Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | May 31, 2023 | Sep. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 4,029,059 | ||
Entity Common Stock, Shares Outstanding | 11,769,543 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | Gries & Associates, LLC | ||
Auditor Firm ID | 6778 | ||
Auditor Location | Denver, CO |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash | $ 188,966 | $ 949,645 |
Accounts receivable | 920,721 | 947,623 |
Inventories, net of reserve for obsolescence of $51,000 at March 31, 2023 and $36,000 at March 31, 2022 | 1,899,202 | 1,584,321 |
Prepaid expenses and other assets | 115,714 | 120,133 |
Total current assets | 3,124,603 | 3,601,722 |
Equipment: | ||
Furniture, fixtures and equipment, at cost | 2,615,676 | 2,468,949 |
Accumulated depreciation | (2,312,400) | (2,279,652) |
Equipment, net | 303,276 | 189,297 |
Right of use asset | 496,004 | 786,407 |
Patents, net of accumulated amortization of $306,946 at March 31, 2023 and $282,081 at March 31, 2022 | 163,133 | 180,719 |
Other assets | 46,953 | 34,240 |
TOTAL ASSETS | 4,133,969 | 4,792,385 |
Current liabilities: | ||
Accounts payable | 252,957 | 576,381 |
Line of credit | 177,402 | 0 |
Secured notes | 44,491 | 21,491 |
Accrued compensation | 217,724 | 190,853 |
Other accrued liabilities | 84,578 | 125,179 |
Accrued lease liability | 353,674 | 362,487 |
Total current liabilities | 1,130,826 | 1,276,391 |
Long-term liability: | ||
Secured notes | 268,512 | 205,809 |
Accrued lease liability | 239,820 | 564,321 |
Total liabilities | 1,639,158 | 2,046,521 |
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 March 31, 2023 and 11,719,543 at March 31, 2022 | 24,348,075 | 24,275,183 |
Accumulated (deficit) | (21,853,264) | (21,529,319) |
Total shareholders’ equity | 2,494,811 | 2,745,864 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 4,133,969 | $ 4,792,385 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Inventories, reserve for obsolescence | $ 51,000 | $ 36,000 |
Accumulated amortization | $ 306,946 | $ 282,081 |
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 | 11,719,543 |
Common stock and additional paid-in capital, shares outstanding | 11,769,543 | 11,719,543 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
NET REVENUE: | ||
Total revenue | $ 7,348,514 | $ 7,668,636 |
COST OF REVENUE: | ||
Total cost of revenue | 3,315,981 | 3,880,218 |
GROSS PROFIT | 4,032,533 | 3,788,418 |
OPERATING EXPENSES: | ||
Sales and marketing | 2,032,415 | 2,084,110 |
General and administrative | 1,486,796 | 1,381,087 |
Research and development | 816,119 | 918,155 |
Total operating expenses | 4,335,330 | 4,383,352 |
OPERATING (LOSS) | (302,797) | (594,934) |
OTHER INCOME (EXPENSE): | ||
Interest expense, net | (19,529) | (7,224) |
Extinguishment of debt income | 0 | 533,118 |
Other income, (expense) net | (1,619) | 3,446 |
Interest expense, extinguishment of debt income and other income, expense, net | (21,148) | 529,340 |
(LOSS) BEFORE PROVISION FOR INCOME TAXES | (323,945) | (65,594) |
Provision for income taxes | 0 | 0 |
NET LOSS) | (323,945) | (65,594) |
Product [Member] | ||
NET REVENUE: | ||
Total revenue | 6,885,158 | 6,914,678 |
COST OF REVENUE: | ||
Total cost of revenue | 3,313,620 | 3,509,158 |
GROSS PROFIT | 3,571,538 | 3,405,520 |
OPERATING EXPENSES: | ||
OPERATING (LOSS) | (763,792) | (977,832) |
Service [Member] | ||
NET REVENUE: | ||
Total revenue | 463,356 | 753,958 |
COST OF REVENUE: | ||
Total cost of revenue | 2,361 | 371,060 |
GROSS PROFIT | 460,995 | 382,898 |
OPERATING EXPENSES: | ||
OPERATING (LOSS) | $ 460,995 | $ 382,898 |
Statements of Operations (Paren
Statements of Operations (Parenthetical) - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Earnings Per Share, Basic | $ (0.03) | $ (0.01) |
Earnings Per Share, Diluted | $ (0.03) | $ (0.01) |
Weighted Average Number of Shares Outstanding, Basic | 11,762,995 | 11,625,118 |
Weighted Average Number of Shares Outstanding, Diluted | 11,762,995 | 11,625,118 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Common Stock And Additional Paid In Capital [Member] | ||
Statement [Line Items] | ||
Beginning balance, value | $ 24,275,183 | $ 24,265,831 |
Beginning balance , shares | 11,719,543 | 11,582,641 |
Net loss | ||
Compensation expense related to equities | 51,892 | 40,853 |
Options exercised | $ 21,000 | $ (31,501) |
Options exercised, shares | 50,000 | 136,902 |
Ending balance, value | $ 24,348,075 | $ 24,275,183 |
Ending balance , shares | 11,769,543 | 11,719,543 |
Retained Earnings [Member] | ||
Statement [Line Items] | ||
Beginning balance, value | $ (21,529,319) | $ (21,463,725) |
Net loss | (323,945) | (65,594) |
Compensation expense related to equities | ||
Ending balance, value | (21,853,264) | (21,529,319) |
Beginning balance, value | 2,745,864 | 2,802,106 |
Net loss | (323,945) | (65,594) |
Compensation expense related to equities | 51,892 | 40,863 |
Options exercised | 21,000 | (31,511) |
Ending balance, value | $ 2,494,811 | $ 2,745,864 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows (used in) operating activities: | ||
Net (loss) | $ (323,945) | $ (65,594) |
Adjustments to reconcile net (loss) income to net cash (used in) operating activities: | ||
Extinguishment of debt income | 0 | (533,118) |
Write-off of tooling | 0 | 31,000 |
Depreciation and amortization | 86,906 | 113,470 |
Stock-based compensation expense related to stock options | 51,892 | 40,853 |
(Recovery from) doubtful accounts, net change | 0 | (35,000) |
Provision for (recovery from) for inventory obsolescence, net change | 15,000 | (34,000) |
Other income from release of account payable | 0 | 0 |
Change in operating assets and liabilities: | ||
Right of use asset, net | (42,912) | (28,414) |
Accounts receivable | 26,902 | 163,456 |
Inventories | (329,881) | (105,187) |
Prepaid expenses and other assets | (8,294) | (31,435) |
Accounts payable | (323,423) | 187,293 |
