6. Derivative Liabilities

3 Months Ended

Jun. 30, 2013

Notes

6. Derivative Liabilities

6. DERIVATIVE LIABILITIES

The Company issued financial instruments in the form of convertible notes with embedded conversion features.  The convertible notes payable have conversion rates which are indexed to the market value of the Company’s common stock price.

During the three month period ending June 30, 2013, $35,100 (June 30, 2012 - $nil) of convertible notes payable were converted into common stock of the Company.

These derivative liabilities have been measured in accordance with fair value measurements, as defined by GAAP. The valuation assumptions are classified within Level 3 inputs.

The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above:

	June 30, 2013
Balance, beginning of year	$      713,306
Initial recognition of derivative liability	29,050
FV change in derivative liability	561,332
Conversion of derivative liability to APIC
Asher Note #4	(37,291)
Asher Note #11	(10,673)
Balance as of June 30, 2013	$   1,255,724