Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 04, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AeroGrow International, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 7,499,966 | |
Amendment Flag | false | |
Entity Central Index Key | 1,316,644 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets | ||
Cash | $ 471 | $ 1,015 |
Restricted cash | 15 | 15 |
Accounts receivable, net of allowance for doubtful accounts of $8 and $10 at June 30, 2015 and March 31, 2015, respectively | 850 | 1,300 |
Other receivables | 140 | 214 |
Inventory, net | 2,149 | 2,603 |
Prepaid expenses and other | 314 | 144 |
Total current assets | 3,939 | 5,291 |
Property and equipment, net of accumulated depreciation of $3,365 and $3,284 at June 30, 2015 and March 31, 2015, respectively | 553 | 525 |
Other assets | ||
Intangible assets, net | 2 | 2 |
Deposits | 156 | 156 |
Total assets | 4,650 | 5,974 |
Current liabilities | ||
Accounts payable | 1,285 | 1,641 |
Accrued expenses | 766 | 816 |
Customer deposits | 7 | 30 |
Deferred rent | 2 | 1 |
Notes payable – related party | 0 | 207 |
Derivative warrant liability | 1,952 | 1,688 |
Debt associated with sale of intellectual property | 196 | 208 |
Total current liabilities | $ 4,208 | $ 4,591 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $.001 par value, 20,000,000 shares authorized, 2,649,007 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively | $ 3 | $ 3 |
Common stock, $.001 par value, 750,000,000 shares authorized, 6,700,413 and 6,563,518 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively | 7 | 6 |
Additional paid-in capital | 82,605 | 82,101 |
Stock dividend to be distributed | 1,494 | 1,715 |
Accumulated deficit | (83,667) | (82,442) |
Total stockholders' equity | 442 | 1,383 |
Total liabilities and stockholders' equity | $ 4,650 | $ 5,974 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Allowance for doubtful accounts (in Dollars) | $ 8 | $ 10 |
Accumulated depreciation (in Dollars) | $ 3,365 | $ 3,284 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 2,649,007 | 2,649,007 |
Preferred stock, shares outstanding | 2,649,007 | 2,649,007 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 6,700,413 | 6,563,518 |
Common stock, shares outstanding | 6,700,413 | 6,563,518 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net revenue | $ 1,569 | $ 1,683 |
Cost of revenue | 1,088 | 1,144 |
Gross profit | 481 | 539 |
Operating expenses | ||
Research and development | 131 | 82 |
Sales and marketing | 642 | 542 |
General and administrative | 665 | 551 |
Total operating expenses | 1,438 | 1,175 |
Loss from operations | (957) | (636) |
Other income (expense) , net | ||
Fair value changes in derivative warrant liability | (264) | (223) |
Other income | 0 | 2 |
Total other income (expense) income, net | (264) | (221) |
Net loss | (1,221) | (857) |
Change in fair value of preferred stock dividend | 221 | (240) |
Net loss attributable to common stockholders | $ (1,000) | $ (1,097) |
Net loss per share, basic and diluted (in Dollars per share) | $ (0.15) | $ (0.18) |
Weighted average number of common shares outstanding, basic and diluted (in Shares) | 6,700 | 6,130 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net (loss) | $ (1,221) | $ (857) |
Adjustments to reconcile net (loss) to cash (used) by operations: | ||
Issuance of common stock and options under equity compensation plans | 74 | 53 |
Issuance of common stock warrants | 0 | 18 |
Depreciation and amortization expense | 81 | 44 |
Bad debt expense | (2) | (1) |
Fair value remeasurement of derivative warrant liability | 264 | 223 |
Accretion of debt associated with sale of intellectual property | (12) | (13) |
SMG intellectual property royalty and branding license | 84 | 68 |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 450 | 111 |
Decrease in other receivable | 74 | 60 |
Decrease (increase) in inventory | 454 | (7) |
(Increase) in prepaid expense and other | (170) | (151) |
(Decrease) in accounts payable | (440) | (52) |
(Decrease) in accrued expenses | (50) | (58) |
(Decrease) in customer deposits | (23) | 0 |
Increase (decrease) in deferred rent | 1 | (1) |
Net cash (used) by operating activities | (436) | (563) |
Cash flows from investing activities: | ||
Purchases of equipment | (108) | (29) |
Net cash (used) by investing activities | (108) | (29) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 1 |
Net cash provided by financing activities | 0 | 1 |
Net (decrease) in cash | (544) | (591) |
Cash, beginning of period | 1,015 | 1,707 |
Cash, end of period | 471 | 1,116 |
Cash paid during the year for: | ||
Interest | 0 | 0 |
Income taxes | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued for interest on notes payable – related party | 207 | 0 |
Change in fair value of SMG intellectual property royalty and branding license | 68 | 0 |
Change in fair value of stock dividends accrued on convertible preferred stock | $ (54) | $ 240 |
1. Description of the Business
1. Description of the Business | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Description of the Business AeroGrow International, Inc. (collectively, the “Company," “AeroGrow,” “we,” “our” or “us”) was formed as a Nevada corporation in March 2002. The Company’s principal business is developing, marketing, and distributing advanced indoor aeroponic garden systems designed and priced to appeal to the consumer gardening, cooking and small indoor appliance markets worldwide. The Company manufactures, distributes and markets nine different models of its AeroGarden systems in multiple colors, as well as over 40 varieties of seed pod kits and a full line of accessory products through multiple channels including retail distribution via brick and mortar, storefronts and .com retail outlets, catalogue and direct-to-consumer sales primarily in the United States and Canada. |
2. Liquidity and Basis of Prese
2. Liquidity and Basis of Presentation | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Liquidity and Basis of Presentation Interim Financial Information The unaudited interim financial statements of the Company included herein have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting including the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These condensed statements do not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual audited financial statements and should be read in conjunction with the Company’s audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2015, as filed with the SEC on June 29, 2015. In the opinion of management, the accompanying unaudited interim financial statements reflect all adjustments, including normal recurring adjustments, necessary to present fairly the financial position of the Company at June 30, 2015, the results of operations for the three months ended June 30, 2015 and 2014, and the cash flows for the three months ended June 30, 2015 and 2014. The results of operations for the three months ended June 30, 2015 are not necessarily indicative of the expected results of operations for the full year or any future period. In this regard, the Company’s business is highly seasonal, with approximately 70.5% of revenues in the fiscal year ended March 31, 2015 (“Fiscal 2015”) occurring in the four consecutive calendar months of October through January. Furthermore, during the three-month period ended June 30, 2015, the Company has further expanded its distribution channel and invested in necessary overhead in anticipation of the peak sales season. The balance sheet as of March 31, 2015 is derived from the Company’s audited financial statements. Sources of funding to meet prospective cash requirements include the Company’s existing cash balances, cash flow from operations, and borrowings under the Company’s debt arrangements. We may need to seek additional debt or equity capital, however, to provide a cash reserve against contingencies, address the seasonal nature of our working capital needs, and to enable us to invest further in trying to increase the scale of our business. There can be no assurance we will be able to raise this additional capital. See Note 9 for subsequent events. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that a change in the Company’s estimates could occur in the near term as additional or new information becomes available. Net Income (Loss) per Share of Common Stock The Company computes net income (loss) per share of common stock in accordance with Accounting Standards Codification (“ASC”) 260. ASC 260 requires companies with complex capital structures to present basic and diluted earnings per share (“EPS”). Basic EPS is measured as the income or loss available to common stockholders divided by the weighted average shares of common stock outstanding for the period. Diluted EPS is similar to basic EPS, but presents the dilutive effect on a per share basis of common stock equivalents (e.g., convertible securities, options, and warrants) as if such securities had been converted into common stock at the beginning of the periods presented. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Employee stock options to purchase approximately 444,000 shares were outstanding and warrants to purchase approximately 446,000 common stock were outstanding but were not included in the computation of diluted net income per share because the effect of including such shares would have been anti-dilutive in the periods presented. Concentrations of Risk ASC 825-10-50-20 Customers: For the three months ended June 30, 2015, one customer, Amazon.com, represented 38.5% of the Company’s net revenue. For the three months ended June 30, 2014, two customers, The Home Depot and Amazon.com, represented 19.4% and 14.3% of the Company’s net revenue, respectively. Suppliers: For the three months ended June 30, 2015, the Company purchased inventories and other inventory-related items from one supplier totaling $344,000, representing 31.5% of cost of revenue. For the three months ended June 30, 2014, the Company purchased inventories and other inventory-related items from two suppliers totaling $461,000 and $175,000, representing 40.3% and 15.3% of cost of revenue, respectively. The Company’s primary contract manufacturers are located in China. As a result, the Company may be subject to political, currency, regulatory, transportation/shipping and weather/natural disaster risks. Although the Company believes alternate sources of manufacturing could be obtained, the risk of an interruption in product sourcing could have an adverse impact on operations. Accounts Receivable: As of June 30, 2015, the Company had two customers, Amazon.com and Costco, that represented 52.0% and 21.6% of the Company’s outstanding accounts receivable, respectively. As of March 31, 2015, the Company had five customers, Amazon.com, Wal-Mart Stores, QVC, Costco.com and Wal-Mart.com, that represented 54.2%, 21.1%, 14.8%, 14.6% and 11.1%, respectively, of outstanding accounts receivable. The Company believes that all receivables from these customers are collectible. Fair Value of Financial Instruments The Company follows the guidance in ASC 820, Fair Value Measurements and Disclosures Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, i.e., exit price, in an orderly transaction between market participants. ASC 820 also provides a hierarchy for determining fair value, which emphasizes the use of observable market data whenever available. The three broad levels defined by the hierarchy are as follows, with the highest priority given to Level 1 as these are the most reliable, and the lowest priority given to Level 3. Level 1 – Quoted prices in active markets for identical assets. Level 2 – Quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, including model-derived valuations. Level 3 – Unobservable inputs that are supported by little or no market activity. The carrying value of financial instruments including cash, receivables and accounts payable and accrued expenses, approximates their fair value at June 30, 2015 and March 31, 2015 due to the relatively short-term nature of these instruments. The Company has three liabilities for which the carrying value is determined by Level 3 inputs: (1) Notes payable – related party; (2) sale of intellectual property liability; and (3) derivative warrant liability. As discussed below in Notes 3 and 4, each of these liabilities was incurred in conjunction with the Company’s strategic alliance with Scotts Miracle-Gro. As of June 30, 2015 and March 31, 2015, the fair value of the Company's sale of the note payable and intellectual property liability were estimated using the discounted cash flow method, which is based on expected future cash flows, discounted to present value using a discount rate of 15%. The Company also issued a derivative warrant liability that entitles, but does not obligate, Scotts Miracle-Gro to purchase a number of shares of common stock that, on a fully diluted basis, would constitute 80% of the Company’s outstanding capital stock. The Company accounts for the warrant as a liability and measures the value of the warrant using the Monte Carlo simulation model as of the end of each quarterly reporting period until the warrant is exercised or expires. As of June 30, 2015 and March 31, 2015, the fair value of the warrant was $2.0 million and $1.7 million, respectively. As of June 30, 2015, the Company did not have any financial assets or liabilities that were measured at fair value on a recurring basis subsequent to initial recognition, except for the derivative warrant liability. The table below summarizes the fair value and carry value of each Level 3 category liability: June 30, 2015 (in thousands) March 31, 2015 (in thousands) Fair Value Carry Value Fair Value Carry Value Liabilities Notes payable-related party $ - $ - $ 207 $ 207 Derivative warrant liability 1,952 1,952 1,688 1,688 Sale of intellectual property liability 138 196 145 208 Total $ 2,090 $ 2,148 $ 2,040 $ 2,103 Accounts Receivable and Allowance for Doubtful Accounts The Company sells its products to retailers and directly to consumers. Consumer transactions are primarily paid by credit card. Retailer sales terms vary by customer, but generally range from net 30 days to net 60 days. Accounts receivable are reported at net realizable value and net of the allowance for doubtful accounts. The Company uses the allowance method to account for uncollectible accounts receivable. The Company's allowance estimate is based on a review of the current status of trade accounts receivable, which resulted in an allowance of $8,000 and $10,000 at June 30, 2015 and March 31, 2015, respectively. Other Receivables In conjunction with the Company’s processing of credit card transactions for its direct-to-consumer sales activities and as security with respect to the Company’s performance for credit card refunds and charge backs, the Company is required to maintain a cash reserve with Litle and Company, the Company’s credit card processor. This reserve is equal to 5% of the credit card sales processed during the previous six months. As of June 30, 2015 and March 31, 2015, the balance in this reserve account was $140,000 and $214,000, respectively. Advertising and Production Costs The Company expenses all production costs related to advertising, including print, television, and radio advertisements when the advertisement has been broadcast or otherwise distributed. In contrast, the Company records media and marketing costs related to its direct-to-consumer advertisements, inclusive of postage and printing costs incurred in conjunction with mailings of direct-response catalogues, and related direct-response advertising costs, in accordance with ASC 340-20 Capitalized Advertising Costs As the Company has continued to expand its retail distribution channel, the Company has expanded its advertising to online gateway and portal advertising, as well as placement in third party catalogues. Advertising expense for the three months ended June 30, 2015 and June 30, 2014, were as follows: Three Months Ended June 30, (in thousands) 2015 2014 Direct-to-consumer $ 137 $ 105 Retail - 8 Other $ 13 $ 18 Total advertising expense $ 150 $ 131 As of June 30, 2015 and March 31, 2015, the Company deferred $11,000 and $48,000, respectively, related to such media and advertising costs which include the catalogue cost described above. The costs are included in the prepaid expenses and other line of the balance sheet. Inventory Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or market. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. June 30, March 31, 2015 (in thousands) 2015 (in thousands) Finished goods $ 1,477 $ 1,919 Raw materials 672 684 $ 2,149 $ 2,603 The Company determines an inventory obsolescence reserve based on management’s historical experience and establishes reserves against inventory according to the age of the product. As of June 30, 2015 and March 31, 2015, the Company had reserved $267,000 for inventory obsolescence. Revenue Recognition The Company recognizes revenue from product sales, net of estimated returns, when persuasive evidence of a sale exists, including the following; (i) a product is shipped under an agreement with a customer; (ii) the risk of loss and title has passed to the customer; (iii) the fee is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. The Company records estimated reductions to revenue for customer and distributor programs and incentive offerings, including promotions, rebates, and other volume-based incentives. Certain incentive programs require the Company to estimate the number of customers who will actually redeem the incentive based on historical industry experience. As of June 30, 2015 and March 31, 2015, the Company had accrued $67,000 and $110,000, respectively, as its estimate for the foregoing deductions and allowances. These expenses are included in the accrued expenses line of the balance sheets. Warranty and Return Reserves The Company records warranty liabilities at the time of sale for the estimated costs that may be incurred under its basic warranty program. The specific warranty terms and conditions vary depending upon the product sold, but generally include technical support, repair parts, and labor for periods up to one year. Factors that affect the Company’s warranty liability include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and cost per claim to satisfy the Company’s warranty obligation. Based upon the foregoing, the Company has recorded a provision for potential future warranty costs of $90,000 and $58,000 as of June 30, 2015 and March 31, 2015, respectively. The Company reserves for known and potential returns from customers and associated refunds or credits related to such returns based upon historical experience. In certain cases, retailer customers are provided a fixed allowance, usually in the 1% to 2% range, to cover returned goods and this allowance is deducted from payments made to us by such customers. As of June 30, 2015 and March 31, 2015, the Company has recorded a reserve for customer returns of $18,000 and $119,000, respectively. Recently Issued Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management does not believe the adoption of ASU 2015-11 will have an impact on the Company's financial position or results of operations. |
3. Notes Payable, Long Term Deb
3. Notes Payable, Long Term Debt and Current Portion - Long Term Debt | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 3. Notes Payable, Long Term Debt and Current Portion – Long Term Debt Refer to the Company’s Annual Report on Form 10-K for the year ended March 31, 2015, as filed with the SEC on June 29, 2015 for a detailed discussion on our previously outstanding Notes Payable, Long Term Debt and Current Portion – Long Term Debt. The following are the changes to our Notes Payable, Long Term Debt and Current Portion – Long Term Debt for the periods presented. As of June 30, 2015 and March 31, 2015, the outstanding balance of the Company’s note payable and debt, including accrued interest, is as follows: June 30, 2015 March 31, 2015 (in thousands) (in thousands) Notes Payable –related party $ - $ 207 Derivative warrant liability (see Note 4) 1,952 1,688 Sale of intellectual property liability (see Note 4) 196 208 Total debt 2,148 2,103 Less notes payable and current portion – long term debt 2,148 2,103 Long term debt $ - $ - Liability Associated with Scotts Miracle-Gro Transaction On April 22, 2013, the Company issued Series B Convertible Preferred Stock and a warrant to a wholly-owned subsidiary of Scotts Miracle-Gro. Pursuant to U.S. GAAP, the Company has classified the warrant as a liability at its estimated fair value. The derivative warrant liability will be re-measured to fair value, on a recurring basis, at the end of each reporting period until it is exercised or expires. The valuation techniques used to determine the fair value of the derivative warrant liability and the terms of the warrant are further explained in Note 4. As of June 30, 2015 and March 31, 2015, the estimated fair value of the warrant was $2.0 million and $1.7 million, respectively. The Company and Scotts Miracle-Gro also agreed to enter an Intellectual Property Sale Agreement, a Technology License Agreement, a Brand License Agreement, and a Supply Chain Services Agreement. The Intellectual Property Sale Agreement and the Technology License constitute an agreement of sales of future revenues. Since the Company received cash from Scotts Miracle-Gro and agreed to pay for a defined period a specified percentage of revenue, and because the Company has significant involvement in the generation of its revenue, the excess paid over net book value is classified as debt and is being amortized under the effective interest method. As of June 30, 2015 and March 31, 2015, a liability of $196,000 and $208,000, respectively, was recorded on the balance sheets. |
4. Scotts Miracle-Gro Transacti
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions | 3 Months Ended |
Jun. 30, 2015 | |
Convertible Preferred Stock Warrants And Other Transactions [Abstract] | |
Convertible Preferred Stock Warrants And Other Transactions [Text Block] | 4. Scotts Miracle-Gro Transactions – Convertible Preferred Stock, Warrants and Other Transactions Series B Convertible Preferred Stock and Related Transactions On April 22, 2013, the Company entered into a Securities Purchase Agreement with Scotts Miracle-Gro. Pursuant to the Securities Purchase Agreement, Scotts Miracle-Gro acquired 2.6 million shares of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share (the “ The Series B Convertible Preferred Stock is convertible into 2.6 million shares of the Company’s common stock ($4.0 million divided by a conversion price of $1.51 per share). The Series B Convertible Preferred Stock bears a cumulative annual dividend of 8.0%, payable in shares of the Company’s common stock at a conversion price of $1.51 per share (subject to customary anti-dilution rights, as described in the Series B Convertible Preferred Stock Certificates of Designations). The Series B Convertible Preferred Stock does not have a liquidation preference and is entitled to vote on an “as-converted” basis with the common stock. The stock dividend accrues from day to day and is payable in shares of our common stock within thirty days after the end of each fiscal year end. The stock dividend issuable is recorded at the fair market value of our common stock at the end of each quarter in the equity section of the balance sheet. The corresponding charge is recorded below net income to arrive at net income available to common stockholders. The Series B Convertible Preferred Stock automatically converts into the Company’s common stock: (i) upon the affirmative election of the holders of at least a majority of the then outstanding shares of the Series B Convertible Preferred Stock voting together as a single class on an as-if-converted to common stock basis; or (ii) if, at the date of exercise in whole or in part of the Warrant, the holder (or holders) of the Series B Convertible Preferred Stock own 50.1% of the issued and the Company’s then-outstanding common stock, giving effect to the issuance of shares of common stock in connection with the conversion of the Series B Convertible Preferred Stock and such exercise of the Warrant. The Warrant entitles, but does not obligate, Scotts Miracle-Gro to purchase a number of shares of common stock that, on a “fully diluted basis” (as defined in the Securities Purchase Agreement), constitute 80% of the Company’s outstanding capital stock (when added to all other shares owned by Scotts Miracle-Gro), as calculated as of the date or dates of exercise. The Warrant can be exercised at any time and from time to time for a period of five years between April 22, 2016 and April 22, 2021 (the third and eighth anniversary of the initial issuance, respectively). In addition, the Warrant can be exercised in any increment; there is no obligation to exercise the entire Warrant at one time. The exercise price of the Warrant shall be equal to the quotient obtained by dividing: (a) an amount equal to (i) 1.34 times the trailing twelve months “Net Sales” (which includes sales of the Company’s products by Scotts Miracle-Gro and its affiliates) minus (ii) “Debt Outstanding” net of cash (as such terms are defined in the Warrant), by (b) the total shares of capital stock outstanding, including outstanding in-the-money options and warrants, but not the Warrant contemplated in the private offering. The Warrant expires on April 22, 2021, the eighth anniversary of the closing date. The Warrant contains customary anti-dilution rights (for stock splits, stock dividends and sales of substantially all the Company’s assets). Scotts Miracle-Gro also has the right to participate pro rata, based on Scotts Miracle-Gro’s percentage equity ownership in the Company (assuming the exercise of Scotts Miracle-Gro’s Warrant, but not the exercise of any options outstanding under the Company’s equity compensation