Accrued compensation and other accrued liabilities | (13,730) | (147,756) |
Net cash (used in) operating activities | (861,485) | (444,432) |
Cash flows (used in) investing activities: | ||
Acquisition of property and equipment | (173,269) | (17,550) |
Patent costs | (10,030) | (17,851) |
Net cash (used in) investing activities | (183,299) | (35,401) |
Cash flows provided by (used in) financing activities: | ||
Borrowings from credit facility, net change | 239,752 | 0 |
Borrowings from (paydown of) secured notes | 23,353 | (13,360) |
Net proceeds (payments) from exercise of stock options | 21,000 | (31,501) |
Net cash provided by (used in) financing activities | 284,105 | (44,861) |
Net (decrease) in cash | (760,679) | (524,694) |
Cash, beginning of fiscal year | 949,645 | 1,474,339 |
Cash, end of fiscal year | 188,966 | 949,645 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | $ 19,529 | $ 7,224 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to patients undergoing minimally-invasive surgery. We believe that our patented AEM ® We have an accumulated deficit of $ 21,853,264 Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals in the United States. In February 2023, we signed a Proof of Concept Services Agreement with Vicarious Surgical Inc. (“Vicarious”). The Vicarious robot design intends to maximize visualization, precision, and control of instruments in robotic-assisted minimally invasive surgery. In February 2023, we signed a Supplier Agreement (“Agreement”) with Human Xtensions (“Human X”). Under the Agreement, we will perform manufacturing services, which includes procuring materials, manufacturing, assembling, and testing products pursuant to detailed written specifications for Human X. Human X develops unmediated surgical systems that combine the capacity of robotics with the benefits of handheld tools and ergonomic bed mounts. We had (net loss) available to shareholders of $( 323,945 65,594 188,966 227,300 533,118 1.0 1 The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates in the Preparation of Financial Statements Cash and Cash Equivalents Fair Value of Financial Instruments Concentration of Credit Risk 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. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We charge interest on past due accounts on a case-by-case basis. The net accounts receivable balance at March 31, 2023 of $ 947,623 1,024,370 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 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. There was no warranty accrual at March 31, 2023. Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the net realizable 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 March 31, 2023 and 2022, inventory consisted of the following: Schedule of inventory March 31, 2023 March 31, 2022 Raw materials $ 1,456,473 $ 1,083,387 Finished goods 493,729 536,934 Total gross inventories 1,950,202 1,620,321 Less reserve for obsolescence (51,000 ) (36,000 ) Total net inventories $ 1,899,202 $ 1,584,321 A summary of the activity in our inventory reserve for obsolescence is as follows: Summary of inventory reserve for obsolescence Years Ended March 31, 2023 March 31, 2022 Balance, beginning of year $ 36,000 $ 70,000 Provision for estimated obsolescence 49,917 17,578 Write-off of obsolete inventory (34,917 ) (51,578 ) Balance, end of year $ 51,000 $ 36,000 Property and Equipment 59,290 62,970 Long-Lived Assets Patents Summary of patents March 31, 2023 March 31, 2022 Patents issued $ 432,345 $ 496,901 Write off of obsolete patents (2,500 ) (86,239 ) Accumulated amortization (292,066 ) (265,762 ) Patents issued, net of accumulated amortization 137,779 144,900 Patent applications 37,733 52,138 Accumulated amortization (12,380 ) (16,319 ) Patent applications, net of accumulated amortization 25,353 35,819 Total net patents and patent applications $ 163,132 $ 180,719 The expected annual amortization expense related to patents and patent applications as of March 31, 2023, for the next five fiscal years, is as follows: Schedule of expected annual amortization expense Fiscal Year Amount 2024 $ 24,152 2025 22,293 2026 18,558 2027 20,985 Thereafter 77,144 Total $ 163,132 Other Accrued Liabilities Schedule of other accrued liabilities March 31, 2023 March 31, 2022 Sales commissions $ 34,668 29,157 Sales and use tax 12,769 13,967 Marketing fees 13,788 15,735 Payroll taxes, payroll 16,883 53,998 Miscellaneous 6,470 12,322 Total other accrued liabilities $ 84,578 $ 125,179 Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The cumulative effect of adopting ASC 740 on April 1, 2007 has been recorded net in deferred tax assets, which resulted in no ASC 740 liability on the balance sheet. The total amount of unrecognized tax benefits as of the date of adoption was zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit the Company’s tax returns from fiscal year ended March 31, 2003 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statements of operations. There have been no income tax related interest or penalties assessed or recorded. Because the Company has provided a full valuation allowance on all of its deferred tax assets, the adoption of ASC 740 had no impact on our effective tax rate. Revenue Recognition Sales Taxes Research and Development Expenses Advertising Costs Stock-Based Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized in our statements of operations for fiscal years 2023 and 2022 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2023, based on the grant date fair value. Compensation expense for all share-based payment is recognized using the straight-line, single-option method. As stock-based compensation expense recognized in the accompanying statements of operations for fiscal years 2023 and 2022 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We used the Black-Scholes option-pricing model (“Black-Scholes