Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 14, 2018 | Sep. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AeroGrow International, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 34,328,036 | ||
Entity Public Float | $ 17,256,954 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,316,644 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 7,482 | $ 8,804 |
Restricted cash | 15 | 15 |
Accounts receivable, net of allowance for doubtful accounts of $39 and $20 at March 31, 2018 and 2017, respectively | 4,296 | 2,484 |
Other receivables | 281 | 258 |
Inventory, net | 5,047 | 2,921 |
Prepaid expenses and other | 493 | 511 |
Total current assets | 17,614 | 14,993 |
Property and equipment and intangible assets, net of accumulated depreciation of $4,386 and $4,020 at March 31, 2018 and 2017, respectively | 514 | 415 |
Deposits | 39 | 106 |
Total assets | 18,167 | 15,514 |
Current liabilities | ||
Accounts payable | 2,748 | 1,853 |
Accrued expenses | 2,231 | 1,520 |
Customer deposits | 163 | 106 |
Debt associated with sale of intellectual property | 80 | 117 |
Total current liabilities | 5,222 | 3,596 |
Long term liabilities | ||
Capital lease liability | 12 | 19 |
Other liability | 190 | 0 |
Total liabilities | 5,424 | 3,615 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Preferred stock, $.001 par value, 20,000,000 shares authorized, 0 issued and outstanding at March 31, 2018 and 2017, respectively | 0 | 0 |
Common stock, $.001 par value, 750,000,000 shares authorized, 34,328,036 and 33,477,287 shares issued and outstanding at March 31, 2018 and 2017, respectively | 34 | 33 |
Additional paid-in capital | 140,817 | 138,757 |
Stock dividend to be distributed | 0 | 2,595 |
Accumulated deficit | (128,108) | (129,486) |
Total stockholders’ equity | 12,743 | 11,899 |
Total liabilities and stockholders’ equity | $ 18,167 | $ 15,514 |
BALANCE SHEETS (Parentheticals)
BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Allowance for doubtful accounts (in Dollars) | $ 39 | $ 20 |
Property and equipment, accumulated depreciation (in Dollars) | $ 4,386 | $ 4,020 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 34,328,036 | 33,477,287 |
Common stock, shares outstanding | 34,328,036 | 33,477,287 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net revenue | $ 32,298 | $ 23,609 |
Cost of revenue | 21,598 | 15,044 |
Gross profit | 10,700 | 8,565 |
Operating expenses | ||
Research and development | 558 | 392 |
Sales and marketing | 8,071 | 6,125 |
General and administrative | 2,519 | 2,394 |
Total operating expenses | 11,148 | 8,911 |
Loss from operations | (448) | (346) |
Other income (expense), net | ||
Fair value changes in derivative warrant liability | 0 | (2,108) |
Interest expense – related party | (21) | (108) |
Other income (expense), net | 27 | (36) |
Total other income (expense), net | 6 | (2,252) |
Net loss | (442) | (2,598) |
Change in fair value of stock to be distributed for Scotts Miracle-Gro transactions | 534 | (2,167) |
Net income (loss) attributable to common shareholders | $ 92 | $ (4,765) |
Net loss per common share, basic and diluted (in Dollars per share) | $ 0 | $ (0.31) |
Weighted average number of common shares outstanding, basic (in Shares) | 31,128 | 15,547 |
Weighted average number of common shares outstanding, diluted (in Shares) | 31,212 | 15,547 |
STATEMENT OF CHANGES IN STOCKHO
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock Dividend to be Distributed [Member] | Retained Earnings [Member] | Total |
Balance at Mar. 31, 2016 | $ 3 | $ 7 | $ 84,129 | $ 2,391 | $ (84,329) | $ 2,201 |
Balance (in Shares) at Mar. 31, 2016 | 2,649,007 | 7,499,966 | ||||
Common stock dividend distribution issued in connection with Scotts Miracle-Gro agreement | $ 1 | 2,146 | (1,723) | 1,119 | 1,543 | |
Common stock dividend distribution issued in connection with Scotts Miracle-Gro agreement (in Shares) | 1,199,656 | |||||
Conversion of preferred stock to common stock and exercise of warrant | $ (3) | $ 24 | 50,541 | 50,562 | ||
Conversion of preferred stock to common stock and exercise of warrant (in Shares) | (2,649,007) | 24,296,526 | ||||
Exercise of stock options | $ 1 | 786 | $ 787 | |||
Exercise of stock options (in Shares) | 481,139 | 481,000 | ||||
Stock options and restricted stock issued under equity compensation plans | 152 | $ 152 | ||||
Stock dividend to be distributed | 1,003 | 1,927 | (3,170) | (240) | ||
Dividend paid | (40,508) | (40,508) | ||||
Net (loss) | (2,598) | (2,598) | ||||
Balance at Mar. 31, 2017 | $ 33 | 138,757 | 2,595 | (129,486) | 11,899 | |
Balance (in Shares) at Mar. 31, 2017 | 33,477,287 | |||||
Common stock dividend distribution issued in connection with Scotts Miracle-Gro agreement | $ 1 | 2,060 | (2,061) | 1,286 | $ 1,286 | |
Common stock dividend distribution issued in connection with Scotts Miracle-Gro agreement (in Shares) | 851,749 | |||||
Exercise of stock options (in Shares) | 0 | |||||
Stock dividend to be distributed | $ (534) | 534 | ||||
Net (loss) | (442) | $ (442) | ||||
Balance at Mar. 31, 2018 | $ 34 | $ 140,817 | $ (128,108) | $ 12,743 | ||
Balance (in Shares) at Mar. 31, 2018 | 34,329,036 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net (loss) | $ (442) | $ (2,598) |
Adjustments to reconcile net (loss) to cash and cash equivalents used by operations: | ||
Issuance of stock options under equity compensation plans | 0 | 152 |
Depreciation and amortization expense | 346 | 368 |
Bad debt expense | 69 | 5 |
Inventory allowance | (296) | 76 |
Fair value remeasurement of derivative warrant liability | 0 | 2,108 |
Accretion of debt associated with sale of intellectual property | (37) | (43) |
Loss on write-off of assets | 19 | 0 |
SMG intellectual property royalty and branding license | 0 | 1,241 |
Change in operating assets and liabilities: | ||
(Increase) in accounts receivable | (1,881) | (912) |
(Increase) in other receivable | (23) | (26) |
(Increase) decrease in inventory | (1,830) | 152 |
Decrease (increase) in prepaid expenses and other current assets | 18 | (315) |
Decrease in deposits | 67 | 50 |
Increase(decrease) in accounts payable | 2,181 | (115) |
Increase in accrued expenses | 901 | 555 |
Increase in accrued interest – related party | 108 | |
Increase (decrease) increase in customer deposits | 57 | (246) |
Net cash and cash equivalents provided (used) by operating activities | (851) | 560 |
Cash flows from investing activities: | ||
Purchases of equipment | (464) | (138) |
Net cash and cash equivalents (used) by investing activities | (464) | (138) |
Cash flows from financing activities: | ||
Proceeds from notes payable – related party | 1,000 | 5,250 |
Repayments of notes payable – related party | (1,000) | (6,354) |
Repayments of capital lease | (7) | (4) |
Proceeds for the exercise of warrants | 0 | 47,810 |
Payments of dividend distribution | 0 | (40,508) |
Proceeds from exercise of stock options | 0 | 787 |
Net cash (used) provided by financing activities | (7) | 6,981 |
Net (decrease) increase in cash and cash equivalents | (1,322) | 7,403 |
Cash and cash equivalents and restricted cash, beginning of period | 8,819 | 1,416 |
Cash and cash equivalents and restricted cash, end of period | 7,497 | 8,819 |
Interest paid in cash | 20 | 104 |
Income taxes paid | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment acquired through capital lease | 0 | 23 |
Decrease in liability due to issuance of stock to SMG on notes payable – related party | 0 | 297 |
Fair value of common stock issued for payment of interest on notes payable-related party | 0 | 480 |
Change in fair value of common stock issued for payment of interest on notes payable-related party at issuance | 0 | 183 |
Change in fair value of SMG intellectual property royalty, branding license and interest on notes payable-related party | 485 | (2,774) |
Change in fair value of stock dividends for common stock issued on convertible preferred stock | 0 | 1,003 |
Change in fair value of stock dividends accrued on convertible preferred stock | 49 | (579) |
Decrease in liability due to issuance of stock to SMG for intellectual property and branding license | $ 1,286 | $ 1,006 |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1 – Description of the Business and Summary of Significant Accounting Policies Organization and Description of the Business AeroGrow International, Inc. (the “Company,” “we,” “AeroGrow,” or “our “) was incorporated in the State of Nevada on March 25, 2002. The Company’s principal business is developing, marketing, and distributing advanced indoor aeroponic garden systems designed and priced to appeal to the consumer gardening, cooking and small indoor appliance markets worldwide. The Company manufactures, distributes and markets ten different models of its AeroGarden systems in multiple colors, as well as over 40 varieties of seed pod kits and a full line of accessory products through multiple channels including retail distribution (brick and mortar and online), catalogue and direct-to-consumer sales in the United States and Canada. Liquidity and Basis of Presentation As shown in the accompanying financial statements, we have incurred net losses of $442,000 and $2.6 million for the years ended March 31, 2018 and 2017, respectively, and have an accumulated deficit of $128.1 million as of March 31, 2018. As more fully discussed in the Liquidity and Capital Resources section of Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, the Company has developed sources of funding that management believes are sufficient to support the Company’s operating plan for one year from the date these financials were filed. The Company’s operating plan is predicated on a variety of assumptions including, but not limited to, the level of customer and consumer demand, the effect of cost reduction programs, and the state of the general economic environment in which the Company operates. There can be no assurance that these assumptions will prove to be accurate in all material respects, or that the Company will be able to successfully execute its operating plan. We may need to seek additional debt or equity capital during the fiscal year ending March 31, 2019 to address the seasonal nature of our working capital needs, and to enable us to increase the scale of our business. Sources of funding to meet prospective cash requirements include the Company’s existing cash balances, cash flow from operations and financing from Scotts Miracle-Gro. There can be no assurance we will be able to raise this additional capital. As part of our efforts to seek additional funding of our operations, in April 2013, we entered into a strategic alliance with SMG Growing Media, Inc., a wholly owned subsidiary of Scotts Miracle-Gro Company, a worldwide marketer of branded consumer lawn and garden products (“Scotts Miracle-Gro”). As part of the strategic alliance, in April 2013 Scotts Miracle-Gro (i) acquired 2,649,007 shares of the Company’s Series B Convertible Preferred Stock and a warrant to purchase shares of the Company’s common stock for an aggregate purchase price of $4.0 million; and (ii) purchased all of the Company’s intellectual property associated with hydroponic products, other than the AeroGrow and AeroGarden trademarks, for $500,000. In November 2016, Scotts Miracle-Gro exercised the warrant and converted its Series B Convertible Preferred Stock into shares of common stock, thereby bringing Scotts Miracle-Gro’s ownership of our common stock to approximately 80%. In every year since Fiscal Year 2014, Scotts Miracle-Gro has provided term loan funding to enable us to meet prospective cash flow requirements to fund inventory demands in advance of our peak selling season. For Fiscal Year 2018, we entered into a $2.0 million Term Loan with Scotts Miracle-Gro on September 13, 2017. On December 29, 2017, the outstanding balance of the Term Loan and accrued interest were repaid in full. For further information on the debt arrangement with Scotts Miracle-Gro, please see Note 2 “Notes Payable and Long Term Debt” and the strategic alliance with Scotts Miracle-Gro, please see Note 3 “Scotts Miracle-Gro Transactions – Convertible Preferred Stock, Warrants and Other Transactions” to our financial statements. Additionally, in the prior year on November 29, 2016, Scotts Miracle-Gro fully exercised its warrant option to purchase 80% of the Company’s common stock. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that a change in the Company’s estimates will occur in the near term and such change could be material as information becomes available. Our estimates include the derivative warrant liability, warranty and return reserves, inventory obsolescence reserves and allowances for sales and cooperative advertising. Net Income (Loss) per Share of Common Stock The Company computes net income (loss) per share of common stock in accordance with Accounting Standards Codification (“ASC”) 260. ASC 260 requires companies with complex capital structures to present basic and diluted Earnings per Share (“EPS”). Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average shares of common stock outstanding for the period. Diluted EPS is similar to basic EPS, but presents the dilutive effect on a per share basis of potential common stock (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Securities that were excluded from the computation of EPS because to do so would have been anti-dilutive were employee stock options to purchase 93,000 shares of common stock for the period ended March 31, 2018 and employee stock options and warrants to purchase 488,000 shares for the period ended March 31, 2017. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at March 31, 2018 and 2017. Restricted Cash The Company has secured activity related to its corporate credit card purchase account with a restricted money market account. The balance in this account as of March 31, 2018 and March 31, 2017 was $15,000. Concentrations of Risk ASC 825-10-50-20 requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash deposits. The amounts on deposit with two financial institutions exceeded the $250,000 federally insured limit as of March 31, 2018. However, management believes that the financial institution is financially sound and the risk of loss is minimal. Customers and Accounts Receivable: For the year ended March 31, 2018, the Company had one customer, Amazon.com, who represented 30.2%, of the Company’s net revenue. For the year ended March 31, 2017, the Company had one customer, Amazon.com, who represented 40.8%, of the Company’s net revenue. As of March 31, 2018, the Company had two customers, Canadian Tire Corporation and Amazon.com, which represented 27.3% and 22.3%, respectively of outstanding accounts receivable. As of March 31, 2017, the Company had three customers, Amazon.com, Amazon.uk, and Amazon.ca, which represented 33.9%, 14.3% and 11.0%, respectively, of outstanding accounts receivable. Management believes that all receivables from these customers are collectible. Suppliers: For the year ended March 31, 2018, the Company purchased inventories and other inventory related items from one supplier totaling $14.7 million representing 68.0% of cost of revenue. For the year ended March 31, 2017, the Company purchased inventories and other inventory related items from one supplier totaling $8.7 million representing 57.6% of cost of revenue. The Company’s primary contract manufacturers are located in China. As a result, the Company may be subject to political, currency, regulatory, shipping, labor and weather/natural disaster risks. Although the Company believes alternate sources of manufacturing could be obtained, these risks and any potential loss of supply could have an adverse impact on operations. Fair Value of Financial Instruments The Company follows the guidance in ASC 820, Fair Value Measurements and Disclosures Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, i.e., exit price, in an orderly transaction between market participants. ASC 820 also provides a hierarchy for determining fair value, which emphasizes the use of observable market data whenever available. The three broad levels defined by the hierarchy are as follows, with the highest priority given to Level 1 as these are the most reliable, and the lowest priority given to Level 3. The three levels of the fair value hierarchy are described below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, including model-derived valuations. Level 3: Unobservable inputs that are supported by little or no market activity. The carrying value of financial instruments, including cash, receivables, accounts payable and accrued expenses, approximates their fair value at March 31, 2018 and March 31, 2017 due to the relatively short-term nature of these instruments. The Company’s intellectual property liability carrying value was determined by Level 3 inputs. As discussed below in Notes 2 and 3, this liability was incurred in conjunction with the Company’s strategic alliance with Scotts Miracle-Gro. As of March 31, 2018 and March 31, 2017, the fair value of the Company’s sale of intellectual property liability was estimated using the discounted cash flow method, which is based on expected future cash flows, discounted to present value using a discount rate of 15%. Historically, the Company has also had a note payable from Scotts Miracle-Gro that is also valued using the discounted cash flow method. The Company borrowed a total of $1.0 million from Scotts Miracle-Gro from two $500,000 advances in October 2017, but repaid the principal and interest in full on December 29, 2017. The table below summarizes the fair value and carry value of each Level 3 category liability: March 31, 2018 March 31, 2017 Fair Value Carry Value Fair Value Carry Value (in thousands) Liabilities Sale of intellectual property liability 65 80 90 117 Total $ 65 $ 80 $ 90 $ 117 The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the periods ended March 31, 2018 and March 31, 2017. (in thousands) Derivative warrant liability Notes payable-related party Sale of intellectual property liability Balance, March 31, 2016 $ 644 $ 1,277 $ 117 Revaluations prior to exercise 2,108 - - Exercise of derivative warrant liability (2,752 ) - - Proceeds notes payable-related party - 5,250 - Payment of notes payable-related party - (6,354 ) - Value of common stock issued for interest on notes payable-related party - (173 ) - Amortization of intellectual property - - (27 ) Balance, March 31, 2017 $ - $ - $ 90 Revaluations prior to exercise - - - Exercise of derivative warrant liability - - - Proceeds notes payable-related party - - - Payment of notes payable-related party - - - Value of common stock issued for interest on notes payable-related party - - - Amortization of intellectual property - - (25 ) Balance, March 31, 2018 $ - $ - $ 65 Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation for financial accounting purposes is computed using the straight-line method over the estimated lives of the respective assets. Office equipment and computer hardware are depreciated over five years. Tooling is depreciated over three years. Leasehold improvements are being amortized over the life of the lease. Property and equipment consist of the following: March 31, March 31, 2018 2017 (in thousands) Manufacturing equipment and tooling $ 3,797 $ 3,349 Computer equipment and software 626 612 Leasehold improvements 116 116 Other equipment and intangible assets 358 358 4,897 4,435 Less: accumulated depreciation (4,385 ) (4,020 ) Property and equipment, net $ 512 $ 415 Depreciation expense for the years ended March 31, 2018 and 2017, was $346,000, and $368,000, respectively. Inventory Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or net realizable value. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. March 31, March 31, 2018 2017 (in thousands) Finished goods $ 4,117 $ 2,274 Raw materials 930 647 $ 5,047 $ 2,921 The Company determines an inventory obsolescence reserve based on management’s historical experience and establishes reserves against inventory according to the age of the product. As of March 31, 2018 and 2017, the Company had reserved $66,000 and $362,000, respectively, for inventory obsolescence. Accounts Receivable and Allowance for Doubtful Accounts The Company sells its products to retailers and direct-to-consumer. Direct-to-consumer transactions are primarily paid by credit card. Retailer sales terms vary by customer, but are generally net 30 days to net 60 days. Accounts receivable are reported at net realizable value and net of the allowance for doubtful accounts. The Company uses the allowance method to account for uncollectible accounts receivable. The Company’s allowance estimate is based on a review of the current status of trade accounts receivable, which resulted in an allowance of $39,000 and $20,000 at March 31, 2018 and March 31, 2017, respectively. Other Receivables In conjunction with the Company’s processing of credit card transactions for its direct-to-consumer sales activities and as security with respect to the Company’s performance for required credit card refunds and charge backs, the Company is required to maintain a cash reserve with Vanity, the Company’s credit card processor. This reserve is equal to 5% of the credit card sales processed during the previous six months. As of March 31, 2018 and March 31, 2017, the balance in this reserve account was $281,000 and $258,000, respectively. Advertising and Production Costs The Company expenses all production costs related to advertising, including, print, television, and radio advertisements when the advertisement has been broadcast or otherwise distributed. In contrast, the Company records media and marketing costs related to its direct-to-consumer advertisements, inclusive of postage and printing costs incurred in conjunction with mailings of direct response catalogues, and related direct response advertising costs, in accordance ASC 340-20 Capitalized Advertising Costs. As the Company has re-entered the retail distribution channel, the Company has expanded its advertising to online gateway and portal advertising, as well as placement in third party catalogues. Advertising expenses for the years ended March 31, 2018 and March 31, 2017, were as follows: Fiscal Year Ended March 31, 2018 2017 (in thousands) Direct-to-consumer $ 579 $ 424 Retail 3,412 2,533 Other 759 706 Total advertising expense $ 4,750 $ 3,663 As of March 31, 2018 and March 31, 2017, the Company had deferred $14,000 and $24,000, respectively, related to such media and advertising costs, which include the catalogue cost described above and commercial production costs. The costs are included in the prepaid expenses and other line of the balance sheet. Research and Development Research, development, and engineering costs are expensed as incurred. Research, development, and engineering expenses primarily include payroll and headcount related costs, contractor fees, infrastructure costs, and administrative expenses directly related to research and development support. Stock-Based Compensation The Company uses the Black-Scholes option valuation model to estimate the fair value of stock option awards. For the years ended March 31, 2018 and March 31, 2017, equity compensation in the form of stock options and grants of restricted stock that vested totaled zero and $152,000, respectively, and is included in the accompanying statements of operations in the following categories: Years ended March 31, 2018 March 31, 2017 (in thousands) General and administrative $ - $ 27 Sales and marketing - 125 Total $ - $ 152 Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at the end of each period, based on enacted laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Any liability for actual taxes to taxing authorities is recorded as income tax liability. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against such assets where management is unable to conclude that it is “more likely than not” that the value of such asset will be realized. As of March 31, 2018 and March 31, 2017, the Company recognized a valuation allowance equal to 100% of the net deferred tax asset balance. Revenue Recognition The Company recognizes revenue from product sales, net of estimated returns, when persuasive evidence of a sale exists, including the following: (i) a product is shipped under an agreement with a customer; (ii) risk of loss and title has passed to the customer; (iii) the fee is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. The Company records estimated reductions to revenue for customer and distributor programs and incentive offerings, including promotions, rebates, and other volume-based incentives. Certain incentive programs require the Company to estimate revenue reductions based on industry experience the number of customers who will actually redeem the incentive. At March 31, 2018 and March 31, 2017, the Company had accrued $430,000 and $304,000 respectively, as its estimate for deductions and allowances. These expenses are included in the accrued expenses line of the balance sheets. Warranty and Return Reserves The Company records warranty liabilities at the time of sale for the estimated costs that may be incurred under its basic warranty program. The specific warranty terms and conditions vary depending upon the product sold, but generally include technical support, repair parts and labor for periods up to one year. Factors that affect the Company’s warranty liability include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and cost per claim to satisfy the Company’s warranty obligation. Based upon the foregoing, the Company has recorded as of March 31, 2018 and March 31, 2017 a provision for potential future warranty costs of $111,000 and $125,000, respectively. These reserves are recorded in the accrued expenses line of the balance sheets. The Company reserves for known and potential returns from customers and associated refunds or credits related to such returns based upon historical experience. In certain cases, retail customers are provided a fixed allowance, usually in the 1% to 2% range, to cover returned goods and this allowance is deducted from payments made to us by such customers. As of March 31, 2018 and March 31, 2017, the Company has recorded a reserve for customer returns of $293,000 and $175,000, respectively. These expenses are included in the accrued expenses line of the balance sheets. Shipping and Handling Costs Shipping and handling costs associated with inbound freight are recorded in cost of revenue and are capitalized in inventory until the inventory is sold. Shipping and handling costs associated with freight out to customers are also included in cost of revenue. Shipping and handling charges paid by customers are included in net revenue. Segments of an Enterprise and Related Information GAAP utilizes a management approach based on allocating resources and assessing performance as the source of the Company’s reportable segments. GAAP also requires disclosures about products and services, geographic areas and major customers. At present, the Company operates in two segments, Direct-to-Consumer and Retail Sales. New Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, “Statement of Cash Flows.” The new guidance will require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents is required to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted this new guidance in the first quarter of Fiscal Year 2018; the adoption did not have a material impact on our financial statements. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , ” which requires entities to estimate all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The updated guidance also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the potential impacts of this new guidance on the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Compensation Accounting,” which requires that excess tax benefits are recorded on the income statement as opposed to additional paid-in-capital, and treated as an operating activity on the statement of cash flows. ASU 2016-09 also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest (current U.S. GAAP) or account for forfeitures when they occur. ASU 2016-09 further requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows. The standard became effective for us in Fiscal Year 2018 and did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of this ASU is expected to result in all operating leases being capitalized and a current and long-term liability recorded in the Company’s financial statements. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year of previously issued ASU 2014-09, “Revenue from Contracts with Customers,” which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal Year 2019 using one of two prescribed methods. We anticipate we will adopt the modified retrospective transition method and are currently do not believe there will be a material impact on our consolidated financial statements and disclosures. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. This ASU is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The adoption of this ASU did not have a material impact on the Company’s financial statements. |
