Encision (ECIA) 10-K 14 Jun 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Mar. 31, 2016	May 31, 2016	Sep. 30, 2015
Document and Entity Information
Entity Registrant Name	ENCISION INC
Entity Central Index Key	930,775
Document Type	10-K
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 2,130,467
Entity Common Stock, Shares Outstanding		10,673,225
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 292,840	$ 258,656
Restricted cash	25,000	0
Accounts receivable, net of allowance for doubtful accounts of $9,000 at March 31, 2016 and $11,500 at March 31, 2015	839,850	965,355
Inventories, net of reserve for obsolescence of $410,000 at March 31, 2016 and $240,000 at March 31, 2015	1,730,747	2,337,654
Prepaid expenses	91,989	109,678
Total current assets	2,980,426	3,671,343
Equipment, at cost:
Furniture, fixtures and equipment	3,950,710	3,917,386
Accumulated depreciation	(3,389,533)	(3,140,453)
Equipment, net	561,177	776,933
Patents, net of accumulated amortization of $179,317 at March 31, 2016 and $153,494 at March 31, 2015	252,889	257,356
Other assets	15,926	20,135
TOTAL ASSETS	3,810,418	4,725,767
Current liabilities:
Accounts payable	355,890	675,411
Accrued compensation	246,203	262,195
Other accrued liabilities	257,506	324,926
Line of credit	387,491	0
Deferred rent	30,384	30,384
Total current liabilities	1,277,474	1,292,916
Long-term liabilities
Line of credit	0	64,000
Deferred rent	70,896	101,280
Total liabilities	1,348,370	1,458,196
Shareholders' equity:
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding	0	0
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 10,673,225 issued and outstanding at March 31, 2016 and 2015	23,682,365	23,607,688
Accumulated (deficit)	(21,220,317)	(20,340,117)
Total shareholders' equity	2,462,048	3,267,571
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,810,418	$ 4,725,767

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 9,000	$ 11,500
Inventories, reserve for obsolescence (in dollars)	410,000	240,000
Accumulated amortization	$ 179,317	$ 153,494
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock and additional paid-in capital, shares authorized	100,000,000	100,000,000
Common stock and additional paid-in capital, shares issued	10,673,225	10,673,225
Common stock and additional paid-in capital, shares outstanding	10,673,225	10,673,225

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
NET REVENUE	$ 9,336,078	$ 9,671,481
COST OF REVENUE	4,759,067	4,977,258
GROSS PROFIT	4,577,011	4,694,223
OPERATING EXPENSES:
Sales and marketing	2,558,785	2,921,295
General and administrative	1,476,803	1,615,006
Research and development	1,249,787	1,342,411
Total operating expenses	5,285,375	5,878,712
OPERATING INCOME (LOSS)	(708,364)	(1,184,489)
Interest expense, net	(46,903)	(7,381)
Other expense, net	(124,933)	(190,876)
Interest and other expense, net	(171,836)	(198,257)
LOSS BEFORE PROVISION FOR INCOME TAXES	(880,200)	(1,382,746)
Provision for income taxes	0	0
NET LOSS	$ (880,200)	$ (1,382,746)
Net loss per share—basic and diluted	$ (0.08)	$ (0.13)
Weighted average shares—basic and diluted	10,673,225	10,673,225

Statements of Shareholders_ Equ

Statements of Shareholders’ Equity - USD ($)	Common Stock and Additional Paid-in Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Mar. 31, 2014	10,673,225
Beginning Balance, Amount at Mar. 31, 2014	$ 23,545,080	$ (18,957,371)	$ 4,587,709
Net loss		(1,382,746)
Compensation expense related to equities	$ 62,608		$ 62,608
Ending Balance, Shares at Mar. 31, 2015	10,673,225		3,267,571
Ending Balance, Amount at Mar. 31, 2015	$ 23,607,688	(20,430,117)	$ 3,267,571
Net loss		(880,200)	(880,200)
Compensation expense related to equities	$ 74,677		74,677
Ending Balance, Shares at Mar. 31, 2016	10,673,225
Ending Balance, Amount at Mar. 31, 2016	$ 23,682,365	$ (21,220,317)	$ 2,462,048

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (880,200)	$ (1,382,746)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	318,692	382,058
Stock-based compensation expense related to stock options	74,677	62,608
Provision for doubtful accounts, net change	(2,500)	3,500
Provision for inventory obsolescence, net change	170,000	136,501
Change in operating assets and liabilities:
Accounts receivable	128,005	(105,635)
Inventories	436,907	(249,927)
Prepaid expenses and other assets	21,898	(50,299)
Accounts payable	(319,521)	9,252
Accrued compensation and other accrued liabilities	(113,796)	(238,083)
Net cash used in operating activities	(165,838)	(1,432,771)
Cash flows from investing activities:
Acquisition of property and equipment	(77,113)	(29,695)
Patent costs	(21,356)	(32,458)
Net cash used in investing activities	(98,469)	(62,153)
Cash flows from financing activities:
Borrowings from credit facility	323,491	64,000
Change in restricted cash	(25,000)	0
Net cash provided by financing activities	298,491	64,000
Net increase (decrease) in cash and cash equivalents	34,184	(1,430,924)
Cash and cash equivalents, beginning of period	258,656	1,689,580
Cash and cash equivalents, end of period	292,840	258,656
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$ 14,835	$ 1,250

