Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Jun. 06, 2016 | Sep. 30, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | Profire Energy Inc | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2016 | ||
Trading Symbol | pfie | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,289,636 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 53,316,134 | ||
Entity Public Float | $ 23,789,064 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, Date of Incorporation | May 5, 2003 | ||
Entity Incorporation, State Country Name | Nevada |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 21,292,595 | $ 14,144,796 |
Accounts receivable, net | 4,132,137 | 9,462,378 |
Inventories | 11,046,682 | 11,766,535 |
Income tax receivable | 268,326 | |
Prepaid expenses & other current assets | 315,757 | 112,741 |
Total Current Assets | 37,055,497 | 35,486,450 |
LONG-TERM ASSETS | ||
Deferred tax asset | 452,431 | 501,921 |
PROPERTY AND EQUIPMENT, net | 8,232,911 | 9,275,965 |
OTHER ASSETS | ||
Goodwill | 997,701 | 997,701 |
Intangible assets, net of accumulated amortization | 529,300 | 594,019 |
Total Other Assets | 1,527,001 | 1,591,720 |
TOTAL ASSETS | 47,267,840 | 46,856,056 |
CURRENT LIABILITIES | ||
Accounts payable | 893,822 | 1,040,530 |
Accrued liabilities | 620,783 | 332,229 |
Income taxes payable | 335,375 | 347,486 |
Total current liabilities | 1,849,980 | 1,720,245 |
LONG-TERM LIABILITIES | ||
Deferred income tax liability | 632,732 | 631,353 |
TOTAL LIABILITIES | $ 2,482,712 | $ 2,351,598 |
STOCKHOLDERS' EQUITY | ||
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding | ||
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,256,296 and 53,199,136 shares issued and outstanding, respectively | $ 53,256 | $ 53,199 |
Additional paid-in capital | 26,164,622 | 25,525,052 |
Accumulated other comprehensive income (loss) | (2,282,682) | (1,888,981) |
Retained earnings | 20,849,932 | 20,815,188 |
Total Stockholders' Equity | 44,785,128 | 44,504,458 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 47,267,840 | $ 46,856,056 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
CONSOLIDATED BALANCE SHEETS PARENTHETICAL | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | ||
Preferred stock shares outstanding | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,256,296 | 53,199,136 |
Common stock shares outstanding | 53,256,296 | 53,199,136 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUES | ||
Sales of goods, net | $ 23,992,324 | $ 47,768,556 |
Sales of services, net | 3,080,122 | 3,410,836 |
Total Revenues | 27,072,446 | 51,179,392 |
COST OF SALES | ||
Cost of goods sold-product | 11,027,114 | 21,240,363 |
Cost of goods sold-services | 2,405,012 | 2,716,272 |
Total Cost of Goods Sold | 13,432,126 | 23,956,635 |
GROSS PROFIT | 13,640,320 | 27,222,757 |
OPERATING EXPENSES | ||
General and administrative expenses | 12,264,442 | 16,296,156 |
Research and development | 899,013 | 1,832,671 |
Depreciation and amortization expense | 516,786 | 558,231 |
Total Operating Expenses | 13,680,241 | 18,687,058 |
INCOME FROM OPERATIONS | (39,921) | 8,535,699 |
OTHER INCOME (EXPENSE) | ||
Gain on sale of fixed assets | 20,278 | 8,014 |
Other (expense) income | 144,937 | 21,865 |
Interest income | 37,278 | 26,010 |
Total Other Income (Expense) | 202,493 | 55,889 |
NET INCOME BEFORE INCOME TAXES | 162,572 | 8,591,588 |
INCOME TAX EXPENSE | 127,828 | 2,843,905 |
NET INCOME | 34,744 | 5,747,683 |
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) | (393,701) | (1,657,930) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (358,957) | $ 4,089,753 |
BASIC EARNINGS PER SHARE | $ 0 | $ 0.11 |
FULLY DILUTED EARNINGS PER SHARE | $ 0 | $ 0.11 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,243,151 | 51,609,760 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,558,942 | 51,680,775 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common stock | Additional Paid-in Capital | Other Comprehensive Income | Retained Earnings | Total |
Balance at Mar. 31, 2014 | $ 47,836 | $ 6,496,980 | $ (231,051) | $ 15,067,505 | $ 21,381,270 |
Balance - shares at Mar. 31, 2014 | 47,836,543 | ||||
Fair value of options vested | 1,280,785 | 1,280,785 | |||
Stock issued for asset acquisition | $ 266 | 999,734 | 1,000,000 | ||
Stock issued for asset acquisition - shares | 265,958 | ||||
Exercised options | $ 597 | 327,365 | 327,962 | ||
Exercised options - shares | 596,635 | ||||
Stock issuance | $ 4,500 | 16,420,188 | 16,424,688 | ||
Stock issuance - shares | 4,500,000 | ||||
Foreign currency translation | (1,657,930) | (1,657,930) | |||
NET INCOME | 5,747,683 | 5,747,683 | |||
Balance at Mar. 31, 2015 | $ 53,199 | 25,525,052 | (1,888,981) | 20,815,188 | 44,504,458 |
Balance - shares at Mar. 31, 2015 | 53,199,136 | ||||
Fair value of options vested | 565,646 | 565,646 | |||
Exercised options | $ 57 | 73,924 | 73,981 | ||
Exercised options - shares | 57,160 | ||||
Foreign currency translation | (393,701) | (393,701) | |||
NET INCOME | 34,744 | 34,744 | |||
Balance at Mar. 31, 2016 | $ 53,256 | $ 26,164,622 | $ (2,282,682) | $ 20,849,932 | $ 44,785,128 |
Balance - shares at Mar. 31, 2016 | 53,256,296 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net Income | $ 34,744 | $ 5,747,683 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 989,484 | 1,140,319 |
Gain on sale of fixed assets | (20,278) | (8,014) |
Bad debt expense | 143,192 | (7,577) |
Stock options issued for services | 678,971 | 1,280,785 |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | 5,114,485 | (912,606) |
Changes in income tax receivable | (268,327) | |
Changes in inventories | 641,410 | (5,472,869) |
Changes in prepaid expenses | (171,411) | (80,770) |
Changes in deferred tax asset/liability | 49,490 | (80,943) |
Changes in accounts payable and accrued liabilities | 148,921 | (302,782) |
Changes in income taxes payable | (7,748) | (618,146) |
Net Cash Provided by Operating Activities | 7,332,933 | 685,080 |
INVESTING ACTIVITIES | ||
Proceeds from sale of equipment | 158,641 | 7,867 |
Cash paid for asset acquisition | (750,000) | |
Purchase of fixed assets | (62,465) | (6,167,945) |
Net Cash Provided by (Used in) Investing Activities | 96,176 | (6,910,078) |
FINANCING ACTIVITIES | ||
Proceeds from stock issued for cash, net of stock offering costs | 16,424,688 | |
Value of equity awards surrendered by employees for tax liability | (39,342) | |
Stock issued in exercise of stock options | 327,961 | |
Net Cash Provided by (Used in) Financing Activities | (39,342) | 16,752,649 |
Effect of exchange rate changes on cash | (241,968) | (839,529) |
NET CHANGE IN CASH | 7,147,799 | 9,688,122 |
CASH AT BEGINNING OF PERIOD | 14,144,796 | 4,456,674 |
CASH AT END OF PERIOD | 21,292,595 | 14,144,796 |
CASH PAID FOR: | ||
Interest | 17,043 | |
Income taxes | $ 127,828 | 3,471,027 |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ||
Stock issued for asset acquisition | $ 1,000,000 |
Note 1 - Significant Accounting