plans) in future issuances of the Company’s equity securities. Upon exercise of the Warrant and demand by Scotts Miracle-Gro, the Company must use its best efforts to file a Registration Statement on Form S-3, or, if the Company is not eligible for Form S-3, on Form S-1 (collectively, the “Registration Statement”), covering the shares of the Company’s common stock covered by the Preferred Stock and the Warrant, within 120 calendar days after receipt of Scotts Miracle-Gro’s demand for registration and shall use its best efforts to cause the Registration Statement to become effective as soon as possible thereafter. The private offering and sale of the Series B Convertible Preferred Stock and Warrant was conducted in reliance upon exemptions from registration requirements under the Securities Act, including, without limitation, those under Regulation D promulgated under the Securities Act. Scotts Miracle-Gro is an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Because the Series B Convertible Preferred Stock and the Warrant have not been registered under the Securities Act, they may not be reoffered or resold in the United States absent registration or an applicable exemption from registration. The foregoing description of the Securities Purchase Agreement, the Certificates of Designations for the Series B Convertible Preferred Stock, the Warrant, and the resulting transaction is only a summary, does not purport to be complete, and is qualified in its entirety by reference to the full text of the applicable documents, each of which was included as an exhibit to the Company’s Current Report on Form 8-K, as filed with the SEC on April 23, 2013. The Warrant on the Series B Convertible Preferred Stock was accounted for as a liability at its estimated fair value of $2.0 million and $1.7 million as of June 30, 2015 and March 31, 2015, respectively. The derivative warrant liability will be re-measured to fair value, on a recurring basis, at the end of each reporting period until it is exercised or expires. The Company calculated the fair value of the Warrant during the quarter ended June 30, 2015 using a Monte Carlo simulation model. In conjunction with the private offering described above, the Company and Scotts Miracle-Gro also agreed to enter an Intellectual Property Sale Agreement, a Technology License Agreement, a Brand License Agreement, and a Supply Chain Services Agreement. The Intellectual Property Sale Agreement and the Technology License constitute an agreement of sales of future revenues. For more details regarding these agreements, please refer to Note 3 “Scotts Miracle-Gro Transactions” to the financial statements included in the Company’s Annual Report on Form 10-K, as filed with the SEC on June 29, 2015. See also Note 9 for subsequent events. |
5. Equity Compensation Plans an
5. Equity Compensation Plans and Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | 5. Equity Compensation Plans and Employee Benefit Plans For the three months ended June 30, 2015, the Company did not grant any options to purchase the Company’s common stock under the Company’s 2005 Equity Compensation Plan (the “2005 Plan”). For the three months ended June 30, 2014, the Company did not grant any options to purchase the Company’s common stock under the 2005 Plan. During the three months ended June 30, 2015, no options to purchase shares of common stock were cancelled or expired, and no shares of common stock were issued upon exercise of outstanding stock options under the 2005 Plan. During the three months ended June 30, 2014, options to purchase 1,000 shares of common stock were cancelled or expired, and 1,000 shares of common stock were issued upon exercise of outstanding stock options under the 2005 Plan. As of June 30, 2015, the Company had granted options to purchase 62,000 shares of the Company’s common stock that are unvested and that will result in $177,000 of compensation expense in future periods if fully vested. Information regarding all stock options outstanding under the 2005 Plan as of June 30, 2015 is as follows: OPTIONS OUTSTANDING OPTIONS EXERCISABLE Weighted- Weighted- average Weighted- Aggregate average Weighted- Aggregate Remaining average Intrinsic Remaining average Intrinsic Exercise Options Contractual Exercise Value Options Contractual Exercise Value price thousands) Life (years) Price thousands) thousands) Life (years) Price thousands) $ 1.01 79 2.61 $ 1.01 $ 79 2.61 $ 1.01 $ 1.10 50 2.75 $ 1.10 50 2.75 $ 1.10 $ 1.21 50 2.75 $ 1.21 50 2.75 $ 1.21 $ 2.20 162 3.20 $ 2.20 143 3.19 $ 2.20 $ 2.42 10 3.27 $ 2.42 10 3.27 $ 2.42 $ 5.31 93 4.10 $ 5.31 50 4.10 $ 5.31 444 3.19 $ 2.41 $ 336 382 3.08 $ 2.09 $ 329 The aggregate intrinsic value in the preceding table represents the difference between the Company’s closing stock price and the exercise price of each in-the-money option on the last trading day of the period presented, which was June 30, 2015. |
6. Income Taxes
6. Income Taxes | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The Company follows the guidance in ASC 740, Accounting for Uncertainty in Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at the end of each period, based on enacted laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Any liability for actual taxes to taxing authorities is recorded as income tax liability. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against such assets where management is unable to conclude more likely than not that such asset will be realized. As of June 30, 2015 and March 31, 2015, the Company recognized a valuation allowance equal to 100% of the net deferred tax asset balance and the Company has no unrecognized tax benefits related to uncertain tax positions. |
7. Related Party Transactions
7. Related Party Transactions | 3 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Party Transactions See Note 6 “Related Party Transactions” of Form 10-K for the year ended March 31, 2015, as filed with the SEC on June 29, 2015 for a detailed discussion of related party transactions. Additionally, see Note 9 “Subsequent Events” to our financial statements for discussion related to debt and equity transactions involving our officers, directors and 5% or greater shareholders. |
8. Stockholders' Equity
8. Stockholders' Equity | 3 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Stockholders’ Equity A summary of the Company’s common stock warrant activity for the period from April 1, 2015 through June 30, 2015 is presented below: Warrants Outstanding (in thousands) Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, April 1, 2015 567 $ 9.38 $ 45 Granted - - Exercised - - Expired (121 ) 25.00 Outstanding, June 30, 2015 446 $ 6.51 $ 25 As of June 30, 2015, the Company had the following outstanding warrants to purchase its common stock: Weighted Average Warrants Outstanding (in thousands) Exercise Price Remaining Life (years) 50 $ 2.10 3.27 394 $ 7.00 1.78 2 $ 20.00 0.22 446 $ 6.51 1.94 Preferred Stock and Preferred Stock Warrants As discussed in Note 4, the Company also issued a warrant that entitles, but does not obligate Scotts Miracle-Gro to purchase a number of shares of common stock that, on a fully diluted basis, constitute 80% of the Company’s outstanding capital stock. The warrant on the Series B Convertible Preferred Stock was accounted for as a liability at its estimated fair value. The warrant liability will be re-measured to fair value at the end of each reporting period until it is exercised or expires. The tables above exclude the warrant issued to Scotts Miracle-Gro because the warrant is not issuable in any certain number of shares, as discussed above. As described in Note 4 above, on April 22, 2013 the Company issued 2,649,007 shares of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share to an affiliate of Scotts Miracle-Gro as part of the Scotts Miracle-Gro Transaction. The Securities Purchase Agreement, Certificates of Designations for the Series B Preferred Stock, Form of Warrant, Indemnification Agreement, Investor’s Rights Agreement and Voting Agreement have been filed as exhibits to a Current Report on Form 8-K that was filed with the SEC on April 23, 2013. The Series B Preferred Stock is convertible into 2,649,007 shares of common stock ($4.0 million divided by a conversion price of $1.51 per share). The Series B Convertible Preferred Stock bears a cumulative annual dividend of 8.0%, payable in shares of the Company’s common stock at a conversion price of $1.51 per share (subject to customary anti-dilution rights, as described in the Series B Convertible Preferred Stock Certificates of Designations). As of June 30, 2015, based on the number of shares issuable to Scotts Miracle-Gro the Company has accrued $688,000 for the stock dividend. For additional details regarding the Series B Convertible Preferred Stock, see “Note 4 – Scotts Miracle-Gro Transaction” above. |
