Scio Diamond Technology 10-Q 14 Nov 14 2015 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Sep. 30, 2014	Nov. 10, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q2	'
Entity Registrant Name	'Scio Diamond Technology Corp	'
Entity Central Index Key	'0001488934	'
Current Fiscal Year End Date	'--03-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'SCIO	'
Entity Common Stock, Shares Outstanding	'	52,991,811

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2014	Mar. 31, 2014
Current Assets:	'	'
Cash and cash equivalents	$4,960	$47,987
Accounts receivable, net	0	42,085
Other receivables	0	89,192
Inventory, net	197,091	152,817
Prepaid expenses	35,512	79,078
Prepaid rent	23,050	23,050
Total current assets	260,613	434,209
Property, plant and equipment	'	'
Facility	899,499	899,499
Manufacturing equipment	3,184,809	3,171,656
Other equipment	71,059	71,059
Total property, plant and equipment	4,155,367	4,142,214
Less accumulated depreciation	-1,339,098	-1,029,212
Net property, plant and equipment	2,816,269	3,113,002
Intangible assets, net	8,853,429	9,240,640
Prepaid rent, noncurrent	30,763	42,288
Other assets	20,000	20,000
TOTAL ASSETS	11,981,074	12,850,139
Current Liabilities:	'	'
Notes payable	1,541,132	1,412,060
Accounts payable	773,832	671,782
Customer deposits	41,726	179,610
Accrued expenses	578,869	573,126
Total current liabilities	2,935,559	2,836,578
Other liabilities	101,118	84,144
TOTAL LIABILITIES	3,036,677	2,920,722
Common stock $0.001 par value, 75,000,000 shares authorized; 52,287,645 and 50,739,312 shares issued and outstanding at September 30, 2014 and March 31, 2014, respectively	52,288	50,739
Additional paid-in capital	25,247,091	24,476,940
Accumulated deficit	-16,353,982	-14,597,262
Treasury stock, 1,000,000 shares at September 30, 2014 and March 31, 2014	-1,000	-1,000
Total stockholders' equity	8,944,397	9,929,417
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$11,981,074	$12,850,139

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Mar. 31, 2014
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	52,287,645	50,739,312
Common Stock, Shares, Outstanding	52,287,645	50,739,312
Treasury stock, shares	1,000,000	1,000,000

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue	'	'	'	'
Product revenue, net	$103,976	$236,235	$183,314	$495,215
Licensing revenue	0	0	375,000	0
Revenue, net	103,976	236,235	558,314	495,215
Cost of goods sold	'	'	'	'
Cost of goods sold	407,345	533,677	781,768	1,227,787
Gross deficit	-303,369	-297,442	-223,454	-732,572
General and administrative expenses	'	'	'	'
Professional and consulting fees	-93,239	478,537	166,996	992,899
Salaries and benefits	163,832	188,601	560,700	425,438
Rent, equipment lease and facilities expense	37,884	37,892	72,031	75,248
Marketing costs	8,179	13,167	18,867	26,416
Depreciation and amortization	200,124	200,018	400,248	399,892
Corporate general and administrative	58,106	83,554	182,259	185,360
Loss from operations	-678,255	-1,299,211	-1,624,555	-2,837,825
Other expense	'	'	'	'
Interest expense	-70,238	-42,364	-132,165	-46,946
Net loss	($748,493)	($1,341,575)	($1,756,720)	($2,884,771)
Basic:	'	'	'	'
Weighted average number of shares outstanding (in shares)	50,706,794	49,319,257	50,702,418	48,820,118
Loss per share (in dollars per share)	($0.01)	($0.03)	($0.03)	($0.06)
Fully diluted:	'	'	'	'
Weighted average number of shares outstanding (in shares)	50,706,794	43,319,257	50,702,418	48,820,188
Loss per share (in dollars per share)	($0.01)	($0.03)	($0.03)	($0.06)

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOW (USD $)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($1,756,720)	($2,884,771)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	760,829	745,170
Expense for stock and inventory issued in exchange for services	34,200	365,018
Employee stock based compensation	155,000	133,409
Inventory write down	68,722	0
Changes in assets and liabilities:	'	'
Decrease in accounts receivable	42,085	67,951
Decrease in other receivables	89,192	0
Decrease/(increase) in prepaid expenses and rent	-8,642	30,482
Decrease/(increase) in inventory and other assets	-112,996	96,304
Increase in accounts payable	102,050	370,643
Increase/(decrease) in customer deposits	-137,884	44,807
Increase/(decrease) in accrued expenses	17,743	-70,015
Increase in other liabilities	16,974	16,974
Net cash used in operating activities	-729,447	-1,084,028
Cash flows from investing activities:	'	'
Purchase of property, plant and equipment	-13,152	-22,536
Net cash used in investing activities	-13,152	-22,536
Cash flows from financing activities:	'	'
Proceeds from note payable	129,072	974,105
Finance charges paid on note payable	0	-84,105
Proceeds from sale of common stock - net of fees	570,500	129
Net cash provided by financing activities	699,572	890,129
Change in cash and cash equivalents	-43,027	-216,435
Cash and cash equivalents, beginning of period	47,987	223,257
Cash and cash equivalents, end of period	4,960	6,822
Cash paid for:	'	'
Interest	0	18,874
Income taxes	0	0
Non-cash investing and financing activities:	'	'
Payment of accrued expenses with stock	$12,000	$0

CONDENSED_STATEMENT_OF_SHAREHO

CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)	Total	Common Stock	Additional Paid in Capital	Treasury Stock	Accumulated Deficit
Balance at Mar. 31, 2014	$9,929,417	$50,739	$24,476,940	($1,000)	($14,597,262)
Balance (in Shares) at Mar. 31, 2014	'	50,739,312	'	-1,000,000	'
Common stock issued in exchange for consulting services	34,200	80	34,120	0	0
Common stock issued in exchange for consulting services (in shares)	'	80,000	'	0	'
Common stock issued in exchange for past consulting services	12,000	50	11,950	0	0
Common stock issued in exchange for past consulting services (in shares)	'	50,000	'	'	'
Common stock issued for cash @ $0.30 per share	570,500	1,902	568,598	0	0
Common stock issued for cash @ $0.30 per share (in shares)	'	1,901,666	'	0	'
Common stock returned to Company and cancelled	0	-1,000	1,000	0	0
Common stock returned to Company and cancelled (in shares)	'	-1,000,000	'	0	'
Employee stock based compensation	155,000	517	154,483	0	0
Employee stock based compensation (in shares)	'	516,667	'	0	'
Net loss for the six months ended September 30, 2014	-1,756,720	0	0	0	-1,756,720
Ending Balance at Sep. 30, 2014	$8,944,397	$52,288	$25,247,091	($1,000)	($16,353,982)
Ending Balance (in Shares) at Sep. 30, 2014	52,287,645	52,287,645	'	-1,000,000	'