Note 2 - Notes Payable and Long
Note 2 - Notes Payable and Long Term Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 2 – Notes Payable and Long Term Debt We relied upon a variety of debt funding sources to meet our liquidity requirements during the fiscal years ended March 31, 2018 and 2017, as summarized below: March 31, March 31, 2018 (in thousands) 2017 (in thousands) Notes Payable –related party $ - $ - Sale of intellectual property liability (see Note 3) 80 117 Total debt 80 117 Less current portion 80 117 Long term debt $ - $ - Debt Payment Obligations As of March 31, 2018, we have no remaining debt requiring cash payments. All outstanding debt obligations are related to the Scotts Miracle-Gro transaction as described in Note 3 to our financial statements. Scotts Miracle-Gro Term Loan Agreement On September 13, 2017, the Company entered into a Term Loan Agreement in the principal amount of up to $2.0 million with Scotts Miracle-Gro. The proceeds will be made available as needed in increments of $500,000 not to exceed $2.0 million with a due date of March 30, 2018. The Company repaid the principal and interest in full on December 29, 2017. As a result the Company’s note payable balance was $0 on December 31, 2017. The Term Loan Agreement was secured by a lien on the assets of the Company. Interest was charged at the stated rate of 10% per annum and will be paid, in cash, quarterly in arrears at the end of each September, December and March. The funds provided under the Term Loan are used for general working capital and to acquire inventory to support anticipated growth as the Company expands its retail and its direct-to-consumer sales channels. The Company borrowed $1.0 million under the Term Loan in October 2017. The Term Loan permits prepayments without penalty or premium and as of December 31, 2017 the Company repaid the outstanding balance of the Term Loan and accrued interest in full. Liability Associated with Scotts Miracle-Gro Transaction On April 22, 2013, The Company and Scotts Miracle-Gro agreed to enter an Intellectual Property Sale Agreement, a Technology License Agreement, a Brand License Agreement, and a Supply Chain Services Agreement. The Intellectual Property Sale Agreement and the Technology License constitute an agreement of sales of future revenues. Because the Company received cash from Scotts Miracle-Gro and agreed to pay for a defined period a specified percentage of revenue and because the Company has significant involvement in the generation of its revenue, the excess paid over net book value is classified as debt and is being amortized under the effective interest method. As of March 31, 2018 and March 31, 2017, the Company recorded a liability of $80,000 and $117,000, respectively, was recorded on the balance sheets for the Intellectual Property Sale Agreement. |
Note 3 - Scotts Miracle-Gro Tra
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Convertible Preferred Stock, Warrants and Other Transactions [Abstract] | |
Convertible Preferred Stock, Warrants and Other Transactions [Text Block] | Note 3 – Scotts Miracle-Gro Transactions – Convertible Preferred Stock, Warrants and Other Transactions On April 22, 2013, the Company entered into a Securities Purchase Agreement with SMG Growing Media, Inc. (the “Investor”), a wholly owned subsidiary of Scotts Miracle-Gro (NYSE: “SMG”), a worldwide marketer of branded consumer lawn and garden products. Pursuant to the Securities Purchase Agreement, Scotts Miracle-Gro acquired 2,649,007 shares of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share (the “ The Series B Preferred Stock was convertible into 2,649,007 shares of common stock ($4.0 million divided by a conversion price of $1.51 per share). The Series B Preferred Stock bore a cumulative annual dividend of 8.0%, payable in shares of the Company’s common stock at a conversion price of $1.51 per share (subject to customary anti-dilution rights, as described in the Series B Preferred Stock Certificates of Designations). The Series B Preferred Stock did not have a liquidation preference and was entitled to vote on an “as-converted” basis with the common stock. The stock dividend accrued from day to day and was payable in shares of our common stock within thirty days after the end of each fiscal year end. The stock dividend was recorded at the fair market value of our common stock at the end of each quarter in the equity section of the balance sheet. The corresponding charge was recorded below net income to arrive at net income available to common shareholders. The Series B Preferred Stock automatically converted into the Company’s common stock: (i) upon the affirmative election of the holders of at least a majority of the then outstanding shares of the Series B Preferred Stock voting together as a single class on an as-if-converted to common stock basis; or (ii) if, at the date of exercise in whole or in part of the Warrant, the holder (or holders) of the Series B Preferred Stock own 50.1% of the issued and then-outstanding common stock of the Company, giving effect to the issuance of shares of common stock in connection with the conversion of the Series B Preferred Stock and such exercise of the Warrant. By its terms, the Series B Preferred Stock automatically converted into the Company’s common stock on November 29, 2016. The Warrant entitled, but did not obligate, Scotts Miracle-Gro to purchase a number of shares of common stock that, on a “fully diluted basis” (as defined in the Securities Purchase Agreement), constitute 80% of the Company’s outstanding capital stock (when added to all other shares owned by Scotts Miracle-Gro), as calculated as of the date or dates of exercise. The exercise price of the Warrant was equal to the quotient obtained by dividing: (a) an amount equal to (i) 1.34 times the trailing twelve months “Net Sales” (which includes sales of the Company’s products by Scotts Miracle-Gro and its affiliates) minus (ii) “Debt Outstanding” net of cash (as such terms are defined in the Warrant, by (b) the total shares of capital stock outstanding, including outstanding in-the-money options and warrants, but not the Warrant contemplated in this Private Offering. Upon exercise of the Warrants and demand by Scotts Miracle-Gro, the Company must use its best efforts to file a Registration Statement on Form S-3, or, if the Company is not eligible for Form S-3, on Form S-1 (collectively, the “Registration Statement”), covering the shares of the Company’s common stock covered by the Preferred Stock and the Warrant, within 120 calendar days after receipt of Scotts Miracle-Gro’s demand for registration and shall use its best efforts to cause the Registration Statement to become effective as soon as possible thereafter. The private offering and sale of the Series B Preferred Stock and Warrant was conducted in reliance upon exemptions from registration requirements under the Securities Act, including, without limitation, those under Regulation D promulgated under the Securities Act. Scotts Miracle-Gro is an “accredited investor,” as defined in Rule 501 of Regulation D under the Securities Act. Because the Series B Preferred Stock and the Warrant have not been registered under the Securities Act, they may not be reoffered or resold in the United States absent registration or an applicable exemption from registration. Under the Securities Purchase Agreement, the Company’s Board of Directors (the “Board”) is required to consist of five members, which shall be set forth in the Company’s Bylaws. In addition, Scotts Miracle-Gro is entitled to appoint one member to the Board and have one additional Board observer while the Warrant remains outstanding, pursuant to provision, Scotts Miracle-Gro has appointed Chris J. Hagedorn to the Company’s Board effective as of April 22, 2013. Upon exercise of the Warrant, Scotts Miracle-Gro was entitled to appoint three of the five members of the Board. The foregoing description of the Securities Purchase Agreement, the Certificates of Designations for the Series B Convertible Preferred Stock, the Warrant, and the resulting transaction is only a summary, does not purport to be complete, and is qualified in its entirety by reference to the full text of the applicable documents, each of which was included as an exhibit to the Company’s Current Report on Form 8-K, as filed with the SEC on April 23, 2013. The warrant on the Series B Convertible Preferred Stock was accounted for as a liability at its estimated fair value. The derivative warrant liability was re-measured to fair value, on a recurring basis, at the end of each reporting period until it was exercised. The Company accounted for the warrant as a liability and measured the value of the warrant using the Monte Carlo simulation model as of the end of each quarterly reporting period until the warrant was exercised. On November 29, 2016, Scotts Miracle-Gro fully exercised its warrant to purchase 80% of the Company’s outstanding stock, when the derivative warrant liability was extinguished and the Convertible Preferred Stock was converted to common stock. In conjunction with the Private Offering described above, the Company and Scotts Miracle-Gro also agreed to the following: Intellectual Property Sale Technology Licensing Agreement Brand License Collaboration Supply Chain Services Agreement |
Note 4 - Equity Compensation Pl
Note 4 - Equity Compensation Plans and Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2018 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Note 4 – Equity Compensation Plans and Employee Benefit Plans In August 2005, the Company’s Board of Directors approved the 2005 Equity Compensation Plan (the “2005 Plan”) pursuant to which both qualified and nonqualified stock options as well as restricted shares of common stock are reserved for issuance to eligible employees, consultants and directors of the Company. A total of 13,505,000 shares of our common stock may be granted under the 2005 Plan. The 2005 Equity Compensation plan has expired and we currently do not anticipate a shareholder meeting to approve a new plan. The 2005 Plan is administered by the Company’s Governance, Compensation and Nominating Committee, which has the authority to select the individuals to whom awards are to be granted, the number of shares of common stock to be covered by each award, the vesting schedule of stock options and/or restricted stock, and all other terms and conditions of each award. For the years ended March 31, 2018 and March 31, 2017, the Company did not grant any options to purchase the Company’s common stock under the 2005 Equity Compensation Plan. As of March 31, 2018, the Company had a total of 175,000 options outstanding with exercise prices ranging from $1.10 to $5.31 per share. As a result of recognizing compensation expense for stock options, the net loss for the years ended March 31, 2018 and March 31, 2017, was increased by $0 and $152,000, respectively. A summary of option activity in the 2005 Plan is as follows: Exercise price Options Weighted- (in thousands) Low High Average Balances at April 1, 2016 656 $ 1.01 $ 5.31 $ 2.13 Granted - - - - Exercised (481 ) 1.01 2.42 1.67 Forfeited - - - - Balances at March 31, 2017 175 $ 1.10 $ 5.31 $ 3.50 Granted - - - - Exercised - - - - Forfeited - - - - Balances at March 31, 2018 175 $ 1.10 $ 5.31 $ 3.50 Information regarding all stock options outstanding under the 2005 Plan as of March 31, 2018 is as follows: OPTIONS OUTSTANDING AND EXERCISABLE Weighted- average Weighted- Aggregate Remaining average Intrinsic Exercise Options Contractual Exercise Value price (in thousands) Life (years) Price (in thousands) $ 1.10 50 0.08 $ 1.10 $ 1.55 11 2.38 $ 1.55 $ 2.20 21 0.55 $ 2.20 $ 5.31 93 1.35 $ 5.31 175 0.94 $ 3.50 $ 73 The aggregate intrinsic value in the preceding table represents the difference between the Company’s closing stock price and the exercise price of each in-the-money option on the last trading day of the period presented which was March 30, 2018. At March 31, 2018, there are no unvested outstanding options to purchase shares of the Company’s common stock and that will result in no additional compensation expense. We sponsor a defined contribution 401(k) plan adopted in fiscal year 2017, under which eligible associates voluntarily contribute to the plan, up to IRS maximums, through payroll deductions. We match a percentage of contributions, up to a stated limit, with all matching contributions being fully vested immediately. Our matching contributions under the 401(k) plan were $33,000 and $31,000 for the fiscal years ended March 31, 2018 and 2017, respectively. |
