Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Sep. 30, 2013 | |
Document And Entity Information | ' |
Entity Registrant Name | 'PROFIRE ENERGY INC |
Entity Central Index Key | '0001289636 |
Document Type | 'S-1 |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--03-31 |
Is Entity a Well-known Seasoned Issuer? | 'No |
Is Entity a Voluntary Filer? | 'No |
Is Entity's Reporting Status Current? | 'Yes |
Entity Filer Category | 'Smaller Reporting Company |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 |
ASSETS | ' | ' | ' |
Cash and cash equivalents | $602,255 | $808,772 | $1,914,877 |
Accounts receivable, net | 8,618,943 | 5,879,165 | 4,236,240 |
Marketable securities-available for sale | 0 | 0 | 840 |
Inventories | 6,169,080 | 3,463,614 | 1,968,740 |
Deferred tax asset | 0 | 0 | 12,569 |
Prepaid expenses | 62,343 | 1,967 | 10,202 |
Total Current Assets | 15,452,621 | 10,153,518 | 8,143,468 |
PROPERTY AND EQUIPMENT, net | 2,404,442 | 2,232,355 | 1,982,290 |
TOTAL ASSETS | 17,857,063 | 12,385,873 | 10,125,758 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' |
Accounts payable | 2,405,817 | 1,499,330 | 645,215 |
Accrued liabilities | 164,837 | 189,489 | 251,137 |
Deferred income tax liability | 134,107 | 72,857 | 0 |
Income taxes payable | 969,053 | 161,550 | 597,830 |
Total Current Liabilities | 3,673,814 | 1,923,226 | 1,494,182 |
TOTAL LIABILITIES | 3,673,814 | 1,923,226 | 1,494,182 |
STOCKHOLDERS' EQUITY | ' | ' | ' |
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding | 0 | 0 | 0 |
Common shares: $0.001 par value, 100,000,000 shares authorized: 45,390,000, 45,250,000 and 45,000,000 shares issued and outstanding, respectively | 45,390 | 45,250 | 45,000 |
Additional paid-in capital | 842,888 | 585,735 | 74,343 |
Accumulated other comprehensive income | 171,242 | 371,466 | 484,692 |
Retained earnings | 13,123,729 | 9,460,196 | 8,027,541 |
Total Stockholders' Equity | 14,183,249 | 10,462,647 | 8,631,576 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $17,857,063 | $12,385,873 | $10,125,758 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 |
STOCKHOLDERS' EQUITY | ' | ' | ' |
Preferred stock, par value | $0.00 | $0.00 | $0.00 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 | 0 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, authorized shares | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, issued shares | 45,390,000 | 45,250,000 | 45,000,000 |
Common stock, outstanding shares | 45,390,000 | 45,250,000 | 45,000,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Other Comprhensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
REVENUES | ' | ' | ' | ' | ' | ' |
Sales of goods, net | $8,940,062 | $4,096,452 | $15,779,023 | $7,547,959 | $15,740,546 | $14,875,652 |
Sales of services, net | 402,394 | 283,141 | 745,013 | 508,907 | 1,146,721 | 1,049,561 |
Total Revenues | 9,342,456 | 4,379,593 | 16,524,036 | 8,056,866 | 16,887,267 | 15,925,213 |
COST OF SALES | ' | ' | ' | ' | ' | ' |
Cost of goods sold-products | 3,550,640 | 1,950,355 | 6,275,120 | 3,278,071 | 7,034,703 | 6,170,073 |
Cost of goods sold - services | 232,250 | 211,312 | 500,447 | 384,032 | 1,043,294 | 717,796 |
Total Cost of Goods Sold | 3,782,890 | 2,161,667 | 6,775,567 | 3,662,103 | 8,077,997 | 6,887,869 |
GROSS PROFIT | 5,559,566 | 2,217,926 | 9,748,469 | 4,394,763 | 8,809,270 | 9,037,344 |
OPERATING EXPENSES | ' | ' | ' | ' | ' | ' |
General and administrative expenses | 1,259,192 | 863,271 | 2,098,315 | 1,857,151 | 3,798,075 | 2,752,451 |
Research and development | 155,089 | 70,454 | 251,019 | 110,234 | 0 | 0 |
Payroll expenses | 930,993 | 298,802 | 1,766,069 | 640,655 | 2,656,762 | 1,757,855 |
Loss on sale of fixed assets | 0 | 0 | 0 | 0 | 13,936 | 0 |
Depreciation expense | 65,597 | 64,468 | 126,925 | 110,926 | 195,070 | 159,421 |
Total Operating Expenses | 2,410,871 | 1,296,995 | 4,242,328 | 2,718,966 | 6,663,843 | 4,669,727 |
INCOME FROM OPERATIONS | 3,148,695 | 920,931 | 5,506,141 | 1,675,797 | 2,145,427 | 4,367,617 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ' | ' |
Interest expense | -100 | -7,426 | -10,567 | -8,678 | 0 | -20,370 |
Gain on disposal of fixed assets | 1,617 | 0 | 1,617 | 0 | 0 | 0 |
Permanent impairment of available for sale securities | 0 | 0 | 0 | 0 | -8,438 | 0 |
Rental income | 1,575 | 0 | 2,190 | 0 | 629 | 3,600 |
Interest income | 7,565 | 8,246 | 8,366 | 8,315 | 25,942 | 375 |
Total Other Income (Expense) | 10,657 | 820 | 1,606 | -363 | 18,133 | -16,395 |
NET INCOME BEFORE INCOME TAXES | 3,159,352 | 921,751 | 5,507,747 | 1,675,434 | 2,163,560 | 4,351,222 |
INCOME TAX EXPENSE | 1,109,803 | 276,621 | 1,844,214 | 464,569 | 730,905 | 1,163,451 |
NET INCOME | 2,049,549 | 645,130 | 3,663,533 | 1,210,865 | 1,432,655 | 3,187,771 |
OTHER COMPREHENSIVE INCOME UNREALIZED HOLDING LOSS ON AVAILABLE FOR SALE SECURITIES LESS: RECLASSIFICATION ADJUSTMENT FOR NET LOSS INCLUDED IN NET INCOME | 0 | 0 | 0 | 0 | 0 | -2,445 |
NET LOSS INCLUDED IN NET INCOME | 0 | 0 | 0 | 0 | 8,438 | 0 |
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) | -90,191 | 382,438 | -200,224 | 219,618 | -121,664 | -147,061 |
TOTAL COMPREHENSIVE INCOME | $1,959,358 | $1,027,568 | $3,463,309 | $1,430,483 | $1,319,429 | $3,038,265 |
BASIC EARNINGS PER SHARE | $0.05 | $0.01 | $0.08 | $0.03 | $0.03 | $0.07 |
FULLY DILUTED EARNINGS PER SHARE | $0.04 | $0.01 | $0.08 | $0.03 | $0.03 | $0.07 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 45,289,301 | 45,078,587 | 45,274,863 | 45,054,918 | 45,109,767 | 45,000,000 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 45,905,364 | 45,460,439 | 45,905,364 | 45,436,770 | 45,371,965 | 45,218,238 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Other Comprehensive Income | Retained Earnings | Total |
Beginning Balance - Amount at Mar. 31, 2011 | $45,000 | ($6,187) | $634,198 | $4,839,770 | $5,512,781 |
Beginning Balance - Shares at Mar. 31, 2011 | 45,000,000 | 0 | 0 | 0 | 0 |
Fair value of options vested | 0 | 80,530 | 0 | 0 | 80,530 |
Stock issued for services - Amount | ' | ' | ' | ' | 0 |
Unrealized holding gains on available for sale securities | ' | ' | -2,445 | 0 | -2,445 |
Foreign currency translation adjustment | ' | ' | -147,061 | 0 | -147,061 |
Net income | ' | ' | ' | 3,187,771 | 3,187,771 |
Ending Balance, Amount at Mar. 31, 2012 | 45,000 | 74,343 | 484,692 | 8,027,541 | 8,631,576 |
Ending Balance, Shares at Mar. 31, 2012 | 45,000,000 | ' | ' | ' | ' |
Fair value of options vested | ' | 166,187 | ' | ' | 166,187 |
Stock issued for services - Shares | 250,000 | ' | ' | ' | ' |
Stock issued for services - Amount | 250 | 345,205 | ' | ' | 345,455 |
Reclassification for net loss included in net income | ' | ' | 8,438 | ' | 8,438 |
Foreign currency translation adjustment | ' | ' | -121,664 | ' | -121,664 |
Net income | ' | ' | ' | 1,432,655 | 1,432,655 |
Ending Balance, Amount at Mar. 31, 2013 | $45,250 | $585,735 | $371,466 | $9,460,196 | $10,462,647 |
Ending Balance, Shares at Mar. 31, 2013 | 45,250,000 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
OPERATING ACTIVITIES | ' | ' | ' | ' |
Net Income | $3,663,533 | $1,210,865 | $1,432,655 | $3,187,771 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Depreciation expense | 168,020 | 110,245 | 243,838 | 198,707 |
Gain on the disposal of fixed assets | -1,617 | 0 | 13,936 | 0 |
Common stock issued for services | 28,350 | 208,750 | 345,455 | 0 |
Bad debt expense | 0 | 9,958 | 69,975 | 46,203 |
Stock options issued for services | 180,944 | 86,904 | 166,187 | 80,530 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Changes in accounts receivable | -2,776,585 | 449,996 | -1,494,660 | -2,049,959 |
Changes in deferred tax asset | 0 | 0 | 12,569 | 0 |
Changes in inventories | -2,723,568 | -1,451,619 | -1,528,107 | -703,223 |
Changes in prepaid expenses | -60,376 | -13,143 | 8,218 | -9,341 |