Note 1 - Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 1 - Significant Accounting Policies | Note 1 – Organization and Summary of Significant Accounting Policies This Organization and 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. 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. Organization and Line of Business 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. The Company provides products and services for burners and heaters for the oil and gas extraction industry in the Canadian and US markets. 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 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 The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. 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 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 equity awards of 315,791 and 71,015 included in the fully diluted earnings per share as of March 31, 2016 and 2015 respectively. Basic earnings per share for the years ended March 31, 2016 and 2015 are as follows: For the Years Ending March 31, 2016 2015 Net income applicable to common shareholders $ 34,744 $ 5,747,683 Weighted average shares outstanding 53,243,151 51,609,760 Weighted average fully diluted shares outstanding 53,558,942 51,680,775 Basic earnings per share $ 0.00 $ 0.11 Fully diluted earnings per share $ 0.00 $ 0.11 Foreign Currency and Comprehensive Income The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the Company were translated to 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 0.7711 and 0.7888 were used to convert the Company’s March 31, 2016 and 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7642 and 0.8808 for the years ended March 31, 2016 and 2015, 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 Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders’ Equity. 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 March 31, 2016 and 2015, cash and cash equivalents totaled $21,292,595 and $14,144,796 respectively. A small portion of these deposits were insured by the Company’s banks and guaranteed by the FDIC and the CDIC. 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 $250,646 and $108,641 as of March 31, 2016 and 2015, respectively. Inventories In accordance with ARB No. 43 “Inventory Pricing,” For the Years Ending March 31, 2016 2015 Raw materials $ 967,823 $ — Finished goods 10,316,857 11,951,108 Work in process — — Subtotal 11,284,680 11,951,108 Reserve for Obsolence (237,998) (184,573) Total $ 11,046,682 $ 11,766,535 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. Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. 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. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles—Goodwill and Other”. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Company’s acquisition has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 350, “Intangibles—Goodwill and Other” (“ASC 350”). Goodwill is tested for impairment at the reporting unit level. The Company’s two operating segments comprise the reporting unit for goodwill impairment testing purposes. 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 $65,555 and $259,056 during the years ended March 31, 2016 and 2015, 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 represented approximately 22% and 31% of total sales for the years ended March 31, 2016, and 2015, respectively. Sales to the Company’s four largest customers represented approximately 22% of total sales. Sales to the Company’s four largest customers represented approximately 33% of total sales. 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 78.6% and 33.1% for the years ended March 31, 2016 and 2015, 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 $899,013 and $1,832,671 for the years ended March 31, 2016 and 2015, 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 $251,351 and $498,994 during the years ended March 31, 2016 and 2015, respectively. Comprehensive Income (Loss) 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. 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. Property and Equipment Useful Lives 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: Estimated useful life Assets Current Prior Furniture and fixtures 7 Years 5 Years Machinery and equipment 7 Years 5 Years Buildings 30 Years 25 Years Vehicles 5 Years 3 Years Computers 3 Years 3 Years Software 2 Years N/A Beginning in fiscal year 2016, the Company revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type with a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended December 31, 2015. |
Note 2 - Property and Equipment
Note 2 - Property and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 2 - Property and Equipment | Note 2 – Property and equipment Property and equipment consisted of the following as of March 31, 2016 and 2015: For the Years Ending March 31, 2016 2015 Office furniture and equipment $ 968,135 $ 937,274 Service and shop equipment 577,240 573,233 Vehicles 2,715,920 3,040,439 Land and buildings 6,733,415 6,746,597 Total property and equipment 10,994,710 11,297,543 Accumulated depreciation (2,761,799) (2,021,578) Net property and equipment $ 8,232,911 $ 9,275,965 Depreciation expense for the years ended March 31, 2016 and 2015 are as follows: For the Years Ending March 31, 2016 2015 Cost of Goods Sold $ 474,539 $ 582,088 General and administrative 516,786 558,231 Total $ 991,325 $ 1,140,319 |
Note 3 - Stockholders' Equity
Note 3 - Stockholders' Equity | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 3 - Stockholders' Equity | Note 3 – Stockholders’ Equity The Company had the following $0.001 par value authorized stock: Preferred Stock 10,000,000 shares. Common Stock 100,000,000 shares. During the years ended March 31, 2016 and 2015, the Company did not issue shares of its common stock for services. As of March 31, 2016 and 2015, the Company had 53,256,296 and 53,199,136 shares of common stock, respectively. Please refer to Note 8 of the Consolidated Financial Statements for additional information regarding common stock issuances. On June 2, 2014, we filed a registration statement on Form S-1 to register shares of our common stock with the Securities and Exchange Commission to be offered to the public by us and by certain selling stockholders named in the registration statement. We also filed amendments to such registration statement on June 19, 2015, June 24, 2014, June 25, 2014, and June 26, 2014. Our net proceeds from the sale of 4,500,000 shares of our common stock by us pursuant to the registration statement was approximately 16,424,688 |
Note 4 - Asset Purchases
Note 4 - Asset Purchases | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 4 - Asset Purchases | NOTE 4 – ASSET PURCHASES VIM Injection Management Inc. On November 14, 2014, the Company, entered into an agreement to purchase the assets of VIM Injection Management Inc. Pursuant to the asset purchase agreement, the purchase price of the assets consisted of a one-time payment of $750,000 in cash and 265,958 shares of the Company’s common stock, which was valued at $1,000,000 ($3.76 per share). The value of the stock was based on the trading price on the date of issuance. Acquisition-related costs during the year ended March 31, 2015, which are included in the selling, general, and administrative expense in the accompanying consolidated statements of income, were not material. The results of operations related to this acquisition have been included in our Canadian segment since the acquisition date. The total purchase price was allocated as follows: Consideration paid: Cash paid $ 750,000 Common stock issued 1,000,000 Total purchase price 1,750,000 Consideration received: Inventory $ 54,577 Intangible assets Tundra Distribution Agreement 46,722 Patent 650,000 Other Intellectual Property 1,000 Total Intangible Assets 697,722 $ 752,299 Goodwill was recognized as a result of the acquisition as follows: Total consideration paid $ 1,750,000 Total consideration received (752,299) $ 997,701 With respect to the intangible assets of VIM, the Company intends to amortize each as follows, as this is the length of time the Company currently estimates that it will generate cash flow from the assets: Tundra Distribution Agreement 9 months Patent 20 years Other Intellectual Property 20 years The total weighted-average amortization period for these acquired intangible assets is 20 years. |
Note 5 - Intangible Assets
