NOTE 6 - STOCK OPTIONS

3 Months Ended

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 6 – 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, the Company granted stock options to employees and members of the Board of Directors in the amount of 2,190,000. The Company recognized option expense of $13,457 due to the vesting of these options.

The Company issued 500,000 stock options during the nine months ended December 31, 2012. Of the 500,000 options issued, 200,000 will become exercisable at the time that the Company is selling 300 TAC Units per month. The remaining 300,000 options will vest at the rate of 100,000 each on June 30, 2013, 2014 and 2015. The Company recognized option expense of $5,624 due to the vesting of these options. A summary of the status of the Company’s stock options as of December 31, 2012 is presented below:

	December 31, 2012
Options outstanding at beginning of year	3,090,000
Options granted	500,000
Options exercised	-
Options canceled	(300,000)
Options outstanding at end of year	3,290,000

The following table summarizes the information about the stock options as of December 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	4.55	$	.12	1,120,000	$	.12
	.10-.15	800,000	.78		.12	800,000		.12
	.25	200,000	2.50		.25	-		-
	.50	300,000	3.50		.50	-		-
$	.10 – .15	3,290,000	3.68	$	.12	1,920,000	$	.12