Scio Diamond Technology 10-K 15 Aug 14 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Mar. 31, 2014	Aug. 08, 2014	Sep. 30, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'Scio Diamond Technology Corp	'	'
Entity Central Index Key	'0001488934	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Mar-14	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--03-31	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$15,298,557
Entity Common Stock, Shares Outstanding	'	50,619,312	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'FY	'	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Mar. 31, 2014	Mar. 31, 2013
Current Assets:	'	'
Cash and cash equivalents	$47,987	$223,257
Accounts receivable, net	42,085	69,042
Other receivables	89,192	'
Inventory	152,817	538,948
Prepaid expenses	79,078	34,455
Prepaid rent	23,050	23,050
Total current assets	434,209	888,752
Property, plant and equipment	'	'
Facility	899,499	883,246
Manufacturing equipment	3,171,656	3,813,865
Other equipment	71,059	69,311
Total property, plant and equipment	4,142,214	4,766,442
Less accumulated depreciation	-1,029,212	-493,533
Net property, plant and equipment	3,113,002	4,272,909
Intangible assets, net	9,240,640	10,015,651
Prepaid rent, noncurrent	42,288	65,338
Other assets	20,000	13,800
TOTAL ASSETS	12,850,139	15,256,450
Current Liabilities:	'	'
Notes payable	1,412,060	'
Accounts payable	671,782	285,651
Customer deposits	179,610	'
Accrued expenses	573,126	730,698
Total current liabilities	2,836,578	1,016,349
Other liabilities	84,144	50,195
TOTAL LIABILITIES	2,920,722	1,066,544
Common stock, $0.001 par value, 75,000,000 shares authorized; 50,739,312 and 47,736,812 shares issued and outstanding at March 31, 2014 and 2013, respectively	50,739	47,737
Additional paid-in capital	24,476,940	23,789,478
Accumulated deficit	-14,597,262	-9,646,309
Treasury stock, 1,000,000 at March 31, 2014 and 2013, respectively	-1,000	-1,000
Total stockholders' equity	9,929,417	14,189,906
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$12,850,139	$15,256,450

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Mar. 31, 2013
BALANCE SHEETS	'	'
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	50,739,312	47,736,812
Common stock, shares outstanding	50,739,312	47,736,812
Treasury stock, shares	1,000,000	1,000,000

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue	'	'
Product revenue, net	$793,341	$881,748
Licensing revenue	625,000	'
Revenues, net	1,418,341	881,748
Cost of goods sold	'	'
Cost of goods sold	2,321,534	1,349,109
Gross margin (deficit)	-903,193	-467,361
General, administrative, and pre-operating expenses	'	'
Professional and consulting fees	1,272,212	2,635,069
Salaries and benefits	723,805	3,086,505
Rent, equipment lease and facilities expense	150,502	300,261
Marketing costs	49,216	48,403
Depreciation and amortization	799,928	393,010
Corporate general and administrative	379,552	364,265
Loss on disposal of fixed assets	129,308	'
Loss on impairment of fixed assets	381,798	'
Total general and administrative expenses	3,886,321	6,827,513
Loss from operations	-4,789,514	-7,294,874
Other income (expense)	'	'
Interest expense	-161,439	'
Forgiveness of interest expense	'	12,522
Net loss	($4,950,953)	($7,282,352)
Basic:	'	'
Weighted average number of shares outstanding (in shares)	49,548,045	37,971,035
Loss per share (in dollars per share)	($0.10)	($0.19)
Fully diluted:	'	'
Weighted average number of shares outstanding (in shares)	49,548,045	37,971.04
Loss per share (in dollars per share)	($0.10)	($0.19)

STATEMENTS_OF_CASH_FLOW

STATEMENTS OF CASH FLOW (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($4,950,953)	($7,282,352)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	1,574,418	859,983
Loss on disposal of equipment	129,308	'
Loss on impairment of fixed assets	381,798	'
Expense for warrants, stock and inventory issued in exchange for services	421,496	158,560
Forgiveness of interest expense	'	-12,522
Expense for stock allocated for indemnification of directors	'	830,000
Employee stock based compensation	193,150	1,996,426
Inventory write down	100,557	'
Changes in assets and liabilities:	'	'
Decrease/(increase) in accounts receivable	26,957	-69,042
Increase in other receivables	-89,192	'
Decrease/(increase) in prepaid expenses, rent and other assets	44,260	-26,411
Decrease/(increase) in inventory	258,127	-267,446
Increase in accounts payable	386,131	87,587
Increase in customer deposits	179,610	'
Increase/(decrease) in accrued expenses	-54,436	342,783
Increase in other liabilities	33,949	50,195
Net cash used in operating activities	-1,364,820	-3,332,239
Cash flows from investing activities:	'	'
Purchase of property, plant and equipment	-71,889	-1,114,420
Net cash used in investing activities	-71,889	-1,114,420
Cash flows from financing activities:	'	'
Proceeds from sale of common stock and warrant exercise - net of fees	129	4,086,400
Proceeds from notes payable	1,412,060	'
Finance charges paid on note payable	-150,750	'
Payments on notes payable	'	-225,000
Net cash provided by financing activities	1,261,439	3,861,400
Change in cash and cash equivalents	-175,270	-585,259
Cash and cash equivalents, beginning of period	223,257	808,516
Cash and cash equivalents, end of period	47,987	223,257
Cash paid during the year for:	'	'
Interest	18,874	'
Non-cash investing and financing activities:	'	'
Purchase of assets funded by note payable	'	100,000
Warrants issued for real property lease	'	39,000
Warrants issued for consulting services	13,985	113,760
Purchase of assets funded through ADGC subscription rights	'	770,000
Common stock allocated for indemnification of directors	'	830,000
Manufacturing equipment transferred to assets held for sale	$20,000	'

STATEMENTS_OF_SHAREHOLDERS_EQU

STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Total	Common Stock	Additional Paid in Capital	Treasury Stock	Accumulated Deficit
Balance at Mar. 31, 2012	$13,599,672	$26,013	$15,937,616	'	($2,363,957)
Balance (in shares) at Mar. 31, 2012	'	26,013,070	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Common stock issued for cash, net of fees, at $0.80 per share	3,873,177	4,891	3,868,286	'	'
Common stock issued for cash, net of fees, at $0.80 per share (in shares)	'	4,891,250	'	'	'
Common Stock issued for cash, net of fees, at $0.01 per share	199,595	16,768	182,827	'	'
Common Stock issued for cash, net of fees, at $0.01 per share (in shares)	'	16,766,773	'	'	'
Common stock issued in exchange for consulting services	37,000	46	36,954	'	'
Common stock issued in exchange for consulting services (in shares)	46,250	46,250	'	'	'
Warrants exercised for common stock, net of fees, at $0.70 per share	13,628	19	13,609	'	'
Warrants exercised for common stock, net of fees, at $0.70 per share (in shares)	19,469	19,469	'	'	'
Treasury stock acquired	'	'	1,000	-1,000	'
Treasury stock acquired (in shares)	'	'	'	-1,000,000	'
Subscription rights issued for purchase of assets	770,000	'	770,000	'	'
Warrants issued for real property lease	39,000	'	39,000	'	'
Common stock issued for indemnification of legal settlement	830,000	'	830,000	'	'
Employee stock based compensation	1,996,426	'	1,996,426	'	'
Warrants issued in exchange for consulting services	113,760	'	113,760	'	'
Net loss for the period	-7,282,352	'	'	'	-7,282,352
Balance at Mar. 31, 2013	14,189,906	47,737	23,789,478	-1,000	-9,646,309
Balance (in shares) at Mar. 31, 2013	47,736,812	47,736,812	'	-1,000,000	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Common stock issued in exchange for consulting services	319,200	1,002	318,198	'	'
Common stock issued in exchange for consulting services (in shares)	527,500	1,002,500	'	'	'
Common stock issued in exchange for past legal services	164,000	1,000	163,000	'	'
Common stock issued in exchange for past legal services (in shares)	1,000,000	1,000,000	'	'	'
Administrative fee received for previous stock issuance	129	'	129	'	'
Common stock issued for indemnification of legal settlement	'	1,000	-1,000	'	'
Common stock issued for indemnification of legal settlement (in shares)	1,000,000	1,000,000	'	'	'
Employee stock based compensation	193,150	'	193,150	'	'
Warrants issued in exchange for consulting services	13,985	'	13,985	'	'
Net loss for the period	-4,950,953	'	'	'	-4,950,953
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	50,739,312	'	-1,000,000	'

STATEMENTS_OF_SHAREHOLDERS_EQU1

STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $)	12 Months Ended
	Mar. 31, 2013
STATEMENTS OF SHAREHOLDERS' EQUITY	'
Issue price per unit (in dollars per share)	$0.80
Additional common stock issued for cash, issue price (in dollars per share)	$0.01
Common stock issued in exchange for services, issue price (in dollars per share)	$0.80
Warrants exercised for common stock, issue price (in dollars per share)	$0.70

