Sonoma Pharmaceuticals (SNOA) 10-Q/A 17 Nov 20 2021 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2020	Nov. 09, 2020
Cover [Abstract]
Entity Registrant Name	Sonoma Pharmaceuticals, Inc.
Entity Central Index Key	0001367083
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2020
Amendment Flag	true
Amendment Description	Restatement of financial statements
Current Fiscal Year End Date	--03-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		2,043,075
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive data current	Yes
Entity File Number	001-33216
Entity Incorporation State Country Code	DE
Entity Shell company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 4,551	$ 3,691	$ 4,284	$ 3,689
Accounts receivable, net	4,774	4,062
Inventories, net	4,193	2,192
Prepaid expenses and other current assets	2,814	2,256
Current portion of deferred consideration, net of discount	188	182
Total current assets	16,520	12,383
Operating lease right-of-use assets	343	963
Property and equipment, net	372	365
Deferred consideration, net of discount, less current portion	779	786
Other assets	69	64
Total assets	18,083	14,561
Current liabilities:
Accounts payable	4,133	2,086
Accrued expenses and other current liabilities	918	1,774
Deferred revenue	150	228
Deferred revenue Invekra	46	45
Operating lease liabilities	135	251
Current portion of long-term debt	265	481
Total current liabilities	5,647	4,865
Operating lease liabilities - non-current	221	746
Long-term deferred revenue Invekra	240	245
Long-term debt	1,310	0
Total liabilities	7,418	5,856
Commitments and Contingencies (Note 7)
Stockholders' Equity
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	0	0
Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	2	2
Additional paid-in capital	188,112	186,559
Accumulated deficit	(172,006)	(172,246)
Accumulated other comprehensive loss	(5,443)	(5,610)
Total stockholders' equity	10,665	8,705	$ 11,504	$ 10,489
Total liabilities and stockholders' equity	$ 18,083	$ 14,561

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Mar. 31, 2020
Statement of Financial Position [Abstract]
Convertible preferred stock par value	$ 0.0001	$ 0.0001
Convertible preferred stock shares authorized	714,286	714,286
Convertible preferred stock shares issued	0	1.55
Convertible preferred stock shares outstanding	0	1.55
Common stock par value	$ .0001	$ 0.0001
Common stock shares authorized	24,000,000	24,000,000
Common stock shares issued	1,966,958	1,777,483
Common stock shares outstanding	1,966,958	1,777,483

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenues	$ 5,767	$ 4,495
Cost of revenues	3,512	2,202
Gross profit	2,255	2,293
Operating expenses
Research and development	476	338
Selling, general and administrative	2,444	3,726
Total operating expenses	2,920	4,064
Income (Loss) from operations	(665)	(1,771)
Interest expense	(2)	(10)
Interest income	2	42
Other income (expense), net	(121)	(59)
Gain on sale of assets	77	2,472
Income from continuing operations	(709)	674
Income from discontinued operations (Note 5)	949	41
Net income	$ 240	$ 715
Net income per share: basic
Continuing operations	$ (0.39)	$ 0.51
Discontinued operations:	0.52	0.03
Net income per share: basic	0.13	0.54
Net income per share: diluted
Continuing operations	(0.38)	0.51
Discontinued operations:	0.51	0.03
Net income per share: diluted	$ 0.13	$ 0.54
Weighted-average number of shares used in per share calculations: basic	1,839,000	1,316,000
Weighted-average number of shares used in per share calculations: diluted	1,843,000	1,336,000
Other comprehensive income
Net income	$ 240	$ 715
Foreign currency translation adjustments	167	67
Comprehensive income	$ 407	$ 782

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 240	$ 715
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	53	76
Stock-based compensation	63	292
Gain on sale of assets	(872)	0
Changes in operating assets and liabilities:
Accounts receivable	(278)	(814)
Inventories	(1,945)	73
Deferred consideration	31	35
Prepaid expenses and other current assets	(200)	41
Operating lease right-of-use assets	49	127
Accounts payable	1,660	252
Accrued expenses and other current liabilities	(947)	(90)
Operating lease liabilities	(46)	(132)
Deferred revenue	(99)	163
Net cash (used in) provided by operating activities	(2,291)	738
Cash flows from investing activities:
Purchases of property and equipment	(52)	(12)
Deposits	(4)	0
Proceeds from sale of assets	610	0
Net cash provided by (used in) investing activities	554	(12)
Cash flows from financing activities:
Proceeds from exercise of common stock purchase warrants	1,490	0
Proceeds from new debt	1,310	0
Principal payments on capital leases	0	(13)
Principal payments on long-term debt	(216)	(123)
Net cash provided by (used in) financing activities	2,584	(136)
Effect of exchange rate on cash and cash equivalents	13	5
Net decrease in cash and cash equivalents	860	595
Cash and cash equivalents, beginning of period	3,691	3,689
Cash and cash equivalents, end of period	4,551	4,284
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 2	$ 10

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Series C Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Beginning balance, shares at Mar. 31, 2019	2	1,316,335
Beginning balance, value at Mar. 31, 2019		$ 2	$ 184,074	$ (169,238)	$ (4,349)	$ 10,489
Cumulative adjustment resulting from adoption of ASU				(59)		(59)
Stock based compensation related to issuance of common stock restricted stock grants, shares		835
Stock based compensation related to issuance of common stock restricted stock grants, value			20			20
Stock-based compensation expense, net of forfeitures			272			272
Foreign currency translation adjustment					67	67
Net income				715		715
Ending balance, shares at Jun. 30, 2019	2	1,317,170
Ending balance, value at Jun. 30, 2019		$ 2	184,366	(168,582)	(4,282)	11,504
Beginning balance, shares at Mar. 31, 2020	2	1,777,483
Beginning balance, value at Mar. 31, 2020		$ 2	186,559	(172,246)	(5,610)	8,705
Stock based compensation related to issuance of common stock restricted stock grants, shares		3,086
Stock based compensation related to issuance of common stock restricted stock grants, value			18			18
Stock-based compensation expense, net of forfeitures			45			45
Issuance of common stock due to warrant exercises, shares		169,167
Issuance of common stock due to warrant exercises, value			1,490			1,490
Conversion of Series C convertible preferred stock into common stock, shares	(2)	17,222
Conversion of Series C convertible preferred stock into common stock, value
Foreign currency translation adjustment					167	167
Net income				240		240
Ending balance, shares at Jun. 30, 2020	0	1,966,958
Ending balance, value at Jun. 30, 2020		$ 2	$ 188,112	$ (172,006)	$ (5,443)	$ 10,665

1. Organization and Recent Deve

1. Organization and Recent Developments	3 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Recent Developments	Note 1. Organization and Recent Developments Organization Sonoma Pharmaceuticals, Inc. (the “Company”) was incorporated under the laws of the State of California in April 1999 and was reincorporated under the laws of the State of Delaware in December 2006. The Company’s principal office was moved to Woodstock, Georgia from Petaluma, California in June 2020. The Company is a global healthcare leader for developing and producing stabilized hypochlorous acid (“HOCl”) products for a wide range of applications, including wound care, animal health care, eye care, oral care and dermatological conditions. The Company’s products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of HOCl show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. The Company’s stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The Company sells its products either directly or via partners in 53 countries worldwide. Impact of Coronavirus The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the pharmaceutical industry. The COVID-19 outbreak, which the World Health Organization has classified as a pandemic, has prompted governments and regulatory bodies throughout the world to enact broad precautionary measures, including “stay-at-home” orders, restrictions on the performance of “non-essential” services, public gatherings and travel. Health systems, including key markets where the Company operates, have been, or may be, overwhelmed with high volumes of patients suffering from COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, access to capital markets, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of June 30, 2020 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory obsolescence, and supplier agreements. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. Despite the Company’s efforts, the ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. Reverse Stock Split Effective June 19, 2019, the Company effected a reverse stock split of its common stock, par value $0.0001 per share. Every nine shares of common stock were reclassified and combined into one share of common stock. No fractional shares were issued as a result of the reverse stock split. Instead, each resulting fractional share of common stock was down to one whole share and each fractional share settled with cash. The reverse stock split reduced the number of shares of the Company’s common stock outstanding from 11,972,328 to 1,328,891. The total number of authorized shares of common stock was not proportionally decreased and the par value per share of the common stock continues to be $0.0001. All common shares and per share amounts contained in the condensed consolidated financial statements and accompanying footnotes have been retroactively adjusted to reflect a 1-for-9 reverse stock split. Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2020 and for the three months then ended have been prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of comprehensive income (loss) for the three months ended June 30, 2020 and 2019, the cash flows for the three months ended June 30, 2020 and 2019 and the condensed consolidated statement of stockholders’ equity for the three months ended June 30, 2020 and 2019 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the consolidated financial position, operating results and cash flows for the periods presented. The results for the three months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending March 31, 2021 or for any future interim period. The condensed consolidated balance sheet at March 31, 2020 has been derived from audited consolidated financial statements. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended March 31, 2020, and notes thereto included in the Company’s annual report on Form 10-K, which was filed with the SEC on July 10, 2020.

