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</LabelSeparator><Level>2</Level><ElementName>us-gaap_StockholdersEquityNoteDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2012-04-01to2013-03-31" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2003 CONSULTANT STOCK PLAN&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Our 2003 Consultant Stock Plan, as amended from time to time (the
&amp;#34;Stock Plan&amp;#34;), adopted by us in August 2003, advances our interests by helping us obtain and retain the services of persons
providing consulting services upon whose judgment, initiative, efforts and/or services we are substantially dependent, by offering
to or providing those persons with incentives or inducements affording such persons an opportunity to become owners of our capital
stock. Consultants or advisors are eligible to receive grants under the plan program only if they are natural persons providing
bona fide consulting services to us, with the exception of any services they may render in connection with the offer and sale of
our securities in a capital-raising transaction, or which may directly or indirectly promote or maintain a market for our securities.
The Stock Plan provides for the grant of common stock. No awards may be issued after the ten-year anniversary of the date we adopted
the Stock Plan, the termination date for the plan. We have periodically amended the Stock Plan to increase the number of shares
available for issuance under the Stock Plan with the approval of our Board of Directors.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 29, 2004, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 29, 2005, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 2,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 9, 2007, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 2,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On July 10, 2009, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On February 17, 2010, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,500,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013, we did not have any shares remaining under the
2003 Consultant Stock Plan and we have discontinued using this Stock Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2005 DIRECTORS COMPENSATION PROGRAM&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Upon the recommendation of our Compensation Committee, in February
2005, we adopted our 2005 Directors Compensation Program (the &amp;#34;2005 Directors Compensation Program&amp;#34;) which advances our
interests by helping us to obtain and retain the services of outside directors upon whose judgment, initiative, efforts and/or
services we are substantially dependent, by offering to or providing those persons with incentives or inducements affording them
an opportunity to become owners of our capital stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Under the 2005 Directors Compensation Program, a newly elected director
will receive a one-time grant of a non-qualified stock option of 1.5% of the common stock outstanding at the time of election.
The options will vest one-third at the time of election to the Board and the remaining two-thirds will vest equally at year end
over three years. Additionally, each director will also receive an annual $25,000 non-qualified stock option retainer, $15,000
of which is to be paid at the first of the year to all directors who are on the Board prior to the first meeting of the year and
a $10,000 retainer will be paid if a director attends 75% of the meetings either in person, via conference call or other electronic
means. The exercise price for the options under the Directors Compensation Program will equal the average closing of the last ten
(10) trading days prior to the date earned.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013 under the 2005 Directors Compensation Program we
had issued 1,337,825 options to outside directors and 3,965,450 options to employee-directors, 514,550 outside directors&amp;#146;
options had been forfeited, 250,000 outside directors&amp;#146; options had been exercised and 3,671,550 options remained outstanding.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2010 STOCK INCENTIVE PLAN&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In August 2010, we adopted the 2010 Stock Incentive Plan (the &amp;#34;Incentive
Plan&amp;#34;), which provides incentives to attract, retain and motivate employees and directors whose present and potential contributions
are important to the success of the Company by offering them an opportunity to participate in our future performance through awards
of options, the right to purchase common stock, stock bonuses and stock appreciation rights and other awards. A total of 3,500,000
common shares were initially reserved for issuance under the Incentive Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In August 2010, we filed a registration statement on Form S-8 for
the purpose of registering 3,500,000 common shares issuable under the Incentive Plan under the Securities Act of 1933 and in July
2012, we filed a registration statement on Form S-8 for the purpose of registering an additional 5,000,000 common shares issuable
under the Incentive Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013, we had 3,948,652 shares available under the Incentive
Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2012 DIRECTORS COMPENSATION PROGRAM&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In July 2012, our Board of Directors approved a new Board Compensation
Program (the &amp;#147;New Program&amp;#148; or the &amp;#147;2012 Program&amp;#148;), which modifies and supersedes the 2005 Directors Compensation
Program (the &amp;#147;2005 Program&amp;#148;) that was previously in effect. Under the New Program, in which only non-employee Directors
may participate, an eligible Director will receive a grant of $15,000 worth of options to acquire shares of Common Stock, with
such grant being valued at the exercise price based on the average of the closing bid prices of the Common Stock for the five trading
days preceding the first day of the fiscal year; however for the new non-employee directors, the exercise price for this initial
grant, $0.076 per share, is based on the average of the closing bid prices of the Common Stock for the five trading days preceding
the date of their appointment (July 24, 2012). These options will have a term of ten years and will be fully vested upon grant.
