Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 001-11789 | |
Entity Registrant Name | ENCISION INC. | |
Entity Central Index Key | 0000930775 | |
Entity Tax Identification Number | 84-1162056 | |
Entity Incorporation, State or Country Code | CO | |
Entity Address, Address Line One | 6797 Winchester Circle | |
Entity Address, City or Town | Boulder | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80301 | |
City Area Code | (303) | |
Local Phone Number | 444-2600 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ECIA | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,719,543 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash | $ 1,424,208 | $ 1,474,339 |
Accounts receivable, net of allowance for doubtful accounts of $0 at December 31, 2021 and $35,000 at March 31, 2021 | 1,029,015 | 1,024,370 |
Inventories, net of reserve for obsolescence of $42,186 at December 31, 2021 and $70,000 at March 31, 2021 | 1,405,789 | 1,445,134 |
Prepaid expenses and other assets | 149,434 | 154,151 |
Total current assets | 4,008,446 | 4,097,994 |
Equipment: | ||
Furniture, fixtures and equipment, at cost | 2,513,905 | 2,695,297 |
Accumulated depreciation | (2,278,633) | (2,429,580) |
Equipment, net | 235,272 | 265,717 |
Right of use asset | 856,481 | 1,060,971 |
Patents, net of accumulated amortization of $269,482 at December 31, 2021 and $317,821 at March 31, 2021 | 188,722 | 213,368 |
Other assets | 30,574 | 20,496 |
TOTAL ASSETS | 5,319,495 | 5,658,546 |
Current liabilities: | ||
Accounts payable | 531,021 | 389,088 |
Secured notes | 18,400 | 20,397 |
Accrued compensation | 238,919 | 181,686 |
Other accrued liabilities | 136,974 | 282,102 |
Accrued lease liability | 357,083 | 302,978 |
Total current liabilities | 1,282,397 | 1,176,251 |
Long-term liability: | ||
Secured notes | 212,240 | 220,263 |
Accrued lease liability | 648,111 | 926,808 |
Unsecured promissory note | 533,118 | |
Total liabilities | 2,142,748 | 2,856,440 |
Shareholders’ equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding | ||
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 11,679,034 issued and outstanding at December 31, 2021 and 11,582,641 issued and outstanding at March 31, 2021 | 24,303,758 | 24,265,831 |
Accumulated (deficit) | (21,127,011) | (21,463,725) |
Total shareholders’ equity | 3,176,747 | 2,802,106 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 5,319,495 | $ 5,658,546 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 35,000 |
Inventories, reserve for obsolescence | 42,186 | 70,000 |
Accumulated amortization | $ 269,482 | $ 317,821 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock and additional paid-in capital, shares authorized | 100,000,000 | 100,000,000 |
Common stock and additional paid-in capital, shares issued | 11,679,034 | 11,582,641 |
Common stock and additional paid-in capital, shares outstanding | 11,679,034 | 11,582,641 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
NET REVENUE: | ||||
Total revenue | $ 1,944,266 | $ 2,162,600 | $ 6,065,556 | $ 5,390,575 |
COST OF REVENUE: | ||||
Total cost of revenue | 934,945 | 1,057,002 | 3,084,692 | 2,650,507 |
GROSS PROFIT | 1,009,321 | 1,105,598 | 2,980,864 | 2,740,068 |
OPERATING EXPENSES: | ||||
Sales and marketing | 504,709 | 580,477 | 1,594,728 | 1,512,741 |
General and administrative | 326,753 | 372,994 | 993,959 | 998,620 |
Research and development | 194,124 | 139,390 | 584,161 | 443,452 |
Total operating expenses | 1,025,586 | 1,092,861 | 3,172,848 | 2,954,813 |
OPERATING (LOSS) INCOME | (16,265) | 12,737 | (191,984) | (214,745) |
Interest expense, net | (1,806) | (16,380) | (3,359) | (51,021) |
Extinguishment of debt income | 598,567 | 533,118 | 598,567 | |
Other income (expense), net | 2,060 | 4,397 | (1,061) | 136,000 |
Interest expense, extinguishment of debt income and other income (expense), net | 254 | 586,584 | 528,698 | 683,546 |
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES | (16,011) | 599,321 | 336,714 | 468,801 |
Provision for income taxes | ||||
NET (LOSS) INCOME | $ (16,011) | $ 599,321 | $ 336,714 | $ 468,801 |
Net (loss) income per share—basic and diluted | $ 0 | $ 0.05 | $ 0.03 | $ 0.04 |
