Barfresh Food (BRFH) 10-Q 20 Nov 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Nov. 10, 2015
Document And Entity Information
Entity Registrant Name	BARFRESH FOOD GROUP INC.
Entity Central Index Key	1,487,197
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		79,884,521
Trading Symbol	BRFH
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Current assets:
Cash	$ 1,511,686	$ 5,364,657
Accounts Receivable	119,796	46,096
Inventory	310,595	165,847
Prepaid expenses and other current assets	36,190	6,386
Total current assets	1,978,267	5,582,986
Property, plant and equipment, net of depreciation	619,033	545,454
Intangible asset, net of amortization	630,447	651,433
Deposits	16,451	16,451
Total Assets	3,244,198	6,796,324
Current liabilities:
Accounts payable	162,593	133,254
Accrued expenses	369,867	424,262
Deferred rent liability	2,040	1,484
Short-term notes payable - related party, net of discount	300,000	157,393
Short-term notes payable, net of discount	50,000	539,631
Convertible note, net of discount	50,000	325,114
Current portion of long term debt	14,039	7,551
Total current liabilities	948,539	1,588,689
Long Term Debt	49,505	28,916
Total liabilities	$ 998,044	$ 1,617,605
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.000001 par value, 5,000,000 shares authorized, none issued or outstanding
Common stock, $0.000001 par value; 295,000,000 shares authorized; 79,884,521 and 77,720,828 shares issued and outstanding at September, 2015 and March 31, 2015, respectively	$ 80	$ 78
Additional paid in capital	14,923,086	14,034,623
Accumulated deficit	(12,675,067)	(8,808,640)
Unearned services	(1,945)	(47,342)
Total stockholders' equity	2,246,154	5,178,719
Total Liabilities and Stockholders' Equity	$ 3,244,198	$ 6,796,324

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	295,000,000	295,000,000
Common stock, shares issued	79,884,521	77,720,828
Common stock, shares outstanding	79,884,521	77,720,828

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 226,127	$ 40,233	$ 394,227	$ 101,725
Cost of revenue	119,229	19,744	209,431	61,103
Gross profit	106,898	20,489	184,796	40,622
Operating expenses:
General and administrative	2,138,815	778,800	3,745,545	1,456,031
Depreciation Amortization	42,524	29,196	87,572	57,916
Total operating expenses	2,181,339	807,996	3,833,117	1,513,947
Operating loss	(2,074,441)	(787,507)	(3,648,321)	(1,473,325)
Other expenses
Interest	$ 62,507	$ 126,766	210,249	$ 237,756
Loss on debt conversion			7,858
Total other expenses	$ 62,507	$ 126,766	218,107	$ 237,756
Net (loss)	$ (2,136,948)	$ (914,273)	$ (3,866,427)	$ (1,711,081)
Per share information - basic and fully diluted:
Weighted average shares outstanding	78,496,262	66,254,136	78,188,337	65,887,401
Net (loss) per share	$ (0.03)	$ (0.01)	$ (0.05)	$ (0.03)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Cash Flows [Abstract]
Net Cash used in operations	$ (3,366,381)	$ (1,134,262)
Cash flow from investing activities:
Investment in trademark	(9,906)	(11,438)
Purchase of equipment	(138,945)	(191,249)
Sale of equipment	7,684	1,977
Net Cash used in investing activities	(141,167)	$ (200,710)
Cash flow from financing activities:
Exercise of Warrant	2,500
Repayment of Short Term Notes	(75,000)
Repayment of Short Term Notes -related party	(300,000)
Long term borrowing	33,000
Repayment of long term debt	(5,923)
Net cash used in financing activities	(345,423)
Net (decrease) in cash	(3,852,971)	$ (1,334,972)
Cash at beginning of period	5,364,657	2,632,612
Cash at end of period	1,511,686	129,764
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 57,720	$ 3,182
Cash paid for income taxes
Non-cash financing activities
Common Stock issued for services	$ 60,500	$ 476,333
Common stock issued on conversion of note	50,000
Common stock issued on conversion of convertible note	$ 389,341

