Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2023 | Jan. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
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 | 11,769,543 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash | $ 99,239 | $ 188,966 |
Accounts receivable | 923,112 | 920,721 |
Inventories, net of reserve for obsolescence of $114,000 at December 31, 2023 and $51,000 at March 31, 2023 | 1,554,185 | 1,899,202 |
Prepaid expenses | 128,538 | 115,714 |
Total current assets | 2,705,074 | 3,124,603 |
Equipment: | ||
Furniture, fixtures and equipment, at cost | 2,627,727 | 2,615,676 |
Accumulated depreciation | (2,359,012) | (2,312,400) |
Equipment, net | 268,715 | 303,276 |
Right of use asset | 1,082,999 | 496,004 |
Patents, net of accumulated amortization of $324,568 at December 31, 2023 and $306,946 at March 31, 2023 | 165,567 | 163,133 |
Other assets | 64,183 | 46,953 |
TOTAL ASSETS | 4,286,538 | 4,133,969 |
Current liabilities: | ||
Accounts payable | 301,833 | 252,957 |
Line of credit | 0 | 177,402 |
Secured notes | 44,614 | 44,491 |
Accrued compensation | 233,366 | 217,724 |
Other accrued liabilities | 129,954 | 84,578 |
Accrued lease liability | 351,406 | 353,674 |
Total current liabilities | 1,061,173 | 1,130,826 |
Long-term liability: | ||
Secured notes | 232,940 | 268,512 |
Accrued lease liability | 799,419 | 239,820 |
Total liabilities | 2,093,532 | 1,639,158 |
Commitments and contingencies (Note 4) | ||
Shareholders’ equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 11,769,543 issued and outstanding at December 31, 2023 and March 31, 2023 | 24,401,381 | 24,348,075 |
Accumulated (deficit) | (22,208,375) | (21,853,264) |
Total shareholders’ equity | 2,193,006 | 2,494,811 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 4,286,538 | $ 4,133,969 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Inventories, reserve for obsolescence | $ 114,000 | $ 51,000 |
Accumulated amortization | $ 324,568 | $ 306,946 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, 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 | 11,769,543 | 11,769,543 |
Common stock and additional paid-in capital, shares outstanding | 11,769,543 | 11,769,543 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
NET REVENUE: | ||||
Total revenue | $ 1,581,564 | $ 1,683,995 | $ 5,061,338 | $ 5,542,722 |
COST OF REVENUE: | ||||
Total cost of revenue | 854,325 | 785,751 | 2,608,765 | 2,528,007 |
GROSS PROFIT | 727,239 | 898,244 | 2,452,573 | 3,014,715 |
OPERATING EXPENSES: | ||||
Sales and marketing | 413,992 | 501,618 | 1,236,770 | 1,494,285 |
General and administrative | 351,569 | 360,525 | 1,106,703 | 1,102,309 |
Research and development | 151,077 | 247,569 | 420,351 | 641,090 |
Total operating expenses | 916,638 | 1,109,712 | 2,763,824 | 3,237,684 |
OPERATING (LOSS) | (189,399) | (211,468) | (311,251) | (222,969) |
Interest expense, net | (21,065) | (2,145) | (52,148) | (8,758) |
Other income, net | 3,334 | (2,721) | 8,287 | 674 |
Interest expense and other income, net | (17,731) | (4,866) | (43,861) | (8,084) |
(LOSS) BEFORE PROVISION FOR INCOME TAXES | (207,130) | (216,334) | (355,112) | (231,053) |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET (LOSS) | (207,130) | (216,334) | (355,112) | (231,053) |
Product [Member] | ||||
NET REVENUE: | ||||
Total revenue | 1,561,103 | 1,683,995 | 4,927,069 | 5,084,089 |
COST OF REVENUE: | ||||
Total cost of revenue | 843,216 | 785,751 | 2,539,708 | 2,528,007 |
Service [Member] | ||||
NET REVENUE: | ||||
Total revenue | 20,461 | 0 | 134,269 | 458,633 |
COST OF REVENUE: | ||||
Total cost of revenue | $ 11,109 | $ 0 | $ 69,057 | $ 0 |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
Net (loss) income per share, basic | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.02) |
Net (loss) income per share, diluted | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.02) |
Weighted average shares - basic | 11,769,543 | 11,763,389 | 11,769,543 | 11,760,820 |
