Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Sep. 30, 2014 | Nov. 11, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VISION SCIENCES INC /DE/ | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 47,808,456 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000894237 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net sales | $4,110 | $3,968 | $7,862 | $7,620 |
Cost of sales | 2,852 | 2,773 | 5,455 | 5,345 |
Gross profit | 1,258 | 1,195 | 2,407 | 2,275 |
Selling, general, and administrative expenses | 2,358 | 2,050 | 4,849 | 5,100 |
Research and development expenses | 341 | 428 | 877 | 847 |
Operating loss | -1,441 | -1,283 | -3,319 | -3,672 |
Interest expense | -106 | -44 | -189 | -85 |
Other, net | 4 | 7 | -12 | 3 |
Loss before provision for income taxes | -1,543 | -1,320 | -3,520 | -3,754 |
Income tax provision | ' | 3 | ' | 3 |
Net loss | ($1,543) | ($1,323) | ($3,520) | ($3,757) |
Net loss per common share - basic and diluted (in Dollars per share) | ($0.03) | ($0.03) | ($0.08) | ($0.08) |
Weighted average shares used in computing net loss per common share - basic and diluted (in Shares) | 46,327 | 46,144 | 46,294 | 46,127 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,395 | $1,237 |
Accounts receivable, less allowances of $133 and $117, respectively | 2,920 | 3,818 |
Inventories, net | 4,221 | 4,194 |
Prepaid expenses and other current assets | 460 | 455 |
Total current assets | 8,996 | 9,704 |
Machinery and equipment | 3,447 | 3,456 |
Demo equipment | 1,469 | 1,311 |
Furniture and fixtures | 247 | 225 |
Leasehold improvements | 372 | 372 |
Property and equipment, at cost | 5,535 | 5,364 |
Less—accumulated depreciation and amortization | 4,549 | 4,302 |
Total property and equipment, net | 986 | 1,062 |
Other assets, net | 67 | 67 |
Total assets | 10,049 | 10,833 |
Current liabilities: | ' | ' |
Accounts payable | 1,405 | 1,217 |
Accrued expenses | 880 | 918 |
Accrued compensation | 514 | 474 |
Deferred revenue | 310 | 210 |
Capital lease obligations | ' | 22 |
Total current liabilities | 3,109 | 2,841 |
Convertible debt—related party, net of discount | 24,480 | 22,414 |
Deferred revenue, net of current portion | 128 | 93 |
Total liabilities | 27,717 | 25,348 |
Commitments and Contingencies | ' | ' |
Stockholders’ deficit: | ' | ' |
Preferred stock, $0.01 par value Authorized—5,000 shares; issued and outstanding - none | 0 | 0 |
Common stock, $0.01 par value Authorized—100,000 shares; issued and outstanding—47,793 shares and 47,614 shares, respectively | 478 | 476 |
Additional paid-in capital | 103,000 | 102,629 |
Treasury stock at cost, 65 shares and 59 shares of common stock, respectively | -85 | -78 |
Accumulated deficit | -121,061 | -117,542 |
Total stockholders’ deficit | -17,668 | -14,515 |
Total liabilities and stockholders’ deficit | $10,049 | $10,833 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowances (in Dollars) | $133 | $117 |
Preferred Stock Par Value (in Dollars per share) | $0.01 | $0.01 |
Preferred Stock, Authorized Shares | 5,000 | 5,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (in Dollars per share) | $0.01 | $0.01 |
Common Stock, Authorized Shares | 100,000 | 100,000 |
Common Stock, Shares Issued | 47,793 | 47,614 |
Common stock, Shares Outstanding | 47,793 | 47,614 |
Treasury Stock, Shares | 65 | 59 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($3,520) | ($3,757) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 318 | 362 |
Stock-based compensation expense | 349 | 328 |
Provision for bad debt expenses | 11 | 7 |
Amortization of debt discount | 66 | ' |
Loss (gain) on disposal of fixed assets | 9 | -5 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 887 | 802 |
Inventories | -261 | -712 |
Prepaid expenses and other current assets | -5 | -117 |
Accounts payable | 188 | -112 |
Accrued expenses | -38 | 50 |
Accrued compensation | 40 | -96 |
Deferred revenue | 135 | 22 |
Net cash used in operating activities | -1,821 | -3,228 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -17 | -46 |
Proceeds from disposal of fixed assets | ' | 3 |
Net cash used in investing activities | -17 | -43 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of convertible debt—related party | 2,000 | 3,000 |
Proceeds from exercise of stock options | 25 | ' |
Common stock repurchased | -7 | -28 |
Payments of capital leases | -22 | -34 |
Net cash provided by financing activities | 1,996 | 2,938 |
Net increase (decrease) in cash and cash equivalents | 158 | -333 |
Cash and cash equivalents at beginning of period | 1,237 | 788 |
Cash and cash equivalents at end of period | 1,395 | 455 |
Cash paid during the period for: | ' | ' |
Interest | 1 | 4 |
Income taxes | ' | 3 |
Non-cash financing activities: | ' | ' |
Net transfers of inventory to fixed assets for use as demonstration equipment | $234 | $187 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
Note 1. Summary of Significant Accounting Policies | |||||||||||||||||
Vision-Sciences, Inc. and its subsidiaries (the “Company,” or “our”, “us” or “we”) designs, develops, manufactures, and markets products for endoscopy – the science of using an instrument, known as an endoscope, to provide minimally invasive access to areas not readily visible to the human eye. Our products are sold throughout the world through direct sales representatives in the United States (“U.S.”) and independent distributors for the rest of the world. We are the exclusive supplier of ureteroscopes to the Endoscopy Division of Stryker Corporation (“Stryker”). Our largest geographic markets are the U.S. and Europe. | |||||||||||||||||
We are incorporated in Delaware, and are the successor to operations begun in 1987. In December 1990, Machida Incorporated (“Machida”) became our wholly-owned subsidiary. We own the registered trademarks Vision Sciences®, EndoSheath®, EndoWipe®, Slide-On® and The Vision System®. Not all products referenced in this report are approved or cleared for sale, distribution, or use. | |||||||||||||||||
Basis of Presentation and Preparation | |||||||||||||||||
We have prepared the condensed consolidated financial statements included herein according to generally accepted accounting principles in the United States of America (“U.S. GAAP”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include, in the opinion of management, all adjustments (normal and recurring) that we consider necessary for a fair presentation of such information. We have condensed or omitted certain information and footnote disclosures normally included in financial statements pursuant to those rules and regulations. We believe, however, that our disclosures are adequate to make the information presented not misleading. | |||||||||||||||||
The results for the interim periods presented are not necessarily indicative of results to be expected for the full fiscal year. Please read these condensed consolidated financial statements in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |||||||||||||||||
Liquidity and Capital Resources | |||||||||||||||||
We have incurred substantial operating losses since our inception and there can be no assurance that we will ever achieve or sustain a profitable level of operations in the future. We anticipate that we will continue to incur negative cash flows from operations during the remainder of fiscal 2015, driven by continued investment in a direct sales force for the U.S. market, spending for marketing, revitalizing a research and development pipeline, and general business operations. As of September 30, 2014, we had cash and cash equivalents totaling approximately $1.4 million. On June 16, 2014, we issued a convertible promissory note to Lewis C. Pell, our Chairman, or the 2014 Note, that allowed us to borrow up to $5.0 million up to June 15, 2019. The 2014 Note was issued in accordance with a letter agreement dated May 29, 2014 with Mr. Pell, or the Prior Letter Agreement, that provided for up to $5.0 million of capital to be made available to us from Mr. Pell, subject to certain conditions and an expiration date of July 1, 2015. The Prior Letter Agreement was then terminated. As of September 30, 2014, we had $2.0 million in principal outstanding under the 2014 Note. On October 24, 2014 an additional $1.0 million was drawn on the 2014 Note. Pursuant to a letter agreement dated October 28, 2014 with Mr. Pell, or the Existing Letter Agreement, Mr. Pell has agreed to provide financial assistance to us in the amount of up to $2.5 million, if necessary to support our operations, for a period ending on the earlier of (i) January 1, 2016 or (ii) our raising debt or equity capital in the amount of $2.5 million or more. This financial assistance, if drawn by us, would be in the form of an additional loan, share purchase, or financing transaction, on such terms as we and Mr. Pell may determine. We have not utilized the Existing Letter Agreement. We expect that our cash at September 30, 2014, together with $3.0 million remaining to be drawn under the 2014 Note at September 30, 2014, plus the $2.5 million of capital to be made available to us under the Existing Letter Agreement, subject to certain conditions and an expiration date of January 1, 2016, should be sufficient to fund our operations through at least December 31, 2015. However, if our performance expectations fall short (including our failure to generate expected levels of sales) or our expenses exceed expectations, or if the commitment under the 2014 Note or the Existing Letter Agreement become unavailable, we will need to secure additional financing and/or reduce our expenses to continue our operations. Our failure to do so would have a material adverse impact on our prospects and financial condition. 