Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Jul. 11, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | AuraSource, Inc. | |
Entity Central Index Key | 0001083922 | |
Document Type | 10-K | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 26,377,573 | |
Entity Common Stock, Shares Outstanding | 64,931,119 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 | |
Entity-Ex-Transition | false | |
Well known seasoned issuer | No | |
Shell Company | false | |
Voluntary filer | No | |
entity emerging growth | true | |
Small business flag | true |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 58,161 | $ 248,472 |
Accounts receivable, net | 0 | 11,244 |
Deposits and other current assets | 0 | 516,045 |
Total current assets | 58,161 | 775,761 |
Fixed assets, net of accumulated depreciation | 0 | 0 |
Total assets | 58,161 | 775,761 |
Current liabilities | ||
Accounts payable | 167,467 | 187,434 |
Accounts payable related parties | 1,540,695 | 1,358,454 |
Note payable | 182,022 | 170,910 |
Customer advances | 0 | 0 |
Note payable related party | 2,044,236 | 1,988,662 |
Total current liabilities | 3,934,420 | 3,705,460 |
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 64,681,119 and 78,371,476 shares issued and outstanding, respectively | 64,681 | 78,381 |
Additional paid in capital | 13,657,731 | 13,296,668 |
Accumulated other comprehensive income | 42,334 | 12,742 |
Accumulated deficit | (17,641,005) | (16,317,490) |
Total shareholders equity | (3,876,259) | (2,929,699) |
Total liabilities and shareholders equity | $ 58,161 | $ 775,761 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Mar. 31, 2019 | Mar. 31, 2018 |
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 | 64,681,119 | 78,381,476 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 0 | $ 0 |
Cost of revenue | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses: | ||
General & administrative expenses | 1,118,751 | 1,314,708 |
Total operating expenses | 1,118,751 | 1,314,708 |
Loss from operations | (1,118,751) | (1,314,708) |
Interest income / (expense) and other, net | (204,765) | (228,470) |
Net loss | (1,323,516) | (1,543,178) |
Foreign currency translation gain (loss) | 29,592 | (41,903) |
Total Comprehensive Loss | $ (1,293,924) | $ (1,585,081) |
Basic & Diluted Loss per share | $ (.02) | $ (.02) |
Weighted average shares outstanding | 66,523,560 | 68,510,632 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Comprehensive Income / Loss | Total |
Begining balance at Mar. 31, 2017 | $ 66,310 | $ 12,470,434 | $ (14,774,312) | $ 54,645 | $ (2,182,923) |
Begining balance, shares at Mar. 31, 2017 | 66,311,972 | ||||
Issuance of common stock | $ 12,071 | 767,194 | 384,050 | ||
Issuance of common stock, shares | 12,069,507 | ||||
Issuance of options | 59,040 | 59,040 | |||
Net loss | (1,543,178) | (1,543,178) | |||
Foreign currency translation adjustment | (41,903) | (41,903) | |||
Ending balance at Mar. 31, 2018 | $ 78,381 | 13,296,668 | (16,317,490) | 12,742 | (2,929,699) |
Ending balance, shares at Mar. 31, 2018 | 78,381,476 | ||||
Issuance of common stock | $ (13,700) | 225,700 | 212,000 | ||
Issuance of common stock, shares | (13,700,357) | ||||
Issuance of options | 135,363 | 135,363 | |||
Net loss | (1,323,516) | (1,323,516) | |||
Foreign currency translation adjustment | 29,592 | 29,592 | |||
Ending balance at Mar. 31, 2019 | $ 64,681 | $ 13,657,731 | $ (17,641,005) | $ 42,334 | $ (3,876,259) |
Ending balance, shares at Mar. 31, 2019 | 64,681,119 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (1,323,516) | $ (1,543,178) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 0 | 48,038 |
Impairment of intangibles | 0 | 603,903 |
Options issued for services | 135,363 | 59,040 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,245 | (11,244) |
Inventory | 0 | 0 |
Deposits and other current assets net | 516,045 | 0 |
Accounts payable | (19,967) | 40,163 |
Accounts payable related parties | 237,815 | 606,868 |
Interest payable | 16,112 | 14,312 |
Customer deposits | 0 | 0 |
Net cash used in operating activities | (426,903) | (182,098) |
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 | 212,000 | 384,050 |
Net proceeds from issuance of note payable | 0 | 0 |
Repayment of note payable | (5,000) | 0 |
Proceeds from loans payable, net | 0 | 0 |
Advances from related parties, net | 0 | 0 |
Net cash provided by financing activities | 207,000 | 384,050 |
Effect of exchange rate fluctuation on cash and cash equivalents | 29,592 | (41,903) |
Net change in cash and equivalents | (190,311) | 160,049 |
Cash and equivalents - beginning balance | 248,472 | 88,423 |
Cash and equivalents - ending balance | 58,161 | 248,472 |
