Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
DocumentAndEntityInformationAbstract | ||
Entity Registrant Name | E DIGITAL CORP | |
Entity Central Index Key | 886,328 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 Common Stock, Shares Outstanding | 293,678,330 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Current | ||
Cash and cash equivalents | $ 1,737,414 | $ 1,952,981 |
Accounts receivable, net | 71,930 | 11,218 |
Inventory, net | 0 | 0 |
Deposits and prepaid expenses | 40,234 | 42,538 |
Total current assets | 1,849,578 | 2,006,737 |
Property, equipment and intangibles, net of accumulated depreciation and amortization of $160,749 and $166,529, respectively | 6,250 | 7,215 |
Total assets | 1,855,828 | 2,013,952 |
Current | ||
Accounts payable, trade | 128,471 | 140,293 |
Accrued and other liabilities | 98,623 | 156,759 |
Total current liabilities | $ 227,094 | $ 297,052 |
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, 293,428,330 and 293,378,330 issued and outstanding, respectively | 293,428 | 293,378 |
Additional paid-in capital | 82,963,107 | 82,931,048 |
Accumulated deficit | (81,627,801) | (81,507,526) |
Total stockholders' equity | 1,628,734 | 1,716,900 |
Total liabilities and stockholders' equity | $ 1,855,828 | $ 2,013,952 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
ASSETS | ||
Accumulated depreciation | $ 160,749 | $ 166,529 |
Stockholders' equity | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 293,428,330 | 298,378,330 |
Common stock, shares outstanding | 293,428,330 | 293,378,330 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||
Products and services | $ 5,126 | $ 50,248 |
Patent license | 540,000 | 632,500 |
Total Revenues | 545,126 | 682,748 |
Cost of revenues: | ||
Products and services | 3,948 | 53,791 |
Patent licensing and litigation costs | 112,500 | 112,500 |
Contingent legal fees and expenses | 230,322 | 206,664 |
Selling and administrative | 221,025 | 186,770 |
Research and related expenditures | 97,606 | 92,584 |
Total operating costs and expenses | 665,401 | 652,309 |
Operating income (loss) before provision for income taxes | (120,275) | 30,439 |
Income tax benefit (expense) | 0 | 0 |
Net Income (loss) for the period | $ (120,275) | $ 30,439 |
Income (loss) per common share - basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding | ||
Basic | 293,392,066 | 293,328,330 |
Diluted | 293,392,066 | 294,188,377 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income (loss) for period | $ (120,275) | $ 30,439 |
Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 965 | 1,292 |
Provision for doubtful accounts | 2,204 | 0 |
Stock-based compensation | 31,009 | 12,529 |
Changes in assets and liabilities: | ||
Accounts receivable | (62,916) | 1,468 |
Inventory | 0 | 1,212 |
Deposits and prepaid expenses | 2,304 | (4,723) |
Accounts payable, trade | (11,822) | 184,961 |
Accrued and other liabilities | (58,136) | (63,682) |
Cash provided by (used in) operating activities | (216,667) | 163,496 |
FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 1,100 | 0 |
Cash provided by financing activities | 1,100 | 0 |
Net increase (decrease) in cash and cash equivalents | (215,567) | 163,496 |
Cash and cash equivalents, beginning of period | 1,952,981 | 1,787,863 |
Cash and cash equivalents, end of period | $ 1,737,414 | $ 1,951,359 |
1. NATURE OF OPERATIONS AND BAS
1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 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 consisting of context and interpersonal awareness systems (Nunchi technology), advanced data security technologies (microSignet technology) and other technologies. 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 June 30, 2015, 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 months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016. For further information, refer to the Company's consolidated financial statements and footnotes thereto for the year ended March 31, 2015 filed on Form 10-K. Estimates The preparation of consolidated 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 | 3 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
2. RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU No. 2014-12, Compensation Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In January 2015, the FASB issued ASU 2015-01, Extraordinary and Unusual Items, In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Other Accounting Standards Updates not effective until after June 30, 2015 are not expected to have a material effect on the Companys financial position or results of operations. |
3. INCOME (LOSS) PER SHARE
3. INCOME (LOSS) PER SHARE | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
3. INCOME (LOSS) PER SHARE | 3. INCOME (LOSS) PER SHARE Basic income (loss) per common share is computed by dividing income (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 income (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. The dilutive effect of Under the treasury stock method, an increase in the fair market value of the Companys 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 income (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 material difference in basic and diluted income (loss) per share or basic and diluted weighted average shares outstanding for the periods presented. (Unaudited) Three Months Ended June 30, 2015 2014 Net income (loss) ($ 120,275 ) $ 30,439 Weighted average common shares - basic 293,392,066 293,328,330 Basic income (loss) per common share ($ 0.00 ) $ 0.00 Diluted Net income (loss) ($ 120,275 ) $ 30,439 Weighted average common shares - basic 293,392,066 293,328,330 Effect of dilutive common shares 860,047 Weighted average common shares - diluted 293,392,066 294,188,377 Net income (loss) per common share - basic ($ 0.00 ) $ 0.00 Net income (loss) per common share - diluted ($ 0.00 ) $ 0.00 Potentially dilutive securities outstanding at period end excluded from diluted computation as they were antidilutive 5,848,578 2,460,000 |
4. LIQUIDITY
4. LIQUIDITY | 3 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
4. LIQUIDITY | 4. LIQUIDITY The Company has not identified any trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in a material increase or decrease in liquidity. During the third quarter of fiscal 2015, the Company ceased marketing eVU products and accessories, but at June 30, 2015 continues to service one customer through the term of the existing contract ending in September 2015. The Company does not expect the termination of eVU operations and the loss of eVU revenues to have a material impact on liquidity, results of operations or financial condition. |
5. INVENTORIES
5. INVENTORIES | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
5. INVENTORIES | 5. INVENTORIES Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Companys inventory is determined by the weighted average cost method. The Company reserves for inventory that is obsolete or determined to be slow-moving and classifies the slow moving portion of inventory as a long-term asset. The Company has ceased offering new eVU systems and accordingly has fully reserved inventory at June 30, 2015. The Company is providing eVU content services to one customer through the term of existing contract ending in September 2015. Inventories consisted of the following: June 30, March 31, 2015 2015 $ $ Raw materials 50,401 37,559 Work in process 12,842 Finished goods 29,512 29,512 79,913 79,913 Reserve for obsolescence (79,913 ) (79,913 ) The foregoing is net of an aggregate lower-of-cost-or-market inventory adjustment of $70,858 at June 30, 2015 and March 31, 2015. The Company has ceased offering new eVU systems and accordingly has fully reserved inventory at June 30, 2015. |
6. STOCK-BASED COMPENSATION COS
6. STOCK-BASED COMPENSATION COSTS | 3 Months Ended |
Jun. 30, 2015 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
6. STOCK-BASED COMPENSATION COSTS | 6. STOCK-BASED COMPENSATION COSTS The Company accounts for stock-based compensation under the provisions of ASC 718, Share-Based Payment Equity-Based Payments to Non-Employees. The Company recorded stock-based compensation in its consolidated statements of operations for the relevant periods as follows: Three Months Ended June 30, 2015 2014 $ $ Research and development 5,329 2,547 Selling and administrative 25,680 9,982 Total stock-based compensation expense 31,009 12,529 No stock options were granted during the three-month periods ended June 30, 2015 and 2014. As o f June 30, 2015 total estimated compensation cost of stock options granted but not yet vested was $88,246 and is expected to be recognized over the weighted average period of 1.06 years. See Note 7 for further information on outstanding stock options. |