ORGANIZATION_AND_SUMMARY_OF_SI

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Mar. 31, 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 financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, provision for doubtful accounts, sales returns, provision for inventory obsolescence, fair value of acquired intangible assets, useful lives of intangible assets and property and equipment, employee stock options, and contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts recorded could differ materially from those estimates
	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.
	Fair Value of Financial Instruments
	The carrying value of cash and cash equivalents,  accounts payable and notes payable approximate their fair value due to the short-term nature of these instruments.
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with an original maturity of three months or less when purchased to be cash equivalents.  At March 31, 2014 and 2013, the Company held no cash equivalents.
	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:
		March 31,
		2014		2013
	Common stock options and warrants	9,909,295		9,609,295
	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 also maintains a provision for estimated returns and allowances based upon historical experience.  The Company has determined that an allowance was not necessary at March 31, 2014 or 2013.
	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 agreed to but not paid at March 31, 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:
		March 31,			March 31,
		2014			2013
	Raw materials and supplies	$	35,543		$	64,255
	Work in process	25,611			—
	Finished goods	91,663			474,693
		$	152,817		$	538,948
	During the fiscal year ended March 31, 2014, we recorded a lower cost of market write down for inventory of $100,557 due to expected selling prices being lower than cost.  The estimation of the total write-down involves management judgments and assumptions, including assumptions regarding future selling price forecasts, the estimated costs to complete and disposal costs.
	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. Manufacturing equipment was placed into service beginning July 1, 2012.  The Company incurred total depreciation expense of $700,690 and $490,136 for the years ended March 31, 2014 and 2013, respectively.
	During the fiscal year ended March 31, 2014, the Company closed its operations in Hudson, Massachusetts.  With this closing the Company recognized a loss of $129,308 for the disposal of certain fixed assets at the location.  Concurrent with the closing of the Hudson facility, the Company re-evaluated the useful life of certain fixed assets acquired from Apollo Diamond in 2012 and decided that an impairment reserve related to these assets of $381,798 was appropriate.
	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 are no impairment charges during the years ended March 31, 2014 or 2013.
	Income Taxes
	Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized in accordance with Accounting Standards Codification (“ASC”) 740, Accounting for Income Taxes.
	Management has evaluated the potential impact in accounting for uncertainties in income taxes and has determined that it has no significant uncertain income tax positions as of March 31, 2014 or 2013.  Income tax returns subject to review by taxing authorities include March 31, 2010 through March 31, 2014.
	Stock-based Compensation
	Stock-based compensation for the value of stock options is estimated on the date of the grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account implied volatility in the price of the Company’s stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company’s stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment.
	Concentration of Credit Risk
	During the year ended March 31, 2014 the Company had 27 different customers.  One customer accounted for 58% of our total product revenue.  For the year ended March 31, 2013, one customer accounted for 84% of total revenues for the Company and purchased substantially all of the Company’s production output. The second customer purchased a substantial portion of the Company’s by-product inventory and accounted for 11% of total revenues for the Company.
	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.
	In addition, GAAP requires the Company to disclose the fair value for financial assets on both a recurring and non-recurring basis. During June 2012, the Company issued to certain current and former stockholders of Apollo Diamond Gemstone Corporation (“ADGC”) that are accredited investors subscription rights valued at $770,000 for the purchase of ADGC assets disclosed in Note 2 measured at fair value on a nonrecurring basis. The fair value of the ADGC subscription rights was determined using the Black-Scholes model whose assumptions were considered by management to be a Level 3 input.
	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 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (the revised standard). Under the amendments in this updates, a company has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that the it is more likely than not that the indefinite-lived intangible assert is impaired as a basis for determining whether it is necessary to perform the qualitative impairment test in accordance with Topic 350.  The more likely than not threshold is defined as having a likely-hood of more than fifty percent.  If after assessing the qualitative factors, a company determines it does not meet the more likely than not threshold, a company is required to perform the quantitative impairment test by calculating the fair value of an indefinite-lived intangible asset and comparing the fair value with the carrying amount of the asset.  The Amendments in this update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this new standard in the fiscal year ended March 31, 2013 and the adoption did not have a significant impact on its financial statements.
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 and 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 is currently evaluating the impact of the April 1, 2014 adoption of this guidance on its consolidated 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.

ASSET_PURCHASES

ASSET PURCHASES	12 Months Ended
	Mar. 31, 2014
ASSET PURCHASES	'
ASSET PURCHASES	'
	NOTE 2 — ASSET PURCHASES
	On June 5, 2012, the Company acquired certain of the assets of ADGC (the “ADGC Asset Purchase”), consisting primarily of lab-created diamond gemstone-related know-how, inventory, and various intellectual property, in exchange for $100,000 in cash and the right for certain current and former stockholders of ADGC qualifying as accredited investors to acquire up to approximately 1 million shares of common stock of the Company for $0.01 per share (the “ADGC Offering”) with the intent that the ADI Offering be conducted substantially concurrently with the ADGC Offering (collectively, the “ADI/ADGC Stockholder Offering”). The Company paid the $100,000 cash portion of the ADGC Asset Purchase during the month of December 2012. The ADI/ADGC Stockholder Offering began in June and was completed in March 2013. At the date of the transaction, the Company estimated the fair value of such subscription rights to be $0.79 per right and the aggregate fair value of such subscription rights was $790,000.  This amount was credited to additional paid-in capital. The fair value of such rights to acquire shares of common stock of the Company was determined using the Black-Scholes model. Subsequent to the date of the transaction, the Company obtained a third-party valuation to support the fair value of the assets acquired. This valuation determined a slightly lower value of $770,000 for the subscription rights and adjusted the purchase price allocation between inventory and in-process research and development.  Adjustments were made in the March 31, 2013 financial statements to reflect this modification of final purchase price and asset allocation.  The final amounts allocated to the ADGC assets acquired are based upon the results of that valuation appraisal and the following table reflects our final purchase price allocation of the assets:
	Inventory	$	269,000
	In-process research and development	601,000
	Total	$	870,000
	The ADI/ADGC Stockholder Offering was completed in March 2013 and resulted in the issuance of an aggregate of 16,766,773 shares of the Company’s common stock.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Mar. 31, 2014
INTANGIBLE ASSETS	'
INTANGIBLE ASSETS	'
	NOTE 3 — INTANGIBLE ASSETS
	During the year ended March 31, 2014, the Company evaluated its patent portfolio and allocated $601,000 of the previously acquired in-process research and development from the ADGC Asset Purchase to specific patents related to the gemstone market that are being used by the Company for its commercial operations. These patents were considered placed in service by the Company during the quarter ended June 30, 2013.  During the year ended March 31, 2013, the Company evaluated its patent portfolio and allocated $7,534,063 of the previously acquired in-process research and development to specific patents that are being used by the Company for its manufacturing operations. The assigned values of all patents considered in service by the Company are being amortized on a straight-line basis over the remaining effective lives of the patents.
	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:
				March 31,			March 31,
		Life		2014			2013
	Patents, gross	6.75 – 19.46		$	8,135,063		$	7,543,063
	In-process research and development	Indefinite		2,250,435			2,851,435
				10,385,498			10,385,498
	Accumulated amortization			(1,144,858		)	(369,847		)
	Net intangible assets			$	9,240,640		$	10,015,651
	Total amortization expense during the years ended March 31, 2014 and 2013 was $775,011 and $369,847, respectively.
	Total annual amortization expense of finite lived intangible assets is estimated to be as follows:
	Fiscal Year Ending
	March 31, 2015	$	775,011
	March 31, 2016	775,011
	March 31, 2017	775,011
	March 31, 2018	775,011
	March 31, 2019	775,011
	Thereafter	$	3,115,150

NOTES_PAYABLE

NOTES PAYABLE	12 Months Ended
	Mar. 31, 2014
NOTES PAYABLE	'
NOTES PAYABLE	'
	NOTE 4 — NOTES PAYABLE
	On June 21, 2013, the Company entered into a loan agreement (the “Original 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.  The Original 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 Original 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 Original 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 Original 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”), dated October 11, 2013, with Platinum, which amends 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.  The Company may draw on the line to fund working capital.  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 provides 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 has capitalized financing costs related to the Platinum loans of $150,750 that are being amortized over the life of the loans.  The Company recognized $90,917 in amortization expense related to capitalized financing costs during the year ended March 31, 2014.  At March 31, 2014, the total due Platinum including all accrued fees was $1,412,060 and the Company was compliant with all financial debt convents.  At March 31, 2014 the total due Platinum consisted of $1,160,000 in principal borrowings, $121,310 in interest paid with loan advances and $130,750 in commitment and other loan fees.
	The Platinum notes matured on June 20, 2014 and the Company went into default status. In default status, Platinum could foreclose on the loan and has the right to take possession of the collateral including the Company’s fixed assets and intellectual property.  In addition, in default status, Platinum has the right to increase the interest rate on the note by 3% upon 30 day notice to the Company.  To date, Platinum has not taken any action related to this default, including adjusting the interest rate, as the Company continues to pursue additional financing alternatives.