CONDENSED_STATEMENT_OF_SHAREHO1

CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $)	6 Months Ended
	Sep. 30, 2014
Issue price per unit (in dollars per share)	$0.30

ORGANIZATION_AND_SUMMARY_OF_SI

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2014
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Organization and Business
	Scio Diamond Technology Corporation (referred to herein as the “Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Nevada as Krossbow Holding Corp. on September 17, 2009. The Company’s focus is on man-made diamond technology development and commercialization.
	Going Concern
	The Company has generated very little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise.
	These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has responded to these circumstances by taking the following actions:
		⋅	On-going solicitation of investment in the Company in the form of private placements of common shares, secured and unsecured debt to accredited investors;
		⋅	Focused efforts on new business development opportunities to generate revenues and diversify our customer base;
		⋅	Enhanced efforts on optimizing production for existing manufacturing capabilities; and
		⋅	Continued to explore strategic joint ventures, technology licensing agreements and dedicated contract manufacturing to expand company revenue and cash flow, including our recently agreed to joint venture in China.
	In the opinion of management, these actions will be sufficient to provide the Company with the liquidity it needs to meet its obligations and continue as a going concern. There can be no assurance, however, that the Company will successfully implement these plans. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
	Accounting Basis
	The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
	In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2014 and March 31, 2014 and the results of operations and cash flows for the three and six month interim periods ended September 30, 2014 and 2013. Interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for future periods or the year. The balance sheet at March 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Form 10-K Annual Report of the Company for the year ended March 31, 2014.
	In accordance with Accounting Standards Codification (“ASC”) 323, Investments—Equity Method and Joint Ventures, the Company uses the equity method of accounting for investments in corporate joint ventures for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary. Significant influence typically exists if the Company has a 20% to 50% ownership interest in the venture unless predominant evidence to the contrary exists. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. When the Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in the Company’s financial statements unless the Company guaranteed obligations of the equity method investee or has committed additional funding.   When the equity method investee subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized.  The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.
	Basic and Diluted Net Loss per Share
	Net loss per share is presented under two formats: basic net loss per common share, which is computed using the weighted average number of common shares outstanding during the period, and diluted net loss per common share, which is computed using the weighted average number of common shares outstanding, and the weighted average dilutive potential common shares outstanding, computed using the treasury stock method. Currently, for all periods presented, diluted net loss per share is the same as basic net loss per share as the inclusion of weighted average shares of common stock issuable upon the exercise of options and warrants would be anti-dilutive.
	The following table summarizes the number of securities outstanding at each of the periods presented, which were not included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:
				September 30,
				2014		2013
	Common stock options and warrants			6,459,295		9,338,045
	Allowance for Doubtful Accounts
	An allowance for uncollectible accounts receivable is maintained for estimated losses from customers’ failure to make payment on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of accounts receivable and (3) specific information obtained by the Company on the financial condition and the current credit worthiness of its customers. The Company has determined that an allowance was not necessary at September 30, 2014 or March 31, 2014.
	Other Receivables
	As of March 31, 2014, the Company considered a pending insurance settlement over the actions of a Company supplier of $89,192 as an other receivable. This settlement was paid during the six months ended September 30, 2014.
	Inventories
	Inventories are stated at the lower of average cost or market. The carrying value of inventory is reviewed and adjusted based upon slow moving and obsolete items. Inventory costs include material, labor, and manufacturing overhead and are determined by the “first-in, first-out” (FIFO) method. The components of inventories are as follows:
			September 30,		March 31,
			2014		2014
	Raw materials and supplies		$	24,557	$	35,543
	Work in process			19,071		25,611
	Finished goods			153,463		91,663
			$	197,091	$	152,817
	During the six months ended September 30, 2014, we continued to experience selling prices lower than cost. As a result during the six months ended September 30, 2014, we recorded a lower of cost or market write down of $68,722 for inventory produced during the six months ended September 30, 2014. The estimation of the total write-down involves management judgments and assumptions including assumptions regarding future selling price forecasts, the estimated costs to complete, disposal costs and a normal profit margin.
	Property, Plant and Equipment
	Depreciation of property, plant and equipment is on a straight line basis beginning at the time it is placed in service, based on the following estimated useful lives:
			Years
	Machinery and equipment		3–15
	Furniture and fixtures		3–10
	Engineering equipment		5–12
	Leasehold improvements are depreciated over the lesser of the remaining term of the lease or the life of the asset (generally three to seven years).
	Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.
	Intangible Assets
	Intangible assets, such as acquired in-process research and development costs, are considered to have an indefinite useful life until such time as they are put into service at which time they will be amortized on a straight-line basis over the shorter of their economic or legal useful life. Management evaluates indefinite life intangible assets for impairment on an annual basis and on an interim basis if events or changes in circumstances between annual impairment tests indicate that the asset might be impaired. The ongoing evaluation for impairment of its indefinite life intangible assets requires significant management estimates and judgment. Management reviews definite life intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There were no impairment charges during the three and six months ended September 30, 2014 or 2013.
	Fair Value Measurement
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by the accounting literature contains three levels as follows:
	Level 1— Quoted prices in active markets for identical assets or liabilities.
	Level 2— Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The carrying value of cash and cash equivalents, accounts receivable, other assets and trade accounts payable approximates fair value due to the short-term nature of these instruments.
	Revenue Recognition
	We recognize product revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For our Company, this generally means that we recognize revenue when we or our fabrication vendor has shipped finished product to the customer. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. The Company recognizes licensing and development revenues in accordance with the contractual terms of the agreements.
	Recent Accounting Pronouncements
	In July 2013, the FASB issued ASC 2013-11, “Income Taxes – Presentation of an Unrecognized Tax benefit When a Net Operation Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”) which is part of Accounting Standards Codification (“ASC”) 740: Income Taxes. The new guidance requires an entity to present an unrecognized tax benefit and an NOL carryforward, a similar tax loss or a tax credit carryforward on a net basis as part of a deferred tax asset, unless the unrecognized tax benefit is not available to reduce the deferred tax asset component or would not be utilized for that purpose, then a liability would be recognized. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013. The Company adopted this new standard for the fiscal year ended March 31, 2015 and the adoption has not had a significant impact on its financial statements.
	In May 2014, the FASB issued ASU 2014-9 “Revenue from Contracts with Customers (Topic 606).” This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company will adopt this standard in fiscal year 2018. The Company has not yet determined the effect, if any, that the adoption of this standard will have on the Company’s financial position or results of operations.
	There are currently no other accounting standards that have been issued but not yet adopted by the Company that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Sep. 30, 2014
INTANGIBLE ASSETS	'
INTANGIBLE ASSETS	'
	NOTE 2 — INTANGIBLE ASSETS
	Intangible assets, such as acquired in-process research and development costs, are considered to have an indefinite useful life until such time as they are put into service at which time they will be amortized on a straight-line basis over the shorter of their economic or legal useful life.
	Intangible assets consist of the following:
				September 30,		March 31,
		Life		2014		2014
	Patents, gross	6.75 – 19.46		$	8,135,063	$	8,135,063
	In-process research and development	Indefinite			2,250,435		2,250,435
					10,385,498		10,385,498
	Accumulated amortization				-1,532,069		-1,144,858
	Net intangible assets			$	8,853,429	$	9,240,640
	Total amortization expense for the three and six months ending September 30, 2014 was $193,710 and $387,211, respectively. The amortization expense for the three and six months ended September 30, 2013 was $193,753 and $387,506, respectively.
	Total annual amortization expense of finite lived intangible assets is estimated to be as follows:
	Fiscal Year Ending
	Six months ending March 31, 2015	$	387,420
	March 31, 2015		774,840
	March 31, 2016		774,840
	March 31, 2017		774,840
	March 31, 2018		774,840
	Thereafter	$	3,116,214

