• Filing Date: 2018-08-20
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
Document And Entity Information - shares
3 Months Ended
Jun. 30, 2018
Aug. 20, 2018
Document Information [Line Items]    
Entity Registrant Name ADM TRONICS UNLIMITED, INC.  
Entity Central Index Key 0000849401  
Trading Symbol admt  
Current Fiscal Year End Date --03-31  
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Entity Common Stock, Shares Outstanding (in shares)   67,588,504
Document Type 10-Q  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.10.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Jun. 30, 2018
Mar. 31, 2018
ASSETS    
Cash and cash equivalents $ 1,558,624 $ 1,693,532
Accounts receivable, net of allowance for doubtful accounts of $125,000 1,253,142 1,207,493
Inventories 288,783 201,023
Prepaid expenses and other current assets 24,397 8,522
Total current assets 3,124,946 3,110,570
Property and equipment, net of accumulated depreciation of $79,909 and $70,440, at June 30, 2018 and March 31, 2018, respectively 123,651 133,120
Inventories - long-term portion 111,051 111,051
Intangible assets, net of accumulated amortization of $10,988 and $10,639, at June 30, 2018 and March 31, 2018, respectively 9,946 10,295
Other assets 91,164 91,464
Deferred tax asset 1,095,634 1,095,634
Total other assets 1,431,446 1,441,564
Total assets 4,556,392 4,552,134
Current liabilities:    
Capital lease payable 31,196 31,196
Line of credit 35,000
Accounts payable 258,545 286,964
Accrued expenses and other current liabilities 125,518 149,382
Customer deposits 122,167 122,167
Due to stockholder 137,522 130,551
Total current liabilities 709,948 720,260
Long-term liabilities    
Capital lease payable, net of current portion 46,590 54,637
Total liabilities 756,538 774,897
Stockholders' equity:    
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,504 shares issued and outstanding 33,794 33,794
Additional paid-in capital 33,294,069 33,294,069
Accumulated deficit (29,528,009) (29,550,626)
Total stockholders' equity 3,799,854 3,777,237
Total liabilities and stockholders' equity $ 4,556,392 $ 4,552,134
v3.10.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
Jun. 30, 2018
Mar. 31, 2018
Allowance for doubtful accounts $ 125,000 $ 125,000
Property and equipment, accumulated depreciation 79,909 70,440
Intangible assets, accumulated amortization $ 10,988 $ 10,639
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 5,000,000 5,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0005 $ 0.0005
Common stock, authorized (in shares) 150,000,000 150,000,000
Common stock, issued (in shares) 67,588,504 67,588,504
Common stock, outstanding (in shares) 67,588,504 67,588,504
v3.10.0.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Net revenues $ 756,967 $ 1,146,355
Cost of sales 304,421 620,795
Gross profit 452,546 525,560
Operating expenses:    
Research and development 109,868 149,957
Selling, general and administrative 320,025 364,371
Depreciation and amortization 5,557 7,491
Total operating expenses 435,450 521,819
Income from operations 17,096 3,741
Other income (expense):    
Interest income 6,249 1,620
Interest expense (728) (728)
Total other income (expense) 5,521 892
Income before provision for income taxes 22,617 4,633
Provision for income taxes:    
Current 2,000
Total provision for income taxes 2,000
Net income $ 22,617 $ 2,633
Basic and diluted earnings per common share: (in dollars per share) $ 0 $ 0
Weighted average shares of common stock outstanding - basic (in shares) 67,588,504 67,588,504
Weighted average shares of common stock outstanding - diluted (in shares) 67,588,504 67,588,504
v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net income $ 22,617 $ 2,633
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 9,818 11,223
Changes in operating assets and liabilities balances:    
Accounts receivable (45,649) (165,615)
Inventories (87,760) 83,677
Prepaid expenses and other current assets (15,575) 29,511
Accounts payable (28,419) (93,824)
Accrued expenses and other current liabilities (23,864) (6,962)
Net cash used in operating activities (168,832) (139,357)
Cash flows provided by (used) in financing activities:    
Repayments on capital lease payable (8,047) (4,733)
Borrowing on line of credit 35,000
Borrowings from (repayments to) stockholder 6,971 (87,863)
Net cash provided by (used in) financing activities 33,924 (92,596)
Net decrease in cash and cash equivalents (134,908) (231,953)
Cash and cash equivalents - beginning of period 1,693,532 1,982,276
Cash and cash equivalents - end of period 1,558,624 1,750,323
Cash paid for:    
Interest $ 728 $ 728
v3.10.0.1
Note 1 - Nature of Business
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE 
1
 - NATURE OF BUSINESS
 
ADM Tronics Unlimited, Inc., incorporated under the laws of the state of Delaware on 
November 24, 1969,
and subsidiary (collectively, "we", "us", the “Company" or "ADM"), is a technology-based developer and manufacturer of diversified lines of products and derive revenues from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services.
 