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. | |||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Our condensed consolidated financial statements are prepared in accordance with the rules and regulations of the SEC for interim reporting and U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable, based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are any differences (other than nominal differences) between these estimates, judgments or assumptions and actual results, our financial statements will be affected. | |||||||||||||||||
In the opinion of our Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, our financial position as of September 30, 2014 and the results of operations and cash flows for the three months and six months then ended. The results of operations and cash flows for the period ended September 30, 2014 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year ending March 31, 2015. As of September 30, 2014, there have been no material changes to any of the significant accounting policies described in our Report on Form 10-K for the year ended March 31, 2014. | |||||||||||||||||
The accompanying condensed consolidated financial statements reflect the accounts of the Company. All significant inter-company accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance, namely (“ASU”) No. 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. For public entities, this ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements. | |||||||||||||||||
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, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date on which the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This ASU applies to all entities and is effective for annual periods ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The carrying amounts reflected in our condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, accrued compensation, and capital lease obligations approximate fair value due to their short-term nature. The carrying value of our convertible debt-related party approximates fair value due to its attributes, which include, amongst others, interest and its conversion feature into common stock. | |||||||||||||||||
In determining the fair value of the convertible debt – related party, we analyzed its attributes (coupon rate, conversion price, and the percentage of market cap the face value of the debt instrument was prior to the announcement of the debt) as compared with public company convertible debt issuances in the healthcare industry. We determined the convertible debt was not issued at a discount as its fair value was equal to its face (carrying) value. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Concentration of credit risk with respect to accounts receivable relates to certain domestic and international customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, when appropriate, we obtain advance payments for our international sales. As a consequence, we believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses, but historically we have not experienced any significant credit losses related to any individual customer or group of customers in any particular industry or geographic area. | |||||||||||||||||
The following table summarizes net sales to our significant customer, which accounted for more than 10% of total medical segment net sales and total accounts receivable, net: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Medical segment | |||||||||||||||||
Stryker | $ | 362 | $ | 1,201 | $ | 840 | $ | 2,346 | |||||||||
Percentage of total medical segment net sales | 11 | % | 35 | % | 13 | % | 36 | % | |||||||||
Percentage of total net sales | 9 | % | 30 | % | 11 | % | 31 | % | |||||||||
As of September 30, | As of March 31, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Percentage of total accounts receivable, net | 11 | % | 27 | % | |||||||||||||
Note_2_Basic_and_Diluted_Net_L
Note 2 - Basic and Diluted Net Loss per Common Share | 6 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
Note 2. Basic and Diluted Net Loss per Common Share | |||||||||
Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding. For all periods presented, the diluted net loss per common share is the same as basic net loss per common share, as the inclusion of other shares of stock issuable pursuant to stock options, warrants, and convertible debt would be anti-dilutive. | |||||||||
The following table summarizes equity securities that were excluded from the calculation of fully diluted loss per share as of September 30, 2014 and 2013, respectively: | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Convertible debt | 22,401,050 | 16,666,666 | |||||||
Stock options | 4,305,110 | 4,506,775 | |||||||
Warrants | 1,880,620 | 1,880,620 | |||||||
Restricted stock | 1,387,752 | 207,902 | |||||||
Total anti-dilutive securities | 29,974,532 | 23,261,963 | |||||||
Note_3_Inventories
Note 3 - Inventories | 6 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
Note 3. Inventories | |||||||||
Inventories are stated at the lower of cost or market using the first-in, first-out (“FIFO”) method and consist of the following: | |||||||||
September 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,151 | $ | 3,456 | |||||
Work in process | 578 | 329 | |||||||
Finished goods | 492 | 409 | |||||||
Inventories, net | $ | 4,221 | $ | 4,194 | |||||
Raw materials include components purchased from independent suppliers. Most purchased components are available from multiple sources, with the exception of certain key components which are supplied to us by key suppliers, with whom we have long-term supply arrangements, but no long-term supply agreements. |
Note_4_Supply_Agreements
Note 4 - Supply Agreements | 6 Months Ended |
Sep. 30, 2014 | |
Deferred Revenue Disclosure [Abstract] | ' |
Deferred Revenue Disclosure [Text Block] | ' |
Note 4. Supply Agreements | |
Under a three-year agreement with Stryker Corporation, or Stryker, that expires in December 2015, we are the exclusive supplier of the URT-7000 Video Ureteroscope, peripherals and accessories to Stryker in the United States. | |
From April 2011 through May 2014, Stryker had the exclusive rights to market and sell our cystoscopes, the CST- 5000 Video Cystoscope and the CST-4000 Fiber Cystoscope, and the accompanying EndoSheath disposables, peripherals and accessories, (the “Cystocscope Products”). We elected to not renew this exclusivity and to directly sell the Cystoscope Products in the U.S. We made this decision in large part because Stryker’s endoscopy sales force focuses on the operating room in hospitals, while most cystoscopy procedures are performed in physicians’ offices and ambulatory surgical centers. |
Note_5_Convetible_Debt_Related
Note 5 - Convetible Debt - Related Party | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||
Note 5. Convertible Debt – Related Party | |||||||||||||||||
Convertible Promissory Notes | |||||||||||||||||
The following table is a summary of our convertible debt – related party at September 30, 2014: | |||||||||||||||||
Convertible debt – related party | Gross | Unamortized | Net Amount | ||||||||||||||
Principal | Debt | Outstanding | |||||||||||||||
Amount | Discount | ||||||||||||||||
Outstanding | |||||||||||||||||
Replacement Note | $ | 20,000 | $ | - | $ | 20,000 | |||||||||||
2013 Note | 3,500 | (1,020 | ) | 2,480 | |||||||||||||
2014 Note | 2,000 | - | 2,000 | ||||||||||||||
$ | 25,500 | $ | (1,020 | ) | $ | 24,480 | |||||||||||