9. Subsequent Events
9. Subsequent Events | 3 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 9. Subsequent Events On July 6, 2015, AeroGrow entered into a Term Loan Agreement (“Term Loan”) in the principal amount of up to $6.0 million with Scotts Miracle-Gro. The proceeds will be made available as needed in three advances of up to $2.0 million, $2.5 million, and $1.5 million in July, August, and September of 2015, respectively, with a due date of April 15, 2016. The funding will provide general working capital and will be used for the purpose of acquiring inventory to support anticipated growth as the Company expands its retail and its direct-to-consumer sales channels. The Term Loan Agreement is secured by a lien on the assets of the Company. Interest will be charged at the stated rate of 10% per annum, but will be paid in shares of AeroGrow common stock, valued at a price per share equal to the Series B Preferred Conversion Price (which was previously issued in April 2013 to Scotts Miracle-Gro) on the date the Term Loan is paid in full. The first advance of $2.0 million noted above was borrowed in July 2015. The unpaid principal balance of the Term Loan, through and including the Interest Payment Trigger Date (as defined in the Term Loan Agreement), bears interest at a stated rate of 10% per annum, but is payable in in shares of the Company’s common stock valued at a price per share equal to the conversion price of the Series B Convertible Preferred Stock (which was issued to Scotts Miracle-Gro in April 2013) on the business day immediately prior to the Interest Payment Trigger Date. Accrued and unpaid interest on the Term Loan is due and payable within thirty (30) days after the Interest Payment Trigger Date, but may be prepaid from time to time, in whole or in part, in an amount greater than or equal to $25,000, without penalty or premium. Amounts repaid or prepaid in respect of the Term Loan may not be reborrowed. The Term Loan Agreement has been filed as an exhibit to a Current Report on Form 8-K filed with the SEC on July 10, 2015. The interest will be accrued at the stated rate of 10% and fluctuations in the fair value of the common shares to be issued will be recorded below net income. On July 14, 2015, AeroGrow issued 799,553 shares of common stock to SMG Growing Media, a wholly owned subsidiary of Scotts Miracle-Gro, pursuant to the Technology Licensing Agreement, Brand License and the Certificate of Designation of Series B Convertible Preferred Stock. As previously disclosed in a Current Report on Form 8-K filed with the SEC on April 23, 2013, payments to SMG Growing Media under the Technology Licensing Agreement, Brand License and the Certificate of Designation of Series B Convertible Preferred Stock are made in the Company’s common stock, based upon the conversion price of the Series B Preferred Stock. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that a change in the Company’s estimates could occur in the near term as additional or new information becomes available. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Share of Common Stock The Company computes net income (loss) per share of common stock in accordance with Accounting Standards Codification (“ASC”) 260. ASC 260 requires companies with complex capital structures to present basic and diluted earnings per share (“EPS”). Basic EPS is measured as the income or loss available to common stockholders divided by the weighted average shares of common stock outstanding for the period. Diluted EPS is similar to basic EPS, but presents the dilutive effect on a per share basis of common stock equivalents (e.g., convertible securities, options, and warrants) as if such securities had been converted into common stock at the beginning of the periods presented. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Employee stock options to purchase approximately 444,000 shares were outstanding and warrants to purchase approximately 446,000 common stock were outstanding but were not included in the computation of diluted net income per share because the effect of including such shares would have been anti-dilutive in the periods presented. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk ASC 825-10-50-20 Customers: For the three months ended June 30, 2015, one customer, Amazon.com, represented 38.5% of the Company’s net revenue. For the three months ended June 30, 2014, two customers, The Home Depot and Amazon.com, represented 19.4% and 14.3% of the Company’s net revenue, respectively. Suppliers: For the three months ended June 30, 2015, the Company purchased inventories and other inventory-related items from one supplier totaling $344,000, representing 31.5% of cost of revenue. For the three months ended June 30, 2014, the Company purchased inventories and other inventory-related items from two suppliers totaling $461,000 and $175,000, representing 40.3% and 15.3% of cost of revenue, respectively. The Company’s primary contract manufacturers are located in China. As a result, the Company may be subject to political, currency, regulatory, transportation/shipping and weather/natural disaster risks. Although the Company believes alternate sources of manufacturing could be obtained, the risk of an interruption in product sourcing could have an adverse impact on operations. Accounts Receivable: As of June 30, 2015, the Company had two customers, Amazon.com and Costco, that represented 52.0% and 21.6% of the Company’s outstanding accounts receivable, respectively. As of March 31, 2015, the Company had five customers, Amazon.com, Wal-Mart Stores, QVC, Costco.com and Wal-Mart.com, that represented 54.2%, 21.1%, 14.8%, 14.6% and 11.1%, respectively, of outstanding accounts receivable. The Company believes that all receivables from these customers are collectible. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company follows the guidance in ASC 820, Fair Value Measurements and Disclosures Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, i.e., exit price, in an orderly transaction between market participants. ASC 820 also provides a hierarchy for determining fair value, which emphasizes the use of observable market data whenever available. The three broad levels defined by the hierarchy are as follows, with the highest priority given to Level 1 as these are the most reliable, and the lowest priority given to Level 3. Level 1 – Quoted prices in active markets for identical assets. Level 2 – Quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, including model-derived valuations. Level 3 – Unobservable inputs that are supported by little or no market activity. The carrying value of financial instruments including cash, receivables and accounts payable and accrued expenses, approximates their fair value at June 30, 2015 and March 31, 2015 due to the relatively short-term nature of these instruments. The Company has three liabilities for which the carrying value is determined by Level 3 inputs: (1) Notes payable – related party; (2) sale of intellectual property liability; and (3) derivative warrant liability. As discussed below in Notes 3 and 4, each of these liabilities was incurred in conjunction with the Company’s strategic alliance with Scotts Miracle-Gro. As of June 30, 2015 and March 31, 2015, the fair value of the Company's sale of the note payable and intellectual property liability were estimated using the discounted cash flow method, which is based on expected future cash flows, discounted to present value using a discount rate of 15%. The Company also issued a derivative warrant liability that entitles, but does not obligate, Scotts Miracle-Gro to purchase a number of shares of common stock that, on a fully diluted basis, would constitute 80% of the Company’s outstanding capital stock. The Company accounts for the warrant as a liability and measures the value of the warrant using the Monte Carlo simulation model as of the end of each quarterly reporting period until the warrant is exercised or expires. As of June 30, 2015 and March 31, 2015, the fair value of the warrant was $2.0 million and $1.7 million, respectively. As of June 30, 2015, the Company did not have any financial assets or liabilities that were measured at fair value on a recurring basis subsequent to initial recognition, except for the derivative warrant liability. The table below summarizes the fair value and carry value of each Level 3 category liability: June 30, 2015 (in thousands) March 31, 2015 (in