2. Liquidity and Financial Cond

2. Liquidity and Financial Condition	3 Months Ended
	Jun. 30, 2020
Liquidity And Financial Condition
Liquidity and Financial Condition	Note 2. Liquidity and Financial Condition The Company reported a net income of $240,000 for the three months ended June 30, 2020. At June 30, 2020 and March 31, 2020, the Company’s accumulated deficit amounted to $172,006,000 and $172,246,000, respectively. The Company had working capital of $10,873,000 and $7,518,000 as of June 30, 2020 and March 31, 2020, respectively. On June 24, 2020, the Company closed on an asset purchase agreement for the sale of its Micromed Laboratories division and testing facility, including all of Micromed’s assets, such as testing equipment, certain office furniture and customer list, with Infinity Labs SD Inc. for an aggregate purchase price of $850,000. On the closing date, the Company received $610,000 in cash from this sale which was adjusted for working capital, a credit of $100,000 for future testing services from Infinity over the next two years in lieu of cash, and $60,000 held in escrow for one year, subject to adjustment for certain indemnity claims or purchase price adjustments. The Company also retained its accounts receivables outstanding on the date of closing in the amount of approximately $81,000 and an insignificant amount of liabilities. As part of the transaction, Infinity also assumed the Petaluma lease for the office and lab space. The Company retained the warehouse space to store inventory and assets until it completes its move. On May 1, 2020, the Company received loan proceeds in the amount of $1,310,000 under the Paycheck Protection Program (“PPP”), from Coastal States Bank in Atlanta, Georgia. The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act, “CARES Act”, provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight or 24 weeks as long as the Company uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduce salaries during the eight- or 24-week period. The unsecured loan, which is in the form of a note dated April 29, 2020, matures on April 29, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 29, 2020. The note may be prepaid at any time prior to maturity with no prepayment penalties. The Company has used the loan amount for eligible purposes, such as payroll expenses. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan, it cannot assure that it will be eligible for forgiveness, in whole or in part. On May 29, June 1 and 2, 2020, the Company received proceeds of $1,490,000 from the exercise of November 2018 common stock purchase warrants by several investors. Management believes that the Company has access to additional capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, the Company cannot provide any assurance that other new financings will be available on commercially acceptable terms, if needed. If the economic climate in the U.S. deteriorates, the Company’s ability to raise additional capital could be negatively impacted. If the Company is unable to secure additional capital, it may be required to take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company’s continued efforts to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern.

3. Summary of Significant Accou

3. Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates and assumptions include reserves and write-downs related to receivables and inventories, the recoverability of long-lived assets, the valuation allowance relating to the Company’s deferred tax assets, valuation of equity and derivative instruments, fair value allocation of assets sold to Invekra, Petagon, Microsafe and the estimated amortization periods of upfront product licensing fees received from customers. Periodically, the Company evaluates and adjusts estimates accordingly. Net Income per Share The Company computes basic net income per share by dividing net income per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. Three Months Ended June 30, 2020 2019 Numerator: Income (loss) from continuing operations $ (709,000 ) $ 674,000 Income from discontinued operations 949,000 41,000 Net income $ 240,000 $ 715,000 Denominator: Weighted-average number of common shares outstanding: basic 1,839,000 1,316,000 Common stock to be issued upon vesting of restricted stock units 4,000 3,000 Conversion of Series C – 17,000 Weighted-average number of common shares outstanding: diluted 1,843,000 1,336,000 Income (loss) per share from continuing operations basic $ (0.39 ) $ 0.51 Income per share from discontinued operations basic 0.52 0.03 Net income per share: basic $ 0.13 $ 0.54 Income (loss) per share from continuing operations diluted $ (0.38 ) $ 0.51 Income per share from discontinued operations diluted 0.51 0.03 Net income per share: diluted $ 0.13 $ 0.54 The computation of basic income per share for the three months ended June 30, 2020 and 2019 excludes the potentially dilutive securities summarized in the table below because their inclusion would be anti-dilutive. June 30, 2020 2019 Common stock to be issued upon vesting of restricted stock units 5,000 – Common stock to be issued upon exercise of options 252,000 155,000 Common stock to be issued upon exercise of warrants 169,000 446,000 Common stock to be issued upon exercise of common stock units (1) 46,000 46,000 472,000 647,000 (1) Consists of 30,668 restricted stock units and warrants to purchase 15,332 shares of common stock Revenue Recognition Revenue is recognized when the entity transfers promised goods or services to the customer, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under the agreement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company derives the majority of its revenue from sales of its products to a customer base including hospitals, medical centers, doctors, pharmacies, distributors and wholesalers. The Company sells products directly to end users and to distributors. The Company also has entered into agreements to license its technology and products. The Company also provides regulatory compliance testing and quality assurance services to medical device and pharmaceutical companies. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. For all of its sales to non-consignment distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e. when our performance obligation is satisfied), which typically occurs when title passes to the customer upon shipment but could occur when the customer receives the product based on the terms of the agreement with the customer. For product sales to its value-added resellers, non-stocking distributors and end-user customers, the Company grants return privileges to its customers and the Company has a long history with its customers and is able to estimate the amount of product that will be returned. Sales incentives and other programs that the Company may make available to these customers are considered to be a form of variable consideration and the Company maintains estimated accruals and allowances using the expected value method. The Company has entered into consignment arrangements in which goods are left in the possession of another party to sell. As products are sold from the customer to third parties, the Company recognizes revenue based on a variable percentage of a fixed price. Revenue recognized varies based on if a patient is covered by insurance or is not covered by insurance. In addition, the Company may incur a revenue deduction related to the use of the Company’s rebate program. Sales to stocking distributors are made under terms with fixed pricing and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. Revenue from sales to distributors is recognized upon the transfer of control to the distributor. The Company assessed the promised goods and services in the technical support to Invekra for a ten-year period as being a distinct service that Invekra can benefit from on its own and is separately identifiable from any other promises within the contract. Given that the distinct service is not substantially the same as other goods and services within the Invekra contract, the Company accounted for the distinct service as a performance obligation. Revenue from testing contracts is recognized as tests are completed and a final report is sent to the customer. Disaggregation of Revenue The following table presents the Company’s disaggregated revenues by revenue source: Three Months Ended June 30, Product 2020 2019 Human Care $ 5,377,000 $ 4,072,000 Animal Care 377,000 423,000 Other 13,000 – Total $ 5,767,000 $ 4,495,000 Accounts Receivable Trade accounts receivable are recorded net of allowances for cash discounts for prompt payment, doubtful accounts, and sales returns. Estimates for cash discounts and sales returns are based on analysis of contractual terms and historical trends. The Company’s policy is to reserve for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance for doubtful accounts is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Other factors that the Company considers include its existing contractual obligations, historical payment patterns of its customers and individual customer circumstances, an analysis of days sales outstanding by customer and geographic region, and a review of the local economic environment and its potential impact on government funding and reimbursement practices. Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts represents probable credit losses of $1,673,000 and $1,028,000 at June 30, 2020 and March 31, 2020, respectively. Additionally, at June 30, 2020 and March 31, 2020 the Company has allowances of $2,177,000 and $1,230,000, respectively, related to potential discounts, returns, distributor fees and rebates. The allowances are included in Accounts Receivable, net in the accompanying condensed consolidated balance sheets. Inventories Inventories are stated at the lower of cost, cost being determined on a standard cost basis (which approximates actual cost on a first-in, first-out basis), or net realizable value. Due to changing market conditions, estimated future requirements, age of the inventories on hand and production of new products, the Company regularly reviews inventory quantities on hand and records a provision to write down excess and obsolete inventory to its estimated net realizable value. The Company recorded a provision to reduce the carrying amounts of inventories to their net realizable value in the amount of $631,000 and $600,000 at June 30, 2020 and March 31, 2020, respectively, which is included in cost of product revenues on the Company’s accompanying condensed consolidated statements of comprehensive income (loss). Subsequent Events Management has evaluated subsequent events or transactions occurring through the date the condensed consolidated financial statements were issued. (See Note 14) Recent Accounting Standards Accounting standards that have been issued or proposed by the FASB, the SEC or other standard setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

