10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(MARK ONE)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2012

Commission file number

000-54648

LAS VEGAS RAILWAY EXPRESS, INC.

(Exact name of Registrant as Specified in its Charter)

Delaware	56-2646797
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

6650 Via Austi Parkway, Suite 170

Las Vegas, NV  89119

(Address of principal executive offices)

702-583-6715

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

COMMON STOCK, $0.0001 PAR VALUE

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [  ] No [ X ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes [  ] No [ X ]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [  ] No [X]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]    Accelerated filer [  ]    Non-accelerated filer [  ] (Do not check if a smaller reporting company)    Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes [  ] No [X]

Aggregate market value of Common Stock held by non-affiliates based on the closing price of the registrant's Common Stock on the OTCBB on September 30, 2011 was $3,321,267.

Number of outstanding shares of common stock as of June 22, 2012 was 83,362,303.

Documents Incorporated by Reference:  None.

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LAS VEGAS RAILWAY EXPRESS, INC.

TABLE OF CONTENTS

PART I		PAGE
Item 1.	Business	4
Item 1A	Risk Factors	10
Item 1B	Unresolved Staff Comments	14
Item 2	Properties	14
Item 3.	Legal Proceedings	14
Item 4.	Mine Safety Disclosures	14
PART II		14
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	14
Item 6.	Selected Financial Data	15
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	19
Item 8.	Financial Statements and Supplemental Data	20
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	36
Item 9A.	Controls and Procedures	36
Item 9B.	Other Information	37
PART III		37
Item 10.	Directors, Executive Officers and Corporate Governance	37
Item 11.	Executive Compensation	41
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	43
Item 13.	Certain Relationships and Related Transactions and Director Independence.	44
Item 14.	Principal Accounting Fees and Services	44
PART IV		44
Item 15.	Exhibits and Financial Statement Schedules	45
SIGNATURES		46

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LAS VEGAS RAILWAY EXPRESS, INC.

EXPLANATORY NOTE

Las Vegas Railway Express, Inc. (the “Company”, “we”, “us”, or “our”) is filing this Amendment No. 1 to its Annual Report on Form 10-K/A (the "Amended 10-K") to amend its Annual Report on Form 10-K for the year ended March 31, 2012, filed with the Securities and Exchange Commission (the "SEC") on July 10, 2012 (the "Original 10-K"). This Amended 10-K restates, for reasons described below, the balance sheets as of March 31, 2012 and 2011 and its related statements of operations, stockholders’ deficit and cash flows for the years ended March 31, 2012.

The accompanying balance sheets as of March 31, 2012 and 2011 and related statements of operations, stockholders’ deficit and cash flows for the year ended March 31, 2012 have been restated for the following errors:

(1)   Reflect a correction in the presentation of common stock subscribed related to the purchase of the train business, from a liability to stockholders’ equity.  The nature of this account is such that it will not be settled with cash or other assets, but rather it will be settled by issuance of a fixed number of Company’s common stock.  Accordingly it should be classified in stockholders’ equity.

(2)   Certain of the warrants outstanding had elements that qualified them as derivative liabilities instead of equity. And two of the notes payable also had embedded elements that required bifurcation and statement as derivative liabilities. Accordingly, we obtained a third party valuation of the warrants and embedded derivatives and reclassified them as derivative liabilities.

(3)   The Company made corrections to the way it accounts for stock based compensation.

(4)   Finally, the Company has determined that since goodwill is amortized for income taxes, but not for books, there exists a temporary difference in the carrying amount of this asset between book and tax. Furthermore, as it cannot be concluded that this difference can be absorbed by the Company’s net operating loss carryforward, it is necessary to record a deferred income tax liability.

Amendments to the Original 10-K

For the convenience of the reader, this Amended 10-K sets forth the Original 10-K, as modified and superseded where necessary to

reflect the restatement. The following items have been amended principally as a result of, and to reflect, the restatement:

• Part II — Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

• Part II — Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations;

• Part II — Item 8. Financial Statements and Supplementary Data;

• Part II — Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure;

• Part II — Item 9A. Controls and Procedures;

• Part III — Item 14. Principal Accountant Fees and Services; and

• Part IV — Item 15. Exhibits and Financial Statement Schedules.

In accordance with applicable SEC rules, this Amended 10-K includes certifications from our Chief Executive Officer and Chief Financial Officer dated as of the date of this filing. Except for the items noted above, no other information included in the Original 10-K is being amended by this Amended 10-K. The Amended 10-K continues to speak as of the date of the Original 10-K, and we have not updated the filing to reflect events occurring subsequently to the Original 10-K date, other than those associated with the restatement of the Company's financial statements. Accordingly, this Amended 10-K should be read in conjunction with our filings made with the SEC subsequent to the filing of the Original 10-K.

PART I

Item 1.  Business

History

Las Vegas Railway Express, Inc.  (the “Company”, “we”, “us”, or “our”) was formed as a Delaware corporation in March 9, 2007 as Corporate Outfitters, Inc., a development stage company whose business plan involved establishing itself as a specialized brand promotional merchandising company. On November 3, 2008, pursuant to a common stock purchase agreement, the Company acquired all of the outstanding capital stock of Liberty Capital Asset Management. In connection with the acquisition, the Company changed its name to Liberty Capital Asset Management, Inc. and changed its business plan to one of acquiring pools of non-performing loans and restructuring the financial parameters such that the defaulted borrower can return to making payments in a timely manner. On January 21, 2010, the Company acquired all of the assets of Las Vegas Railway Express, a Nevada corporation. In connection with the acquisition, the Company changed its name to Las Vegas Railway Express, Inc. and changed its business plan to one of developing passenger rail transportation and ancillary ticketing and reservation services between the Los Angeles area and Las Vegas, Nevada.

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Company Overview

The Company’s plan is to establish a rail passenger train service between Las Vegas and Los Angeles using existing railroad lines currently utilized by two Class I railroads, Burlington Northern and Union Pacific. The development concept is to provide a Las Vegas style experience on the train (which we plan to call the “X” Train), which would traverse the planned route in approximately 5 hours. We plan to operate a single travel route marketed primarily to a leisure traveler from the Southern California basin  enabling us to sell rail travel as a stand-alone operation with hotel rooms and other travel related services. Our unique travel option will offer a diversified product that will set us apart from travel related options of automobile and air.

The Company is in discussions with both the Union Pacific Railroad and the BNSF Railway seeking to secure rail trackage rights agreements. The Company has reached a preliminary agreement with Union Pacific Railroad awaiting finalization of the BNSF agreement and certain capital planning issues. An updated capacity planning and feasibility analysis has substantially been completed for Union Pacific and is in final discussion with BNSF. A series of passenger railcars has been negotiated to be acquired under an agreement with Transportation Management Services.  The Company has executed a Memorandum of Understanding (or MOU) with the Plaza Hotel as a Las Vegas station site and has a similar pending agreement with the City of Fullerton for use of that station for the Los Angeles terminus of the service. The Company has executed an MOU with AMTRAK outlining duties and responsibilities of each party.

The Company estimates that it will need to obtain $35MM in additional capital to begin operations of our train service. The Company intends to seek to raise these funds through the public or private sale of equity and/or debt securities. There is no assurance such funding will be available on terms acceptable to the Company, or at all. If the Company succeeds in raising such funds, it intends to use them for   railcar purchase, design, refurbishment and outfitting, Las Vegas depot design and construction, lease payments, UP and BNSF mileage fees, salaries and other professional fees and also information technology and corporate infrastructure development. Subject to obtaining needed funding, the Company estimates that the train service will start in 3rd quarter of 2013.

Prior to commencing operations of the train service, the Company will also need to secure all of the above agreements with Union Pacific Railroad and BNSF. Additionally, we will have to finalize our haulage agreement with Amtrak.

The Company’s common stock is currently quoted on the OTCBB under the symbol XTRN. The company website is www.vegasxtrain.com. The contents of this site are not incorporated in this Memorandum.

The Company maintains offices at 6650 Via Austi Parkway, Suite 170, Las Vegas, Nevada 89119.  

Marketplace

There has been no regular passenger rail service between these two demographic areas for 13 years. The only major highway between Los Angeles and Las Vegas is Interstate 15 (I-15). Over 12 million people travel this corridor from LA to Las Vegas every year and as the LA population grows, so will the traffic on this highway. The forecast for traffic on I-15 is expected to be 17 million by 2030. It is congested and becoming increasingly so, with motor vehicle travelers experiencing substantial delays during peak travel times (e.g., Friday and Sunday afternoons to 6 hours or more). With increasing fuel costs, increasingly restrictive highway capacity, and reduced air travel from LA to Las Vegas, a rail transportation product with a Vegas motif, is a viable alternative.

The Southern California traveler represents a third of all visitors to Las Vegas and 95% of these travelers use their automobile to travel to Las Vegas. If we capture 237,000 of these drivers (2.0% of the total marketplace) in Year 1, it will fill our product to its initial capacity and achieve profitability with additional capacity being added through Year 5.

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Travel from Southern California to Las Vegas constitutes a major portion of visitor activity and is a financial foundation for the economy of the Las Vegas region. About a third of all Vegas visitors are Californians, according to a survey by the Las Vegas Convention and Visitors Authority in 2010. Statistics collected by the Center for Business and Economic Research at UNLV show that of 44.5 million annual visitors that drove into the Las Vegas Valley in 2010, 27% arrived from Southern California.

Products and Services

Class 1 Railroad Access

The Burlington Northern Santa Fe Railroad and the Union Pacific Railroad are the two largest Class 1 railroads in the United States and own the railroad right of way between Los Angeles, California and Las Vegas, Nevada, where we plan to have the “X” Train operate its service. The first step in allowing any passenger train service along their infrastructure is the completion of capacity planning and logistics studies in order for the Class I railroads to align the introduction of passenger service with their existing freight business.  Final scheduling of the “X” Train time slot will be finalized by the third quarter of 2012.

AMTRAK

We entered into an arrangement with AMTRAK in September 2009 in connection with our goal of reinstating passenger rail service on the Las Vegas/Los Angeles rail corridor. AMTRAK had planned, but abandoned the service when their Federal funding did not materialize in 2006. We then began negotiations with AMTRAK to take over their position to run service on the route. Now, almost 3 years later, we have executed with AMTRAK the first of several agreements on this route and they have agreed to provide  locomotive engineers, conductors, train servicing, maintenance, ticketing services, and a host of other services associated with the operations of The “X” Train.

Train Operations

The proposed route of The “X” Train is approximately 300 miles with the end points being Fullerton, California and then direct to Las Vegas, Nevada, The railroad Rights-of-Way (ROW) over which passenger train service could operate between Las Vegas and Los Angeles, California include privately and publicly owned segments. The privately-held portions are owned either by BNSF Railway (BNSF) or by Union Pacific Railroad (UPRR).

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Las Vegas Railway Express, Inc. has negotiated a trackage rights agreement with Union Pacific Railroad allowing our “X” Train access to their portion of our route. This agreement from Union Pacific Railroad is pending execution subject to the concurrence of the Burlington Northern Santa Fe Railroad by 3rd quarter of 2012.

Our agreements with the owners of the track where our route will travel and our willingness to pay the owners a competitive market rate gives our “X” Train the status needed to meet our scheduled travel times. In railroad terms, the owners of the track will allow our “X” Train to pass slower and longer freight trains by moving to the numerous sidings along the route. Further, such track owners will ensure immediate  maintenance of any and all track maintenance and other services that we would rely on for prompt and safe service.

In addition, the Class 1 railroads have completed their capacity planning analysis. These projects are performed by the railroad companies and include a specific time and destination study of the exact consist we will be running on the proposed existing rail infrastructure in our route..

 

Haulage Agreements

Our agreement with AMTRAK would provide us with trained T&E crews, consulting and inspection services during design, development and construction and daily inspections services to ensure safe and reliable operations. In addition to the stated services, our agreement and operating partnership would bring the following strengths:

● Experience in operating passenger rail service

● Existing contracts with Class I railroads

● Liability insurance caps

● Experienced crew and maintenance teams

● Established ticketing infrastructure on- line for cross marketing opportunities

● Established relationships with host railroads

AMTRAK will not be involved in any customer service operations related to our stated customer service standards.

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Fullerton Station

As the Los Angeles departure and arrival points of our service, Fullerton was chosen for a number of reasons.

● Within 26 miles from LA

● Located in the sixth largest population county in the United States

● Links to Los Angeles County via public roads, bus and rail routes

● Very affluent

● Tourism-centric

● Connection to MetroLink services where there are over 15,000 daily boarding’s with easy connection to Union Station passengers

● Strategic marketing and ridership partnership opportunities with MetroLink

● Proximity to Disneyland for Las Vegas marketing efforts

Las Vegas Station

Our Las Vegas arrival statement will be located within the Downtown Las Vegas gaming and resort district boarding and connected to the recently remodeled Plaza Hotel and Casino. Adjacent to Union Pacific’s main line and Symphony Plaza, our re-modeled station (formally AMTRAK’s Las Vegas station for its Dessert Wind) was chosen for:

● Its parking and local transportation ease of ingress and egress

● Location along the Union Pacific Railroad mainline

● 10 minutes from over 150,000 hotel rooms

● Impact of ridership views along the famous Las Vegas “Strip”

● Strategic alliances with Fremont Street Experience, Downtown Redevelopment Agency and Las Vegas Convention and Visitors Agency

● Low cost proximity to traveling staff accommodations

 

These are examples of specifications and drawing disclosures of the train and station concept that will help you understand what constitutes a complete design of the train, which are provided as examples only.  Actual designs will vary from these illustrations.

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Our Business Strategy

Capture And Divert Current Automobile Travelers.  95% of the 12,000,000 annual visitors from the Southern California/Los Angeles market drive to Las Vegas. In order to fill the initial “X” Train, we need only to divert/convert 237,000 from their car to the train or just 2.0% of the total annual drivers. The two demographic areas have significantly grown their population bases without the needed automobile infrastructure growing with it. 95% of all Las Vegas travelers from the Southern California basin drive to Las Vegas using the I-15 corridor.

Operating Partnerships with Host Railroads to Deliver on Time Performance.  Our agreements and our ability to pay a “market rate” with the two host railroad companies will be designed to ensure we and they will have no issues with their freight business and that they will ensure a high on-time result.

Operating Partnerships with Los Angeles based commuter Rail services. Metrolink.  The “X” Train is leveraging various relationships in the Los Angeles Metro area and one of them is the co- marketing plan with Metrolink. Metrolink operates commuter passenger rail service in the greater Los Angeles metro area and services over 12 million riders annually. Metrolink has 55 local train stations which share the same right of way and/or connect to X Train planned station at  Fullerton, California. By joint venturing a marketing plan with Metrolink, “X” Train gains access to its ridership for travel to Las Vegas.

Metrolink is looking to expand its weekend ridership and the “X” Train is a viable candidate. Discussions have already begun with Metrolink towards forging a joint marketing and operations plan for “X” Train to have access to the 55 stations in the Metrolink network.

Capacity Management.  We plan to start out with two (2) roundtrips a week. We anticipate that our capacity will be nearly 1,200 passengers a day. If demand fluctuates, we anticipate that we will have the ability to add or subtract cars to meet the demands of each day. In year 2 of our Business Plan we plan to add two additional trains to our schedule and by year 5 we anticipate having 10 trains running on this route.

