Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Trading Symbol | pfie | |
Amendment Flag | false | |
Entity Central Index Key | 1,289,636 | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 53,256,962 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, Date of Incorporation | May 5, 2003 | |
Entity Incorporation, State Country Name | Nevada |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 11,674,786 | $ 21,292,595 |
Accounts receivable, net | 3,695,422 | 4,132,137 |
Inventories, net | 8,921,196 | 11,046,682 |
Income tax receivable | 507,526 | 268,326 |
Short term investments | 2,172,410 | |
Investments - other | 3,000,000 | |
Prepaid expenses & other current assets | 463,287 | 315,757 |
Total Current Assets | 30,434,627 | 37,055,497 |
LONG-TERM ASSETS | ||
Deferred tax asset | 455,504 | 452,431 |
Long Term Investments | 5,950,473 | |
PROPERTY AND EQUIPMENT, net | 7,715,964 | 8,232,911 |
OTHER ASSETS | ||
Goodwill | 997,701 | 997,701 |
Intangible assets, net of accumulated amortization | 508,276 | 529,300 |
Total Other Assets | 1,505,977 | 1,527,001 |
TOTAL ASSETS | 46,062,544 | 47,267,840 |
CURRENT LIABILITIES | ||
Accounts payable | 802,218 | 893,822 |
Accrued liabilities | 478,108 | 620,783 |
Income taxes payable | 335,375 | |
Total current liabilities | 1,280,326 | 1,849,980 |
LONG-TERM LIABILITIES | ||
Deferred income tax liability | 558,829 | 632,732 |
TOTAL LIABILITIES | 1,839,155 | 2,482,712 |
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: 53,325,215 issued and 53,109,905 outstanding at September 30, 2016 and 53,256,296 issued and outstanding at March 31, 2016 | 53,325 | 53,256 |
Treasury stock, at cost | (261,544) | 0 |
Additional paid-in capital | 26,617,570 | 26,164,622 |
Accumulated other comprehensive loss | (2,505,050) | (2,282,682) |
Retained earnings | 20,319,089 | 20,849,932 |
Total Stockholders' Equity | 44,223,390 | 44,785,128 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 46,062,544 | $ 47,267,840 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Sep. 30, 2016 | Mar. 31, 2016 |
CONDENSED 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 | 53,325,215 | 53,256,296 |
Common stock shares outstanding | 53,109,905 | 53,256,296 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | ||||
Sales of goods, net | $ 4,507,044 | $ 7,291,846 | $ 7,969,936 | $ 13,503,816 |
Sales of services, net | 483,769 | 805,448 | 994,919 | 1,470,721 |
Total Revenues | 4,990,813 | 8,097,294 | 8,964,855 | 14,974,537 |
COST OF SALES | ||||
Cost of goods sold-product | 1,977,658 | 3,445,188 | 3,690,300 | 6,413,106 |
Cost of goods sold-services | 388,496 | 623,992 | 735,645 | 1,219,530 |
Total Cost of Sales | 2,366,154 | 4,069,180 | 4,425,945 | 7,632,636 |
GROSS PROFIT | 2,624,659 | 4,028,114 | 4,538,910 | 7,341,901 |
OPERATING EXPENSES | ||||
General and administrative expenses | 2,328,100 | 2,919,862 | 4,713,665 | 6,361,000 |
Research and development | 263,712 | 295,146 | 514,435 | 599,635 |
Depreciation and amortization expense | 160,216 | 137,999 | 319,455 | 245,454 |
Total Operating Expenses | 2,752,028 | 3,353,007 | 5,547,555 | 7,206,090 |
INCOME (LOSS) FROM OPERATIONS | (127,369) | 675,107 | (1,008,645) | 135,811 |
OTHER INCOME (EXPENSE) | ||||
Gain (Loss) on sale of fixed assets | 754 | (2,592) | 19,391 | |
Other income | 82,452 | 352,310 | 87,207 | 243,320 |
Interest income | 19,667 | 5,517 | 47,609 | 26,640 |
Total Other Income | 102,119 | 358,581 | 132,224 | 289,351 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (25,249) | 1,033,689 | (876,420) | 425,162 |
INCOME TAX EXPENSE (BENEFIT) | (99,701) | 254,781 | (345,578) | 105,067 |
NET INCOME (LOSS) | 74,452 | 778,907 | (530,843) | 320,095 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation loss | (202,520) | (1,084,519) | (201,747) | (751,147) |
Unrealized losses on investments | (20,621) | (20,621) | ||
Total Other Comprehensive Loss | (223,141) | (1,084,519) | (222,368) | (751,147) |
TOTAL COMPREHENSIVE LOSS | $ (148,689) | $ (305,612) | $ (753,211) | $ (431,052) |
BASIC EARNINGS PER SHARE | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 |
