Convertible Notes Payable

3 Months Ended

Jun. 30, 2011

Convertible Notes Payable [Abstract]

Convertible Notes Payable

Note 5. Convertible Notes Payable

The Company’s convertible debenture balances are shown below:

	June 30,			March 31,
	2011			2011
	(unaudited)
October 2007 Debentures	$	2,030,568		$	2,607,196
Debt discount		(135,696	)		(206,068	)
Total convertible debentures, net	$	1,894,872		$	2,401,128
Short-term:
Current portion of convertible debentures payable, net of discount of $135,696 at June 30, 2011 and $197,226 at March 31, 2011, respectively	$	1,894,872		$	1,979,402
Long-term:
Convertible debentures payable, net of current portion and discount of $0 at June 30, 2011 and $8,842 at March 31, 2011, respectively		—			421,726
Total convertible debentures, net	$	1,894,872		$	2,401,128

The October 2007 Debentures are convertible into shares of the Company’s common stock at a price of $3.00 per share. The Debentures bear interest at 8% per annum. The Company has been obligated to make principal or additional interest payments since March 1, 2011 with respect to the outstanding balances of the Debentures. At this time the Company was obligated to start making monthly principal and interest payments of $200,000 in the aggregate for a period of seventeen (17) months with a final balloon payment due on August 1, 2012.

During the three months ended June 30, 2011 and 2010, the Company recognized an aggregate of $70,372 and $121,565 in interest expense, respectively, due to amortization of debt discount related to the warrants, beneficial conversion features and the stated interest associated with the Company’s outstanding convertible notes payable.