Low Operating Costs.  Most transportation travel companies have very high fixed and variable costs associated with operating their businesses and can comprise up to 70% of all of their operating costs.  Our model projects a stabilized cost associated with hauling our train comprised of negotiated rates with the host railroads. Corporate overhead is minimal.

Competition

Las Vegas Railway Express’ “X” Train will have no conventional passenger rail service competing against our product. The 2012 Nevada State Rail Plan (www.nvrailplan.com) reviewed all the proposals for rail services for the year and Las Vegas Railway Express, Inc. was among the recommended projects.

There are two proposed high speed rail alternatives:

DesertXpress - Private Las Vegas Company

● High-speed rail

● Las Vegas to Victorville, CA (85 miles from Los Angeles)

● Requires  right-of-way acquisition

● $6 billion to construct new rail system

● 7-10 years to complete if funded

Mag-Lev - American Mag-Lev Sponsor

● High-speed magnetic levitation technology

● Las Vegas to Anaheim, CA (25 miles from Los Angeles)

● Requires right-of-way acquisition

● $15 billion to construct

● 15 years to complete if funded

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Intellectual Property

None.

Employees

As of March 31, 2012, we had 5 full-time employees, of whom 1 was in an administrative position and 4 were in management.

Item 1A.  Risk Factors

Risk Factors

Investing in our Common Stock involves a high degree of risk. You should carefully consider the risks described below with all of the other information included in this prospectus before making an investment decision. If any of the possible adverse events described below actually occurs, our business, results of operations or financial condition would likely suffer. In such an event, the market price of our Common Stock could decline and you could lose all or part of your investment.

We have a history of losses and a large accumulated deficit and we may not be able to achieve profitability in the future.

We have net losses of $2,006,033 and $1,791,983 for the years ended March 31, 2012 and 2011, respectively. As of March 31, 2012, we have an accumulated deficit of $11,809,532.  There can be no assurance that we will be profitable in the future. If we are not profitable and cannot obtain sufficient capital we may have to cease our operations.

Changes in government policy could negatively impact demand for the Company’s services, impair its ability to price its services or increase its costs or liability exposure.

Changes in United States government policies could change the macroeconomic environment and affect demand for the Company’s services. Developments and changes in laws and regulations as well as increased economic regulation of the rail industry through legislative action and revised rules and standards applied by the U.S. Surface Transportation Board in various areas, including rates, services and access to facilities could adversely impact the Company’s ability to determine prices for rail services and significantly affect the revenues, costs and profitability of the Company’s business. Additionally, because of the significant costs to maintain its rail network, an increase in expenditures related to the maintenance of the rails owned by the Class I railroads could hinder the Company’s ability to maintain, improve or expand the rail network, facilities and equipment in order to accept or handle our Company’s increased demand. Federal or state spending on infrastructure improvements or incentives that favor other modes of transportation could also adversely affect the Company’s revenues.

The Company’s success depends on its ability to continue to comply with the significant federal, state and local governmental regulations to which it is subject.

The Company is subject to a significant amount of governmental laws and regulation with respect to its and practices, taxes, railroad operations and a variety of health, safety, labor, environmental and other matters. Failure to comply with applicable laws and regulations could have a material adverse effect on the Company. Governments may change the legislative and/or regulatory framework within which the Company operates without providing the Company with any recourse for any adverse effects that the change may have on its business. Federal legislation enacted in 2008 mandates the implementation of positive train control technology by December 31, 2015, on certain mainline track where intercity and commuter passenger railroads operate and where toxic-by-inhalation hazardous materials are transported. This type of technology is new and deploying it across our host railroads’ infrastructure may pose significant operating and implementation risks and could require significant capital expenditures.

As part of the Class I railroad operations, the Company will traverse rails that frequently transports chemicals and other hazardous materials, which could expose it to the risk of significant claims, losses and penalties.

The “host” or Class I railroads are required to transport these commodities to the extent of its common carrier obligation. An accidental release of these commodities could result in a significant loss of life and extensive property damage as well as environmental remediation obligations. The associated costs could have an adverse effect on the Company’s operating results, financial condition or liquidity. In addition, insurance premiums charged for some or all of the coverage currently maintained by the Company could increase dramatically or certain coverage may not be available to the Company in the future if there is a catastrophic event related to rail transportation of these commodities.

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Downturns in the economy could adversely affect demand for the Company’s services.

Significant, extended negative changes in domestic and global economic conditions that impact the customers transported by the Company and may have an adverse effect on the Company’s operating results, financial condition or liquidity. Declines in economic growth and the United States travel industry all could result in reduced revenues in one or more business units.

Negative changes in general economic conditions could lead to disruptions in the credit markets, increase credit risks and could adversely affect the Company’s financial condition or liquidity.

Challenging economic conditions may not only affect revenues due to reduced demand for many goods and services, but could result in payment delays and increased credit risk. Railroads are capital-intensive and may need to finance a portion of the building and maintenance of infrastructure as well as locomotives and other rail equipment. Economic slowdowns and related credit market disruptions may adversely affect the Company’s cost structure, its timely access to capital to meet financing needs and costs of its financings. Declines in the securities and credit markets could also affect the Company’s pension fund and railroad retirement tax rates, which in turn could increase funding requirements.

The Company is subject to stringent environmental laws and regulations, which may impose significant costs on its business operations.

The Company’s operations are subject to extensive federal, state and local environmental laws and regulations concerning, among other things, emissions to the air; discharges to waters; the generation, handling, storage, transportation and disposal of waste and hazardous materials; and the cleanup of hazardous material or petroleum releases. Changes to or limits on carbon dioxide emissions could result in significant capital expenditures to comply with these regulations with respect to the Company’s diesel locomotives, equipment, vehicles and machinery and its maintenance yards.  Emission regulations could also adversely affect fuel efficiency and increase operating costs. Further, local concerns on emissions and other forms of pollution could inhibit the Company’s ability to build facilities in strategic locations to facilitate growth and efficient operations. In addition, many land holdings are and have been used for industrial or transportation-related purposes or leased to commercial or industrial companies whose activities may have resulted in discharges onto the property. The Company’s subsidiaries have been and may continue to be subject to allegations or findings to the effect that they have violated, or are strictly liable under, these laws or regulations. The Company’s operating results, financial condition or liquidity could be adversely affected as a result of any of the foregoing, and it may be required to incur significant expenses to investigate and remediate environmental contamination.

Fuel supply availability and fuel prices may adversely affect the Company’s results of operations, financial condition or liquidity.

Fuel supply availability could be impacted as a result of limitations in refining capacity, disruptions to the supply chain, rising global demand and international political and economic factors. A significant reduction in fuel availability could impact the Company’s ability to provide transportation services at current levels, increase fuel costs and impact the economy. Each of these factors could have an adverse effect on the Company’s operating results, financial condition or liquidity. If the price of fuel increases substantially, the Company may be able to offset a significant portion of these higher fuel costs through a fuel surcharge program or increase in ticket prices, which may result in loss of customers.

Severe weather and natural disasters could disrupt normal business operations, which would result in increased costs and liabilities and decreases in revenues.

The Company’s success will be dependent on its ability to operate its railroad system efficiently. Severe weather and natural disasters, such as tornados, flooding and earthquakes, could cause significant business interruptions and result in increased costs and liabilities and decreased revenues. In addition, damages to or loss of use of significant aspects of the Company’s infrastructure due to natural or man-made disruptions could have an adverse effect on the Company’s operating results, financial condition or liquidity for an extended period of time until repairs or replacements could be made. Additionally, during natural disasters, the Company’s workforce may be unavailable, which could result in further delays. Extreme swings in weather could also negatively affect the performance of locomotives and rolling stock.

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The Company’s operational dependencies may adversely affect results of operations, financial condition or liquidity.

Due to the integrated nature of the United States’ freight transportation infrastructure, the Company’s operations may be negatively affected by service disruptions of other entities such as ports and other railroads which interchange with the Company and its Class I railroad partners. A significant prolonged service disruption of one or more of these entities could have an adverse effect on the Company’s results of operations, financial condition or liquidity.

Acts of terrorism or war, as well as the threat of war, may cause significant disruptions in the Company’s business operations.

Terrorist attacks and any government response to those types of attacks and war or risk of war may adversely affect the Company’s results of operations, financial condition or liquidity. The Company’s use of the Class I railroad rail lines and facilities could be direct targets or indirect casualties of an act or acts of terror, which could cause significant business interruption and result in increased costs and liabilities and decreased revenues, which could have an adverse effect on operating results and financial condition. Such effects could be magnified if releases of hazardous materials are involved. Any act of terror, retaliatory strike, sustained military campaign or war or risk of war may have an adverse impact on the Company’s operating results and financial condition by causing unpredictable operating or financial conditions, including disruptions of our host railroads or connecting rail lines, loss of critical customers or partners, volatility or sustained increase of fuel prices, fuel shortages, general economic decline and instability or weakness of financial markets. In addition, insurance premiums charged for some or all of the coverage currently maintained by the Company could increase dramatically, the coverage available may not adequately compensate it for certain types of incidents and certain coverage’s may not be available to the Company in the future.

The Company depends on the stability and availability of its information technology systems.

The Company relies on information technology in all aspects of its business. A significant disruption or failure of its information technology systems could result in service interruptions, revenue collections, safety failures, security violations, regulatory compliance failures and the inability to protect corporate information assets against intruders or other operational difficulties. Although the Company has taken steps to mitigate these risks, a significant disruption could adversely affect the Company’s results of operations, financial condition or liquidity. Additionally, if the Company is unable to acquire or implement new technology, it may suffer a competitive disadvantage, which could also have an adverse effect on the Company’s results of operations, financial condition or liquidity.

The Company is subject to various claims and lawsuits, and increases in the amount or severity of these claims and lawsuits could adversely affect the Company’s operating results, financial condition and liquidity.

As part of its railroad operations, the Company’s Class I railroad partners are exposed to various claims and litigation related to commercial disputes, personal injury, property damage, environmental liability and other matters. Personal injury claims by our employees and those of the host railroads are subject to the Federal Employees’ Liability Act (FELA), rather than state workers’ compensation laws. The Company believes that the FELA system, which includes unscheduled awards and a reliance on the jury system, can contribute to increased expenses. Other proceedings include claims by third parties for punitive as well as compensatory damages, and a few proceedings purport to be class actions. Developments in legislative and judicial standards, material changes to litigation trends, or a catastrophic rail accident or series of accidents involving any or all of property damage, personal injury, and environmental liability could have a material adverse effect on the Company’s operating results, financial condition and liquidity.

Most of the Company’s host railroad employees are represented by unions, and failure to negotiate reasonable collective bargaining agreements may result in strikes, work stoppages or substantially higher ongoing labor costs.

A significant majority of the Class I railroads employees are union-represented. These union employees work under collective bargaining agreements with various labor organizations. Wages, health and welfare benefits, work rules and other issues have traditionally been addressed through industry-wide negotiations. These negotiations have generally taken place over an extended period of time and have previously not resulted in any extended work stoppages. The existing agreements have remained in effect and will continue to remain in effect until new agreements are reached or the Railway Labor Act’s procedures (which include mediation, cooling-off periods and the possibility of presidential intervention) are exhausted. While the negotiations have not yet resulted in any extended work stoppages, if the Company or our Class I railroad partners are unable to negotiate acceptable new agreements, it could result in strikes by the affected workers, loss of business and increased operating costs as a result of higher wages or benefits paid to union members, any of which could have an adverse effect on the Company’s operating results, financial condition or liquidity.

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The unavailability of qualified personnel could adversely affect the Company’s operations.

Changes in demographics, training requirements and the unavailability of qualified personnel, particularly engineers and trainmen, could negatively impact the Company’s ability to meet demand for rail service. Recruiting and retaining qualified personnel, particularly those with expertise in the railroad industry, are vital to operations. Although the Company has adequate personnel for the current business environment, unpredictable increases in demand for rail services may exacerbate the risk of not having sufficient numbers of trained personnel, which could have a negative impact on operational efficiency and otherwise have a material adverse effect on the Company’s operating results, financial condition or liquidity.

Our independent registered public accounting firm, in their report on the audited financial statements for the year ended March 31, 2012, states that there is a substantial doubt that we will be able to continue as a going concern.

Our auditors' report on our audited March 31, 2012 financial statements, and Note 2 to such financial statements, reflect the fact that without raising additional financing through loans or stock sales, it would be unlikely for us to continue as a going concern.  The business plan requires extensive infrastructure and capital expenditures prior to commencement of revenue generating operations. There can be no assurance that we will be able to raise additional capital and if we are unable to do so we may have to cease operations.

The Company has identified material weaknesses in internal control over financial reporting.

The Company has concluded that its internal control over financial reporting as of March 31, 2012 is ineffective because of material weakness identified related to inadequate technical accounting review of transactions which resulted in a restatement of the 2012 and 2011 financial statements. A failure to implement improved internal controls, or difficulties encountered in their implementation or execution, could cause the Company future delays in its reporting obligations and could have a negative effect on the Company and the trading price of the Company’s common stock. See “Item 9A. Controls and Procedures,” for more information on the status of the Company’s internal control over financial reporting.

RISKS RELATING TO OUR COMMON STOCK

We have not paid dividends on common stock in the past and do not expect to pay dividends in the future.  Any return on investment may be limited to the value of our common stock.

We have never paid cash dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future.  The payment of dividends on our common stock would depend on earnings, financial condition and other business and economic factors affecting it at such time as the Board of Directors may consider relevant.  If we do not pay dividends, our common stock may be less valuable because a return on your investment will only occur if its stock price appreciates.

There is a limited market for our common stock which may make it more difficult to dispose of your stock.

Our common stock is currently quoted on the Over the Counter Bulletin Board under the symbol "XTRN".  There is a limited trading market for our common stock.  Accordingly, there can be no assurance as to the liquidity of any markets that may develop for our common stock, the ability of holders of our common stock to sell our common stock, or the prices at which holders may be able to sell our common stock.

A sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.

If our stockholders sell substantial amounts of our common stock in the public market, the market price of our common stock could fall.  These sales also may make it more difficult for us to sell equity or equity-related securities in the future at a time and price that we deem reasonable or appropriate.

Our common stock is subject to the "Penny Stock" rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.

The SEC has adopted Rule 3a51-1 which establishes the definition of a "penny stock", for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions.  For any transaction involving a penny stock, unless exempt, Rule 15g-9 requires:

● that a broker or dealer approve a person's account for transactions in penny stocks; and

● that the broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

In order to approve a person's account for transactions in penny stocks, the broker or dealer must:

● obtain financial information and investment experience objectives of the person; and

● make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

13

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market, which, in highlight form:

● sets forth the basis on which the broker or dealer made the suitability determination; and

● that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions.  Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.

Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules.  This may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

As an issuer of “penny stock”, the protection provided by the federal securities laws relating to forward looking statements does not apply to us.

Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

Item 1B.  Unresolved Staff Comments.

Not applicable.

Item 2.  Properties.

As of March 31, 2012, we lease approximately 2,600 square feet of general office space in premises located at 6650 Via Austi Parkway, Suite 170, Las Vegas, Nevada. Our lease for this space expires in February 2013 and provides for monthly payments of $5,800.

Item 3.  Legal Proceedings.

In the ordinary course of business, the Company may be or has been involved in legal proceedings from time to time. As of the date of this annual report on Form 10-K, there have been no material changes to any legal proceedings relating to the Company which previously were not reported.