model”) to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for fiscal years 2023 and 2022 was $ 51,892 40,853 Stock-based compensation expense related to director and employee stock options under ASC 718 for fiscal years 2022 and 2021 was allocated as follows: Schedule of stock-based compensation expense Years Ended March 31, 2023 March 31, 2022 Cost of sales $ 631 $ 619 Sales and marketing 7,009 6,067 General and administrative 39,630 30,955 Research and development 4,622 3,212 Stock-based compensation expense $ 51,892 $ 40,853 Segment Reporting Schedule of operating segments Year Ended March 31, 2023 Year Ended March 31, 2022 Product Service Total Product Service Total Net revenue $ 6,885,158 $ 463,356 $ 7,348,514 $ 6,914,678 $ 753,958 $ 7,668,636 Cost of revenue 3,313,620 2,361 3,315,981 3,509,158 371,060 3,880,218 Gross profit 3,571,538 460,995 4,032,533 3,405,520 382,898 3,788,418 Operating income (loss) (763,792 ) 460,995 (302,797 ) (977,832 ) 382,898 (594,934 ) Depreciation and amortization 86,906 — 86,906 113,470 — 113,470 Capital expenditures 173,269 — 173,269 17,550 — 17,550 Equipment and patents, net $ 466,409 $ — $ 466,409 $ 370,016 $ — $ 370,016 Basic and Diluted Income per Common Share 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 Years Ended March 31, 2023 March 31, 2022 Net income (loss) $ (323,945 ) $ (65,594 ) Weighted-average shares — basic 11,762,995 11,625,118 Effect of dilutive potential common shares — — Weighted-average shares — basic and diluted 11,762,995 11,625,118 Net loss per share — basic and diluted $ (0.03 ) $ (0.01 ) Antidilutive equity units 1,049,000 1,061,000 Recent Accounting Pronouncements |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | 3. Shareholders’ Equity Stock Option Plans. Under ASC 718, the value of each employee stock option was estimated on the date of grant using the Black-Scholes model for the purpose of financial information in accordance with ASC 718. The use of a Black-Scholes model requires the use of actual employee exercise behavior data and the use of a number of assumptions including expected volatility, risk-free interest rate and expected dividends. Employee stock options for 155,000 270,000 As of March 31, 2023, $ 194,000 Summary of assumptions for employee stock options Years Ended March 31, 2023 March 31, 2022 Risk-free interest rate 3.05 4.29 0.8 1.05 Expected life (in years) 5.0 5.0 Expected volatility 87 95 69 76 Expected dividend 0 0 Cumulative compensation cost recognized in net income or loss with respect to options that are forfeited prior to vesting is adjusted as a reduction of compensation expense in the period of forfeiture. The volatility of the stock is based on the historical volatility for the period that approximates the expected lives of the options being valued. Fair value computations are highly sensitive to the volatility factor; the greater the volatility, the higher the computed fair value of options granted. The total fair value of options granted was computed to be approximately $ 56,600 213,000 51,892 40,853 The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the use of assumptions, including the expected stock price volatility. Because our employee stock options have characteristics significantly different than those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options. A summary of our stock option activity and related information for equity compensation plans approved by security holders for each of the fiscal years ended March 31, 2023 and 2022 is as follows: Summary of stock option activity STOCK OPTIONS OUTSTANDING Number Weighted-Average BALANCE AT MARCH 31, 2021 792,000 $ 0.40 Granted 270,000 1.36 Exercised (136,902 ) 0.32 Forfeited/expired (108,098 ) 0.27 Reclassified 244,000 0.52 BALANCE AT MARCH 31, 2022 1,061,000 $ 0.65 Granted 155,000 0.51 Exercised (50,000 ) 0.42 Forfeited/expired (117,000 ) 0.47 BALANCE AT MARCH 31, 2023 1,049,000 $ 0.66 The following table summarizes information about employee stock options outstanding and exercisable at March 31, 2023: Schedule of employee stock options outstanding and exercisable STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $0.32 - $0.35 320,000 0.4 $ 0.34 264,634 $ 0.34 $0.38 - $0.50 421,000 0.8 $ 0.42 225,352 $ 0.42 $0.54 - $1.40 446,000 4.3 $ 1.03 104,929 $ 1.22 1,049,000 2.0 $ 0.66 594,915 $ 0.53 The 1,049,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. On April 1, 2021, we adopted Accounting Standards Codification (“ASC”) ASC 842 “Leases” using the initial date of adoption method, whereby the adoption does not impact any periods prior to April 1, 2019. ASC Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases’ guidance. We recorded an operating Right of Use (“ROU”) asset of $ 1,555,150 1,619,842 64,692 If the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate as the discount rate. We use our best judgement when determining the incremental borrowing rate, which is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term to the lease payments. Our operating lease includes the use of real property. We have not identified any material finance leases as of March 31, 2023. For the years ended March 31, 2023 and 2022, we had $ 329,255 357,644 The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of March 31, 2023: Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 386,667 2025 232,139 Total operating lease payments 618,806 Less imputed interest (25,313 ) Total operating lease liabilities $ 593,493 Weighted-average remaining lease term 1.5 Weighted-average discount rate 5.0 % On February 8, 2021, we entered into a second unsecured promissory note under the PPP for a principal amount of $ 533,118 533,118 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 March 31, 2023 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 3,091 2025 3,208 2026 3,331 2027 3,457 Thereafter 148,744 Total $ 161,831 The minimum future U.S. Bank payment, by fiscal year, as of