Note 5 - Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 5 - Intangible Assets | NOTE 5 – INTANGIBLE ASSETS Definite-lived intangible assets consist of distribution agreements, patents, trademarks, copyrights, and domain names. The costs of the distribution agreements were amortized over the remaining life of the agreements. The costs of the patents are to be amortized over 20 years once the patent has been approved. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, Goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. The Company’s annual goodwill impairment testing date is March 31 of each year. Intangible assets consisted of the following as of March 31, 2016 and 2015: Definite-lived intangible assets For the Years Ending March 31, 2016 2015 Distribution agreements $ 40,702 $ 41,638 Less: Accumulated amortization (40,702) (27,757) Distribution agreements, net — 13,881 Patents, trademarks, copyrights, and domain names 567,109 580,138 Less: Accumulated amortization (37,809) — Total definite-lived intangible assets, net $ 529,300 $ 594,019 Indefinite-lived intangible assets For the Years Ending March 31, 2016 2015 Goodwill $ 997,701 $ 997,701 Estimated amortization expense for the distribution agreements, patents, trademarks, copyrights, and domain names for the next five years consists of the following as of March 31, 2016: For the Years Ending March 31, Year Amount 2017 $ 28,103 2018 28,103 2019 28,103 2020 28,103 2021 28,103 Citing an Update to ASC 2011-08, entities are provided with the option of first performing a qualitative assessment on none, some, or all of its reporting units to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If after completing a qualitative analysis, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative analysis is required. The Company elected to evaluate the goodwill associated with the VIM purchase using a quantitative two-step approach. The first step used to identify potential impairment involves comparing the reporting unit’s estimated fair value to its carrying value, including goodwill. The aforementioned mentioned step one quantitative tests did not indicate impairment. During the first step of testing, the Company evaluated goodwill for impairment using a business valuation method, which is calculated as of a measurement date by determining the present value of debt-free, after-tax projected future cash flows, discounted at the weighted average cost of capital of a hypothetical third party buyer. This analysis also did not indicate impairment. The second step of the process involves the calculation of an implied fair value of goodwill for each reporting unit for which step one indicated impairment. The implied fair value of goodwill is determined by measuring the excess of the estimated fair value of the reporting unit over the estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit and the subsequent reversal of goodwill impairment losses is not permitted. The determination of fair value requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to, revenue growth and operating earnings projections, discount rates, terminal growth rates, and required capital expenditure projections. Due to the inherent uncertainty involved in making these estimates, actual results could differ materially from those estimates. Deterioration in the market or actual results as compared with the projections may ultimately result in a future impairment. In the event the Company determines that goodwill is impaired in the future, the Company would need to recognize a non-cash impairment charge. For 2016, the Company determined on a qualitative basis, it was not more likely than not that the fair value of the goodwill arising from the VIM acquisition was less than its carrying value. The Company did not have any impairment for the year ended March 31, 2016. |
Note 6 - Provision for Income T
Note 6 - Provision for Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 6 - Provision for Income Taxes | Note 6 – Provision for Income taxES Reconciliation of US Federal/Canadian Statutory Income Tax Rate to Effective Income Tax Rate: For the Years Ending March 31, 2016 2015 United States statutory income tax rate 35.0% 35.0% Decrease in rate on income subject to Canadian income tax rates — -1.5% Decrease in rate resulting from non-deductible expenses and deductible adjustments 43.6% -0.4% 43.6% -1.9% Effective income tax rate 78.6% 33.1% For the Years Ending March 31, Components of Income Tax Expense 2016 2015 Federal U.S. Income Taxes -Current $ 363,768 $ 1,187,957 -Deferred (89,337) 442,095 Foreign (Canadian and Provincial) Income Taxes (240,372) 998,280 State Income Taxes -Current 93,768 215,572 Total Income Tax Expense $ 127,828 $ 2,843,905 The following are temporary items: 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 2016 and 2015. 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, 2016 and 2015 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, 2016 and 2015, the Company recognized no interest and penalties. The Company had no accruals for interest and penalties at March 31, 2016 and 2015. Net deferred tax liability arising from the accelerated depreciation claimed by the Parent on its stand-alone tax return is $602,691 and $631,353 as of March 31, 2016 and 2015, respectively. Net deferred tax asset arising from the deferred recognition of stock option compensation by the Parent on its stand-alone tax return is $549,270 and $501,920 as of March 31, 2016 and 2015, respectively |
Note 7 - Segment Information
Note 7 - Segment Information | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 7 - Segment Information | NOTE 7 – SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Years Ending March 31, Sales 2016 2015 Canada $ 6,010,042 $ 14,769,787 United States 21,062,404 36,409,605 Total $ 27,072,446 $ 51,179,392 For the Years Ending March 31, Long-lived assets 2016 2015 Canada $ 1,067,346 $ 1,231,434 United States 7,165,565 8,044,531 Total $ 8,232,911 $ 9,275,965 |
Note 8 - Common Stock Purchase
Note 8 - Common Stock Purchase Options | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 8 - Common Stock Purchase Options | NOTE 8 – COMMON STOCK AND COMMON STOCK PURCHASE OPTIONS On May 1, 2014, the Company issued a total of 133,900 stock purchase options exercisable for the purchase of its common stock at $4.03 per share. The options were issued to key employees. The options vest 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 were used for grants as of May 1, 2014: dividend yield of zero percent; expected volatility of 149%; risk-free interest rates of 0.82% and expected life of 3.5 years. On May 1, 2014, the Company issued a total of 180,000 shares of restricted stock to key employees. The shares vest 1/5 each year for 5 years. The Company estimates the fair value of the restricted shares at their intrinsic value at time of granting. On September 18, 2014, the Company issued a total of 79,812 shares of restricted stock units to the independent directors of the company. Half of the shares vested immediately with the remaining half vesting one year after issuance. Additionally, the company issued a total of 12,000 shares of restricted stock units to key employees. The units vest 1/5 each year for 5 years. The Company estimates the fair value of the units at their intrinsic value at time of granting. On November 6, 2014, the Company issued a total of 49,999 shares of restricted stock units to key employees. The units vest 1/5 each year for 5 years based on performance and service longevity requirements. The Company estimates the fair value of the units at their intrinsic value at time of granting. On March 27, 2015, the Company issued a total of 5,000 restricted stock units to a key employee. The units vest 1/5 each year for 5 years. The Company estimates the fair value of the units at their intrinsic value at time