CAPITAL_STOCK

CAPITAL STOCK	12 Months Ended
	Mar. 31, 2014
CAPITAL STOCK	'
CAPITAL STOCK	'
	NOTE 5 — CAPITAL STOCK
	The authorized capital of the Company is 75,000,000 common shares with a par value of $ 0.001 per share.
	During the fiscal year ended March 31, 2013 the Company had the following issuances of capital stock:
	·         The Company issued 1 million subscription rights with an exercise price of $0.01 per share to certain current and former stockholders of ADGC as part of the ADGC asset purchases discussed in Note 2.
	·         The Company issued 4,891,250 units, each consisting of one share of common stock and one warrant for the purchase of a share of common stock at a strike price of $1.60 at a unit price of $0.80 for total net cash proceeds of $3,913,000.
	·         The Company issued 16,766,773 shares of common stock under the ADI and ADGC subscription rights.
	·         The Company issued 46,250 shares of common stock in lieu of cash payments to certain vendors.
	·         The Company issued 19,469 shares upon exercise of certain outstanding warrants;
	During the fiscal year ended March 31, 2014 the Company had the following issuances of capital stock:
	·         The Company issued 1,000,000 shares of common stock for the indemnification of a legal settlement to two members of our Board of Directors.
	·         The Company issued 527,500 shares of common stock as partial compensation to three firms in connection with capital raising activities.
	·         The Company issued 1,000,000 shares of common stock in lieu of cash payments of $164,000 for previous legal services provided to the Company.
	·         The Company issued 375,000 shares of common stock to Theo Strous, a member of the Company’s Board of Directors for his participation on a Special Litigation Committee of the Board of Directors
	·         The Company issued 100,000 shares of common stock to Laurence Zipkin, an unaffiliated third party for his participation on a Special Litigation Committee of the Board of Directors
	The Company had 50,739,312 shares of common stock issued and outstanding as of March 31, 2014 of which 1,000,000 were held in treasury.
	As of March 31, 2014, the Company had 5,566,795 warrants outstanding.  425,545 warrants have exercise prices of $.70 per share and expire in 2016 and 2017.  The warrants were issued by the Company as compensation for consulting work, placement agent services, and in exchange for cash discounts on facility rent and are valued at $0.52 per warrant using the Black-Scholes option pricing model.  The Company had 4,891,250 of warrants outstanding with exercises prices of $1.60 that expire in 2015.  These warrants were issued as part of the units issued during the year ended March 31, 2013.  In addition, during the fiscal year ended March 31, 2013, the Company issued 200,000 warrants which remain outstanding with an exercise price of $1.60 that expire in 2018 in exchange for consulting services and are valued at $0.57 per warrant using the Black-Scholes option pricing model.  During the fiscal year ended March 31, 2014, the Company issued 50,000 warrants at an exercise price of $0.37 that remain outstanding and which expire in 2018 in exchange for consulting services and are valued at $0.28 per share using the Black-Scholes option pricing model.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
	Mar. 31, 2014
SHARE-BASED COMPENSATION	'
SHARE-BASED COMPENSATION	'
	NOTE 6 — 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 shares 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.  The following sets forth the options to purchase shares of the Company’s stock issued and outstanding as of March 31, 2014:
	Options	Shares		Weighted-			Weighted-Average
				Average Exercise			Remaining
				Price			Contractual Term
	Options Outstanding April 1, 2012	—		$	—		—
	Granted	11,417,500		0.85			—
	Exercised	—		—			—
	Expired/Cancelled	(7,325,000	)	0.84			—
	Options Outstanding March 31, 2013	4,092,500		$	0.87		2.29
	Granted	706,250		0.36			—
	Exercised	—		—			—
	Expired/cancelled	(456,250	)	0.73			—
	Options Outstanding March 31, 2014	4,342,500		$	0.77		1.75
	Exercisable at March 31, 2014	1,927,708		$	0.77		1.63
	The intrinsic value of options outstanding and of options exercisable at March 31, 2014 and 2013 was $0 and $299,900, respectively.
	A summary of the status of non-vested shares as of March 31, 2014 and changes during the year ended March 31, 2014 is presented below.
				Weighted Average
				Grant-Date
	Non-vested Shares	Shares		Fair Value
	Non-vested at April 1, 2012	—		$	—
	Granted	11,417,500		0.59
	Vested	(3,626,333	)	0.55
	Expired/cancelled: non-vested	(5,325,000	)	0.59
	Non-vested at March 31, 2013	2,466,167		0.65
	Granted	706,250		0.22
	Vested	(575,625	)	0.45
	Expired/cancelled: non-vested	(182,000	)	0.38
	Non-vested at March 31, 2014	2,414,792		$	0.49
	The following table summarizes information about stock options outstanding by price range as of March 31, 2014:
		Options Outstanding						Options Exercisable
	Range of	Number		Weighted Average		Weighted Average		Number of	Weighted Average
	Exercise Price	Outstanding		Remaining		Exercise Price		Shares	Exercise Price
				Contractual Life
				(years)
	$0.83 - $1.02	2,343,750		1.88		$	0.91	885,333	$	0.92
	$0.70 - $0.80	1,342,500		1.17		0.72		818,500	0.71
	$0.33 - $0.42	656,250		2.49		0.36		223,875	0.41
		4,342,500		1.75		$	0.77	1,927,708	$	0.77
	On March 25, 2013, the Board of Directors authorized the issuance of 500,000 shares of the Company’s common stock to Edward S. Adams, former Chairman of the Board, and 500,000 shares of the Company’s common stock to Michael R. Monahan, a former member of the Board, to indemnify Messrs. Adams and Monahan under applicable law and the Company’s charter documents for shares of Company common stock transferred by them in May 2012 to certain individuals in settlement of a complaint filed by such individuals against Messrs. Adams and Monahan, their respective spouses, the law firm of Adams Monahan LLP, Mr. Joseph Lancia (our former President and Chief Executive Officer), the Company, and, as a nominal defendant, Private Scio.  The Company valued the shares issued to Messrs. Adams and Monahan at the then market value of $0.83 per share and recognized $830,000 as professional and consulting fees related to this authorization for indemnity during the fiscal year ended March 31, 2013.  These shares were issued by the Company during the fiscal year ended March 31, 2014.
	On September 25, 2013, the Company granted nine non-executive employees options to purchase a total of 500,000 shares of the Company’s stock.  These options vest based on the Company meeting various operating metric and cash flow targets.  The exercise price of $0.33 per share is equal to the closing price of a share of the Company’s common stock on the date of grant.  Using the Black-Scholes option pricing model, management has estimated the options issued on September 25, 2013 had a value of $0.21 per option on the date of the grant.  The Black-Scholes model assumptions used were: Expected dividend yield, 0.00%; Risk-free interest rate, 0.66%; Expected life in years, 3.0; Expected volatility, 102.3%.  None of these options were vested upon issuance.  Subsequent to issuance, a portion of these options have vested and the Company has recognized $5,312 in compensation costs for these options in the fiscal year ending March 31, 204.
	On October 1, 2013, the Company’s Board of Directors approved the issuance of options to purchase 68,750 shares of common stock to each of our former board members Messrs. Adams, Linares, and Strous for their services to date through calendar 2013.  Each grant is in accordance with the Company’s director compensation program that provides for the grant of options to purchase 6,250 shares of common stock to each director for each Board meeting held.  All 206,250 options issued have an exercise price of $0.42 that reflects the Company’s closing stock price on the date of grant.  Using the Black-Scholes option pricing model, management has determined the options issued on October 1, 2013 had a value of $0.26 per option on the date of grant.  The Black-Scholes model assumptions used were: Expected dividend yield, 0.00%; Risk-free interest rate, 0.66%; Expected life in years, 3.0; Expected volatility, 102.3%.  Total compensation costs of $54,429 have been recognized for these options during the fiscal year ended March 31, 2014.
	For the years ended March 31, 2014 and 2013, the Company recognized $193,150 and $1,996,426, respectively, as compensation cost for options issued, and recorded related deferred tax asset of $0 for all periods.
	At March 31, 2014, unrecognized compensation expense related to non-vested awards was $1,120,222.  This cost is expected to be recognized over a weighted average period of 1.85 years.  The total fair value of shares vested during the years ended March 31, 2014 and 2013 was $258,512 and $1,873,609, respectively.

OTHER_INCOME_AND_EXPENSE

OTHER INCOME AND EXPENSE	12 Months Ended
	Mar. 31, 2014
OTHER INCOME AND EXPENSE	'
OTHER INCOME AND EXPENSE	'
	NOTE 7 — OTHER INCOME AND EXPENSE
	For the fiscal year ended March 31, 2014, the Company recognized $161,439 in interest expense related to its outstanding note payable.
	The Company recognized $12,522 in other income for the forgiveness of interest expense for the period ended March 31, 2013.

OPERATING_LEASES

OPERATING LEASES	12 Months Ended
	Mar. 31, 2014
OPERATING LEASES	'
OPERATING LEASES	'
	NOTE 8 — OPERATING LEASES
	During the fiscal year ended March 31, 2014, the Company leased office space at locations in Hudson, Massachusetts and Greenville, South Carolina. Under the terms of the leases, the Company is obligated to pay escalation rentals for certain operating expenses and real estate taxes. The Company’s lease in Hudson, Massachusetts expired in January 2014 and the Greenville, South Carolina lease expires in March 2019.  The Company leases electrical equipment in its production facility in South Carolina with these leases expiring during the 2016 fiscal year. The Company also leases two automobiles with lease expirations in fiscal 2015.
	The Company recognizes lease expense on a straight-line basis and recognized $421,038 and $426,023 in lease expense for the fiscal years ending March 31, 2014 and 2013, respectively.  The Company has other liabilities consisting of deferred rent payable of $84,144 and $50,195 at March 31, 2014 and 2013, respectively.  Minimum future rental payments under the leases are summarized as follows:
	2015	$	383,134
	2016	347,851
	2017	361,660
	2018	224,410
	2019	224,410
	2020 and thereafter	$	224,411

RELATED_PARTIES

RELATED PARTIES	12 Months Ended
	Mar. 31, 2014
RELATED PARTIES	'
RELATED PARTIES	'
	NOTE 9 — RELATED PARTIES
	The Company incurred expenses of $19,658 and $106,229 for professional and consulting services provided by Adams Monahan, LLP, a firm in which our former board member, Edward S. Adams and Michael R. Monahan were partners, for the years ended March 31, 2014 and 2013, respectively.  The Company and Adams Monahan LLP terminated their professional relationship on June 30, 2013.
	On March 6, 2013, the Board of Directors retained two then directors, Mr. Michael Monahan and Mr. Theo Strous, to provide consulting services for the Company at a total cost of $11,000 and $4,000 respectively, per month.  The Company recognized $15,000 in consulting expense for these services during the fiscal year ended March 31, 2013 and $45,000 during the fiscal year ended March 31, 2014. These consulting service agreements with both Messrs. Monahan and Strous were terminated effective June 30, 2013.
	On March 25, 2013, the Board of Directors reviewed the facts of previous litigation that was settled in May 2012 and agreed that the Company should accept liability for the settlement and authorized the following to indemnify Messrs. Adams and Monahan, then members of the Board, under applicable law and the Company’s charter documents for expenses incurred and shares of Company common stock and cash transferred by them in settlement of the litigation:  (i) the issuance of 500,000 shares of the Company’s common stock to each of Messrs. Adams and Monahan, (ii) the payment of $90,000 to Mr. Adams for amounts paid by him to settle the complaint, and (iii) any other amounts and expenses paid in connection with stockholder litigation matters involving certain current and former stockholders of the Company.
	During the fiscal year ended March 31, 2013, the Company recognized $946,555 in expense related to the foregoing indemnification.  Of this amount, $830,000 represents non-cash expenses related to the value of the Company common stock to be issued.  On May 21, 2013, the Company issued the 1,000,000 shares previously allocated for indemnification of Messrs. Adams and Monahan and on July 2, 2013, the Company entered into an agreement with Mr. Adams to pay out remaining indemnification related liabilities of $117,305.93 at $7,500 per month through October 2014.
	On May 14, 2013, the Board of Directors created a special committee consisting of then board member Mr. Theo Strous to evaluate a report to the Board of Directors by former counsel to the Company and certain actions of a former member of the Board of Directors and former company officers. The report was completed at the end of June 2013. The Board of Directors approved the payment of $25,000 to Mr. Strous as compensation for his service on the special committee.
	On January 6, 2014, the Board of Directors created a Special Litigation Committee (“SLC”) to consider the merits of shareholder allegations made in ongoing litigation.  The Board appointed the current board member Mr. Theo Strous and Mr. Laurence Zipkin, an unaffiliated third party, to the SLC.  Each member of the committee received at their election a one-time payment of $50,000 plus 100,000 shares of common stock or shares in lieu of such cash and share amount in the amount of 375,000 shares upon completion of the investigation.  The SLC delivered their report to the Board of Directors on March 25, 2014.  Mr. Strous elected to receive his payment in company stock while Mr. Zipkin elected to receive $50,000 in cash plus 100,000 shares.  During the fiscal year ended March 31, 2014, the Company recognized $93,750 in consulting expense for the shares issued to Mr. Strous and $168,750 in total consulting expenses for the SLC.
	As of March 31, 2104, the Company had $215,306 in related party liabilities.

INCOME_TAXES

INCOME TAXES	12 Months Ended
	Mar. 31, 2014
INCOME TAXES	'
INCOME TAXES	'
	NOTE 10 — INCOME TAXES
	There was no current or deferred tax expense (benefit) for the years ended March 31, 2014 and 2013.
	The deferred tax asset (liability) at March 31, 2014 and 2013 consists of the following types of temporary differences and their related tax effects:
		At March 31,			At March 31,
		2014			2013
	Accrued expenses	$	235,998		$	187,640
	Property and equipment	(150,810		)	(112,563		)
	Impairment of fixed assets	142,767
	Capitalized startup/acquisition costs	499,288			633,713
	Federal and state net operating loss carry-forward	3,857,269			2,122,402
	Trade name	—			92,572
	Intangible assets	14,537			(55,685		)
	Nonqualified options and warrants granted for services	—			59,029
	Valuation allowance	(4,599,049		)	(2,927,108		)
	Total	$	—		$	—
	The Company recorded a valuation allowance against its net deferred tax asset at March 31, 2014 and March 31, 2013, as the Company believes that it is more likely than not that this asset will not be realized.
		At March 31, 2014					At March 31, 2013
		Amount			%		Amount			%
	Tax at statutory federal income tax rate	$	(1,683,324	)	(34.0	)%	$	(2,476,000	)	(34.0	)%
	Increase (decrease) resulting from:
	State income tax expense	—			0	%	—			0	%
	Change in valuation allowance	1,671,941			33.8	%	1,846,204			25.3	%
	Incentive stock options	—			0	%	625,235			8.6	%
	Other, net	11,383			0.2	%	4,561			0.1	%
	Total	$	—		0	%	$	—		0	%
	The Company had federal and state net operating loss carry-forwards (“carry-forward”) of $10,231,000 and $5,646,000 at March 31, 2014 and 2013 respectively.  These carry-forwards start to expire in the year 2031.

