Restatements

9 Months Ended

Dec. 31, 2019

Restatement [Abstract]

RESTATEMENTS

NOTE 3: RESTATEMENTS

In connection with the preparation of the Company's consolidated financial statements as of and for the fiscal year ended March 31, 2019, the Company identified inadvertent errors in the accounting for certain embedded derivative liabilities associated with warrants issued as a part of capital raises in 2017 and 2018. In connection with those capital raises, proceeds (net of fees) were accounted for as equity. Upon further evaluation, the Company determined that a portion of the capital raised should have been accounted for as liabilities with fair value changes recorded in the Company's consolidated statements of operations. Accordingly, the Company restated its previously issued consolidated financial statements and the related disclosures for the fiscal year ended March 31, 2018 and interim periods in fiscal years 2018 and 2019 as well as an adjustment to the opening balance sheet for the first interim period of fiscal 2018 (the "Restated Periods"). The adjustment to the opening balance sheet as of April 1, 2017 consisted of establishing a current derivative liability of $3,351, offset by a reduction in additional paid-in-capital of $4,180 and a reduction of accumulated deficit of $829.

The categories of misstatements and their impact on previously reported consolidated financial statements are described below:

Derivative Liability: The recognition, measurement and presentation and disclosure related to the warrants issued in conjunction with reserved private placements of the Company's common stock.

Stockholders' Deficit: The measurement and presentation and disclosure related to the derivative liability associated with the warrants issued in conjunction with the reserved private placements originally classified as additional paid in capital.

Change in Fair Value of Derivative Liabilities: The recognition, measurement and presentation and disclosure related to changes in the fair value of the derivative liability

In addition to the restatement of the financial statements, certain information within the notes to the financial statements referred to below that were included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2019 were impacted. Therefore, the interim condensed consolidated financial statements should be read in conjunction with that Annual Report on Form 10-K.

Note 1: Organization and Summary of Significant Accounting Policies

Note 9: Warrant Derivative Liabilities

Note 13: Stockholders' Equity (Deficit)

Note 18: Fair Value Measurements

The financial statement misstatements reflected in previously issued consolidated financial statements did not impact cash flows from operations, investing, or financing activities in the Company's consolidated statements of cash flows for any period previously presented, however they did impact individual line items.

Comparison of restated financial statements to financial statements as previously reported

The following tables compare the Company's previously issued Consolidated Balance Sheet, Consolidated Statement of Operations and Consolidated Statement of Cashflows for the periods ended December 31, 2018 to the corresponding restated consolidated financial statements for those periods.

CONSOLIDATED BALANCE SHEET

	December 31,			Restatement			December 31,
	2018			Adjustments			2018
	(As Reported)						(Restated)
ASSETS
CURRENT ASSETS
Cash ($35 pledged as collateral for credit)	$	846					$	846
Accounts receivable, net of allowance of $87		1,245						1,245
Prepaid expenses and other current assets		207						207
Current assets held for sale		617						617
Total current assets		2,915						2,915
NON-CURRENT ASSETS
Property and equipment, net		2,132						2,132
Intangible assets, net		1,130						1,130
Non-current assets held for sale		820						820
Other assets		27						27
Total non-current assets		4,109						4,109
TOTAL ASSETS	$	7,024					$	7,024
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,427					$	1,427
Accrued liabilities		919						919
Note payable		1,000						1,000
Warrant derivative liabilities		-		$	3,641			3,641
Current liabilities held for sale		10						10
Total current liabilities		3,356			3,641			6,997
COMMITMENTS AND CONTINGENCIES
Total liabilities		3,356			3,641			6,997
STOCKHOLDERS' EQUITY (Numbers of shares rounded to thousands)
Preferred stock, $0.001 par value; 5,000 shares authorized; none issued
Common stock, $0.001 par value; 100,000 shares authorized, 52,571 shares issued and 51,986 shares outstanding		53						53
Additional paid-in-capital		129,550			(16,409	)		113,141
Accumulated deficit		(124,264	)		12,768			(111,496	)
Treasury stock, at cost		(1,671	)					(1,671	)
Total stockholders' equity		3,668			(3,641	)		27
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,024		$	-		$	7,024

