E Digital (EDIG) 10-Q 13 Nov 13 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
DocumentAndEntityInformationAbstract	'	'
Entity Registrant Name	'E DIGITAL CORP	'
Entity Central Index Key	'0000886328	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--03-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Public Float	'	$0
Entity Common Stock, Shares Outstanding	'	293,186,908
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Mar. 31, 2013
Current	'	'
Cash and cash equivalents	$1,355,698	$1,741,439
Accounts receivable	59,125	175,930
Inventory	13,044	21,199
Deposits and prepaid expenses	67,537	60,325
Total current assets	1,495,404	1,998,893
Inventory, long-term	63,319	104,031
Property, equipment and intangibles, net of accumulated depreciation and amortization of $170,957 and $168,768, respectively	10,740	12,929
Total assets	1,569,463	2,115,853
Current	'	'
Accounts payable, trade	78,596	67,297
Accrued and other liabilities	194,052	272,837
Total current liabilities	272,648	340,134
Commitments and Contingencies	'	'
Stockholders' equity	'	'
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.001 par value, authorized 350,000,000, 293,186,908 issued and outstanding each period	293,187	293,187
Additional paid-in capital	82,813,635	82,810,989
Accumulated deficit	-81,810,007	-81,328,457
Total stockholders' equity	1,296,815	1,775,719
Total liabilities and stockholders' equity	$1,569,463	$2,115,853

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Mar. 31, 2013
ASSETS	'	'
Accumulated depreciation	$170,957	$168,768
Stockholders' equity	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	350,000,000	350,000,000
Common stock, shares issued	293,186,908	293,186,908
Common stock, shares outstanding	293,186,908	293,186,908

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Products and services	$67,004	$122,949	$124,462	$255,495
Patent licensing	34,725	2,000	426,725	2,000
Total Revenues	101,729	124,949	551,187	257,495
Operating costs and expenses:	'	'	'	'
Products and services	62,587	99,348	170,597	193,125
Patent licensing and litigation costs	112,500	52,500	225,000	75,000
Contingent legal fees and expenses	14,765	800	29,893	3,490
Selling and administrative	243,840	179,442	446,227	379,901
Research and related expenditures	78,150	168,864	161,020	314,967
Total operating costs and expenses	511,842	500,954	1,032,737	966,483
Operating loss before provision for income taxes	-410,113	-376,005	-481,550	-708,988
Income tax benefit (expense)	0	0	0	0
Loss for the period	($410,113)	($376,005)	($481,550)	($708,988)
Loss per common share - basic and diluted	$0	$0	$0	$0
Weighted average common shares outstanding	'	'	'	'
Basic and diluted	293,186,908	293,003,158	293,186,908	293,003,158

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
OPERATING ACTIVITIES	'	'
Loss for period	($481,550)	($708,988)
Adjustments to reconcile loss to net cash used in operating activities:	'	'
Depreciation and amortization	2,189	2,741
Inventory market and reserve adjustment	48,552	22,731
Warranty provision	353	1,378
Stock-based compensation	2,646	10,546
Changes in assets and liabilities:	'	'
Accounts receivable	116,805	46,239
Inventory	315	16,140
Deposits and prepaid expenses	-7,212	21,674
Accounts payable, trade	11,300	31,690
Accrued and other liabilities	-79,139	-23,108
Cash used in operating activities	-385,741	-578,957
Net decrease in cash and cash equivalents	-385,741	-578,957
Cash and cash equivalents, beginning of period	1,741,439	3,125,349
Cash and cash equivalents, end of period	$1,355,698	$2,546,392