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Note 1. Basis of Presentation and Significant Accounting Policies Throughout this report, the terms “our”, “we”, “us” and the “Company” refer to Barfresh Food Group Inc., including its subsidiaries. The accompanying unaudited condensed financial statements of Barfresh Food Group Inc. at September 30, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial statements, instructions to Form 10-Q, and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended March 31, 2015. In management’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended September 30, 2015 and 2014 presented are not necessarily indicative of the results to be expected for the full year. The March 31, 2015 balance sheet has been derived from our audited financial statements included in our annual report on Form 10-K for the year ended March 31, 2015. Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries Barfresh Inc. and Barfresh Corporation, Inc. (formerly known as Smoothie, Inc.). All inter-company balances and transactions among the companies have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the years reported. Actual results may differ from these estimates. Inventory Inventory consists of finished goods and is carried at the lower of cost or market on a first in first out basis. Intangible Assets Intangible assets are comprised of patents, net of amortization. The patent costs are being amortized over the life of the patents, which is twenty years from the date of filing the patent applications. In accordance with ASC Topic 350 Intangibles - Goodwill and Other Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Equipment: 7 years Leasehold improvements: 2 years Vehicle: 5 years Revenue Recognition We recognize revenue from products sold when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable and collection is reasonably assured. Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $17,672 and $33,577 in research and development expenses for the six-month periods ended September 30, 2015 and 2014, respectively, and $9,289 and $27,925 in research and development expenses for the three-month periods ended September 30, 2015 and 2014, respectively. Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases Recent Pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. ASU Update 2014-09 Revenue From Contracts With Customers (Topic 606 Presentation of Financial Statements-Going Concern (Sub Topic 205-40)

Property Plant and Equipment

Property Plant and Equipment	6 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	Note 2. Property Plant and Equipment Major classes of property and equipment at September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Furniture and fixtures $ 13,604 $ 10,794 Equipment 703,047 632,596 Leasehold Improvements 3,300 3,300 Vehicle 116,752 58,752 836,703 705,442 Less: accumulated depreciation (217,670 ) (159,988 ) Property and equipment, net of depreciation 619,033 545,454 We recorded depreciation expense related to these assets of $57,682 and $27,284 for the six-month periods ended September 30, 2015 and 2014, respectively, and $28,007 and $13,642 for the three-month periods ended September 30, 2015 and 2014, respectively.

Intangible Assets

Intangible Assets	6 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 3. Intangible Assets As of September 30, 2015 and March 31, 2015, intangible assets consist primarily of patent costs and trademarks of $ 758,712 and $748,806, less accumulated amortization of $128,265 and $97,373, respectively. The amounts carried on the balance sheet represent cost to acquire, legal fees and similar costs relating to the patents incurred by the Company. Amortization is calculated through the expiration date of the patent, which is December, 2025. The amount charged to expenses for amortization of the patent costs was $30,892 and $30,633 for the six-month periods ended September 30, 2015and 2014, respectively, and $15,519 and $15,555 for the three-month periods ended September 30, 1015 and 2014, respectively. Estimated amortization expense related to the patent as of September 30, 2015 is as follows: Fiscal Years Ending March 31, 2016 (6 months remaining) $ 41,579 2017 61,492 2018 61,492 2019 61,492 2020 61,492 Thereafter 342,900 Total $ 630,447