INVESTMENT_IN_JOINT_VENTURE

INVESTMENT IN JOINT VENTURE	12 Months Ended
	Mar. 31, 2014
INVESTMENT IN JOINT VENTURE	'
INVESTMENT IN JOINT VENTURE	'
	NOTE 11 — INVESTMENT IN JOINT VENTURE
	On September 16, 2013, the Company entered into a series of agreements with SAAMABA, LLC (“SAAMABA”) and S21 Research Holdings (the “Grace Rich Agreements”) to form a joint venture with operations in the People’s Republic of China (“PRC”) to deploy a minimum of 100 Company designed diamond growing machines.  Through the Grace Rich Agreements, the Company owns 30% of Grace Rich LTD, a corporation duly established pursuant to the laws of the Hong Kong Special Administrative Region of the PRC that is an investment and holding company for the factory and distribution center to be formed pursuant to the laws of the PRC as a wholly foreign owned enterprise.
	Under the Grace Rich Agreements, the Company has agreed to license its proprietary technology for the manufacture of diamond gemstones of agreed upon specifications.  In exchange for the license, the Company will receive licensing revenue and 30% ownership in the joint venture.  In addition to the licensed technology, the Grace Rich Agreements include obligations for the Company to provide and be compensated for technology consulting services to the joint venture to support the start-up of operations.
	The initial ownership interests in Grace Rich Limited are as follows:  SAAMABA LLC- 60%; Scio Diamond Technology Corporation — 30% and S21 Holdings- 10%.  The capital contributions required to finance Grace Rich LTD are requirements of SAAMABA, and the Company is not required to make any on-going funding contributions to the joint venture and its ownership stake cannot be reduced from 30%.
	The Company is licensing a portion of its patented technology to Grace Rich LTD and is not directly contributing any of its intellectual property.  The license agreement calls for the Company to receive $250,000 in licensing fees and $750,000 in development fees between October 2013 and June 2014.  In addition, once operations of Grace Rich LTD have commenced, the Company will receive $250 per machine per month in licensing fees with a minimum monthly payment of $25,000 until the joint venture starts to distribute cash to its partners.
	The Company has determined the fair value of the license agreement does not exceed the value of the expected returns from the joint venture and accordingly has established an initial investment value of $0 and has not recorded any gains related to its contribution to the joint venture.  The Company joint venture was in its development stage through March 31, 2014 and did not have any revenues.  Expenses incurred by the joint venture were for planning and startup expenses.  The total loss of the joint venture from inception through March 31, 2014 was $1,043, 945. The Company’s corresponding 30% share of these losses was $313,184.
	As of March 31, 2014, the Company has not guaranteed obligations of the joint venture nor has it committed to provide additional funding. Therefore, the Company’s share of the joint venture’s net loss for the year ended March 31, 2014 were not recognized because the initial carrying value of the Company’s ownership interest in the joint venture was zero.
	Rollforward of the Company’s ownership interest in the joint venture for the year ended March 31, 2014:
	Balance of ownership interest in joint venture at September 16, 2013	$	—
	Aggregate 2014 equity loss — share of joint venture losses	(313,184		)
	2014 equity loss — share of joint venture losses not recognized due to basis limitation	313,184
	Balance of ownership interest in joint venture at March 31, 2014	$	—
	Cumulative unrecognized loss on ownership interest in joint venture at March 31, 2014	$	(313,184	)
	Selected financial results for Grace Rich LTD from inception through March 31, 2014 are as follows:
	Revenues	$	—
	Expenses	1,043,945
	Net Income (Loss)	$	(1,043,945	)
	Total Assets	$	68,297
	Total Liabilities	$	1,112,242
	Total Partners Capital	(1,043,945		)
	Total Liabilities and Partner Capital	$	68,297
	The Company recognized $625,000 in revenues from Grace Rich during the fiscal year ended March 31, 2014. The Company incurred $151,359 of joint venture related expenses during the fiscal year ended March 31, 2014 that were reimbursed by the Grace Rich LTD.  These reimbursements were offset against the Company’s related operating expense.

LITIGATION

LITIGATION	12 Months Ended
	Mar. 31, 2014
LITIGATION	'
LITIGATION	'
	NOTE 12 — LITIGATION
	On July 26, 2013, Bernard M. McPheely, Trustee for the Bernard M. McPheely Revocable Trust Dated May 25, 2012, Thomas P. Hartness, Trustee for the Thomas P. Hartness Revocable Trust Dated July 31, 2010, Brian McPheely and Robert Daisley (collectively, “Plaintiffs”), derivatively and on behalf of the Company, filed a complaint in the Court of Common Pleas of the State of South Carolina, County of Greenville against Edward S. Adams (then our Chairman), Michael R. Monahan (a former member of the Company’s Board of Directors), Robert Linares (a then current member of the Board), Theodorus Strous (a then current member of the Board) and the law firm of Adams Monahan, LLP (collectively, “Defendants”), and the Company, as a nominal defendant (the “Scio Derivative Complaint”).  Bernard M. McPheely is a former member of the Company’s Board of Directors.
	The Scio Derivative Complaint alleged (i) against Defendants, breach of fiduciary duty, corporate waste and unjust enrichment; (ii) against Messrs. Strous and Linares and Adams Monahan LLP, aiding and abetting a breach of fiduciary duty; (iii) against Messrs. Adams and Monahan, civil conspiracy; (iv) against Messrs. Adams, Monahan and Linares, breach of fiduciary duty — controlling shareholder; and (v) against Mr. Strous and Adams Monahan LLP, aiding and abetting a breach of controlling shareholder duty.  The allegations relate to, among other things, certain actions allegedly taken by defendants in connection with: the acquisition by the Company of certain assets of ADI (the “ADI Asset Purchase”); the ADGC Asset Purchase discussed in Note 2 above; the Company’s agreement to provide certain current and former stockholders of ADI and ADGC the opportunity to acquire up to approximately 16 million and 1 million shares, respectively, of common stock of the Company for $0.01 per share (collectively, the “ADI/ADGC Offering”); the provision of legal services by Adams Monahan LLP to the Company; certain equity issuances by the Company following the ADI/ADGC Offering; certain bonuses and other payments paid to members of the Board of Directors; and certain indemnification obligations undertaken by the Company in favor of Messrs. Adams and Monahan.
	Plaintiffs were seeking direct and consequential damages sustained by the Company in an amount to be established through proof at trial, plus pre-judgment and post-judgment interest; appropriate equitable relief to remedy the alleged breaches of fiduciary duties; reasonable attorney’s fees and costs for the Company incurred in prosecuting the action; and other relief as deemed by the court to be just and proper.
	Defendants removed the Scio Derivative Complaint to the U.S. District Court for the District of South Carolina, Greenville Division (the “Federal Court”) and filed a motion to dismiss the complaint on October 4, 2013.  On December 16, 2013, the Federal Court granted the Defendants’ motion to dismiss, in part based on the plaintiffs’ lack of standing, and the remaining claims were dismissed by the court without prejudice in favor of mandatory arbitration proceedings.  As of March 31, 2014, arbitration proceedings had not commenced.
	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 allegations in the ADI Derivative Complaint are duplicative of the Scio Derivative Complaint allegations concerning ADI, which were dismissed by the Federal Court’s December 16, 2013 order in the Scio Derivative Complaint and repeat almost verbatim the allegations from earlier lawsuits filed and dismissed in 2012 against the Defendants, which were previously disclosed in the Company’s Form 10-Q for the nine months ended December 31, 2012 and Form 10-K for fiscal year ended March 31, 2013.  Sennott is seeking direct and consequential damages sustained by Sennott in an amount to be established through proof at trial, plus pre-judgment and post-judgment interest; appropriate equitable relief to remedy the allegedly wrongful acts; reasonable attorney’s fees and costs incurred in prosecuting the action; and other relief as deemed by the court to be just and proper.
	Both the Scio Derivative Complaint and the ADI Derivative Complaint were effectively settled on June 23, 2014 as detailed in NOTE 13- SUBSEQUENT EVENTS below.
	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.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Mar. 31, 2014
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	NOTE 13 — SUBSEQUENT EVENTS
	On April 8, 2014, the Board of Directors of the Company adopted and approved effective April 8, 2014, the Amended and Restated Bylaws of Scio Diamond Technology Corporation. The Amended and Restated Bylaws amend and restate the Company’s bylaws in their entirety.
	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.  Through June 30, 2014, the Company had issued 60,000 shares to Mr. Cunningham.  These shares were valued at an average of $0.44 and the Company will recognize $26,200 in expense for these shares.
	On April 15, 2014, Scio Diamond Technology Corporation (the “Company”) entered into a Rights Agreement between the Company and Empire Stock Transfer Inc., as Rights Agent (as amended from time to time, the “Rights Agreement”) that was previously approved by the Board of Directors of the Company.
	In connection with the Rights Agreement, a dividend was declared of one common stock purchase right (individually, a “Right” and collectively, the “Rights”) for each share of common stock, par value $0.001 per share (the “Common Stock”), of the Company outstanding at the close of business on April 25, 2014 (the “Record Date”).  Each Right entitled the registered holder thereof, after the Rights become exercisable and until April 15, 2017 (or the earlier redemption, exchange or termination of the Rights), to purchase from the Company one share of Common Stock of the Company at a price of $1.20 per share of Common Stock (the “Purchase Price”).  Until the earlier to occur of (i) the close of business on the tenth business day following a public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 17% or more of the Common Stock (an “Acquiring Person”) or (ii) the close of business on the tenth business day (or such later date as may be determined by action of the Board of Directors prior to such time as any person or group of affiliated or associated persons becomes an Acquiring Person) following the commencement or announcement of an intention to make a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of affiliated or associated persons of 17% or more of the Common Stock (the earlier of (i) and (ii) being called the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Stock certificates outstanding as of the Record Date, by such Common Stock certificates, or, with respect to any uncertificated Common Stock registered in book entry form, by notation in book entry, in either case together with a copy of the Summary of Rights attached as Exhibit B to the Rights Agreement.  Under the Rights Agreement, synthetic ownership of Common Stock in the form of derivative securities counts towards the 17% ownership threshold, to the extent actual shares of Common Stock equivalent to the economic exposure created by the derivative security are directly or indirectly beneficially owned by a counterparty to such derivative security.
	The Rights Agreement provided that any person who beneficially owned 17% or more of the Common Stock immediately prior to the first public announcement of the adoption of the Rights Agreement, together with any affiliates and associates of that person (each an “Existing Holder”), shall not be deemed to be an “Acquiring Person” for purposes of the Rights Agreement unless an Existing Holder becomes the beneficial owner of one or more additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Stock in Common Stock or pursuant to a split or subdivision of the outstanding Common Stock).  However, if upon acquiring beneficial ownership of one or more additional shares of Common Stock, the Existing Holder does not beneficially own 17% or more of the Common Stock then outstanding, the Existing Holder shall not be deemed to be an “Acquiring Person” for purposes of the Rights Agreement.  On June 22, 2014, the Board of Directors accelerated the expiration date of the Rights to June 22, 2014 and the Rights effectively terminated.
	On May 27, 2014, the Board of Directors appointed Mr. James Korn and Mr. Gerald McGuire as independent members to the Board.  Each of Messrs. Korn and McGuire were provided 250,000 shares of restricted stock upon their appointment to the Board.
	On June 12, 2014, the Board of Directors decided to terminate without cause the employment of Chief Executive Officer, Michael McMahon and Chief Financial Officer, Jonathan Pfohl.  The Board named then Board Member Gerald McGuire as interim Chief Executive Officer and appointed Douglas Walker as interim Chief Financial Officer.  The Board also named Michael Laub as Chief Restructuring Officer.
	On June 16, 2014, the Board of Directors appointed Bruce Likly as a member of Board and further appointed Mr. Likly to serve as the Co-Chairman of the Board.  Mr. Likly was provided with a restricted share grant of 4,000,000 shares upon his appointment to the Board.
	On June 20, 2014, the Board of Directors granted restricted stock grants to Mr. Michael Laub of 50,000 shares for previously performed services rendered to the Company.  The Company does not anticipate recognizing any expense for this restricted stock grant since it was in exchange for expenses previously accrued by the Company.
	In addition, on June 20, 2014, the Company’s $1.5 million loan facilities with Platinum went into default status.  In default status, Platinum could foreclose on the loan and has the right to take possession of the collateral including the Company’s fixed assets and intellectual property.  In addition, in default status, Platinum has the right to increase the interest rate on the note by 3% upon 30 day notice to the Company.  To date, Platinum has not taken any action related to this default, including adjusting the interest rate, as the Company continues to pursue additional financing alternatives.
	On June 23, 2014, the Company entered into a settlement agreement (the “Settlement Agreement”) by and among Edward Adams, Michael 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 sbut 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.
	The Settlement Agreement contains various other terms and provisions, including with respect to the transfer of one million shares of Common Stock to the Save Scio Group by the Adams Group, a portion of which is allocated for reimbursement of the Save Scio Group’s out-of-pocket expenses in connection with the nomination of the Save Scio Nominees and past litigation involving certain members of the Adams Group and the Save Scio Group (the Scio Derivative Complaint and the ADI Derivative Complaint collectively known as the “Litigation”), the Save Scio Group’s withdrawal of the Litigation, termination of the Save Scio Group’s consent solicitation, and accelerated expiration of the Company’s stockholder Rights Agreement adopted on April 15, 2014. Also included in the settlement is the forfeiture of one million shares of common stock by Messrs. Edward Adams and Michael Monahan for cancellation by Scio.
	Concurrent with the Settlement Agreement, the equity granted to Messrs. Korn, Likly, and McGuire for their service on the Board of Directors consisting of 250,000, 4,000,000 and 250,000 restricted shares, respectively was returned to the Company.  In addition, all equity granted and contemplated to be granted to Messrs. McGuire, Walker and Laub for their services as executive officers of the Company was effectively returned to the Company.  The Company does not plan to recognize any expense for the restricted shares granted and returned to the Company since none of the grants had vested at the time of their return to the Company.
	In addition, the Settlement agreement provides for the release of all liabilities amongst the parties.  The Company estimates that this will result in the reversal of over $340,000 of past accrued liabilities and expenses due to the settling parties for board fees, management committee fees, consulting services, indemnification of board members and legal expenses.
	On June 24, 2014, the Board of Directors named Mr. Bernard M. McPheely Chairman and Bruce Likly Vice-Chairman.
	On July 11, 2014, the Board of Directors named Gerald McGuire, President, Chief Executive Officer and Director of the of the Company.
	On July 15, 2014, the Board of Directors approved the Company pursue a Regulation D offering of up to 2,000,000 shares of common stock to accredited investors at a price of $0.30.  The Company may raise up to $600,000 from this offering and does not anticipate incurring any material expenses related to the offering.  Through August 8, 2014, the Company has issued 750,000 shares under this offering and raised $225,000.

