<table><tbody><tr style="vertical-align: top; text-align: justify">
<td style="width: 4%; text-align: right">&nbsp;</td><td style="width: 3%"></td><td style="text-align: justify; width: 93%">Total unrecognized compensation
cost related to vested and expected to vest options at March 31, 2012 amounted to $385,008 and is expected to be recognized over
a weighted average period of 2.17 years. Total compensation cost for all outstanding option awards for the years ended March 31,
2012 and 2011 amounted to $177,696 and $148,080, respectively.</td>
</tr>     <tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">(ii) <u>Warrants</u>&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">At March 31, 2012 and March
31, 2011 there were warrants outstanding to purchase 2,456,272 shares of common stock at a price of $.001 per share, which were
issued in the December 2009 financing and expire December 15, 2015. The aggregate intrinsic value of the warrants outstanding
at March 31, 2012 and March 31, 2011 was $2,257,314 and $2,036,249, respectively.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">(iii) <u>Restricted
Stock</u></td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">During the year ended March 31,
2012, the Company awarded 250,500 shares of Common Stock initially subject to forfeiture (“restricted stock”) pursuant
to the authorization of the Company’s Board of Directors and certain Restricted Stock Agreements under the Company’s
2010 Plan. There were no shares of restricted stock awarded during the year end March 31, 2011.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">As of March 31, 2012 the Company
had awarded 1,186,571 shares (net of forfeited shares) of restricted stock under the Company’s 2002 Plan, 232,500 shares
(net of forfeited shares) of restricted stock under the Company’s 2010 Plan, and 209,767 shares (net of forfeited shares)
of restricted stock that were not issued under the Company’s 2002 or 2010 Plans. Grant date fair value is determined by the
market price of the Company’s common stock on the date of grant. The aggregate value of these shares at their respective
grant dates amount to approximately $2,516,069 and is recognized ratably as compensation expense over the vesting periods. The
shares of restricted stock granted pursuant to such agreements vest in various tranches over one to five years from the date of
grant.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">The shares awarded to employees
under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then
an employee of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on
the date his or her employment is terminated.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">A summary of all non-vested stock
activity as of March 31, 2012, and changes during the two years then ended is presented below:&nbsp;</td></tr>
</tbody></table>
<table><tbody><tr>
<td> </td><td></td><td>Total unrecognized compensation
cost related to vested and expected to vest options at March 31, 2012 amounted to $385,008 and is expected to be recognized over
a weighted average period of 2.17 years. Total compensation cost for all outstanding option awards for the years ended March 31,
2012 and 2011 amounted to $177,696 and $148,080, respectively.</td>
</tr> <tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>(ii) <u>Warrants</u> </td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>At March 31, 2012 and March
31, 2011 there were warrants outstanding to purchase 2,456,272 shares of common stock at a price of $.001 per share, which were
issued in the December 2009 financing and expire December 15, 2015. The aggregate intrinsic value of the warrants outstanding
at March 31, 2012 and March 31, 2011 was $2,257,314 and $2,036,249, respectively.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>(iii) <u>Restricted
Stock</u></td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>During the year ended March 31,
2012, the Company awarded 250,500 shares of Common Stock initially subject to forfeiture (“restricted stock”) pursuant
to the authorization of the Company’s Board of Directors and certain Restricted Stock Agreements under the Company’s
2010 Plan. There were no shares of restricted stock awarded during the year end March 31, 2011.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>As of March 31, 2012 the Company
had awarded 1,186,571 shares (net of forfeited shares) of restricted stock under the Company’s 2002 Plan, 232,500 shares
(net of forfeited shares) of restricted stock under the Company’s 2010 Plan, and 209,767 shares (net of forfeited shares)
of restricted stock that were not issued under the Company’s 2002 or 2010 Plans. Grant date fair value is determined by the
market price of the Company’s common stock on the date of grant. The aggregate value of these shares at their respective
grant dates amount to approximately $2,516,069 and is recognized ratably as compensation expense over the vesting periods. The
shares of restricted stock granted pursuant to such agreements vest in various tranches over one to five years from the date of
grant.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>The shares awarded to employees
under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then
an employee of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on
the date his or her employment is terminated.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>A summary of all non-vested stock
activity as of March 31, 2012, and changes during the two years then ended is presented below: </td></tr>
</tbody></table>