Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information | |
Entity Registrant Name | ZIM CORP |
Entity Central Index Key | 1,124,160 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2016 |
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 | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 157,809,851 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,015 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue | |||
Mobile | $ 140,889 | $ 162,741 | $ 242,453 |
Software | 40,821 | 144,055 | 175,140 |
Software maintenance and consulting | 437,581 | 924,241 | 1,058,215 |
Total revenue | 619,291 | 1,271,427 | 1,310,481 |
Operating expenses | |||
Cost of revenue | 67,137 | 70,875 | 163,570 |
Selling, general and administrative | 768,194 | 999,718 | 1,049,806 |
Research and development | 148,604 | 424,186 | 298,358 |
Amortization of intangible assets | 3,943 | 8,804 | 9,497 |
Total operating expenses | 987,878 | 1,503,583 | 1,521,231 |
Income (loss) from operations | (368,587) | (367,920) | (249,804) |
Other income: | |||
Gain on disposition of assets | 66,611 | ||
Impairment of Investment | 66,611 | (180,271) | |
Interest income , net | 51,273 | 76,063 | 60,619 |
Total other income | 57,055 | 142,674 | (119,652) |
Income (loss) before income taxes | (311,532) | (225,246) | (369,456) |
Income tax benefit | (148) | 11,502 | (12,750) |
Income (loss) from continuing operations | (311,680) | (236,748) | (356,706) |
Loss from discontinued operations | $ 5,364 | ||
Net income (loss) | $ (311,680) | $ (236,748) | $ (351,342) |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustment | $ (43,034) | $ (361,554) | $ (174,542) |
Comprehensive Income | $ (354,714) | $ (598,302) | $ (525,884) |
Basic and diluted income (loss) per share from continuing operations | $ (.002) | $ (0.002) | $ (0.003) |
Basic and diluted loss per share from discontinued operations | $ (.000) | $ 0 | $ 0 |
Weighted average number of shares outstanding | 148,774,284 | 139,181,715 | 135,460,867 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 472,317 | $ 1,028,381 |
Accounts receivable, net | 58,307 | 63,353 |
Investment tax credits receivable | 281,644 | 300,404 |
Other tax credits | 84,652 | 53,570 |
Prepaid expenses | 24,959 | 12,976 |
Total Current Assets | 1,064,610 | 1,458,864 |
Investments | 116,414 | 788 |
Long term deposits | ||
Intangible assets | 4,358 | |
Property and equipment, net | 26,317 | 24,506 |
Total Assets | 1,064,610 | 1,488,516 |
Current liabilities | ||
Accounts payable | 9,161 | 25,309 |
Accrued liabilities | 41,518 | 87,143 |
Deferred revenue | 110,969 | 186,034 |
Total current liabiliities | 161,648 | 298,486 |
Deferred rent | 11,035 | |
Shareholders' equity: | ||
Preferred shares, no par value, non-cumulative dividend at a rate to be determined by the Board of Directors redeemable by the holder for CDN $1 per share. Unlimited authorized shares; issued and outstanding NIL shares at March 31, 2016 and 2015. | ||
Common shares, no par value, Unlimited authorized shares; 157,809,851 shares issued and outstanding as at March 31, 2016 and 143,843,889 shares as at March 31, 2015. | 19,484,482 | 19,432,795 |
Additional paid-in capital | 2,960,789 | 2,955,865 |
Accumulated deficit | (21,213,270) | (20,901,590) |
Accumulated other comprehensive income | (340,074) | (297,040) |
Total shareholders' equity | 891,927 | 1,190,030 |
Total liability and equity | $ 1,064,610 | $ 1,488,516 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Dividend rate redeemable | $ 1 | $ 1 |
Common shares issued | 157,809,851 | 143,843,889 |
Common shares outstanding | 157,809,851 | 143,843,889 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ (311,680) | $ (236,748) | $ (351,342) |
Items not involving cash: | |||
Depreciation of property and equipment | 9,166 | 19,347 | 10,953 |
Amortization of intangible asset | 3,943 | 8,804 | 9,497 |
Impairment of investment | (66,611) | 180,271 | |
Stock-based compensation | 55,063 | 81,898 | 78,226 |
Changes in operating working capital: | |||
Decrease (increase) in accounts receivable | 5,046 | 60,316 | 30,802 |
Decrease (increase) in investment tax credits | 18,760 | (7,692) | 1,094 |
Increase in other tax credits | (31,082) | 85,873 | (13,106) |
Decrease (increase) in prepaid expenses | (11,983) | 3,144 | 6,225 |
Increase (decrease) in accounts payable | (16,148) | (5,344) | 20,774 |
Increase (decrease) in accrued liabilities | (45,625) | 31,823 | (11,271) |
Increase (decrease) in deferred revenue | (75,065) | (39,431) | 8,400 |
Cash flows provided by operating activities | (399,605) | (64,621) | (29,477) |
INVESTING ACTIVITIES | |||
Purchase of property and equipment | (10,977) | (9,283) | (18,917) |
Proceeds on sale of assets | (115,626) | 66,611 | |
Purchase of intangible asset | |||
Purchase of investment | |||
Cash flows used in investing activities | 126,603 | 57,328 | (18,917) |
FINANCING ACTIVITIES | |||
Effect of changes in exchange rates on cash | (29,856) | (351,063) | (156,376) |
Increase in cash and cash equivalents | (556,064) | (358,356) | (204,770) |
Cash and cash equivalents, beginning of year | 1,028,381 | 1,386,737 | 1,591,507 |
Cash and cash equivalents, end of year | $ 472,317 | $ 1,028,381 | $ 1,386,737 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Total |
Beginning Balance, Shares at Mar. 31, 2014 | 135,460,867 | ||||
Beginning Balance, Amount at Mar. 31, 2014 | $ 19,362,796 | $ 2,943,966 | $ (20,664,842) | $ 64,514 | $ 1,706,434 |
Shares issued, shares | 8,383,022 | ||||
Shares issued, amount | $ 69,999 | 69,999 | |||
Stock options granted | 11,899 | 11,899 | |||
Net income | (236,748) | (236,748) | |||
Cumulative translation adjustment | (361,554) | $ (194,758) | |||
Ending Balance, Shares at Mar. 31, 2015 | 143,843,889 | 143,843,889 | |||
Ending Balance, Amount at Mar. 31, 2015 | $ 19,432,795 | 2,955,865 | (20,901,590) | (297,041) | $ 1,190,030 |
Shares issued, shares | 13,965,962 | ||||
Shares issued, amount | $ 51,687 | 51,687 | |||
Stock options granted | 4,924 | 4,924 | |||
Net income | (311,680) | (311,680) | |||
Cumulative translation adjustment | (43,034) | $ (43,034) | |||
Ending Balance, Shares at Mar. 31, 2016 | 157,809,851 | 157,809,851 | |||
