Cogentix Medical 10-Q 14 Aug 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	COGENTIX MEDICAL INC /DE/
Entity Central Index Key	894,237
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 Common Stock, Shares Outstanding		26,186,881
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 5,996,245	$ 9,261,903
Accounts receivable, net	6,450,016	7,306,653
Inventories	4,868,685	4,825,984
Other	902,323	749,466
Total current assets	18,217,269	22,144,006
Property, plant, and equipment, net	1,969,809	1,813,343
Goodwill	18,749,888	18,749,888
Other intangible assets, net	13,114,391	13,748,582
Deferred tax assets and other	303,315	296,860
Total assets	52,354,672	56,752,679
Current liabilities:
Accounts payable	3,875,197	3,967,975
Interest payable	599,954	523,743
Income taxes payable	25,602	25,998
Accrued liabilities:
Compensation	2,868,815	3,285,952
Other	1,505,110	2,450,058
Total current liabilities	8,874,678	10,253,726
Convertible debt - related party, net	22,795,464	22,529,497
Accrued pension liability	1,020,389	955,780
Other	228,468	265,766
Total liabilities	$ 32,918,999	$ 34,004,769
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 par value 5,000,000 Shares authorized; none issued or outstanding	$ 0	$ 0
Common stock $.01 par value; 100,000,000 shares authorized, 26,053,081 and 25,676,212 shares issued and outstanding at June 30, 2015 and March 31, 2015, respectively	260,532	256,763
Additional paid-in capital	75,747,690	75,530,641
Accumulated deficit	(55,451,989)	(51,883,229)
Accumulated other comprehensive loss	(1,120,560)	(1,156,265)
Total shareholders' equity	19,435,673	22,747,910
Total liabilities and shareholders' equity	$ 52,354,672	$ 56,752,679

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Mar. 31, 2015
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	26,053,081	25,676,212
Common stock, shares outstanding (in shares)	26,053,081	25,676,212

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net sales	$ 11,150,212	$ 6,384,629
Cost of goods sold	3,652,510	791,311
Gross profit	7,497,702	5,593,318
Operating expenses
General and administrative	1,893,272	1,577,368
Research and development	1,062,460	909,444
Selling and marketing	6,651,379	5,272,621
Amortization	634,191	8,326
Transaction costs	468,607	0
Total operating expenses	10,709,909	7,767,759
Operating loss	(3,212,207)	(2,174,441)
Other income (expense)
Interest income	1,582	3,012
Interest expense	(343,555)	0
Foreign currency exchange gain	2,998	911
Total other income (expense)	(338,975)	3,923
Loss before income taxes	(3,551,182)	(2,170,518)
Income tax expense	17,578	19,814
Net loss	$ (3,568,760)	$ (2,190,332)
Basic and diluted net loss per common share (in dollars per share)	$ (0.14)	$ (0.14)
Weighted average common shares outstanding:
Basic and diluted (in shares)	26,053,081	15,749,869

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract]
Net loss	$ (3,568,760)	$ (2,190,332)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	57,458	(789)
Unrealized gain (loss) on available-for-sale investments	0	(743)
Pension adjustments	(21,753)	(396)
Total other comprehensive income (loss), net of tax	35,705	(1,928)
Comprehensive loss	$ (3,533,055)	$ (2,192,260)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 3 months ended Jun. 30, 2015 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Mar. 31, 2015	$ 256,763	$ 75,530,641	$ (51,883,229)	$ (1,156,265)	$ 22,747,910
Balance (in shares) at Mar. 31, 2015	25,676,212
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	$ 3,795	221,403	0	0	225,198
Share-based compensation (in shares)	379,499
Exercise of stock options, net of shares exchanged	$ (26)	(4,354)	0	0	(4,380)
Exercise of stock options, net of shares exchanged (in shares)	(2,630)
Comprehensive loss	$ 0	0	(3,568,760)	35,705	(3,533,055)
Balance at Jun. 30, 2015	$ 260,532	$ 75,747,690	$ (55,451,989)	$ (1,120,560)	$ 19,435,673
Balance (in shares) at Jun. 30, 2015	26,053,081

