Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 1,289,636 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 53,226,720 | |
Entity Incorporation, Date of Incorporation | May 5, 2003 | |
Entity Incorporation, State Country Name | Nevada | |
Trading Symbol | pfie |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 17,186,238 | $ 14,144,796 |
Accounts receivable, net | 7,003,089 | 9,462,378 |
Inventories | 11,071,036 | 11,766,535 |
Income tax receivable | 144,402 | |
Prepaid expenses & other current assets | 131,503 | 112,741 |
Total Current Assets | 35,536,268 | 35,486,450 |
LONG-TERM ASSETS | ||
Deferred tax asset | 535,126 | 501,921 |
PROPERTY AND EQUIPMENT, net | 9,092,880 | 9,275,965 |
OTHER ASSETS | ||
Goodwill | 997,701 | 997,701 |
Intangible assets, net | 577,866 | 594,019 |
Total Other Assets | 1,575,567 | 1,591,720 |
TOTAL ASSETS | 46,739,841 | 46,856,056 |
CURRENT LIABILITIES | ||
Accounts payable | 604,730 | 1,040,530 |
Accrued liabilities | 594,531 | 332,229 |
Income taxes payable | 355,894 | 347,486 |
Total current liabilities | 1,555,155 | 1,720,245 |
LONG-TERM LIABILITIES | ||
Deferred income tax liability | 641,789 | 631,353 |
TOTAL LIABILITIES | $ 2,196,944 | $ 2,351,598 |
STOCKHOLDERS' EQUITY | ||
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding | ||
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,226,720 and 53,199,136 shares issued and outstanding as of June 30, 2015 and March 31, 2015, respectively | $ 53,227 | $ 53,199 |
Additional paid-in capital | 25,688,904 | 25,525,052 |
Accumulated other comprehensive income (loss) | (1,555,609) | (1,888,981) |
Retained earnings | 20,356,375 | 20,815,188 |
Total Stockholders' Equity | 44,542,897 | 44,504,458 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 46,739,841 | $ 46,856,056 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Jun. 30, 2015 | Mar. 31, 2015 |
CONSOLIDATED BALANCE SHEETS PARENTHETICAL | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | ||
Preferred stock shares outstanding | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,226,720 | 53,199,136 |
Common stock shares outstanding | 53,226,720 | 53,199,136 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||
Sales of goods, net | $ 6,211,970 | $ 12,316,512 |
Sales of services, net | 665,273 | 828,322 |
Total Revenues | 6,877,243 | 13,144,834 |
COST OF SALES | ||
Cost of goods sold-product | 2,967,918 | 5,067,627 |
Cost of goods sold-services | 595,538 | 640,107 |
Total Cost of Goods Sold | 3,563,456 | 5,707,734 |
GROSS PROFIT | 3,313,787 | 7,437,100 |
OPERATING EXPENSES | ||
General and administrative expenses | 1,978,485 | 2,409,069 |
Research and development | 304,489 | 271,227 |
Payroll expenses | 1,462,655 | 1,265,699 |
Depreciation and amortization expense | 107,455 | 124,715 |
Total Operating Expenses | 3,853,084 | 4,070,710 |
INCOME (LOSS) FROM OPERATIONS | $ (539,297) | $ 3,366,390 |
OTHER INCOME (EXPENSE) | ||
Interest expense | ||
Gain on disposal of fixed assets | $ 18,637 | |
Other (expense) income | (108,990) | $ 3,121 |
Interest income | 21,123 | 237 |
Total Other Income (Expense) | (69,230) | 3,358 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (608,527) | 3,369,748 |
INCOME TAX EXPENSE (BENEFIT) | (149,714) | 1,149,042 |
NET INCOME (LOSS) | (458,813) | 2,220,706 |
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) | 333,372 | 296,436 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (125,441) | $ 2,517,142 |
BASIC EARNINGS (LOSS) PER SHARE | $ (0.01) | $ 0.05 |
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ (0.01) | $ 0.05 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,214,594 | 47,922,059 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,214,594 | 48,579,418 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Income | $ (458,813) | $ 2,220,706 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 225,945 | 182,392 |
Gain on disposal of fixed assets | (18,637) | |
Bad debt expense | 24,906 | |
Stock options issued for services | 187,406 | 351,364 |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | 2,482,059 | (3,071,142) |
Changes in income tax receivable | (144,402) | |
Changes in inventories | 786,325 | (187,668) |
Changes in prepaid expenses | (18,728) | (23,461) |
Changes in deferred tax asset | (33,205) | (79,208) |
Changes in accounts payable and accrued liabilities | (181,741) | 428,360 |
Changes in income taxes payable | 15,390 | 1,246,558 |
Net Cash Provided by Operating Activities | 2,866,505 | 1,067,901 |
INVESTING ACTIVITIES | ||
Proceeds from disposal of equipment | 52,500 | |
Purchase of fixed assets | (12,285) | (1,147,274) |
Net Cash Provided by (Used in) Investing Activities | 40,215 | (1,147,274) |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (23,526) | |
Stock issued in exercise of stock options | 78,870 | |
Net Cash Provided by (Used in) Financing Activities | (23,526) | 78,870 |
Effect of exchange rate changes on cash | 158,248 | 113,917 |
NET INCREASE IN CASH | 3,041,442 | 113,414 |
CASH AT BEGINNING OF PERIOD | 14,144,796 | 4,456,674 |
CASH AT END OF PERIOD | $ 17,186,238 | $ 4,570,088 |
CASH PAID FOR: | ||
Interest | ||
Income taxes | $ (138,008) |
Note 1 - Condensed Financial St
Note 1 - Condensed Financial Statements | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 1 - Condensed Financial Statements | NOTE 1 - CONDENSED FINANCIAL STATEMENTS The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2015 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's March 31, 2015 audited financial statements. The results of operations for the periods ended June 30, 2015 and 2014 are not necessarily indicative of the operating results for the full years. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 2 - Significant Accounting Policies | Note 2 Organization and Summary of Significant Accounting Policies This Organization and Summary of Significant Accounting Policies of Profire Energy, Inc. and Subsidiary (the Company) is presented to assist in understanding the Companys consolidated financial statements. The Companys accounting policies conform to accounting principles generally accepted in the United States of America (US GAAP). On September 30, 2008, The Flooring Zone, Inc. (the Parent) entered into an Acquisition Agreement with Profire Combustion, Inc. and the shareholders of Profire Combustion, Inc. (the Subsidiary), subject to customary closing conditions. All conditions for closing were satisfied or waived and the transaction closed on October 9, 2008. Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Company were issued to the three shareholders of the Subsidiary in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, the Subsidiary became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Company. For accounting purposes, the Subsidiary is considered the accounting acquirer, and the historical Balance Sheets, Statements of Operations and Other Comprehensive Income, and Statement of Cash Flow of the Subsidiary are presented as those of the Company. The historical equity information is that of the Subsidiary, the accounting acquiree. The recapitalization required pursuant to this merger resulted in a negative additional paid-in capital balance. Organization and Line of Business The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry in the Canadian and US markets. Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. Basic and Diluted Earnings (Loss) Per Share The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings (loss) per share includes common stock equivalents outstanding at the balance sheet date. The Company had 69,190 and 657,359 stock options included in the fully diluted earnings (loss) per share as of June 30, 2015 and 2014, respectively. The common stock equivalents outstanding at June 30, 2015 have been excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive. Basic and diluted earnings (loss) per share for the three months ended June 30, 2015 and 2014 are as follows: For the Three Months Ended June 30, 2015 2014 Net income (loss) applicable to common shareholders $ (458,813) $ 2,220,706 Weighted average shares outstanding 53,214,594 47,922,059 Weighted average fully diluted shares outstanding 53,214,594 48,579,418 Basic earnings per share $ (0.01) $ 0.05 Fully diluted earnings per share $ (0.01) $ 0.05 Foreign Currency and Comprehensive Income The Companys functional currency is the Canadian Dollar (CAD). The financial statements of the Company were translated to U.S. Dollars (USD) using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.809300 and 0.788786 were used to convert the Companys June 30, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.811950 and 0.917096 for the three months ended June 30, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Operations and Comprehensive Income, and the Consolidated Statements of Stockholders Equity. Fair Value of Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of June 30, 2015 and March 31, 2015, cash and cash equivalents totaled $17,186,238 and $14,144,796, respectively. As of June 30, 2015 $250,000 USD was guaranteed by the FDIC and $3,413,596 USD was guaranteed by the Province of Alberta, Canada. Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $134,635 and $108,641 as of June 30, 2015 and March 31, 2015, respectively. Inventories In accordance with ARB No. 43 Inventory Pricing, the Companys inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. Inventory consists of finished goods held for sale. As of June 30, 2015 and March 31, 2015, inventory consisted of the following: June 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 11,256,637 11,951,108 Work in process - - Subtotal 11,256,637 11,951,108 Reserve for Obsolescence (185,601) (184,573) Total $ 11,071,036 $ 11,766,535 Marketable Securities The Company reports its investments in marketable securities under the provisions of ASC 320, Investments in Debt and Equity Securities. The Company evaluates securities for other-than-temporary impairment at least on a yearly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to the length of time and amount of the loss relative to cost, the nature and financial condition of the issuer and the ability and intent of the Company to hold the investment for a time sufficient to allow any anticipated recovery in fair value. Pursuant to ASC 320-5, other than temporary impairment losses are recorded as impairment expense in the statement of operations during the period in which the impairment is determined. Long-Lived Assets We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the assets carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. Beginning in fiscal year 2016, we revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type that has a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended June 30, 2015. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, IntangiblesGoodwill and Other. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Companys acquisition of VIM assets has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other (ASC 350). Goodwill is tested for impairment at the reporting unit level. The Companys three operating segments comprise the reporting unit for goodwill impairment testing purposes. Revenue Recognition The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. Cost of Sales The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. Advertising Costs The Company classifies expenses for advertising as general and administrative expenses. The Company incurred advertising costs of $20,240 and $15,497 during the three months ended June 30, 2015 and 2014, respectively. Stock-Based Compensation The Company follows the provisions of ASC 718, Share-Based Payment. which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. Income Taxes The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax expense (benefit) are (-25%) and 35% for the three months ended June 30, 2015 and 2014, respectively. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. Research and Development All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $304,489 and $271,227 for the three months ended June 30, 2015 and 2014, respectively. Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $85,326 and $119,193 during the three months ended June 30, 2015 and 2014, respectively. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses and unrealized holding gains and losses on available for sale securities. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. Property and Equipment Useful Lives Property and equipment is stated at cost. Depreciation on property and equipment is computed using the diminishing balance method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows: Assets Estimated useful life Furniture and fixtures 7 Years Machinery and equipment 7 Years Buildings 30 Years Vehicles 5 Years Computers 3 Years Software 2 Years |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 3 - Property and Equipment | NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following as of June 30, 2015 and March 31, 2015: June 30, 2015 March 31, 2015 Office furniture and equipment $ 948,871 $ 937,274 Service and shop equipment 582,662 573,233 Vehicles 2,934,503 3,040,439 Land and buildings 6,782,014 6,746,597 Total property and equipment 11,248,050 11,297,543 Accumulated depreciation (2,155,170) (2,021,578) Net property and equipment $ 9,092,880 $ 9,275,965 |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 4 - Stockholders' Equity | Note 4 STOCKHOLDERS EQUITY The Company had the following $0.001 par value authorized stock: Preferred Stock 10,000,000 shares. Common Stock 100,000,000 shares. As of June 30, 2015 and March 31, 2015, the Company had 53,226,720 and 53,199,136 shares of common stock issued and outstanding, respectively. On June 2, 2014, we filed a registration statement on Form S-1 to register shares of our common stock with the Securities and Exchange Commission to be offered to the public by us and by certain selling stockholders named in the registration statement. We also filed amendments to such registration statement on June 19, 2014, June 24, 2014, June 25, 2014, and June 26, 2014. Our net proceeds from the sale of 4,500,000 shares of our common stock by us pursuant to the registration statement was approximately $16,430,000, 16424688after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We did not receive any proceeds from the sale of shares of our common stock by the selling stockholders. We have used and plan to continue using the proceeds from the offering to help fund Company growth initiatives. During the period ended June 30, 2015, the Company issued 27,699 shares of common stock valued at $43,373 for the settlement of restricted stock awards. |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 5 - Intangible Assets | NOTE 5 INTANGIBLE ASSETS Definite-lived intangible assets consist of distribution agreements, patents, trademarks, copyrights, and domain names. The costs of distribution agreements are amortized over the remaining life of agreements. The costs of the patents are to be amortized over 20 years once the patent has been approved. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, Goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicates that the carrying value of a reporting unit more likely than not exceeds its fair value. The Companys annual goodwill impairment testing date is March 31 of each year. Intangible assets consisted of the following as of June 30, 2015 and March 31, 2015: Definite-lived intangible assets June 30, 2015 March 31, 2015 Distribution agreements $ 42,720 $ 41,638 Less: Accumulated amortization (42,720) (27,757) Distribution agreements, net - 13,881 Patents, trademarks, copyrights, and domain names 595,227 580,138 Less: Accumulated amortization (17,361) - Patents, trademarks, copyrights, and domain names, net 577,866 580,138 Total definite-lived intangible assets, net $ 577,866 $ 594,019 Indefinite-lived intangible assets June 30, 2015 March 31, 2015 Goodwill $ 997,701 $ 997,701 Estimated amortization expense for the distribution agreements, patents, trademarks, copyrights, and domain names for the next five years consists of the following as of June 30, 2015: Year Ending March 31 2016 $ 27,581 2017 29,007 2018 29,007 2019 29,007 2020 29,007 |
Note 6 - Segment Information
Note 6 - Segment Information | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 6 - Segment Information | NOTE 6 SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Three Months Ended June 30, Sales 2015 2014 Canada $ 1,401,544 $ 4,592,982 United States 5,475,699 8,551,852 Total $ 6,877,243 $ 13,144,834 June 30, March 31, Long-lived assets 2015 2015 Canada $ 1,236,344 $ 1,231,434 United States 7,856,536 8,044,531 Total $ 9,092,880 $ 9,275,965 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 7 - Stock Based Compensation | NOTE 7 STOCK BASED COMPENSATION The Company did not issue any equity awards during the three months ended June 30, 2015. The Company recognized $187,406 and $351,364 in expense for the fair value of previously granted stock based compensation vested during the three months ended June 30, 2015, and 2014, respectively. Stock compensation expense is recognized on a pro-rata basis over the vesting period of the equity awards. During the three month periods ended June 30, 2015 the Company recognized $187,406 in compensation expense arising from equity awards issued, leaving $2,070,403 of compensation expense on equity awards to be recognized subsequent to June 30, 2015. A summary of the status of the Companys stock option plans as of June 30, 2015 and March 31, 2015 and the changes during each period are presented below: Options Wtd. Avg. Fair Value Outstanding, March 31, 2014 3,074,850 1.47 Granted 133,900 4.03 Exercised (596,635) 0.55 Forfeited (498,615) 1.39 Expired - - Outstanding, March 31, 2015 2,113,500 1.90 Exercisable, March 31, 2015 907,000 2.27 Options Wtd. Avg. Fair Value Outstanding, March 31, 2015 2,113,500 1.90 Granted - - Exercised - - Forfeited (100,000) 1.52 Expired - - Outstanding, June 30, 2015 2,013,500 1.91 Exercisable, June 30, 2015 1,137,600 2.14 The following table summarizes information about the Companys outstanding stock options as of March 31, 2015: Strike Price Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price $ 0.30 110,000 1.88 40,000 0.30 $ 1.37 1,118,000 4.08 284,000 1.37 $ 1.75 475,000 2.93 283,000 1.75 $ 3.85 200,000 4.61 200,000 3.85 $ 3.95 100,000 4.86 100,000 3.95 $ 4.03 110,500 5.09 - 4.03 2,113,500 4.02 907,000 2.27 The following table summarizes information about the Companys outstanding stock options as of June 30, 2015: Strike Price Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price $ 0.30 110,000 1.63 40,000 0.30 $ 1.37 1,058,000 3.83 492,500 1.37 $ 1.75 435,000 2.68 283,000 1.75 $ 3.85 200,000 4.36 200,000 3.85 $ 3.95 100,000 4.61 100,000 3.95 $ 4.03 110,500 4.84 22,100 4.03 2,013,500 4.02 1,137,600 2.14 The following table summarizes information about non-vested options as of the three months ended June 30, 2015: Non-vested options Options Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 1,206,500 1.58 Stock options issued during the period - - Stock options canceled (100,000) 1.52 Vested during the period ended June 30, 2015 (230,600) 1.62 Non-vested at June 30, 2015 875,900 1.61 The following table summarizes information about non-vested restricted stock awards as of the three months ended June 30, 2015: Non-vested restricted stock Restricted Stock Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 171,666 4.03 Restricted stock issued during the period - - Restricted Stock canceled (20,000) 4.03 Vested & settled during the period ended June 30, 2015 (34,332) 4.03 Non-vested at June 30, 2015 117,334 4.03 Non-vested restricted stock units Restricted Stock Units Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 106,907 3.94 Restricted stock units issued during the period - - Restricted stock units canceled (10,333) 3.98 Vested & settled during the period ended June 30, 2015 (8,334) 3.92 Non-vested at June 30, 2015 88,240 3.94 |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 3 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 8 - Subsequent Events | NOTE 8 SUBSEQUENT EVENTS In accordance with ASC 855-10 Company management reviewed all material events through the date of issuance and there are no material subsequent events to report. |
Note 2 - Significant Accounti14
Note 2 - Significant Accounting Policies: Organization and Line of Business (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Organization and Line of Business | Organization and Line of Business The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry in the Canadian and US markets. |
Note 2 - Significant Accounti15
Note 2 - Significant Accounting Policies: Reclassification (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Reclassification | Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. |
Note 2 - Significant Accounti16
Note 2 - Significant Accounting Policies: Use of Estimates (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2 - Significant Accounti17
Note 2 - Significant Accounting Policies: Principles of Consolidation (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. |
Note 2 - Significant Accounti18
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings (Loss) Per Share The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings (loss) per share includes common stock equivalents outstanding at the balance sheet date. The Company had 69,190 and 657,359 stock options included in the fully diluted earnings (loss) per share as of June 30, 2015 and 2014, respectively. The common stock equivalents outstanding at June 30, 2015 have been excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive. Basic and diluted earnings (loss) per share for the three months ended June 30, 2015 and 2014 are as follows: For the Three Months Ended June 30, 2015 2014 Net income (loss) applicable to common shareholders $ (458,813) $ 2,220,706 Weighted average shares outstanding 53,214,594 47,922,059 Weighted average fully diluted shares outstanding 53,214,594 48,579,418 Basic earnings per share $ (0.01) $ 0.05 Fully diluted earnings per share $ (0.01) $ 0.05 |
Note 2 - Significant Accounti19
Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The Companys functional currency is the Canadian Dollar (CAD). The financial statements of the Company were translated to U.S. Dollars (USD) using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.809300 and 0.788786 were used to convert the Companys June 30, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.811950 and 0.917096 for the three months ended June 30, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Operations and Comprehensive Income, and the Consolidated Statements of Stockholders Equity. |
Note 2 - Significant Accounti20
Note 2 - Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. |
Note 2 - Significant Accounti21
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of June 30, 2015 and March 31, 2015, cash and cash equivalents totaled $17,186,238 and $14,144,796, respectively. As of June 30, 2015 $250,000 USD was guaranteed by the FDIC and $3,413,596 USD was guaranteed by the Province of Alberta, Canada. |
Note 2 - Significant Accounti22
Note 2 - Significant Accounting Policies: Accounts Receivable (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Accounts Receivable | Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $134,635 and $108,641 as of June 30, 2015 and March 31, 2015, respectively. |
Note 2 - Significant Accounti23
Note 2 - Significant Accounting Policies: Inventories (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Inventories | Inventories In accordance with ARB No. 43 Inventory Pricing, the Companys inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. Inventory consists of finished goods held for sale. As of June 30, 2015 and March 31, 2015, inventory consisted of the following: June 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 11,256,637 11,951,108 Work in process - - Subtotal 11,256,637 11,951,108 Reserve for Obsolescence (185,601) (184,573) Total $ 11,071,036 $ 11,766,535 |
Note 2 - Significant Accounti24
Note 2 - Significant Accounting Policies: Marketable Securities (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Marketable Securities | Marketable Securities The Company reports its investments in marketable securities under the provisions of ASC 320, Investments in Debt and Equity Securities. The Company evaluates securities for other-than-temporary impairment at least on a yearly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to the length of time and amount of the loss relative to cost, the nature and financial condition of the issuer and the ability and intent of the Company to hold the investment for a time sufficient to allow any anticipated recovery in fair value. Pursuant to ASC 320-5, other than temporary impairment losses are recorded as impairment expense in the statement of operations during the period in which the impairment is determined. |
Note 2 - Significant Accounti25
Note 2 - Significant Accounting Policies: Long-lived Assets (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Long-lived Assets | Long-Lived Assets We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the assets carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. Beginning in fiscal year 2016, we revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type that has a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended June 30, 2015. |
Note 2 - Significant Accounti26
Note 2 - Significant Accounting Policies: Other Intangible Assets and Goodwill (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Other Intangible Assets and Goodwill | Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, IntangiblesGoodwill and Other. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Companys acquisition of VIM assets has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other (ASC 350). Goodwill is tested for impairment at the reporting unit level. The Companys three operating segments comprise the reporting unit for goodwill impairment testing purposes. |
Note 2 - Significant Accounti27
Note 2 - Significant Accounting Policies: Revenue Recognition (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. |
Note 2 - Significant Accounti28
Note 2 - Significant Accounting Policies: Cost of Sales (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Cost of Sales | Cost of Sales The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. |
Note 2 - Significant Accounti29
Note 2 - Significant Accounting Policies: Advertising Costs (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Advertising Costs | Advertising Costs The Company classifies expenses for advertising as general and administrative expenses. The Company incurred advertising costs of $20,240 and $15,497 during the three months ended June 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti30
Note 2 - Significant Accounting Policies: Stock-based Compensation (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718, Share-Based Payment. which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. |
Note 2 - Significant Accounti31
Note 2 - Significant Accounting Policies: Income Taxes (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Income Taxes | Income Taxes The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax expense (benefit) are (-25%) and 35% for the three months ended June 30, 2015 and 2014, respectively. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. |
Note 2 - Significant Accounti32
Note 2 - Significant Accounting Policies: Research and Development (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Research and Development | Research and Development All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $304,489 and $271,227 for the three months ended June 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti33
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $85,326 and $119,193 during the three months ended June 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti34
Note 2 - Significant Accounting Policies: Comprehensive Income (Loss) (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses and unrealized holding gains and losses on available for sale securities. |
Note 2 - Significant Accounti35
Note 2 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
Note 2 - Significant Accounti36
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Policies | |
Property and Equipment Useful Lives | Property and Equipment Useful Lives Property and equipment is stated at cost. Depreciation on property and equipment is computed using the diminishing balance method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows: Assets Estimated useful life Furniture and fixtures 7 Years Machinery and equipment 7 Years Buildings 30 Years Vehicles 5 Years Computers 3 Years Software 2 Years |
Note 2 - Significant Accounti37
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended June 30, 2015 2014 Net income (loss) applicable to common shareholders $ (458,813) $ 2,220,706 Weighted average shares outstanding 53,214,594 47,922,059 Weighted average fully diluted shares outstanding 53,214,594 48,579,418 Basic earnings per share $ (0.01) $ 0.05 Fully diluted earnings per share $ (0.01) $ 0.05 |
Note 2 - Significant Accounti38
Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Inventory, Current | June 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 11,256,637 11,951,108 Work in process - - Subtotal 11,256,637 11,951,108 Reserve for Obsolescence (185,601) (184,573) Total $ 11,071,036 $ 11,766,535 |
Note 2 - Significant Accounti39
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule Of Estimated Useful Lives Of Assets | Assets Estimated useful life Furniture and fixtures 7 Years Machinery and equipment 7 Years Buildings 30 Years Vehicles 5 Years Computers 3 Years Software 2 Years |
Note 3 - Property and Equipme40
Note 3 - Property and Equipment: Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2015 March 31, 2015 Office furniture and equipment $ 948,871 $ 937,274 Service and shop equipment 582,662 573,233 Vehicles 2,934,503 3,040,439 Land and buildings 6,782,014 6,746,597 Total property and equipment 11,248,050 11,297,543 Accumulated depreciation (2,155,170) (2,021,578) Net property and equipment $ 9,092,880 $ 9,275,965 |
Note 5 - Intangible Assets_ Sch
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | June 30, 2015 March 31, 2015 Distribution agreements $ 42,720 $ 41,638 Less: Accumulated amortization (42,720) (27,757) Distribution agreements, net - 13,881 Patents, trademarks, copyrights, and domain names 595,227 580,138 Less: Accumulated amortization (17,361) - Patents, trademarks, copyrights, and domain names, net 577,866 580,138 Total definite-lived intangible assets, net $ 577,866 $ 594,019 |
Note 5 - Intangible Assets_ S42
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Indefinite-Lived Intangible Assets | June 30, 2015 March 31, 2015 Goodwill $ 997,701 $ 997,701 |
Note 5 - Intangible Assets_ Fin
Note 5 - Intangible Assets: Finite-lived Intangible Assets Amortization Expense (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Finite-lived Intangible Assets Amortization Expense | Year Ending March 31 2016 $ 27,581 2017 29,007 2018 29,007 2019 29,007 2020 29,007 |
Note 6 - Segment Information_ S
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | For the Three Months Ended June 30, Sales 2015 2014 Canada $ 1,401,544 $ 4,592,982 United States 5,475,699 8,551,852 Total $ 6,877,243 $ 13,144,834 June 30, March 31, Long-lived assets 2015 2015 Canada $ 1,236,344 $ 1,231,434 United States 7,856,536 8,044,531 Total $ 9,092,880 $ 9,275,965 |
Note 7 - Stock Based Compensa45
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation, Activity (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Activity | Options Wtd. Avg. Fair Value Outstanding, March 31, 2014 3,074,850 1.47 Granted 133,900 4.03 Exercised (596,635) 0.55 Forfeited (498,615) 1.39 Expired - - Outstanding, March 31, 2015 2,113,500 1.90 Exercisable, March 31, 2015 907,000 2.27 Options Wtd. Avg. Fair Value Outstanding, March 31, 2015 2,113,500 1.90 Granted - - Exercised - - Forfeited (100,000) 1.52 Expired - - Outstanding, June 30, 2015 2,013,500 1.91 Exercisable, June 30, 2015 1,137,600 2.14 |
Note 7 - Stock Based Compensa46
Note 7 - Stock Based Compensation: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable | The following table summarizes information about the Companys outstanding stock options as of March 31, 2015: Strike Price Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price $ 0.30 110,000 1.88 40,000 0.30 $ 1.37 1,118,000 4.08 284,000 1.37 $ 1.75 475,000 2.93 283,000 1.75 $ 3.85 200,000 4.61 200,000 3.85 $ 3.95 100,000 4.86 100,000 3.95 $ 4.03 110,500 5.09 - 4.03 2,113,500 4.02 907,000 2.27 The following table summarizes information about the Companys outstanding stock options as of June 30, 2015: Strike Price Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price $ 0.30 110,000 1.63 40,000 0.30 $ 1.37 1,058,000 3.83 492,500 1.37 $ 1.75 435,000 2.68 283,000 1.75 $ 3.85 200,000 4.36 200,000 3.85 $ 3.95 100,000 4.61 100,000 3.95 $ 4.03 110,500 4.84 22,100 4.03 2,013,500 4.02 1,137,600 2.14 |
Note 7 - Stock Based Compensa47
Note 7 - Stock Based Compensation: Schedule of Nonvested Share Activity (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Nonvested Share Activity | Non-vested options Options Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 1,206,500 1.58 Stock options issued during the period - - Stock options canceled (100,000) 1.52 Vested during the period ended June 30, 2015 (230,600) 1.62 Non-vested at June 30, 2015 875,900 1.61 |
Note 7 - Stock Based Compensa48
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest | Non-vested restricted stock Restricted Stock Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 171,666 4.03 Restricted stock issued during the period - - Restricted Stock canceled (20,000) 4.03 Vested & settled during the period ended June 30, 2015 (34,332) 4.03 Non-vested at June 30, 2015 117,334 4.03 Non-vested restricted stock units Restricted Stock Units Wtd. Avg. Grant Date Fair Value Non-vested at March 31, 2015 106,907 3.94 Restricted stock units issued during the period - - Restricted stock units canceled (10,333) 3.98 Vested & settled during the period ended June 30, 2015 (8,334) 3.92 Non-vested at June 30, 2015 88,240 3.94 |
Note 2 - Significant Accounti49
Note 2 - Significant Accounting Policies: Organization and Line of Business (Details) | 3 Months Ended |
Jun. 30, 2015 | |
Details | |
Entity Incorporation, Date of Incorporation | May 5, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 2 - Significant Accounti50
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Details) - shares | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Fully Diluted Earnings (Loss) Per Share | 69,190 | 657,359 |
Note 2 - Significant Accounti51
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Details | |||
Net income applicable to common shareholders | $ (458,813) | $ 2,220,706 | |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,214,594 | 47,922,059 | 47,922,059 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,214,594 | 48,579,418 | 48,579,418 |
BASIC EARNINGS (LOSS) PER SHARE | $ (0.01) | $ 0.05 | $ 0.05 |
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ (0.01) | $ 0.05 | $ 0.05 |
Note 2 - Significant Accounti52
Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Details) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Foreign Currency Exchange Rate, Translation | 0.809300 | 0.788786 |
Weighted Average Exchange Rate | 0.811950 | 0.917096 |
Note 2 - Significant Accounti53
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Details | ||||
Cash and cash equivalents | $ 17,186,238 | $ 14,144,796 | $ 4,570,088 | $ 4,456,674 |
Cash, FDIC Insured Amount | 250,000 | |||
Cash, Guaranteed by the Province of Alberta, Canada | $ 3,413,596 |
Note 2 - Significant Accounti54
Note 2 - Significant Accounting Policies: Accounts Receivable (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 134,635 | $ 108,641 |
Note 2 - Significant Accounti55
Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Details | ||
Inventory, Finished Goods, Gross | $ 11,256,637 | $ 11,951,108 |
Subtotal | 11,256,637 | 11,951,108 |
Reserves for obsolescence | (185,601) | (184,573) |
Inventories | $ 11,071,036 | $ 11,766,535 |
Note 2 - Significant Accounti56
Note 2 - Significant Accounting Policies: Advertising Costs (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Advertising Expense | $ 20,240 | $ 15,497 |
Note 2 - Significant Accounti57
Note 2 - Significant Accounting Policies: Research and Development (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Details | |||
Research and development | $ 304,489 | $ 271,227 | $ 271,227 |
Note 2 - Significant Accounti58
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Shipping, Handling and Transportation Costs | $ 85,326 | $ 119,193 |
Note 2 - Significant Accounti59
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Details) | 3 Months Ended |
Jun. 30, 2015 | |
Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment | |
Property, Plant and Equipment, Useful Life | 7 years |
Building | |
Property, Plant and Equipment, Useful Life | 30 years |
Vehicles | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs | |
Property, Plant and Equipment, Useful Life | 2 years |
Note 3 - Property and Equipme60
Note 3 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Details | ||
Office furniture and equipment | $ 948,871 | $ 937,274 |
Service and shop equipment | 582,662 | 573,233 |
Vehicles | 2,934,503 | 3,040,439 |
Land and buildings | 6,782,014 | 6,746,597 |
Total property and equipment | 11,248,050 | 11,297,543 |
Accumulated depreciation | (2,155,170) | (2,021,578) |
PROPERTY AND EQUIPMENT, net | $ 9,092,880 | $ 9,275,965 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Preferred stock par value | $ 0.001 | $ 0.001 |
Common stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,226,720 | 53,199,136 |
Common stock shares outstanding | 53,226,720 | 53,199,136 |
Stock issuance | $ 16,424,688 | |
Stock Issued During Period Shares Restricted Stock Awards Settled | 27,699 | |
Stock Issued During Period Value Restricted Stock Awards Settled | $ 43,373 | |
Common stock | ||
Stock issuance - shares | 4,500,000 |
Note 5 - Intangible Assets_ S62
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Details | ||
Distribution Agreements, Gross | $ 42,720 | $ 41,638 |
Accumulated Amortization of Other Deferred Costs | (42,720) | (27,757) |
Distribution Agreements, Net | 13,881 | |
Other Finite-Lived Intangible Assets, Gross | 595,227 | 580,138 |
Finite-Lived Intangible Assets, Accumulated Amortization | (17,361) | |
Other Finite Lived Intangible Assets, Net | 577,866 | 580,138 |
Intangible assets, net | $ 577,866 | $ 594,019 |
Note 5 - Intangible Assets_ S63
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Details | ||
Goodwill | $ 997,701 | $ 997,701 |
Note 5 - Intangible Assets_ F64
Note 5 - Intangible Assets: Finite-lived Intangible Assets Amortization Expense (Details) | Jun. 30, 2015USD ($) |
Details | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 27,581 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 29,007 |
Note 6 - Segment Information_65
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Total Revenues | $ 6,877,243 | $ 13,144,834 | $ 13,144,834 |
PROPERTY AND EQUIPMENT, net | 9,092,880 | 9,275,965 | |
CANADA | |||
Total Revenues | 1,401,544 | 4,592,982 | |
PROPERTY AND EQUIPMENT, net | 1,236,344 | 1,231,434 | |
UNITED STATES | |||
Total Revenues | 5,475,699 | 8,551,852 | |
PROPERTY AND EQUIPMENT, net | $ 7,856,536 | $ 8,044,531 |
Note 7 - Stock Based Compensa66
Note 7 - Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Details | |||
Stock options issued for services | $ 187,406 | $ 351,364 | $ 351,364 |
Compensation Expense Arising From Equity Awards Issued | 187,406 | ||
Remaining Compensation Expense Arising From Equity Awards Issued | $ 2,070,403 |
Note 7 - Stock Based Compensa67
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation, Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,013,500 | 2,113,500 | 3,074,850 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Grant Date Fair Value | $ 1.91 | $ 1.90 | $ 1.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 133,900 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.03 | ||
Exercised options - shares | (596,635) | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercised In Period Weighted Average Grant Date Fair Value | $ 0.55 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (100,000) | (498,615) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 1.52 | $ 1.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,137,600 | 907,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Grant Date Fair Value | $ 2.14 | $ 2.27 |
Note 7 - Stock Based Compensa68
Note 7 - Stock Based Compensation: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 2,013,500 | 2,113,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 7 days | 4 years 7 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1,137,600 | 907,000 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 2.14 | $ 2.27 |
Exercisable Options 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 40,000 | 40,000 |
Exercisable Options 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 492,500 | 284,000 |
Exercisable Options 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 283,000 | 283,000 |
Exercisable Options 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 200,000 | 200,000 |
Exercisable Options 5 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 100,000 | 100,000 |
Exercisable Options 6 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 22,100 | |
Outstanding Options 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 110,000 | 110,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 7 months 17 days | 1 year 10 months 17 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 0.30 | $ 0.30 |
Outstanding Options 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,058,000 | 1,118,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 9 months 29 days | 4 years 29 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.37 | $ 1.37 |
Outstanding Options 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 435,000 | 475,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 8 months 5 days | 2 years 11 months 5 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.75 | $ 1.75 |
Outstanding Options 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 200,000 | 200,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 4 months 10 days | 4 years 7 months 10 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 3.85 | $ 3.85 |
Outstanding Options 5 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 100,000 | 100,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 7 months 10 days | 4 years 10 months 10 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 3.95 | $ 3.95 |
Outstanding Options 6 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 110,500 | 110,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 10 months 2 days | 5 years 1 month 2 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 4.03 | $ 4.03 |
Note 7 - Stock Based Compensa69
Note 7 - Stock Based Compensation: Schedule of Nonvested Share Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 875,900 | 1,206,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 1.61 | $ 1.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 133,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (100,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 1.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (230,600) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 1.62 |
Note 7 - Stock Based Compensa70
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Nonvested Restricted Stock options | 117,334 | 171,666 |
Nonvested Restricted Stock options, Weighted average grant date fair value | $ 4.03 | $ 4.03 |
Nonvested Restricted Stock options canceled during the period | (20,000) | |
Nonvested Restricted Stock options canceled during the period, Weighted average grant date fair value | $ 4.03 | |
Vested & Settled Restricted Stock options during the period | (34,332) | |
Vested & Settled Restricted Stock options during the period, Weighted average grant date fair value | $ 4.03 | |
Nonvested Restricted Stock units | 88,240 | 106,907 |
Nonvested Restricted Stock units, Weighted average grant date fair value | $ 3.94 | $ 3.94 |
Restricted Stock units canceled during the period | (10,333) | |
Restricted Stock units canceled during the period, Weighted average grant date fair value | $ 3.98 | |
Vested & Settled Restricted Stock units | (8,334) | |
Vested & Settled Restricted Stock units, Weighted average grant date fair value | $ 3.92 |