7. STOCKHOLDERS' EQUITY
7. STOCKHOLDERS' EQUITY - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Common Stock | ||
Beginning balance, shares | 293,378,330 | |
Beginning balance, value | $ 293,378 | |
Shares issued on exercise of stock options, shares | 50,000 | |
Shares issued on exercise of stock options, value | $ 50 | |
Ending balance, shares | 293,428,330 | |
Ending balance, value | $ 293,428 | |
Additional Paid-In Capital | ||
Beginning balance, value | 82,931,048 | |
Stock-based compensation | 31,009 | |
Shares issued on exercise of stock options, value | 1,050 | |
Ending balance, value | 82,963,107 | |
Accumulated Deficit | ||
Beginning balance, value | (81,507,526) | |
Loss for the period | (120,275) | |
Ending balance, value | $ (81,627,801) | |
7. STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS EQUITY The following table summarizes stockholders equity transactions during the three-month period ended June 30, 2015: Common stock Additional Accumulated Total stockholders' Shares Amount paid-in capital deficit equity $ $ $ $ Balance, April 1, 2015 293,378,330 293,378 82,931,048 (81,507,526 ) 1,716,900 Stock-based compensation 31,009 31,009 Shares issued on exercise of stock options 50,000 50 1,050 1,100 Loss for the period (120,275 ) (120,275 ) Balance, June 30, 2015 293,428,330 293,428 82,963,107 (81,627,801 ) 1,628,734 Options The following table summarizes stock option activity for the period: Weighted average Aggregate Shares exercise price intrinsic value # $ $ Outstanding April 1, 2015 5,948,578 0.067 Granted - Exercised (50,000 ) 0.022 Canceled/expired (50,000 ) 0.110 Outstanding June 30, 2015 5,848,578 0.0667 119,093 Exercisable at June 30, 2015 3,703,578 0.0508 106,916 (1) Options outstanding are exercisable at prices ranging from $0.022 to $0.11 and expire over the period from 2015 to 2019 with an average life of 2.6 years . (2) Aggregate intrinsic value is based on the closing price of our common stock on June 30, 2015 of $0.0748 and excludes the impact of options that were not in-the-money. Share warrants No warrants were outstanding at June 30, 2015 and June 30, 2014. Since the Company has a net operating loss carryforward as of June 30, 2015, no excess tax benefit for the tax deductions related to stock-based awards was recognized for the quarter ended June 30, 2015. Additionally, no incremental tax benefits were recognized from stock options exercised during the quarter ended June 30, 2015 that would have resulted in a reclassification to reduce net cash provided by operating activities with an offsetting increase in net cash provided by financing activities. | |
Beginning balance, value | $ 1,716,900 | |
Stock-based compensation | 31,009 | |
Shares issued on exercise of stock options, value | 1,100 | |
Loss for the period | (120,275) | $ 30,439 |
Ending balance, value | $ 1,628,734 |
8. FAIR VALUE MEASUREMENTS
8. FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
8. FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS Cash and cash equivalents are measured at fair value in the Companys 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 The Companys 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 | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
9. SEGMENT INFORMATION | 9. SEGMENT INFORMATION ASC 280 Segment Reporting Accounting policies for each of the operating segments are the same as on a consolidated basis. Reportable segment information for the three months ended June 30, 2015 and 2014 is as follows: For the three months ended June 30, (Unaudited) 2015 2014 $ $ SEGMENT REVENUES: Products and services 5,126 50,248 Patent licensing 540,000 632,500 Total revenue 545,126 682,748 SEGMENT COST OF REVENUES: Products and services 3,948 53,791 Patent licensing and litigation costs 112,500 112,500 Contingent legal fees and expenses 230,322 206,664 Total cost of revenues 346,770 372,955 RECONCILIATION: Segment income before corporate costs 198,356 309,793 Other corporate operating costs 318,631 279,354 Operating (loss) income before provision for income taxes (120,275 ) 30,439 