Deferred Revenues

6 Months Ended

Sep. 30, 2015

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

5. DEFERRED REVENUES

On August 22, 2013, the Company entered into a regional distribution and service provider agreement with Energia Vehicular Limpia S.A. de C.V. (“Energia”). Pursuant to the agreement, Energia has the exclusive rights to market the Company’s products in Mexico for five years. For the exclusive distribution rights, Energia paid a $500,000 license fee to the Company. On January 16, 2014, the Company and Energia further amended the regional distribution and service provider agreement to include the exclusive right to market the Company’s products in Brazil for a license fee of $160,000 during the same period of the original agreement. On April 9, 2014, the Company and Energia further amended the regional distribution agreement and service provider agreement to add consulting/advisory services to be provided by the Company to Energia for an 18-month period beginning April 1, 2014. Energia paid the Company $217,000 for these services. License fee and consulting/advisory service fees are recognized ratably over the term of each agreement. During the six months ended September 30, 2015, $138,333 in revenue related to the license and consulting/advisory fees was recorded. As of September 30, 2015, $374,000 of cash received was deferred.

During the year ended March 31, 2014, the Company also received from Energia, a deposit in the amount of $180,000 for Hydroplant units to be shipped in the future.