10. STOCK COMPENSATION (Tables)

6 Months Ended

Sep. 30, 2012

Note 10. Stock Compensation

Components of share-based compensation expenses relating to shares and options granted

The following table summarizes share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and six months ended September 30, 2012 and 2011:

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Total share-based compensation expense	$	226,196		$	224,031		$	395,495		$	448,062
Total share-based compensation expense included in net loss	$	226,196		$	224,031		$	395,495		$	448,062
Basic and diluted loss per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)

Summary of share-based compensation expenses relating to shares and options granted

The following table breaks out the components of our share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and six months ended September 30, 2012 and 2011.

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Vesting of stock options		128,572			127,364			181,047			254,728
Incremental fair value of option modifications		957			–			21,114			–
Vesting expense associated with CEO restricted stock grant		96,667			96,667			193,334			193,334
Direct stock grants		–			–			–			–
Total share-based compensation expense	$	226,196		$	224,031		$	395,495		$	448,062
Total share-based compensation expense included in net loss	$	226,196		$	224,031		$	395,495		$	448,062
Basic and diluted loss per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)

Weighted average assumptions used to estimate the fair value information

The following outlines the significant weighted average assumptions used to estimate the fair value information presented, with respect to stock option grants utilizing the Binomial Lattice option pricing models at, and during the six months ended September 30, 2012:

Risk free interest rate	1.44%
Average expected life	7 years
Expected volatility	117.5%
Expected dividends	None

Options outstanding

Options outstanding that have vested and are expected to vest as of September 30, 2012 are as follows:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Contractual
	Shares		Price		Term in Years
Vested		18,333,294	$	0.30		3.93
Expected to vest		2,762,504	$	0.19		8.61
Total		21,095,798

Stock option activity

A summary of stock option activity during the six months ended September 30, 2012 is presented below:

	Amount		Range of Exercise  Price	Weighted Average Exercise  Price
Stock options outstanding at March 31, 2012		19,428,693	$0.21 - $0.41	$0.31
Exercised		–	$--
Issued		1,667,105	$0.076	$0.076
Cancelled/Expired		–	--
Stock options outstanding at September 30, 2012		21,095,798	$0.076 - $0.41	$0.28
Stock options exercisable at September 30, 2012		18,333,294	$0.076 - $0.41	$0.30