March 31, 2023 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 18,400 2025 18,400 2026 16,867 Total $ 53,667 During September 2022, we entered into a note agreement with U.S. Bank for $ 115,004 5 6 The minimum future principal U.S. Bank payment, by fiscal year, as of December 31, 2022 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 23,000 2025 23,000 2026 23,000 Thereafter 36,090 Total $ 105,090 We are subject to regulation by the United States Food and Drug Administration (“FDA”). The FDA provides regulations governing the manufacture and sale of our products and regularly inspects us and other manufacturers to determine our and their compliance with these regulations. As of March 31, 2023, we believe we were in substantial compliance with all known regulations. FDA inspections are conducted periodically at the discretion of the FDA. We were last inspected in October 2019. Our obligation with respect to employee severance benefits is minimized by the “at will” nature of the employee relationships. Our total obligation with respect to contingent severance benefit obligations was none as of March 31, 2023 and 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes We account for income taxes under ASC 740, which requires the use of the liability method. ASC 740 provides that deferred income tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred income tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred income tax assets and liabilities are expected to be settled or realized. Income tax provision (benefit) for income taxes is summarized below: Schedule of income tax expense (benefit) Years Ended March 31, 2023 March 31, 2022 Current: Federal $ — $ — State — — Total current — — Deferred: Federal (12,000 ) (52,000 ) State (1,000 ) (10,000 ) Total deferred (13,000 ) (62,000 ) Valuation allowance 13,000 62,000 Total $ — $ — The following is a reconciliation between the effective rate and the federal statutory rate: Schedule of effective income tax rate reconciliation Years Ended March 31, 2023 March 31, 2022 Expected income tax rate $ (68,000 ) $ (14,000 ) State income taxes, net of federal tax benefit (13,000 ) (3,000 ) PPP forgiveness — (133,000 ) Other permanent differences 12,000 10,000 Research credits — (9,000 ) Change in valuation allowance 69,000 149,000 Income tax expense $ — $ — The components of the net accumulated deferred income tax asset (liability) are as follows: Schedule of deferred income tax asset liability Years Ended March 31, 2023 March 31, 2022 Other deferred assets $ 42,000 $ 58,000 Valuation allowance (42,000 ) (58,000 ) Current deferred tax assets — — Credits and net operating loss carryforwards 1,829,000 2,303,000 Valuation allowance (1,829,000 ) (2,303,000 ) Long-term deferred tax assets — — Total deferred tax assets — — Valuation allowance — — Long-term deferred tax liabilities — — Total deferred tax liabilities — — Net deferred tax assets (liabilities) $ — $ — The primary components of our deferred tax assets are described below: Years Ended March 31, 2023 March 31, 2022 Differences in reporting long-term assets $ 42,000 $ 58,000 Credits and net operating loss carryforwards 1,829,000 2,303,000 Less valuation allowance (1,871,000 ) (2,361,000 ) Total deferred tax assets $ — $ — In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which net operating losses and reversal of timing differences may offset taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to our lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. As of March 31, 2023, we had approximately $ 7.3 376,000 March 31, 2043 |
Major Customers_Suppliers
Major Customers/Suppliers | 12 Months Ended |
Mar. 31, 2023 | |
Major Customerssuppliers | |
Major Customers/Suppliers | 6. Major Customers/Suppliers We depend on sales that are generated from hospitals’ ongoing usage of AEM surgical instruments. In fiscal year 2023, we generated sales from over 300 hospitals that have changed to AEM products. Three vendors accounted for approximately 47 |
Defined Contribution Employee B
Defined Contribution Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Defined Contribution Employee Benefit Plan | 7. Defined Contribution Employee Benefit Plan We have adopted a 401(k) Profit Sharing Plan which covers all full-time employees who have completed at least three months of full-time continuous service and are age eighteen or older. Participants may defer up to 20% of their gross pay up to a maximum limit determined by law. Participants are immediately vested in their contributions. We may make discretionary contributions based on corporate financial results for the fiscal year. To date, we have not made contributions to the 401(k) Profit Sharing Plan. Vesting in a contribution account (our contribution) is based on years of service, with a participant fully vested after five years of credited service. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 8. Related Party Transaction We paid consulting fees of $ 55,715 71,908 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events Management evaluated all of our activity and concluded that, as of the date the financial statements were issued, no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Concentration of Credit Risk | Concentration of Credit Risk 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. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We charge interest on past due accounts on a case-by-case basis. The net accounts receivable balance at March 31, 2023 of $ 947,623 1,024,370 |
