Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation (Tables)

Basis of Presentation (Tables)

6 Months Ended

Sep. 30, 2012

The Company's financial instruments consist of money market funds. At September 30, 2012, all of the Company's current assets in financial instruments investments were classified as cash equivalents in the condensed consolidated balance sheet. The investment portfolio at September 30, 2011 was comprised primarily of money market funds. The restricted cash balance has since been released. The carrying amounts of the Company's cash equivalents are valued using Level 1 inputs. The Company also has warrant liabilities which are valued using Level 3 inputs.

	Six Months Ended
	Sept 30,
	2012			2011
Balance at the beginning of the period	$	19		$	26
Change in fair value recorded in earnings		(3	)		(14	)
Balance at the end of the period	$	16		$	12

Valuation assumptions to estimate the fair value of options

The Company utilized the following valuation assumptions to estimate the fair value of options that would have been granted for the three and six month periods s ended September 30, 2012 and 2011, respectively. The valuation assumptions are included for comparison only.

STOCK OPTIONS:	2012			2011
Expected life (years)		6.0			6.0
Volatility		157.5	%		151.3	%
Risk-free interest rate		0.62	%		0.96	%
Dividend yield		0	%		0	%

Valuation assumptions to estimate the fair value of ESPP

ESPP awards are valued using the Black-Scholes pricing model with expected volatility calculated using a six-month historical volatility. No ESPP awards were made in the three and six month periods ended September 30, 2012. The valuation assumptions are included for comparison only.

ESPP:	2012			2011
Expected life (years)		0.5			0.5
Volatility		94.7	%		141.1	%
Risk-free interest rate		0.10	%		0.02	%
Dividend yield		0	%		0	%

Stock option and warrant activity

A summary of the stock option and warrant activity during the six months ended September 30, 2012 is as follows:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (in Years)		Value
Beginning outstanding		127,833		$	19.24
Granted		136,500		$	3.92
Forfeited		(36,379	)		4.02
Expired		(500	)	$	-

Ending outstanding		227,454		$	12.46		6.90	$	-
Ending vested and expected to vest		227,385		$	12.44		6.91	$	-
Ending exercisable		138,813		$	17.78		5.12	$	-

Stock options and warrants outstanding

The following table summarizes information with respect to stock options and warrants outstanding as of September 30, 2012:

												Weighted
						Weighted						Average
				Number		Average				Number		Exercise
				Outstanding		Remaining		Weighted		Exercisable		Price
				As of		Contractual		Average		As of		As of
Range of				Sept 30,		Term		Exercise		Sept 30,		Sept 30,
Exercise Prices				2012		(in years)		Price		2012		2012
$	2.90	$	6.00		108,830		9.68	$	3.94		22,079	$	4.07
	6.25		11.70		54,056		5.19		11.53		52,235		11.53
	17.80		28.10		49,648		3.98		21.73		49,623		21.73
	34.20		61.80		14,006		2.67		43.95		13,998		43.95
	61.94		151.94		854		1.92		89.52		832		89.52
	152.21		285.00		58		0.94		174.00		46		174.00
	286.72		300.27		2		0.00		-		-		-
$	2.90	$	300.27		227,454		6.90	$	12.44		138,813	$	17.78

Unvested RSU activity

The following table summarizes the Company's unvested RSU activity for the six months ended September 30, 2012:

	Number			Weighted Average
	of			Grant Date
	Shares			Fair Value
Balance March 31, 2012		236,541		$	2.37
Granted		278,417		$	3.86
Forfeited		(64,285	)	$	2.07
Vested		(61,189	)	$	2.63
Balance, Sept. 30, 2012		389,484		$	3.29

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References + Details