Note 5 - Income Taxes
Note 5 - Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 5 – Income Taxes Under the provisions of GAAP, a deferred tax asset or liability (net of valuation allowance) is provided in the financial statements by applying the provisions of applicable laws to measure the deferred tax consequences of temporary differences that will result in taxable or deductible amounts in the future years as a result of events recognized in the financial statements in the current or preceding years. Income tax provision consisted of the following: (in thousands) For the Years Ended March 31, 2018 2017 Current: Federal $ - $ - Foreign - - State 1 1 1 1 Deferred: Federal - - Foreign - - State - - - - Income tax provision $ 1 $ 1 Reconciliation of effective tax rate: For the Years Ended March 31, 2018 2017 Federal taxes at statutory rate 30.75 % 34.00 % State taxes, net of federal benefit -11.09 % 0.58 % FMV excess of conversion price -74.75 % 5.15 % Warrants Valuation 0.00 % -15.35 % Fair Value of Dividend-Paid by Stock -48.71 % -15.10 % Stock Options ISO 0.00 % -1.03 % Other Permanent items 1.87 % -0.13 % Change in effective tax rate 353.71 % -0.19 % Other Adjustments -12.96 % -0.68 % Valuation allowance -6,366.72 % -6.47 % Federal NOL Carryforward Reduction 5,110.07 % -0.80 % State NOL Carryforward Reduction 655.18 % 0.00 % NOL Created by Tax Stock Comp 0.00 % -1.22 % Stock-based compensation 362.89 % 1.22 % Effective income tax rate 0.24 % -0.02 % (in thousands) As of March 31, 2018 2017 Non-Current Deferred Tax Assets and Liabilities: Net Operating Loss $ 2,697 $ 22,827 R & D credit carryforwards 597 597 Intangibles and fixed assets 64 82 Accrued compensation 226 175 Allowance for bad debt 10 7 Reserve for customer returns 73 64 Warranty reserve 27 46 Reserve for obsolete inventory 71 133 Stock-compensation 72 1,405 Royalty Payments made with Stock 462 455 Other 29 44 Prepaid expenses (70 ) (105 ) Valuation allowance (4,258 ) (25,730 ) Non-Current Deferred Tax Assets and Liabilities, Net $ - $ - The Tax Reform Act of 1986 contains provisions that limit the utilization of net operating loss and tax credit carryforwards if there has been a change of ownership as described in Section 382 of the Internal Revenue Code. The Company believes there has been a change of ownership, and a study was conducted in order to determine future utilization of its net operating losses. The findings of the study indicate approximately $50 million of the Company’s net operating losses will expire due to the 382 limitations. At March 31, 2018 and March 31, 2017, respectively, approximately $12.8 million and $62.2 million of net operating loss carryforwards for federal income tax purposes were available to offset future taxable income through the year 2037. At March 31, 2018, the total state net operating loss carry-forwards will expire between 2020 through 2037. The ultimate realization of these assets is dependent upon the generation of future taxable income sufficient to offset the related deductions and loss carryforwards within the applicable carryforward period. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is not more likely than not that the Company will not be able to realize the benefits of these deductible differences at March 31, 2018. ASC 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold before a benefit is recognized in the financial statements. As of March 31, 2018, the Company has not recorded a liability for uncertain tax positions. Included in net deferred tax assets is $597,000 of federal research credits that may offset future taxable income through 2022. While the Company believes that the credit calculations are correct, it is possible that upon an examination by taxing authorities, the research credits available to offset future taxable income may be reduced in whole or in part. However, as the Company is not currently recognizing a benefit for the research credits, there is no impact to the financial statements pursuant to ASC 740. There have been no income tax related interest or penalties assessed or recorded and if interest and penalties were to be assessed, the Company would charge interest and penalties to income tax expense. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company files income tax returns in the U.S. and various state jurisdictions and there are open statutes of limitations for taxing authorities to audit the Company’s tax returns from years ended March 31, 2014 through the current period. On December 22, 2017 (the “Enactment Date”), the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code and key provisions applicable to the Company, for 2018 including the following: (1) reduction of the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) elimination of the corporate alternative minimum tax (AMT); (3) a new limitation on deductible interest expense; (4) limitations on the deductibility of certain executive compensation; (5) limitations on the use of federal tax credits (“FTCs”) to reduce the U.S. income tax liability; (6) limitations on net operating losses (“NOL’s”) generated after December 31, 2017, to 80 percent of taxable income. Consequently, the Company has recorded a decrease to its net deferred tax assets of 8.3 million with a corresponding net adjustment to the valuation allowance for the year ended March 31, 2018. Based on the Company’s current interpretation and subject to the release of the related regulations and any future interpretive guidance, the Company believes the effects of the change in tax law incorporated herein are substantially complete. Concurrent with the enactment of the Tax Act, in December 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Enactment Date for companies to complete the accounting under Accounting Standards Codification 740 - Income Taxes (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that an entity’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. |
Note 6 - Related Party Transact
Note 6 - Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 6 – Related Party Transactions See Note 2 “Notes Payable and Long Term Debt,” and Note 8 “Stockholders’ Equity” to our financial statements for discussion related to debt and equity transactions involving our officers, directors and 5% or greater shareholders. On September 13, 2017, the Company entered into a Term Loan Agreement in the principal amount of up to $2.0 million with Scotts Miracle-Gro. Interest was charged at the stated rate of 10% per annum, but the principal and accrued interest on the Term Loan were repaid in full as of December 31, 2017. As disclosed above in Note 2 under the caption “Scotts Miracle-Gro Term Loan,” the principal and interest balance of the Term Loan at March 31, 2018, was $0 and was paid in full during December 2017. During the year ended March 31, 2018, the Company sold product to Scotts Miracle-Gro for approximately $877,000. Additionally, we paid Scotts Miracle-Gro $61,000 for charges incurred from a warehouse fully owned by Scotts Miracle-Gro to fulfill an order with one of our customers. On April 22, 2013, the Company entered into a Securities Purchase Agreement with SMG Growing Media, Inc. Scotts Miracle-Gro acquired 2,649,007 shares of the Company’s Series B Convertible Preferred Stock, and a warrant to purchase shares of the Company’s common stock. The Warrant entitled, but did not obligate, Scotts Miracle-Gro to purchase a number of shares of common stock that, on a “fully diluted basis”, constitute 80% of the Company’s outstanding capital stock (when added to all other shares owned by Scotts Miracle-Gro), as calculated as of the date or dates of exercise. On November 29, 2016, Scotts Miracle-Gro fully exercised its warrant to purchase 80% of the Company’s outstanding stock. The Series B Preferred Stock was entitled to vote on an “as-converted” basis with the common stock. As a result of the above transactions, Scotts Miracle-Gro beneficially owns 80% of our outstanding voting stock and is a related party. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 7 – Commitments and Contingencies We lease an office space in Boulder, Colorado. As of September 30, 2011, the Company executed an amendment to the lease which reduced the square footage and monthly rent and extended the lease term. We lease 9,868 square feet with a current monthly rent of $11,000. We also pay our proportionate share of building taxes, insurance and operating expenses. The lease term was extended to September 30, 2019. The agreement contains other standard office lease provisions. On April 1, 2018, the Company leased an additional 1,314 square feet of space, thereby increasing the total rent to $12,000 per month. In May 2011, the Company reached an agreement with Wildernest Logistics Solutions to provide warehousing, distribution and fulfillment operations, and seed pod kit manufacturing. The agreement calls for a monthly $10,000 facility charge. The Company has extended its agreement with Wildernest Logistics Solutions effective April 17, 2014 for a two-year term with automatic one-year renewals. Future cash payments under such agreements for the remaining years are as follows: Year Ending Rent (in thousands) March 31, 2019 $ 160 March 31, 2020 80 $ 240 Rent expense for the years ended March 31, 2018 and 2017, was $311,000 and $286,000, respectively. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8 – Stockholders’ Equity Common Stock and Common Stock Warrants As of March 31, 2018, the Company had 34,328,036 common shares issued and outstanding out of the 750,000,000 shares (par value $0.001 per share) that have been authorized by the Company’s shareholders. In August 2017, the Company issued 850,749 shares of common stock to SMG Growing Media, Inc. to fulfill the agreement for the technology licensing agreement and brand licensing agreement as further discussed in Note 3 above. In conjunction with April 2013 issuance of Series B Convertible Preferred Stock to Scotts Miracle-Gro, the Company issued warrants to purchase 125,000 shares of common stock to the placement agent. This warrant has an exercise price of $1.54 per share (125% of the average closing price of the Company’s common stock during the five-day period prior to the April 22, 2013 closing date). The value of this warrant was estimated at $108,000, based on the Black-Scholes model with a stock price of $1.30, calculated exercise price of $1.54, expected life of three years, annualized volatility of 117.2% and a discount rate of 0.39%. The value of the warrant was recorded as stock issuance costs. As discussed above, on November 29, 2016, Scotts Miracle-Gro fully exercised its warrant to purchase 80% of the Company’s outstanding stock. For additional details regarding the Scotts Miracle-Gro Warrant, see “Note 3 – Scotts Miracle-Gro Transaction” above. A summary of the Company’s common stock warrant activity for the period from April 1, 2016 through March 31, 2018 is presented below: Warrants Weighted Aggregate Outstanding Average Exercise Price Intrinsic Value Outstanding, April 1, 2016 444 $ 6.45 $ 7 Granted - - Exercised (48 ) 2.10 Expired - - Outstanding, March 31, 2017 396 $ 6.97 $ 2 Granted - - Exercised - - Expired (394 ) 7.00 Outstanding, March 31, 2018 2 $ 2.10 $ 5 As of March 31, 2018, the Company had the following outstanding warrants to purchase its common stock: Weighted Average Warrants Outstanding (in thousands) Exercise Price Remaining Life (Yrs) 2 $ 2.10 0.77 2 $ 2.10 0.77 Preferred Stock and Preferred Stock Warrants The Company’s Articles of Incorporation authorize the issuance of 20,000,000 shares of preferred stock with $0.001 par value. As discussed in Note 3 above, the Series B Preferred Stock was converted into 2,649,007 shares of common stock ($4.0 million divided by a conversion price of $1.51 per share) on November 29, 2016, concurrently with Scotts Miracle-Gro’s exercise of its Warrant. The Series B Convertible Preferred Stock bore a cumulative annual dividend of 8.0%, payable in shares of the Company’s common stock at a conversion price of $1.51 per share (subject to customary anti-dilution rights, as described in the Series B Convertible Preferred Stock Certificates of Designations). All shares related to this agreement were settled in the issuance in August 2017 and no accrual remains as of March 31, 2018 for the stock dividend. For additional details regarding the initial issuance of the Series B Convertible Preferred Stock and Warrant in March 2013 and the November 2016 conversation/exercise of the Series B Preferred Stock and Warrant, see “Note 3 – Scotts Miracle-Gro Transaction” above. As of March 31, 2018 and March 31, 2017, based on the number of shares issuable to Scotts Miracle-Gro the Company has accrued $0 and $49,000 for the stock dividend, respectively. For additional details regarding the Series B Convertible Preferred Stock, see “Note 3 – Scotts Miracle-Gro Transaction” above. |
Note 9 - Segment Information
