Encision (ECIA) 10-Q 13 Nov 13 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information	'	'
Entity Registrant Name	'ENCISION INC.	'
Entity Central Index Key	'0000930775	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--03-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	8,210,100
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Sep. 30, 2013	Mar. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$51,383	$126,224
Accounts receivable, net of allowance for doubtful accounts of $5,000 at September 30, 2013 and $9,000 at March 31, 2013	1,030,915	985,770
Inventories, net of reserve for obsolescence of $60,000 at September 30, 2013 and $51,000 at March 31, 2013	2,790,985	2,929,302
Prepaid expenses	133,200	65,891
Total current assets	4,006,483	4,107,187
Equipment, at cost:	'	'
Furniture, fixtures and equipment	3,493,115	2,691,057
Customer-site equipment	1,003,111	931,060
Equipment-in-progress	73,242	774,004
Accumulated depreciation	-2,870,940	-2,767,195
Equipment, net	1,698,528	1,628,926
Patents, net of accumulated amortization of $203,341 at September 30, 2013 and $190,770 at March 31, 2013	254,206	237,606
Other assets	11,504	9,215
TOTAL ASSETS	5,970,721	5,982,934
Current liabilities:	'	'
Line of credit	534,192	'
Accounts payable	611,609	823,347
Accrued compensation	233,346	319,116
Other accrued liabilities	378,456	446,171
Lease payable - short term	63,012	'
Total current liabilities	1,820,615	1,588,634
Lease payable - long term	88,982	'
Total liabilities	1,909,597	1,588,634
Commitments and contingencies	'	'
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; 8,210,100 shares issued and outstanding at September 30, 2013 and March 31, 2013	21,598,064	21,569,993
Accumulated (deficit)	-17,536,940	-17,175,693
Total shareholders' equity	4,061,124	4,394,300
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$5,970,721	$5,982,934

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Mar. 31, 2013
Condensed Balance Sheets	'	'
Accounts receivable, allowance for doubtful accounts (in dollars)	$5,000	$9,000
Inventories, reserve for obsolescence (in dollars)	60,000	51,000
Patents, accumulated amortization (in dollars)	$203,341	$190,770
Preferred stock, par value	$0	$0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock and additional paid-in capital, par value	$0	$0
Common stock and additional paid-in capital, shares authorized	100,000,000	100,000,000
Common stock and additional paid-in capital, shares issued	8,210,100	8,210,100
Common stock and additional paid-in capital, shares outstanding	8,210,100	8,210,100

Condensed_Statements_of_Operat

Condensed Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
NET REVENUE:	'	'	'	'
Product	$2,589,069	$2,805,808	$5,207,998	$5,611,158
Service	56,395	68,183	119,315	364,004
Total Revenue	2,645,464	2,873,991	5,327,313	5,975,162
COST OF REVENUE:	'	'	'	'
Product	1,216,158	1,202,122	2,390,107	2,406,234
Service	22,144	59,575	72,147	208,295
Total Cost of Revenue	1,238,302	1,261,697	2,462,254	2,614,529
GROSS PROFIT	1,407,162	1,612,294	2,865,059	3,360,633
OPERATING EXPENSES:	'	'	'	'
Sales and marketing	713,792	945,266	1,664,977	1,812,272
General and administrative	355,067	452,233	708,111	979,878
Research and development	315,649	477,376	703,735	820,122
Total operating expenses	1,384,508	1,874,875	3,076,823	3,612,272
OPERATING INCOME (LOSS)	22,654	-262,581	-211,764	-251,639
Interest expense, net	-14,121	-788	-23,007	-1,801
Other expense, net	-58,583	-1,326	-126,476	-945
Interest expense and other expense, net	-72,704	-2,114	-149,483	-2,746
LOSS BEFORE PROVISION FOR INCOME TAXES	-50,050	-264,695	-361,247	-254,385
NET LOSS	($50,050)	($264,695)	($361,247)	($254,385)
Net loss per share-basic and diluted (in dollars per share)	($0.01)	($0.03)	($0.04)	($0.03)
Weighted average shares-basic and diluted (in shares)	8,210,100	8,210,100	8,210,100	8,189,198

