Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 31, 2018 | Sep. 30, 2017 | |
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, 2018 | ||
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 | $ 2,470,513 | ||
Entity Common Stock, Shares Outstanding | 10,683,355 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 114,538 | $ 45,117 |
Restricted cash | 25,000 | 50,000 |
Accounts receivable, net of allowance for doubtful accounts of $20,500 at March 31, 2018 and $33,000 at March 31, 2017 | 962,639 | 1,042,281 |
Inventories, net of reserve for obsolescence of $21,000 at March 31, 2018 and $50,000 at March 31, 2017 | 1,437,159 | 1,128,412 |
Prepaid expenses | 74,830 | 62,290 |
Total current assets | 2,614,166 | 2,328,100 |
Equipment: | ||
Furniture, fixtures and equipment, at cost | 3,021,968 | 3,161,687 |
Accumulated depreciation | (2,673,037) | (2,693,302) |
Equipment, net | 348,931 | 468,385 |
Patents, net of accumulated amortization of $238,571 at March 31, 2018 and $212,345 at March 31, 2017 | 270,504 | 253,980 |
Other assets | 18,873 | 16,450 |
TOTAL ASSETS | 3,252,474 | 3,066,915 |
Current liabilities: | ||
Accounts payable | 466,418 | 402,914 |
Accrued compensation | 257,133 | 267,399 |
Other accrued liabilities | 284,550 | 248,130 |
Line of credit | 0 | 275,055 |
Deferred rent | 30,384 | 30,384 |
Total current liabilities | 1,038,485 | 1,223,882 |
Long-term liability: | ||
Deferred rent | 10,128 | 40,512 |
Total liabilities | 1,048,613 | 1,264,394 |
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 issued and outstanding at March 31, 2018 and 2017 | 23,817,912 | 23,752,131 |
Accumulated (deficit) | (21,614,051) | (21,949,610) |
Total shareholders' equity | 2,203,861 | 1,802,521 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,252,474 | $ 3,066,915 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 20,500 | $ 33,000 |
Inventories, reserve for obsolescence | 21,000 | 50,000 |
Accumulated amortization | $ 238,571 | $ 212,345 |
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 | 10,683,355 | 10,683,355 |
Common stock and additional paid-in capital, shares outstanding | 10,683,355 | 10,683,355 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
NET REVENUE | $ 8,754,279 | $ 8,869,599 |
COST OF REVENUE | 3,747,256 | 4,464,134 |
GROSS PROFIT | 5,007,023 | 4,405,465 |
OPERATING EXPENSES: | ||
Sales and marketing | 2,311,767 | 2,511,451 |
General and administrative | 1,457,342 | 1,455,628 |
Research and development | 842,081 | 1,126,630 |
Total operating expenses | 4,611,190 | 5,093,709 |
OPERATING INCOME (LOSS) | 395,833 | (688,244) |
Interest expense, net | (60,643) | (59,721) |
Other income (expense), net | 369 | 18,672 |
Interest and other income (expense), net | (60,274) | (41,049) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 335,559 | (729,293) |
Provision for income taxes | 0 | 0 |
NET INCOME (LOSS) | $ 335,559 | $ (729,293) |
Net income (loss) per share-basic | $ 0.03 | $ (0.07) |
Net income (loss) per share-diluted | $ 0.03 | $ (0.07) |
Weighted average shares-basic | 10,683,355 | 10,677,080 |
Weighted average shares-diluted | 10,707,126 | 10,677,080 |
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, 2016 | 10,673,225 | ||
Beginning Balance, Amount at Mar. 31, 2016 | $ 23,682,365 | $ (21,220,317) | $ 2,462,048 |
Net loss | (729,293) | (729,293) | |
Compensation expense related to equities | $ 69,766 | 69,766 | |
Common stock issued, Shares | 10,130 | ||
Ending Balance, Shares at Mar. 31, 2017 | 10,683,355 | ||
Ending Balance, Amount at Mar. 31, 2017 | $ 23,752,131 | (21,949,610) | 1,802,521 |
Net loss | 335,559 | 335,559 | |
Compensation expense related to equities | $ 65,781 | 65,781 | |
Ending Balance, Shares at Mar. 31, 2018 | 10,683,355 | ||
Ending Balance, Amount at Mar. 31, 2018 | $ 23,817,912 | $ (21,614,051) | $ 2,203,861 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 335,559 | $ (729,293) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 202,895 | 224,877 |
Stock-based compensation expense related to stock options | 65,781 | 69,766 |
(Recovery from) provision for doubtful accounts, net change | (12,500) | 24,000 |
(Recovery from) inventory obsolescence, net change | (29,000) | (360,000) |
Change in operating assets and liabilities: | ||
Accounts receivable | 92,142 | (226,431) |
Inventories | (279,747) | 962,335 |
Prepaid expenses and other assets | (14,963) | 29,175 |
Accounts payable | 63,504 | 47,024 |