The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to generally accepted accounting principles in the United States and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 
10
-Q and Regulation S-
X.
 The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended 
March 31, 2018 
as disclosed in our annual report on Form 
10
-K for that year. The operating results and cash flows for the
three
months ended 
June 30, 2018 (
unaudited) are 
not
 necessarily indicative of the results to be expected for the pending full year ending 
March 31, 2019. 
v3.10.0.1
Note 2 - Significant Accounting Policies
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
NOTE 
2
 - SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
 
The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
 
USE OF ESTIMATES
 
These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  
 
REVENUE RECOGNITION
 
CHEMICAL PRODUCTS:
 
Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when 
no
 right of return exists.
  
ELECTRONICS: 
 
We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 
90
-day warranty on our electronics products and a limited 
5
-year warranty on our electronic controllers for spas and hot tubs. We have 
no
 other post shipment obligations. Based on prior experience, 
no
 amounts have been accrued for potential warranty costs and actual costs were less than 
$2,000,
 for each of the 
three
months ended
June 30, 2018
and
2017.
 For contract manufacturing, revenues are recognized after shipment of the completed products. 
 
ENGINEERING SERVICES: 
 
We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided. 
 
EARNINGS PER SHARE
 
Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.
  
Per share basic and diluted earnings amounted to 
$0.00
 for both the 
three
 months ended 
June 30, 2018
and
June 30, 2017, 
respectively. There were 
3,000,000
 common stock equivalents at 
June 30, 2018
and
2017,
 respectively.
 
RECENT ACCOUNTING PRONOUNCEMENTS
 
Effective
April 1, 2018
the Company adopted ASC Topic
606
“Revenue from Contracts with Customers”, using the modified retrospective method. This guidance supersedes nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. Based on the new guidance, the Company will continue recognizing revenue at the time it’s products are shipped, and therefore adoption of the standard did
not
have a material impact on its financial statements and is
not
expected to have a material impact in the future.
 
In
July 2015,
the FASB issued ASU
2015
-
11,
“ Inventory. Simplifying the Measurement of Inventory.” This amendment requires companies to measure inventory at the lower of cost and net realizable value. The Company adopted this amendment in
April 2017,
and the implementation did
not
have a material impact on the Company's financial statements.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
“Leases”, which is intended to improve financial reporting for lease transactions. This ASU will require organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than
12
months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. This ASU will also require disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures will include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. This ASU will be adopted by the Company in
April 2019.
We do
not
believe that this ASU will have a material impact on our financial statements.
 
In
June 2016,
the FASB issued ASU-
2016
-
13
“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are
not
accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after
December 15, 2019.
The Company is evaluating the potential impact on the Company’s financial statements.
 
In
February 2018,
the FASB issued ASU
2018
-
02,
“Income Statement- Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income due to the reduction in the corporate income tax rate resulting from the
2017
Tax Cuts and Jobs Act. This amendment is effective for all organizations for fiscal years beginning after
December 15, 2018
and interim periods within those fiscal years. Early adoption is allowed. We do
not
believe that this ASU will have a material impact on our financial statements.
 
In
June 2018,
the FASB issued ASU
2018
-
07,
“Stock Compensation (Topic
718
): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance intends to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. This amendment is effective for public companies with fiscal years beginning after
December 15, 2018,
include interim period within that fiscal year. Early adoption is permitted. This ASU does
not
apply to the company at this time.
 