Note 9 - Segment Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 9 – Segment Information The Company has determined that its reportable segments are those that are based on its method of internal reporting and the perspective of the chief operating decision maker. The company has two reportable segments, Retail Sales and Direct-to-Consumers. The Company evaluates performance based on the primary financial measure of contribution margin (“segment profit”). Segment profit reflects the income or loss from operations before corporate expenses, non-operating income, net interest expense, and income taxes. The Company doesn’t have an individually identified assets regarding specific segments as all processes to manufacture products are not different based on segment. Fiscal Year Ended March 31, 2018 (in thousands) Direct-to-consumer Retail Corporate/Other Consolidated Net sales $ 8,172 $ 24,126 $ - $ 32,298 Cost of revenue 5,672 15,926 - 21,598 Gross profit 2,500 8,200 - 10,700 Gross profit percentage 30.6 % 33.9 % - 33.1 % Sales and marketing (1) 129 3,670 1,590 5,389 Segment profit 2,371 4,530 (1,590 ) 5,311 Segment profit percentage 29.0 % 18.8 % - 16.4 % (1) Sales and marketing includes advertising, trade shows, media production and promotional products and other as discussed in the sales and marketing section. Fiscal Year Ended March 31, 2017 (in thousands) Direct-to-consumer Retail Corporate/Other Consolidated Net sales $ 7,526 $ 16,083 $ - $ 23,609 Cost of revenue 4,668 10,376 - 15,044 Gross profit 2,858 5,707 - 8,565 Gross profit percentage 38.0 % 35.5 % - 36.3 % Sales and marketing (1) 129 2,714 1,140 3,983 Segment profit 2,729 2,993 (1,140 ) 4,582 Segment profit percentage 36.3 % 18.6 % - 19.4 % (1) Sales and marketing includes advertising, trade shows, media production and promotional products and other as discussed in the sales and marketing section. |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 10 – Subsequent Events None. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that a change in the Company’s estimates will occur in the near term and such change could be material as information becomes available. Our estimates include the derivative warrant liability, warranty and return reserves, inventory obsolescence reserves and allowances for sales and cooperative advertising. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Share of Common Stock The Company computes net income (loss) per share of common stock in accordance with Accounting Standards Codification (“ASC”) 260. ASC 260 requires companies with complex capital structures to present basic and diluted Earnings per Share (“EPS”). Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average shares of common stock outstanding for the period. Diluted EPS is similar to basic EPS, but presents the dilutive effect on a per share basis of potential common stock (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Securities that were excluded from the computation of EPS because to do so would have been anti-dilutive were employee stock options to purchase 93,000 shares of common stock for the period ended March 31, 2018 and employee stock options and warrants to purchase 488,000 shares for the period ended March 31, 2017 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at March 31, 2018 and 2017. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash The Company has secured activity related to its corporate credit card purchase account with a restricted money market account. The balance in this account as of March 31, 2018 and March 31, 2017 was $15,000. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk ASC 825-10-50-20 requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash deposits. The amounts on deposit with two financial institutions exceeded the $250,000 federally insured limit as of March 31, 2018. However, management believes that the financial institution is financially sound and the risk of loss is minimal. Customers and Accounts Receivable: For the year ended March 31, 2018, the Company had one customer, Amazon.com, who represented 30.2%, of the Company’s net revenue. For the year ended March 31, 2017, the Company had one customer, Amazon.com, who represented 40.8%, of the Company’s net revenue. As of March 31, 2018, the Company had two customers, Canadian Tire Corporation and Amazon.com, which represented 27.3% and 22.3%, respectively of outstanding accounts receivable. As of March 31, 2017, the Company had three customers, Amazon.com, Amazon.uk, and Amazon.ca, which represented 33.9%, 14.3% and 11.0%, respectively, of outstanding accounts receivable. Management believes that all receivables from these customers are collectible. Suppliers: For the year ended March 31, 2018, the Company purchased inventories and other inventory related items from one supplier totaling $14.7 million representing 68.0% of cost of revenue. For the year ended March 31, 2017, the Company purchased inventories and other inventory related items from one supplier totaling $8.7 million representing 57.6% of cost of revenue. The Company’s primary contract manufacturers are located in China. As a result, the Company may be subject to political, currency, regulatory, shipping, labor and weather/natural disaster risks. Although the Company believes alternate sources of manufacturing could be obtained, these risks and any potential loss of supply could have an adverse impact on operations. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company follows the guidance in ASC 820, Fair Value Measurements and Disclosures Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, i.e., exit price, in an orderly transaction between market participants. ASC 820 also provides a hierarchy for determining fair value, which emphasizes the use of observable market data whenever available. The three broad levels defined by the hierarchy are as follows, with the highest priority given to Level 1 as these are the most reliable, and the lowest priority given to Level 3. The three levels of the fair value hierarchy are described below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, including model-derived valuations. Level 3: Unobservable inputs that are supported by little or no market activity. The carrying value of financial instruments, including cash, receivables, accounts payable and accrued expenses, approximates their fair value at March 31, 2018 and March 31, 2017 due to the relatively short-term nature of these instruments. The Company’s intellectual property liability carrying value was determined by Level 3 inputs. As discussed below in Notes 2 and 3, this liability was incurred in conjunction with the Company’s strategic alliance with Scotts Miracle-Gro. As of March 31, 2018 and March 31, 2017, the fair value of the Company’s sale of intellectual property liability was estimated using the discounted cash flow method, which is based on expected future cash flows, discounted to present value using a discount rate of 15%. Historically, the Company has also had a note payable from Scotts Miracle-Gro that is also valued using the discounted cash flow method. The Company borrowed a total of $1.0 million from Scotts Miracle-Gro from two $500,000 advances in October 2017, but repaid the principal and interest in full on December 29, 2017. The table below summarizes the fair value and carry value of each Level 3 category liability: March 31, 2018 March 31, 2017 Fair Value Carry Value Fair Value Carry Value (in thousands) Liabilities Sale of intellectual property liability 65 80 90 117 Total $ 65 $ 80 $ 90 $ 117 The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the periods ended March 31, 2018 and March 31, 2017. (in thousands) Derivative warrant liability Notes payable-related party Sale of intellectual property liability Balance, March 31, 2016 $ 644 $ 1,277 $ 117 Revaluations prior to exercise 2,108 - - Exercise of derivative warrant liability (2,752 ) - - Proceeds notes payable-related party - 5,250 - Payment of notes payable-related party - (6,354 ) - Value of common stock issued for interest on notes payable-related party - (173 ) - Amortization of intellectual property - - (27 ) Balance, March 31, 2017 $ - $ - $ 90 Revaluations prior to exercise - - - Exercise of derivative warrant liability - - - Proceeds notes payable-related party - - - Payment of notes payable-related party - - - Value of common stock issued for interest on notes payable-related party - - - Amortization of intellectual property - - (25 ) Balance, March 31, 2018 $ - $ - $ 65 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation for financial accounting purposes is computed using the straight-line method over the estimated lives of the respective assets. Office equipment and computer hardware are depreciated over five years. Tooling is depreciated over three years. Leasehold improvements are being amortized over the life of the lease. Property and equipment consist of the following: March 31, March 31, 2018 2017 (in thousands) Manufacturing equipment and tooling $ 3,797 $ 3,349 Computer equipment and software 626 612 Leasehold improvements 116 116 Other equipment and intangible assets 358 358 4,897 4,435 Less: accumulated depreciation (4,385 ) (4,020 ) Property and equipment, net $ 512 $ 415 Depreciation expense for the years ended March 31, 2018 and 2017, was $346,000, and $368,000, respectively. |
Inventory, Policy [Policy Text Block] | Inventory Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or net realizable value. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. March 31, March 31, 2018 2017 (in thousands) Finished goods $ 4,117 $ 2,274 Raw materials 930 647 $ 5,047 $ 2,921 The Company determines an inventory obsolescence reserve based on management’s historical experience and establishes reserves against inventory according to the age of the product. As of March 31, 2018 and 2017, the Company had reserved $66,000 and $362,000, respectively, for inventory obsolescence. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts The Company sells its products to retailers and direct-to-consumer. Direct-to-consumer transactions are primarily paid by credit card. Retailer sales terms vary by customer, but are generally net 30 days to net 60 days. Accounts receivable are reported at net realizable value and net of the allowance for doubtful accounts. The Company uses the allowance method to account for uncollectible accounts receivable. The Company’s allowance estimate is based on a review of the current status of trade accounts receivable, which resulted in an allowance of $39,000 and $20,000 at March 31, 2018 and March 31, 2017, respectively. Other Receivables In conjunction with the Company’s processing of credit card transactions for its direct-to-consumer sales activities and as security with respect to the Company’s performance for required credit card refunds and charge backs, the Company is required to maintain a cash reserve with Vanity, the Company’s credit card processor. This reserve is equal to 5% of the credit card sales processed during the previous six months. As of March 31, 2018 and March 31, 2017, the balance in this reserve account was $281,000 and $258,000, respectively. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Production Costs The Company expenses all production costs related to advertising, including, print, television, and radio advertisements when the advertisement has been broadcast or otherwise distributed. In contrast, the Company records media and marketing costs related to its direct-to-consumer advertisements, inclusive of postage and printing costs incurred in conjunction with mailings of direct response catalogues, and related direct response advertising costs, in accordance ASC 340-20 Capitalized Advertising Costs. As the Company has re-entered the retail distribution channel, the Company has expanded its advertising to online gateway and portal advertising, as well as placement in third party catalogues. Advertising expenses for the years ended March 31, 2018 and March 31, 2017, were as follows: Fiscal Year Ended March 31, 2018 2017 (in thousands) Direct-to-consumer $ 579 $ 424 Retail 3,412 2,533 Other 759 706 Total advertising expense $ 4,750 $ 3,663 As of March 31, 2018 and March 31, 2017, the Company had deferred $14,000 and $24,000, respectively, related to such media and advertising costs, which include the catalogue cost described above and commercial production costs. The costs are included in the prepaid expenses and other line of the balance sheet. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research, development, and engineering costs are expensed as incurred. Research, development, and engineering expenses primarily include payroll and headcount related costs, contractor fees, infrastructure costs, and administrative expenses directly related to research and development support. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company uses the Black-Scholes option valuation model to estimate the fair value of stock option awards. For the years ended March 31, 2018 and March 31, 2017, equity compensation in the form of stock options and grants of restricted stock that vested totaled zero and $152,000, respectively, and is included in the accompanying statements of operations in the following categories: Years ended March 31, 2018 March 31, 2017 (in thousands) General and administrative $ - $ 27 Sales and marketing - 125 Total $ - $ 152 |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at the end of each period, based on enacted laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Any liability for actual taxes to taxing authorities is recorded as income tax liability. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against such assets where management is unable to conclude that it is “more likely than not” that the value of such asset will be realized. As of March 31, 2018 and March 31, 2017, the Company recognized a valuation allowance equal to 100% of the net deferred tax asset balance. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue from product sales, net of estimated returns, when persuasive evidence of a sale exists, including the following: (i) a product is shipped under an agreement with a customer; (ii) risk of loss and title has passed to the customer; (iii) the fee is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. The Company records estimated reductions to revenue for customer and distributor programs and incentive offerings, including promotions, rebates, and other volume-based incentives. Certain incentive programs require the Company to estimate revenue reductions based on industry experience the number of customers who will actually redeem the incentive. At March 31, 2018 and March 31, 2017, the Company had accrued $430,000 and $304,000 respectively, as its estimate for deductions and allowances. These expenses are included in the accrued expenses line of the balance sheets |