4. Restatement of Condensed Con

4. Restatement of Condensed Consolidated Financial Statements	3 Months Ended
	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Restatement of Condensed Consolidated Financial Statements	Note 4. Restatement of Condensed Consolidated Financial Statements (unaudited) Subsequent to filing of its Form 10-Q on August 14, 2020, the Company during the course of its review of the financial statements for September 30, 2020 identified several accounting issues which resulted in the overstatement of revenues and understatement of expenses during the three months ended June 30, 2020. These errors resulted in accounts receivable being overstated by $446,000, prepaid expenses being overstated by $123,000, accrued expenses being understated by $175,000 in the consolidated balance sheet in the Original Report. The errors further resulted in revenues being overstated by $1,487,000, cost of revenue being overstated by $779,000 and gross profit being overstated by $708,000, total operating expenses being understated by $75,000, other income (expense) being overstated $35,000, and income from discontinued operations being overstated 5,000 in the consolidated statements of comprehensive income (loss) in the Original Report. With the errors being corrected in this Amended Report, net income (loss) decreased by $753,000 to $240,000. Additionally, the changes resulted in a decrease of basic and diluted net income (loss) per common share of $0.41. As a result, the Company restated its previously issued unaudited consolidated financial statements, included in its Amendment to the Company’s Quarterly Report on Form 10-Q/A for the three months ended June 30, 2020. The following tables present the effects of the restatement on the Company’s condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of comprehensive income for the three months ended June 30, 2020 and the condensed consolidated cash flows for the three months ended June 30, 2020. In addition to the tables presented below, the Company’s accumulated deficit per the condensed consolidated statements of stockholders’ equity as of June 30, 2020 increased from ($171,253,000) to ($172,006,000) as a result of the decrease in net income from $993,000 to $240,000 for the three months ended June 30, 2020. Condensed Consolidated Balance Sheet June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) ASSETS Current assets: Cash and cash equivalents $ 4,551 $ – $ 4,551 Accounts receivable, net 5,220 (446 ) 4,774 Inventories, net 4,193 – 4,193 Prepaid expenses and other current assets 2,937 (123 ) 2,814 Current portion of deferred consideration, net of discount 188 – 188 Total current assets 17,089 (569 ) 16,520 Operating lease right-of-use assets 343 – 343 Property and equipment, net 372 – 372 Deferred consideration, net of discount, less current portion 779 – 779 Other assets 69 – 69 Total assets $ 18,652 $ (569 ) $ 18,083 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,133 $ – $ 4,133 Accrued expenses and other current liabilities 743 175 918 Deferred revenue 150 – 150 Deferred revenue Invekra 46 – 46 Operating lease liabilities 135 – 135 Current portion of long-term debt 265 – 265 Total current liabilities 5,472 175 5,647 Operating lease liabilities-non-current 220 1 221 Long-term deferred revenue Invekra 240 – 240 Long-term debt 1,310 – 1,310 Total liabilities 7,242 176 7,418 Commitments and Contingencies (Note 7) Stockholders’ Equity Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively – – – Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively 2 – 2 Additional paid-in capital 188,112 – 188,112 Accumulated deficit (171,253 ) (753 ) (172,006 ) Accumulated other comprehensive loss (5,451 ) 8 (5,443 ) Total stockholders’ equity 11,410 (745 ) 10,665 Total liabilities and stockholders’ equity $ 18,652 $ (569 ) $ 18,083 Condensed Consolidated Statement of Comprehensive Income (Loss) For the Three Months Ended June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) Revenues $ 7,254 $ (1,487 ) $ 5,767 Cost of revenues 4,291 (779 ) 3,512 Gross profit 2,963 (708 ) 2,255 Operating expenses Research and development 476 – 476 Selling, general and administrative 2,369 75 2,444 Total operating expenses 2,845 75 2,920 Income (Loss) from operations 118 (783 ) (665 ) Interest expense (2 ) – (2 ) Interest income 2 – 2 Other (expense) income, net (156 ) 35 (121 ) Gain on sale of assets 77 – 77 Income (loss) from continuing operations $ 39 $ (748 ) $ (709 ) Income from discontinued operations (Note 5) 954 (5 ) 949 Net income $ 993 $ (753 ) $ 240 Net income per share: basic Continuing operations $ 0.02 $ (0.41 ) $ (0.39 ) Discontinued operations 0.52 – 0.52 $ 0.54 $ (0.41 ) $ 0.13 Net income per share: diluted Continuing operations $ 0.02 $ (0.40 ) $ (0.38 ) Discontinued operations 0.52 (0.01 ) 0.51 $ 0.54 $ (0.41 ) $ 0.13 Weighted-average number of shares used in per common share calculations: basic 1,839 – 1,839 Weighted-average number of shares used in per common share calculations: diluted 1,843 – 1,843 Other comprehensive income Net income $ 993 $ (753 ) $ 240 Foreign currency translation adjustments 159 8 167 Comprehensive income $ 1,152 $ (745 ) $ 407 Condensed Consolidated Statement of Cash Flows For the Three Months Ended June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) Cash flows from operating activities Net income $ 993 $ (753 ) $ 240 Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 53 – 53 Stock-based compensation 63 – 63 Gain on sale of assets (872 ) – (872 ) Changes in operating assets and liabilities: Accounts receivable (724 ) 446 (278 ) Inventories (1,945 ) – (1,945 ) Deferred consideration 31 – 31 Prepaid expenses and other current assets (323 ) 123 (200 ) Operating lease right-of-use assets 49 – 49 Accounts payable 1,660 – 1,660 Accrued expenses and other current liabilities (1,122 ) 175 (947 ) Operating lease liabilities (46 ) – (46 ) Deferred revenue (99 ) – (99 ) Net cash (used in) provided by operating activities (2,282 ) (9 ) (2,291 ) Cash flows from investing activities: Purchases of property and equipment (52 ) – (52 ) Deposits (4 ) – (4 ) Proceeds from sale of assets 610 – 610 Net cash provided by (used in) investing activities 554 – 554 Cash flows from financing activities: Proceeds from exercise of common stock purchase warrants 1,490 – 1,490 Proceeds from new debt 1,310 – 1,310 Principal payments on capital leases – – – Principal payments on long-term debt (216 ) – (216 ) Net cash provided by (used in) financing activities 2,584 – 2,584 Effect of exchange rate on cash and cash equivalents 4 9 13 Net increase in cash and cash equivalents 860 – 860 Cash and cash equivalents, beginning of period 3,691 – 3,691 Cash and cash equivalents, end of period $ 4,551 $ – $ 4,551 Supplemental disclosure of cash flow information: Cash paid for interest $ 2 $ – $ 2

5. Discontinued Operations_ Sal

5. Discontinued Operations: Sale of Assets	3 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations: Sale of Assets	Note 5. Discontinued Operations: Sale of Assets to Infinity Labs SD, Inc. On June 24, 2020, the Company closed on an asset purchase agreement for the sale of its Micromed Laboratories division and testing facility, including all of Micromed’s assets, such as testing equipment, certain office furniture and customer list, with Infinity Labs SD Inc. (“Infinity”) for an aggregate purchase price of $850,000. On the closing date, the Company received $610,000 in cash from this sale which was adjusted for working capital, a credit of $100,000 for future testing services from Infinity over the next two years in lieu of cash, and $60,000 held in escrow for one year, subject to adjustment for certain indemnity claims or purchase price adjustments. The Company also retained its accounts receivables outstanding on the date of closing in the amount of approximately $81,000 and an insignificant amount of liabilities. As part of the transaction, Infinity also assumed the Petaluma lease for the office and lab space. The Company retained the warehouse space to store inventory and assets until it completes its move. Accounting for the disposition For accounting purposes, the Company determined that there was only one discrete component of the sale to Infinity. These components were the customer base and services to be provided. Component of Sale Methodology to Estimate Selling Price Customer Base Based upon revenues expected from a market participant to provide technical services at expected service levels The Company determined an arm’s length selling price for each component of the sale and then allocated the net proceeds received to the components on a relative selling price basis. The Company estimated the selling prices of each component as described below: Proceeds were allocated to the components of the sale based upon their relative selling prices are as follows: Customer base $ 850,000 Less: Funds remaining in escrow (60,000 ) Less: Services due from buyer (100,000 ) Less: Working capital adjustment (80,000 ) Total proceeds $ 610,000 Discontinued operations As of June 24, 2020, the Company determined that the sale of its Micromed division to Infinity qualified as a sale of a component of its business and, as such, all such activity prior to consummation of the sale is required to be included in discontinued operations on the Company’s statement of operations. The carrying value of the assets and liabilities of discontinued operations on the condensed consolidated balance sheets as of June 30, 2020 and March 31, 2020 were as follows: June 30, 2020 March 31, 2020 Assets Accounts receivable (net) $ – $ 89,000 Inventory – 11,000 Operating lease, right of use – 604,000 Total current assets of discontinued operations $ – $ 704,000 Liabilities Accounts payable $ – $ 18,000 Operating lease – 117,000 Total current liabilities of discontinued operations $ – $ 135,000 Operating lease $ – $ 511,000 Total Long-term liabilities of discontinued operations $ – $ 511,000 The operations of its Micromed business included in discontinued operations as restated is summarized as follows: Three Months Ended June 30, 2020 2019 Revenues $ 212,000 $ 216,000 Cost of Revenues 53,000 143,000 Selling, general and administrative expenses 5,000 32,000 Income from discontinued operations before tax 154,000 41,000 Gain on disposal of discontinued operations before income taxes 795,000 – Total income from discontinued operations, before tax 949,000 41,000 Income Tax benefit (expense) – – Income from discontinued operations, net of tax $ 949,000 $ 41,000

6. Condensed Consolidated Balan

6. Condensed Consolidated Balance Sheets	3 Months Ended
	Jun. 30, 2020
Disclosure Text Block Supplement [Abstract]
Condensed Consolidated Balance Sheets	Note 6. Condensed Consolidated Balance Sheets Inventories, net Inventories, net consist of the following: June 30, March 31, 2020 2020 Raw materials $ 2,894,000 $ 1,128,000 Finished goods 1,299,000 1,064,000 $ 4,193,000 $ 2,192,000 The Company reserved $632,000 and $549,000 for obsolescence at June 30, 2020 and March 31, 2020, respectively. Leases The Company's operating leases are comprised primarily of facility leases. The Company did not have any finance leases as of June 30, 2020 and March 31, 2020. Balance sheet information related to our leases is presented below: June 30, March 31, 2020 2020 Operating leases: Operating lease right-of-use assets $ 343,000 $ 963,000 Operating lease liabilities – current 135,000 251,000 Operating lease liabilities – non- current 221,000 746,000 Other information related to leases is presented below: Three Months Ended June 30, 2020 Operating lease cost 49,000 Other information: Operating cash flows from operating leases 46,000 Weighted-average remaining lease term – operating leases (in months) 36.3 Weighted-average discount rate – operating leases 6.00% As of June 30, 2020, the annual minimum lease payments of our operating lease liabilities were as follows: For Years Ending March 31, 2021 (excluding the three months ended June 30, 2020) $ 114,000 2022 114,000 2023 86,000 2024 57,000 Thereafter – Total future minimum lease payments, undiscounted 370,000 Less: imputed interest (15,000 ) Present value of future minimum lease payments $ 355,000