Supplemental disclosures of cash flows information: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background AuraMetal TM AuraMoto TM There can be no assurance we will be able to carry out our development plans for AuraMetals or AuraMoto. 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 Use of Estimates Cash and Cash Equivalents Property and Equipment - Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- Income Taxes Stock-Based Compensation Comprehensive Income - 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 carrying value of cash, accounts receivable, accounts payables, and notes payable approximates their fair values due to their short-term maturities. Recently Adopted Accounting Pronouncements - In June 2018, the FASB issued ASU 2018-07, Stock-based Compensation: Improvements to Nonemployee Share-based Payment Accounting, which amends the existing accounting standards for share-based payments to nonemployees. This ASU aligns much of the guidance on measuring and classifying nonemployee awards with that of awards to employees. Under the new guidance, the measurement of nonemployee equity awards is fixed on the grant date. This ASU becomes effective in the first quarter of fiscal year 2019 and early adoption is permitted but no earlier than an entity’s adoption date of ASC 606. Entities will apply the ASU by recognizing a cumulative-effect adjustment to retained earnings as of the adoption date. The Company adopted this update on July 1, 2018 and the adoption had no material impact to the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (ASC 718) - Scope of Modification Accounting, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. It is effective prospectively for annual periods beginning on or after December 15, 2017, with early adoption permitted. The Company adopted this update on January 1, 2018 and the adoption had no impact to the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (ASC 230), Classification of Certain Cash Receipts and Cash Payments, which reduces diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statements of Cash Flows. It is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. The Company adopted this update on January 1, 2018 and the adoption had no impact to the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (ASC 842), which was amended by ASU 2018-11, Leases (ASC 842): Targeted Improvements. The new guidance requires lessee recognition on the balance sheet of a right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statement of cash flows. The standard is effective for public companies for fiscal years beginning after December 15, 2018 and early adoption is permitted. The standard requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. The Company will adopt this standard with an effective date of April 1, 2020 using the prospective adoption approach. Other Recent Accounting Pronouncements not yet Adopted - The Company has evaluated the changes from this standard to its future financial reporting and disclosures, and has designed and implemented related processes and controls to address these changes. The Company believes the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on its balance sheet for its office operating lease; and (2) providing significant new disclosures about its leasing activities related to the amount, timing and uncertainty of cash flows arising from leases. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Mar. 31, 2019 | |
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, 2019). As of March 31, 2019 and 2018, 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, 2019 is $9,833. |
DEPOSITS AND OTHER CURRENT ASSE
DEPOSITS AND OTHER CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2019 | |
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 $0 and $516,045 as of March 31, 2019 and 2018, respectively. On February 15, 2012, we entered into an agreement with Gulf Coast Holdings, LLC (“GCH”), an affiliate common ownership with Hong Kong Mineral Ltd (“HKM”) which owns 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. Additionally, sixteen million shares were issued of which five million vested immediately and eleven million upon the successful completion of the first customer order of total revenue over $5 million. On June 19, 2018, the Company, GCH, Gulf Coast Mining and HKM agreed to terminate all past agreements between the parties referenced above (“Release”). Under the terms of the Release, the Company will receive 20,000 tons of Iron Duke ore with equivalent chemical composition as that has been delivered in the past (“Payment”). Payment shall be set aside in a separate pile for AuraSource retrieval (the “Pick up”). Upon 30 days advanced written notice, AuraSource shall be allowed access to retrieve the Payment. Payment shall be removed from the ground prior and put in staging area by the end of the 30 days’ notice. The Company shall be responsible for all logistics and the costs associated therewith for loading and transporting the subject Payment. Such ore shall be picked up by the Company within 270 days from the date of execution of this Agreement. If the Company does not pick up the ore within the 270 days, the Company will lose the rights to the ore. As a result of the Release, the Company wrote off $516,045, its accounts payable was credited by $143,281, and recorded a forgiveness of debt of $8,955. The 16 million shares of common stock referenced in Note 3 were cancelled under the Release. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 4 – FIXED ASSETS, NET Fixed assets, net consisted of the following: March 31, March 31, 2018 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 years ended March 31, 2019 and 2018 was $0 and $48,038, respectively. |