NOTES_PAYABLE

NOTES PAYABLE	6 Months Ended
	Sep. 30, 2014
NOTES PAYABLE	'
NOTES PAYABLE	'
	NOTE 3 — NOTES PAYABLE
	On June 21, 2013, the Company entered into a loan agreement with Platinum Capital Partners, LP (“Platinum”) providing for a $1 million secured revolving line of credit that the Company may draw on to fund working capital and other corporate purposes.  Borrowings under the loan agreement accrue interest at the rate of 18% per annum, payable monthly on or before the last calendar day of each month, and a service charge of 3% applies to late payments.  The loan agreement also provides for payment of an accommodation fee of up to 10% of the commitment amount as provided in the loan agreement, and payment of a monthly collateral monitoring fee of $2,000 per month for the first six months and $1,000 per month for the last six months of the term of the loan agreement.  The loan agreement contains a number of restrictions on the Company’s business, including restrictions on its ability to merge, sell assets, create or incur liens on assets, make distributions to its shareholders and sell, purchase or lease real or personal property or other assets or equipment.  The loan agreement also contains affirmative covenants and events of default.  The Company may prepay borrowings without premium or penalty upon notice to Platinum as provided in the loan agreement.  Under a security agreement entered into in connection with the loan agreement, the Company granted Platinum a first priority security interest in the Company’s inventory, equipment, accounts and other rights to payments and intangibles as security for the loan.
	On October 11, 2013, the Company entered into a First Amendment to Loan Agreement (the “First Amendment”), which amended the Original Loan Agreement (as amended by the First Amendment, the “Amended Loan Agreement”) to provide for an additional $500,000 of borrowing capacity (the “Additional Loan” and, together with the original Loan, the “Loan”) under the existing $1 million secured revolving line of credit established under the Original Loan Agreement. On October 11, 2013, $280,750 was drawn on the Additional Loan, $30,750 of which was retained by Platinum to cover applicable fees. Borrowings accrue interest at the rate of 18% per annum, payable monthly on or before the last calendar day of each month. An interest reserve of $133,500 has been set aside from the proceeds of the New Note to make required payments of interest, provided that interest billed to the Company will first be deducted from a $90,000 reserve established under the Original Note for payments of interest on the Original Note, until that reserve has been exhausted. The Amended Loan Agreement also provides for payment of an accommodation fee of $25,000 and a closing fee of $3,250, the amounts of which were retained by Platinum out of amounts drawn on the Additional Loan on October 11, 2013. The Company’s obligations under the Amended Loan Agreement are not guaranteed by any other party. The Company may prepay borrowings without premium or penalty upon notice to Platinum as provided in the Amended Loan Agreement. The Loan is secured by a security agreement, under which the Company grants Platinum first priority security interest in the Company’s inventory, equipment, accounts and other rights to payments and intangibles as security for the Loan. The New Note provided for monthly interest payments commencing November 2013 and for repayment of all amounts drawn, together with accrued interest, on June 20, 2014.
	The Company has utilized funds drawn on the Original Loan and the Additional Loan to fund its ongoing operations. The Company capitalized financing costs related to the Platinum loans of $150,750 that were amortized over the life of the loans.
	The Platinum loans matured on June 20, 2014 and the Company went into default status on the loans. Platinum did not take any action related to this default. At September 30, 2014, the total due Platinum including all accrued interest and fees was $1,563,618.
	The Company and Platinum agreed to a Second Amendment to the Loan Agreement on October 16, 2014 as discussed in Note 8- SUBSEQUENT EVENTS.

