Encision (ECIA) 10-Q 15 Nov 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Sep. 30, 2021	Oct. 31, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--03-31
Entity File Number	001-11789
Entity Registrant Name	ENCISION INC.
Entity Central Index Key	0000930775
Entity Tax Identification Number	84-1162056
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	6797 Winchester Circle
Entity Address, City or Town	Boulder
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80301
City Area Code	(303)
Local Phone Number	444-2600
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	ECIA
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,676,501

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Current assets:
Cash	$ 1,604,942	$ 1,474,339
Accounts receivable, net of allowance for doubtful accounts of $0 at September 30, 2021 and $35,000 at March 31, 2021	1,052,196	1,024,370
Inventories, net of reserve for obsolescence of $39,000 at September 30, 2021 and $70,000 at March 31, 2021	1,521,499	1,445,134
Prepaid expenses and other assets	95,604	154,151
Total current assets	4,274,241	4,097,994
Equipment:
Furniture, fixtures and equipment, at cost	2,698,486	2,695,297
Accumulated depreciation	(2,451,585)	(2,429,580)
Equipment, net	246,901	265,717
Right of use asset	925,583	1,060,971
Patents, net of accumulated amortization of $255,260 at September 30, 2021 and $317,821 at March 31, 2021	198,012	213,368
Other assets	26,146	20,496
TOTAL ASSETS	5,670,883	5,658,546
Current liabilities:
Accounts payable	527,883	389,088
Secured notes	18,400	20,397
Accrued compensation	204,800	181,686
Other accrued liabilities	442,526	282,102
Accrued lease liability	317,957	302,978
Total current liabilities	1,511,566	1,176,251
Long-term liability:
Secured notes	215,580	220,263
Accrued lease liability	764,651	926,808
Unsecured promissory note		533,118
Total liabilities	2,491,797	2,856,440
Shareholders’ equity:
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 11,676,501 issued and outstanding at September 30, 2021 and 11,582,641 issued and outstanding at March 31,2021	24,290,085	24,265,831
Accumulated (deficit)	(21,110,999)	(21,463,725)
Total shareholders’ equity	3,179,086	2,802,106
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 5,670,883	$ 5,658,546

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 35,000
Inventories, reserve for obsolescence	39,000	70,000
Accumulated amortization	$ 255,260	$ 317,821
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	11,676,501	11,582,641
Common stock and additional paid-in capital, shares outstanding	11,676,501	11,582,641

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
NET REVENUE:
Total revenue	$ 2,112,845	$ 1,880,408	$ 4,121,289	$ 3,227,975
COST OF REVENUE:
Total cost of revenue	1,168,270	892,813	2,149,747	1,593,505
GROSS PROFIT	944,575	987,595	1,971,542	1,634,470
OPERATING EXPENSES:
Sales and marketing	561,545	564,617	1,090,019	932,265
General and administrative	340,485	338,541	667,205	625,625
Research and development	213,162	162,455	390,037	304,062
Total operating expenses	1,115,192	1,065,613	2,147,261	1,861,952
OPERATING (LOSS)	(170,617)	(78,018)	(175,719)	(227,482)
Interest expense, net	(1,806)	(17,154)	(3,612)	(34,633)
Extinguishment of debt income	533,118		533,118
Other income (expense), net	(1,128)	103,958	(1,061)	131,596
Interest expense, extinguishment of debt income and other income (expense), net	530,184	86,804	528,445	96,963
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES	359,567	8,786	352,726	(130,519)
Provision for income taxes
NET INCOME (LOSS)	$ 359,567	$ 8,786	$ 352,726	$ (130,519)
Net income (loss) per share—basic and diluted	$ 0.03	$ 0	$ 0.03	$ (0.01)
Weighted average shares—basic	11,610,958	11,582,641	11,594,619	11,582,641
Weighted average shares—diluted	11,819,567	11,745,161	11,776,137	11,582,641
Product [Member]
NET REVENUE:
Total revenue	$ 1,895,196	$ 1,781,260	$ 3,613,600	$ 3,094,139
COST OF REVENUE:
Total cost of revenue	1,061,884	841,381	1,900,311	1,524,729
GROSS PROFIT	833,312	939,879	1,713,289	1,569,410
OPERATING EXPENSES:
OPERATING (LOSS)	(281,880)	(125,734)	(433,972)	(292,542)
Service [Member]
NET REVENUE:
Total revenue	217,649	99,148	507,689	133,836
COST OF REVENUE:
Total cost of revenue	106,386	51,432	249,436	68,776
GROSS PROFIT	111,263	47,716	258,253	65,060
OPERATING EXPENSES:
OPERATING (LOSS)	$ 111,263	$ 47,716	$ 258,253	$ 65,060