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($361,247)	($254,385)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	229,972	150,882
Stock-based compensation expense related to stock options	28,071	30,789
Provision for doubtful accounts, net	-4,000	-11,500
Provision for inventory obsolescence, net	9,000	-62,000
Change in operating assets and liabilities:	'	'
Accounts receivable	-41,145	354,811
Inventories	129,317	78,548
Prepaid expenses and other assets	-69,598	-78,869
Accounts payable	-211,738	-312,114
Accrued compensation and other accrued liabilities	-153,485	58,448
Net cash (used in) operating activities	-444,853	-45,390
Cash flows from investing activities:	'	'
Acquisition of property and equipment	-135,009	-176,635
Patent costs	-29,171	-11,947
Net cash (used in) investing activities	-164,180	-188,582
Cash flows from financing activities:	'	'
Borrowings from credit facility	534,192	'
Proceeds from the issuance of common stock	'	255,000
Cost of the issuance of common stock	'	-27,984
Net cash provided by financing activities	534,192	227,016
Net decrease in cash and cash equivalents	-74,841	-6,956
Cash and cash equivalents, beginning of period	126,224	564,671
Cash and cash equivalents, end of period	$51,383	$557,715

ORGANIZATION_AND_NATURE_OF_BUS

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Sep. 30, 2013
ORGANIZATION AND NATURE OF BUSINESS	'
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 patients undergoing minimally-invasive surgery. We believe that our patented AEM® (Active Electrode Monitoring) surgical instrument technology is changing the marketplace for electrosurgical devices and instruments by providing a solution to a patient safety risk in laparoscopic surgery. Our sales to date have been made principally in the United States.
	We have an accumulated deficit of $17,536,940 at September 30, 2013. Operating funds have been provided primarily by issuances of our common stock and warrants, a line of credit, and the exercise of stock options to purchase our common stock. Should our liquidity be diminished in the future because of operating losses, we may be required to seek additional capital in the future. Our line of credit agreement with Silicon Valley Bank is subject to renewal in May 2014. There are no assurances that additional capital will be available to us on terms acceptable to us, or at all. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to generate profitable operations, and if needed, the ability to raise substantial capital sufficient to fund our commitments and ongoing losses.
	The six months ended September 30, 2013 includes an error correction for $70,500 that related to the quarter ended June 30, 2013. The adjustment was to increase cost of revenue by $70,500 and to reduce net inventories by $70,500. The result was that the loss for the quarter ended June 30, 2013 increased from $240,697 to 311,197, or from $(0.03) to $(0.04) per share.
	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_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation.  The condensed interim financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. The condensed interim financial statements and notes thereto should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013, filed on June 28, 2013.
	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.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expense during the reporting period. Actual results could differ from those estimates.
	Cash and Cash Equivalents.  For purposes of reporting cash flows, we consider all cash and highly liquid investments with an original maturity of three months or less to be cash equivalents.
	Fair Value of Financial Instruments.  Our financial instruments consist of cash and cash equivalents, short-term trade receivables and payables and a line of credit. The carrying values of cash and cash equivalents, short-term trade receivables and payables approximate their fair value due to their short maturities. The interest rate associated with the line of credit is variable and based upon fluctuations of the prime rate, thus the carrying value approximates fair value.
	Concentration of Credit Risk.  Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash and cash equivalents, accounts receivable and a line of credit. The amount of cash on deposit with financial institutions may exceed the $250,000 federally insured limit at September 30, 2013. We believe that cash on deposit that exceeds $250,000 with financial institutions is financially sound and the risk of loss is minimal.
	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, 2013 of $1,030,915 included 4% from one customer. The net accounts receivable balance at March 31, 2013 of $985,770 included 6% from one customer.