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 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. There was no warranty accrual at March 31, 2023. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the net realizable 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 March 31, 2023 and 2022, inventory consisted of the following: Schedule of inventory March 31, 2023 March 31, 2022 Raw materials $ 1,456,473 $ 1,083,387 Finished goods 493,729 536,934 Total gross inventories 1,950,202 1,620,321 Less reserve for obsolescence (51,000 ) (36,000 ) Total net inventories $ 1,899,202 $ 1,584,321 A summary of the activity in our inventory reserve for obsolescence is as follows: Summary of inventory reserve for obsolescence Years Ended March 31, 2023 March 31, 2022 Balance, beginning of year $ 36,000 $ 70,000 Provision for estimated obsolescence 49,917 17,578 Write-off of obsolete inventory (34,917 ) (51,578 ) Balance, end of year $ 51,000 $ 36,000 |
Property and Equipment | Property and Equipment 59,290 62,970 |
Long-Lived Assets | Long-Lived Assets |
Patents | Patents Summary of patents March 31, 2023 March 31, 2022 Patents issued $ 432,345 $ 496,901 Write off of obsolete patents (2,500 ) (86,239 ) Accumulated amortization (292,066 ) (265,762 ) Patents issued, net of accumulated amortization 137,779 144,900 Patent applications 37,733 52,138 Accumulated amortization (12,380 ) (16,319 ) Patent applications, net of accumulated amortization 25,353 35,819 Total net patents and patent applications $ 163,132 $ 180,719 The expected annual amortization expense related to patents and patent applications as of March 31, 2023, for the next five fiscal years, is as follows: Schedule of expected annual amortization expense Fiscal Year Amount 2024 $ 24,152 2025 22,293 2026 18,558 2027 20,985 Thereafter 77,144 Total $ 163,132 |
Other Accrued Liabilities | Other Accrued Liabilities Schedule of other accrued liabilities March 31, 2023 March 31, 2022 Sales commissions $ 34,668 29,157 Sales and use tax 12,769 13,967 Marketing fees 13,788 15,735 Payroll taxes, payroll 16,883 53,998 Miscellaneous 6,470 12,322 Total other accrued liabilities $ 84,578 $ 125,179 |
Income Taxes | Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The cumulative effect of adopting ASC 740 on April 1, 2007 has been recorded net in deferred tax assets, which resulted in no ASC 740 liability on the balance sheet. The total amount of unrecognized tax benefits as of the date of adoption was zero. There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit the Company’s tax returns from fiscal year ended March 31, 2003 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statements of operations. There have been no income tax related interest or penalties assessed or recorded. Because the Company has provided a full valuation allowance on all of its deferred tax assets, the adoption of ASC 740 had no impact on our effective tax rate. |
Revenue Recognition | Revenue Recognition |
Sales Taxes | Sales Taxes |
Research and Development Expenses | Research and Development Expenses |
Advertising Costs | Advertising Costs |
Stock-Based Compensation | Stock-Based Compensation ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based compensation expense recognized in our statements of operations for fiscal years 2023 and 2022 included compensation expense for share-based payment awards granted prior to, but not yet vested as of March 31, 2023, based on the grant date fair value. Compensation expense for all share-based payment is recognized using the straight-line, single-option method. As stock-based compensation expense recognized in the accompanying statements of operations for fiscal years 2023 and 2022 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We used the Black-Scholes option-pricing model (“Black-Scholes model”) to determine fair value. Our determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. Stock-based compensation expense recognized under ASC 718 for fiscal years 2023 and 2022 was $ 51,892 40,853 Stock-based compensation expense related to director and employee stock options under ASC 718 for fiscal years 2022 and 2021 was allocated as follows: Schedule of stock-based compensation expense Years Ended March 31, 2023 March 31, 2022 Cost of sales $ 631 $ 619 Sales and marketing 7,009 6,067 General and administrative 39,630 30,955 Research and development 4,622 3,212 Stock-based compensation expense $ 51,892 $ 40,853 |
Segment Reporting | Segment Reporting Schedule of operating segments Year Ended March 31, 2023 Year Ended March 31, 2022 Product Service Total Product Service Total Net revenue $ 6,885,158 $ 463,356 $ 7,348,514 $ 6,914,678 $ 753,958 $ 7,668,636 Cost of revenue 3,313,620 2,361 3,315,981 3,509,158 371,060 3,880,218 Gross profit 3,571,538 460,995 4,032,533 3,405,520 382,898 3,788,418 Operating income (loss) (763,792 ) 460,995 (302,797 ) (977,832 ) 382,898 (594,934 ) Depreciation and amortization 86,906 — 86,906 113,470 — 113,470 Capital expenditures 173,269 — 173,269 17,550 — 17,550 Equipment and patents, net $ 466,409 $ — $ 466,409 $ 370,016 $ — $ 370,016 |
Basic and Diluted Income per Common Share | Basic and Diluted Income per Common Share The following table presents the calculation of basic and diluted net income (loss) per share: Schedule of basic and diluted net income (loss) per share Years Ended March 31, 2023 March 31, 2022 Net income (loss) $ (323,945 ) $ (65,594 ) Weighted-average shares — basic 11,762,995 11,625,118 Effect of dilutive potential common shares — — Weighted-average shares — basic and diluted 11,762,995 11,625,118 Net loss per share — basic and diluted $ (0.03 ) $ (0.01 ) Antidilutive equity units 1,049,000 1,061,000 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Schedule of inventory March 31, 2023 March 31, 2022 Raw materials $ 1,456,473 $ 1,083,387 Finished goods 493,729 536,934 Total gross inventories 1,950,202 1,620,321 Less reserve for obsolescence (51,000 ) (36,000 ) Total net inventories $ 1,899,202 $ 1,584,321 |
Summary of inventory reserve for obsolescence | Summary of inventory reserve for obsolescence Years Ended March 31, 2023 March 31, 2022 Balance, beginning of year $ 36,000 $ 70,000 Provision for estimated obsolescence 49,917 17,578 Write-off of obsolete inventory (34,917 ) (51,578 ) Balance, end of year $ 51,000 $ 36,000 |