Ending Balance, Amount at Mar. 31, 2016 | $ 19,484,482 | $ 2,960,789 | $ (21,213,270) | $ (340,074) | $ 891,927 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations | 1 - NATURE OF OPERATIONS COMPANY OVERVIEW ZIM Corporation (ZIM or the Company) is a provider of software products and services for the database and mobile markets. ZIM products and services are used by enterprises in the design, development and management of business, database and mobile applications. ZIM also provides mobile content to the consumer market. BUSINESS DEVELOPMENT ZIM was formed under the laws of Canada on October 17, 2002, in order to purchase ZIM Technologies International Inc. (ZIM Technologies), which was formed in 1997 to acquire the software technology now called the ZIM Integrated Development Environment (the ZIM IDE software). On February 10, 2004, ZIM purchased UK-based short messaging service (SMS) firms EPL Communications Limited and E-Promotions Limited (together referred to as EPL). During the fiscal year ended March 31, 2006, EPL was dissolved and all operations were transferred to ZIM Corporation in Canada. ZIM is also the sole shareholder of ZIM Technologies do Brazil Ltda., a company incorporated in Brazil that distributes the ZIM IDE Software, and PCI Merge, Inc., a Florida based holding company with no operations. Until March 31, 2004, ZIM was the sole shareholder of ZIM Technologies, a Canadian federal corporation and the chief operating company of the ZIM group of companies. On April 1, 2004, ZIM Corporation and ZIM Technologies amalgamated into ZIM Corporation. On April 1, 2006, ZIM purchased a US-based mobile content company called Advanced Internet Inc. (AIS). BUSINESS OF THE COMPANY ZIM started operations as a developer and provider of database software known as ZIM IDE software. ZIM IDE software is used by companies in the design, development, and management of information databases and mission critical applications. The Company continues to provide this software and support services to its client base. Beginning in 2002, the Company expanded its business to include opportunities associated with mobile products. Prior to fiscal 2007, the Company focused on developing products and services for the wireless data network infrastructure known as SMS or text messaging. Although SMS will continue to provide a minimal amount of revenue within the mobile segment of ZIMs operations, with the acquisition of AIS, the Company shifted its corporate focus to include offering mobile content directly to end users. In fiscal 2008, ZIM added the ZIM TV service and in partnership with the International Table Tennis Federation (ITTF) provided development and hosting services for IPTV to ITTF end users. However, due to low sales volumes ZIM exited this market in fiscal 2009. Revenue from the sale of mobile content for the fiscal year ended March 31, 2016 was $NIL as compared to $NIL for fiscal year ended March 31, 2015 and $349 for fiscal year ended March 31, 2014. The decline was due to a highly competitive and saturated market resulting in a lower volume of downloads, partially offset by our pricing increases for these products. Due to the continuing decline and operational cost of this business on March 31, 2013 ZIM discontinued operations in this area. |
Going Concern
Going Concern | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Going Concern | 2 - GOING These w il commitment T fro commitment is Management is currently investigating and evaluating options that may include recapitalization of the Company and pursuing other ventures of a different nature. The consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis were not appropriate for these consolidated financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and expenses and the classifications used in the statement of financial position. Such differences in amounts could be material. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies | 3 - SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). PRINCIPLES OF CONSOLIDATION These consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. The results of operations for acquisitions are included in these consolidated financial statements from the date of acquisition. Inter-company transactions and balances are eliminated upon consolidation. USE OF ESTIMATES The preparation of consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenue and expenses during the period. Estimates have been made by management in several areas, including, but not limited to, the realizability of accounts receivable and investments, the valuation allowance associated with deferred income tax assets, investment tax credits, expected useful life of equipment, the fair value calculation with respect to the stock options, and the accrued accounts receivable and accrued accounts payable related to our premium SMS business. Actual results may differ from those estimates. CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable are recorded at the invoiced amount net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the age of the receivable, the financial stability of the customer, discussions that may have occurred with the customer and management's judgment as to the overall collectability of the receivable from that customer. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to selling, general and administration accounts in the period of recovery. REVENUE RECOGNITION The Company derives revenue from two sources: enterprise software, including maintenance and consulting services and mobile services and applications. Enterprise software involves providing enterprise software for designing, developing and manipulating database systems and applications. Mobile services involve providing SMS and other content applications and services. The Company presents revenues net of sales tax and other related taxes. ENTERPRISE SOFTWARE REVENUE RECOGNITION ZIM records revenues from the perpetual license of the Company's software products and the sale of related maintenance and consulting. The Company's standard license agreement provides a license to use the Company's products based on the number of licensed users. The Company may license its software in multiple element arrangements if the customer purchases any combination of maintenance, consulting or training services in conjunction with the license. The Company recognizes revenue pursuant to the requirements of the ASC 985-605 "Software Revenue Recognition". Revenue is recognized using the residual method when Vendor-specific objective evidence of fair value exists for all of the undelivered elements in the arrangement, but does not exist for one or more delivered elements. The Company allocates revenue to each undelivered element based on its respective fair value determined by the price charged when that element is sold separately. The Company defers revenue for the undelivered elements and recognizes the residual amount of the arrangement fee, if any. The separate elements of the arrangements are considered to be separate units of accounting. Revenue is recognized when the following four criteria