Changes in accounts payable and accrued liabilities | 897,043 | -204,025 | 736,341 | 498,981 |
Changes in income taxes payable | 870,119 | -179,045 | -376,999 | 354,466 |
Net Cash Provided by (Used in) Operating Activities | 245,863 | 228,886 | -370,592 | 1,604,135 |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Proceeds from disposal of equipment | 33,910 | 0 | 13,770 | 0 |
Purchase of fixed assets | -389,365 | -258,233 | -550,622 | -1,487,628 |
Net Cash Used in Investing Activities | -355,455 | -258,233 | -536,852 | -1,487,628 |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Stock issued in exercise of stock options | 48,000 | 0 | 0 | 0 |
Net Cash Used in Financing Activities | 48,000 | 0 | 0 | 0 |
Effect of exchange rate changes on cash | -144,925 | 762,078 | -198,661 | 108,984 |
NET INCREASE (DECREASE) IN CASH | -206,517 | 732,731 | -1,106,105 | 225,491 |
CASH AT BEGINNING OF PERIOD | 808,772 | 1,914,877 | 1,914,877 | 1,689,386 |
CASH AT END OF PERIOD | 602,255 | 2,647,608 | 808,772 | 1,914,877 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' | ' | ' |
Interest | 100 | 8,678 | 0 | 20,370 |
Income taxes | $302,300 | $685,915 | $294,625 | $703,622 |
1_CONDENSED_FINANCIAL_STATEMEN
1. CONDENSED FINANCIAL STATEMENTS | 6 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
CONDENSED FINANCIAL STATEMENTS | ' |
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2013 and for all periods presented have been made. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's March 31, 2013 audited financial statements. The results of operations for the periods ended September 30, 2013 and 2012 are not necessarily indicative of the operating results for the full years. |
2_SIGNIFICANT_ACCOUNTING_POLIC
2. SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ||||||||||
Reclassification | This summary of significant accounting policies of Profire Energy, Inc. and Subsidiary (“the Company”) is presented to assist in understanding the Company’s financial statements. The Company’s accounting policies conform to accounting principles generally accepted in the United States of America (US GAAP). On September 30, 2008, The Flooring Zone, Inc. (“the Parent”) entered into an Acquisition Agreement with Profire Combustion, Inc. and the Shareholders of Profire Combustion, Inc. (“the Subsidiary”), subject to customary closing conditions. All conditions for closing were satisfied or waived and the transaction closed on October 9, 2008. | |||||||||||
Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. | ||||||||||||
Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Company were issued to the three shareholders of Profire Combustion, Inc., in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, Profire Combustion, Inc. became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Company. For accounting purposes, the Subsidiary is considered the accounting acquirer, and the historical Balance Sheets, Statements of Operations and Other Comprehensive Income, and Statement of Cash Flow of the Subsidiary are presented as those of the Company. The historical equity information is that of Profire Combustion, Inc., the accounting acquiree. The recapitalization required pursuant to this merger resulted in a negative additional paid-in capital balance. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | Organization and Line of Business | |||||||||||
Cash and Cash Equivalents | The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. | |||||||||||
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of September 30, 2013 and March 31, 2013, bank balances included $602,255 and $808,772, respectively, held by the Company’s banks guaranteed by the Province of Alberta, Canada and the FDIC. | ||||||||||||
The Company provides products and services for burners and heaters for the oil and gas extraction industry in the Canadian and US markets. | ||||||||||||
Accounts Receivable | ||||||||||||
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $126,554 and $133,974 as of September 30, 2013 and March 31, 2013, respectively. | Use of Estimates | |||||||||||
Inventory | The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
In accordance with ASC 330, the Company’s inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. As of September 30, 2013 and March 31, 2013 inventory consisted of the following: | ||||||||||||
Principles of Consolidation | ||||||||||||
September 30, | March 31, | |||||||||||
2013 | 2013 | The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. | ||||||||||
Raw materials | $ | - | $ | - | ||||||||
Finished goods | 6,256,988 | 3,553,140 | Basic and Diluted Earnings Per Share | |||||||||
Work in process | - | - | ||||||||||
Subtotal | 6,256,988 | 3,553,140 | The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 267,135 and 218,238 stock options included in the fully diluted earnings per share as of March 31, 2013 and 2012 respectively. Basic earnings per share for the years ended March 31, 2013 and 2012 are as follows: | |||||||||
Reserve for obsolescence | (87,908) | (89,526) | ||||||||||
Total | $ | 6,169,080 | 3,463,614 | For the Years Ended | ||||||||
March 31, | ||||||||||||
Revenue Recognition | 2013 | 2012 | ||||||||||
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. | Net income applicable to common shareholders | $ | 1,432,655 | $ | 3,187,771 | |||||||
Weighted average shares outstanding | 45,109,767 | 45,000,000 | ||||||||||
Income Taxes | Weighted average fully diluted shares | 45,371,965 | 45,218,238 | |||||||||
The Company is subject to US and Canadian income taxes, respectively, on its US and Canadian income with a credit provided for foreign taxes paid. The combined effective rates of income tax expense (benefit) in the US and Canada are, respectively, 35% and 28% for the six months ended September 30, 2013 and 2012, respectively. | Basic earnings per share | $ | 0.03 | $ | 0.07 | |||||||
Fully diluted earnings per share | $ | 0.03 | $ | 0.07 | ||||||||
Basic and Diluted Earnings Per Share | ||||||||||||
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 630,500 and 530,000 stock options included in the fully diluted earnings per share as of September 30, 2013 and 2012, respectively. The Company uses the treasury stock method to calculate the dilutive effects of stock options and warrants. | ||||||||||||
Foreign Currency and Comprehensive Income | ||||||||||||
For the Six Months Ended | ||||||||||||
September 30, | The Company’s functional currency is the Canadian Dollar (CAD). The financial statements of the Company were translated to U.S. Dollars (USD) using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.982898 and 1.00274 were used to convert the Company’s March 31, 2013 and 2012 balance sheets, respectively, and the statements of operations used weighted average rates of 0.982898 and 1.0075 for the years ended March 31, 2013 and 2012, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Statement of Operations and Comprehensive Income. | |||||||||||
2013 | 2012 | |||||||||||
Net income applicable to common shareholders | S | 3,663,533 | S | 1,210,865 | Accounting Method and Fiscal Year | |||||||
Weighted average shares outstanding | 45,289,301 | 45,054,918 | ||||||||||
Weighted average fully diluted shares outstanding | 45,905,364 | 45,436,770 | The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on March 31. | |||||||||
Basic earnings per share | S | 0.08 | S | 0.03 | ||||||||
Fully diluted earnings per share | S | 0.08 | S | 0.03 | Fair Value of Financial Instruments | |||||||
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: | ||||||||||||
Foreign Currency and Comprehensive Income | ||||||||||||
