Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ENCISION INC | |
Entity Central Index Key | 930,775 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 10,673,225 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 31,552 | $ 292,840 |
Restricted cash | 25,000 | 25,000 |
Accounts receivable, net of allowance for doubtful accounts of $21,500 at September 30, 2016 and $9,000 at March 31, 2016 | 965,382 | 839,850 |
Inventories, net of reserve for obsolescence of $450,000 at September 30, 2016 and $410,000 at March 31, 2016 | 1,458,207 | 1,730,747 |
Prepaid expenses | 117,298 | 91,989 |
Total current assets | 2,597,439 | 2,980,426 |
Equipment, at cost: | ||
Furniture, fixtures and equipment | 3,141,226 | 3,950,710 |
Accumulated depreciation | (2,625,019) | (3,389,533) |
Equipment, net | 516,207 | 561,177 |
Patents, net of accumulated amortization of $190,561 at September 30, 2016 and $153,494 at March 31, 2016 | 260,554 | 252,889 |
Other assets | 15,926 | 15,926 |
TOTAL ASSETS | 3,390,126 | 3,810,418 |
Current liabilities: | ||
Accounts payable | 289,221 | 355,890 |
Accrued compensation | 247,462 | 246,203 |
Other accrued liabilities | 241,213 | 257,506 |
Line of credit | 367,930 | 387,491 |
Deferred rent | 30,384 | 30,384 |
Total current liabilities | 1,176,210 | 1,277,474 |
Long-term liabilities: | ||
Deferred rent | 55,704 | 70,896 |
Total liabilities | 1,231,914 | 1,348,370 |
Commitments and contingencies (Note 4) | ||
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 shares issued and outstanding at September 30 and March 31, 2016 | 23,716,777 | 23,682,365 |
Accumulated (deficit) | (21,558,565) | (21,220,317) |
Total shareholders' equity | 2,158,212 | 2,462,048 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,390,126 | $ 3,810,418 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 21,500 | $ 9,000 |
Inventories, reserve for obsolescence (in dollars) | 450,000 | 410,000 |
Accumulated amortization | $ 190,561 | $ 153,494 |
Preferred stock, par value | $ 0 | $ 0 |
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, par value | $ 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 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
NET REVENUE | $ 2,150,656 | $ 2,300,436 | $ 4,428,004 | $ 4,754,761 |
COST OF REVENUE | 1,141,773 | 1,120,006 | 2,228,789 | 2,400,547 |
GROSS PROFIT | 1,008,883 | 1,180,430 | 2,199,215 | 2,354,214 |
OPERATING EXPENSES: | ||||
Sales and marketing | 614,164 | 629,847 | 1,243,602 | 1,326,189 |
General and administrative | 359,722 | 366,581 | 704,134 | 733,245 |
Research and development | 278,716 | 305,616 | 580,367 | 589,654 |
Total operating expenses | 1,252,602 | 1,302,044 | 2,528,103 | 2,649,088 |
OPERATING LOSS | (243,719) | (121,614) | (328,888) | (294,874) |
Interest expense, net | (16,097) | (16,681) | (29,588) | (17,400) |
Other income (expense), net | 20,226 | (46,013) | 20,227 | (85,234) |
Interest expense and other income (expense), net | 4,129 | (62,694) | (9,361) | (102,634) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (239,590) | (184,308) | (338,249) | (397,508) |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (239,590) | $ (184,308) | $ (338,249) | $ (397,508) |
Net loss per share-basic and diluted | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.04) |
Weighted average shares-basic and diluted | 10,673,225 | 10,673,225 | 10,673,225 | 10,673,225 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (338,249) | $ (397,508) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 116,584 | 162,035 |
Share-based compensation expense | 34,413 | 37,595 |
Provision for (recovery from) doubtful accounts, net | 12,500 | (500) |
Provision for inventory obsolescence, net | 40,000 | 22,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | (138,032) | 95,082 |
Inventories | 232,540 | 341,457 |
Prepaid expenses and other assets | (25,309) | (10,386) |
Accounts payable | (66,669) | (211,663) |
Accrued compensation and other accrued liabilities | (30,226) | (98,009) |
Net cash (used in) operating activities | (162,448) | (59,897) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (60,370) | (10,985) |
Patent costs | (18,909) | (10,581) |
Net cash (used in) investing activities | (79,279) | (21,566) |
Cash flows from financing activities: | ||
Paydown of credit facility, net change | (19,561) | (64,000) |
Net cash provided by financing activities | (19,561) | (64,000) |
Net decrease in cash and cash equivalents | (261,288) | (145,463) |
Cash and cash equivalents, beginning of period | 292,840 | 258,656 |
Cash and cash equivalents, end of period | $ 31,552 | $ 113,193 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to, and saves lives of, patients undergoing minimally-invasive surgery. We believe that our patented AEM ® We have an accumulated deficit of $21,558,565 at September 30, 2016. Operating funds have been provided primarily by issuances of our common stock and warrants, a line of credit, and the exercise of stock options to purchase our common stock. Should our liquidity be diminished in the future because of operating losses, we may be required to seek additional capital. Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals and surgery centers in the United States. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation. The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. 