Pursuant to the Prior Letter Agreement, Mr. Pell agreed to provide financial assistance to us in the amount of up to $5.0 million, if necessary to support our operations, for a period ending on the earlier of (i) July 1, 2015 or (ii) our raising debt or equity capital in the amount of $5.0 million or more. The Prior Letter Agreement provided that this financial assistance, if drawn by us, would be in the form of an additional loan, share purchase, or financing transaction, on such terms as we and Mr. Pell may determine. The Prior Letter Agreement was terminated upon the issuance of the 2014 Note. | |||||||||||||||||
Pursuant to the Prior Letter Agreement, on June 16, 2014, or the 2014 Effective Date, we issued the 2014 Note with Mr. Pell that allowed us to borrow up to $5.0 million up to June 15, 2019. The 2014 Note accrues annual interest at the rate of 1.91%. The 2014 Note must be repaid in full on or before the fifth anniversary of the 2014 Effective Date, or the 2014 Maturity Date, but may be prepaid by us at any time without penalty. We will be required to repay all amounts outstanding under the 2014 Note upon an event of default, as defined in the 2014 Note. The outstanding principal amount of the 2014 Note is convertible at any time prior to the 2014 Maturity Date, at Mr. Pell’s option, into shares of our common stock at a price of $1.11, the closing bid price of our common stock on the 2014 Effective Date. At September 30, 2014, we had outstanding principal borrowings of $2.0 million under the 2014 Note, which is included in convertible debt – related party on our condensed consolidated balance sheet. Each time we draw on any available credit under the 2014 Note, we determine if a beneficial conversion feature of the convertible debt exists. A beneficial conversion feature will arise if the $1.11 conversion price of the 2014 Note is below the per share fair value of our common stock on the date of a drawdown. | |||||||||||||||||
On September 25, 2013, or the 2013 Effective Date, we entered into a convertible promissory note, or the 2013 Note, with Mr. Pell that allowed us to borrow up to $3.5 million. The 2013 Note accrues annual interest, at the rate of 1.66%. The 2013 Note must be repaid in full on or before the fifth anniversary of the 2013 Effective Date, or the 2013 Maturity Date, but may be prepaid by us at any time without penalty. We will be required to repay all amounts outstanding under the 2013 Note upon an event of default, as defined in the 2013 Note. The outstanding principal amount of the 2013 Note is convertible at any time prior to the 2013 Maturity Date, at Mr. Pell’s option, into shares of our common stock at a price of $0.89, the closing bid price of our common stock on the 2013 Effective Date. At September 30, 2014, we had outstanding principal borrowings of $3.5 million, gross of the amount recognized as a beneficial conversion feature, under the 2013 Note, which is included in Convertible debt – related party on our condensed consolidated balance sheet. | |||||||||||||||||
During each draw upon the 2013 Note, a beneficial conversion feature was recorded as a result of the market price of our common stock increasing after the 2013 Effective Date. The following table summarizes the unamortized beneficial conversion feature amounts recorded as of September 30, 2014: | |||||||||||||||||
Date | Borrowing | Convertible | Share Price | Unamortized Beneficial | |||||||||||||
Amount | Shares | on | Conversion | ||||||||||||||
Borrowing | Feature | ||||||||||||||||
Date | |||||||||||||||||
7-Oct-13 | $ | 1,000 | 1,123,595 | $ | 0.95 | $ | 55 | ||||||||||
26-Nov-13 | 1,000 | 1,123,595 | 1.01 | 113 | |||||||||||||
21-Jan-14 | 1,000 | 1,123,595 | 1.39 | 508 | |||||||||||||
13-Mar-14 | 500 | 561,799 | 1.54 | 344 | |||||||||||||
$ | 3,500 | 3,932,584 | $ | 1,020 | |||||||||||||
The beneficial conversion feature amounts were recorded as a convertible debt discount with a corresponding increase to additional paid-in capital. The amounts are being amortized using the effective interest rate method from the borrowing date to the Maturity Date. At September 30, 2014, we expect to recognize the unamortized convertible debt discount balance of $1.0 million over a period of approximately four years. | |||||||||||||||||
On September 19, 2012, or the Replacement Note Effective Date, we entered into a convertible promissory note, or the Replacement Note, with Mr. Pell that allowed us to borrow up to $20.0 million. The Replacement Note (i) consolidated and restructured the $15.0 million in aggregate borrowings collectively outstanding under an Amended and Restated Loan Agreement, dated September 30, 2011, between us and Mr. Pell, or the Original Agreement, and a separate promissory note, dated July 25, 2012, between us and Mr. Pell, and (ii) provided for up to $5.0 million in additional borrowings. | |||||||||||||||||
The Replacement Note accrues annual interest, payable annually, at the rate of 0.84%. The Replacement Note must be repaid in full on or before the fifth anniversary of the Replacement Note Effective Date, or the Replacement Note Maturity Date, but may be prepaid by us at any time without penalty. We will be required to repay all amounts outstanding under the Replacement Note upon an event of default, as defined in the Replacement Note. | |||||||||||||||||
The outstanding principal amount of the Replacement Note is convertible at any time prior to the Replacement Note Maturity Date, at Mr. Pell’s option, into shares of our common stock at a conversion price of $1.20 per share, which was the closing bid price of our common stock on the Replacement Note Effective Date. At September 30, 2014, we had $20.0 million in outstanding principal borrowings under the Replacement Note, which is reflected as convertible debt – related party on our condensed consolidated balance sheet. | |||||||||||||||||
Pursuant to the Original Agreement, Mr. Pell received warrants to purchase an aggregate of 1,880,620 shares of our common stock at a weighted average exercise price of $1.86 per share. All of the warrants are vested and expire on the later of September 30, 2016 or one year after the termination of the Original Agreement and repayment of all amounts due and payable under the Original Agreement. | |||||||||||||||||
Amortization of the convertible debt discount and interest expense related to the accrued interest on outstanding borrowings are recorded as interest expense in our condensed consolidated statement of operations. Interest expense for the three months ended September 30, 2014 and 2013, respectively, was comprised of: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Amortization of convertible debt discount | $ | (40 | ) | $ | - | $ | (66 | ) | $ | - | |||||||
Interest expense | (66 | ) | (44 | ) | (123 | ) | (85 | ) | |||||||||
$ | (106 | ) | $ | (44 | ) | $ | (189 | ) | $ | (85 | ) | ||||||
At September 30, 2014, we had an aggregate amount of $376 thousand in accrued interest under the 2014 Note, the 2013 Note and the Replacement Note, which is included in accrued expenses on our condensed consolidated balance sheet. | |||||||||||||||||
Existing Letter Agreement | |||||||||||||||||
Pursuant to the Existing Letter Agreement, Mr. Pell has agreed to provide financial assistance to us in the amount of up to $2.5 million, if necessary to support our operations, for a period ending on the earlier of (i) January 1, 2016 or (ii) our raising debt or equity capital in the amount of $2.5 million or more. This financial assistance, if drawn by us, would be in the form of an additional loan, share purchase, or financing transaction, on such terms as we and Mr. Pell may determine. We have not utilized the Existing Letter Agreement. |
Note_6_StockBased_Awards
Note 6 - Stock-Based Awards | 6 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||
Note 6. Stock-Based Awards | |||||||||||||||||||||||
We maintain the following stockholder-approved equity incentive plans: | |||||||||||||||||||||||
● | The 2000 Stock Incentive Plan (the “2000 Plan”) authorized the issuance of up to 4,500,000 shares of common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, and performance shares. | ||||||||||||||||||||||
● | The 2007 Stock Incentive Plan (the “2007 Plan”) authorized the issuance of up to 5,000,000 shares of common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, and other stock-based awards. On July 26, 2012, our stockholders approved an amendment to the 2007 Plan further increasing the number of authorized shares issuable under the plan to 7,000,000 shares of common stock. | ||||||||||||||||||||||
● | The 2003 Director Option Plan (the “2003 Plan”) authorized the issuance of up to 450,000 shares of common stock covering the annual automatic grant, unless waived, of 10,000 stock options per outside director per year. The 2003 Plan also provides for granting newly elected or appointed outside directors a one-time grant of 10,000 stock options. | ||||||||||||||||||||||
