[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada
|
20-0019425
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
321 South 1250 West, Suite 1
|
|
Lindon, Utah
|
84042
|
Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer [ ]
|
Accelerated filer [X]
|
Non-accelerated filer [ ]
|
Smaller reporting company [X]
|
(Do not check if a smaller reporting company)
|
Page
|
||
PART I — FINANCIAL INFORMATION
|
||
Item 1. Financial Statements
|
3
|
|
Condensed Consolidated Balance Sheets as of December 31, 2015 (Unaudited) and March 31, 2015
|
3
|
|
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) for the three and nine month periods ended December 31, 2015 and 2014
|
4
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine month periods ended December 31, 2015 and 2014
|
5
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
6
|
|
Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations
|
16
|
|
Item 3. Quantitative and Qualitative Disclosure about Market Risk
|
24
|
|
Item 4. Controls and Procedures
|
24
|
|
PART II — OTHER INFORMATION
|
||
Item 1. Legal Proceedings
|
26
|
|
Item 1A. Risk Factors
|
26
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
26
|
|
Item 6. Exhibits
|
27
|
|
Signatures
|
28
|
PART I. FINANCIAL INFORMATION
|
||||||||
Item 1 Financial Information
|
||||||||
PROFIRE ENERGY, INC. AND SUBSIDIARIES
|
||||||||
Consolidated Balance Sheets
|
||||||||
ASSETS
|
||||||||
December 31,
|
March 31,
|
|||||||
2015
|
2015
|
|||||||
(unaudited)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
19,281,501
|
$
|
14,144,796
|
||||
Accounts receivable, net
|
6,515,543
|
9,462,378
|
||||||
Inventories
|
10,840,598
|
11,766,535
|
||||||
Income tax receivable
|
113,978
|
-
|
||||||
Prepaid expenses & other current assets
|
312,547
|
112,741
|
||||||
Total Current Assets
|
37,064,167
|
35,486,450
|
||||||
LONG-TERM ASSETS
|
||||||||
Deferred tax asset
|
669,895
|
501,921
|
||||||
PROPERTY AND EQUIPMENT, net
|
8,449,492
|
9,275,965
|
||||||
OTHER ASSETS
|
||||||||
Goodwill
|
997,701
|
997,701
|
||||||
Intangible assets, net of accumulated amortization
|
501,490
|
594,019
|
||||||
Total Other Assets
|
1,499,191
|
1,591,720
|
||||||
TOTAL ASSETS
|
$
|
47,682,745
|
$
|
46,856,056
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$
|
1,379,019
|
$
|
1,040,530
|
||||
Accrued liabilities
|
594,236
|
332,229
|
||||||
Income taxes payable
|
396,089
|
347,486
|
||||||
Total Current Liabilities
|
2,369,344
|
1,720,245
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Deferred income tax liability
|
616,735
|
631,353
|
||||||
TOTAL LIABILITIES
|
2,986,079
|
2,351,598
|
||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding
|
-
|
-
|
||||||
Common shares; $0.001 par value, 100,000,000 shares authorized: 53,255,275 and 53,199,136 shares issued and outstanding, respectively
|
53,255
|
53,199
|
||||||
Additional paid-in capital
|
26,152,201
|
25,525,052
|
||||||
Accumulated other comprehensive income (loss)
|
(3,122,872
|
)
|
(1,888,981
|
)
|
||||
Retained earnings
|
21,614,082
|
20,815,188
|
||||||
Total Stockholders' Equity
|
44,696,666
|
44,504,458
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
47,682,745
|
$
|
46,856,056
|
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
REVENUES
|
||||||||||||||||
Sales of goods, net
|
$
|
6,515,584
|
$
|
11,695,016
|
$
|
20,019,400
|
$
|
38,640,246
|
||||||||
Sales of services, net
|
1,038,671
|
821,683
|
2,509,392
|
2,742,219
|
||||||||||||
Total Revenues
|
7,554,255
|
12,516,699
|
22,528,792
|
41,382,465
|
||||||||||||
COST OF SALES
|
||||||||||||||||
Cost of goods sold-product
|
2,833,909
|
5,299,912
|
9,247,014
|
16,837,531
|
||||||||||||
Cost of goods sold-services
|
722,288
|
674,192
|
1,941,819
|
2,015,796
|
||||||||||||
Total Cost of Goods Sold
|
3,556,197
|
5,974,104
|
11,188,833
|
18,853,327
|
||||||||||||
GROSS PROFIT
|
3,998,058
|
6,542,595
|
11,339,959
|
22,529,138
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
General and administrative expenses
|
1,800,491
|
2,446,896
|
5,439,067
|
7,722,366
|
||||||||||||
Research and development
|
348,874
|
521,814
|
948,508
|
1,331,834
|
||||||||||||
Payroll expenses
|
1,230,022
|
1,591,397
|
3,952,447
|
4,624,826
|
||||||||||||
Depreciation and amortization expense
|
128,793
|
176,371
|
374,247
|
424,014
|
||||||||||||
Total Operating Expenses
|
3,508,180
|
4,736,478
|
10,714,269
|
14,103,040
|
||||||||||||