thousands) Fair Value Carry Value Fair Value Carry Value Liabilities Notes payable-related party $ - $ - $ 207 $ 207 Derivative warrant liability 1,952 1,952 1,688 1,688 Sale of intellectual property liability 138 196 145 208 Total $ 2,090 $ 2,148 $ 2,040 $ 2,103 |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts The Company sells its products to retailers and directly to consumers. Consumer transactions are primarily paid by credit card. Retailer sales terms vary by customer, but generally range from net 30 days to net 60 days. Accounts receivable are reported at net realizable value and net of the allowance for doubtful accounts. The Company uses the allowance method to account for uncollectible accounts receivable. The Company's allowance estimate is based on a review of the current status of trade accounts receivable, which resulted in an allowance of $8,000 and $10,000 at June 30, 2015 and March 31, 2015, respectively. Other Receivables In conjunction with the Company’s processing of credit card transactions for its direct-to-consumer sales activities and as security with respect to the Company’s performance for credit card refunds and charge backs, the Company is required to maintain a cash reserve with Litle and Company, the Company’s credit card processor. This reserve is equal to 5% of the credit card sales processed during the previous six months. As of June 30, 2015 and March 31, 2015, the balance in this reserve account was $140,000 and $214,000, respectively. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Production Costs The Company expenses all production costs related to advertising, including print, television, and radio advertisements when the advertisement has been broadcast or otherwise distributed. In contrast, the Company records media and marketing costs related to its direct-to-consumer advertisements, inclusive of postage and printing costs incurred in conjunction with mailings of direct-response catalogues, and related direct-response advertising costs, in accordance with ASC 340-20 Capitalized Advertising Costs As the Company has continued to expand its retail distribution channel, the Company has expanded its advertising to online gateway and portal advertising, as well as placement in third party catalogues. Advertising expense for the three months ended June 30, 2015 and June 30, 2014, were as follows: Three Months Ended June 30, (in thousands) 2015 2014 Direct-to-consumer $ 137 $ 105 Retail - 8 Other $ 13 $ 18 Total advertising expense $ 150 $ 131 As of June 30, 2015 and March 31, 2015, the Company deferred $11,000 and $48,000, respectively, related to such media and advertising costs which include the catalogue cost described above. The costs are included in the prepaid expenses and other line of the balance sheet. |
Inventory, Policy [Policy Text Block] | Inventory Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or market. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. June 30, March 31, 2015 (in thousands) 2015 (in thousands) Finished goods $ 1,477 $ 1,919 Raw materials 672 684 $ 2,149 $ 2,603 The Company determines an inventory obsolescence reserve based on management’s historical experience and establishes reserves against inventory according to the age of the product. As of June 30, 2015 and March 31, 2015, the Company had reserved $267,000 for inventory obsolescence. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue from product sales, net of estimated returns, when persuasive evidence of a sale exists, including the following; (i) a product is shipped under an agreement with a customer; (ii) the risk of loss and title has passed to the customer; (iii) the fee is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. The Company records estimated reductions to revenue for customer and distributor programs and incentive offerings, including promotions, rebates, and other volume-based incentives. Certain incentive programs require the Company to estimate the number of customers who will actually redeem the incentive based on historical industry experience. As of June 30, 2015 and March 31, 2015, the Company had accrued $67,000 and $110,000, respectively, as its estimate for the foregoing deductions and allowances. These expenses are included in the accrued expenses line of the balance sheets. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty and Return Reserves The Company records warranty liabilities at the time of sale for the estimated costs that may be incurred under its basic warranty program. The specific warranty terms and conditions vary depending upon the product sold, but generally include technical support, repair parts, and labor for periods up to one year. Factors that affect the Company’s warranty liability include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and cost per claim to satisfy the Company’s warranty obligation. Based upon the foregoing, the Company has recorded a provision for potential future warranty costs of $90,000 and $58,000 as of June 30, 2015 and March 31, 2015, respectively. The Company reserves for known and potential returns from customers and associated refunds or credits related to such returns based upon historical experience. In certain cases, retailer customers are provided a fixed allowance, usually in the 1% to 2% range, to cover returned goods and this allowance is deducted from payments made to us by such customers. As of June 30, 2015 and March 31, 2015, the Company has recorded a reserve for customer returns of $18,000 and $119,000, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management does not believe the adoption of ASU 2015-11 will have an impact on the Company's financial position or results of operations. |
2. Liquidity and Basis of Pre16
2. Liquidity and Basis of Presentation (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The table below summarizes the fair value and carry value of each Level 3 category liability: June 30, 2015 (in thousands) March 31, 2015 (in thousands) Fair Value Carry Value Fair Value Carry Value Liabilities Notes payable-related party $ - $ - $ 207 $ 207 Derivative warrant liability 1,952 1,952 1,688 1,688 Sale of intellectual property liability 138 196 145 208 Total $ 2,090 $ 2,148 $ 2,040 $ 2,103 |
Schedule of Advertising Expenses [Table Text Block] | Advertising expense for the three months ended June 30, 2015 and June 30, 2014, were as follows: Three Months Ended June 30, (in thousands) 2015 2014 Direct-to-consumer $ 137 $ 105 Retail - 8 Other $ 13 $ 18 Total advertising expense $ 150 $ 131 |
Schedule of Inventory, Current [Table Text Block] | Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or market. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. June 30, March 31, 2015 (in thousands) 2015 (in thousands) Finished goods $ 1,477 $ 1,919 Raw materials 672 684 $ 2,149 $ 2,603 |
3. Notes Payable, Long Term D17
3. Notes Payable, Long Term Debt and Current Portion - Long Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of June 30, 2015 and March 31, 2015, the outstanding balance of the Company’s note payable and debt, including accrued interest, is as follows: June 30, 2015 March 31, 2015 (in thousands) (in thousands) Notes Payable –related party $ - $ 207 Derivative warrant liability (see Note 4) 1,952 1,688 Sale of intellectual property liability (see Note 4) 196 208 Total debt 2,148 2,103 Less notes payable and current portion – long term debt 2,148 2,103 Long term debt $ - $ - |
5. Equity Compensation Plans 18
5. Equity Compensation Plans and Employee Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Information regarding all stock options outstanding under the 2005 Plan as of June 30, 2015 is as follows: OPTIONS OUTSTANDING OPTIONS EXERCISABLE Weighted- Weighted- average Weighted- Aggregate average Weighted- Aggregate Remaining average Intrinsic Remaining average Intrinsic Exercise Options Contractual Exercise Value Options Contractual Exercise Value price thousands) Life (years) Price thousands) thousands) Life (years) Price thousands) $ 1.01 79 2.61 $ 1.01 $ 79 2.61 $ 1.01 $ 1.10 50 2.75 $ 1.10 50 2.75 $ 1.10 $ 1.21 50 2.75 $ 1.21 50 2.75 $ 1.21 $ 2.20 162 3.20 $ 2.20 143 3.19 $ 2.20 $ 2.42 10 3.27 $ 2.42 10 3.27 $ 2.42 $ 5.31 93 4.10 $ 5.31 50 4.10 $ 5.31 444 3.19 $ 2.41 $ 336 382 3.08 $ 2.09 $ 329 |
8. Stockholders' Equity (Tables
8. Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | A summary of the Company’s common stock warrant activity for the period from April 1, 2015 through June 30, 2015 is presented below: Warrants Outstanding (in thousands) Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding, April 1, 2015 567 $ 9.38 $ 45 Granted - - Exercised - - Expired (121 ) 25.00 Outstanding, June 30, 2015 446 $ 6.51 $ 25 |