The Company’s functional currencies are the United States dollar (USD) and the Canadian dollar (CAD), the reporting currency is USD. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC830-20, “Foreign Currency Matters – Foreign Currency Transactions”. The period-end exchange rates of 0.97232 and 0.982898 were used to convert the Company’s September 30, 2013 and March 31, 2012 balance sheets, respectively, and the statements of operations used weighted average rates of 0.970557 and 1.02760 for the six months ended September 30, 2013 and 2012, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Statement of Operations and Other Comprehensive Income. | Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||
Level 2: Observable market-based inputs or inputs that are corroborated by market data. | ||||||||||||
Recent Accounting Pronouncements | Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. | ||||||||||||
Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. | ||||||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of March 31, 2013 and 2012, cash and cash equivalents totaled $808,772 and $1,914,877, respectively. These deposits were insured by insurance accounts held by the Company’s banks guaranteed by the Province of Alberta, Canada and the FDIC. | ||||||||||||
Accounts Receivable | ||||||||||||
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $133,974 and $65,110 as of March 31, 2013 and 2012, respectively. | ||||||||||||
Inventories | ||||||||||||
In accordance with ARB No. 43 “Inventory Pricing,” the Company’s inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. Inventory consists of finished goods held for sale. As of March 31 inventory consisted of the following: | ||||||||||||
March 31, | March 31, | |||||||||||
2013 | 2012 | |||||||||||
Raw materials | $ | - | $ | - | ||||||||
Finished goods | 3,553,140 | 2,026,108 | ||||||||||
Work in process | - | - | ||||||||||
Subtotal | 3,553,140 | 2,026,108 | ||||||||||
Reserve for obsolescence | -89,526 | -57,368 | ||||||||||
Total | $ | 3,463,614 | $ | 1,968,740 | ||||||||
Marketable Securities | ||||||||||||
The Company reports its investments in marketable securities under the provisions of ASC 320, Investments in Debt and Equity Securities. All the Company’s marketable securities are classified as “available for sale” securities, as the market value of the securities are readily determinable and the Company’s intention upon obtaining the securities was neither to sell them in the short term nor to hold them to maturity. Pursuant to ASC 320, securities which are classified as “available for sale” are recorded on the Company’s balance sheet at fair market value, with the resulting unrealized holding gains and losses excluded from earnings and reported as other comprehensive income until realized. | ||||||||||||
The Company evaluates securities for other-than-temporary impairment at least on a yearly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to the length of time and amount of the loss relative to cost, the nature and financial condition of the issuer and the ability and intent of the Company to hold the investment for a time sufficient to allow any anticipated recovery in fair value. Pursuant to ASC 320-5, other than temporary impairment losses are recorded as impairment expense in the statement of operations during the period in which the impairment is determined. The Company recognized other-than-temporary impairment to marketable securities in the amount of $8,438 and $-0- during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Long-Lived Assets | ||||||||||||
We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. There were no impairments of long-lived assets during the years ended March 31, 2013 and 2012. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. | ||||||||||||
Cost of Sales | ||||||||||||
The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. | ||||||||||||
Advertising Costs | ||||||||||||
The Company classifies expenses for advertising as general and administrative expenses. The Company incurred advertising costs of $98,222 and $29,210 during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. | ||||||||||||
Concentration of Credit Risk | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s four largest customers approximated 37% and 52% of total sales for the years ended March 31, 2013, and 2012, respectively. | ||||||||||||
Income Taxes | ||||||||||||
The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax are 35.7% and 27.6% for the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. | ||||||||||||
Research and Development | ||||||||||||
All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $315,045 and $164,400 for the years ended March 31, 2013 and 2012 respectively. | ||||||||||||
Shipping and Handling Fees and Costs | ||||||||||||
The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $299,864 and $189,611 during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Comprehensive Income | ||||||||||||
Comprehensive income includes net income as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses and unrealized holding gains and losses on available for sale securities. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | ||||||||||||
Research and Development | ||||||||||||
All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $315,045 and $164,400 for the years ended March 31, 2013 and 2012 respectively. | ||||||||||||
Shipping and Handling Fees and Costs | ||||||||||||
The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $299,864 and $189,611 during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Comprehensive Income | ||||||||||||
Comprehensive income includes net income as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses and unrealized holding gains and losses on available for sale securities. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | ||||||||||||
3_PROPERTY_AND_EQUIPMENT
3. PROPERTY AND EQUIPMENT | 12 Months Ended | |||||
Mar. 31, 2013 | ||||||
Notes to Financial Statements | ' | |||||
PROPERTY AND EQUIPMENT | ' | |||||
Property and equipment is stated at cost. Depreciation on property and equipment is computed using the diminishing balance method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows: | ||||||
Assets | Estimated useful life | |||||
Furniture and fixtures | 5 Years | |||||
Machinery and equipment | 5 Years | |||||
Buildings | 25 Years | |||||
Vehicles | 3 Years | |||||
Computers | 3 Years | |||||
Property and equipment consisted of the following as of March 31, 2013 and 2012: | ||||||
2013 | 2012 | |||||
Office Furniture and Equipment | $ | 360,008 | $ | 258,127 | ||
Service and Shop Equipment | 391,780 | 314,875 | ||||
Vehicles | 431,255 | 251,107 | ||||
Land and Buildings | 1,760,247 | 1,721,564 | ||||
Total Property and Equipment | 2,943,290 | 2,545,673 | ||||
Accumulated Depreciation | -710,935 | -563,383 | ||||
Net Property and Equipment | $ | 2,232,355 | $ | 1,982,290 | ||
Depreciation expense for the years ended March 31, 2013 and 2012 are as follows: | ||||||
Years Ended March 31, | ||||||
2013 | 2012 | |||||
Cost of goods sold | $ | 48,768 | $ | 39,286 | ||
General and administrative | 195,070 | 159,421 | ||||
Total | $ | 243,838 | $ | 198,707 | ||
4_STOCKHOLDERS_EQUITY
4. STOCKHOLDERSb EQUITY | 12 Months Ended |
Mar. 31, 2013 | |
Notes to Financial Statements | ' |
STOCKHOLDERSb EQUITY | ' |
During the year ended March 31, 2013, the Company issued 250,000 shares of its common stock for services valued at $345,455, the share were valued at the trading price on the date of issuance. As of March 31, 2013 and 2012, the Company had issued 45,250,000 and 45,000,000 shares of common stock, respectively. |
5_PROVISION_FOR_INCOME_TAXES
5. PROVISION FOR INCOME TAXES | 12 Months Ended | |||||
Mar. 31, 2013 | ||||||
Notes to Financial Statements | ' | |||||
PROVISION FOR INCOME TAXES | ' | |||||
Reconciliation of US Federal/Canadian Statutory Income Tax Rate to Effective Income Tax Rate: | ||||||