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows provided by (used in) operating activities:
Net income (loss)	$ 352,726	$ (130,519)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Extinguishment of debt income	(533,118)
Depreciation and amortization	53,595	47,323
Stock-based compensation expense related to stock options	15,728	16,530
(Recovery from) doubtful accounts, net change	(35,000)	(31,000)
Provision for (recovery from) inventory obsolescence, net change	(31,000)	23,000
Other income from release of accounts payable		(56,435)
Change in operating assets and liabilities:
Right of use asset, net	(11,790)	72,542
Accounts receivable	7,174	(126,046)
Inventories	(45,365)	45,576
Prepaid expenses and other assets	52,897	810
Accounts payable	138,795	(91,159)
Accrued compensation and other accrued liabilities	183,538	66,514
Net cash provided by (used in) operating activities	148,180	(162,864)
Cash flows (used in) investing activities:
Acquisition of property and equipment	(11,100)	(363)
Patent costs	(8,323)	(9,928)
Net cash (used in) investing activities	(19,423)	(10,291)
Cash flows from financing activities:
Net proceeds from options exercised	8,526
Borrowings from credit facility, net change		46,008
(Paydown of) secured notes	(6,680)
Unsecured promissory note		598,567
EIDL loan		150,640
Net cash generated by financing activities	1,846	795,215
Net increase in cash	130,603	622,060
Cash, beginning of fiscal year	1,474,339	385,132
Cash, end of fiscal quarter	1,604,942	1,007,192
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$ 3,612	$ 34,633

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	Note 1. 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 $ 21,110,999 352,726 8,526 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. We have been actively monitoring the novel coronavirus (“COVID-19”) situation and its impact globally. Our production facilities continued to operate during the year as they had prior to the COVID-19 pandemic with minimal change, other than for enhanced safety measures intended to prevent the spread of the virus. The remote working arrangements and travel restrictions imposed by various governments had limited impact on our ability to maintain operations during the year, as our manufacturing operations have generally been exempted from stay-at-home orders. However, we cannot predict the impact of the progression of the COVID-19 pandemic on future results due to a variety of factors, including the continued good health of our employees, the ability of suppliers to continue to operate and deliver, our ability and our customers to maintain operations, continued access to transportation resources, the changing needs and priorities of customers, any further government and/or public actions taken in response to the pandemic and ultimately the length of the pandemic. We will continue to closely monitor the COVID-19 pandemic in order to ensure the safety of our people and our ability to serve our customers and patients worldwide.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2. 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 250,000 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, 2021 of $ 1,052,196 1,024,370 Inventories Schedule of inventory September 30, 2021 March 31, 2021 Raw materials $ 1,199,069 $ 1,038,094 Finished goods 361,430 477,040 Total gross inventories 1,560,499 1,515,134 Less reserve for obsolescence (39,000 ) (70,000 ) Total net inventories $ 1,521,499 $ 1,445,134 Property and Equipment 15,039 29,916 13,859 32,277 Long-Lived Assets Patents Income Taxes no no Revenue Recognition Deferred Revenue. 250,000 0 .Research and Development Expense Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and six months ended September 30, 2021 was $ 7,388 15,728 8,997 16,530 Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended September 30, 2021 Six Months Ended September 30, 2021 Product Service Total Product Service Total Net revenue $ 1,895,196 $ 217,649 $ 2,112,845 $ 3,613,600 $ 507,689 $ 4,121,289 Cost of revenue 1,061,884 106,386 1,168,270 1,900,311 249,436 2,149,747 Gross profit 833,312 111,263 944,575 1,713,289 258,253 1,971,542 Operating income (loss) (281,880 ) 111,263 (170,617 ) (433,972 ) 258,253 (175,719 ) Depreciation and amortization 26,811 — 26,811 53,595 — 53,595 Patent and capital expenditures 5,142 — 5,142 19,423 — 19,423 Equipment and patents, net $ 444,913 $ — $ 444,913 $ 444,913 $ — $ 444,913 Three Months Ended September 30, 2020 Six Months Ended September 30, 2020 Product Service Total Product Service Total Net revenue $ 1,781,260 $ 99,148 $ 1,880,408 $ 3,094,139 $ 133,836 $ 3,227,975 Cost of revenue 841,381 51,432 892,813 1,524,729 68,776 1,593,505 Gross profit 939,879 47,716 987,595 1,569,410 65,060 1,634,470 Operating income (loss) (125,734 ) 47,716 (78,018 ) (292,542 ) 65,060 (227,482 ) Depreciation and amortization 25,784 — 25,784 47,323 — 47,323 Patent and capital expenditures 4,334 — 4,334 10,291 — 10,291 Equipment and patents, net $ 479,085 $ — $ 479,085 $ 479,085 $ — $ 479,085 Recently Issued Accounting Pronouncements