Schedule of Stockholders Equity [Table Text Block] | As of June 30, 2015, the Company had the following outstanding warrants to purchase its common stock: Weighted Average Warrants Outstanding (in thousands) Exercise Price Remaining Life (years) 50 $ 2.10 3.27 394 $ 7.00 1.78 2 $ 20.00 0.22 446 $ 6.51 1.94 |
2. Liquidity and Basis of Pre20
2. Liquidity and Basis of Presentation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Apr. 22, 2013 | |
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Revenue, Percentage | 70.50% | |||
Cash, FDIC Insured Amount | $ 250,000 | |||
Cost of Revenue | $ 1,088,000 | $ 1,144,000 | ||
Fair Value Inputs, Discount Rate | 15.00% | 15.00% | ||
Derivative Liability, Current | $ 1,952,000 | $ 1,688,000 | ||
Allowance for Doubtful Accounts Receivable, Current | $ 8,000 | 10,000 | ||
Other receivable, reserve percentage of credit card sales | 5.00% | |||
Other Receivables, Net, Current | $ 140,000 | 214,000 | ||
Deferred Advertising Costs | 11,000 | 48,000 | ||
Inventory Valuation Reserves | 267,000 | 267,000 | ||
Other Accrued Liabilities | 67,000 | 110,000 | ||
Provision for Future Warranty Costs | 90,000 | 58,000 | ||
Allowance for Sales Returns [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Customer Refund Liability, Current | $ 18,000 | $ 119,000 | ||
Employee Stock Option [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 444,000 | |||
Warrant [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 446,000 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Major Customer 1 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 38.50% | 19.40% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Major Customer 2 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 14.30% | |||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Major Supplier 1 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 31.50% | 40.30% | ||
Cost of Revenue | $ 344,000 | $ 461,000 | ||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Major Supplier 2 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 15.30% | |||
Cost of Revenue | $ 175,000 | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Major Customer 1 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 52.00% | 54.20% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Major Customer 2 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 21.60% | 21.10% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Major Customer 3 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 14.80% | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Major Customer 4 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 14.60% | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Major Customer 5 [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Concentration Risk, Percentage | 11.10% | |||
Maximum [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Returns Reserves Allowance, Percentage | 2.00% | |||
Maximum [Member] | Scotts Miracle-Gro Company [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 80.00% | |||
Minimum [Member] | ||||
2. Liquidity and Basis of Presentation (Details) [Line Items] | ||||
Returns Reserves Allowance, Percentage | 1.00% |
2. Liquidity and Basis of Pre21
2. Liquidity and Basis of Presentation (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Liabilities | ||
Notes payable-related party | $ 0 | $ 207 |
Derivative warrant liability | 1,952 | 1,688 |
Sale of intellectual property liability | (2) | (2) |
Total | 2,148 | 2,103 |
Estimate of Fair Value Measurement [Member] | ||
Liabilities | ||
Notes payable-related party | 0 | 207 |
Derivative warrant liability | 1,952 | 1,688 |
Sale of intellectual property liability | 138 | 145 |
Total | 2,090 | 2,040 |
Reported Value Measurement [Member] | ||
Liabilities | ||
Notes payable-related party | 0 | 207 |
Derivative warrant liability | 1,952 | 1,688 |
Sale of intellectual property liability | 196 | 208 |
Total | $ 2,148 | $ 2,103 |
2. Liquidity and Basis of Pre22
2. Liquidity and Basis of Presentation (Details) - Schedule of Advertising Expenses - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
2. Liquidity and Basis of Presentation (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | $ 150 | $ 131 |
Direct-to-consumer [Member] | ||
2. Liquidity and Basis of Presentation (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | 137 | 105 |
Retail [Member] | ||
2. Liquidity and Basis of Presentation (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | 0 | 8 |
Other Advertising [Member] | ||
2. Liquidity and Basis of Presentation (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | $ 13 | $ 18 |
2. Liquidity and Basis of Pre23
2. Liquidity and Basis of Presentation (Details) - Schedule of Inventory - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Schedule of Inventory [Abstract] | ||
Finished goods | $ 1,477 | $ 1,919 |
Raw materials | 672 | 684 |
$ 2,149 | $ 2,603 |
3. Notes Payable, Long Term D24
3. Notes Payable, Long Term Debt and Current Portion - Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Debt Disclosure [Abstract] | ||
Derivative Liability, Current | $ 1,952 | $ 1,688 |
Debt, Current | $ 196 | $ 208 |
3. Notes Payable, Long Term D25
3. Notes Payable, Long Term Debt and Current Portion - Long Term Debt (Details) - Schedule of Debt - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Schedule of Debt [Abstract] | ||
Notes Payable –related party | $ 0 | $ 207 |
Derivative warrant liability (see Note 4) | 1,952 | 1,688 |
Sale of intellectual property liability (see Note 4) | 196 | 208 |
Total debt | 2,148 | 2,103 |
Less notes payable and current portion – long term debt | 2,148 | 2,103 |
Long term debt | $ 0 | $ 0 |
4. Scotts Miracle-Gro Transac26
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) - USD ($) | Apr. 22, 2013 | Jun. 30, 2015 | Mar. 31, 2015 |
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Derivative Liability, Current | $ 1,952,000 | $ 1,688,000 | |
Scotts Miracle-Gro Company [Member] | Series B Preferred Stock [Member] | |||
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Stock Issued During Period, Shares, New Issues (in Shares) | 2,649,007 | ||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.001 | ||
Stock Issued During Period, Value, New Issues | $ 4,000,000 | ||
Proceeds from Issuance of Convertible Preferred Stock | $ 3,800,000 | ||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 2,649,007 | ||
Preferred Stock, Convertible, Conversion Price (in Dollars per share) | $ 1.51 | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount (in Dollars per share) | $ 1.51 | ||
Convertible Preferred Stock, Terms of Conversion | The Series B Convertible Preferred Stock automatically converts into the Company’s common stock: (i) upon the affirmative election of the holders of at least a majority of the then outstanding shares of the Series B Convertible Preferred Stock voting together as a single class on an as-if-converted to common stock basis; or (ii) if, at the date of exercise in whole or in part of the Warrant, the holder (or holders) of the Series B Convertible Preferred Stock own 50.1% of the issued and the Company’s then-outstanding common stock, giving effect to the issuance of shares of common stock in connection with the conversion of the Series B Convertible Preferred Stock and such exercise of the Warrant. | ||
Class of Warrant or Rights, Term of Warrant or Rights | 5 years | ||
Class of Warrant or Rights, Exercise Price, Description | (a) an amount equal to (i) 1.34 times the trailing twelve months “Net Sales” (which includes sales of the Company’s products by Scotts Miracle-Gro and its affiliates) minus (ii) “Debt Outstanding” net of cash (as such terms are defined in the Warrant),by(b) the total shares of capital stock outstanding, including outstanding in-the-money options and warrants, but not the Warrant contemplated in the private offering. | ||
Main Power Promissory Note [Member] | |||
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Repayments of Debt | $ 950,000 | ||
Maximum [Member] | Scotts Miracle-Gro Company [Member] | |||
4. Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 80.00% |
5. Equity Compensation Plans 27
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Equity Compensation Plan (2005 Plan) [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
5. Equity Compensation Plans and Employee Benefit Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 0 | 1,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 1,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 62,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $ 177,000 |
5. Equity Compensation Plans 28
