Encision (ECIA) 10-Q 14 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document and Entity Information
Entity Registrant Name	ENCISION INC
Entity Central Index Key	930,775
Document Type	10-Q
Document Period End Date	Dec. 31, 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		10,683,355
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 63,867	$ 292,840
Restricted cash	25,000	25,000
Accounts receivable, net of allowance for doubtful accounts of $20,000 at December 31, 2016 and $9,000 at March 31, 2016	1,078,673	839,850
Inventories, net of reserve for obsolescence of $170,000 at December 31, 2016 and $410,000 at March 31, 2016	1,135,975	1,730,747
Prepaid expenses	137,264	91,989
Total current assets	2,440,779	2,980,426
Equipment, at cost:
Furniture, fixtures and equipment	3,160,388	3,950,710
Accumulated depreciation	(2,647,395)	(3,389,533)
Equipment, net	512,993	561,177
Patents, net of accumulated amortization of $195,433 at December 31, 2016 and $153,494 at March 31, 2016	257,875	252,889
Other assets	16,392	15,926
TOTAL ASSETS	3,228,039	3,810,418
Current liabilities:
Accounts payable	508,417	355,890
Accrued compensation	220,733	246,203
Other accrued liabilities	234,682	257,506
Line of credit	283,670	387,491
Deferred rent	30,384	30,384
Total current liabilities	1,277,886	1,277,474
Long-term liabilities:
Deferred rent	48,109	70,896
Total liabilities	1,325,995	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; 10,683,355 shares issued and outstanding at December 31 and March 31, 2016	23,734,776	23,682,365
Accumulated (deficit)	(21,832,732)	(21,220,317)
Total shareholders' equity	1,902,044	2,462,048
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,228,039	$ 3,810,418

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 20,000	$ 9,000
Inventories, reserve for obsolescence (in dollars)	170,000	410,000
Accumulated amortization	$ 195,433	$ 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	10,683,355	10,683,355
Common stock and additional paid-in capital, shares outstanding	10,683,355	10,683,355

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
NET REVENUE	$ 2,229,870	$ 2,292,663	$ 6,657,875	$ 7,047,424
COST OF REVENUE	1,165,414	1,118,658	3,394,204	3,519,205
GROSS PROFIT	1,064,456	1,174,005	3,263,671	3,528,219
OPERATING EXPENSES:
Sales and marketing	638,735	626,001	1,882,337	1,952,191
General and administrative	383,106	354,397	1,087,239	1,087,641
Research and development	300,392	339,746	880,760	929,400
Total operating expenses	1,322,233	1,320,144	3,850,336	3,969,232
OPERATING LOSS	(257,777)	(146,139)	(586,665)	(441,013)
Interest expense, net	(15,093)	(10,047)	(44,681)	(27,448)
Other income (expense), net	(1,295)	(43,843)	18,931	(129,075)
Interest expense and other income (expense), net	(16,388)	(53,890)	(25,750)	(156,523)
LOSS BEFORE PROVISION FOR INCOME TAXES	(274,165)	(200,029)	(612,415)	(597,536)
Provision for income taxes	0	0	0	0
NET LOSS	$ (274,165)	$ (200,029)	$ (612,415)	$ (597,536)
Net loss per share-basic and diluted	$ (0.03)	$ (0.02)	$ (0.06)	$ (0.06)
Weighted average shares-basic and diluted	10,678,344	10,673,225	10,674,548	10,673,225

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net loss	$ (612,415)	$ (597,536)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	168,357	243,867
Share-based compensation expense	52,411	56,396
Provision for (recovery from) doubtful accounts, net	11,000	(4,500)
(Recovery from) provision for inventory obsolescence, net	(240,000)	40,762
Change in operating assets and liabilities:
Accounts receivable	(249,823)	107,910
Inventories	834,772	295,958
Prepaid expenses and other assets	(45,741)	(16,996)
Accounts payable	152,527	(232,709)
Accrued compensation and other accrued liabilities	(71,081)	(160,351)
Net cash generated by (used in) operating activities	7	(267,199)
Investing activities:
Acquisition of property and equipment	(104,057)	(36,104)
Patent costs	(21,102)	(20,125)
Net cash (used in) investing activities	(125,159)	(56,229)
Financing activities:
Paydown of credit facility, net change	(103,821)	(171,986)
Net cash provided by financing activities	(103,821)	(171,986)
Net decrease in cash and cash equivalents	(228,973)	(151,442)
Cash and cash equivalents, beginning of period	292,840	258,656
Cash and cash equivalents, end of period	$ 63,867	$ 107,214