31-Mar-13 | March 31, 2012 | |||||
United States statutory income tax rate | 35.00% | 35.00% | ||||
Increase (decrease) in valuation allowance | 0.6 | -7.5 | ||||
Decrease in rate on income subject to Canadian income tax rates | - | - | ||||
Increase (decrease) in rate resulting from non-deductible expenses and deductible adjustments | 0.1 | 0.1 | ||||
0.7 | -7.4 | |||||
Effective income tax rate | 35.70% | 27.60% | ||||
Components of Income Tax Expense | 31-Mar-13 | 31-Mar-12 | ||||
Federal U.S. Income Taxes | ||||||
-Current | $ | 30,874 | $ | - | ||
-Deferred | 72,857 | 17,791 | ||||
Foreign (Canadian and Provincial) Income Taxes | 623,438 | 1,176,020 | ||||
State Income Taxes | ||||||
-Current | 3,736 | - | ||||
-Deferred | - | -30,360 | ||||
Total Income Tax Expense | $ | 730,905 | $ | 1,163,451 | ||
The following are temporary items: non-deductible write-down of marketable securities, increase or decrease in rate resulting from depreciation and loss on equipment for book purposes in excess of depreciation for income tax purposes. These temporary differences are insignificant, for 2013 and 2012. | ||||||
The Company adopted the provisions of ASC 740, Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the implementation of ASC 740, the Company recognized approximately no increase in the liability for unrecognized tax benefits. | ||||||
The Company has no tax positions at March 31, 2013 and 2012 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. | ||||||
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended March 31, 2013 and 2012, the Company recognized no interest and penalties. The Company had no accruals for interest and penalties at March 31, 2013 and 2012. | ||||||
Net deferred tax liability arising from the accelerated depreciation claimed by the Parent on its stand-alone tax return is $72,857, as of March 31, 2013. Net deferred tax assets arising from the warrant expense accrual as offset by the accelerated depreciation claimed by the Parent on its stand-alone tax returns is $12,569 as of March 31, 2012. |
6_AVAILABLE_FOR_SALE_SECURITIE
6. AVAILABLE FOR SALE SECURITIES | 12 Months Ended | ||||
Mar. 31, 2013 | |||||
Notes to Financial Statements | ' | ||||
AVAILABLE FOR SALE SECURITIES | ' | ||||
The following table sets forth the available for sale securities held by the Company as of March 31, 2013: | |||||
Company name | Symbol | Shares | Market value (USD) | Fair market value | |
Copper King Mining Corporation | CPRK | 5,000 | $ 0.000 | $ - | |
Deep Blue Marine Inc. | DPBE | 120,000 | 0.000 | - | |
Total value of trading securities | $ - | ||||
The following table sets forth the available for sale securities held by the Company as of March 31, 2012: | |||||
Company name | Symbol | Shares | Market value (USD) | Fair market value | |
Copper King Mining Corporation | CPRK | 5,000 | $ 0.000 | $ - | |
Deep Blue Marine Inc. | DPBE | 120,000 | 0.001 | 835 | |
Total value of trading securities | $ 835 | ||||
During the year ended March 31, 2013 the Company recognized a permanent impairment of the cost of its available for sale securities in the amount of $8,438. | |||||
7_FAIR_VALUE_MEASUREMENT
7. FAIR VALUE MEASUREMENT | 6 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||
The Company measures its cash equivalents and marketable securities at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: | |||||||||||||
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||
Level 2 - Include inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. | |||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activities. | |||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||
The Company classifies its cash equivalents and marketable securities within Level 1. This is because it values its cash equivalents and marketable securities using quoted market prices. | |||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||
Description | As of September 30, 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other | Significant | |||||||||
(Level 1) | Observable Inputs | Unobservable Inputs | |||||||||||
(Level 2) | (Level 3) | ||||||||||||
Assets | |||||||||||||
Cash Equivalents | $ | 602,255 | $ | 602,255 | $ | - | $ | - | |||||
8_SEGMENT_INFORMATION
8. SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ' | ||||||||||
SEGMENT INFORMATION | ' | ' | ||||||||||
The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: | The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: | |||||||||||
For the Six Months Ended | Sales | 2013 | 2012 | |||||||||
September 30, | Canada | $ | 10,977,476 | $ | 15,055,543 | |||||||
Sales | 2013 | 2012 | United States | 5,909,791 | 869,670 | |||||||
Canada | $ | 7,204,313 | $ | 6,140,601 | ||||||||
United States | 9,319,723 | 1,916,265 | Total | $ | 16,887,267 | $ | 15,925,213 | |||||
Total | $ | 16,524,036 | $ | 8,056,866 | ||||||||
Long – Lived Assets | 2013 | 2012 | ||||||||||
Long-lived assets | September 30, | March 31, | Canada | $ | 1,560,869 | $ | 1,596,209 | |||||
2013 | 2012 | United States | 671,486 | 386,081 | ||||||||
Canada | $ | 1,490,389 | $ | 1,583,613 | ||||||||
United States | 914,053 | 648,742 | Total | $ | 2,232,355 | $ | 1,982,290 | |||||
Total | $ | 2,404,442 | $ | 2,232,355 | ||||||||
9_COMMON_STOCK_PURCHASE_OPTION
9. COMMON STOCK PURCHASE OPTIONS | 12 Months Ended | ||||||||
Mar. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
COMMON STOCK PURCHASE OPTIONS | ' | ||||||||
On October 28, 2009, the Company issued a total of 410,000 stock purchase options exercisable for the purchase of its common stock at $0.40 per share. The options were issued to key employees. The options vest 1/3 each year for 3 years. The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model. The following weighted average assumptions used for grants as of October 28, 2009: dividend yield of zero percent; expected volatility of 127%; risk-free interest rates of 1.35% and expected life of 3.0 years. The Company recognized $18,436 and $40,224 in expense for the fair value of the options vesting during 2013 and 2012, respectively. | |||||||||
On February 15, 2011, the Company issued a total of 600,000 stock purchase options exercisable for the purchase of its common stock at $0.30 per share. The options were issued to key employees. The options vest over 1/5 each year for 5 years. The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model. The following weighted average assumptions used for grants as of February 15, 2011: dividend yield of zero percent; expected volatility of 254%; risk-free interest rates of 2.02% and expected life of 2.5 years. The Company recognized $40,702 and $40,306 in expense for the fair value of the options vesting during 2013 and 2012, respectively. | |||||||||
On September 27, 2012, the Company issued a total of 820,000 stock purchase options exercisable for the purchase of its common stock at $1.25 per share. The options were issued to key employees. The options vest over 1/5 each year for 5 years. The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model. The following weighted average assumptions used for grants as of September 27, 2012: dividend yield of zero percent; expected volatility of 191%; risk-free interest rates of 2.37% and expected life of 2.5 years. The Company recognized $106,501 and $-0- in expense for the fair value of the options vesting during 2013 and 2012, respectively. | |||||||||
A summary of the status of the Company’s stock option plans as of March 31, 2013 and 2012 and the changes during the period are presented below: | |||||||||
2013 | 2012 | ||||||||
Unexercised options, beginning of year | 1,010,000 | 1,010,000 | |||||||
Stock options issued during the year | 820,000 | - | |||||||
Stock options canceled | -25,000 | - | |||||||
Stock options expired | - | - | |||||||
Stock options exercised | - | - | |||||||