In addition, each existing eligible Director will receive the same grant of $15,000 worth of options to acquire shares of Common
Stock, with such grant being valued at the exercise price based on the average of the closing bid prices of the Common Stock for
the five trading days preceding the first day of the fiscal year; provided however that for this current grant only, all of such
grants shall be made at an exercise price of $0.076 per share based on the average of the closing bid prices of the Common Stock
for the five trading days preceding the date (July 24, 2012) of the appointment of two new directors to our Board of Directors.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At the beginning of each fiscal year, each Director eligible to participate
in the New Program also will receive a grant of $20,000 worth of options valued at the exercise price based on the average of the
closing bid prices of the Common Stock for the five trading days preceding the first day of the fiscal year. In addition, under
the New Program eligible Directors will receive cash compensation equal to $500 for each committee meeting attended and $1,000
for each formal Board meeting attended.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In the fiscal year ended March 31, 2013, our Board of Directors granted,
to our four outside directors, ten year options to acquire an aggregate of 1,667,105 shares of our common stock, all with an exercise
price of $0.076 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;COMMON STOCK&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;Fiscal Year Ended March 31, 2012:&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2012, we issued 28,859,559
shares of restricted common stock to noteholders in exchange for the conversion of principal and interest of several notes payable
and convertible notes payable in an aggregate amount of $2,058,290 at an average conversion price of $0.07 per share based upon
the conversion formulae in the respective notes.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In the fiscal year ended March 31, 2012 we issued 3,451,558 shares
of stock to&amp;#160;consultants as compensation under stock-based compensation expense for services valued at $341,547 based upon
the fair value of the shares issued. Of that aggregate amount, 2,974,017 shares of common stock were issued to regulatory affairs
advisors, science advisors, corporate communications consultants and internal audit consultants pursuant to our S-8 registration
statements covering our Amended and Restated 2003 Consultant Stock Plan or 2010 Stock Incentive Plan for regulatory affairs, primarily
managing our hepatitis C trial in India, scientific consulting and corporate communications&amp;#160;valued at $279,747 based upon
the fair value of the shares issued.&amp;#160;The average issuance price on the S-8 issuances was approximately $0.09 per share. Additionally,
we issued 477,541 restricted shares of common stock to certain consultants for investor relations services valued at $61,800 based
upon the fair value of the shares issued. The average issuance price on the restricted share issuances was approximately $0.13
per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2012, we issued 3,699,914
shares of restricted common stock related to net warrant cashless exercises.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In January 2012, we issued 287,500 shares of restricted common stock
to the owner of a patent as a patent license payment valued at $17,250.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 29, 2012, we entered into a unit subscription agreement
(the &amp;#34;Subscription Agreement&amp;#34;) with one accredited investor (the &amp;#147;Purchaser&amp;#148;)&amp;#160;&amp;#160;pursuant to which
the Purchaser purchased an aggregate of $300,000 (the &amp;#34;Subscription Amount&amp;#34;) of units (the &amp;#34;Units&amp;#34; and each
a &amp;#34;Unit&amp;#34;), with each Unit consisting of (i) one share of Common Stock, par value $0.001 per share (the &amp;#147;Common
Stock&amp;#148;) at a price per share of $0.08, and (ii) a warrant to purchase such number of shares of Common Stock of the Company
as shall equal (a) fifty percent of the Subscription Amount &lt;i&gt;divided by&lt;/i&gt; (b) $0.08 (the &amp;#34;Warrant Shares&amp;#34;) at an
exercise price of $0.125 per Warrant Share, (each, a &amp;#147;Warrant&amp;#148; and collectively, the &amp;#147;Warrants&amp;#148;).&amp;#160;&amp;#160;Based
on the foregoing, Units consisting of 3,750,000 shares of Common Stock and Warrants to purchase 1,875,000 shares of Common Stock
were issued.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The Warrants are exercisable for a period of seven years from the
date of issuance at an exercise price of $0.125, subject to adjustments for stock splits, stock dividends, recapitalizations and
the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common stock underlying the Warrant are not
then registered pursuant to an effective registration statement. In the event the Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect to the Warrants or the Warrant
Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In March 2012, we entered into a consulting agreement with Catalyst
Financial Resources to provide corporate communications and media relations services. The term of the agreement is twelve months
although it can be terminated by either party.&amp;#160;&amp;#160;The agreement calls for monthly compensation of $12,500 comprised of
$7,500 in cash&amp;#160;and $5,000 in either notes or common stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;Fiscal Year Ended March 31, 2013:&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2013, we issued 23,291,154
shares of restricted common stock to holders of notes issued by the Company in exchange for the partial or full conversion of principal
and interest of several notes payable in an aggregate amount of $1,707,052 at an average conversion price of $0.07 per share based
upon the conversion formulae in the respective notes. 1,234,000 of those shares of restricted common stock were accounted for as
losses on debt extinguishment for an aggregate amount of $139,839.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2013, we issued 116,000 shares
of restricted common stock to settle past due accrued interest that we recorded as non-cash interest expense of $11,846.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2013, we issued 1,932,808
restricted shares of common stock to service providers for investor relations, corporate communications and business development
services valued at $170,849 based upon the fair value of the shares issued. The average issuance price on the restricted share
issuances was approximately $0.09 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2013, we issued 963,373 shares
of common stock pursuant to our S-8 registration statement covering our Amended 2010 Stock Plan at an average price of $0.09 per
share in payment for scientific consulting services valued at $88,186 based on the value of the services provided.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On April 5, 2012, we completed a unit subscription agreement with
one accredited investor (the &amp;#147;Purchaser&amp;#148;)&amp;#160;&amp;#160;pursuant to which the Purchaser purchased $200,000 of units (the
&amp;#34;Units&amp;#34; and each a &amp;#34;Unit&amp;#34;), with each Unit consisting of (i) one share of Common Stock, par value $0.001 per
share (the &amp;#147;Common Stock&amp;#148;) at a price per share of $0.08 and (ii) a warrant to purchase such number of shares of Common
Stock as shall equal (a) fifty percent of the Subscription Amount &lt;i&gt;divided by&lt;/i&gt; (b) $0.08 (the &amp;#34;Warrant Shares&amp;#34;)
at an exercise price of $0.125 per Warrant Share, (each, a &amp;#147;Warrant&amp;#148; and collectively, the &amp;#147;Warrants&amp;#148;).