FULLY DILUTED EARNINGS PER SHARE | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,215,385 | 53,236,979 | 53,235,747 | 53,230,892 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 54,091,419 | 53,344,291 | 53,235,747 | 53,338,204 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net Income (Loss) | $ (530,843) | $ 320,095 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 505,117 | 476,548 |
(Gain) Loss on sale of fixed assets | 2,592 | (19,391) |
Bad debt expense | 208,628 | 86,494 |
Stock options issued for services | 447,691 | 325,334 |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | 163,107 | 2,567,419 |
Changes in income taxes receivable/payable | (577,575) | (253,794) |
Changes in inventories | 2,082,532 | 1,600,797 |
Changes in prepaid expenses | (147,750) | (262,547) |
Changes in deferred tax asset/liability | (76,976) | (73,268) |
Changes in accounts payable and accrued liabilities | (231,168) | 373,484 |
Net Cash Provided by Operating Activities | 1,845,355 | 5,141,171 |
INVESTING ACTIVITIES | ||
Proceeds from sale of equipment | 16,896 | 119,935 |
Purchase of investments | (11,143,504) | |
Purchase of fixed assets | (7,140) | (28,572) |
Net Cash Provided by (Used in) Investing Activities | (11,133,748) | 91,363 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (39,243) | |
Purchase of Treasury stock | (261,544) | |
Net Cash Used in Financing Activities | (261,544) | (39,243) |
Effect of exchange rate changes on cash | (67,872) | (383,797) |
NET INCREASE (DECREASE) IN CASH | (9,617,809) | 4,809,494 |
CASH AT BEGINNING OF PERIOD | 21,292,595 | 14,144,796 |
CASH AT END OF PERIOD | 11,674,786 | 18,954,290 |
CASH PAID FOR: | ||
Interest | ||
Income taxes |
Note 1 - Condensed Financial St
Note 1 - Condensed Financial Statements | 6 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 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, 2016 audited financial statements and Form 10-K. The results of operations for the periods ended September 30, 2016 and 2015 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, 2016 | |
Notes | |
Note 2 - Significant Accounting Policies | Note 2 Organization and Summary of Significant Accounting Policies Organization and Line of Business 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). Profire Energy, Inc. was established on October 9, 2008 upon the closing of transactions contemplated by an Acquisition Agreement between The Flooring Zone, Inc. and Profire Combustion, Inc. and the shareholders of Profire Combustion, Inc. (the Subsidiary). Following the closing of the transactions, The Flooring Zone, Inc. was renamed Profire Energy, Inc. (the Parent). 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. 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 primarily in the Canadian and US markets. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Companys 10-K, except as discussed below. Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders equity. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investmentsother." Certificates of deposit with original maturities greater than three months and remaining maturities less than one year are classified as "short term investmentsother." Certificates of deposit with remaining maturities greater than one year are classified as "long term investmentsother." Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Investments with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year and mutual funds expected to be liquidated within one year from the balance sheet date are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Companys available-for-sale securities in accumulated other comprehensive income in the shareholders equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its statements of operations. Dividend and interest income earned on all investments is included in earnings as other income. Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued, any gains are included as part of additional paid-in capital. Losses upon reissuance reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. |