1_NATURE_OF_OPERATIONS_AND_BAS

1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION	'
	e.Digital Corporation is a holding company incorporated under the laws of Delaware that operates through a wholly-owned California subsidiary of the same name. The Company is developing and marketing an intellectual property portfolio including licensing and enforcing its Flash-R™ portfolio of patents related to the use of flash memory in portable devices. We are also developing new licenseable intellectual property related to context and interpersonal awareness systems (“Nunchi” technology), data distribution and other technologies. The Company also markets the eVU® mobile entertainment system for the travel industry.
	Unaudited Interim Financial Statements
	These unaudited condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X. These interim condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments considered necessary for a fair statement of the Company's financial position at September 30, 2013, and the results of its operations and cash flows for the periods presented, consisting only of normal and recurring adjustments. All significant intercompany transactions have been eliminated in consolidation. Operating results for the three and six months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2014. For further information, refer to the Company's consolidated financial statements and footnotes thereto for the year ended March 31, 2013 filed on Form 10-K.
	Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

2_RECENT_ACCOUNTING_PRONOUNCEM

2. RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
2. RECENT ACCOUNTING PRONOUNCEMENTS	'There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended September 30, 2013 that are of significance, or potential significance to the Company’s financial statements.

3_LOSS_PER_SHARE

3. LOSS PER SHARE	6 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic, Other Disclosures [Abstract]	'
3. LOSS PER SHARE	'Basic loss per common share is computed by dividing loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities included outstanding stock options and warrants. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. These securities were not included in the computation of diluted loss per share for the periods because they are antidilutive, but they could potentially dilute earnings per share in future periods. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. For the periods presented potential dilutive securities were not included in the computation of diluted loss per share because they had no effect or were antidilutive, but they could potentially dilute earnings per share in future periods. There was no difference in basic and diluted loss per share or basic and diluted weighted average shares outstanding for the periods presented.

4_INVENTORIES

4. INVENTORIES	6 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
4. INVENTORIES	'
	Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the weighted average cost method. We also have finished goods that we have determined to be slow-moving and have classified this portion of inventory as a long-term asset. Inventories consisted of the following:
		September 30,			March 31,
		2013			2013
		$			$
	Raw materials		35,890			39,249
	Work in process		13,669			13,669
	Finished goods		38,067			79,635
			87,626			132,553
	Reserve for obsolescence		(11,263	)		(7,323	)
			76,363			125,230
	Less current portion		13,044			21,199
	Inventory, long term		63,319			104,031
	The foregoing is net of an aggregate lower-of-cost-or-market inventory adjustment of $128,762 at September 30, 2013 and $84,150 at March 31, 2013, respectively. The Company made a lower of cost or market adjustment during the six months ended September 30, 2013 of $44,612 to reflect decreased product demand.

5_STOCKBASED_COMPENSATION_COST

5. STOCK-BASED COMPENSATION COSTS	6 Months Ended
	Sep. 30, 2013
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]	'
5. STOCK-BASED COMPENSATION COSTS	'
	The Company accounts for stock-based compensation under the provisions of ASC 718, Share-Based Payment and ASC 505-50, Equity-Based Payments to Non-Employees. ASC 718 requires measurement of all employee stock-based awards using a fair-value method and recording of related compensation expense in the consolidated financial statements over the requisite service period. Further, as required under ASC 718, the Company estimates forfeitures for stock-based awards that are not expected to vest. The Company recorded stock-based compensation in its consolidated statements of operations for the relevant periods as follows:
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
		$		$		$		$
	Research and development		–		1,196		849		2,392
	Selling and administrative		–		4,265		1,797		8,154
	Total stock-based compensation expense		–		5,461		2,646		10,546
	As of September 30, 2013 all stock options granted were fully vested.
	No stock options were granted during the three or six-month periods ended September 30, 2013 and 2012.
	See Note 7 for further information on outstanding stock options.