ORGANIZATION_AND_SUMMARY_OF_SI1

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Mar. 31, 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 financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, provision for doubtful accounts, sales returns, provision for inventory obsolescence, fair value of acquired intangible assets, useful lives of intangible assets and property and equipment, employee stock options, and contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts recorded could differ materially from those estimates
	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.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The carrying value of cash and cash equivalents,  accounts payable and notes payable approximate their fair value due to the short-term nature of these instruments.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with an original maturity of three months or less when purchased to be cash equivalents.  At March 31, 2014 and 2013, the Company held no cash equivalents.
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:
		March 31,
		2014		2013
	Common stock options and warrants	9,909,295		9,609,295
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 also maintains a provision for estimated returns and allowances based upon historical experience.  The Company has determined that an allowance was not necessary at March 31, 2014 or 2013.
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 agreed to but not paid at March 31, 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:
		March 31,			March 31,
		2014			2013
	Raw materials and supplies	$	35,543		$	64,255
	Work in process	25,611			—
	Finished goods	91,663			474,693
		$	152,817		$	538,948
	During the fiscal year ended March 31, 2014, we recorded a lower cost of market write down for inventory of $100,557 due to expected selling prices being lower than cost.  The estimation of the total write-down involves management judgments and assumptions, including assumptions regarding future selling price forecasts, the estimated costs to complete and disposal costs.
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. Manufacturing equipment was placed into service beginning July 1, 2012.  The Company incurred total depreciation expense of $700,690 and $490,136 for the years ended March 31, 2014 and 2013, respectively.
	During the fiscal year ended March 31, 2014, the Company closed its operations in Hudson, Massachusetts.  With this closing the Company recognized a loss of $129,308 for the disposal of certain fixed assets at the location.  Concurrent with the closing of the Hudson facility, the Company re-evaluated the useful life of certain fixed assets acquired from Apollo Diamond in 2012 and decided that an impairment reserve related to these assets of $381,798 was appropriate.
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 are no impairment charges during the years ended March 31, 2014 or 2013.
Income Taxes	'
	Income Taxes
	Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized in accordance with Accounting Standards Codification (“ASC”) 740, Accounting for Income Taxes.
	Management has evaluated the potential impact in accounting for uncertainties in income taxes and has determined that it has no significant uncertain income tax positions as of March 31, 2014 or 2013.  Income tax returns subject to review by taxing authorities include March 31, 2010 through March 31, 2014.
Stock-based Compensation	'
	Stock-based Compensation
	Stock-based compensation for the value of stock options is estimated on the date of the grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account implied volatility in the price of the Company’s stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company’s stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment.
Concentration of Credit Risk	'
	Concentration of Credit Risk
	During the year ended March 31, 2014 the Company had 27 different customers.  One customer accounted for 58% of our total product revenue.  For the year ended March 31, 2013, one customer accounted for 84% of total revenues for the Company and purchased substantially all of the Company’s production output. The second customer purchased a substantial portion of the Company’s by-product inventory and accounted for 11% of total revenues for the Company.
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.
	In addition, GAAP requires the Company to disclose the fair value for financial assets on both a recurring and non-recurring basis. During June 2012, the Company issued to certain current and former stockholders of Apollo Diamond Gemstone Corporation (“ADGC”) that are accredited investors subscription rights valued at $770,000 for the purchase of ADGC assets disclosed in Note 2 measured at fair value on a nonrecurring basis. The fair value of the ADGC subscription rights was determined using the Black-Scholes model whose assumptions were considered by management to be a Level 3 input.
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 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (the revised standard). Under the amendments in this updates, a company has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that the it is more likely than not that the indefinite-lived intangible assert is impaired as a basis for determining whether it is necessary to perform the qualitative impairment test in accordance with Topic 350.  The more likely than not threshold is defined as having a likely-hood of more than fifty percent.  If after assessing the qualitative factors, a company determines it does not meet the more likely than not threshold, a company is required to perform the quantitative impairment test by calculating the fair value of an indefinite-lived intangible asset and comparing the fair value with the carrying amount of the asset.  The Amendments in this update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this new standard in the fiscal year ended March 31, 2013 and the adoption did not have a significant impact on its financial statements.
	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 and 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 is currently evaluating the impact of the April 1, 2014 adoption of this guidance on its consolidated 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)	12 Months Ended
	Mar. 31, 2014
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Summary of anti-dilutive securities excluded from the calculation of diluted net loss per share	'
		March 31,
		2014		2013
	Common stock options and warrants	9,909,295		9,609,295
Schedule of components of inventories	'
		March 31,			March 31,
		2014			2013
	Raw materials and supplies	$	35,543		$	64,255
	Work in process	25,611			—
	Finished goods	91,663			474,693
		$	152,817		$	538,948
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

ASSET_PURCHASES_Tables

ASSET PURCHASES (Tables) (ADGC Asset Purchase)	12 Months Ended
	Mar. 31, 2014
ADGC Asset Purchase	'
Asset Purchases	'
Schedule of purchase price allocation of the assets	'
	Inventory	$	269,000
	In-process research and development	601,000
	Total	$	870,000

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Mar. 31, 2014
INTANGIBLE ASSETS	'
Schedule of intangible assets	'
				March 31,			March 31,
		Life		2014			2013
	Patents, gross	6.75 – 19.46		$	8,135,063		$	7,543,063
	In-process research and development	Indefinite		2,250,435			2,851,435
				10,385,498			10,385,498
	Accumulated amortization			(1,144,858		)	(369,847		)
	Net intangible assets			$	9,240,640		$	10,015,651
Schedule of estimated annual amortization expense of intangible assets	'
	Fiscal Year Ending
	March 31, 2015	$	775,011
	March 31, 2016	775,011
	March 31, 2017	775,011
	March 31, 2018	775,011
	March 31, 2019	775,011
	Thereafter	$	3,115,150