	Warranty Accrual.  We provide for the estimated cost of product warranties at the time sales are recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers, our warranty obligation is based upon historical experience and is also affected by product failure rates and material usage incurred in correcting a product failure. Should actual product failure rates or material usage costs differ from our estimates, revisions to the estimated warranty liability would be required.
	Inventories.  Inventories are stated at the lower of cost (first-in, first-out basis) or market. We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. At September 30, 2013 and March 31, 2013, inventory consisted of the following:
		September 30, 2013			March 31, 2013
	Raw materials	$	1,757,003		$	1,843,357
	Finished goods	1,093,982			1,136,945
	Total gross inventories	2,850,985			2,980,302
	Less reserve for obsolescence	(60,000		)	(51,000		)
	Total net inventories	$	2,790,985		$	2,929,302
	Property and Equipment. Property and equipment are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally three to seven years. We use the straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred and major additions, replacements and improvements are capitalized.
	Long-Lived Assets.  Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A long-lived asset is considered impaired when estimated future cash flows related to the asset, undiscounted and without interest, are insufficient to recover the carrying amount of the asset. If deemed impaired, the long-lived asset is reduced to its estimated fair value. Long-lived assets to be disposed of are reported at the lower of their carrying amount or estimated fair value less cost to sell.
	Patents.  The costs of applying for patents are capitalized and amortized on a straight-line basis over the lesser of the patent’s economic or legal life (20 years from the date of application in the United States). Capitalized costs are expensed if patents are not issued. We review the carrying value of our patents periodically to determine whether the patents have continuing value and such reviews could result in the conclusion that the recorded amounts have been impaired.
	Income Taxes.  We account for income taxes under the provisions of FASB Accounting Standards Codification (“ASC”) Topic 740, “Accounting for Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. ASC 740 also requires recognition of deferred tax assets for the expected future tax effects of all deductible temporary differences, loss carryforwards and tax credit carryforwards. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits which, more likely than not based on current circumstances, are not expected to be realized. As a result, no provision for income tax is reflected in the accompanying statements of operations. Should we achieve sufficient, sustained income in the future, we may conclude that some or all of the valuation allowance should be reversed. We are required to make many subjective assumptions and judgments regarding our income tax exposures. At September 30, 2013, we had no unrecognized tax benefits, which would affect the effective tax rate if recognized and had no accrued interest, or penalties related to uncertain tax positions.
	Revenue Recognition.  Revenue from product sales is recorded when we ship the product and title has passed to the customer, provided that we have evidence of a customer arrangement and can conclude that collection is probable. Our shipping policy is FOB Shipping Point. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims. We have no ongoing obligations related to product sales, except for normal warranty obligations. Revenue from engineering services is recognized when the service is performed.
	Research and Development Expenses.  We expense research and development costs for products and processes as incurred.
	Stock-Based Compensation.  Stock-based compensation is presented in accordance with the guidance of ASC Topic 718, “Compensation — Stock Compensation” (“ASC 718”). Under the provisions of ASC 718, companies are required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our statements of operations.
	Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2013 and 2012 was $11,280 and $16,128, respectively, and for the six months ended September 30, 2013 and 2012 was $28,071 and $30,789, respectively, which consisted of stock-based compensation expense related to grants of employee stock options.
	Segment Reporting.  We have concluded that we have one operating segment.
	Recent Accounting Pronouncements.  We have reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations.