Note 3 - Research and Developme
Note 3 - Research and Development | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 3 - Research and Development | Note 3 RESEARCH AND DEVELOPMENT Research and Development All costs associated with research and development are expensed when incurred. Costs incurred for research and development are presented in the table below: For the Three Months Ended September 30, For the Six Months Ended September 30, 2016 2015 2016 2015 Research and Development $ 263,712 $ 295,146 $ 514,435 $ 599,635 |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 4 - Stockholders' Equity | Note 4 STOCKHOLDERS EQUITY As described in Note 2, treasury stock is recorded at cost until reissued or retired. As of September 30, 2016 and March 31, 2016, the Company held 215,310 and 0 shares in treasury at a total cost of $261,544 and $0, respectively. All purchases of treasury stock have been made at market prices. |
Note 5 - Financial Instruments
Note 5 - Financial Instruments and Investments | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 5 - Financial Instruments and Investments | NOTE 5 - FINANCIAL INSTRUMENTS AND INVESTMENTS 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 divided 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. Investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Companys cash and cash equivalents and investments held as of September 30, 2016 and March 31, 2016: September 30, 2016 Adjusted Cost Unrealized Gains (Losses) Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ 819,582 $ - $ 819,582 $ 819,582 $ - $ - Mutual Funds 1,473,536 (7,686) 1,465,850 - - 1,465,850 Subtotal 2,293,118 (7,686) 2,285,432 819,582 - 1,465,850 Level 2 Certificates of Deposit $ 3,000,000 $ - $ 3,000,000 $ - $ 3,000,000 $ - Corporate Bonds 2,251,003 (1,580) 2,249,423 - 250,294 1,999,129 Municipal Bonds 4,418,965 (11,355) 4,407,610 - 1,922,116 2,485,494 Subtotal 9,669,968 (12,935) 9,657,033 - 5,172,410 4,484,623 Total $ 11,963,086 $ (20,621) $ 11,942,465 $ 819,582 $ 5,172,410 $ 5,950,473 March 31, 2016 Adjusted Cost Unrealized Gains (Losses) Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ - $ - $ - $ - $ - $ - Mutual Funds - - - - - - Subtotal - - - - - - Level 2 Certificates of Deposit $ - $ - $ - $ - $ - $ - Corporate Bonds - - - - - - Municipal Bonds - - - - - - Subtotal - - - - - - Total $ - $ - $ - $ - $ - $ - Unrealized gains (losses) on investments incurred during the periods are presented below: For the Three Months Ended September 30, For the Six Months Ended September 30, 2016 2015 2016 2015 Unrealized Holding Gains (Losses) $ (20,621) $ - $ (20,621) $ - The maturities for bonds held by the Company as of September 30, 2016 are presented in the table below: Maturity Fair Value Less Than One Year 2,172,410 1-2 years 875,078 2-5 years 3,050,858 5-10 years 258,687 Over 10 years 300,000 6,657,033 |
Note 6 - Segment Information
Note 6 - Segment Information | 6 Months Ended |
Sep. 30, 2016 | |
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 September 30, For the Six Months Ended September 30, Sales 2016 2015 2016 2015 Canada $ 1,273,863 $ 1,936,709 $ 2,695,950 $ 3,338,253 United States 3,716,950 6,160,585 6,268,905 11,636,284 Total Consolidated $ 4,990,813 $ 8,097,294 $ 8,964,855 $ 14,974,537 For the Three Months Ended September 30, For the Six Months Ended September 30, Profit (Loss) 2016 2015 2016 2015 Canada $ (114,114) $ 98,216 $ (167,289) $ (131,662) United States 188,566 680,691 (363,553) 451,756 Total Consolidated $ 74,452 $ 778,907 $ (530,843) $ 320,095 As of Long-lived assets September 30, 2016 March 31, 2016 Canada $ 1,014,981 $ 1,067,346 United States 6,700,983 7,165,565 Total Consolidated $ 7,715,964 $ 8,232,911 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 7 - Stock Based Compensation | NOTE 7 STOCK BASED COMPENSATION On May 25, 2016, the Company granted a total of 315,500 stock options to employees at a strike price of $1.01. The options vest 1/3 each year for 3 years, with the first vesting occurring on the first anniversary of the grant