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Mar. 31, 2014
SHARE-BASED COMPENSATION	'
Schedule of options to purchase shares of the Company's stock issued and outstanding	'
	Options	Shares		Weighted-			Weighted-Average
				Average Exercise			Remaining
				Price			Contractual Term
	Options Outstanding April 1, 2012	—		$	—		—
	Granted	11,417,500		0.85			—
	Exercised	—		—			—
	Expired/Cancelled	(7,325,000	)	0.84			—
	Options Outstanding March 31, 2013	4,092,500		$	0.87		2.29
	Granted	706,250		0.36			—
	Exercised	—		—			—
	Expired/cancelled	(456,250	)	0.73			—
	Options Outstanding March 31, 2014	4,342,500		$	0.77		1.75
	Exercisable at March 31, 2014	1,927,708		$	0.77		1.63
Summary of the status of non-vested shares	'
				Weighted Average
				Grant-Date
	Non-vested Shares	Shares		Fair Value
	Non-vested at April 1, 2012	—		$	—
	Granted	11,417,500		0.59
	Vested	(3,626,333	)	0.55
	Expired/cancelled: non-vested	(5,325,000	)	0.59
	Non-vested at March 31, 2013	2,466,167		0.65
	Granted	706,250		0.22
	Vested	(575,625	)	0.45
	Expired/cancelled: non-vested	(182,000	)	0.38
	Non-vested at March 31, 2014	2,414,792		$	0.49
Summary of information about stock options outstanding by price range	'
		Options Outstanding						Options Exercisable
	Range of	Number		Weighted Average		Weighted Average		Number of	Weighted Average
	Exercise Price	Outstanding		Remaining		Exercise Price		Shares	Exercise Price
				Contractual Life
				(years)
	$0.83 - $1.02	2,343,750		1.88		$	0.91	885,333	$	0.92
	$0.70 - $0.80	1,342,500		1.17		0.72		818,500	0.71
	$0.33 - $0.42	656,250		2.49		0.36		223,875	0.41
		4,342,500		1.75		$	0.77	1,927,708	$	0.77

OPERATING_LEASES_Tables

OPERATING LEASES (Tables)	12 Months Ended
	Mar. 31, 2014
OPERATING LEASES	'
Summary of the minimum future rental payments under the leases	'
	2015	$	383,134
	2016	347,851
	2017	361,660
	2018	224,410
	2019	224,410
	2020 and thereafter	$	224,411

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
	Mar. 31, 2014
INCOME TAXES	'
Schedule of deferred tax asset (liability)	'
		At March 31,			At March 31,
		2014			2013
	Accrued expenses	$	235,998		$	187,640
	Property and equipment	(150,810		)	(112,563		)
	Impairment of fixed assets	142,767
	Capitalized startup/acquisition costs	499,288			633,713
	Federal and state net operating loss carry-forward	3,857,269			2,122,402
	Trade name	—			92,572
	Intangible assets	14,537			(55,685		)
	Nonqualified options and warrants granted for services	—			59,029
	Valuation allowance	(4,599,049		)	(2,927,108		)
	Total	$	—		$	—
Schedule of reconciliation of income tax expense (benefit)	'
		At March 31, 2014					At March 31, 2013
		Amount			%		Amount			%
	Tax at statutory federal income tax rate	$	(1,683,324	)	(34.0	)%	$	(2,476,000	)	(34.0	)%
	Increase (decrease) resulting from:
	State income tax expense	—			0	%	—			0	%
	Change in valuation allowance	1,671,941			33.8	%	1,846,204			25.3	%
	Incentive stock options	—			0	%	625,235			8.6	%
	Other, net	11,383			0.2	%	4,561			0.1	%
	Total	$	—		0	%	$	—		0	%

INVESTMENT_IN_JOINT_VENTURE_Ta

INVESTMENT IN JOINT VENTURE (Tables)	12 Months Ended
	Mar. 31, 2014
INVESTMENT IN JOINT VENTURE	'
Schedule of rollforward of the Company's ownership interest in the joint venture	'
	Rollforward of the Company’s ownership interest in the joint venture for the year ended March 31, 2014:
	Balance of ownership interest in joint venture at September 16, 2013	$	—
	Aggregate 2014 equity loss — share of joint venture losses	(313,184		)
	2014 equity loss — share of joint venture losses not recognized due to basis limitation	313,184
	Balance of ownership interest in joint venture at March 31, 2014	$	—
	Cumulative unrecognized loss on ownership interest in joint venture at March 31, 2014	$	(313,184	)
Schedule of selected financial results for Grace Rich LTD	'
	Selected financial results for Grace Rich LTD from inception through March 31, 2014 are as follows:
	Revenues	$	—
	Expenses	1,043,945
	Net Income (Loss)	$	(1,043,945	)
	Total Assets	$	68,297
	Total Liabilities	$	1,112,242
	Total Partners Capital	(1,043,945		)
	Total Liabilities and Partner Capital	$	68,297

ORGANIZATION_AND_SUMMARY_OF_SI3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive securities excluded from the calculation of diluted net loss per share	'	'
Cash equivalents	$0	$0
Common stock options and warrants excluded from the calculation of diluted net loss per share (in shares)	9,909,295	9,609,295
Other Receivables	'	'
Other receivables	89,192	'
Inventories	'	'
Raw materials and supplies	35,543	64,255
Work in process	25,611	'
Finished goods	91,663	474,693
Inventory, net	152,817	538,948
Inventory reserves	100,557	'
Property, Plant and Equipment	'	'
Total depreciation expense	700,690	490,136
Loss on disposal of equipment	129,308	'
Reserve for loss on impairment of fixed assets acquired from Apollo Diamond in 2012	381,798	'
Operations in Hudson, Massachusetts	'	'
Property, Plant and Equipment	'	'
Loss on disposal of equipment	$129,308	'
Machinery and equipment | Minimum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'3 years	'
Machinery and equipment | Maximum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'15 years	'
Furniture and fixtures | Minimum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'3 years	'
Furniture and fixtures | Maximum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'10 years	'
Engineering equipment | Minimum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'5 years	'
Engineering equipment | Maximum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'12 years	'
Leasehold improvements | Minimum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'3 years	'
Leasehold improvements | Maximum	'	'
Property, Plant and Equipment	'	'
Estimated useful lives	'7 years	'

ORGANIZATION_AND_SUMMARY_OF_SI4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Intangible Assets	'	'
Impairment charges	$0	$0

ORGANIZATION_AND_SUMMARY_OF_SI5

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income taxes	'	'
Significant uncertain income tax positions liability	0	0
Revenues | Customer concentration	'	'
Concentration of credit risk	'	'
Number of customers	27	'
Revenues | Customer concentration | First customer	'	'
Concentration of credit risk	'	'
Concentration risk percentage	58.00%	84.00%
Revenues | Customer concentration | Second customer	'	'
Concentration of credit risk	'	'
Concentration risk percentage	'	11.00%

ORGANIZATION_AND_SUMMARY_OF_SI6

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (ADGC, USD $)	Mar. 31, 2014	Jun. 05, 2012
Fair Value Measurement	'	'
Fair value of subscription rights	$770,000	$790,000
Nonrecurring basis | Level 3	'	'
Fair Value Measurement	'	'
Fair value of subscription rights	'	$770,000

ASSET_PURCHASES_Details

ASSET PURCHASES (Details) (USD $)	0 Months Ended	12 Months Ended
	Jun. 05, 2012	Mar. 31, 2013	Mar. 31, 2014
ADGC Asset Purchase	'	'	'
Asset Purchases	'	'	'
Cash portion of purchase price	$100,000	'	'
Number of shares of common stock issued as consideration for acquisition	1,000,000	1,000,000	'
Price per share of common stock issuable as subscription rights (in dollars per share)	$0.01	$0.01	'
Fair value of subscription rights	790,000	'	770,000
Fair value of subscription rights (in dollars per right)	$0.79	'	'
Purchase price allocation of the assets	'	'	'
Inventory	269,000	'	'
In-process research and development	601,000	'	'
Total	$870,000	'	'
ADI and ADGC	'	'	'
Asset Purchases	'	'	'
Number of shares of common stock issued as consideration for acquisition	'	16,766,773	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
INTANGIBLE ASSETS	'	'
Gross intangible assets	$10,385,498	$10,385,498
Accumulated amortization	1,144,858	369,847
Net intangible assets	9,240,640	10,015,651
Amortization expense	775,011	369,847
In-process research and development	'	'
INTANGIBLE ASSETS	'	'
Acquired finite lived intangible assets	2,250,435	2,851,435
Patent	'	'
INTANGIBLE ASSETS	'	'
Acquired finite lived intangible assets	8,135,063	7,534,063
Patent | ADGC Asset Purchase	'	'
INTANGIBLE ASSETS	'	'
Acquired finite lived intangible assets	$601,000	'
Patent | Minimum	'	'
INTANGIBLE ASSETS	'	'
Amortization period	'6 years 9 months	'
Patent | Maximum	'	'
INTANGIBLE ASSETS	'	'
Amortization period	'19 years 5 months 16 days	'

INTANGIBLE_ASSETS_Details_2

INTANGIBLE ASSETS (Details 2) (USD $)	Mar. 31, 2014
Estimated annual amortization expense of intangible assets	'
2015	$775,011
2016	775,011
2017	775,011
2018	775,011
2019	775,011
Thereafter	$3,115,150

NOTES_PAYABLE_Details

NOTES PAYABLE (Details) (USD $)	0 Months Ended	12 Months Ended				0 Months Ended
	Jun. 20, 2014	Mar. 31, 2014	Oct. 11, 2013	Jun. 21, 2013	Mar. 31, 2014	Oct. 11, 2013	Oct. 11, 2013
	Line of Credit	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	'	'	'
Loan draw	'	'	'	'	'	'	280,750
Annual interest rate (as a percent)	'	18.00%	'	'	'	18.00%	'
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	'
Applicable fees	'	'	'	'	'	'	30,750
Interest reserve established	'	'	90,000	'	'	'	133,500
Accommodation fees	'	'	'	'	'	25,000	'
Closing fees	'	'	'	'	'	3,250	'
Financing costs capitalized	'	'	150,750	'	'	'	'
Amortization expense related to capitalized financing costs	'	90,917	'	'	'	'	'
Outstanding balance	'	1,412,060	'	'	'	'	'
Amount of principal borrowings in total outstanding due	'	1,160,000	'	'	'	'	'
Amount of interest paid with loan advances in total outstanding due	'	121,310	'	'	'	'	'
Amount of commitment and other loan fees in total outstanding due	'	$130,750	'	'	'	'	'
Percentage increase in interest rate on the note in default status	3.00%	'	'	'	'	'	'
Notice period to increase the interest rate of loan in default status	'30 days	'	'	'	'	'	'

CAPITAL_STOCK_Details

CAPITAL STOCK (Details) (USD $)

12 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2013

Jul. 26, 2013

Jun. 05, 2012

Mar. 31, 2013

item

Theo Strous

Laurence Zipkin

Warrants with exercise prices of $0.37 per share

Warrants with exercise prices of $.70 per share

Warrants with exercise prices of $1.60 per share that expire in 2015

Warrants with exercise prices of $1.60 per share that expire in 2018

Warrants with exercise prices of $1.60 per share that expire in 2018

ADI and ADGC

ADI and ADGC

ADGC Asset Purchase

ADGC Asset Purchase

CAPITAL STOCK

'

'

'

'

'

'

'

'

'

'

'

'

'

Common shares, authorized

75,000,000

75,000,000

'

'

'

'

'

'

'

'

'

'

'

Common stock, par value (in dollars per share)

$0.00

$0.00

'

'

'

'

'

'

'

'

$0.01

'

'

Subscription rights issued (in shares)

'

'

'

'

'

'

'

'

'

16,766,773

'

1,000,000

1,000,000

Exercise price per share (in dollars per share)