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (3,568,760)	$ (2,190,332)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	853,165	72,584
Loss on disposal of equipment	216	1,249
Amortization of premium on marketable securities	0	343
Share-based compensation expense	225,198	323,304
Amortization of discount on related party debt	265,967	0
Long term incentive plan	(29,176)	0
Tax expense (benefit)	(1,414)	2,205
Deferred rent	(2,669)	22,744
Changes in operating assets and liabilities:
Accounts receivable, net	816,135	263,078
Inventories	(43,959)	(92,649)
Other current assets	(50,717)	(30,323)
Interest payable	76,211	0
Accounts payable	(90,040)	49,797
Accrued compensation	(421,327)	94,249
Accrued liabilities, other	(1,035,323)	(65,795)
Accrued pension liability, net	39,745	44,081
Deferred revenue	72,080	0
Net cash used in operating activities	(2,894,668)	(1,505,465)
Cash flows from investing activities:
Proceeds from maturity of available-for-sale investments	0	3,050,000
Purchases of property, plant and equipment	(395,387)	(52,739)
Net cash provided by investing activities	(395,387)	2,997,261
Cash flows from financing activities:
Proceeds from exercise of stock options	0	48,600
Net cash provided by financing activities	0	48,600
Effect of exchange rate changes on cash and cash equivalents	24,397	(315)
Net increase (decrease) in cash and cash equivalents	(3,265,658)	1,540,081
Cash and cash equivalents at beginning of period	9,261,903	8,681,609
Cash and cash equivalents at end of period	5,996,245	10,221,690
Cash paid during the period for income taxes	17,578	38,700
Cash paid during the period for interest	$ 1,400	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation Cogentix Medical, Inc., headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom, is a global medical device company. We design, develop, manufacture and market innovative proprietary technologies serving the urology, urogynecology/gyn, ENT (ear, nose and throat) and gastrointestinal markets. The Urgent® PC Neuromodulation System is an FDA-cleared device that delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder (OAB). The FDA-cleared EndoSheath® Systems combine state-of-the-art endoscopic technology with a sterile, disposable microbial barrier, providing practitioners and healthcare facilities with a solution to meet the growing need for safe, efficient and cost-effective flexible endoscopy. In the U.S. and worldwide, the Company also offers Macroplastique®, a urethral bulking agent for the treatment of stress urinary incontinence. Outside the U.S., the Company markets additional bulking agents: PTQ® for the treatment of fecal incontinence and VOX® for vocal cord augmentation. The Company is the result of the Merger effective as of March 31, 2015 (the “effective date”) of two medical device companies, Uroplasty, Inc. and Vision-Sciences, Inc. On the effective date of the Merger, the two companies completed an all-stock merger, pursuant to which UPI merged with and into Merger Sub. Merger Sub was the surviving company from the Merger, and changed its name to Uroplasty, LLC. After the merger, VSCI and its consolidated subsidiaries, including Uroplasty LLC, and its subsidiaries, operate under the name Cogentix Medical, Inc. Upon closing of the Merger, the former UPI stockholders owned approximately 62.5% and the VSCI shareholders retained approximately 37.5% of the company. Accordingly, while VSCI was the legal acquirer and issued its shares in the Merger, UPI is the acquiring company in the Merger for accounting purposes and the Merger has been accounted for as a reverse acquisition under the acquisition method of accounting for business combinations. As a result, the financial statements of the Company prior to the effective date of the Merger are the historical financial statements of UPI, whereas the financial statements of the Company after the effective date of the Merger reflect the results of the operations of UPI and VSCI on a combined basis. See additional disclosure provided in note 2. We have prepared our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted, pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information not misleading. The consolidated results of operations for any interim period are not necessarily indicative of results for a full fiscal year. These Condensed Consolidated Financial Statements, presented herein, should be read in conjunction with the audited consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended March 31, 2015. The Condensed Consolidated Financial Statements presented herein as of June 30, 2015 and for the three month periods ended June 30, 2015 and 2014, reflect, in the opinion of management, all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the consolidated financial condition, results of operations and cash flows for the interim periods. We have identified certain accounting policies that we consider particularly important for the portrayal of our results of operations and financial condition and which may require the application of a higher level of judgment by our management, and as a result are subject to an inherent level of uncertainty. These are characterized as “critical accounting policies” and address revenue recognition, accounts receivable, valuation of inventory, foreign currency translation/transactions, purchase price allocation on acquisition, the determination of recoverability of long-lived and intangible assets, long-term incentive plans, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-K for the fiscal year ended March 31, 2015. Based upon our review, we have determined that these policies remain our most critical accounting policies for the three months ended June 30, 2015 and we have made no changes to these policies during fiscal 2016. Liquidity and Capital Resources We have incurred substantial operating losses since our inception. We anticipate that we will continue to incur negative cash flows from operations during fiscal 2016, driven by continued investment in a direct sales force for the U.S. market, spending for marketing and for research and development, integration of UPI and VSCI, and general business operations. As of June 30, 2015, we had cash and cash equivalents totaling approximately $6.0 million. We plan to obtain additional debt and/or equity financing during fiscal 2016. There can be no assurance that any contemplated additional financing will be available on terms acceptable to us, if at all. If required, we believe we would be able to reduce our expenses to a sufficient level to continue to operate as a going concern.

Business Combination - Merger B

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc	3 Months Ended
	Jun. 30, 2015
Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc [Abstract]
Business Combinations-Merger Between Uroplasty, Inc and Vision-Sciences, Inc	Note 2. Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. The Merger has been accounted for as an acquisition of VSCI by UPI, in accordance with Accounting Standards Codification (ASC) Topic 805, "Business Combinations," using the acquisition method of accounting with UPI as the accounting acquirer. Since the Company (formerly known as Vision-Sciences), as the parent company of UPI after the Merger, is the legal acquirer, the Merger has been accounted for as a reverse acquisition. Under these accounting standards, UPI’s total purchase price of $16.5 million is calculated as if UPI had issued its shares to VSCI stockholders and converted options and warrants to purchase VSCI shares to options and warrants to purchase UPI’s common stock. Under the acquisition method of accounting, the total purchase price was allocated to the net tangible and intangible assets of VSCI acquired in the merger, based on their fair values at the effective date of the Merger. The estimated fair values are preliminary and based on the information that was available as of the effective date of the Merger. The Company believes that the information provides a reasonable basis for estimating the fair values, but the Company is waiting for additional information necessary to finalize these amounts, particularly with respect to the estimated fair value of intangible assets and property, plant and equipment and deferred taxes related thereto. Thus the preliminary measurements of fair value reflected are subject to changes and such changes could be significant. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable, but no later than one year from the merger date. There were no changes during the three months ended June 30, 2015 to the preliminary measurements of fair value. The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows: Cash and cash equivalents $ 2,020,000 Accounts receivable 4,249,000 Inventories 4,462,000 Other current assets 369,000 Property, plant and equipment 817,000 Goodwill 18,750,000 Other intangibles 13,660,000 Other non-current assets 97,000 Total assets acquired 44,424,000 Accounts payable and other liabilities 5,209,000 Deferred revenue 176,000 Convertible debt – related party 22,530,000 Other non-current liabilities 40,000 Total liabilities assumed 27,955,000 Total purchase price $ 16,469,000 The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: Amount Weighted Average Life-Years Developed technology $ 6,200,000 7 Customer relationships 7,270,000 5 Trade names 190,000 10 $ 13,660,000 The supplemental unaudited pro forma net sales and net loss of the combined entity had the acquisition been completed on April 1, 2013: Three months ended June 30, 2014 Supplemental pro forma combined results of operations: Net sales $ 10,137,000 Net loss $ (5,040,439 ) Loss per share – basic and diluted $ (0.20 ) Adjustments to the supplemental pro forma combined results of operations are as follows: Three months ended June 30, 2014 Increase in amortization of intangibles $ 594,000 Interest amortization on related party debt 279,000 Increase in net loss $ 873,000 These unaudited pro forma condensed consolidated financial results have been prepared for illustrative purposes only and do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the April 1, 2013, or of future results of the consolidated entities. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	Note 3. Goodwill and Other Intangible Assets Goodwill As described in note 2, on March 31, 2015, for accounting purposes, UPI was deemed to have acquired VSCI for a purchase price of $16.5 million, and as a result, the Company recognized $18.7 million in goodwill. There was no change in the goodwill balance as of June 30, 2015. Other Intangible Assets Other intangible assets consisted of the following at June 30, 2015 and March 31 2015: June 30, 2015 March 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technology $ 6,200,000 $ 222,000 $ 6,200,000 $ - Patents 5,653,000 5,572,000 5,653,000 5,564,000 Trademarks and trade names 190,000 22,000 190,000 - Customer relationships 7,270,000 383,000 7,270,000 - $ 19,313,000 $ 6,199,000 $ 19,313,000 $ 5,564,000 Accumulated amortization 6,199,000 5,564,000 Net book value of amortizable intangible assets $ 13,114,000 $ 13,749,000 For the three months ended June 30, 2015 and 2014, amortization of intangible assets charged to operations was approximately $634,000 and $8,000, respectively. The weighted average remaining amortization period for intangible assets as of June 30, 2015 was approximately 5.75 years.