BASIC AND DILUTED INCOME AND LO

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	6 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	Note 3. 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 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 income (loss) per share: Schedule of basic and diluted net loss per share: Three Months Ended Six Months Ended September 30, 2020 September 30, 2021 Net income (loss) $ 359,567 $ 8,786 $ 352,726 $ (130,519 ) Weighted-average basic shares outstanding 11,610,958 11,582,641 11,594,619 11,582,641 Effect of dilutive securities 208,609 162,520 181,518 — Weighted-average diluted shares 11,819,567 11,745,161 11,776,137 11,582,641 Basic net income (loss) per share $ 0.03 $ 0.00 $ 0.03 $ (0.01 ) Diluted net income (loss) per share $ 0.03 $ 0.00 $ 0.03 $ (0.01 ) Antidilutive employee stock options 697,391 913,480 724,482 1,076,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Note 4. COMMITMENTS AND CONTINGENCIES We have a noncancelable lease agreement for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease expires October 31, 2024. 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 either finance or operating leases under previous accounting standards and disclosing key information about leasing arrangements. We adopted Topic 842 on April 1, 2019, using the alternative modified transition method, which requires a cumulative effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. There was no cumulative effect adjustment recorded on April 1, 2019. The primary impact for us was the balance sheet recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases as a lessee. We determine if an arrangement contains a lease at inception. We currently do not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases do not provide an implicit rate. Lease expense is recognized on a straight-line basis over the lease term. The minimum future lease payment, by fiscal year, as of September 30, 2021 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 $ 181,250 2023 372,167 2024 386,667 2025 232,139 Total $ 1,172,223 During January 2021, we canceled our relationship with Crestmark Bank. We had no borrowings and incurred a $20,000 exit fee. On August 4, 2020, we received $ 150,000 150,000 3.75 August 1, 2050 During January 2021, we entered into a note agreement with U.S. Bank for $92,000. The note is for five years at a 5% interest rate and the proceeds were used to purchase equipment. The note is secured by the equipment. On February 8, 2021, we entered into an unsecured promissory note under the PPP for a principal amount of $ 533,118 598,567 598,567 598,567 533,118 The minimum future EIDL payment, by fiscal year, as of September 30, 2021 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 141,433 Total $ 154,520 During January 2021, we entered into a note agreement with U.S. Bank for $92,000. The note is for five years at a 5% interest rate and the proceeds were used to purchase equipment. The note is secured by the equipment. The minimum future principal U.S. Bank payment, by fiscal year, as of September 30, 2021 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 18,400 2023 18,400 2024 18,400 2025 18,400 2026 5,860 Total $ 79,460 Aside from the operating lease, EIDL loan and U.S. Bank loan, 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, 2021. FDA inspections are conducted periodically at the discretion of the FDA. Our latest inspection by the FDA occurred in October 2019.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Sep. 30, 2021
Equity [Abstract]
SHARE-BASED COMPENSATION	Note 5. 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 for the three and six months ended September 30, 2021 and 2020, which was allocated as follows: Schedule of summarizes stock-based compensation Three Months Ended Six Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cost of sales $ (387 ) $ 1,116 $ 531 $ 1,834 Sales and marketing 1,516 1,277 2,734 2,435 General and administrative 5,797 5,999 11,455 11,170 Research and development 462 605 1,008 1,091 Stock-based compensation expense $ 7,388 $ 8,997 $ 15,728 $ 16,530 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 10,000 93,860 41,140 70,000 12,000 90,000 12,000 As of September 30, 2021, approximately $ 59,000

