Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2022 | Feb. 13, 2023 | |
Document And Entity Information | ||
Entity Registrant Name | AuraSource, Inc. | |
Entity Central Index Key | 0001083922 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 68,898,151 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Shell Company | false | |
Entity Incorporation State Code | NV | |
Entity File Number | 0-28585 | |
Entity-Ex-Transition | false | |
Entity Interactive Data Current | Yes | |
Small business flag | true | |
Emerging Growth Company | true |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 21,278 | $ 3,437 |
Accounts receivable, net | 0 | 0 |
Deposits and other current assets | 0 | 0 |
Total current assets | 21,278 | 3,437 |
Deposit | 2,262 | 2,262 |
Intangible assets, net | 254 | 0 |
Operating lease right-of-use assets, net | 67,958 | 5,145 |
Total assets | 91,752 | 10,844 |
Current liabilities | ||
Accounts payable | 98,092 | 136,107 |
Accounts payable related parties | 3,107,267 | 2,787,773 |
Operating lease obligations, current | 25,639 | 4,606 |
Note payable | 120,147 | 119,594 |
Customer advances | 0 | 0 |
Note payable related party | 2,960,662 | 2,750,548 |
Total current liabilities | 6,311,807 | 5,798,628 |
Operating lease obligations, long term | 42,551 | 0 |
Total Liabilities | 6,354,358 | 5,798,628 |
Shareholders equity | ||
Preferred stock, 10,000 shares authorized, no shares issued and outstanding, no rights or privileges designated | 0 | 0 |
Common stock, $.001 par value, 150,000,000 shares authorized 68,898,151 and 68,208,151 shares issued and outstanding, respectively | 68,898 | 68,208 |
Additional paid in capital | 14,897,779 | 14,724,399 |
Subscription payable | 0 | 0 |
Accumulated other comprehensive income | 54,950 | 13,223 |
Accumulated deficit | (21,284,233) | (20,593,614) |
Total shareholders equity | (6,262,606) | (5,787,784) |
Total liabilities and shareholders equity | $ 91,752 | $ 10,844 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Dec. 31, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, Authorized | 10,000 | 10,000 |
Preferred Stock, Issued | 0 | 0 |
Common Stock, Authorized | 150,000,000 | 150,000,000 |
Common Stock, Issued | 68,898,151 | 68,208,151 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 120,500 | $ 0 | $ 120,500 | $ 0 |
Cost of revenue | 92,388 | 0 | 92,388 | 0 |
Gross profit | 28,112 | 0 | 28,112 | 0 |
Operating expenses: | ||||
General & administrative expenses | 136,912 | 212,687 | 423,588 | 624,023 |
Total operating expenses | 136,912 | 212,687 | 423,588 | 624,023 |
Loss from operations | (108,800) | (212,687) | (395,476) | (624,023) |
Interest income / (expense) and other, net | (101,627) | (91,416) | (295,143) | (264,046) |
Net loss | (210,427) | (304,103) | (690,619) | (888,069) |
Foreign currency translation gain (loss) | (13,493) | 7,273 | 41,727 | 16,869 |
Total Comprehensive Loss | $ (223,920) | $ (296,830) | $ (648,892) | $ (871,200) |
Basic & Diluted Loss per share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average shares outstanding | 68,780,759 | 68,208,151 | 68,544,005 | 68,208,151 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (690,619) | $ (888,069) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Imputed interest related parties | 78,771 | 67,431 |
Options issued for services | 60,800 | 250,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 0 | 0 |
Deposits and other current assets net | 0 | 0 |
Accounts payable | (37,245) | 16,048 |
Accounts payable related parties | 529,608 | 521,285 |
Deferred revenue | 0 | 0 |
Interest payable | 553 | 3,825 |
Customer deposits | 0 | 0 |
Net cash used in operating activities | (58,132) | (29,480) |
Cash flows from investing activities : | ||
Gain on sale of asset | 0 | 0 |
Cash paid for acquisition of intangible | (254) | 0 |
Net cash used in investing activities | (254) | 0 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net | 34,500 | 0 |
Net proceeds from issuance of note payable | 0 | 0 |
Repayment of note payable | 0 | 0 |
Proceeds from loans payable, net | 0 | 0 |
Advances from related parties, net | 0 | 0 |
Net cash provided by financing activities | 34,500 | 0 |
Effect of exchange rate fluctuation on cash and cash equivalents | 41,727 | (16,869) |
Net change in cash and equivalents | 17,841 | (46,349) |
Cash and equivalents - beginning balance | 3,437 | 65,887 |
Cash and equivalents - ending balance | 21,278 | 19,538 |