'

'

'

'

'

'

'

'

'

'

'

$0.01

$0.01

Number of units issued (in shares)

'

4,891,250

'

'

'

'

'

'

'

'

'

'

'

Number of shares of common stock in each unit issued

'

1

'

'

'

'

'

'

'

'

'

'

'

Number of warrants in each unit issued

'

1

'

'

'

'

'

'

'

'

'

'

'

Strike price (in dollars per share)

'

$1.60

'

'

'

'

'

'

'

'

'

'

'

Issue price per unit (in dollars per share)

'

$0.80

'

'

'

'

'

'

'

'

'

'

'

Total net cash proceeds from sale of units

'

$3,913,000

'

'

'

'

'

'

'

'

'

'

'

Common stock issued in exchange for services (in shares)

527,500

46,250

'

'

'

'

'

'

'

'

'

'

'

Shares issued upon exercise of certain outstanding warrants

'

19,469

'

'

'

'

'

'

'

'

'

'

'

Common stock issued for indemnification of legal settlement (in shares)

1,000,000

'

'

'

'

'

'

'

'

'

'

'

'

Number of board members to whom common stock is issued for indemnification of legal settlement

2

'

'

'

'

'

'

'

'

'

'

'

'

Number of firms to whom common stock is issued as partial compensation in connection with capital raising activities

3

'

'

'

'

'

'

'

'

'

'

'

'

Common stock issued in exchange for past legal services (in shares)

1,000,000

'

'

'

'

'

'

'

'

'

'

'

'

Common stock issued in exchange for past legal services

$164,000

'

'

'

'

'

'

'

'

'

'

'

'

Common Stock issued for participation on a Special Litigation Committee (in shares)

'

'

375,000

100,000

'

'

'

'

'

'

'

'

'

Common stock, outstanding (in shares)

50,739,312

47,736,812

'

'

'

'

'

'

'

'

'

'

'

Shares held in treasury

1,000,000

1,000,000

'

'

'

'

'

'

'

'

'

'

'

Warrants issued in exchange for consulting services (in shares)

'

'

'

'

'

'

'

50,000

200,000

'

'

'

'

Fair value (in dollars per share)

$0.52

'

'

'

$0.28

$0.52

'

$0.28

$0.57

'

'

'

'

Common stock, issued (in shares)

50,739,312

47,736,812

'

'

'

'

'

'

'

'

'

'

'

Warrants outstanding

5,566,795

'

'

'

50,000

425,545

4,891,250

'

200,000

'

'

'

'

Exercise price (in dollars per share)

'

'

'

'

$0.37

$0.70

$1.60

$0.37

$1.60

'

'

'

'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)

12 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

7-May-12

Oct. 02, 2013

Mar. 31, 2014

Mar. 25, 2013

Oct. 02, 2013

Oct. 02, 2013

Oct. 02, 2013

Sep. 25, 2013

Mar. 31, 2014

Mar. 25, 2013

Stock options

Stock options

Stock options

Board of Directors

Board of Directors

Edward S. Adams

Edward S. Adams

Robert Linares

Theodorus Strous

Non-executive employee

Non-executive employee

Michael R. Monahan

item

Stock options

Stock options

Stock options

Stock options

Stock options

item

Share-based compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of equity-based compensation plans

'

'

1

'

'

'

'

'

'

'

'

'

'

'

Number of shares of common stock authorized under the 2012 Share Incentive Plan

'

'

'

'

5,000,000

'

'

'

'

'

'

'

'

'

Remaining shares available for issuance under the plan

'

'

'

'

'

'

'

'

68,750

68,750

68,750

'

'

'

Number of options to each director for each board meeting held

'

'

'

'

'

6,250

'

'

'

'

'

'

'

'

Assumptions used to calculate fair value of options

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Weighted average calculated value of options granted (in dollars per share)

'

'

'

'

'

$0.26

'

'

'

'

'

$0.21

'

'

Expected dividend yield (as a percent)

'

'

'

'

'

'

0.00%

'

'

'

'

'

0.00%

'

Risk-free interest rate (as a percent)

'

'

'

'

'

'

0.66%

'

'

'

'

'

0.66%

'

Expected life

'

'

'

'

'

'

'3 years

'

'

'

'

'

'3 years

'

Expected volatility (as a percent)

'

'

'

'

'

'

102.30%

'

'

'

'

'

102.30%

'

Options

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding at the beginning of the period (in shares)

'

'

4,092,500

'

'

'

'

'

'

'

'

'

'

'

Granted (in shares)

'

'

706,250

11,417,500

'

206,250

'

'

'

'

'

500,000

'

'

Expired/Cancelled (in shares)

'

'

-456,250

-7,325,000

'

'

'

'

'

'

'

'

'

'

Options outstanding at the end of the period (in shares)

'

'

4,342,500

4,092,500

'

'

'

'

'

'

'

'

'

'

Options exercisable at the end of the period (in shares)

'

'

1,927,708

'

'

'

'

'

'

'

'

'

'

'

Weighted Average Exercise Price

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding at the beginning of the period (in dollars per share)

'

'

$0.87

'

'

'

'

'

'

'

'

'

'

'

Granted (in dollars per share)

'

'

$0.36

$0.85

'

'

'

'

'

'

'

$0.33

'

'

Expired/cancelled (in dollars per share)

'

'

$0.73

$0.84

'

'

'

'

'

'

'

'

'

'

Options outstanding at the end of the period (in dollars per share)

'

'

$0.77

$0.87

'

$0.42

'

'

'

'

'

'

'

'

Options exercisable at the end of the period (in dollars per share)

'

'

$0.77

'

'

'

'

'

'

'

'

'

'

'

Weighted-Average Remaining Contractual Term

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding at the beginning of the period

'

'

'1 year 9 months

'2 years 3 months 14 days

'

'

'

'

'

'

'

'

'

'

Options outstanding at the end of the period

'

'

'1 year 9 months

'2 years 3 months 14 days

'

'

'

'

'

'

'

'

'

'

Exercisable at the end of the period

'

'

'1 year 7 months 17 days

'

'

'

'

'

'

'

'

'

'

'

Intrinsic value of options outstanding and of options exercisable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Intrinsic value of options outstanding

'

'

$0

$299,900

'

'

'

'

'

'

'

'

'

'

Intrinsic value of options exercisable

'

'

0

299,900

'

'

'

'

'

'

'

'

'

'

Shares

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the beginning of the period (in shares)

'

'

2,466,167

'

'

'

'

'

'

'

'

'

'

'

Granted (in shares)

'

'

706,250

11,417,500

'

'

'

'

'

'

'

'

'

'

Vested (in shares)

'

'

-575,625

-3,626,333

'

'

'

'

'

'

'

'

'

'

Expired/cancelled: non-vested (in shares)

'

'

-182,000

-5,325,000

'

'

'

'

'

'

'

'

'

'

Non-vested at the end of the period (in shares)

'

'

2,414,792

2,466,167

'

'

'

'

'

'

'

'

'

'

Weighted Average Grant-Date Fair Value

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-vested at the beginning of the period (in dollars per share)

'

'

$0.65

'

'

'

'

'

'

'

'

'

'

'

Granted (in dollars per share)

'

'

$0.22

$0.59

'

'

'

'

'

'

'

'

'

'

Vested (in dollars per share)

'

'

$0.45

$0.55

'

'

'

'

'

'

'

'

'

'

Expired/cancelled: non-vested (in dollars per share)

'

'

$0.38

$0.59

'

'

'

'

'

'

'

'

'

'

Non-vested at the end of the period (in dollars per share)

'

'

$0.49

$0.65

'

'

'

'

'

'

'

'

'

'

Common shares, authorized

75,000,000

75,000,000

'

'

'

'

'

500,000

'

'

'

'

'

500,000

Market value per share (in dollars per share)

$0.83

'

'

'

'

'

'

'

'

'

'

'

'

'

Professional and consulting fees related to authorization for indemnity

830,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of employees to whom options to purchase shares of the company's stock are given

'

'

'

'

'

'

'

'

'

'

'

9

'

'

Options vested immediately on the date of grant (in shares)

'

'

'

'

'

'

'

'

'

'

'

0

'

'

Total compensation costs

'

'

193,150

1,996,426

'

'

54,429

'

'

'

'

'

5,312

'

Deferred tax asset recorded, relating to recognized compensation cost

'

'

0

0

'

'

'

'

'

'

'

'

'

'

Unrecognized compensation expense

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Unrecognized compensation expense related to nonvested awards

'

'

1,120,222

'

'

'

'

'

'

'

'

'

'

'

Weighted average period to recognize unrecognized compensation expense related to nonvested awards

'

'

'1 year 10 months 6 days

'

'

'

'

'

'

'

'

'

'

'

Fair value of shares vested

'

'

$258,512

$1,873,609

'

'

'

'

'

'

'

'

'

'

SHAREBASED_COMPENSATION_Detail1

SHARE-BASED COMPENSATION (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2014
Options Outstanding	'
Number Outstanding	4,342,500
Weighted Average Remaining Contractual Life	'1 year 9 months
Weighted Average Exercise Price (in dollars per share)	$0.77
Options Exercisable	'
Number of Shares	1,927,708
Weighted Average Exercise Price (in dollars per share)	$0.77
$0.83 - $1.02	'
Share-based compensation	'
Range of Exercise Price, low end of range (in dollars per share)	$0.83
Range of Exercise Price, high end of range (in dollars per share)	$1.02
Options Outstanding	'
Number Outstanding	2,343,750
Weighted Average Remaining Contractual Life	'1 year 10 months 17 days
Weighted Average Exercise Price (in dollars per share)	$0.91
Options Exercisable	'
Number of Shares	885,333
Weighted Average Exercise Price (in dollars per share)	$0.92
$0.70 - $0.80	'
Share-based compensation	'
Range of Exercise Price, low end of range (in dollars per share)	$0.70
Range of Exercise Price, high end of range (in dollars per share)	$0.80
Options Outstanding	'
Number Outstanding	1,342,500
Weighted Average Remaining Contractual Life	'1 year 2 months 1 day
Weighted Average Exercise Price (in dollars per share)	$0.72
Options Exercisable	'
Number of Shares	818,500
Weighted Average Exercise Price (in dollars per share)	$0.71
$0.33 - $0.42	'
Share-based compensation	'
Range of Exercise Price, low end of range (in dollars per share)	$0.33
Range of Exercise Price, high end of range (in dollars per share)	$0.42
Options Outstanding	'
Number Outstanding	656,250
Weighted Average Remaining Contractual Life	'2 years 5 months 26 days
Weighted Average Exercise Price (in dollars per share)	$0.36
Options Exercisable	'
Number of Shares	223,875
Weighted Average Exercise Price (in dollars per share)	$0.41

OTHER_INCOME_AND_EXPENSE_Detai

OTHER INCOME AND EXPENSE (Details) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OTHER INCOME AND EXPENSE	'	'
Interest expense related to its outstanding note payable	$161,439	'
Forgiveness of interest expense recognized in other income	'	$12,522