Description of Business

Description of Business	12 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to patients undergoing minimally-invasive surgery. We believe that our patented AEM ® We have an accumulated deficit of $21,220,317 at March 31, 2016. Operating funds have been provided primarily by issuances of our common stock and warrants, the exercise of stock options to purchase our common stock, and, in recent years, by operating profits. Our liquidity has diminished because of prior years’ operating losses, and we may be required to seek additional capital in the future. Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals in the United States.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Use of Estimates in the Preparation of Financial Statements. Cash and Cash Equivalents. Fair Value of Financial Instruments. Concentration of Credit Risk. We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We charge interest on past due accounts on a case-by-case basis. A summary of the activity in our allowance for doubtful accounts is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $11,500 $ 8,000 Provision for estimated (recoveries) losses (1,338) 9,582 Write-off of uncollectible accounts (1,162) (6,082) Balance, end of year $9,000 $11,500 The net accounts receivable balance at March 31, 2016 of $839,850 included no more than 5% from any one customer. The net accounts receivable balance at March 31, 2015 of $965,355 included no more than 5% from any one customer. Warranty Accrual. We provide for the estimated cost of product warranties at the time sales are recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers, our warranty obligation is based upon historical experience and is also affected by product failure rates and material usage in correcting a product failure. Should actual product failure rates or material usage costs differ from our estimates, revisions to the estimated warranty liability would be required. A summary of our warranty claims activity, included in other accrued liabilities, is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 20,000 $ 35,000 Provision for estimated warranty claims 1,194 (15,000) Claims made (1,194) — Balance, end of year $ 20,000 $ 20,000 Inventories. We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. March 31, 2016 March 31, 2015 Raw materials $1,469,630 $1,547,733 Finished goods 671,117 1,029,921 Total gross inventories 2,140,747 2,577,654 Less reserve for obsolescence (410,000) (240,000) Total net inventories $1,730,747 $2,337,654 A summary of the activity in our inventory reserve for obsolescence is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 240,000 $ 560,000 Provision for estimated obsolescence 221,427 135,902 Write-off of obsolete inventory (51,427) (455,902) Balance, end of year $ 410,000 $ 240,000 Property and Equipment. Long-Lived Assets. Patents. March 31, 2016 March 31, 2015 Patents issued $280,669 $280,669 Accumulated amortization (165,167) (153,494) Patents issued, net of accumulated amortization 115,502 127,175 Patent applications 151,537 130,181 Accumulated amortization (14,150) — Patent applications, net of accumulated amortization 137,387 130,181 Total net patents and patent applications $252,889 $257,356 The expected annual amortization expense related to patents and patent applications as of March 31, 2016, for the next five fiscal years, is as follows: Fiscal Year Amount 2017 $ 25,823 2018 25,823 2019 25,823 2020 25,823 2021 and following 149,597 Total $252,889 Other Accrued Liabilities. March 31, 2016 March 31, 2015 Warranty $ 20,000 $ 20,000 Sales commissions 83,445 82,132 Lease normalization 31,365 22,655 Sales and use tax 17,453 21,124 Marketing fees 10,363 8,133 Legal and audit fees 40,454 38,493 Payroll taxes 21,823 24,120 Medical device tax –– 7,651 Employment agreement — 87,282 Insurance 20,240 — Miscellaneous 12,363 13,336 Total other accrued liabilities $257,506 $324,926 Income Taxes. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The cumulative effect of adopting ASC 740 on April 1, 2007 has been recorded net in deferred tax assets, which resulted in no ASC 740 liability on the balance sheet. The total amount of unrecognized tax benefits as of the date of adoption was zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit the Company’s tax returns from fiscal year ended March 31, 1999 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statements of operations. There have been no income tax related interest or penalties assessed or recorded. Because the Company has provided a full valuation allowance on all of its deferred tax assets, the adoption of ASC 740 had no impact on our effective tax rate. Revenue Recognition. Sales Taxes. Research and Development Expenses Advertising Costs. Medical Device Tax Effective January 1, 2016, the excise tax was suspended for two years. Stock-Based Compensation. ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized in our statements of operations for fiscal years 2016 and 2015 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2016, based on the grant date fair value. Compensation expense for all share-based payment is recognized using the straight-line, single-option method. As stock-based compensation expense recognized in the accompanying statements of operations for fiscal years 2016 and 2015 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We used the Black-Scholes option-pricing model (“Black-Scholes model”) to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for fiscal years 2016 and 2015 was $74,677 and $62,608, respectively, which consisted of stock-based compensation expense related to director and employee stock options. Stock-based compensation expense related to director and employee stock options under ASC 718 for fiscal years 2016 and 2015 was allocated as follows: Years Ended March 31, 2016 March 31, 2015 Cost of sales $ 2,287 $ 1,965 Sales and marketing 11,822 11,076 General and administrative 56,381 46,522 Research and development 4,187 3,045 Stock-based compensation expense $ 74,677 $ 62,608 Segment Reporting. Basic and Diluted Income per Common Share. The following table presents the calculation of basic and diluted net income (loss) per share: Years Ended March 31, 2016 March 31, 2015 Net loss $ (880,200) $(1,382,746) Weighted-average shares — basic 10,673,225 10,673,225 Effect of dilutive potential common shares — — Weighted-average shares — diluted 10,673,225 10,673,225 Net loss per share — basic and diluted $ (0.08) $ (0.13) Antidilutive equity units 700,924 599,924 Recent Accounting Pronouncements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning in its third quarter of 2020 and early adoption is permitted. The Company is currently evaluating the timing of its adoption and the impact of adopting the new lease standard on its consolidated financial statements.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Stock Option Plans. Under ASC 718, the value of each employee stock option was estimated on the date of grant using the Black-Scholes model for the purpose of financial information in accordance with ASC 718. The use of a Black-Scholes model requires the use of actual employee exercise behavior data and the use of a number of assumptions including expected volatility, risk-free interest rate and expected dividends. Employee stock options for 139,000 and 95,000 shares of stock were granted during fiscal years 2016 and 2015, respectively. RSUs for 20,000 and 24,924 shares of stock were granted during fiscal years 2016 and 2015, respectively. As of March 31, 2016, $218,000 of total unrecognized compensation costs related to nonvested stock is expected to be recognized over a period of five years. The assumptions for employee stock options are summarized as follows: Years Ended March 31, 2016 March 31, 2015 Risk-free interest rate 1.6% 1.4% to 1.7% Expected life (in years) 5.0 5.0 Expected volatility 72% to 75% 74% to 75% Expected dividend 0% 0% Cumulative compensation cost recognized in net income or loss with respect to options that are forfeited prior to vesting is adjusted as a reduction of compensation expense in the period of forfeiture. The volatility of the stock is based on the historical volatility for the period that approximates the expected lives of the options being valued. Fair value computations are highly sensitive to the volatility factor; the greater the volatility, the higher the computed fair value of options granted. The total fair value of options granted was computed to be approximately $58,000 and $51,000, for the fiscal years ended March 31, 2016 and 2015, respectively. For disclosure purposes, these amounts are amortized ratably over the vesting periods of the options. Effects of stock-based compensation, net of the effect of forfeitures, totaled $74,677 and $62,608 for fiscal years 2016 and 2015, respectively. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the use of assumptions, including the expected stock price volatility. Because our employee stock options have characteristics significantly different than those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options. A summary of our stock option activity and related information for equity compensation plans approved by security holders for each of the fiscal years ended March 31, 2016 and 2015 is as follows: STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2014 281,000 $ 1.06 Granted 75,000 0.84 Forfeited/expired (26,000) 1.73 BALANCE AT MARCH 31, 2015 330,000 $ 0.96 Granted 139,000 0.57 Forfeited/expired (58,000) 0.83 BALANCE AT MARCH 31, 2016 411,000 $ 0.85 A summary of our stock option activity and related information for equity compensation plans not approved by security holders for the fiscal year ended March 31, 2016 is as follows: STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2014 250,000 $ 0.97 Granted 20,000 1.00 Forfeited/expired (25,000) 1.12 BALANCE AT MARCH 31, 2015 245,000 $0.96 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2016 245,000 $ 0.96 The following table summarizes information about employee stock options outstanding and exercisable at March 31, 2016: STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price per Share Number Exercisable Weighted-Average Exercise Price per Share $0.50 - $0.94 426,000 2.0 $ 0.75 133,061 $ 0.83 $1.00 - $1.09 110,000 2.3 $ 1.02 56,781 $ 1.03 $1.15 - $1.50 120,000 2.1 $ 1.26 85,670 $ 1.28 656,000 2.1 $ 0.89 275,512 $ 1.01 A summary of our RSU activity and related information for equity compensation plans approved by security holders for the fiscal year ended March 31, 2016 is as follows: RSUs OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2015 24,924 $ 0.80 Granted 20,000 0.50 BALANCE AT MARCH 31, 2016 44,924 $ 0.67 The 656,000 options outstanding as of March 31, 2016 are nonqualified stock options. The exercise price of all options granted through March 31, 2016 has been equal to or greater than the fair market value, as determined by our Board of Directors or based upon publicly quoted market values of our common stock on the date of the grant. As of March 31, 2016, 600,076 equity units for our common stock remain available for grant under the Plan.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Our noncancelable lease agreement extends through July 31, 2019 for 28,696 square feet of space for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease includes $172,176 of leasehold improvements granted by the landlord. The $172,176 was recorded on our balance sheets as leasehold improvements and deferred rent. The leasehold improvements are being amortized over the lesser of the lease term or the assets life and the deferred rent is being amortized against rent expense over the lease term. The minimum future lease payment, by fiscal year, as of March 31, 2016 is as follows: Fiscal Year Amount 2017 276,732 2018 285,034 2019 293,585 2020 99,800 Total $955,151 In March 2016, we entered into a loan and security agreement with Crestmark Bank. The loan is due on demand and has no financial covenants. Under the agreement, we were provided with a line of credit that is not to exceed the lesser of $1,000,000 or 85% of eligible accounts receivable. The interest rate is prime rate plus 2%, with a floor of 5.5%, plus a monthly maintenance fee of 0.4%, based on the average monthly loan balance. Interest is charged on a minimum loan balance of $500,000, a loan fee of 1% annually, and an exit fee of 3%, 2% and 1% during years one, two and three, respectively. As of March 31, 2016, we had $387,491 of borrowings from the credit facility and had an additional approximately $238,000 available to borrow. We are subject to regulation by the United States Food and Drug Administration (“FDA”). The FDA provides regulations governing the manufacture and sale of our products and regularly inspects us and other manufacturers to determine our and their compliance with these regulations. As of March 31, 2016, we believe we were in substantial compliance with all known regulations. FDA inspections are conducted periodically at the discretion of the FDA. We were last inspected in December 2012 and were notified of five observations from that inspection, none of which we believe to be material. Our obligation with respect to employee severance benefits is minimized by the “at will” nature of the employee relationships. Our total obligation with respect to contingent severance benefit obligations was none and $87,282 as of March 31, 2016 and 2015, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	We account for income taxes under ASC 740, which requires the use of the liability method. ASC 740 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. Income tax provision (benefit) for income taxes is summarized below: Years Ended March 31, 2016 March 31, 2015 Current: Federal $ –– $ –– State –– –– Total current –– –– Deferred: Federal (291,000) (461,000) State (30,000) (48,000) Total deferred (321,000) (509,000) Valuation allowance 321,000 509,000 Total $ –– $ –– The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consists of the following: Years Ended March 31, 2016 March 31, 2015 Federal statutory rate $(299,000) $(470,000) Effect of: State taxes, net of federal tax benefit (31,000) (48,000) Other 15,000 12,000 Valuation allowance 315,000 506,000 Total $ –– $ –– The components of the deferred tax asset are as follows: Years Ended March 31, 2016 March 31, 2015 Credits and net operating loss carryforwards $4,190,000 $3,936,000 Other 225,000 158,000 Gross deferred tax assets 4,415,000 4,094,000 Valuation allowance (4,415,000) (4,094,000) Total deferred tax assets $ –– $ –– We believe that based on all available evidence, it is more likely than not that the deferred tax assets will not be fully realized. Accordingly, a valuation allowance has been recorded against the deferred tax asset. As of March 31, 2016, we had approximately $11.1 million of net operating loss carryovers for tax purposes. Additionally, we have approximately $233,000 of research and development tax credits available to offset future federal income taxes. The net operating loss and credit carryovers begin to expire in the fiscal year ended March 31, 2019. In fiscal years ended after March 31, 2019, net operating losses expire at various dates through March 31, 2036. Our net operating loss carryovers at March 31, 2016 include $582,000 in income tax deductions related to stock options which will be tax effected and the benefit will be reflected as a credit to additional paid-in capital when realized. As such, these deductions are not reflected in our deferred tax assets. The Internal Revenue Code contains provisions, which may limit the net operating loss carryforwards available to be used in any given year if certain events occur, including significant changes in ownership interests.