Newly Adopted Accounting Pronou

Newly Adopted Accounting Pronouncements	3 Months Ended
	Jun. 30, 2015
Newly Adopted Accounting Pronouncements [Abstract]
Newly Adopted Accounting Pronouncements	Note 4 . Newly Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) No. 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” Under the current guidance (i.e., ASC 330-10-352 before the ASU), an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost, net realizable value (NRV), or NRV less a normal profit margin. An entity uses current replacement cost provided that it is not above NRV (i.e., the ceiling) or below NRV less an “approximately normal profit margin” (i.e., the floor). The new guidance requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures). The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method (RIM). We do not believe the adoption of this update will have a material impact on our financial statements. In May 2014, the FASB has issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.” We do not believe the adoption of this update will have a material impact on our financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework prioritizes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three broad levels of inputs may be used to measure fair value under the fair value hierarchy: · Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. · Level 3: Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. If the inputs used to measure the financial assets and liabilities fall within more than one of the different levels described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. On June 30, 2015 and March 31, 2015, the only asset or liability measured at fair value on a recurring basis was the long-term incentive plan accrual with a fair value of $398,000 and $730,000, respectively, considered a level 3 measurement. The long-term incentive plan began on October 2, 2014 and is described in note 9. The estimated fair value of the accrual is calculated on a quarterly basis using a Monte Carlo valuation model. Vesting is based on the probability of meeting the stock price criteria, the probability of which is considered in determining the estimated fair value. Remeasurements to fair value on a nonrecurring basis relate primarily to our property, plant and equipment and intangible assets and occur when the derived fair value is below their carrying value on our Consolidated Balance Sheet. As of June 30, 2015 and March 31, 2015 we had no remeasurements of such assets to fair value. The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, inventories, other current assets, accounts payable, accrued liabilities and convertible debt-related party approximate fair market value.

Inventories

Inventories	3 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Inventories	Note 6. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value). We value at lower of cost or market the slow moving and obsolete inventories based upon current and expected future product sales and the expected impact of product transitions or modifications. Historically, the inventory write-offs have generally been within our expectations. Inventories consist of the following: June 30, 2015 March 31, 2015 Raw materials $ 3,377,000 $ 3,156,000 Work-in-process 658,000 527,000 Finished goods 834,000 1,143,000 $ 4,869,000 $ 4,826,000 Inventories acquired in a business combination are recorded at their estimated fair value less profit for sales efforts and expensed in cost of sales as that inventory is sold. On March 31, 2015, inventories included an adjustment amount of $240,000 related to VSCI inventory recorded at estimated fair value. During the three months ended June 30, 2015, $180,000 was recorded as an addition to cost of goods sold and on June 30, 2015, $60,000 of the adjustment amount remained, which will be recorded during the second fiscal quarter ending September 30, 2015.

Net Loss per Common Share

Net Loss per Common Share	3 Months Ended
	Jun. 30, 2015
Net Loss per Common Share [Abstract]
Net Loss per Common Share	Note 7. Net Loss per Common Share We calculate basic net loss per common share amounts by dividing net loss by the weighted-average common shares outstanding, excluding outstanding shares contingently subject to forfeiture. For calculating diluted net loss per common share amounts, we add additional shares to the weighted-average common shares outstanding for the assumed exercise of stock options and vesting of restricted shares, if dilutive. Because we had a net loss during the three months ended June 30, 2015 and 2014 the following options and warrants and outstanding and unvested restricted stock to purchase shares of our common stock were excluded from diluted net loss per common share because of their anti-dilutive effect, and therefore, basic net loss per common share equals dilutive net loss per common share: Number of options, warrants and unvested restricted stock Range of stock option and warrant exercise prices June 30, 2015 2,638,000 $ 1.64 to $24.40 June 30, 2014 1,604,000 $ 0.77 to $2.63