7. Commitments and Contingencie

7. Commitments and Contingencies	3 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Legal Matters The Company may be involved in legal matters arising in the ordinary course of business including matters involving proprietary technology. While management believes that such matters are currently insignificant, matters arising in the ordinary course of business for which the Company is or could become involved in litigation may have a material adverse effect on its business and financial condition of comprehensive loss. Employment Agreements As of June 30, 2020, the Company had employment agreements in place with two of its key executives. One of the agreements provide, among other things, for the payment of up to twelve months of severance compensation for terminations under certain circumstances. At June 30, 2020, potential severance payments to key executives would be $250,000, if triggered. Related Party Transactions Effective September 25, 2019, Ms. Trombly was appointed the Chief Executive Officer of the Company. Ms. Trombly is the owner of Trombly Business Law, PC which has been retained by the Company to advise on certain corporate and securities law matters. During the three months ended June 30, 2020, the Company incurred $63,000 in legal services from Trombly Business Law, PC.

8. Debt

8. Debt	3 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	Note 8. Debt On May 1, 2020, the Company received loan proceeds in the amount of $1,310,000 under the Paycheck Protection Program (“PPP”), from Coastal States Bank in Atlanta, Georgia. The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act, “CARES Act”, provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight or 24 weeks as long as the Company uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduce salaries during the eight- or 24-week period. The unsecured loan, which is in the form of a note dated April 29, 2020, matures on April 29, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 29, 2020. The note may be prepaid at any time prior to maturity with no prepayment penalties. The Company used the loan amount for eligible purposes, such as payroll expenses. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan, it cannot assure that it will be eligible for forgiveness, in whole or in part. As of June 30, 2020, the Company was in compliance with all loan covenants.

9. Stockholders' Equity

9. Stockholders' Equity	3 Months Ended
	Jun. 30, 2020
Stockholders' Equity
Stockholders' Equity	Note 9. Stockholders’ Equity Authorized Capital The Company is authorized to issue up to 24,000,000 shares of common stock with a par value of $0.0001 per share and 714,286 shares of convertible preferred stock with a par value of $0.0001 per share.

10. Stock-Based Compensation

10. Stock-Based Compensation	3 Months Ended
	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Stock-Based Compensation	Note 10. Stock-Based Compensation Stock-based compensation expense is as follows: Three Months Ended June 30, 2020 2019 Cost of revenues $ (21,000 ) $ 17,000 Research and development (14,000 ) 22,000 Selling, general and administrative 98,000 253,000 Total stock-based compensation $ 63,000 $ 292,000 At June 30, 2020, there were unrecognized compensation costs of $249,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 0.5 years. At June 30, 2020, there were unrecognized compensation costs of $26,000 related to restricted stock which is expected to be recognized over a weighted-average amortization period of 1.9 years. Stock options award activity is as follows: Number of Weighted- Weighted- Aggregate Outstanding at April 1, 2020 378,000 $ 26.55 – – Options granted – – – – Options exercised – – – – Options forfeited (104,000 ) 4.82 – – Options expired (9,000 ) 113.38 – – Outstanding at June 30, 2020 265,000 $ 31.42 6.28 $ 396,000 Exercisable at June 30, 2020 122,000 $ 60.00 2.83 $ 40,000 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock, or $7.12 per share at June 30, 2020. Restricted stock award activity is as follows: Number of Shares Weighted Average Award Date Fair Value per Share Unvested restricted stock awards outstanding at April 1, 2020 2,000 $ 13.68 Restricted stock awards granted 6,000 4.79 Restricted stock awards vested (3,000 ) 4.79 Restricted stock awards forfeited – – Unvested restricted stock awards outstanding at June 30, 2020 5,000 $ 8.25 The Company did not capitalize any cost associated with stock-based compensation. The Company issues new shares of common stock upon exercise of stock options or release of restricted stock awards. The Company issues new shares of common stock upon exercise of stock-based awards. No income tax benefit has been recognized relating to stock-based compensation expense and no tax benefits have been realized from exercised stock options.

11. Income Taxes

11. Income Taxes	3 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 11. Income Taxes The Company only recognizes tax benefits from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. To date, the Company has not recognized such tax benefits in its consolidated financial statements. On March 27, 2020 Congress approved and the President signed the CARES Act. The Cares Act is an emergency economic stimulus package in response to the COVID-19 pandemic, which among other things contains numerous tax provisions. The Company considered the various potential income tax provisions and deemed there were no material impacts to its income tax provision at June 30, 2020. The Company does not have any tax positions for which it is reasonably possible the total amount of gross unrecognized tax benefits will increase or decrease within twelve months of March 31, 2020. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business.

12. Segment and Geographic Info

12. Segment and Geographic Information	3 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment and Geographic Information	Note 12. Segment and Geographic Information The Company generates revenues from products which are sold into the human and animal healthcare markets. The following table shows the Company’s revenues by geographic region: Three Months Ended June 30, 2020 2019 United States $ 1,620,000 $ 2,487,000 Latin America 2,327,000 764,000 Europe and Rest of the World 1,820,000 1,244,000 Total $ 5,767,000 $ 4,495,000

13. Significant Customer Concen

13. Significant Customer Concentrations	3 Months Ended
	Jun. 30, 2020
Risks and Uncertainties [Abstract]
Significant Customer Concentrations	Note 13. Significant Customer Concentrations For the three months ended June 30, 2020, one customer represented 17% of net revenue. For the three months ended June 30, 2019, one customer represented 14% of net revenue. At June 30, 2020 and March 31, 2020, no customer represented more than 10% of the net accounts receivable balance.

14. Subsequent Events

14. Subsequent Events	3 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events On July 31, 2020, the Company entered into a five-year licensing agreement with Microsafe Group, DMCC, an international distributor, for the non-exclusive rights to sell disinfectant and sanitizer manufactured by the Company for use as a surface disinfectant with nebulizers and aerosol sprayers in the United States. The Company agreed to supply Microsafe Group with product at agreed upon transfer prices. The Company also agreed to collaborate to obtain the necessary regulatory approvals from the U.S. Environmental Protection Agency. Microsafe Group will provide the Company with the data and research obtained from regulatory approvals in Australia and the Company will coordinate the approval process. Microsafe Group will bear the cost of obtaining such approvals. Neither the Company nor MicroSafe Group have yet obtained any regulatory clearance to sell disinfectant manufactured by the Company in the United States. There is no guarantee such approvals will be granted. If the Company or MicroSafe Group are unable to obtain the necessary regulatory approvals, there will be no sales pursuant to this licensing agreement. The Company retained the right to enter into third party licensing agreements for use of its product or to sell it itself. If the Company enters into a third-party licensing agreement during the period that is five years following the execution of the licensing agreement, the Company will pay Microsafe Group a commission on any up-front lump-sum payment it receives, excluding any payment or part of a payment that relates to set up fees or covers regulatory compliance costs. If the Company enters into a third-party licensing agreement, it will pay Microsafe Group a commission on any net revenue collected by the Company during the five-year term, excluding returns and credits for any reason including recalls and contractual allowances, or bad debts. The payments the Company is required to make under the licensing agreements for the foregoing provisions are capped at $1,000,000.

