<table>
<tbody><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(ii) <font style="DISPLAY: inline; TEXT-DECORATION: underline">Warrants</font></font></div>
</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">At September 30, 2010 and March 31,2010 there were warrants 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. At March 31, 2010 there was also an outstanding warrant to purchase 40,766 shares of common stock at an exercise price per share of $3.68 held by one individual, which expired on April 30, 2010. The aggregate intrinsic value of the warrants at September 30, 2010 and March 31, 2010 was $1,888,873 and $906,364, respectively.</font></div>
</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(iii) <font style="DISPLAY: inline; TEXT-DECORATION: underline">Restricted Stock</font></font></div>
</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">During the six months ended September 30, 2010, the Company did not award any shares of Common Stock initially subject to forfeiture (“restricted stock”).</font></div>
</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">As
of September 30, 2010 the Company had outstanding 554,365 shares of unvested restricted stock that had been issued pursuant
to the authorization of the Company’s Board of Directors and certain Restricted Stock Agreements, including 81,860
shares of restricted stock that were not issued under any of the Company’s equity 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 September 30, 2010 amounted to approximately $426,861. The shares of restricted stock granted pursuant to such agreements
vest in various tranches over one to five years from the date of grant.</font></div>


</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">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.</font></div>
</td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp;</font></td>
</tr><tr>
<td valign="top" width="5%" style="TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&nbsp; </font></td>
<td valign="top" width="95%" style="TEXT-ALIGN: justify">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">A summary of all non-vested stock activity as of September 30, 2010, and changes during the six month period then ended is presented below:</font></div>
</td>
</tr></tbody></table>
<table>
<tbody><tr>
<td><font>  </font></td>
<td>
<div><font>(ii) <font>Warrants</font></font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>At September 30, 2010 and March 31,2010 there were warrants 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. At March 31, 2010 there was also an outstanding warrant to purchase 40,766 shares of common stock at an exercise price per share of $3.68 held by one individual, which expired on April 30, 2010. The aggregate intrinsic value of the warrants at September 30, 2010 and March 31, 2010 was $1,888,873 and $906,364, respectively.</font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>(iii) <font>Restricted Stock</font></font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>During the six months ended September 30, 2010, the Company did not award any shares of Common Stock initially subject to forfeiture (“restricted stock”).</font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>As
of September 30, 2010 the Company had outstanding 554,365 shares of unvested restricted stock that had been issued pursuant
to the authorization of the Company’s Board of Directors and certain Restricted Stock Agreements, including 81,860
shares of restricted stock that were not issued under any of the Company’s equity 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 September 30, 2010 amounted to approximately $426,861. The shares of restricted stock granted pursuant to such agreements
vest in various tranches over one to five years from the date of grant.</font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>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.</font></div>
</td>
</tr><tr>
<td><font> </font></td>
<td><font> </font></td>
</tr><tr>
<td><font>  </font></td>
<td>
<div><font>A summary of all non-vested stock activity as of September 30, 2010, and changes during the six month period then ended is presented below:</font></div>
</td>
</tr></tbody></table>