Shareholder's Equity

Shareholder's Equity	3 Months Ended
	Jun. 30, 2015
Shareholder's Equity [Abstract]
Shareholder's Equity	Note 8. Shareholder’s Equity Share-based compensation. We recognize share-based compensation expense in our Condensed Consolidated Statement of Operations based on the fair value at the time of grant of the share-based payment over the requisite service period. We incurred approximatel y $225,000 and in share On June 30, 2015, we had approximately $1,103,000 We grant option awards with an exercise price equal to the closing market price of our stock at the date of the grant. Options granted under this plan generally expire over a period ranging from five to seven years from date of grant and vest at varying rates ranging up to three years. We determined the fair value of our option awards using the Black-Scholes option pricing model. We used the following weighted-average assumptions to value the options granted during the three months ended June 30: 2015 2014 Expected life in years 3.84 3.47 Risk-free interest rate 1.11% 1.0% Expected volatility 63.94% 68.43% Expected dividend yield 0% 0% Weighted-average grant date fair value $0.79 $1.59 The expected life for options granted represents the period of time we expect options to be outstanding based on historical data of option holder exercise and termination behavior for similar grants. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. Expected volatility is based upon historical volatility of our stock. We estimate the forfeiture rate for stock awards to be approximately 10% for executive employees and directors and approximately 15% for non-executive employees for fiscal 2016 awards based on our historical experience. The following table summarizes the activity related to our stock options during the three months ended June 30, 2015: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at March 31, 2015 2,251,085 $ 5.32 5.06 $ - Options granted 617,914 1.64 Options exercised - - Options surrendered (77,325 ) 6.16 Outstanding at June 30, 2015 2,791,674 $ 4.48 5.48 $ - Exercisable at June 30, 2015 1,661,379 $ 5.83 3.96 $ - The total fair value of stock options that vested during the three months ended June 30, 2015 and 2014 was $55,000 and $95,000, r Our 2015 Plan also permits the compensation committee of our board of directors to grant other stock-based benefits, including restricted shares. Number of Shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at March 31, 2015 317,741 $ 4.47 1.93 $ 387,644 Shares granted 379,499 1.64 Shares vested (97,223 ) 4.50 Shares forfeited - - Balance at June 30, 2015 600,017 $ 2.68 2.16 $ 972,027 The aggregate intrinsic value shown above for the restricted shares represents the total pre-tax value based on the closing price of our common stock at the end of each period. Stock Warrants-Related Party. Long-Term Incentive Plan and Awards. On October 1, 2014, the compensation committee of our board of directors and our board of directors approved and adopted a Performance Award Agreement under the Uroplasty, Inc. 2006 Amended Stock and Incentive Plan, as amended, and on October 2, 2014, grants of Performance Awards (the “Awards”) were made to members of our senior management team. Performance goals for the Awards are based on the achievement of specified stock price targets during the period beginning on the date of grant and ending on the fourth anniversary of the date of grant or, if earlier, the closing date of a change of control (as defined in the Plan) of the Company (the “Performance Period”). The stock price targets under the Awards are: $7.57 price per share of common stock, $10.32 price per share of common stock and $13.76 price per share of common stock. A stock price target is considered achieved on the date (a) the average closing price of a share of our common stock equals or exceeds a stock price target for at least 45 consecutive trading days or (b) of the consummation of a change of control of the Company, provided the closing price of a share of our common stock on the last trading day immediately preceding the closing date of the change of control equals or exceeds a stock price target not previously achieved during the Performance Period. The Awards are accounted for as liability awards under the share-based compensation accounting guidance, as the awards are based on the performance of our common stock and are expected to be settled in cash. Expense for the awards is recognized over the derived service period of approximately 2.4 years. We recorded a liability of $123,000 at June 30, 2015 and related expense was $(29,000) for the three months ended ending June 30, 2015 for the Awards.

Convertible Debt - Related Part

Convertible Debt - Related Party	3 Months Ended
	Jun. 30, 2015
Convertible Debt - Related Party [Abstract]
Convertible Debt - Related Party	Note 9. Convertible Debt – Related Party The following table is a summary of our convertible debt – related party on June 30, 2015: Gross Principal Amount Unamortized Debt Discount Net Amount Note Payable A $ 20,000,000 $ (4,021,808 ) $ 15,978,192 Note Payable B 3,500,000 (620,944 ) 2,879,056 Note Payable C 4,990,000 (1,051,784 ) 3,938,216 $ 28,490,000 $ (5,694,536 ) $ 22,795,464 The Convertible Debt-Related Party is held by Mr. Lewis C. Pell, a member of the Company’s board of directors, and consists of three convertible promissory notes. • Note Payable A accrues annual interest at the rate of 0.84%. The outstanding principal amount of Note Payable A is convertible into shares of our common stock at a conversion price of $6.00 per share. • Note Payable B accrues annual interest at the rate of 1.66%. The outstanding principal amount of Note Payable B is convertible into shares of our common stock at a conversion price of $4.45 per share. • Note Payable C accrues annual interest at the rate of 1.91%. The outstanding principal amount of Note Payable C is convertible into shares of our common stock at a conversion price of $5.55 per share. At June 30, 2015, we had an aggregate amount of $599,954 in accrued interest under the convertible notes payable, which is included in accrued expenses on our consolidated balance sheet. The convertible promissory notes mature on March 31, 2020 or earlier upon a change of control (as defined). The convertible promissory notes generally cannot be converted prior to March 31, 2018. The convertible promissory notes may be converted earlier prior to a change in control or in connection with our prepayment of the convertible promissory notes. The convertible promissory notes may be prepaid, at our option and upon 15 days’ notice to Mr. Pell, without other premium or penalty, with a combination of cash and common stock. Interest on the convertible promissory notes is payable on the maturity date or upon repayment or conversion of all or any portion of the principal under the note. Under purchase accounting for the merger, the convertible promissory notes were recorded at fair value on the merger date, resulting in a discount from their face value of $5,960,000. The discount is being amortized over the remaining term based on the effective interest rate method with an imputed interest rate of 4.72%.