CAPITAL_STOCK

CAPITAL STOCK	6 Months Ended
	Sep. 30, 2014
CAPITAL STOCK	'
CAPITAL STOCK	'
	NOTE 4 — CAPITAL STOCK
	The authorized capital of the Company is 75,000,000 common shares with a par value of $  0.001 per share.
	At the request of the Board of Directors, the Company entered into an agreement, effective April 12, 2014, with Mr. Joseph Cunningham to provide consulting services to the Company. Under this agreement, the Company agreed to provide Mr. Cunningham $4,000 and 20,000 shares of common stock per month in exchange for his professional services to the Company. This contract expired in August 2014. During the six months ended September 30, 2014, the Company issued 80,000 shares to Mr. Cunningham. These shares were valued at an average of $0.43 per share based on the closing price of the shares on the date of grant and the Company recognized $34,200 in professional and consulting fee expense for these shares during the six months ended September 30, 2014.
	On July 15, 2014, the Board of Directors approved the issuance and sale of up to 2,000,000 shares of common stock to accredited investors at a price of $0.30. On September 25, 2014, the Board agreed to increase the size of the offering up to 6,666,667 shares to raise up to $2,000,000. During the three months ended September 30, 2014, the Company issued 1,901,666 shares of common stock, at a price of $0.30 per share, for total cash proceeds of $570,500.
	The Company had 52,287,645 shares of common stock issued and outstanding as of September 30, 2014 of which 1,000,000 were held in treasury.
	The Company had 5,566,795 warrants outstanding with a weighted average exercise price of $1.53 per share as of September 30, 2014. No warrants were issued in the six months ended September 30, 2014.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
SHARE-BASED COMPENSATION	'
	NOTE 5 — SHARE-BASED COMPENSATION
	The Company currently has one equity-based compensation plan under which stock-based compensation awards can be granted to directors, officers, employees and consultants providing bona fide services to or for the Company. The Company’s 2012 Share Incentive Plan was adopted on May 7, 2012 (the “2012 Share Incentive Plan” or “Plan”) and allows the Company to issue up to 5,000,000 share of its common stock pursuant to awards granted under the 2012 Share Incentive Plan. The Plan permits the granting of stock options, stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any combination of the foregoing. The only awards that have been issued under the Plan are stock options. Because the Plan has not been approved by our shareholders, all such stock option awards are non-qualified stock options.
	On September 25, 2014, the Company entered into a severance agreement with our former Chief Executive Officer, Mr. Michael McMahon, whereby the Company granted him 416,667 shares of fully vested restricted common stock valued at $0.30 per share for a total value of $125,000. In addition, the Company agreed to provide Mr. McMahon 100,000 shares of restricted stock as compensation for the vested options that expired due to his termination. The Company valued these shares at $0.30 per share and recognized $30,000 in stock based compensation expense during the three months ended September 30, 2014.
	The following sets forth the options to purchase shares of the Company’s stock issued and outstanding as of September 30, 2014:
					Weighted-			Weighted-Average
					Average Exercise			Remaining
	Options		Shares		Price			Contractual Term
	Options Outstanding March 31, 2014		4,342,500		$	0.77		1.75
	Granted		—			—		—
	Exercised		—			—		—
	Expired/cancelled		-3,450,000			0.83		—
	Options Outstanding September 30, 2014		892,500		$	0.51		1.31
	Exercisable at September 30, 2014		418,125		$	0.69		0.68
	A summary of the status of non-vested shares as of September 30, 2014 and changes during the six months ended September 30, 2014 is presented below.
					Weighted Average
					Grant-Date
	Non-vested Shares		Shares		Fair Value
	Non-vested at March 31, 2014		2,414,792		$	0.49
	Granted		—			—
	Vested		-122,000			0.43
	Expired/cancelled: non-vested		-1,818,417			0.56
	Non-vested at September 30, 2014		474,375		$	0.23
	The following table summarizes information about stock options outstanding by price range as of September 30, 2014:
				Options Outstanding						Options Exercisable
							Weighted Average
							Remaining
				Number			Contractual Life	Weighted Average		Number of	Weighted Average
	Exercise Price			Outstanding			(years)	Exercise Price		Shares	Exercise Price
	$	0.8		7,500			0.77	$	0.8	5,500	$	0.8
	$	0.7		435,000			0.62		0.7	395,000		0.7
	$	0.33		450,000			1.99		0.33	17,625		0.33
				892,500			1.31	$	0.51	418,125	$	0.69
	The Company initially issued options with exercise prices of $0.70 or $0.80 per share which were the prices of recent equity capital investment. However, in December 2012, the Company decided to change the exercise price policy by utilizing the stock market closing price on the day that the options were granted by our Board of Directors. All subsequent exercise prices have been determined in this manner.
	The intrinsic value of options outstanding at September 30, 2014 and March 31, 2014 was $0 and $0, respectively.
	The non-vested options outstanding vest based on the Company meeting various operating metrics and cash flow targets. The Company estimates the fair value of options granted on the grant date utilizing the Black-Scholes Option model. For the six months ended September 30, 2014 and 2013, the Company recognized $0 and $133,409, respectively, as compensation cost for options issued, and recorded related deferred tax asset of $0 for all periods.
	At September 30, 2014, unrecognized compensation cost related to non-vested awards was $108,979. This cost is expected to be recognized over a weighted average period of 1.87 years. The total fair value of shares vested during the six months ended September 30, 2014 and 2013 was $52,580 and $133,409, respectively.

RELATED_PARTIES

RELATED PARTIES	6 Months Ended
	Sep. 30, 2014
RELATED PARTIES	'
RELATED PARTIES	'
	NOTE 6 — RELATED PARTIES
	During the three months ended September 30, 2014, Bern McPheely, Chairman of the Board and a director of the Company, purchased 133,333 shares of the Company’s common stock for $40,000 and Lewis Smoak, a director of the Company, purchased 333,333 shares of the Company’s common stock for $100,000.