3. Summary of Significant Acc_2

3. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates and assumptions include reserves and write-downs related to receivables and inventories, the recoverability of long-lived assets, the valuation allowance relating to the Company’s deferred tax assets, valuation of equity and derivative instruments, fair value allocation of assets sold to Invekra, Petagon, Microsafe and the estimated amortization periods of upfront product licensing fees received from customers. Periodically, the Company evaluates and adjusts estimates accordingly.
Net Income per Share	Net Income per Share The Company computes basic net income per share by dividing net income per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. Three Months Ended June 30, 2020 2019 Numerator: Income (loss) from continuing operations $ (709,000 ) $ 674,000 Income from discontinued operations 949,000 41,000 Net income $ 240,000 $ 715,000 Denominator: Weighted-average number of common shares outstanding: basic 1,839,000 1,316,000 Common stock to be issued upon vesting of restricted stock units 4,000 3,000 Conversion of Series C – 17,000 Weighted-average number of common shares outstanding: diluted 1,843,000 1,336,000 Income (loss) per share from continuing operations basic $ (0.39 ) $ 0.51 Income per share from discontinued operations basic 0.52 0.03 Net income per share: basic $ 0.13 $ 0.54 Income (loss) per share from continuing operations diluted $ (0.38 ) $ 0.51 Income per share from discontinued operations diluted 0.51 0.03 Net income per share: diluted $ 0.13 $ 0.54 The computation of basic income per share for the three months ended June 30, 2020 and 2019 excludes the potentially dilutive securities summarized in the table below because their inclusion would be anti-dilutive. June 30, 2020 2019 Common stock to be issued upon vesting of restricted stock units 5,000 – Common stock to be issued upon exercise of options 252,000 155,000 Common stock to be issued upon exercise of warrants 169,000 446,000 Common stock to be issued upon exercise of common stock units (1) 46,000 46,000 472,000 647,000 (1) Consists of 30,668 restricted stock units and warrants to purchase 15,332 shares of common stock
Revenue Recognition	Revenue Recognition Revenue is recognized when the entity transfers promised goods or services to the customer, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under the agreement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company derives the majority of its revenue from sales of its products to a customer base including hospitals, medical centers, doctors, pharmacies, distributors and wholesalers. The Company sells products directly to end users and to distributors. The Company also has entered into agreements to license its technology and products. The Company also provides regulatory compliance testing and quality assurance services to medical device and pharmaceutical companies. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. For all of its sales to non-consignment distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e. when our performance obligation is satisfied), which typically occurs when title passes to the customer upon shipment but could occur when the customer receives the product based on the terms of the agreement with the customer. For product sales to its value-added resellers, non-stocking distributors and end-user customers, the Company grants return privileges to its customers and the Company has a long history with its customers and is able to estimate the amount of product that will be returned. Sales incentives and other programs that the Company may make available to these customers are considered to be a form of variable consideration and the Company maintains estimated accruals and allowances using the expected value method. The Company has entered into consignment arrangements in which goods are left in the possession of another party to sell. As products are sold from the customer to third parties, the Company recognizes revenue based on a variable percentage of a fixed price. Revenue recognized varies based on if a patient is covered by insurance or is not covered by insurance. In addition, the Company may incur a revenue deduction related to the use of the Company’s rebate program. Sales to stocking distributors are made under terms with fixed pricing and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. Revenue from sales to distributors is recognized upon the transfer of control to the distributor. The Company assessed the promised goods and services in the technical support to Invekra for a ten-year period as being a distinct service that Invekra can benefit from on its own and is separately identifiable from any other promises within the contract. Given that the distinct service is not substantially the same as other goods and services within the Invekra contract, the Company accounted for the distinct service as a performance obligation. Revenue from testing contracts is recognized as tests are completed and a final report is sent to the customer.
Disaggregation of Revenue	Disaggregation of Revenue The following table presents the Company’s disaggregated revenues by revenue source: Three Months Ended June 30, Product 2020 2019 Human Care $ 5,377,000 $ 4,072,000 Animal Care 377,000 423,000 Other 13,000 – Total $ 5,767,000 $ 4,495,000
Accounts Receivable	Accounts Receivable Trade accounts receivable are recorded net of allowances for cash discounts for prompt payment, doubtful accounts, and sales returns. Estimates for cash discounts and sales returns are based on analysis of contractual terms and historical trends. The Company’s policy is to reserve for uncollectible accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance for doubtful accounts is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Other factors that the Company considers include its existing contractual obligations, historical payment patterns of its customers and individual customer circumstances, an analysis of days sales outstanding by customer and geographic region, and a review of the local economic environment and its potential impact on government funding and reimbursement practices. Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts represents probable credit losses of $1,525,000 and $1,028,000 at June 30, 2020 and March 31, 2020, respectively. Additionally, at June 30, 2020 and March 31, 2020 the Company has allowances of $1,673,000 and $1,230,000, respectively, related to potential discounts, returns, distributor fees and rebates. The allowances are included in Accounts Receivable, net in the accompanying condensed consolidated balance sheets.
Inventories	Inventories Inventories are stated at the lower of cost, cost being determined on a standard cost basis (which approximates actual cost on a first-in, first-out basis), or net realizable value. Due to changing market conditions, estimated future requirements, age of the inventories on hand and production of new products, the Company regularly reviews inventory quantities on hand and records a provision to write down excess and obsolete inventory to its estimated net realizable value. The Company recorded a provision to reduce the carrying amounts of inventories to their net realizable value in the amount of $631,000 and $600,000 at June 30, 2020 and March 31, 2020, respectively, which is included in cost of product revenues on the Company’s accompanying condensed consolidated statements of comprehensive income (loss).
Subsequent Events	Subsequent Events Management has evaluated subsequent events or transactions occurring through the date the condensed consolidated financial statements were issued. (See Note 13)
Recent Accounting Standards	Recent Accounting Standards Accounting standards that have been issued or proposed by the FASB, the SEC or other standard setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

3. Summary of Significant Acc_3

3. Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Computation of earnings per share	Three Months Ended June 30, 2020 2019 Numerator: Income (loss) from continuing operations $ (709,000 ) $ 674,000 Income from discontinued operations 949,000 41,000 Net income $ 240,000 $ 715,000 Denominator: Weighted-average number of common shares outstanding: basic 1,839,000 1,316,000 Common stock to be issued upon vesting of restricted stock units 4,000 3,000 Conversion of Series C – 17,000 Weighted-average number of common shares outstanding: diluted 1,843,000 1,336,000 Income (loss) per share from continuing operations basic $ (0.39 ) $ 0.51 Income per share from discontinued operations basic 0.52 0.03 Net income per share: basic $ 0.13 $ 0.54 Income (loss) per share from continuing operations diluted $ (0.38 ) $ 0.51 Income per share from discontinued operations diluted 0.51 0.03 Net income per share: diluted $ 0.13 $ 0.54
Schedule of antidilutive shares	The computation of basic loss per share for the three months ended June 30, 2020 and 2019 excludes the potentially dilutive securities summarized in the table below because their inclusion would be anti-dilutive. June 30, 2020 2019 Common stock to be issued upon vesting of restricted stock units 5,000 – Common stock to be issued upon exercise of options 252,000 155,000 Common stock to be issued upon exercise of warrants 169,000 446,000 Common stock to be issued upon exercise of common stock units (1) 46,000 46,000 472,000 647,000 (1) Consists of 30,668 restricted stock units and warrants to purchase 15,332 shares of common stock
Disaggregated Revenue by Source	Disaggregation of Revenue The following table presents the Company’s disaggregated revenues by revenue source: Three Months Ended June 30, Product 2020 2019 Human Care $ 5,377,000 $ 4,072,000 Animal Care 377,000 423,000 Other 13,000 – Total $ 5,767,000 $ 4,495,000

4. Restatement of Condensed C_2

4. Restatement of Condensed Consolidated Financial Statements (Tables)	3 Months Ended
	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Restated financial statements	June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) ASSETS Current assets: Cash and cash equivalents $ 4,551 $ – $ 4,551 Accounts receivable, net 5,220 (446 ) 4,774 Inventories, net 4,193 – 4,193 Prepaid expenses and other current assets 2,937 (123 ) 2,814 Current portion of deferred consideration, net of discount 188 – 188 Total current assets 17,089 (569 ) 16,520 Operating lease right-of-use assets 343 – 343 Property and equipment, net 372 – 372 Deferred consideration, net of discount, less current portion 779 – 779 Other assets 69 – 69 Total assets $ 18,652 $ (569 ) $ 18,083 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,133 $ – $ 4,133 Accrued expenses and other current liabilities 743 175 918 Deferred revenue 150 – 150 Deferred revenue Invekra 46 – 46 Operating lease liabilities 135 – 135 Current portion of long-term debt 265 – 265 Total current liabilities 5,472 175 5,647 Operating lease liabilities-non-current 220 1 221 Long-term deferred revenue Invekra 240 – 240 Long-term debt 1,310 – 1,310 Total liabilities 7,242 176 7,418 Commitments and Contingencies (Note 7) Stockholders’ Equity Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively – – – Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively 2 – 2 Additional paid-in capital 188,112 – 188,112 Accumulated deficit (171,253 ) (753 ) (172,006 ) Accumulated other comprehensive loss (5,451 ) 8 (5,443 ) Total stockholders’ equity 11,410 (745 ) 10,665 Total liabilities and stockholders’ equity $ 18,652 $ (569 ) $ 18,083 Condensed Consolidated Statement of Comprehensive Income (Loss) For the Three Months Ended June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) Revenues $ 7,254 $ (1,487 ) $ 5,767 Cost of revenues 4,291 (779 ) 3,512 Gross profit 2,963 (708 ) 2,255 Operating expenses Research and development 476 – 476 Selling, general and administrative 2,369 75 2,444 Total operating expenses 2,845 75 2,920 Income (Loss) from operations 118 (783 ) (665 ) Interest expense (2 ) – (2 ) Interest income 2 – 2 Other (expense) income, net (156 ) 35 (121 ) Gain on sale of assets 77 – 77 Income (loss) from continuing operations $ 39 $ (748 ) $ (709 ) Income from discontinued operations (Note 5) 954 (5 ) 949 Net income $ 993 $ (753 ) $ 240 Net income per share: basic Continuing operations $ 0.02 $ (0.41 ) $ (0.39 ) Discontinued operations 0.52 – 0.52 $ 0.54 $ (0.41 ) $ 0.13 Net income per share: diluted Continuing operations $ 0.02 $ (0.40 ) $ (0.38 ) Discontinued operations 0.52 (0.01 ) 0.51 $ 0.54 $ (0.41 ) $ 0.13 Weighted-average number of shares used in per common share calculations: basic 1,839 – 1,839 Weighted-average number of shares used in per common share calculations: diluted 1,843 – 1,843 Other comprehensive income Net income $ 993 $ (753 ) $ 240 Foreign currency translation adjustments 159 8 167 Comprehensive income $ 1,152 $ (745 ) $ 407 Condensed Consolidated Statement of Cash Flows For the Three Months Ended June 30, 2020 As Originally Reported Adjustments As Restated (in thousands) (in thousands) (in thousands) Cash flows from operating activities Net income $ 993 $ (753 ) $ 240 Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 53 – 53 Stock-based compensation 63 – 63 Gain on sale of assets (872 ) – (872 ) Changes in operating assets and liabilities: Accounts receivable (724 ) 446 (278 ) Inventories (1,945 ) – (1,945 ) Deferred consideration 31 – 31 Prepaid expenses and other current assets (323 ) 123 (200 ) Operating lease right-of-use assets 49 – 49 Accounts payable 1,660 – 1,660 Accrued expenses and other current liabilities (1,122 ) 175 (947 ) Operating lease liabilities (46 ) – (46 ) Deferred revenue (99 ) – (99 ) Net cash (used in) provided by operating activities (2,282 ) (9 ) (2,291 ) Cash flows from investing activities: Purchases of property and equipment (52 ) – (52 ) Deposits (4 ) – (4 ) Proceeds from sale of assets 610 – 610 Net cash provided by (used in) investing activities 554 – 554 Cash flows from financing activities: Proceeds from exercise of common stock purchase warrants 1,490 – 1,490 Proceeds from new debt 1,310 – 1,310 Principal payments on capital leases – – – Principal payments on long-term debt (216 ) – (216 ) Net cash provided by (used in) financing activities 2,584 – 2,584 Effect of exchange rate on cash and cash equivalents 4 9 13 Net increase in cash and cash equivalents 860 – 860 Cash and cash equivalents, beginning of period 3,691 – 3,691 Cash and cash equivalents, end of period $ 4,551 $ – $ 4,551 Supplemental disclosure of cash flow information: Cash paid for interest $ 2 $ – $ 2