6_WARRANTY_RESERVE

6. WARRANTY RESERVE	6 Months Ended
	Sep. 30, 2013
Warranty Reserve	'
6. WARRANTY RESERVE	'
	Details of the estimated warranty liability included in accrued and other liabilities are as follows:
		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
		$			$			$			$
	Beginning balance		448			633			657			1,093
	Warranty provision		(30	)		1,064			353			1,378
	Warranty usage		(180	)		(1,329	)		(772	)		(2,103	)
	Ending balance		238			368			238			368

7_STOCKHOLDERS_EQUITY

7. STOCKHOLDERS' EQUITY	6 Months Ended
	Sep. 30, 2013
Stockholders' equity	'
7. STOCKHOLDERS' EQUITY	'
	The following table summarizes stockholders’ equity transactions during the six-month period ended September 30, 2013:
			Common stock					Additional		Accumulated			Total stockholders'
			Shares			Amount		paid-in capital		deficit			equity
						$		$		$			$
	Balance, April 1, 2013			293,186,908			293,187		82,810,989		(81,328,457	)		1,775,719
	Stock-based compensation			–			–		2,646					2,646
	Loss for the period			–			–		–		(481,550	)		(481,550	)
	Balance, September 30, 2013			293,186,908			293,187		82,813,635		(81,810,007	)		1,296,815
	Options
	The following table summarizes stock option activity for the period:
						Weighted average		Aggregate
			Shares			exercise price		Intrinsic Value
			#			$		$
	Outstanding April 1, 2013			7,145,000			0.09
	Granted			–
	Exercised			–
	Canceled/expired			(1,300,000	)		–
	Outstanding September 30, 2013			5,845,000			0.09	$	70,694
	Exercisable at September 30, 2013			5,845,000			0.09	$	70,694
		-1	Options outstanding are exercisable at prices ranging from $0.02 to $0.155 and expire over the period from 2013 to 2015.
		-2	Aggregate intrinsic value is based on the closing price of our common stock on September 30, 2013 of $0.0631 and excludes the impact of options that were not in-the-money.
	Share warrants
	No warrants were outstanding at September 30, 2013 and September 30, 2012.

8_FAIR_VALUE_MEASUREMENTS

8. FAIR VALUE MEASUREMENTS	6 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
8. FAIR VALUE MEASUREMENTS	'
	Cash and cash equivalents are measured at fair value in the Company’s consolidated financial statements. Accounts receivable are financial assets with carrying values that approximate fair value due to the short-term nature of these assets. Accounts payable and accrued and other liabilities are financial liabilities with carrying values that approximate fair value due to the short-term nature of these liabilities. Effective April 1, 2008 the Company adopted and follows ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) which established a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instruments categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement.
	The Company’s cash and cash equivalents are valued using unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs under ASC 820).

9_SEGMENT_INFORMATION

9. SEGMENT INFORMATION	6 Months Ended
	Sep. 30, 2013
Segment Reporting, Measurement Disclosures [Abstract]	'
9. SEGMENT INFORMATION	'
	ASC 280 Segment Reporting provides annual and interim reporting standards for an enterprise’s business segments and related disclosures about its products, services, geographical areas and major customers. The Company has two operating segments: (1) products and services and (2) patent licensing. Products and services consist of sales of the Company’s electronic eVU mobile entertainment device and related content and support services and patent licensing consists of intellectual property revenues from the Flash-R™ patent portfolio.
	Accounting policies for each of the operating segments are the same as on a consolidated basis.
	Reportable segment information for the three and six months ended September 30, 2013 and 2012 is as follows:
			For the three months ended						For the six months ended
			September 30,						September 30,
			2013			2012			2013			2012
			$			$			$			$
	SEGMENT REVENUES:
	Products and services		67,004			122,949			124,462			255,495
	Patent licensing		34,725			2,000			426,725			2,000
	Total revenue		101,729			124,949			551,187			257,495
	SEGMENT COST OF REVENUES:
	Products and services		62,587			99,348			170,597			193,125
	Patent licensing and litigation costs		112,500			52,500			225,000			75,000
	Contingent legal fees		14,765			800			29,893			3,490
	Total cost of revenues		189,852			152,648			425,490			271,615
	RECONCILIATION:
	Segment income (loss) before corporate costs		(88,123	)		(27,699	)		125,697			(14,120	)
	Other corporate operating costs		321,990			348,306			607,247			694,868
	Operating (loss) before provision for income taxes		(410,113	)		(376,005	)		(481,550	)		(708,988	)
	The Company does not have significant assets employed in the patent license segment and does not track capital expenditures or assets by reportable segment. Consequently it is not practicable to show this information.
	Revenue by geographic region is determined based on the location of the Company’s direct customers or distributors for product sales and services. Patent license revenue is considered United States revenue as payments are for licenses for United States operations irrespective of the location of the licensee’s home domicile.
		For the three months ended						For the six months ended
		September 30,						September 30,
		2013			2012			2013			2012
		$			$			$			$
	United States		34,725			2,000			426,725			2,000
	International		67,004			122,949			124,462			255,495
	Total revenue		101,729			124,949			551,187			257,495
	Revenues from five licensees comprised 18%, 15%, 15%, 10% and 10% of revenue for the six months ended September 30, 2013, with no other licensee or customer accounting for more than 10% of revenues. Revenues from five licensees comprised 33%, 22%, 12%, 10% and 10% of revenue for the six months ended September 30, 2012, with no other customer accounting for more than 10% of revenues. Accounts receivable from three customers comprised 44%, 40% and 12% of net accounts receivable at September 30, 2013. Accounts receivable from two customers comprised 48%, 22% of net accounts receivable at September 30, 2012.