Management does
not
believe that any other recently issued, but
not
yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.
 
v3.10.0.1
Note 3 - Inventories
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Inventory Disclosure [Text Block]
NOTE 
3
 - INVENTORIES
       
 
Inventories at
June 30, 2018
consisted of the following:
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
209,879
    $
109,908
    $
319,787
 
Finished goods
   
78,904
     
1,143
     
80,047
 
    $
288,783
    $
111,051
    $
399,834
 
 
Inventories at
March 31, 2018
consisted of the following:
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
168,640
    $
110,433
    $
279,073
 
Finished goods
   
32,383
     
618.00
     
33,001
 
    $
201,023
    $
111,051
    $
312,074
 
 
The Company values its inventories at the lower of cost and net realizable value using the 
first
 in, 
first
 out (“FIFO”) method.
 
v3.10.0.1
Note 4 - Concentrations
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE 
4
 – CONCENTRATIONS
 
During the 
three
 months ended  
June 30, 2018 
two
 customers accounted for 
52%
 of our net revenue. During the 
three
 months ended 
June 30, 2017 
two
 customers accounted for 
60%
 of our net revenue.
 
As of 
June 30, 2018, 
three
 customers represented 
97%
 of our accounts receivable.
 
As of 
March 31, 2018, 
two
 customers represented 
93%
 of our accounts receivable.
 
The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the
three
months ended
June 30, 2018
was
$101,965
or
13%
 
Revenues from foreign customers represented
$68,381
of net revenue or
6%
for the
three
months ended
June 30, 2017
 
As of  
June 30, 2018, 
and 
March 31, 2018, 
accounts receivable included 
$32,251
 and 
$39,995,
 respectively, from foreign customers.
v3.10.0.1
Note 5 - Net Revenues and Segment Information
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
NOTE 
5
 -
Net Revenues and Segment Information
 
No
sales to an individual customer or country other than the U.S. accounted for more than
10%
of net revenue during the
three
months ended
June 30, 2018
and
2017.
  Net revenue, classified by geography, is as follows:
 
   
Three Months Ended
 
   
June 30,
 
   
2018
   
2017
 
Net revenue - in the U.S.
  $
655,002
    $
1,077,974
 
Net revenue - outside the U.S.
   
101,965
     
68,381
 
    $
756,967
    $
1,146,355
 
 
Net revenue by products and services is as follows:
 
   
Three Months Ended
 
   
June 30,
 
   
2018
   
2017
 
Net revenue - products
  $
508,137
    $
801,947
 
Net revenue - services
   
248,830
     
344,408
 
    $
756,967
    $
1,146,355
 
 
Net revenue by segment is as follows:
 
   
Chemical
   
Electronics
   
Engineering
   
Total
 
Three months ended June 30, 2018
                               
Revenue from external customers
  $
359,171
    $
148,966
    $
248,830
    $
756,967
 
Segment operating income
  $
40,575
    $
(62,843
)   $
39,364
    $
17,096
 
                                 
Three months ended June 30, 2017
                               
Revenue from external customers
  $
308,355
    $
493,592
    $
344,408
    $
1,146,355
 
Segment operating income
  $
65,446
    $
(140,271
)   $
78,566
    $
3,741
 
                                 
Total assets at June 30, 2018   $
2,161,949
    $
896,667
    $
1,497,776
    $
4,556,392
 
                                 
Total assets at March 31, 2018   $
1,687,276
    $
1,280,908
    $
1,583,950
    $
4,552,134
 
 
v3.10.0.1
Note 6 - Options Outstanding
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
 
NOTE 
6
 - OPTIONS OUTSTANDING
 
 
On 
September 2, 2015, 
ADM granted 
3,000,000
 stock options to employees at an exercise price of 
$0.20
 per option and with a term of 
three
 years. The options were valued at 
$598,699
 using the Black Scholes option pricing model with the following assumptions: risk free interest rate of 
2.03%,
 volatility of 
353%,
 estimated useful life of 
3
 years and dividend rate of 
0%.
 
 
The following table summarizes information on all common share purchase options issued by us for the
three
month period ended
June 30, 2018 
and the year ended
March 31, 2018.
  