LITIGATION

LITIGATION	6 Months Ended
	Sep. 30, 2014
LITIGATION	'
LITIGATION	'
	NOTE 7 — LITIGATION
	On October 15, 2013, plaintiff Mark P. Sennott, as Trustee of the Sennott Family Charitable Trust, (“Sennott”) filed a complaint derivatively, on behalf of ADI, in the Federal Court, against Edward S. Adams (our then Chairman), Michael R. Monahan (a former member of the Company’s Board of Directors), the law firm of Adams Monahan, LLP, Loblolly, Inc., which was formerly known as Scio Diamond Technology Corporation, and the Company (collectively, “Sennott Defendants”). This derivative complaint on ADI’s behalf (the “ADI Derivative Complaint”) alleges claims for breach of fiduciary duty, constructive fraud and unjust enrichment.
	The ADI Derivative Complaint was effectively settled on June 23, 2014 when the Company entered into a settlement agreement (the “Settlement Agreement”) by and among Edward S. Adams, Michael R. Monahan, Gerald McGuire, James Korn, Bruce Likly, Theodorus Strous, and Robert C. Linares, their present and past affiliates, such as Apollo Diamond, Inc., Apollo Diamond Gemstone Corporation, Adams Monahan LLP, Focus Capital Group, Inc. and Oak Ridge Financial Services Group, Inc., family members and spouses (the “Adams Group”), and Thomas P. Hartness, Kristoffer Mack, Paul Rapello, Glen R. Bailey, Marsha C. Bailey, Kenneth L. Smith, Bernard M. McPheely, James Carroll, Robert M. Daisley, Ben Wolkowitz, Craig Brown, Ronnie Kobrovsky, Lewis Smoak, Brian McPheely, Mark P. Sennott, the Sennott Family Charitable Trust, and their affiliates (the “Save Scio Group”), pursuant to which the Company and the Save Scio Group settled the previously pending consent contest for the election of directors. Pursuant to the Settlement Agreement, on June 23, 2014, Messrs. Adams, Strous, Linares and McGuire resigned as directors effective immediately; the Board expanded the size of the Board to 7 directors and appointed Messrs. McPheely, Wolkowitz, Smoak and Leaverton (the “Save Scio Nominees”) to fill all but one of the resulting vacancies. In addition, the Company agreed to nominate each of Messrs. Korn and Likly (the “Adams Group Nominees”) and the Save Scio Nominees for election to the Board at the Company’s 2014 annual meeting of stockholders. Pursuant to the Settlement Agreement, the Adams Group and the Save Scio Group must vote their shares of Common Stock for the other’s nominees for the next three years, and will also have replacement rights in the event these nominees are unable to serve as directors.
	As of November 10, 2014, the parties to the ADI Derivative Complaint are waiting for the Federal Court to issue an order approving the dismissal of the litigation.
	On May 16, 2014 the Company received a subpoena issued by the SEC ordering the provision of documents and related information concerning various corporate transactions between the Company and its predecessors and other persons and entities.  The Company is fully cooperating with this inquiry.
	The Company recognizes legal fees for litigation as they are incurred as professional and consulting fees. The Company then submits the expenses to our insurance carrier for reimbursement under our insurance policy. During the three months ended September 30, 2014, our insurance carrier paid $312,824 in payments for prior period legal fees, including $84,306 from the prior fiscal year, resulting in a net amount of $(93,239) in professional and consulting fees reported for the period. For the six months ended September 30, 2014, our insurance carrier paid $168,015 for past legal fees from the prior fiscal year.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Sep. 30, 2014
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	NOTE 8 — SUBSEQUENT EVENTS
	On October 2, 2014, the Company entered into a Memorandum of Understanding (the “MOU”) with Renaissance Diamonds, Inc., (“Renaissance”). The MOU represents the good faith intentions of the Company and Renaissance to collaborate through a joint venture to develop procedures and recipes and market and sell lab-grown fancy-colored diamonds. The Company and Renaissance are working towards a definitive agreement and the Company is currently evaluating the financial impact of the MOU on its operations.
	On October 16, 2014, the Company entered into a Second Amendment to Loan Agreement (“Amendment No. 2”) with Platinum Capital Partners, LP, to its existing loan agreement dated as of June 21, 2013 with the Lender, as modified by the First Amendment to Loan Agreement dated as of October 11, 2013. Under the terms of Amendment No. 2, Platinum, among other things, consolidated the Company’s credit facilities into one $1,500,000 note and deferred $63,619 of interest that was due and payable on September 30, 2014 under the Loan Agreement until December 19, 2014. The Company also executed two new promissory notes concurrently with Amendment No. 2: (i) a Revolving Promissory Note dated as of October 16, 2014 in the principal amount of $1,500,000 in favor of Platinum (the “New Revolving Promissory Note”), which replaced the Company’s Promissory Note dated as of June 21, 2013, in the principal amount of $1,000,000 in favor of Platinum, and the Company’s Promissory Note dated as of October 9, 2013, in the principal amount of $500,000 in favor of Platinum; and (ii) a Deferred Interest Promissory Note dated as of September 30, 2014, in the principal amount of $63,619 in favor of Platinum (the “Deferred Interest Promissory Note”). The New Revolving Promissory Note has a maturity date of June 30, 2015 and interest on the outstanding principal accrues at a rate of 18% per annum, compounded annually. The Deferred Interest Promissory Note has a maturity date of December 19, 2014 and interest on the outstanding principal accrues at a rate of 18% per annum, compounded annually.
	On July 15, 2014, the Board of Directors approved the issuance and sale of up to 2,000,000 shares of common stock to accredited investors at a price of $0.30. On September 25, 2014, the Board agreed to increase the size of the offering up to 6,666,667 shares of common stock to raise up to $2,000,000. The Company does not anticipate incurring any material expenses related to the offering. Through November 10, 2014, the Company has issued 2,605,832 shares under this offering and raised $781,750. These funds have been used to meet current operating requirements and the Company needs to continue to raise additional capital to fund continuing operations.