10_COMMITMENTS_AND_CONTINGENCI

10. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
10. COMMITMENTS AND CONTINGENCIES	'
	Legal Matters
	The Company engages in litigation from time to time as part of its Flash-R™ portfolio licensing and enforcement activities.
	In September 2012 the Company terminated the legal representation of Duane Morris LLP related to Flash-R™ patent enforcement activities. The Company remains obligated to pay contingency fees up to 40% on certain future royalty payments from previous matters.
	In September 2012 the Company engaged Handal and Associates (“Handal”) to provide intellectual property (“IP”) legal services in connection with licensing and prosecuting claims of infringement of the Company’s flash memory patent portfolio (“Patent Enforcement Matters”). Pursuant to a partial contingent fee arrangement, the Company is paying a monthly retainer fee of $30,000 to Handal creditable against future contingency recoveries. Handal has agreed to advance related expenses excluding experts and prior art search firms. The Company has agreed to pay Handal a fee equal to 33% of any license fee or settlement related to Patent Enforcement Matters, less prior retainers and expenses, and 40% if litigation is required and successful. The Company may terminate the representation at any time but would be obligated to pay fees and advances.
	The Company is required in the normal course of business to engage in litigation to enforce its patents and patent rights. In October 2012 the Company commenced enforcement action with respect to its patent portfolio and currently has multiple complaints filed in the U.S. District Court for the Southern District of California, asserting that products made and sold by defendant companies infringe the Company’s U.S. patents covering the use of flash memory technologies. As a result of its enforcement actions, it is possible that the Company could become subject to claims, counterclaims, legal actions or court sanctions in the future. No material such actions or matters are currently pending against the Company.
	Facility Lease
	In January 2012, the Company entered into a sixty-two month facility lease for its corporate office location, commencing May 1, 2012, for approximately 3,253 square feet at 16870 West Bernardo Drive, Suite 120, San Diego, California. The aggregate monthly payment is $5,693 excluding utilities and costs. The aggregate payments adjust annually with maximum payments increasing to $7,157 in the forty-ninth through sixty-second months. Future lease commitments at September 30, 2013 total $298,137. The Company recognizes rent expense by the straight-line method over the lease term. As of September 30, 2013, deferred rent totaled $30,983.
	Concentration of Credit Risk and Sources of Supply
	Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalent accounts with Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Certain of the Company’s accounts are each insured up to $250,000 by the FDIC. The Company’s exposure for amounts in excess of FDIC insured limits at September 30, 2013 was approximately $1.1 million. The Company has not experienced any losses in such accounts. The Company does not believe that it is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not experienced any significant losses on its cash equivalents.
	Concentrations of credit risk with respect to trade accounts receivable are limited due to the number and nature of customers comprising the Company’s customer base and their geographic dispersion. The Company has not incurred any significant credit related losses.
	The Company relies on one third-party contract manufacturer to produce its eVU mobile entertainment product and generally relies on single suppliers for batteries, charging stations and other components. The Company also relies on one legal firm to represent it in patent licensing and enforcement matters.
	Guarantees and Indemnifications
	The Company enters into standard indemnification agreements in the ordinary course of business. Some of the Company’s product sales and services agreements include a limited indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450, Contingencies. The indemnification is generally limited to the amount paid by the customer. To date, there have been no claims under such indemnification provisions.
	The Company provides a one-year limited warranty for most of its products.
	Employee Benefit – 401K Plan
	In September 2012, the Company adopted a defined contribution plan (401(k)) covering its employees. Matching contributions are made on behalf of all participants, according to the Safe Harbor provision. The Company matches 100% (dollar for dollar) on deferrals of up to 4% of employee compensation deferred. As of September 30, 2013, the Company made matching contributions totaling $7,869.