CONSOLIDATED STATEMENT OF OPERATIONS

	Three Months Ended								Nine Months Ended
	December 31, 2018								December 31, 2018
	(As Reported)			Restatement Adjustments		(Restated)			(As Reported)			Restatement Adjustments		(Restated)
CONTINUING OPERATIONS:
REVENUES	$	15				$	15		$	1,054				$	1,054
COST OF REVENUES		17					17			653					653
GROSS PROFIT (LOSS)		(2	)				(2	)		401					401
OPERATING EXPENSES:
Selling, general and administrative		1,943					1,943			6,527					6,527
Depreciation, amortization, and impairment		306					306			924					924
Research and development		900					900			2,541					2,541
Total operating expenses		3,149					3,149			9,992					9,992
Loss from continuing operations before other expenses		(3,151	)				(3,151	)		(9,591	)				(9,591	)
OTHER INCOME (EXPENSE):
Change in fair value of derivative liability				$	1,587	$	1,587					$	2,623		2,623
(Interest expense), net of interest income		(362	)				(362	)		(369	)				(369	)
Total other expenses		(362	)		1,587		1,225			(369	)		2,623		2,254
LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES		(3,513	)		1,587		(1,926	)		(9,960	)		2,623		(7,337	)
DISCONTINUED OPERATIONS:
Loss from discontinued operations		(757	)				(757	)		(1,923	)				(1,923	)
Gain on disposal of discontinued operations		-					-			-					-
Total discontinued operations		(757	)				(757	)		(1,923	)				(1,923	)
PROVISION FOR INCOME TAXES		-					-			-					-
NET LOSS	$	(4,270	)		1,587	$	(2,683	)	$	(11,883	)		2,623	$	(9,260	)
NET LOSS PER SHARE
Basic and diluted: Continuing operations	$	(0.07	)			$	(0.04	)	$	(0.20	)			$	(0.14	)
Discontinued operations		(0.01	)				(0.01	)		(0.04	)				(0.04	)
Total	$	(0.08	)			$	(0.05	)	$	(0.24	)			$	(0.18	)
SHARES USED IN CALCULATION OF NET LOSS PER SHARE
Basic and diluted		51,974					51,974			50,489					50,489

CONSOLIDATED STATEMENT OF CASH FLOWS

	Nine Months Ended
	December 31, 2018
	As Reported			Restatement Adjustments			Restated
Cash flows from operating activities:
Net loss	$	(11,883	)	$	2,623		$	(9,260	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and impairment		924						924
Shares of common stock issued for services rendered		305						305
Share-based compensation – stock – employees		2,604						2,604
Loss from discontinued operations		1,923						1,923
Change in fair value of derivative liabilities		-			(2,623	)		(2,623	)
Changes in assets and liabilities:
Accounts receivable		1,372						1,372
Inventory		4						4
Prepaid expenses		13						13
Other current assets		45						45
Accounts payable		(943	)					(943	)
Accrued liabilities		(174	)					(174	)
Net cash used in operating activities of continuing operations		(5,810	)					(5,810	)
Net cash used in discontinued operations		(1,472	)					(1,472	)
Net cash used in operating activities		(7,282	)					(7,282	)
Cash flows from investing activities:
Purchases of property and equipment		(21	)					(21	)
Net cash used in investing activities of continuing operations		(21	)					(21	)
Net cash used in investing activities of discontinued operations		(249	)					(249	)
Net cash used in investing activities		(270	)					(270	)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of fees		4,221						4,221
Proceeds from credit facility		1,000						1,000
Repayment of debt		(500	)					(500	)
Purchase of treasury shares from employees for tax withholdings		(53	)					(53	)
Net cash provided by financing activities		4,668						4,668
NET DECREASE IN CASH		(2,884	)					(2,884	)
Cash - beginning of period		3,730						3,730
Cash - end of period	$	846					$	846
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$	366					$	366
Cash paid for income taxes	$	-					$	-