Accrued compensation and other accrued liabilities | (4,230) | (18,565) |
Net cash provided by operating activities | 419,441 | 22,888 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (56,562) | (105,357) |
Patent costs | (43,403) | (27,818) |
Net cash used in investing activities | (99,965) | (133,175) |
Cash flows from financing activities: | ||
Paydowns to credit facility, net change | (275,055) | (112,436) |
Change in restricted cash | 25,000 | (25,000) |
Net cash used in financing activities | (250,055) | (137,436) |
Net increase (decrease) in cash and cash equivalents | 69,421 | (247,723) |
Cash and cash equivalents, beginning of period | 45,117 | 292,840 |
Cash and cash equivalents, end of period | 114,538 | 45,117 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | $ 50,643 | $ 49,980 |
Description of Business
Description of Business | 12 Months Ended |
Mar. 31, 2018 | |
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 $21,614,051 at March 31, 2018. 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 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, 2018 | |
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, 2018 March 31, 2017 Balance, beginning of year $ 33,000 $ 9,000 Provision for (recoveries of) estimated losses (10,982 ) 24,352 Write-off of uncollectible accounts (1,518 ) (352 ) Balance, end of year $ 20,500 $ 33,000 The net accounts receivable balance at March 31, 2018 of $962,639 included no more than 7% from any one customer. The net accounts receivable balance at March 31, 2017 of $1,042,281 included no more than 5% from any one customer. Warranty Accrual. Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 20,000 $ 20,000 Provision for estimated warranty claims (10,741 ) 2,482 Claims made (741 ) (2,482 ) Balance, end of year $ 10,000 $ 20,000 Inventories. March 31, 2018 March 31, 2017 Raw materials $ 941,964 $ 857,345 Finished goods 516,195 321,067 Total gross inventories 1,458,159 1,178,412 Less reserve for obsolescence (21,000 ) (50,000 ) Total net inventories $ 1,437,159 $ 1,128,412 A summary of the activity in our inventory reserve for obsolescence is as follows: Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 50,000 $ 410,000 Provision for estimated obsolescence 3,816 104,700 Write-off of obsolete inventory (32,816 ) (464,700 ) Balance, end of year $ 21,000 $ 50,000 Property and Equipment. Long-Lived Assets. Patents. March 31, 2018 March 31, 2017 Patents issued $ 447,430 $ 424,080 Accumulated amortization (233,390 ) (208,479 ) Patents issued, net of accumulated amortization 214,040 215,601 Patent applications 61,645 42,245 Accumulated amortization (5,181 ) (3,866 ) Patent applications, net of accumulated amortization 56,464 38,379 Total net patents and patent applications $ 270,504 $ 253,980 The expected annual amortization expense related to patents and patent applications as of March 31, 2018, for the next five fiscal years, is as follows: Fiscal Year Amount 2019 $ 24,629 2020 24,629 2021 21,712 2022 20,253 2023 and following 179,281 Total $ 270,504 Other Accrued Liabilities. March 31, 2018 March 31, 2017 Bonus $ 108,000 $ –– Warranty 10,000 20,000 Sales commissions 45,068 88,715 Lease normalization 23,939 31,828 Sales and use tax 17,434 16,505 Marketing fees 7,278 8,466 Professional fees 37,500 47,596 Payroll taxes 24,114 24,577 Miscellaneous 11,217 10,443 Total other accrued liabilities $ 284,550 $ 248,130 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. 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 2018 and 2017 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2018, 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 2018 and 2017 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 2018 and 2017 was $65,781 and $69,766, 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 2018 and 2017 was allocated as follows: Years Ended March 31, 2018 March 31, 2017 Cost of sales $ 2,157 $ 2,648 Sales and marketing 13,679 12,645 General and administrative 45,513 49,333 Research and development 4,432 5,140 Stock-based compensation expense $ 65,781 $ 69,766 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, 2018 March 31, 2017 Net income (loss) $ 335,559 $ (729,293 ) Weighted-average shares — basic 10,683,355 10,677,080 Effect of dilutive potential common shares 23,771 — Weighted-average shares — basic and diluted 10,707,126 10,677,080 Net loss per share — basic and diluted $ 0.03 $ (0.07 ) Antidilutive equity units 983,765 954,286 Recent Accounting Pronouncements. 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 and it has been adopted. 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. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company's lease portfolio as of the adoption date. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