Weighted average shares - diluted | 11,769,543 | 11,763,389 | 11,769,543 | 11,760,820 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows generated by (used in) operating activities: | ||
Net (loss) | $ (355,112) | $ (231,053) |
Adjustments to reconcile net (loss) to net cash generated by (used in) operating activities: | ||
Depreciation and amortization | 64,357 | 64,130 |
Stock-based compensation expense related to stock options | 53,306 | 39,379 |
Provision for (recovery from) inventory obsolescence, net change | 63,000 | 52,733 |
Change in operating assets and liabilities: | ||
Right of use asset, net | (29,664) | (30,976) |
Accounts receivable | (2,391) | 118,182 |
Inventories | 282,017 | (374,728) |
Prepaid expenses and other assets | (30,055) | (27,741) |
Accounts payable | 48,876 | (274,035) |
Accrued compensation and other accrued liabilities | 61,018 | (73,033) |
Net cash generated by (used in) operating activities | 155,352 | (737,142) |
Cash flows (used in) investing activities: | ||
Acquisition of property and equipment | (12,051) | (173,269) |
Patent costs | (20,177) | (10,029) |
Net cash (used in) investing activities | (32,228) | (183,298) |
Cash flows from financing activities: | ||
Net proceeds from options exercised | 0 | 21,000 |
(Paydown of) borrowing from secured notes and line of credit | (212,851) | 69,591 |
Net cash generated by (used in) financing activities | (212,851) | 90,591 |
Net (decrease) in cash | (89,727) | (829,849) |
Cash, beginning of fiscal year | 188,966 | 949,645 |
Cash, end of fiscal quarter | 99,239 | 119,796 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | $ 52,148 | $ 8,758 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Dec. 31, 2023 | |
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 $ 22,208,375 355,112 53,306 Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals and surgery centers in the United States. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited 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. We had a net loss of $ 355,112 99,239 no 1,000,000 1,643,901 349,876 89,727 Use of Estimates in the Preparation of Financial Statements Cash and Cash Equivalents Fair Value of Financial Instruments Concentration of Credit Risk 250,000 250,000 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. The accounts receivable balance at December 31, 2023 of $ 923,112 920,721 Inventories Schedule of inventory December 31, 2023 March 31, 2023 Raw materials $ 1,305,313 $ 1,456,473 Finished goods 362,872 493,729 Total gross inventories 1,668,185 1,950,202 Less reserve for obsolescence (114,000 ) (51,000 ) Total net inventories $ 1,554,185 $ 1,899,202 Property and Equipment 15,372 16,292 46,612 42,998 Long-Lived Assets Patents Income Taxes Revenue Recognition Research and Development Expenses Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2023 and 2022 was $ 27,158 14,173 53,306 39,379 Segment Reporting Information, by segment, for the three and nine months ended December 31, 2023 and 2022 follows: Schedule of reporting segments Three Months Ended December 31, 2023 Nine Months Ended December 31, 2023 Product Service Total Product Service Total Net revenue $ 1,561,103 $ 20,461 $ 1,581,564 $ 4,927,069 $ 134,269 $ 5,061,338 Cost of revenue 843,216 11,109 854,325 2,539,708 69,057 2,608,765 Gross profit 717,887 9,352 727,239 2,387,361 65,212 2,452,573 Operating income (loss) (198,751 ) 9,352 (189,399 ) (376,463 ) 65,212 (311,251 ) Depreciation and amortization 20,582 — 20,582 64,357 — 64,357 Patent and capital expenditures 15,379 — 15,379 32,228 — 32,228 Equipment and patents, net $ 434,282 $ — $ 434,282 $ 434,282 $ — $ 434,282 Three Months Ended December 31, 2022 Nine Months Ended December 31, 2022 Product Service Total Product Service Total Net revenue $ 1,683,995 $ — $ 1,683,995 $ 5,084,089 $ 458,633 $ 5,542,722 Cost of revenue 785,751 — 785,751 2,528,007 — 2,528,007 Gross profit 898,244 — 898,244 2,556,082 458,633 3,014,715 Operating income (loss) (211,468 ) — (211,468 ) (681,602 ) 458,633 (222,969 ) Depreciation and amortization 22,802 — 22,802 64,130 — 64,130 Patent and capital expenditures (18,032 ) — (18,032 ) 183,298 — 183,298 Equipment and patents, net $ 489,184 $ — $ 489,184 $ 489,184 $ — $ 489,184 |