Item 4.  MINE SAFETY DISCLOSURES

Not applicable.

PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock is currently quoted on the Over-The-Counter Bulletin Board under the symbol “XTRN”.  On June 6, 2012, the last trade of our stock was at the price of $0.065 per share.  The following table sets forth the high and low prices per share of our common stock for each period indicated.  These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

	Common Shares
Year Ended March 31, 2012:	High		Low
Quarter Ended June 30, 2011	$	0.27	$	0.15
Quarter Ended September 30, 2011	$	0.19	$	0.095
Quarter Ended December 31, 2011	$	0.13	$	0.07
Quarter Ended March 31, 2012	$	0.11	$	0.06
Year Ended March 31, 2011:	High		Low
Quarter Ended June 30, 2010	$	0.25	$	0.13
Quarter Ended September 30, 2010	$	0.35	$	0.18
Quarter Ended December 31, 2010	$	0.33	$	0.08
Quarter Ended March 31, 2011	$	0.29	$	0.11

14

Number of Stockholders

As of March 31, 2012, there were 188 stockholders of record of our common stock.  

Dividend Policy

We have never declared or paid any cash dividends on our common stock. We do not anticipate paying any cash dividends to stockholders in the foreseeable future. In addition, any future determination to pay cash dividends will be at the discretion of the Board of Directors and will be dependent upon our financial condition, results of operations, capital requirements, and such other factors as the Board of Directors deem relevant.

Equity Compensation Plan Information as of March 31, 2012

Equity Compensation Plan Information
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted- average  exercise price of outstanding  options, warrants and rights (b)		Number of securities remaining available for future  issuance under equity compensation plans (excluding securities  reflected in  column (a)) (c)
Equity compensation plans approved by security holders		-	$	-		20,000,000
Equity compensation plans not approved by security holders		2,000,000	$	0.14		-
Total		2,000,000	$	-		20,000,000

Recent Sales of Unregistered Securities.

On May 3, 2012, Las Vegas Railway Express, Inc. (the “Company”) entered into an a subscription agreement with an accredited investor, pursuant to which the Company sold 3,000,000 shares of common stock for an aggregate purchase price of $150,000. On May 23, 2012 the Company sold 1,500,000 shares of common stock for an aggregate purchase price of $75,000 and on May 31, 2012 the Company sold 8,300,000 shares of common stock for an aggregate purchase price of $415,000. In connection with the foregoing, the Company relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.

Purchases of Equity Securities by the Issuer and Affiliated Purchaser

None.

Item 6.  Selected Financial Data

Not applicable.

Forward-Looking Statements

Statements contained in this Form 10-K that are not historical facts are forward-looking statements.  In addition, words such as “believes,” “anticipates,” “expects,” “intends” and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements or events, or timing of events, to differ materially from any future results, performance or achievements or events, or timing of events, expressed or implied by such forward-looking statements.  We cannot assure that we will be able to anticipate or respond timely to the changes that could adversely affect our operating results in one or more fiscal quarters.  Results of operations in any past period should not be considered indicative of results to be expected in future periods.  Fluctuations in operating results may result in fluctuations in the price of our securities.

15

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our financial statements and notes thereto included elsewhere herein.

Overview

Las Vegas Railway Express, Inc. (the "Company”, “Las Vegas Railway”, “we”, “our” or “us”), a Delaware corporation, is a company whose plan is to re-establish a conventional rail passenger train service between Las Vegas and Los Angeles using existing freight railroad lines. The development concept is to provide a Las Vegas style experience on the train, which would traverse the planned route in approximately 5:00 hours. We plan to operate a single travel route marketed primarily to a leisure traveler from the Southern California basin  enabling us to sell rail travel as a stand-alone operation bundled with hotel rooms and other travel related services. Our unique travel option will offer a diversified product that will set us apart from travel related options of automobile and air.

Critical Accounting Policies

The preparation of our financial statements and notes thereto requires management to make estimates and assumptions that affect the amounts and disclosures reported within those financial statements. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, workers' compensation costs, collectibles of accounts receivable, and impairment of goodwill and intangible assets, contingencies, litigation and income taxes. Management bases its estimates and judgments on historical experiences and on various other factors believed to be reasonable under the circumstances. Actual results under circumstances and conditions different than those assumed could result in differences from the estimated amounts in the financial statements. There have been no material changes to these policies during the fiscal year.

Intangible Assets:

Goodwill represents the excess of purchase price over tangible and intangible assets acquired, less liabilities assumed arising from the acquisition of the train business on November 23, 2009.  Goodwill is not amortized, but is reviewed for potential impairment on an annual basis at the reporting unit level.  On March 31, 2012, as required by the Intangible topic of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”), the Company conducted an analysis of the goodwill on its single reporting unit using the Company’s market capitalization (based on Level 1 inputs). For the fiscal years ending March 31, 2012 and 2011, our assessment for impairment found that due to the continued progress toward the measurement goals of the business plan that there is no impairment of goodwill. The Company has no accumulated impairment losses on goodwill.

Income Taxes:

The Company accounts for income taxes under FASB ASC 740 "Income Taxes."  Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  The deferred tax assets of the Company relate primarily to operating loss carryforwards for federal income tax purposes. A full valuation allowance for deferred tax assets has been provided because the Company believes it is not more likely than not that the deferred tax asset will be realized. Realization of deferred tax assets is dependent on the Company generating sufficient taxable income in future periods.

The Company’s goodwill is deductible for tax but not for book. This difference creates a deferred tax liability, which cannot be matched with the Company’s deferred tax asset. As a result, the Company cannot net it with its net operating loss carryforward and therefore records a deferred tax liability to reflect the future non-deductibility of its goodwill asset. The deferred tax liability at March 31, 2012 and 2011 was $42,343 and $0, respectively.

The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2012 and 2011, the Company has not established a liability for uncertain tax positions.

Stock-Based Compensation:

The Company issues stock, options and warrants as share-based compensation to employees and non-employees.

The Company accounts for its stock-based compensation to employees in accordance FASB ASC 718.  Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. 

16

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50 “Equity - Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The final fair value of the share-based payment transaction is determined at the performance completion date. For interim periods, the fair value is estimated and the percentage of completion is applied to that estimate to determine the cumulative expense recorded.

The Company values compensatory stock based on the market price on the measurement date. As described above, for employees this is the date of grant, and for non-employees, this is the date of service completion.

The Company values stock options and warrants that do not qualify as derivative instruments using the Black-Scholes option pricing model.  There were no warrants or options granted during the years ended March 31, 2012 or 2011 for which the Company used the Black-Scholes model.

Certain compensatory warrants qualify as derivative instruments and are valued using the binomial lattice method. See Note 7 to the financial statements below regarding accounting for derivative liabilities.

Fair Value of Financial Instruments:

The Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2012.  The amounts shown for notes payable approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value, in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. These assumptions may have a significant effect on our estimates of fair value, and the use of different assumptions as well as changes in market conditions could have a material effect on our results of operations or financial condition.

17

Results of Operations

The following are the results of our continuing operations for the year ended March 31, 2012 compared to the year ended March 31, 2011.

		Year Ended
		March 31,			March 31,
		2012			2011			$ Change			% Change
	(Restated)
Operating Expenses:
Compensation and payroll taxes		$	1,222,013		$	780,849		$	441,164			56.5	%
Selling, general and administrative			233,577			314,835			(81,258	)		-25.8	%
Professional fees			268,731			752,052			(483,321	)		-64.3	%
Depreciation expense			320			-			320			100.0	%
Total expenses			1,724,641			1,847,736			(123,095	)		-6.7	%
Loss from continuing operations			(1,724,641	)		(1,847,736	)		123,095			-6.7	%
Other (expense) income
Interest income			-			3,000			(3,000	)		-100.0	%
Interest expense			(295,131	)		(198,813	)		(96,318	)		48.4	%
Change in derivative liability			37,086			-			37,086			100.0	%
Loss on disposition of assets			-			(2,965	)		2,965			-100.0	%
Gain on extinguishment of debt			-			238,374			(238,374	)		-100.0	%
Total other (expense) income			(258,045	)		39,596			(297,641	)		-751.7	%
Net loss from continuing operations before tax provision			(1,982,686	)		(1,808,140	)		(174,546	)		9.7	%
Provision for income taxes			42,343			-			42,343			100.0	%
Net loss from continuing operations			(2,025,029	)		(1,808,140	)		(216,889	)		12.0	%
Discontinued operations:
Income from discontinued operations			18,996			16,157			2,839			17.6	%
Net loss		$	(2,006,033	)	$	(1,791,983	)	$	(214,050	)		11.9	%

Revenue

During the years ended March 31, 2012 and 2011, our railcar operations have yet to generate any revenue.

Operating Expenses

Compensation and payroll taxes increased by $441,164, or 56.5%, during the year ended March 31, 2012 as compared to 2011.  The increase in compensation expense is related to the hiring of additional full-time employees to replace consultants that were previously used, including our Chief Executive Officer and Chief Operating Officer.  Accordingly, we had a reduction of our professional fee expenses during the year ended March 31, 2012 of $483,321.  Selling, general and administrative expenses decreased by $81,258, or 25.8% during 2012 primarily due to higher costs in 2011 associated with travel expenses related to raising capital, as well as higher expenses associated with officers auto allowances and rent expense.

Other (Expense) Income

Interest expense increased by $96,318, or 48%, during 2012 primarily due to the increase in debt outstanding during the period, as well as the issuance of warrants in connection with debt during 2012.  Our change in derivative liability amounted to $37,086 during 2012 resulted in the decrease in the valuation of derivative transactions entered into during 2012.  There was no corresponding amount during 2011, as we had no derivatives during that timeframe.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate funds to support asset growth, satisfy disbursement needs, maintain reserve requirements and otherwise operate on an ongoing basis. The Company has no operating revenues and is currently dependent on financing and sale of stock to fund operations.

We have experienced net losses and negative cash flows from operations since our inception.  We have sustained losses from continuing operations of $2,006,033 and $1,791,983 for the years ended March 31, 2012 and 2011, respectively. 

We continue to actively pursue various funding options, including equity offerings and debt financings, to obtain additional funds to continue the development of our products and bring them to commercial markets. There can be no assurance that we will be able to consummate any fund raising transactions on terms acceptable to us or at all.  

18

We believe that the successful growth and operation of our business is dependent upon our ability to do any or all of the following:

● obtain adequate sources of debt or equity financing to pay unfunded operating expenses and fund long-term business operations; and

● manage or control working capital requirements by controlling operating expenses.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Although a substantial portion of the Company’s cumulative net loss is attributable to discontinued operations, management believes that it will need additional equity or debt financing to be able to implement the business plan.  These matters raise substantial doubt about the Company’s ability to continue as a going concern.  There can be no assurance that we will be successful in achieving our long-term plans as set forth above, or that such plans, if consummated, will enable us to obtain profitable operations or continue in the long-term.

The Company raised $ 383,254 during the year ended March 31, 2012 from private offerings of stock.  The Company also received an additional $788,333 from the issuance of debt.

On April 27, 2012 the Company commenced a private offering of common stock to raise interim funds (up to $1.5MM) through a private offering memorandum. As of June 22, 2012, the Company has received gross proceeds of $1,120,000 from the sale of 22,400,000 shares of common stock. The Company anticipates this will provide the Company with sufficient operating cash for at least one year.  The Company intends to seek such funding through private or public sales of equity and/or debt securities. There is no assurance such funding will be available on terms acceptable to the Company, or at all.

Cash Flows

Net cash used in operating activities for the years ended March 31, 2012 and 2011 was $1,131,068 and $1,407,834, respectively. The primary sources of cash used in operating activities for the years ended March 31, 2012 and 2011 were from net losses of $2,006,033 and $1,791,983. The non-cash components of operating expenses during the years ended March 31, 2012 and 2011 primarily related to share based compensation expenses $685,881 and $625,993, respectively, as well as amortization of debt discounts of $257,653 and $166,930, respectively.

Net cash used for investing activities during the year ended March 31, 2012 was $3,200 and $0 for the purchase of a copier.  We had no capital expenditures during 2011.

Net cash provided by financing activities for the years ended March 31, 2012 and 2011 were $1,171,587 and $1,418,276, respectively. In 2012, the Company sold stock for $383,254 and issued debt of $788,333. In 2011, the Company sold stock for $ 1,269,001 and issued debt of $175,000. During the years ended March 31, 2012 and 2011, $0 and $20,725, respectively, was paid on related party payables.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

Not applicable

19

Item 8.  Financial Statements and Supplementary Data.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Las Vegas Railway Express, Inc.

Las Vegas, Nevada

We have audited the accompanying balance sheet of Las Vegas Railway Express, Inc. (“Company”), as of March 31, 2012, and the related statement of operations, stockholders’ deficit and cash flows for the year ended March 31, 2012. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Las Vegas Railway Express, Inc. as of March 31, 2012, and the result of its operations and its cash flows for the year ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that Las Vegas Railway Express, Inc. will continue as a going concern. As described in Note 2 to the financial statements, the Company has suffered recurring losses from operations, has a net capital deficiency, has no revenues and has a negative working capital. These factors among others raise substantial doubt about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

As described in Note 2 to the financial statements, the Company has restated its financial statements for 2012.

/s/ BDO USA, LLP

Los Angeles, California

June 10,  2013

20

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

Las Vegas Railway Express, Inc.

Las Vegas, Nevada

We have audited the accompanying balance sheet of Las Vegas Railway Express, Inc., as of March 31, 2011, and the related statement of operations, stockholders’ equity (deficit) and cash flows for the year ended March 31, 2011. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Las Vegas Railway Express, Inc.  as of March 31, 2011, and the result of its operations and its cash flows for the year ended March 31, 2011, in conformity with accounting principles generally accepted (GAAP) in the United States of America.

The accompanying financial statements have been prepared assuming that Las Vegas Railway Express, Inc. will continue as a going concern. As discussed in Note 2 to the financial statements, Las Vegas Railway Express, Inc. suffered recurring losses from operations which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding those matters also are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

As described in Note 2 to the financial statements, the Company has restated its financial statements for 2011.

Hamilton, PC

/s/ Hamilton, PC

Denver, Colorado

July 10, 2012, except as to Note 2 which is as of June 10, 2013

21

LAS VEGAS RAILWAY EXPRESS, INC.

BALANCE SHEETS

	March 31,			March 31,
	2012			2011
	(Restated)			(Restated)
Assets
Current assets
Cash	$	53,632		$	16,313
Other current assets		47,028			-
Total current assets		100,660			16,313
Property and equipment, net of accumulated depreciation		2,880			-
Other assets
Goodwill		843,697			843,697
Total other assets		843,697			843,697
Total assets	$	947,237		$	860,010
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Short term notes payable	$	785,116		$	-
Accounts payable and accrued expenses		236,009			169,955
Derivative liability		170,499			-
Liabilities to be disposed of, current		905,950			999,122
Total current liabilities		2,097,574			1,169,077
Deferred tax liability		42,343			-
Total liabilities		2,139,917			1,169,077
Commitments
Stockholders' deficiency
Common stock subscribed		640,000			850,000
Common stock, $0.0001 par value, 200,000,000 shares authorized, 48,653,350 and 39,201,498 shares issued and outstanding as of March 31, 2012 and 2011, respectively		4,865			3,920
Additional paid-in capital		9,971,987			8,640,512
Accumulated deficit		(11,809,532	)		(9,803,499	)
Total stockholders' deficiency		(1,192,680	)		(309,067	)
Total liabilities and stockholders' deficiency	$	947,237		$	860,010
See accompanying notes to financial statements

22

LAS VEGAS RAILWAY EXPRESS, INC.