11_INCOME_TAXES

11. INCOME TAXES	6 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
11. INCOME TAXES	'
	There is no provision for income taxes for the six months ended September 30, 2013 and 2012 as the Company currently estimates its effective tax rate to be zero due to uncertainty of income in future interim quarters of the current year and due to net operating loss carryforwards.
	At September 30, 2013, the Company had deferred tax assets associated with federal net operating losses (“NOLs”), related state NOLs, foreign tax credits and certain Federal and California research and development tax credits, but recorded a corresponding full valuation allowance as it is more likely than not that some portion or all of the deferred tax assets will not be realized.
	The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated.  At September 30, 2013, the Company has no liabilities for uncertain tax positions.

4_INVENTORIES_Tables

4. INVENTORIES (Tables)	6 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
		September 30,			March 31,
		2013			2013
		$			$
	Raw materials		35,890			39,249
	Work in process		13,669			13,669
	Finished goods		38,067			79,635
			87,626			132,553
	Reserve for obsolescence		(11,263	)		(7,323	)
			76,363			125,230
	Less current portion		13,044			21,199
	Inventory, long term		63,319			104,031

5_STOCKBASED_COMPENSATION_COST1

5. STOCK-BASED COMPENSATION COSTS (Tables)	6 Months Ended
	Sep. 30, 2013
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]	'
Stock-based compensation in its consolidated statements of operations for the relevant periods	'
		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
		$		$		$		$
	Research and development		–		1,196		849		2,392
	Selling and administrative		–		4,265		1,797		8,154
	Total stock-based compensation expense		–		5,461		2,646		10,546

6_WARRANTY_RESERVE_Tables

6. WARRANTY RESERVE (Tables)	6 Months Ended
	Sep. 30, 2013
Warranty Reserve	'
Estimated warranty liability included in accrued and other liabilities	'
		Three Months Ended						Six Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
		$			$			$			$
	Beginning balance		448			633			657			1,093
	Warranty provision		(30	)		1,064			353			1,378
	Warranty usage		(180	)		(1,329	)		(772	)		(2,103	)
	Ending balance		238			368			238			368

7_STOCKHOLDERS_EQUITY_Tables

7. STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Sep. 30, 2013
Stockholders' equity	'
Summarizes stockholders' equity transactions	'
		Common stock					Additional		Accumulated			Total stockholders'
		Shares			Amount		paid-in capital		deficit			equity
					$		$		$			$
	Balance, April 1, 2013		293,186,908			293,187		82,810,989		(81,328,457	)		1,775,719
	Stock-based compensation		–			–		2,646					2,646
	Loss for the period		–			–		–		(481,550	)		(481,550	)
	Balance, September 30, 2013		293,186,908			293,187		82,813,635		(81,810,007	)		1,296,815
Summarizes stock option activity	'
					Weighted average		Aggregate
		Shares			exercise price		Intrinsic Value
		#			$		$
	Outstanding April 1, 2013		7,145,000			0.09
	Granted		–
	Exercised		–
	Canceled/expired		(1,300,000	)		–
	Outstanding September 30, 2013		5,845,000			0.09	$	70,694
	Exercisable at September 30, 2013		5,845,000			0.09	$	70,694

