Equity

12 Months Ended

Mar. 31, 2012

Equity

Stockholders' Equity Note Disclosure

7. Capital Stock

a) Authorized Stock

The company has authorized 500,000,000 common shares with a par value of $0.001 per share. Each common share shall entitle the holder to one vote, in person or proxy on any matter on which action of the stockholder of the corporation is sought. The company has authorized 5,000,000 shares of preferred stock with a par value of $0.001 per share. The holders of preferred stock have no rights except as determined by the Board of Directors of the company and/or provided by Delaware General Corporate Law.

b) Share Issuances

During the current period, the company issued a total of 5,110,000 common shares from the treasury. 520,000 shares were issued for private placements don in the last 12 months. 1,365,000 shares were issued to three individuals for consulting services and another 725,000 shares have been accounted for in the books but still have to be issued. Further, 2,500,000 shares to two companies were issued for consulting services for next 12 months.

c) Share Subscriptions

At March 31, 2012 there was $40,375 worth outstanding Share Subscriptions for which the shares were issued subsequent to March 31, 2012.

d) Warrants

In conjunction with the Private placements, 1,020,000 warrants were issued to individuals and companies that participated in the private placement done in 2011. 718,332 warrants issued in conjunction with private placements in 2009 expired on Jan 15, 2012 and further 384,454 warrants expired in June 15, 2012.

e) Stock Options

There were 200,000 options issued to a company consultant for services. As to the total number of Shares with respect to which the Option is granted, the Option shall be exercisable as follows: (i) 50% of the Option (100,000 Shares) in the aggregate may be exercised on or after November 21, 2009 at an Exercise Price of $0.20 per Share; and (ii) 50% of the Option (100,000 Shares) in the aggregate may be exercised on or after November 1, 2010 at an Exercise Price in an amount per Share that is 25% less than the ten day moving average of the Company’s Common Stock immediately prior to November 1, 2010.

The Company has committed to issue to the Chief Executive Officer 67,000 share purchase options every April. These options will be exercisable at $0.10 per share and will expire five years after the date of grant. Further bonus options are available to the Chief Executive Officer. These bonus options entitle the Chief Executive Officer to purchase shares at 20% below the market price up to a value determined by 5% of the amount of annual profits from sales in excess of $2,500,000 up to $3,999,999 and 8% of the amount of annual profits from sales in excess of $4,000,000. To date, sales have not exceeded $2,500,000 and thus no bonus options have been issued.

Under the Black-Scholes pricing model, the fair value of the warrants as of the issuance date was calculated to be $60,303 and charged as warrants expense for the period ended March 31, 2012. The fair value of each option granted is estimated at the respective grant date using the Black-Scholes Option Module. The following assumptions were made in estimating fair value:

	Warrants & options
Expected volatility		2.14
Expected life		3.0
Risk-free interest rate		0.41%
Dividend yield		-

The following table summarizes stock options and warrants outstanding as of March 31, 2012, as well as activity during the twelve months then ended:

	Warrants	Options
Balance, March 31, 2011	1,502,786	200,000
Issued	1,020,000	0
Exercised & expired	718,332	0
Balance, March 31, 2011	1,804,454	200,000

The following table provides certain information with respect to the above referenced warrants and options outstanding at March 31, 2012:

	Exercise Price	Number of Outstanding	Weighted Average Exercise Price	Weighted Average Life Years
Warrants	0.42	734,454	0.42	.50
Warrants	0.25	1,070,000	0.25	2.5
Options	0.2	200,000	0.2	6.67

f) Debt Conversion

No debit conversion in this period