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. The net accounts receivable balance at September 30, 2016 of $965,382 and at March 31, 2016 of $839,850 included no more than 5% from any one customer. Warranty Accrual. Inventories September 30, 2016 March 31, 2016 Raw materials $ 1,280,013 $ 1,469,630 Finished goods 628,194 671,117 Total gross inventories 1,908,207 2,140,747 Less reserve for obsolescence (450,000 ) (410,000 ) Total net inventories $ 1,458,207 $ 1,730,747 Property and Equipment Long-Lived Assets. Patents. Income Taxes. Revenue Recognition. Research and Development Expenses Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and six months ended September 30, 2016 was $17,378 and $34,413, respectively, and for the three and six months ended September 30, 2015 was $20,161 and $37,595, respectively, which consisted of stock-based compensation expense related to grants of employee stock options and restricted stock units ("RSUs"). Segment Reporting. Recent Accounting Pronouncements. 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 a material/significant 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. |
BASIC AND DILUTED INCOME AND LO
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | We report both basic and diluted net income (loss) per share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income or loss 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. The shares used in the calculation of dilutive potential common shares exclude options and RSUs to purchase shares where the exercise price was greater than the average market price of common shares for the period. The following table presents the calculation of basic and diluted net loss per share: Three Months Ended Six Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Net loss $ (239,590 ) $ (184,308 ) $ (338,249 ) $ (397,508 ) Weighted-average shares — basic 10,673,225 10,673,225 10,673,225 10,673,225 Effect of dilutive potential common shares — — — — Weighted-average shares — diluted 10,673,225 10,673,225 10,673,225 10,673,225 Net income (loss) per share — basic $ (0.02 ) $ (0.02 ) $ (0.06 ) $ (0.04 ) Net income (loss) per share — diluted $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.04 ) Antidilutive employee stock options and RSUs 880,924 718,924 880,924 718,924 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Effective December 1, 2013, we extended our noncancelable lease agreement through July 31, 2019 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 condensed 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 September 30, 2016 is as follows: Fiscal Year Amount 2017 (six months remaining) 138,366 2018 285,034 2019 293,585 2020 99,800 Total $ 816,785 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 September 30, 2016, we had $367,930 of borrowings from the credit facility and had an additional approximately $195,000 available to borrow. Aside from the operating lease, we do not have any material contractual commitments requiring settlement in the future. 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 compliance with these regulations. We believe that we were in substantial compliance with all known regulations at September 30, 2016. FDA inspections are conducted periodically at the discretion of the FDA. Our latest inspection by the FDA occurred in October 2015. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options, RSUs and employee stock purchases for the three months ended September 30, 2016 and 2015, which was allocated as follows: Three Months Ended Six Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Cost of sales $ 640 $ 652 $ 1,254 $ 1,143 Sales and marketing 3,039 3,117 6,078 5,911 General and administrative 12,517 15,184 24,768 28,448 Research and development 1,182 1,208 2,313 2,093 Stock-based compensation expense $ 17,378 $ 20,161 $ 34,413 $ 37,595 Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate and expected dividends. There were 180,000 and 180,000 stock options granted and none forfeited during the three and six months ended September 30, 2016, respectively. Share-based compensation cost for RSUs is measured based on the closing fair market value of the Company's common stock on the date of grant. There were no RSUs granted nor forfeited during the three and six months ended September 30, 2016. As of September 30, 2016, $220,000 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years. |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 6 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | We paid consulting fees of $22,707 and $41,175 to an entity owned by one of our directors during the three and six months ended September 30, 2016, respectively, and $19,260 and $41,726 during the three and six months ended September 30, 2015. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | We evaluated all of our activity as of the date the condensed interim financial statements were issued and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. |
Concentration of Credit Risk | 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. The net accounts receivable balance at September 30, 2016 of $965,382 and at March 31, 2016 of $839,850 included no more than 5% from any one customer. |
Warranty Accrual | Warranty Accrual. |
Inventories | Inventories September 30, 2016 March 31, 2016 Raw materials $ 1,280,013 $ 1,469,630 Finished goods 628,194 671,117 Total gross inventories 1,908,207 2,140,747 Less reserve for obsolescence (450,000 ) (410,000 ) Total net inventories $ 1,458,207 $ 1,730,747 |