INCOME FROM OPERATIONS
|
489,878
|
1,806,117
|
625,690
|
8,426,098
|
||||||||||||
OTHER INCOME (EXPENSE)
|
||||||||||||||||
Interest expense
|
-
|
(14,222
|
)
|
-
|
(14,222
|
)
|
||||||||||
Gain on disposal of fixed assets
|
-
|
9,052
|
19,391
|
9,052
|
||||||||||||
Other (expense) income
|
177,931
|
(910
|
)
|
421,251
|
1,954
|
|||||||||||
Interest income
|
5,217
|
6,687
|
31,857
|
14,467
|
||||||||||||
Total Other Income (Expense)
|
183,148
|
607
|
472,499
|
11,251
|
||||||||||||
NET INCOME BEFORE INCOME TAXES
|
673,026
|
1,806,724
|
1,098,189
|
8,437,349
|
||||||||||||
INCOME TAX EXPENSE (BENEFIT)
|
194,227
|
(110,426
|
)
|
299,295
|
2,221,292
|
|||||||||||
NET INCOME
|
$
|
478,799
|
$
|
1,917,150
|
$
|
798,895
|
$
|
6,216,057
|
||||||||
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
|
$
|
(482,744
|
)
|
$
|
(381,099
|
)
|
$
|
(1,233,891
|
)
|
$
|
(539,777
|
)
|
||||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
$
|
(3,945
|
)
|
$
|
1,536,051
|
$
|
(434,997
|
)
|
$
|
5,676,280
|
||||||
BASIC EARNINGS PER SHARE
|
$
|
0.01
|
$
|
0.04
|
$
|
0.02
|
$
|
0.12
|
||||||||
FULLY DILUTED EARNINGS PER SHARE
|
$
|
0.01
|
$
|
0.04
|
$
|
0.01
|
$
|
0.12
|
||||||||
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
53,255,275
|
52,884,358
|
53,239,087
|
51,112,924
|
||||||||||||
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
53,523,081
|
53,161,058
|
53,506,778
|
51,389,624
|
Consolidated Statements of Cash Flows
|
||||||||
(unaudited)
|
||||||||
For the Nine Months Ended
|
||||||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net Income
|
$
|
798,895
|
$
|
6,216,057
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization expense
|
729,695
|
784,193
|
||||||
Gain on disposal of fixed assets
|
(19,391
|
)
|
(9,052
|
)
|
||||
Bad debt expense
|
104,252
|
(14,832
|
)
|
|||||
Stock options issued for services
|
666,450
|
1,031,301
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Changes in accounts receivable
|
2,683,035
|
(3,035,929
|
)
|
|||||
Changes in income tax receivable
|
(113,978
|
)
|
-
|
|||||
Changes in inventories
|
625,368
|
(4,533,903
|
)
|
|||||
Changes in prepaid expenses
|
(199,923
|
)
|
(345,977
|
)
|
||||
Changes in deferred tax asset
|
(167,974
|
)
|
(246,016
|
)
|
||||
Changes in accounts payable and accrued liabilities
|
627,765
|
1,831,277
|
||||||
Changes in income taxes payable
|
45,417
|
(478,480
|
)
|
|||||
Net Cash Provided by Operating Activities
|
5,779,611
|
1,198,639
|
||||||
INVESTING ACTIVITIES
|
||||||||
Proceeds from disposal of equipment
|
116,524
|
9,052
|
||||||
Cash paid for asset acquisition
|
-
|
(750,000
|
)
|
|||||
Purchase of fixed assets
|
(62,465
|
)
|
(5,941,953
|
)
|
||||
Net Cash Provided by (Used in) Investing Activities
|
54,059
|
(6,682,901
|
)
|
|||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from stock issued for cash, net of stock offering costs
|
-
|
16,424,688
|
||||||
Value of equity awards surrendered by employees for tax liability
|
(39,243
|
)
|
-
|
|||||
Stock issued in exercise of stock options
|
-
|
197,961
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
(39,243
|
)
|
16,622,649
|
|||||
Effect of exchange rate changes on cash
|
(657,722
|
)
|
(209,454
|
)
|
||||
NET INCREASE IN CASH
|
5,136,705
|
10,928,933
|
||||||
CASH AT BEGINNING OF PERIOD
|
14,144,796
|
4,456,674
|
||||||
CASH AT END OF PERIOD
|
$
|
19,281,501
|
$
|
15,385,607
|
||||
SUPPLEMENTAL DISCLOSURES OF
|
||||||||
CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Interest
|
$
|
-
|
$
|
14,222
|
||||
Income taxes
|
$
|
402,417
|
$
|
2,890,769
|
||||
NON CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Stock issued for acquisition
|
$
|
-
|
$
|
1,000,000
|
For the
Three Months Ended
December 31,
|
For the
Nine Months Ended
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net income applicable to common shareholders
|
$
|
478,799
|
$
|
1,917,150
|
$
|
798,895
|
$
|
6,216,057
|
||||||||
Weighted average shares outstanding
|
53,255,275
|
52,884,358
|
53,239,087
|
51,112,924
|
||||||||||||
Weighted average fully diluted shares outstanding
|
53,523,081
|
53,161,058
|
53,506,778
|
51,389,624
|
||||||||||||
Basic earnings per share
|
$
|
0.01
|
$
|
0.04
|
$
|
0.02
|
$
|
0.12
|
||||||||
Fully diluted earnings per share
|
$
|
0.01
|
$
|
0.04
|
$
|
0.01
|
$
|
0.12
|
December 31,
2015
|
March 31,
2015
|
|||||||
Raw materials
|
$
|
688,830
|
$
|
-
|
||||
Finished goods
|
10,400,207
|
11,951,108