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 200,000 and 285,000 shares of stock were granted during fiscal years 2018 and 2017, respectively. As of March 31, 2018, $135,000 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, 2018 March 31, 2017 Risk-free interest rate 1.8% to 1.9% 1.1% to 1.7% Expected life (in years) 5.0 5.0 Expected volatility 93% to 95% 81% to 87% 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 $64,898 and $474,000, for the fiscal years ended March 31, 2018 and 2017, 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 $65,781 and $69,766 for fiscal years 2018 and 2017, 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, 2018 and 2017 is as follows: STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2016 411,000 $ 0.85 Granted 285,000 0.31 Forfeited/expired (11,000 ) 0.86 BALANCE AT MARCH 31, 2017 685,000 $ 0.63 Granted 200,000 0.45 Forfeited/expired (126,750 ) 0.75 BALANCE AT MARCH 31, 2018 758,250 $ 0.56 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, 2018 is as follows: STOCK OPTIONS OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2016 245,000 $ 0.96 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2017 245,000 $ 0.96 Granted — — Forfeited/expired (20,000 ) 1.00 BALANCE AT MARCH 31, 2018 225,000 $ 0.96 The following table summarizes information about employee stock options outstanding and exercisable at March 31, 2018: 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 $0.30 - $0.74 568,250 3.4 $0.42 226,954 $0.43 $0.82 - $1.01 325,000 0.8 $0.87 275,812 $0.87 $1.15 - $1.50 90,000 0.4 $1.26 83,395 $1.26 983,250 2.2 $0.65 586,161 $0.76 A summary of our RSU activity and related information for equity compensation plans approved by security holders for the fiscal year ended March 31, 2018 is as follows: RSUs OUTSTANDING Number Outstanding Weighted-Average Exercise Price per Share BALANCE AT MARCH 31, 2017 24,286 $ 0.62 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2018 24,286 $ 0.62 The 983,250 options outstanding as of March 31, 2018 are nonqualified stock options. The exercise price of all options granted through March 31, 2018 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, 2018, 62,464 equity units for our common stock remain available for grant under the Plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Effective November 9, 2017, we extended our noncancelable lease agreement through July 31, 2024 for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease includes base rent abatement for the first two months, or $55,583, and $145,000 of leasehold improvements granted by the landlord. At the start of the lease on August 1, 2019, the $145,000 will be recorded on our condensed balance sheets as leasehold improvements and deferred rent. The leasehold improvements will be amortized over the lesser of the lease term or the assets life and the deferred rent will be amortized against rent expense over the lease term. The minimum future lease payment, by fiscal year, as of March 31, 2018 is as follows: Fiscal Year Amount 2019 $ 295,365 2020 322,738 2021 343,167 2022 357,667 2023 372,167 2024 386,667 2025 130,500 Total $ 2,208,271 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 1% during year three. As of March 31, 2018, we had no borrowings from the credit facility and had an additional $561,049 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, 2018, 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 as of March 31, 2018 and 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
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 income 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 income 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 income tax assets and liabilities are expected to be settled or realized. The following is a reconciliation between the effective rate and the federal statutory rate used in determining deferred tax assets: Years Ended March 31, 2018 March 31, 2017 Expected income tax rate $ 103,000 $ (248,000 ) State income taxes, net of federal tax benefit 12,000 (26,000 ) Change in valuation allowance (1,650,000 ) 248,000 Other permanent differences 27,000 26,000 Rate change 1,491,000 –– Other differences 17,000 –– Income tax expense $ –– $ –– The components of the net accumulated deferred income tax asset (liability) are as follows: Years Ended March 31, 2018 March 31, 2017 Other deferred assets $ 45,000 $ 99,000 Valuation allowance (45,000 ) (99,000 ) Current deferred tax assets –– –– Credits and net operating loss carryforwards 3,003,000 4,775,000 Valuation allowance (3,003,000 ) (4,775,000 ) Long-term deferred tax assets –– –– Total deferred tax assets –– –– Valuation allowance –– –– Long-term deferred tax liabilities –– –– Total deferred tax liabilities –– –– Net deferred tax assets (liabilities) $ –– $ –– The primary components of our deferred tax assets are describe below: Years Ended March 31, 2018 March 31, 2017 Differences in reporting long-term assets $ 45,000 $ 99,000 Credits and net operating loss carryforwards 3,003,000 4,775,000 Less valuation allowance (3,048,000 ) (4,874,000 ) Total deferred tax assets $ –– $ –– In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which net operating losses and reversal of timing differences may offset taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. The reduced deferred tax assets and valuation allowance at March 31, 2018 primarily reflects the impact of complying with the Tax Cuts and Jobs Act of 2017. As of March 31, 2018, we had approximately $11.7 million of net operating loss carryovers for tax purposes. Additionally, we have approximately $239,000 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 the fiscal year ended March 31, 2019, net operating loss of approximately $1,8 million will expire if sufficient taxable income is not available to use it. In fiscal years ended after March 31, 2019, net operating losses expire at various dates through March 31, 2037. Our net operating loss carryovers at March 31, 2018 include $455,000 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, 2018 | |
Major Customers/Suppliers | |
Major Customers/Suppliers | We depend on sales that are generated from hospitals’ ongoing usage of AEM surgical instruments. In fiscal year 2018, 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 ATL Technology, LLC who accounted for approximately 23% of our purchases in fiscal year 2018. |
Defined Contribution Employee B
Defined Contribution Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2018 | |
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 have completed at least three months of full-time continuous service and 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, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | We paid consulting fees of $73,195 and $79,167 to an entity owned by one of our directors in fiscal years 2018 and 2017, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 | |
Accounting Policies [Abstract] | |
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. 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, 2018 March 31, 2017 Balance, beginning of year $ 33,000 $ 9,000 Provision for (recoveries of) estimated losses (10,982 ) 24,352 Write-off of uncollectible accounts (1,518 ) (352 ) Balance, end of year $ 20,500 $ 33,000 The net accounts receivable balance at March 31, 2018 of $962,639 included no more than 7% from any one customer. The net accounts receivable balance at March 31, 2017 of $1,042,281 included no more than 5% from any one customer. |
Warranty Accrual | Warranty Accrual. Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 20,000 $ 20,000 Provision for estimated warranty claims (10,741 ) 2,482 Claims made (741 ) (2,482 ) Balance, end of year $ 10,000 $ 20,000 |
Inventories | Inventories. March 31, 2018 March 31, 2017 Raw materials $ 941,964 $ 857,345 Finished goods 516,195 321,067 Total gross inventories 1,458,159 1,178,412 Less reserve for obsolescence (21,000 ) (50,000 ) Total net inventories $ 1,437,159 $ 1,128,412 A summary of the activity in our inventory reserve for obsolescence is as follows: Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 50,000 $ 410,000 Provision for estimated obsolescence 3,816 104,700 Write-off of obsolete inventory (32,816 ) (464,700 ) Balance, end of year $ 21,000 $ 50,000 |
Property and Equipment | Property and Equipment. |
Long-Lived Assets | Long-Lived Assets. |
