0.45 60,000 $0.45 $0.28 2,850,000 1.13 $0.28 - - $0.27 60,000 5.75 $0.27 60,000 $0.28 $0.25 3,200,000 8.75 $0.25 3,200,000 $0.25 $0.15 40,000 8.75 $0.15 40,000 $0.15 $0.075 40,000 9.75 $0.075 40,000 $0.075 Balance at December 31, 2017 6,530,000 7.64 $0.32 3,680,000 $0.35 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Notes to Financial Statements | ||
Retained earnings accumulated deficit | $ (15,474,555) | $ (14,774,312) |
DEPOSITS AND OTHER CURRENT AS22
DEPOSITS AND OTHER CURRENT ASSETS (Details Narrative) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory | $ 0 | $ 0 |
Shipping deposits | 0 | 0 |
Mineral reserve deposits | 516,045 | 516,045 |
Prepaid expenses | 0 | 0 |
Prepaid expenses | $ 516,045 | $ 516,045 |
FIXED ASSETS - FIXED ASSETS (De
FIXED ASSETS - FIXED ASSETS (Details) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
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 | (543,521) | (543,521) |
Total fixed assets, net | $ 0 | $ 0 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
depreciation expense | $ 0 | $ 0 |
INTANGIBLE (Details Narrative)
INTANGIBLE (Details Narrative) - USD ($) | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Aug. 08, 2010 | |
Notes to Financial Statements | ||||
Intangible assets, net | $ 616,247 | $ 651,941 | ||
Common stock value | 68,153 | 66,310 | $ 606,000 | |
Paid intangibles | 0 | $ 9,231 | $ 147,530 | |
Intangible amortization | $ 11,898 | $ 11,898 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Notes to Financial Statements | ||
Accounts payable related parties | $ 1,315,790 | $ 970,642 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Debt Disclosure [Abstract] | ||
Interest payable | $ 167,214 | $ 156,598 |
STOCK OPTIONS - STOCK OPTIONS (
STOCK OPTIONS - STOCK OPTIONS (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | |
Notes to Financial Statements | ||
Number of Options | 6,530,000 | 5,890,000 |
Weighted Average Price Per Share | $ .32 | $ .32 |
Options granted | $ 640,000 | |
Option exercise price | $ .25 |