10. STOCK COMPENSATION (Tables)

3 Months Ended

Jun. 30, 2013

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

Components of share-based compensation expenses relating to shares and options granted

The following tables summarize share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three months ended June 30, 2013 and 2012:

	June 30, 2013			June 30, 2012
Vesting of stock options	$	50,387		$	52,794
Incremental fair value of option modifications		957			19,838
Vesting expense associated with CEO restricted stock grant		64,444			96,667
Total stock-based compensation expense	$	115,788		$	169,299
Basic and diluted loss per common share	$	(0.00	)	$	(0.00	)

Weighted average assumptions used to estimate the fair value information

The following outlines the significant weighted average assumptions used to estimate the fair value information presented, with respect to stock option grants utilizing the Binomial Lattice option pricing models at, and during the three months ended June 30, 2013: 

Risk free interest rate	0.38%
Average expected life	3 years
Expected volatility	94.6%
Expected dividends	None

Options outstanding

Options outstanding that have vested and are expected to vest as of June 30, 2013 are as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years
Vested		20,204,123	$	0.28		3.86
Expected to vest		1,016,675	$	0.25		7.88
Total		21,220,798

Stock option activity

A summary of stock option activity during the three months ended June 30, 2013 is presented below:

	Amount		Range of Exercise Price		Weighted Average Exercise Price
Stock options outstanding at March 31, 2013		21,095,798	$	0.076 - $0.41	$	0.28
Exercised		–		–
Granted		125,000		0.11	$	0.11
Cancelled/Expired		–		–
Stock options outstanding at June 30, 2013		21,220,798	$	0.076 - $0.41	$	0.28
Stock options exercisable at June 30, 2013		20,204,123	$	0.076 - $0.41	$	0.28