BASIC_AND_DILUTED_INCOME_AND_L

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	6 Months Ended
	Sep. 30, 2013
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	'
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 loss per share:
		Three Months Ended						Six Months Ended
		September 30,			September 30,			September 30,			September 30,
		2013			2012			2013			2012
	Net loss	$	(50,050	)	$	(264,695	)	$	(361,247	)	$	(254,385	)
	Weighted-average shares — basic	8,210,100			8,210,100			8,210,100			8,189,198
	Effect of dilutive potential common shares	—			—			—			—
	Weighted-average shares — diluted	8,210,100			8,210,100			8,210,100			8,189,198
	Net income loss per share — basic	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.03	)
	Net income loss per share — diluted	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.03	)
	Antidilutive employee stock options	431,750			760,000			431,750			760,000

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2013
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	Note 4.   COMMITMENTS AND CONTINGENCIES
	We currently lease our facilities at 6797 Winchester Circle, Boulder, Colorado under noncancelable lease agreements through July 31, 2014. The minimum future lease payment, by fiscal year, as of September 30, 2013 is as follows:
	Fiscal Year	Amount
	2014 (six months remaining)	$	160,040
	2015	108,303
	Total	$	268,343
	Our minimum future capital equipment lease payments with General Electric Capital Corporation as of September 30, 2013, by fiscal year, are as follows:
	Fiscal Year	Amount
	2014 (six months remaining)	$	37,315
	2015	76,207
	2016	53,470
	2017	4,283
	Total	171,275
	Less portion representing interest	(19,281		)
	Present value of minimum lease payment	151,994
	Less current portion	(63,012		)
		$	88,982
	Included in our furniture, fixtures and equipment balance is leased equipment that was acquired, under the provisions of a long-term capital lease, during the quarter ended June 30, 2013. The equipment had an original cost of $177,547 and has a net book value of $149,777 at September 30, 2013.
	On May 10, 2012, we signed an amendment to our credit facility agreement with Silicon Valley Bank, effective May 10, 2012. The terms of the credit facility include a line of credit for $2,000,000 for two years at an interest rate calculated at the prime rate plus 1.25%, subject to increase upon a default. Our borrowing under the credit facility is limited by our eligible receivables and inventory at the time of borrowing. The credit facility is secured by all tangible and intangible assets, whether now owned or hereafter acquired, wherever located. As of September 30, 2013, under our eligible receivables and inventory limit, we had an additional $583,000 available to borrow. Our credit facility agreement with Silicon Valley Bank requires us to meet certain financial covenants. During our quarter that ended June 30, 2013, we failed to meet the minimum defined quick debt ratio covenant. As a result, the lender may impose a monthly maintenance fee, requires additional financial reporting and restricts our borrowings to the beginning of each week instead of when needed.
	Aside from the operating and capital leases, 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 as of September 30, 2013. FDA inspections are conducted periodically at the discretion of the FDA. Our latest inspection by the FDA occurred in December 2012.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION	'
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, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options and employee stock purchases for the three and six months ended September 30, 2013 and 2012, which was allocated as follows:
		Three Months Ended				Six Months Ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012
	Cost of sales	$	345	$	685	$	690	$	1,370
	Sales and marketing	1,897		972		3,796		1,182
	General and administrative	6,324		11,597		18,158		22,660
	Research and development	2,714		2,874		5,427		5,577
	Stock-based compensation expense	$	11,280	$	16,128	$	28,071	$	30,789
	The Black-Scholes 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 20,000 and 40,000 stock options granted during the three and six months ended September 30, 2013, respectively. There were 135,250 and 155,250 stock options forfeited during the three and six months ended September 30, 2013.
	As of September 30, 2013, $216,000 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years.