of granting. On July 23, 2015, the Company issued a total of 208,334 restricted stock units to key employees. The units vest 1/5 each year for 5 years. The Company estimates the fair value of the units at their intrinsic value at time of granting. On October 30, 2015, the Company issued a total of 320,000 restricted stock units to the independent directors of the company. Half of the shares vested immediately with the remaining half vesting September 17, 2016. The Company estimates the fair value of the units at their intrinsic value at time of granting. A summary of the status of the Company’s stock option plans as of March 31, 2016 and 2015 and the changes during the period are presented below: Wtd. Avg. Options Exercise Price Outstanding, March 31, 2014 3,074,850 1.47 Granted 133,900 4.03 Exercised (596,635) 0.55 Forfeited/Expired (498,615) 1.39 Outstanding, March 31, 2015 2,113,500 1.90 Exercisable, March 31, 2015 907,000 2.27 Wtd. Avg. Options Exercise Price Outstanding, March 31, 2015 2,113,500 1.90 Granted - - Exercised - - Forfeited/Expired (552,300) 1.54 Outstanding, March 31, 2016 1,561,200 2.02 Exercisable, March 31, 2016 1,050,800 2.12 The following table summarizes information about the stock options as of March 31, 2015: Total Outstanding and Exercisable For the Year Ending March 31, 2015 Strike Price Outstanding Options (1 share/option) Avg. Remaining Life (Yrs) Exercisable Shares Wtd. Avg. Exercise Price $ 0.30 110,000 1.88 40,000 0.30 $ 1.37 1,118,000 4.08 284,000 1.37 $ 1.75 475,000 2.93 283,000 1.75 $ 3.85 200,000 4.61 200,000 3.85 $ 3.95 100,000 4.86 100,000 3.95 $ 4.03 110,500 5.09 - 4.03 2,113,500 4.02 907,000 2.27 The following table summarizes information about the stock options as of March 31, 2016: Total Outstanding and Exercisable For the Year Ending March 31, 2016 Strike Price Outstanding Options (1 share/option) Avg. Remaining Life (Yrs) Exercisable Shares Wtd. Avg. Exercise Price $ 0.30 110,000 0.88 110,000 0.30 $ 1.37 711,500 3.13 345,500 1.37 $ 1.75 346,500 1.93 276,500 1.75 $ 3.85 200,000 3.61 200,000 3.85 $ 3.95 100,000 3.86 100,000 3.95 $ 4.03 93,200 4.09 18,800 4.03 1,561,200 2.92 1,050,800 2.12 The following table summarizes information about non-vested options as of the year ended March 31, 2016: Wtd. Avg. Grant Date Non-vested options Options Fair Value Non-vested at March 31, 2015 1,206,500 1.58 Stock options issued during the year - - Stock options canceled (552,300) 1.54 Vested during the year ended March 31, 2016 (370,600) 1.40 Cancellation of previously vested stock options 226,800 1.54 Non-vested at March 31, 2016 510,400 1.81 The following table summarizes information about non-vested restricted stock as of the year ended March 31, 2016: Wtd. Avg. Restricted Grant Date Non-vested restricted stock Stock Fair Value Non-vested at March 31, 2015 171,666 4.03 Restricted stock issued during the year - - Restricted Stock canceled (40,000) 4.03 Vested during the year ended March 31, 2016 (34,332) 4.03 Non-vested at March 31, 2016 97,334 4.03 Wtd. Avg. Restricted Grant Date Non-vested restricted stock units Stock Units Fair Value Non-vested at March 31, 2015 106,907 3.94 Restricted stock units issued during the year 528,334 1.05 Restricted stock units canceled (76,999) 1.68 Vested, not settled during the period ended March 31, 2016 (199,908) 1.68 Vested & settled during the year ended March 31, 2016 (53,001) 1.62 Non-vested at March 31, 2016 305,333 1.38 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 9 - Commitments and Contingencies | note 9 – Commitments and Contingencies Royalties The Company paid no royalties years ended March 31, 2016 and 2015, as a royalty agreement was replaced with a consulting agreement in March 2015. The agreement was executed between the Company and Terra Industrial, with Allen Johnson as agent. The intent of this agreement was to replace the aforementioned royalty agreements. The agreement is for the term of 10 years with fees of $100,000 CAD paid quarterly. Contingent Liabilities The future minimum lease payments for operating leases as of March 31, 2016, consisted of the following: Years Ending March 31, Operating Leases 2017 $ 35,724 2018 – Thereafter – $ 35,724 |
Note 10 - Quarterly Results of
Note 10 - Quarterly Results of Operations (unaudited) | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 10 - Quarterly Results of Operations (unaudited) | Note 10 – QUARTERLY RESULTS OF oPERATIONS (UNAUDITED) Quarterly data for the years ended March 31, 2016 and 2015 consisted of the following: For the Quarters Ending 2016 Jun 30 Sep 30 Dec 31 Mar 31 Net sales $ 6,877,243 $ 8,097,294 $ 7,554,255 $ 4,543,654 Gross profit 3,313,519 $ 4,028,403 $ 3,998,502 $ 2,299,895 Income (loss) from operations (539,374) $ 675,396 $ 490,322 $ (666,265) Income tax expense (benefit) (149,525) $ 254,781 $ 194,227 $ (171,654) Net income (loss) (459,079) $ 779,195 $ 479,243 $ (764,617) Basic earnings per common share $ (0.01) $ 0.01 $ 0.01 $ (0.01) Diluted earnings per common share $ (0.01) $ 0.01 $ 0.01 $ (0.01) For the Quarters Ending 2015 Jun 30 Sep 30 Dec 31 Mar 31 Net sales $ 13,144,834 $ 15,720,932 $ 12,516,699 $ 9,796,927 Gross profit 7,437,100 8,549,443 6,542,595 469,362 Income from operations 336,639 3,253,591 1,806,117 109,602 Income tax expense (benefit) 1,149,042 1,182,676 (110,426) 622,612 Net income (loss) 2,220,706 2,078,201 191,715 (468,373) Basic earnings per common share $ 0.05 $ 0.04 $ 0.04 $ (0.01) Diluted earnings per common share $ 0.05 $ 0.04 $ 0.04 $ (0.01) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly amounts may not equal the total computed for the year. |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 12 Months Ended |
Mar. 31, 2016 | |
Notes | |
Note 11 - Subsequent Events | Note 11 – Subsequent Events On May 13, 2016, Profire Energy, Inc. received a letter ("Notice") from The NASDAQ Stock Market LLC ("Nasdaq") notifying the Company that, because the closing bid price for its Common Stock has been below $1.00 per share for the prior 30 consecutive business days, it no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. Nasdaq Marketplace Rule 5550(a)(2) requires a minimum bid price of $1.00 per share (the "Minimum Bid Price Requirement"). Based on the closing bid price of the Company's Common Stock for the 30 consecutive business days prior to the date of Nasdaq's letter, the Company does not meet the Minimum Bid Price Requirement. The Notice has no immediate effect on the listing of the Common Stock on The Nasdaq Capital Market. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until November 9, 2016, to regain compliance with the Minimum Bid Price Requirement. If at any time before November 9, 2016, the closing bid price of the Common Stock is at least $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation stating that the Company has achieved compliance with the Minimum Bid Price Requirement. However, Nasdaq may, in its discretion, require the Company to satisfy the applicable Price-based Requirement for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance. As of June 8, 2016, the Company had completed 10 consecutive business days with a closing bid price above $1.00, however, Nasdaq, in their discretion, informed the Company that it had extended the Price-based Requirement term to 20 days. The Notice also provides that, if the Company does not regain compliance with the Minimum Bid Price Requirement by November 9, 2016, it may be eligible for additional time to regain compliance. To qualify for additional time, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period, by effecting a reverse split, if necessary. If the Company meets these requirements, it will be granted an additional compliance period of 180 calendar days to regain compliance with the Minimum Bid Price Requirement. If the Nasdaq staff determines that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible for such additional compliance period, Nasdaq will provide notice that the Company's Common Stock will be subject to delisting. The Company would have the right to appeal a determination to delist its Common Stock, and the Common Stock would remain listed on The Nasdaq Capital Market until the completion of the appeal process. The Company intends to resolve the situation and consider available options to regain compliance with the Minimum Bid Price Requirement and continued listing on The Nasdaq Capital Market. On May 26, 2016, announced that its Board of Directors had authorized a share repurchase program allowing the Company to repurchase up to $2,000,000 worth of the Company's common stock from time to time through May 25, 2017. Any purchases under the program will be made at the discretion of management. The size and timing of any purchases will depend on price, market and business conditions and other factors. Open market purchases will be conducted in accordance with applicable legal requirements. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares. On May 4, 2016, the Company issued a total of 59,953 restricted shares to one of its Independent Directors. The shares were issued in the settlement of previously granted and vested restricted stock units. |
Note 1 - Significant Accounti18
Note 1 - Significant Accounting Policies: Organization and Line of Business (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Organization and Line of Business | Organization and Line of Business 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. The Company provides products and services for burners and heaters for the oil and gas extraction industry in the Canadian and US markets. |
Note 1 - Significant Accounti19
Note 1 - Significant Accounting Policies: Reclassification (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Reclassification | Reclassification Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. |
Note 1 - Significant Accounti20
Note 1 - Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Use of 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. |
Note 1 - Significant Accounti21
Note 1 - Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. |
Note 1 - Significant Accounti22
Note 1 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Basic and Diluted Earnings Per Share | 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 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 equity awards of 315,791 and 71,015 included in the fully diluted earnings per share as of March 31, 2016 and 2015 respectively. Basic earnings per share for the years ended March 31, 2016 and 2015 are as follows: For the Years Ending March 31, 2016 2015 Net income applicable to common shareholders $ 34,744 $ 5,747,683 Weighted average shares outstanding 53,243,151 51,609,760 Weighted average fully diluted shares outstanding 53,558,942 51,680,775 Basic earnings per share $ 0.00 $ 0.11 Fully diluted earnings per share $ 0.00 $ 0.11 |
Note 1 - Significant Accounti23
Note 1 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the Company were translated to 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 0.7711 and 0.7888 were used to convert the CompanyÂ’s March 31, 2016 and 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7642 and 0.8808 for the years ended March 31, 2016 and 2015, 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 Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of StockholdersÂ’ Equity. |
Note 1 - Significant Accounti24
Note 1 - Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
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. |
Note 1 - Significant Accounti25
Note 1 - Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Cash and Cash Equivalents | 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, 2016 and 2015, cash and cash equivalents totaled $21,292,595 and $14,144,796 respectively. A small portion of these deposits were insured by the CompanyÂ’s banks and guaranteed by the FDIC and the CDIC. |
Note 1 - Significant Accounti26
Note 1 - Significant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Accounts Receivable | 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 $250,646 and $108,641 as of March 31, 2016 and 2015, respectively. |
Note 1 - Significant Accounti27
Note 1 - Significant Accounting Policies: Inventories (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Inventories | Inventories In accordance with ARB No. 43 “Inventory Pricing,” For the Years Ending March 31, 2016 2015 Raw materials $ 967,823 $ — Finished goods 10,316,857 11,951,108 Work in process — — Subtotal 11,284,680 11,951,108 Reserve for Obsolence (237,998) (184,573) Total $ 11,046,682 $ 11,766,535 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. |
Note 1 - Significant Accounti28
Note 1 - Significant Accounting Policies: Long-lived Assets (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Long-lived Assets | Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. 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. |
Note 1 - Significant Accounti29
Note 1 - Significant Accounting Policies: Other Intangible Assets & Goodwill (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Other Intangible Assets & Goodwill | Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, “Intangibles—Goodwill and Other”. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Company’s acquisition has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Goodwill Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 350, “Intangibles—Goodwill and Other” (“ASC 350”). Goodwill is tested for impairment at the reporting unit level. The Company’s two operating segments comprise the reporting unit for goodwill impairment testing purposes. |
Note 1 - Significant Accounti30
Note 1 - Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Revenue Recognition | 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. |
Note 1 - Significant Accounti31
Note 1 - Significant Accounting Policies: Cost of Sales (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
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. |
Note 1 - Significant Accounti32
Note 1 - Significant Accounting Policies: Advertising Costs (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Advertising Costs | Advertising Costs The Company classifies expenses for advertising as general and administrative expenses. The Company incurred advertising costs of $65,555 and $259,056 during the years ended March 31, 2016 and 2015, respectively. |
Note 1 - Significant Accounti33
Note 1 - Significant Accounting Policies: Stock-based Compensation (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
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. |
Note 1 - Significant Accounti34
Note 1 - Significant Accounting Policies: Concentration of Credit Risk (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
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 CompanyÂ’s four largest customers represented approximately 22% and 31% of total sales for the years ended March 31, 2016, and 2015, respectively. Sales to the CompanyÂ’s four largest customers represented approximately 22% of total sales. Sales to the CompanyÂ’s four largest customers represented approximately 33% of total sales. |
Note 1 - Significant Accounti35
Note 1 - Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Income Taxes | 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 78.6% and 33.1% for the years ended March 31, 2016 and 2015, 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. |
Note 1 - Significant Accounti36