Unexercised options, end of year | 1,805,000 | 1,010,000 | |||||||
Exercisable options, end of year | 650,000 | 393,334 | |||||||
The following table summarizes information about the stock options as of March 31, 2013: | |||||||||
Outstanding Options | |||||||||
Wtd. Avg. | |||||||||
Range of | Remaining | Wtd. Avg. | Aggregate | ||||||
Exercise | Contractual | Exercise | Intrinsic | ||||||
Prices | Shares | Life (years) | Price | Value | |||||
$0.40 | 410,000 | 1.46 | $ 0.40 | $ 164,000 | |||||
$0.30 | 600,000 | 3.88 | 0.3 | 180,000 | |||||
$1.25 | 795,000 | 5.49 | 1.25 | 993,750 | |||||
1,805,000 | 4.04 | $ 0.74 | $ 1,337,750 | ||||||
The following table summarizes information about the exercisable stock options as of March 31, 2013: | |||||||||
Exercisable Options | |||||||||
Wtd. Avg. | |||||||||
Range of | Remaining | Wtd. Avg. | Aggregate | ||||||
Exercise | Contractual | Exercise | Intrinsic | ||||||
Prices | Shares | Life (years) | Price | Value | |||||
$ 0.40 | 410,000 | 1.46 | $ 0.40 | $ 164,000 | |||||
$ 0.30 | 240,000 | 3.88 | 0.30 | 72,000 | |||||
$ 1.25 | - | 5.49 | 1.25 | - | |||||
650,000 | 2.35 | $ 0.36 | $ 236,000 | ||||||
The following table summarizes information about non-vested options as of the year ended March 31, 2013: | |||||||||
Wtd. Avg. | |||||||||
Grant Date | |||||||||
Options | Fair Value | ||||||||
Non-vested at March 31, 2012 | 616,666 | $ 0.34 | |||||||
Stock options issued during the year | 795,000 | 1.25 | |||||||
Vested during the year ended March 31, 2012 | -256,666 | 0.74 | |||||||
Non-vested at March 31, 2013 | 1,155,000 | $ 0.34 |
10_COMMITMENTS_AND_CONTINGENCI
10. COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||
Mar. 31, 2013 | |||
Notes to Financial Statements | ' | ||
COMMITMENTS AND CONTINGENCIES | ' | ||
Line of Credit | |||
The Company had a $400,000 revolving credit line with a local banking institution that it uses from time to time to satisfy short-term fluctuations in cash flows. At March 31, 2013 and 2012 the Company had $-0- outstanding on the line of credit. Subsequent to year end, the line of credit was closed. | |||
Operating Lease | |||
On February 12, 2012 the Company entered into a lease for office space in Houston, Texas. The lease term extends through January 31, 2014 at $1,463 per month. Future lease obligations are as follows: | |||
2014 | $ | 14,625 | |
Total | $ | 14,625 | |
Royalties | |||
The Company paid royalties of $736,414 and $768,647 for the years ended March 31, 2013 and 2012, respectively. Future royalties are estimated to be $400,000 per year with negotiations in process. Royalties are paid on certain company products, to which an outside contractor was used during development. The royalties are paid on a quarterly basis. |
11_SUBSEQUENT_EVENTS
11. SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Mar. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
SUBSEQUENT EVENTS | ' | ' |
On November 12, 2013, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors. Pursuant to the terms of the Purchase Agreement, the Company sold to the purchasers an aggregate of approximately $4,700,000 worth of common stock of the Company at a price per share of $2.18. The closing of the purchase is expected to occur on or before November 15, 2013, and is subject to customary closing conditions. | In accordance with ASC 855, management evaluated the subsequent events through the date the financial statements were issued and has no material events to report. | |
Pursuant to the Purchase Agreement, the Company agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares. The proceeds are expected to be used for general working capital purposes and to otherwise finance the growth of the Company. | ||
Subsequent to quarter-end, an employee exercised previously issued options for 100,000 shares. |
2_SIGNIFICANT_ACCOUNTING_POLIC1
2. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||
Reclassification | ' | ' | ||||||||||
Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. | ||||||||||||
Use of Estimates | ' | ' | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | Use of Estimates | |||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Principles of Consolidation | ' | ' | ||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. | ||||||||||||
Accounting Method and Fiscal Year | ' | ' | ||||||||||
Accounting Method and Fiscal Year | ||||||||||||
The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on March 31. | ||||||||||||
Fair Value of Financial Instruments | ' | ' | ||||||||||
Fair Value of Financial Instruments | ||||||||||||
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: | ||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2: Observable market-based inputs or inputs that are corroborated by market data. | ||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | ||||||||||||
Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. | ||||||||||||
The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. | ||||||||||||
Cash and Cash Equivalents | ' | ' | ||||||||||
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of September 30, 2013 and March 31, 2013, bank balances included $602,255 and $808,772, respectively, held by the Company’s banks guaranteed by the Province of Alberta, Canada and the FDIC. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of March 31, 2013 and 2012, cash and cash equivalents totaled $808,772 and $1,914,877, respectively. These deposits were insured by insurance accounts held by the Company’s banks guaranteed by the Province of Alberta, Canada and the FDIC. | ||||||||||||
Accounts Receivable | ' | ' | ||||||||||
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $126,554 and $133,974 as of September 30, 2013 and March 31, 2013, respectively. | Accounts Receivable | |||||||||||
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $133,974 and $65,110 as of March 31, 2013 and 2012, respectively. | ||||||||||||
Inventory | ' | ' | ||||||||||
In accordance with ASC 330, the Company’s inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. As of September 30, 2013 and March 31, 2013 inventory consisted of the following: | Inventories | |||||||||||
September 30, | March 31, | In accordance with ARB No. 43 “Inventory Pricing,” the Company’s inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost basis. Inventory consists of finished goods held for sale. As of March 31 inventory consisted of the following: | ||||||||||
2013 | 2013 | |||||||||||
Raw materials | $ | - | $ | - | ||||||||
Finished goods | 6,256,988 | 3,553,140 | March 31, | March 31, | ||||||||
Work in process | - | - | 2013 | 2012 | ||||||||
Subtotal | 6,256,988 | 3,553,140 | Raw materials | $ | - | $ | - | |||||
Reserve for obsolescence | (87,908) | (89,526) | Finished goods | 3,553,140 | 2,026,108 | |||||||
Total | $ | 6,169,080 | 3,463,614 | Work in process | - | - | ||||||
Subtotal | 3,553,140 | 2,026,108 | ||||||||||
Reserve for obsolescence | -89,526 | -57,368 | ||||||||||
Total | $ | 3,463,614 | $ | 1,968,740 | ||||||||
Marketable Securities | ' | ' | ||||||||||
Marketable Securities | ||||||||||||
The Company reports its investments in marketable securities under the provisions of ASC 320, Investments in Debt and Equity Securities. All the Company’s marketable securities are classified as “available for sale” securities, as the market value of the securities are readily determinable and the Company’s intention upon obtaining the securities was neither to sell them in the short term nor to hold them to maturity. Pursuant to ASC 320, securities which are classified as “available for sale” are recorded on the Company’s balance sheet at fair market value, with the resulting unrealized holding gains and losses excluded from earnings and reported as other comprehensive income until realized. | ||||||||||||
