Encision (ECIA) 10-Q 14 Feb 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Dec. 31, 2021	Jan. 31, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
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		11,719,543

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2021	Mar. 31, 2021
Current assets:
Cash	$ 1,424,208	$ 1,474,339
Accounts receivable, net of allowance for doubtful accounts of $0 at December 31, 2021 and $35,000 at March 31, 2021	1,029,015	1,024,370
Inventories, net of reserve for obsolescence of $42,186 at December 31, 2021 and $70,000 at March 31, 2021	1,405,789	1,445,134
Prepaid expenses and other assets	149,434	154,151
Total current assets	4,008,446	4,097,994
Equipment:
Furniture, fixtures and equipment, at cost	2,513,905	2,695,297
Accumulated depreciation	(2,278,633)	(2,429,580)
Equipment, net	235,272	265,717
Right of use asset	856,481	1,060,971
Patents, net of accumulated amortization of $269,482 at December 31, 2021 and $317,821 at March 31, 2021	188,722	213,368
Other assets	30,574	20,496
TOTAL ASSETS	5,319,495	5,658,546
Current liabilities:
Accounts payable	531,021	389,088
Secured notes	18,400	20,397
Accrued compensation	238,919	181,686
Other accrued liabilities	136,974	282,102
Accrued lease liability	357,083	302,978
Total current liabilities	1,282,397	1,176,251
Long-term liability:
Secured notes	212,240	220,263
Accrued lease liability	648,111	926,808
Unsecured promissory note		533,118
Total liabilities	2,142,748	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; 11,679,034 issued and outstanding at December 31, 2021 and 11,582,641 issued and outstanding at March 31, 2021	24,303,758	24,265,831
Accumulated (deficit)	(21,127,011)	(21,463,725)
Total shareholders’ equity	3,176,747	2,802,106
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 5,319,495	$ 5,658,546

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2021	Mar. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 35,000
Inventories, reserve for obsolescence	42,186	70,000
Accumulated amortization	$ 269,482	$ 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, par value	$ 0	$ 0
Common stock and additional paid-in capital, shares authorized	100,000,000	100,000,000
Common stock and additional paid-in capital, shares issued	11,679,034	11,582,641
Common stock and additional paid-in capital, shares outstanding	11,679,034	11,582,641

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
NET REVENUE:
Total revenue	$ 1,944,266	$ 2,162,600	$ 6,065,556	$ 5,390,575
COST OF REVENUE:
Total cost of revenue	934,945	1,057,002	3,084,692	2,650,507
GROSS PROFIT	1,009,321	1,105,598	2,980,864	2,740,068
OPERATING EXPENSES:
Sales and marketing	504,709	580,477	1,594,728	1,512,741
General and administrative	326,753	372,994	993,959	998,620
Research and development	194,124	139,390	584,161	443,452
Total operating expenses	1,025,586	1,092,861	3,172,848	2,954,813
OPERATING (LOSS) INCOME	(16,265)	12,737	(191,984)	(214,745)
Interest expense, net	(1,806)	(16,380)	(3,359)	(51,021)
Extinguishment of debt income		598,567	533,118	598,567
Other income (expense), net	2,060	4,397	(1,061)	136,000
Interest expense, extinguishment of debt income and other income (expense), net	254	586,584	528,698	683,546
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES	(16,011)	599,321	336,714	468,801
Provision for income taxes
NET (LOSS) INCOME	$ (16,011)	$ 599,321	$ 336,714	$ 468,801
Net (loss) income per share—basic and diluted	$ 0	$ 0.05	$ 0.03	$ 0.04
Weighted average shares—basic	11,677,921	11,582,641	11,598,768	11,582,641
Weighted average shares—diluted	11,677,921	11,708,797	12,045,389	11,750,349
Product [Member]
NET REVENUE:
Total revenue	$ 1,733,658	$ 1,998,979	$ 5,347,259	$ 5,093,118
COST OF REVENUE:
Total cost of revenue	828,153	975,581	2,728,464	2,500,310
GROSS PROFIT	905,505	1,023,398	2,618,795	2,592,808
OPERATING EXPENSES:
OPERATING (LOSS) INCOME	(120,081)	(69,463)	(554,053)	(362,005)
Service [Member]
NET REVENUE:
Total revenue	210,608	163,621	718,297	297,457
COST OF REVENUE:
Total cost of revenue	106,792	81,421	356,228	150,197
GROSS PROFIT	103,816	82,200	362,069	147,260
OPERATING EXPENSES:
OPERATING (LOSS) INCOME	$ 103,816	$ 82,200	$ 362,069	$ 147,260