Weighted average shares—basic | 11,677,921 | 11,582,641 | 11,598,768 | 11,582,641 |
Weighted average shares—diluted | 11,677,921 | 11,708,797 | 12,045,389 | 11,750,349 |
Product [Member] | ||||
NET REVENUE: | ||||
Total revenue | $ 1,733,658 | $ 1,998,979 | $ 5,347,259 | $ 5,093,118 |
COST OF REVENUE: | ||||
Total cost of revenue | 828,153 | 975,581 | 2,728,464 | 2,500,310 |
GROSS PROFIT | 905,505 | 1,023,398 | 2,618,795 | 2,592,808 |
OPERATING EXPENSES: | ||||
OPERATING (LOSS) INCOME | (120,081) | (69,463) | (554,053) | (362,005) |
Service [Member] | ||||
NET REVENUE: | ||||
Total revenue | 210,608 | 163,621 | 718,297 | 297,457 |
COST OF REVENUE: | ||||
Total cost of revenue | 106,792 | 81,421 | 356,228 | 150,197 |
GROSS PROFIT | 103,816 | 82,200 | 362,069 | 147,260 |
OPERATING EXPENSES: | ||||
OPERATING (LOSS) INCOME | $ 103,816 | $ 82,200 | $ 362,069 | $ 147,260 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows (used in) operating activities: | ||
Net income | $ 336,714 | $ 468,801 |
Adjustments to reconcile net income to net cash (used in) operating activities: | ||
Extinguishment of debt income | (533,118) | (598,567) |
Depreciation and amortization | 85,896 | 67,907 |
Stock-based compensation expense related to stock options | 29,832 | 25,014 |
(Recovery from) doubtful accounts, net change | (35,000) | (31,500) |
(Recovery from) provision for inventory obsolescence, net change | (27,814) | 24,000 |
Other income from release of accounts payable | (56,435) | |
Change in operating assets and liabilities: | ||
Right of use asset, net | (20,102) | 67,856 |
Accounts receivable | 30,355 | (130,049) |
Inventories | 67,159 | 80,318 |
Prepaid expenses and other assets | (5,361) | (107,510) |
Accounts payable | 141,933 | 86,766 |
Accrued compensation and other accrued liabilities | (87,895) | 212,394 |
Net cash (used in) generated by operating activities | (17,401) | 108,995 |
Cash flows (used in) investing activities: | ||
Acquisition of property and equipment | (17,550) | (4,144) |
Patent costs | (13,255) | (15,858) |
Net cash (used in) generated by investing activities | (30,805) | (20,002) |
Cash flows from financing activities: | ||
Net proceeds from options exercised | 8,095 | |
Paydown of credit facility, net change | (370,498) | |
(Paydown of) secured notes | (10,020) | |
Unsecured promissory note | 598,567 | |
EIDL loan | 152,000 | |
Net cash (used in) generated by financing activities | (1,925) | 380,069 |
Net (decrease) increase in cash | (50,131) | 469,062 |
Cash, beginning of fiscal year | 1,474,339 | 385,132 |
Cash, end of fiscal quarter | 1,424,208 | 854,194 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | $ 5,418 | $ 34,633 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Note 1. ORGANIZATION AND NATURE OF BUSINESS Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to, and saves lives of, patients undergoing minimally-invasive surgery. We believe that our patented AEM ® We have an accumulated deficit of $ 21,127,011 336,714 8,095 Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals and surgery centers in the United States. We have been actively monitoring the novel coronavirus (“COVID”) situation and its impact globally. Our production facilities continued to operate during the year as they had prior to the COVID pandemic with minimal change, other than for enhanced safety measures intended to prevent the spread of the virus. The remote working arrangements and travel restrictions imposed by various governments had limited impact on our ability to maintain operations during the year, as our manufacturing operations have generally been exempted from stay-at-home orders. However, we cannot predict the impact of the progression of the COVID pandemic on future results due to a variety of factors, including the continued good health of our employees, the ability of suppliers to continue to operate and deliver, our ability and our customers to maintain operations, continued access to transportation resources, the changing needs and priorities of customers, any further government and/or public actions taken in response to the pandemic and ultimately the length of the pandemic. We will continue to closely monitor the COVID pandemic in order to ensure the safety of our people and our ability to serve our customers and patients worldwide. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. Use of Estimates in the Preparation of Financial Statements Cash and Cash Equivalents Fair Value of Financial Instruments Concentration of Credit Risk 250,000 We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The net accounts receivable balance at December 31, 2021 of $ 1,029,015 1,024,370 Inventories Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 1,445,134 Property and Equipment 18,079 47,995 13,277 45,554 Long-Lived Assets Patents Income Taxes no no Revenue Recognition Deferred Revenue 229,167 0 Research and Development Expenses Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2021 was $ 14,104 29,832 8,483 25,014 Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549 Recently Issued Accounting Pronouncements |
Basic and Diluted Income and Lo
Basic and Diluted Income and Loss per Common Share | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income and Loss per Common Share | Note 3. Basic and Diluted Income and Loss per Common Share We report both basic and diluted net income (loss) per share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income or loss for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options to purchase shares where the exercise price was greater than the average market price of common shares for the period. The following table presents the calculation of basic and diluted net income (loss) per share: Schedule of basic and diluted net loss per share Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 30, 2020 Net (loss) income $ (16,011 ) $ 599,321 $ 336,714 $ 468,801 Weighted-average basic shares outstanding 11,677,921 11,582,641 11,598,768 11,582,641 Effect of dilutive securities — 126,156 366,355 167,708 Weighted-average diluted shares 11,819,567 11,745,161 12,045,389 11,750,349 Basic net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Diluted net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Antidilutive employee stock options 1,076,000 909,844 709,645 868,292 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 4. COMMITMENTS AND CONTINGENCIES We have a noncancelable lease agreement for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease expires October 31, 2024. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as either finance or operating leases under previous accounting standards and disclosing key information about leasing arrangements. We adopted Topic 842 on April 1, 2019, using the alternative modified transition method, which requires a cumulative effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. There was no cumulative effect adjustment recorded on April 1, 2019. The primary impact for us was the balance sheet recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases as a lessee. We determine if an arrangement contains a lease at inception. We currently do not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases do not provide an implicit rate. Lease expense is recognized on a straight-line basis over the lease term. The minimum future lease payment, by fiscal year, as of December 31, 2021 is as follows: Schedule of Lease payment Fiscal Year Amount 2022 $ 90,625 2023 372,167 2024 386,667 2025 232,139 Total $ 1,081,598 During January 2021, we canceled our relationship with Crestmark Bank. We had no borrowings and incurred a $20,000 exit fee. On August 4, 2020, we received $ 150,000 150,000 3.75 August 1, 2050 During January 2021, we entered into a note agreement with U.S. Bank for $92,000. The note is for five years at a 5% interest rate and the proceeds were used to purchase equipment. The note is secured by the equipment. On February 8, 2021, we entered into an unsecured promissory note under the PPP for a principal amount of $ 533,118 598,567 598,567 598,567 533,118 The minimum future EIDL payment, by fiscal year, as of December 31, 2021 is as follows: Schedule of EIDL payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 142,693 Total $ 155,780 During January 2021, we entered into a note agreement with U.S. Bank for $92,000. The note is for five years at a 5% interest rate and the proceeds were used