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	6 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	Note 6. RELATED PARTY TRANSACTION We paid consulting fees of $ 13,600 42,416 14,500 29,103

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Note 7. 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 condensed interim financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2021
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 250,000 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, 2021 of $ 1,052,196 1,024,370
Property and Equipment	Inventories Schedule of inventory September 30, 2021 March 31, 2021 Raw materials $ 1,199,069 $ 1,038,094 Finished goods 361,430 477,040 Total gross inventories 1,560,499 1,515,134 Less reserve for obsolescence (39,000 ) (70,000 ) Total net inventories $ 1,521,499 $ 1,445,134 Property and Equipment 15,039 29,916 13,859 32,277
Long-Lived Assets	Long-Lived Assets
Patents	Patents
Income Taxes	Income Taxes no no
Revenue Recognition	Revenue Recognition Deferred Revenue. 250,000 0
.Research and Development Expense	.Research and Development Expense
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and six months ended September 30, 2021 was $ 7,388 15,728 8,997 16,530
Segment Reporting	Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended September 30, 2021 Six Months Ended September 30, 2021 Product Service Total Product Service Total Net revenue $ 1,895,196 $ 217,649 $ 2,112,845 $ 3,613,600 $ 507,689 $ 4,121,289 Cost of revenue 1,061,884 106,386 1,168,270 1,900,311 249,436 2,149,747 Gross profit 833,312 111,263 944,575 1,713,289 258,253 1,971,542 Operating income (loss) (281,880 ) 111,263 (170,617 ) (433,972 ) 258,253 (175,719 ) Depreciation and amortization 26,811 — 26,811 53,595 — 53,595 Patent and capital expenditures 5,142 — 5,142 19,423 — 19,423 Equipment and patents, net $ 444,913 $ — $ 444,913 $ 444,913 $ — $ 444,913 Three Months Ended September 30, 2020 Six Months Ended September 30, 2020 Product Service Total Product Service Total Net revenue $ 1,781,260 $ 99,148 $ 1,880,408 $ 3,094,139 $ 133,836 $ 3,227,975 Cost of revenue 841,381 51,432 892,813 1,524,729 68,776 1,593,505 Gross profit 939,879 47,716 987,595 1,569,410 65,060 1,634,470 Operating income (loss) (125,734 ) 47,716 (78,018 ) (292,542 ) 65,060 (227,482 ) Depreciation and amortization 25,784 — 25,784 47,323 — 47,323 Patent and capital expenditures 4,334 — 4,334 10,291 — 10,291 Equipment and patents, net $ 479,085 $ — $ 479,085 $ 479,085 $ — $ 479,085
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of inventory	Schedule of inventory September 30, 2021 March 31, 2021 Raw materials $ 1,199,069 $ 1,038,094 Finished goods 361,430 477,040 Total gross inventories 1,560,499 1,515,134 Less reserve for obsolescence (39,000 ) (70,000 ) Total net inventories $ 1,521,499 $ 1,445,134
Schedule of service performs electrical engineering activities for external entities	Schedule of service performs electrical engineering activities for external entities Three Months Ended September 30, 2021 Six Months Ended September 30, 2021 Product Service Total Product Service Total Net revenue $ 1,895,196 $ 217,649 $ 2,112,845 $ 3,613,600 $ 507,689 $ 4,121,289 Cost of revenue 1,061,884 106,386 1,168,270 1,900,311 249,436 2,149,747 Gross profit 833,312 111,263 944,575 1,713,289 258,253 1,971,542 Operating income (loss) (281,880 ) 111,263 (170,617 ) (433,972 ) 258,253 (175,719 ) Depreciation and amortization 26,811 — 26,811 53,595 — 53,595 Patent and capital expenditures 5,142 — 5,142 19,423 — 19,423 Equipment and patents, net $ 444,913 $ — $ 444,913 $ 444,913 $ — $ 444,913 Three Months Ended September 30, 2020 Six Months Ended September 30, 2020 Product Service Total Product Service Total Net revenue $ 1,781,260 $ 99,148 $ 1,880,408 $ 3,094,139 $ 133,836 $ 3,227,975 Cost of revenue 841,381 51,432 892,813 1,524,729 68,776 1,593,505 Gross profit 939,879 47,716 987,595 1,569,410 65,060 1,634,470 Operating income (loss) (125,734 ) 47,716 (78,018 ) (292,542 ) 65,060 (227,482 ) Depreciation and amortization 25,784 — 25,784 47,323 — 47,323 Patent and capital expenditures 4,334 — 4,334 10,291 — 10,291 Equipment and patents, net $ 479,085 $ — $ 479,085 $ 479,085 $ — $ 479,085