   
June 30, 2018
   
March 31, 2018
 
   
# of Shares
   
Weighted
Average
Exercise Price
   
# of Shares
   
Weighted
Average
Exercise Price
 
                                 
Outstanding, beginning of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Issued
   
-
     
-
     
-
     
-
 
                                 
Exercised
   
-
     
-
     
-
     
-
 
                                 
Expired
   
 -
     
-
     
-
     
-
 
                                 
Outstanding, end of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Exercisable, end of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
v3.10.0.1
Note 7 - Commitments and Contingencies
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
 
NOTE 
7
 - COMMITMENTS AND CONTINGENCIES
 
We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on 
June 30, 
2028.
 The Company’s future minimum lease commitment at 
June 30, 2018 
is as follows: 
 
For the twelve-month period ended June 30,
 
Amount
 
2019
  $
101,875
 
2020
   
101,875
 
2021
   
101,875
 
2022
   
101,875
 
2023
   
101,875
 
Thereafter
   
534,375
 
         
    $
1,043,750
 
 
Rent and real estate tax expense for all facilities for the 
three
months ended
June 30, 2018
and
2017
 was approximately 
$35,000
and
$32,000,
respectively. 
 
On 
December 2, 2016, 
the Company entered into a capital lease agreement with a commercial bank in the amount of 
$85,680,
 including 
$6,930
 in deferred interest, for the purchase of certain property and equipment. The lease has a term of 
forty-eight
 (
48
) months and is payable in 
forty-eight
 equal installments of 
$1,785.
 The balance of this obligation as of  
June 30, 2018, 
was 
$47,578.
 
On 
December 2, 2016, 
the Company entered into a capital lease agreement with a commercial bank in the amount of 
$54,710,
 including 
$4,710
 in deferred interest, for the purchase of certain property and equipment. The lease has a term of 
forty-eight
 (
48
) months and is payable in 
forty-eight
 equal installments of 
$1,139.
 The balance of this obligation as of  
June 30, 2018, 
was 
$30,208.
 
 
v3.10.0.1
Note 8 - Line of Credit
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
NOTE 
8
– LINE OF CREDIT
 
On
June 15, 2018,
the Company obtained an unsecured revolving line of credit, with a limit of
$400,000.
  The line expires
May 16, 2019
,
renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of
5.37%.
  Any unpaid principal will be due upon maturity.  At
June 30, 2018,
the outstanding balance was
$35,000.
v3.10.0.1
Note 9 - Income Taxes
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE 
9
 
- INCOME TAXES
 
At  
June 30, 2018, 
the Company had federal net operating loss carry-forwards ("NOL")'s of approximately 
$1,950,000.
 
These NOLs 
may 
be used to offset future taxable income and thereby reduce or eliminate our federal income taxes otherwise payable. A valuation allowance is provided when it is more likely than 
not
 that some portion or all of the deferred tax assets will 
not
 be realized. Ultimate utilization of such NOLs and research and development credits is dependent upon the Company's ability to generate taxable income in future periods and 
may 
be significantly curtailed if a significant change in
 
ownership occurs.
  
The Company provides a partial valuation allowance for the deferred tax asset resulting from the uncertainty that the stock-based compensation will be deductible. During the 
three
 months ended 
June 30, 2018, 
the Company utilized approximately 
$22,000
 in net operating losses and expects to utilize the entire 
$1,950,000
 before expiration.
 
The effective rates were approximately 
0%
 for the 
three
months ended
June 30, 2018
and
2017,
 respectively.
v3.10.0.1
Note 10 - Due to Stockholder
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Compensation Related Costs, General [Text Block]
NOTE 
10
 – DUE TO STOCKHOLDER
 
The Company’s President has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are 
no
 repayment terms or interest accruing on this liability.
v3.10.0.1
Note 11 - Restatements
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
NOTE 
1
1
 –
RESTATEMENTS
 
During the audit of
March 31, 2018,
it was discovered that there were certain inventory and segment allocation errors during the previous quarters. The
June 2017
condensed consolidated statements of income and cash flows reflects these restatements.
v3.10.0.1
Note 12 - Subsequent Events
3 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Subsequent Events [Text Block]
NOTE 
1
2
 – SUBSEQUENT EVENTS
 
We evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date and determined that there are 
no
 events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements. 
v3.10.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
PRINCIPLES OF CONSOLIDATION
 
The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]
USE OF ESTIMATES
 
These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  
Revenue Recognition, Policy [Policy Text Block]
REVENUE RECOGNITION
 
CHEMICAL PRODUCTS:
 
Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when 
no
 right of return exists.
  
