8. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2017

Income Taxes Tables

Schedule of deferred tax assets

	YEAR ENDED MARCH 31,
	2017			2016
Deferred tax assets:
Capitalized research and development	$	3,442,000		$	3,442,000
Net operating loss carryforwards		22,060,000			20,126,000
Stock compensation		318,000			–
Total deferred tax assets		25,820,000			23,568,000
Total deferred tax liabilities		–			–
Net deferred tax assets		25,820,000			23,568,000
Valuation allowance for deferred tax assets		(25,820,000	)		(23,568,000	)
Net deferred tax assets	$	–		$	–

Provision for income taxes

	2017			2016
Income taxes (benefit) at federal statutory rate of 34%	$	(2,484,000	)	$	(1,686,000	)
State income tax, net of federal benefit		(438,000	)		(298,000	)
Tax effect on non-deductible expenses and credits		382,000			69,000
Change in valuation allowance1		2,540,000			1,915,000
	$	–		$	–

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