9_SEGMENT_INFORMATION_Tables

9. SEGMENT INFORMATION (Tables)	6 Months Ended
	Sep. 30, 2013
Segment Reporting, Measurement Disclosures [Abstract]	'
Reportable segment information	'
			For the three months ended						For the six months ended
			September 30,						September 30,
			2013			2012			2013			2012
			$			$			$			$
	SEGMENT REVENUES:
	Products and services		67,004			122,949			124,462			255,495
	Patent licensing		34,725			2,000			426,725			2,000
	Total revenue		101,729			124,949			551,187			257,495
	SEGMENT COST OF REVENUES:
	Products and services		62,587			99,348			170,597			193,125
	Patent licensing and litigation costs		112,500			52,500			225,000			75,000
	Contingent legal fees		14,765			800			29,893			3,490
	Total cost of revenues		189,852			152,648			425,490			271,615
	RECONCILIATION:
	Segment income (loss) before corporate costs		(88,123	)		(27,699	)		125,697			(14,120	)
	Other corporate operating costs		321,990			348,306			607,247			694,868
	Operating (loss) before provision for income taxes		(410,113	)		(376,005	)		(481,550	)		(708,988	)
Patent License Revenue	'
		For the three months ended						For the six months ended
		September 30,						September 30,
		2013			2012			2013			2012
		$			$			$			$
	United States		34,725			2,000			426,725			2,000
	International		67,004			122,949			124,462			255,495
	Total revenue		101,729			124,949			551,187			257,495

4_INVENTORIES_Details

4. INVENTORIES (Details) (USD $)	Sep. 30, 2013	Mar. 31, 2013
Inventory Disclosure [Abstract]	'	'
Raw materials	$35,890	$39,249
Work in process	13,669	13,669
Finished goods	38,067	79,635
Total Current Inventory	87,626	132,553
Reserve for obsolescence	-11,263	-7,323
Inventory, Total	76,363	125,230
Less current portion	13,044	21,199
Inventory, long term	$63,319	$104,031

4_INVENTORIES_Details_Narrativ

4. INVENTORIES (Details Narratives) (USD $)	15 Months Ended
	Jun. 30, 2013	Sep. 30, 2013	Mar. 31, 2013
Inventory Disclosure [Abstract]	'	'	'
Aggregate lower of cost-or-market adjustment	'	$128,762	$84,150
Lower of cost or market adjustment	$44,612	'	'

5_STOCKBASED_COMPENSATION_COST2

5. STOCK-BASED COMPENSATION COSTS (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Total stock-based compensation expense	$0	$5,461	$2,646	$10,546
Research and Development Expense [Member]	'	'	'	'
Total stock-based compensation expense	0	1,196	849	2,392
Selling, General and Administrative Expenses [Member]	'	'	'	'
Total stock-based compensation expense	$0	$4,265	$1,797	$8,154

5_STOCKBASED_COMPENSATION_COST3

5. STOCK-BASED COMPENSATION COSTS (Details Narrative)	3 Months Ended	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]	'	'
Stock options granted during period	0	0

6_WARRANTY_RESERVE_Details

6. WARRANTY RESERVE (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Warranty Reserve	'	'	'	'
Beginning balance	$448	$633	$657	$1,093
Warranty provision	-30	1,064	353	1,378
Warranty deductions	-180	-1,329	-772	-2,103
Ending balance	$238	$368	$238	$368

7_STOCKHOLDERS_EQUITY_Details

7. STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended		6 Months Ended				6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2013	Sep. 30, 2013
					Common Stock	Common Stock	Additional paid-in capital [Member]	Accumulated Deficit
Balance, April 1, 2013	'	'	$1,775,719	'	$293,187	$293,187	$82,810,989	($81,328,457)
Balance, April 1, 2013, shares	'	'	'	'	293,186,908	293,186,908	'	'
Stock-based compensation	'	'	2,646	'	'	'	2,646	'
Loss for the period	-410,113	-376,005	-481,550	-708,988	'	'	'	-481,550
Balance, September 30, 2013	$1,296,815	'	$1,296,815	'	$293,187	$293,187	$82,813,635	($81,810,007)
Balance, September 30, 2013, shares	'	'	'	'	293,186,908	293,186,908	'	'