date. The Company estimates the fair value of each option award at the grant date by using the Black-Scholes option pricing model. Additionally, on May 25, 2016, the Company granted 15,000 restricted stock units (RSUs) to Ryan Oviatt, the Company CFO. Pursuant to his employment agreement, the RSUs granted to Mr. Oviatt vested immediately. The Company estimates the fair value of the RSUs at their intrinsic value at the time of grant. On September 15, 2016, the Company issued a total of 208,266 RSUs to the directors of the Company. Half of the RSUs vested immediately and the remaining half will vest one year after issuance. The Company estimates the fair value of the RSUs at their intrinsic value at the time of grant. |
Note 8 - Inventory
Note 8 - Inventory | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 8 - Inventory | NOTE 8 INVENTORY Inventories consisted of the following at each balance sheet date: As of September 30, 2016 March 31, 2016 Raw materials $ 706,505 $ 967,823 Finished goods 8,443,536 10,316,857 Work in process - - Subtotal 9,150,041 11,284,680 Reserve for Obsolescence (228,845) (237,998) Total $ 8,921,196 $ 11,046,682 |
Note 9 - Basic and Diluted Earn
Note 9 - Basic and Diluted Earnings Per Share | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 9 - Basic and Diluted Earnings Per Share | NOTE 9 BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the three months ended September 30, 2016 For the six months ended September 30, 2016 Income (Numerator) Shares (Denominator) Per-Share Amount Income (Numerator) Shares (Denominator) Per-Share Amount Basic EPS Net income available to common stockholders 74,452 53,215,385 $ 0.00 (530,843) 53,235,747 $ (0.01) Effect of Dilutive Securities Stock options - 876,034 - - Diluted EPS Net income available to common stockholders + assumed conversions 74,452 54,091,419 $ 0.00 (530,843) 53,235,747 $ (0.01) Options to purchase 1,343,500 shares of common stock at a weighted average price of $2.17 per share were outstanding during the three-months ending September 30, 2016, but were not included in the computation of diluted EPS because the options exercise price was greater than the average market price of the common shares. These options, which expire Between February 2017 and May of 2020, were still outstanding at September 30, 2016. During the six months ended September 30, 2016, options to purchase 2,503,127 shares of common stock at a weighted average price of $1.30 per share were outstanding, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. These options, which expire Between February 2017 and May of 2020, were still outstanding at September 30, 2016. |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 6 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 10 - Subsequent Events | NOTE 10 SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company management reviewed all material events through the date this report was available to be issued and the following subsequent events occurred: On October 18, 2016, the Company issued 50,000 shares of common stock to an employee for exercising previously granted and vested stock options. Compensation expense for these shares had already been recognized during the vesting period. On November 2, 2016, the Board of Directors approved a stock option grant to executives of the Company with a strike price of $1.17. The options vest 50% annually over two years, with the first vesting occurring on the first anniversary of the grant date. The options expire on November 2, 2019. The Companys CEO was granted 400,000 options, the CFO was granted 200,000 options, and the CTO was granted 75,000 options. The Company estimates the fair value of each option award at the grant date by using the Black-Scholes option pricing model, which will result in approximately $187,000 in compensation expense over each of the next two years. On November 2, 2016, the Company issued 134,664 shares of stock to a Director for settlement of previously granted and vested restricted stock units. Compensation expense for these shares had already been recognized during the vesting period. |
