NOTE 7 - STOCK OPTIONS

3 Months Ended

Dec. 31, 2011

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

NOTE 7 – STOCK OPTIONS

On July 24, 2001, the Company filed with the SEC Form S-8, for its 2002 Stock Option Plan, (the Plan). An aggregate amount of common stock that may be awarded and purchased under the Plan is 3,000,000 shares of the Company’s common stock. Under the Plan during the nine months ended December 31, 2011, the Company granted 2,190,000 options under the plan. At December 31, 2011 there were 2,190,000 options issued under the Plan and no other options were available to issue under the Plan.

The Company also issues stock options to purchase Rule 144 restricted common stock which is not issued under the Plan. During the nine months ended December 31, 2011 the Company issued 300,000 options as part of the TAC Unit acquisition. At December 31, 2011, there were 600,000 options issued not under the Plan

The Company estimated the fair value of each stock option for employees and consultants at the grant date by using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants as follows:

Dividends yield		0	%
Expected volatility		2.04	%
Risk-free interest rate		.08	%
Expected life	6 to 2 years

For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options’ vesting period.

A summary of the status of the Company’s stock options as of December 31, 2011 and March 31, 2011 is presented below:

	December 31,			March 31,
	2011			2011
Options outstanding at beginning of year		1,285,000			3,880,800
Options granted		2,490,000			300,000
Options exercised		-			-
Options canceled		(985,000	)		(2,895,800	)
Options outstanding at end of year		2,790,000			1,285,000

The following table summarizes the information about the stock options as of December 31, 2011:

Range of Exercise Price		Number Outstanding at December 31, 2011		Weighted Average Remaining Contractual Life Years		Weighted Average Exercise Price (Total shares)		Number Exercisable at December 31, 2011		Weighted Average Exercise Price (Exercisable shares)
$	.12		2,190,000		5.56	$	.12		-	$	-
	.15		300.000		1.51		.15		300,000		.15
	.05		300,000		.44	$	.05		300,000		.05
$	.05 – .15		2,790,000		4.57	$	.12		300,000	$	.10

The following table summarizes the information about the stock options as of March 31, 2011:

Range of Exercise Price		Number Outstanding at March 31, 2011		Weighted Average Remaining Contractual Life Years		Weighted Average Exercise Price (Total shares)		Number Exercisable at March 31, 2011		Weighted Average Exercise Price (Exercisable shares)
$	.40 - .66		330,000		.26	$	.56		330,000	$	.56
	.43		200,000		.26		.43		200,000		.43
	.38		135,000		.31		.38		135,000		.38
	.06 - 51		320,000		.31		.38		320,000		.38
	.05		300,000		1.21		.05		300,000		.05
$	.05 – .66		1,285,000		.49	$	.36		1,285,000	$	.36