Note 1 - Significant Accounting Policies: Research and Development (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Research and Development | Research and Development All costs associated with research and development are expensed when incurred. Costs incurred for research and development were $899,013 and $1,832,671 for the years ended March 31, 2016 and 2015, respectively. |
Note 1 - Significant Accounti37
Note 1 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
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 $251,351 and $498,994 during the years ended March 31, 2016 and 2015, respectively. |
Note 1 - Significant Accounti38
Note 1 - Significant Accounting Policies: Comprehensive Income (Loss) (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) 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. |
Note 1 - Significant Accounti39
Note 1 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Recent Accounting Pronouncements | 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 CompanyÂ’s financial position, results of operations or cash flows. |
Note 1 - Significant Accounti40
Note 1 - Significant Accounting Policies: Property and Equipment Useful Lives (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Policies | |
Property and Equipment Useful Lives | Property and Equipment Useful Lives 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: Estimated useful life Assets Current Prior Furniture and fixtures 7 Years 5 Years Machinery and equipment 7 Years 5 Years Buildings 30 Years 25 Years Vehicles 5 Years 3 Years Computers 3 Years 3 Years Software 2 Years N/A Beginning in fiscal year 2016, the Company revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type with a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended December 31, 2015. |
Note 1 - Significant Accounti41
Note 1 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the Years Ending March 31, 2016 2015 Net income applicable to common shareholders $ 34,744 $ 5,747,683 Weighted average shares outstanding 53,243,151 51,609,760 Weighted average fully diluted shares outstanding 53,558,942 51,680,775 Basic earnings per share $ 0.00 $ 0.11 Fully diluted earnings per share $ 0.00 $ 0.11 |
Note 1 - Significant Accounti42
Note 1 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Inventory, Current | For the Years Ending March 31, 2016 2015 Raw materials $ 967,823 $ — Finished goods 10,316,857 11,951,108 Work in process — — Subtotal 11,284,680 11,951,108 Reserve for Obsolence (237,998) (184,573) Total $ 11,046,682 $ 11,766,535 |
Note 1 - Significant Accounti43
Note 1 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule Of Estimated Useful Lives Of Assets | Estimated useful life Assets Current Prior Furniture and fixtures 7 Years 5 Years Machinery and equipment 7 Years 5 Years Buildings 30 Years 25 Years Vehicles 5 Years 3 Years Computers 3 Years 3 Years Software 2 Years N/A |
Note 2 - Property and Equipme44
Note 2 - Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | For the Years Ending March 31, 2016 2015 Office furniture and equipment $ 968,135 $ 937,274 Service and shop equipment 577,240 573,233 Vehicles 2,715,920 3,040,439 Land and buildings 6,733,415 6,746,597 Total property and equipment 10,994,710 11,297,543 Accumulated depreciation (2,761,799) (2,021,578) Net property and equipment $ 8,232,911 $ 9,275,965 |
Note 2 - Property and Equipme45
Note 2 - Property and Equipment: Schedule Of Depreciation Expense Property And Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule Of Depreciation Expense Property And Equipment | For the Years Ending March 31, 2016 2015 Cost of Goods Sold $ 474,539 $ 582,088 General and administrative 516,786 558,231 Total $ 991,325 $ 1,140,319 |
Note 4 - Asset Purchases_ Sched
Note 4 - Asset Purchases: Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination | Consideration paid: Cash paid $ 750,000 Common stock issued 1,000,000 Total purchase price 1,750,000 Consideration received: Inventory $ 54,577 Intangible assets Tundra Distribution Agreement 46,722 Patent 650,000 Other Intellectual Property 1,000 Total Intangible Assets 697,722 $ 752,299 Goodwill was recognized as a result of the acquisition as follows: Total consideration paid $ 1,750,000 Total consideration received (752,299) $ 997,701 |
Note 5 - Intangible Assets_ Sch
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets | For the Years Ending March 31, 2016 2015 Distribution agreements $ 40,702 $ 41,638 Less: Accumulated amortization (40,702) (27,757) Distribution agreements, net — 13,881 Patents, trademarks, copyrights, and domain names 567,109 580,138 Less: Accumulated amortization (37,809) — Total definite-lived intangible assets, net $ 529,300 $ 594,019 |
Note 5 - Intangible Assets_ S48
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Indefinite-Lived Intangible Assets | For the Years Ending March 31, 2016 2015 Goodwill $ 997,701 $ 997,701 |
Note 5 - Intangible Assets_ S49
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | For the Years Ending March 31, Year Amount 2017 $ 28,103 2018 28,103 2019 28,103 2020 28,103 2021 28,103 |
Note 6 - Provision for Income50
Note 6 - Provision for Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | For the Years Ending March 31, 2016 2015 United States statutory income tax rate 35.0% 35.0% Decrease in rate on income subject to Canadian income tax rates — -1.5% Decrease in rate resulting from non-deductible expenses and deductible adjustments 43.6% -0.4% 43.6% -1.9% Effective income tax rate 78.6% 33.1% For the Years Ending March 31, Components of Income Tax Expense 2016 2015 Federal U.S. Income Taxes -Current $ 363,768 $ 1,187,957 -Deferred (89,337) 442,095 Foreign (Canadian and Provincial) Income Taxes (240,372) 998,280 State Income Taxes -Current 93,768 215,572 Total Income Tax Expense $ 127,828 $ 2,843,905 |
Note 7 - Segment Information_ S
Note 7 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | For the Years Ending March 31, Sales 2016 2015 Canada $ 6,010,042 $ 14,769,787 United States 21,062,404 36,409,605 Total $ 27,072,446 $ 51,179,392 For the Years Ending March 31, Long-lived assets 2016 2015 Canada $ 1,067,346 $ 1,231,434 United States 7,165,565 8,044,531 Total $ 8,232,911 $ 9,275,965 |
Note 8 - Common Stock Purchas52
Note 8 - Common Stock Purchase Options: Schedule of Share-based Compensation, Activity (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Activity | Wtd. Avg. Options Exercise Price Outstanding, March 31, 2014 3,074,850 1.47 Granted 133,900 4.03 Exercised (596,635) 0.55 Forfeited/Expired (498,615) 1.39 Outstanding, March 31, 2015 2,113,500 1.90 Exercisable, March 31, 2015 907,000 2.27 Wtd. Avg. Options Exercise Price Outstanding, March 31, 2015 2,113,500 1.90 Granted - - Exercised - - Forfeited/Expired (552,300) 1.54 Outstanding, March 31, 2016 1,561,200 2.02 Exercisable, March 31, 2016 1,050,800 2.12 |
Note 8 - Common Stock Purchas53
Note 8 - Common Stock Purchase Options: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable | The following table summarizes information about the stock options as of March 31, 2015: Total Outstanding and Exercisable For the Year Ending March 31, 2015 Strike Price Outstanding Options (1 share/option) Avg. Remaining Life (Yrs) Exercisable Shares Wtd. Avg. Exercise Price $ 0.30 110,000 1.88 40,000 0.30 $ 1.37 1,118,000 4.08 284,000 1.37 $ 1.75 475,000 2.93 283,000 1.75 $ 3.85 200,000 4.61 200,000 3.85 $ 3.95 100,000 4.86 100,000 3.95 $ 4.03 110,500 5.09 - 4.03 2,113,500 4.02 907,000 2.27 The following table summarizes information about the stock options as of March 31, 2016: Total Outstanding and Exercisable For the Year Ending March 31, 2016 Strike Price Outstanding Options (1 share/option) Avg. Remaining Life (Yrs) Exercisable Shares Wtd. Avg. Exercise Price $ 0.30 110,000 0.88 110,000 0.30 $ 1.37 711,500 3.13 345,500 1.37 $ 1.75 346,500 1.93 276,500 1.75 $ 3.85 200,000 3.61 200,000 3.85 $ 3.95 100,000 3.86 100,000 3.95 $ 4.03 93,200 4.09 18,800 4.03 1,561,200 2.92 1,050,800 2.12 |