Note 2 - Significant Accounti16
Note 2 - Significant Accounting Policies: Reclassification (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Reclassification | Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders equity. |
Note 2 - Significant Accounti17
Note 2 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company 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 Accounti18
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investmentsother." Certificates of deposit with original maturities greater than three months and remaining maturities less than one year are classified as "short term investmentsother." Certificates of deposit with remaining maturities greater than one year are classified as "long term investmentsother." |
Note 2 - Significant Accounti19
Note 2 - Significant Accounting Policies: Investments (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Investments | Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Investments with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year and mutual funds expected to be liquidated within one year from the balance sheet date are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Companys available-for-sale securities in accumulated other comprehensive income in the shareholders equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its statements of operations. Dividend and interest income earned on all investments is included in earnings as other income. |
Note 2 - Significant Accounti20
Note 2 - Significant Accounting Policies: Treasury Stock (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Treasury Stock | Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued, any gains are included as part of additional paid-in capital. Losses upon reissuance reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. |
Note 3 - Research and Develop21
Note 3 - Research and Development: Research and Development (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Policies | |
Research and Development | Research and Development All costs associated with research and development are expensed when incurred. Costs incurred for research and development are presented in the table below: For the Three Months Ended September 30, For the Six Months Ended September 30, 2016 2015 2016 2015 Research and Development $ 263,712 $ 295,146 $ 514,435 $ 599,635 |
Note 3 - Research and Develop22
Note 3 - Research and Development: Research and Development: Schedule of Research and Development (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Research and Development | For the Three Months Ended September 30, For the Six Months Ended September 30, 2016 2015 2016 2015 Research and Development $ 263,712 $ 295,146 $ 514,435 $ 599,635 |
Note 5 - Financial Instrument23
Note 5 - Financial Instruments and Investments: Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments | September 30, 2016 Adjusted Cost Unrealized Gains (Losses) Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ 819,582 $ - $ 819,582 $ 819,582 $ - $ - Mutual Funds 1,473,536 (7,686) 1,465,850 - - 1,465,850 Subtotal 2,293,118 (7,686) 2,285,432 819,582 - 1,465,850 Level 2 Certificates of Deposit $ 3,000,000 $ - $ 3,000,000 $ - $ 3,000,000 $ - Corporate Bonds 2,251,003 (1,580) 2,249,423 - 250,294 1,999,129 Municipal Bonds 4,418,965 (11,355) 4,407,610 - 1,922,116 2,485,494 Subtotal 9,669,968 (12,935) 9,657,033 - 5,172,410 4,484,623 Total $ 11,963,086 $ (20,621) $ 11,942,465 $ 819,582 $ 5,172,410 $ 5,950,473 March 31, 2016 Adjusted Cost Unrealized Gains (Losses) Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ - $ - $ - $ - $ - $ - Mutual Funds - - - - - - Subtotal - - - - - - Level 2 Certificates of Deposit $ - $ - $ - $ - $ - $ - Corporate Bonds - - - - - - Municipal Bonds - - - - - - Subtotal - - - - - - Total $ - $ - $ - $ - $ - $ - |
Note 5 - Financial Instrument24
Note 5 - Financial Instruments and Investments: Unrealized Gain (Loss) on Investments (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | For the Three Months Ended September 30, For the Six Months Ended September 30, 2016 2015 2016 2015 Unrealized Holding Gains (Losses) $ (20,621) $ - $ (20,621) $ - |