to purchase equipment. The note is secured by the equipment. The minimum future principal U.S. Bank payment, by fiscal year, as of December 31, 2021 is as follows: Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 4,600 2023 18,400 2024 18,400 2025 18,400 2026 15,060 Total $ 74,860 Aside from the operating lease, EIDL loan and U.S. Bank loan, we do not have any material contractual commitments requiring settlement in the future. We are subject to regulation by the United States Food and Drug Administration (“FDA”). The FDA provides regulations governing the manufacture and sale of our products and regularly inspects us and other manufacturers to determine compliance with these regulations. We believe that we were in substantial compliance with all known regulations at December 31, 2021. FDA inspections are conducted periodically at the discretion of the FDA. Our latest inspection by the FDA occurred in October 2019. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SHARE-BASED COMPENSATION | Note 5. SHARE-BASED COMPENSATION The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options for the three and nine months ended December 31, 2021 and 2020, which was allocated as follows: Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of sales $ (67 ) $ 917 $ 464 $ 2,751 Sales and marketing 1,816 1,218 4,550 3,653 General and administrative 10,953 5,803 22,408 16,974 Research and development 1,402 545 2,410 1,636 Stock-based compensation expense $ 14,104 $ 8,483 $ 29,832 $ 25,014 Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate and expected dividends. There were 190,000 2,533 17,467 200,000 96,393 58,607 20,000 60,000 110,000 72,000 As of December 31, 2021, approximately $ 135,000 |
RELATED PARTY TRANSACTION
RELATED PARTY TRANSACTION | 9 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | Note 6. RELATED PARTY TRANSACTION We paid consulting fees of $ 15,348 57,764 16,000 45,103 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 7. SUBSEQUENT EVENTS We evaluated all of our activity as of the date the condensed interim financial statements were issued and concluded that no subsequent events have occurred that would require recognition in our financial statements or disclosed in the notes to our condensed interim financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed interim financial statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the opinion of management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Concentration of Credit Risk | Concentration of Credit Risk 250,000 We have no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. We maintain the majority of our cash balances with one financial institution in the form of demand deposits. Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry primarily located in the United States. Accordingly, we may be exposed to credit risk generally associated with the healthcare industry. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The net accounts receivable balance at December 31, 2021 of $ 1,029,015 1,024,370 |
Inventories | Inventories Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 1,445,134 |
Property and Equipment | Property and Equipment 18,079 47,995 13,277 45,554 |
Long-Lived Assets | Long-Lived Assets |
Patents | Patents |
Income Taxes | Income Taxes no no |
Revenue Recognition | Revenue Recognition |
Deferred Revenue | Deferred Revenue 229,167 0 |
Research and Development Expenses | Research and Development Expenses |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense recognized under ASC 718 for the three and nine months ended December 31, 2021 was $ 14,104 29,832 8,483 25,014 |
Segment Reporting | Segment Reporting Schedule of service performs electrical engineering activities for external entities Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Schedule of inventory December 31, 2021 March 31, 2021 Raw materials $ 1,086,031 $ 1,038,094 Finished goods 361,944 477,040 Total gross inventories 1,447,975 1,515,134 Less reserve for obsolescence (42,186 ) (70,000 ) Total net inventories $ 1,405,789 $ 1,445,134 |