Note 8 - Common Stock Purchas54
Note 8 - Common Stock Purchase Options: Schedule of Nonvested Share Activity (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Nonvested Share Activity | Wtd. Avg. Grant Date Non-vested options Options Fair Value Non-vested at March 31, 2015 1,206,500 1.58 Stock options issued during the year - - Stock options canceled (552,300) 1.54 Vested during the year ended March 31, 2016 (370,600) 1.40 Cancellation of previously vested stock options 226,800 1.54 Non-vested at March 31, 2016 510,400 1.81 |
Note 8 - Common Stock Purchas55
Note 8 - Common Stock Purchase Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest | Wtd. Avg. Restricted Grant Date Non-vested restricted stock Stock Fair Value Non-vested at March 31, 2015 171,666 4.03 Restricted stock issued during the year - - Restricted Stock canceled (40,000) 4.03 Vested during the year ended March 31, 2016 (34,332) 4.03 Non-vested at March 31, 2016 97,334 4.03 Wtd. Avg. Restricted Grant Date Non-vested restricted stock units Stock Units Fair Value Non-vested at March 31, 2015 106,907 3.94 Restricted stock units issued during the year 528,334 1.05 Restricted stock units canceled (76,999) 1.68 Vested, not settled during the period ended March 31, 2016 (199,908) 1.68 Vested & settled during the year ended March 31, 2016 (53,001) 1.62 Non-vested at March 31, 2016 305,333 1.38 |
Note 9 - Commitments and Cont56
Note 9 - Commitments and Contingencies: Schedule of Future Minimum Lease Payments for Operating Leases (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Tables/Schedules | |
Schedule of Future Minimum Lease Payments for Operating Leases | Years Ending March 31, Operating Leases 2017 $ 35,724 2018 – Thereafter – $ 35,724 |
Note 1 - Significant Accounti57
Note 1 - Significant Accounting Policies: Organization and Line of Business (Details) | 12 Months Ended |
Mar. 31, 2016 | |
Details | |
Entity Incorporation, Date of Incorporation | May 5, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 1 - Significant Accounti58
Note 1 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Net income applicable to common shareholders | $ 34,744 | $ 5,747,683 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,243,151 | 51,609,760 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,558,942 | 51,680,775 |
BASIC EARNINGS PER SHARE | $ 0 | $ 0.11 |
FULLY DILUTED EARNINGS PER SHARE | $ 0 | $ 0.11 |
Note 1 - Significant Accounti59
Note 1 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Details) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Foreign Currency Exchange Rate, Translation | 0.7711 | 0.7888 |
Weighted Average Exchange Rate | 0.7642 | 0.8808 |
Note 1 - Significant Accounti60
Note 1 - Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Details | |||
Cash and cash equivalents | $ 21,292,595 | $ 14,144,796 | $ 4,456,674 |
Note 1 - Significant Accounti61
Note 1 - Significant Accounting Policies: Accounts Receivable (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Allowance for Doubtful Accounts Receivable | $ 250,646 | $ 108,641 |
Note 1 - Significant Accounti62
Note 1 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Inventory, Raw Materials, Gross | $ 967,823 | |
Inventory, Finished Goods, Gross | 10,316,857 | $ 11,951,108 |
Subtotal | 11,284,680 | 11,951,108 |
Reserves for obsolescence | (237,998) | (184,573) |
Inventories | $ 11,046,682 | $ 11,766,535 |
Note 1 - Significant Accounti63
Note 1 - Significant Accounting Policies: Advertising Costs (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Advertising Expense | $ 65,555 | $ 259,056 |
Note 1 - Significant Accounti64
Note 1 - Significant Accounting Policies: Concentration of Credit Risk (Details) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Concentration Risk, Customer | Sales to the Company’s four largest customers represented approximately 22% of total sales. | Sales to the Company’s four largest customers represented approximately 33% of total sales. |
Note 1 - Significant Accounti65
Note 1 - Significant Accounting Policies: Research and Development (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Research and development | $ 899,013 | $ 1,832,671 |
Note 1 - Significant Accounti66
Note 1 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Shipping, Handling and Transportation Costs | $ 251,351 | $ 498,994 |
Note 1 - Significant Accounti67
Note 1 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Details) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Furniture and Fixtures | ||
Property, Plant and Equipment, Useful Life | 7 years | 5 years |
Machinery and Equipment | ||
Property, Plant and Equipment, Useful Life | 7 years | 5 years |
Building | ||
Property, Plant and Equipment, Useful Life | 30 years | 25 years |
Vehicles | ||
Property, Plant and Equipment, Useful Life | 5 years | 3 years |
Computer Equipment | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Software and Software Development Costs | ||
Property, Plant and Equipment, Useful Life | 2 years |
Note 2 - Property and Equipme68
Note 2 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Office furniture and equipment | $ 968,135 | $ 937,274 |
Service and shop equipment | 577,240 | 573,233 |
Vehicles | 2,715,920 | 3,040,439 |
Land and buildings | 6,733,415 | 6,746,597 |
Total property and equipment | 10,994,710 | 11,297,543 |
Accumulated depreciation | (2,761,799) | (2,021,578) |
Net property and equipment | $ 8,232,911 | $ 9,275,965 |
Note 2 - Property and Equipme69
Note 2 - Property and Equipment: Schedule Of Depreciation Expense Property And Equipment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Cost of goods sold | $ 474,539 | $ 582,088 |
General and administrative | 516,786 | 558,231 |
Total Depreciation Expense | $ 991,325 | $ 1,140,319 |
Note 3 - Stockholders' Equity (
Note 3 - Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | |
Preferred stock par value | $ 0.001 | $ 0.001 |
Common stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares outstanding | 53,199,136 | 53,256,296 |
Stock issuance | $ 16,424,688 | |
Common stock | ||
Stock issuance - shares | 4,500,000 | |
Stock issuance | $ 4,500 |
Note 4 - Asset Purchases (Detai
Note 4 - Asset Purchases (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Cash paid for asset acquisition | $ 750,000 | |
Stock Issued During Period, Shares, Acquisitions | 265,958 | |
Stock issued for acquisition | $ 1,000,000 |
Note 4 - Asset Purchases_ Sch72
Note 4 - Asset Purchases: Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | |
Cash paid for asset acquisition | $ 750,000 | |
Stock issued for acquisition | 1,000,000 | |
Total Purchase Price | 1,750,000 | |
Total Consideration Received | 752,299 | |
Goodwill | 997,701 | $ 997,701 |
Inventory | ||
Total Consideration Received | 54,577 | |
Tundra Distribution Agreement | ||
Total Consideration Received | 46,722 | |
Patents | ||
Total Consideration Received | 650,000 | |
Intellectual Property | ||
Total Consideration Received | $ 1,000 |
Note 5 - Intangible Assets_ S73
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Distribution Agreements, Gross | $ 40,702 | $ 41,638 |
Accumulated Amortization of Other Deferred Costs | (40,702) | (27,757) |
Distribution Agreements, Net | 13,881 | |
Other Finite-Lived Intangible Assets, Gross | 567,109 | 580,138 |
Intangible assets, net of accumulated amortization | $ 529,300 | $ 594,019 |
Note 5 - Intangible Assets_ S74
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Goodwill | $ 997,701 | $ 997,701 |
Note 5 - Intangible Assets_ S75
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) | Mar. 31, 2016USD ($) |