Short-Term Notes Payable (Relat

Short-Term Notes Payable (Related and Unrelated)	6 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short-Term Notes Payable (Related and Unrelated)	Note 4. Short-Term Notes Payable (Related and Unrelated) In December 2013, we closed an offering of $775,000 in short-term notes payable (“Short-Term Notes”), $500,000 of which was purchased by a significant shareholder, $100,000 was purchased by the family trust of an officer, director and significant shareholder and $100,000 was purchased by a company controlled by a director and significant shareholder. During December 31, 2014 the $100,000 that was purchased by the family trust of an officer, director and significant shareholder is no longer considered to be owned by the officer as he is no longer, nor is any other related party, the trustee and does not exercise control over the trust and is not classified as a related party debt. The Short-Term Notes bear interest at a rate of 2% per annum and were due and payable on December 20, 2014. We also issued 1,291,667 warrants to the Short-Term Note holders for the right to purchase shares of our common stock. Each warrant entitles the holder to purchase one share of our common stock at a price of $0.45 per share, may be exercised on a cashless basis and are exercisable for a period of five years. In accordance with the guidance in ASC Topic 470-20 Debt with Conversion and Other Options The relative value of the warrants was $298,232, which was the amount recorded as debt discount. The amounts recorded as debt discount was amortized over the life of the note, one year, and charged to interest expense. We estimated the effective interest rate as calculated to be approximately 52% but paid cash at a rate of 2% per annum. We exercised our right to extend the due date of the Short-Term Notes to June 20, 2015. The extended Short-Term Notes bear at the rate of 3% per annum and we required us to issue additional warrants (“Extension Warrants”). We issued 898,842 warrants to the Short-Term Note holders for the right to purchase shares of our common stock. Each warrant entitles the holder to purchase one share of our common stock at a price of $0.485 per share, may be exercised on a cashless basis and are exercisable for a period of three years. On June 20, 2015, some of the Short-Term Notes were amended, and some of the Short-Term Notes were redeemed. Short-Term Notes totaling $700,000 were amended to provide for repayment on June 20, 2015 of 50% of the face value, plus accrued interest to that date ($10,500), and extension of the remaining balance until September 20, 2015, and the interest rate on the notes that were extended was adjusted to 10%. The remaining Short-Terms Notes were fully redeemed on June 20, 2015. One such note in the amount of $25,000 was redeemed for cash, and one such note in the amount of $50,000 was redeemed for 71,429 shares of our common stock. As a result of the above described amendments and redemptions of the Short-Terms Notes, all remaining unamortized debt discount was expensed as of June 20, 2015. Of the balance of the notes due that were payable on September 20, 2015, one note for $250,000 was repaid on October 1, 2015, and two notes totaling $100,000 were extended until December 31, 2015, with 10% interest.

Convertible Note (Related and U

Convertible Note (Related and Unrelated)	6 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Convertible Note (Related and Unrelated)	Note 5. Convertible Note (Related and Unrelated) In August 2012, we closed an offering of $440,000 of convertible notes, $50,000 of which was purchased by the family trust of a significant shareholder of ours. The notes bear interest at a rate of 12% per annum and were due and payable on September 6, 2013. In addition, the notes were convertible at any time after the original issue date until the notes are no longer outstanding into our common stock at a conversion price of $0.372 per share. We also issued 956,519 warrants to the note holders for the right to purchase shares of our common stock. Each warrant entitled the holder to purchase one share of our common stock at a price of $0.46 per share for a term of seven years. When the convertible notes were due we settled the notes by repaying $40,000 of the notes in cash, issuing new convertible notes in the amount of $400,000 and received payment for another note in the amount of $20,000. The new notes bear interest at a rate of 12% per annum and are due and payable on September 6, 2015. In addition the new notes are convertible at any time after the original issue date until the new notes are no longer outstanding, into our common stock at a conversion price of $0.25 per share. We also issued warrants to the new note holders for the right to purchase shares of our common stock. Each warrant entitles the holder to purchase one share of our common stock at a price of $0.25 per share. There were 1,680,000 warrants issued. The warrants issued with the original notes were cancelled. In accordance with the guidance in ASC 470, we first calculated the fair value of the warrants issued and then determined the relative value of the notes and determined that there was a beneficial conversion feature. The fair value of the warrants, $0.13 per share, ($216,531 in the aggregate) was calculated using the Black-Sholes option pricing model using the following assumptions: Expected life (in years) 3 Volatility (based on a comparable company) 85 % Risk Free interest rate 0.91 % Dividend yield (on common stock) - The relative value of the warrants to the notes was $142,873, which was the amount recorded as a portion of the debt discount. We also recorded a beneficial conversion feature on the convertible notes of $125,905. The amounts recorded as debt discount will be amortized over the life of the notes, two years, and charged to interest expense. We estimated the effective interest rate as calculated to be approximately 74% but the face rate was 12% per annum. As of September 30, 2015 all debt discount has been amortized. During September 2015 all of the holders of the convertible notes elected to convert the notes, $420,000, and accumulated interest of $21,955 to our common stock. We issued 1,557,367 shares of our common stock and will issue the remaining 210,455 shares in the near future.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6. Commitments and Contingencies We lease office space under a non-cancelable operating lease, which will expire on November 7, 2016. The aggregate minimum requirements under non-cancelable leases as of September 30, 2015 is as follows: Fiscal Years ending March 31, 2016 $ 46,368 2017 54,529 $ 100,897