ORGANIZATION_AND_SUMMARY_OF_SI1

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2014
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Going Concern	'
	Going Concern
	The Company has generated very little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise.
	These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has responded to these circumstances by taking the following actions:
		⋅	On-going solicitation of investment in the Company in the form of private placements of common shares, secured and unsecured debt to accredited investors;
		⋅	Focused efforts on new business development opportunities to generate revenues and diversify our customer base;
		⋅	Enhanced efforts on optimizing production for existing manufacturing capabilities; and
		⋅	Continued to explore strategic joint ventures, technology licensing agreements and dedicated contract manufacturing to expand company revenue and cash flow, including our recently agreed to joint venture in China.
	In the opinion of management, these actions will be sufficient to provide the Company with the liquidity it needs to meet its obligations and continue as a going concern. There can be no assurance, however, that the Company will successfully implement these plans. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Accounting Basis	'
	Accounting Basis
	The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
	In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2014 and March 31, 2014 and the results of operations and cash flows for the three and six month interim periods ended September 30, 2014 and 2013. Interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for future periods or the year. The balance sheet at March 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Form 10-K Annual Report of the Company for the year ended March 31, 2014.
	In accordance with Accounting Standards Codification (“ASC”) 323, Investments—Equity Method and Joint Ventures, the Company uses the equity method of accounting for investments in corporate joint ventures for which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary. Significant influence typically exists if the Company has a 20% to 50% ownership interest in the venture unless predominant evidence to the contrary exists. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. When the Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in the Company’s financial statements unless the Company guaranteed obligations of the equity method investee or has committed additional funding.   When the equity method investee subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized.  The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.
Basic and Diluted Net Loss per Share	'
	Basic and Diluted Net Loss per Share
	Net loss per share is presented under two formats: basic net loss per common share, which is computed using the weighted average number of common shares outstanding during the period, and diluted net loss per common share, which is computed using the weighted average number of common shares outstanding, and the weighted average dilutive potential common shares outstanding, computed using the treasury stock method. Currently, for all periods presented, diluted net loss per share is the same as basic net loss per share as the inclusion of weighted average shares of common stock issuable upon the exercise of options and warrants would be anti-dilutive.
	The following table summarizes the number of securities outstanding at each of the periods presented, which were not included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:
				September 30,
				2014		2013
	Common stock options and warrants			6,459,295		9,338,045
Allowance for Doubtful Accounts	'
	Allowance for Doubtful Accounts
	An allowance for uncollectible accounts receivable is maintained for estimated losses from customers’ failure to make payment on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of accounts receivable and (3) specific information obtained by the Company on the financial condition and the current credit worthiness of its customers. The Company has determined that an allowance was not necessary at September 30, 2014 or March 31, 2014.
Other Receivables	'
	Other Receivables
	As of March 31, 2014, the Company considered a pending insurance settlement over the actions of a Company supplier of $89,192 as an other receivable. This settlement was paid during the six months ended September 30, 2014.
Inventories	'
	Inventories
	Inventories are stated at the lower of average cost or market. The carrying value of inventory is reviewed and adjusted based upon slow moving and obsolete items. Inventory costs include material, labor, and manufacturing overhead and are determined by the “first-in, first-out” (FIFO) method. The components of inventories are as follows:
			September 30,		March 31,
			2014		2014
	Raw materials and supplies		$	24,557	$	35,543
	Work in process			19,071		25,611
	Finished goods			153,463		91,663
			$	197,091	$	152,817
	During the six months ended September 30, 2014, we continued to experience selling prices lower than cost. As a result during the six months ended September 30, 2014, we recorded a lower of cost or market write down of $68,722 for inventory produced during the six months ended September 30, 2014. The estimation of the total write-down involves management judgments and assumptions including assumptions regarding future selling price forecasts, the estimated costs to complete, disposal costs and a normal profit margin.
Property, Plant and Equipment	'
	Property, Plant and Equipment
	Depreciation of property, plant and equipment is on a straight line basis beginning at the time it is placed in service, based on the following estimated useful lives:
			Years
	Machinery and equipment		3–15
	Furniture and fixtures		3–10
	Engineering equipment		5–12
	Leasehold improvements are depreciated over the lesser of the remaining term of the lease or the life of the asset (generally three to seven years).
	Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.
Intangible Assets	'
	Intangible Assets
	Intangible assets, such as acquired in-process research and development costs, are considered to have an indefinite useful life until such time as they are put into service at which time they will be amortized on a straight-line basis over the shorter of their economic or legal useful life. Management evaluates indefinite life intangible assets for impairment on an annual basis and on an interim basis if events or changes in circumstances between annual impairment tests indicate that the asset might be impaired. The ongoing evaluation for impairment of its indefinite life intangible assets requires significant management estimates and judgment. Management reviews definite life intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There were no impairment charges during the three and six months ended September 30, 2014 or 2013.
Fair Value Measurement	'
	Fair Value Measurement
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by the accounting literature contains three levels as follows:
	Level 1— Quoted prices in active markets for identical assets or liabilities.
	Level 2— Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The carrying value of cash and cash equivalents, accounts receivable, other assets and trade accounts payable approximates fair value due to the short-term nature of these instruments.
Revenue Recognition	'
	Revenue Recognition
	We recognize product revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For our Company, this generally means that we recognize revenue when we or our fabrication vendor has shipped finished product to the customer. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. The Company recognizes licensing and development revenues in accordance with the contractual terms of the agreements.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In July 2013, the FASB issued ASC 2013-11, “Income Taxes – Presentation of an Unrecognized Tax benefit When a Net Operation Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”) which is part of Accounting Standards Codification (“ASC”) 740: Income Taxes. The new guidance requires an entity to present an unrecognized tax benefit and an NOL carryforward, a similar tax loss or a tax credit carryforward on a net basis as part of a deferred tax asset, unless the unrecognized tax benefit is not available to reduce the deferred tax asset component or would not be utilized for that purpose, then a liability would be recognized. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013. The Company adopted this new standard for the fiscal year ended March 31, 2015 and the adoption has not had a significant impact on its financial statements.
	In May 2014, the FASB issued ASU 2014-9 “Revenue from Contracts with Customers (Topic 606).” This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company will adopt this standard in fiscal year 2018. The Company has not yet determined the effect, if any, that the adoption of this standard will have on the Company’s financial position or results of operations.
	There are currently no other accounting standards that have been issued but not yet adopted by the Company that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption.

ORGANIZATION_AND_SUMMARY_OF_SI2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Sep. 30, 2014
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Summary of anti-dilutive securities excluded from the calculation of diluted net loss per share	'
			September 30,
			2014		2013
	Common stock options and warrants		6,459,295		9,338,045
Schedule of components of inventories	'
		September 30,		March 31,
		2014		2014
	Raw materials and supplies	$	24,557	$	35,543
	Work in process		19,071		25,611
	Finished goods		153,463		91,663
		$	197,091	$	152,817
Schedule of estimated useful lives of property, plant and equipment	'
		Years
	Machinery and equipment	3–15
	Furniture and fixtures	3–10
	Engineering equipment	5–12

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Sep. 30, 2014
INTANGIBLE ASSETS	'
Schedule of intangible assets	'
	Intangible assets consist of the following:
				September 30,		March 31,
		Life		2014		2014
	Patents, gross	6.75 – 19.46		$	8,135,063	$	8,135,063
	In-process research and development	Indefinite			2,250,435		2,250,435
					10,385,498		10,385,498
	Accumulated amortization				-1,532,069		-1,144,858
	Net intangible assets			$	8,853,429	$	9,240,640
Schedule of estimated annual amortization expense of intangible assets	'
	Total annual amortization expense of finite lived intangible assets is estimated to be as follows:
	Fiscal Year Ending
	Six months ending March 31, 2015	$	387,420
	March 31, 2015		774,840
	March 31, 2016		774,840
	March 31, 2017		774,840
	March 31, 2018		774,840
	Thereafter	$	3,116,214

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of options to purchase shares of the Company's stock issued and outstanding	'
	The following sets forth the options to purchase shares of the Company’s stock issued and outstanding as of September 30, 2014:
					Weighted-			Weighted-Average
					Average Exercise			Remaining
	Options		Shares		Price			Contractual Term
	Options Outstanding March 31, 2014		4,342,500		$	0.77		1.75
	Granted		—			—		—
	Exercised		—			—		—
	Expired/cancelled		-3,450,000			0.83		—
	Options Outstanding September 30, 2014		892,500		$	0.51		1.31
	Exercisable at September 30, 2014		418,125		$	0.69		0.68
Summary of the status of non-vested shares	'
	A summary of the status of non-vested shares as of September 30, 2014 and changes during the six months ended September 30, 2014 is presented below.
					Weighted Average
					Grant-Date
	Non-vested Shares		Shares		Fair Value
	Non-vested at March 31, 2014		2,414,792		$	0.49
	Granted		—			—
	Vested		-122,000			0.43
	Expired/cancelled: non-vested		-1,818,417			0.56
	Non-vested at September 30, 2014		474,375		$	0.23
Summary of information about stock options outstanding by price range	'
	The following table summarizes information about stock options outstanding by price range as of September 30, 2014:
				Options Outstanding						Options Exercisable
							Weighted Average
							Remaining
				Number			Contractual Life	Weighted Average		Number of	Weighted Average
	Exercise Price			Outstanding			(years)	Exercise Price		Shares	Exercise Price
	$	0.8		7,500			0.77	$	0.8	5,500	$	0.8
	$	0.7		435,000			0.62		0.7	395,000		0.7
	$	0.33		450,000			1.99		0.33	17,625		0.33
				892,500			1.31	$	0.51	418,125	$	0.69