The Company evaluates securities for other-than-temporary impairment at least on a yearly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to the length of time and amount of the loss relative to cost, the nature and financial condition of the issuer and the ability and intent of the Company to hold the investment for a time sufficient to allow any anticipated recovery in fair value. Pursuant to ASC 320-5, other than temporary impairment losses are recorded as impairment expense in the statement of operations during the period in which the impairment is determined. The Company recognized other-than-temporary impairment to marketable securities in the amount of $8,438 and $-0- during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Long-Lived Assets | ' | ' | ||||||||||
Long-Lived Assets | ||||||||||||
We periodically review the carrying amount of our long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. There were no impairments of long-lived assets during the years ended March 31, 2013 and 2012. | ||||||||||||
Revenue Recognition | ' | ' | ||||||||||
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. | Revenue Recognition | |||||||||||
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. | ||||||||||||
Cost of Sales | ' | ' | ||||||||||
Cost of Sales | ||||||||||||
The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. | ||||||||||||
Advertising Costs | ' | ' | ||||||||||
Advertising Costs | ||||||||||||
The Company classifies expenses for advertising as general and administrative expenses. The Company incurred advertising costs of $98,222 and $29,210 during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Income Taxes | ' | ' | ||||||||||
The Company is subject to US and Canadian income taxes, respectively, on its US and Canadian income with a credit provided for foreign taxes paid. The combined effective rates of income tax expense (benefit) in the US and Canada are, respectively, 35% and 28% for the six months ended September 30, 2013 and 2012, respectively. | ||||||||||||
Income Taxes | ||||||||||||
The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax are 35.7% and 27.6% for the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. | ||||||||||||
Basic and Diluted Earnings Per Share | ' | ' | ||||||||||
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 630,500 and 530,000 stock options included in the fully diluted earnings per share as of September 30, 2013 and 2012, respectively. The Company uses the treasury stock method to calculate the dilutive effects of stock options and warrants. | ||||||||||||
Basic and Diluted Earnings Per Share | ||||||||||||
For the Six Months Ended | ||||||||||||
September 30, | The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 267,135 and 218,238 stock options included in the fully diluted earnings per share as of March 31, 2013 and 2012 respectively. Basic earnings per share for the years ended March 31, 2013 and 2012 are as follows: | |||||||||||
2013 | 2012 | |||||||||||
Net income applicable to common shareholders | S | 3,663,533 | S | 1,210,865 | For the Years Ended | |||||||
Weighted average shares outstanding | 45,289,301 | 45,054,918 | March 31, | |||||||||
Weighted average fully diluted shares outstanding | 45,905,364 | 45,436,770 | 2013 | 2012 | ||||||||
Basic earnings per share | S | 0.08 | S | 0.03 | Net income applicable to common shareholders | $ | 1,432,655 | $ | 3,187,771 | |||
Fully diluted earnings per share | S | 0.08 | S | 0.03 | Weighted average shares outstanding | 45,109,767 | 45,000,000 | |||||
Weighted average fully diluted shares outstanding | 45,371,965 | 45,218,238 | ||||||||||
Basic earnings per share | $ | 0.03 | $ | 0.07 | ||||||||
Fully diluted earnings per share | $ | 0.03 | $ | 0.07 | ||||||||
Foreign Currency and Comprehensive Income | ' | ' | ||||||||||
The Company’s functional currencies are the United States dollar (USD) and the Canadian dollar (CAD), the reporting currency is USD. All transactions initiated in other currencies are translated into the reporting currency in accordance with ASC830-20, “Foreign Currency Matters – Foreign Currency Transactions”. The period-end exchange rates of 0.97232 and 0.982898 were used to convert the Company’s September 30, 2013 and March 31, 2012 balance sheets, respectively, and the statements of operations used weighted average rates of 0.970557 and 1.02760 for the six months ended September 30, 2013 and 2012, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Statement of Operations and Other Comprehensive Income. | Foreign Currency and Comprehensive Income | |||||||||||
The Company’s functional currency is the Canadian Dollar (CAD). The financial statements of the Company were translated to U.S. Dollars (USD) using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.982898 and 1.00274 were used to convert the Company’s March 31, 2013 and 2012 balance sheets, respectively, and the statements of operations used weighted average rates of 0.982898 and 1.0075 for the years ended March 31, 2013 and 2012, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Statement of Operations and Comprehensive Income. | ||||||||||||
Recent Accounting Pronouncements | ' | ' | ||||||||||
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. | Recent Accounting Pronouncements | |||||||||||
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | ||||||||||||
Stock-Based Compensation | ' | ' | ||||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. | Stock-Based Compensation | |||||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment.” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. | ||||||||||||
Concentration of Credit Risk | ' | ' | ||||||||||
Concentration of Credit Risk | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s four largest customers approximated 37% and 52% of total sales for the years ended March 31, 2013, and 2012, respectively. | ||||||||||||
Research and Development | ' | ' | ||||||||||
Research and Development | ||||||||||||
All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $315,045 and $164,400 for the years ended March 31, 2013 and 2012 respectively. | ||||||||||||
Shipping and Handling Fees and Costs | ' | ' | ||||||||||
Shipping and Handling Fees and Costs | ||||||||||||
The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $299,864 and $189,611 during the years ended March 31, 2013 and 2012, respectively. | ||||||||||||
Comprehensive Income | ' | ' | ||||||||||
Comprehensive Income | ||||||||||||
Comprehensive income includes net income as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses and unrealized holding gains and losses on available for sale securities. |
2_SIGNIFICANT_ACCOUNTING_POLIC2
2. SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||
Inventory | ' | ' | ||||||||||
September 30, | March 31, | March 31, | March 31, | |||||||||
2013 | 2013 | 2013 | 2012 | |||||||||
Raw materials | $ | - | $ | - | Raw materials | $ | - | $ | - | |||
Finished goods | 6,256,988 | 3,553,140 | Finished goods | 3,553,140 | 2,026,108 | |||||||
Work in process | - | - | Work in process | - | - | |||||||
Subtotal | 6,256,988 | 3,553,140 | Subtotal | 3,553,140 | 2,026,108 | |||||||
Reserve for obsolescence | (87,908) | (89,526) | Reserve for obsolescence | -89,526 | -57,368 | |||||||
Total | $ | 6,169,080 | 3,463,614 | Total | $ | 3,463,614 | $ | 1,968,740 | ||||
Basic Earnings Per Share | ' | ' | ||||||||||
For the Years Ended | ||||||||||||
For the Six Months Ended | March 31, | |||||||||||
September 30, | 2013 | 2012 | ||||||||||
2013 | 2012 | Net income applicable to common shareholders | $ | 1,432,655 | $ | 3,187,771 | ||||||
Net income applicable to common shareholders | S | 3,663,533 | S | 1,210,865 | Weighted average shares outstanding | 45,109,767 | 45,000,000 | |||||