Property and Equipment | Property and Equipment |
Long-Lived Assets | Long-Lived Assets. |
Patents | Patents. |
Income Taxes | Income Taxes. |
Revenue Recognition | Revenue Recognition. |
Research and Development Expenses | Research and Development Expenses |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and six months ended September 30, 2016 was $17,378 and $34,413, respectively, and for the three and six months ended September 30, 2015 was $20,161 and $37,595, respectively, which consisted of stock-based compensation expense related to grants of employee stock options and restricted stock units ("RSUs"). |
Segment Reporting | Segment Reporting. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. 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 a material/significant 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 ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of inventory | September 30, 2016 March 31, 2016 Raw materials $ 1,280,013 $ 1,469,630 Finished goods 628,194 671,117 Total gross inventories 1,908,207 2,140,747 Less reserve for obsolescence (450,000 ) (410,000 ) Total net inventories $ 1,458,207 $ 1,730,747 |
BASIC AND DILUTED INCOME AND 15
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted net loss per share | Three Months Ended Six Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Net loss $ (239,590 ) $ (184,308 ) $ (338,249 ) $ (397,508 ) Weighted-average shares — basic 10,673,225 10,673,225 10,673,225 10,673,225 Effect of dilutive potential common shares — — — — Weighted-average shares — diluted 10,673,225 10,673,225 10,673,225 10,673,225 Net income (loss) per share — basic $ (0.02 ) $ (0.02 ) $ (0.06 ) $ (0.04 ) Net income (loss) per share — diluted $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.04 ) Antidilutive employee stock options and RSUs 880,924 718,924 880,924 718,924 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future lease payments, by fiscal year | Fiscal Year Amount 2017 (six months remaining) 138,366 2018 285,034 2019 293,585 2020 99,800 Total $ 816,785 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense related to employee stock options | Three Months Ended Six Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Cost of sales $ 640 $ 652 $ 1,254 $ 1,143 Sales and marketing 3,039 3,117 6,078 5,911 General and administrative 12,517 15,184 24,768 28,448 Research and development 1,182 1,208 2,313 2,093 Stock-based compensation expense $ 17,378 $ 20,161 $ 34,413 $ 37,595 |
ORGANIZATION AND NATURE OF BU18
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 21,558,565 | $ 21,220,317 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Inventories | ||
Raw materials | $ 1,280,013 | $ 1,469,630 |
Finished goods | 628,194 | 671,117 |
Total gross inventories | 1,908,207 | 2,140,747 |
Less reserve for obsolescence | (450,000) | (410,000) |
Total net inventories | $ 1,458,207 | $ 1,730,747 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Federally insured limit | $ 250,000 | $ 250,000 | |||
Accounts Receivable | 965,382 | 965,382 | $ 839,850 | ||
Stock-based compensation expense | $ 17,378 | $ 20,161 | $ 34,413 | $ 37,595 | |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets | 5 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets | 7 years |
BASIC AND DILUTED INCOME AND 21
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (239,590) | $ (184,308) | $ (338,249) | $ (397,508) |
Weighted-average shares - basic | 10,673,225 | 10,673,225 | 10,673,225 | 10,673,225 |
Effect of dilutive potential common shares | 0 | 0 | 0 | 0 |
Weighted-average shares - diluted | 10,673,225 | 10,673,225 | 10,673,225 | 10,673,225 |
Net income (loss) per share-basic | $ (0.02) | $ (0.02) | $ (0.06) | $ (0.04) |
Net income (loss) per share-diluted | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.04) |
Antidilutive employee stock options and RSUs | 880,924 | 718,924 | 880,924 | 718,924 |
COMMITMENTS AND CONTINGENCIES22
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2016USD ($) |
Minimum future lease payments, by fiscal year | |
2017 (six months remaining) | $ 138,366 |
2,018 | 285,034 |
2,019 | 293,585 |
2,020 | 99,800 |
Total | $ 816,785 |
COMMITMENTS AND CONTINGENCIES23
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Sep. 30, 2016USD ($) |
Commitments And Contingencies Details Narrative | |
Amount of borrowings | $ 367,930 |
Amount available to borrow | $ 195,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 17,378 | $ 20,161 | $ 34,413 | $ 37,595 |
Cost Of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 640 | 652 | 1,254 | 1,143 |
Selling And Marketing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 3,039 | 3,117 | 6,078 | 5,911 |
General And Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 12,517 | 15,184 | 24,768 | 28,448 |
Research And Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,182 | $ 1,208 | $ 2,313 | $ 2,093 |
SHARE-BASED COMPENSATION (Det25
SHARE-BASED COMPENSATION (Details Narrative) | Sep. 30, 2016USD ($) |
Share-based Compensation Details Narrative | |
Unrecognized compensation costs related to nonvested stock options | $ 220,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Consulting fees paid | $ 22,707 | $ 19,260 | ||
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees paid | $ 41,175 | $ 41,726 |