<table>
<tbody><tr style="vertical-align: top">
    <td style="width: 5%; layout-grid-mode: line">&nbsp;</td>
    <td style="width: 95%; layout-grid-mode: line; text-align: justify">Total unrecognized compensation cost related to vested and expected to vest options at September 30, 2012 amounted to $264,980 and is expected to be recognized over a weighted average period of 1.67 years. Total compensation cost for all outstanding option awards amounted to $39,747 and $82,612 for the three and six months ended September 30, 2012 and $44,424 and $88,848 for the three and six months ended September 30, 2011, respectively.</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line">(ii) <u>Warrants</u></td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; text-align: justify">At September 30, 2012 and March 31, 2012 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 September 30, 2012 and March 31, 2012 were $2,846,819 and $2,257,314, respectively.</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line; font-style: italic">&nbsp;</td>
    <td style="layout-grid-mode: line; font-style: italic">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line">(iii) <u>Restricted Stock</u> </td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; text-align: justify">During the six months ended September 30, 2012, the Company awarded 160,000 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.</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; text-align: justify">As of September 30, 2012 the Company had awarded 1,185,571 shares (net of forfeited shares) of restricted stock under the Company’s 2002 Plan, 385,000 shares (net of forfeited shares) of restricted stock under the Company’s 2010 Plan, and 189,767 shares (net of forfeited shares) of restricted stock that were issued outside of the Company’s 2002 and 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 $2,634,569 and are 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">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="layout-grid-mode: line">&nbsp;</td>
    <td style="layout-grid-mode: line; 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>
</tbody></table>
<table>
<tbody><tr>
<td> </td>
<td>Total unrecognized compensation cost related to vested and expected to vest options at September 30, 2012 amounted to $264,980 and is expected to be recognized over a weighted average period of 1.67 years. Total compensation cost for all outstanding option awards amounted to $39,747 and $82,612 for the three and six months ended September 30, 2012 and $44,424 and $88,848 for the three and six months ended September 30, 2011, respectively.</td></tr>
<tr>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td>(ii) <u>Warrants</u></td></tr>
<tr>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td>At September 30, 2012 and March 31, 2012 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 September 30, 2012 and March 31, 2012 were $2,846,819 and $2,257,314, respectively.</td></tr>
<tr>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td>(iii) <u>Restricted Stock</u> </td></tr>
<tr>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td>During the six months ended September 30, 2012, the Company awarded 160,000 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.</td></tr>
<tr>
<td> </td>
<td> </td></tr>
<tr>
<td> </td>
<td>As of September 30, 2012 the Company had awarded 1,185,571 shares (net of forfeited shares) of restricted stock under the Company’s 2002 Plan, 385,000 shares (net of forfeited shares) of restricted stock under the Company’s 2010 Plan, and 189,767 shares (net of forfeited shares) of restricted stock that were issued outside of the Company’s 2002 and 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 $2,634,569 and are 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></tr>
<tr>
<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>
</tbody></table>