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stockholders' Equity	Note 7. Stockholders’ Equity During the six months ended September 30, 2015, we increased our authorized capitalization to 300,000,000 shares of stock, consisting of 295,000,000 shares of common stock, par value $0.000001per share, and 5,000,000 shares of blank check preferred stock, par value $0.000001. During the quarter, our Board of Directors also unanimously approved and adopted the Barfresh Food Group, Inc. 2015 Equity Incentive Plan (the “Plan”). The maximum number of shares that may be issued pursuant to awards under the Plan is 15,000,000 shares. During the six months ended September 30, 2015 we issued 97,581 shares of common stock, valued at $60,500, for services. During the six months ended September 30, 2015 we granted the right to 1,000,000 shares of restricted common stock to a director of the Company who during the period became an officer of the Company. The stock vests 50% on each of the second and third anniversary of the issuance. In accordance with ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), compensation expense in the amount of $104,167 and $62,500, respectively for the six and three months ended September 30, 2015, was recognized in the statement of operations. In addition, we granted the right to 350,000 shares of restricted to another officer in connection with an employment agreement entered into during the six months ended September 30, 2015. In accordance with ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), compensation expense in the amount of $44,040 and $29,896, respectively for the six and three months ended September 30, 2015 was recognized in the statement of operations. During the six months ended September 30, 2015, we issued 1,790,000 options to purchase our common stock to officers and employees of the Company. In addition, we cancelled 10,000 options to purchase our common stock. The exercise price of the options ranged from $0.50 to $0.82 per share, and are exercisable for periods of between 5 and 8 years. The options vest under a variety of vesting schedules. Seventy thousand (70,000) of the options vest on the first anniversary of issuance, 850,000 of the options vest on the second anniversary of issuance, and 870,000 of the options vest on the third anniversary of issuance. The fair value of the options ($1,181,393 in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below, and are being written off the life of each option. Expected life (in years) 4.5 to 8 Volatility (based on a comparable company) 78% to 99% Risk Free interest rate 1.38% to 2.11% Dividend yield (on common stock) - The following is a summary of outstanding stock options issued to employees and directors as of September 30, 2015: Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding March 31, 2015 1,600,000 $0.45 - $0.54 3.25 $ - Issued 1,820,000 $0.45 - $0.82 7.59 $ 210,000 Cancelled (10,000 ) - - - Outstanding September 30, 2015 3,410,000 $0.45 - $0.82 5.51 $ 210,000 Exercisable 1,450,000 $0.45 - $0.51 3.05 $ -

Outstanding Warrants

Outstanding Warrants	6 Months Ended
	Sep. 30, 2015
Outstanding Warrants
Outstanding Warrants	Note 8. Outstanding Warrants The following is a summary of all outstanding warrants as of September 30, 2015: Number of warrants price per share remaining term in years intrinsic value at date of grant Warrants issued in connection with private placements of common stock 22,033,332 $0.25 - 1.50 1.65 $ 1,590,567 Warrants issued in connection with private placement of convertible notes 1,680,000 $ 0.25 0.94 $ - Warrants issued in connection with short-term notes payable 2,190,509 $0.45-$0.485 2.73 $ 64,583 During the six month period ended September 30, 2015 holders of 667,560 warrants to purchase shares of our common stock elected to exercise those warrants. Of the warrants exercised 657,560 were cashless and we issued 427,316 shares of our common stock in exchange for the warrants and 10,000 were exercised for cash and we issued 10,000 shares of our common stock.

