8. OPTIONS AND WARRANTS
|12 Months Ended|
Mar. 31, 2020
|OPTIONS AND WARRANTS||
The Company has not granted any options since inception.
The Company granted warrants in connection with various convertible debentures in previous periods. As of March 31, 2020 and March 31, 2019, there are 2,917,000 and 444,000 (after adjustment) remaining warrants to purchase shares of common stock outstanding, classified as a warrant liability, which expire on January 31, 2022, with an exercise price of 45% of the market value of the common shares of the Company on the date of exercise.
The warrant liability was revalued at March 31, 2020 and March 31, 2019 resulting in a $3,000 increase and $47,000 decrease to the fair value of the warrant liability, respectively, for the years ended March 31, 2020 and 2019. The warrants were cancelled in connection with the legal settlement in April of 2020 (see Note 13).
The Company issued 10,000,000 and 6,093,683 shares of their common stock on January 11, 2019 and February 8, 2019, respectively, upon cashless exercise of the warrants granted in connection with the September 11, 2017 Debenture. The Company issued approximately 13,078,000 additional shares upon the cashless exercise, and as such, based on the fair value of the common shares of the Company, recognized a loss on exercise of approximately $3,745,000.