Savings and Retirement Plans

Savings and Retirement Plans	3 Months Ended
	Jun. 30, 2015
Savings and Retirement Plans [Abstract]
Savings and Retirement Plans	Note 10. Savings and Retirement Plans We sponsor various retirement plans for eligible employees in the United States, the United Kingdom, and The Netherlands. Our retirement savings plan in the United States conforms to Section 401(k) of the Internal Revenue Code and participation is available to substantially all employees. We may also make discretionary contributions ratably to all eligible employees. We made discretionary contributions to the U.S. plan and $72 Our international subsidiaries have defined benefit retirement plans for eligible employees. These plans provide benefits based on the employee’s years of service and compensation during the years immediately preceding retirement, termination, disability, or death, as defined in the plans. The cost for our defined benefit retirement plans in The Netherlands and the United Kingdom includes the following components for the three month period ended June 30: Three Months Ended June 30 2015 2014 Gross service cost $ 36,000 $ 36,000 Interest cost 24,000 37,000 Expected return on assets (19,000 ) (27,000 ) Amortization 7,000 1,000 Net periodic retirement cost $ 48,000 $ 47,000

Business Segment Information

Business Segment Information	3 Months Ended
	Jun. 30, 2015
Business Segment Information [Abstract]
Business Segment Information	Note 11. Business Segment Information ASC 280, “Segment Reporting,” We operate in two markets, the medical market and the industrial market. None of the industrial market sales, net losses or assets are more than 10% of our total sales, losses or assets. Therefore, we aggregate our operating segments into one reportable segment in accordance with the objectives and principles of the applicable guidance. For the three months ended June 30, 2015, no country other than the United States represented more than 10% of our consolidated revenue. Information regarding net sales to customers by geographic area for the three months ended June 30, 2014 is as follows: United States United Kingdom All Other Foreign Countries (1) Consolidated Three months ended June 30, 2014 $ 4,533,000 $ 697,000 $ 1,155,000 $ 6,385,000 (1) No other country accounts for 10% or more of the consolidated net sales. Information regarding geographic area in which we maintain long-lived assets is as follows: United States All Other Foreign Countries (1) Consolidated June 30, 2015 $ 1,482,000 $ 488,000 $ 1,970,000 March 31, 2015 $ 1,397,000 $ 475,000 $ 1,872,000 (1) Substantially all maintained in The Netherlands Accounting policies of the operations in the various geographic areas are the same as those described in Note 1. Net sales attributed to each geographic area are net of intercompany equipment.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Cogentix Medical, Inc., headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom, is a global medical device company. We design, develop, manufacture and market innovative proprietary technologies serving the urology, urogynecology/gyn, ENT (ear, nose and throat) and gastrointestinal markets. The Urgent® PC Neuromodulation System is an FDA-cleared device that delivers percutaneous tibial nerve stimulation (PTNS) for the office-based treatment of overactive bladder (OAB). The FDA-cleared EndoSheath® Systems combine state-of-the-art endoscopic technology with a sterile, disposable microbial barrier, providing practitioners and healthcare facilities with a solution to meet the growing need for safe, efficient and cost-effective flexible endoscopy. In the U.S. and worldwide, the Company also offers Macroplastique®, a urethral bulking agent for the treatment of stress urinary incontinence. Outside the U.S., the Company markets additional bulking agents: PTQ® for the treatment of fecal incontinence and VOX® for vocal cord augmentation. The Company is the result of the Merger effective as of March 31, 2015 (the “effective date”) of two medical device companies, Uroplasty, Inc. and Vision-Sciences, Inc. On the effective date of the Merger, the two companies completed an all-stock merger, pursuant to which UPI merged with and into Merger Sub. Merger Sub was the surviving company from the Merger, and changed its name to Uroplasty, LLC. After the merger, VSCI and its consolidated subsidiaries, including Uroplasty LLC, and its subsidiaries, operate under the name Cogentix Medical, Inc. Upon closing of the Merger, the former UPI stockholders owned approximately 62.5% and the VSCI shareholders retained approximately 37.5% of the company. Accordingly, while VSCI was the legal acquirer and issued its shares in the Merger, UPI is the acquiring company in the Merger for accounting purposes and the Merger has been accounted for as a reverse acquisition under the acquisition method of accounting for business combinations. As a result, the financial statements of the Company prior to the effective date of the Merger are the historical financial statements of UPI, whereas the financial statements of the Company after the effective date of the Merger reflect the results of the operations of UPI and VSCI on a combined basis. See additional disclosure provided in note 2. We have prepared our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted, pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information not misleading. The consolidated results of operations for any interim period are not necessarily indicative of results for a full fiscal year. These Condensed Consolidated Financial Statements, presented herein, should be read in conjunction with the audited consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended March 31, 2015. The Condensed Consolidated Financial Statements presented herein as of June 30, 2015 and for the three month periods ended June 30, 2015 and 2014, reflect, in the opinion of management, all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the consolidated financial condition, results of operations and cash flows for the interim periods. We have identified certain accounting policies that we consider particularly important for the portrayal of our results of operations and financial condition and which may require the application of a higher level of judgment by our management, and as a result are subject to an inherent level of uncertainty. These are characterized as “critical accounting policies” and address revenue recognition, accounts receivable, valuation of inventory, foreign currency translation/transactions, purchase price allocation on acquisition, the determination of recoverability of long-lived and intangible assets, long-term incentive plans, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-K for the fiscal year ended March 31, 2015. Based upon our review, we have determined that these policies remain our most critical accounting policies for the three months ended June 30, 2015 and we have made no changes to these policies during fiscal 2016.
Liquidity and Capital Resources	Liquidity and Capital Resources We have incurred substantial operating losses since our inception. We anticipate that we will continue to incur negative cash flows from operations during fiscal 2016, driven by continued investment in a direct sales force for the U.S. market, spending for marketing and for research and development, integration of UPI and VSCI, and general business operations. As of June 30, 2015, we had cash and cash equivalents totaling approximately $6.0 million. We plan to obtain additional debt and/or equity financing during fiscal 2016. There can be no assurance that any contemplated additional financing will be available on terms acceptable to us, if at all. If required, we believe we would be able to reduce our expenses to a sufficient level to continue to operate as a going concern.

