Commitments, Contingencies, Guarantees and Indemnifications

12 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, Guarantees and Indemnifications

From time to time, the Company may become involved in claims and other legal matters arising in the ordinary course of business. Management is not currently aware of any matters that will have a material adverse effect on the Company’s consolidated financial position, results of operations or its cash flows.

The Company indemnifies its officers and directors for certain events or occurrences while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The Company will indemnify the officers or directors against any and all expenses incurred by the officers or directors because of their status as one of the Company’s directors or executive officers to the fullest extent permitted by California law. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements.  The Company has a director and officer insurance policy which limits the Company's exposure and may enable it to recover a portion of any future amounts paid.  The Company believes the fair value of these indemnification agreements is minimal. Accordingly, there are no liabilities recorded for these agreements at March 31, 2013 or 2012.

In the normal course of business, the Company provides indemnifications of varying scopes under agreements with other companies, typically clinical research organizations, investigators, clinical sites, suppliers and others.  Pursuant to these agreements, the Company generally indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with the use or testing of the Company's product candidates or with any U.S. patents or any copyright or other intellectual property infringement claims by any third party with respect to the Company's product candidates.  The terms of these indemnification agreements are generally perpetual.  The potential future payments the Company could be required to make under these indemnification agreements is unlimited.  The Company maintains liability insurance coverage that limits its exposure.  The Company believes the fair value of these indemnification agreements is minimal.  Accordingly, the Company has not recorded any liabilities for these agreements as of March 31, 2013 or 2012.

Leases

As of March 31, 2013 and 2012, the following assets are under capital lease obligations and included in property and equipment:

	March 31,
	2013			2012
Leased laboratory and computer equipment	$	133,200		$	139,700
Accumulated amortization		(114,900	)		(119,200	)
	$	18,300		$	20,500

Amortization expense for assets recorded under capital leases is included in depreciation expense.  Future minimum payments, by year and in the aggregate, required under capital leases are as follows:

	Equipment
Fiscal Years Ending March 31,	Capital Leases
2014	$	8,600
2015		4,300
2016		1,200
2017		1,200
2018		100
Future minimum lease payments		15,400
Less imputed interest included in minimum lease payments		(1,700	)
Present value of minimum lease payments		13,700
Less current portion		(7,600	)
Non-current capital lease obligation	$	6,100

At March 31, 2013, future minimum payments under operating leases relate to the Company’s facility lease in South San Francisco, California through June 30, 2013 and total $45,000 for the fiscal year ended March 31, 2014.  See Note 16, Subsequent Events.  Total facility rent expense incurred by the Company for the fiscal years ended March 31, 2013 and 2012 was $179,000 and $166,000, respectively.

Long-Term Debt Repayment

At March 31, 2013, future minimum principal payments related to long-term debt were as follows:

Fiscal Years Ending March 31,	Amount
2014	$	684,200
2015		609,800
2016		541,700
2017		185,800
2018		18,000
Thereafter through October 2023		71,600
	$	2,111,100