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED MARCH 31, 2012 AND 2011

	Year Ended
	March 31,			March 31,
	2012			2011
	(Restated)
Operating Expenses:
Compensation and payroll taxes	$	1,222,013		$	780,849
Selling, general and administrative		233,577			314,835
Professional fees		268,731			752,052
Depreciation expense		320			-
Total expenses		1,724,641			1,847,736
Loss from continuing operations		(1,724,641	)		(1,847,736	)
Other (expense) income
Interest income		-			3,000
Interest expense		(295,131	)		(198,813	)
Change in derivative liability		37,086			-
Loss on disposition of assets		-			(2,965	)
Gain on extinguishment of debt		-			238,374
Total other (expense) income		(258,045	)		39,596
Net loss from continuing operations before tax provision		(1,982,686	)		(1,808,140	)
Provision for income taxes		42,343			-
Net loss from continuing operations		(2,025,029	)		(1,808,140	)
Discontinued operations:
Income from discontinued operations		18,996			16,157
Net loss	$	(2,006,033	)	$	(1,791,983	)
Net (loss) per share, continuing operations, basic and diluted	$	(0.05	)	$	(0.05	)
Net income (loss) per share, discontinued operations, basic and diluted	$	-		$	-
Net (loss) per share basic and diluted	$	(0.05	)	$	(0.05	)
Weighted average number of common
shares outstanding, basic and diluted		43,680,249			36,253,005
See accompanying notes to financial statements

23

LAS VEGAS RAILWAY EXPRESS, INC.

 STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

										Additional
	Common Stock									Paid-in			Accumulated
	Shares			Amount			Subscriptions			Capital			Deficit			Total
Balance, March 31, 2010		22,889,686		$	2,289		$	640,000		$	6,464,307		$	(8,011,516	)	$	(904,920	)
Stock issued for cash		8,049,411			805						1,268,196						1,269,001
Stock issued from subscriptions payable		4,000,000			400						159,600						160,000
Stock issued for services		2,388,416			239			210,000			267,655						477,894
Stock issued for compensation		454,615			45						67,532						67,577
Stock issued for debt		1,451,174			145						154,287						154,432
Stock issued for debt discount		2,400,000			240						299,760						300,000
Recission of stock issued for debt		(2,431,804	)		(243	)					(121,347	)		-			(121,590	)
Stock based compensation											80,522						80,522
Net loss		-			-						-			(1,791,983	)		(1,791,983	)
Balance, March 31, 2011 (restated)		39,201,498			3,920			850,000			8,640,512			(9,803,499	)		(309,067	)
Stock issued for cash		3,785,023			379						382,875						383,254
Stock issued from subscriptions payable		600,000			60			(210,000	)		209,940						-
Stock issued for services		982,741			98						127,395						127,493
Stock issued for compensation (restated)		4,334,268			433						514,933						515,366
Warrants issued for debt discount (restated)											53,285						53,285
Stock based compensation		-			-						80,522			-			80,522
Recission of stock issued to former officer		(250,000	)		(25	)					(37,475	)					(37,500	)
Net loss (restated)		-			-						-			(2,006,033	)		(2,006,033	)
Balance, March 31, 2012 (Restated)		48,653,530		$	4,865		$	640,000		$	9,971,987		$	(11,809,532	)	$	(1,192,680	)

See accompanying notes to financial statements.

24

LAS VEGAS RAILWAY EXPRESS, INC.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED MARCH 31, 2012 AND 2011

	March 31,			March 31,
	2012			2011
	(Restated)
Cash flows from operating activities
Net loss	$	(2,006,033	)	$	(1,791,983	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		320			-
Amortization of discounts on note payable		257,653			166,930
Gain on extinguishment of debt		-			(238,374	)
Loss on disposition of assets		-			2,965
Deferred tax provision		42,343			-
Change in value of derivative liability		(37,086	)		-
Stock issued and subscribed for services		127,493			477,894
Stock issued for compensation		477,866			67,577
Stock option compensation		80,522			80,522
Changes in operating assets and liabilities:
Other current assets		(47,028	)		50,000
Liabilities of discontinued operations, net		(93,172	)		(349,438	)
Accounts payable and accrued expenses		66,054			126,073
Net cash used in operating activities		(1,131,068	)		(1,407,834	)
Cash flows from investing activities
Purchases of property and equipment		(3,200	)		-
Net cash used in investing activities		(3,200	)		-
Cash flows from financing activities
Proceeds from sale of stock		383,254			1,269,001
Payments on related party notes payables		-			(20,725	)
Proceeds from notes payable		788,333			175,000
Payments on note payable		-			(5,000	)
Net cash provided by financing activities		1,171,587			1,418,276
Net change in cash		37,319			10,442
Cash, beginning of the year		16,313			5,871
Cash, end of the year	$	53,632		$	16,313
Supplemental disclosure of cash flow information:
Interest paid		-			28,850
Income taxes paid		-			-
Supplemental disclosure of non-cash investing and financing transactions:
Warrants issued for debt		53,285			160,000
Stock issued for debt		-			154,432
Recission of stock previously issued for debt		-			121,590

See accompanying notes to financial statements

25

LAS VEGAS RAILWAY EXPRESS, INC.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEARS ENDED MARCH 31, 2012 and 2011

(1)    Description of Business:

Las Vegas Railway Express, Inc.  (the “Company”, “we”, “us”, or “our”) was formed as a Delaware corporation in March 9, 2007 as Corporate Outfitters, Inc., a development stage company. On November 3, 2008, pursuant to a common stock purchase agreement, the Company acquired 100% of the outstanding capital stock of Liberty Capital Asset Management, a Nevada corporation, formed in July of 2008 as a holding company for all the assets of CD Banc LLC in contemplation of the company going public via a reverse merger into a publicly trading corporation.

CD Banc LLC was formed in 2003 as a Nevada limited liability corporation with the purpose of acquiring real estate assets and holding them for long-term appreciation.

The Company business plan is to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. On January 21, 2010, the Company completed a share exchange and asset purchase agreement with Las Vegas Railway Express, a Nevada Corporation, and subsequently changed its name from Liberty Capital Asset Management, Inc. to Las Vegas Railway Express, Inc.

(2)    Summary of Significant Accounting Policies:

Basis of Presentation:

The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.    

Restatement:

The accompanying financial statements as of March 31, 2012 and 2011 and for the year ended March 31, 2012have been restated to reflect a correction in the presentation of common stock subscribed related to the purchase of the train business, from a liability to stockholders’ equity.  The nature of this account is such that it will not be settled with cash or other assets, but rather it will be settled by issuance of a fixed number of the Company’s common stock.  Accordingly it should be classified in stockholders’ equity.

Additionally, the Company has determined that certain of the warrants outstanding had elements that qualified them as derivative liabilities instead of equity. And two of its notes payable also had embedded elements that required bifurcation and statement as derivative liabilities. Accordingly, it obtained a third party valuation of the warrants and embedded derivatives and reclassified them as derivative liabilities.

Additionally, the Company made corrections to the way it accounts for stock based compensation

Finally, the Company has determined that since goodwill is amortized for income taxes, but not for books, there exists a temporary difference in the carrying amount of this asset between book and tax. Furthermore, as it cannot be concluded that this difference can be absorbed by the Company’s net operating loss carryforward, it is necessary to record a deferred income tax liability.

The impact of the restatements described above is as follows.

26

As of March 31, 2012:
	As Previously
	Reported			Adjustments			Restated
Notes payable	$	788,333		$	(3,217	)	$	785,116
Derivative liability		-			170,499			170,499
Stock subscription payable		640,000			(640,000	)		-
Total current liabilities		2,570,292			(472,718	)		2,097,574
Deferred tax liability		-			42,343			42,343
Total liabilities		2,570,292			(430,375	)		2,139,917
Common stock subscribed		-			640,000			640,000
Additional paid in capital		9,995,692			(23,705	)		9,971,987
Retained earnings		(11,623,612	)		(185,920	)		(11,809,532	)
Total stockholders' deficit		(1,623,055	)		(430,375	)		(1,192,680	)
For the year ended March 31, 2012:
	As Previously
	Reported			Adjustments			Restated
Operating Expenses:
Compensation and payroll taxes	$	1,128,689		$	93,324		$	1,222,013
Selling, general and administrative		233,577			-			233,577
Professional fees		268,731			-			268,731
Depreciation expense		320			-			320
Total expenses		1,631,317			93,324			1,724,641
Loss from operations		(1,631,317	)		(93,324	)		(1,724,641	)
Other income (expense):
Change in derivative liability		-			37,086			37,086
Interest income (expense)		(207,792	)		(87,339	)		(295,131	)
Total other income (expense)		(207,792	)		(50,253	)		(258,045	)
Net loss from continuing operations before tax provision		(1,839,109	)		(143,577	)		(1,982,686	)
Provision for income taxes		-			42,343			42,343
Net loss from continuing operations		(1,839,109	)		(185,920	)		(2,025,029	)
Discontinued operations:
Income (loss) from discontinued operations, net of income tax		18,996						18,996
Net loss	$	(1,820,113	)	$	(185,920	)	$	(2,006,033	)
As of March 31, 2011:	As Previously
	Reported			Adjustments			Restated
Stock subscription payable	$	640,000		$	(640,000	)	$	-
Total liabilities		1,809,077			(640,000	)		1,169,077
Common stock subscribed		210,000			640,000			850,000
Total stockholders' deficit		(949,067	)		640,000			(309,067	)

27

Going Concern:

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has net losses of $2,006,033 and $1,791,983 for the years ended March 31, 2012 and 2011, respectively. Although a substantial portion of the Company’s cumulative net loss is attributable to discontinued operations, management believes that it will need additional equity or debt financing to be able to implement the business plan.  The Company has no operating revenues and is currently dependent on external debt financing and/or sale of equities to fund operations.  These matters raise substantial doubt about the Company’s ability to continue as a going concern.

Management is attempting to raise additional equity to sustain operations until it can market its services and achieves profitability.  The successful outcome of future activities cannot be determined at this time and there are no assurances that, if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Risks and Uncertainties:

The Company operates in an industry that is subject to intense competition and potential government regulations.  Significant changes in regulations and the ability of the Company to establish contracts with rail services providers could have a materially adverse impact on the Company’s operations.

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods.

Cash and Cash Equivalents:

The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents.

Property and Equipment:

Property and equipment are stated at cost, less accumulated depreciation.  Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, ranging from three to thirty years. Total depreciation expense related to property and equipment was $320 and $0 for the years ended March 31, 2012 and 2011, respectively. Maintenance and repairs are charged to operations when incurred.  Major betterments and renewals are capitalized.  Gains or losses are recognized upon sale or disposition of assets.

Intangible Assets:

Goodwill represents the excess of purchase price over tangible and intangible assets acquired, less liabilities assumed arising from the acquisition of the train business on November 23, 2009.  Goodwill is not amortized, but is reviewed for potential impairment on an annual basis at the reporting unit level.  On March 31, 2012, as required by the "Intangible - Goodwill and Other" topic of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”), the Company conducted an analysis of the goodwill on its single reporting unit using the Company’s market capitalization (based on Level 1 inputs). For the fiscal years ending March 31, 2012 and 2011, our assessment for impairment found that due to the continued progress toward the measurement goals of the business plan that there is no impairment of goodwill. The Company has no accumulated impairment losses on goodwill.

Basic and Diluted Loss Per Share:

In accordance with FASB ASC 260, “Earnings Per Share,” the basic loss per common share is computed by dividing the net loss available to common stockholders after reducing net income by preferred stock dividends, by the weighted average common shares outstanding during the period.  Diluted earnings per share reflect per share amounts that would have resulted if diluted potential common stock had been converted to common stock.  Common stock equivalents have not been included in the earnings per share computation for the years ended March 31, 2012 and 2011 as the amounts are anti-dilutive.  As of March 31, 2012 and 2011, the Company had 2,000,000 outstanding options which were excluded from the computation of net income per share because they are anti-dilutive.  As of March 31, 2012, the Company also had convertible debt that was convertible into 3,000,000 shares of common stock which was excluded from the computation.  As of March 31, 2012, the Company had 1,500,000 outstanding warrants which were also excluded from the computation because they were anti-dilutive.

28

Income Taxes:

The Company accounts for income taxes under FASB ASC 740 "Income Taxes."  Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  The deferred tax assets of the Company relate primarily to operating loss carryforwards for federal income tax purposes. A full valuation allowance for deferred tax assets has been provided because the Company believes it is not more likely than not that the deferred tax asset will be realized. Realization of deferred tax assets is dependent on the Company generating sufficient taxable income in future periods.

The Company’s goodwill is deductible for tax but not for book. This difference creates a deferred tax liability, which cannot be matched with the Company’s deferred tax asset. As a result, the Company cannot net it with its net operating loss carryforward and therefore records a deferred tax liability to reflect the future non-deductibility of its goodwill asset. The deferred tax liability at March 31, 2012 and 2011 was $42,343 and $0, respectively.

The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2012 and 2011, the Company has not established a liability for uncertain tax positions.

Stock-Based Compensation:

The Company issues stock, options and warrants as share-based compensation to employees and non-employees.

The Company accounts for its share-based compensation to employees in accordance FASB ASC 718.  Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. 

The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50 “Equity - Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The final fair value of the share-based payment transaction is determined at the performance completion date. For interim periods, the fair value is estimated and the percentage of completion is applied to that estimate to determine the cumulative expense recorded.

The Company values compensatory stock based on the market price on the measurement date. As described above, for employees this is the date of grant, and for non-employees, this is the date of service completion.

The Company values stock options and warrants that do not qualify as derivative instruments using the Black-Scholes option pricing model.  There were no warrants or options granted during the years ended March 31, 2012 or 2011 for which the Company used the Black-Scholes model.

Certain compensatory warrants qualify as derivative instruments and are valued using the binomial lattice method. See Note 7 below regarding accounting for derivative liabilities.

Fair Value of Financial Instruments:

The Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2012.  The amounts shown for notes payable approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value, in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

29

The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. These assumptions may have a significant effect on our estimates of fair value, and the use of different assumptions as well as changes in market conditions could have a material effect on our results of operations or financial condition.

New Accounting Pronouncements:

Issued

In December 2011, the FASB issued Account Standards Update (“ASU”) 2011-12, “Comprehensive Income - Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05,” to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this accounting standard update will become effective for the reporting period beginning January 1, 2012. The adoption of this guidance will not have a material impact on the Company’s financial position, results of operations or cash flows.

In December 2011, the FASB issued ASU 2011-10, “Derecognition of in Substance Real Estate—a Scope Clarification” to clarify that when a parent (reporting entity) ceases to have a controlling financial interest (as described in ASC subtopic 810-10, Consolidation) in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in subtopic 360-20, Property, Plant and Equipment, to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness. Under this new guidance, even if the reporting entity ceases to have a controlling financial interest under subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary’s operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt. This amendment is applicable to us prospectively for deconsolidation events occurring after June 15, 2012. The adoption of this accounting standard update will become effective for the reporting period beginning July 1, 2012. The adoption of this guidance will not have a material impact on the Company’s financial position, results of operations, or cash flows.