Details | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 28,103 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 28,103 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 28,103 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 28,103 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 28,103 |
Note 6 - Provision for Income76
Note 6 - Provision for Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
United States statutory income tax rate | 35.00% | 35.00% |
Decrease in rate on income subject to Canadian income tax rates | $ (0.0150) | |
Increase (decrease) in rate resulting from non-deductible expenses and deductible adjustments | $ 0.4360 | $ (0.0040) |
Effective income tax rate | 78.60% | 33.10% |
-Current | $ 363,768 | $ 1,187,957 |
-Deferred | (89,337) | 442,095 |
Foreign (Canadian and Provincial) Income Taxes | (240,372) | 998,280 |
-Current | 93,768 | 215,572 |
INCOME TAX EXPENSE | $ 127,828 | $ 2,843,905 |
Note 6 - Provision for Income77
Note 6 - Provision for Income Taxes (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Details | ||
Deferred Tax Liability Driven By Depreciation Differences | $ 602,691 | $ 631,353 |
Deferred Tax Asset Related To Stock Comp Expense | $ 549,270 | $ 501,920 |
Note 7 - Segment Information_78
Note 7 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Total Revenues | $ 27,072,446 | $ 51,179,392 |
PROPERTY AND EQUIPMENT, net | 8,232,911 | 9,275,965 |
CANADA | ||
Total Revenues | 6,010,042 | 14,769,787 |
PROPERTY AND EQUIPMENT, net | 1,067,346 | 1,231,434 |
UNITED STATES | ||
Total Revenues | 21,062,404 | 36,409,605 |
PROPERTY AND EQUIPMENT, net | $ 7,165,565 | $ 8,044,531 |
Note 8 - Common Stock Purchas79
Note 8 - Common Stock Purchase Options: Schedule of Share-based Compensation, Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,561,200 | 2,113,500 | 3,074,850 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Grant Date Fair Value | $ 2.02 | $ 1.90 | $ 1.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 133,900 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.03 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercised In Period Weighted Average Grant Date Fair Value | $ 0.55 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (552,300) | (498,615) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 1.54 | $ 1.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,050,800 | 907,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Grant Date Fair Value | $ 2.12 | $ 2.27 | |
Common stock | |||
Exercised options - shares | (57,160) | (596,635) |
Note 8 - Common Stock Purchas80
Note 8 - Common Stock Purchase Options: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,561,200 | 2,113,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 11 months 1 day | 4 years 7 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1,050,800 | 907,000 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 2.12 | $ 2.27 |
Exercisable Options 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 110,000 | 40,000 |
Exercisable Options 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 345,500 | 284,000 |
Exercisable Options 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 276,500 | 283,000 |
Exercisable Options 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 200,000 | 200,000 |
Exercisable Options 5 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 100,000 | 100,000 |
Exercisable Options 6 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 18,800 | |
Outstanding Options 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 110,000 | 110,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 10 months 17 days | 1 year 10 months 17 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 0.30 | $ 0.30 |
Outstanding Options 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 711,500 | 1,118,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 1 month 17 days | 4 years 29 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.37 | $ 1.37 |
Outstanding Options 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 346,500 | 475,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 11 months 5 days | 2 years 11 months 5 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.75 | $ 1.75 |
Outstanding Options 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 200,000 | 200,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 7 months 10 days | 4 years 7 months 10 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 3.85 | $ 3.85 |
Outstanding Options 5 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 100,000 | 100,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 10 months 10 days | 4 years 10 months 10 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 3.95 | $ 3.95 |
Outstanding Options 6 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 93,200 | 110,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 1 month 2 days | 5 years 1 month 2 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding and Exercisable Weighted Average Exercise Price | $ 4.03 | $ 4.03 |
Note 8 - Common Stock Purchas81
Note 8 - Common Stock Purchase Options: Schedule of Nonvested Share Activity (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 510,400 | 1,206,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 1.81 | $ 1.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 133,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (552,300) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 1.54 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (370,600) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 1.40 | |
Sharebased Compensation Arrangement by Sharebased Payment Award Option, Cancellation of Previously vested stock options | 226,800 | |
Sharebased Compensation Arrangement by Sharebased Payment Award Options Vested Weighted Average Grants Date Fair Value, Cancellation of Previously vested stock options | $ 1.54 |
Note 8 - Common Stock Purchas82
Note 8 - Common Stock Purchase Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Details | ||
Nonvested Restricted Stock options | 97,334 | 171,666 |
Nonvested Restricted Stock options, Weighted average grant date fair value | $ 4.03 | $ 4.03 |
Nonvested Restricted Stock options canceled during the period | (40,000) | |
Nonvested Restricted Stock options canceled during the period, Weighted average grant date fair value | $ 4.03 | |
Nonvested Restricted Stock options vested during the period | (34,332) | |
Nonvested Restricted Stock options vested during the period, Weighted average grant date fair value | $ 4.03 | |
Nonvested Restricted Stock units | 305,333 | 106,907 |
Nonvested Restricted Stock units, Weighted average grant date fair value | $ 1.38 | $ 3.94 |
Nonvested Restricted Stock units issued during the period | 528,334 | |
Nonvested Restricted Stock units issued during the period, Weighted average grant date fair value | $ 1.05 | |
Nonvested Restricted Stock units canceled during the period | (76,999) | |
Nonvested Restricted Stock units canceled during the period, Weighted average grant date fair value | $ 1.68 | |
Nonvested Restricted Stock units vested, not settled during the period | (199,908) | |
Nonvested Restricted Stock units vested, not settled during the period, Weighted average grant date fair value | $ 1.68 | |
Vested and Settled Restricted Stock units | (53,001) | |
Vested and Settled Restricted Stock units, Weighted average grant date fair value | $ 1.62 |
Note 9 - Commitments and Cont83
Note 9 - Commitments and Contingencies: Schedule of Future Minimum Lease Payments for Operating Leases (Details) | Mar. 31, 2016USD ($) |
Details | |
Operating Leases, Future Minimum Payments, Next Rolling Twelve Months | $ 35,724 |
Operating Leases, Future Minimum Payments Due | $ 35,724 |