|
||||||
Work in process
|
-
|
-
|
||||||
Subtotal
|
11,089,037
|
11,951,108
|
||||||
Reserve for Obsolence
|
(248,439
|
)
|
(184,573
|
)
|
||||
Total
|
$
|
10,840,598
|
$
|
11,766,535
|
Assets
|
Estimated useful life
|
Furniture and fixtures
|
7 Years
|
Machinery and equipment
|
7 Years
|
Buildings
|
30 Years
|
Vehicles
|
5 Years
|
Computers
|
3 Years
|
Software
|
2 Years
|
December 31,
2015
|
March 31,
2015
|
|||||||
Office furniture and equipment
|
$
|
956,362
|
$
|
937,274
|
||||
Service and shop equipment
|
560,282
|
573,233
|
||||||
Vehicles
|
2,805,416
|
3,040,439
|
||||||
Land and buildings
|
6,655,361
|
6,746,597
|
||||||
Total property and equipment
|
10,977,421
|
11,297,543
|
||||||
Accumulated depreciation
|
(2,527,929
|
)
|
(2,021,578
|
)
|
||||
Net property and equipment
|
$
|
8,449,492
|
$
|
9,275,965
|
December 31,
2015
|
March 31,
2015
|
|||||||
Distribution agreements
|
$
|
38,053
|
$
|
41,638
|
||||
Less: Accumulated amortization
|
(38,053
|
)
|
(27,757
|
)
|
||||
Distribution agreements, net
|
0
|
13,881
|
||||||
Patents, trademarks, copyrights, and domain names
|
530,211
|
580,138
|
||||||
Less: Accumulated amortization
|
(28,721
|
)
|
-
|
|||||
Patents, trademarks, copyrights, and domain names, net
|
501,490
|
580,138
|
||||||
Total definite-lived intangible assets, net
|
$
|
501,490
|
$
|
594,019
|
December 31,
2015
|
March 31,
2015
|
|||||||
Goodwill
|
$
|
997,701
|
$
|
997,701
|
Year Ending March 31,
|
||||
2016
|
$
|
27,581
|
||
2017
|
29,007
|
|||
2018
|
29,007
|
|||
2019
|
29,007
|
|||
2020
|
29,007
|
For the Three Months Ended
December 31, |
For the Nine Months Ended
December 31, |
|||||||||||||||
Sales
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Canada
|
$
|
1,906,031
|
$
|
3,727,730
|
$
|
5,244,284
|
$
|
13,260,794
|
||||||||
United States
|
5,648,224
|
8,788,969
|
17,284,508
|
28,121,671
|
||||||||||||
Total
|
$
|
7,554,255
|
$
|
12,516,699
|
$
|
22,528,792
|
$
|
41,382,465
|
Long-lived assets
|
December 31,
2015
|
March 31,
2015
|
||||||
Canada
|
$
|
1,016,084
|
$
|
1,231,434
|
||||
United States
|
7,433,408
|
8,044,531
|
||||||
Total
|
$
|
8,449,492
|
$
|
9,275,965
|
Options
|
Wtd. Avg.
Fair Value
|
|||||||
Outstanding, March 31, 2014
|
3,074,850
|
1.47
|
||||||
Granted
|
133,900
|
4.03
|
||||||
Exercised
|
(596,635
|
)
|
0.55
|
|||||
Forfeited
|
(498,615
|
)
|
1.39
|
|||||
Expired
|
-
|
-
|
||||||
Outstanding, March 31, 2015
|
2,113,500
|
1.90
|
||||||
Exercisable, March 31, 2015
|
907,000
|
2.27
|
||||||
Options
|
Wtd. Avg.
Fair Value
|
|||||||
Outstanding, March 31, 2015
|
2,113,500
|
1.90
|
||||||
Granted
|
-
|
-
|
||||||
Exercised
|
-
|
-
|
||||||
Forfeited
|
(512,600
|
)
|
1.52
|
|||||
Expired
|
-
|
-
|
||||||
Outstanding, December 31, 2015
|
1,600,900
|
1.98
|
||||||
Exercisable, December 31, 2015
|
913,200
|
2.29
|
Outstanding
Options
(1 share/option)
|
Average
Remaining
Life (Yrs)
|
Exercisable Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||
Strike Price
|
||||||||||||||||||
$
|
0.30
|
110,000
|
1.88
|
40,000
|
0.30
|
|||||||||||||
$
|
1.37
|
1,118,000
|
4.08
|
284,000
|
1.37
|
|||||||||||||
$
|
1.75
|
475,000
|
2.93
|
283,000
|
1.75
|
|||||||||||||
$
|
3.85
|
200,000
|
4.61
|
200,000
|
3.85
|
|||||||||||||
$
|
3.95
|
100,000
|
4.86
|
100,000
|
3.95
|
|||||||||||||
$
|
4.03
|
110,500
|
5.09
|
-
|
4.03
|
|||||||||||||
2,113,500
|
4.02
|
907,000
|
2.27
|
Outstanding
Options
(1 share/option)
|
Average
Remaining
Life (Yrs)
|
Exercisable Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||
Strike Price
|
||||||||||||||||||
$
|
0.30
|
110,000
|
1.13
|
40,000
|
0.30
|
|||||||||||||
$
|
1.37
|
744,000
|
3.33
|
346,500
|
1.37
|
|||||||||||||
$
|
1.75
|
347,500
|
2.18
|
206,500
|
1.75
|
|||||||||||||
$
|
3.85
|
200,000
|
3.85
|
200,000
|
3.85
|
|||||||||||||
$
|
3.95
|
100,000
|
4.11
|
100,000
|
3.95
|
|||||||||||||
$
|
4.03
|
99,400
|
4.34
|
20,200
|
4.03
|
|||||||||||||
1,600,900
|
3.16
|
913,200
|
2.29
|
Non-vested options
|
Options
|
Wtd. Avg.
Grant Date
Fair Value
|
||||||
Non-vested at March 31, 2015
|
1,206,500
|
1.58
|
||||||
Stock options issued during the period
|
-
|
-
|
||||||
Stock options canceled
|
(512,600
|
)
|
1.52
|
|||||
Vested during the period ended Decmeber 31, 2015
|
(230,600
|
)
|
1.62
|
|||||
Cancellation of previously vested stock options
|
224,400
|
1.52
|
||||||
Non-vested at Decmeber 31, 2015
|
687,700
|
2.97
|
Non-vested restricted stock
|
Options
|
Wtd. Avg.
