10. STOCK COMPENSATION (Tables)

9 Months Ended

Dec. 31, 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 nine months ended December 31, 2012 and 2011:

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	December 30, 2012			December 30, 2011			December 31, 2012			December 31, 2011
Total share-based compensation expense	$	175,045		$	161,440		$	570,540		$	609,503
Total share-based compensation expense included in net loss	$	175,045		$	161,440		$	570,540		$	609,503
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 nine months ended December 31, 2012 and 2011.

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Vesting of stock options	$	77,421		$	64,773		$	258,468		$	319,503
Incremental fair value of option modifications		957			–			22,071			–
Vesting expense associated with CEO restricted stock grant		96,667			96,667			290,001			290,000
Direct stock grants		–			–			–			–
Total share-based compensation expense	$	175,045		$	161,440		$	570,540		$	609,503
Total share-based compensation expense included in net loss	$	175,045		$	161,440		$	570,540		$	609,503
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 nine months ended December 31, 2012:

Risk free interest rate	1.44%
Average expected life	10 years
Expected volatility	117.5%
Expected dividends	None

Options outstanding

Options outstanding that have vested and are expected to vest as of December 31, 2012 are as follows:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Contractual
	Shares		Price		Term in Years
Vested		19,079,126	$	0.29		3.87
Expected to vest		2,016,672	$	0.17		7.72
Total		21,095,798	$	0.28		4.24

Stock option activity

A summary of stock option activity during the nine months ended December 31, 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 December 31, 2012		21,095,798	$0.076 - $0.41	$0.28
Stock options exercisable at December 31, 2012		19,079,126	$0.076 - $0.41	$0.29