BASIC AND DILUTED INCOME AND _2

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per share:	Schedule of basic and diluted net loss per share: Three Months Ended Six Months Ended September 30, 2020 September 30, 2021 Net income (loss) $ 359,567 $ 8,786 $ 352,726 $ (130,519 ) Weighted-average basic shares outstanding 11,610,958 11,582,641 11,594,619 11,582,641 Effect of dilutive securities 208,609 162,520 181,518 — Weighted-average diluted shares 11,819,567 11,745,161 11,776,137 11,582,641 Basic net income (loss) per share $ 0.03 $ 0.00 $ 0.03 $ (0.01 ) Diluted net income (loss) per share $ 0.03 $ 0.00 $ 0.03 $ (0.01 ) Antidilutive employee stock options 697,391 913,480 724,482 1,076,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Sep. 30, 2021
Lease Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of principal U.S. Bank payment	Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 $ 181,250 2023 372,167 2024 386,667 2025 232,139 Total $ 1,172,223
E I D L Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of principal U.S. Bank payment	Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 141,433 Total $ 154,520
U S Bank Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of principal U.S. Bank payment	Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 18,400 2023 18,400 2024 18,400 2025 18,400 2026 5,860 Total $ 79,460

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Schedule of summarizes stock-based compensation	Schedule of summarizes stock-based compensation Three Months Ended Six Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cost of sales $ (387 ) $ 1,116 $ 531 $ 1,834 Sales and marketing 1,516 1,277 2,734 2,435 General and administrative 5,797 5,999 11,455 11,170 Research and development 462 605 1,008 1,091 Stock-based compensation expense $ 7,388 $ 8,997 $ 15,728 $ 16,530

ORGANIZATION AND NATURE OF BU_2

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($)	6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 21,110,999		$ 21,463,725
Net income	352,726	$ (130,519)
Stock options exercised	$ 8,526

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Accounting Policies [Abstract]
Raw materials	$ 1,199,069	$ 1,038,094
Finished goods	361,430	477,040
Total gross inventories	1,560,499	1,515,134
Less reserve for obsolescence	(39,000)	(70,000)
Total net inventories	1,521,499	$ 1,445,134
Unrecognized tax benefits	0
Uncertain tax positions	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Product Information [Line Items]
Net revenue	$ 2,112,845	$ 1,880,408	$ 4,121,289	$ 3,227,975
Cost of revenue	1,168,270	892,813	2,149,747	1,593,505
Gross profit	944,575	987,595	1,971,542	1,634,470
Operating income (loss)	(170,617)	(78,018)	(175,719)	(227,482)
Depreciation and amortization	26,811	25,784	53,595	47,323
Patent and capital expenditures	5,142	4,334	19,423	10,291
Equipment and patents, net	444,913	479,085	444,913	479,085
Product [Member]
Product Information [Line Items]
Net revenue	1,895,196	1,781,260	3,613,600	3,094,139
Cost of revenue	1,061,884	841,381	1,900,311	1,524,729
Gross profit	833,312	939,879	1,713,289	1,569,410
Operating income (loss)	(281,880)	(125,734)	(433,972)	(292,542)
Depreciation and amortization	26,811	25,784	53,595	47,323
Patent and capital expenditures	5,142	4,334	19,423	10,291
Equipment and patents, net	444,913	479,085	444,913	479,085
Service [Member]
Product Information [Line Items]
Net revenue	217,649	99,148	507,689	133,836
Cost of revenue	106,386	51,432	249,436	68,776
Gross profit	111,263	47,716	258,253	65,060
Operating income (loss)	111,263	47,716	258,253	65,060
Depreciation and amortization
Patent and capital expenditures
Equipment and patents, net

