NOTE 7 - STOCK OPTIONS

12 Months Ended

Mar. 31, 2012

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 years ended March 31, 2012 and 2011, the Company granted stock options to employees and members of the Board of Directors in the amount of 2,190,000 and -0-. At March 31, 2012 there were 1,990,000 options issued under the Plan and there were no available options to be issued under the Plan.

The Company also issues stock options to purchase common stock outside of the Plan. During the years ended March 31, 2012 and 2011, the Company granted 800,000 and 300,000 such options for 24 months at exercise prices from $0.15 to $0.10 per share to unrelated entities. At March 31, 2012 and 2011, there were 1,100,000 and 300,000 such options outstanding.

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	%
Computed volatility	115	%
Risk-free interest rate	.63	%
Expected life	2 to 6 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 March 31, 2012 and 2011 is presented below:

	2012			2011
Options outstanding at beginning of year		1,285,000			3,880,800
Options granted		2,990,000			300,000
Options exercised		-			-
Options canceled		(1,185,000	)		(2,895,800	)
Options outstanding at end of year		3,090,000			1,285,000

The following table summarizes the information about the stock options as of March 31, 2012:

Range of Exercise Price		Number Outstanding	Weighted Average Remaining Contractual Life Years	Weighted Average Exercise Price (Total shares)		Number Exercisable	Weighted Average Exercise Price (Exercisable shares)
$	.12	1,990,000	5.30	$	.12	1,120,000	$	.12
	.10-.15	800.000	1.60		.12	800,000		.12
	.05	300,000	.19	$	.05	300,000		.05
$	.05 – .15	3,090,000	3.85	$	.11	2,220,000	$	.11

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

Range of Exercise Price		Number Outstanding	Weighted Average Remaining Contractual Life Years	Weighted Average Exercise Price (Total shares)		Number Exercisable	Weighted Average Exercise Price (Exercisable shares)
$	.40 - .66	330,000	.25	$	.56	330,000	$	.56
	.43	200,000	.25		.43	200,000		.43
	.38	135,000	.31		.38	135,000		.38
	.06 - 51	320,000	.31		.38	320,000		.38
	.05	300,000	1.19		.05	300,000		.05
$	.05 – .66	1,285,000	.49	$	.36	1,285,000	$	.36