BASIC AND DILUTED INCOME AND LO
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE | 9 Months Ended |
Dec. 31, 2023 | |
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 income (loss) per share Three Months Ended Nine Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income (loss) $ (207,130 ) $ (216,334 ) $ (355,112 ) $ (231,053 ) Weighted-average basic shares outstanding 11,769,543 11,763,389 11,769,543 11,760,820 Effect of dilutive securities — — — — Weighted-average diluted shares 11,769,543 11,763,389 11,769,543 11,760,820 Basic net income (loss) per share $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.02 ) Diluted net income (loss) per share $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.02 ) Antidilutive employee stock options 991,000 1,058,000 991,000 1,058,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2023 | |
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, 2026. 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. Effective September 1, 2023, our lease was extended to October 31, 2026. The minimum future lease payment, by fiscal year, as of December 31, 2023 is as follows: Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 97,875 2025 415,667 2026 455,542 2027 270,666 Total $ 1,239,750 On August 4, 2020, we received $ 150,000 150,000 3.75 During January 2021, we entered into a note agreement with U.S. Bank for $ 92,000 5 During July 2022, we entered into a note agreement with U.S. Bank for $ 115,004 6 On November 15, 2022, we entered into a loan and security agreement with Pathward, N.A. (formerly 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 0.5%, with a floor of 6.75%, plus a monthly maintenance fee of 0.4%, based on the average monthly loan balance. Interest is charged on a minimum loan balance of $300,000, a loan fee of 0.5% at closing and annually, and an exit fee of 3%, 2% and 1% during years one, two and three, respectively. The minimum future EIDL payment, by fiscal year, as of December 31, 2023 is as follows: Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 815 2025 3,331 2026 3,457 Thereafter 149,872 Total $ 157,475 During January 2021, we entered into a note agreement with U.S. Bank for $ 92,000 5 The minimum future principal U.S. Bank payment, by fiscal year, as of December 31, 2023 is as follows: Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 4,600 2025 18,400 2026 13,800 Total $ 36,800 During July 2022, we entered into a note agreement with U.S. Bank for $ 115,004 6 The minimum future principal U.S. Bank payment, by fiscal year, as of December 31, 2023 is as follows: Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 5,651 2025 23,000 2026 23,000 Thereafter 31,628 Total $ 83,279 Aside from the operating lease, EIDL loan and U.S. Bank loans, 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, 2023. 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, 2023 | |
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, 2023 and 2022, which was allocated as follows: Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cost of sales $ — $ 157 $ — $ 473 Sales and marketing 3,703 1,944 7,261 5,257 General and administrative 20,561 10,841 41,068 30,182 Research and development 2,894 1,231 4,977 3,467 Stock-based compensation expense $ 27,158 $ 14,173 $ 53,306 $ 39,379 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 70,000 148,000 90,000 148,000 105,000 10,000 105,000 145,000 50,000 105,000 165,000 |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 9 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | Note 6. RELATED PARTY TRANSACTION We paid consulting fees of no 32,032 12,094 25,822 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 7. SUBSEQUENT EVENTS We evaluated all of our activity as of the date the unaudited 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 unaudited condensed interim financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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. We had a net loss of $ 355,112 99,239 no 1,000,000 1,643,901 349,876 89,727 |