Based on the foregoing, Units consisting of 2,500,000 shares of Common Stock and Warrants to purchase 1,250,000 shares of Common
Stock were issued on April 5, 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The Warrants are exercisable for a period of seven years from the
date of issuance at an exercise price of $0.125, subject to adjustments for stock splits, stock dividends, recapitalizations and
the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common stock underlying the Warrant are
not then registered pursuant to an effective registration statement. In the event the Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect to the Warrants or the Warrant
Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;On June 19, 2012, we completed a unit
subscription agreement with seven accredited investors &lt;/font&gt;(the &amp;#147;Purchasers&amp;#148;) &lt;font style="color: black"&gt;pursuant
to which the Purchasers purchased $592,000 of units (the &amp;#34;Units&amp;#34; and each a &amp;#34;Unit&amp;#34;), with each Unit consisting
of (i) one share of Common Stock at a price per share of $0.072 and (ii) a warrant to purchase such number of shares of Common
Stock as shall equal (a) fifty percent of the Subscription Amount &lt;i&gt;divided by&lt;/i&gt; (b) $0.072 (the &amp;#34;Warrant Shares&amp;#34;)
at an exercise price of $0.108 per Warrant Share. &lt;/font&gt;Based on the foregoing, Units consisting of 8,222,222 shares of Common
Stock and Warrants to purchase 4,111,111 shares of Common Stock were issued on June 19, 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;On June 26, 2012, we completed a unit
subscription agreement with one accredited investor pursuant to which the Purchaser purchased $10,000 of units (the &amp;#34;Units&amp;#34;
and each a &amp;#34;Unit&amp;#34;), with each Unit consisting of (i) one share of Common Stock at a price per share of $0.072 and (ii)
a warrant to purchase such number of shares of Common Stock as shall equal (a) fifty percent of the Subscription Amount divided
by (b) $0.072 (the &amp;#34;Warrant Shares&amp;#34;) at an exercise price of $0.107 per Warrant Share. &lt;/font&gt;Based on the foregoing,
Units consisting of 139,821 shares of Common Stock and Warrants to purchase 69,911 shares of Common Stock were issued on June 26,
2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In July 2012, we issued 461,409 shares of common stock to the holder
of a $25,000 October &amp;#38; November 2009 10% Convertible Note (See Note 5) in exchange for the value of the principal and related
accrued interest of $8,000 under the same terms that we used to sell units consisting of one share of common stock and one-half
of a stock purchase warrant on June 29, 2012 (See Note 6). As part of that structure, the noteholder also received seven year warrants
to purchase 230,705 share of common stock at a price of $0.107 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 29, 2012, we completed a unit subscription agreement with
seven accredited investors (the &amp;#147;Purchasers&amp;#148;) pursuant to which the Purchasers purchased an aggregate of $271,000 (the
&amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at a price of $0.08 per share. The Common Stock purchase price under
the Subscription Agreement was determined to be 80% of the average closing price of the our Common Stock for the five-day period
immediately preceding the date of the Subscription Agreement, resulting in the issuance of 3,387,500 shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated to be $0.12
per share based upon 120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding
the parties entering into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The Warrants are exercisable for a period of seven years from the
date of issuance at an exercise price of $0.12, subject to adjustments for stock splits, stock dividends, recapitalizations and
the like. The Purchasers may exercise the Warrants on a cashless basis if the shares of Common Stock underlying the Warrants are
not then registered pursuant to an effective registration statement. In the event that a Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds. There are no registration rights with respect to the Warrants or the Common Stock underlying
the Warrants.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In October 2012, &lt;/font&gt;we completed a
unit subscription agreement with four accredited investors (the &amp;#147;Purchasers&amp;#148;) pursuant to which the Purchasers purchased
an aggregate of $135,000 (the &amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at an average price of $0.07 per share.
The Common Stock purchase price under the Subscription Agreement was determined to be 80% of the average closing price of our Common
Stock for the five-day period immediately preceding the date of the Subscription Agreement, resulting in the issuance of 1,823,412
shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated based upon
120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding the parties entering
into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In November 2012, &lt;/font&gt;we completed
a unit subscription agreement with four accredited investors (the &amp;#147;Purchasers&amp;#148;) pursuant to which the Purchasers purchased
an aggregate of $213,000 (the &amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at an average price of $0.06 per share.
The Common Stock purchase price under the Subscription Agreement was determined to be 80% of the average closing price of our Common
Stock for the five-day period immediately preceding the date of the Subscription Agreement, resulting in the issuance of 3,435,484
shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated based upon
120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding the parties entering
into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In December 2012, &lt;/font&gt;we completed
a unit subscription agreement with four accredited investors (the &amp;#147;Purchasers&amp;#148;) pursuant to which the Purchasers purchased
an aggregate of $150,000 (the &amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at an average price of $0.06 per share.
