Commitments And Contingencies

9 Months Ended

Dec. 31, 2015

Commitments And Contingencies [Abstract]

Commitments And Contingencies

(13) Commitments and Contingencies

Employment Agreements

On July 21, 2015, the Company entered into new employment agreements with its then four officers that expire on June 30, 2017. The aggregate future base salary payable to the executive officers over their remaining terms is $1,347,975. The July, 2015 employment agreements provide for future retention payments under the conditions and for the amounts specified in the agreements. These retention payments are being recorded over the required service period and as a result, we have recorded a liability of $85,555 as of December 31, 2015. As of March 31, 2015 we had a liability of $268,357 representing the potential future compensation payable under the retirement and voluntary termination provisions of the previous employment agreements of the Company’s officers. These retirement and severance provisions were eliminated from the previous employment agreements when they were renewed in July, 2015.  

Litigation

In November, 2015, we were notified that a supplier of electronic components under the former CODA automotive program had filed a lawsuit against us alleging breach of contract. The former supplier is seeking liquidated damages totaling $644,199, plus attorney fees, court costs, and prejudgment and post judgment interest.  We have recorded a liability of $774,974 for vendor settlements as of both December 31, 2015 and March 31, 2015.  We are in discussions with the supplier in an attempt to reach a settlement.   If a settlement is not reached and the case goes to trial, the ultimate loss to the Company, if any, may exceed the carrying value of our accrual for vendor settlements under the CODA program.   

In addition, we are involved in various claims and legal actions arising in the ordinary course of business.  In the opinion of management, and based on current available information, the ultimate disposition of these matters is not expected to have a material adverse effect on our financial position, results of operations or cash flow, although adverse developments in these matters could have a material impact on a future reporting period.