Interest Expense

Interest Expense	6 Months Ended
	Sep. 30, 2015
Interest Expense
Interest Expense	Note 9. Interest Expense Interest expense includes direct interest of $37,387 and $33,041 for the six month periods ended September 30, 2015 and 2014, respectively and $19,362 and $16,611 for the three months ended September 30, 2015 and 2014, calculated based on the interest rates stated in our various debt instruments. In addition as more fully described in Notes 4 and 5 above, interest expense includes non-cash amortization of the debt discount of $172,862 and $204,715 for the six months ended September 30, 2015 and 2014, respectively and $43,145 and $110,155 for the three months ended September 30, 2015 and 2014.

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes We account for income taxes in interim periods in accordance with ASC Topic 740, Income Taxes (“ASC 740”). We have determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during our fiscal year to our best current estimate. As of September 30, 2015 the estimated effective tax rate for the year will be zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2009 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statement of operations. There have been no income tax related interest or penalties assessed or recorded. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For the six months ended September 30, 2015 and 2014, we did not have any interest and penalties associated with tax positions. As of September 30, 2015 we did not have any significant unrecognized uncertain tax positions.

Business Segments

Business Segments	6 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Business Segments	Note 11. Business Segments During the three months ended September 30, 2015 and 2014, we operated in only one business segment.

Subsequent Events

Subsequent Events	6 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 12. Subsequent Events Management has evaluated all activity and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

Basis of Presentation and Sig18

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 30, 2015
Basis Of Presentation And Significant Accounting Policies Policies
Basis of Consolidation	Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries Barfresh Inc. and Barfresh Corporation, Inc. (formerly known as Smoothie, Inc.). All inter-company balances and transactions among the companies have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the years reported. Actual results may differ from these estimates.
Inventory	Inventory Inventory consists of finished goods and is carried at the lower of cost or market on a first in first out basis.
Intangible Assets	Intangible Assets Intangible assets are comprised of patents, net of amortization. The patent costs are being amortized over the life of the patents, which is twenty years from the date of filing the patent applications. In accordance with ASC Topic 350 Intangibles - Goodwill and Other
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Equipment: 7 years Leasehold improvements: 2 years Vehicle: 5 years
Revenue Recognition	Revenue Recognition We recognize revenue from products sold when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable and collection is reasonably assured.
Earnings per Share	Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share
Research and Development	Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $17,672 and $33,577 in research and development expenses for the six-month periods ended September 30, 2015 and 2014, respectively, and $9,289 and $27,925 in research and development expenses for the three-month periods ended September 30, 2015 and 2014, respectively.
Rent Expense	Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases
Recent Pronouncements	Recent Pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. ASU Update 2014-09 Revenue From Contracts With Customers (Topic 606 Presentation of Financial Statements-Going Concern (Sub Topic 205-40)

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	6 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Major Classes of Property and Equipment	Major classes of property and equipment at September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Furniture and fixtures $ 13,604 $ 10,794 Equipment 703,047 632,596 Leasehold Improvements 3,300 3,300 Vehicle 116,752 58,752 836,703 705,442 Less: accumulated depreciation (217,670 ) (159,988 ) Property and equipment, net of depreciation 619,033 545,454

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Estimated Amortization Expense Related to Patent	Estimated amortization expense related to the patent as of September 30, 2015 is as follows: Fiscal Years Ending March 31, 2016 (6 months remaining) $ 41,579 2017 61,492 2018 61,492 2019 61,492 2020 61,492 Thereafter 342,900 Total $ 630,447

Convertible Note (Related and21

Convertible Note (Related and Unrelated) (Tables)	6 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Assumptions Used for Fair Value of Warrant	Expected life (in years) 3 Volatility (based on a comparable company) 85 % Risk Free interest rate 0.91 % Dividend yield (on common stock) -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of Aggregate Minimum Requirements Under Non-Cancelable Leases	The aggregate minimum requirements under non-cancelable leases as of September 30, 2015 is as follows: Fiscal Years ending March 31, 2016 $ 46,368 2017 54,529 $ 100,897