The Common Stock purchase price under the Subscription Agreement was determined to be 80% of the average closing price of our Common
Stock for the five-day period immediately preceding the date of the Subscription Agreement, resulting in the issuance of 2,619,684
shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated based upon
120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding the parties entering
into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In January 2013, we issued 246,429 shares
of restricted common stock to the owner of a patent as a patent license payment valued at $17,250.&lt;/font&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In February 2013, &lt;/font&gt;we completed
a unit subscription agreement with six accredited investors and one institutional investor (the &amp;#147;Purchasers&amp;#148;) pursuant
to which the Purchasers purchased an aggregate of $225,000 (the &amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at
an average price of $0.06 per share. The Common Stock purchase price under the Subscription Agreement was determined to be 80%
of the average closing price of our Common Stock for the five-day period immediately preceding the date of the Subscription Agreement,
resulting in the issuance of 3,515,625 shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated based upon
120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding the parties entering
into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In March 2013, &lt;/font&gt;we completed a unit
subscription agreement with ten accredited investors and one institutional investor (the &amp;#147;Purchasers&amp;#148;) pursuant to
which the Purchasers purchased an aggregate of $313,834 (the &amp;#34;Subscription Amount&amp;#34;) of restricted Common Stock at an
average price of $0.08 per share. The Common Stock purchase price under the Subscription Agreement was determined to be 80% of
the average closing price of our Common Stock for the five-day period immediately preceding the date of the Subscription Agreement,
resulting in the issuance of 4,080,798 shares of Common Stock.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Each Purchaser also received one Common Stock Purchase Warrant for
each two shares of Common Stock purchased under the Subscription Agreement. The Warrant exercise price was calculated based upon
120% of the average of the closing prices of our Common Stock for the five-day period immediately preceding the parties entering
into the Subscription Agreement.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;WARRANTS&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;Fiscal Year Ended March 31, 2012:&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In April 2011, we entered into a Subscription Agreement with two
accredited investors (the &amp;#147;Purchasers&amp;#148;) providing for the issuance and sale of convertible promissory notes and corresponding
warrants in the aggregate principal amount of $385,000. The closing under the Subscription Agreement resulted in the issuance and
sale by us of (i) convertible promissory notes in the aggregate principal amount of $385,000, (ii) five-year warrants to purchase
an aggregate of&amp;#160;4,004,000 shares of our common stock at an exercise price of $0.125 per share, and (iii) five-year warrants
to purchase an aggregate of&amp;#160;4,004,000 shares of our common stock at an exercise price of $0.175 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In addition, we issued (i) five-year warrants to purchase an aggregate
of 812,500 shares of our common stock at an exercise price of $0.125 per share, and (iii) five-year warrants to purchase an aggregate
of&amp;#160;812,500 shares of our common stock at an exercise price of $0.175 per share to the Purchasers. These warrants were issued
as an antidilution adjustment under certain common stock purchase warrants held by Purchasers that were acquired from us in September
2010.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In May 2011, we agreed to modify three warrants held by an institutional
investor as the result of antidilution protection.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In July and August 2011, we raised $357,656 in 10% convertible notes.&amp;#160;&amp;#160;Those
notes had a fixed conversion price of $0.09 per share and carried an interest rate of 10%.&amp;#160;&amp;#160;The convertible notes mature
in July and August 2012.&amp;#160;&amp;#160;We also issued those investors five year warrants to purchase 3,973,957 shares of common stock
at $0.125 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On September 23, 2011, we entered into a Subscription Agreement with
two accredited investors (the &amp;#147;Purchasers&amp;#148;)&amp;#160;&amp;#160;providing for the issuance and sale of convertible promissory
notes and corresponding warrants in the aggregate principal amount of&amp;#160;&amp;#160;$253,760.&amp;#160;&amp;#160;The warrants carried a five-year
term to purchase an aggregate of 3,625,143 shares of our common stock at an exercise price of $0.10 per share.&amp;#160;&amp;#160;There
are no registration requirements with respect to the shares of common stock underlying the notes or the warrants.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In November 2011, we raised $525,000 in 5% Original Issue Discount
Unsecured Convertible Debentures from five accredited investors pursuant to which the investors purchased an aggregate principal
amount of $525,000 for an aggregate purchase price of $500,000. The debentures bear interest at 20% per annum and mature on April
20, 2012. The debentures will be convertible at the option of the holders at any time into shares of our common stock, at a conversion
price equal to $0.0779, subject to adjustment. In connection with the debentures, the purchasers received warrants to purchase
3,369,706 shares of our Common Stock. The warrants are exercisable for a period of five years from the date of issuance at an exercise
price of $0.11, subject to adjustment.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In February 2012, we raised $525,000 in 5% Original Issue Discount
Unsecured Convertible Debentures from five accredited investors pursuant to which the investors purchased an aggregate principal
amount of $525,000 for an aggregate purchase price of $500,000. The debentures bear interest at 20% per annum and mature on April
20, 2012.&amp;#160;&amp;#160;These subscriptions represent the completion of the $1,000,000 securities offering that was initiated and
priced in November 2011.&amp;#160;&amp;#160;In connection with the subscription agreement, the investors received warrants to purchase
3,369,707 shares of our common stock. The warrants are exercisable for a period of five years from the date of issuance at an exercise
price of $0.11 per share, subject to adjustment.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 29, 2012, we entered into a unit subscription agreement
(the &amp;#34;Subscription Agreement&amp;#34;) with one accredited investor (the &amp;#147;Purchaser&amp;#148;)&amp;#160;&amp;#160;pursuant to which
the Purchaser purchased an aggregate of $300,000 (the &amp;#34;Subscription Amount&amp;#34;) of units (the &amp;#34;Units&amp;#34; and each
a &amp;#34;Unit&amp;#34;), with each Unit consisting of (i) one share of Common Stock, par value $0.001 per share (the &amp;#147;Common
Stock&amp;#148;) at a price per share of $0.08 and (ii) a warrant to purchase such number of shares of Common Stock of the Company
as shall equal (a) fifty percent of the Subscription Amount &lt;i&gt;divided by&lt;/i&gt; (b) $0.08 (the &amp;#34;Warrant Shares&amp;#34;) at an
exercise price of $0.125 per Warrant Share, (each, a &amp;#147;Warrant&amp;#148; and collectively, the &amp;#147;Warrants&amp;#148;).&amp;#160;&amp;#160;Based
on the foregoing, Units consisting of 3,750,000 shares of Common Stock and Warrants to purchase 1,875,000 shares of Common Stock
were issued.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The Warrants are exercisable for a period of seven years from the
date of issuance at an exercise price of $0.125, subject to adjustments for stock splits, stock dividends, recapitalizations and
