8. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

Income Taxes Tables

Schedule of deferred tax assets

	YEAR ENDED MARCH 31,
	2016			2015
Deferred tax assets:
Capitalized research and development	$	3,442,000		$	3,442,000
Net operating loss carryforwards		20,126,000			17,927,000
Total deferred tax assets		23,568,000			21,369,000
Total deferred tax liabilities		–			–
Net deferred tax assets		23,568,000			21,369,000
Valuation allowance for deferred tax assets		(23,568,000	)		(21,369,000	)
Net deferred tax assets	$	–		$	–

Provision for income taxes

	2016			2015
Income taxes (benefit) at federal statutory rate of 34%	$	(1,686,000	)	$	(2,373,000	)
State income tax, net of federal benefit		(298,000	)		(418,000	)
Tax effect on non-deductible expenses and credits		69,000			1,524,000
Change in valuation allowance1		1,915,000			1,267,000
	$	–		$	–

______________

⁽¹⁾ Pursuant to Internal Revenue Code Sections 382, use of our tax net operating loss carryforwards may be limited.