Grant Date Fair Value |
||||||
Non-vested at March 31, 2015
|
171,666
|
4.03
|
||||||
Restricted stock issued during the period
|
-
|
-
|
||||||
Restricted Stock canceled
|
(20,000
|
)
|
4.03
|
|||||
Vested & settled during the period ended Decmeber 31, 2015
|
(34,332
|
)
|
4.03
|
|||||
Non-vested at Decmeber 31, 2015
|
117,334
|
4.03
|
Non-vested restricted stock units
|
Restricted
Stock
Units
|
Wtd. Avg.
Grant Date Fair Value |
||||||
Non-vested at March 31, 2015
|
106,907
|
3.94
|
||||||
Restricted stock units issued during the period
|
528,334
|
1.05
|
||||||
Restricted stock units canceled
|
(76,999
|
)
|
1.68
|
|||||
Vested, not settled during the period ended Decmeber 31, 2015
|
(199,908
|
)
|
1.68
|
|||||
Vested & settled during the period ended Decmeber 31, 2015
|
(52,001
|
)
|
1.62
|
|||||
Non-vested at Decmeber 31, 2015
|
306,333
|
1.38
|
Nine months
ended
December 31,
2015
|
Nine months
ended
December 31,
2014
|
|||||||
Net cash provided by operating activities
|
$
|
5,779,611
|
$
|
1,198,639
|
||||
Net cash provided by (used in) investing activities
|
54,059
|
(6,682,901
|
)
|
|||||
Net cash provided by (used in) financing activities
|
(39,243
|
)
|
16,622,649
|
|||||
Effect of Exchange rate on cash
|
(657,722
|
)
|
(209,454
|
)
|
||||
Net increase in cash
|
$
|
5,136,705
|
$
|
10,928,933
|
·
|
Implement a consistent credit policy for our customers, to ensure we have a documented and reasonable expectation of collection on revenues;
|
·
|
Ensure consistent use of order numbers for all customer purchases and services, to be included on each invoice, which can now be automatically generated by our new ERP;
|
·
|
Enhance documentation practices, including those for financial-statement reviews, revenues, personnel training, hiring, and purchase authorizations; and
|
·
|
Further segregate duties and responsibilities over commission, financial statement review, and other key financial areas, and assign reviewers for the same.
|
Exhibit 31.1
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)
|
||
Exhibit 31.2
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)
|
||
Exhibit 32.1
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350
|
||
Exhibit 32.2
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350
|
||
Exhibit 101.INS
|
XBRL Instance Document
|
||
Exhibit 101.SCH
|
XBRL Taxonomy Extension Schema Document
|
||
Exhibit 101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
||
Exhibit 101.DEF
|
XBRL Taxonomy Definition Linkbase Document
|
||
Exhibit 101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
||
Exhibit 101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
PROFIRE ENERGY, INC. | |||
Date:
|
February 8, 2016
|
By:
|
/s/ Brenton W. Hatch |
Brenton W. Hatch
|
|||
Chief Executive Officer
|
Date:
|
February 8, 2016
|
By:
|
/s/ Ryan Oviatt |
Ryan Oviatt
|
|||
Chief Financial Officer
|
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date:
|
February 8, 2016
|
By:
|
/s/ Brenton W. Hatch |
Brenton W. Hatch
|
|||
Chief Executive Officer
|
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date:
|
February 8, 2016
|
By:
|
/s/ Ryan Oviatt |
Ryan Oviatt
|
|||
Chief Financial Officer
|
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date:
|
February 8, 2016
|
By:
|
/s/ Brenton W. Hatch |
Brenton W. Hatch
|
|||
Chief Executive Officer
|
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date:
|
February 8, 2016
|
By:
|
/s/ Ryan Oviatt | ||
Ryan Oviatt
|
|||||
Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Feb. 05, 2016 |
|
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Trading Symbol | pfie | |
Amendment Flag | false | |
Entity Central Index Key | 0001289636 | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 53,255,275 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, Date of Incorporation | May 05, 2003 | |
Entity Incorporation, State Country Name | Nevada |
CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
CONSOLIDATED BALANCE SHEETS PARENTHETICAL | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | ||
Preferred stock shares outstanding | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,255,275 | 53,199,136 |
Common stock shares outstanding | 53,255,275 | 53,199,136 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
REVENUES | ||||
Sales of goods, net | $ 6,515,584 | $ 11,695,016 | $ 20,019,400 | $ 38,640,246 |
Sales of services, net | 1,038,671 | 821,683 | 2,509,392 | 2,742,219 |
Total Revenues | 7,554,255 | 12,516,699 | 22,528,792 | 41,382,465 |
COST OF SALES | ||||
Cost of goods sold-product | 2,833,909 | 5,299,912 | 9,247,014 | 16,837,531 |
Cost of goods sold-services | 722,288 | 674,192 | 1,941,819 | 2,015,796 |
Total Cost of Goods Sold | 3,556,197 | 5,974,104 | 11,188,833 | 18,853,327 |
GROSS PROFIT | 3,998,058 | 6,542,595 | 11,339,959 | 22,529,138 |
OPERATING EXPENSES | ||||
General and administrative expenses | 1,800,491 | 2,446,896 | 5,439,067 | 7,722,366 |
Research and development | 348,874 | 521,814 | 948,508 | 1,331,834 |
Payroll expenses | 1,230,022 | 1,591,397 | 3,952,447 | 4,624,826 |
Depreciation and amortization expense | 128,793 | 176,371 | 374,247 | 424,014 |
Total Operating Expenses | 3,508,180 | 4,736,478 | 10,714,269 | 14,103,040 |
INCOME FROM OPERATIONS | 489,878 | 1,806,117 | 625,690 | 8,426,098 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (14,222) | (14,222) | ||
Gain on disposal of fixed assets | 0 | 9,052 | 19,391 | 9,052 |
Other (expense) income | 177,931 | (910) | 421,251 | 1,954 |
Interest income | 5,217 | 6,687 | 31,857 | 14,467 |
Total Other Income (Expense) | 183,148 | 607 | 472,499 | 11,251 |
NET INCOME BEFORE INCOME TAXES | 673,026 | 1,806,724 | 1,098,189 | 8,437,349 |
INCOME TAX EXPENSE (BENEFIT) | 194,227 | (110,426) | 299,295 | 2,221,292 |
NET INCOME | 478,799 | 1,917,150 | 798,895 | 6,216,057 |
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) | (482,744) | (381,099) | (1,233,891) | (539,777) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (3,945) | $ 1,536,051 | $ (434,997) | $ 5,676,280 |
BASIC EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.02 | $ 0.12 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.12 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,255,275 | 52,884,358 | 53,239,087 | 51,112,924 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,523,081 | 53,161,058 | 53,506,778 | 51,389,624 |
Note 1 - Condensed Financial Statements |
9 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes | |
Note 1 - Condensed Financial Statements | NOTE 1 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at December 31, 2015 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's March 31, 2015 audited financial statements. The results of operations for the periods ended December 31, 2015 and 2014 are not necessarily indicative of the operating results for the full years. |
Note 2 - Significant Accounting Policies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 2 - Significant Accounting Policies | Note 2 Organization and Summary of Significant Accounting Policies
This Organization and Summary of Significant Accounting Policies of Profire Energy, Inc. and Subsidiaries (the Company) is presented to assist in understanding the Companys consolidated financial statements. The Companys accounting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP).
Organization and Line of Business
The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada.
The Company provides burner and chemical management products and services for the oil and gas industry in Canadian and United States (U.S.) markets.
Use of Estimates
The preparation of financial statements in accordance with U.S. 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 reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Principles of Consolidation
The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Basic and Diluted Earnings Per Share
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 267,691 and 696,219 equity awards included in the fully diluted earnings (loss) per share as of December 31, 2015 and 2014, respectively.
Foreign Currency and Comprehensive Income
The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar (USD) and the Canadian Dollar (CAD), respectively. The Companys financial statements were translated to USD using period-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.720900 and 0.788786 were used to convert the Companys December 31, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.775800 and 0.918000 for the nine months ended December 31, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presented in USD, unless otherwise identified.
Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Operations and Comprehensive Income.
The Company recorded aggregate transaction gains of $428,112 and $0 during the nine months ended December 31, 2015 and 2014, respectively.
Fair Value of Financial Instruments
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data.
Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value.
The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of December 31, 2015 and March 31, 2015, cash and cash equivalents totaled $19,281,501 and $14,144,796, respectively. As of December 31, 2015 $250,000 USD was guaranteed by the FDIC and $72,090 USD was guaranteed by the Province of Alberta, Canada.
Accounts Receivable
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $211,068 and $108,641 as of December 31, 2015 and March 31, 2015, respectively.
Inventories
In accordance with Accounting Research Bulletin No. 43 Inventory Pricing, the Companys inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost method. As of December 31, 2015 and March 31, 2015, inventory consisted of the following:
Long-Lived Assets
The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the assets carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow.
Beginning in fiscal year 2016, the Company revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type with a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended December 31, 2015.
Other Intangible Assets
The Company accounts for Other Intangible Assets under the guidance of Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Companys acquisition of VIM assets has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment.
Goodwill
Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceeds their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) ASC 350, IntangiblesGoodwill and Other. Goodwill is tested for impairment at the reporting unit level. The Companys two operating segments comprise the reporting unit for goodwill impairment testing purposes.
Revenue Recognition
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance.
Cost of Sales
The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales.
Advertising Costs
The Company classifies advertising expenses as general and administrative. The Company incurred advertising costs of $64,632 and $172,464 in the nine months ended December 31, 2015 and 2014, respectively.
Stock-Based Compensation
The Company follows the provisions of ASC 718, Share-Based Payment. which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation.
Income Taxes
The Parent is subject to U.S. income taxes on a stand-alone basis. The Parent and its Subsidiaries file separate stand-alone tax returns in each jurisdiction in which they operate. One Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax expense (benefit) are 27% and 26% for the nine months ended December 31, 2015 and 2014, respectively.
The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of taxable income for each full fiscal year.
Research and Development
All costs associated with research and development (R&D) are expensed when incurred. Costs incurred for R&D were $948,508 and $1,331,834 in nine months ended December 31, 2015 and 2014, respectively.
Shipping and Handling Fees and Costs
The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $208,881 and $420,290 during the nine months ended December 31, 2015 and 2014, respectively.
Comprehensive Income (Loss)
Comprehensive income (loss) includes net income (loss) as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses, and unrealized holding gains and losses on available-for-sale securities.
Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows.
Property and Equipment Useful Lives
Property and equipment is stated at cost. Depreciation on property and equipment is computed using the straight-line method over the estimated useful life of the asset. Assets estimated useful lives are as follows:
|
Note 3 - Property and Equipment |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||
Note 3 - Property and Equipment | NOTE 3 PROPERTY, PLANT AND EQUIPMENT
Property and equipment consisted of the following as of December 31, 2015 and March 31, 2015:
|
Note 4 - Stockholders' Equity |
9 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes | |
Note 4 - Stockholders' Equity | Note 4 STOCKHOLDERS EQUITY
The Company had the following $0.001 par value authorized stock: Preferred Stock 10,000,000 shares. Common Stock 100,000,000 shares.