the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common stock underlying the Warrant are not
then registered pursuant to an effective registration statement. In the event the Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect to the Warrants or the Warrant
Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;During the fiscal year ended March 31, 2012, we issued 3,699,914
shares of restricted common stock related to net warrant cashless exercises.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 31, 2012, we agreed to extend by two years the expiration
date of seven warrants for a total of 2,480,000 shares held by a note holder and to reduce the exercise price on those warrants
from $0.25 per share on six of the warrants and $0.19 on the seventh warrant to $0.125 per share in exchange for his extension
of $50,000 of the October &amp;#38; November 2009 10% Convertible Notes and the $75,000 April 2010 10% Convertible Note by that same
two year period.&amp;#160;&amp;#160;We recorded a charge of $104,196 relating to this modification.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;i&gt;Fiscal Year Ended March 31, 2013:&lt;/i&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In April 2012, we issued warrants to purchase 1,617,459 shares of
Common Stock to the placement firm that arranged $1 million in bridge financing in the fiscal year ended March 31, 2012. Those
warrants were on the same terms as those received by the investors in the bridge financing with a term of five years and an exercise
price of $0.11.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On April 5, 2012, under the unit subscription agreement noted above,
we issued Warrants to purchase 1,250,000 shares of Common Stock. The Warrants are exercisable for a period of seven years from
the date of issuance at an exercise price of $0.125, subject to adjustments for stock splits, stock dividends, recapitalizations
and the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common stock underlying the Warrant are
not then registered pursuant to an effective registration statement. In the event the Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect to the Warrants or the Warrant
Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;On June 19, 2012, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 4,111,111 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an exercise price of $0.108, subject to adjustments for stock splits,
stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common
stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the event the Purchaser
exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect
to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;On June 26, 2012, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 69,911 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an exercise price of $0.107, subject to adjustments for stock splits,
stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common
stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the event the Purchaser
exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect
to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;I&lt;/font&gt;n July 2012, we issued 461,409
shares of common stock to the holder of a $25,000 October &amp;#38; November 2009 10% Convertible Note in exchange for the value of
the principal and related accrued interest of $8,000 under the same terms that we used to sell units consisting of one share of
common stock and one-half of a stock purchase warrant on June 29, 2012. As part of that structure, the noteholder also received
seven year warrants to purchase 230,705 share of common stock at a price of $0.107 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 29, 2012, under the unit subscription agreement noted above,
we issued Warrants to purchase 1,693,750 shares of Common Stock. The Warrants are exercisable for a period of seven years from
the date of issuance at an exercise price of $0.12 per share, subject to adjustments for stock splits, stock dividends, recapitalizations
and the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common stock underlying the Warrant are
not then registered pursuant to an effective registration statement. In the event the Purchaser exercises the Warrant on a cashless
basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect to the Warrants or the Warrant
Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In October 2012, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 911,707 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an average exercise price of $0.111 per share, subject to adjustments
for stock splits, stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if
the shares of common stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the
event the Purchaser exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration
rights with respect to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In November 2012, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 1,717,742 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an average exercise price of $0.093 per share, subject to adjustments
for stock splits, stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if
the shares of common stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the
event the Purchaser exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration
rights with respect to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In December 2012, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 1,309,843 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an average exercise price of $0.086 per share, subject to adjustments
for stock splits, stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if
the shares of common stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the
event the Purchaser exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration
rights with respect to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In February 2013, &lt;/font&gt;under the unit
subscription agreement noted above, we issued Warrants to purchase 1,757,813 shares of Common Stock. The Warrants are exercisable
for a period of seven years from the date of issuance at an average exercise price of $0.096 per share, subject to adjustments
for stock splits, stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if
the shares of common stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the
event the Purchaser exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration
rights with respect to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="color: black"&gt;In March 2013, &lt;/font&gt;under the unit subscription
agreement noted above, we issued Warrants to purchase 1,851,012 shares of Common Stock. The Warrants are exercisable for a period
of seven years from the date of issuance at an average exercise price of $0.118 per share, subject to adjustments for stock splits,
stock dividends, recapitalizations and the like. The Purchaser may exercise the Warrant on a cashless basis if the shares of common
stock underlying the Warrant are not then registered pursuant to an effective registration statement. In the event the Purchaser
exercises the Warrant on a cashless basis, we will not receive any proceeds.&amp;#160;&amp;#160;There are no registration rights with respect
to the Warrants or the Warrant Shares.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;A summary of the aggregate warrant activity for the years ended March
31, 2013 and 2012 is presented below:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="14" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Year Ended March 31,&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2013&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2012&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Warrants&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;Weighted Average&lt;/font&gt;&lt;br /&gt;
&lt;font style="font-size: 8pt"&gt;Exercise Price&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Warrants&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;Weighted Average&lt;/font&gt;&lt;br /&gt;