Major Customers_Suppliers

Major Customers/Suppliers	12 Months Ended
	Mar. 31, 2016
Major Customers/Suppliers
Major Customers/Suppliers	We depend on sales that are generated from hospitals’ ongoing usage of AEM surgical instruments. In fiscal year 2016, we generated sales from over 300 hospitals that have changed to AEM products, but no hospital customer contributed more than 4% to the total sales. We have a relationship with New Deantronics, Inc., who accounted for approximately 11% of our purchases in fiscal year 2016.

Defined Contribution Employee B

Defined Contribution Employee Benefit Plan	12 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Defined Contribution Employee Benefit Plan	We have adopted a 401(k) Profit Sharing Plan which covers all full-time employees who are age eighteen or older. Participants may defer up to 20% of their gross pay up to a maximum limit determined by law. Participants are immediately vested in their contributions. We may make discretionary contributions based on corporate financial results for the fiscal year. To date, we have not made contributions to the 401(k) Profit Sharing Plan. Vesting in a contribution account (our contribution) is based on years of service, with a participant fully vested after five years of credited service.

Related Party Transaction

Related Party Transaction	12 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transaction	We paid consulting fees of $85,504 and $84,733 to an entity owned by one of our directors in fiscal years 2016 and 2015, respectively. We paid consulting fees of none and $4,000 to an entity owned by another director, in fiscal years 2016 and 2015, respectively.