ELECTRONICS: 
 
We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 
90
-day warranty on our electronics products and a limited 
5
-year warranty on our electronic controllers for spas and hot tubs. We have 
no
 other post shipment obligations. Based on prior experience, 
no
 amounts have been accrued for potential warranty costs and actual costs were less than 
$2,000,
 for each of the 
three
months ended
June 30, 2018
and
2017.
 For contract manufacturing, revenues are recognized after shipment of the completed products. 
 
ENGINEERING SERVICES: 
 
We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided. 
Earnings Per Share, Policy [Policy Text Block]
EARNINGS PER SHARE
 
Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.
  
Per share basic and diluted earnings amounted to 
$0.00
 for both the 
three
 months ended 
June 30, 2018
and
June 30, 2017, 
respectively. There were 
3,000,000
 common stock equivalents at 
June 30, 2018
and
2017,
 respectively.
New Accounting Pronouncements, Policy [Policy Text Block]
RECENT ACCOUNTING PRONOUNCEMENTS
 
Effective
April 1, 2018
the Company adopted ASC Topic
606
“Revenue from Contracts with Customers”, using the modified retrospective method. This guidance supersedes nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. Based on the new guidance, the Company will continue recognizing revenue at the time it’s products are shipped, and therefore adoption of the standard did
not
have a material impact on its financial statements and is
not
expected to have a material impact in the future.
 
In
July 2015,
the FASB issued ASU
2015
-
11,
“ Inventory. Simplifying the Measurement of Inventory.” This amendment requires companies to measure inventory at the lower of cost and net realizable value. The Company adopted this amendment in
April 2017,
and the implementation did
not
have a material impact on the Company's financial statements.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
“Leases”, which is intended to improve financial reporting for lease transactions. This ASU will require organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than
12
months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. This ASU will also require disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures will include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. This ASU will be adopted by the Company in
April 2019.
We do
not
believe that this ASU will have a material impact on our financial statements.
 
In
June 2016,
the FASB issued ASU-
2016
-
13
“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are
not
accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after
December 15, 2019.
The Company is evaluating the potential impact on the Company’s financial statements.
 
In
February 2018,
the FASB issued ASU
2018
-
02,
“Income Statement- Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income due to the reduction in the corporate income tax rate resulting from the
2017
Tax Cuts and Jobs Act. This amendment is effective for all organizations for fiscal years beginning after
December 15, 2018
and interim periods within those fiscal years. Early adoption is allowed. We do
not
believe that this ASU will have a material impact on our financial statements.
 
In
June 2018,
the FASB issued ASU
2018
-
07,
“Stock Compensation (Topic
718
): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance intends to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. This amendment is effective for public companies with fiscal years beginning after
December 15, 2018,
include interim period within that fiscal year. Early adoption is permitted. This ASU does
not
apply to the company at this time.
 
Management does
not
believe that any other recently issued, but
not
yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.
v3.10.0.1
Note 3 - Inventories (Tables)
3 Months Ended
Jun. 30, 2018
Notes Tables  
Schedule Of Inventory [Table Text Block]
   
Current
   
Long Term
   
Total
 
Raw materials
  $
209,879
    $
109,908
    $
319,787
 
Finished goods
   
78,904
     
1,143
     
80,047
 
    $
288,783
    $
111,051
    $
399,834
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
168,640
    $
110,433
    $
279,073
 
Finished goods
   
32,383
     
618.00
     
33,001
 
    $
201,023
    $
111,051
    $
312,074
 
v3.10.0.1
Note 5 - Net Revenues and Segment Information (Tables)
3 Months Ended
Jun. 30, 2018
Notes Tables  
Revenue from External Customers by Geographic Areas [Table Text Block]
   
Three Months Ended
 
   
June 30,
 
   
2018
   
2017
 
Net revenue - in the U.S.
  $
655,002
    $
1,077,974
 
Net revenue - outside the U.S.
   