Business Combination - Merger20

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc (Tables)	3 Months Ended
	Jun. 30, 2015
Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc [Abstract]
Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed	The preliminary allocation of the purchase price to assets acquired and liabilities assumed is as follows: Cash and cash equivalents $ 2,020,000 Accounts receivable 4,249,000 Inventories 4,462,000 Other current assets 369,000 Property, plant and equipment 817,000 Goodwill 18,750,000 Other intangibles 13,660,000 Other non-current assets 97,000 Total assets acquired 44,424,000 Accounts payable and other liabilities 5,209,000 Deferred revenue 176,000 Convertible debt – related party 22,530,000 Other non-current liabilities 40,000 Total liabilities assumed 27,955,000 Total purchase price $ 16,469,000
Schedule of Recognition of Intangible Assets	The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: Amount Weighted Average Life-Years Developed technology $ 6,200,000 7 Customer relationships 7,270,000 5 Trade names 190,000 10 $ 13,660,000
Schedule of Supplemental Pro forma Combined Results of Operations	The supplemental unaudited pro forma net sales and net loss of the combined entity had the acquisition been completed on April 1, 2013: Three months ended June 30, 2014 Supplemental pro forma combined results of operations: Net sales $ 10,137,000 Net loss $ (5,040,439 ) Loss per share – basic and diluted $ (0.20 )
Schedule of Adjustments to Supplemental Pro forma Combined Results of Operations	Adjustments to the supplemental pro forma combined results of operations are as follows: Three months ended June 30, 2014 Increase in amortization of intangibles $ 594,000 Interest amortization on related party debt 279,000 Increase in net loss $ 873,000

Goodwill and Other Intangible21

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets [Abstract]
Schedule of Other Intangible Assets	Other intangible assets consisted of the following at June 30, 2015 and March 31 2015: June 30, 2015 March 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technology $ 6,200,000 $ 222,000 $ 6,200,000 $ - Patents 5,653,000 5,572,000 5,653,000 5,564,000 Trademarks and trade names 190,000 22,000 190,000 - Customer relationships 7,270,000 383,000 7,270,000 - $ 19,313,000 $ 6,199,000 $ 19,313,000 $ 5,564,000 Accumulated amortization 6,199,000 5,564,000 Net book value of amortizable intangible assets $ 13,114,000 $ 13,749,000

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Inventories	Inventories consist of the following: June 30, 2015 March 31, 2015 Raw materials $ 3,377,000 $ 3,156,000 Work-in-process 658,000 527,000 Finished goods 834,000 1,143,000 $ 4,869,000 $ 4,826,000

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	3 Months Ended
	Jun. 30, 2015
Net Loss per Common Share [Abstract]
Anti-dilutive Securities Excluded from Diluted Loss per Common Share	We calculate basic net loss per common share amounts by dividing net loss by the weighted-average common shares outstanding, excluding outstanding shares contingently subject to forfeiture. For calculating diluted net loss per common share amounts, we add additional shares to the weighted-average common shares outstanding for the assumed exercise of stock options and vesting of restricted shares, if dilutive. Because we had a net loss during the three months ended June 30, 2015 and 2014 the following options and warrants and outstanding and unvested restricted stock to purchase shares of our common stock were excluded from diluted net loss per common share because of their anti-dilutive effect, and therefore, basic net loss per common share equals dilutive net loss per common share: Number of options, warrants and unvested restricted stock Range of stock option and warrant exercise prices June 30, 2015 2,638,000 $ 1.64 to $24.40 June 30, 2014 1,604,000 $ 0.77 to $2.63

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2015
Shareholder's Equity [Abstract]
Weighted-average Assumptions used to Value the Options Granted	We used the following weighted-average assumptions to value the options granted during the three months ended June 30: 2015 2014 Expected life in years 3.84 3.47 Risk-free interest rate 1.11% 1.0% Expected volatility 63.94% 68.43% Expected dividend yield 0% 0% Weighted-average grant date fair value $0.79 $1.59
Stock Option Activity	The following table summarizes the activity related to our stock options during the three months ended June 30, 2015: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at March 31, 2015 2,251,085 $ 5.32 5.06 $ - Options granted 617,914 1.64 Options exercised - - Options surrendered (77,325 ) 6.16 Outstanding at June 30, 2015 2,791,674 $ 4.48 5.48 $ - Exercisable at June 30, 2015 1,661,379 $ 5.83 3.96 $ -
Restricted Shares Activity	The following table summarizes the activity related to our restricted shares during the three months ended June 30, 2015: Number of Shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at March 31, 2015 317,741 $ 4.47 1.93 $ 387,644 Shares granted 379,499 1.64 Shares vested (97,223 ) 4.50 Shares forfeited - - Balance at June 30, 2015 600,017 $ 2.68 2.16 $ 972,027

Convertible Debt - Related Pa25

Convertible Debt - Related Party (Tables)	3 Months Ended
	Jun. 30, 2015
Convertible Debt - Related Party [Abstract]
Summary of Convertible Debt - Related Party	The following table is a summary of our convertible debt – related party on June 30, 2015: Gross Principal Amount Unamortized Debt Discount Net Amount Note Payable A $ 20,000,000 $ (4,021,808 ) $ 15,978,192 Note Payable B 3,500,000 (620,944 ) 2,879,056 Note Payable C 4,990,000 (1,051,784 ) 3,938,216 $ 28,490,000 $ (5,694,536 ) $ 22,795,464