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 there is no disclosure of this information. Revenue by geographic region is determined based on the location of the Companys 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 licensees home domicile. For the three months ended June 30, 2015 2014 $ $ United States 540,000 632,500 International 5,126 50,248 Total revenue 545,126 682,748 Revenues from three licensees comprised 32%, 28% and 18% of revenue for the three months ended June 30, 2015, with no other licensee or customer accounting for more than 10% of revenues. Accounts receivable from two licensees comprised 47% and 47% of net accounts receivable at June 30, 2015. Accounts receivable from two licensees comprised 53% and 32% of net accounts receivable at June 30, 2014. |
10. COMMITMENTS AND CONTINGENCI
10. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
10. COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Legal Matters Intellectual Property Litigation Beginning in fiscal year 2013 the Company commenced new rounds of enforcement action with respect to its patent portfolios, and as of June 30, 2015, had active a total of 11 complaints in the U.S. District Court for the Southern District of California, asserting that products made and sold by the defendant companies infringe the Companys U.S. patents covering the use of its Flash-R portfolio. Subsequently, three cases have settled and entered into license agreements, six cases have been dismissed and one default judgment has been entered. The Company commenced legal action with regards to its Nunchi portfolio of patents in July 2014 and currently has two active complaints in the U.S. District Court for the Northern District of California and one in the U.S. District Court for the Southern District of California. Commitment Related to Intellectual Property Legal Services In September 2012 the Company engaged Handal and Associates (Handal) to provide IP legal services in connection with licensing and prosecuting claims of infringement of the Companys flash memory patent portfolio. 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 ranging from 33-40% of any license fee or settlement related to patent enforcement matters, less prior retainers and expenses. The Company may terminate the representation at any time but would be obligated to pay fees and advances. The Company remains obligated to pay contingency fees on certain future Flash-R royalty payments from previous matters handled by Duane Morris LLP. 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 $6,831 excluding utilities and costs. The aggregate payments adjust annually with maximum payments totaling $7,157 in the forty-ninth through sixty-second months. Future lease commitments at June 30, 2015 total $168,505. The Company recognizes rent expense by the straight-line method over the lease term. As of June 30, 2015, deferred rent totaled $26,023. 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 Companys accounts are each insured up to $250,000 by the FDIC. The Companys exposure for amounts in excess of FDIC insured limits at June 30, 2015 was approximately $1.49 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 Companys customer base and their geographic dispersion. The Company has not incurred any significant credit related losses. Guarantees and Indemnifications The Company enters into standard indemnification agreements in the ordinary course of business. Some of the Companys product sales and services agreements include a limited indemnification provision for claims from third parties relating to the Companys intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450, Contingencies 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 applicable safe harbor provision. The Company matches 100% (dollar for dollar) on deferrals of up to 4% of employee compensation deferred. As of June 30, 2015, the Company made matching contributions totaling $2,577. |
11. INCOME TAXES
11. INCOME TAXES | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