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Dec. 31, 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 $21,832,732 at December 31, 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	9 Months Ended
	Dec. 31, 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 December 31, 2016 of $1,078,673 and at March 31, 2016 of $839,850 included no more than 5% from any one customer. Warranty Accrual. Inventories December 31, 2016 March 31, 2016 Raw materials $ 822,741 $ 1,469,630 Finished goods 483,234 671,117 Total gross inventories 1,305,975 2,140,747 Less reserve for obsolescence (170,000 ) (410,000 ) Total net inventories $ 1,135,975 $ 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 nine months ended December 31, 2016 was $17,998 and $52,411, respectively, and for the three and nine months ended December 31, 2015 was $18,801 and $56,396, 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	9 Months Ended
	Dec. 31, 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 Nine Months Ended December 31, 2015 December 31, 2016 Net loss $ (274,165 ) $ (200,029 ) $ (612,415 ) $ (597,536 ) Weighted-average shares — basic 10,678,344 10,673,225 10,674,548 10,673,225 Effect of dilutive potential common shares — — — — Weighted-average shares — diluted 10,678,344 10,673,225 10,674,548 10,673,225 Net income (loss) per share — basic $ (0.03 ) $ (0.02 ) $ (0.06 ) $ (0.06 ) Net income (loss) per share — diluted $ (0.03 ) $ (0.02 ) $ (0.06 ) $ (0.06 ) Antidilutive employee stock options and RSUs 954,286 708,924 954,286 708,924

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Dec. 31, 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 December 31, 2016 is as follows: Fiscal Year Amount 2017 (three months remaining) 69,183 2018 285,034 2019 293,585 2020 99,800 Total $ 747,602 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 December 31, 2016, we had $283,670 of borrowings from the credit facility and had an additional $406,592 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 December 31, 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	9 Months Ended
	Dec. 31, 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 and nine months ended December 31, 2016 and 2015, which was allocated as follows: Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Cost of sales $ 819 $ 573 $ 2,073 $ 1,716 Sales and marketing 3,406 2,955 9,484 8,866 General and administrative 12,231 14,226 36,999 42,674 Research and development 1,542 1,047 3,855 3,140 Stock-based compensation expense $ 17,998 $ 18,801 $ 52,411 $ 56,396 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 105,000 and 285,000 stock options granted, and 11,000 and 11,000 forfeited during the three and nine months ended December 31, 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 10,130 RSUs exercised and 10,508 forfeited during the three and nine months ended December 31, 2016. As of December 31, 2016, $230,000 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	9 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	We paid consulting fees of $16,309 and $57,484 to an entity owned by one of our directors during the three and nine months ended December 31, 2016, respectively, and $22,054 and $63,780 during the three and nine months ended December 31, 2015.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Dec. 31, 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)	9 Months Ended
	Dec. 31, 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 December 31, 2016 of $1,078,673 and at March 31, 2016 of $839,850 included no more than 5% from any one customer.
Warranty Accrual	Warranty Accrual.
Inventories	Inventories December 31, 2016 March 31, 2016 Raw materials $ 822,741 $ 1,469,630 Finished goods 483,234 671,117 Total gross inventories 1,305,975 2,140,747 Less reserve for obsolescence (170,000 ) (410,000 ) Total net inventories $ 1,135,975 $ 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 nine months ended December 31, 2016 was $17,998 and $52,411, respectively, and for the three and nine months ended December 31, 2015 was $18,801 and $56,396, 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)	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of inventory	December 31, 2016 March 31, 2016 Raw materials $ 822,741 $ 1,469,630 Finished goods 483,234 671,117 Total gross inventories 1,305,975 2,140,747 Less reserve for obsolescence (170,000 ) (410,000 ) Total net inventories $ 1,135,975 $ 1,730,747