Other recent accounting pronouncements did not, or are not believed by management to, have a material impact on the Company's present or future financial statements

(4)    Property and Equipment:

Property and equipment consisted of the following as of March 31, 2012 and 2011,

	March 31,			March 31,
	2012			2011
Furniture and fixtures	$	112,413		$	112,413
Equipment		177,023			173,823
Leasehold improvements		63,250			63,250
Software		30,722			30,722
		383,408			380,208
Less: accumulated depreciation		(188,689	)		(188,369	)
Less: impairment of assets		(191,839	)		(191,839	)
	$	2,880		$	-

30

(5)    Notes payable:

A summary of notes payable is as follows:

	March 31,		March 31,
	2012		2011
Notes payable - discontinued operations
Secured promissory notes,  dated June 25, 2008, to two	$	126,005	$	126,005
investors, bearing interest at 10% per annum, payable
September 1, 2010.
Unsecured promissory notes payable dated October 1, 2009
bearing interest at 10% per annum, payable September 1, 2010		22,055		24,055
Notes included in liabilities from discontinued operations	$	148,060	$	150,060
Notes payable - current operations
Unsecured promissory note,  dated  April 4, 2011, to
an investor bearing interest at 8% per annum, payable on
April 4, 2012.	$	97,266	$	-
Secured promissory notes,  dated  May 17, 2011 through
May 17, 2012 to an investor bearing interest at 8% per annum,
payable on May 17, 2012.		12,850		-
Secured promissory note,  dated August 15, 2011, to an
investor, bearing interest at 10% per annum, payable
February 11, 2012.		100,000		-
Secured promissory note,  dated  September 30, 2011, to
an investor bearing interest at 10% per annum, payable on
March 28, 2012.		50,000		-
Secured promissory notes,  dated  October 8, 2011,
to three investors bearing interest at 10% per annum,
payable on April 10, 2012.		225,000		-
Secured promissory note,  dated  January 25, 2012, to
an investor bearing interest at 10% per annum, payable on
demand, convertible to common shares at $0.10 per share.		100,000		-
Secured promissory note,  dated  February 24, 2012, to an
investor bearing interest at 10% per annum, payable on
demand, convertible to common shares at $0.10 per share.		200,000		-
Total outstanding notes payable from continuing operations	$	785,116	$	-

The Company is in default on notes payable made to investors that are included in liabilities of discontinued operations.  As of March 31, 2012, there has been no demand made for repayment of the notes or accrued interest.

31

(6)    Commitments and Contingencies:

Operating Leases

The Company leases its facilities under a rental agreement that expires in January 31, 2013.  The rental agreement includes common area maintenance, property taxes and insurance.  It also provided eight months abatement of the base rent.

Future annual minimum payments under operating leases are as follows:

Years ending March 31,
2013	$	58,400
Total	$	58,400

Rental expense under operating leases for the years ended March 31, 2012 and 2011 was $51,522 and $59,234, respectively.

Litigation

In the ordinary course of business, the Company may be or has been involved in legal proceedings from time to time. As of the date of this annual report on Form 10-K, there have been no material changes to any legal proceedings relating to the Company which previously were not reported.

(7)  Derivative Instruments:

The Company has certain warrants and notes payable with elements that qualify as derivatives. The warrants have anti-dilution clauses that prevent calculation of the ultimate number of shares that may be issued upon exercise, and two of the notes payable had a variable conversion feature that similarly prevented the calculation of the number of shares into which they were convertible.

The derivative liability, as it relates to the different instruments, is shown in the following table.

	Year Ended March 31, 2012
				Conversion Feature
				of
	Warrants			Notes Payable		Total
Beginning balance, March 31, 2011	$	-		$	-	$	-
Additional issuances		171,877			35,708		207,585
Exercised/converted		-			-		-
Change in derivative liability		(37,086	)		-		(37,086	)
Ending balance, March 31, 2012	$	134,791		$	35,708	$	170,499

(8)  Equity:

The Company is authorized to issue 200,000,000 shares of common stock.   There were 48,653,530 and 39,201,498 shares of common stock outstanding as of March 31, 2012 and 2011, respectively.  The holders of common stock are entitled to one vote per share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election of directors.  The holders of common stock are entitled to any dividends that may be declared by the Board of Directors out of funds legally available subject to the prior rights of holders of any outstanding shares of preferred stock and any contractual restrictions we have against the payment of dividends on common stock. In the event of our liquidation or dissolution, holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock.  Holders of common stock have no preemptive or other subscription rights and no right to convert their common stock into any other securities.

During the year ended March 31, 2012, the Company issued, in a private placement, 3,785,023 shares of its common stock, for a total of $383,254.  During the year ended March 31, 2011, the Company issued 8,049,411 shares of common stock for a total of $1,269,001.

During the year ended March 31, 2012, the Company issued 982,741 shares of its common stock for consulting services totaling $127,493.  During the year ended March 31, 2011, the Company issued 2,388,416 shares of common stock for consulting services totaling $477,894.  The fair value of the consulting services was determined by the closing price of the stock on date of issuance.

During the year ended March 31, 2012, the Company issued 4,334,268 shares of its common stock as compensation for employees valued at $515,366.  During the year end March 31, 2011, the Company issued 454,615 shares of its common stock as compensation for employees valued at $67,577.  The fair value of the employee services was determined by the closing price of the stock on date of issuance or the employment agreement in force at the date of issuance.

32

During the year ended March 31, 2011, the Company issued 4,000,000 shares of its common stock as part of its Asset Purchase Agreement in the acquisition of railway assets.  Stock is issued upon the completion of certain agreements.  The remaining 16,000,000 shares are to be issued upon the completion of the agreements, which are deemed necessary for the continued operation of the Company’s proposed railway service.

(9)  Stock Option Plan:

The Company’s 2011 Stock Option Plan provides for the grant of 20,000,000 incentive or non-statutory stock options to purchase common stock. Employees, who share the responsibility for the management growth or protection of the business of the Company and certain Non-Employee (“Selected Persons”), are eligible to receive options which are approved by a committee of the Board of Directors.  These options vest over five years and are exercisable for a ten-year period from the date of the grant.

The Company has recorded employee shared based compensation of $558,388 and $148,099 for March 31, 2012 and 2011, respectively.  As of March 31, 2012 and 2011, the Company had 2,000,000 options outstanding.  The fair value for these options was estimated at the date of grant, November 1, 2008 using a Black-Scholes option pricing model with the following weighted-average assumptions for an estimated 2.5 year term; risk free rate of 3.5%; no dividend yield; volatility factors of the expected market price of the Company’s common stock of (51%), the market value of the Company’s stock on grant date was $0.45.

At March 31, 2012, the Company had approximately $80,522 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 2 years.  No options were exercised during the years ended March 31, 2012.  

A summary of the Company’s stock option activity follows:

	March 31, 2012				March 31, 2011
			Weighted				Weighted
			Average				Average
			Exercise				Exercise
	Options		Price		Options		Price
Outstanding - March 31, 2011		2,000,000	$	0.50		2,000,000	$	0.50
Granted		-		-		-		-
Exercised		-		-		-		-
Cancelled		-		-		-		-
Outstanding - March 31, 2012		2,000,000	$	0.50		2,000,000	$	0.50
Exercisable - end of year		1,600,000	$	0.50		1,200,000	$	0.50

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 (10)  Income Taxes:

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carry forwards.  The tax effects of significant items comprising the Company’s deferred taxes as of March 31, 2012 and 2011 are as follows.

	March 31,			March 31,
Deferred tax assets	2012			2011
Net operating loss carryforward	$	6,243,339		$	5,577,000
Stock option compensation		27,377			-
Warrants issued in connection with debt		18,117			-
Total deferred tax assets		(6,288,833	)		(5,577,000	)
Net deferred tax assets	$	-		$	-
Deferred tax liabilities
Goodwill	$	42,343		$	-
Net deferred tax liabilities	$	42,343		$	-

A reconciliation of the provision for income taxes with the expected income tax computed by applying the Federal statutory income tax rate to income before provision for income taxes for the years ended March 31, 2012 and 2011 are as follows.

	March 31,			March 31,
	2012			2011
Income tax benefit computed at the Federal statutory rate of 34%	$	(682,051	)	$	(487,000	)
Increase in valuation allowance		669,442			487,000
Other		12,609			-
Amortization of goodwill		42,343			-
Provision for income taxes	$	42,343		$	-

ASC 740 requires that the tax benefit of net operating losses carry forwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.”  Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carry forward period.  Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a 100% valuation allowance against the asset amounts.

Any uncertain tax positions would be related to tax years that remain open and subject to examination by the relevant tax authorities.  The Company has no liabilities related to uncertain tax positions or unrecognized benefits as of the year end March 31, 2012 or 2011.  The Company has not accrued for interest or penalties associated with unrecognized tax liabilities.

As of March 31, 2012, the Company had federal net operating loss carry forwards of approximately $18.3 million, which may be available to offset future taxable income for tax purposes.  These net operating loss carry forwards begin to expire in 2027 through 2032.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

(11)  Related-Party Transactions:

Michael A. Barron, our CEO and President, is a 100% owner and President of Allegheny Nevada Holdings Corporation, “Allegheny”.  The Company is indebted to Allegheny by a certain promissory note, dated January 6, 2009, of which Allegheny loaned the Company funds for working capital needs.  Said Agreement was amended on October 1, 2009 and a portion was converted to 1,564,719 shares of the Company’s common stock at $0.05 per share.  As of January 15, 2011, the amendment was rescinded, returning the shares to the Company and restoring the note balance.  No gain or loss was recognized in the amendment or rescission.  As of March 31, 2012 and 2011, the balance of the note was $89,186 and $107,563, respectively.

On November 23, 2009, the Company entered into an Asset Purchase Agreement with Las Vegas Railway Express, a Nevada Corporation, of which Allegheny is owner of 28.6% and Mr. Barron is a 28.6% owner, independent of Allegheny.  On January 21, 2010, by shareholder approval the Company acquired Las Vegas Railway Express for 20,000,000 shares of the Company’s stock, of which 4,000,000 has been issued on April 23, 2010.  The remaining 16,000,000 shares are to be issued upon the completion of certain agreements.  These agreements are deemed necessary for the continued operation of the Company’s proposed railway service.

As of March 31, 2012 and 2011, Allegheny Nevada Holdings had a beneficial ownership in the Company of 4.12% and 0%, respectively.

As of March 31, 2012 and 2011, Mr. Barron had accrued wages of $71,563 and $65,734, respectively.

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Dianne David Barron, our Company’s Manager of Station Development is the spouse of our Chief Executive Officer, Michael A. Barron.

Joseph Cosio-Barron, former President, Secretary and Director of the Company is a 100% owner of CBS Consultants “CBS”, a Nevada Corporation.  CBS had a 22.9% ownership of Las Vegas Railway Express at the time of acquisition on October 1, 2009, the Company entered into a promissory note with Mr. Cosio-Barron for $86,709.  The Company converted 867,085 shares of the Company’s stock at $0.05 per share, resulting in a balance at March 31, 2012 and 2011 of  $46,102 and $57,198, respectively.   As of March 31, 2012 and 2011, Mr. Cosio-Barron had accrued wages of $57,800 and $51,971, respectively.

(12)  Discontinued Operations:

As discussed in Note 1, prior to January 21, 2010, the Company had been actively engaged in acquiring underperforming mortgage loan portfolios and generating revenues from re-performing, sale of loans and fee revenue.  As of January 21, 2010, the Company changed its primary business and abandoned the prior business. Accordingly, the assets and liabilities and results of operation related to this business have been classified as discontinued operations in the financial statements for all periods presented. As a result, the prior period comparative financial statements have been restated. Prior to this decision, the loan business represented substantially all of the Company’s operating revenue.

Prior to the Company’s corporate restructuring in 2010, the Company had several accounts payable dating back to 2008 and prior (the “Liberty Capital Payables”). All of these Liberty Capital Payables were related to business operations which were discontinued in January 2010. In 2012, the Company updated its internal review of the status of the Liberty Capital Payables and recorded a $47,330 gain resulting from relief of liabilities that were cleared based on expiration of Nevada statutes of limitations. The gain is reflected as a gain from discontinued operations. There was no tax impact as the prior tax assets had a 100% valuation allowance resulting in no balance sheet or income statement adjustments for taxes.

The following table summarizes results from discontinued operations for the years ended March 31, 2012 and 2011:

	Year Ended
	March 31,			March 31,
	2012			2011
Revenues	$	4,315		$	52,506
Cost of sales		-			-
Gross profit		4,315			52,506
Operating Expenses:
Selling, general and administrative		-			4,528
Total expenses		-			4,528
Loss from discontinued operations		4,315			47,978
Other (expense) income
Interest expense		(32,649	)		(31,831	)
Write down of payables		47,330			-
Total other (expense) income		14,681			(31,831	)
Net income from discontinued operations	$	18,996		$	16,147

The following table summarizes the liabilities classified as discontinued operations in the accompanying balance sheets.

	March 31,		March 31,
	2012		2011
Accounts payable and accrued expenses	$	622,603	$	684,302
Notes payable		148,060		150,060
Notes payable, related party		135,287		164,760
	$	905,950	$	999,122

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through July 9, 2012.

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(13)  Subsequent Event

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through July 9, 2012.

On April 11, 2012 the Company entered into Promissory Note Conversion Agreement with Jameson Capital LLC pursuant to which a promissory note with accrued interest in the total amount of $15,602.85 was converted to restricted common stock at the price of $0.05 per share totaling 312,057 shares.

On April 24, 2012 the Company issued 400,000 shares of common stock for Directors’ compensation.

On April 30, 2012 the Company entered into a Promissory Note Conversion Agreement with American Pension Services, Inc. Administrator for Gilbert H. Lamphere pursuant to which two promissory notes, in the total value of $300,000 were converted to restricted common stock at the price of $0.10 per share totaling 3,000,000 shares.

On April 30, 2012 the Company entered into a Promissory Note Conversion Agreement with Gilbert H. Lamphere pursuant to which two promissory notes, in the total value of $150,000, were converted to restricted common stock at the price of $0.10 per share totaling 1,500,000 shares.

On May 22, 2012 the Company issued 500,000 shares of Common Stock for Directors’ compensation and 1,000,000 shares were issued pursuant to an employment agreement.

On May 31, 2012 the Company issued 4,996,716 shares of common stock by Promissory Note Conversion Agreements with three entities and converting these notes and accrued interest at the price of $0.05 per share.

On June 4, 2012 the Company issued 600,000 shares of common stock for debt of $30,000.

On April 27, 2012 the Company commenced a private offering under a Private Placement Memorandum under Regulation D of the Securities Act of 1933 of up to aggregate number of 30,000,000 shares of common stock at the price of $0.05 totaling up to $1,500,000 worth of common stock.  As of June 22, 2012 the Company issued 22,400,000 shares of common stock for an aggregate purchase price of $1,120,000.

Item 9.  Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

On December 10, 2012, Hamilton, PC (“Hamilton”) was dismissed as the Company’s independent registered public accounting firm. Hamilton’s dismissal was approved by the Company’s board of directors. Hamilton’s audit reports on the Company’s financial statements for the fiscal years ended March 31, 2012 and 2011 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that, the audit reports included an explanatory paragraph with respect to the uncertainty as to the Company’s ability to continue as a going concern. During the years ended March 31, 2012 and 2011 and during the subsequent interim period preceding the date of Hamilton’s dismissal, there were (i) no disagreements with Hamilton on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, and (ii) no reportable events (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).

