XML 38 R14.htm IDEA: XBRL DOCUMENT
v3.7.0.1

8. INCOME TAXES | 12 Months Ended
--- | ---
Mar. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | For the years ended March 31, 2017 and 2016, we had no income tax expense due to our net operating losses and 100% deferred tax asset valuation allowance. At March 31, 2017 and 2016, we had net deferred tax assets as detailed below. These deferred tax assets are primarily composed of capitalized research and development costs and tax net operating loss carryforwards. Due to uncertainties surrounding our ability to generate future taxable income to realize these assets, a 100% valuation has been established to offset the net deferred tax assets. Significant components of our net deferred tax assets at March 31, 2017 and 2016 are shown below:
|  | YEAR ENDED MARCH 31, |
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Capitalized research and development |  | $ | 3,442,000 |  |  | $ | 3,442,000 |
Net operating loss carryforwards |  |  | 22,060,000 |  |  |  | 20,126,000 |
Stock compensation |  |  | 318,000 |  |  |  | – |
Total deferred tax assets |  |  | 25,820,000 |  |  |  | 23,568,000 |
Total deferred tax liabilities |  |  | – |  |  |  | – |
Net deferred tax assets |  |  | 25,820,000 |  |  |  | 23,568,000 |
Valuation allowance for deferred tax assets |  |  | (25,820,000 | ) |  |  | (23,568,000 | )
Net deferred tax assets |  | $ | – |  |  | $ | – |
At March 31, 2017, we had tax net operating loss carryforwards for federal and state purposes approximating $57 million and $45 million, which begin to expire in the year 2023. The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate for the years ended March 31, 2017 and 2016 due to the following:
|  | 2017 |  |  | 2016 |
Income taxes (benefit) at federal statutory rate of 34% |  | $ | (2,484,000 | ) |  | $ | (1,686,000 | )
State income tax, net of federal benefit |  |  | (438,000 | ) |  |  | (298,000 | )
Tax effect on non-deductible expenses and credits |  |  | 382,000 |  |  |  | 69,000 |
Change in valuation allowance1 |  |  | 2,540,000 |  |  |  | 1,915,000 |
|  | $ | – |  |  | $ | – |
______________ (1) Pursuant to Internal Revenue Code Sections 382, use of our tax net operating loss carryforwards may be limited. ASC 740, “Income Taxes”, clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements, and prescribes recognition thresholds and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the years ended March 31, 2017 and 2016, we did not recognize any interest or penalties relating to tax matters. At and for the years ended March 31, 2017 and 2016, management does not believe the Company has any uncertain tax positions. Accordingly, there are no unrecognized tax benefits at March 31, 2017 or March 31, 2016. Our tax returns remain open for examination by the applicable authorities, generally 3 years for federal and 4 years for state. We are currently not under examination by any taxing authorities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration