Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Sep. 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 | Q2 | |
Entity Common Stock, Shares Outstanding | 53,255,275 | |
Entity Incorporation, Date of Incorporation | May 5, 2003 | |
Entity Incorporation, State Country Name | Nevada | |
Trading Symbol | pfie |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 18,954,290 | $ 14,144,796 |
Accounts receivable, net | 6,706,532 | 9,462,378 |
Inventories | 9,954,358 | 11,766,535 |
Income tax receivable | 59,886 | |
Prepaid expenses & other current assets | 395,385 | 112,741 |
Total Current Assets | 36,070,451 | 35,486,450 |
LONG-TERM ASSETS | ||
Deferred tax asset | 575,189 | 501,921 |
PROPERTY AND EQUIPMENT, net | 8,697,175 | 9,275,965 |
OTHER ASSETS | ||
Goodwill | 997,701 | 997,701 |
Intangible assets, net of accumulated amortization | 525,527 | 594,019 |
Total Other Assets | 1,523,228 | 1,591,720 |
TOTAL ASSETS | 46,866,043 | 46,856,056 |
CURRENT LIABILITIES | ||
Accounts payable | 909,115 | 1,040,530 |
Accrued liabilities | 819,775 | 332,229 |
Income taxes payable | 148,426 | 347,486 |
Total current liabilities | 1,877,316 | 1,720,245 |
LONG-TERM LIABILITIES | ||
Deferred income tax liability | 629,232 | 631,353 |
TOTAL LIABILITIES | $ 2,506,548 | $ 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: 53,255,275 53,199,136 shares issued and outstanding, respectively | $ 53,255 | $ 53,199 |
Additional paid-in capital | 25,811,085 | 25,525,050 |
Accumulated other comprehensive income (loss) | (2,640,128) | (1,888,981) |
Retained earnings | 21,135,283 | 20,815,188 |
Total Stockholders' Equity | 44,359,495 | 44,504,457 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 46,866,043 | $ 46,856,056 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Sep. 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 | 53,255,275 | 53,199,136 |
Common stock shares outstanding | 53,255,275 | 53,199,136 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES | ||||
Sales of goods, net | $ 7,291,846 | $ 14,628,718 | $ 13,503,816 | $ 26,945,230 |
Sales of services, net | 805,448 | 1,092,214 | 1,470,721 | 1,920,536 |
Total Revenues | 8,097,294 | 15,720,932 | 14,974,537 | 28,865,766 |
COST OF SALES | ||||
Cost of goods sold-product | 3,445,188 | 6,469,992 | 6,413,106 | 11,537,619 |
Cost of goods sold-services | 623,992 | 701,497 | 1,219,530 | 1,341,604 |
Total Cost of Goods Sold | 4,069,180 | 7,171,489 | 7,632,636 | 12,879,223 |
GROSS PROFIT | 4,028,114 | 8,549,443 | 7,341,901 | 15,986,543 |
OPERATING EXPENSES | ||||
General and administrative expenses | 1,660,092 | 2,866,401 | 3,638,576 | 5,275,470 |
Research and development | 295,146 | 538,793 | 599,635 | 810,020 |
Payroll expenses | 1,259,770 | 1,767,730 | 2,722,425 | 3,033,429 |
Depreciation and amortization expense | 137,999 | 122,928 | 245,454 | 247,643 |
Total Operating Expenses | 3,353,007 | 5,295,852 | 7,206,090 | 9,366,562 |
INCOME FROM OPERATIONS | 675,107 | 3,253,591 | 135,811 | 6,619,981 |
Interest expense | ||||
Gain on disposal of fixed assets | 754 | 19,391 | ||
Other (expense) income | 352,310 | (257) | 243,320 | 2,864 |
Interest income | 5,517 | 7,543 | 26,640 | 7,780 |
Total Other Income (Expense) | 358,581 | 7,286 | 289,351 | 10,644 |
NET INCOME BEFORE INCOME TAXES | 1,033,688 | 3,260,877 | 425,162 | 6,630,625 |
INCOME TAX EXPENSE | 254,781 | 1,182,676 | 105,067 | 2,331,718 |
NET INCOME | 778,907 | 2,078,201 | 320,095 | 4,298,907 |
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) | (1,084,519) | (455,114) | (751,147) | (158,678) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (305,612) | $ 1,623,087 | $ (431,052) | $ 4,140,229 |
BASIC EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.09 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.08 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,236,979 | 52,482,823 | 53,230,892 | 50,222,367 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,344,291 | 53,126,287 | 53,338,204 | 50,865,831 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Income | $ 320,095 | $ 4,298,907 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 476,548 | 247,643 |
Gain on disposal of fixed assets | (19,391) | |
Common stock issued for services | 168,004 | |
Bad debt expense | 86,494 | |
Stock options issued for services | 325,334 | 712,820 |
Unrealized foreign exchange gain | (128,429) | |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | 2,567,419 | (5,961,481) |
Changes in income tax receivable | (59,886) | |
Changes in inventories | 1,600,797 | (1,634,627) |
Changes in prepaid expenses | (262,547) | (200,631) |
Changes in deferred tax asset | (73,268) | 79,208 |
Changes in accounts payable and accrued liabilities | 373,484 | 2,329,740 |
Changes in income taxes payable | (193,908) | 1,448,850 |
Net Cash Provided by Operating Activities | 5,141,171 | 1,360,004 |
INVESTING ACTIVITIES | ||
Proceeds from disposal of equipment | 119,935 | |
Purchase of fixed assets | (28,572) | (3,720,259) |
Net Cash Provided by (Used in) Investing Activities | 91,363 | (3,720,259) |
FINANCING ACTIVITIES | ||
Proceeds from stock issued for cash | 18,000,000 | |
Stock offering costs | (1,529,057) | |
Value of equity awards surrendered by employees for tax liability | (39,243) | |
Stock issued in exercise of stock options | 134,711 | |
Net Cash Provided by (Used in) Financing Activities | (39,243) | 16,605,654 |
Effect of exchange rate changes on cash | (383,797) | (30,249) |
NET INCREASE IN CASH | 4,809,494 | 14,215,150 |
CASH AT BEGINNING OF PERIOD | 14,144,796 | 4,456,674 |
CASH AT END OF PERIOD | 18,954,290 | $ 18,671,824 |
CASH PAID FOR: | ||
Income taxes | $ 292,082 |
Note 1 - Condensed Financial St
Note 1 - Condensed Financial Statements | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 1 - Condensed Financial Statements | NOTE 1 CONDENSED CONSOLIDATED 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 September 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 September 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 | 6 Months Ended |
Sep. 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). 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 Canadian and US markets. 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 subsidiaries. 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 107,312 and 643,464 stock options included in the fully diluted earnings (loss) per share as of September 30, 2015 and 2014, respectively. For the Three Months Ended September 30, For the Six Months Ended September 30, 2015 2014 2015 2014 Net income (loss) applicable to common shareholders $ 778,907 $ 2,078,201 $ 320,095 $ 4,298,907 Weighted average shares outstanding 53,236,979 52,482,823 53,230,892 50,222,367 Weighted average fully diluted shares outstanding 53,344,291 53,126,287 53,338,204 50,865,831 Basic earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.09 Fully diluted earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.08 Foreign Currency and Comprehensive Income The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar (USD) and the Canadian Dollar (CAD), respectively. The Companys financial statements were translated to USD using period-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 0.745600 and 0.788786 were used to convert the Companys September 30, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.789200 and 0.918000 for the six months ended September 30, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presumed 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. The company recorded aggregate transaction gains of $245,034 and $0 during the six month periods ended September 30, 2015 and 2014, respectively. 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 September 30, 2015 and March 31, 2015, cash and cash equivalents totaled $18,954,290 and $14,144,796, respectively. As of September 30, 2015 $250,000 USD was guaranteed by the FDIC and $74,560 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 $194,409 and $108,641 as of September 30, 2015 and March 31, 2015, respectively. Inventories In accordance with Accounting Research Bulletin No. 43 Inventory Pricing, September 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 10,205,991 11,951,108 Work in process - - Subtotal 10,205,991 11,951,108 Reserve for Obsolence (251,633) (184,573) Total $ 9,954,358 $ 11,766,535 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 September 30, 2015. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other 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 exceeds their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) ASC 350, IntangiblesGoodwill and Other 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 advertising expenses as general and administrative. The Company incurred advertising costs of $47,956 and $41,156 in the six months ended September 30, 2015 and 2014, respectively. Stock-Based Compensation The Company follows the provisions of ASC 718, Share-Based Payment 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 six months ended September 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 taxable income for each full fiscal year. Research and Development All costs associated with research and development (R&D) are expensed when incurred. Costs incurred for R&D were $599,635 and $810,020 in six months ended September 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 $143,979 and $271,832 during the six months ended September 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 straight-line 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 | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 3 - Property and Equipment | NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following as of September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Office furniture and equipment $ 941,298 $ 937,274 Service and shop equipment 561,131 573,233 Vehicles 2,808,578 3,040,439 Land and buildings 6,690,290 6,746,597 Total property and equipment 11,001,297 11,297,543 Accumulated depreciation (2,304,122) (2,021,578) Net property and equipment $ 8,697,175 $ 9,275,965 |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 6 Months Ended |
Sep. 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 September 30, 2015 and March 31, 2015, the Company had 53,255,275 and 53,199,136 shares of common stock issued and outstanding, respectively. On June 2, 2014, the Company filed a registration statement on Form S-1 to register shares of common stock with the Securities and Exchange Commission to be offered to the public by the Company 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. The net proceeds from the sale of 4,500,000 shares of common stock pursuant to the registration statement was approximately $16,430,000, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company did not receive any proceeds from the sale of shares of common stock by the selling stockholders. The Company has used and plans to continue using the proceeds from the offering to help fund Company growth initiatives. During the period ended September 30, 2015, the Company issued 56,254 shares of common stock valued at $73,026 for the settlement of restricted stock awards. |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 6 Months Ended |
Sep. 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 the 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 September 30, 2015 and March 31, 2015: Definite-lived intangible assets September 30, 2015 March 31, 2015 Distribution agreements $ 39,957 $ 41,638 Less: Accumulated amortization (39,957) (27,757) Distribution agreements, net - 13,881 Patents, trademarks, copyrights, and domain names 548,377 580,138 Less: Accumulated amortization (22,850) - Patents, trademarks, copyrights, and domain names, net 525,527 580,138 Total definite-lived intangible assets, net $ 525,527 $ 594,019 Indefinite-lived intangible assets September 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 March 31, 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 | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 6 - Segment Information | NOTE 6 SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these areas is as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, Sales 2015 2014 2015 2014 Canada $ 1,936,709 $ 4,940,082 $ 3,338,253 $ 9,533,064 United States 6,160,585 10,780,850 11,636,284 19,332,702 Total $ 8,097,294 $ 15,720,932 $ 14,974,537 $ 28,865,766 Long-lived assets September 30, 2015 March 31, 2015 Canada $ 1,069,900 $ 1,231,434 United States 7,627,275 8,044,531 Total $ 8,697,175 $ 9,275,965 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 7 - Stock Based Compensation | NOTE 7 STOCK BASED COMPENSATION On July 23, 2015 the Company issued a total of 208,334 shares of restricted stock units to key employees. The units vest 1/5 each year for 5 years, with the first vesting occurring on the date of grant. The Company estimates the fair value of the units at their intrinsic value at time of granting. The Company recognized $325,334 and $880,824 in expense for the fair value of previously granted stock based compensation vested during the six months ended September 30, 2015, and 2014, respectively. Stock compensation expense is recognized on a pro-rata basis over the vesting period of the equity awards. Subsequent to September 30, 2015, $1,568,668 of compensation expense on equity awards remains to be recognized in future periods. A summary of the status of the Companys stock option plans as of September 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 (367,600) 1.50 Expired - - Outstanding, September 30, 2015 1,745,900 $ 1.98 Exercisable, September 30, 2015 1,037,600 $ 2.19 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 September 30, 2015: Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price Strike Price $ 0.30 110,000 1.38 40,000 $ 0.30 $ 1.37 862,000 3.58 452,500 1.37 $ 1.75 365,000 2.43 223,000 1.75 $ 3.85 200,000 4.11 200,000 3.85 $ 3.95 100,000 4.36 100,000 3.95 $ 4.03 108,900 4.59 22,100 4.03 1,745,900 3.77 1,037,600 $ 2.19 The following table summarizes information about non-vested options as of the six months ended September 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 (367,600) 1.50 Vested during the period ended September 30, 2015 (230,600) 1.62 Cancellation of previously vested stock options 100,000 1.60 Non-vested at September 30, 2015 708,300 $ 1.67 The following table summarizes information about non-vested restricted stock awards as of the six months ended September 30, 2015: Non-vested restricted stock Options 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 September 30, 2015 (34,332) 4.03 Non-vested at September 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 208,334 1.04 Restricted stock units canceled (76,999) 1.68 Vested, not settled during the period ended September 30, 2015 (39,908) 4.21 Vested & settled during the period ended September 30, 2015 (52,001) 3.92 Non-vested at September 30, 2015 146,333 $ 1.75 |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 6 Months Ended |
Sep. 30, 2015 | |
Notes | |
Note 8 - Subsequent Events | NOTE 8 SUBSEQUENT EVENTS In accordance with ASC 855 Subsequent Events |
Note 2 - Significant Accounti14
Note 2 - Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Sep. 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 Accounti15
Note 2 - Significant Accounting Policies: Principles of Consolidation (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Note 2 - Significant Accounti16
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 6 Months Ended |
Sep. 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 107,312 and 643,464 stock options included in the fully diluted earnings (loss) per share as of September 30, 2015 and 2014, respectively. For the Three Months Ended September 30, For the Six Months Ended September 30, 2015 2014 2015 2014 Net income (loss) applicable to common shareholders $ 778,907 $ 2,078,201 $ 320,095 $ 4,298,907 Weighted average shares outstanding 53,236,979 52,482,823 53,230,892 50,222,367 Weighted average fully diluted shares outstanding 53,344,291 53,126,287 53,338,204 50,865,831 Basic earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.09 Fully diluted earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.08 |
Note 2 - Significant Accounti17
Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar (USD) and the Canadian Dollar (CAD), respectively. The Companys financial statements were translated to USD using period-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 0.745600 and 0.788786 were used to convert the Companys September 30, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.789200 and 0.918000 for the six months ended September 30, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presumed 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. The company recorded aggregate transaction gains of $245,034 and $0 during the six month periods ended September 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti18
Note 2 - Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 6 Months Ended |
Sep. 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 Accounti19
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Sep. 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 September 30, 2015 and March 31, 2015, cash and cash equivalents totaled $18,954,290 and $14,144,796, respectively. As of September 30, 2015 $250,000 USD was guaranteed by the FDIC and $74,560 USD was guaranteed by the Province of Alberta, Canada. |
Note 2 - Significant Accounti20
Note 2 - Significant Accounting Policies: Accounts Receivable (Policies) | 6 Months Ended |
Sep. 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 $194,409 and $108,641 as of September 30, 2015 and March 31, 2015, respectively. |
Note 2 - Significant Accounti21
Note 2 - Significant Accounting Policies: Inventories (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Inventories | Inventories In accordance with Accounting Research Bulletin No. 43 Inventory Pricing, September 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 10,205,991 11,951,108 Work in process - - Subtotal 10,205,991 11,951,108 Reserve for Obsolence (251,633) (184,573) Total $ 9,954,358 $ 11,766,535 |
Note 2 - Significant Accounti22
Note 2 - Significant Accounting Policies: Long-lived Assets (Policies) | 6 Months Ended |
Sep. 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 September 30, 2015. |
Note 2 - Significant Accounti23
Note 2 - Significant Accounting Policies: Other Intangible Assets and Goodwill (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Other Intangible Assets and Goodwill | Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other 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 exceeds their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) ASC 350, IntangiblesGoodwill and Other |
Note 2 - Significant Accounti24
Note 2 - Significant Accounting Policies: Revenue Recognition (Policies) | 6 Months Ended |
Sep. 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 Accounti25
Note 2 - Significant Accounting Policies: Cost of Sales (Policies) | 6 Months Ended |
Sep. 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 Accounti26
Note 2 - Significant Accounting Policies: Advertising Costs (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Advertising Costs | Advertising Costs The Company classifies advertising expenses as general and administrative. The Company incurred advertising costs of $47,956 and $41,156 in the six months ended September 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti27
Note 2 - Significant Accounting Policies: Stock-based Compensation (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718, Share-Based Payment |
Note 2 - Significant Accounti28
Note 2 - Significant Accounting Policies: Income Taxes (Policies) | 6 Months Ended |
Sep. 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 six months ended September 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 taxable income for each full fiscal year. |
Note 2 - Significant Accounti29
Note 2 - Significant Accounting Policies: Research and Development (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Policies | |
Research and Development | Research and Development All costs associated with research and development (R&D) are expensed when incurred. Costs incurred for R&D were $599,635 and $810,020 in six months ended September 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti30
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Policies) | 6 Months Ended |
Sep. 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 $143,979 and $271,832 during the six months ended September 30, 2015 and 2014, respectively. |
Note 2 - Significant Accounti31
Note 2 - Significant Accounting Policies: Comprehensive Income (Loss) (Policies) | 6 Months Ended |
Sep. 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 Accounti32
Note 2 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 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 Accounti33
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives (Policies) | 6 Months Ended |
Sep. 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 straight-line 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 Accounti34
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended September 30, For the Six Months Ended September 30, 2015 2014 2015 2014 Net income (loss) applicable to common shareholders $ 778,907 $ 2,078,201 $ 320,095 $ 4,298,907 Weighted average shares outstanding 53,236,979 52,482,823 53,230,892 50,222,367 Weighted average fully diluted shares outstanding 53,344,291 53,126,287 53,338,204 50,865,831 Basic earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.09 Fully diluted earnings per share $ 0.01 $ 0.04 $ 0.01 $ 0.08 |
Note 2 - Significant Accounti35
Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Inventory, Current | September 30, 2015 March 31, 2015 Raw materials $ - $ - Finished goods 10,205,991 11,951,108 Work in process - - Subtotal 10,205,991 11,951,108 Reserve for Obsolence (251,633) (184,573) Total $ 9,954,358 $ 11,766,535 |
Note 2 - Significant Accounti36
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Tables) | 6 Months Ended |
Sep. 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 Equipme37
Note 3 - Property and Equipment: Property, Plant and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | September 30, 2015 March 31, 2015 Office furniture and equipment $ 941,298 $ 937,274 Service and shop equipment 561,131 573,233 Vehicles 2,808,578 3,040,439 Land and buildings 6,690,290 6,746,597 Total property and equipment 11,001,297 11,297,543 Accumulated depreciation (2,304,122) (2,021,578) Net property and equipment $ 8,697,175 $ 9,275,965 |
Note 5 - Intangible Assets_ Sch
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | September 30, 2015 March 31, 2015 Distribution agreements $ 39,957 $ 41,638 Less: Accumulated amortization (39,957) (27,757) Distribution agreements, net - 13,881 Patents, trademarks, copyrights, and domain names 548,377 580,138 Less: Accumulated amortization (22,850) - Patents, trademarks, copyrights, and domain names, net 525,527 580,138 Total definite-lived intangible assets, net $ 525,527 $ 594,019 |
Note 5 - Intangible Assets_ S39
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Indefinite-Lived Intangible Assets | September 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) | 6 Months Ended |
Sep. 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) | 6 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | For the Three Months Ended September 30, For the Six Months Ended September 30, Sales 2015 2014 2015 2014 Canada $ 1,936,709 $ 4,940,082 $ 3,338,253 $ 9,533,064 United States 6,160,585 10,780,850 11,636,284 19,332,702 Total $ 8,097,294 $ 15,720,932 $ 14,974,537 $ 28,865,766 Long-lived assets September 30, 2015 March 31, 2015 Canada $ 1,069,900 $ 1,231,434 United States 7,627,275 8,044,531 Total $ 8,697,175 $ 9,275,965 |
Note 7 - Stock Based Compensa42
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation, Activity (Tables) | 6 Months Ended |
Sep. 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 (367,600) 1.50 Expired - - Outstanding, September 30, 2015 1,745,900 $ 1.98 Exercisable, September 30, 2015 1,037,600 $ 2.19 |
Note 7 - Stock Based Compensa43
Note 7 - Stock Based Compensation: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Tables) | 6 Months Ended |
Sep. 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 September 30, 2015: Outstanding Options (1 share/option) Average Remaining Life (Yrs) Exercisable Shares Weighted Average Exercise Price Strike Price $ 0.30 110,000 1.38 40,000 $ 0.30 $ 1.37 862,000 3.58 452,500 1.37 $ 1.75 365,000 2.43 223,000 1.75 $ 3.85 200,000 4.11 200,000 3.85 $ 3.95 100,000 4.36 100,000 3.95 $ 4.03 108,900 4.59 22,100 4.03 1,745,900 3.77 1,037,600 $ 2.19 |
Note 7 - Stock Based Compensa44
Note 7 - Stock Based Compensation: Schedule of Nonvested Share Activity (Tables) | 6 Months Ended |
Sep. 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 (367,600) 1.50 Vested during the period ended September 30, 2015 (230,600) 1.62 Cancellation of previously vested stock options 100,000 1.60 Non-vested at September 30, 2015 708,300 $ 1.67 |
Note 7 - Stock Based Compensa45
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) | 6 Months Ended |
Sep. 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 Options 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 September 30, 2015 (34,332) 4.03 Non-vested at September 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 208,334 1.04 Restricted stock units canceled (76,999) 1.68 Vested, not settled during the period ended September 30, 2015 (39,908) 4.21 Vested & settled during the period ended September 30, 2015 (52,001) 3.92 Non-vested at September 30, 2015 146,333 $ 1.75 |
Note 2 - Significant Accounti46
Note 2 - Significant Accounting Policies (Details) | 6 Months Ended |
Sep. 30, 2015 | |
Details | |
Entity Incorporation, Date of Incorporation | May 5, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 2 - Significant Accounti47
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Details) - shares | Sep. 30, 2015 | Sep. 30, 2014 |
Details | ||
Fully Diluted Earnings (Loss) Per Share | 107,312 | 643,464 |
Note 2 - Significant Accounti48
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Details | ||||
Net income applicable to common shareholders | $ 778,907 | $ 2,078,201 | $ 320,095 | $ 4,298,907 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,236,979 | 52,482,823 | 53,230,892 | 50,222,367 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,344,291 | 53,126,287 | 53,338,204 | 50,865,831 |
BASIC EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.09 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.08 |
Note 2 - Significant Accounti49
Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Details) | 6 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2015 | |
Details | |||
Foreign Currency Exchange Rate, Translation | 0.745600 | 0.788786 | |
Weighted Average Exchange Rate | 0.789200 | 0.918000 | |
Foreign Currency Transaction Gain (Loss), Realized | $ 245,034 | $ 0 |
Note 2 - Significant Accounti50
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 |
Details | ||||
Cash and cash equivalents | $ 18,954,290 | $ 14,144,796 | $ 18,671,824 | $ 4,456,674 |
Cash, FDIC Insured Amount | 250,000 | |||
Cash, Guaranteed by the Province of Alberta, Canada | $ 74,560 |
Note 2 - Significant Accounti51
Note 2 - Significant Accounting Policies: Accounts Receivable (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 194,409 | $ 108,641 |
Note 2 - Significant Accounti52
Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Inventory, Finished Goods, Gross | $ 10,205,991 | $ 11,951,108 |
Subtotal | 10,205,991 | 11,951,108 |
Reserves for obsolescence | (251,633) | (184,573) |
Inventories | $ 9,954,358 | $ 11,766,535 |
Note 2 - Significant Accounti53
Note 2 - Significant Accounting Policies: Advertising Costs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Details | ||
Advertising Expense | $ 47,956 | $ 41,156 |
Note 2 - Significant Accounti54
Note 2 - Significant Accounting Policies: Research and Development (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Details | ||||
Research and development | $ 295,146 | $ 538,793 | $ 599,635 | $ 810,020 |
Note 2 - Significant Accounti55
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Details | ||
Shipping, Handling and Transportation Costs | $ 143,979 | $ 271,832 |
Note 2 - Significant Accounti56
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Details) | 6 Months Ended |
Sep. 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 Equipme57
Note 3 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Office furniture and equipment | $ 941,298 | $ 937,274 |
Service and shop equipment | 561,131 | 573,233 |
Vehicles | 2,808,578 | 3,040,439 |
Land and buildings | 6,690,290 | 6,746,597 |
Total property and equipment | 11,001,297 | 11,297,543 |
Accumulated depreciation | (2,304,122) | (2,021,578) |
PROPERTY AND EQUIPMENT, net | $ 8,697,175 | $ 9,275,965 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Details) - USD ($) | 6 Months Ended | |
Sep. 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 | 53,255,275 | 53,199,136 |
Common stock shares outstanding | 53,255,275 | 53,199,136 |
Stock Issued During Period Shares Restricted Stock Awards Settled | 56,254 | |
Stock Issued During Period Value Restricted Stock Awards Settled | $ 73,026 | |
Common stock | ||
StockIssuanceShares | 4,500,000 |
Note 5 - Intangible Assets_ S59
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Distribution Agreements, Gross | $ 39,957 | $ 41,638 |
Accumulated Amortization of Other Deferred Costs | (39,957) | (27,757) |
Distribution Agreements, Net | 13,881 | |
Other Finite-Lived Intangible Assets, Gross | 548,377 | 580,138 |
Finite-Lived Intangible Assets, Accumulated Amortization | (22,850) | |
Other Finite Lived Intangible Assets, Net | 525,527 | 580,138 |
Intangible assets, net of accumulated amortization | $ 525,527 | $ 594,019 |