The stock option plans provide that options may be granted at an exercise price of 100% of fair market value of our common stock on the date of grant, may be exercised in full or in installments, at the discretion of our Board of Directors (the “Board”) or its Compensation Committee (the “Compensation Committee”), and must be exercised within ten years from date of grant. We recognize stock-based compensation expense on a straight-line basis over the requisite service period based on fair values, generally four years. We use historical data to estimate expected employee behaviors related to option exercises and forfeitures and included these expected forfeitures as a part of the estimate of stock-based compensation expense as of the grant date. | |||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||
The following table summarizes stock options activity for the six months ended September 30, 2014: | |||||||||||||||||||||||
Number | Exercise | Weighted | Weighted | ||||||||||||||||||||
of Shares | Price Range | Average | Average | ||||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||
Outstanding at April 1, 2014 | 4,377,874 | $0.85 – $4.88 | $ | 1.78 | 6 | ||||||||||||||||||
Granted | 830,000 | 0.90 – 1.25 | 1.06 | ||||||||||||||||||||
Exercised | (25,000 | ) | 0.97 – 0.97 | 0.97 | |||||||||||||||||||
Canceled | (877,764 | ) | 0.95 – 4.30 | 2.4 | |||||||||||||||||||
Outstanding at September 30, 2014 | 4,305,110 | $0.85 – $4.88 | $ | 1.52 | 6.4 | ||||||||||||||||||
Vested and expected to vest at September 30, 2014 | 4,262,557 | $0.85 – $4.88 | $ | 1.53 | 6.4 | ||||||||||||||||||
Exercisable at September 30, 2014 | 3,260,194 | $0.85 – $4.88 | $ | 1.64 | 5.5 | ||||||||||||||||||
The weighted average fair value of options granted during the six months ended September 30, 2014 and 2013 was $0.73 and $0.68 per share, respectively. | |||||||||||||||||||||||
The total intrinsic value (the excess of the market price over the exercise price) was approximately $12 thousand for stock options outstanding, $10 thousand for stock options exercisable, and $12 thousand for stock options vested and expected to vest as of September 30, 2014. The total intrinsic value for stock options exercised during the six months ended September 30, 2014 was approximately $5 thousand. There were no stock options exercised during the six months ended September 30, 2013. | |||||||||||||||||||||||
We do not expect to realize any tax benefits from future disqualifying dispositions, if any. | |||||||||||||||||||||||
RestrictedStock | |||||||||||||||||||||||
We determine stock-based compensation expense for performance based restricted stock based upon the fair value of our common stock at the date of grant and recognize expense based upon the most probable outcome as to whether the performance targets will be achieved and the stock-based compensation being earned. | |||||||||||||||||||||||
The following table summarizes restricted stock activity for the six months ended September 30, 2014: | |||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||
Grant Price | |||||||||||||||||||||||
Nonvested at April 1, 2014 | 1,325,402 | $ | 1.06 | ||||||||||||||||||||
Granted | 473,605 | 1.08 | |||||||||||||||||||||
Vested | (91,450 | ) | 1.38 | ||||||||||||||||||||
Forfeited | (319,805 | ) | 1.05 | ||||||||||||||||||||
Nonvested at September 30, 2014 | 1,387,752 | $ | 1.05 | ||||||||||||||||||||
We grant restricted stock awards to certain executive officers, certain management employees and certain members of our Board. | |||||||||||||||||||||||
Stock-Based Compensation Expense | |||||||||||||||||||||||
We estimated the fair value of the stock options granted on the date of grant using a Black-Scholes valuation model that used the weighted average assumptions noted in the following table. The risk-free interest rate assumption we use is based upon United States Treasury interest rates appropriate for the expected life of the awards. The expected life (estimated period of time that we expect employees, consultants and directors to hold their stock options) was estimated based on historical rates for two group classifications, (i) employees and consultants and (ii) outside directors. Expected volatility was based on historical volatility of our stock price for a period equal to the stock option’s expected life and calculated on a daily basis. The expected dividend rate is zero since we do not currently pay cash dividends on our common stock and do not anticipate doing so in the foreseeable future. | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 2 | % | 1.4 | % | 2 | % | 1.2 | % | |||||||||||||||
Expected life (in years) | 6.5 | 5.1 | 6.6 | 5.5 | |||||||||||||||||||
Expected volatility | 78 | % | 75 | % | 77 | % | 80 | % | |||||||||||||||
Expected dividend yield | -- | -- | -- | -- | |||||||||||||||||||
The following table summarizes stock-based compensation recorded in our condensed consolidated statements of operations for the three and six months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Cost of sales | $ | 22 | $ | 12 | $ | 38 | $ | 42 | |||||||||||||||
Selling, general and administrative expenses | 166 | (244 | ) | 289 | 265 | ||||||||||||||||||
Research and development expenses | 7 | 5 | 22 | 21 | |||||||||||||||||||
Total stock-based compensation expense | $ | 195 | $ | (227 | ) | $ | 349 | $ | 328 | ||||||||||||||
At September 30, 2014, unrecognized stock-based compensation expense related to stock options was approximately $0.7 million and is expected to be recognized over a weighted average period of approximately 3.2 years, while unrecognized stock-based compensation expense related to nonvested (restricted stock) awards was approximately $0.5 million, which is expected to be recognized over a weighted average period of approximately 3.0 years. |
Note_7_Treasury_Stock
Note 7 - Treasury Stock | 6 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||
Treasury Stock [Text Block] | ' | ||||||||||||
Note 7. Treasury Stock | |||||||||||||
The following table summarizes treasury stock activity for the six months ended September 30, 2014 and 2013: | |||||||||||||
SixMonths Ended | Number | Cost | Weighted | ||||||||||
of Shares | Average | ||||||||||||
Repurchased | Purchase | ||||||||||||
Price | |||||||||||||
30-Sep-14 | 6 | $ | 7 | $ | 1.22 | ||||||||
30-Sep-13 | 26 | $ | 28 | $ | 1.11 | ||||||||
The shares were purchased from certain management employees to cover income tax withholdings upon the lapse of restrictions on their restricted stock awards. |
Note_8_Segment_Information
Note 8 - Segment Information | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
Note 8. Segment Information | |||||||||||||||||
We have two reportable segments, medical and industrial. Each of these operating segments has unique characteristics. Management evaluates the revenue and profitability performance of each of our product lines to make operating and strategic decisions. We have no intersegment revenue. | |||||||||||||||||
Our medical segment designs, develops, manufactures, and markets our advanced line of endoscopy-based products, including our state-of-the-art flexible endoscopes, and our EndoSheath technology (referred to as a sheath or EndoSheath disposable) for a variety of specialties and markets. | |||||||||||||||||
Our industrial segment, through our wholly-owned subsidiary Machida, designs, manufactures, and sells borescopes to a variety of users, primarily in the aircraft engine manufacturing and aircraft engine maintenance industries. A borescope is an instrument that uses optical fibers for the visual inspection of narrow cavities. Our borescopes are used to inspect aircraft engines, casting parts and ground turbines, among other items. | |||||||||||||||||
The following table presents key financial highlights, by reportable segments: | |||||||||||||||||
Three Months Ended September 30, 2014 | Medical | Industrial | Adjustments* | Consolidated | |||||||||||||
Net sales | $ | 3,267 | $ | 843 | $ | - | $ | 4,110 | |||||||||
Gross profit | 1,023 | 235 | - | 1,258 | |||||||||||||
Operating loss | (1,435 | ) | (6 | ) | - | (1,441 | ) | ||||||||||
Interest expense, net | (106 | ) | - | - | (106 | ) | |||||||||||
Depreciation and amortization | 151 | 1 | - | 152 | |||||||||||||
Stock-based compensation expense | 186 | 9 | - | 195 | |||||||||||||
Expenditures for fixed assets | (8 | ) | - | - | (8 | ) | |||||||||||
As of September 30, 2014 | |||||||||||||||||
Total assets | 10,542 | 1,865 | (2,358 | ) | 10,049 | ||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 3,399 | $ | 569 | $ | - | $ | 3,968 | |||||||||
Gross profit | 981 | 214 | - | 1,195 | |||||||||||||