5. Discontinued Operations_ S_2

5. Discontinued Operations: Sale of Assets (Tables)	3 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Schedule of allocation of sale price	Customer base $ 850,000 Less: Funds remaining in escrow (60,000 ) Less: Services due from buyer (100,000 ) Less: Working capital adjustment (80,000 ) Total proceeds $ 610,000
Assets and liabilities of disposal group	The carrying value of the assets and liabilities of discontinued operations on the condensed consolidated balance sheets as of June 30, 2020 and March 31, 2020 were as follows: June 30, 2020 March 31, 2020 Assets Accounts receivable (net) $ – $ 89,000 Inventory – 11,000 Operating lease, right of use – 604,000 Total current assets of discontinued operations $ – $ 704,000 Liabilities Accounts payable $ – $ 18,000 Operating lease – 117,000 Total current liabilities of discontinued operations $ – $ 135,000 Operating lease $ – $ 511,000 Total Long-term liabilities of discontinued operations $ – $ 511,000 The operations of its Micromed business included in discontinued operations as restated is summarized as follows: Three Months Ended June 30, 2020 2019 Revenues $ 212,000 $ 216,000 Cost of Revenues 53,000 143,000 Selling, general and administrative expenses 5,000 32,000 Income from discontinued operations before tax 154,000 41,000 Gain on disposal of discontinued operations before income taxes 795,000 – Total income from discontinued operations, before tax 949,000 41,000 Income Tax benefit (expense) – – Income from discontinued operations, net of tax

6. Condensed Consolidated Bal_2

6. Condensed Consolidated Balance Sheets (Tables)	3 Months Ended
	Jun. 30, 2020
Disclosure Text Block Supplement [Abstract]
Schedule of inventories	Inventories consist of the following: June 30, March 31, 2020 2020 Raw materials $ 2,894,000 $ 1,128,000 Finished goods 1,299,000 1,064,000 $ 4,193,000 $ 2,192,000
Schedule of leases	June 30, March 31, 2020 2020 Operating leases: Operating lease right-of-use assets $ 343,000 $ 963,000 Operating lease liabilities – current 135,000 251,000 Operating lease liabilities – non- current 221,000 746,000 Other information related to leases is presented below: Three Months Ended June 30, 2020 Operating lease cost 49,000 Other information: Operating cash flows from operating leases 46,000 Weighted-average remaining lease term – operating leases (in months) 36.3 Weighted-average discount rate – operating leases 6.00%
Schedule of annual minimum lease payments	For Years Ending March 31, 2021 (excluding the three months ended June 30, 2020) $ 114,000 2022 114,000 2023 86,000 2024 57,000 Thereafter – Total future minimum lease payments, undiscounted 370,000 Less: imputed interest (15,000 ) Present value of future minimum lease payments $ 355,000

10. Stock-Based Compensation (T

10. Stock-Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Share-based compensation expense	Three Months Ended June 30, 2020 2019 Cost of revenues $ (21,000 ) $ 17,000 Research and development (14,000 ) 22,000 Selling, general and administrative 98,000 253,000 Total stock-based compensation $ 63,000 $ 292,000
Schedule of option activity	Stock options award activity is as follows: Number of Weighted- Weighted- Aggregate Outstanding at April 1, 2020 378,000 $ 26.55 – – Options granted – – – – Options exercised – – – – Options forfeited (104,000 ) 4.82 – – Options expired (9,000 ) 113.38 – – Outstanding at June 30, 2020 265,000 $ 31.42 6.28 $ 396,000 Exercisable at June 30, 2020 122,000 $ 60.00 2.83 $ 40,000
Restricted Stock Award Activity	Restricted stock award activity is as follows: Number of Shares Weighted Average Award Date Fair Value per Share Unvested restricted stock awards outstanding at April 1, 2020 2,000 $ 13.68 Restricted stock awards granted 6,000 4.79 Restricted stock awards vested (3,000 ) 4.79 Restricted stock awards forfeited – – Unvested restricted stock awards outstanding at June 30, 2020 5,000 $ 8.25

12. Segment and Geographic In_2

12. Segment and Geographic Information (Tables)	3 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment and Geographic Information	The following table shows the Company’s product revenues by geographic region: Three Months Ended June 30, 2020 2019 United States $ 1,720,000 $ 2,487,000 Latin America 2,320,000 654,000 Europe and Rest of the World 3,214,000 1,244,000 Total $ 7,254,000 $ 4,385,000

1. Organization and Recent De_2

1. Organization and Recent Developments (Details Narrative)	3 Months Ended
	Jun. 19, 2019shares	Jun. 30, 2020shares	Mar. 31, 2020shares	Jun. 18, 2019shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reverse stock split	Effective June 19, 2019, the Company effected a reverse stock split of its common stock, par value $0.0001 per share. Every nine shares of common stock were reclassified and combined into one share of common stock
Common stock outstanding	1,328,891	1,966,958	1,777,483	11,972,328
Reverse stock split	.1111111111

2. Liquidity and Financial Co_2

2. Liquidity and Financial Condition (Details Narrative) - USD ($)	May 02, 2020	Jun. 24, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Net income			$ 240,000	$ 715,000
Accumulated deficit			(172,006,000)		$ (172,246,000)
Working capital			10,873,000		$ 7,518,000
Cash received from sale of assets			610,000	$ 0
Proceeds from exercise of warrants			1,490,000
Asset Purchase Agreement [Member]
Gross purchase price		$ 850,000
Cash received from sale of assets		610,000
Sale of assets, cash received for future testing services		100,000
Sale of assets, amount held in escrow		60,000
Accounts receivable remaining from sale of asset		$ 81,000
Paycheck Protection Program [Member] | States Bank in Atlanta [Member]
Proceeds from loan	$ 1,310,000		$ 1,310,000
Loan interest rate	1.00%		1.00%
Loan maturity date	Apr. 29, 2022

3. Summary of Significant Acc_4

3. Summary of Significant Accounting Policies (Details - Earnings per share) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Income (loss) from continuing operations	$ (709)	$ 674
Income from discontinued operations	949	41
Net income	$ 240	$ 715
Denominator:
Weighted-average number of common shares outstanding: basic	1,839,000	1,316,000
Common stock to be issued upon vesting of restricted stock units	4,000	3,000
Conversion of Series C	0	17,000
Weighted-average number of common shares outstanding: diluted	1,843,000	1,336,000
Income (loss) per share from continuing operations basic	$ (0.39)	$ 0.51
Income per share from discontinued operations baisc	0.52	0.03
Net income per share: basic	0.13	0.54
Income (loss) per share from continuing operations diluted	(0.38)	0.51
Income per share from discontinued operations diluted	0.51	0.03
Net income per share: diluted	$ 0.13	$ 0.54

3. Summary of Significant Acc_5

3. Summary of Significant Accounting Policies (Details - Antidilutive shares) - shares	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Antidilutive shares	472,000	647,000
Restricted Stock Units (RSUs) [Member]
Antidilutive shares	5,000	0
Stock Options [Member]
Antidilutive shares	252,000	155,000
Warrants [Member]
Antidilutive shares	169,000	446,000
Common Stock Unit [Member]
Antidilutive shares	46,000	46,000

3. Summary of Significant Acc_6

3. Summary of Significant Accounting Policies (Details - Disaggregated Revenues) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 5,767,000	$ 4,495,000
Human Care [Member]
Revenues	5,377,000	4,072,000
Animal Care [Member]
Revenues	377,000	423,000
Other Sales [Member]
Revenues	$ 13,000	$ 0