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 250,000 250,000 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. The accounts receivable balance at December 31, 2023 of $ 923,112 920,721 |
Inventories | Inventories Schedule of inventory December 31, 2023 March 31, 2023 Raw materials $ 1,305,313 $ 1,456,473 Finished goods 362,872 493,729 Total gross inventories 1,668,185 1,950,202 Less reserve for obsolescence (114,000 ) (51,000 ) Total net inventories $ 1,554,185 $ 1,899,202 |
Property and Equipment | Property and Equipment 15,372 16,292 46,612 42,998 |
Long-Lived Assets | Long-Lived Assets |
Patents | Patents |
Income Taxes | Income Taxes |
Revenue Recognition | Revenue Recognition |
Research and Development Expenses | Research and Development Expenses |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2023 and 2022 was $ 27,158 14,173 53,306 39,379 |
Segment Reporting | Segment Reporting Information, by segment, for the three and nine months ended December 31, 2023 and 2022 follows: Schedule of reporting segments Three Months Ended December 31, 2023 Nine Months Ended December 31, 2023 Product Service Total Product Service Total Net revenue $ 1,561,103 $ 20,461 $ 1,581,564 $ 4,927,069 $ 134,269 $ 5,061,338 Cost of revenue 843,216 11,109 854,325 2,539,708 69,057 2,608,765 Gross profit 717,887 9,352 727,239 2,387,361 65,212 2,452,573 Operating income (loss) (198,751 ) 9,352 (189,399 ) (376,463 ) 65,212 (311,251 ) Depreciation and amortization 20,582 — 20,582 64,357 — 64,357 Patent and capital expenditures 15,379 — 15,379 32,228 — 32,228 Equipment and patents, net $ 434,282 $ — $ 434,282 $ 434,282 $ — $ 434,282 Three Months Ended December 31, 2022 Nine Months Ended December 31, 2022 Product Service Total Product Service Total Net revenue $ 1,683,995 $ — $ 1,683,995 $ 5,084,089 $ 458,633 $ 5,542,722 Cost of revenue 785,751 — 785,751 2,528,007 — 2,528,007 Gross profit 898,244 — 898,244 2,556,082 458,633 3,014,715 Operating income (loss) (211,468 ) — (211,468 ) (681,602 ) 458,633 (222,969 ) Depreciation and amortization 22,802 — 22,802 64,130 — 64,130 Patent and capital expenditures (18,032 ) — (18,032 ) 183,298 — 183,298 Equipment and patents, net $ 489,184 $ — $ 489,184 $ 489,184 $ — $ 489,184 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Schedule of inventory December 31, 2023 March 31, 2023 Raw materials $ 1,305,313 $ 1,456,473 Finished goods 362,872 493,729 Total gross inventories 1,668,185 1,950,202 Less reserve for obsolescence (114,000 ) (51,000 ) Total net inventories $ 1,554,185 $ 1,899,202 |
Schedule of reporting segments | Schedule of reporting segments Three Months Ended December 31, 2023 Nine Months Ended December 31, 2023 Product Service Total Product Service Total Net revenue $ 1,561,103 $ 20,461 $ 1,581,564 $ 4,927,069 $ 134,269 $ 5,061,338 Cost of revenue 843,216 11,109 854,325 2,539,708 69,057 2,608,765 Gross profit 717,887 9,352 727,239 2,387,361 65,212 2,452,573 Operating income (loss) (198,751 ) 9,352 (189,399 ) (376,463 ) 65,212 (311,251 ) Depreciation and amortization 20,582 — 20,582 64,357 — 64,357 Patent and capital expenditures 15,379 — 15,379 32,228 — 32,228 Equipment and patents, net $ 434,282 $ — $ 434,282 $ 434,282 $ — $ 434,282 Three Months Ended December 31, 2022 Nine Months Ended December 31, 2022 Product Service Total Product Service Total Net revenue $ 1,683,995 $ — $ 1,683,995 $ 5,084,089 $ 458,633 $ 5,542,722 Cost of revenue 785,751 — 785,751 2,528,007 — 2,528,007 Gross profit 898,244 — 898,244 2,556,082 458,633 3,014,715 Operating income (loss) (211,468 ) — (211,468 ) (681,602 ) 458,633 (222,969 ) Depreciation and amortization 22,802 — 22,802 64,130 — 64,130 Patent and capital expenditures (18,032 ) — (18,032 ) 183,298 — 183,298 Equipment and patents, net $ 489,184 $ — $ 489,184 $ 489,184 $ — $ 489,184 |
