8. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets

Significant components of our net deferred tax assets at March 31, 2021 and 2020 are shown below:

	YEAR ENDED MARCH 31,
	2021			2020
Deferred tax assets:
Capitalized research and development	$	3,442,000		$	3,442,000
Net operating loss carryforwards1		19,921,000			18,384,000
Stock compensation		1,399,000			1,181,000
Total deferred tax assets		24,762,000			23,007,000
Total deferred tax liabilities		–			–
Net deferred tax assets		24,762,000			23,007,000
Valuation allowance for deferred tax assets		(24,762,000	)		(23,007,000	)
Net deferred tax assets	$	–		$	–

Provision for income taxes

The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate for the years ended March 31, 2021 and 2020 due to the following:

	2021			2020
Income taxes (benefit) at federal statutory rate of 21.00%	$	(1,657,000	)	$	(1,340,000	)
State income tax, net of federal benefit		(551,000	)		(446,000	)
Tax effect on non-deductible expenses and credits		1,000			122,000
True up items		25,000			42,000
Expiration of net operating loss carryforwards		427,000			222,000
Change in valuation allowance		1,755,000			1,400,000
	$	–		$	–

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