As of December 31, 2015 and March 31, 2015, the Company had 53,255,275 and 53,199,136 shares of common stock issued and outstanding, respectively.
On June 2, 2014, the Company filed a registration statement on Form S-1 to register shares of common stock with the Securities and Exchange Commission to be offered to the public by the Company and by certain selling stockholders named in the registration statement. The Company also filed amendments to such registration statement on June 19, 2014, June 24, 2014, June 25, 2014, and June 26, 2014. The net proceeds from the sale of 4,500,000 shares of common stock pursuant to the registration statement was approximately $16,430,000, after deducting underwriting discounts, commissions, and estimated offering expenses payable by the Company. The Company did not receive any proceeds from the sale of shares of common stock by the selling stockholders.
We expect to use the proceeds from this offering for expansion of our sales and service team to match the demand for our product in regions where recent legislation passed, requiring the use of our technology, and for other working capital purposes. We may also use a portion of the net proceeds to fund possible investments in, or acquisitions of, complementary businesses, solutions or technologies. In addition, the amount and timing of what we actually spend for these purposes may vary significantly and will depend on a number of factors, including our future revenue and cash generated by operations and other factors. Accordingly, our management will have discretion and flexibility in applying the net proceeds of this offering. Pending any uses, as described above, we intend to invest the net proceeds in high quality, investment grade, short-term fixed income instruments which include corporate, financial institution, federal agency or U.S. government obligations. |
Note 5 - Intangible Assets |
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Note 5 - Intangible Assets | NOTE 5 INTANGIBLE ASSETS
Definite-lived intangible assets consist of distribution agreements, patents, trademarks, copyrights, and domain names. The costs of distribution agreements are amortized over the remaining life of the agreements. The costs of the patents are to be amortized over 20 years once the patent has been approved. Indefinite-lived intangible assets consist of goodwill.
In accordance with ASC 350, goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicates that the carrying value of a reporting unit more likely than not exceeds its fair value. The Companys annual goodwill impairment testing date is March 31 of each year. Intangible assets consisted of the following as of December 31, 2015 and March 31, 2015:
Definite-lived intangible assets
Indefinite-lived intangible assets
Estimated amortization expense for the distribution agreements, patents, trademarks, copyrights, and domain names for the next five years consists of the following as of March 31, 2015:
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Note 6 - Segment Information |
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Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 6 - Segment Information | NOTE 6 SEGMENT INFORMATION
The Company operates in the United States and Canada. Segment information for these areas is as follows:
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Note 7 - Stock Based Compensation |
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Note 7 - Stock Based Compensation | NOTE 7 STOCK BASED COMPENSATION
On July 23, 2015 the Company issued a total of 208,334 restricted stock units to key employees. The units vest 1/5 each year for 5 years, with the first vesting occurring on the date of grant. On October 30, 2015, the Company issued a total of 320,000 restricted stock units to the independent directors of the Company. Half of the units vested immediately with the remaining half vesting September 17, 2016. The Company estimates the fair value of the units at their intrinsic value at time of granting.
The Company recognized $666,450 and $1,031,300 in expense for the fair value of previously granted stock based compensation vested during the nine months ended December 31, 2015, and 2014, respectively. Stock compensation expense is recognized on a pro-rata basis over the vesting period of the equity awards. Subsequent to December 31, 2015, $1,513,347 of compensation expense on equity awards remains to be recognized in future periods. A summary of the status of the Companys stock option plans as of December 31, 2015 and March 31, 2015 and the changes during each period are presented below:
The following table summarizes information about the Companys outstanding stock options as of March 31, 2015:
The following table summarizes information about the Companys outstanding stock options as of December 31, 2015:
The following table summarizes information about non-vested options as of the nine months ended December 31, 2015:
The following table summarizes information about non-vested restricted stock awards as of the nine months ended December 31, 2015:
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Note 8 - Subsequent Events |
9 Months Ended |
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Dec. 31, 2015 | |
Notes | |
Note 8 - Subsequent Events | NOTE 8 SUBSEQUENT EVENTS
In accordance with ASC 855 Subsequent Events, Company management reviewed all material events through the date of issuance and there are no material subsequent events to report. |
Note 2 - Significant Accounting Policies: Use of Estimates (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Use of Estimates | Use of Estimates
The preparation of financial statements in accordance with U.S. 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 reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2 - Significant Accounting Policies: Principles of Consolidation (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Principles of Consolidation | Principles of Consolidation
The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies) |
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Policies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented using the treasury stock method. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 267,691 and 696,219 equity awards included in the fully diluted earnings (loss) per share as of December 31, 2015 and 2014, respectively.
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Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income
The functional currency of the Company and its subsidiaries in the U.S. and Canada are the U.S. Dollar (USD) and the Canadian Dollar (CAD), respectively. The Companys financial statements were translated to USD using period-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.720900 and 0.788786 were used to convert the Companys December 31, 2015 and March 31, 2015 balance sheets, respectively, and the statements of operations used weighted average rates of 0.775800 and 0.918000 for the nine months ended December 31, 2015 and 2014, respectively. All amounts in the financial statements and footnotes are presented in USD, unless otherwise identified.
Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Operations and Comprehensive Income.
The Company recorded aggregate transaction gains of $428,112 and $0 during the nine months ended December 31, 2015 and 2014, respectively. |
Note 2 - Significant Accounting Policies: Fair Value of Financial Instruments (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data.
Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value.