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total | Total |
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Options Outstanding (in Shares) | 444 | 444 |
Options Outstanding, Weighted-average Remaining Contractual Life | 3 years 69 days | |
Options Outstanding, Weighted-average Exercise Price | $ 2.41 | $ 2.41 |
Options Outstanding, Aggregate Intrinsic Value (in Dollars) | $ 336 | $ 336 |
Options Exercisable (in Shares) | 382 | 382 |
Options Exercisable, Weighted-average Remaining Contractual Life | 3 years 29 days | |
Options Exercisable, Weighted-average Exercise Price | $ 2.09 | $ 2.09 |
Options Exercisable, Aggregate Intrinsic Value (in Dollars) | $ 329 | $ 329 |
Options Exercise Price $1.01 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 1.01 | $ 1.01 |
Options Outstanding (in Shares) | 79 | 79 |
Options Outstanding, Weighted-average Remaining Contractual Life | 2 years 222 days | |
Options Outstanding, Weighted-average Exercise Price | $ 1.01 | $ 1.01 |
Options Exercisable (in Shares) | 79 | 79 |
Options Exercisable, Weighted-average Remaining Contractual Life | 2 years 222 days | |
Options Exercisable, Weighted-average Exercise Price | $ 1.01 | $ 1.01 |
Options Exercise Price $1.10 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 1.10 | $ 1.10 |
Options Outstanding (in Shares) | 50 | 50 |
Options Outstanding, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Options Outstanding, Weighted-average Exercise Price | $ 1.10 | $ 1.10 |
Options Exercisable (in Shares) | 50 | 50 |
Options Exercisable, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Options Exercisable, Weighted-average Exercise Price | $ 1.10 | $ 1.10 |
Options Exercise Price $1.21 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 1.21 | $ 1.21 |
Options Outstanding (in Shares) | 50 | 50 |
Options Outstanding, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Options Outstanding, Weighted-average Exercise Price | $ 1.21 | $ 1.21 |
Options Exercisable (in Shares) | 50 | 50 |
Options Exercisable, Weighted-average Remaining Contractual Life | 2 years 9 months | |
Options Exercisable, Weighted-average Exercise Price | $ 1.21 | $ 1.21 |
Options Exercise Price $2.20 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 2.20 | $ 2.20 |
Options Outstanding (in Shares) | 162 | 162 |
Options Outstanding, Weighted-average Remaining Contractual Life | 3 years 73 days | |
Options Outstanding, Weighted-average Exercise Price | $ 2.20 | $ 2.20 |
Options Exercisable (in Shares) | 143 | 143 |
Options Exercisable, Weighted-average Remaining Contractual Life | 3 years 69 days | |
Options Exercisable, Weighted-average Exercise Price | $ 2.20 | $ 2.20 |
Options Exercise Price $2.42 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 2.42 | $ 2.42 |
Options Outstanding (in Shares) | 10 | 10 |
Options Outstanding, Weighted-average Remaining Contractual Life | 3 years 98 days | |
Options Outstanding, Weighted-average Exercise Price | $ 2.42 | $ 2.42 |
Options Exercisable (in Shares) | 10 | 10 |
Options Exercisable, Weighted-average Remaining Contractual Life | 3 years 98 days | |
Options Exercisable, Weighted-average Exercise Price | $ 2.42 | $ 2.42 |
Options Exercise Price $5.31 [Member] | ||
5. Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ||
Exercise Price | $ 5.31 | $ 5.31 |
Options Outstanding (in Shares) | 93 | 93 |
Options Outstanding, Weighted-average Remaining Contractual Life | 4 years 36 days | |
Options Outstanding, Weighted-average Exercise Price | $ 5.31 | $ 5.31 |
Options Exercisable (in Shares) | 50 | 50 |
Options Exercisable, Weighted-average Remaining Contractual Life | 4 years 36 days | |
Options Exercisable, Weighted-average Exercise Price | $ 5.31 | $ 5.31 |
6. Income Taxes (Details)
6. Income Taxes (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 0 | $ 0 |
7. Related Party Transactions (
7. Related Party Transactions (Details) | 1 Months Ended |
Jul. 31, 2015 | |
Subsequent Event [Member] | |
7. Related Party Transactions (Details) [Line Items] | |
Related Party Transaction, Description of Transaction | Additionally, see Note 9 “Subsequent Events” to our financial statements for discussion related to debt and equity transactions involving our officers, directors and 5% or greater shareholders. |
8. Stockholders' Equity (Detail
8. Stockholders' Equity (Details) - USD ($) | Apr. 22, 2013 | Jun. 30, 2015 | Mar. 31, 2015 |
8. Stockholders' Equity (Details) [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Scotts Miracle-Gro Company [Member] | |||
8. Stockholders' Equity (Details) [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | ||
Scotts Miracle-Gro Company [Member] | Series B Preferred Stock [Member] | |||
8. Stockholders' Equity (Details) [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 2,649,007 | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,649,007 | ||
Preferred Stock, Convertible, Conversion Price | $ 1.51 | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||
Dividends Payable | $ 688,000 | ||
Maximum [Member] | Scotts Miracle-Gro Company [Member] | |||
8. Stockholders' Equity (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 80.00% |
8. Stockholders' Equity (Deta32
8. Stockholders' Equity (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - 3 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | |
Warrants Outstanding | 567 |
Warrants Outstanding, Weighted Average Exercise Price | $ 9.38 |
Warrants Outstanding, Aggregate Intrinsic Value | $ 45 |
Granted | 0 |
Granted | $ 0 |
Exercised | 0 |
Exercised | $ 0 |
Expired | (121) |
Expired | $ 25 |
Warrants Outstanding | 446 |
Warrants Outstanding, Weighted Average Exercise Price | $ 6.51 |
Warrants Outstanding, Aggregate Intrinsic Value | $ 25 |
8. Stockholders' Equity (Deta33
8. Stockholders' Equity (Details) - Schedule of Warrants Outstanding - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
8. Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | ||
Warrants Outstanding | 446 | 567 |
Weighted Average Exercise Price | $ 6.51 | $ 9.38 |
Weighted Average Remaing Life (Yrs) | 1 year 343 days | |
Warrants Exercisable at $2.10 [Member] | ||
8. Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | ||
Warrants Outstanding | 50 | |
Weighted Average Exercise Price | $ 2.10 | |
Weighted Average Remaing Life (Yrs) | 3 years 98 days | |
Warrants Exercisable at $7.00 [Member] | ||
8. Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | ||
Warrants Outstanding | 394 | |
Weighted Average Exercise Price | $ 7 | |
Weighted Average Remaing Life (Yrs) | 1 year 284 days | |
Warrants exercisable at $20.00 [Member] | ||
8. Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | ||
Warrants Outstanding | 2 | |
Weighted Average Exercise Price | $ 20 | |
Weighted Average Remaing Life (Yrs) | 80 days |
9. Subsequent Events (Details)
9. Subsequent Events (Details) - Scotts Miracle-Gro Company [Member] - Subsequent Event [Member] | Jul. 14, 2015shares | Jul. 06, 2015USD ($) | Jul. 31, 2015USD ($) |
9. Subsequent Events (Details) [Line Items] | |||
Stock Issued During Period, Shares, Other (in Shares) | shares | 799,553 | ||
Notes Payable, Other Payables [Member] | |||
9. Subsequent Events (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 6,000,000 | ||
Number of Advances | 3 | ||
Debt Instrument, Collateral | secured by a lien on the assets of the Company | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Proceeds from Notes Payable | $ 2,000,000 | ||
Debt Instrument, Interest Rate Terms | bears interest at a stated rate of 10% per annum, but is payable in in shares of the Company’s common stock valued at a price per share equal to the conversion price of the Series B Convertible Preferred Stock (which was issued to Scotts Miracle-Gro in April 2013) on the business day immediately prior to the Interest Payment Trigger Date. | ||
Debt Instrument, Maturity Date, Description | due and payable within thirty (30) days after the Interest Payment Trigger Date, but may be prepaid from time to time, in whole or in part, in an amount greater than or equal to $25,000, without penalty or premium. | ||
Debt Instrument, Periodic Payment, Principal | $ 25,000 | ||
Debt Instrument, Advance #1 [Member] | Notes Payable, Other Payables [Member] | |||
9. Subsequent Events (Details) [Line Items] | |||
Debt Instrument, Face Amount | 2,000,000 | ||
Debt Instrument, Advance #2 [Member] | Notes Payable, Other Payables [Member] | |||
9. Subsequent Events (Details) [Line Items] | |||
Debt Instrument, Face Amount | 2,500,000 | ||
Debt Instrument, Advance #3 [Member] | Notes Payable, Other Payables [Member] | |||
9. Subsequent Events (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 1,500,000 |