Note 5 - Financial Instrument25
Note 5 - Financial Instruments and Investments: Maturities for Bonds (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Maturities for Bonds | Maturity Fair Value Less Than One Year 2,172,410 1-2 years 875,078 2-5 years 3,050,858 5-10 years 258,687 Over 10 years 300,000 6,657,033 |
Note 6 - Segment Information_ S
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | For the Three Months Ended September 30, For the Six Months Ended September 30, Sales 2016 2015 2016 2015 Canada $ 1,273,863 $ 1,936,709 $ 2,695,950 $ 3,338,253 United States 3,716,950 6,160,585 6,268,905 11,636,284 Total Consolidated $ 4,990,813 $ 8,097,294 $ 8,964,855 $ 14,974,537 For the Three Months Ended September 30, For the Six Months Ended September 30, Profit (Loss) 2016 2015 2016 2015 Canada $ (114,114) $ 98,216 $ (167,289) $ (131,662) United States 188,566 680,691 (363,553) 451,756 Total Consolidated $ 74,452 $ 778,907 $ (530,843) $ 320,095 As of Long-lived assets September 30, 2016 March 31, 2016 Canada $ 1,014,981 $ 1,067,346 United States 6,700,983 7,165,565 Total Consolidated $ 7,715,964 $ 8,232,911 |
Note 8 - Inventory_ Schedule of
Note 8 - Inventory: Schedule of Inventory, Current (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Inventory, Current | As of September 30, 2016 March 31, 2016 Raw materials $ 706,505 $ 967,823 Finished goods 8,443,536 10,316,857 Work in process - - Subtotal 9,150,041 11,284,680 Reserve for Obsolescence (228,845) (237,998) Total $ 8,921,196 $ 11,046,682 |
Note 9 - Basic and Diluted Ea28
Note 9 - Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the three months ended September 30, 2016 For the six months ended September 30, 2016 Income (Numerator) Shares (Denominator) Per-Share Amount Income (Numerator) Shares (Denominator) Per-Share Amount Basic EPS Net income available to common stockholders 74,452 53,215,385 $ 0.00 (530,843) 53,235,747 $ (0.01) Effect of Dilutive Securities Stock options - 876,034 - - Diluted EPS Net income available to common stockholders + assumed conversions 74,452 54,091,419 $ 0.00 (530,843) 53,235,747 $ (0.01) |
Note 2 - Significant Accounti29
Note 2 - Significant Accounting Policies (Details) | 6 Months Ended |
Sep. 30, 2016 | |
Details | |
Entity Incorporation, Date of Incorporation | May 5, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 3 - Research and Develop30
Note 3 - Research and Development: Research and Development: Schedule of Research and Development (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details | ||||
Research and development | $ 263,712 | $ 295,146 | $ 514,435 | $ 599,635 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Details | ||
Treasury Stock, Shares | 215,310 | 0 |
Treasury stock, at cost | $ 261,544 | $ 0 |
Note 5 - Financial Instrument32
Note 5 - Financial Instruments and Investments: Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments (Details) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Adjusted Cost | $ 11,963,086 | $ 11,963,086 |
Investments, Fair Value Disclosure | 11,942,465 | 11,942,465 |
Cash and Cash Equivalents | 819,582 | 819,582 |
Unrealized losses on investments | (20,621) | (20,621) |
Long Term Investments | 5,950,473 | 5,950,473 |
Short-term Investments | 5,172,410 | 5,172,410 |
Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 2,293,118 | 2,293,118 |
Investments, Fair Value Disclosure | 2,285,432 | 2,285,432 |
Cash and Cash Equivalents | 819,582 | 819,582 |
Unrealized losses on investments | (7,686) | |
Long Term Investments | 1,465,850 | 1,465,850 |
Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 9,669,968 | 9,669,968 |
Investments, Fair Value Disclosure | 9,657,033 | 9,657,033 |
Unrealized losses on investments | (12,935) | |
Long Term Investments | 4,484,623 | 4,484,623 |
Short-term Investments | 5,172,410 | 5,172,410 |
Money Market Funds | Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 819,582 | 819,582 |