ORGANIZATION_AND_SUMMARY_OF_SI3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Common stock options and warrants (in shares)	6,459,295	9,338,045

ORGANIZATION_AND_SUMMARY_OF_SI4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	Sep. 30, 2014	Mar. 31, 2014
Inventories	'	'
Raw materials and supplies	$24,557	$35,543
Work in process	19,071	25,611
Finished goods	153,463	91,663
InventoryNet	$197,091	$152,817

ORGANIZATION_AND_SUMMARY_OF_SI5

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	6 Months Ended
	Sep. 30, 2014
Machinery and equipment | Maximum	'
Property, Plant and Equipment	'
Estimated useful lives	'15 years
Machinery and equipment | Minimum	'
Property, Plant and Equipment	'
Estimated useful lives	'3 years
Furniture and fixtures | Maximum	'
Property, Plant and Equipment	'
Estimated useful lives	'10 years
Furniture and fixtures | Minimum	'
Property, Plant and Equipment	'
Estimated useful lives	'3 years
Engineering equipment | Maximum	'
Property, Plant and Equipment	'
Estimated useful lives	'12 years
Engineering equipment | Minimum	'
Property, Plant and Equipment	'
Estimated useful lives	'5 years

ORGANIZATION_AND_SUMMARY_OF_SI6

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	Sep. 30, 2014	Mar. 31, 2014
Other Receivables	'	'
Other Receivables	'	$89,192
Inventory reserves	$68,722	'
Maximum	'	'
Other Receivables	'	'
Equity Method Investment, Ownership Percentage	50.00%	'
Minimum	'	'
Other Receivables	'	'
Equity Method Investment, Ownership Percentage	20.00%	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Sep. 30, 2014
			In-process research and development	In-process research and development	Patent	Patent	Patent	Patent
							Minimum	Maximum
INTANGIBLE ASSETS	'	'	'	'	'	'	'	'
Finite-Lived Intangible Assets, Gross	$10,385,498	$10,385,498	$2,250,435	$2,250,435	$8,135,063	$8,135,063	'	'
Accumulated amortization	-1,532,069	-1,144,858	'	'	'	'	'	'
Net intangible assets	$8,853,429	$9,240,640	'	'	'	'	'	'
Amortization period	'	'	'	'	'	'	'6 years 9 months	'19 years 5 months 16 days

INTANGIBLE_ASSETS_Details_1

INTANGIBLE ASSETS (Details 1) (USD $)	Sep. 30, 2014
Estimated annual amortization expense of intangible assets	'
Six months ending March 31, 2015	$387,420
31-Mar-15	774,840
31-Mar-16	774,840
31-Mar-17	774,840
31-Mar-18	774,840
Thereafter	$3,116,214

INTANGIBLE_ASSETS_Details_Text

INTANGIBLE ASSETS (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Amortization of Intangible Assets	$193,710	$193,753	$387,211	$387,506

NOTES_PAYABLE_Details_Textual

NOTES PAYABLE (Details Textual) (USD $)	6 Months Ended				1 Months Ended
	Sep. 30, 2014	Oct. 11, 2013	Jun. 21, 2013	Sep. 30, 2014	Oct. 11, 2013	Oct. 11, 2013
	Line of Credit	Line of Credit	Line of Credit	Line of Credit	Amended Loan Agreement	Additional Loan
				Maximum
Notes payable	'	'	'	'	'	'
Maximum borrowing capacity	'	'	$1,000,000	'	'	'
Annual interest rate (as a percent)	18.00%	'	'	'	18.00%	'
Service charge on late payment (as a percent)	3.00%	'	'	'	'	'
Accommodation fees (as a percent)	'	'	'	10.00%	'	'
Periodic collateral monitoring fee for the first six months	2,000	'	'	'	'	'
Periodic collateral monitoring fee for the last six months	1,000	'	'	'	'	'
Additional borrowing capacity	'	'	'	'	500,000	'
Loan draw	'	'	'	'	'	280,750
Applicable fees	'	'	'	'	'	30,750
Interest reserve established	'	90,000	'	'	'	133,500
Accommodation fees	'	'	'	'	25,000	'
Closing fee	'	'	'	'	3,250	'
Financing costs capitalized	'	150,750	'	'	'	'
Outstanding balance	$1,563,618	'	'	'	'	'

CAPITAL_STOCK_Details_Textual

CAPITAL STOCK (Details Textual) (USD $)	6 Months Ended				6 Months Ended	0 Months Ended	6 Months Ended
	Sep. 30, 2014	Sep. 25, 2014	Mar. 31, 2014	Jul. 15, 2014	Sep. 30, 2014	Apr. 12, 2014	Sep. 30, 2014
				Accredited Investors	Common Stock	Mr Joseph Cunningham	Mr Joseph Cunningham
CAPITAL STOCK	'	'	'	'	'	'	'
Common stock, shares authorized	75,000,000	'	75,000,000	'	'	'	'
Common stock, par value (in dollars per share)	$0.00	'	$0.00	'	'	'	'
Consulting Expenses	'	'	'	'	'	$4,000	'
Common stock issued in exchange for consulting services per month (in shares)	'	'	'	'	'	20,000	'
Common stock issued in exchange for consulting services (in shares)	'	'	'	'	80,000	'	80,000
Common stock price in exchange for consulting services (in dollars per shares)	'	'	'	$0.30	'	'	$0.43
Common stock issued in exchange for consulting services	34,200	'	'	'	80	'	34,200
Common stock, issued (in shares)	52,287,645	'	50,739,312	'	52,287,645	'	'
Common stock, outstanding (in shares)	52,287,645	'	50,739,312	'	'	'	'
Shares held in treasury	1,000,000	'	1,000,000	'	'	'	'
Warrants outstanding	5,566,795	'	'	'	'	'	'
Class of Warrant or Right Issued	0	'	'	'	'	'	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	$1.53	'	'	'	'	'	'
Common Stock, Capital Shares Reserved for Future Issuance	'	6,666,667	'	2,000,000	'	'	'
Development Stage Entities, Stock Issued, Shares, Issued for Cash	'	'	'	'	1,901,666	'	'
Development Stage Entities, Equity Issuance, Per Share Amount	$0.30	'	'	'	$0.30	'	'
Development Stage Entities, Stock Issued, Value, Issued for Cash	570,500	'	'	'	1,902	'	'
Common Stock, Potential Value, Future Issuance	'	$2,000,000	'	'	'	'	'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	6 Months Ended	12 Months Ended
	Sep. 30, 2014	Mar. 31, 2014
Options	'	'
Options outstanding at beginning of period (in shares)	4,342,500	'
Granted (in shares)	0	'
Exercised (in shares)	0	'
Expired/Cancelled (in shares)	-3,450,000	'
Options outstanding at the end of the period (in shares)	892,500	4,342,500
Options exercisable at the end of the period (in shares)	418,125	'
Weighted Average Exercise Price	'	'
Options outstanding at the beginning of the period (in dollars per share)	$0.77	'
Granted (in dollars per share)	$0	'
Expired/cancelled (in dollars per share)	$0.83	'
Options outstanding at the end of the period (in dollars per share)	$0.51	$0.77
Options exercisable at the end of the period (in dollars per share)	$0.69	'
Weighted-Average Remaining Contractual Term	'	'
Options outstanding	'1 year 3 months 22 days	'1 year 9 months
Exercisable at the end of the period	'8 months 5 days	'

