Annual report pursuant to Section 13 and 15(d)

NOTE 17 - Subsequent Events

NOTE 17 - Subsequent Events
12 Months Ended
Mar. 31, 2012
Subsequent Events [Text Block]
NOTE 17 — Subsequent Events

Increase in Number of Shares Authorized in the 2006 Plan

As provided under the 2006 Plan, the aggregate number of shares authorized for issuance as awards under the 2006 Plan automatically increased on April 1, 2012 by 1,450,395 shares (which number constitutes 5% of the outstanding shares on the last day of the year ended March 31, 2012). Total shares authorized for issuance from the 2006 Plan subsequent to the increase is 4,283,405.

As provided under the 2011 Plan, the Company may increase the aggregate number of shares authorized for issuance on the first day of each fiscal year during the term of the 2011 Plan in an amount equal to the lesser of (i) 15% of the outstanding shares of common stock of the Company on the last day of the immediately preceding year, or (ii) an amount determined by the Company’s board of the directors.

Registered Direct Offering

On April 25, 2012, the Company entered into agreements with various investors to issue up to: a) 2,360,001 shares of common stock b) 1,000 shares of Series A 0% Convertible Preferred Stock (the “Series A Preferred Stock”); and c) warrants to purchase up to 3,471,112 shares of common stock (the “Warrants”). The Company also offered up to 1,111,111 shares of common stock issuable upon conversion of the Series A Preferred Stock and 3,471,112 shares of common stock in the event the Warrants are exercised. The Warrants have an initial exercise price of $1.18 per share, are not exercisable for six months from the date of issuance, and have an exercise term of 2.5 years from the date of issuance. The Company received approximately $3,124,000 in gross proceeds from the sale of these securities. Net proceeds after deducting the placement agent commissions, legal expenses and other offering expenses, and assuming no exercise of the Warrants, was $2,833,350. The Company retained Rodman & Renshaw, LLC as the exclusive placement agent for this offering, and paid them $218,680 in placement agent commissions. On May 4, 2012, the investors converted 1,000 shares of the Series A Preferred Stock purchased in the transaction into 1,111,111 shares of common stock.