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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)
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6 Months Ended |
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Aug. 31, 2014
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| NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
| THE NATURE OF OPERATIONS |
THE NATURE OF OPERATIONS
Repro-Med Systems, Inc. (the “Company”) designs, manufactures, and markets proprietary medical devices primarily for the ambulatory infusion market and emergency medical applications. The FDA regulates these products. We use the d/b/a (doing business as) name RMS Medical Products, and use RMS as part of the branding of some products. |
| BASIS OF PRESENTATION |
BASIS OF PRESENTATION
The accompanying unaudited financial statements as of August 31, 2014 have been prepared in accordance with generally accepted accounting principles in accordance with instructions to regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial presentation.
In the opinion of the Company's management, the financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company's financial position as of August 31, 2014, and the results of operations and cash flow for the three-month and six-month periods ended August 31, 2014, and 2013.
The results of operations for the three months and six months ended August 31, 2014, and 2013 are not necessarily indicative of the results to be expected for the full year. These interim financial statements should be read in conjunction with the financial statements and notes thereto of the Company and management's discussion and analysis of financial condition and results of operations included in the Company's Annual Report for the year ended February 28, 2014, as filed with the Securities and Exchange Commission on Form 10-K. |
| EMPLOYEE STOCK AWARDS |
EMPLOYEE STOCK AWARDS
In July 2012, 1,465,000 shares were authorized to issue to employees as share compensation valued at $0.18 per share, the market value on the date of the board authorization. The value of these shares will be amortized into operations over the one to two year restriction on the shares. Amortization amounted to $25,875 and $38,925 for the three-months ended August 31, 2014, and August 31, 2013, respectively; and $51,750 and $80,100 for the six-months ended August 31, 2014, and August 31, 2013, respectively. Vesting of all shares was completed on August 31, 2014. |
| CONSULTING AGREEMENT WITH DIRECTOR |
CONSULTING AGREEMENT WITH DIRECTOR
On December 20, 2013, we executed an agreement effective March 1, 2014, with a Company director, Dr. Mark Baker, to provide clinical research and support services related to new and enhanced applications for the FREEDOM60® Syringe Infusion System. Authorized by the Board of Directors, the agreement provides for payment of 420,000 shares of common stock valued at $0.20 per share over a three-year period. Amortization amounted to $7,000 and $14,000 for the three-months and six-months ended August 31, 2014, respectively. In August 2014, Dr. Baker was paid a previously approved bonus of $25,000 assist him in covering taxes due on the grant of common stock. |
| SALE OF COMMON STOCK AND WARRANTS |
SALE OF COMMON STOCK AND WARRANTS
On August 8, 2014, the Company executed an agreement with Horton Capital Partners Fund, an institutional investor based in Philadelphia, PA, to sell one million shares of our common stock and warrants to purchase an additional one million shares of common stock at an exercise price of $0.45 per share. The aggregate purchase price was $288,000. Fees associated with this transaction totaled $15,000, for net proceeds of $273,000. |
| USE OF ESTIMATES IN THE FINANCIAL STATEMENTS |
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include, but are not limited to, asset lives, valuation allowances, inventory, and accruals. |
| LEGAL PROCEEDINGS |
LEGAL PROCEEDINGS
We commenced a declaratory judgment action in 2013 to establish the invalidity and non-infringement of claims of a patent of a competitor that alleged that our needle sets would infringe. The defendant answered the complaint and asserted various counterclaims that we believe are without merit. We subsequently added claims against the defendant to show that the defendant had engaged in various unfair business practices. The litigation is in early stage discovery. |
| SUBSEQUENT EVENTS EVALUATION |
SUBSEQUENT EVENTS EVALUATION
The Company has evaluated subsequent events through October 15, 2014, the date on which the financial statements were issued. There were no material subsequent events that required recognition or additional disclosure in the financial statements. |
| EMERGING ACCOUNTING STANDARDS |
EMERGENCING ACCOUNTING STANDARDS
In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently reviewing the provisions of this ASU to determine if there will be any impact on its results of operations, cash flows or financial condition.
Management does not believe that any of the other standards adopted by the Financial Accounting Standards Board, but which are not yet effective, will have a material effect on the Company's financial reporting. |
| LEASED AIRCRAFT |
LEASED AIRCRAFT
The Company leases an aircraft from a company controlled by the president. The lease payments aggregated were $5,375 for the three-months ended August 31, 2014, and August 31, 2013, and $10,750 for the six months ended August 31, 2014, and August 31, 2013. The original lease agreement has expired and the Company is currently on a month-to-month basis for rental payments. |