Weighted average shares outstanding | 45,289,301 | 45,054,918 | Weighted average fully diluted shares outstanding | 45,371,965 | 45,218,238 | |||||||
Weighted average fully diluted shares outstanding | 45,905,364 | 45,436,770 | Basic earnings per share | $ | 0.03 | $ | 0.07 | |||||
Basic earnings per share | S | 0.08 | S | 0.03 | Fully diluted earnings per share | $ | 0.03 | $ | 0.07 | |||
Fully diluted earnings per share | S | 0.08 | S | 0.03 | ||||||||
3_PROPERTY_AND_EQUIPMENT_Table
3. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||
Mar. 31, 2013 | ||||||
Property And Equipment Tables | ' | |||||
Schedule of estimated useful lives of assets | ' | |||||
Assets | Estimated useful life | |||||
Furniture and fixtures | 5 Years | |||||
Machinery and equipment | 5 Years | |||||
Buildings | 25 Years | |||||
Vehicles | 3 Years | |||||
Computers | 3 Years | |||||
Schedule of property and equipment | ' | |||||
2013 | 2012 | |||||
Office Furniture and Equipment | $ | 360,008 | $ | 258,127 | ||
Service and Shop Equipment | 391,780 | 314,875 | ||||
Vehicles | 431,255 | 251,107 | ||||
Land and Buildings | 1,760,247 | 1,721,564 | ||||
Total Property and Equipment | 2,943,290 | 2,545,673 | ||||
Accumulated Depreciation | -710,935 | -563,383 | ||||
Net Property and Equipment | $ | 2,232,355 | $ | 1,982,290 | ||
Schedule of depreciation expense property and equipment | ' | |||||
Years Ended March 31, | ||||||
2013 | 2012 | |||||
Cost of goods sold | $ | 48,768 | $ | 39,286 | ||
General and administrative | 195,070 | 159,421 | ||||
Total | $ | 243,838 | $ | 198,707 |
5_PROVISION_FOR_INCOME_TAXES_T
5. PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended | |||||
Mar. 31, 2013 | ||||||
Provision For Income Taxes Tables | ' | |||||
Schedule of effective income tax rate | ' | |||||
31-Mar-13 | March 31, 2012 | |||||
United States statutory income tax rate | 35.00% | 35.00% | ||||
Increase (decrease) in valuation allowance | 0.6 | -7.5 | ||||
Decrease in rate on income subject to Canadian income tax rates | - | - | ||||
Increase (decrease) in rate resulting from non-deductible expenses and deductible adjustments | 0.1 | 0.1 | ||||
0.7 | -7.4 | |||||
Effective income tax rate | 35.70% | 27.60% | ||||
Schedule of componenents of income tax expense | ' | |||||
Components of Income Tax Expense | 31-Mar-13 | 31-Mar-12 | ||||
Federal U.S. Income Taxes | ||||||
-Current | $ | 30,874 | $ | - | ||
-Deferred | 72,857 | 17,791 | ||||
Foreign (Canadian and Provincial) Income Taxes | 623,438 | 1,176,020 | ||||
State Income Taxes | ||||||
-Current | 3,736 | - | ||||
-Deferred | - | -30,360 | ||||
Total Income Tax Expense | $ | 730,905 | $ | 1,163,451 |
6_AVAILABLE_FOR_SALE_SECURITIE1
6. AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended | ||||
Mar. 31, 2013 | |||||
Available For Sale Securities Tables | ' | ||||
Schedule of available for sale securities | ' | ||||
Company name | Symbol | Shares | Market value (USD) | Fair market value | |
Copper King Mining Corporation | CPRK | 5,000 | $ 0.000 | $ - | |
Deep Blue Marine Inc. | DPBE | 120,000 | 0.000 | - | |
Total value of trading securities | $ - | ||||
The following table sets forth the available for sale securities held by the Company as of March 31, 2012: | |||||
Company name | Symbol | Shares | Market value (USD) | Fair market value | |
Copper King Mining Corporation | CPRK | 5,000 | $ 0.000 | $ - | |
Deep Blue Marine Inc. | DPBE | 120,000 | 0.001 | 835 | |
Total value of trading securities | $ 835 |
7_FAIR_VALUE_MEASUREMENT_Table
7. FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||
Description | As of September 30, 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other | Significant | |||||||||
(Level 1) | Observable Inputs | Unobservable Inputs | |||||||||||
(Level 2) | (Level 3) | ||||||||||||
Assets | |||||||||||||
Cash Equivalents | $ | 602,255 | $ | 602,255 | $ | - | $ | - |
8_SEGMENT_INFORMATION_Tables
8. SEGMENT INFORMATION (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ' | ||||||||||
Segment information | ' | ' | ||||||||||
For the Six Months Ended | Sales | 2013 | 2012 | |||||||||
September 30, | Canada | $ | 10,977,476 | $ | 15,055,543 | |||||||
Sales | 2013 | 2012 | United States | 5,909,791 | 869,670 | |||||||
Canada | $ | 7,204,313 | $ | 6,140,601 | ||||||||
United States | 9,319,723 | 1,916,265 | Total | $ | 16,887,267 | $ | 15,925,213 | |||||
Total | $ | 16,524,036 | $ | 8,056,866 | ||||||||
Long – Lived Assets | 2013 | 2012 | ||||||||||
Long-lived assets | September 30, | March 31, | Canada | $ | 1,560,869 | $ | 1,596,209 | |||||
2013 | 2012 | United States | 671,486 | 386,081 | ||||||||
Canada | $ | 1,490,389 | $ | 1,583,613 | ||||||||
United States | 914,053 | 648,742 | Total | $ | 2,232,355 | $ | 1,982,290 | |||||
Total | $ | 2,404,442 | $ | 2,232,355 | ||||||||
9_COMMON_STOCK_PURCHASE_OPTION1
9. COMMON STOCK PURCHASE OPTIONS (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2013 | |||||||||
Common Stock Purchase Options Tables | ' | ||||||||
Schedule of Company's stock option plans | ' | ||||||||
2013 | 2012 | ||||||||
Unexercised options, beginning of year | 1,010,000 | 1,010,000 | |||||||
Stock options issued during the year | 820,000 | - | |||||||
Stock options canceled | -25,000 | - | |||||||
Stock options expired | - | - | |||||||
Stock options exercised | - | - | |||||||
Unexercised options, end of year | 1,805,000 | 1,010,000 | |||||||
Exercisable options, end of year | 650,000 | 393,334 | |||||||
The following table summarizes information about the stock options as of March 31, 2013: | |||||||||
Outstanding Options | |||||||||
Wtd. Avg. | |||||||||
Range of | Remaining | Wtd. Avg. | Aggregate | ||||||
Exercise | Contractual | Exercise | Intrinsic | ||||||
Prices | Shares | Life (years) | Price | Value | |||||
$0.40 | 410,000 | 1.46 | $ 0.40 | $ 164,000 | |||||
$0.30 | 600,000 | 3.88 | 0.3 | 180,000 | |||||
$1.25 | 795,000 | 5.49 | 1.25 | 993,750 | |||||
1,805,000 | 4.04 | $ 0.74 | $ 1,337,750 | ||||||
The following table summarizes information about the exercisable stock options as of March 31, 2013: | |||||||||
Exercisable Options | |||||||||
Wtd. Avg. | |||||||||
Range of | Remaining | Wtd. Avg. | Aggregate | ||||||
Exercise | Contractual | Exercise | Intrinsic | ||||||
Prices | Shares | Life (years) | Price | Value | |||||
$ 0.40 | 410,000 | 1.46 | $ 0.40 | $ 164,000 | |||||
$ 0.30 | 240,000 | 3.88 | 0.30 | 72,000 | |||||
$ 1.25 | - | 5.49 | 1.25 | - | |||||
650,000 | 2.35 | $ 0.36 | $ 236,000 | ||||||
Schedule of non-vested options | ' | ||||||||
Wtd. Avg. | |||||||||
Grant Date | |||||||||
Options | Fair Value | ||||||||
Non-vested at March 31, 2012 | 616,666 | $ 0.34 | |||||||
Stock options issued during the year | 795,000 | 1.25 | |||||||
Vested during the year ended March 31, 2012 | -256,666 | 0.74 | |||||||
Non-vested at March 31, 2013 | 1,155,000 | $ 0.34 |
10_COMMITMENTS_AND_CONTINGENCI1
10. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||
Mar. 31, 2013 | |||
Commitments And Contingencies Tables | ' | ||
Schedule of operating lease | ' | ||
2014 | $ | 14,625 | |
Total | $ | 14,625 |
2_SIGNIFICANT_ACCOUNTING_POLIC3
2. SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Raw materials | $0 | $0 | $0 |
Finished goods | 6,256,988 | 3,553,140 | 2,026,108 |
Work in progress | 0 | 0 | 0 |
Reserve for obsolescence | -87,908 | -89,526 | -57,368 |
Total | $6,169,080 | $3,463,614 | $1,968,740 |
2_SIGNIFICANT_ACCOUNTING_POLIC4
2. SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' |
Net income applicable to common shareholders | $2,049,549 | $645,130 | $3,663,533 | $1,210,865 | $1,432,655 | $3,187,771 |
Weighted average shares outstanding | 45,289,301 | 45,078,587 | 45,274,863 | 45,054,918 | 45,109,767 | 45,000,000 |
Weighted average fully diluted shares outstanding | 45,905,364 | 45,460,439 | 45,905,364 | 45,436,770 | 45,371,965 | 45,218,238 |