&lt;font style="font-size: 8pt"&gt;Exercise Price&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="width: 36%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Outstanding, beginning of year&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;59,807,849&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.14&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;38,675,169&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.26&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Granted&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;16,710,445&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.11&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;28,159,240&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.11&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Exercised&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;(1,209,623&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;)&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.23&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Cancelled/Forfeited&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;(871,000&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;)&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.25&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;(5,816,937&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;)&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.26&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Outstanding, end of year&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;75,647,294&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.11&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;59,807,849&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.14&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Exercisable, end of year&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;75,647,294&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.11&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;59,807,849&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.14&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Weighted average estimated fair value of warrants granted&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.07&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.11&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The following outlines the significant weighted average assumptions
used to estimate the fair value information presented, with respect to warrants utilizing the Binomial Lattice option pricing models:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="3" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Year Ended March 31,&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="width: 55%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 20%; border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2013&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 5%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 20%; border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2012&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Risk free interest rate&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.86%-1.56%&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.10%-2.24%&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Average expected life&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;5 to 7 years&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;1.0 to 5 years&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Expected volatility&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;90.3% - 94.3%&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;52.1% - 90.5%&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Expected dividends&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;None&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;None&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The detail of the warrants outstanding and exercisable as of March
31, 2013 is as follows:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="10" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Warrants Outstanding&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Warrants Exercisable&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Range of&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Exercise Prices&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Number&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Outstanding&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Remaining&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Life (Years)&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Exercise Price&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Number&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Outstanding&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Exercise Price&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="width: 20%; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$0.10 or Below&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;34,261,862&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;3.24&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.10&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;34,261,862&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.10&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$0.11 - $0.19&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;26,487,500&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;4.94&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.12&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;26,487,500&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.12&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$0.20 - $0.25&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;14,897,932&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2.62&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.21&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;14,897,932&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.21&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;75,647,294&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;75,647,294&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;OPTIONS:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2000 STOCK OPTION PLAN&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Our 2000 Stock Option Plan (the &amp;#34;Plan&amp;#34;), adopted by us
in August 2000, provides for the grant of incentive stock options (&amp;#34;ISOs&amp;#34;) to our full-time employees (who may also be
directors) and nonstatutory stock options (&amp;#34;NSOs&amp;#34;) to non-employee directors, consultants, customers, vendors or providers
of significant services. The exercise price of any ISO may not be less than the fair market value of the Common Stock on the date
of grant or, in the case of an optionee who owns more than 10% of the total combined voting power of all classes of our outstanding
stock, not be less than 110% of the fair market value on the date of grant. The exercise price, in the case of any NSO, must not
be less than 75% of the fair market value of the Common Stock on the date of grant. The amount reserved under the Plan is 500,000
options.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2012, all of the grants previously made under the Plan
had expired and 10,000 restricted shares had been issued under the 2000 Stock Option Plan, with 490,000 available for future issuance.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2003 CONSULTANT STOCK PLAN&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Our 2003 Consultant Stock Plan, as amended from time to time (the
&amp;#34;Stock Plan&amp;#34;), adopted by us in August 2003, advances our interests by helping us obtain and retain the services of persons
providing consulting services upon whose judgment, initiative, efforts and/or services we are substantially dependent, by offering
to or providing those persons with incentives or inducements affording such persons an opportunity to become owners of our capital
stock. Consultants or advisors are eligible to receive grants under the plan program only if they are natural persons providing
bona fide consulting services to us, with the exception of any services they may render in connection with the offer and sale of
our securities in a capital-raising transaction, or which may directly or indirectly promote or maintain a market for our securities.