7_STOCKHOLDERS_EQUITY_Details1

7. STOCKHOLDERS' EQUITY (Details1) (USD $)	6 Months Ended
	Sep. 30, 2013
Shares	'
Options Outstanding, beginning balance	7,145,000
Granted	0
Exercised	0
Canceled/expired	-1,300,000
Outstanding, ending balance	5,845,000
Exercisable	5,845,000
Weighted average exercise price	'
Options Outstanding, beginning balance	$0.09
Granted	'
Exercised	'
Canceled/expired	'
Outstanding, ending balance	$0.09
Exercisable	$0.09
Aggregate Intrinsic Value	'
Outstanding, ending balance	$70,694
Exercisable	$70,694

7_STOCKHOLDERS_EQUITY_Details_

7. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	6 Months Ended
	Sep. 30, 2013
Stockholders' equity	'
Options outstanding exercisable at prices range Minimum	$0.02
Options outstanding exercisable at prices range Maximum	$0.16
Aggregate intrinsic value	$0.06

9_SEGMENT_INFORMATION_Details

9. SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Total revenue	$101,729	$124,949	$551,187	$257,495
Cost of revenue	189,852	152,648	425,490	271,615
Segment income (loss) before corporate costs	-88,123	-27,699	125,697	-14,120
Other corporate operating costs	321,990	348,306	607,247	694,868
Other (loss) before provision for income taxes	-410,113	-376,005	-481,550	-708,988
Products And Services [Member]	'	'	'	'
Total revenue	67,004	122,949	124,462	255,495
Cost of revenue	62,587	99,348	170,597	193,125
Patent Licensing	'	'	'	'
Total revenue	34,725	2,000	426,725	2,000
Patent licensing and litigation costs	'	'	'	'
Cost of revenue	112,500	52,500	225,000	75,000
Contingent Legal Fees [Member]	'	'	'	'
Cost of revenue	$14,765	$800	$29,893	$3,490

9_SEGMENT_INFORMATION_Details_

9. SEGMENT INFORMATION (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Total revenue	$101,729	$124,949	$551,187	$257,495
United States	'	'	'	'
Total revenue	'	'	426,725	2,000
International	'	'	'	'
Total revenue	67,004	122,949	124,462	255,495
US [Member]	'	'	'	'
Total revenue	$34,725	$2,000	'	'

9_SEGMENT_INFORMATION_Details_1

9. SEGMENT INFORMATION (Details Narrative)	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Customer1 | Revenue	'	'
Concentration percentage	18.00%	33.00%
Customer1 | Accounts Receivable	'	'
Concentration percentage	44.00%	48.00%
Customer2 | Revenue	'	'
Concentration percentage	15.00%	22.00%
Customer2 | Accounts Receivable	'	'
Concentration percentage	40.00%	22.00%
Customer3 | Revenue	'	'
Concentration percentage	15.00%	12.00%
Customer3 | Accounts Receivable	'	'
Concentration percentage	12.00%	'
Customer4 | Revenue	'	'
Concentration percentage	10.00%	10.00%
Customer5 | Revenue	'	'
Concentration percentage	10.00%	10.00%

10_COMMITMENTS_AND_CONTINGENCI1

10. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	6 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Future lease commitments	$298,137
Deferred rent	30,983
Company matching contributions to 401K Plan	7,869
Cash in excess of FDIC insured limits	$1,100,000

11_INCOME_TAXES_Details_Narrat

11. INCOME TAXES (Details Narrative) (USD $)	6 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Provision for income taxes	$0
Effective tax rate	0.00%
Liabilities for uncertain tax positions	$0