Schedule of service performs electrical engineering activities for external entities | Schedule of service performs electrical engineering activities for external entities Three Months Ended December 31, 2021 Nine Months Ended December 31, 2021 Product Service Total Product Service Total Net revenue $ 1,733,658 $ 210,608 $ 1,944,266 $ 5,347,259 $ 718,297 $ 6,065,556 Cost of revenue 828,153 106,792 934,945 2,728,464 356,228 3,084,692 Gross profit 905,505 103,816 1,009,321 2,618,795 362,069 2,980,864 Operating income (loss) (120,081 ) 103,816 (16,265 ) (554,053 ) 362,069 (191,984 ) Depreciation and amortization 32,302 — 32,302 85,896 — 85,896 Patent and capital expenditures 11,382 — 11,382 30,805 — 30,805 Equipment and patents, net $ 423,994 $ — $ 423,994 $ 423,994 $ — $ 423,994 Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Product Service Total Product Service Total Net revenue $ 1,998,979 $ 163,621 $ 2,162,600 $ 5,093,118 $ 297,457 $ 5,390,575 Cost of revenue 975,581 81,421 1,057,002 2,500,310 150,197 2,650,507 Gross profit 1,023,398 82,200 1,105,598 2,592,808 147,260 2,740,068 Operating income (loss) (69,463 ) 82,200 12,737 (362,005 ) 147,260 (214,745 ) Depreciation and amortization 20,584 — 20,584 67,907 — 67,907 Patent and capital expenditures — — — 4,144 — 4,144 Equipment and patents, net $ 387,549 $ — $ 387,549 $ 387,549 $ — $ 387,549 |
Basic and Diluted Income and _2
Basic and Diluted Income and Loss per Common Share (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | Schedule of basic and diluted net loss per share Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 30, 2020 Net (loss) income $ (16,011 ) $ 599,321 $ 336,714 $ 468,801 Weighted-average basic shares outstanding 11,677,921 11,582,641 11,598,768 11,582,641 Effect of dilutive securities — 126,156 366,355 167,708 Weighted-average diluted shares 11,819,567 11,745,161 12,045,389 11,750,349 Basic net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Diluted net income (loss) per share $ 0.00 $ 0.05 $ 0.03 $ 0.04 Antidilutive employee stock options 1,076,000 909,844 709,645 868,292 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Lease Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of Lease payment Fiscal Year Amount 2022 $ 90,625 2023 372,167 2024 386,667 2025 232,139 Total $ 1,081,598 |
E I D L Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of EIDL payment Fiscal Year Amount 2022 — 2023 3,091 2024 3,208 2025 3,331 2026 3,457 Thereafter 142,693 Total $ 155,780 |
U S Bank Payment [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of principal U.S. Bank payment | Schedule of principal U.S. Bank payment Fiscal Year Amount 2022 4,600 2023 18,400 2024 18,400 2025 18,400 2026 15,060 Total $ 74,860 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of summarizes stock-based compensation | Schedule of summarizes stock-based compensation Three Months Ended Nine Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of sales $ (67 ) $ 917 $ 464 $ 2,751 Sales and marketing 1,816 1,218 4,550 3,653 General and administrative 10,953 5,803 22,408 16,974 Research and development 1,402 545 2,410 1,636 Stock-based compensation expense $ 14,104 $ 8,483 $ 29,832 $ 25,014 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 21,127,011 | $ 21,463,725 | |
Net income | 336,714 | $ 468,801 | |
Stock options exercised | $ 8,095 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,086,031 | $ 1,038,094 |
Finished goods | 361,944 | 477,040 |
Total gross inventories | 1,447,975 | 1,515,134 |
Less reserve for obsolescence | (42,186) | (70,000) |
Total net inventories | $ 1,405,789 | $ 1,445,134 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||||
Net revenue | $ 1,944,266 | $ 2,162,600 | $ 6,065,556 | $ 5,390,575 |
Cost of revenue | 934,945 | 1,057,002 | 3,084,692 | 2,650,507 |
Gross profit | 1,009,321 | 1,105,598 | 2,980,864 | 2,740,068 |
Operating income (loss) | (16,265) | 12,737 | (191,984) | (214,745) |
Depreciation and amortization | 32,302 | 20,584 | 85,896 | 67,907 |
Patent and capital expenditures | 11,382 | 30,805 | 4,144 | |
Equipment and patents, net | 423,994 | 387,549 | 423,994 | 387,549 |
Product [Member] | ||||
Product Information [Line Items] | ||||
Net revenue | 1,733,658 | 1,998,979 | 5,347,259 | 5,093,118 |
Cost of revenue | 828,153 | 975,581 | 2,728,464 | 2,500,310 |