Subsequent Events

Subsequent Events	12 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Management evaluated all activity of us and concluded that, as of the date the financial statements were issued, no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates in the Preparation of Financial Statements	The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expense during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	For purposes of reporting cash flows, we consider all cash and highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash is cash that was deposited to obtain a letter of credit for our importing and exporting activities.
Fair Value of Financial Instruments	Our financial instruments consist of cash and cash equivalents and short-term trade receivables, payables and line of credit. The carrying values of cash and cash equivalents, short-term receivables, payables and line of credit approximate their fair value due to their short maturities.
Concentration of Credit Risk	We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We charge interest on past due accounts on a case-by-case basis. A summary of the activity in our allowance for doubtful accounts is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $11,500 $ 8,000 Provision for estimated (recoveries) losses (1,338) 9,582 Write-off of uncollectible accounts (1,162) (6,082) Balance, end of year $9,000 $11,500 The net accounts receivable balance at March 31, 2016 of $839,850 included no more than 5% from any one customer. The net accounts receivable balance at March 31, 2015 of $965,355 included no more than 5% from any one customer. Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash and cash equivalents, accounts receivable and accounts payable. The carrying value of all financial instruments approximates fair value. The amount of cash on deposit with financial institutions occasionally exceeds the $250,000 federally insured limit at March 31, 2016. However, we believe that cash on deposit that exceeds $250,000 in the financial institutions is financially sound and the risk of loss is minimal.
Warranty Accrual	We provide for the estimated cost of product warranties at the time sales are recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers, our warranty obligation is based upon historical experience and is also affected by product failure rates and material usage incurred in correcting a product failure. Should actual product failure rates or material usage costs differ from our estimates, revisions to the estimated warranty liability would be required. A summary of our warranty claims activity, included in other accrued liabilities, is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 20,000 $ 35,000 Provision for estimated warranty claims 1,194 (15,000) Claims made (1,194) — Balance, end of year $ 20,000 $ 20,000
Inventories	We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. March 31, 2016 March 31, 2015 Raw materials $1,469,630 $1,547,733 Finished goods 671,117 1,029,921 Total gross inventories 2,140,747 2,577,654 Less reserve for obsolescence (410,000) (240,000) Total net inventories $1,730,747 $2,337,654 A summary of the activity in our inventory reserve for obsolescence is as follows: Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 240,000 $ 560,000 Provision for estimated obsolescence 221,427 135,902 Write-off of obsolete inventory (51,427) (455,902) Balance, end of year $ 410,000 $ 240,000
Property and Equipment	Property and equipment are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally three to seven years. We use the straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred and major additions, replacements and improvements are capitalized. Depreciation expense for the years ended March 31, 2016 and 2015 was $292,869 and $357,985, respectively.
Long-Lived Assets	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A long-lived asset is considered impaired when estimated future cash flows related to the asset, undiscounted and without interest, are insufficient to recover the carrying amount of the asset. If deemed impaired, the long-lived asset is reduced to its estimated fair value. Long-lived assets to be disposed of are reported at the lower of their carrying amount or estimated fair value less cost to sell.
Patents	March 31, 2016 March 31, 2015 Patents issued $280,669 $280,669 Accumulated amortization (165,167) (153,494) Patents issued, net of accumulated amortization 115,502 127,175 Patent applications 151,537 130,181 Accumulated amortization (14,150) — Patent applications, net of accumulated amortization 137,387 130,181 Total net patents and patent applications $252,889 $257,356 The expected annual amortization expense related to patents and patent applications as of March 31, 2016, for the next five fiscal years, is as follows: Fiscal Year Amount 2017 $ 25,823 2018 25,823 2019 25,823 2020 25,823 2021 and following 149,597 Total $252,889
Other Accrued Liabilities	At March 31, 2016 and 2015, other accrued liabilities consisted of the following: March 31, 2016 March 31, 2015 Warranty $ 20,000 $ 20,000 Sales commissions 83,445 82,132 Lease normalization 31,365 22,655 Sales and use tax 17,453 21,124 Marketing fees 10,363 8,133 Legal and audit fees 40,454 38,493 Payroll taxes 21,823 24,120 Medical device tax –– 7,651 Employment agreement — 87,282 Insurance 20,240 — Miscellaneous 12,363 13,336 Total other accrued liabilities $257,506 $324,926
Income Taxes	We account for income taxes under the provisions of ASC Topic 740, “Accounting for Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. ASC 740 also requires recognition of deferred tax assets for the expected future tax effects of all deductible temporary differences, loss carryforwards and tax credit carryforwards. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits which, more likely than not based on current circumstances, are not expected to be realized. Should we achieve sufficient, sustained income in the future, we may conclude that some or all of the valuation allowance should be reversed (Note 5). ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The cumulative effect of adopting ASC 740 on April 1, 2007 has been recorded net in deferred tax assets, which resulted in no ASC 740 liability on the balance sheet. The total amount of unrecognized tax benefits as of the date of adoption was zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit the Company’s tax returns from fiscal year ended March 31, 1999 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statements of operations. There have been no income tax related interest or penalties assessed or recorded. Because the Company has provided a full valuation allowance on all of its deferred tax assets, the adoption of ASC 740 had no impact on our effective tax rate.
Revenue Recognition	Revenue from product sales, net of discounts, are recorded when we ship the product and title has passed to the customer, provided that we have evidence of a customer arrangement and can conclude that collection is probable. Our shipping policy is FOB Shipping Point. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims. We have no ongoing obligations related to product sales, except for normal warranty. Revenue from engineering services is recognized when invoices are sent to customers and the service is performed.
Sales Taxes	We collect sales tax from customers and remit the entire amount to each respective state. We recognize revenue from product sales net of sale taxes.
Research and Development Expenses	We expense research and development costs for products and processes as incurred.
Advertising Costs	We expense advertising costs as incurred. Advertising expense for the years ended March 31, 2016 and 2015 was minimal.
Medical Device Tax	The Patient Protection and Affordable Care Act imposed a 2.3% excise tax on the sale of certain medical devices by a manufacturer, producer or importer of such devices in the United States starting after December 31, 2012. We expense the medical device tax in Other Expense. Effective January 1, 2016, the excise tax was suspended for two years.
Stock-Based Compensation	Stock-based compensation is presented in accordance with the guidance of ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”). Under the provisions of ASC 718, companies are required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our statements of operations. ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized in our statements of operations for fiscal years 2016 and 2015 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2016, based on the grant date fair value. Compensation expense for all share-based payment is recognized using the straight-line, single-option method. As stock-based compensation expense recognized in the accompanying statements of operations for fiscal years 2016 and 2015 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We used the Black-Scholes option-pricing model (“Black-Scholes model”) to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for fiscal years 2016 and 2015 was $74,677 and $62,608, respectively, which consisted of stock-based compensation expense related to director and employee stock options. Stock-based compensation expense related to director and employee stock options under ASC 718 for fiscal years 2016 and 2015 was allocated as follows: Years Ended March 31, 2016 March 31, 2015 Cost of sales $ 2,287 $ 1,965 Sales and marketing 11,822 11,076 General and administrative 56,381 46,522 Research and development 4,187 3,045 Stock-based compensation expense $ 74,677 $ 62,608
Segment Reporting	We have concluded that we have one operating segment.
Basic and Diluted Income per Common Share	Net income per share is calculated in accordance with ASC Topic 260, "Earnings Per Share" ("ASC 260"). Under the provisions of ASC 260, basic net income per common share is computed by dividing net income for the period by the weighted average number of common shares outstanding for the period. Diluted net income per common share is computed by dividing the net income for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. Because we had a loss in fiscal years 2016 and 2015, the shares used in the calculation of dilutive potential common shares exclude options to purchase shares and RSUs. Therefore, basic net loss per common share equals dilutive net loss per common share: The following table presents the calculation of basic and diluted net income (loss) per share: Years Ended March 31, 2016 March 31, 2015 Net loss $ (880,200) $(1,382,746) Weighted-average shares — basic 10,673,225 10,673,225 Effect of dilutive potential common shares — — Weighted-average shares — diluted 10,673,225 10,673,225 Net loss per share — basic and diluted $ (0.08) $ (0.13) Antidilutive equity units 700,924 599,924
Recent Accounting Pronouncements	We have reviewed all recently issued, but not yet effective, accounting pronouncements. The Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers), which is effective for annual reporting periods beginning after December 15, 2017. The Company does not expect ASU 2014-09 to have an impact on its financial statements. The Financial Accounting Standards Board has also issued Accounting Standards Update 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 (the ASU), which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The ASU requires management to perform an assessment every reporting period (including interim periods) to determine whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The ASU also defines that substantial doubt exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). The 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 this new guidance and the related impact on the financial statements. In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, (“ASU 2015-11”). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out (FIFO) or average cost. Specifically, ASU 2015-11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company does not expect ASU 2015-11 to have an impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting standards and disclosing key information about leasing arrangements. ASU 2016-02 will be effective for the Company beginning in its third quarter of 2020 and early adoption is permitted. The Company is currently evaluating the timing of its adoption and the impact of adopting the new lease standard on its consolidated financial statements.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of the activity in allowance for doubtful accounts	Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $11,500 $ 8,000 Provision for estimated (recoveries) losses (1,338) 9,582 Write-off of uncollectible accounts (1,162) (6,082) Balance, end of year $9,000 $11,500
Summary of warranty claims activity, included in other accrued liabilities	Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 20,000 $ 35,000 Provision for estimated warranty claims 1,194 (15,000) Claims made (1,194) — Balance, end of year $ 20,000 $ 20,000
Schedule of inventory	March 31, 2016 March 31, 2015 Raw materials $1,469,630 $1,547,733 Finished goods 671,117 1,029,921 Total gross inventories 2,140,747 2,577,654 Less reserve for obsolescence (410,000) (240,000) Total net inventories $1,730,747 $2,337,654
Summary of the activity in inventory reserve for obsolescence	Years Ended March 31, 2016 March 31, 2015 Balance, beginning of year $ 240,000 $ 560,000 Provision for estimated obsolescence 221,427 135,902 Write-off of obsolete inventory (51,427) (455,902) Balance, end of year $ 410,000 $ 240,000
Summary of patents	March 31, 2016 March 31, 2015 Patents issued $280,669 $280,669 Accumulated amortization (165,167) (153,494) Patents issued, net of accumulated amortization 115,502 127,175 Patent applications 151,537 130,181 Accumulated amortization (14,150) — Patent applications, net of accumulated amortization 137,387 130,181 Total net patents and patent applications $252,889 $257,356
Schedule of expected annual amortization expense related to patents and patent applications for the next five fiscal years	Fiscal Year Amount 2017 $ 25,823 2018 25,823 2019 25,823 2020 25,823 2021 and following 149,597 Total $252,889
Schedule of other accrued liabilities	March 31, 2016 March 31, 2015 Warranty $ 20,000 $ 20,000 Sales commissions 83,445 82,132 Lease normalization 31,365 22,655 Sales and use tax 17,453 21,124 Marketing fees 10,363 8,133 Legal and audit fees 40,454 38,493 Payroll taxes 21,823 24,120 Medical device tax –– 7,651 Employment agreement — 87,282 Insurance 20,240 — Miscellaneous 12,363 13,336 Total other accrued liabilities $257,506 $324,926
Schedule of stock-based compensation expense related to employee stock options	Years Ended March 31, 2016 March 31, 2015 Cost of sales $ 2,287 $ 1,965 Sales and marketing 11,822 11,076 General and administrative 56,381 46,522 Research and development 4,187 3,045 Stock-based compensation expense $ 74,677 $ 62,608
Schedule of calculation of basic and diluted net income (loss) per share	Years Ended March 31, 2016 March 31, 2015 Net loss $ (880,200) $(1,382,746) Weighted-average shares — basic 10,673,225 10,673,225 Effect of dilutive potential common shares — — Weighted-average shares — diluted 10,673,225 10,673,225 Net loss per share — basic and diluted $ (0.08) $ (0.13) Antidilutive equity units 700,924 599,924