Patents | Patents. March 31, 2018 March 31, 2017 Patents issued $ 447,430 $ 424,080 Accumulated amortization (233,390 ) (208,479 ) Patents issued, net of accumulated amortization 214,040 215,601 Patent applications 61,645 42,245 Accumulated amortization (5,181 ) (3,866 ) Patent applications, net of accumulated amortization 56,464 38,379 Total net patents and patent applications $ 270,504 $ 253,980 The expected annual amortization expense related to patents and patent applications as of March 31, 2018, for the next five fiscal years, is as follows: Fiscal Year Amount 2019 $ 24,629 2020 24,629 2021 21,712 2022 20,253 2023 and following 179,281 Total $ 270,504 |
Other Accrued Liabilities | Other Accrued Liabilities. March 31, 2018 March 31, 2017 Bonus $ 108,000 $ –– Warranty 10,000 20,000 Sales commissions 45,068 88,715 Lease normalization 23,939 31,828 Sales and use tax 17,434 16,505 Marketing fees 7,278 8,466 Professional fees 37,500 47,596 Payroll taxes 24,114 24,577 Miscellaneous 11,217 10,443 Total other accrued liabilities $ 284,550 $ 248,130 |
Income Taxes | 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 | Revenue Recognition. |
Sales Taxes | Sales Taxes. |
Research and Development Expenses | Research and Development Expenses |
Advertising Costs | Advertising Costs. |
Stock-Based Compensation | 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 2018 and 2017 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2018, 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 2018 and 2017 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 2018 and 2017 was $65,781 and $69,766, 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 2018 and 2017 was allocated as follows: Years Ended March 31, 2018 March 31, 2017 Cost of sales $ 2,157 $ 2,648 Sales and marketing 13,679 12,645 General and administrative 45,513 49,333 Research and development 4,432 5,140 Stock-based compensation expense $ 65,781 $ 69,766 |
Segment Reporting | Segment Reporting. |
Basic and Diluted Income per Common Share | 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, 2018 March 31, 2017 Net income (loss) $ 335,559 $ (729,293 ) Weighted-average shares — basic 10,683,355 10,677,080 Effect of dilutive potential common shares 23,771 — Weighted-average shares — basic and diluted 10,707,126 10,677,080 Net loss per share — basic and diluted $ 0.03 $ (0.07 ) Antidilutive equity units 983,765 954,286 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. 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 and it has been adopted. 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. However, the ultimate impact of adopting ASU 2016-02 will depend on the Company's lease portfolio as of the adoption date. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of the activity in allowance for doubtful accounts | Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 33,000 $ 9,000 Provision for (recoveries of) estimated losses (10,982 ) 24,352 Write-off of uncollectible accounts (1,518 ) (352 ) Balance, end of year $ 20,500 $ 33,000 |
Summary of warranty claims activity, included in other accrued liabilities | Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 20,000 $ 20,000 Provision for estimated warranty claims (10,741 ) 2,482 Claims made (741 ) (2,482 ) Balance, end of year $ 10,000 $ 20,000 |
Schedule of inventory | March 31, 2018 March 31, 2017 Raw materials $ 941,964 $ 857,345 Finished goods 516,195 321,067 Total gross inventories 1,458,159 1,178,412 Less reserve for obsolescence (21,000 ) (50,000 ) Total net inventories $ 1,437,159 $ 1,128,412 |
Summary of the activity in inventory reserve for obsolescence | Years Ended March 31, 2018 March 31, 2017 Balance, beginning of year $ 50,000 $ 410,000 Provision for estimated obsolescence 3,816 104,700 Write-off of obsolete inventory (32,816 ) (464,700 ) Balance, end of year $ 21,000 $ 50,000 |
Summary of patents | March 31, 2018 March 31, 2017 Patents issued $ 447,430 $ 424,080 Accumulated amortization (233,390 ) (208,479 ) Patents issued, net of accumulated amortization 214,040 215,601 Patent applications 61,645 42,245 Accumulated amortization (5,181 ) (3,866 ) Patent applications, net of accumulated amortization 56,464 38,379 Total net patents and patent applications $ 270,504 $ 253,980 |
Schedule of expected annual amortization expense related to patents and patent applications for the next five fiscal years | Fiscal Year Amount 2019 $ 24,629 2020 24,629 2021 21,712 2022 20,253 2023 and following 179,281 Total $ 270,504 |
Schedule of other accrued liabilities | March 31, 2018 March 31, 2017 Bonus $ 108,000 $ –– Warranty 10,000 20,000 Sales commissions 45,068 88,715 Lease normalization 23,939 31,828 Sales and use tax 17,434 16,505 Marketing fees 7,278 8,466 Professional fees 37,500 47,596 Payroll taxes 24,114 24,577 Miscellaneous 11,217 10,443 Total other accrued liabilities $ 284,550 $ 248,130 |