Basic earnings per share | $0.05 | $0.01 | $0.08 | $0.03 | $0.03 | $0.07 |
Fully diluted earnings per share | $0.04 | $0.01 | $0.08 | $0.03 | $0.03 | $0.07 |
2_SIGNIFICANT_ACCOUNTING_POLIC5
2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Bank balances | $602,255 | $2,647,608 | $808,772 | $1,914,877 | $1,689,386 |
Allowance for doubtful accounts | $126,554 | ' | $133,974 | $65,110 | ' |
Effective rates of income tax expense (benefit) | 35.00% | 28.00% | 35.00% | 35.00% | ' |
Stock options included in the fully diluted earnings per share | 630,500 | 530,000 | ' | ' | ' |
Period-end exchange rates | '0.97232 | ' | '0.982898 | ' | ' |
Weighted average exchange rate | '0.970557 | '1.02760 | ' | ' | ' |
3_PROPERTY_AND_EQUIPMENT_Detai
3. PROPERTY AND EQUIPMENT (Details) | Mar. 31, 2013 |
Furniture and Fixtures | ' |
Expected Useful Lives | '5 years |
Machinery and Equipment | ' |
Expected Useful Lives | '5 years |
Buildings | ' |
Expected Useful Lives | '25 years |
Vehicles | ' |
Expected Useful Lives | '3 years |
Computers | ' |
Expected Useful Lives | '3 years |
3_PROPERTY_AND_EQUIPMENT_Detai1
3. PROPERTY AND EQUIPMENT (Details 1) (USD $) | Mar. 31, 2013 | Mar. 31, 2012 |
Property And Equipment Details 1 | ' | ' |
Office Furniture and Equipment | $360,008 | $258,127 |
Service and Shop Equipment | 391,780 | 314,875 |
Vehicles | 431,255 | 251,107 |
Land and Buildings | 1,760,247 | 1,721,564 |
Total Property and Equipment | 2,943,290 | 2,545,673 |
Accumulated Depreciation | -710,935 | -563,383 |
Net Property and Equipment | $2,232,355 | $1,982,290 |
3_PROPERTY_AND_EQUIPMENT_Detai2
3. PROPERTY AND EQUIPMENT (Details 2) (USD $) | 12 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2012 | |
Property And Equipment Details 2 | ' | ' |
Cost of goods sold | $48,768 | $39,286 |
General and administrative | 195,070 | 159,421 |
Total | $243,838 | $198,707 |
5_PROVISION_FOR_INCOME_TAXES_D
5. PROVISION FOR INCOME TAXES (Details) | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Provision For Income Taxes Details | ' | ' | ' | ' |
United States statutory income tax rate | 35.00% | 28.00% | 35.00% | 35.00% |
Increase (decrease) in valuation allowance | ' | ' | 0.60% | -7.50% |
Decrease in rate on income subject to Canadian income tax rates | ' | ' | 0.00% | 0.00% |
Increase (decrease) in rate resulting from non-deductible expenses and deductible adjustments | ' | ' | 0.10% | 0.10% |
Other | ' | ' | 0.70% | -7.40% |
Effective income tax rate | ' | ' | 35.70% | 27.60% |
5_PROVISION_FOR_INCOME_TAXES_D1
5. PROVISION FOR INCOME TAXES (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Provision For Income Taxes Details 1 | ' | ' | ' | ' | ' | ' |
-Current | ' | ' | ' | ' | $30,874 | $0 |
-Deferred | ' | ' | ' | ' | 72,857 | 17,791 |
Foreign (Canadian and Provincial) Income Taxes | ' | ' | ' | ' | 623,438 | 1,176,020 |
-Current | ' | ' | ' | ' | 3,736 | 0 |
-Deferred | ' | ' | ' | ' | 0 | -30,360 |
Total Income Tax Expense | $1,109,803 | $276,621 | $1,844,214 | $464,569 | $730,905 | $1,163,451 |
6_AVAILABLE_FOR_SALE_SECURITIE2
6. AVAILABLE FOR SALE SECURITIES (Details) (USD $) | Mar. 31, 2013 | Mar. 31, 2012 |
Copper King Mining Corporation | ' | ' |
Shares | 5,000 | 5,000 |
Market value | $0 | $0 |
Fair market value | 0 | 0 |
Deep Blue Marine Inc | ' | ' |
Shares | 120,000 | 120,000 |
Market value | 0 | 0 |
Fair market value | $0 | $835 |
7_FAIR_VALUE_MEASUREMENT_Detai
7. FAIR VALUE MEASUREMENT (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Mar. 31, 2011 |
Assets | ' | ' | ' | ' | ' |
Cash Equivalents | $602,255 | $808,772 | $2,647,608 | $1,914,877 | $1,689,386 |
Marketable Securites | ' | ' | ' | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash Equivalents | 602,255 | ' | ' | ' | ' |
Marketable Securites | ' | ' | ' | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash Equivalents | ' | ' | ' | ' | ' |
Marketable Securites | ' | ' | ' | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash Equivalents | ' | ' | ' | ' | ' |
Marketable Securites | ' | ' | ' | ' | ' |
8_SEGMENT_INFORMATION_Details
8. SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Sales | ' | ' | ' | ' | ' | ' |
Canada | ' | ' | $7,204,313 | $6,140,601 | $10,977,476 | $15,055,543 |
United States | ' | ' | 9,319,723 | 1,916,265 | 5,909,791 | 869,670 |
Total | $9,342,456 | $4,379,593 | $16,524,036 | $8,056,866 | $16,887,267 | $15,925,213 |
8_SEGMENT_INFORMATION_Details_
8. SEGMENT INFORMATION (Details 2) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 |
Long-Lived Assets | ' | ' | ' |
Canada | $1,490,389 | $1,560,869 | $1,596,209 |
United States | 914,053 | 671,486 | 386,081 |
Total | $2,404,442 | $2,232,355 | $1,982,290 |
9_COMMON_STOCK_PURCHASE_OPTION2
9. COMMON STOCK PURCHASE OPTIONS (Details) | 12 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2012 | |
Common Stock Purchase Options Details | ' | ' |
Unexercised options, beginning of year | 1,010,000 | 1,010,000 |
Stock options issued during the year | 820,000 | 0 |
Stock options canceled | -25,000 | 0 |
Stock options expired | 0 | 0 |
Stock options exercised | 0 | 0 |
Unexercised options, end of year | 1,805,000 | 1,010,000 |
Exercisable options, end of year | 650,000 | 393,334 |
9_COMMON_STOCK_PURCHASE_OPTION3
9. COMMON STOCK PURCHASE OPTIONS (Details 1) (USD $) | Mar. 31, 2013 |
Stock Options 1 | ' |
Range of exercise prices | $0.40 |
Shares | 410,000 |
Weighted average remaining contractual life (years) | '1 year 5 months 16 days |
Weighted average exercise price | $0.40 |
Aggregate intrinsic value | $164,000 |
Stock Options 2 | ' |
Range of exercise prices | $0.30 |
Shares | 600,000 |
Weighted average remaining contractual life (years) | '3 years 10 months 17 days |
Weighted average exercise price | $0.30 |
Aggregate intrinsic value | 180,000 |
Stock Options 3 | ' |
Range of exercise prices | $1.25 |
Shares | 795,000 |
Weighted average remaining contractual life (years) | '5 years 5 months 26 days |
Weighted average exercise price | $1.25 |
Aggregate intrinsic value | 993,750 |
Stock Options Total | ' |
Shares | 1,805,000 |
Weighted average remaining contractual life (years) | '4 years 14 days |
Weighted average exercise price | $0.74 |
Aggregate intrinsic value | 1,337,750 |
Exercisable Stock Options 1 | ' |
Range of exercise prices | $0.40 |
Shares | 410,000 |
Weighted average remaining contractual life (years) | '1 year 5 months 16 days |
Weighted average exercise price | $0.40 |
Aggregate intrinsic value | 164,000 |
Exercisable Stock Options 2 | ' |
Range of exercise prices | $0.30 |
Shares | 240,000 |
Weighted average remaining contractual life (years) | '3 years 10 months 17 days |
Weighted average exercise price | $0.30 |
Aggregate intrinsic value | 72,000 |
Exercisable Stock Options 3 | ' |
Range of exercise prices | $1.25 |
Shares | 0 |
Weighted average remaining contractual life (years) | '5 years 5 months 26 days |
Weighted average exercise price | $1.25 |
Aggregate intrinsic value | 0 |
Exercisable Stock Options Total | ' |
Shares | 650,000 |
Weighted average remaining contractual life (years) | '2 years 4 months 6 days |
Weighted average exercise price | $0.36 |
Aggregate intrinsic value | $236,000 |
9_COMMON_STOCK_PURCHASE_OPTION4
9. COMMON STOCK PURCHASE OPTIONS (Details 2) (USD $) | 12 Months Ended |
Mar. 31, 2013 | |
Options: | ' |
Non-vested at March 31, 2012 | $616,666 |
Stock options issued during the year | 795,000 |
Vested during the year ended March 31, 2012 | -256,666 |
Non-vested at March 31, 2013 | $1,155,000 |
Non-vested at March 31, 2012 | $0.34 |
Stock options issued during the year | $1.25 |
Vested during the year ended March 31, 2012 | $0.74 |
Non-vested at March 31, 2013 | $0.34 |
10_COMMITMENTS_AND_CONTINGENCI2
10. COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2013 |
Commitments And Contingencies Details | ' |
2014 | $14,625 |
Total | $14,625 |