The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. |
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents include cash and all debt securities with an original maturity of 90 days or less. As of December 31, 2015 and March 31, 2015, cash and cash equivalents totaled $19,281,501 and $14,144,796, respectively. As of December 31, 2015 $250,000 USD was guaranteed by the FDIC and $72,090 USD was guaranteed by the Province of Alberta, Canada. |
Note 2 - Significant Accounting Policies: Accounts Receivable (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Accounts Receivable | Accounts Receivable
Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $211,068 and $108,641 as of December 31, 2015 and March 31, 2015, respectively. |
Note 2 - Significant Accounting Policies: Inventories (Policies) |
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Policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories
In accordance with Accounting Research Bulletin No. 43 Inventory Pricing, the Companys inventory is valued at the lower of cost (the purchase price, including additional fees) or market based on using the entire value of inventory. Inventories are determined based on the average cost method. As of December 31, 2015 and March 31, 2015, inventory consisted of the following:
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Note 2 - Significant Accounting Policies: Long-lived Assets (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Long-lived Assets | Long-Lived Assets
The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the assets carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow.
Beginning in fiscal year 2016, the Company revised the estimated useful lives from 5 to 7 years for furniture and fixtures, and machinery and equipment, 25 to 30 years for buildings, 3 to 5 years for vehicles, and added a software asset type with a useful life of 2 years. The change in depreciable lives is considered a change in accounting estimate on a prospective basis from April 1, 2015 and had an immaterial impact on overall financial statements for the period ended December 31, 2015. |
Note 2 - Significant Accounting Policies: Other Intangible Assets and Goodwill (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Other Intangible Assets and Goodwill | Other Intangible Assets
The Company accounts for Other Intangible Assets under the guidance of Accounting Standards Codification (ASC) 350, IntangiblesGoodwill and Other. The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Companys acquisition of VIM assets has been assigned to patents. Under the guidance, Other Intangible Assets with definite lives are amortized over estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment.
Goodwill
Goodwill, representing the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceeds their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the FASB) ASC 350, IntangiblesGoodwill and Other. Goodwill is tested for impairment at the reporting unit level. The Companys two operating segments comprise the reporting unit for goodwill impairment testing purposes. |
Note 2 - Significant Accounting Policies: Revenue Recognition (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Revenue Recognition | Revenue Recognition
The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, and collectability of the fixed or determinable sales price is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. |
Note 2 - Significant Accounting Policies: Cost of Sales (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Cost of Sales | Cost of Sales
The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. |
Note 2 - Significant Accounting Policies: Advertising Costs (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Advertising Costs | Advertising Costs
The Company classifies advertising expenses as general and administrative. The Company incurred advertising costs of $64,632 and $172,464 in the nine months ended December 31, 2015 and 2014, respectively. |
Note 2 - Significant Accounting Policies: Stock-based Compensation (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation
The Company follows the provisions of ASC 718, Share-Based Payment. which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock based compensation. |
Note 2 - Significant Accounting Policies: Income Taxes (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Income Taxes | Income Taxes
The Parent is subject to U.S. income taxes on a stand-alone basis. The Parent and its Subsidiaries file separate stand-alone tax returns in each jurisdiction in which they operate. One Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The effective rates of income tax expense (benefit) are 27% and 26% for the nine months ended December 31, 2015 and 2014, respectively.
The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of taxable income for each full fiscal year. |
Note 2 - Significant Accounting Policies: Research and Development (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Research and Development | Research and Development
All costs associated with research and development (R&D) are expensed when incurred. Costs incurred for R&D were $948,508 and $1,331,834 in nine months ended December 31, 2015 and 2014, respectively. |
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs
The Company classifies expenses for shipping and handling costs as cost of goods sold. The Company incurred shipping and handling costs of $208,881 and $420,290 during the nine months ended December 31, 2015 and 2014, respectively. |
Note 2 - Significant Accounting Policies: Comprehensive Income (Loss) (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Comprehensive Income (Loss) | Comprehensive Income (Loss)
Comprehensive income (loss) includes net income (loss) as currently reported by the Company adjusted for other comprehensive items. Other comprehensive items for the Company consist of foreign currency translation gains and losses, and unrealized holding gains and losses on available-for-sale securities. |
Note 2 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) |
9 Months Ended |
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Dec. 31, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives (Policies) |
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Dec. 31, 2015 | |||||||||||||||
Policies | |||||||||||||||
Property and Equipment Useful Lives | Property and Equipment Useful Lives
Property and equipment is stated at cost. Depreciation on property and equipment is computed using the straight-line method over the estimated useful life of the asset. Assets estimated useful lives are as follows:
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Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Earnings Per Share, Basic and Diluted |
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Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Tables) |
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current |
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Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Tables) |
9 Months Ended | ||||||||||||||
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Dec. 31, 2015 | |||||||||||||||
Tables/Schedules | |||||||||||||||
Schedule Of Estimated Useful Lives Of Assets |