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Mar. 31, 2016
Summary of assumptions for employee stock options	Years Ended March 31, 2016 March 31, 2015 Risk-free interest rate 1.6% 1.4% to 1.7% Expected life (in years) 5.0 5.0 Expected volatility 72% to 75% 74% to 75% Expected dividend 0% 0%
Summary of information about employee stock options outstanding and exercisable	STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price per Share Number Exercisable Weighted-Average Exercise Price per Share $0.50 - $0.94 426,000 2.0 $ 0.75 133,061 $ 0.83 $1.00 - $1.09 110,000 2.3 $ 1.02 56,781 $ 1.03 $1.15 - $1.50 120,000 2.1 $ 1.26 85,670 $ 1.28 656,000 2.1 $ 0.89 275,512 $ 1.01
Summary of RSU activity and related information for equity compensation plans	RSUs OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2015 24,924 $ 0.80 Granted 20,000 0.50 BALANCE AT MARCH 31, 2016 44,924 $ 0.67
Equity Compensation Plans Approved [Member]
Summary of stock option activity and related information for equity compensation plans	STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2014 281,000 $ 1.06 Granted 75,000 0.84 Forfeited/expired (26,000) 1.73 BALANCE AT MARCH 31, 2015 330,000 $ 0.96 Granted 139,000 0.57 Forfeited/expired (58,000) 0.83 BALANCE AT MARCH 31, 2016 411,000 $ 0.85
Equity Compensation Plans Not Approved [Member]
Summary of stock option activity and related information for equity compensation plans	STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2014 250,000 $ 0.97 Granted 20,000 1.00 Forfeited/expired (25,000) 1.12 BALANCE AT MARCH 31, 2015 245,000 $0.96 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2016 245,000 $ 0.96