Schedule of stock-based compensation expense related to employee stock options | Years Ended March 31, 2018 March 31, 2017 Cost of sales $ 2,157 $ 2,648 Sales and marketing 13,679 12,645 General and administrative 45,513 49,333 Research and development 4,432 5,140 Stock-based compensation expense $ 65,781 $ 69,766 |
Schedule of calculation of basic and diluted net income (loss) per share | Years Ended March 31, 2018 March 31, 2017 Net income (loss) $ 335,559 $ (729,293 ) Weighted-average shares — basic 10,683,355 10,677,080 Effect of dilutive potential common shares 23,771 — Weighted-average shares — basic and diluted 10,707,126 10,677,080 Net loss per share — basic and diluted $ 0.03 $ (0.07 ) Antidilutive equity units 983,765 954,286 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Summary of assumptions for employee stock options | Years Ended March 31, 2018 March 31, 2017 Risk-free interest rate 1.8% to 1.9% 1.1% to 1.7% Expected life (in years) 5.0 5.0 Expected volatility 93% to 95% 81% to 87% 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 $0.30 - $0.74 568,250 3.4 $0.42 226,954 $0.43 $0.82 - $1.01 325,000 0.8 $0.87 275,812 $0.87 $1.15 - $1.50 90,000 0.4 $1.26 83,395 $1.26 983,250 2.2 $0.65 586,161 $0.76 |
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, 2017 24,286 $ 0.62 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2018 24,286 $ 0.62 |
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, 2016 411,000 $ 0.85 Granted 285,000 0.31 Forfeited/expired (11,000 ) 0.86 BALANCE AT MARCH 31, 2017 685,000 $ 0.63 Granted 200,000 0.45 Forfeited/expired (126,750 ) 0.75 BALANCE AT MARCH 31, 2018 758,250 $ 0.56 |
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, 2016 245,000 $ 0.96 Granted — — Forfeited/expired — — BALANCE AT MARCH 31, 2017 245,000 $ 0.96 Granted — — Forfeited/expired (20,000 ) 1.00 BALANCE AT MARCH 31, 2018 225,000 $ 0.96 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future lease payments, by fiscal year | Fiscal Year Amount 2019 $ 295,365 2020 322,738 2021 343,167 2022 357,667 2023 372,167 2024 386,667 2025 130,500 Total $ 2,208,271 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
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, 2018 March 31, 2017 Expected income tax rate $ 103,000 $ (248,000 ) State income taxes, net of federal tax benefit 12,000 (26,000 ) Change in valuation allowance (1,650,000 ) 248,000 Other permanent differences 27,000 26,000 Rate change 1,491,000 –– Other differences 17,000 –– Income tax expense $ –– $ –– |
Schedule of components of the deferred tax asset | The components of the net accumulated deferred income tax asset (liability) are as follows: Years Ended March 31, 2018 March 31, 2017 Other deferred assets $ 45,000 $ 99,000 Valuation allowance (45,000 ) (99,000 ) Current deferred tax assets –– –– Credits and net operating loss carryforwards 3,003,000 4,775,000 Valuation allowance (3,003,000 ) (4,775,000 ) Long-term deferred tax assets –– –– Total deferred tax assets –– –– Valuation allowance –– –– Long-term deferred tax liabilities –– –– Total deferred tax liabilities –– –– Net deferred tax assets (liabilities) $ –– $ –– The primary components of our deferred tax assets are describe below: Years Ended March 31, 2018 March 31, 2017 Differences in reporting long-term assets $ 45,000 $ 99,000 Credits and net operating loss carryforwards 3,003,000 4,775,000 Less valuation allowance (3,048,000 ) (4,874,000 ) Total deferred tax assets $ –– $ –– |
Description of Business (Detail
Description of Business (Details Narrative) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 21,614,051 | $ 21,949,610 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Balance, beginning of year | $ 33,000 | $ 9,000 |
Provision for (recoveries of) estimated losses | (10,982) | 24,352 |
Write-off of uncollectible accounts | (1,518) | (352) |
Balance, end of year | $ 20,500 | $ 33,000 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Balance, beginning of year | $ 20,000 | $ 20,000 |
Provision for estimated warranty claims | (10,741) | 2,482 |
Claims made | (741) | (2,482) |
Balance, end of year | $ 10,000 | $ 20,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Details 2) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Accounting Policies [Abstract] | ||
Raw materials | $ 941,964 | $ 857,345 |