Savings and Retirement Plans (T

Savings and Retirement Plans (Tables)	3 Months Ended
	Jun. 30, 2015
Savings and Retirement Plans [Abstract]
Components of Benefit Costs for Defined Benefit Retirement Plans	The cost for our defined benefit retirement plans in The Netherlands and the United Kingdom includes the following components for the three month period ended June 30: Three Months Ended June 30 2015 2014 Gross service cost $ 36,000 $ 36,000 Interest cost 24,000 37,000 Expected return on assets (19,000 ) (27,000 ) Amortization 7,000 1,000 Net periodic retirement cost $ 48,000 $ 47,000

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Jun. 30, 2015
Business Segment Information [Abstract]
Sales to Customers and Long-Lived Assets by Geographic Area	Information regarding net sales to customers by geographic area for the three months ended June 30, 2014 is as follows: United States United Kingdom All Other Foreign Countries (1) Consolidated Three months ended June 30, 2014 $ 4,533,000 $ 697,000 $ 1,155,000 $ 6,385,000 (1) No other country accounts for 10% or more of the consolidated net sales. Information regarding geographic area in which we maintain long-lived assets is as follows: United States All Other Foreign Countries (1) Consolidated June 30, 2015 $ 1,482,000 $ 488,000 $ 1,970,000 March 31, 2015 $ 1,397,000 $ 475,000 $ 1,872,000 (1) Substantially all maintained in The Netherlands

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - Jun. 30, 2015 $ in Millions	USD ($)Company
Business Acquisition [Line Items]
Number of companies merged	2
Liquidity and Capital Resources [Abstract]
Cash and cash equivalents | $	$ 6
Uroplasty Inc [Member]
Business Acquisition [Line Items]
Ownership percentage (in hundredths)	62.50%
Vision Sciences Inc [Member]
Business Acquisition [Line Items]
Ownership percentage (in hundredths)	37.50%
Reverse stock split ratio	5

Business Combination - Merger29

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Goodwill	$ 18,749,888		$ 18,749,888
Vision- Sciences Inc [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents	2,020,000
Accounts receivable	4,249,000
Inventories	4,462,000
Other current assets	369,000
Property, plant and equipment	817,000
Goodwill	18,750,000
Other intangibles	13,660,000
Other non-current assets	97,000
Total assets acquired	44,424,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Accounts payable and other liabilities	5,209,000
Deferred revenue	176,000
Convertible debt - related party	22,530,000
Other non-current liabilities	40,000
Total liabilities assumed	27,955,000
Total purchase price	16,469,000
Recognition of Intangible Assets [Abstract]
Other intangibles	13,660,000
Supplemental Pro forma Combined Results of Operations [Abstract]
Net sales		$ 10,137,000
Net loss		$ (5,040,439)
Loss per share - basic and diluted (in dollars per share)		$ (0.20)
Adjustments to Supplemental Pro forma Combined Results of Operations [Abstract]
Increase in amortization of intangibles		$ 594,000
Interest amortization on related party debt		279,000
Increase in net loss		$ 873,000
Vision- Sciences Inc [Member] | Developed Technology [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	6,200,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 6,200,000
Weighted Average Life-Years	7 years
Vision- Sciences Inc [Member] | Customer Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	$ 7,270,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 7,270,000
Weighted Average Life-Years	5 years
Vision- Sciences Inc [Member] | Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	$ 190,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 190,000
Weighted Average Life-Years	10 years

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Goodwill and Other Intangible Assets [Abstract]
Amount of purchase price	$ 16,500,000
Goodwill	18,749,888		$ 18,749,888
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	19,313,000		19,313,000
Accumulated amortization	6,199,000		5,564,000
Net book value of amortizable intangible assets	13,114,000		13,749,000
Amortization of intangible assets	$ 634,191	$ 8,326
Weighted average remaining amortization period	5 years 9 months
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 6,200,000		6,200,000
Accumulated amortization	222,000		0
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,653,000		5,653,000
Accumulated amortization	5,572,000		5,564,000
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	190,000		190,000
Accumulated amortization	22,000		0
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	7,270,000		7,270,000
Accumulated amortization	$ 383,000		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets, Fair Value Disclosure [Abstract]
Fair value of plan assets	$ 398,000	$ 730,000

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2015	Mar. 31, 2015
Inventories [Abstract]
Raw materials	$ 3,377,000	$ 3,156,000
Work-in-process	658,000	527,000
Finished goods	834,000	1,143,000
Inventories	4,868,685	4,825,984
Inventory [Line Items]
Inventory adjustment		$ 240,000
Inventory adjustment remaining amount recorded in future	60,000
Cost of Goods Sold [Member]
Inventory [Line Items]
Inventory adjustment	$ 180,000

Net Loss per Common Share (Deta

Net Loss per Common Share (Details) - Options and Unvested Restricted Stock [Member] - $ / shares	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares excluded from computation of diluted loss per common share (in shares)	2,638,000	1,604,000
Range of exercise prices - lower range limit (in dollars per share)	$ 1.64	$ 0.77
Range of exercise prices - upper range limit (in dollars per share)	$ 24.40	$ 2.63

Shareholders' Equity (Details)