Gross profit | 905,505 | 1,023,398 | 2,618,795 | 2,592,808 |
Operating income (loss) | (120,081) | (69,463) | (554,053) | (362,005) |
Depreciation and amortization | 32,302 | 20,584 | 85,896 | 67,907 |
Patent and capital expenditures | 11,382 | 30,805 | 4,144 | |
Equipment and patents, net | 423,994 | 387,549 | 423,994 | 387,549 |
Service [Member] | ||||
Product Information [Line Items] | ||||
Net revenue | 210,608 | 163,621 | 718,297 | 297,457 |
Cost of revenue | 106,792 | 81,421 | 356,228 | 150,197 |
Gross profit | 103,816 | 82,200 | 362,069 | 147,260 |
Operating income (loss) | 103,816 | 82,200 | 362,069 | 147,260 |
Depreciation and amortization | ||||
Patent and capital expenditures | ||||
Equipment and patents, net |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | |||||
Federally insured limit | $ 250,000 | $ 250,000 | |||
Accounts receivable | 1,029,015 | 1,029,015 | $ 1,024,370 | ||
Depreciation expense | 18,079 | $ 13,277 | 47,995 | $ 45,554 | |
Unrecognized tax benefits | 0 | 0 | |||
Uncertain tax positions | 0 | 0 | |||
Deferred revenue | 229,167 | 229,167 | $ 0 | ||
Stock based compensation | $ 14,104 | $ 8,483 | $ 29,832 | $ 25,014 |
BASIC AND DILUTED INCOME AND _3
BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (16,011) | $ 599,321 | $ 336,714 | $ 468,801 |
Weighted-average basic shares outstanding | 11,677,921 | 11,582,641 | 11,598,768 | 11,582,641 |
Effect of dilutive securities | 126,156 | 366,355 | 167,708 | |
Weighted-average diluted shares | 11,819,567 | 11,745,161 | 12,045,389 | 11,750,349 |
Basic net income (loss) per share | $ 0 | $ 0.05 | $ 0.03 | $ 0.04 |
Diluted net income (loss) per share | $ 0 | $ 0.05 | $ 0.03 | $ 0.04 |
Antidilutive employee stock options | 1,076,000 | 909,844 | 709,645 | 868,292 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - Lease Payment [Member] | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 90,625 |
2023 | 372,167 |
2024 | 386,667 |
2025 | 232,139 |
Total | $ 1,081,598 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) - E I D L Payment [Member] | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | |
2023 | 3,091 |
2024 | 3,208 |
2025 | 3,331 |
2026 | 3,457 |
Thereafter | 142,693 |
Total | $ 155,780 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details 2) - U S Bank Payment [Member] | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 4,600 |
2023 | 18,400 |
2024 | 18,400 |
2025 | 18,400 |
2026 | 15,060 |
Total | $ 74,860 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Aug. 04, 2021 | Aug. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 08, 2021 | Apr. 17, 2020 |
S B A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceed from loan | $ 150,000 | |||||
E I D L [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 150,000 | |||||
Interest rate | 3.75% | |||||
Debt Instrument, Maturity Date | Aug. 1, 2050 | |||||
P P P Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 533,118 | $ 598,567 | ||||
Debt Forgiveness | $ 598,567 | |||||
Extinguishment of debt income | $ 533,118 | $ 598,567 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation expense related to grants of employee stock options | $ 14,104 | $ 8,483 | $ 29,832 | $ 25,014 |
Cost of Sales [Member] | ||||
Stock-based compensation expense related to grants of employee stock options | (67) | 917 | 464 | 2,751 |
Selling and Marketing Expense [Member] | ||||
Stock-based compensation expense related to grants of employee stock options | 1,816 | 1,218 | 4,550 | 3,653 |
General and Administrative Expense [Member] | ||||
Stock-based compensation expense related to grants of employee stock options | 10,953 | 5,803 | 22,408 | 16,974 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense related to grants of employee stock options | $ 1,402 | $ 545 | $ 2,410 | $ 1,636 |
SHARE-BASED COMPENSATION (Det_2
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||||
Stock options granted | 190,000 | 20,000 | 200,000 | 110,000 |
Number of shares exercised | 2,533 | 96,393 | ||
Stock options forfeited | 17,467 | 60,000 | 58,607 | 72,000 |
Unrecognized compensation costs | $ 135,000 | $ 135,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees paid | $ 15,348 | $ 16,000 | $ 57,764 | $ 45,103 |