Supplemental disclosures of cash flows information: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background AuraMetal TM AuraMoto TM There can be no assurance we will be able to carry out our development plans for AuraMetals or AuraMoto. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our technology. We also need to finance the cost of effectively protecting our intellectual property rights in the United States (“US”) and abroad where we intend to market our technology and products. Going Concern Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. Revenue Recognition Identify the contract(s) with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance obligations in the contract Recognize revenue when or as you satisfy a performance obligation When we are paid in advance for products or services, we classify these amounts as deferred revenue. Upon the receipt of these products at the factory, we recognize revenue. For services, we recognize revenue when the services are complete. Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes for the year ended March 31, 2022 included in our Annual Report on Form 10-K. The results of the three and nine months ended December 31, 2022 are not necessarily indicative of the results to be expected for the full year ending March 31, 2023. Use of Estimates Cash and Equivalents Property and Equipment - Leases The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on April 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. The new standard did not have a material impact. Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- Income Taxes “Income Taxes.” Stock-Based Compensation Foreign Currency Translation. - Net Loss Per Share The table below presents the computation of basic and diluted earnings per share for the three and nine months ended December 31, 2022 and 2021: For the For the For the For the three months ended three months ended nine months ended nine months ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Numerator: Net loss $ (210,427 ) $ (304,103 ) $ (690,619 ) $ (888,069 ) Denominator: Weighted average common shares outstanding—basic 68,780,759 68,208,151 68,544,005 68,208,151 Dilutive common stock equivalents 7,480,000 6,880,000 7,480,000 6,880,000 Weighted average common shares outstanding—diluted 76,260,759 75,088,151 76,024,005 75,088,151 Net loss per share: Basic $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Concentration of Credit Risk Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The Company evaluates embedded conversion features within convertible debt under ASC Topic 815, “Derivatives and Hedging,” Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 2 - CONCENTRATION OF CREDIT RISK As of December 31, 2022 and March 31, 2022, our deposits did not exceed amounts insured by the FDIC (up to $250,000, per financial institution as of December 31, 2022). We have not experienced any losses in such accounts, and we believe we are not exposed to any credit risk on cash. Currently, we maintain a bank account in China. This account is not insured, and we believe is exposed to credit risk on cash. Currently, all of our revenue is from one customer. |
ACCOUNTS PAYABLE RELATED PARTIE
ACCOUNTS PAYABLE RELATED PARTIES | 9 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE RELATED PARTIES | NOTE 3 – ACCOUNTS PAYABLE – RELATED PARTIES As of December 31, 2022 and March 31, 2022, $3,107,267 and $2,787,773, respectively, is owed to the officers and directors. Since December 2011, the officers and directors of the Company agreed to accrue compensation for their services until such time the Company had sufficient funds to pay this liability. |
NOTE PAYABLE - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | NOTE 4 – NOTE PAYABLE – RELATED PARTY On April 26, 2016, we entered into a note payable with Philip Liu, our CEO, whereby he converted amounts owed of $1,565,169. On February 15, 2018, Mr. Liu converted $303,266 of the note into 4,332,374 shares of common stock which was considered the fair market value. $2,314,922 is owed under the note as of December 31, 2022. The note has an interest rate of 10% which is compounded quarterly is in default. On April 26, 2016, we entered into a note payable with Eric Stoppenhagen, our CFO, whereby he converted amounts owed of $411,214. On February 15, 2018, Mr. Stoppenhagen converted $91,950 of the note into 1,313,556 shares of common stock which was considered the fair market value. $645,740 is owed under the note as of December 31, 2022. The note has an interest rate of 10% which is compounded quarterly is in default. |
NOTE PAYABLE