3. Summary of Significant Acc_7

3. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2020	Mar. 31, 2020
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 1,673,000	$ 1,028,000
Allowance for potential discounts, returns, distributor fees and rebates	2,177,000	1,230,000
Inventory reserves	$ 632,000	$ 549,000

4. Restatement of Condensed C_3

4. Restatement of Condensed Consolidated Financial Statements (Details - Balance Sheet) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 4,551	$ 3,691	$ 4,284	$ 3,689
Accounts receivable, net	4,774	4,062
Inventories, net	4,193	2,192
Prepaid expenses and other current assets	2,814	2,256
Current portion of deferred consideration, net of discount	188	182
Total current assets	16,520	12,383
Operating lease right-of-use assets	343	963
Property and equipment, net	372	365
Deferred consideration, net of discount, less current portion	779	786
Other assets	69	64
Total assets	18,083	14,561
Current liabilities:
Accounts payable	4,133	2,086
Accrued expenses and other current liabilities	918	1,774
Deferred revenue	150	228
Deferred revenue Invekra	46	45
Operating lease liabilities	135	251
Current portion of long-term debt	265	481
Total current liabilities	5,647	4,865
Operating lease liabilities-non-current	221	746
Long-term deferred revenue Invekra	240	245
Long-term debt	1,310	0
Total liabilities	7,418	5,856
Commitments and Contingencies (Note 7)
Stockholders' Equity
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	0	0
Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	2	2
Additional paid-in capital	188,112	186,559
Accumulated deficit	(172,006)	(172,246)
Accumulated other comprehensive loss	(5,443)	(5,610)
Total stockholders’ equity	10,665	8,705	$ 11,504	$ 10,489
Total liabilities and stockholders' equity	18,083	14,561
Scenario Previously Reported [Member]
Current assets:
Cash and cash equivalents	4,551	3,691
Accounts receivable, net	5,220
Inventories, net	4,193
Prepaid expenses and other current assets	2,937
Current portion of deferred consideration, net of discount	188
Total current assets	17,089
Operating lease right-of-use assets	343
Property and equipment, net	372
Deferred consideration, net of discount, less current portion	779
Other assets	69
Total assets	18,652
Current liabilities:
Accounts payable	4,133
Accrued expenses and other current liabilities	743
Deferred revenue	150
Deferred revenue Invekra	46
Operating lease liabilities	135
Current portion of long-term debt	265
Total current liabilities	5,472
Operating lease liabilities-non-current	220
Long-term deferred revenue Invekra	240
Long-term debt	1,310
Total liabilities	7,242
Commitments and Contingencies (Note 7)
Stockholders' Equity
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	0
Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	2
Additional paid-in capital	188,112
Accumulated deficit	(171,253)
Accumulated other comprehensive loss	(5,451)
Total stockholders’ equity	11,410
Total liabilities and stockholders' equity	18,652
Restatement Adjustment [Member]
Current assets:
Cash and cash equivalents	0	$ 0
Accounts receivable, net	(446)
Inventories, net	0
Prepaid expenses and other current assets	(123)
Current portion of deferred consideration, net of discount	0
Total current assets	(569)
Operating lease right-of-use assets	0
Property and equipment, net	0
Deferred consideration, net of discount, less current portion	0
Other assets	0
Total assets	(569)
Current liabilities:
Accounts payable	0
Accrued expenses and other current liabilities	175
Deferred revenue	0
Deferred revenue Invekra	0
Operating lease liabilities	0
Current portion of long-term debt	0
Total current liabilities	175
Operating lease liabilities-non-current	1
Long-term deferred revenue Invekra	0
Long-term debt	0
Total liabilities	176
Commitments and Contingencies (Note 7)
Stockholders' Equity
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2020 and March 31, 2020, respectively, 0 and 1.55 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	0
Common stock, $0.0001 par value; 24,000,000 shares authorized at June 30, 2020 and March 31, 2020, 1,966,958 and 1,777,483 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively	0
Additional paid-in capital	0
Accumulated deficit	(753)
Accumulated other comprehensive loss	8
Total stockholders’ equity	(745)
Total liabilities and stockholders' equity	$ (569)

4. Restatement of Condensed C_4

4. Restatement of Condensed Consolidated Financial Statements (Details - Income Statement) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 5,767	$ 4,495
Cost of revenues	3,512	2,202
Gross profit	2,255	2,293
Operating expenses
Research and development	476	338
Selling, general and administrative	2,444	3,726
Total operating expenses	2,920	4,064
Income (Loss) from operations	(665)	(1,771)
Interest expense	(2)	(10)
Interest income	2	42
Other (expense) income, net	(121)	(59)
Gain on sale of assets	77	2,472
Income (loss) from continuing operations	(709)	674
Income from discontinued operations (Note 5)	949	41
Net income	$ 240	$ 715
Net income per share: basic
Continuing operations	$ (0.39)	$ 0.51
Discontinued operations	0.52	0.03
Net income per share basic	0.13	0.54
Net income per share: diluted
Continuing operations	(0.38)	0.51
Discontinued operations	0.51	0.03
Net income per share diluted	$ 0.13	$ 0.54
Weighted-average number of shares used in per common share calculations: basic	1,839,000	1,316,000
Weighted-average number of shares used in per common share calculations: diluted	1,843,000	1,336,000
Other comprehensive income
Net income	$ 240	$ 715
Foreign currency translation adjustments	167	67
Comprehensive income	407	$ 782
Scenario Previously Reported [Member]
Revenues	7,254
Cost of revenues	4,291
Gross profit	2,963
Operating expenses
Research and development	476
Selling, general and administrative	2,369
Total operating expenses	2,845
Income (Loss) from operations	118
Interest expense	(2)
Interest income	2
Other (expense) income, net	(156)
Gain on sale of assets	77
Income (loss) from continuing operations	39
Income from discontinued operations (Note 5)	954
Net income	$ 993
Net income per share: basic
Continuing operations	$ 0.02
Discontinued operations	0.52
Net income per share basic	0.54
Net income per share: diluted
Continuing operations	0.02
Discontinued operations	0.52
Net income per share diluted	$ 0.54
Weighted-average number of shares used in per common share calculations: basic	1,839,000
Weighted-average number of shares used in per common share calculations: diluted	1,843,000
Other comprehensive income
Net income	$ 993
Foreign currency translation adjustments	159
Comprehensive income	1,152
Restatement Adjustment [Member]
Revenues	(1,487)
Cost of revenues	(779)
Gross profit	(708)
Operating expenses
Research and development	0
Selling, general and administrative	75
Total operating expenses	75
Income (Loss) from operations	(783)
Interest expense	0
Interest income	0
Other (expense) income, net	35
Gain on sale of assets	0
Income (loss) from continuing operations	(748)
Income from discontinued operations (Note 5)	(5)
Net income	$ (753)
Net income per share: basic
Continuing operations	$ (.41)
Discontinued operations	0
Net income per share basic	(0.41)
Net income per share: diluted
Continuing operations	(0.40)
Discontinued operations	(0.01)
Net income per share diluted	$ (0.41)
Weighted-average number of shares used in per common share calculations: basic	0
Weighted-average number of shares used in per common share calculations: diluted	0
Other comprehensive income
Net income	$ (753)
Foreign currency translation adjustments	8
Comprehensive income	$ (745)

4. Restatement of Condensed C_5

4. Restatement of Condensed Consolidated Financial Statements (Details - Cash Flow) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 240	$ 715
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	53	76
Stock-based compensation	63	292
Gain on sale of assets	(872)	0
Changes in operating assets and liabilities:
Accounts receivable	(278)	(814)
Inventories	(1,945)	73
Deferred consideration	31	35
Prepaid expenses and other current assets	(200)	41
Operating lease right-of-use assets	49	127
Accounts payable	1,660	252
Accrued expenses and other current liabilities	(947)	(90)
Operating lease liabilities	(46)	(132)
Deferred revenue	(99)	163
Net cash (used in) provided by operating activities	(2,291)	738
Cash flows from investing activities:
Purchases of property and equipment	(52)	(12)
Deposits	(4)	0
Proceeds from sale of assets	610	0
Net cash provided by (used in) investing activities	554	(12)
Cash flows from financing activities:
Proceeds from exercise of common stock purchase warrants	1,490	0
Proceeds from new debt	1,310	0
Principal payments on capital leases	0	(13)
Principal payments on long-term debt	(216)	(123)
Net cash provided by (used in) financing activities	2,584	(136)
Effect of exchange rate on cash and cash equivalents	13	5
Net increase in cash and cash equivalents	860	595
Cash and cash equivalents, beginning of period	3,691	3,689
Cash and cash equivalents, end of period	4,551	4,284
Supplemental disclosure of cash flow information:
Cash paid for interest	2	$ 10
Scenario Previously Reported [Member]
Cash flows from operating activities
Net income	993
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	53
Stock-based compensation	63
Gain on sale of assets	(872)
Changes in operating assets and liabilities:
Accounts receivable	(724)
Inventories	(1,945)
Deferred consideration	31
Prepaid expenses and other current assets	(323)
Operating lease right-of-use assets	49
Accounts payable	1,660
Accrued expenses and other current liabilities	(1,122)
Operating lease liabilities	(46)
Deferred revenue	(99)
Net cash (used in) provided by operating activities	(2,282)
Cash flows from investing activities:
Purchases of property and equipment	(52)
Deposits	(4)
Proceeds from sale of assets	610
Net cash provided by (used in) investing activities	554
Cash flows from financing activities:
Proceeds from exercise of common stock purchase warrants	1,490
Proceeds from new debt	1,310
Principal payments on capital leases	0
Principal payments on long-term debt	(216)
Net cash provided by (used in) financing activities	2,584
Effect of exchange rate on cash and cash equivalents	4
Net increase in cash and cash equivalents	860
Cash and cash equivalents, beginning of period	3,691
Cash and cash equivalents, end of period	4,551
Supplemental disclosure of cash flow information:
Cash paid for interest	2
Restatement Adjustment [Member]
Cash flows from operating activities
Net income	(753)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	0
Stock-based compensation	0
Gain on sale of assets	0
Changes in operating assets and liabilities:
Accounts receivable	446
Inventories	0
Deferred consideration	0
Prepaid expenses and other current assets	123
Operating lease right-of-use assets	0
Accounts payable	0
Accrued expenses and other current liabilities	175
Operating lease liabilities	0
Deferred revenue	0
Net cash (used in) provided by operating activities	(9)
Cash flows from investing activities:
Purchases of property and equipment	0
Deposits	0
Proceeds from sale of assets	0
Net cash provided by (used in) investing activities	0
Cash flows from financing activities:
Proceeds from exercise of common stock purchase warrants	0
Proceeds from new debt	0
Principal payments on capital leases	0
Principal payments on long-term debt	0
Net cash provided by (used in) financing activities	0
Effect of exchange rate on cash and cash equivalents	9
Net increase in cash and cash equivalents	0
Cash and cash equivalents, beginning of period	0
Cash and cash equivalents, end of period	0
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 0