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Mar. 31, 2016
Building [Member]
Schedule of Commitments [Line Items]
Schedule of minimum future lease payments, by fiscal year	Fiscal Year Amount 2017 276,732 2018 285,034 2019 293,585 2020 99,800 Total $955,151

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax provision (benefit) for income taxes	Years Ended March 31, 2016 March 31, 2015 Current: Federal $ –– $ –– State –– –– Total current –– –– Deferred: Federal (291,000) (461,000) State (30,000) (48,000) Total deferred (321,000) (509,000) Valuation allowance 321,000 509,000 Total $ –– $ ––
Schedule of accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes	Years Ended March 31, 2016 March 31, 2015 Federal statutory rate $(299,000) $(470,000) Effect of: State taxes, net of federal tax benefit (31,000) (48,000) Other 15,000 12,000 Valuation allowance 315,000 506,000 Total $ –– $ ––
Schedule of components of the deferred tax asset	Years Ended March 31, 2016 March 31, 2015 Credits and net operating loss carryforwards $4,190,000 $3,936,000 Other 225,000 158,000 Gross deferred tax assets 4,415,000 4,094,000 Valuation allowance (4,415,000) (4,094,000) Total deferred tax assets $ –– $ ––

Description of Business (Detail

Description of Business (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 21,220,317	$ 20,340,117

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Balance, beginning of year	$ 11,500	$ 8,000
Provision for estimated losses	(1,338)	9,582
Write-off of uncollectible accounts	(1,162)	(6,082)
Balance, end of year	$ 9,000	$ 11,500

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details 1) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Balance, beginning of year	$ 20,000	$ 35,000
Provision for estimated warranty claims	1,194	(15,000)
Claims made	(1,194)	0
Balance, end of year	$ 20,000	$ 20,000

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details 2) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies Details 2
Raw materials	$ 1,469,630	$ 1,547,733
Finished goods	671,117	1,029,921
Total gross inventories	2,140,747	2,577,654
Less reserve for obsolescence	(410,000)	(240,000)
Total net inventories	$ 1,730,747	$ 2,337,654

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details 3) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Balance, beginning of year	$ 240,000	$ 560,000
Provision for estimated obsolescence	221,427	135,902
Write-off of obsolete inventory	(51,427)	(455,902)
Balance, end of year	$ 410,000	$ 240,000

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details 4) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Accumulated amortization	$ (179,317)	$ (153,494)
Total net patents and patent applications	252,889	257,356
Patents [Member]
Patents issued	280,669	280,669
Accumulated amortization	(165,167)	(153,494)
Patents issued, net of accumulated amortization	115,502	127,175
Patent applications	151,537	130,181
Accumulated amortization	(14,150)	0
Patent applications, net of accumulated amortization	137,387	130,181
Total net patents and patent applications	$ 252,889	$ 257,356

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details 5)	Mar. 31, 2016USD ($)
Expected annual amortization expense related to patents and patent applications
2,017	$ 25,823
2,018	25,823
2,019	25,823
2,020	25,823
2021 and following	149,597
Total	$ 252,889

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details 6) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Warranty	$ 20,000	$ 20,000
Sales commissions	83,445	82,132
Lease normalization	31,365	22,655
Sales and use tax	17,453	21,124
Marketing fees	10,363	8,133
Legal and audit fees	40,454	38,493
Payroll taxes	21,823	24,120
Medical device tax	0	7,651
Employment agreement	0	87,282
Insurance	20,240	0
Miscellaneous	12,363	13,336
Total other accrued liabilities	$ 257,506	$ 324,926

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details 7) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock-based compensation expense related to grants of employee stock options	$ 74,677	$ 62,608
Cost Of Sales [Member]
Stock-based compensation expense related to grants of employee stock options	2,287	1,965
Selling And Marketing Expense [Member]
Stock-based compensation expense related to grants of employee stock options	11,822	11,076
General And Administrative Expense [Member]
Stock-based compensation expense related to grants of employee stock options	56,381	46,522
Research And Development Expense [Member]
Stock-based compensation expense related to grants of employee stock options	$ 4,187	$ 3,045

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details 8) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies Details 8
Net loss	$ (880,200)	$ (1,382,746)
Weighted-average shares - basic (in shares)	10,673,225	10,673,225
Effect of dilutive potential common shares	0	0
Weighted-average shares - diluted (in shares)	0	0
Net loss per share-basic and diluted (in dollars per share)	$ (0.08)	$ (0.13)
Antidilutive equity units (in shares)	700,924	599,924

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies Details Narrative
Accounts receivable	$ 839,850	$ 965,355
Depreciation expense	292,869	357,985
Stock based compensation	$ 74,677	$ 62,608