NOTE PAYABLE | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 5 – NOTE PAYABLE In December 2014, we entered into a note payable for $63,357 which bears an interest rate of 6% per year as a settlement for previously due amounts recorded in accounts payable. The Company paid $7,500 to reduce the amount of the note. The amount of principal and interest as of December 31, 2022 is $92,123. The principal and interest are due on September 15, 2016. The note payable is currently in default. On May 3, 2020, we entered into a loan borrowed $29,332 from Bank of America (“Lender”), pursuant to a Promissory Note issued by Company to Lender (the “PPP Note”). The loan was made pursuant to the Payroll Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Note bears interest at 1.00% per annum, payable monthly beginning December 3, 2020, and is due on May 3, 2022. The PPP Note may be repaid at any time without penalty. The PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the PPP Note. We repaid $10,000 in August 2020. As of December 31, 2022, the principal and interest of the PPP Note is $13,837. The Company plans to pay off this loan balance in the next year. On June 13, 2020, we entered into a note with the US Small Business Administration for a loan amount of $12,900 and an annual interest rate of 3.75% which is due in 30 years. As of December 31, 2022, the principal and interest of the note is $14,186. |
STOCK ISSUANCE
STOCK ISSUANCE | 9 Months Ended |
Dec. 31, 2022 | |
Stock Issuance | |
STOCK ISSUANCE | NOTE 6 – STOCK ISSUANCE During the quarter ended June 30, 2022, the Company issued 190,000 shares of common stock for $9,500. During the quarter ended September 30, 2022, the Company issued 200,000 shares of common stock for $10,000. During the quarter ended December 31, 2022, the Company issued 300,000 shares of common stock for $15,000. As of December 31, 2022, there are 68,898,151 shares of common stock issued and outstanding. |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
STOCK OPTIONS | NOTE 7 - STOCK OPTIONS On April 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On July 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On October 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On January 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On April 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On July 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. All options have a term of ten years. On October 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. All options have a term of ten years. We will record stock-based compensation expense over the requisite service period, which in our case approximates the vesting period of the options. During the nine months ended December 31, 2022 and 2021, the Company recorded $60,800 and $250,000, respectively, in compensation expense arising from the vesting of options, respectively. The Company assumed all stock options issued during the quarter will vest. Though these expenses result in a deferred tax benefit, we have a full valuation allowance against the deferred tax benefit. The Company adopted the detailed method provided in FASB ASC Topic 718, “Compensation – Stock Compensation,” The fair value of each stock option granted is estimated on the grant date using the Black-Scholes option pricing model (“BSOPM”). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk-free interest rate is based upon market yields for United States Treasury debt securities at a 10-year constant maturity. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the last five years of market prices prior to the grant date. The expected life of an option grant is based on management’s estimate. The fair value of each option grant, as calculated by the BSOPM, is recognized as compensation expense on a straight-line basis over the vesting period of each stock option award. These assumptions were used to determine the FV of stock options granted: Dividend yield 0.0% Volatility 350% Average expected option life 5 years Risk-free interest rate 2.39% - 2.88% The following table summarizes activity in the Company's stock option grants for the nine months ended December 31, 2022 and year ended March 31, 2022: Number of Shares Weighted Average Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Balance at March 31, 2021 6,120,000 $ 0.25 3.50 $ - Granted 800,000 $ 0.05 3.50 $ 33,600 Expired (40,000) $ 0.75 0.00 $ Balance at March 31, 2022 6,880,000 $ 0.24 3.50 $ - Granted 600,000 $ 0.05 4.50 $ 16,800 Balance at December 31, 2022 7,480,000 $ 0.24 3.75 $ - |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 - COMMITMENTS AND CONTINGENCIES Leases December 31, 2022 Lease Cost Operating lease cost (included in general and administration in the Company’s statement of operations) $ 22,493 Other Information Cash paid for amounts included in the measurement of lease liabilities for the nine months ended December 31, 2022 $ 21,928 Remaining lease term – operating leases (in years) 4.500 Average discount rate – operating leases 10% The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Right-of-use assets $ 67,958 Total operating lease assets $ 67,958 Short-term operating lease liabilities $ 25,639 Long-term operating lease liabilities $ 42,551 Total operating lease liabilities $ 68,190 Maturities of the Company’s lease liabilities are as follows: Period ending December 31, Operating Lease 2023 79,710 Total lease payments 79,710 Less: Imputed interest/present value discount 11,520 Present value of lease liabilities $ 68,190 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Going Concern | Current Operations and Background AuraMetal TM AuraMoto TM There can be no assurance we will be able to carry out our development plans for AuraMetals or AuraMoto. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our technology. We also need to finance the cost of effectively protecting our intellectual property rights in the United States (“US”) and abroad where we intend to market our technology and products. Going Concern Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. |
Revenue Recognition | Revenue Recognition Identify the contract(s) with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance obligations in the contract Recognize revenue when or as you satisfy a performance obligation When we are paid in advance for products or services, we classify these amounts as deferred revenue. Upon the receipt of these products at the factory, we recognize revenue. For services, we recognize revenue when the services are complete. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes for the year ended March 31, 2022 included in our Annual Report on Form 10-K. The results of the three and six months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year ending March 31, 2023. |
Use of estimates | Use of Estimates |
Cash and cash equivalents | Cash and Cash Equivalents |
Property and Equipment | Property and Equipment - |
Leases | Leases The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on April 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. The new standard did not have a material impact. We entered into a new lease on July 1, 2019. The new policy impacted us July 1, 2019. |
Cost of goods sold | Cost of goods sold- Cost of goods sold includes cost of inventory sold during the period, net of discounts and allowances, freight and shipping costs, warranty and rework costs, and sales tax. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- |
Income Taxes | Income Taxes |
Stock based compensation | Stock-Based Compensation |
Comprehensive Income | Comprehensive Income - |
Foreign currency transactions | Foreign Currency Translation. - |
Net loss per share | Net Loss Per Share The table below presents the computation of basic and diluted earnings per share for the three and nine months ended December 31, 2022 and 2021: For the For the For the For the three months ended three months ended nine months ended nine months ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Numerator: Net loss $ (210,427 ) $ (304,103 ) $ (690,619 ) $ (888,069 ) Denominator: Weighted average common shares outstanding—basic 68,780,759 68,208,151 68,544,005 68,208,151 Dilutive common stock equivalents 7,480,000 6,880,000 7,480,000 6,880,000 Weighted average common shares outstanding—diluted 76,260,759 75,088,151 76,024,005 75,088,151 Net loss per share: Basic $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) |
Concentration of Credit Risk | Concentration of Credit Risk |
Financial instruments and fair value of financial instruments | Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The carrying value of cash, accounts receivable, accounts payables, and notes payable approximates their fair values due to their short-term maturities |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stock option grant | Number of Shares Weighted Average Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Balance at March 31, 2021 6,120,000 $ 0.25 3.50 $ - Granted 800,000 $ 0.05 3.50 $ 33,600 Expired (40,000) $ 0.75 0.00 $ Balance at March 31, 2022 6,880,000 $ 0.24 3.50 $ - Granted 600,000 $ 0.05 4.50 $ 16,800 Balance at December 31, 2022 7,480,000 $ 0.24 3.75 $ - |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Notes to Financial Statements | ||
Retained earnings accumulated deficit | $ (21,284,233) | $ (20,593,614) |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Notes to Financial Statements | ||
Accounts payable related parties | $ 3,107,267 | $ 2,787,773 |
STOCK OPTIONS - STOCK OPTIONS (
STOCK OPTIONS - STOCK OPTIONS (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | |
Notes to Financial Statements | ||
Number of Options | 7,480,000 | 6,880,000 |
Weighted Average Price Per Share | $ 0.24 | $ 0.24 |
Options expired | 0 | |
Options granted | $ 600,000 | |
Option exercise price | $ 0.05 |