On December 10, 2012, the Company engaged BDO USA, LLP (“BDO”) to serve as its independent registered public accounting firm. During the years ended March 31, 2012 and 2011 and during the subsequent interim period preceding the date of BDO’s engagement, the Company did not consult with BDO regarding the application of accounting principles to a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on the Company’s financial statements. The decision to engage BDO was approved by the Company’s board of directors.

Item 9A.  Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended ( the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Disclosure Controls.  In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Evaluation of Disclosure Controls and Procedures.  As of March 31, 2012, the end of the fiscal year covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer (“CEO”) and our chief financial officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our CEO and CFO concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were not operating effectively as of March 31, 2012. Our disclosure controls and procedures were not effective because of the “material weakness” described below under “Management’s Annual Report on Internal Control over Financial Reporting”.

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Management’s Annual Report on Internal Control over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our management, with the participation of the CEO and CFO, evaluated the effectiveness of the Company’s internal control over financial reporting as of March 31, 2012. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework. Based on this evaluation, our management, concluded that, there was a material weakness in the design and operating effectiveness of certain accounting and financial reporting processes, as described more fully below. Due to this material weakness management concluded that the Company’s internal control over financial reporting was not effective as of March 31, 2012.

A "material weakness" is defined as a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. A “significant deficiency” is defined as a control deficiency, or combination of control deficiencies, that adversely affects the Company’s ability to initiate, authorize, record, process, or report external financial information reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected.

Material Weakness in Accounting and Financial Reporting.

The Company did not maintain effective control over its annual financial statement reporting process which resulted in a restatement of the 2012 and 2011 financial statements. This restatement was a direct result of inadequate technical accounting review of transactions due to our inability to staff our accounting department with experienced US GAAP and SEC reporting personnel. A material weakness in financial reporting impacts the Company’s ability to timely report financial information in conformity with U.S. generally accepted accounting principles (“GAAP”), which could affect all significant financial statement accounts and disclosures.  To remediate this material weakness in internal control over financial reporting, we have engaged a consultant with US GAAP and SEC reporting expertise to review our accounting prior to the issuance of financial statements.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permits us to provide only management’s report in this annual report.

Changes in Internal Control over Financial Reporting. During the fourth quarter of the year ended March 31, 2012, the Company discovered the material weakness in internal control over financial reporting disclosed above which materially affected our internal control over financial reporting.

Item 9B.  Other Information

None.

PART III

Item 10.  Directors, Executive Officers and Corporate Goverance

Directors and Executive Officers

The following table sets forth information regarding our executive officers and directors:

Name	Age	Office
Gilbert H. Lamphere	60	Chairman of the Board of Directors
Michael A. Barron	61	Chief Executive Officer, President and Director
Wanda Witoslawski	47	Chief Financial Officer, Secretary and Treasurer
John D. McPherson	65	Director
John H. Marino	73	Director
Thomas Mulligan	61	Director

Directors hold office for a period of one year from their election at the annual meeting of stockholders and until their successors is duly elected and qualified. Officers are elected by, and serve at the discretion of, the Board of Directors. None of the above individuals has any family relationship with any other.

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Set forth below is a brief description of the background and business experience of each of our executive officers and directors.

Gilbert H. Lamphere – Chairman, 60

Mr. Lamphere has served as our Chairman since October 1, 2011. Mr. Lamphere serves on the Board of Directors of CSX Corporation and has served on the board of Canadian National Railway, Chaired the Board of the Illinois Central Railroad and served on the board of Florida East Coast Railway (350 miles down East Coast of Florida).  He was also instrumental in the investment and oversight of Mid-South Rail.  Mid-South, Illinois Central and Canadian National became successively the most efficient railroads with the lowest operating ratios in North America. He is the Managing Director of Lamphere Capital Management, a private investment firm which he founded in 1999 and Chairman of FlatWorld Acquisition Corp., a publicly traded private equity company. He has served as a director of numerous other public companies, including Carlyle Industries, Inc., Cleveland-Cliffs, Inc., R.P. Scherer Corporation, Global Natural Resources Corporation and Recognition International, Inc. Earlier in his career, Mr. Lamphere was Vice President of Mergers and Acquisitions at Morgan Stanley. Mr. Lamphere’s railroad industry knowledge and experience qualify him to serve on our board of directors.

Michael A. Barron – President and Chief Executive Officer, 61

Mr. Barron has been a developer of new business enterprises for nearly 30 years. Mr. Barron began his career in 1971 where he was the Senior Planner for the City of Monterey and was the HUD liaison for the City’s downtown redevelopment project. He master planned the city’s redevelopment of famous Cannery Row, Fisherman’s Wharf, and was Secretary of the Architectural Review Committee. Mr. Barron was the founder of Citidata, the first electronic provider of computerized real estate multiple listing service (MLS) information in the nation from 1975 to 1979. Citidata became the nation’s largest provider of electronic real estate information and was sold to Moore Industries in 1979. In June 1979, TRW hired Mr. Barron to develop its real estate information services division (TRW/REIS) that acquired 11 companies in the field and eventually became the world’s largest repository of real estate property information - Experian. In November 1988, he founded and served as President, until 1992, of Finet Holdings Corporation (NASDAQ:FNCM), a publicly traded mortgage broker and banking business specializing in e-mortgage financing on site in real estate offices and remote loan origination via the Internet (www.finet.com). The company was publicly traded and maintained a market capitalization of $500 million. From March 1995-1998, Mr. Barron pioneered the first nationwide commercially deployed video conference mortgage financing platform for Intel Corporation which as a licensed mortgage banker and broker in 20 states funded over $1 billion in closed loans. He later went on to serve as CEO for Shearson Home Loans and founded Liberty Capital, a $100 million asset management company based in Las Vegas, Nevada. Mr. Barron holds a B.S. degree from California Polytechnic University. Michael A. Barron has served as Director on Las Vegas Railway Express’ Board of Directors since inception. Mr. Barron’s experience as our president and chief executive officer quality him to serve on our board of directors.

Wanda Witoslawski - Chief Financial Officer, 47

Prior to joining the Company, Ms. Witoslawski was Controller for Ocean West Enterprises 1999-2005 and managed the mortgage banking function of that California mortgage bank.  Her duties included accounting responsibility for over 200 branch offices, management of a $100 million mortgage bank warehouse line, payroll, general ledger and corporate accounting for SEC filings of the publicly traded company.  Upon acquisition of Ocean West by Shearson Home Loans in 2005, she became Controller of publicly traded Shearson conducting the accounting operation for a staff of 1,350 employees including payroll, branch accounting and credit line management for over $200 million in warehouse banking credit.  She assisted the CEO and President in the acquisition of five mortgage companies and development of a 250 office branch system with funding in excess of $1 billion per year, controlled the expense accounting & managed Shearson’s eighteen consecutive quarters of profitability.  Upon Shearson’s exit from mortgage banking in 2007, she joined the principals Mr. Barron and Mr. Cosio-Barron as Controller at Liberty Capital Asset Management, an investor in acquiring defaulted mortgage pools, managing public accounting documents for SEC filings and the financial supervision over the liquidation of over 4,000 mortgage loans the company had acquired.  She has a Master’s Degree in Economics from the University of Gdansk, Poland, a diploma in Marketing from Kensington College of Business, London, England and a diploma in professional accounting from Learning Tree University, Irvine, CA. Ms. Witoslawski is fluent in English, Polish and Russian.

John D. McPherson – Director, 65

Mr. McPherson has served as a director of the Company since January 15, 2012. Mr. McPherson joined the Board of Directors of CSX Corporation in July 2008. He served as President and COO of Florida East Coast Railway, a wholly-owned subsidiary of Florida East Coast Industries, Inc., from 1999 until his retirement in 2007. From 1993-1998, Mr. McPherson served as Senior Vice President - Operations, and from 1998-1999, he served as President and CEO of the Illinois Central Railroad. Illinois Central became the most efficient railroad with the lowest operating ratio in North America. Prior to joining the Illinois Central Railroad, Mr. McPherson served in various capacities at Santa Fe Railroad for 25 years. As a result of his extensive career in the rail industry, Mr. McPherson serves as an expert in railroad operations. From 1997-2007, Mr. McPherson served as a member of the board of directors of TTX Company, a railcar provider and freight car management services joint venture of North American railroads. Mr. McPherson’s railroad industry knowledge and experience qualifies him to serve on the Company’s board of directors.

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John H. Marino, Director, 73

Mr. Marino has served as a director of the Company since January 15, 2012. Mr. Marino has recently joined the company as Vice President – Rail Operations where he supervises the Company’s activities with the Class 1 railroads, Amtrak, railcar procurement, and railset maintenance. Mr. Marino also serves as President of Transportation Management Services, Inc., a position he has held since 1983. From April 1992 until July 1996, he served as President and Chief Operating Officer of Rail America NYSE:RA, a publicly traded company and the largest short line railroad company in America. Mr. Marino co-founded Huron & Eastern Railway Company, Inc., a subsidiary of Rail America, and from 1986 until April 1996, served as its President and one of its directors. Mr. Marino also served as the President of Huron Transportation Group from its formation in January 1987 until its merger with Rail America Services Corporation in December 1993. He has served as President and Chief Executive Officer of several short line railroads, as an officer of the Reading Railroad and with the United States Railway Association, Washington, D.C. Mr. Marino received his B.S. degree in civil engineering from Princeton University in 1961 and his M.S. degree in transportation engineering from Purdue University in 1963. From 1963 to 1968, he served as an officer with the United States Army Corps of Engineers. Mr. Marino’s railroad industry knowledge and experience qualify him to serve on the Company’s board of directors.

Thomas Mulligan –Director, 61

Mr. Mulligan was an Operations Executive at Union Pacific with more than 38 years of experience where he was the Director of Passenger Rail Operations.  He has experience in management, transportation, dispatching, budgeting and operations administration at the division, district and corporate level.  Many of his responsibilities included rules compliance, contract negotiations, budget control, expense control, strategic planning and has been the corporate liaison for freight and passenger rail operations.  Tom has an excellent record for identifying opportunities for improving operations, cost control and raising customer satisfaction.  Mr. Mulligan was a member on the Railroad Safety Advisory Committee for the Federal Railroad Administration and was formally assigned by Governor Mike Johanns to serve on the Nebraska Transit and Rail Advisory Council from 2004 to 2006.  This committee completed the current rail Corridor Transit Study that is used by the Nebraska State Legislature for commuter rail solutions in Eastern Nebraska.*   He is a current member on the Board of Directors of the Omaha YMCA – Bulter Gast branch and served from 1994 to 1999 as a Trustee on Special Improvement District Board #236 (Candlewood).  He currently serves as a Council member for the City of Omaha and was elected as Director for the Board of Directors of LVRE, Inc. on May 8, 2012.Mr. Mulligan’s railroad industry knowledge and experience qualify him to serve on the Company’s board of directors.

Code of Ethics

The Company has not yet adopted a Code of Ethics that applies to the Company’s principal executive officer, principal financial officer and principal accounting officer, but expects to in the near future.

Section 16(a) Beneficial Ownership Compliance

Our officers, directors and shareholders owning greater than ten percent (10%) of our shares are required to file beneficial ownership reports pursuant to Section 16(a) of the Securities and Exchange Act (the “Exchange Act”). To the Company’s knowledge, all such reporting obligations were complied with during the year ended March 31, 2012, except that, Form 3’s for Mr. John McPherson, Mr. Joseph Cosio-Barron, and Mr. Michael A. Barron were filed late.

Committees of the Board

The Boardof Directors is in the process of forming two committees: audit and compensation committee. The Company does not have an audit committee financial expert, because of the small size and early stage of the Company

Nominating Committee

We do not have a separately designated nominating committee because the board makes all decisions regarding director nominations.

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Involvement in Certain Legal Proceedings

Except as set forth below, to our knowledge, during the last ten years, none of our directors and executive officers have:

· Had a bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

· Been convicted in a criminal proceeding or been subject to a pending criminal proceeding, excluding traffic violations and other minor offenses.

· Been subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities.

· Been found by a court of competent jurisdiction (in a civil action), the SEC, or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

· Been the subject to, or a party to, any sanction or order, not subsequently reverse, suspended or vacated, of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.  

Shearson Financial Network, a mortgage company,filed for Chapter 11 bankruptcy protection in 2008. Michael A. Barron was CEO of the company at the time.

Indemnification of Directors and Officers

Section 145 of the Delaware General Corporation Law permits a corporation to indemnify its directors and officers against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with a pending or completed action, suit or proceeding if the officer or director acted in good faith and in a manner the officer or director reasonably believed to be in the best interests of the corporation.

Our certificate of incorporation provides that, except in certain specified instances, our directors shall not be personally liable to us or our stockholders for monetary damages for breach of their fiduciary duty as directors, except for the following:

● any breach of their duty of loyalty to our company or our stockholders;

● acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;

● unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; and

● any transaction from which the director derived an improper personal benefit.

In addition, our certificate of incorporation and bylaws obligate us to indemnify our directors and officers against expenses and other amounts reasonably incurred in connection with any proceeding arising from the fact that such person is or was an agent of ours. Our bylaws also authorize us to purchase and maintain insurance on behalf of any of our directors or officers against any liability asserted against that person in that capacity, whether or not we would have the power to indemnify that person under the provisions of the Delaware General Corporation Law. We expect to continue to enter into agreements to indemnify our directors and officers as determined by our Board of Directors. These agreements provide for indemnification of related expenses including attorneys' fees, judgments, fines, and settlement amounts incurred by any of these individuals in any action or proceeding. We believe that these bylaw provisions and indemnification agreements are necessary to attract any retain qualified persons as directors and officers.

The limitation of liability and indemnification provisions in our certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions. At present, there is no pending litigation or proceeding involving any of our directors, officers or employees regarding, which indemnification is sought, and we are not aware of any threatened litigation that may result in claims for indemnification.

Insofar as the provisions of our certificate of incorporation or bylaws provide for indemnification of directors or officers for liabilities arising under the Securities Act of 1933, as amended, or the Securities Act, we have been informed that in the opinion of the Commission this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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Family Relationships

There are no family relationships between any of our directors or executive officers and any other directors or executive officers.

Item 11.  Executive Compensation.

SUMMARY COMPENSATION TABLE

Annual Compensation

Name and Principal Position	Year	Salary		Bonus		Other		Long-term Compensation Shares Granted		All Other Compensation		Total
Michael A. Barron,	2012	$	180,000	$	-	$	-		-	$	12,000	$	192,000
CEO, President	2011	$	180,000		-		-		-		12,000	$	192,000
and Director					-		-
Wanda Witoslawski	2012	$	120,000		-		-		-	$	6,000	$	126,000
(appointed CFO on May 19, 2011)	2011	$	67,000		-		-		3,000,000		-	$	67,000
			-		-		-		-		-		-

Employment Agreements

Our employment agreement with Michael Barron requires him to perform the duties of Chief Executive Officer at an annual salary of $180,000.00.  Base salary will be increased to $300,000.00 based upon receipt of significant corporate or public funding.  In addition, Mr. Barron is entitled to receive an incentive or performance bonus as follows:  1) Upon the company’s execution of a definitive agreement with AMTRAK, Executive shall be granted 1,000,000 shares, 2) Upon the company’s execution of a definitive agreement with BNSF, Executive shall be granted 500,000 shares, 3) Upon the company’s execution of a definitive agreement with Union Pacific, Executive shall be granted 500,000 shares, 4) Upon the company’s execution of a definitive agreement with a rail car provider, Executive shall be granted 500,000 shares, 5) Upon the company’s completion of its operation of its first train between Los Angeles and Las Vegas, Executive shall be granted 1,500,000 shares.  He is also entitled to a car allowance of $1,000 per month.  His employment agreement provides that if we terminate him without cause, he is entitled to receive a lump sum payment equal to twice his annual salary plus the present value of a performance bonus computed on the basis that we achieve all of LVRE’s performance targets.  Mr. Barron’s employment agreement commenced as of February 1, 2012.