Operating loss | (1,345 | ) | 62 | - | (1,283 | ) | |||||||||||
Interest expense, net | (44 | ) | - | - | (44 | ) | |||||||||||
Depreciation and amortization | 170 | 3 | - | 173 | |||||||||||||
Stock-based compensation expense | (221 | ) | (6 | ) | - | (227 | ) | ||||||||||
Expenditures for fixed assets | 46 | - | - | 46 | |||||||||||||
As of September 30, 2013 | |||||||||||||||||
Total assets | 11,240 | 1,333 | (1,840 | ) | 10,733 | ||||||||||||
Six Months Ended September 30, 2014 | Medical | Industrial | Adjustments* | Consolidated | |||||||||||||
Net sales | $ | 6,327 | $ | 1,535 | $ | - | $ | 7,862 | |||||||||
Gross profit | 1,921 | 486 | - | 2,407 | |||||||||||||
Operating loss | (3,273 | ) | (46 | ) | - | (3,319 | ) | ||||||||||
Interest expense, net | (189 | ) | - | - | (189 | ) | |||||||||||
Depreciation and amortization | 314 | 4 | - | 318 | |||||||||||||
Stock-based compensation expense | 328 | 21 | - | 349 | |||||||||||||
Expenditures for fixed assets | 17 | - | - | 17 | |||||||||||||
Six Months Ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 6,428 | $ | 1,192 | $ | - | $ | 7,620 | |||||||||
Gross profit | 1,774 | 501 | - | 2,275 | |||||||||||||
Operating loss | (3,732 | ) | 60 | - | (3,672 | ) | |||||||||||
Interest expense, net | (85 | ) | - | - | (85 | ) | |||||||||||
Depreciation and amortization | 355 | 7 | - | 362 | |||||||||||||
Stock-based compensation expense | 309 | 19 | - | 328 | |||||||||||||
Expenditures for fixed assets | 46 | - | - | 46 | |||||||||||||
As of September 30, | |||||||||||||||||
* Adjustments | 2014 | 2013 | |||||||||||||||
Intercompany eliminations | $ | (1,672 | ) | $ | (1,154 | ) | |||||||||||
Investment in subsidiaries | (686 | ) | (686 | ) | |||||||||||||
Total adjustments | $ | (2,358 | ) | $ | (1,840 | ) | |||||||||||
Note_9_Subsequent_Events
Note 9 - Subsequent Events | 6 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 9. Subsequent Events | |
On October 24, 2014, we drew down another $1.0 million under the 2014 Note. As of November 13, 2014, we had $3.0 million in principal outstanding under the 2014 Note. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||||||||||
Basis of Presentation and Preparation | |||||||||||||||||
We have prepared the condensed consolidated financial statements included herein according to generally accepted accounting principles in the United States of America (“U.S. GAAP”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include, in the opinion of management, all adjustments (normal and recurring) that we consider necessary for a fair presentation of such information. We have condensed or omitted certain information and footnote disclosures normally included in financial statements pursuant to those rules and regulations. We believe, however, that our disclosures are adequate to make the information presented not misleading. | |||||||||||||||||
The results for the interim periods presented are not necessarily indicative of results to be expected for the full fiscal year. Please read these condensed consolidated financial statements in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |||||||||||||||||
Liquidity Disclosure [Policy Text Block] | ' | ||||||||||||||||
Liquidity and Capital Resources | |||||||||||||||||
We have incurred substantial operating losses since our inception and there can be no assurance that we will ever achieve or sustain a profitable level of operations in the future. We anticipate that we will continue to incur negative cash flows from operations during the remainder of fiscal 2015, driven by continued investment in a direct sales force for the U.S. market, spending for marketing, revitalizing a research and development pipeline, and general business operations. As of September 30, 2014, we had cash and cash equivalents totaling approximately $1.4 million. On June 16, 2014, we issued a convertible promissory note to Lewis C. Pell, our Chairman, or the 2014 Note, that allowed us to borrow up to $5.0 million up to June 15, 2019. The 2014 Note was issued in accordance with a letter agreement dated May 29, 2014 with Mr. Pell, or the Prior Letter Agreement, that provided for up to $5.0 million of capital to be made available to us from Mr. Pell, subject to certain conditions and an expiration date of July 1, 2015. The Prior Letter Agreement was then terminated. As of September 30, 2014, we had $2.0 million in principal outstanding under the 2014 Note. On October 24, 2014 an additional $1.0 million was drawn on the 2014 Note. Pursuant to a letter agreement dated October 28, 2014 with Mr. Pell, or the Existing Letter Agreement, Mr. Pell has agreed to provide financial assistance to us in the amount of up to $2.5 million, if necessary to support our operations, for a period ending on the earlier of (i) January 1, 2016 or (ii) our raising debt or equity capital in the amount of $2.5 million or more. This financial assistance, if drawn by us, would be in the form of an additional loan, share purchase, or financing transaction, on such terms as we and Mr. Pell may determine. We have not utilized the Existing Letter Agreement. We expect that our cash at September 30, 2014, together with $3.0 million remaining to be drawn under the 2014 Note at September 30, 2014, plus the $2.5 million of capital to be made available to us under the Existing Letter Agreement, subject to certain conditions and an expiration date of January 1, 2016, should be sufficient to fund our operations through at least December 31, 2015. However, if our performance expectations fall short (including our failure to generate expected levels of sales) or our expenses exceed expectations, or if the commitment under the 2014 Note or the Existing Letter Agreement become unavailable, we will need to secure additional financing and/or reduce our expenses to continue our operations. Our failure to do so would have a material adverse impact on our prospects and financial condition. 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. | |||||||||||||||||
Summary of Significant Accounting Policies [Policy Text Block] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Our condensed consolidated financial statements are prepared in accordance with the rules and regulations of the SEC for interim reporting and U.S. GAAP. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable, based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are any differences (other than nominal differences) between these estimates, judgments or assumptions and actual results, our financial statements will be affected. | |||||||||||||||||
In the opinion of our Company’s management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, our financial position as of September 30, 2014 and the results of operations and cash flows for the three months and six months then ended. The results of operations and cash flows for the period ended September 30, 2014 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year ending March 31, 2015. As of September 30, 2014, there have been no material changes to any of the significant accounting policies described in our Report on Form 10-K for the year ended March 31, 2014. | |||||||||||||||||
The accompanying condensed consolidated financial statements reflect the accounts of the Company. All significant inter-company accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance, namely (“ASU”) No. 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. For public entities, this ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements. | |||||||||||||||||
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, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date on which the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This ASU applies to all entities and is effective for annual periods ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements. | |||||||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The carrying amounts reflected in our condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, accrued compensation, and capital lease obligations approximate fair value due to their short-term nature. The carrying value of our convertible debt-related party approximates fair value due to its attributes, which include, amongst others, interest and its conversion feature into common stock. | |||||||||||||||||