BASIC AND DILUTED INCOME AND _2
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per share | Schedule of basic and diluted net income (loss) per share Three Months Ended Nine Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income (loss) $ (207,130 ) $ (216,334 ) $ (355,112 ) $ (231,053 ) Weighted-average basic shares outstanding 11,769,543 11,763,389 11,769,543 11,760,820 Effect of dilutive securities — — — — Weighted-average diluted shares 11,769,543 11,763,389 11,769,543 11,760,820 Basic net income (loss) per share $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.02 ) Diluted net income (loss) per share $ (0.02 ) $ (0.02 ) $ (0.03 ) $ (0.02 ) Antidilutive employee stock options 991,000 1,058,000 991,000 1,058,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of minimum future lease payment | Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 97,875 2025 415,667 2026 455,542 2027 270,666 Total $ 1,239,750 |
EIDL Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of minimum future lease payment | Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 815 2025 3,331 2026 3,457 Thereafter 149,872 Total $ 157,475 |
US Bank Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of minimum future lease payment | Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 4,600 2025 18,400 2026 13,800 Total $ 36,800 |
US Bank Payment 1 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of minimum future lease payment | Schedule of minimum future lease payment Fiscal Year Amount 2024 $ 5,651 2025 23,000 2026 23,000 Thereafter 31,628 Total $ 83,279 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of summarizes stock-based compensation | Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cost of sales $ — $ 157 $ — $ 473 Sales and marketing 3,703 1,944 7,261 5,257 General and administrative 20,561 10,841 41,068 30,182 Research and development 2,894 1,231 4,977 3,467 Stock-based compensation expense $ 27,158 $ 14,173 $ 53,306 $ 39,379 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated deficit | $ 22,208,375 | $ 22,208,375 | $ 21,853,264 | ||
Net (loss) income available to shareholders | $ 207,130 | $ 216,334 | 355,112 | $ 231,053 | |
Share-based compensation | $ 53,306 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2023 | Mar. 31, 2023 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,305,313 | $ 1,456,473 |
Finished goods | 362,872 | 493,729 |
Total gross inventories | 1,668,185 | 1,950,202 |
Less reserve for obsolescence | (114,000) | (51,000) |
Total net inventories | $ 1,554,185 | $ 1,899,202 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||||
Net revenue | $ 1,581,564 | $ 1,683,995 | $ 5,061,338 | $ 5,542,722 |
Cost of revenue | 854,325 | 785,751 | 2,608,765 | 2,528,007 |
Gross profit | 727,239 | 898,244 | 2,452,573 | 3,014,715 |
Operating income (loss) | (189,399) | (211,468) | (311,251) | (222,969) |
Depreciation and amortization | 20,582 | 22,802 | 64,357 | 64,130 |
Patent and capital expenditures | 15,379 | (18,032) | 32,228 | 183,298 |
Equipment and patents, net | 434,282 | 489,184 | 434,282 | 489,184 |
Product [Member] | ||||
Product Information [Line Items] | ||||
Net revenue | 1,561,103 | 1,683,995 | 4,927,069 | 5,084,089 |
Cost of revenue | 843,216 | 785,751 | 2,539,708 | 2,528,007 |
Gross profit | 717,887 | 898,244 | 2,387,361 | 2,556,082 |
Operating income (loss) | (198,751) | (211,468) | (376,463) | (681,602) |
Depreciation and amortization | 20,582 | 22,802 | 64,357 | 64,130 |
Patent and capital expenditures | 15,379 | (18,032) | 32,228 | 183,298 |
Equipment and patents, net | 434,282 | 489,184 | 434,282 | 489,184 |
Service [Member] | ||||
Product Information [Line Items] | ||||
Net revenue | 20,461 | 0 | 134,269 | 458,633 |
Cost of revenue | 11,109 | 0 | 69,057 | 0 |
Gross profit | 9,352 | 0 | 65,212 | 458,633 |
Operating income (loss) | 9,352 | 65,212 | 458,633 | |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Patent and capital expenditures | 0 | 0 | 0 | 0 |
