Income Taxes

12 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(5) Income Taxes

No provisions for income tax expense were recorded for the years ended March 31, 2012 and 2011. This differs from that which would have resulted when applying the statutory Federal income tax rate as a result of the following items:

	2012						2011
	Amount			Percent			Amount			Percent
Expected income tax benefit at the effective tax rate	$	259,000			(40	)%	$	446,000			(40	)%
Increase in valuation allowance		(259,000	)		40			(446,000	)		40
Actual income tax expense	$	—			—		$	—			—

The tax effects of temporary differences comprising the Company’s deferred tax assets at March 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	1,944,000		$	1,718,000
Stock-based compensation		379,000			346,000
Allowance for doubtful accounts receivable		8,000			8,000
Capital loss carryforwards		249,000			249,000
Valuation allowance		(2,580,000	)		(2,321,000	)
	$	—		$	—

At March 31, 2012, the Company had net operating loss carryforwards of approximately $4,882,000 for Federal income tax purposes, which will be available to reduce future taxable income. The Company also has a capital loss carryforward of approximately $732,000 at March 31, 2012 which may be utilized to offset future capital gains.

Based upon the uncertainty of whether the Company’s net operating losses (“NOLs”) or capital loss carryforwards may ultimately be utilized prior to their respective expirations, valuation allowances of $259,000 and $446,000 were recorded during the years ended March 31, 2012 and 2011, respectively. Benefits currently considered unrealizable could be adjusted in the future if estimates of future taxable income during the carryforward period are revised.

The utilization of such NOLs and capital loss carryforwards is subject to certain limitations under Federal income tax laws. The Company’s NOLs and capital loss carryforwards, if unutilized, will expire in various fiscal years ending March 31, 2023 through March 31, 2032 and March 31, 2014, respectively.