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Fair Value of Warrant Using Black Sholes Option Pricing Model	Expected life (in years) 4.5 to 8 Volatility (based on a comparable company) 78% to 99% Risk Free interest rate 1.38% to 2.11% Dividend yield (on common stock) -
Summary of Outstanding Stock Options Issued to Employees and Directors	The following is a summary of outstanding stock options issued to employees and directors as of September 30, 2015: Number of Options Exercise price per share Average remaining term in years Aggregate intrinsic value at date of grant Outstanding March 31, 2015 1,600,000 $0.45 - $0.54 3.25 $ - Issued 1,820,000 $0.45 - $0.82 7.59 $ 210,000 Cancelled (10,000 ) - - - Outstanding September 30, 2015 3,410,000 $0.45 - $0.82 5.51 $ 210,000 Exercisable 1,450,000 $0.45 - $0.51 3.05 $ -

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	6 Months Ended
	Sep. 30, 2015
Outstanding Warrants
Summary of Outstanding Warrants	The following is a summary of all outstanding warrants as of September 30, 2015: Number of warrants price per share remaining term in years intrinsic value at date of grant Warrants issued in connection with private placements of common stock 22,033,332 $0.25 - 1.50 1.65 $ 1,590,567 Warrants issued in connection with private placement of convertible notes 1,680,000 $ 0.25 0.94 $ - Warrants issued in connection with short-term notes payable 2,190,509 $0.45-$0.485 2.73 $ 64,583

Basis of Presentation and Sig25

Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounting Policies [Abstract]
Research and development expenses	$ 9,289	$ 27,925	$ 17,672	$ 33,577

Basis of Presentation and Sig26

Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Details)	6 Months Ended
	Sep. 30, 2015
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Vehicle [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 28,007	$ 13,642	$ 57,682	$ 27,284

Property Plant and Equipment -

Property Plant and Equipment - Major Classes of Property and Equipment (Details) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 836,703	$ 705,442
Less: accumulated depreciation	(217,670)	(159,988)
Property and equipment, net of depreciation	619,033	545,454
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	13,604	10,794
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	703,047	632,596
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,300	3,300
Vehicle [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 116,752	$ 58,752

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Patent costs	$ 758,712		$ 758,712		$ 748,806
Accumulated amortization on patents	128,265		$ 128,265		$ 97,373
Expiration date of patent			2025-12
Amortization of patent costs	$ 15,519	$ 15,555	$ 30,892	$ 30,633

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense Related to Patent (Details)	Sep. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (6 months remaining)	$ 41,579
2,017	61,492
2,018	61,492
2,019	61,492
2,020	61,492
Thereafter	342,900
Intangible asset, net of amortization	$ 630,447

Short-Term Notes Payable (Rel31

Short-Term Notes Payable (Related and Unrelated) (Details Narrative) - USD ($)	Jun. 20, 2015	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Debt face value		$ 775,000
Short term debt interest rate		2.00%
Notes payable due date		Dec. 20, 2014
Issuance of warrants to purchase of common stock		1,291,667
Warrant, exercise price per share		$ .45
Repayment of short term note			$ 75,000
Family Trust Officer Director And Significant Shareholder [Member]
Debt face value					$ 100,000
Short-Term Notes Payable [Member]
Issuance of warrants to purchase of common stock			898,842
Warrant, exercise price per share			$ 0.485
Estimated effective interest rate	50.00%		3.00%
Interest rate per annum	10.00%
Short-term notes extend due date	Sep. 20, 2015		Jun. 20, 2015
Interest expenses includes direct interest	$ 10,500
Short-term notes	700,000
Note redeemed for cash	25,000
Note redeemed value	$ 50,000
Note redeemed for shares of common stock	71,429
Short-Term Notes Payable [Member] | Warrant [Member]
Amount recorded as debt discount			$ 298,232
Debt discount amortized over the life			1 year
Estimated effective interest rate			52.00%
Interest rate per annum			2.00%
Note One [Member]
Notes payable due date			Oct. 1, 2015
Repayment of short term note			$ 250,000
Note Two [Member]
Debt face value			$ 100,000
Short term debt interest rate			10.00%
Short-term notes extend due date			Dec. 31, 2015
Significant Shareholder [Member]
Debt face value		$ 500,000
Officer, Director And Significant Shareholder [Member]
Debt face value		100,000
Director And Significant Shareholder [Member]
Debt face value		$ 100,000