The Stock Plan provides for the grant of common stock. No awards may be issued after the ten-year anniversary of the date we adopted
the Stock Plan, the termination date for the plan. We have periodically amended the Stock Plan to increase the number of shares
available for issuance under the Stock Plan with the approval of our Board of Directors.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 29, 2004, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 29, 2005, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 2,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On August 9, 2007, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 2,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On July 10, 2009, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,000,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On February 17, 2010, we filed with the SEC a registration statement
on Form S-8 for the purpose of registering 1,500,000 common shares issuable under the Stock Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013, we did not have any shares remaining under the
2003 Consultant Stock Plan and we have discontinued using this Stock Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2010 STOCK INCENTIVE PLAN&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In August 2010, we adopted the 2010 Stock Incentive Plan (the &amp;#34;Incentive
Plan&amp;#34;), which provides incentives to attract, retain and motivate employees and directors whose present and potential contributions
are important to the success of the Company by offering them an opportunity to participate in our future performance through awards
of options, the right to purchase common stock, stock bonuses and stock appreciation rights and other awards. A total of 3,500,000
common shares were initially reserved for issuance under the Incentive Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In August 2010, we filed a registration statement on Form S-8 for
the purpose of registering 3,500,000 common shares issuable under the Incentive Plan under the Securities Act of 1933 and in July
2012, we filed a registration statement on Form S-8 for the purpose of registering an additional 5,000,000 common shares issuable
under the Incentive Plan under the Securities Act of 1933.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013, we had 3,948,652 shares available under the Incentive
Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;2012 DIRECTORS COMPENSATION PROGRAM&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In July 2012, our Board of Directors approved a new Board Compensation
Program (the &amp;#147;New Program&amp;#148; or the &amp;#147;2012 Program&amp;#148;), which modifies and supersedes the 2005 Directors Compensation
Program (the &amp;#147;2005 Program&amp;#148;) that was previously in effect. Under the New Program, in which only non-employee Directors
may participate, an eligible Director will receive a grant of $15,000 worth of options to acquire shares of Common Stock, with
such grant being valued at the exercise price based on the average of the closing bid prices of the Common Stock for the five trading
days preceding the first day of the fiscal year; however for the new non-employee directors, the exercise price for this initial
grant, $0.076 per share, is based on the average of the closing bid prices of the Common Stock for the five trading days preceding
the date of their appointment (July 24, 2012). These options will have a term of ten years and will be fully vested upon grant.
In addition, each existing eligible Director will receive the same grant of $15,000 worth of options to acquire shares of Common
Stock, with such grant being valued at the exercise price based on the average of the closing bid prices of the Common Stock for
the five trading days preceding the first day of the fiscal year; provided however that for this current grant only, all of such
grants shall be made at an exercise price of $0.076 per share based on the average of the closing bid prices of the Common Stock
for the five trading days preceding the date (July 24, 2012) of the appointment of two new directors to our Board of Directors.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At the beginning of each fiscal year, each Director eligible to participate
in the New Program also will receive a grant of $20,000 worth of options valued at the exercise price based on the average of the
closing bid prices of the Common Stock for the five trading days preceding the first day of the fiscal year. In addition, under
the New Program eligible Directors will receive cash compensation equal to $500 for each committee meeting attended and $1,000
for each formal Board meeting attended.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In the fiscal year ended March 31, 2013, our Board of Directors granted,
to our four outside directors, ten year options to acquire an aggregate of 1,667,105 shares of our common stock, all with an exercise
price of $0.076 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;At March 31, 2013 under the 2005 Program and the 2012 Program we
had issued 3,004,930 options to outside directors and 3,965,450 options to employee-directors, 514,550 outside directors&amp;#146;
options had been forfeited, 867,175 employee-directors&amp;#146; options had been forfeited, 250,000 outside directors&amp;#146; options
had been exercised and 5,338,655 options remained outstanding.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;STAND-ALONE GRANTS&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;From time to time our Board of Directors grants restricted stock
or common share purchase options or warrants to selected directors, officers, employees and consultants as equity compensation
to such persons on a stand-alone basis outside of any of our formal stock plans. The terms of these grants are individually negotiated.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On June 8, 2009, our board of directors approved the grant to Mr.
