Subsequent Events

12 Months Ended

Mar. 31, 2013

Subsequent Events

Subsequent Events

10. Subsequent Events

Management evaluated all activity of us and concluded that, except for the events that follows, no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

On April 16, we signed an agreement with Virtual Ports Ltd. (“Virtual Ports”) for exclusive distribution rights to the Virtual Ports’ laparoscopic organ retraction products in the United States. Under the terms of the agreement, we will market and sell Virtual Ports’ organ retraction products.

In May 2013, we extended our equipment lease with General Electric Capital Corporation. The lease will be considered to be a capital lease. As such, we will increase our equipment asset and increase our liabilities by $177,547.

In March 31, 2013, we were included in one legal proceeding related to a product of another manufacturer that was not distributed by, nor associated in any way with us, but we were included as one of the defendants in the proceeding. Subsequent to March 31, 2013, the number of legal proceedings related to this matter was increased to five.

Our credit facility agreement with Silicon Valley Bank requires us to meet certain financial covenants. During our quarter ended June 30, 2013, we failed to meet the minimum defined quick ratio covenant. As a result, the lender may impose a monthly maintenance fee, require additional financial reporting and restricts our borrowings to the beginning of each week instead of when needed.