Finished goods | 516,195 | 321,067 |
Total gross inventories | 1,458,159 | 1,178,412 |
Less reserve for obsolescence | (21,000) | (50,000) |
Total net inventories | $ 1,437,159 | $ 1,128,412 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details 3) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Balance, beginning of year | $ 50,000 | $ 410,000 |
Provision for estimated obsolescence | 3,816 | 104,700 |
Write-off of obsolete inventory | (32,816) | (464,700) |
Balance, end of year | $ 21,000 | $ 50,000 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details 4) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Accumulated amortization | $ (238,571) | $ (212,345) |
Total net patents and patent applications | 270,504 | 253,980 |
Patents [Member] | ||
Patents issued | 447,430 | 424,080 |
Accumulated amortization | (233,390) | (208,479) |
Patents issued, net of accumulated amortization | 214,040 | 215,601 |
Patent applications | 61,645 | 42,245 |
Accumulated amortization | (5,181) | (3,866) |
Patent applications, net of accumulated amortization | 56,464 | 38,379 |
Total net patents and patent applications | $ 270,504 | $ 253,980 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details 5) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Expected annual amortization expense related to patents and patent applications | ||
2,019 | $ 24,629 | |
2,020 | 24,629 | |
2,021 | 21,712 | |
2,022 | 20,253 | |
2023 and following | 179,281 | |
Total | $ 270,504 | $ 253,980 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details 6) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Accounting Policies [Abstract] | ||
Bonus | $ 108,000 | $ 0 |
Warranty | 10,000 | 20,000 |
Sales commissions | 45,068 | 88,715 |
Lease normalization | 23,939 | 31,828 |
Sales and use tax | 17,434 | 16,505 |
Marketing fees | 7,278 | 8,466 |
Professional fees | 37,500 | 47,596 |
Payroll taxes | 24,114 | 24,577 |
Miscellaneous | 11,217 | 10,443 |
Total other accrued liabilities | $ 284,550 | $ 248,130 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details 7) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based compensation expense related to grants of employee stock options | $ 65,781 | $ 69,766 |
Cost Of Sales [Member] | ||
Stock-based compensation expense related to grants of employee stock options | 2,157 | 2,648 |
Selling And Marketing Expense [Member] | ||
Stock-based compensation expense related to grants of employee stock options | 13,679 | 12,645 |
General And Administrative Expense [Member] | ||
Stock-based compensation expense related to grants of employee stock options | 45,513 | 49,333 |
Research And Development Expense [Member] | ||
Stock-based compensation expense related to grants of employee stock options | $ 4,432 | $ 5,140 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details 8) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Net income (loss) | $ 335,559 | $ (729,293) |
Weighted-average shares - basic | 10,683,355 | 10,677,080 |
Effect of dilutive potential common shares | 23,771 | |
Weighted-average shares - basic and diluted | 10,707,126 | 10,677,080 |
Net loss per share-basic and diluted | $ 0.03 | $ (0.07) |
Antidilutive equity units | 983,765 | 954,286 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 962,639 | $ 1,042,281 |
Depreciation expense | 176,016 | 198,149 |
Stock based compensation | $ 65,781 | $ 69,766 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Risk-free interest rate, minimum | 1.80% | 1.10% |
Risk-free interest rate, maximum | 1.90% | 1.70% |
Expected life | 5 years | 5 years |
Expected volatility, minimum | 93.00% | 81.00% |
Expected volatility, maximum | 95.00% | 87.00% |
Expected dividend | 0.00% | 0.00% |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Compensation Plans Approved [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at the beginning of the period | 685,000 | 411,000 |
Granted | 200,000 | 285,000 |
Forfeited/expired | (126,750) | (11,000) |
Balance at the end of the period | 758,250 | 685,000 |
Balance at the beginning of the period | $ 0.63 | $ 0.85 |
Granted | 0.45 | 0.31 |
Forfeited/expired | 0.75 | 0.86 |
Balance at the end of the period | $ 0.56 | $ 0.63 |
Equity Compensation Plans Not Approved [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at the beginning of the period | 245,000 | 245,000 |
Granted | 0 | 0 |
Forfeited/expired | (20,000) | 0 |
Balance at the end of the period | 225,000 | 245,000 |