have been met: · Persuasive evidence of an arrangement exists; · Delivery has occurred; · The fee is fixed and determinable; and · Collectability is probable. The Company records revenue as earned as evidenced by contracts or invoices for its services at prices established by contract, price list and/or fee schedule less applicable discounts. If at the outset of an arrangement the Company determines that the arrangement fee is not fixed or determinable, revenue is deferred until the arrangement fee becomes due. If at the outset of an arrangement the Company determines that the collectability is not probable, revenue is deferred until payment is received. Collectability is assessed based on the collection history of the client, current economic trends, customer concentrations and customer credit worthiness. Delivery of the software has occurred once the customer has accepted the product or has been provided with permanent keys to the file transfer protocol ("FTP") site. If an arrangement allows for customer acceptance of the software or services, the Company defers revenue recognition until the earlier of customer acceptance or when the acceptance right lapses. MAINTENANCE AND CONSULTING REVENUE RECOGNITION Maintenance revenues are recognized equally over the term of the maintenance contract. The liability relating to the received but unearned portion of maintenance revenues is recognized as deferred revenues. Consulting revenue, which represents services provided on a per diem basis to customers, is recognized as the services are performed as there are no customer acceptance provisions involved in these types of arrangements. In general, credit terms of 30 days are extended to customers with a small number of customers receiving longer payment terms based on the long-standing relationship with ZIM. MOBILE REVENUE RECOGNITION Revenues from the Companys mobile segment are derived principally from providing aggregation services and from their mobile content portals. Aggregation services. Revenues are recorded on a net basis as the mobile content provider is the primary obligor in the transaction as they manage and market the content, which ZIM then distributes. ZIMs role within the transaction is limited to providing transportation and a billing mechanism for the mobile content provider. Mobile content portals. Revenues from all sales are recorded on a gross basis as ZIM manages and markets the content ZIM distributes. Revenue on mobile content is recognized at the point of sale, when the customer purchases content from the websites. RESEARCH AND DEVELOPMENT EXPENSES Costs related to research, design and development of products and applications are charged to research and development expense as incurred. Software development costs are capitalized beginning when a product's technological feasibility has been established, which generally occurs upon completion of a working model, and ending when a product is available for general release to customers. All subsequent costs are expensed as incurred. To date, completing a working model of the Company's products and the general release of the products has substantially coincided. The Company has not capitalized any software development costs since such costs have not been significant. The Company qualifies for scientific research and experimental development refundable investment tax credits. These credits are recorded as a reduction of research and development expense when it is more likely than not that the credits will be realized. Other non-refundable investment tax credits not utilized in the current year can be used to offset income taxes in future years. TRANSLATION OF FOREIGN CURRENCIES The Company's reporting currency is the US dollar and the functional currency is the Canadian dollar for ZIM Corporation, US Dollar for AIS and Brazilian Reals for ZIM do Brazil. The accounts of the Company's subsidiaries that are recorded in their respective functional currencies, remeasure their foreign currency transactions as follows: gains or losses from foreign currency transactions such as those resulting from the settlement of receivables or payables denominated in foreign currency, are remeasured at the weighted average exchange rates for the period and are included in the statement of operations of the current period. For the years ended March 31, 2016, 2015, and 2014, the Company recognized a foreign exchange loss of $592, a foreign exchange loss of $6,100, and a foreign exchange loss of $4,433, respectively, in the accompanying consolidated statements of operations included in the selling, general and administration line. The translation of the Company's consolidated financial statements from the functional currency to its reporting currency is performed as follows: all assets and liabilities are translated into US dollars at the rate of exchange in effect at the balance sheet date. Equity transactions are translated at the exchange rate in effect at the date of the transaction. Revenues, expenses and cash flow amounts are translated at the weighted average exchange rates for the period. The resulting translation adjustments are included in other comprehensive income in shareholders' equity. The translation adjustments did not result in a tax impact. INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. When necessary, a valuation allowance is recorded to reduce the tax assets to an amount for which realization is more likely than not. The effect of changes in tax rates is recognized in the period in which the rate change occurs. EARNINGS PER SHARE Basic earnings per share are computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share are calculated giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to such shares at the later of the beginning of the period or the issuance date. This method is used to determine the dilutive effect of common shares. The treasury stock method is used to determine the dilutive effect of warrants and stock options. The treasury stock method assumes that proceeds received from the exercise of in-the-money share purchase warrants and stock options are used to repurchase common shares at the average market price during the period. STOCK OPTIONS AND GRANTS Compensation cost for all stock-based awards is measured at fair value on the date of grant and recognized as compensation expense over the service period for awards expected to vest. Stock-based awards granted to consultants are measured at fair value on the grant date and compensation expense is recognized on the date at which the consultant's performance is complete which, for the Company, is on the date of grant. The fair value of stock options is determined using the Black Scholes-Merton option pricing model. The expected dividend yield is based on historical dividend payouts, the expected volatility is based on historical volatilities of company stock (management believes that the historical volatility is an appropriate measure of expected volatility) for a period approximating the expected life; the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option; and the expected life represents the period of time the options are expected to be outstanding and is based on historical trends. The weighted average assumptions used in the computations are as follows: Year ended March 31, 2016 Year ended March 31, 2015 Year ended March 31, 2014 Risk-free interest rates 0.99% 0.94% 0.64% Expected volatility 161% 231% 443% Dividend yield - - - Expected life of options (years) 3.0 3.0 3.0 EQUIPMENT Equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the underlying assets using the following methods and rates: Computer equipment 40% Declining balance Software 40% Declining balance Office furniture and equipment 20% Declining balance Voice communications equipment 20% Declining balance Leasehold improvements 5 years Straight line over the IMPAIRMENT OF EQUIPMENT Equipment is tested for impairment when evidence of a decline in value exists, and adjustments to estimated fair value are made if the asset is impaired. Whenever events and circumstances indicate that the Company may not be able to recover the net book value of its productive assets, that the assets are deemed impaired and are to be written down to their estimated fair value through a charge to earnings. The guidance states that fair values may be estimated using discounted cash flow analysis or quoted market prices, together with other available information. The Company reviewed its property and equipment assets for impairment to determine if there were events or changes in circumstances that would indicate that the carrying amount of the assets may not be recoverable through future cash flows. It was determined that no impairment was evident. INTANGIBLE ASSETS Intangible assets, which consist of database migration methodologies and software, are determined to have finite lives and are amortized on the straight-line method over their estimated useful lives, which is 60 months. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Companys management believes that the impact of recently issued standards that are not yet effective will not have any significant impact on the consolidated financial statements upon adoption. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The ASU simplifies certain aspects related to income taxes, statement of cash flows, and forfeitures when accounting for share-based payment transactions. The ASU will be effective for the annual reporting periods beginning after December 15, 2016, with earlier adoption permitted. Certain of the amendments related to timing of the recognition of tax benefits and tax withholding requirements should be applied using a modified retrospective transition method. Amendments related to the presentation of the statement of cash flows should be applied retrospectively. We are currently evaluating the impact ASU 2016-09 will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Codification (ASC) Topic 842, Leases through ASU No. 2016-02. ASC Topic 842 requires a lessee to recognize all leases, including operating leases, on balance sheet via a right-of-use asset and lease liability, unless the lease is a short-term lease. All (or a portion of) fixed payments by the lessee to cover lessor costs related to ownership of the underlying assets, or executory costs, that do not represent payments for a good or service will be considered lease payments and reflected in the measurement of lease assets and lease liabilities by lessees. The new standard does not substantially change lessor accounting from current U.S. GAAP. The new standard also requires lessees and lessors to disclose more qualitative and quantitative information about their leases than current U.S. GAAP does. The standard is applied retrospectively, with elective reliefs. The new standard is effective for annual and interim reporting periods beginning after December 15, 2018 for a public business entity. Early adoption is permitted. We are currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements. In April 2015 the FASB issued Accounting Standards Update (ASU) No. 2015-05 about Intangibles-Goodwill and Other-Internal-Use Software. The objective is to provide guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendment will not change GAAP for a customers accounting for service contracts. In addition, the guidance in this Update supersedes paragraph 350-40-25-16. Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. In January 2015 the FASB issued ASU No. 2015-01 about Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items The objective is to reduce the cost and complexity of income statement presentation by eliminating the concept of extraordinary items while maintaining or improving the usefulness of the information provided to the users of financial statements. The extraordinary items must meet two criterias: unusual nature and infrequency of occurrence. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either. In May 2015, the FASB issued ASU No. 2015-09 related to revenue from contracts with customers. This standard requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for annual reporting periods beginning after December 15, 2018. Early adoption was not permitted. |
Accounting for Uncertain Tax Po
Accounting for Uncertain Tax Positions | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accounting for Uncertain Tax Positions | 4 - ACCOUNTING FOR UNCERTAIN TAX POSITIONS The Company recognizes any interest accrued related to unrecognized tax benefits in interest and penalties in income tax benefit in the Consolidated Statement of Comprehensive income. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accounts Receivable | 5 - ACCOUNTS RECEIVABLE March 31, 2016 March 31, 2015 $ $ Trade accounts receivable 47,362 59,460 Allowance for doubtful accounts - - Other 10,945 3,893 58,307 63,353 |
Investments