RELATED_PARTY_TRANSACTION

RELATED PARTY TRANSACTION	6 Months Ended
	Sep. 30, 2013
RELATED PARTY TRANSACTION	'
RELATED PARTY TRANSACTION	'
	Note 6.   RELATED PARTY TRANSACTION
	We paid consulting fees of $15,412 and $34,021 to an entity owned by one of our directors during the three and six months ended September 30, 2013 and $13,251 and $38,812 during the three and six months ended September 30, 2012, respectively. We paid consulting fees of $3,991 and $3,991 to an entity owned by our Executive Chairman during the three and six months ended September 30, 2013, respectively, and $24,358 and $71,607 during the three and six months ended September 30, 2012, respectively.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	Note 7.   SUBSEQUENT EVENTS
	We evaluated all of our activity and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Basis of Presentation	'
	Basis of Presentation.  The condensed interim financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. The condensed interim financial statements and notes thereto should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013, filed on June 28, 2013.
	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.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expense during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents.  For purposes of reporting cash flows, we consider all cash and highly liquid investments with an original maturity of three months or less to be cash equivalents.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments.  Our financial instruments consist of cash and cash equivalents, short-term trade receivables and payables and a line of credit. The carrying values of cash and cash equivalents, short-term trade receivables and payables approximate their fair value due to their short maturities. The interest rate associated with the line of credit is variable and based upon fluctuations of the prime rate, thus the carrying value approximates fair value.
Concentration of Credit Risk	'
	Concentration of Credit Risk.  Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash and cash equivalents, accounts receivable and a line of credit. The amount of cash on deposit with financial institutions may exceed the $250,000 federally insured limit at September 30, 2013. We believe that cash on deposit that exceeds $250,000 with financial institutions is financially sound and the risk of loss is minimal.
	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, 2013 of $1,030,915 included 4% from one customer. The net accounts receivable balance at March 31, 2013 of $985,770 included 6% from one customer.
Warranty Accrual	'
	Warranty Accrual.  We provide for the estimated cost of product warranties at the time sales are recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers, our warranty obligation is based upon historical experience and is also affected by product failure rates and material usage incurred in correcting a product failure. Should actual product failure rates or material usage costs differ from our estimates, revisions to the estimated warranty liability would be required.
Inventories	'
	Inventories.  Inventories are stated at the lower of cost (first-in, first-out basis) or market. We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. At September 30, 2013 and March 31, 2013, inventory consisted of the following:
		September 30, 2013			March 31, 2013
	Raw materials	$	1,757,003		$	1,843,357
	Finished goods	1,093,982			1,136,945
	Total gross inventories	2,850,985			2,980,302
	Less reserve for obsolescence	(60,000		)	(51,000		)
	Total net inventories	$	2,790,985		$	2,929,302
Property and Equipment	'
	Property and Equipment. Property and equipment are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally three to seven years. We use the straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred and major additions, replacements and improvements are capitalized.
Long-Lived Assets	'
	Long-Lived Assets.  Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A long-lived asset is considered impaired when estimated future cash flows related to the asset, undiscounted and without interest, are insufficient to recover the carrying amount of the asset. If deemed impaired, the long-lived asset is reduced to its estimated fair value. Long-lived assets to be disposed of are reported at the lower of their carrying amount or estimated fair value less cost to sell.
Patents	'
	Patents.  The costs of applying for patents are capitalized and amortized on a straight-line basis over the lesser of the patent’s economic or legal life (20 years from the date of application in the United States). Capitalized costs are expensed if patents are not issued. We review the carrying value of our patents periodically to determine whether the patents have continuing value and such reviews could result in the conclusion that the recorded amounts have been impaired.
Income Taxes	'
	Income Taxes.  We account for income taxes under the provisions of FASB Accounting Standards Codification (“ASC”) Topic 740, “Accounting for Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. ASC 740 also requires recognition of deferred tax assets for the expected future tax effects of all deductible temporary differences, loss carryforwards and tax credit carryforwards. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits which, more likely than not based on current circumstances, are not expected to be realized. As a result, no provision for income tax is reflected in the accompanying statements of operations. Should we achieve sufficient, sustained income in the future, we may conclude that some or all of the valuation allowance should be reversed. We are required to make many subjective assumptions and judgments regarding our income tax exposures. At September 30, 2013, we had no unrecognized tax benefits, which would affect the effective tax rate if recognized and had no accrued interest, or penalties related to uncertain tax positions.
Revenue Recognition	'
	Revenue Recognition.  Revenue from product sales is recorded when we ship the product and title has passed to the customer, provided that we have evidence of a customer arrangement and can conclude that collection is probable. Our shipping policy is FOB Shipping Point. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims. We have no ongoing obligations related to product sales, except for normal warranty obligations. Revenue from engineering services is recognized when the service is performed.
Research and Development Expenses	'
	Research and Development Expenses.  We expense research and development costs for products and processes as incurred.
Stock-Based Compensation	'
	Stock-Based Compensation.  Stock-based compensation is presented in accordance with the guidance of ASC Topic 718, “Compensation — Stock Compensation” (“ASC 718”). Under the provisions of ASC 718, companies are required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our statements of operations.
	Stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2013 and 2012 was $11,280 and $16,128, respectively, and for the six months ended September 30, 2013 and 2012 was $28,071 and $30,789, respectively, which consisted of stock-based compensation expense related to grants of employee stock options.
Segment Reporting	'
	Segment Reporting.  We have concluded that we have one operating segment.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements.  We have reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Schedule of inventory	'
		September 30, 2013			March 31, 2013
	Raw materials	$	1,757,003		$	1,843,357
	Finished goods	1,093,982			1,136,945
	Total gross inventories	2,850,985			2,980,302
	Less reserve for obsolescence	(60,000		)	(51,000		)
	Total net inventories	$	2,790,985		$	2,929,302

BASIC_AND_DILUTED_INCOME_AND_L1

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Sep. 30, 2013
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	'
Schedule of calculation of basic and diluted net loss per share	'
		Three Months Ended						Six Months Ended
		September 30,			September 30,			September 30,			September 30,
		2013			2012			2013			2012
	Net loss	$	(50,050	)	$	(264,695	)	$	(361,247	)	$	(254,385	)
	Weighted-average shares — basic	8,210,100			8,210,100			8,210,100			8,189,198
	Effect of dilutive potential common shares	—			—			—			—
	Weighted-average shares — diluted	8,210,100			8,210,100			8,210,100			8,189,198
	Net income loss per share — basic	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.03	)
	Net income loss per share — diluted	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.03	)
	Antidilutive employee stock options	431,750			760,000			431,750			760,000

