Annual report pursuant to Section 13 and 15(d)

8. INCOME TAXES (Tables)

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8. INCOME TAXES (Tables)
12 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of deferred tax assets

Significant components of our net deferred tax assets at March 31, 2021 and 2020 are shown below:

 

    YEAR ENDED MARCH 31,  
    2021     2020  
Deferred tax assets:                
Capitalized research and development   $ 3,442,000     $ 3,442,000  
Net operating loss carryforwards1     19,921,000       18,384,000  
Stock compensation     1,399,000       1,181,000  
Total deferred tax assets     24,762,000       23,007,000  
                 
Total deferred tax liabilities            
                 
Net deferred tax assets     24,762,000       23,007,000  
Valuation allowance for deferred tax assets     (24,762,000 )     (23,007,000 )
                 
Net deferred tax assets   $     $  
Provision for income taxes

The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate for the years ended March 31, 2021 and 2020 due to the following:

 

    2021     2020  
             
Income taxes (benefit) at federal statutory rate of 21.00%   $ (1,657,000 )   $ (1,340,000 )
State income tax, net of federal benefit     (551,000 )     (446,000 )
Tax effect on non-deductible expenses and credits     1,000       122,000  
True up items     25,000       42,000  
Expiration of net operating loss carryforwards     427,000       222,000  
Change in valuation allowance     1,755,000       1,400,000  
    $     $  

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(1) Pursuant to Internal Revenue Code Section 382, use of our tax net operating loss carryforwards may be limited.