Investments | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investments | 6 INVESTMENTS AND LONG TERM DEPOSITS Investments and long term deposits Investment Date Value at Investment Date 2016 2015 Available For Sale Seregon October 1, 2009 95,147 - - No CP4H June 29, 2012 187,367 - - No LW Capital Pool May 31, 2010 10,290 - - No Hosted Bizz Dec. 31, 2013 1,005 771 788 No Equispheres Inc. August 26,2015 111,990 115,643 - No On October 21, 2009, ZIM Corporation made a $95,147 investment in Seregon Solutions Inc. The investment consisted of the purchase of 61,480 common shares and 69,677 warrants. Depending on the fiscal 2010 results of Seregon each warrant was convertible, at no cost to ZIM, to a portion of a common share or would have expired with no action. The warrants converted during fiscal 2012 and ZIM gained an additional 69,677 common shares to a total of 131,157. With the additional shares provided to ZIM, ZIM did not gain significant influence, or control, over Seregon. Due to a significant downturn in the business outlook for Seregon, ZIM has determined that this investment is fully impaired and, on March 31, 2014, has taken an impairment charge equal to the full value of the investment. On June 29 th Connecting People for Health Co-operative Ltd. (CP4H) is owned by a large and varied base of co-operatives and Credit Unions that span Atlantic Canada. CP4H has created HealthConnex as a healthcare service for its members. CP4H has been promoting and working toward a more user-driven health care system since it was founded in 2006 by the co-op and credit union sector. HealthConnex is a health portal providing tools for patients to drive positive change in the health care system, from the patient up. The HealthConnex internet portal provides convenient services and a pay engine that allow patients to connect with their health care team in new and innovative ways. In addition, HealthConnex purchased Benneworth Advanced Systems and the Medical Office Manager product (MOM) which was developed using ZIM's core database technology and language. ZIM's investment in CP4H is strategic in nature as it provides the company with indirect access to the 1800 medical professionals using MOM and future product opportunities. The equity interest in CP4H by ZIM is less than 10% and ZIM has no significant influence, over the corporate decisions of CP4H at this time. Based on these facts the investment has been accounted for using the cost method. Due to material changes in the business outlook for CP4H, ZIM has determined that this investment is fully impaired and, on March 31, 2015, has taken an impairment charge equal to the full value of the investment. On March 31, 2010, ZIM Corporation invested $10,000 Canadian Dollars in LW Capital Pool Inc. (LWCPI). On April 3, 2015, LWCPI completed a reverse takeover transaction with Tweed Marijuana Inc. (Tweed) and in exchange for its investment in LWCPI ZIM received 20,000 shares of Tweed. On April 11, 2015 the Company sold its shares of Tweed of a net gain of $71,842 Canadian Dollars, which at the prevailing exchange rate of 1.0979 equals $65,436 United States Dollars. Transaction fees amounted to $727. On April 30, 2015, ZIM Corporation made an equity investment in Equispheres Inc. The investment consisted of the purchase of 250,000 common shares at a price of $20,042. On August 26, 2015, ZIM Corporation made an equity investment in Equispheres Inc. The investment consisted of the purchase of 500,000 common shares at a price of $91,948 Equispheres Inc. is an advanced materials company developing new technologies for the production of metallic particles for use in additive manufacturing. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Intangible Assets | 7 INTANGIBLE ASSETS On October 27th, 2010, ZIM purchased all of the technology assets of Torch Technologies for the sum of $50,000 Canadian dollars ($51,451 United States dollars). The assets include database migration methodologies and software assets. The Company recorded the acquired technology assets as intangible assets on the consolidated balance sheet. This asset was being amortized over 60 months on a straight line basis. Amortization expense for fiscal 2016 was $3,943 and the net book value as at March 31, 2016 was $NIL. Amortization expense for fiscal 2015 was $8,804 and the net book value as at March 31, 2015, was $4,358. Amortization expense for fiscal 2014 was $9,497 and net book value as at March 31, 2014, was $13,814. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Property and Equipment | 8 - EQUIPMENT March 31, 2016 Cost Accumulated depreciation Net book value $ $ $ Computer equipment 845,762 835,296 10,466 Software 78,246 72,446 5,800 Office furniture and equipment 184,570 175,388 9,182 Voice communications equipment 4,765 4,314 451 Leasehold improvements 128,354 127,936 418 1,241,697 1,215,380 26,317 March 31, 2015 Cost Accumulated depreciation Net book value $ $ $ Computer equipment 861,019 850,484 10,535 Software 74,259 72,832 1,427 Office furniture and equipment 189,099 177,670 11,429 Voice communications equipment 4,897 4,320 577 Leasehold improvements 125,286 124,748 538 1,254,560 1,230,054 24,506 Depreciation expense for the year ended March 31, 2016 was $9,166 ($19,347 and $10,953 for the years ended March 31, 2015 and 2014 respectively). These expenses are included in the cost of revenue account, the selling, general, and administration account and the research and development account. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 9 DISCONTINUED OPERATIONS Revenue from the sale of mobile content for the fiscal year ended March 31, 2016 was NIL Revenue from the sale of mobile content for the fiscal year ended March 31, 2015 was $NIL as compared to $349 for fiscal year ended March 31, 2014. The decline was due to a highly competitive and saturated market resulting in a lower volume of downloads, partially offset by our pricing increases for these products. Due to the continuing decline and operational cost of this business on March 31, 2013 ZIM discontinued operations in this area. Year Ended Year Ended Year Ended Revenue - - 349 (Cost) recovery of revenue - - 5,015 Selling, general and administrative - - - Research and development - - - Gain (loss) from discontinued operations - - 5,364 At April 1, 2014, internal resources related to the operation of this business were reassigned to tasks related to ZIMs enterprise software business. All remaining current assets and current liabilities at March 31, 2013 have been discharged in the first quarter of fiscal 2014 as the business is dissolved. The dissolution will have no material impact on the financial performance of the Company including no significant impact on cashflow. The wind up of the assets and liabilities in fiscal 2014 resulted in a gain from discontinued operations of $5,364. |
Line of Credit