101,965
     
68,381
 
    $
756,967
    $
1,146,355
 
Revenue from External Customers by Products and Services [Table Text Block]
   
Three Months Ended
 
   
June 30,
 
   
2018
   
2017
 
Net revenue - products
  $
508,137
    $
801,947
 
Net revenue - services
   
248,830
     
344,408
 
    $
756,967
    $
1,146,355
 
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   
Chemical
   
Electronics
   
Engineering
   
Total
 
Three months ended June 30, 2018
                               
Revenue from external customers
  $
359,171
    $
148,966
    $
248,830
    $
756,967
 
Segment operating income
  $
40,575
    $
(62,843
)   $
39,364
    $
17,096
 
                                 
Three months ended June 30, 2017
                               
Revenue from external customers
  $
308,355
    $
493,592
    $
344,408
    $
1,146,355
 
Segment operating income
  $
65,446
    $
(140,271
)   $
78,566
    $
3,741
 
                                 
Total assets at June 30, 2018   $
2,161,949
    $
896,667
    $
1,497,776
    $
4,556,392
 
                                 
Total assets at March 31, 2018   $
1,687,276
    $
1,280,908
    $
1,583,950
    $
4,552,134
 
v3.10.0.1
Note 6 - Options Outstanding (Tables)
3 Months Ended
Jun. 30, 2018
Notes Tables  
Share-based Compensation, Stock Options, Activity [Table Text Block]
   
June 30, 2018
   
March 31, 2018
 
   
# of Shares
   
Weighted
Average
Exercise Price
   
# of Shares
   
Weighted
Average
Exercise Price
 
                                 
Outstanding, beginning of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Issued
   
-
     
-
     
-
     
-
 
                                 
Exercised
   
-
     
-
     
-
     
-
 
                                 
Expired
   
 -
     
-
     
-
     
-
 
                                 
Outstanding, end of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Exercisable, end of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
v3.10.0.1
Note 7 - Commitments and Contingencies (Tables)
3 Months Ended
Jun. 30, 2018
Notes Tables  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
For the twelve-month period ended June 30,
 