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows (used in) operating activities:
Net income	$ 336,714	$ 468,801
Adjustments to reconcile net income to net cash (used in) operating activities:
Extinguishment of debt income	(533,118)	(598,567)
Depreciation and amortization	85,896	67,907
Stock-based compensation expense related to stock options	29,832	25,014
(Recovery from) doubtful accounts, net change	(35,000)	(31,500)
(Recovery from) provision for inventory obsolescence, net change	(27,814)	24,000
Other income from release of accounts payable		(56,435)
Change in operating assets and liabilities:
Right of use asset, net	(20,102)	67,856
Accounts receivable	30,355	(130,049)
Inventories	67,159	80,318
Prepaid expenses and other assets	(5,361)	(107,510)
Accounts payable	141,933	86,766
Accrued compensation and other accrued liabilities	(87,895)	212,394
Net cash (used in) generated by operating activities	(17,401)	108,995
Cash flows (used in) investing activities:
Acquisition of property and equipment	(17,550)	(4,144)
Patent costs	(13,255)	(15,858)
Net cash (used in) generated by investing activities	(30,805)	(20,002)
Cash flows from financing activities:
Net proceeds from options exercised	8,095
Paydown of credit facility, net change		(370,498)
(Paydown of) secured notes	(10,020)
Unsecured promissory note		598,567
EIDL loan		152,000
Net cash (used in) generated by financing activities	(1,925)	380,069
Net (decrease) increase in cash	(50,131)	469,062
Cash, beginning of fiscal year	1,474,339	385,132
Cash, end of fiscal quarter	1,424,208	854,194
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	$ 5,418	$ 34,633

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Dec. 31, 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 $ 21,127,011 336,714 8,095 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”) situation and its impact globally. Our production facilities continued to operate during the year as they had prior to the COVID 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 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 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	9 Months Ended
	Dec. 31, 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 December 31, 2021 of $ 1,029,015 1,024,370 Inventories Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 1,445,134 Property and Equipment 18,079 47,995 13,277 45,554 Long-Lived Assets Patents Income Taxes no no Revenue Recognition Deferred Revenue 229,167 0 Research and Development Expenses Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2021 was $ 14,104 29,832 8,483 25,014 Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549 Recently Issued Accounting Pronouncements

Basic and Diluted Income and Lo

Basic and Diluted Income and Loss per Common Share	9 Months Ended
	Dec. 31, 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 Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 30, 2020 Net (loss) income $ (16,011 ) $ 599,321 $ 336,714 $ 468,801 Weighted-average basic shares outstanding 11,677,921 11,582,641 11,598,768 11,582,641 Effect of dilutive securities — 126,156 366,355 167,708 Weighted-average diluted shares 11,819,567 11,745,161 12,045,389 11,750,349 Basic net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Diluted net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Antidilutive employee stock options 1,076,000 909,844 709,645 868,292