Investments, Fair Value Disclosure | 819,582 | 819,582 |
Cash and Cash Equivalents | 819,582 | 819,582 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 1,473,536 | 1,473,536 |
Investments, Fair Value Disclosure | 1,465,850 | 1,465,850 |
Unrealized losses on investments | (7,686) | |
Long Term Investments | 1,465,850 | 1,465,850 |
Corporate Bond Securities | Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 2,251,003 | 2,251,003 |
Investments, Fair Value Disclosure | 2,249,423 | 2,249,423 |
Unrealized losses on investments | (1,580) | |
Long Term Investments | 1,999,129 | 1,999,129 |
Short-term Investments | 250,294 | 250,294 |
Municipal Bonds | Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 4,418,965 | 4,418,965 |
Investments, Fair Value Disclosure | 4,407,610 | 4,407,610 |
Unrealized losses on investments | (11,355) | |
Long Term Investments | 2,485,494 | 2,485,494 |
Short-term Investments | $ 1,922,116 | $ 1,922,116 |
Note 5 - Financial Instrument33
Note 5 - Financial Instruments and Investments: Unrealized Gain (Loss) on Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Details | ||
Unrealized losses on investments | $ (20,621) | $ (20,621) |
Note 5 - Financial Instrument34
Note 5 - Financial Instruments and Investments: Maturities for Bonds (Details) | Sep. 30, 2016USD ($) |
Investments, Fair Value Disclosure | $ 11,942,465 |
Fair Value, Inputs, Level 2 | |
Investments, Fair Value Disclosure | 9,657,033 |
Bonds | Fair Value, Inputs, Level 2 | |
Investments, Fair Value Disclosure | 6,657,033 |
Bonds | Fair Value, Inputs, Level 2 | Less than One Year | |
Investments, Fair Value Disclosure | 2,172,410 |
Bonds | Fair Value, Inputs, Level 2 | 1-2 Years | |
Investments, Fair Value Disclosure | 875,078 |
Bonds | Fair Value, Inputs, Level 2 | 2-5 Years | |
Investments, Fair Value Disclosure | 3,050,858 |
Bonds | Fair Value, Inputs, Level 2 | 5-10 Years | |
Investments, Fair Value Disclosure | 258,687 |
Bonds | Fair Value, Inputs, Level 2 | Over 10 Years | |
Investments, Fair Value Disclosure | $ 300,000 |
Note 6 - Segment Information_35
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Total Revenues | $ 4,990,813 | $ 8,097,294 | $ 8,964,855 | $ 14,974,537 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 74,452 | 778,907 | (530,843) | 320,095 | |
PROPERTY AND EQUIPMENT, net | 7,715,964 | 7,715,964 | $ 8,232,911 | ||
CANADA | |||||
Total Revenues | 1,273,863 | 1,936,709 | 2,695,950 | 3,338,253 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (114,114) | 98,216 | (167,289) | (131,662) | |
PROPERTY AND EQUIPMENT, net | 1,014,981 | 1,014,981 | 1,067,346 | ||
UNITED STATES | |||||
Total Revenues | 3,716,950 | 6,160,585 | 6,268,905 | 11,636,284 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 188,566 | $ 680,691 | (363,553) | $ 451,756 | |
PROPERTY AND EQUIPMENT, net | $ 6,700,983 | $ 6,700,983 | $ 7,165,565 |
Note 8 - Inventory_ Schedule 36
Note 8 - Inventory: Schedule of Inventory, Current (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Details | ||
Inventory, Raw Materials, Gross | $ 706,505 | $ 967,823 |
Inventory, Finished Goods, Gross | 8,443,536 | 10,316,857 |
Subtotal | 9,150,041 | 11,284,680 |
Reserves for obsolescence | (228,845) | (237,998) |
Inventories, net | $ 8,921,196 | $ 11,046,682 |
Note 9 - Basic and Diluted Ea37
Note 9 - Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details | ||||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,215,385 | 53,236,979 | 53,235,747 | 53,230,892 |
BASIC EARNINGS PER SHARE | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 |
Dilutive Securities, Effect on Basic Earnings Per Share | $ 876,034 | |||
NET INCOME (LOSS) | $ 74,452 | $ 778,907 | $ (530,843) | $ 320,095 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 54,091,419 | 53,344,291 | 53,235,747 | 53,338,204 |
FULLY DILUTED EARNINGS PER SHARE | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 |
Note 9 - Basic and Diluted Ea38
Note 9 - Basic and Diluted Earnings Per Share (Details) | 6 Months Ended |
Sep. 30, 2016shares | |
Details | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,503,127 |