Amount
 
2019
  $
101,875
 
2020
   
101,875
 
2021
   
101,875
 
2022
   
101,875
 
2023
   
101,875
 
Thereafter
   
534,375
 
         
    $
1,043,750
 
v3.10.0.1
Note 2 - Significant Accounting Policies (Details Textual) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Earnings Per Share, Basic and Diluted, Total $ 0 $ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 3,000,000 3,000,000
Maximum [Member]    
Product Warranty Expense $ 2,000 $ 2,000
Electronic Products [Member]    
Warranty Term 90 days  
Electronic Controllers for Spas and Hot Tubs [Member]    
Warranty Term 5 years  
v3.10.0.1
Note 3 - Inventories - Summary of Inventory (Details) - USD ($)
Jun. 30, 2018
Mar. 31, 2018
Raw materials $ 319,787 $ 279,073
Finished goods 80,047 33,001
399,834 312,074
Current [Member]    
Raw materials 209,879 168,640
Finished goods 78,904 32,383
288,783 201,023
Long Term [Member    
Raw materials 109,908 110,433
Finished goods 1,143 618
$ 111,051 $ 111,051
v3.10.0.1
Note 4 - Concentrations (Details Textual)
3 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2018
USD ($)
Revenue from Contract with Customer, Including Assessed Tax $ 756,967 $ 1,146,355  
Accounts Receivable, Net, Current, Total 1,253,142   $ 1,207,493
Foreign Customers [Member]      
Accounts Receivable, Net, Current, Total $ 32,251   $ 39,995
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]      
Concentration Risk, Number of Customers 2 2  
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Two Customers [Member]      
Concentration Risk, Percentage 52.00% 60.00%  
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Foreign Customers [Member]      
Concentration Risk, Percentage 13.00% 6.00%  
Revenue from Contract with Customer, Including Assessed Tax $ 101,965 $ 68,381  
Customer Concentration Risk [Member] | Accounts Receivable [Member]      
Concentration Risk, Number of Customers 3   2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member]      
Concentration Risk, Percentage     93.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customers [Member]      
Concentration Risk, Percentage 97.00%    
v3.10.0.1
Note 5 - Net Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Revenue from external customers $ 756,967 $ 1,146,355
UNITED STATES    
Revenue from external customers 655,002 1,077,974
Non-US [Member]    
Revenue from external customers $ 101,965 $ 68,381
v3.10.0.1
Note 5 - Net Revenues and Segment Information - Net Revenue by Products and Services (Details) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Revenue from external customers $ 756,967 $ 1,146,355
Product [Member]    
Revenue from external customers 508,137 801,947
Service [Member]    
Revenue from external customers $ 248,830 $ 344,408
v3.10.0.1
Note 5 - Net Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2018
Revenue from external customers $ 756,967 $ 1,146,355  
Segment operating income 17,096 3,741  
Total assets 4,556,392   $ 4,552,134
Chemical [Member]      
Revenue from external customers 359,171 308,355  
Segment operating income 40,575 65,446  
Total assets 2,161,949   1,687,276
Electronics [Member]      
Revenue from external customers 148,966 493,592  
Segment operating income (62,843) (140,271)  
Total assets 896,667   1,280,908
Engineering [Member]      
Revenue from external customers 248,830 344,408  
Segment operating income 39,364 $ 78,566  
Total assets $ 1,497,776   $ 1,583,950
v3.10.0.1
Note 6 - Options Outstanding (Details Textual) - USD ($)
3 Months Ended 12 Months Ended
Sep. 02, 2015
Jun. 30, 2018
Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 3,000,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 0.20
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 598,699    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 2.03%    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate 353.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 0.00%    
v3.10.0.1
Note 6 - Options Outstanding - Summary of Stock Option Activity (Details) - $ / shares
3 Months Ended 12 Months Ended
Sep. 02, 2015
Jun. 30, 2018
Mar. 31, 2018
Outstanding, beginning of period/year (in shares)   3,000,000 3,000,000
Outstanding, beginning of period/year (in dollars per share)   $ 0.20 $ 0.20
Issued (in shares) 3,000,000
Issued, weighted average exercise price (in dollars per share) $ 0.20
Exercised (in shares)  
Exercised, weighted average exercise price (in dollars per share)  
Expired (in shares)  
Expired, weighted average exercise price (in dollars per share)  
Outstanding, end of period/year (in shares)   3,000,000 3,000,000
Outstanding, end of period/year (in dollars per share)   $ 0.20 $ 0.20
Exercisable, end of period/year (in shares)   3,000,000 3,000,000
Exercisable, end of period/year (in dollars per share)   $ 0.20 $ 0.20
v3.10.0.1
Note 7 - Commitments and Contingencies (Details Textual)
3 Months Ended
Dec. 02, 2016
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Operating Leases, Rent Expense, Total   $ 35,000 $ 32,000
Capital Lease Agreement One [Member]      
Capital Lease Obligations, Gross $ 85,680    
Capital Lease Obligations, Deferred Interest $ 6,930    
Debt Instrument, Term 4 years    
Capital Lease Obligations, Number of Installments 48    
Debt Instrument, Periodic Payment, Total $ 1,785    
Capital Lease Obligations, Total   47,578  
Capital Lease Agreement Two [Member]      
Capital Lease Obligations, Gross 54,710    
Capital Lease Obligations, Deferred Interest $ 4,710    
Debt Instrument, Term 4 years    
Capital Lease Obligations, Number of Installments 48    
Debt Instrument, Periodic Payment, Total $ 1,139    
Capital Lease Obligations, Total   $ 30,208  
v3.10.0.1
Note 7 - Commitments and Contingencies - Future Minimum Lease Payments (Details)
Jun. 30, 2018
USD ($)
2019 $ 101,875
2020 101,875
2021 101,875
2022 101,875
2023 101,875
Thereafter 534,375
$ 1,043,750
v3.10.0.1
Note 8 - Line of Credit (Details Textual) - USD ($)
Jun. 15, 2018
Jun. 30, 2018
Mar. 31, 2018
Short-term Debt, Total   $ 35,000
Revolving Credit Facility [Member]      
Line of Credit Facility, Maximum Borrowing Capacity $ 400,000    
Debt Instrument, Interest Rate, Stated Percentage 5.37%    
Short-term Debt, Total   $ 35,000  
Line of Credit Facility, Expiration Date May 16, 2019    
v3.10.0.1
Note 9 - Income Taxes (Details Textual) - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Operating Loss Carryforwards, Total $ 1,950,000  
Operating Loss Carry-Forward, Amount Utilized 22,000  
Operating Loss Carry-Forward, Expected Utilization Amount $ 1,950,000  
Effective Income Tax Rate Reconciliation, Percent, Total 0.00% 0.00%
v3.10.0.1
Note 10 - Due to Stockholder (Details Textual)
$ in Thousands
Jun. 30, 2018
USD ($)
Deferred Compensation Liability, Interest Accrued $ 0