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Note 3 - Property and Equipment: Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
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Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets |
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Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets |
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Note 5 - Intangible Assets: Finite-lived Intangible Assets Amortization Expense (Tables) |
9 Months Ended | ||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||
Finite-lived Intangible Assets Amortization Expense |
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Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment |
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Note 7 - Stock Based Compensation: Schedule of Share-based Compensation, Activity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity |
|
Note 7 - Stock Based Compensation: Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share Based Compensation Arrangement by Share Based Payment Award Options Outstanding and Exercisable |
The following table summarizes information about the Companys outstanding stock options as of March 31, 2015:
The following table summarizes information about the Companys outstanding stock options as of December 31, 2015:
|
Note 7 - Stock Based Compensation: Schedule of Nonvested Share Activity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity |
|
Note 7 - Stock Based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested, Non-Vested and Expected to Vest |
|
Note 2 - Significant Accounting Policies (Details) |
9 Months Ended |
---|---|
Dec. 31, 2015 | |
Details | |
Entity Incorporation, Date of Incorporation | May 05, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share (Details) - shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Details | ||
Fully Diluted Earnings (Loss) Per Share | 267,691 | 696,219 |
Note 2 - Significant Accounting Policies: Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||||
Net income applicable to common shareholders | $ 478,799 | $ 1,917,150 | $ 798,895 | $ 6,216,057 |
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,255,275 | 52,884,358 | 53,239,087 | 51,112,924 |
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 53,523,081 | 53,161,058 | 53,506,778 | 51,389,624 |
BASIC EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.02 | $ 0.12 |
FULLY DILUTED EARNINGS PER SHARE | $ 0.01 | $ 0.04 | $ 0.01 | $ 0.12 |
Note 2 - Significant Accounting Policies: Foreign Currency and Comprehensive Income (Details) |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Mar. 31, 2015 |
|
Details | |||
Foreign Currency Exchange Rate, Translation | 0.720900 | 0.788786 | |
Weighted Average Exchange Rate | 0.775800 | 0.918000 | |
Foreign Currency Transaction Gain (Loss), Realized | $ 428,112 | $ 0 |
Note 2 - Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2014 |
---|---|---|---|---|
Details | ||||
Cash and cash equivalents | $ 19,281,501 | $ 14,144,796 | $ 15,385,607 | $ 4,456,674 |
Cash, FDIC Insured Amount | 250,000 | |||
Cash, Guaranteed by the Province of Alberta, Canada | $ 72,090 |
Note 2 - Significant Accounting Policies: Accounts Receivable (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
Details | ||
Allowance for Doubtful Accounts Receivable | $ 211,068 | $ 108,641 |
Note 2 - Significant Accounting Policies: Inventories: Schedule of Inventory, Current (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
Details | ||
Inventory, Raw Materials, Gross | $ 688,830 | |
Inventory, Finished Goods, Gross | 10,400,207 | $ 11,951,108 |
Subtotal | 11,089,037 | 11,951,108 |
Reserves for obsolescence | (248,439) | (184,573) |
Inventories | $ 10,840,598 | $ 11,766,535 |
Note 2 - Significant Accounting Policies: Advertising Costs (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||
Advertising Expense | $ 64,632 | $ 172,464 |
Note 2 - Significant Accounting Policies: Research and Development (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||||
Research and development | $ 348,874 | $ 521,814 | $ 948,508 | $ 1,331,834 |
Note 2 - Significant Accounting Policies: Shipping and Handling Fees and Costs (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||
Shipping, Handling and Transportation Costs | $ 208,881 | $ 420,290 |
Note 2 - Significant Accounting Policies: Property and Equipment Useful Lives: Schedule Of Estimated Useful Lives Of Assets (Details) |
9 Months Ended |
---|---|
Dec. 31, 2015 | |
Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment | |
Property, Plant and Equipment, Useful Life | 7 years |
Building | |
Property, Plant and Equipment, Useful Life | 30 years |
Vehicles | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs | |
Property, Plant and Equipment, Useful Life | 2 years |
Note 3 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
Details | ||
Office furniture and equipment | $ 956,362 | $ 937,274 |
Service and shop equipment | 560,282 | 573,233 |
Vehicles | 2,805,416 | 3,040,439 |
Land and buildings | 6,655,361 | 6,746,597 |
Total property and equipment | 10,977,421 | 11,297,543 |
Accumulated depreciation | (2,527,929) | (2,021,578) |
PROPERTY AND EQUIPMENT, net | $ 8,449,492 | $ 9,275,965 |
Note 4 - Stockholders' Equity (Details) - $ / shares |
9 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Mar. 31, 2015 |
|
Preferred stock par value | $ 0.001 | $ 0.001 |
Common stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,255,275 | 53,199,136 |
Common stock shares outstanding | 53,255,275 | 53,199,136 |
Common stock | ||
StockIssuanceShares | 4,500,000 |
Note 5 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
Details | ||
Distribution Agreements, Gross | $ 38,053 | $ 41,638 |
Accumulated Amortization of Other Deferred Costs | (38,053) | (27,757) |
Distribution Agreements, Net | 0 | 13,881 |
Other Finite-Lived Intangible Assets, Gross | 530,211 | 580,138 |
Finite-Lived Intangible Assets, Accumulated Amortization | (28,721) | |
Other Finite Lived Intangible Assets, Net | 501,490 | 580,138 |
Intangible assets, net of accumulated amortization | $ 501,490 | $ 594,019 |
Note 5 - Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|
Details | ||
Goodwill | $ 997,701 | $ 997,701 |
Note 5 - Intangible Assets: Finite-lived Intangible Assets Amortization Expense (Details) |
Dec. 31, 2015
USD ($)
|
---|---|
Details | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 27,581 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 29,007 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 29,007 |
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
|
Total Revenues | $ 7,554,255 | $ 12,516,699 | $ 22,528,792 | $ 41,382,465 | |
PROPERTY AND EQUIPMENT, net | 8,449,492 | 8,449,492 | $ 9,275,965 | ||
CANADA | |||||
Total Revenues | 1,906,031 | 3,727,730 | 5,244,284 | 13,260,794 | |
PROPERTY AND EQUIPMENT, net | 1,016,084 | 1,016,084 | 1,231,434 | ||
UNITED STATES | |||||
Total Revenues | 5,648,224 | $ 8,788,969 | 17,284,508 | $ 28,121,671 | |
PROPERTY AND EQUIPMENT, net | $ 7,433,408 | $ 7,433,408 | $ 8,044,531 |
Note 7 - Stock Based Compensation (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Details | ||
Stock options issued for services | $ 666,450 | $ 1,031,300 |
Remaining Compensation Expense Arising From Equity Awards Issued | $ 1,513,347 |
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