Convertible Note (Related and32

Convertible Note (Related and Unrelated) (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Dec. 31, 2013	Aug. 31, 2012	Sep. 30, 2015
Short-term Debt [Line Items]
Debt face value	$ 775,000
Notes payable due date	Dec. 20, 2014
Warrants execise price per share	$ .45
Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt face value		$ 440,000	$ 400,000
Issuance of convertible notes		$ 50,000
Notes bear interest rate		12.00%	12.00%
Notes payable due date		Sep. 6, 2013	Sep. 6, 2015
Conversion price		$ 0.372	$ 0.25
Number of warrants issued to purchase of common stock shares		956,519	1,680,000
Warrants execise price per share		$ 0.46	$ 0.25
Warrant, exercisable period		7 years
Repayment of debt			$ 40,000
Issuance of convertible notes other			20,000
Amount recorded as debt discount			142,873
Convertible notes, beneficial conversion feature			$ 125,905
Debt discount amortization period			2 years
Estimated effective interest rate			74.00%
Interest rate per annum			12.00%
Debt convertible amount			$ 420,000
Accumulated interest			$ 21,955
Number of common stock shares issued			1,557,367
Remaining shares will be issued in future			210,455
Warrant [Member]
Short-term Debt [Line Items]
Fair value of warrant per share			$ 0.13
Fair value aggregate amount			$ 216,531

Convertible Note (Related and33

Convertible Note (Related and Unrelated) - Schedule of Assumptions Used for Fair Value of Warrant (Details) - Warrant One [Member]	6 Months Ended
	Sep. 30, 2015
Expected life (in years)	3 years
Volatility (based on a comparable company)	85.00%
Risk Free interest rate	0.91%
Dividend yield (on common stock)

Commitments and Contingencies34

Commitments and Contingencies (Details Narrative)	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating lease expire date	Nov. 7, 2016

Commitments and Contingencies

Commitments and Contingencies - Summary of Aggregate Minimum Requirements Under Non-Cancelable Leases (Details)	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 46,368
2,017	54,529
Total	$ 100,897