In determining the fair value of the convertible debt – related party, we analyzed its attributes (coupon rate, conversion price, and the percentage of market cap the face value of the debt instrument was prior to the announcement of the debt) as compared with public company convertible debt issuances in the healthcare industry. We determined the convertible debt was not issued at a discount as its fair value was equal to its face (carrying) value. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Concentration of credit risk with respect to accounts receivable relates to certain domestic and international customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, when appropriate, we obtain advance payments for our international sales. As a consequence, we believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses, but historically we have not experienced any significant credit losses related to any individual customer or group of customers in any particular industry or geographic area. | |||||||||||||||||
The following table summarizes net sales to our significant customer, which accounted for more than 10% of total medical segment net sales and total accounts receivable, net: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Medical segment | |||||||||||||||||
Stryker | $ | 362 | $ | 1,201 | $ | 840 | $ | 2,346 | |||||||||
Percentage of total medical segment net sales | 11 | % | 35 | % | 13 | % | 36 | % | |||||||||
Percentage of total net sales | 9 | % | 30 | % | 11 | % | 31 | % | |||||||||
As of September 30, | As of March 31, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Percentage of total accounts receivable, net | 11 | % | 27 | % |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Sales Revenue, Segment [Member] | ' | ||||||||||||||||
Note 1 - Summary of Significant Accounting Policies (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Medical segment | |||||||||||||||||
Stryker | $ | 362 | $ | 1,201 | $ | 840 | $ | 2,346 | |||||||||
Percentage of total medical segment net sales | 11 | % | 35 | % | 13 | % | 36 | % | |||||||||
Percentage of total net sales | 9 | % | 30 | % | 11 | % | 31 | % | |||||||||
Accounts Receivable [Member] | ' | ||||||||||||||||
Note 1 - Summary of Significant Accounting Policies (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||||||
As of September 30, | As of March 31, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Percentage of total accounts receivable, net | 11 | % | 27 | % |
Note_2_Basic_and_Diluted_Net_L1
Note 2 - Basic and Diluted Net Loss per Common Share (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Convertible debt | 22,401,050 | 16,666,666 | |||||||
Stock options | 4,305,110 | 4,506,775 | |||||||
Warrants | 1,880,620 | 1,880,620 | |||||||
Restricted stock | 1,387,752 | 207,902 | |||||||
Total anti-dilutive securities | 29,974,532 | 23,261,963 |
Note_3_Inventories_Tables
Note 3 - Inventories (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | March 31, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,151 | $ | 3,456 | |||||
Work in process | 578 | 329 | |||||||
Finished goods | 492 | 409 | |||||||
Inventories, net | $ | 4,221 | $ | 4,194 |
Note_5_Convetible_Debt_Related1
Note 5 - Convetible Debt - Related Party (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||||||||||
Convertible debt – related party | Gross | Unamortized | Net Amount | ||||||||||||||
Principal | Debt | Outstanding | |||||||||||||||
Amount | Discount | ||||||||||||||||
Outstanding | |||||||||||||||||
Replacement Note | $ | 20,000 | $ | - | $ | 20,000 | |||||||||||
2013 Note | 3,500 | (1,020 | ) | 2,480 | |||||||||||||
2014 Note | 2,000 | - | 2,000 | ||||||||||||||
$ | 25,500 | $ | (1,020 | ) | $ | 24,480 | |||||||||||
Convertible Debt [Table Text Block] | ' | ||||||||||||||||
Date | Borrowing | Convertible | Share Price | Unamortized Beneficial | |||||||||||||
Amount | Shares | on | Conversion | ||||||||||||||
Borrowing | Feature | ||||||||||||||||
Date | |||||||||||||||||
7-Oct-13 | $ | 1,000 | 1,123,595 | $ | 0.95 | $ | 55 | ||||||||||
26-Nov-13 | 1,000 | 1,123,595 | 1.01 | 113 | |||||||||||||
21-Jan-14 | 1,000 | 1,123,595 | 1.39 | 508 | |||||||||||||
13-Mar-14 | 500 | 561,799 | 1.54 | 344 | |||||||||||||
$ | 3,500 | 3,932,584 | $ | 1,020 | |||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | ' | ||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Amortization of convertible debt discount | $ | (40 | ) | $ | - | $ | (66 | ) | $ | - | |||||||
Interest expense | (66 | ) | (44 | ) | (123 | ) | (85 | ) | |||||||||
$ | (106 | ) | $ | (44 | ) | $ | (189 | ) | $ | (85 | ) |
Note_6_StockBased_Awards_Table
Note 6 - Stock-Based Awards (Tables) | 6 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||
Number | Exercise | Weighted | Weighted | ||||||||||||||||||||
of Shares | Price Range | Average | Average | ||||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||
Outstanding at April 1, 2014 | 4,377,874 | $0.85 – $4.88 | $ | 1.78 | 6 | ||||||||||||||||||
Granted | 830,000 | 0.90 – 1.25 | 1.06 | ||||||||||||||||||||
Exercised | (25,000 | ) | 0.97 – 0.97 | 0.97 | |||||||||||||||||||
Canceled | (877,764 | ) | 0.95 – 4.30 | 2.4 | |||||||||||||||||||
Outstanding at September 30, 2014 | 4,305,110 | $0.85 – $4.88 | $ | 1.52 | 6.4 | ||||||||||||||||||
Vested and expected to vest at September 30, 2014 | 4,262,557 | $0.85 – $4.88 | $ | 1.53 | 6.4 | ||||||||||||||||||
Exercisable at September 30, 2014 | 3,260,194 | $0.85 – $4.88 | $ | 1.64 | 5.5 | ||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||
of Shares | Average | ||||||||||||||||||||||
Grant Price | |||||||||||||||||||||||
Nonvested at April 1, 2014 | 1,325,402 | $ | 1.06 | ||||||||||||||||||||
Granted | 473,605 | 1.08 | |||||||||||||||||||||
Vested | (91,450 | ) | 1.38 | ||||||||||||||||||||
Forfeited | (319,805 | ) | 1.05 | ||||||||||||||||||||
Nonvested at September 30, 2014 | 1,387,752 | $ | 1.05 | ||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 2 | % | 1.4 | % | 2 | % | 1.2 | % | |||||||||||||||
Expected life (in years) | 6.5 | 5.1 | 6.6 | 5.5 | |||||||||||||||||||
Expected volatility | 78 | % | 75 | % | 77 | % | 80 | % | |||||||||||||||
Expected dividend yield | -- | -- | -- | -- | |||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Cost of sales | $ | 22 | $ | 12 | $ | 38 | $ | 42 | |||||||||||||||
Selling, general and administrative expenses | 166 | (244 | ) | 289 | 265 | ||||||||||||||||||
Research and development expenses | 7 | 5 | 22 | 21 | |||||||||||||||||||
Total stock-based compensation expense | $ | 195 | $ | (227 | ) | $ | 349 | $ | 328 |
Note_7_Treasury_Stock_Tables
Note 7 - Treasury Stock (Tables) | 6 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||
Class of Treasury Stock [Table Text Block] | ' | ||||||||||||
SixMonths Ended | Number | Cost | Weighted | ||||||||||
of Shares | Average | ||||||||||||
Repurchased | Purchase | ||||||||||||
Price | |||||||||||||
30-Sep-14 | 6 | $ | 7 | $ | 1.22 | ||||||||
30-Sep-13 | 26 | $ | 28 | $ | 1.11 |
Note_8_Segment_Information_Tab
Note 8 - Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Three Months Ended September 30, 2014 | Medical | Industrial | Adjustments* | Consolidated | |||||||||||||
Net sales | $ | 3,267 | $ | 843 | $ | - | $ | 4,110 | |||||||||
Gross profit | 1,023 | 235 | - | 1,258 | |||||||||||||
Operating loss | (1,435 | ) | (6 | ) | - | (1,441 | ) | ||||||||||
Interest expense, net | (106 | ) | - | - | (106 | ) | |||||||||||
Depreciation and amortization | 151 | 1 | - | 152 | |||||||||||||
Stock-based compensation expense | 186 | 9 | - | 195 | |||||||||||||
Expenditures for fixed assets | (8 | ) | - | - | (8 | ) | |||||||||||
As of September 30, 2014 | |||||||||||||||||
Total assets | 10,542 | 1,865 | (2,358 | ) | 10,049 | ||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 3,399 | $ | 569 | $ | - | $ | 3,968 | |||||||||
Gross profit | 981 | 214 | - | 1,195 | |||||||||||||
Operating loss | (1,345 | ) | 62 | - | (1,283 | ) | |||||||||||
Interest expense, net | (44 | ) | - | - | (44 | ) | |||||||||||
Depreciation and amortization | 170 | 3 | - | 173 | |||||||||||||
Stock-based compensation expense | (221 | ) | (6 | ) | - | (227 | ) | ||||||||||
Expenditures for fixed assets | 46 | - | - | 46 | |||||||||||||
As of September 30, 2013 | |||||||||||||||||
Total assets | 11,240 | 1,333 | (1,840 | ) | 10,733 | ||||||||||||
Six Months Ended September 30, 2014 | Medical | Industrial | Adjustments* | Consolidated | |||||||||||||
Net sales | $ | 6,327 | $ | 1,535 | $ | - | $ | 7,862 | |||||||||
Gross profit | 1,921 | 486 | - | 2,407 | |||||||||||||
Operating loss | (3,273 | ) | (46 | ) | - | (3,319 | ) | ||||||||||
Interest expense, net | (189 | ) | - | - | (189 | ) | |||||||||||
Depreciation and amortization | 314 | 4 | - | 318 | |||||||||||||
Stock-based compensation expense | 328 | 21 | - | 349 | |||||||||||||
Expenditures for fixed assets | 17 | - | - | 17 | |||||||||||||
Six Months Ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 6,428 | $ | 1,192 | $ | - | $ | 7,620 | |||||||||
Gross profit | 1,774 | 501 | - | 2,275 | |||||||||||||
Operating loss | (3,732 | ) | 60 | - | (3,672 | ) | |||||||||||