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2021
Accounting Policies [Abstract]
Federally insured limit	$ 250,000		$ 250,000
Accounts receivable	1,052,196		1,052,196		$ 1,024,370
Depreciation expense	15,039	$ 13,859	29,916	$ 32,277
Deferred revenue	250,000		250,000		$ 0
Stock based compensation	$ 7,388	$ 8,997	$ 15,728	$ 16,530

BASIC AND DILUTED INCOME AND _3

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ 359,567	$ 8,786	$ 352,726	$ (130,519)
Weighted-average basic shares outstanding	11,610,958	11,582,641	11,594,619	11,582,641
Effect of dilutive securities	208,609	162,520	181,518
Weighted-average diluted shares	11,819,567	11,745,161	11,776,137	11,582,641
Basic net income (loss) per share	$ 0.03	$ 0	$ 0.03	$ (0.01)
Diluted net income (loss) per share	$ 0.03	$ 0	$ 0.03	$ (0.01)
Antidilutive employee stock options	697,391	913,480	724,482	1,076,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 181,250
2023	372,167
2024	386,667
2025	232,139
Total	$ 1,172,223

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 1)	Sep. 30, 2021USD ($)
Defined Benefit Plan Disclosure [Line Items]
2022	$ 181,250
2023	372,167
2024	386,667
2025	232,139
Total	1,172,223
E I D L Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
2022
2023	3,091
2024	3,208
2025	3,331
2026	3,457
Thereafter	141,433
Total	$ 154,520

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details 2)	Sep. 30, 2021USD ($)
Defined Benefit Plan Disclosure [Line Items]
2022	$ 181,250
2023	372,167
2024	386,667
2025	232,139
Total	1,172,223
U S Bank Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
2022	18,400
2023	18,400
2024	18,400
2025	18,400
2026	5,860
Total	$ 79,460

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Aug. 04, 2021	Feb. 08, 2021	Aug. 01, 2020	Sep. 30, 2021	Apr. 17, 2020
S B A [Member]
Debt Instrument [Line Items]
Proceed from loan	$ 150,000
E I D L [Member]
Debt Instrument [Line Items]
Principal amount			$ 150,000
Interest rate			3.75%
Debt Instrument, Maturity Date			Aug. 1, 2050
P P P Loan [Member]
Debt Instrument [Line Items]
Principal amount		$ 533,118			$ 598,567
Debt Forgiveness		598,567
Extinguishment of debt income		$ 598,567		$ 533,118

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock-based compensation expense related to grants of employee stock options	$ 7,388	$ 8,997	$ 15,728	$ 16,530
Cost of Sales [Member]
Stock-based compensation expense related to grants of employee stock options	(387)	1,116	531	1,834
Selling and Marketing Expense [Member]
Stock-based compensation expense related to grants of employee stock options	1,516	1,277	2,734	2,435
General and Administrative Expense [Member]
Stock-based compensation expense related to grants of employee stock options	5,797	5,999	11,455	11,170
Research and Development Expense [Member]
Stock-based compensation expense related to grants of employee stock options	$ 462	$ 605	$ 1,008	$ 1,091

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Stock options granted	10,000	70,000	10,000	90,000
Stock options exercised	93,860		93,860
Stock options forfeited	41,140	12,000	41,140	12,000
Unrecognized compensation costs	$ 59,000		$ 59,000

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Director [Member]
Related Party Transaction [Line Items]
Consulting fees paid	$ 13,600	$ 14,500	$ 42,416	$ 29,103