OPERATING_LEASES_Details

OPERATING LEASES (Details) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
	item
OPERATING LEASES	'	'
Number of automobiles leased with lease expirations in fiscal 2015	2	'
Lease expense	$421,038	$426,023
Deferred rent payable	84,144	50,195
Minimum future rental payments	'	'
2015	383,134	'
2016	347,851	'
2017	361,660	'
2018	224,410	'
2019	224,410	'
2020 and thereafter	$224,411	'

RELATED_PARTIES_Details

RELATED PARTIES (Details) (USD $)

12 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 25, 2013

14-May-13

Mar. 31, 2014

Mar. 06, 2013

Mar. 31, 2014

Mar. 31, 2013

Jul. 02, 2013

21-May-13

Jan. 06, 2014

Mar. 31, 2014

Mar. 25, 2014

Mar. 25, 2013

Adams Monahan, LLP

Adams Monahan, LLP

Michael R. Monahan

Michael R. Monahan

Theodorus Strous

Theodorus Strous

Theo Strous and Michael R. Monahan

Theo Strous and Michael R. Monahan

Theo Strous and Michael R. Monahan

Messrs. Adams and Monahan

Messrs. Adams and Monahan

Mr. Theo Strous and Mr. Laurence Zipkin

Mr. Theo Strous and Mr. Laurence Zipkin

Mr. Laurence Zipkin

Edward S. Adams

Claims pertaining to Asset Purchase Agreement

item

Claims pertaining to Asset Purchase Agreement

Related parties

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Expenses for professional and consulting services provided by related party

'

'

$19,658

$106,229

$11,000

'

$25,000

$4,000

'

$45,000

$15,000

'

'

'

'

'

'

Number of board members retained for consulting services

'

'

'

'

'

'

'

'

2

'

'

'

'

'

'

'

'

Shares issued to the related party to indemnify for settlement of litigation

'

'

'

'

'

500,000

'

'

'

'

'

'

'

'

'

'

500,000

Payment to the related party to indemnify for settlement of litigation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

90,000

Expense related to indemnification

946,555

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-cash indemnification attributable to common stock to be issued

830,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares issued previously allocated for indemnification of directors

'

'

'

'

'

'

'

'

'

'

'

'

1,000,000

'

'

'

'

Remaining indemnification liability

'

'

'

'

'

'

'

'

'

'

'

117,306

'

'

'

'

'

Remaining indemnification liability per month

'

'

'

'

'

'

'

'

'

'

'

7,500

'

'

'

'

'

One-time payment to be received by the each member of the Special Litigation Committee upon completion of the investigation

'

'

'

'

'

'

'

'

'

'

'

'

'

50,000

'

50,000

'

Shares of common stock to be received by the each member of the Special Litigation Committee upon completion of the investigation

'

'

'

'

'

'

'

'

'

'

'

'

'

100,000

'

100,000

'

Shares of common stock to be received by the each member of the Special Litigation Committee upon completion of the investigation in lieu of cash and share amount

'

'

'

'

'

'

'

'

'

'

'

'

'

375,000

'

'

'

Consulting expenses

'

'

'

'

'

'

'

93,750

'

'

'

'

'

'

168,750

'

'

Due to related party

'

$215,306

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
INCOME TAXES	'	'
Current tax expense (benefit)	$0	$0
Deferred tax expense (benefit)	0	0
Deferred tax asset (liability)	'	'
Accrued expenses	235,998	187,640
Property and equipment	-150,810	-112,563
Impairment of fixed assets	142,767	'
Capitalized startup/acquisition costs	499,288	633,713
Federal and state net operating loss carry-forward	3,857,269	2,122,402
Trade name	'	92,572
Intangible assets	14,537	-55,685
Nonqualified options and warrants granted for services	'	59,029
Valuation allowance	-4,599,049	-2,927,108
Amount	'	'
Tax at statutory federal income tax rate	-1,683,324	-2,476,000
Increase (decrease) resulting from:	'	'
Change in valuation allowance	1,671,941	1,846,204
Incentive stock options	'	625,235
Other, Net	11,383	4,561
%	'	'
Tax at statutory federal income tax rate (as a percent)	-34.00%	-34.00%
Increase (decrease) resulting from:	'	'
State income tax expense (as a percent)	0.00%	0.00%
Change in valuation allowance (as a percent)	33.80%	25.30%
Incentive stock options (as a percent)	0.00%	8.60%
Other, Net (as a percent)	0.20%	0.10%
Total (as a percent)	0.00%	0.00%
Federal and state net operating loss carry-forwards	$10,266,576	$5,646,000

INVESTMENT_IN_JOINT_VENTURE_De

INVESTMENT IN JOINT VENTURE (Details) (USD $)	0 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 16, 2013	Mar. 31, 2014	Jun. 30, 2014	Mar. 31, 2014
	item
Investment in joint venture	'	'	'	'
Licensing fees	'	'	'	$625,000
Grace Rich Agreements	'	'	'	'
Investment in joint venture	'	'	'	'
Ownership percentage in joint venture	30.00%	'	'	'
Grace Rich Agreements | Minimum	'	'	'	'
Investment in joint venture	'	'	'	'
Ownership percentage in joint venture	30.00%	'	'	'
Grace Rich Limited	'	'	'	'
Investment in joint venture	'	'	'	'
Minimum number of Company designed diamond growing machines to be deployed in joint venture	100	'	'	'
Ownership percentage in joint venture	30.00%	'	'	'
Licensing fees	'	'	250,000	'
Development fees	'	'	750,000	'
Licensing fees per machine per month	'	'	'	250
Initial investment value	0	'	'	'
Rollforward of the Company's ownership interest in the joint venture	'	'	'	'
Aggregate 2014 equity loss - share of joint venture losses	'	'	'	-313,184
2014 equity loss - share of joint venture losses not recognized due to basis limitation	'	'	'	313,184
Balance of ownership interest in joint venture at March 31, 2014	0	'	'	'
Cumulative unrecognized loss on ownership interest in joint venture at March 31, 2014	'	-313,184	'	-313,184
Selected financial results	'	'	'	'
Revenues	'	'	'	625,000
Expenses	'	1,043,945	'	151,359
Net Income (Loss)	'	-1,043,945	'	'
Total Assets	'	68,297	'	68,297
Total Liabilities	'	1,112,242	'	1,112,242
Total Partners Capital	'	-1,043,945	'	-1,043,945
Total Liabilities and Partner Capital	'	68,297	'	68,297
Revenues from joint venture	'	'	'	625,000
Joint venture related expenses	'	1,043,945	'	151,359
Grace Rich Limited | Minimum	'	'	'	'
Investment in joint venture	'	'	'	'
Licensing fees per month	'	'	'	$25,000
Grace Rich Limited | SAAMABA, LLC	'	'	'	'
Investment in joint venture	'	'	'	'
Ownership percentage in joint venture	60.00%	'	'	'
Grace Rich Limited | S21 Holdings	'	'	'	'
Investment in joint venture	'	'	'	'
Ownership percentage in joint venture	10.00%	'	'	'

LITIGATION_Details

LITIGATION (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Jul. 26, 2013	Jul. 26, 2013	Jul. 26, 2013
In Millions, except Per Share data, unless otherwise specified			ADI	ADGC	ADI and ADGC
Litigation	'	'	'	'	'
Maximum number of shares that can be acquired	'	'	16	1	'
Common stock, par value (in dollars per share)	$0.00	$0.00	'	'	$0.01

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)

12 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Jun. 20, 2014

Aug. 08, 2014

Jul. 15, 2014

Aug. 08, 2014

Jun. 20, 2014

27-May-14

27-May-14

Jun. 16, 2014

Jun. 20, 2014

Jun. 23, 2014

Jun. 23, 2014

Jun. 23, 2014

Jun. 23, 2014

Jun. 23, 2014

Jun. 23, 2014

Apr. 15, 2014

Apr. 12, 2014

Jun. 30, 2014

Loan facilities with Platinum

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Subsequent events

Accredited investors

Accredited investors

Accredited investors

Loan facilities with Platinum

Messrs. Korn

McGuire

Mr. Likly

Mr. Michael Laub

Settlement agreement

Settlement agreement

Settlement agreement

Settlement agreement

Settlement agreement

Settlement agreement

Rights Agreement

Mr. Joseph Cunningham

Mr. Joseph Cunningham

Maximum

Adams Group and the Save Scio Group

The Save Scio Group

Messrs. Korn

McGuire

Mr. Likly

Messrs. Adams and Monahan

item

Subsequent events

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Consulting expenses

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$4,000

'

Common stock issued in exchange for consulting services (in shares)

527,500

46,250

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

60,000

Common stock issued in exchange for consulting services per month (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

20,000

'

Average value per share (in dollars per share)

'

$0.83

'

'

$0.30

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$0.44

Expenses for professional and consulting services provided by related party

319,200

37,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

26,200

Number of common stock purchase right declared as dividend for each share of common stock

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1

'

'

Par value of each share of common stock for which common stock purchase right declared as dividend (in dollars per share)

$0.00

$0.00

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$0.00

'

'

Shares of common stock that can be purchased from each right

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1

'

'

Purchase Price (in dollars per share)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$1.20

'

'

Minimum percentage of outstanding common stock to be acquired to be considered an "Acquiring Person" following issuance of rights agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

0.17

'

'

Minimum percentage of outstanding common stock to be acquired not to be considered an "Acquiring Person" before issuance of rights agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

0.17

'

'

Threshold percentage ownership of common stock required for rights to be exercisable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

17.00%

'

'

Shares of restricted stock issued upon appointment to the Board

'

'

'

'

'

'

'

250,000

250,000

4,000,000

50,000

'

'

'

'

'

'

'

'

'

Amount of loan facility into default status

'

'

'

'

'

'

1,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage increase in interest rate on the note in default status

'

'

3.00%

'

'

'

3.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

Notice period to increase the interest rate of loan in default status

'

'

'30 days

'

'

'

'30 days

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of directors in expanded size of board

'

'

'

'

'

'

'

'

'

'

'

7

'

'

'

'

'

'

'

'

Period for which counterparty to the agreement must vote their shares of Common Stock for the other's nominees

'

'

'

'

'

'

'

'

'

'

'

'3 years

'

'

'

'

'

'

'

'

Shares of common stock to be transferred to counterparty

'

'

'

'

'

'

'

'

'

'

'

'

1,000,000

'

'

'

'

'

'

'

Past accrued liabilities and expenses due to the settling parties reversed

573,126

730,698

'

'

'

'

'

'

'

'

'

-340,000

'

'

'

'

'

'

'

'

Shares forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

250,000

250,000

4,000,000

1,000,000

'

'

'

Number of shares of common stock issued

'

'

'

750,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares of common stock approved for issuance

'

'

'

'

'

2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stock issued

'

3,873,177

'

225,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Potential amount raised from offering

'

'

'

'

'

$600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'