Joyce of 4,000,000 shares of restricted common stock at a price per share of $0.24, the vesting and issuance of which will occur
in equal installments over a thirty-six-month period commencing June 30, 2010. Mr. Joyce may, from time to time, defer acceptance
of the shares. However, all shares must be issued and accepted by Mr. Joyce by the expiration of the thirty-six-month vesting
period. As of July 10, 2012, Mr. Joyce has accepted all 4,000,000 shares of the grant. However, the 600,000 shares previously
accepted by Mr. Joyce were pledged as collateral for a loan and have been retained and/or sold by the lender and are no longer
owned by Mr. Joyce. It is anticipated that Mr. Joyce will receive stock certificates evidencing 3,400,000 shares in the next several
weeks.&lt;/p&gt;



&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;/p&gt;



&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;As of March 31, 2013, we have granted 18,943,158 options (of which
3,186,015 have been exercised or cancelled) and authorized the issuance of 4,000,000 shares of restricted stock outside of the
2005 Directors Compensation Plan, the 2012 Directors Compensation Plan, the 2000 Stock Option Plan, the 2003 Consultant Stock Plan
and the 2010 Incentive Stock Plan.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 26, 2012, Mr. Joyce entered into an Option Suspension Agreement
whereby Mr. Joyce agreed not to exercise his stock options pending the filing of amended Articles of Incorporation of the Company
increasing our authorized capital. Accordingly, none of Mr. Joyce&amp;#146;s options can be exercised until the amended Articles of
Incorporation have been filed. Those amended Articles of Incorporation were filed on June 4, 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;On March 26, 2012, Mr. Frakes entered into an Option Suspension Agreement
whereby Mr. Frakes agreed not to exercise his stock options pending the filing of amended Articles of Incorporation of the Company
increasing our authorized capital. Accordingly, none of Mr. Frakes&amp;#146; options can be exercised until the amended Articles of
Incorporation have been filed. Those amended Articles of Incorporation were filed on June 4, 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;In the fiscal year ended March 31, 2013, our Board of Directors granted,
to our four outside directors, ten year options to acquire an aggregate of 1,667,105 shares of our common stock, all with an exercise
price of $0.076 per share.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The following is a summary of the stock options outstanding at March
31, 2013 and 2012 and the changes during the two years then ended:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="14" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Year Ended March 31,&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2013&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2012&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Options&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;Weighted Average&lt;/font&gt;&lt;br /&gt;
&lt;font style="font-size: 8pt"&gt;Exercise Price&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Options&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;Weighted Average&lt;/font&gt;&lt;br /&gt;
&lt;font style="font-size: 8pt"&gt;Exercise Price&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="width: 36%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Outstanding, beginning of year&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;19,428,693&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.31&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;19,933,560&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.32&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Granted&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;1,667,105&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.08&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Exercised&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Cancelled/Forfeited&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;(504,867&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;)&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;1.17&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Outstanding, end of year&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;21,095,798&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.28&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;19,428,693&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.31&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Exercisable, end of year&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;19,141,625&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.29&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;17,416,191&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.32&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Weighted average estimated fair value of options granted&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.08&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The following outlines the significant weighted average assumptions
used to estimate the fair value information presented, with respect to stock options utilizing the Binomial Lattice option pricing
model for the years ended March 31, 2013 and March 31, 2012:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="3" style="border-bottom: windowtext 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Year Ended March 31,&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="width: 55%; padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 20%; border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2013&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 5%; padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 20%; border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;2012&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Risk free interest rate&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;1.44%&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Average expected life&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;10.0 years&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: #EEEEEE"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Expected volatility&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;117.53%&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Expected dividends&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;None&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&lt;font style="font-size: 8pt"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;The detail of the options outstanding and exercisable as of March
31, 2013 is as follows:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td colspan="2" style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="10" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Options Outstanding&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="6" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Options Exercisable&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Range of&lt;/font&gt;&lt;br /&gt;
&lt;font style="font-size: 8pt; color: black"&gt;Exercise Prices&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Number&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Outstanding&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Remaining&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Life (Years)&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Exercise&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Price&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Number&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Outstanding&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt; text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid"&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Weighted&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Average&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Exercise&lt;/p&gt;
        &lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;Price&lt;/p&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td colspan="2" style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$ 0.08&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;1,667,105&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;9.92 years&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.08&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;792,105&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.08&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td colspan="2" style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$0.21 - $0.25&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;11,207,143&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;5.96 years&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.24&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;10,127,970&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.24&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td colspan="2" style="text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$0.36 - $0.41&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;8,221,550&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#160;3.43 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.38&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;8,221,550&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;0.38&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: center"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;21,095,798&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;19,141,625&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;We recorded stock-based compensation expense related to share issuances
and to options granted outside of our Stock Option Plan totaling $765,273 and $758,963 for the fiscal years ended March 31, 2013
and 2012, respectively. These expenses were recorded as stock compensation included in payroll and related expenses in the accompanying
consolidated statement of operations for the years ended March 31, 2013 and 2012.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;Our total stock-based compensation for fiscal years ended March 31,
2013 and 2012 included the following:&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: bottom"&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;March 31, 2013&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td colspan="2" style="border-bottom: black 1pt solid; text-align: center"&gt;&lt;font style="font-size: 8pt; color: black"&gt;March 31, 2012&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="width: 68%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Vesting&amp;#160;&amp;#160;of restricted stock grant&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;386,668&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 13%; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;386,668&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 1%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td&gt;&lt;font style="font-size: 8pt; color: black"&gt;Incremental fair value of option modifications&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;23,027&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;&amp;#150;&lt;/font&gt;&lt;/td&gt;
    &lt;td&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: #EEEEEE"&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Vesting of stock options&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;355,578&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="border-bottom: black 1pt solid; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;372,295&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 1pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: bottom; background-color: white"&gt;
    &lt;td style="padding-bottom: 2.5pt; padding-left: 0.25in"&gt;&lt;font style="font-size: 8pt; color: black"&gt;Total Stock-Based Compensation&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
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    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;765,273&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-bottom: 2.5pt"&gt;&amp;#160;&lt;/td&gt;
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    &lt;td style="border-bottom: black 2.25pt double"&gt;&lt;font style="font-size: 8pt; color: black"&gt;$&lt;/font&gt;&lt;/td&gt;
    &lt;td style="border-bottom: black 2.25pt double; text-align: right"&gt;&lt;font style="font-size: 8pt; color: black"&gt;758,963&lt;/font&gt;&lt;/td&gt;
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&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;As of March 31, 2013, we had $204,755 of remaining unrecognized stock
option expense, which is expected to be recognized over a weighted average remaining vesting period of 0.57 years.&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

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