Summary of patents | Summary of patents March 31, 2023 March 31, 2022 Patents issued $ 432,345 $ 496,901 Write off of obsolete patents (2,500 ) (86,239 ) Accumulated amortization (292,066 ) (265,762 ) Patents issued, net of accumulated amortization 137,779 144,900 Patent applications 37,733 52,138 Accumulated amortization (12,380 ) (16,319 ) Patent applications, net of accumulated amortization 25,353 35,819 Total net patents and patent applications $ 163,132 $ 180,719 |
Schedule of expected annual amortization expense | Schedule of expected annual amortization expense Fiscal Year Amount 2024 $ 24,152 2025 22,293 2026 18,558 2027 20,985 Thereafter 77,144 Total $ 163,132 |
Schedule of other accrued liabilities | Schedule of other accrued liabilities March 31, 2023 March 31, 2022 Sales commissions $ 34,668 29,157 Sales and use tax 12,769 13,967 Marketing fees 13,788 15,735 Payroll taxes, payroll 16,883 53,998 Miscellaneous 6,470 12,322 Total other accrued liabilities $ 84,578 $ 125,179 |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Years Ended March 31, 2023 March 31, 2022 Cost of sales $ 631 $ 619 Sales and marketing 7,009 6,067 General and administrative 39,630 30,955 Research and development 4,622 3,212 Stock-based compensation expense $ 51,892 $ 40,853 |
Schedule of operating segments | Schedule of operating segments Year Ended March 31, 2023 Year Ended March 31, 2022 Product Service Total Product Service Total Net revenue $ 6,885,158 $ 463,356 $ 7,348,514 $ 6,914,678 $ 753,958 $ 7,668,636 Cost of revenue 3,313,620 2,361 3,315,981 3,509,158 371,060 3,880,218 Gross profit 3,571,538 460,995 4,032,533 3,405,520 382,898 3,788,418 Operating income (loss) (763,792 ) 460,995 (302,797 ) (977,832 ) 382,898 (594,934 ) Depreciation and amortization 86,906 — 86,906 113,470 — 113,470 Capital expenditures 173,269 — 173,269 17,550 — 17,550 Equipment and patents, net $ 466,409 $ — $ 466,409 $ 370,016 $ — $ 370,016 |
Schedule of basic and diluted net income (loss) per share | Schedule of basic and diluted net income (loss) per share Years Ended March 31, 2023 March 31, 2022 Net income (loss) $ (323,945 ) $ (65,594 ) Weighted-average shares — basic 11,762,995 11,625,118 Effect of dilutive potential common shares — — Weighted-average shares — basic and diluted 11,762,995 11,625,118 Net loss per share — basic and diluted $ (0.03 ) $ (0.01 ) Antidilutive equity units 1,049,000 1,061,000 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of assumptions for employee stock options | Summary of assumptions for employee stock options Years Ended March 31, 2023 March 31, 2022 Risk-free interest rate 3.05 4.29 0.8 1.05 Expected life (in years) 5.0 5.0 Expected volatility 87 95 69 76 Expected dividend 0 0 |
Summary of stock option activity | Summary of stock option activity STOCK OPTIONS OUTSTANDING Number Weighted-Average BALANCE AT MARCH 31, 2021 792,000 $ 0.40 Granted 270,000 1.36 Exercised (136,902 ) 0.32 Forfeited/expired (108,098 ) 0.27 Reclassified 244,000 0.52 BALANCE AT MARCH 31, 2022 1,061,000 $ 0.65 Granted 155,000 0.51 Exercised (50,000 ) 0.42 Forfeited/expired (117,000 ) 0.47 BALANCE AT MARCH 31, 2023 1,049,000 $ 0.66 |
Schedule of employee stock options outstanding and exercisable | Schedule of employee stock options outstanding and exercisable STOCK OPTIONS OUTSTANDING STOCK OPTIONS EXERCISABLE Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $0.32 - $0.35 320,000 0.4 $ 0.34 264,634 $ 0.34 $0.38 - $0.50 421,000 0.8 $ 0.42 225,352 $ 0.42 $0.54 - $1.40 446,000 4.3 $ 1.03 104,929 $ 1.22 1,049,000 2.0 $ 0.66 594,915 $ 0.53 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Lease Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 386,667 2025 232,139 Total operating lease payments 618,806 Less imputed interest (25,313 ) Total operating lease liabilities $ 593,493 Weighted-average remaining lease term 1.5 Weighted-average discount rate 5.0 % |
E I D L Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 3,091 2025 3,208 2026 3,331 2027 3,457 Thereafter 148,744 Total $ 161,831 |
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 2024 18,400 2025 18,400 2026 16,867 Total $ 53,667 |
U S Bank Payment 1 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of principal U.S. Bank payment Fiscal Year Amount 2024 23,000 2025 23,000 2026 23,000 Thereafter 36,090 Total $ 105,090 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Schedule of income tax expense (benefit) Years Ended March 31, 2023 March 31, 2022 Current: Federal $ — $ — State — — Total current — — Deferred: Federal (12,000 ) (52,000 ) State (1,000 ) (10,000 ) Total deferred (13,000 ) (62,000 ) Valuation allowance 13,000 62,000 Total $ — $ — |
Schedule of effective income tax rate reconciliation | Schedule of effective income tax rate reconciliation Years Ended March 31, 2023 March 31, 2022 Expected income tax rate $ (68,000 ) $ (14,000 ) State income taxes, net of federal tax benefit (13,000 ) (3,000 ) PPP forgiveness — (133,000 ) Other permanent differences 12,000 10,000 Research credits — (9,000 ) Change in valuation allowance 69,000 149,000 Income tax expense $ — $ — |
Schedule of deferred income tax asset liability | Schedule of deferred income tax asset liability Years Ended March 31, 2023 March 31, 2022 Other deferred assets $ 42,000 $ 58,000 Valuation allowance (42,000 ) (58,000 ) Current deferred tax assets — — Credits and net operating loss carryforwards 1,829,000 2,303,000 Valuation allowance (1,829,000 ) (2,303,000 ) Long-term deferred tax assets — — Total deferred tax assets — — Valuation allowance — — Long-term deferred tax liabilities — — Total deferred tax liabilities — — Net deferred tax assets (liabilities) $ — $ — The primary components of our deferred tax assets are described below: Years Ended March 31, 2023 March 31, 2022 Differences in reporting long-term assets $ 42,000 $ 58,000 Credits and net operating loss carryforwards 1,829,000 2,303,000 Less valuation allowance (1,871,000 ) (2,361,000 ) Total deferred tax assets $ — $ — |