Shareholders' Equity (Details)

Shareholders' Equity (Details)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Shareholders Equity Details
Risk-free interest rate	1.60%
Risk-free interest rate, minimum (as a percent)		1.40%
Risk-free interest rate, maximum (as a percent)		1.70%
Expected life	5 years	5 years
Expected volatility, minimum (as a percent)	72.00%	74.00%
Expected volatility, maximum (as a percent)	75.00%	75.00%
Expected dividend (as a percent)	0.00%	0.00%

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1) - Employee Stock Option [Member] - $ / shares	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity Compensation Plans Approved [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at the beginning of the period (in shares)	330,000	281,000
Granted (in shares)	139,000	75,000
Forfeited/expired (in shares)	(58,000)	(26,000)
Balance at the end of the period (in shares)	411,000	330,000
Balance at the beginning of the period (in dollars per share)	$ .96	$ 1.06
Granted (in dollars per share)	.57	.84
Forfeited/expired (in dollars per share)	.83	1.73
Balance at the end of the period (in dollars per share)	$ .85	$ .96
Equity Compensation Plans Not Approved [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at the beginning of the period (in shares)	245,000	250,000
Granted (in shares)	0	20,000
Forfeited/expired (in shares)	0	(25,000)
Balance at the end of the period (in shares)	245,000	245,000
Balance at the beginning of the period (in dollars per share)	$ .96	$ .97
Granted (in dollars per share)	0	1
Forfeited/expired (in dollars per share)	0	1.12
Balance at the end of the period (in dollars per share)	$ .96	$ .96

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - Employee Stock Option [Member]	12 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	656,000
Weighted-Average Remaining Contractual Life	2 years 1 month 6 days
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ .89
Number Exercisable (in shares) | shares	275,512
Exercisable Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.01
$0.50 To $0.94 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	426,000
Weighted-Average Remaining Contractual Life	2 years
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ .75
Number Exercisable (in shares) | shares	133,061
Exercisable Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ .83
$1.00 To $1.09 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	110,000
Weighted-Average Remaining Contractual Life	2 years 3 months 18 days
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.02
Number Exercisable (in shares) | shares	56,781
Exercisable Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.03
$1.15 To $1.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	120,000
Weighted-Average Remaining Contractual Life	2 years 1 month 6 days
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.26
Number Exercisable (in shares) | shares	85,670
Exercisable Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.28

Shareholders' Equity (Details 3

Shareholders' Equity (Details 3) - Restricted Stock Units R S U [Member]	12 Months Ended
	Mar. 31, 2016$ / sharesshares
Balance at the beginning of the period (in shares) | shares	24,924
Granted (in shares) | shares	20,000
Balance at the end of the period (in shares) | shares	44,924
Balance at the beginning of the period (in dollars per share) | $ / shares	$ .80
Granted (in dollars per share) | $ / shares	.50
Balance at the end of the period (in dollars per share) | $ / shares	$ .67

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Shareholders Equity Details Narrative
Unrecognized compensation costs	$ 218,000
Fair value of stock options	58,000	$ 51,000
Stock-based compensation, net of the effect of forfeitures	$ 74,677	$ 62,608

Commitments and Contingencies37

Commitments and Contingencies (Details)	Mar. 31, 2016USD ($)
Minimum future lease payments, by fiscal year
2,017	$ 276,732
2,018	285,034
2,019	293,585
2,020	99,800
Total	$ 955,151

Commitments and Contingencies38

Commitments and Contingencies (Details Narrative) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Commitments And Contingencies Details Narrative
Line of credit	$ 387,491	$ 0
Employee benefit obligation	$ 0	$ 87,282

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Current:
Federal	$ 0	$ 0
State	0	0
Total Current	0	0
Deferred:
Federal	(291,000)	(461,000)
State	(30,000)	(48,000)
Total Deferred	(321,000)	(509,000)
Valuation allowance	321,000	509,000
Total provision (benefit) for income taxes	$ 0	$ 0

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory rate	$ (299,000)	$ (470,000)
Effect of:
State taxes, net of federal tax benefit	(31,000)	(48,000)
Other	15,000	12,000
Valuation allowance	315,000	506,000
Total	$ 0	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Income Taxes Details 2
Credits and net operating loss carryforwards	$ 4,190,000	$ 3,936,000
Other	225,000	158,000
Gross deferred tax assets	4,415,000	4,094,000
Valuation allowance	(4,415,000)	(4,094,000)
Total deferred tax assets	$ 0	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	12 Months Ended
	Mar. 31, 2016USD ($)
Income Taxes Details Narrative
Net operating loss carryovers	$ 11,100,000
Operating loss carryforward expiration	Mar. 31, 2036
Research and development tax credits	$ 233,000

Major Customers_Suppliers (Deta

Major Customers/Suppliers (Details)	12 Months Ended
	Mar. 31, 2016
New Deantronics Inc [Member]
Major Customers and Suppliers [Line Items]
Percentage of purchases accounted for by a major supplier	11.00%

Related Party Transaction (Deta

Related Party Transaction (Details) - USD ($)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Director [Member]
Related Party Transaction [Line Items]
Consulting fees paid	$ 85,504	$ 84,733
Director One [Member]
Related Party Transaction [Line Items]
Consulting fees paid	$ 0	$ 4,000

Impairment Cost (Details)

Impairment Cost (Details)	12 Months Ended
	Mar. 31, 2015USD ($)
Impairment Cost.
Product impairment cost	$ 0