Balance at the beginning of the period | $ 0.96 | $ 0.96 |
Granted | 0 | 0 |
Forfeited/expired | 1 | 0 |
Balance at the end of the period | $ 0.96 | $ 0.96 |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - Employee Stock Option [Member] | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 983,250 |
Weighted-Average Remaining Contractual Life | 2 years 2 months 12 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.65 |
Number Exercisable | shares | 586,161 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.76 |
$0.30 To $0.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 568,250 |
Weighted-Average Remaining Contractual Life | 3 years 4 months 24 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.42 |
Number Exercisable | shares | 226,954 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.43 |
$0.82 To $1.01 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 325,000 |
Weighted-Average Remaining Contractual Life | 9 months 18 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.87 |
Number Exercisable | shares | 275,812 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.87 |
$1.15 To $1.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 90,000 |
Weighted-Average Remaining Contractual Life | 4 months 24 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 1.26 |
Number Exercisable | shares | 83,395 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 1.26 |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) - Restricted Stock Units R S U [Member] | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Balance at the beginning of the period | shares | 24,286 |
Granted | shares | 0 |
Forfeited/expired | shares | 0 |
Balance at the end of the period | shares | 24,286 |
Balance at the beginning of the period | $ / shares | $ 0.62 |
Granted | $ / shares | 0 |
Forfeited/expired | $ / shares | 0 |
Balance at the end of the period | $ / shares | $ 0.62 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee stock options granted | 200,000 | 285,000 |
Unrecognized compensation costs | $ 135,000 | |
Fair value of stock options | 64,898 | $ 474,000 |
Stock-based compensation, net of the effect of forfeitures | $ 65,781 | $ 69,766 |
Employee Stock Option [Member] | ||
Nonqualified stock options outstanding | 983,250 |
Commitments and Contingencies37
Commitments and Contingencies (Details) | Mar. 31, 2018USD ($) |
Minimum future lease payments, by fiscal year | |
2,019 | $ 295,365 |
2,020 | 322,738 |
2,021 | 343,167 |
2,022 | 357,667 |
2,023 | 372,167 |
2,024 | 386,667 |
2,025 | 130,500 |
Total | $ 2,208,271 |
Commitments and Contingencies38
Commitments and Contingencies (Details Narrative) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Line of credit | $ 0 | $ 275,055 |
Employee benefit obligation | 0 | $ 0 |
Additional current borrowing capacity available to borrow | $ 561,049 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | $ 103,000 | $ (248,000) |
State income taxes, net of federal tax benefit | 12,000 | (26,000) |
Change in valuation allowance | (1,650,000) | 248,000 |
Other permanent differences | 27,000 | 26,000 |
Rate change | 1,491,000 | 0 |
Other differences | 17,000 | 0 |
Income tax expense | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Other deferred assets | $ 45,000 | $ 99,000 |
Valuation allowance | (45,000) | (99,000) |
Current deferred tax assets | 0 | 0 |
Credits and net operating loss carryforwards | 3,003,000 | 4,775,000 |
Valuation allowance | (3,003,000) | (4,775,000) |
Long-term deferred tax assets | 0 | 0 |
Total deferred tax assets | 0 | 0 |
Valuation allowance | 0 | 0 |
Long-term deferred tax liabilities | 0 | 0 |
Total deferred tax liabilities | 0 | 0 |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Differences in reporting long-term assets | $ 45,000 | $ 99,000 |
Credits and net operating loss carryforwards | 3,003,000 | 4,775,000 |
Less valuation allowance | (3,003,000) | (4,775,000) |
Total deferred tax assets | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryovers | $ 11,700,000 |
Operating loss carryforward expiration | Mar. 31, 2037 |
Research and development tax credits | $ 239,000 |
Major Customers_Suppliers (Deta
Major Customers/Suppliers (Details) | 12 Months Ended |
Dec. 31, 2018 | |
ATL Technology, LLC | |
Major Customers and Suppliers [Line Items] | |
Concentration percentage | 23.00% |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Consulting fees paid | $ 73,195 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees paid | $ 79,167 |