Standard Product Warranty, Policy [Policy Text Block] | Warranty and Return Reserves The Company records warranty liabilities at the time of sale for the estimated costs that may be incurred under its basic warranty program. The specific warranty terms and conditions vary depending upon the product sold, but generally include technical support, repair parts and labor for periods up to one year. Factors that affect the Company’s warranty liability include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and cost per claim to satisfy the Company’s warranty obligation. Based upon the foregoing, the Company has recorded as of March 31, 2018 and March 31, 2017 a provision for potential future warranty costs of $111,000 and $125,000, respectively. These reserves are recorded in the accrued expenses line of the balance sheets. The Company reserves for known and potential returns from customers and associated refunds or credits related to such returns based upon historical experience. In certain cases, retail customers are provided a fixed allowance, usually in the 1% to 2% range, to cover returned goods and this allowance is deducted from payments made to us by such customers. As of March 31, 2018 and March 31, 2017, the Company has recorded a reserve for customer returns of $293,000 and $175,000, respectively. These expenses are included in the accrued expenses line of the balance sheets. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Shipping and handling costs associated with inbound freight are recorded in cost of revenue and are capitalized in inventory until the inventory is sold. Shipping and handling costs associated with freight out to customers are also included in cost of revenue. Shipping and handling charges paid by customers are included in net revenue. |
Segment Reporting, Policy [Policy Text Block] | Segments of an Enterprise and Related Information GAAP utilizes a management approach based on allocating resources and assessing performance as the source of the Company’s reportable segments. GAAP also requires disclosures about products and services, geographic areas and major customers. At present, the Company operates in two segments, Direct-to-Consumer and Retail Sales. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, “Statement of Cash Flows.” The new guidance will require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents is required to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company adopted this new guidance in the first quarter of Fiscal Year 2018; the adoption did not have a material impact on our financial statements. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , ” which requires entities to estimate all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The updated guidance also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted. The Company is in the process of evaluating the potential impacts of this new guidance on the Company’s consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Compensation Accounting,” which requires that excess tax benefits are recorded on the income statement as opposed to additional paid-in-capital, and treated as an operating activity on the statement of cash flows. ASU 2016-09 also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest (current U.S. GAAP) or account for forfeitures when they occur. ASU 2016-09 further requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows. The standard became effective for us in Fiscal Year 2018 and did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of this ASU is expected to result in all operating leases being capitalized and a current and long-term liability recorded in the Company’s financial statements. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year of previously issued ASU 2014-09, “Revenue from Contracts with Customers,” which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal Year 2019 using one of two prescribed methods. We anticipate we will adopt the modified retrospective transition method and are currently do not believe there will be a material impact on our consolidated financial statements and disclosures. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. This ASU is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The adoption of this ASU did not have a material impact on the Company’s financial statements. |
Note 1 - Description of the B18
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The table below summarizes the fair value and carry value of each Level 3 category liability: March 31, 2018 March 31, 2017 Fair Value Carry Value Fair Value Carry Value (in thousands) Liabilities Sale of intellectual property liability 65 80 90 117 Total $ 65 $ 80 $ 90 $ 117 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the periods ended March 31, 2018 and March 31, 2017. (in thousands) Derivative warrant liability Notes payable-related party Sale of intellectual property liability Balance, March 31, 2016 $ 644 $ 1,277 $ 117 Revaluations prior to exercise 2,108 - - Exercise of derivative warrant liability (2,752 ) - - Proceeds notes payable-related party - 5,250 - Payment of notes payable-related party - (6,354 ) - Value of common stock issued for interest on notes payable-related party - (173 ) - Amortization of intellectual property - - (27 ) Balance, March 31, 2017 $ - $ - $ 90 Revaluations prior to exercise - - - Exercise of derivative warrant liability - - - Proceeds notes payable-related party - - - Payment of notes payable-related party - - - Value of common stock issued for interest on notes payable-related party - - - Amortization of intellectual property - - (25 ) Balance, March 31, 2018 $ - $ - $ 65 |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: March 31, March 31, 2018 2017 (in thousands) Manufacturing equipment and tooling $ 3,797 $ 3,349 Computer equipment and software 626 612 Leasehold improvements 116 116 Other equipment and intangible assets 358 358 4,897 4,435 Less: accumulated depreciation (4,385 ) (4,020 ) Property and equipment, net $ 512 $ 415 |
Schedule of Inventory, Current [Table Text Block] | Inventories are valued at the lower of cost, determined on the basis of standard costing, which approximates the first-in, first-out method, or net realizable value. When the Company is the manufacturer, raw materials, labor and manufacturing overhead are included in inventory costs. The Company records the raw materials at delivered cost. Standard labor and manufacturing overhead costs are applied to the finished goods based on normal production capacity. A majority of the Company’s products are manufactured overseas and are recorded at standard cost, which includes product costs for purchased and manufactured products, and freight and transportation costs for inbound freight from manufacturers. March 31, March 31, 2018 2017 (in thousands) Finished goods $ 4,117 $ 2,274 Raw materials 930 647 $ 5,047 $ 2,921 |
Schedule of Advertising Expenses [Table Text Block] | Advertising expenses for the years ended March 31, 2018 and March 31, 2017, were as follows: Fiscal Year Ended March 31, 2018 2017 (in thousands) Direct-to-consumer $ 579 $ 424 Retail 3,412 2,533 Other 759 706 Total advertising expense $ 4,750 $ 3,663 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Advertising expenses for the years ended March 31, 2018 and March 31, 2017, were as follows: Years ended March 31, 2018 March 31, 2017 (in thousands) General and administrative $ - $ 27 Sales and marketing - 125 Total $ - $ 152 |
Note 2 - Notes Payable and Lo19
Note 2 - Notes Payable and Long Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | We relied upon a variety of debt funding sources to meet our liquidity requirements during the fiscal years ended March 31, 2018 and 2017, as summarized below: March 31, March 31, 2018 (in thousands) 2017 (in thousands) Notes Payable –related party $ - $ - Sale of intellectual property liability (see Note 3) 80 117 Total debt 80 117 Less current portion 80 117 Long term debt $ - $ - |
Note 4 - Equity Compensation 20
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of option activity in the 2005 Plan is as follows: Exercise price Options Weighted- (in thousands) Low High Average Balances at April 1, 2016 656 $ 1.01 $ 5.31 $ 2.13 Granted - - - - Exercised (481 ) 1.01 2.42 1.67 Forfeited - - - - Balances at March 31, 2017 175 $ 1.10 $ 5.31 $ 3.50 Granted - - - - Exercised - - - - Forfeited - - - - Balances at March 31, 2018 175 $ 1.10 $ 5.31 $ 3.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Information regarding all stock options outstanding under the 2005 Plan as of March 31, 2018 is as follows: OPTIONS OUTSTANDING AND EXERCISABLE Weighted- average Weighted- Aggregate Remaining average Intrinsic Exercise Options Contractual Exercise Value price (in thousands) Life (years) Price (in thousands) $ 1.10 50 0.08 $ 1.10 $ 1.55 11 2.38 $ 1.55 $ 2.20 21 0.55 $ 2.20 $ 5.31 93 1.35 $ 5.31 175 0.94 $ 3.50 $ 73 |
Note 5 - Income Taxes (Tables)
Note 5 - Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Under the provisions of GAAP, a deferred tax asset or liability (net of valuation allowance) is provided in the financial statements by applying the provisions of applicable laws to measure the deferred tax consequences of temporary differences that will result in taxable or deductible amounts in the future years as a result of events recognized in the financial statements in the current or preceding years. Income tax provision consisted of the following: (in thousands) For the Years Ended March 31, 2018 2017 Current: Federal $ - $ - Foreign - - State 1 1 1 1 Deferred: Federal - - Foreign - - State - - - - Income tax provision $ 1 $ 1 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of effective tax rate: For the Years Ended March 31, 2018 2017 Federal taxes at statutory rate 30.75 % 34.00 % State taxes, net of federal benefit -11.09 % 0.58 % FMV excess of conversion price -74.75 % 5.15 % Warrants Valuation 0.00 % -15.35 % Fair Value of Dividend-Paid by Stock -48.71 % -15.10 % Stock Options ISO 0.00 % -1.03 % Other Permanent items 1.87 % -0.13 % Change in effective tax rate 353.71 % -0.19 % Other Adjustments -12.96 % -0.68 % Valuation allowance -6,366.72 % -6.47 % Federal NOL Carryforward Reduction 5,110.07 % -0.80 % State NOL Carryforward Reduction 655.18 % 0.00 % NOL Created by Tax Stock Comp 0.00 % -1.22 % Stock-based compensation 362.89 % 1.22 % Effective income tax rate 0.24 % -0.02 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (in thousands) As of March 31, 2018 2017 Non-Current Deferred Tax Assets and Liabilities: Net Operating Loss $ 2,697 $ 22,827 R & D credit carryforwards 597 597 Intangibles and fixed assets 64 82 Accrued compensation 226 175 Allowance for bad debt 10 7 Reserve for customer returns 73 64 Warranty reserve 27 46 Reserve for obsolete inventory 71 133 Stock-compensation 72 1,405 Royalty Payments made with Stock 462 455 Other 29 44 Prepaid expenses (70 ) (105 ) Valuation allowance (4,258 ) (25,730 ) Non-Current Deferred Tax Assets and Liabilities, Net $ - $ - |
Note 7 - Commitments and Cont22
Note 7 - Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future cash payments under such agreements for the remaining years are as follows: Year Ending Rent (in thousands) March 31, 2019 $ 160 March 31, 2020 80 $ 240 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | A summary of the Company’s common stock warrant activity for the period from April 1, 2016 through March 31, 2018 is presented below: Warrants Weighted Aggregate Outstanding Average Exercise Price Intrinsic Value Outstanding, April 1, 2016 444 $ 6.45 $ 7 Granted - - Exercised (48 ) 2.10 Expired - - Outstanding, March 31, 2017 396 $ 6.97 $ 2 Granted - - Exercised - - Expired (394 ) 7.00 Outstanding, March 31, 2018 2 $ 2.10 $ 5 |
Schedule of Stockholders Equity [Table Text Block] | As of March 31, 2018, the Company had the following outstanding warrants to purchase its common stock: Weighted Average Warrants Outstanding (in thousands) Exercise Price Remaining Life (Yrs) 2 $ 2.10 0.77 2 $ 2.10 0.77 |
Note 9 - Segment Information (T