Line of Credit | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Line of Credit | 10 LINE OF CREDIT During fiscal 2016, a working capital line of credit, in the form of overdraft protection, was available at approximately $38,548 In order to maintain the working capital line of credit the Company must maintain a Tangible Net Worth of greater than $150,000 Canadian dollars (equivalent to $118,269 US dollars) and a ratio of current assets to current liabilities greater than 1.10:1. During fiscal years 2016 the Company has not been in violation of these covenants. As at March 31, 2016 nothing was drawn down on this line of credit. The line of credit does not have defined expiration or renewal dates. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Accrued Liabilities | 11 - ACCRUED LIABILITIES March 31, 2016 March 31, 2015 $ $ Employee related accruals 41,518 91,586 Withholding tax accrual - (6,100) Trade - 1,064 41,518 87,143 |
Common Share Issue
Common Share Issue | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Common Share Issue | 12 COMMON SHARE ISSUE On November 12, 2009, the Board of Directors approved a share repurchase plan. Shares may be repurchased by the company to a maximum of $200 per day and $12,000 per quarter. The repurchase program has no expiration date. As of March 31, 2016 no shares have been repurchased as part of this program. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions | 13 - RELATED PARTY TRANSACTIONS No remuneration has been recorded in these consolidated financial statements for the services of the Chief Executive Officer (CEO) for the fiscal year 2016, 2015 and 2014 except for the 9,545,962 shares of common stock, valued at $33,243 issued through the fiscal year 2016, 1,013,333 shares of common stock, valued at $9,038 issued through the fiscal year 2015 and for stock options issued through the year with a fair market value of $NIL, and $8,501 for the fiscal years 2015 and 2014 respectively. The CEO is also a director and the controlling shareholder. A director of the Company is a director and principal owner of a company that provides hosting services to ZIM. During the fiscal year ending March 31, 2016 the company paid $27,870 for these services. From April 1, 2016 to May 31, 2016 the company paid $3,927 for these services. An Officer of the Company is the principal owner of a company that provides finance, accounting and bookkeeping services to ZIM. During the fiscal year ending March 31, 2016 the company paid $23,763 for these services. From April 1, 2016 to May 31, 2016 the company paid $2,496 for these services. On April 11, 2014 the Company sold its shares of Tweed for a net gain of $71,842 Canadian Dollars, which at the prevailing exchange rate of 1.0979 equals $65,436 United States Dollars. Transaction fees amounted to $727. At the time of the transaction the Chairman of ZIMs Audit Committee was also the Chief Financial Officer at Tweed. |
Stock Options
Stock Options | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Stock Options | 14 - STOCK BASED COMPENSATION During the year ended March 31, 2016 and March 31, 2015, the Company issued common shares and options to employees and non-employees, and as a result, common shares and additional paid in capital has been increased by $55,063 and $81,898 respectively. At various times through fiscal year 2015 Dr. Cowpland received a total of 9,545,962 shares of common stock in lieu of cash for services provided to the Company, valued at $33,243. At various times through fiscal year 2015 a Company controlled by Mr. Stechyson received a total of 1,370,000 shares of common stock in lieu of cash for services provided to the Company, valued at $5,634. On August 22, 2015, 1,000,000 common shares were issued to each of Ms. Debbie Weinstein, Mr. Steven Houck and Mr. Donald Gibbs for a total of 3,000,000 At various times through fiscal year 2015 Dr. Cowpland received a total of 1,013,333 shares of common stock in lieu of cash for services provided to the Company, valued at $9,038. At various times through fiscal year 2015 a Company controlled by Mr. Stechyson received a total of 4,290,000 shares of common stock in lieu of cash for services provided to the Company, valued at $36,819. At various times through fiscal year 2015 a Company controlled by Mr. Chapman received a total of 3,079,689 shares of common stock in lieu of cash for services provided to the Company, valued at $24,142. The increase in additional paid in capital is the value associated with the common shares issued and the vesting of options, which is recorded as compensation expense in the statement of Comprehensive Income as a part of selling, general and administrative expense. Under ZIMs Employee Stock Option Plan, the Company may grant options to its officers, directors and employees for up to 27,200,000 common shares. As at March 31, 2016, 9,242,101 (March 31, 2015, 11,597,963) options were outstanding under the Employee Stock Option Plan. Stock options are granted with an exercise price equal to the common shares fair market value at the date of grant. Options are granted periodically and both the maximum term of an option and the vesting period are set at the Board's discretion. All options granted in fiscal year 2016 vested on the day of the grant and have a three year term. The expected life of the grants due to forfeitures and exercise of options is estimated based on recent history and is 3.0 years. The Company recognized the following expense relating to stock options and grants: Year ended March 31, 2016 Year ended March 31, 2015 Year ended March 31, 2014 $ $ $ Options compensation expense for employees 2,809 3,405 22,731 Options compensation expense for consultants 3,401 8,494 55,495 Stock grant compensation expense for Consultants 3,986 60,961 - Stock grant compensation expense for executive officers 44,867 9,038 - Total expense 55,063 81,898 78,226 All options granted vested on the day of the grant resulting in the Company not having any non-vested awards as of March 31, 2016 or March 31, 2015. A summary of the status of the stock options is as follows: March 31, 2016 Number of options outstanding March 31, 2015 Number of options outstanding Options outstanding, beginning of year 17,607,963 21,584,558 Granted 2,263,000 1,397,000 Expired (10,628,862) (5,373,595) Options outstanding, end of year 9,242,101 17,607,963 The following table represents a summary of the options outstanding as at March 31, 2016: Options outstanding and exercisable Range of exercise prices Number Weighted $ Years 0.002-0.004 873,000 2.75 0.004-0.008 2,175,000 2.07 0.008-0.012 1,569,500 0.64 0.016-0.020 4,624,601 0.52 9,242,101 1.12 The weighted average grant-date fair value of options granted and vested in fiscal 2016 and 2015 were $0.0051 and $0.0081 respectively. As at March 31, 2016 there were NIL options in the money. EMPLOYEE AND NON-EMPLOYEE OPTIONS During the year ended March 31, 2016, 863,000 options were granted to employees. In the year ended March 31, 2015, 457,000 options were granted to employees. During the year ended March 31, 2016, 1,400,000 options were granted to non-employees. In the year ended March 31, 2015, 940,000 options were granted to non-employees. No options have been granted with exercise prices below the market price on the respective grant dates during the year ended March 31, 2016 or March 31, 2015. |