Interest expense, net | (85 | ) | - | - | (85 | ) | |||||||||||
Depreciation and amortization | 355 | 7 | - | 362 | |||||||||||||
Stock-based compensation expense | 309 | 19 | - | 328 | |||||||||||||
Expenditures for fixed assets | 46 | - | - | 46 | |||||||||||||
As of September 30, | |||||||||||||||||
* Adjustments | 2014 | 2013 | |||||||||||||||
Intercompany eliminations | $ | (1,672 | ) | $ | (1,154 | ) | |||||||||||
Investment in subsidiaries | (686 | ) | (686 | ) | |||||||||||||
Total adjustments | $ | (2,358 | ) | $ | (1,840 | ) | |||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
As of September 30, | |||||||||||||||||
* Adjustments | 2014 | 2013 | |||||||||||||||
Intercompany eliminations | $ | (1,672 | ) | $ | (1,154 | ) | |||||||||||
Investment in subsidiaries | (686 | ) | (686 | ) | |||||||||||||
Total adjustments | $ | (2,358 | ) | $ | (1,840 | ) |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | 6 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 24, 2014 | Nov. 13, 2014 | Sep. 30, 2014 | Jun. 16, 2014 | 29-May-14 | Oct. 28, 2014 | Oct. 24, 2014 | |
Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | The 2014 Note [Member] | |||||
The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $1,395,000 | $455,000 | $1,237,000 | $788,000 | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt Maximum Amount Lender Agreed To Provide Financial Assistance | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 5,000,000 | ' | ' |
Convertible Debt, Noncurrent | 24,480,000 | ' | 22,414,000 | ' | ' | 3,000,000 | 2,000,000 | ' | ' | ' | ' |
Proceeds from Convertible Debt | 2,000,000 | 3,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | 1,000,000 |
Additional Financing, Debt or Equity Capital Raised, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Additional Financing, Repayment Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jan-16 | ' |
Additional Financing, Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | ' | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | ' |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies (Details) - Net Sales from Significant Customers by Segment (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Medical segment | ' | ' | ' | ' |
Stryker (in Dollars) | $4,110 | $3,968 | $7,862 | $7,620 |
Stryker [Member] | Medical [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | ' | ' | ' | ' |
Medical segment | ' | ' | ' | ' |
Segement, concentration risk | 11.00% | 35.00% | 13.00% | 36.00% |
Stryker [Member] | Medical [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ' | ' | ' | ' |
Medical segment | ' | ' | ' | ' |
Segement, concentration risk | 9.00% | 30.00% | 11.00% | 31.00% |
Stryker [Member] | Medical [Member] | Customer Concentration Risk [Member] | ' | ' | ' | ' |
Medical segment | ' | ' | ' | ' |
Stryker (in Dollars) | 362 | 1,201 | 840 | 2,346 |
Medical [Member] | ' | ' | ' | ' |
Medical segment | ' | ' | ' | ' |
Stryker (in Dollars) | $3,267 | $3,399 | $6,327 | $6,428 |
Note_1_Summary_of_Significant_4
Note 1 - Summary of Significant Accounting Policies (Details) - Accounts Receviable from Significant Customers (Stryker [Member], Medical [Member], Accounts Receivable [Member], Customer Concentration Risk [Member]) | 6 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stryker [Member] | Medical [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Percentage of total accounts receivable, net | 11.00% | 27.00% |
Note_2_Basic_and_Diluted_Net_L2
Note 2 - Basic and Diluted Net Loss per Common Share (Details) - Antidilutive Securities | 6 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 29,974,532 | 23,261,963 |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 22,401,050 | 16,666,666 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 4,305,110 | 4,506,775 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 1,880,620 | 1,880,620 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 1,387,752 | 207,902 |
Note_3_Inventories_Details_Inv
Note 3 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $3,151 | $3,456 |
Work in process | 578 | 329 |
Finished goods | 492 | 409 |
Inventories, net | $4,221 | $4,194 |
Note_5_Convetible_Debt_Related2
Note 5 - Convetible Debt - Related Party (Details) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 13, 2014 | Jan. 21, 2014 | Nov. 26, 2013 | Oct. 07, 2013 | 29-May-14 | Nov. 13, 2014 | Sep. 30, 2014 | Jun. 16, 2014 | Sep. 30, 2011 | Oct. 28, 2014 | Sep. 30, 2014 | Sep. 25, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 19, 2012 | Jul. 25, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | The 2013 Note [Member] | The 2013 Note [Member] | The 2013 Note [Member] | Replacement Note [Member] | Replacement Note [Member] | Replacement Note [Member] | The Original Agreement [Member] | The Original Agreement [Member] | Convertible Debt [Member] | |||||||
The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | Replacement Note [Member] | Subsequent Event [Member] | Convertible Debt [Member] | Board of Directors Chairman [Member] | ||||||||||||||
Note 5 - Convetible Debt - Related Party (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt Maximum Amount Lender Agreed To Provide Financial Assistance | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Rate | ' | ' | ' | ' | ' | ' | 1.91% | ' | ' | ' | ' | ' | ' | 1.66% | ' | 0.84% | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | $1.54 | $1.39 | $1.01 | $0.95 | $1.11 | ' | ' | ' | ' | ' | ' | $0.89 | ' | $1.20 | ' | ' | ' | ' | ' |
Convertible Debt, Noncurrent | 24,480,000 | 22,414,000 | ' | ' | ' | ' | ' | 3,000,000 | 2,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' |
Notes Payable, Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible Debt | 3,500,000 | ' | 500,000 | 1,000,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,020,000 | ' | ' | ' | ' | ' | ' | ' | 1,020,000 |
Debt Instrument, Convertible, Remaining Discount Amortization Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Related Parties, Additional Borrowings Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,880,620 | ' | ' |
Fair Value Assumptions, Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.86 | ' |
Accrued Liabilities, Current | 880,000 | 918,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 376,000 | ' | ' | ' | ' | ' |
Additional Financing, Repayment Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jan-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Financing, Debt or Equity Capital Raised, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Financing, Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_5_Convetible_Debt_Related3
Note 5 - Convetible Debt - Related Party (Details) - Convertible Debt-Related Party (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 19, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Replacement Note [Member] | Replacement Note [Member] | Replacement Note [Member] | The 2013 Note [Member] | The 2013 Note [Member] | The 2013 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | Gross Amount [Member] | Convertible Debt [Member] | Net Amount [Member] | ||
Gross Amount [Member] | Net Amount [Member] | Gross Amount [Member] | Convertible Debt [Member] | Net Amount [Member] | Gross Amount [Member] | Net Amount [Member] | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount Outstanding | $24,480 | $22,414 | $20,000 | $20,000 | $20,000 | $3,500 | ' | $2,480 | $2,000 | $2,000 | $25,500 | ' | $24,480 |
Unamortized Debt Discount | ' | ' | ' | ' | ' | ' | ($1,020) | ' | ' | ' | ' | ($1,020) | ' |
Note_5_Convetible_Debt_Related4
Note 5 - Convetible Debt - Related Party (Details) - Beneficial Conversion Feature Amounts (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 18 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 13, 2014 | Jan. 21, 2014 | Oct. 07, 2013 | Nov. 26, 2013 | Sep. 30, 2014 |
Beneficial Conversion Feature Amounts [Abstract] | ' | ' | ' | ' | ' |
Borrowing Amount | $500 | $1,000 | $1,000 | $1,000 | $3,500 |
Convertible Shares | 561,799 | 1,123,595 | 1,123,595 | 1,123,595 | 3,932,584 |
Share Price (in Dollars per share) | $1.54 | $1.39 | $0.95 | $1.01 | ' |
Gross Beneficial Conversion Feature | $344 | $508 | $55 | $113 | $1,020 |
Note_5_Convetible_Debt_Related5
Note 5 - Convetible Debt - Related Party (Details) - Debt Cost Expense and Interest Expense Related to Outstanding Borrowings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Note 5 - Convetible Debt - Related Party (Details) - Debt Cost Expense and Interest Expense Related to Outstanding Borrowings [Line Items] | ' | ' | ' | ' |
Amortization of convertible debt discount | ($40) | ' | ($66) | ' |
-106 | -44 | -189 | -85 | |
Related Party [Member] | ' | ' | ' | ' |