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Sep. 30, 2013
Facilities at 6797 Winchester Circle, Boulder, Colorado	'
Commitments and contingencies	'
Schedule of minimum future lease payments, by fiscal year	'
	The minimum future lease payment, by fiscal year, as of September 30, 2013 is as follows:
	Fiscal Year	Amount
	2014 (six months remaining)	$	160,040
	2015	108,303
	Total	$	268,343
Equipment leases with General Electric Capital Corporation	'
Commitments and contingencies	'
Schedule of minimum future capital equipment lease payments	'
	Our minimum future capital equipment lease payments with General Electric Capital Corporation as of September 30, 2013, by fiscal year, are as follows:
	Fiscal Year	Amount
	2014 (six months remaining)	$	37,315
	2015	76,207
	2016	53,470
	2017	4,283
	Total	171,275
	Less portion representing interest	(19,281		)
	Present value of minimum lease payment	151,994
	Less current portion	(63,012		)
		$	88,982

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION	'
Summary of stock-based compensation expense related to employee stock options and employee stock purchases	'
		Three Months Ended				Six Months Ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012
	Cost of sales	$	345	$	685	$	690	$	1,370
	Sales and marketing	1,897		972		3,796		1,182
	General and administrative	6,324		11,597		18,158		22,660
	Research and development	2,714		2,874		5,427		5,577
	Stock-based compensation expense	$	11,280	$	16,128	$	28,071	$	30,789

ORGANIZATION_AND_NATURE_OF_BUS1

ORGANIZATION AND NATURE OF BUSINESS (Details) (USD $)	3 Months Ended			6 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
ORGANIZATION AND NATURE OF BUSINESS	'	'	'	'	'	'
Accumulated deficit	$17,536,940	'	'	$17,536,940	'	$17,175,693
Adjustment for error correction	'	'	'	'	'	'
Adjustments for error corrections	'	'	'	70,500	'	'
Loss	50,050	311,197	264,695	361,247	254,385	'
Net loss per share-basic and diluted (in dollars per share)	($0.01)	($0.04)	($0.03)	($0.04)	($0.03)	'
Previously reported	'	'	'	'	'	'
Adjustment for error correction	'	'	'	'	'	'
Loss	'	240,697	'	'	'	'
Net loss per share-basic and diluted (in dollars per share)	'	($0.03)	'	'	'	'
Error correction of cost of revenue	'	'	'	'	'	'
Adjustment for error correction	'	'	'	'	'	'
Adjustments for error corrections	'	'	'	70,500	'	'
Error correction of inventory	'	'	'	'	'	'
Adjustment for error correction	'	'	'	'	'	'
Adjustments for error corrections	'	'	'	($70,500)	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	6 Months Ended	12 Months Ended
	Sep. 30, 2013	Mar. 31, 2013
	item	item
Concentration of credit risk	'	'
Federally insured limit	250,000	'
Number of financial institutions which maintain a majority of the entity's cash balances	1	'
Net accounts receivable	1,030,915	985,770
Inventories	'	'
Raw materials	1,757,003	1,843,357
Finished goods	1,093,982	1,136,945
Total gross inventories	2,850,985	2,980,302
Less reserve for obsolescence	-60,000	-51,000
Total net inventories	2,790,985	2,929,302
Accounts receivable | Customer concentration risk	'	'
Concentration of credit risk	'	'
Number of major customers	1	1
Accounts receivable | Customer concentration risk | One customer	'	'
Concentration of credit risk	'	'
Concentration risk (as a percent)	4.00%	6.00%
Accounts receivable | Credit concentration risk	'	'
Concentration of credit risk	'	'
Concentration risk (as a percent)	0.00%	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	6 Months Ended
	Sep. 30, 2013
Minimum	'
Property and Equipment	'
Estimated useful lives of assets	'3 years
Maximum	'
Property and Equipment	'
Estimated useful lives of assets	'7 years