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Dec. 31, 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 December 31, 2021 is as follows: Schedule of Lease payment Fiscal Year Amount 2022 $ 90,625 2023 372,167 2024 386,667 2025 232,139 Total $ 1,081,598 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 December 31, 2021 is as follows: Schedule of EIDL payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 142,693 Total $ 155,780 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 December 31, 2021 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 4,600 2023 18,400 2024 18,400 2025 18,400 2026 15,060 Total $ 74,860 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 December 31, 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	9 Months Ended
	Dec. 31, 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 nine months ended December 31, 2021 and 2020, which was allocated as follows: Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of sales $ (67 ) $ 917 $ 464 $ 2,751 Sales and marketing 1,816 1,218 4,550 3,653 General and administrative 10,953 5,803 22,408 16,974 Research and development 1,402 545 2,410 1,636 Stock-based compensation expense $ 14,104 $ 8,483 $ 29,832 $ 25,014 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 190,000 2,533 17,467 200,000 96,393 58,607 20,000 60,000 110,000 72,000 As of December 31, 2021, approximately $ 135,000

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION	9 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	Note 6. RELATED PARTY TRANSACTION We paid consulting fees of $ 15,348 57,764 16,000 45,103

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Dec. 31, 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)	9 Months Ended
	Dec. 31, 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 December 31, 2021 of $ 1,029,015 1,024,370
Inventories	Inventories Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 1,445,134
Property and Equipment	Property and Equipment 18,079 47,995 13,277 45,554
Long-Lived Assets	Long-Lived Assets
Patents	Patents
Income Taxes	Income Taxes no no
Revenue Recognition	Revenue Recognition
Deferred Revenue	Deferred Revenue 229,167 0
Research and Development Expenses	Research and Development Expenses
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2021 was $ 14,104 29,832 8,483 25,014
Segment Reporting	Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Schedule of inventory	Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 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 December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549

Basic and Diluted Income and _2

Basic and Diluted Income and Loss per Common Share (Tables)	9 Months Ended
	Dec. 31, 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 Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 30, 2020 Net (loss) income $ (16,011 ) $ 599,321 $ 336,714 $ 468,801 Weighted-average basic shares outstanding 11,677,921 11,582,641 11,598,768 11,582,641 Effect of dilutive securities — 126,156 366,355 167,708 Weighted-average diluted shares 11,819,567 11,745,161 12,045,389 11,750,349 Basic net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Diluted net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Antidilutive employee stock options 1,076,000 909,844 709,645 868,292

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Dec. 31, 2021
Lease Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of principal U.S. Bank payment	Schedule of Lease payment Fiscal Year Amount 2022 $ 90,625 2023 372,167 2024 386,667 2025 232,139 Total $ 1,081,598
E I D L Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of principal U.S. Bank payment	Schedule of EIDL payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 142,693 Total $ 155,780
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 4,600 2023 18,400 2024 18,400 2025 18,400 2026 15,060 Total $ 74,860

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Schedule of summarizes stock-based compensation	Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of sales $ (67 ) $ 917 $ 464 $ 2,751 Sales and marketing 1,816 1,218 4,550 3,653 General and administrative 10,953 5,803 22,408 16,974 Research and development 1,402 545 2,410 1,636 Stock-based compensation expense $ 14,104 $ 8,483 $ 29,832 $ 25,014

ORGANIZATION AND NATURE OF BU_2

ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($)	9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 21,127,011		$ 21,463,725
Net income	336,714	$ 468,801
Stock options exercised	$ 8,095

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2021	Mar. 31, 2021
Accounting Policies [Abstract]
Raw materials	$ 1,086,031	$ 1,038,094
Finished goods	361,944	477,040
Total gross inventories	1,447,975	1,515,134
Less reserve for obsolescence	(42,186)	(70,000)
Total net inventories	$ 1,405,789	$ 1,445,134