5. Discontinued Operations_ S_3

5. Discontinued Operations: Sale of Assets (Details - Allocation of sale price) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 24, 2020	Jun. 30, 2019
Proceeds from sale of business	$ 610,000		$ 0
Micromed Laboratories [Member]
Customer base		$ 850,000
Less: Funds remaining in escrow		(60,000)
Less: Services due from buyer		(100,000)
Less: Working capital adjustment		(80,000)
Proceeds from sale of business		$ 610,000

5. Discontinued Operations_ S_4

5. Discontinued Operations: Sale of Assets (Details - Assets and Liabilities) - Micromed Laboratories [Member] - USD ($)	Jun. 30, 2020	Mar. 31, 2020
Assets
Accounts receivable (net)	$ 0	$ 89,000
Inventory	0	11,000
Operating lease, right of use	0	604,000
Total current assets of discontinued operations	0	704,000
Liabilities
Accounts payable	0	18,000
Operating lease	0	117,000
Total current liabilities of discontinued operations	0	135,000
Operating lease	0	511,000
Total Long-term liabilities of discontinued operations	$ 0	$ 511,000

5. Discontinued Operations_ S_5

5. Discontinued Operations: Sale of Assets (Details - Discontinued Operations) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income from discontinued operations, net of tax	$ 949,000	$ 41,000
Micromed Laboratories [Member]
Revenues	212,000	216,000
Cost of Revenues	53,000	143,000
Selling, general and administrative expenses	5,000	32,000
Income from discontinued operations before tax	154,000	41,000
Gain on disposal of discontinued operations before income taxes	795,000	0
Total income from discontinued operations, before tax	949,000	41,000
Income Tax benefit (expense)	0	0
Income from discontinued operations, net of tax	$ 949,000	$ 41,000

6. Condensed Consolidated Bal_3

6. Condensed Consolidated Balance Sheets (Details - Inventories) - USD ($)	Jun. 30, 2020	Mar. 31, 2020
Inventories Details
Raw materials, net	$ 2,894,000	$ 1,128,000
Finished goods, net	1,299,000	1,064,000
Inventories, net	$ 4,193,000	$ 2,192,000

6. Condensed Consolidated Bal_4

6. Condensed Consolidated Balance Sheets (Details - Operating lease information) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Inventory Disclosure [Abstract]
Operating lease right-of-use assets	$ 343	$ 963
Operating lease liabilities - current	135	251
Operating lease liabilities - non- current	$ 221	$ 746

6. Condensed Consolidated Bal_5

6. Condensed Consolidated Balance Sheets (Details - Other lease information)	3 Months Ended
	Jun. 30, 2020USD ($)
Inventories Details
Operating lease cost	$ 49,000
Operating cash flows from operating leases	$ 46,000
Weighted-average remaining lease term operating leases (in months)	36 months 3 days
Weighted-average discount rate - operating leases	6.00%

6. Condensed Consolidated Bal_6

6. Condensed Consolidated Balance Sheets (Details - Minimum lease payments)	Jun. 30, 2020USD ($)
Inventory Disclosure [Abstract]
2021 (excluding the three months ended June 30, 2019)	$ 114,000
2022	114,000
2023	86,000
2024	57,000
Thereafter	0
Total minimum lease payments	370,000
Less imputed interest	(15,000)
Total minimum operating lease payments	$ 355,000

6. Condensed Consolidated Bal_7

6. Condensed Consolidated Balance Sheets (Details Narrative) - USD ($)	Jun. 30, 2020	Mar. 31, 2020
Disclosure Text Block Supplement [Abstract]
Inventory reserved for obsolescence	$ 632,000	$ 549,000

7. Commitments and Contingenc_2

7. Commitments and Contingencies (Details Narrative)	3 Months Ended
	Jun. 30, 2020USD ($)
Potential severerance payments	$ 250,000
Trombly Business Law [Member]
Legal fees	$ 63,000

8. Debt (Details Narrative)

8. Debt (Details Narrative) - Paycheck Protection Program [Member] - States Bank in Atlanta [Member] - USD ($)	May 02, 2020	Jun. 30, 2020
Proceeds from loan	$ 1,310,000	$ 1,310,000
Interst rate	1.00%	1.00%

9. Stockholders' Equity (Detail

9. Stockholders' Equity (Details Narrative) - $ / shares	Jun. 30, 2020	Mar. 31, 2020
Equity [Abstract]
Convertible preferred stock authorized	714,286	714,286
Convertible preferred stock par value	$ 0.0001	$ 0.0001
Common stock par value	$ .0001	$ 0.0001
Common stock shares authorized	24,000,000	24,000,000

10. Stock-Based Compensation (D

10. Stock-Based Compensation (Details-Stock-based compensation) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Total stock-based compensation	$ 63,000	$ 292,000
Cost of revenues [Member]
Total stock-based compensation	(21,000)	17,000
Research and development [Member]
Total stock-based compensation	(14,000)	22,000
Selling, general and administrative [Member]
Total stock-based compensation	$ 98,000	$ 253,000

10. Stock-Based Compensation _2

10. Stock-Based Compensation (Details-Option activity)	3 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares
Options
Outstanding at beginning of period	378,000
Granted
exercised
Forfeited	(104,000)
Expired	(9,000)
Outstanding at end of period	265,000
Exercisable at end of period	122,000
Weighted Average Exercise Price
Outstanding at beginning of period | $ / shares	$ 26.55
Granted | $ / shares
Forfeited | $ / shares	4.82
Expired | $ / shares	113.38
Outstanding at end of period | $ / shares	31.42
Exercisable at end of period | $ / shares	$ 60
Weighted Average Contractual Term
Outstanding at end of period	6 years 3 months 11 days
Exercisable at end of period	2 years 9 months 29 days
Aggregate Intrinsic Value
Outstanding at end of period | $	$ 396,000
Exercisable at end of period | $	$ 40,000

10. Stock-Based Compensation _3

10. Stock-Based Compensation (Details-Restricted stock activity)	3 Months Ended
	Jun. 30, 2020$ / sharesshares
Restricted stock award activity
Unvested restricted stock awards, beginning balance | shares	2,000
Restricted stock awards granted | shares	6,000
Restricted stock awards forfeited | shares	(3,000)
Restricted stock awards vested | shares
Unvested restricted stock awards, ending balance | shares	5,000
Weighted average award date fair value per share, outstanding beginning balance | $ / shares	$ 13.68
Weighted average award date fair value per share, granted | $ / shares	4.79
Weighted average award date fair value per share, forfeited | $ / shares	4.79
Weighted average award date fair value per share, vested | $ / shares
Weighted average award date fair value per share, outstanding ending balance | $ / shares	$ 8.25

10. Stock-Based Compensation _4

10. Stock-Based Compensation (Details Narrative)	3 Months Ended
	Jun. 30, 2020USD ($)$ / shares
Restricted Stock [Member]
Unrecognized compensation costs - Options	$ 26,000
Weighted average amortization period	1 year 10 months 25 days
Stock Options [Member]
Unrecognized compensation costs - Options	$ 249,000
Weighted average amortization period	6 months
Aggregate intrinsic value per share | $ / shares	$ 7.12

12. Segment and Geographic In_3

12. Segment and Geographic Information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 5,767,000	$ 4,495,000
Product [Member] | UNITED STATES
Revenues	1,620,000	2,487,000
Product [Member] | Latin America [Member]
Revenues	2,327,000	764,000
Product [Member] | Europe and Rest of the World [Member]
Revenues	$ 1,820,000	$ 1,244,000

13. Significant Customer Conc_2

13. Significant Customer Concentrations (Details Narrative)	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Revenues [Member] | One Customer [Member]
Concentration risk percentage	17.00%	14.00%