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Mar. 31, 2015
Class of Stock [Line Items]
Increased authorized capitalzation	300,000,000	300,000,000
Common stock, shares authorized	295,000,000	295,000,000	295,000,000
Common stock, par value	$ 0.000001	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000	5,000,000
Preferred stock, par value	$ 0.000001	$ 0.000001	$ 0.000001
Number of common stock shares issued for services		97,581
Number of common stock issued for services		$ 60,500
Fair value of options		$ 1,181,393
Officers And Employees [Member]
Class of Stock [Line Items]
Issued option to purchase common stock		1,790,000
Number of options cancelled during period		10,000
Officers And Employees [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of option ranged	0.50	$ 0.50
Exercisable term		5 years
Officers And Employees [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of option ranged	$ 0.82	$ 0.82
Exercisable term		8 years
First Anniversary Issuance [Member] | Officers And Employees [Member]
Class of Stock [Line Items]
Number of stock options vested		70,000
Second Anniversary Issuance [Member] | Director [Member]
Class of Stock [Line Items]
Percentage of stock option vests		50.00%
Second Anniversary Issuance [Member] | Officers And Employees [Member]
Class of Stock [Line Items]
Number of stock options vested		850,000
Third Anniversary Issuance [Member] | Officers And Employees [Member]
Class of Stock [Line Items]
Number of stock options vested		870,000
Director [Member]
Class of Stock [Line Items]
Restricted common stock granted		1,000,000
Stock compensation expense	$ 62,500	$ 104,167
Director [Member] | First Anniversary Issuance [Member]
Class of Stock [Line Items]
Percentage of stock option vests		50.00%
Another Office [Member] | Employment Agreement [Member]
Class of Stock [Line Items]
Restricted common stock granted		350,000
Stock compensation expense	$ 29,896	$ 44,040
2015 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Maximum number of shares issued awards under plan	15,000,000	15,000,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Fair Value Assumptions of Option Using Black Sholes Option Pricing Model (Details) - Stock Option [Member]	6 Months Ended
	Sep. 30, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Dividend yield (on common stock)
Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Expected life (in years)	4 years 6 months
Volatility (based on a comparable company)	78.00%
Risk Free interest rate	1.38%
Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Expected life (in years)	8 years
Volatility (based on a comparable company)	99.00%
Risk Free interest rate	2.11%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Outstanding Stock Options Issued to Employees and Directors (Details) - Employees And Directors [Member]	6 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Number of Options, Outstanding, Beginning balance | shares	1,600,000
Number of Options, Issued | shares	1,820,000
Number of Options, Cancelled | shares	(10,000)
Number of Options, Outstanding, Ending balance | shares	3,410,000
Number of Options, Exercisable | shares	1,450,000
Options Outstanding, Average remaining term in years	3 years 3 months
Options Issued, Average remaining term in years	7 years 7 months 2 days
Options Outstanding, Average remaining term in years	5 years 6 months 4 days
Options Exercisable, Average remaining term in years	3 years 18 days
Aggregate intrinsic value at date of grant, Outstanding, Beginning balance | $
Aggregate intrinsic value at date of grant, issued | $	$ 210,000
Aggregate intrinsic value at date of grant, Outstanding, Ending balance | $	$ 210,000
Aggregate intrinsic value at date of grant, Exercisable | $
Minimum [Member]
Exercise price per share, Outstanding, Beginning	$ 0.45
Exercise price per share, Issued	$ 0.45
Exercise price per share, Cancelled
Exercise price per share, Outstanding, Ending	$ .45
Exercise price per share, Exercisable	.45
Maximum [Member]
Exercise price per share, Outstanding, Beginning	0.54
Exercise price per share, Issued	$ .82
Exercise price per share, Cancelled
Exercise price per share, Outstanding, Ending	$ .82
Exercise price per share, Exercisable	$ .51

Outstanding Warrants (Details N

Outstanding Warrants (Details Narrative) - Warrant [Member]	6 Months Ended
	Sep. 30, 2015shares
Number of warrants to purchase shares of common stock	66,750
Number of warrants exercised for cashless	657,560
Number of common stock shares issued for exchange of warrants	427,316
Number of warrant exercised for cash	10,000
Number of issued share of common stock during period	10,000

Outstanding Warrants - Summary

Outstanding Warrants - Summary of Outstanding Warrants (Details) - Warrant [Member]	6 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants | shares	2,190,509
Average remaining term in years	2 years 8 months 23 days
Aggregate intrinsic value at date of grant | $	$ 64,583
Convertible Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants | shares	1,680,000
Exercise price per share	$ 0.25
Average remaining term in years	11 months 9 days
Aggregate intrinsic value at date of grant | $
Minimum [Member] | Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 0.45
Maximum [Member] | Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ .485
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants | shares	22,033,332
Average remaining term in years	1 year 7 months 24 days
Aggregate intrinsic value at date of grant | $	$ 1,590,567
Private Placement [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 0.25
Private Placement [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 1.50

Interest Expense (Details Narra

Interest Expense (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Expense
Interest expense	$ 19,362	$ 16,611	$ 37,387	$ 33,041
Interest expense includes non-cash amortization of the debt discount	$ 43,145	$ 110,155	$ 172,862	$ 204,715

Business Segments (Details Narr

Business Segments (Details Narrative) - Segment	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting [Abstract]
Number of business segment	1	1