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Product Information [Line Items]
Net revenue	$ 1,944,266	$ 2,162,600	$ 6,065,556	$ 5,390,575
Cost of revenue	934,945	1,057,002	3,084,692	2,650,507
Gross profit	1,009,321	1,105,598	2,980,864	2,740,068
Operating income (loss)	(16,265)	12,737	(191,984)	(214,745)
Depreciation and amortization	32,302	20,584	85,896	67,907
Patent and capital expenditures	11,382		30,805	4,144
Equipment and patents, net	423,994	387,549	423,994	387,549
Product [Member]
Product Information [Line Items]
Net revenue	1,733,658	1,998,979	5,347,259	5,093,118
Cost of revenue	828,153	975,581	2,728,464	2,500,310
Gross profit	905,505	1,023,398	2,618,795	2,592,808
Operating income (loss)	(120,081)	(69,463)	(554,053)	(362,005)
Depreciation and amortization	32,302	20,584	85,896	67,907
Patent and capital expenditures	11,382		30,805	4,144
Equipment and patents, net	423,994	387,549	423,994	387,549
Service [Member]
Product Information [Line Items]
Net revenue	210,608	163,621	718,297	297,457
Cost of revenue	106,792	81,421	356,228	150,197
Gross profit	103,816	82,200	362,069	147,260
Operating income (loss)	103,816	82,200	362,069	147,260
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		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2021
Accounting Policies [Abstract]
Federally insured limit	$ 250,000		$ 250,000
Accounts receivable	1,029,015		1,029,015		$ 1,024,370
Depreciation expense	18,079	$ 13,277	47,995	$ 45,554
Unrecognized tax benefits	0		0
Uncertain tax positions	0		0
Deferred revenue	229,167		229,167		$ 0
Stock based compensation	$ 14,104	$ 8,483	$ 29,832	$ 25,014

BASIC AND DILUTED INCOME AND _3

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net (loss) income	$ (16,011)	$ 599,321	$ 336,714	$ 468,801
Weighted-average basic shares outstanding	11,677,921	11,582,641	11,598,768	11,582,641
Effect of dilutive securities		126,156	366,355	167,708
Weighted-average diluted shares	11,819,567	11,745,161	12,045,389	11,750,349
Basic net income (loss) per share	$ 0	$ 0.05	$ 0.03	$ 0.04
Diluted net income (loss) per share	$ 0	$ 0.05	$ 0.03	$ 0.04
Antidilutive employee stock options	1,076,000	909,844	709,645	868,292

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - Lease Payment [Member]	Dec. 31, 2021USD ($)
Defined Benefit Plan Disclosure [Line Items]
2022	$ 90,625
2023	372,167
2024	386,667
2025	232,139
Total	$ 1,081,598

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details 1) - E I D L Payment [Member]	Dec. 31, 2021USD ($)
Defined Benefit Plan Disclosure [Line Items]
2022
2023	3,091
2024	3,208
2025	3,331
2026	3,457
Thereafter	142,693
Total	$ 155,780

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details 2) - U S Bank Payment [Member]	Dec. 31, 2021USD ($)
Defined Benefit Plan Disclosure [Line Items]
2022	$ 4,600
2023	18,400
2024	18,400
2025	18,400
2026	15,060
Total	$ 74,860

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Aug. 04, 2021	Aug. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Feb. 08, 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			$ 533,118	$ 598,567

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Stock-based compensation expense related to grants of employee stock options	$ 14,104	$ 8,483	$ 29,832	$ 25,014
Cost of Sales [Member]
Stock-based compensation expense related to grants of employee stock options	(67)	917	464	2,751
Selling and Marketing Expense [Member]
Stock-based compensation expense related to grants of employee stock options	1,816	1,218	4,550	3,653
General and Administrative Expense [Member]
Stock-based compensation expense related to grants of employee stock options	10,953	5,803	22,408	16,974
Research and Development Expense [Member]
Stock-based compensation expense related to grants of employee stock options	$ 1,402	$ 545	$ 2,410	$ 1,636

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Stock options granted	190,000	20,000	200,000	110,000
Number of shares exercised	2,533		96,393
Stock options forfeited	17,467	60,000	58,607	72,000
Unrecognized compensation costs	$ 135,000		$ 135,000

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Director [Member]
Related Party Transaction [Line Items]
Consulting fees paid	$ 15,348	$ 16,000	$ 57,764	$ 45,103