2. Related Party Transactions

3 Months Ended

Sep. 30, 2012

Notes to Financial Statements

2. Related Party Transactions

On February 9, 2011, the Company entered into a revolving line of credit facility with a credit limit of $100,000 with Navitas. The line of credit expires on March 31, 2013 and bears interest at the rate of 10% per annum. All outstanding principal and accrued interest under the existing notes between Navitas and the Company in the amount of $52,180 were transferred to this credit facility, and the existing notes were considered satisfactorily discharged as paid-in-full. Since February 9, 2011, principal draws in the amount of $34,000 were made against this revolving credit facility. Accrued interest at September 30, 2012 and March 31, 2012 amounted to $12,444 and $8,120, respectively.

As of September 30, 2012, the Company received a total of $124,794 as a working capital funding provided as a series of advances beginning in 2007 from Cagan McAfee Capital Partners, LLC, an organization responsible for arranging the change of control of the Company in 2007. The amounts are payable upon demand and bear interest at a rate of 6% per annum. Accrued interest at September 30, 2012 and March 31, 2012 amounted to $35,564 and $31,810, respectively.