Note 5 - Intangible Assets_ S60
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Details | ||
Goodwill | $ 997,701 | $ 997,701 |
Note 5 - Intangible Assets_ F61
Note 5 - Intangible Assets: Finite-lived Intangible Assets Amortization Expense (Details) | Sep. 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_62
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Total Revenues | $ 8,097,294 | $ 15,720,932 | $ 14,974,537 | $ 28,865,766 | |
PROPERTY AND EQUIPMENT, net | 8,697,175 | 8,697,175 | $ 9,275,965 | ||
CANADA | |||||
Total Revenues | 1,936,709 | 4,940,082 | 3,338,253 | 9,533,064 | |
PROPERTY AND EQUIPMENT, net | 1,069,900 | 1,069,900 | 1,231,434 | ||
UNITED STATES | |||||
Total Revenues | 6,160,585 | $ 10,780,850 | 11,636,284 | $ 19,332,702 | |
PROPERTY AND EQUIPMENT, net | $ 7,627,275 | $ 7,627,275 | $ 8,044,531 |
Note 7 - Stock Based Compensa63
Note 7 - Stock Based Compensation (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Details | ||
Stock options issued for services | $ 325,334 | $ 880,824 |
Remaining Compensation Expense Arising From Equity Awards Issued | $ 1,568,668 |
Note 7 - Stock Based Compensa64
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation, Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,745,900 | 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 | $ 1.98 | $ 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 | (367,600) | (498,615) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 1.50 | $ 1.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,037,600 | 907,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Grant Date Fair Value | $ 2.19 | $ 2.27 |
Note 7 - Stock Based Compensa65
Note 7 - Stock Based Compensation: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,745,900 | 2,113,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 9 months 7 days | 4 years 7 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1,037,600 | 907,000 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 2.19 | $ 2.27 |
ExercisableOptions1Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 40,000 | 40,000 |
ExercisableOptions2Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 452,500 | 284,000 |
ExercisableOptions3Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 223,000 | 283,000 |
ExercisableOptions4Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 200,000 | 200,000 |
ExercisableOptions5Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 100,000 | 100,000 |
ExercisableOptions6Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 22,100 | |
OutstandingOptions1Member | ||
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 4 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 |
OutstandingOptions2Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 862,000 | 1,118,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 6 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 |
OutstandingOptions3Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 365,000 | 475,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 5 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 |
OutstandingOptions4Member | ||
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 1 month 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 |
OutstandingOptions5Member | ||
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 4 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 |
OutstandingOptions6Member | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 108,900 | 110,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 7 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 Compensa66
Note 7 - Stock Based Compensation: Schedule of Nonvested Share Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 708,300 | 1,206,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 1.67 | $ 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 | (367,600) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 1.50 | |
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 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Cancellation of Previously Vested Stock Options | 100,000 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested, Cancellation of Previously Vested Stock Options, Weighted Average Grant Date Fair Value | $ 1.60 |
Note 7 - Stock Based Compensa67
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 | 6 Months Ended | |
Sep. 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 | 146,333 | 106,907 |
Nonvested Restricted Stock units, Weighted average grant date fair value | $ 1.75 | $ 3.94 |
Restricted Stock units issued during the period | 208,334 | |
Restricted Stock units issued during the period, Weighted average grant date fair value | $ 1.04 | |
Restricted Stock units canceled during the period | (76,999) | |
Restricted Stock units canceled during the period, Weighted average grant date fair value | $ 1.68 | |
Vested & Settled Restricted Stock units | (52,001) | |
Vested & Settled Restricted Stock units, Weighted average grant date fair value | $ 3.92 |