11. INCOME TAXES | 11. INCOME TAXES There is no provision for income taxes for the three months ended June 30, 2015 and 2014 as the Company currently estimates its effective tax rate to be zero due to uncertainty of income in future interim quarters of the current year and due to net operating loss carryforwards. At June 30, 2015 and 2014, the Company had deferred tax assets associated with federal net operating losses (NOLs), related state NOLs, foreign tax credits and certain Federal and California research and development tax credits, but recorded a corresponding full valuation allowance as it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. At June 30, 2015, the Company has no liabilities for uncertain tax positions. |
3. INCOME (LOSS) PER SHARE (Tab
3. INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share table | (Unaudited) Three Months Ended June 30, 2015 2014 Net income (loss) ($ 120,275 ) $ 30,439 Weighted average common shares - basic 293,392,066 293,328,330 Basic income (loss) per common share ($ 0.00 ) $ 0.00 Diluted Net income (loss) ($ 120,275 ) $ 30,439 Weighted average common shares - basic 293,392,066 293,328,330 Effect of dilutive common shares 860,047 Weighted average common shares - diluted 293,392,066 294,188,377 Net income (loss) per common share - basic ($ 0.00 ) $ 0.00 Net income (loss) per common share - diluted ($ 0.00 ) $ 0.00 Potentially dilutive securities outstanding at period end excluded from diluted computation as they were antidilutive 5,848,578 2,460,000 |
5. INVENTORIES (Tables)
5. INVENTORIES (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | June 30, March 31, 2015 2015 $ $ Raw materials 50,401 37,559 Work in process 12,842 Finished goods 29,512 29,512 79,913 79,913 Reserve for obsolescence (79,913 ) (79,913 ) |
6. STOCK-BASED COMPENSATION C19
6. STOCK-BASED COMPENSATION COSTS (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |
Stock-based compensation expense | Three Months Ended June 30, 2015 2014 $ $ Research and development 5,329 2,547 Selling and administrative 25,680 9,982 Total stock-based compensation expense 31,009 12,529 |
7. STOCKHOLDERS' EQUITY (Tables
7. STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Stockholders' equity | |
Summarizes stockholders' equity transactions | Common stock Additional Accumulated Total stockholders' Shares Amount paid-in capital deficit equity $ $ $ $ Balance, April 1, 2015 293,378,330 293,378 82,931,048 (81,507,526 ) 1,716,900 Stock-based compensation 31,009 31,009 Shares issued on exercise of stock options 50,000 50 1,050 1,100 Loss for the period (120,275 ) (120,275 ) Balance, June 30, 2015 293,428,330 293,428 82,963,107 (81,627,801 ) 1,628,734 |
Summarizes stock option activity | Weighted average Aggregate Shares exercise price intrinsic value # $ $ Outstanding April 1, 2015 5,948,578 0.067 Granted - Exercised (50,000 ) 0.022 Canceled/expired (50,000 ) 0.110 Outstanding June 30, 2015 5,848,578 0.0667 119,093 Exercisable at June 30, 2015 3,703,578 0.0508 106,916 |
9. SEGMENT INFORMATION (Tables)
9. SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Reportable segment information | For the three months ended June 30, (Unaudited) 2015 2014 $ $ SEGMENT REVENUES: Products and services 5,126 50,248 Patent licensing 540,000 632,500 Total revenue 545,126 682,748 SEGMENT COST OF REVENUES: Products and services 3,948 53,791 Patent licensing and litigation costs 112,500 112,500 Contingent legal fees and expenses 230,322 206,664 Total cost of revenues 346,770 372,955 RECONCILIATION: Segment income before corporate costs 198,356 309,793 Other corporate operating costs 318,631 279,354 Operating (loss) income before provision for income taxes (120,275 ) 30,439 |
Revenue by geographic region | For the three months ended June 30, 2015 2014 $ $ United States 540,000 632,500 International 5,126 50,248 Total revenue 545,126 682,748 |
3. INCOME (LOSS) PER SHARE (Det
3. INCOME (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (120,275) | $ 30,439 |
Weighted average common shares - basic | 293,392,066 | 293,328,330 |
Basic income (loss) per common share | $ 0 | $ 0 |
Net income (loss) | $ (120,275) | $ 30,439 |
Weighted average common share - basic | 293,392,066 | 293,328,330 |
Effect of dilutive common shares | 0 | 860,047 |
Weighted average common shares - diluted | 293,392,066 | 294,188,377 |
Net income (loss) per common share - basic | $ 0 | $ 0 |
Net income (loss) per common share - diluted | $ 0 | $ 0 |