Equipment and patents, net | $ 0 | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | |||||
Net (loss) income available to shareholders | $ 207,130 | $ 216,334 | $ 355,112 | $ 231,053 | |
Cash | 99,239 | 99,239 | |||
Borrowings | 0 | 0 | $ 177,402 | ||
Borrowing capacity | 1,000,000 | 1,000,000 | |||
Working capital | 1,643,901 | 1,643,901 | |||
Working capital decrease | 349,876 | ||||
Net decrease in cash | 89,727 | 829,849 | |||
Federally insured limit | 250,000 | 250,000 | |||
Cash on deposit | 250,000 | ||||
Accounts receivable | 923,112 | 923,112 | $ 920,721 | ||
Depreciation expense | 15,372 | 16,292 | 46,612 | 42,998 | |
Stock based compensation | $ 27,158 | $ 53,306 | $ 14,173 | $ 39,379 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (207,130) | $ (216,334) | $ (355,112) | $ (231,053) |
Weighted-average basic shares outstanding | 11,769,543 | 11,763,389 | 11,769,543 | 11,760,820 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted-average diluted shares | 11,769,543 | 11,763,389 | 11,769,543 | 11,760,820 |
Basic net income (loss) per share | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.02) |
Diluted net income (loss) per share | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.02) |
Antidilutive employee stock options | 991,000 | 1,058,000 | 991,000 | 1,058,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - Lease Payment [Member] | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 97,875 |
2025 | 415,667 |
2026 | 455,542 |
2027 | 270,666 |
Total | $ 1,239,750 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) - EIDL Payment [Member] | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 815 |
2025 | 3,331 |
2026 | 3,457 |
2027 | 149,872 |
Total | $ 157,475 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details 2) - US Bank Payment [Member] | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 4,600 |
2025 | 18,400 |
2026 | 13,800 |
Total | $ 36,800 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Details 3) - US Bank Payment 1 [Member] | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 5,651 |
2025 | 23,000 |
2026 | 23,000 |
2027 | 31,628 |
Total operating lease payments | $ 83,279 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | ||||
Nov. 15, 2022 | Aug. 04, 2021 | Aug. 01, 2020 | Jul. 31, 2022 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Debt instrument description | 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 0.5%, with a floor of 6.75%, plus a monthly maintenance fee of 0.4%, based on the average monthly loan balance. Interest is charged on a minimum loan balance of $300,000, a loan fee of 0.5% at closing and annually, and an exit fee of 3%, 2% and 1% during years one, two and three, respectively. | ||||
US Bank Payment [Member] | Note Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 115,004 | $ 92,000 | |||
Interest rate | 6% | 5% | |||
SBA [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceed from loan | $ 150,000 | ||||
EIDL [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 150,000 | ||||
Interest rate | 3.75% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-based compensation expense | $ 27,158 | $ 14,173 | $ 53,306 | $ 39,379 |
Cost of Sales [Member] | ||||
Stock-based compensation expense | 0 | 157 | 0 | 473 |
Selling and Marketing Expense [Member] | ||||
Stock-based compensation expense | 3,703 | 1,944 | 7,261 | 5,257 |
General and Administrative Expense [Member] | ||||
Stock-based compensation expense | 20,561 | 10,841 | 41,068 | 30,182 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense | $ 2,894 | $ 1,231 | $ 4,977 | $ 3,467 |
SHARE-BASED COMPENSATION (Det_2
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||||
Stock options granted | 70,000 | 105,000 | 90,000 | 145,000 |
Stock options exercised or forfeited | 148,000 | 148,000 | ||
Stock options exercised | 10,000 | 50,000 | ||
Stock options forfeited | 105,000 | 105,000 | ||
Unrecognized compensation costs | $ 165,000 | $ 165,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees paid | $ 0 | $ 12,094 | $ 32,032 | $ 25,822 |