Description of Business and B_2
Description of Business and Basis of Presentation (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Feb. 08, 2021 | |
Debt Instrument [Line Items] | ||||
Accumulated deficit | $ 21,853,264 | $ 21,529,319 | ||
Net (loss) income available to shareholders | 323,945 | $ 65,594 | ||
Cash available to fund future operations | 188,966 | |||
Borrowed | 227,300 | |||
Line of credit | $ 1,000,000 | |||
PPP Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 533,118 | $ 533,118 | ||
Interest rate | 1% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,456,473 | $ 1,083,387 |
Finished goods | 493,729 | 536,934 |
Total gross inventories | 1,950,202 | 1,620,321 |
Less reserve for obsolescence | (51,000) | (36,000) |
Total net inventories | $ 1,899,202 | $ 1,584,321 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Balance, beginning of year | $ 36,000 | $ 70,000 |
Provision for estimated obsolescence | 49,917 | 17,578 |
Write-off of obsolete inventory | (34,917) | (51,578) |
Balance, end of year | $ 51,000 | $ 36,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Accounting Policies [Abstract] | ||
Patents issued | $ 432,345 | $ 496,901 |
Write off of obsolete patents | (2,500) | (86,239) |
Accumulated amortization | (292,066) | (265,762) |
Patents issued, net of accumulated amortization | 137,779 | 144,900 |
Patent applications | 37,733 | 52,138 |
Accumulated amortization | (12,380) | (16,319) |
Patent applications, net of accumulated amortization | 25,353 | 35,819 |
Total net patents and patent applications | $ 163,132 | $ 180,719 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Accounting Policies [Abstract] | ||
2023 | $ 24,152 | |
2024 | 22,293 | |
2025 | 18,558 | |
2026 | 20,985 | |
Thereafter | 77,144 | |
Total | $ 163,132 | $ 180,719 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Accounting Policies [Abstract] | ||
Sales commissions | $ 34,668 | $ 29,157 |
Sales and use tax | 12,769 | 13,967 |
Marketing fees | 13,788 | 15,735 |
Payroll taxes, payroll | 16,883 | 53,998 |
Miscellaneous | 6,470 | 12,322 |
Total other accrued liabilities | $ 84,578 | $ 125,179 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details 5) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement [Line Items] | ||
Stock-based compensation expense | $ 51,892 | $ 40,853 |
Cost of Sales [Member] | ||
Statement [Line Items] | ||
Stock-based compensation expense | 631 | 619 |
Selling and Marketing Expense [Member] | ||
Statement [Line Items] | ||
Stock-based compensation expense | 7,009 | 6,067 |
General and Administrative Expense [Member] | ||
Statement [Line Items] | ||
Stock-based compensation expense | 39,630 | 30,955 |
Research and Development Expense [Member] | ||
Statement [Line Items] | ||
Stock-based compensation expense | $ 4,622 | $ 3,212 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details 6) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Product Information [Line Items] | ||
Net revenue | $ 7,348,514 | $ 7,668,636 |
Cost of revenue | 3,315,981 | 3,880,218 |
Gross profit | 4,032,533 | 3,788,418 |
Operating income (loss) | (302,797) | (594,934) |
Depreciation and amortization | 86,906 | 113,470 |
Capital expenditures | 173,269 | 17,550 |
Equipment and patents, net | 466,409 | 370,016 |
Product [Member] | ||
Product Information [Line Items] | ||
Net revenue | 6,885,158 | 6,914,678 |
Cost of revenue | 3,313,620 | 3,509,158 |
Gross profit | 3,571,538 | 3,405,520 |
Operating income (loss) | (763,792) | (977,832) |
Depreciation and amortization | 86,906 | 113,470 |
Capital expenditures | 173,269 | 17,550 |
Equipment and patents, net | 466,409 | 370,016 |
Service [Member] | ||
Product Information [Line Items] | ||
Net revenue | 463,356 | 753,958 |
Cost of revenue | 2,361 | 371,060 |
Gross profit | 460,995 | 382,898 |
Operating income (loss) | 460,995 | 382,898 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | 0 | 0 |
Equipment and patents, net | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Details 7) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Net income (loss) | $ (323,945) | $ (65,594) |
Weighted-average shares - basic | 11,762,995 | 11,625,118 |
Effect of dilutive potential common shares | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 11,762,995 | 11,625,118 |
Earnings Per Share, Basic | $ (0.03) | $ (0.01) |
Earnings Per Share, Diluted | $ (0.03) | $ (0.01) |
Antidilutive equity units | 1,049,000 | 1,061,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Federally insured limit | $ 250,000 | |
Cash on deposit | 250,000 | |
Accounts receivable | 947,623 | $ 1,024,370 |
Depreciation expense | 59,290 | 62,970 |
Stock based compensation | $ 51,892 | $ 40,853 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Risk-free interest rate, minimum | 3.05% | 0.80% |
Risk-free interest rate, maximum | 4.29% | 1.05% |
Expected life | 5 years | 5 years |
Expected volatility, minimum | 87% | 69% |
Expected volatility, maximum | 95% | 76% |
Expected dividend | 0% | 0% |
Shareholders' Equity (Details 1
Shareholders' Equity (Details 1) - Share-Based Payment Arrangement, Option [Member] - Equity Compensation Plans Approved [Member] - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Balance at the beginning of the period | 1,061,000 | 792,000 |
Balance at the beginning of the period | $ 0.65 | $ 0.40 |
Granted | 155,000 | 270,000 |
Granted | $ 0.51 | $ 1.36 |
Exercised | (50,000) | (136,902) |
Exercised | $ 0.42 | $ 0.32 |
Forfeited/expired | (117,000) | (108,098) |
Forfeited/expired | $ 0.47 | $ 0.27 |
Reclassified | 244,000 | |
Reclassified | $ 0.52 | |
Balance at the end of the period | 1,049,000 | 1,061,000 |
Balance at the end of the period | $ 0.66 | $ 0.65 |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - Share-Based Payment Arrangement, Option [Member] | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number Outstanding | shares | 1,049,000 |