Note 9 - Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company has determined that its reportable segments are those that are based on its method of internal reporting and the perspective of the chief operating decision maker. The company has two reportable segments, Retail Sales and Direct-to-Consumers. The Company evaluates performance based on the primary financial measure of contribution margin (“segment profit”). Segment profit reflects the income or loss from operations before corporate expenses, non-operating income, net interest expense, and income taxes. The Company doesn’t have an individually identified assets regarding specific segments as all processes to manufacture products are not different based on segment. Fiscal Year Ended March 31, 2018 (in thousands) Direct-to-consumer Retail Corporate/Other Consolidated Net sales $ 8,172 $ 24,126 $ - $ 32,298 Cost of revenue 5,672 15,926 - 21,598 Gross profit 2,500 8,200 - 10,700 Gross profit percentage 30.6 % 33.9 % - 33.1 % Sales and marketing (1) 129 3,670 1,590 5,389 Segment profit 2,371 4,530 (1,590 ) 5,311 Segment profit percentage 29.0 % 18.8 % - 16.4 % Fiscal Year Ended March 31, 2017 (in thousands) Direct-to-consumer Retail Corporate/Other Consolidated Net sales $ 7,526 $ 16,083 $ - $ 23,609 Cost of revenue 4,668 10,376 - 15,044 Gross profit 2,858 5,707 - 8,565 Gross profit percentage 38.0 % 35.5 % - 36.3 % Sales and marketing (1) 129 2,714 1,140 3,983 Segment profit 2,729 2,993 (1,140 ) 4,582 Segment profit percentage 36.3 % 18.6 % - 19.4 % (1) Sales and marketing includes advertising, trade shows, media production and promotional products and other as discussed in the sales and marketing section. |
Note 1 - Description of the B25
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) | Apr. 22, 2013USD ($)shares | Oct. 31, 2017USD ($) | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($)shares | Sep. 13, 2017USD ($) | Nov. 29, 2016 |
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Net Income (Loss) Attributable to Parent | $ (442,000) | $ (2,598,000) | ||||
Retained Earnings (Accumulated Deficit) | (128,108,000) | (129,486,000) | ||||
Cash Equivalents, at Carrying Value | 0 | 0 | ||||
Restricted Cash and Cash Equivalents, Current | 15,000 | $ 15,000 | ||||
Cash, FDIC Insured Amount | $ 250,000 | |||||
Fair Value Inputs, Discount Rate | 15.00% | 15.00% | ||||
Number of Advances | 2 | |||||
Proceeds from Notes Payable | $ 500,000 | |||||
Depreciation, Amortization and Accretion, Net | $ 346,000 | $ 368,000 | ||||
Inventory Valuation Reserves | $ 66,000 | 362,000 | ||||
Other receivable, reserve percentage of credit card sales | 5.00% | |||||
Other Receivables, Net, Current | $ 281,000 | 258,000 | ||||
Deferred Advertising Costs | 14,000 | 24,000 | ||||
Employee Benefits and Share-based Compensation | $ 0 | $ 152,000 | ||||
Deferred Tax Asset, Net, Valuation Allowance, Percent | 100.00% | 100.00% | ||||
Other Accrued Liabilities | $ 430,000 | $ 304,000 | ||||
Provision for Future Warranty Costs | $ 111,000 | 125,000 | ||||
Number of Operating Segments | 2,000 | |||||
Office Equipment [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Computer Equipment [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Leasehold Improvements [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Allowance for Sales Returns [Member] (Deprecated 2018-01-31) | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Customer Refund Liability, Current | $ 293,000 | $ 175,000 | ||||
Maximum [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Returns Reserves Allowance, Percentage | 2.00% | |||||
Minimum [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Returns Reserves Allowance, Percentage | 1.00% | |||||
Employee Stock Option [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 93,000 | |||||
Warrant [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 488,000 | |||||
Scotts Miracle-Gro Company [Member] | Maximum [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 80.00% | |||||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Supplier 1 [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 68.00% | 57.60% | ||||
Cost of Goods and Services Sold | $ 14,700,000 | $ 8,700,000 | ||||
Major Customer 1 [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 30.20% | 40.80% | ||||
Major Customer 1 [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 27.30% | 33.90% | ||||
Major Customer 2 [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 22.30% | 14.30% | ||||
Major Customer 3 [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 11.00% | |||||
Scotts Miracle-Gro Company [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Proceeds from Sale of Intangible Assets | $ 500,000 | |||||
Scotts Miracle-Gro Company [Member] | Maximum [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 80.00% | |||||
Scotts Miracle-Gro Company [Member] | Series B Preferred Stock [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 2,649,007 | |||||
Stock Issued During Period, Value, New Issues | $ 4,000,000 | |||||
Proceeds from Sale of Intangible Assets | $ 500,000 | |||||
Scotts Miracle-Gro Company [Member] | Notes Payable, Other Payables [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 2,000,000 | |||||
Scotts Miracle-Gro Company [Member] | Technology License Agreement [Member] | ||||||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Allowance for Doubtful Accounts Receivable | $ 39,000 | $ 20,000 |
Note 1 - Description of the B26
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Liabilities | ||
Sale of intellectual property liability | $ 65 | $ 90 |
Sale of intellectual property liability | 80 | 117 |
Total | 65 | 90 |
Total | $ 80 | $ 117 |
Note 1 - Description of the B27
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Warrant [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance | $ 0 | $ 644 |
Revaluations prior to exercise | 2,108 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | (2,752) | |
Balance | 0 | |
Other Current Liabilities [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance | 0 | 1,277 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | (6,354) | |
Value of common stock issued for interest on notes payable-related party | (173) | |
Proceeds notes payable-related party | 5,250 | |
Balance | 0 | |
Other Assets [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance | 90 | 117 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | (25) | (27) |
Balance | $ 65 | $ 90 |
Note 1 - Description of the B28
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,897 | $ 4,435 |
Less: accumulated depreciation | (4,386) | (4,020) |
Property and equipment, net | 514 | 415 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,797 | 3,349 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 626 | 612 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 116 | 116 |
Other Capitalized Property Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 358 | $ 358 |
Note 1 - Description of the B29
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Inventory - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Inventory [Abstract] | ||
Finished goods | $ 4,117 | $ 2,274 |
Raw materials | 930 | 647 |
$ 5,047 | $ 2,921 |
Note 1 - Description of the B30
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Advertising Expenses - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | $ 4,750 | $ 3,663 |
Direct-to-consumer [Member] | ||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | 579 | 424 |
Retail [Member] | ||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | 3,412 | 2,533 |
Other Advertising [Member] | ||
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Advertising Expenses [Line Items] | ||
Advertising expense | $ 759 | $ 706 |
Note 1 - Description of the B31
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details) - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee Benefits and Share-based Compensation | $ 0 | $ 152 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee Benefits and Share-based Compensation | 0 | 27 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee Benefits and Share-based Compensation | $ 0 | $ 125 |
Note 2 - Notes Payable and Lo32
Note 2 - Notes Payable and Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 13, 2017 | Oct. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Note 2 - Notes Payable and Long Term Debt (Details) [Line Items] | ||||
Proceeds from Notes Payable | $ 500 | |||
Debt, Current | $ 80 | $ 117 | ||
Scotts Miracle-Gro Company [Member] | ||||
Note 2 - Notes Payable and Long Term Debt (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Notes Payable, Other Payables [Member] | Scotts Miracle-Gro Company [Member] | ||||
Note 2 - Notes Payable and Long Term Debt (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,000 | |||
Debt Instrument, Description | The proceeds will be made available as needed in increments of $500,000 not to exceed $2.0 million | |||
Notes Payable | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Proceeds from Notes Payable | $ 1,000 |
Note 2 - Notes Payable and Lo33
Note 2 - Notes Payable and Long Term Debt (Details) - Schedule of Debt - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Debt [Abstract] | ||
Notes Payable –related party | $ 0 | $ 0 |
Sale of intellectual property liability (see Note 3) | 80 | 117 |
Total debt | 80 | 117 |
Less current portion | 80 | 117 |
Long term debt | $ 0 | $ 0 |
Note 3 - Scotts Miracle-Gro T34
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) - USD ($) | Apr. 22, 2013 | Mar. 31, 2018 | Mar. 31, 2017 |
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Debt, Current | $ 80,000 | $ 117,000 | |
Accrued Liabilities, Current | 2,231,000 | 1,520,000 | |
Scotts Miracle-Gro Company [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Proceeds from Sale of Intangible Assets | $ 500,000 | ||
Scotts Miracle-Gro Company [Member] | Maximum [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 80.00% | ||
Scotts Miracle-Gro Company [Member] | Technology License Agreement [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Royalty, Percentage | 2.00% | ||
Share Price (in Dollars per share) | $ 1.51 | ||
Accrued Liabilities, Current | 648,000 | 472,000 | |
Dividends Payable, Current | 0 | 935,000 | |
Licensing Agreement, Term | 5 years | ||
Scotts Miracle-Gro Company [Member] | Brand License Agreement [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Dividends Payable, Current | $ 0 | $ 1,600,000 | |
Licensing Agreement, Term | 5 years | ||
Licensing Agreement, Payment Terms | amount equal to 5% of incremental growth in annual net sales, as compared to net sales during the fiscal year ended March 31, 2013 | ||
Scotts Miracle-Gro Company [Member] | Supply Chain Service Agreement [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Licensing Agreement, Payment Terms | annual fee equal to 7% of the cost of goods of all products that Scotts Miracle-Gro purchases from the Company or a vendor, in exploiting the Hydroponic IP internationally (outside of the Company Markets) over the course of each contract year during the term of the Securities Purchase Agreement | ||
Scotts Miracle-Gro Company [Member] | Series B Preferred Stock [Member] | |||
Note 3 - Scotts Miracle-Gro Transactions - Convertible Preferred Stock, Warrants and Other Transactions (Details) [Line Items] | |||
Stock Issued During Period, Shares, New Issues (in Shares) | 2,649,007 | ||
Shares Issued, Price Per Share (in Dollars per share) | $ 0.001 | ||
Stock Issued During Period, Value, New Issues | $ 4,000,000 | ||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 2,649,007 | ||
Preferred Stock, Convertible, Conversion Price (in Dollars per share) | $ 1.51 | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount (in Dollars per share) | $ 1.51 | ||
Convertible Preferred Stock, Terms of Conversion | The Series B Preferred Stock automatically converted into the Company’s common stock: (i) upon the affirmative election of the holders of at least a majority of the then outstanding shares of the Series B Preferred Stock voting together as a single class on an as-if-converted to common stock basis; or (ii) if, at the date of exercise in whole or in part of the Warrant, the holder (or holders) of the Series B Preferred Stock own 50.1% of the issued and then-outstanding common stock of the Company, giving effect to the issuance of shares of common stock in connection with the conversion of the Series B Preferred Stock and such exercise of the Warrant. | ||
Class of Warrant or Rights, Exercise Price, Description | (a) an amount equal to (i) 1.34 times the trailing twelve months “Net Sales” (which includes sales of the Company’s products by Scotts Miracle-Gro and its affiliates) minus (ii) “Debt Outstanding” net of cash (as such terms are defined in the Warrant,by(b) the total shares of capital stock outstanding, including outstanding in-the-money options and warrants, but not the Warrant contemplated in this Private Offering. | ||
Proceeds from Sale of Intangible Assets | $ 500,000 |
Note 4 - Equity Compensation 35
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 175,000 | 175,000 | 656,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Exercise Price Range, Lower Range Limit (in Dollars per share) | $ 1.10 | $ 1.10 | $ 1.01 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Exercise Price Range, Upper Range Limit (in Dollars per share) | $ 5.31 | $ 5.31 | $ 5.31 |
Employee Benefits and Share-based Compensation | $ 0 | $ 152,000 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 33,000 | $ 31,000 | |
Equity Compensation Plan (2005 Plan) [Member] | |||
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 13,505,000 |
Note 4 - Equity Compensation 36
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Schedule of Share-based Compensation, Stock Options, Activity - $ / shares | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ||
Options Outstanding (in Shares) | 175,000 | 656,000 |
Options Outstanding, Exercise Price Range, Low Range | $ 1.10 | $ 1.01 |
Options Outstanding, Exercise Price Range, High Range | 5.31 | 5.31 |
Options Outstanding, Weighted Average Exercise Price | $ 3.50 | $ 2.13 |
Options Granted (in Shares) | 0 | 0 |
Options Granted, Exercise Price Range, Low Range | $ 0 | $ 0 |