INTANGIBLE
INTANGIBLE | 12 Months Ended |
Mar. 31, 2019 | |
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 $0 as of March 31, 2019 and 2018. 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. On March 31, 2018, in accordance with ASC 360 and ASC 820, the Company fully impaired the intangible. |
ACCOUNTS PAYABLE RELATED PARTIE
ACCOUNTS PAYABLE RELATED PARTIES | 12 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE RELATED PARTIES | NOTE 6 – DUE TO RELATED PARTIES As of March 31, 2019 and 2018, $1,540,695 and $1,358,454, respectively, is owed to the officers and directors. As of March 31, 2019, $437,831 is from the advancement of expenses and $1,102,864 is for past due compensation. Since 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 - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | NOTE 7 – 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. On February 15, 2018, Mr. Liu converted $303,266 of the note into 4,332,374 shares of common stock which was considered the fair market value. $1,598,374 is owed under the note as of March 31, 2019. The note has an interest rate of 10% which is compounded quarterly and is due on March 31, 2018. The note is in default. On April 26, 2016, we entered into a note payable with Eric Stoppenhagen, our CFO, whereby he converted amounts owed of $411,214. On February 15, 2018, Mr. Stoppenhagen converted $91,949 of the note into 1,313,556 shares of common stock which was considered the fair market value. $445,862 is owed under the note as of March 31, 2019. The note has an interest rate of 10% which is compounded quarterly and is due on March 31, 2018. The note is in default. |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 8 – 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 March 31, 2019, the Company accrued interest of $106,077 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. In May 2018, the Company paid $5,000 to reduce the amount of the note. The amount of principle and interest as of March 31, 2019 is $75,929. The principle and interest are due on September 15, 2016. The note payable is currently in default. |
STOCK ISSUANCE
STOCK ISSUANCE | 12 Months Ended |
Mar. 31, 2019 | |
Stock Issuance | |
STOCK ISSUANCE | NOTE 9 – STOCK ISSUANCE During the quarter ended September 31, 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. During the quarter ended March 31, 2018, the Company issued 4,580,716 shares of common stock for $299,050. During the quarter ended March 31, 2018, the Company issued 5,645,930 shares of common stock to settle for $395,215 of loans to related parties. During the quarter ended June 30, 2018, 16 million shares of common stock were cancelled as further discussed in Note 3. During the quarter ended September 30, 2018, the Company issued 520,000 shares of common stock for $83,600. During the quarter ended December 31, 2018, the Company issued 397,143 shares of common stock for $34,000 and 57,143 shares of common stock for past investment. During the quarter ended March 31, 2019, the Company issued 1,382,500 shares of common stock for $94,400. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCK OPTIONS | NOTE 10 - STOCK OPTIONS 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. In January 2018, 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 2018, we granted an additional 40,000 options to purchase shares of our common stock at $0.11 per share to certain members of our BOD. In April 2018, 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 2018, 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 2018, 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 2019, 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 the quarter ended June 30, 2018, 2.85 million options were cancelled. These options vested upon the success of the transaction outlined in Note 3. Due to the unsuccessful outcome these options were cancelled. 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, 2019, the Company recorded $135,363, 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 330% Average expected option life 5 years Risk-free interest rate 0.70% The following table summarizes activity in the Company's stock option grants for the years ended March 31, 2018 and 2019: Number of Shares Weighted Average Price Per Share Balance at March 31, 2017 5,890,000 $ 0.35 Granted 840,000 $ 0.25 Balance at March 31, 2018 6,730,000 $ 0.32 Granted 840,000 $ 0.25 Cancelled (2,850,000) $ 0.28 Balance at March 31, 2019 4,720,000 $ 0.33 The following summarizes pricing and term information for options issued to employees and directors outstanding as of March 31, 2019: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2019 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2019 Weighted Average Exercise Price $3.50 60,000 2.25 $3.50 60,000 $3.50 $1.00 60,000 3.00 $1.00 60,000 $1.00 $0.75 60,000 4.00 $0.75 60,000 $0.75 $0.50 60,000 6.00 $0.50 60,000 $0.50 $0.49 40,000 7.00 $0.49 40,000 $0.49 $0.45 60,000 6.00 $0.45 60,000 $0.45 $0.27 60,000 5.25 $0.27 