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9. STOCK COMPENSATION | 9 Months Ended
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Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK COMPENSATION | The following table summarizes share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and nine months ended December 31, 2013 and 2012:
|  | Three Months Ended |  |  | Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
|  | December 31, 2013 |  |  | December 31, 2012 |  |  | December 31, 2013 |  |  | December 31, 2012 |
Total share-based compensation expense |  | $ | 32,750 |  |  | $ | 175,045 |  |  | $ | 223,351 |  |  | $ | 570,540 |
Total share-based compensation expense included in net loss |  | $ | 32,750 |  |  | $ | 175,045 |  |  | $ | 223,351 |  |  | $ | 570,540 |
Basic and diluted loss per common share |  | $ | (0.00 | ) |  | $ | (0.00 | ) |  | $ | (0.00 | ) |  | $ | (0.00 | )
The following table breaks out the components of our share-based compensation expenses relating to shares and options granted and the effect on basic and diluted loss per common share during the three and nine months ended December 31, 2013 and 2012.
|  | Three Months Ended |  |  | Three Months Ended |  |  | Nine Months Ended |  |  | Nine Months Ended |
|  | December 31, 2013 |  |  | December 31, 2012 |  |  | December 31, 2013 |  |  | December 31, 2012 |
Vesting of stock options |  |  | 32,750 |  |  |  | 77,421 |  |  |  | 156,993 |  |  |  | 258,468 |
Incremental fair value of option modifications |  |  | -- |  |  |  | 957 |  |  |  | 1,914 |  |  |  | 22,071 |
Vesting expense associated with CEO restricted stock grant |  |  | -- |  |  |  | 96,667 |  |  |  | 64,444 |  |  |  | 290,001 |
Total share-based compensation expense |  | $ | 32,750 |  |  | $ | 175,045 |  |  | $ | 223,351 |  |  | $ | 570,540 |
Total share-based compensation expense included in net loss |  | $ | 32,750 |  |  | $ | 175,045 |  |  | $ | 223,351 |  |  | $ | 570,540 |
Basic and diluted loss per common share |  | $ | (0.00 | ) |  | $ | (0.00 | ) |  | $ | (0.00 | ) |  | $ | (0.00 | )
All of the stock-based compensation expense recorded during the nine months ended December 31, 2013 and 2012, which totaled $223,351 and $570,540, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations. Stock-based compensation expense recorded during the three and nine months ended December 31, 2013 and 2012 had no impact on basic and diluted loss per common share. In the nine months ended December 31, 2013, we granted to a scientific advisory board member and a scientific consultant a three year option to purchase 125,000 shares of our common stock at a price of $0.11 per share. The following outlines the significant weighted average assumptions used to estimate the fair value information, which is based on historical data, with respect to stock option grants utilizing the Binomial Lattice option pricing models at, and during the nine months ended December 31, 2013:
Risk free interest rate | 0.38% - 2.50%
Average expected life | 3 years - 10 years
Expected volatility | 94.6% - 102.7%
Expected dividends | None
We review share-based compensation on a quarterly basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting the forfeiture rate for all expense amortization is recognized in the period the forfeiture estimate is changed. The effect of forfeiture adjustments for the nine months ended December 31, 2013 was insignificant. The expected volatility is based on the historic volatility. The expected life of options granted is based on the "simplified method" as described in the SEC's guidance due to changes in the vesting terms and contractual life of current option grants compared to our historical grants. Options outstanding that have vested and are expected to vest as of December 31, 2013 are as follows:
|  |  |  |  |  |  |  | Weighted |
|  |  |  |  | Weighted |  |  | Average |
|  |  |  |  | Average |  |  | Remaining |
|  | Number of |  |  | Exercise |  |  | Contractual |
|  | Shares |  |  | Price |  |  | Term in Years |
Vested |  |  | 21,012,455 |  |  | $ | 0.28 |  |  |  | 3.63 |
Expected to vest |  |  | 3,708,343 |  |  | $ | 0.11 |  |  |  | 9.45 |
Total |  |  | 24,720,798 |  |  | $ | 0.26 |  |  |  | 4.50 |
A summary of stock option activity during the nine months ended December 31, 2013 is presented below:
|  | Number of Options |  |  | Range of Exercise Price |  | Weighted Average Exercise Price
Stock options outstanding at March 31, 2013 |  |  | 21,095,798 |  |  | $0.76 - $0.41 |  | $0.28
Exercised |  |  | – |  |  | $-- |  |
Granted |  |  | 3,625,000 |  |  | $0.10 - 0.11 |  | $0.10
Cancelled/Expired |  |  | – |  |  | -- |  |
Stock options outstanding at December 31, 2013 |  |  | 24,720,798 |  |  | $0.076 - $0.41 |  | $0.28
Stock options exercisable at December 31, 2013 |  |  | 21,012,455 |  |  | $0.076 - $0.41 |  | $0.26
At December 31, 2013, there was approximately $304,529 of unrecognized compensation cost related to share-based payments which is expected to be recognized over a weighted average period of 2.32 years. On December 31, 2013, our stock options had a negative intrinsic value since the closing price on that date of $0.17 per share was below the weighted average exercise price of our stock options.

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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