Our employment agreement with Wanda Witoslawski requires her to perform the duties of Chief Financial Officer and Treasurer of the Company for the duration of the employment agreement.  During the term of this Agreement, the Company agrees to pay Executive a base salary at the rate of $120,000.00 per year.  Base salary will be increased to $200,000.00 per year based only upon receipt of significant corporate or public funding.  Additionally, a total of 1 million shares per year will be vested quarterly, in arrears, for a total period of 3 years for a total of 3 million shares.  In addition, Mrs. Witoslawski is entitled to receive an incentive or performance bonus as follows:  1) Upon the company‘s execution of a definitive agreement with AMTRAK, Executive shall be granted 500,000 shares, 2) Upon the company’s execution of a definitive agreement with BNSF, Executive shall be granted 250,000 shares, 3) Upon the company’s execution of a definitive agreement with Union Pacific, Executive shall be granted 250,000 shares, 4) Upon the company’s execution of a definitive agreement with a rail car provider, Executive shall be granted 250,000 shares, 5) Upon the company’s completion of its operation of its first train between Los Angeles and Las Vegas, Executive shall be granted 750,000 shares.  She is also entitled to a car allowance of $500 per month.  Her employment agreement provides that if we terminate her without cause, she is entitled to receive a lump sum payment equal to twice her annual salary plus the present value of a performance bonus computed on the basis that we achieve all of our performance targets.  Mrs. Witoslawski’s employment agreement commenced as of February 1, 2012.

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Director Compensation for Year Ended March 31, 2012

The following table sets forth director compensation for the year ended March 31, 2012 (excluding compensation to our executive officers set forth in the summary compensation table above).

Name (a)	Fees Earned or Paid in Cash ($) (b)		Stock Awards ($) (c)		Total ($) (h)
Gilbert H. Lamphere		6,000		12,000		18,000
John D. McPherson		3,000		50,000		53,000
John H. Marino		3,000		50,000		53,000
Thomas Mulligan		0		0		0

We currently compensate our directors for being a Board member the equivalent of an initial 500,000 shares of common stock plus $12,000 annual fee for each member.

Outstanding Equity Awards at 2012 Fiscal Year-End

The following table sets forth outstanding equity awards to our named executive officers as of March 31, 2012:

OPTION AWARDS											STOCK AWARDS
Name (a)	Number of Securities Underlying Unexercised Options (#) Exercisable (b)		Number of Securities Underlying Unexercised Options (#) Unexercisable (c)		Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) (d)		Option Exercise Price ($) (e)		Option Expiration Date (f)		Number of Shares or Units of Stock That Have Not Vested (#) (g)		Market Value of Shares or Units of Stock That Have Not Vested ($) (h)		Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (i)		Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#) (j)
Michael A. Barron		1,000,000		-		-	$	0.50		10/31/13		-		-		-		-
Joseph Cosio-Barron		1,000,000		-		-	$	0.50		10/31/13		-		-		-		-

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Stock Option Plan

Our Board of Directors has adopted a stock option plan and reserved an aggregate of 20,000,000 shares of common stock for grants of restricted stock and stock options under the plan.  The purpose of the plan is to enhance the long-term stockholder value of the Company by offering opportunities to officers, directors, employees and consultants of the Company to participate in our growth and success and to encourage them to remain in the service of the Company and acquire and maintain stock ownership in the Company.

The plan is currently administered by our Board of Directors, which has the authority to select individuals who are to receive grants under the plan and to specify the terms and conditions of each restricted stock grant and each option to be granted, the vesting provisions, the option term and the exercise price.  Unless otherwise provided by the Board of Directors, an option granted under the plan expires 10 years from the date of grant (5 years in the case of an incentive option granted to a holder of 10% or more of the shares of the Company’s outstanding common stock) or, if earlier, three months after the optionee’s termination of employment or service.  Options granted under the plan are not generally transferable by the optionee except by will or the laws of descent and distribution and generally are exercisable during the lifetime of the optionee only by such optionee.  The plan is subject to the approval of the stockholders within 12 months after the date of its adoption.

The plan will remain in effect for 10 years after the date of its adoption by our Board of Directors.  The plan may be amended by the Board of Directors without the consent of the “Company’s stockholders, except that any amendment, although effective when made, will be subject to stockholder approval if required by any Federal or state law or regulation or by the rules of any stock exchange or any automated quotation system on which the Company’s common stock may then be listed or quoted.  The number of shares received under the plan and the number of shares subject to outstanding options are subject to adjustment in the event of stock splits, stock dividends and other extraordinary corporate events.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth certain information regarding the beneficial ownership of the Company’s Common Stock as of March 31, 2012 by (a) each of the Company's directors and executive officers, (b) all of the Company's directors and executive officers as a group and (c) each person known by the Company to be the beneficial owner of more than five percent of its outstanding common stock.

Name and Address of Beneficial Owner (1)	Number of Shares Beneficially Owned (2)		% of Common Stock Beneficially Owned (3)
Gilbert H. Lamphere, Chairman (5)		100,000		0.21	%
Allegheny Nevada Holdings Corporation (6)		1,98,866		4.07	%
Michael A. Barron, CEO and President (1)		2,642,857		5.43	%
JMW Fund LLC (4)		2,584,477		5.38	%
John D. McPherson, Director		600,000		1.23	%
John Marino, Director		1,000,000		2.06	%
Wanda Witoslawski, CFO, Secretary and Treasurer		1,000,000		2.06	%
Officers and Directors as a group		5,342,857		10.99	%

(1)	The address of each of the beneficial owners is 6650 Via Austi Parkway, Suite 170, Las Vegas Nevada 89119, except as indicated.
(2)	In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options held by that person that are currently exercisable, or become exercisable within 60 days are deemed outstanding. However, such shares are not deemed outstanding for purposes of computing the percentage ownership of any other person.
(3)	Based on 48,653,530 shares outstanding as of March 31, 2012.
(4)	The address is 4 Richland Place, Pasadena, CA  91103
(5)	The address is 220 East 42nd St., 29th Floor, New York, NY 10017
(6)	The address is 6650 Via Austi Parkway Suite 170 Las Vegas, Nevada 89119

Item 13.  Certain Relationships and Related Transactions and Director Independence

Four of our directors are independent directors, using the NASDAQ definition of independence.

Certain officers and directors have a beneficial ownership and are officers and directors companies which are or have been parties to financial transactions. We may be subject to various conflicts of interest in our relationship with Mr. Barron and Mr. Cosio-Barron and their other business enterprises. The following is a description of transactions and relationships between us, our executive officers and our directors and each of their affiliates.

Michael A. Barron, our CEO and President, is a 100% owner and President of Allegheny Nevada Holdings Corporation, “Allegheny”.  The Company is indebted to Allegheny by a certain promissory note, dated January 6, 2009, of which Allegheny loaned the Company funds for working capital needs.  Said Agreement was amended on October 1, 2009 and a portion was converted to 1,564,719 shares of the Company’s common stock at $0.05 per share.  As of March 31, 2012 and 2011, the balance of the note was $89,186 and $107,562.62, respectively.

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On November 23, 2009, the Company entered into an Asset Purchase Agreement with Las Vegas Railway Express, a Nevada Corporation, of which Allegheny is owner of 28.6% and Mr. Barron is a 28.6% owner, independent of Allegheny.  On January 21, 2010, by shareholder approval the Company acquired Las Vegas Railway Express for 20,000,000 shares of the Company’s stock, of which 4,000,000 has been issued on April 23, 2010.  The remaining shares, 16,000,000 are to be issued upon the completion of certain milestone operating agreements, by and between the Company.  These agreements are deemed necessary for the continued operation of the Company’s proposed railway service.  As of March 31, 2012, Allegheny Nevada Holdings has a 4.07% beneficial ownership in the Company.

As of March 31, 2012 and 2011, Mr. Barron had accrued wages of $71,563 and $65,734, respectively.

Joseph Cosio-Barron, former President, Secretary and Director of the Company is a 100% owner of CBS Consultants “CBS”, a Nevada Corporation.  CBS had a 22.9% ownership of Las Vegas Railway Express at the time of acquisition on October 1, 2009, the Company entered into a promissory note with Mr. Cosio-Barron for $86,709.  The Company converted 867,085 shares of the Company’s stock at $0.05 per share, resulting in a balance at March 31, 2012 and 2011 of  $46,102 and $57,198, respectively.   As of March 31, 2012 and 2011, Mr. Cosio-Barron had accrued wages of $57,800 and $51,971, respectively.

Item 14.  Principal Accountant Fees and Services

In accordance with the SEC’s definitions and rules, “audit fees” are fees for professional services for the audit and review of our annual financial statements, and can include fees for the audit and review of our annual financial statements included in a registration statement filed under the Securities Act as well as issuance of consents and for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements except those not required by statute or regulation.  ”Audit-related fees” are fees for assurance and related services that were reasonably related to the performance of the audit or review of our financial statements, including attestation services that are not required by statute or regulation, due diligence and services related to acquisitions.  “Tax fees” are fees for tax compliance, tax advice and tax planning, and “all other fees” are fees for any services not included in the first three categories.  The fees reported for 2012 only include fees paid to BDO, our current auditor and for 2011 to Hamilton, our predecessor auditor.

Audit Fees

The aggregate fees billed by the Company's auditors for the professional services rendered in connection with the audit of the Company's annual financial statements, and reviews of the financial statements included in the Company's Forms 10-Qs for fiscal 2012 and 2011 were approximately $57,645 and $81,000, respectively.

Audit Related Fees

There were no audit related fees for the fiscal years ended March 31, 2012 and 2011.

Tax Fees

There were no fees for the fiscal years ended March 31, 2012 and 2011 for professional services rendered for tax compliance, tax advice and tax planning.

All Other Fees

None

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PART IV

Item 15. Exhibits and Financial Statement Schedules.

(1)	Financial Statements: The following financial statements are included in Item 8 of this report:
	●	Balance Sheets as of March 31, 2012 and 2011.
	●	Statements of Operations for the fiscal years ended March 31, 2012 and 2011.
	●	Statements of Cash Flows for the fiscal years ended March 31, 2012 and 2011.
	●	Statement of Stockholders’ Equity (Deficit) for the fiscal years ended March 31, 2012 and 2011.
	●	Notes to Consolidated Financial Statements.
	●	Reports of Independent Registered Public Accounting Firms.

(3)  Exhibits:

Exhibit No.	Description
3.2	Articles of Incorporation (incorporated herein by reference to Form SB-2, filed on July 31, 2007.)
3.3	By-Laws of the Registrant (incorporated herein by reference to Form SB-2, filed on July 31, 2007.)
3.4A	Amended By-Laws of the Registrant dated November 3, 2008 (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
3.4B	Amended Articles of Incorporation (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
3.5	Amended Articles of Incorporation as dated March 19, 2010 (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
3.6	Certificate of Merger, as dated March 19, 2010, by and between Liberty Capital Asset Management, Inc. and Las Vegas Railway Express (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
3.7	Amended Articles of Incorporation as dated April 19, 2010 (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
3.8	Amended By-Laws of the Registrant (incorporated herein as referenced on Form 10-K, as filed on June 30, 2010.)
10.1	Advisory Agreement, by and between E/W Capital and Las Vegas Railway Express, Inc., dated July 1, 2010 (incorporated herein as referenced to Exhibit 12 on Form 8-K, as filed July 8, 2010)
10.2	Employment Agreement with Michael A. Barron, dated February 1, 2012
10.3	Employment Agreement with Wanda Witoslawski, dated February 1, 2012
10.4	Memorandum of Understanding with T-UPR (The Plaza Hotel & Casino), dated May 1, 2012.
10.5	Union Pacific Railroad Company Public Project Reimbursement Agreement, dated December 1, 2010.
10.6	Memorandum of Understanding with National Railroad Passenger Corporation, dated January 13, 2011.
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101 INS	XBRL Instance Document**
101 SCH	XBRL Schema Document**
101 CAL	XBRL Calculation Linkbase Document**
101 LAB	XBRL Labels Linkbase Document**
101 PRE	XBRL Presentation Linkbase Document**
101 DEF	XBRL Definition Linkbase Document**

** The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

By :/s/ Michael A. Barron	June 10, 2013
Chief Executive Officer
(Principal Executive)
By: /s/Wanda Witoslawski	June 10, 2013
Chief Financial Officer
(Principal Financial and Accounting Officer)

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on June 28, 2012.

LAS VEGAS RAILWAY EXPRESS, INC.
By:	/s/Michael A. Barron
	Michael A. Barron, Chief Executive Officer       Principal Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated:

Name	Title	Date
/s/Michael A. Barron	Chief Executive Officer, Director	June 10, 2013
Michael A. Barron
/s/Wanda Witoslawski	Chief Financial Officer	June 10, 2013
Wanda Witoslawski
/s/John D. McPherson	Chairman	June 10, 2013
John D. McPherson
/s/John H. Marino	Director	June 10, 2013
John H. Marino
/s/Gilbert H. Lamphere	Director	June 10, 2013
Gilbert H. Lamphere
/s/Thomas Mulligan	Director	June 10, 2013
Thomas Mulligan
/s/ John O’Connor	Director	June 10, 2013
John O'Connor
/s/ George Rebensdorf	Director	June 10, 2013
George Rebensdorf

EX-10.2

Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of February 1, 2012 by and between Las Vegas Railway Express, Inc. aDelaware Corporation (the "Company") and Michael A. Barron ("Executive").

WITNESSETH:

WHEREAS, the Company and Executive desire to enter into this Agreement to assure the Company of the continuing and exclusive service of Executive and to set forth the terms and conditions ofExecutive's employment with the Company.

WHEREAS, Executive and the Company have agreed thatto fill this critical executive position the Company and Executive must agree upon the amended terms and conditions set forth herein. The Company's Board further believes that it must provide the Executive with certain enhanced severance benefits upon Executive's termination of employment and to provide to the Executive, through enhanced financial security, incentive to continue providing services to the Company notwithstanding the possibility of achange of control.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties agree as follows:

1. Term:The Company agrees to employ Executive and Executive hereby accepts such employment, in accordance with the terms of this Agreement, commencing as of the date hereof and ending on the third anniversary of the date hereof unless this Agreement is earlier terminated as provided herein. Notwithstanding any other provision of this Agreement, the Company shall have an obligation to make any payments to Executive for Base Salary and Bonuses, as defined below and as required by this Agreement.