Options Granted, Exercise Price Range, High Range | 0 | 0 |
Options Granted, Weighted Average Exercise Price | $ 0 | $ 0 |
Options Exercised (in Shares) | 0 | (481,000) |
Options Exercised, Exercise Price Range, Low Range | $ 0 | $ 1.01 |
Options Exercised, Exercise Price Range, High Range | 0 | 2.42 |
Options Exercised, Weighted Average Exercise Price | $ 0 | $ 1.67 |
Options Forfeited (in Shares) | 0 | 0 |
Options Forfeited, Exercise Price Range, Low Range | $ 0 | $ 0 |
Options Forfeited, Exercise Price Range, High Range | 0 | 0 |
Options Forfieted, Weighted Average Exercise Price | $ 0 | $ 0 |
Options Outstanding (in Shares) | 175,000 | 175,000 |
Options Outstanding, Exercise Price Range, Low Range | $ 1.10 | $ 1.10 |
Options Outstanding, Exercise Price Range, High Range | 5.31 | 5.31 |
Options Outstanding, Weighted Average Exercise Price | $ 3.50 | $ 3.50 |
Note 4 - Equity Compensation 37
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | |||
Options Outstanding (in Shares) | 175,000 | 175,000 | 656,000 |
Options Outstanding, Weighted-average Remaining Contractual Life | 343 days | ||
Options Outstanding, Weighted-average Exercise Price | $ 3.50 | $ 3.50 | $ 2.13 |
Options Outstanding, Aggregate Intrinsic Value (in Dollars) | $ 73 | ||
Options Exercise Price $1.10 [Member] | |||
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | |||
Exercise Price | $ 1.10 | ||
Options Outstanding (in Shares) | 50,000 | ||
Options Outstanding, Weighted-average Remaining Contractual Life | 29 days | ||
Options Outstanding, Weighted-average Exercise Price | $ 1.10 | ||
Options Exercise Price $1.55 [Member] | |||
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | |||
Exercise Price | $ 1.55 | ||
Options Outstanding (in Shares) | 11,000 | ||
Options Outstanding, Weighted-average Remaining Contractual Life | 2 years 138 days | ||
Options Outstanding, Weighted-average Exercise Price | $ 1.55 | ||
Options Exercise Price $2.20 [Member] | |||
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | |||
Exercise Price | $ 2.20 | ||
Options Outstanding (in Shares) | 21,000 | ||
Options Outstanding, Weighted-average Remaining Contractual Life | 200 days | ||
Options Outstanding, Weighted-average Exercise Price | $ 2.20 | ||
Options Exercise Price $5.31 [Member] | |||
Note 4 - Equity Compensation Plans and Employee Benefit Plans (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | |||
Exercise Price | $ 5.31 | ||
Options Outstanding (in Shares) | 93,000 | ||
Options Outstanding, Weighted-average Remaining Contractual Life | 1 year 127 days | ||
Options Outstanding, Weighted-average Exercise Price | $ 5.31 |
Note 5 - Income Taxes (Details)
Note 5 - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 21, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Note 5 - Income Taxes (Details) [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 50,000 | |||
Operating Loss Carryforwards | 12,800 | $ 62,200 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 597 | $ 597 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 30.75% | 34.00% |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 8,300 | |||
Foreign Tax Authority [Member] | ||||
Note 5 - Income Taxes (Details) [Line Items] | ||||
Operating Loss Carryforward, Expiration Date | 2,037 | |||
State and Local Jurisdiction [Member] | Minimum [Member] | ||||
Note 5 - Income Taxes (Details) [Line Items] | ||||
Operating Loss Carryforward, Expiration Date | 2,020 | |||
State and Local Jurisdiction [Member] | Maximum [Member] | ||||
Note 5 - Income Taxes (Details) [Line Items] | ||||
Operating Loss Carryforward, Expiration Date | 2,037 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | ||
Federal | $ 0 | $ 0 |
Foreign | 0 | 0 |
State | 1 | 1 |
1 | 1 | |
Deferred: | ||
Federal | 0 | 0 |
Foreign | 0 | 0 |
State | 0 | 0 |
0 | 0 | |
Income tax provision | $ 1 | $ 1 |
Note 5 - Income Taxes (Detai40
Note 5 - Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation | Dec. 22, 2017 | Dec. 21, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
Federal taxes at statutory rate | 21.00% | 35.00% | 30.75% | 34.00% |
State taxes, net of federal benefit | (11.09%) | 0.58% | ||
FMV excess of conversion price | (74.75%) | 5.15% | ||
Warrants Valuation | 0.00% | (15.35%) | ||
Fair Value of Dividend-Paid by Stock | (48.71%) | (15.10%) | ||
Stock Options ISO | 0.00% | (1.03%) | ||
Other Permanent items | 1.87% | (0.13%) | ||
Change in effective tax rate | 353.71% | (0.19%) | ||
Other Adjustments | (12.96%) | (0.68%) | ||
Valuation allowance | (6366.72%) | (6.47%) | ||
Federal NOL Carryforward Reduction | 5110.07% | (0.80%) | ||
State NOL Carryforward Reduction | 655.18% | 0.00% | ||
NOL Created by Tax Stock Comp | 0.00% | (1.22%) | ||
Stock-based compensation | 362.89% | 1.22% | ||
Effective income tax rate | 0.24% | (0.02%) |
Note 5 - Income Taxes (Detai41
Note 5 - Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Non-Current Deferred Tax Assets and Liabilities: | ||
Net Operating Loss | $ 2,697 | $ 22,827 |
R & D credit carryforwards | 597 | 597 |
Intangibles and fixed assets | 64 | 82 |
Accrued compensation | 226 | 175 |
Allowance for bad debt | 10 | 7 |
Reserve for customer returns | 73 | 64 |
Warranty reserve | 27 | 46 |
Reserve for obsolete inventory | 71 | 133 |
Stock-compensation | 72 | 1,405 |
Royalty Payments made with Stock | 462 | 455 |
Other | 29 | 44 |
Prepaid expenses | (70) | (105) |
Valuation allowance | (4,258) | (25,730) |
Non-Current Deferred Tax Assets and Liabilities, Net | $ 0 | $ 0 |
Note 6 - Related Party Transa42
Note 6 - Related Party Transactions (Details) - USD ($) | Apr. 22, 2013 | Mar. 31, 2018 | Sep. 13, 2017 | Jun. 14, 2016 |
Note 6 - Related Party Transactions (Details) [Line Items] | ||||
Revenue from Related Parties | $ 877,000 | |||
Related Party Transaction, Expenses from Transactions with Related Party | 61,000 | |||
Scotts Miracle-Gro Company [Member] | ||||
Note 6 - Related Party Transactions (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Stock Issued During Period, Shares, Other (in Shares) | 2,649,007 | |||
Equity Method Investment, Ownership Percentage | 80.00% | |||
Notes Payable, Other Payables [Member] | Scotts Miracle-Gro Company [Member] | ||||
Note 6 - Related Party Transactions (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 2,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Due to Related Parties, Current | $ 0 |
Note 7 - Commitments and Cont43
Note 7 - Commitments and Contingencies (Details) | Apr. 01, 2018USD ($)ft² | Mar. 31, 2018USD ($)ft² | Mar. 31, 2017USD ($) |
Note 7 - Commitments and Contingencies (Details) [Line Items] | |||
Operating Leases, Rent Expense | $ 311,000 | $ 286,000 | |
Office Space [Member] | Building [Member] | |||
Note 7 - Commitments and Contingencies (Details) [Line Items] | |||
Area of Real Estate Property (in Square Feet) | ft² | 9,868 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 11,000 | ||
Lease Expiration Date | Sep. 30, 2019 | ||
Office Space [Member] | Subsequent Event [Member] | Building [Member] | |||
Note 7 - Commitments and Contingencies (Details) [Line Items] | |||
Area of Real Estate Property (in Square Feet) | ft² | 1,314 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 12,000 | ||
Warehousing, Distribution and Fulfillment Operations, and Seed Pod Kit Manufacturing [Member] | |||
Note 7 - Commitments and Contingencies (Details) [Line Items] | |||
Operating Leases, Rent Expense, Minimum Rentals | $ 10,000 | ||
Description of Lessee Leasing Arrangements, Operating Leases | The Company has extended its agreement with Wildernest Logistics Solutions effective April 17, 2014 for a two-year term with automatic one-year renewals. |
Note 7 - Commitments and Cont44
Note 7 - Commitments and Contingencies (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Mar. 31, 2018USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
March 31, 2019 | $ 160 |
March 31, 2020 | 80 |
$ 240 |
Note 8 - Stockholders' Equity45
Note 8 - Stockholders' Equity (Details) - USD ($) | Apr. 22, 2013 | Aug. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Note 8 - Stockholders' Equity (Details) [Line Items] | ||||
Common Stock, Shares, Outstanding | 34,328,036 | 33,477,287 | ||
Common Stock, Shares, Issued | 34,328,036 | 33,477,287 | ||
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 | ||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Class of Warrant or Rights, Granted | 0 | 0 | ||
Fair Value Inputs, Discount Rate | 15.00% | 15.00% | ||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | ||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Dividends Payable (in Dollars) | $ 0 | $ 49,000 | ||
SMG Growing Media [Member] | ||||
Note 8 - Stockholders' Equity (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Other | 850,749 | |||
Scotts Miracle-Gro Company [Member] | Private Placement Agent [Member] | ||||
Note 8 - Stockholders' Equity (Details) [Line Items] | ||||
Class of Warrant or Rights, Granted | 125,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 1.54 | |||
Class of Warrant or Rights, Exercise Price, Description | 125% of the average closing price of the Company’s common stock during the five-day period prior to the April 22, 2013 closing date | |||
Fair Value of Warrants Issued (in Dollars) | $ 108,000 | |||
Share Price (in Dollars per share) | $ 1.30 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $ 1.54 | |||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term | 3 years | |||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 117.20% | |||
Fair Value Inputs, Discount Rate | 0.39% | |||
Scotts Miracle-Gro Company [Member] | Maximum [Member] | ||||
Note 8 - Stockholders' Equity (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 80.00% | |||
Scotts Miracle-Gro Company [Member] | Series B Preferred Stock [Member] | ||||
Note 8 - Stockholders' Equity (Details) [Line Items] | ||||
Class of Warrant or Rights, Exercise Price, Description | (a) an amount equal to (i) 1.34 times the trailing twelve months “Net Sales” (which includes sales of the Company’s products by Scotts Miracle-Gro and its affiliates) minus (ii) “Debt Outstanding” net of cash (as such terms are defined in the Warrant,by(b) the total shares of capital stock outstanding, including outstanding in-the-money options and warrants, but not the Warrant contemplated in this Private Offering. | |||
Stock Issued During Period, Shares, New Issues | 2,649,007 | |||
Preferred Stock, Convertible, Conversion Price (in Dollars per share) | $ 1.51 | |||
Preferred Stock, Dividend Rate, Percentage | 8.00% |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | ||
Warrants Outstanding | 396 | 444 |
Warrants Outstanding, Weighted Average Exercise Price | $ 6.97 | $ 6.45 |
Warrants Outstanding, Aggregate Intrinsic Value | $ 2 | $ 7 |
Warrants Granted | 0 | 0 |
Warrants Granted, Weighted Average Exercise Price | $ 0 | $ 0 |
Warrants Exercised | 0 | (48) |
Warrants Exercised, Weighted Average Exercise Price | $ 0 | $ 2.10 |
Warrants Expired | (394) | 0 |
Warrants Expired, Weighted Average Exercise Price | $ 7 | $ 0 |
Warrants Outstanding | 2 | 396 |
Warrants Outstanding, Weighted Average Exercise Price | $ 2.10 | $ 6.97 |
Warrants Outstanding, Aggregate Intrinsic Value | $ 5 | $ 2 |
Note 8 - Stockholders' Equity47
Note 8 - Stockholders' Equity (Details) - Schedule of Warrants Outstanding - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Note 8 - Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | |||
Warrants Outstanding | 2 | 396 | 444 |
Weighted Average Exercise Price | $ 2.10 | $ 6.97 | $ 6.45 |
Weighted Average Remaing Life (Yrs) | 281 days | ||
Warrants Exercisable at $2.10 [Member] | |||
Note 8 - Stockholders' Equity (Details) - Schedule of Warrants Outstanding [Line Items] | |||
Warrants Outstanding | 2 | ||
Weighted Average Exercise Price | $ 2.10 | ||
Weighted Average Remaing Life (Yrs) | 281 days |
Note 9 - Segment Information (D
Note 9 - Segment Information (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 9 - Segment Information 49
Note 9 - Segment Information (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 32,298 | $ 23,609 | |
Cost of revenue | 21,598 | 15,044 | |
Gross profit | 10,700 | 8,565 | |
Sales and marketing | 8,071 | 6,125 | |
Consolidated Entities [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 32,298 | 23,609 | |
Cost of revenue | 21,598 | 15,044 | |
Gross profit | $ 10,700 | $ 8,565 | |
Gross profit percentage | 33.10% | 36.30% | |
Sales and marketing | [1] | $ 5,389 | $ 3,983 |
Segment profit | $ 5,311 | $ 4,582 | |
Segment profit percentage | 16.40% | 19.40% | |
Direct-to-consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 8,172 | $ 7,526 | |
Cost of revenue | 5,672 | 4,668 | |
Gross profit | $ 2,500 | $ 2,858 | |
Gross profit percentage | 30.60% | 38.00% | |
Sales and marketing | [1] | $ 129 | $ 129 |
Segment profit | $ 2,371 | $ 2,729 | |
Segment profit percentage | 29.00% | 36.30% | |
Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 24,126 | $ 16,083 | |
Cost of revenue | 15,926 | 10,376 | |
Gross profit | $ 8,200 | $ 5,707 | |
Gross profit percentage | 33.90% | 35.50% | |
Sales and marketing | [1] | $ 3,670 | $ 2,714 |
Segment profit | $ 4,530 | $ 2,993 | |
Segment profit percentage | 18.80% | 18.60% | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 0 | $ 0 | |
Cost of revenue | 0 | 0 | |
Gross profit | $ 0 | $ 0 | |
Gross profit percentage | 0.00% | 0.00% | |
Sales and marketing | [1] | $ 1,590 | $ 1,140 |
Segment profit | $ (1,590) | $ (1,140) | |
Segment profit percentage | 0.00% | 0.00% | |
[1] | Sales and marketing includes advertising, trade shows, media production and promotional products and other as discussed in the sales and marketing section. |