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	6 Months Ended
	Sep. 30, 2013
Income Taxes	'
Provision for income taxes	$0
Unrecognized tax benefits	0
Amount of income tax related interest or penalties assessed or recorded	0
Revenue Recognition	'
Obligations related to product sales	$0
Patents	'
Patents	'
Economic or legal life	'20 years

SUMMARY_OF_SIGNIFICANT_ACCOUNT6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
			item
Stock-Based Compensation	'	'	'	'
Stock-based compensation expense related to grants of employee stock options	$11,280	$16,128	$28,071	$30,789
Segment Reporting	'	'	'	'
Number of operating segments	'	'	1	'

BASIC_AND_DILUTED_INCOME_AND_L2

BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) (USD $)	3 Months Ended			6 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE	'	'	'	'	'
Net loss	($50,050)	($311,197)	($264,695)	($361,247)	($254,385)
Weighted-average shares - basic (in shares)	8,210,100	'	8,210,100	8,210,100	8,189,198
Weighted-average shares - diluted (in shares)	8,210,100	'	8,210,100	8,210,100	8,189,198
Net income loss per share-basic (in dollars per share)	($0.01)	'	($0.03)	($0.04)	($0.03)
Net income loss per share-diluted (in dollars per share)	($0.01)	'	($0.03)	($0.04)	($0.03)
Antidilutive employee stock options (in shares)	431,750	'	760,000	431,750	760,000

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	0 Months Ended
	10-May-12	Sep. 30, 2013
Minimum future capital equipment lease payments	'	'
Less current portion	'	$63,012
Noncurrent portion	'	88,982
Line of credit	'	'
Credit facility agreement	'	'
Maximum borrowing capacity	2,000,000	'
Term	'2 years	'
Variable rate basis	'prime rate	'
Variable rate margin (as a percent)	1.25%	'
Additional amount available to borrow under eligible receivables and inventory limit	'	583,000
Facilities at 6797 Winchester Circle, Boulder, Colorado	'	'
Minimum future lease payments, by fiscal year	'	'
2014 (six months remaining)	'	160,040
2015	'	108,303
Total	'	268,343
Equipment leases with General Electric Capital Corporation	'	'
Minimum future capital equipment lease payments	'	'
2014 (six months remaining)	'	37,315
2015	'	76,207
2016	'	53,470
2017	'	4,283
Total	'	171,275
Less portion representing interest	'	-19,281
Present value of minimum lease payment	'	151,994
Less current portion	'	-63,012
Noncurrent portion	'	88,982
Original cost of lease equipment acquired	'	177,547
Net book value of lease equipment acquired	'	$149,777

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock-based compensation expense related to employee stock options and employee stock purchases	'	'	'	'
Stock-based compensation expense	$11,280	$16,128	$28,071	$30,789
Unrecognized compensation costs related to nonvested stock options	'	'	'	'
Stock options granted during the period (in shares)	20,000	'	40,000	'
Stock options forfeited during the period (in shares)	135,250	'	155,250	'
Total unrecognized compensation costs related to nonvested stock options	216,000	'	216,000	'
Expected period for recognition of compensation costs related to nonvested stock options	'	'	'5 years	'
Cost of sales	'	'	'	'
Stock-based compensation expense related to employee stock options and employee stock purchases	'	'	'	'
Stock-based compensation expense	345	685	690	1,370
Sales and marketing	'	'	'	'
Stock-based compensation expense related to employee stock options and employee stock purchases	'	'	'	'
Stock-based compensation expense	1,897	972	3,796	1,182
General and administrative	'	'	'	'
Stock-based compensation expense related to employee stock options and employee stock purchases	'	'	'	'
Stock-based compensation expense	6,324	11,597	18,158	22,660
Research and development	'	'	'	'
Stock-based compensation expense related to employee stock options and employee stock purchases	'	'	'	'
Stock-based compensation expense	$2,714	$2,874	$5,427	$5,577

RELATED_PARTY_TRANSACTION_Deta

RELATED PARTY TRANSACTION (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Director, one	'	'	'	'
Related party transaction	'	'	'	'
Consulting fees paid	$15,412	$13,251	$34,021	$38,812
Executive Chairman	'	'	'	'
Related party transaction	'	'	'	'
Consulting fees paid	$3,991	$24,358	$3,991	$71,607