60,000 $0.28 $0.25 4,200,000 8.50 $0.25 4,200,000 $0.25 $0.19 40,000 9.25 $0.19 40,000 $0.19 $0.15 40,000 8.00 $0.15 40,000 $0.15 $0.075 40,000 8.00 $0.075 40,000 $0.075 Balance at March 31, 2019 4,720,000 5.10 $0.32 4,720,000 $0.32 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 11 - LOSS PER SHARE The following table sets forth common stock equivalents (potential common stock) for the years ended March 31, 2019 and 2018 that are not included in the loss per share calculation above because their effect would be anti-dilutive for the periods indicated: The following table sets forth common stock equivalents (potential common stock) for the years ended March 31, 2019 and 2018 that are not included in the loss per share calculation above because their effect would be anti-dilutive for the periods indicated: 2019 2018 Weighted average common stock equivalents: Non-plan stock options 4,720,000 6,730,000 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 12 - INCOME TAX The deferred tax asset as of March 31, 2019 and 2018 consisted of the following: 2019 2018 Net operating loss carryforwards $ 4,112,118 $ 5,924,880 Less valuation allowance (4,112,118 ) (5,924,880 ) $ — $ — Management provided a deferred tax asset valuation allowance equal to the potential benefit due to the Company’s loss. When the Company demonstrates the ability to generate taxable income, management will re-evaluate the allowance. The Company has not filed its federal and state tax returns for the years ending March 31, 2018 and 2019. As of March 31, 2019, the Company has net operating loss carryforward of $17,641,005 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 21% for 2019 and 34% for 2018 is as follows: 2019 2018 Income tax benefit at federal statutory rate (21.00 )% (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 23.31 % 36.31 % Income tax expense — — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES Leases Year Ending March 31, 2020 $18,466 Year Ending March 31, 2021 $25,313 Year Ending March 31, 2022 $26,006 Year Ending March 31, 2023 $6,540 Litigation Employment Agreement Effective January 1, 2014, the Company entered into an employment agreement with Eric Stoppenhagen, the Company’s 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 Company’s 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS As discussed in Note 13 effective July 1, 2019, the Company entered into a lease to rent 2,507 square feet of office space at 2103 E. Cedar Street, Suites 6 Tempe, Arizona for $2,051 per month. The lease expires June 30, 2022. The Company issued 250,000 shares of its common stock for $20,000 during the quarter ended June 30, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
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 |
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 | Comprehensive Income - |
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, |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | March 31, March 31, 2018 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) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock option grant | Number of Shares Weighted Average Price Per Share Balance at March 31, 2017 5,890,000 $ 0.35 Granted 840,000 $ 0.25 Balance at March 31, 2018 6,730,000 $ 0.32 Granted 840,000 $ 0.25 Cancelled (2,850,000) $ 0.28 Balance at March 31, 2019 4,720,000 $ 0.33 |
Price and term share based compensation | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at March 31, 2019 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at March 31, 2019 Weighted Average Exercise Price $3.50 60,000 2.25 $3.50 60,000 $3.50 $1.00 60,000 3.00 $1.00 60,000 $1.00 $0.75 60,000 4.00 $0.75 60,000 $0.75 $0.50 60,000 6.00 $0.50 60,000 $0.50 $0.49 40,000 7.00 $0.49 40,000 $0.49 $0.45 60,000 6.00 $0.45 60,000 $0.45 $0.27 60,000 5.25 $0.27 60,000 $0.28 $0.25 4,200,000 8.50 $0.25 4,200,000 $0.25 $0.19 40,000 9.25 $0.19 40,000 $0.19 $0.15 40,000 8.00 $0.15 40,000 $0.15 $0.075 40,000 8.00 $0.075 40,000 $0.075 Balance at March 31, 2019 4,720,000 5.10 $0.32 4,720,000 $0.32 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Notes to Financial Statements | ||
Retained earnings accumulated deficit | $ (17,641,005) | $ (16,317,490) |
FIXED ASSETS - FIXED ASSETS (De
FIXED ASSETS - FIXED ASSETS (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
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 ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
depreciation expense | $ 0 | $ 48,038 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Notes to Financial Statements | ||
Accounts payable related parties | $ 1,540,695 | $ 1,358,454 |
LOANS PAYABLE (Details Narrativ
LOANS PAYABLE (Details Narrative) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Debt Disclosure [Abstract] | ||
Interest payable | $ 182,022 | $ 170,910 |
STOCK OPTIONS - STOCK OPTIONS (
STOCK OPTIONS - STOCK OPTIONS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Notes to Financial Statements | ||
Number of Options | 4,720,000 | 6,730,000 |
Weighted Average Price Per Share | $ 0.33 | $ .32 |
Options expired | 2,850,000 | |
Options granted | $ 840,000 | |
Option exercise price | $ .25 |