Interest
Interest | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Interest | 15 - INTEREST Year ended March 31, 2016 Year ended March 31, 2015 Year ended March 31, 2014 $ $ $ Interest income 55,436 81,521 70,621 Interest expense (4,163) (5,459) (10,002) Total 51,273 76,063 60,619 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Taxes | 16 - INCOME TAXES The Company recognizes in its consolidated financial statements the impact of a tax position if that position is more likely than not of not being sustained on an audit, based on the technical merits of the position. The Company and its subsidiaries file income tax returns in Canadian, Brazil and U.S. federal jurisdictions, and various provincial jurisdictions. The Companys federal income tax returns are generally subject to examination for a period of three years after filing of the respective return in the U.S. and Canada and five years in Brazil. Income tax expense varies from the amount that would be computed by applying the basic federal and provincial income tax rates to loss before taxes, as follows: Year ended March 31, 2016 Year ended March 31, 2015 Year ended March 31, 2014 $ $ $ Tax Rate, comprised of a federal rate of 11.00% and a provincial rate of 4.50% 15.50% 15.50% 15.50% Expected Canadian Income Tax (Recovery) (48,287) (34,913) (54,458) Change in valuation allowance 25,102 (208,774) 6,700 Expired Ontario transitional tax credit - 193,415 - Permanent differences 21,958 16,049 11,778 Difference between Canadian and foreign tax rates (6,326) 1,098 (2,555) Adjustments to deferred tax assets - 45,487 7,723 Other 7,701 (859) 23,116 148 11,502 (12,750) The change in valuation allowance for originating temporary differences and losses available for carry forward, is calculated using an expected deferred tax rate of 15.50%, based on the application of the Small Business Deduction. The rate at which such amounts may be realized as disclosed as part of a deferred tax asset and related valuation allowance takes into account the enacted tax rate decreases over the expected period of realization. Refundable investment tax credits for research and development in Canada of $305,708, $300,404, and $292,712, and for the years ended March 31, 2016, March 31, 2015 and March 31, 2014, respectively is netted against research and development expense. The investment tax credits are subject to review and approval by taxation authorities and it is possible that the amounts granted will be different from the amounts recorded by the Company. Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The tax effects of temporary differences that gave rise to significant portions of the deferred tax asset and deferred tax liability are as follows: March 31, 2016 March 31, 2015 $ $ Temporary differences Losses available for carry forward 155,096 196,556 Property and equipment - differences in net book value and unamortized capital cost 124,501 126,170 Intangible assets - differences in net book value and tax basis 215,205 219,481 Unused scientific research and experimental development amounts deductible and investment tax credits available for carry forward 807,603 803,397 Other 73,254 35,373 Gross deferred tax asset 1,375,659 1,380,976 Valuation allowance (1,375,659) (1,380,976) Net deferred tax asset - - The Company has federal and provincial non-capital losses available to reduce taxable income in Canada, which expire in the following years: Federal & $ 2015 - 2026 685,338 2027 and thereafter 315,279 1,089,999 The Company has capital losses of $361,818, which are available indefinitely to reduce capital gains in future years as of March 31, 2016. As at March 31, 2016, the Company had accumulated unclaimed federal and provincial scientific research and experimental development deductions of approximately $3,849,270 ($3,473,557 in 2015). This amount can be carried forward indefinitely to reduce income taxes payable in future years. The Company has federal scientific research and experimental development credits available to reduce income taxes in Canada, which expire in the following years: 2019 5,125 2020 - 2021 13,937 2022 273,087 2023 1,753 2024 2,196 2025 to 2033 9,611 305,708 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings (Loss) Per Share | 17 - EARNINGS (LOSS) PER SHARE For the purposes of the earnings (loss) per share computation, the weighted average number of common shares outstanding has been used. The following securities are considered "in the money" and could potentially dilute the basic earnings per share in the future but have not been included in diluted earnings per share because their effect was negligible or antidilutive: March 31, 2016 March 31, 2015 March 31, 2014 Stock options - 7,893,019 16,002,457 Total options outstanding at March 31, 2016, 2015 and 2014 were 9,242,101, 17,607,963, and 21,584,558 respectively. |
Financial Risks
Financial Risks | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Financial Risks | 18 - FINANCIAL RISKS FOREIGN EXCHANGE RISK The Company operates internationally, giving rise to significant exposure to market risks from changes in foreign exchange rates. The Companys financial assets are in the form of cash and cash equivalents held at institutions with high quality credit ratings. A hypothetical 10% change in the value of one Brazilian real expressed in U.S. dollars during the year ended March 31, 2016 would have caused an approximate $37,298 change in the Companys revenue for the fiscal year 2016. The Company is exposed to exchange risk due to the timing of the movement of funds between subsidiaries and the parent company related to the transfer pricing agreement and the pricing of contracts in non-functional currencies. Financial instruments denominated in foreign currencies that lead to foreign exchange risk when funds are moved include: Cash and cash equivalents of $472,317 are comprised of $122,798 cash and $349,519 in cash equivalents. The cash equivalents of $349,519 at March 31, 2016 ($748,779 at March 31, 2015, $1,342,291 at March 31, 2014) are comprised of: Held in Canada: CIBC Wood Gundy at 1.25% - $81,404 ($105,589 CDN) No Maturity Held in Brazil: Bank Deposit Certificate (CDB) at 8% per annum plus inflation - $268,116 (R$951,777) - No Maturity. Of these deposits $56,538 (R$120,000) are secured by Government Deposit Insurance. Cash and cash equivalents includes the following amounts in their source currency: March 31, 2016 March 31, 2015 Canadian dollars 165,874 405,874 US dollars 17,292 50,441 Brazilian reals 1,161,324 2,094,638 Accounts receivable include the following amounts receivable in their source currency: March 31, 2016 March 31, 2015 Canadian dollars 20,113 21,531 US dollars 8,970 7,492 Brazilian reals 120,097 123,796 Accounts payable include the following amounts payable in their source currency: March 31, 2016 March 31, 2015 Canadian dollars 9,729 28,648 US dollars 1,661 545 Brazilian reals - 6,929 Accrued liabilities include the following accruals in their source currency: March 31, 2016 March 31, 2015 Canadian dollars 41,674 99,733 Brazilian reals 33,333 27,086 The Company does not use derivative financial instruments to reduce its foreign exchange risk exposure. CREDIT RISK The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments. Credit exposure is minimized by dealing with only creditworthy counterparties in accordance with established credit approval policies. Concentration of credit risk in accounts receivable is indicated below by the percentage of the total balance receivable from customers in the specified geographic area: March 31, 2016 March 31, 2015 Canada 27% 27% North America, excluding Canada 15% 12% South America 58% 61% 100% 100% FAIR The carrying values of accounts receivable, accounts payable, available for sale investments and accrued liabilities approximate their fair value due to the relatively short periods to maturity of the instruments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies | 19 COMMITMENTS AND CONTINGENCIES OPERATING LEASE COMMITMENTS The Company has the following financial commitments related to minimum rent expenses for facilities: $ 2016 37,496 2017 37,496 2018 37,496 2019 37,496 2020 15,623 Total 165,606 For the year ended March 31, 2016, facilities expense was $94,766 ($116,540 for the year ended March 31, 2015 and OTHER The Company is committed to pay an unrelated third party $75,000 upon the listing of ZIM Corporations common shares on a national securities exchange. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosure | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Supplemental Cash Flow Disclosure | 20 - SUPPLEMENTAL CASH FLOW DISCLOSURE Year ended Year ended $ $ Interest paid (4,163) (10,002) Income taxes paid 148 (3,661) Investment tax credit on research and development received 296,924 333,106 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting | 21 - SEGMENT REPORTING The Company operates in two reportable segments based on product differentiation: mobile and enterprise software. Mobile applications involve providing SMS and other content applications and services for mobile devices. Enterprise software involves providing enterprise software for designing, developing and manipulating database systems and applications. The Company considers all revenues and expenses to be of an operating nature and accordingly, allocates them to the segments. Costs specific to a segment are charged directly to the segment. Company operating expenses are allocated to either of the segments based on gross revenues. Significant assets of the Company include working capital, an investment and property and equipment. The accounting policies of the reportable segments are the same as those described in the summary of the significant accounting policies. The following table sets forth external revenues, cost of revenues (including depreciation expense), operating expenses (including depreciation expense) and other amounts attributable to these product lines: Year ended March 31, 2016 Mobile Software, Maintenance and Consulting Total $ $ $ Revenue 140,889 478,402 619,291 Cost of revenue 6,241 60,896 67,137 Gross margin 134,648 417,506 552,154 Allocation of operating expenses 224,532 696,209 920,741 Allocation of interest income, net (13,959) (43,096) (57,055) Income taxes - 148 148 210,573 653,261 863,834 Net loss (75,925) (235,755) (311,680) Year ended March 31, 2015 Mobile Software, Maintenance and Consulting Total $ $ $ Revenue 162,741 972,922 1,135,663 Cost of revenue 8,540 62,335 70,875 Gross margin 154,201 910,587 1,064,788 Allocation of operating expenses 207,482 1,225,225 1,432,707 Allocation of interest income (11,015) (65,048) (76,063) Gain on investment (9,647) (56,964) (66,611) Income tax recovery 1,666 9,837 11,503 188,486 1,113,050 1,301,536 Net loss (34,285) (202,463) (236,748) Year ended March 31, 2014 Mobile Software, Maintenance and Consulting Total $ $ $ Revenue 242,453 1,028,974 1,271,427 Cost of revenue 7,036 156,534 163,570 Gross margin 235,417 872,440 1,107,857 Allocation of operating expenses 288,500 1,069,162 1,357,661 Allocation of interest income, net - 180,271 180,271 Impairment of investment (12,881) (47,738) (60,619) Income taxes recovery (2,709) (10,041) (12,750) 272,909 1,191,654 1,464,563 Net loss (37,492) (319,214) (356,706) One customer accounted for approximately 16% for the year ended March 31, 2014, one customer accounted for approximately 12.5% of revenue for the year ended March 31, 2015 and one customer accounted for approximately 21% of revenue for the year ended March 31, 2016. The following table sets forth total assets used by each segment: TOTAL ASSETS March 31, 2016 March 31, 2015 $ $ Mobile 259,615 213,305 Software 804,995 1,275,211 Total assets 1,064,610 1,488,516 The following tables set forth external revenues and long-lived assets attributable to geographic areas. External revenues are based on the location of the customer: March 31, 2016 March 31, 2015 $ $ Long-lived assets Canada 24,155 22,673 Brazil 2,162 1,833 Total long-lived assets 26,317 24,506 Total Revenue Year ended Year ended Year ended $ $ United States 48,850 61,500 81,407 Europe 15,605 15,898 16,373 Brazil 372,983 710,348 851,774 Canada 49,783 186,889 77,414 Singapore 136,612 157,049 219,228 Other 1,458 3,979 25,232 Total revenue 619,291 1,135,663 1,271,427 Management evaluates each segments performance based upon revenues and gross margins achieved. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events | 22 SUBSEQUENT EVENTS In April 2016, ZIM incorporated a wholly owned subsidiary called GeneSpans Corporation. GenSpans will fund research into genetic therapy solutions. |
Uncategorized Items - zimcf-201
Label | Element | Value |
Cumulative translation adjustment | us-gaap_CumulativeTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease | $ (165,794) |