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Note 6. Advances from Customers

12 Months Ended

Mar. 31, 2013

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

Note 6. Advances from Customers

Under a three-year agreement with Stryker expiring in April 2014, we are the exclusive supplier of Stryker-branded flexible video and fiber cystoscopes. These cystoscopes employ our patented EndoSheath technology, which are co-branded Stryker and Vision-Sciences. We also supply Stryker with flexible ureteroscopes under an agreement expiring in December 2015. Stryker has the exclusive rights to distribute products we manufacture, including cystoscopes, urology EndoSheath technology, and ureteroscopes, in North America, South America, Latin America, China, and Japan. Although Stryker was to receive the exclusive rights for the rest of the world in April 2012, we reached an agreement with Stryker to delay this launch indefinitely.

We also have a development and supply agreement with SpineView, Inc. (“SpineView”) under which we developed and supply a charge-coupled device (CCD) based video surgical endoscope for use with SpineView’s products.

We received advances from Stryker for future orders of our scopes and EndoSheath technology in September 2010 and March 2011 and from SpineView for the initial stocking order of 50 SpineView surgical endoscope systems in September 2010. All of the advances were fully utilized as of September 30, 2012. The following table summarizes the activity related to these and other customer advances related to service contracts for fiscal years 2013 and 2012:

Fiscal Year Ended March 31, 2013	Stryker			SpineView			Other			Total
Beginning balance at April 1	$	117		$	420		$	135		$	672
Additional advances received		-			-			8			8
Revenue recognized		(117	)		(420	)		-			(537	)
Adjustments ⁽¹⁾		-			-			(143	)		(143	)
Ending balance at March 31	$	-		$	-		$	-		$	-

Fiscal Year Ended March 31, 2012	Stryker			SpineView			Other			Total
Beginning balance at April 1	$	4,433		$	1,255		$	5		$	5,693
Additional advances received		-			-			137			137
Revenue recognized		(4,288	)		(837	)		(7	)		(5,132	)
Sales tax		(28	)		-			-			(28	)
Adjustments		-			2			-			2
Ending balance at March 31	$	117		$	420		$	135		$	672

(1)

Amount reclassified to deferred revenue

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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