Shareholders' Equity (Details)	3 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)Plan$ / sharesshares	Jun. 30, 2014USD ($)$ / shares	Mar. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense | $	$ 225,000	$ 323,000
Restricted shares and warrants, additional disclosures [Abstract]
Warrants issued to purchase common stock (in shares) | shares	376,123
Warrants exercise price (in dollars per share)	$ 9.31
Recorded expenses | $	$ 29,176	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 1,103,000
Unrecognized compensation expense, weighted average period of recognition	1 year 9 months
Weighted-average assumptions used to value the options granted [Abstract]
Expected life, in years	3 years 10 months 2 days	3 years 5 months 19 days
Risk-free interest rate (in hundredths)	1.11%	1.00%
Expected volatility (in hundredths)	63.94%	68.43%
Expected dividend yield (in hundredths)	0.00%	0.00%
Weighted-average grant date fair value (in dollars per share)	$ 0.79	$ 1.59
Stock options, number of shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	2,251,085
Options granted (in shares) | shares	617,914
Options exercised (in shares) | shares	0
Options surrendered (in shares) | shares	(77,325)
Outstanding, end of period (in shares) | shares	2,791,674		2,251,085
Exercisable, end of period (in shares) | shares	1,661,379
Stock options, weighted average exercise price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 5.32
Options granted (in dollars per share)	1.64
Options exercised (in dollars per share)	0
Options surrendered (in dollars per share)	6.16
Outstanding, end of period (in dollars per share)	4.48		$ 5.32
Exercisable, end of period (in dollars per share)	$ 5.83
Stock options, additional disclosures [Abstract]
Outstanding, weighted average remaining life in years	5 years 5 months 23 days		5 years 22 days
Options exercisable, Weighted average remaining life in years	3 years 11 months 16 days
Outstanding, aggregate intrinsic value, end of period | $	$ 0		$ 0
Exercisable, aggregate intrinsic value, end of period | $	0
Fair value of stock options vested | $	$ 55,000	$ 95,000
Stock Options [Member] | Executive Employees and Directors [Member]
Weighted-average assumptions used to value the options granted [Abstract]
Forfeiture rate (in hundredths)	10.00%
Stock Options [Member] | Non-Executive Employees [Member]
Weighted-average assumptions used to value the options granted [Abstract]
Forfeiture rate (in hundredths)	15.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 1,443,000
Unrecognized compensation expense, weighted average period of recognition	2 years 1 month 28 days
Restricted shares and warrants, number of shares [Roll Forward]
Balance, beginning of period (in shares) | shares	317,741
Shares granted (in shares) | shares	379,499
Shares vested (in shares) | shares	(97,223)
Shares forfeited (in shares) | shares	0
Balance, end of period (in shares) | shares	600,017		317,741
Restricted shares, weighted average grant date fair value [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 4.47
Shares granted (in dollars per share)	1.64
Shares vested (in dollars per share)	4.50
Shares forfeited (in dollars per share)	0
Balance, end of period (in dollars per share)	$ 2.68		$ 4.47
Restricted shares and warrants, additional disclosures [Abstract]
Weighted average remaining life in years	2 years 1 month 28 days		1 year 11 months 5 days
Balance, end of period | $	$ 972,027		$ 387,644
Performance Award [Member]
Restricted shares and warrants, additional disclosures [Abstract]
First stock price target of common stock (in dollars per share)	$ 7.57
Second stock price target of common stock (in dollars per share)	10.32
Third stock price target of common stock (in dollars per share)	$ 13.76
Number of consecutive trading days	45 days
Award requisite service period	2 years 4 months 24 days
Recorded liability | $	$ 123,000
Recorded expenses | $	$ (29,000)
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of active plans for share-based compensation grants | Plan	1
Number of shares reserved for share-based grants (in shares) | shares	2,500,000
Shares remain available for grant (in shares) | shares	1,502,587
2015 Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2015 Plan [Member] | Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of share-based payment award	5 years
2015 Plan [Member] | Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of share-based payment award	7 years

Convertible Debt - Related Pa35

Convertible Debt - Related Party (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015
Convertible Debt - Related Party [Abstract]
Net Amount	$ 22,795,464	$ 22,529,497
Accrued interest	$ 599,954
Maturity date	Mar. 31, 2020
Number of days notice for conversion of debt	15 days
Face value of debt	$ 5,960,000
Effective interest rate (in hundredths)	4.72%
Convertible Debt [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 28,490,000
Unamortized Debt Discount	(5,694,536)
Net Amount	22,795,464
Convertible Debt [Member] | Note Payable A [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	20,000,000
Unamortized Debt Discount	(4,021,808)
Net Amount	$ 15,978,192
Annual interest rate (in hundredths)	0.84%
Debt conversion price (in dollars per share)	$ 6
Convertible Debt [Member] | Note Payable B [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 3,500,000
Unamortized Debt Discount	(620,944)
Net Amount	$ 2,879,056
Annual interest rate (in hundredths)	1.66%
Debt conversion price (in dollars per share)	$ 4.45
Convertible Debt [Member] | Note Payable C [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 4,990,000
Unamortized Debt Discount	(1,051,784)
Net Amount	$ 3,938,216
Annual interest rate (in hundredths)	1.91%
Debt conversion price (in dollars per share)	$ 5.55

Savings and Retirement Plans (D

Savings and Retirement Plans (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Savings and Retirement Plans [Abstract]
Employer discretionary contribution amount to U.S. plan	$ 70,000	$ 72,000
Defined Benefit Plans, Net Periodic Retirement Cost [Abstract]
Gross service cost	36,000	36,000
Interest cost	24,000	37,000
Expected return on assets	(19,000)	(27,000)
Amortization	7,000	1,000
Net periodic retirement cost	$ 48,000	$ 47,000

Business Segment Information (D

Business Segment Information (Details)		3 Months Ended
		Jun. 30, 2015USD ($)SegmentCustomer	Jun. 30, 2014USD ($)	Mar. 31, 2015USD ($)
Business Segment Information [Abstract]
Number of operating markets | Segment		2
Number of operating segments | Segment		1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			$ 6,385,000
Long-lived assets		$ 1,970,000		$ 1,872,000
Number of major customers | Customer		0
United States [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			4,533,000
Long-lived assets		$ 1,482,000		1,397,000
United Kingdom [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			697,000
All Other Foreign Countries [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	[1]		$ 1,155,000
Long-lived assets	[2]	$ 488,000		$ 475,000
[1]	No other country accounts for 10% or more of the consolidated net sales.
[2]	Substantially all maintained in The Netherlands.