Capital Stock (Tables)

12 Months Ended

Mar. 31, 2014

Capital Stock Tables

Unit Warrant grants and allocation of Proceeds

2013/2014 Unit Warrants

Weighted Average Issuance Date Valuation Assumptions

Per Share

Aggregate

Aggregate

Aggregate Allocation of Proceeds

Warrant

Risk free

Fair

Fair Value

Proceeds

Based on Relative Fair Value of:

Shares

Market

Exercise

Term

Interest

Dividend

Value of

of Unit

of Unit

Unit

Issued

Price

Price

(Years)

Rate

Volatility

Rate

Warrant

Warrants

Sales

Unit Stock

Warrant

Unit Note

2,015,000

$     0.45

$     1.00

2.68

0.58%

76.29%

0.0%

$          0.13

$  254,700

$   1,007,500

$    415,000

$    111,400

$      481,100

2014 Unit Warrants

Weighted Average Issuance Date Valuation Assumptions

Per Share

Aggregate

Aggregate

Aggregate Allocation of Proceeds

Warrant

Risk free

Fair

Fair Value

Proceeds

Based on Relative Fair Value of:

Shares

Market

Exercise

Term

Interest

Dividend

Value of

of Unit

of Unit

Unit

Issued

Price

Price

(Years)

Rate

Volatility

Rate

Warrant

Warrants

Sales

Unit Stock

Warrant

Unit Note

50,000

$     0.46

$     0.50

2.80

0.66%

74.94%

0.0%

$          0.21

$    10,400

$        50,000

$      13,800

$        6,200

$        30,000

Black-Scholes Option Pricing Model

	March 31,
	2014			2013
Market price of common stock	$	0.46		$	0.83
Exercise price per share	$	0.49 to $0.50		$	0.50
Risk-free interest rate		1.73	%		0.77	%
Volatility		75	%		85	%
Term (years)	3.5 to 5.0			4.5 to 5.0
Dividend rate		0	%		0	%
Probability of Series A Preferred exchange		95	%		95	%
Fair value per share	$	0.26 to $0.29		$	0.59 to $0.62

Assumption:	Pre-modification		Post-modification
Market price per share at modification date	$	0.50	$	0.50
Exercise price per share (weighted average)	$	1.50	$	1.23
Risk-free interest rate (weighted average)		0.33%		0.44%
Contractual term in years (weighted average)		1.40		2.10
Volatility (weighted average)		74.4%		75.8%
Dividend rate		0.0%		0.0%
Weighted Average Fair Value per share	$	0.05	$	0.11

Assumption:	Pre-modification		Post-modification
Market price per share at modification date	$	0.40	$	0.40
Exercise price per share (weighted average)	$	1.67	$	0.50
Risk-free interest rate (weighted average)		0.51%		0.57%
Contractual term in years (weighted average)		2.06		2.34
Volatility (weighted average)		73.6%		74.4%
Dividend rate		0.0%		0.0%
Weighted Average Fair Value per share	$	0.05	$	0.14

Assumption:	Pre-modification		Post-modification
Market price per share at modification date	$	0.46	$	0.46
Exercise price per share (weighted average)	$	1.41	$	1.19
Risk-free interest rate (weighted average)		0.07%		0.18%
Contractual term in years (weighted average)		0.40		1.34
Volatility (weighted average)		68.7%		69.9%
Dividend rate		0.0%		0.0%
Weighted Average Fair Value per share	$	0.01	$	0.06

Assumption:	Pre-modification		Post-modification
Market price per share (weighted average)	$	0.60	$	0.60
Exercise price per share (weighted average)	$	2.51	$	1.50
Risk-free interest rate (weighted average)		0.21%		0.21%
Expected term in years (weighted average)		1.38		1.38
Volatility (weighted average)		80.8%		80.8%
Dividend rate		0.0%		0.0%
Weighted Average Fair Value per share	$	0.03	$	0.07

Assumption:	Pre-modification		Post-modification
Market price per share (weighted average)	$	1.95	$	1.95
Exercise price per share (weighted average)	$	2.75	$	0.50
Risk-free interest rate (weighted average)		0.29%		0.06%
Expected term in years (weighted average)		1.93		0.12
Volatility (weighted average)		78.0%		85.7%
Dividend rate		0.0%		0.0%
Weighted Average Fair Value per share	$	0.64	$	1.45

Description of units

					Shares Subject to
Exercise			Weighted Average		Purchase at
Price		Expiration	Years to		March 31,
per Share		Date	Expiration		2014
$	0.50	12/31/2014 to 3/19/2019		3.34		5,856,983
$	0.64	3/3/2023		8.92		2,940,000
$	0.88	5/31/2015		1.17		15,428
$	1.00	7/30/2016 to 9/30/2017		3.05		5,326,029
$	1.25	12/31/2014 to 5/31/2015		0.8		50,280
$	1.50	11/4/2014 to 3/4/2018		2.45		2,353,052
$	2.00	9/15/2017		3.46		425,000
$	2.50	5/31/2015		1.17		42,443
$	2.625	1/31/2015		0.84		61,418
$	3.00	2/13/2016		1.87		25,000
				4.07		17,095,633

Shares reserved for future issuance

Upon exchange of all shares of Series A Preferred Stock currently issued and outstanding (1)	15,000,000
Warrant shares issuable to Platinum upon exercise of common stock warrant upon exchange of Series A preferred stock under the terms of the October 11, 2012 Note Purchase and Exchange Agreement	7,500,000
110% of shares issuable upon conversion of 10% convertible Exchange Note and Investment Notes issued to Platinum in October 2012, February 2013 and March 2013, including interest accrued through maturity (2)	11,227,423
Pursuant to warrants to purchase common stock:
Subject to outstanding warrants	17,095,633
Issuable pursuant to accrued interest through maturity on outstanding promissory notes
issued to Morrison & Foerster, Cato Research Ltd., and University Health Network	938,971
	18,034,604
Pursuant to stock incentive plans:
Subject to outstanding options under the 2008 and 1999 Stock Incentive Plans	4,249,271
Available for future grants	735,200
	4,984,471
Upon conversion of notes and accrued interest issued pursuant to the Winter 2013/2014 Private Placement of Units	2,470,000
Upon further sales of Units in the Spring 2014 Private Placement of Units	14,900,000
Upon further sale of shares to Autilion under the amended Securities Purchase Agreement	71,950,000
Total	146,066,498