Potentially dilutive securities outstanding at period end excluded from diluted computation as they were antidilutive | 5,848,578 | 2,460,000 |
5. INVENTORIES (Details)
5. INVENTORIES (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 50,401 | $ 37,559 |
Work in process | 0 | 12,842 |
Finished goods | 29,512 | 29,512 |
Total Current Inventory | 79,913 | 79,913 |
Reserve for obsolescence | (79,913) | (79,913) |
Inventory, net | $ 0 | $ 0 |
5. INVENTORIES (Details Narrati
5. INVENTORIES (Details Narratives) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Aggregate lower of cost-or-market adjustment | $ 70,858 | $ 70,858 |
6. STOCK-BASED COMPENSATION C25
6. STOCK-BASED COMPENSATION COSTS (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Total stock-based compensation expense | $ 31,009 | $ 12,529 |
Research and Development Expense [Member] | ||
Total stock-based compensation expense | 5,329 | 2,547 |
Selling and Administrative Expenses [Member] | ||
Total stock-based compensation expense | $ 25,680 | $ 9,982 |
6. STOCK-BASED COMPENSATION C26
6. STOCK-BASED COMPENSATION COSTS (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Compensation cost of options granted but not yet vested | $ 88,246 | |
Nonvested weighted average period | 1 year 22 days | |
Stock options granted during period | 0 | 0 |
7. STOCKHOLDERS' EQUITY (Detail
7. STOCKHOLDERS' EQUITY (Details-Stock Option Activity) - 3 months ended Jun. 30, 2015 - $ / shares | Total |
Shares | |
Options Outstanding, beginning balance | 5,948,578 |
Granted | 0 |
Exercised | (50,000) |
Canceled/expired | (50,000) |
Outstanding, ending balance | 5,848,578 |
Weighted average exercise price | |
Options Outstanding, beginning balance | $ 0.067 |
Granted | |
Exercised | $ 0.022 |
Canceled/expired | .110 |
Outstanding, ending balance | $ .0667 |
7. STOCKHOLDERS' EQUITY (Deta28
7. STOCKHOLDERS' EQUITY (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
Stockholders' equity | |
Options outstanding exercisable at prices range Minimum | $ .022 |
Options outstanding exercisable at prices range Maximum | 0.11 |
Aggregate intrinsic value | $ .0748 |
Warrants outstanding | $ 0 |
9. SEGMENT INFORMATION (Details
9. SEGMENT INFORMATION (Details - Segment info) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Total revenue | $ 545,126 | $ 682,748 |
Total cost of revenues | 346,770 | 372,955 |
Segment income before corporate costs | 198,356 | 309,793 |
Other corporate operating costs | 318,631 | 279,354 |
Operating (loss) income before provision for income taxes | (120,275) | 30,439 |
Products And Services [Member] | ||
Total revenue | 5,126 | 50,248 |
Total cost of revenues | 3,948 | 53,791 |
Patent Licensing | ||
Total revenue | 540,000 | 632,500 |
Patent licensing and litigation costs | ||
Total cost of revenues | 112,500 | 112,500 |
Contingent Legal Fees [Member] | ||
Total cost of revenues | $ 230,322 | $ 206,664 |
9. SEGMENT INFORMATION (Detai30
9. SEGMENT INFORMATION (Details - Revenue by Geographic Region) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Total revenue | $ 545,126 | $ 682,748 |
UNITED STATES | ||
Total revenue | 540,000 | 632,500 |
International | ||
Total revenue | $ 5,126 | $ 50,248 |
9. SEGMENT INFORMATION (Detai31
9. SEGMENT INFORMATION (Details Narrative) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | Customer1 | ||
Concentration percentage | 32.00% | 20.00% |
Revenue | Customer2 | ||
Concentration percentage | 28.00% | 18.00% |
Revenue | Customer3 | ||
Concentration percentage | 18.00% | 15.00% |
Revenue | Customer4 | ||
Concentration percentage | 15.00% | |
Revenue | Customer5 | ||
Concentration percentage | 11.00% | |
Accounts Receivable | Customer1 | ||
Concentration percentage | 47.00% | 53.00% |
Accounts Receivable | Customer2 | ||
Concentration percentage | 47.00% | 32.00% |
10. COMMITMENTS AND CONTINGEN32
10. COMMITMENTS AND CONTINGENCIES (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
Commitments and Contingencies Disclosure [Abstract] | |
Future lease commitments | $ 168,505 |
Deferred rent | 26,023 |
Cash in excess of FDIC insured limits | 1,490,000 |
Company matching contributions to 401K Plan | $ 2,577 |
11. INCOME TAXES (Details Narra
11. INCOME TAXES (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | $ 0 |
Effective tax rate | 0.00% |
Liabilities for uncertain tax positions | $ 0 |