BASIC AND DILUTED INCOME AND 15

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables)	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net loss per share	Three Months Ended Nine Months Ended December 31, 2015 December 31, 2016 Net loss $ (274,165 ) $ (200,029 ) $ (612,415 ) $ (597,536 ) Weighted-average shares — basic 10,678,344 10,673,225 10,674,548 10,673,225 Effect of dilutive potential common shares — — — — Weighted-average shares — diluted 10,678,344 10,673,225 10,674,548 10,673,225 Net income (loss) per share — basic $ (0.03 ) $ (0.02 ) $ (0.06 ) $ (0.06 ) Net income (loss) per share — diluted $ (0.03 ) $ (0.02 ) $ (0.06 ) $ (0.06 ) Antidilutive employee stock options and RSUs 954,286 708,924 954,286 708,924

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of minimum future lease payments, by fiscal year	Fiscal Year Amount 2017 (three months remaining) 69,183 2018 285,034 2019 293,585 2020 99,800 Total $ 747,602

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation expense related to employee stock options	Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Cost of sales $ 819 $ 573 $ 2,073 $ 1,716 Sales and marketing 3,406 2,955 9,484 8,866 General and administrative 12,231 14,226 36,999 42,674 Research and development 1,542 1,047 3,855 3,140 Stock-based compensation expense $ 17,998 $ 18,801 $ 52,411 $ 56,396

ORGANIZATION AND NATURE OF BU18

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 21,832,732	$ 21,220,317

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Inventories
Raw materials	$ 822,741	$ 1,469,630
Finished goods	483,234	671,117
Total gross inventories	1,305,975	2,140,747
Less reserve for obsolescence	(170,000)	(410,000)
Total net inventories	$ 1,135,975	$ 1,730,747

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Property, Plant and Equipment [Line Items]
Federally insured limit	$ 250,000		$ 250,000
Accounts Receivable	1,078,673		1,078,673		$ 839,850
Stock-based compensation expense	$ 17,998	$ 18,801	$ 52,411	$ 56,396
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		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net loss	$ (274,165)	$ (200,029)	$ (612,415)	$ (597,536)
Weighted-average shares - basic	10,678,344	10,673,225	10,674,548	10,673,225
Effect of dilutive potential common shares	0	0	0	0
Weighted-average shares - diluted	10,678,344	10,673,225	10,674,548	10,673,225
Net income (loss) per share-basic	$ (.03)	$ (.02)	$ (.06)	$ (.06)
Net income (loss) per share-diluted	$ (0.03)	$ (0.02)	$ (0.06)	$ (0.06)
Antidilutive employee stock options and RSUs	954,286	708,924	954,286	708,924

COMMITMENTS AND CONTINGENCIES22

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2016USD ($)
Minimum future lease payments, by fiscal year
2017 (three months remaining)	$ 69,183
2,018	285,034
2,019	293,585
2,020	99,800
Total	$ 747,602

COMMITMENTS AND CONTINGENCIES23

COMMITMENTS AND CONTINGENCIES (Details Narrative)	Dec. 31, 2016USD ($)
Commitments And Contingencies Details Narrative
Amount of borrowings	$ 283,670
Amount available to borrow	$ 406,592

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 17,998	$ 18,801	$ 52,411	$ 56,396
Cost Of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	819	573	2,073	1,716
Selling And Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	3,406	2,955	9,484	8,866
General And Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	12,231	14,226	36,999	42,674
Research And Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,542	$ 1,047	$ 3,855	$ 3,140

SHARE-BASED COMPENSATION (Det25

SHARE-BASED COMPENSATION (Details Narrative)	Dec. 31, 2016USD ($)
Share-based Compensation Details Narrative
Unrecognized compensation costs related to nonvested stock options	$ 230,000

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Director [Member]
Related Party Transaction [Line Items]
Consulting fees paid	$ 16,309	$ 22,054	$ 57,484	$ 63,780