Note 5 - Convetible Debt - Related Party (Details) - Debt Cost Expense and Interest Expense Related to Outstanding Borrowings [Line Items] | ' | ' | ' | ' |
Interest expense | ($66) | ($44) | ($123) | ($85) |
Note_6_StockBased_Awards_Detai
Note 6 - Stock-Based Awards (Details) (USD $) | 6 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 26, 2014 | Jul. 25, 2014 | Aug. 15, 2003 | Sep. 30, 2014 | |
Restricted Stock [Member] | 2000 Stock Incentive Plan [Member] | 2007 Stock Incentive Plan [Member] | 2007 Stock Incentive Plan [Member] | 2003 Director Option Plan [Member] | 2003 Director Option Plan [Member] | |||
Note 6 - Stock-Based Awards (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | 4,500,000 | 7,000,000 | 5,000,000 | ' | 450,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | ' | ' | ' | ' | ' | ' | 10,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 830,000 | ' | ' | ' | ' | ' | 10,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '10 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | '4 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.73 | $0.68 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | $12,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value (in Dollars) | 12,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 25,000 | 0 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 700,000 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '3 years 73 days | ' | '3 years | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | ' | ' | $500,000 | ' | ' | ' | ' | ' |
Note_6_StockBased_Awards_Detai1
Note 6 - Stock-Based Awards (Details) - Stock Options Activity (USD $) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Note 6 - Stock-Based Awards (Details) - Stock Options Activity [Line Items] | ' | ' | ' |
Outstanding, Number of Shares (in Shares) | 4,377,874 | 4,305,110 | ' |
Outstanding, Exercise Price | $1.78 | $1.52 | ' |
Outstanding, Weighted Average Remaining Contractual Life | '6 years | '6 years 146 days | ' |
Vested and expected to vest at September 30, 2014 (in Shares) | ' | 4,262,557 | ' |
Vested and expected to vest at September 30, 2014 | ' | $1.53 | ' |
Vested and expected to vest at September 30, 2014 | ' | '6 years 146 days | ' |
Exercisable at September 30, 2014 (in Shares) | ' | 3,260,194 | ' |
Exercisable at September 30, 2014 | ' | $1.64 | ' |
Exercisable at September 30, 2014 | ' | '5 years 6 months | ' |
Granted (in Shares) | ' | 830,000 | ' |
Granted | ' | $1.06 | ' |
Exercised (in Shares) | ' | -25,000 | 0 |
Exercised | ' | $0.97 | ' |
Canceled (in Shares) | ' | -877,764 | ' |
Canceled | ' | $2.40 | ' |
Minimum [Member] | ' | ' | ' |
Note 6 - Stock-Based Awards (Details) - Stock Options Activity [Line Items] | ' | ' | ' |
Outstanding, Exercise Price | $0.85 | $0.85 | ' |
Vested and expected to vest at September 30, 2014 | ' | $0.85 | ' |
Exercisable at September 30, 2014 | ' | $0.85 | ' |
Granted | ' | $0.90 | ' |
Exercised | ' | $0.97 | ' |
Canceled | ' | $0.95 | ' |
Maximum [Member] | ' | ' | ' |
Note 6 - Stock-Based Awards (Details) - Stock Options Activity [Line Items] | ' | ' | ' |
Outstanding, Exercise Price | $4.88 | $4.88 | ' |
Vested and expected to vest at September 30, 2014 | ' | $4.88 | ' |
Exercisable at September 30, 2014 | ' | $4.88 | ' |
Granted | ' | $1.25 | ' |
Exercised | ' | $0.97 | ' |
Canceled | ' | $4.30 | ' |
Note_6_StockBased_Awards_Detai2
Note 6 - Stock-Based Awards (Details) - Restricted Stock Activity (Restricted Stock [Member], USD $) | 6 Months Ended |
Sep. 30, 2014 | |
Restricted Stock [Member] | ' |
Note 6 - Stock-Based Awards (Details) - Restricted Stock Activity [Line Items] | ' |
Nonvested - Number of Shares | 1,325,402 |
Nonvested - Weighted Average Grant Price | $1.06 |
Granted | 473,605 |
Granted | $1.08 |
Vested | -91,450 |
Vested | $1.38 |
Forfeited | -319,805 |
Forfeited | $1.05 |
Nonvested - Number of Shares | 1,387,752 |
Nonvested - Weighted Average Grant Price | $1.05 |
Note_6_StockBased_Awards_Detai3
Note 6 - Stock-Based Awards (Details) - Black-Scholes Valuation Assumptions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Black-Scholes Valuation Assumptions [Abstract] | ' | ' | ' | ' |
Risk-free interest rate | 2.00% | 1.40% | 2.00% | 1.20% |
Expected life (in years) | '6 years 6 months | '5 years 36 days | '6 years 219 days | '5 years 6 months |
Expected volatility | 78.00% | 75.00% | 77.00% | 80.00% |
Note_6_StockBased_Awards_Detai4
Note 6 - Stock-Based Awards (Details) - Stock-based Compensation Expense (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Allocated stock-based compensation expense | $195 | ($227) | $349 | $328 |
Cost of Sales [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Allocated stock-based compensation expense | 22 | 12 | 38 | 42 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Allocated stock-based compensation expense | 166 | -244 | 289 | 265 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Allocated stock-based compensation expense | $7 | $5 | $22 | $21 |
Note_7_Treasury_Stock_Details_
Note 7 - Treasury Stock (Details) - Treasury Stock Activity (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Treasury Stock Activity [Abstract] | ' | ' |
Number of Shares Repurchased | 6 | 26 |
Cost | $7 | $28 |
Weighted Average Purchase Price | $1.22 | $1.11 |
Note_8_Segment_Information_Det
Note 8 - Segment Information (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_8_Segment_Information_Det1
Note 8 - Segment Information (Details) - Key Financial Highlights by Reportable Segments (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Net sales | $4,110 | $3,968 | $7,862 | $7,620 | ' | ||||
Gross profit | 1,258 | 1,195 | 2,407 | 2,275 | ' | ||||
Operating loss | -1,441 | -1,283 | -3,319 | -3,672 | ' | ||||
Interest expense, net | -106 | -44 | -189 | -85 | ' | ||||
Depreciation and amortization | 152 | 173 | 318 | 362 | ' | ||||
Stock-based compensation expense | 195 | -227 | 349 | 328 | ' | ||||
Expenditures for fixed assets | -8 | 46 | 17 | 46 | ' | ||||
As of September 30, 2014 | ' | ' | ' | ' | ' | ||||
Total assets | 10,049 | 10,733 | 10,049 | 10,733 | 10,833 | ||||
Medical [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Net sales | 3,267 | 3,399 | 6,327 | 6,428 | ' | ||||
Gross profit | 1,023 | 981 | 1,921 | 1,774 | ' | ||||
Operating loss | -1,435 | -1,345 | -3,273 | -3,732 | ' | ||||
Interest expense, net | -106 | -44 | -189 | -85 | ' | ||||
Depreciation and amortization | 151 | 170 | 314 | 355 | ' | ||||
Stock-based compensation expense | 186 | -221 | 328 | 309 | ' | ||||
Expenditures for fixed assets | -8 | 46 | 17 | 46 | ' | ||||
As of September 30, 2014 | ' | ' | ' | ' | ' | ||||
Total assets | 10,542 | 11,240 | 10,542 | 11,240 | ' | ||||
Industrial [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Net sales | 843 | 569 | 1,535 | 1,192 | ' | ||||
Gross profit | 235 | 214 | 486 | 501 | ' | ||||
Operating loss | -6 | 62 | -46 | 60 | ' | ||||
Depreciation and amortization | 1 | 3 | 4 | 7 | ' | ||||
Stock-based compensation expense | 9 | -6 | 21 | 19 | ' | ||||
As of September 30, 2014 | ' | ' | ' | ' | ' | ||||
Total assets | 1,865 | 1,333 | 1,865 | 1,333 | ' | ||||
Adjustments [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Net sales | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Gross profit | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Operating loss | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Interest expense, net | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Depreciation and amortization | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Stock-based compensation expense | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
Expenditures for fixed assets | ' | [1] | ' | [1] | ' | [1] | ' | [1] | ' |
As of September 30, 2014 | ' | ' | ' | ' | ' | ||||
Total assets | ($2,358) | [1] | ($1,840) | [1] | ($2,358) | [1] | ($1,840) | [1] | ' |
[1] | Adjustments |
Note_8_Segment_Information_Det2
Note 8 - Segment Information (Details) - Reportable Segment Adjustments (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Reportable Segment Adjustments [Abstract] | ' | ' |
Intercompany eliminations | ($1,672) | ($1,154) |
Investment in subsidiaries | -686 | -686 |
Total adjustments | ($2,358) | ($1,840) |
Note_9_Subsequent_Events_Detai
Note 9 - Subsequent Events (Details) (USD $) | 6 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Oct. 24, 2014 | Nov. 13, 2014 | Sep. 30, 2014 |
Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | ||||
The 2014 Note [Member] | The 2014 Note [Member] | The 2014 Note [Member] | ||||
Note 9 - Subsequent Events (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from Convertible Debt | $2,000 | $3,000 | ' | $1,000 | ' | ' |
Convertible Debt, Noncurrent | $24,480 | ' | $22,414 | ' | $3,000 | $2,000 |