Weighted-Average Remaining Contractual Life | 2 years |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.66 |
Number Exercisable | shares | 594,915 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.53 |
$0.32 - $0.35 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number Outstanding | shares | 320,000 |
Weighted-Average Remaining Contractual Life | 4 months 24 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.34 |
Number Exercisable | shares | 264,634 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.34 |
$0.38 - $0.50 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number Outstanding | shares | 421,000 |
Weighted-Average Remaining Contractual Life | 9 months 18 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 0.42 |
Number Exercisable | shares | 225,352 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 0.42 |
$0.54 - $1.40 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number Outstanding | shares | 446,000 |
Weighted-Average Remaining Contractual Life | 4 years 3 months 18 days |
Weighted-Average Exercise Price per Share | $ / shares | $ 1.03 |
Number Exercisable | shares | 104,929 |
Exercisable Weighted-Average Exercise Price per Share | $ / shares | $ 1.22 |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Employee stock options granted | 155,000 | 270,000 |
Unrecognized compensation costs | $ 194,000 | |
Fair value of stock options | 56,600 | $ 213,000 |
Stock-based compensation | $ 51,892 | $ 40,853 |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Nonqualified stock options outstanding | 1,049,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2023 | Apr. 01, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 386,667 | |
2025 | 232,139 | |
Total operating lease payments | 618,806 | |
Less imputed interest | (25,313) | |
Total operating lease liabilities | $ 593,493 | $ 1,619,842 |
Weighted-average remaining lease term | 1 year 6 months | |
Weighted-average discount rate | 5% |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) | Mar. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 386,667 |
2025 | 232,139 |
Total | 618,806 |
E I D L Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 3,091 |
2025 | 3,208 |
2026 | 3,331 |
2027 | 3,457 |
Thereafter | 148,744 |
Total | $ 161,831 |
Commitments and Contingencies_4
Commitments and Contingencies (Details 2) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
2024 | $ 386,667 | |
2025 | 232,139 | |
Total | 618,806 | |
U S Bank Payment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2024 | 18,400 | $ 23,000 |
2025 | 18,400 | 23,000 |
2026 | 16,867 | 23,000 |
Total | $ 53,667 | $ 105,090 |
Commitments and Contingencies_5
Commitments and Contingencies (Details 3) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
2023 | $ 386,667 | |
2023 | 232,139 | |
Total operating lease payments | 618,806 | |
U S Bank Payment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2023 | 18,400 | $ 23,000 |
2023 | 18,400 | 23,000 |
2024 | 16,867 | 23,000 |
Thereafter | 36,090 | |
Total operating lease payments | $ 53,667 | $ 105,090 |
Commitments and Contingencies_6
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 15, 2022 | Sep. 30, 2022 | Feb. 28, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Feb. 08, 2021 | Apr. 01, 2019 | |
Debt Instrument [Line Items] | ||||||||
Operating Right of Use asset | $ 496,004 | $ 786,407 | $ 1,555,150 | |||||
Operating lease liability | 593,493 | 1,619,842 | ||||||
Accrued rent | $ 64,692 | |||||||
Lease expense | $ 329,255 | $ 357,644 | ||||||
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. | |||||||
Note Agreement [Member] | U S Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 115,004 | |||||||
Debt term | 5 years | |||||||
Interest rate | 6% | |||||||
PPP Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 533,118 | $ 533,118 | ||||||
Extinguishment of debt income | $ 533,118 | |||||||
Interest rate | 1% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total current | 0 | 0 |
Deferred: | ||
Federal | (12,000) | (52,000) |
State | (1,000) | (10,000) |
Total deferred | (13,000) | (62,000) |
Valuation allowance | 13,000 | 62,000 |
Total | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Expected income tax rate | $ (68,000) | $ (14,000) |
State income taxes, net of federal tax benefit | (13,000) | (3,000) |
PPP forgiveness | 0 | (133,000) |
Other permanent differences | 12,000 | 10,000 |
Research credits | 0 | (9,000) |
Change in valuation allowance | 69,000 | 149,000 |
Total | $ 0 | $ 0 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Other deferred assets | $ 42,000 | $ 58,000 |
Valuation allowance | (42,000) | (58,000) |
Current deferred tax assets | 0 | 0 |
Credits and net operating loss carryforwards | 1,829,000 | 2,303,000 |
Valuation allowance | (1,829,000) | (2,303,000) |
Long-term deferred tax assets | 0 | 0 |
Total deferred tax assets | 0 | 0 |
Valuation allowance | 0 | 0 |
Long-term deferred tax liabilities | 0 | 0 |
Total deferred tax liabilities | 0 | 0 |
Net deferred tax assets (liabilities) | 0 | 0 |
Differences in reporting long-term assets | 42,000 | 58,000 |
Less valuation allowance | (1,871,000) | (2,361,000) |
Total deferred tax assets | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryovers | $ 7,300,000 |
Research and development tax credits | $ 376,000 |
Operating loss carryforward expiration | Mar. 31, 2043 |
Major Customers_Suppliers (Deta
Major Customers/Suppliers (Details Narrative) | 12 Months Ended |
Mar. 31, 2023 | |
Inventory Purchases [Member] | Customer Concentration Risk [Member] | Three Vendors [Member] | |
Product Information [Line Items] | |
Concentration percentage | 47% |
Related Party Transaction (Deta
Related Party Transaction (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees paid | $ 55,715 | $ 71,908 |