SHAREBASED_COMPENSATION_Detail1

SHARE-BASED COMPENSATION (Details 1) (USD $)	6 Months Ended
	Sep. 30, 2014
Shares	'
Non-vested at the beginning of the period (in shares)	2,414,792
Granted (in shares)	0
Vested (in shares)	-122,000
Expired/cancelled: non-vested (in shares)	-1,818,417
Non-vested at the end of the period	474,375
Weighted Average Grant-Date Fair Value	'
Non-vested at the beginning of the period (in dollars per share)	$0.49
Granted (in dollars per share)	$0
Vested (in dollars per share)	$0.43
Expired/cancelled: non-vested (in dollars per share)	$0.56
Non-vested at the end of the period (in dollars per share)	$0.23

SHAREBASED_COMPENSATION_Detail2

SHARE-BASED COMPENSATION (Details 2) (USD $)	6 Months Ended
	Sep. 30, 2014
Options Outstanding	'
Number Outstanding	892,500
Weighted Average Remaining Contractual Life	'1 year 3 months 22 days
Weighted Average Exercise Price (in dollars per share)	$0.51
Options Exercisable	'
Number of Shares	418,125
Weighted Average Exercise Price (in dollars per share)	$0.69
Exercise Price One	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Exercise Price	$0.80
Options Outstanding	'
Number Outstanding	7,500
Weighted Average Remaining Contractual Life	'9 months 7 days
Weighted Average Exercise Price (in dollars per share)	$0.80
Options Exercisable	'
Number of Shares	5,500
Weighted Average Exercise Price (in dollars per share)	$0.80
Exercise Price Two	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Exercise Price	$0.70
Options Outstanding	'
Number Outstanding	435,000
Weighted Average Remaining Contractual Life	'7 months 13 days
Weighted Average Exercise Price (in dollars per share)	$0.70
Options Exercisable	'
Number of Shares	395,000
Weighted Average Exercise Price (in dollars per share)	$0.70
Exercise Price three	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Exercise Price	$0.33
Options Outstanding	'
Number Outstanding	450,000
Weighted Average Remaining Contractual Life	'1 year 11 months 26 days
Weighted Average Exercise Price (in dollars per share)	$0.33
Options Exercisable	'
Number of Shares	17,625
Weighted Average Exercise Price (in dollars per share)	$0.33

SHAREBASED_COMPENSATION_Detail3

SHARE-BASED COMPENSATION (Details Textual) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended
	Sep. 25, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	7-May-12
Number of shares of common stock authorized under the 2012 Share Incentive Plan	'	'	'	'	'	5,000,000
Granted (in dollars per share)	'	'	$0	'	'	'
Unrecognized compensation cost related to nonvested awards	'	$108,979	$108,979	'	'	'
Weighted average period to recognize unrecognized compensation expense related to nonvested awards	'	'	'1 year 10 months 13 days	'	'	'
Fair value of options vested	'	'	52,580	133,409	'	'
Intrinsic value of options outstanding	'	0	0	'	0	'
Total compensation costs	'	'	0	133,409	'	'
Stock Issued During Period, Shares, Restricted Stock Award, Gross	416,667	100,000	'	'	'	'
Shares Issued, Price Per Share	$0.30	$0.30	$0.30	'	'	'
Stock Issued During Period, Value, Restricted Stock Award, Gross	125,000	30,000	'	'	'	'
Deferred tax asset recorded, relating to recognized compensation cost	'	$0	$0	$0	'	'
Maximum [Member]	'	'	'	'	'	'
Granted (in dollars per share)	'	'	$0.80	'	'	'
Minimum [Member]	'	'	'	'	'	'
Granted (in dollars per share)	'	'	$0.70	'	'	'

RELATED_PARTIES_Details_Textua

RELATED PARTIES (Details Textual) (USD $)	3 Months Ended
	Sep. 30, 2014
Bern McPheely	'
Related Party Transaction [Line Items]	'
Stock Issued During Period, Shares, New Issues	133,333
Stock Issued During Period, Value, New Issues	$40,000
Lewis Smoak	'
Related Party Transaction [Line Items]	'
Stock Issued During Period, Shares, New Issues	333,333
Stock Issued During Period, Value, New Issues	$100,000

LITIGATION_Details_Textual

LITIGATION (Details Textual) (USD $)	3 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Mar. 31, 2014
Litigation	'	'	'
Litigation Settlement, Expense	'	($93,239)	'
Malpractice Loss Contingency, Insurance Recoveries	$312,824	$168,015	$84,306

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (USD $)	Sep. 25, 2014	Jul. 15, 2014	Nov. 10, 2014	Oct. 16, 2014	Oct. 16, 2014	Oct. 16, 2014	Oct. 16, 2014
		Accredited Investors	Subsequent events	Subsequent events	Subsequent events	Subsequent events	Subsequent events
				Revolving Promissory Note	Revolving Promissory Note	Revolving Promissory Note	Deferred Interest Promissory Note
					Replaced With June 2013 Promissory Note	Replaced With June 2013 Promissory Note
Subsequent events	'	'	'	'	'	'	'
Common Stock, Capital Shares Reserved for Future Issuance	6,666,667	2,000,000	'	'	'	'	'
SharePrice	'	$0.30	'	'	'	'	'
Common stock issued under the offering	'	'	2,605,832	'	'	'	'
Value of common stock issued under the offering	'	'	$781,750	'	'	'	'
Line of Credit Facility, Amount Outstanding	'	'	'	1,500,000	1,000,000	500,000	63,619
Line of Credit Facility, Interest Rate at Period End	'	'	'	18.00%	'	'	18.00%
Common Stock, Potential Value, Future Issuance	$2,000,000	'	'	'	'	'	'