2. Services and Exclusivity of Services:So long as this Agreement shall continue in effect, Executive shall devote Executive's full business time, energy and ability to the matters related thereto in order to perform duties as assigned by the Board of Directors of the Company (the "Board"). Executive shall use Executive's best efforts and abilities to promote the Company's interests and shall perform the services contemplated by this Agreement in accordance with policies established by and under the direction of the Board.   Executive agrees to serve in such other executive capacities for one or more direct or indirect Affiliates of the Company as the Board may from time to time request, subject to appropriate  authorization by the Affiliate or Affiliates involved and any limitations under applicable law.   Executive agrees to faithfully and diligently promote thebusiness, affairs and interests of the Company and its Affiliates. Executive shall not, directly or indirectly, during the term of this Agreement engage in any activity competitive with or adverse to the Company's business, whether alone, as a partner, officer, director, employee or significant investor of or in any other entity. (An investment of greater than 5% of theoutstanding capital or equity securities of an entity shall be deemed significant for these purposes.)

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Executive represents to theCompany that Executive has no other outstanding commitments inconsistent with any of the terms of this Agreement or the services to be rendered hereunder.

3. Duties and Responsibilities:    In addition to his duties as an employee as discussed herein, Executive shall serve as Chief Executive Officer/President of theCompany and temporally acting as Chief Operation Officer for the duration of this Agreement. Executive's duties as an Executive shall be overall responsibility and authority, subject to authorities and limitations as established by the "Board", to implement and continue to develop the business strategies of the Company. In the performance of Executive's duties, Executive shall report directly to the Board of Directors and shall be subject to the direction of the Board.

Executive agrees to observe and comply with the rules and regulations of the Company as adopted by the Board respecting the performance of Executive's duties and agrees to carry out and perform orders, directions and policies of the Company and its Board as they may be, from time to time, stated either orally or in writing. The Company agrees thatthe duties which may be assigned to Executive shall be usual and customary duties of the position(s) to which Executive may from time to time be appointed or elected and shall not be inconsistent with the provisions of the charter documents of the Company or applicable law. Executive shall have such corporate power and authority as shall reasonably be required to enable Executive to perform the duties required in any office that may be held, subject to the limitations on such powers imposed by the Board.

4.            Compensation:

Base Compensation:

During the term of this Agreement, the Company agrees to pay Executive a base salary at the rate of One Hundred and Eighty Thousand Dollars (180,000.00) per year payable in equal installments no less frequently than twice monthly from the date hereof to January 31, 2015, subject to increases at the discretion of the Board or the Compensation Committee of the Board, payable in accordance with the Company practices in effect from time to time. The Company and Executive have agreed that the salary shall be increased to Three Hundred Thousand Dollars (300,000.00) per year once the Board certifies an acceptable level of financing to the Company.

Incentive or Performance based Awards;

Executive shall be granted additional shares of common stock in the company upon the company's achievement of certain milestones. As CEO/President and COO, the Executive is deemed to have a significantimpact on the ability of the company to achieve theses milestones and thus shall have earned the certain stock awards. Each award shall be granted immediately upon achievement of the individual stated milestones as follows:

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A)   Upon the company's execution of a definitive agreement with Amtrak, employee shall be granted 1,000,000 shares.

B)    Upon the company's execution of a definitive agreement with BNSF, employee shall be granted 500,000 shares.

C)    Upon the company's execution of a definitive agreement with  Union  Pacific, employee shall be granted 500,000 shares.

D)    Upon the company's execution of a definitive agreement with a rail car provider, employee shall be granted 500,000 shares.

E)    Upon the company's completion of its operation of its first train between Los Angeles  and Las Vegas, employee shall be granted 1,500,000 shares.

Bonuses:

Executive shall be eligible for General Bonuses (as defined below) and Performance Bonuses (as defined below) as follows (collectively, "Bonuses"):

General Bonuses: Executive shall be eligible for bonuses in accordance with any bonus or other incentive compensation plans adopted and approved by the Board ("General Bonuses").

Additional Benefits: The Company agrees to provide the following "Additional Benefits" to Executive:

Payment of a medical plan coverage for Executive, his spouse and dependents limited to children, if any, at the expense of the Company, with such payment of coverage (or comparable coverage) to continue following termination of employment (other than for "Cause" or without "Good Reason" as each term is defined in this Agreement) until Executive and spouse are eligible for Medicare, Cobra coverage or if employed elsewhere and other insurance coverage is offered.

All rights and benefits for which Executive is otherwise eligible under any pension plan, profit-sharing plan, dental, disability, or insurance plan or policy or other plan or benefit that the Company or its Affiliates may provide for Executive or (provided Executive is eligible to participate therein) for employees of the Company generally, as from time to time in effect, during the term of this Agreement.

In the event the Company does not offer a medical and dental plan the Company agrees to pay for Executive's personal health plan.

Stock Options: Executive shall be eligible for stock option grants under the Company's stock option plans as administered by the Board or the Compensation Committee of the Board if made available in the future.

Perquisites: Executive shall be entitled to five weeks paid vacation and other perquisites in accordance with the plans, policies, programs and practices which are at least as favorable as those in effect with respect to other peer employees of the Company.

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Auto Allowance: Executive shall be paid $1,000.00 per month payable on the lst of every month for theuse of his automobile for Company related business.

Notes: The Employer shall acknowledge the execution of a certain promissory note in favor of Executive for accrued unpaid salary. All unpaid sums of money shall accrue interest in accordance with said promissory note (Exhibit A). Additionally, Employer acknowledges that Executive is owed additional sums of money as evidenced by Form 10K as filed with the SEC to include corporate resolutions (Exhibit B).

5.Termination:

This Agreement and all obligations hereunder (except the obligations contained in Additional Benefits Sections 4, and Sections 7, 8, 9 and 10, (Confidential Information, Non-Competition, Non-Solicitation of Customers and Noninterference with Executives) which shall survive any termination hereunder) shall terminate upon the earliest to occur of any of the following:

Expiration of Term: The expiration of the term provided for in Section 1 or the voluntary termination by Executive or retirement from the Company in accordance with the normal retirement policies of the Company.

Death or Disability of Executive: For the purposes of this Agreement, disability shall mean the absence of Executive performing Executive's duties with the Company for a period of three (3) months period, as a result of incapacity due to mental or physical illness. If Executive shall become disabled, Executive's employment may be terminated by written notice from the Company to Executive.

For Cause or Without Good Reason: The Company may terminate Executive's employment and all of Executive's rights to receive Base Salary and Bonuses hereunder for Cause or upon the resignation of Executive without Good Reason. Termination for "Cause" shall mean termination of the Executive by the Company for any of the following reasons: (a) Executive's willful criminal misconduct or habitual neglect in the performance of his duties under this Agreement, (b) commission of any felony by Executive, (c) Executive's commission of anyfelony involving fraud, dishonesty or moral turpitude, (d) Executive's material breach of any material provision of this Agreement that remains uncured ten (10) days following receipt by Executive from Company of written notice thereof, unless such breach is of a kind not susceptible to cure within such ten (10) day period, (e) material violation of any Company policies by Executive,    (f)    Executive's    material    dishonesty,    moral,   turpitude,    fraud    or misrepresentation, if not disclosed, with respect to his material duties or Executive's misrepresentation in inducement to enter into this Agreement, or (g) any willful or intentional action or inaction by Executive resulting in any injury to the reputation of or the financial detriment of the Company. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause unless and until there shall have been (i) delivered to him a notice of termination which shall include a statement to the effect that Executive was guilty of conduct justifying termination for Cause, AND (ii) an opportunity given to him on not less than 72 hours notice to be heard before at lest a majority of the Board of Directors. "Good Reason" shall be defined as (i) demotion of Executive from the position of Chief Executive Officer without the consent of Executive; (ii) any attemptto decrease Executive's Base Salary; (iii) any breach of this Agreement by the Company; or (iv) any requirement that Executive relocate to an office more than 30 miles from Las Vegas, Nevada. In the event Executive is discharged for any other reason whatsoever the Company shall be obligated to pay Executive a severance sum in cash. The severance amount shall be calculated by taking the sum of all shares held by executive plus any shares held in trust or by an entity where executive is the beneficial owner of said shares and combining all share amounts. This shall also include any shares, options, or warrants which are contractually obligated by the company and the total of these instruments shall be added to the share count as if earned. The severance amount to be paid shall be based on the total share count multiplied by the market share price of the trailing 14 day trading average times twenty percent (20%). Said severance sum shall be paid to Executive prior to any termination becoming effective. Failure by the company to pay the full amount of the severance to Executive within 5 days of the notice of termination, unless Executive agrees in writing to alternative terms, will negate any discharge of Executive.

4

Without Cause or With Good Reason: Notwithstanding any other provision of this Section 5, the Board shall have the right to terminate Executive's employment with the Company without Cause, and Executive shall have the right to resign with Good Reason, at any time. If the Company terminates Executive without Cause or Executive terminates for Good Reason, then the Company shall, within two (2) weeks of such termination, make an immediate lump sum payment in the amount of  one time the applicable Base Salary for a period equal to two (2) years following the date of termination (the "Severance Period"), net of applicable taxes, plus  any Bonuses as set by the Board of Directors and duly approved (based on the assumption that the Company would achieve all performance targets for a 100% bonus), and the Company shall provide the Additional Benefits provided for under Section 4 for the remainder of the term, including the accelerated full vesting of Stock Options. The present value of the aggregate unpaid Base Salary and Bonuses shall be determined under the then applicable federal rates under the Internal Revenue Code. Further, if Executive is terminated without Cause or resigns with Good Reason, all stock options held by Executive shall become fully vested.

6. Buy Out Provision:If the Employer terminates the Executive's employment because the business is sold, the Employer will pay to the Executive (1) the Executive's accrued salary and vacation, including the then unused accrued vacation, up to and. including the date of termination and (2) the equivalent of two years of the Executive's Base Salary, less applicable deductions and withholdings, pursuantto the Employer's standard pay periods and practices; provided, however, that such payments shall be deemed severance pay and not wages. Such payment shall be made to the Executive as soon as administratively practicable after the termination of the Executive's employment, but no later than two weeks from the date the Executive's employment is so terminated. The Executive shall execute a release of all current or future claims, known or unknown, arising on or before the date of the release, against the Employer and its subsidiaries and the directors, officers, employees and affiliates of any of them, in a form approved by the Employer and (3) the Executive shall be entitled to all stock grants on section 4 which shall be issued upon termination.

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7. Golden Parachute Limitation:  The payments and benefits payable to Executive under this Agreement and all other contracts, arrangements, or programs with the Company shall not, in the aggregate exceed the maximum amount that may be paid to to Executive without triggering golden parachute penalties  under Section 280G  of the  Internal Revenue Code of 1986, as amended (the "Code"), as determined in good faith by the Company's independent auditors.  Executive agrees that, to the extent payments or benefits under this Agreement would not be deductible under Code Section 162(m) if made or provided when otherwise due under this Agreement, such payments and benefits shall be made or provided later, immediately after Section 162(m) ceases to preclude their deduction, with interest thereon at the rate provided in Code Section 1274(b)(2)(B). If even after such deferral the payments and benefits otherwise payable to Executive must be reduced to avoid triggering such penalties, the payments and benefits will be reduced in the priority order designated by the Executive, or, if the Executive fails promptly to designate an order, in the priority order designated by the Company. If an amount in excess of thelimit set forth in this Section 8 is paid to Executive, Executive shall repay the excess amount to the Company upon demand. Executive and the Company agree to cooperate with each other in connection with any administrative or judicial proceedings concerning the existence or amount of golden parachute penalties on payments or benefits received by Executive.

8. Business Expenses:   During the term of this Agreement, the Company shall reimburse Executive promptly for business expenditures made and substantiated in accordance with policies, practices and procedures established from time to time by the Company generally with respect to other employees and incurred in the pursuit and furtherance of the Company's business and good will.

9. Confidential Information:    Executive acknowledges that the nature of Executive's engagement by the Company is such that Executive shall have access to information of a confidential and/or trade secret nature which has great value to the Company and which constitutes asubstantial basis and foundation upon which the business of the Company is based.   Such information includes financial, marketing data, techniques, processes, formulas, developmental or experimental work, work in process, methods, trade secrets (including, without limitation, customer lists and lists of customer sources), or any other secret or confidential information relating to the products, services, customers, sales or business affairs of the Company or its Affiliates (the "Confidential  Information").  Executive shall keep all such Confidential Information in confidence during the term of this Agreement and at any time thereafter and shall not disclose any of such Confidential Information to any other person, except to the extend such disclosure is (i) required by applicable law, (ii) lawfully obtainable from other sources, or (iii) authorized in writing by the Company. Upon termination of Executive's employment with the Company, Executive shall deliver to the Company all documents, records, notebooks, work papers, and all similar material containing any of the foregoing information, whether prepared by Executive, the Company or anyone else.

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Non-Competition:   In order to protect the Confidential Information, Executive agrees that during the term of Executive's employment, and for a period of one years thereafter if Executive employment is terminated by the Company with Cause or by Executive without Good Reason, Executive shall not, directly or indirectly, whether as an owner, partner, shareholder, agent, employee, creditor or otherwise, promote, participate or engage in any activity or other business competitive with the Company's business or the business of any present Affiliate of the Company inthe state of Nevada if such activity or other business involves any use by Executive of any of the Confidential Information. The Company shall notify Executive of any perceived violation of this Section 8, and Executive shall have 30 days to cure such violation.

11. Non-Solicitation of Customers: Executive agrees that for a period of two (2) year after thetermination of employment with the Company, Executive will not, on behalf of himself or any other individual, association or entity, whether or not affiliated with Executive call on any of the customers of the Company or any Affiliate of the Company for the purpose of soliciting or inducing any of such customers to acquire (or providing to any of such customers) any product or service provided by the Company or any Affiliate of the Company, nor will Executive in any way, directly or indirectly, as agent or otherwise, in any other manner solicit, influenceor encourage such customers to take away or to divert or direct their business to Executive or any other person or entity by or with which Executive is employed, associated, affiliated or otherwise related if such business is competitive with the Company.

12. Noninterference with Executives:    In order to protect the Confidential Information, Executive agrees that during the term hereof and for a period of two (2) years thereafter, Executive will not, directly or indirectly, induce or entice any employee of the Company or  its  Affiliates to  leave such employment or cause  anyone  else to  leave  such employment.

13. Indemnity:   To the fullest extend permitted by applicable law and the bylaws of the Company, as from time to time in effect, the Company shall indemnify Executive and hold Executive harmless for any acts or decisions made in good faith while performing services for the Company, and the Company shall use commercially reasonable efforts to obtain coverage for Executive (provided the same may be obtained at reasonable cost) under any liability insurance policy or policies now in force or hereafter obtained during the term of this Agreement that cover other officers of the Company having comparable or lesser status and responsibility.   The Company will pay and, subject to any legal limitations, advance all reasonable expenses, including reasonable attorneys' fees and costs ofcourt approved settlements, actually and necessarily incurred by Executive in connection with the defense of any action, suit or proceeding and in connection with any appeal thereon, which has been brought against Executive by reason of Executive's service as an officer or agent of the Company, except if shown that Executive has breached his duties and obligations to the Company.

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14. Severability:   If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, to achieve the intent of the parties to the extent possible.   In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the extent possible.

15. Succession:    This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, "successor" and "assignee" shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires the stock of the Company or to which the Company assigns this Agreement by operation of law or otherwise.    The obligations and duties of Executive hereunder are personal and otherwise not assignable.   Executive's obligations and representations under this Agreement will survive the termination of Executive's employment, regardless of the manner of such termination.

16. Notices:  Any notice or other communication provided for in this Agreement shall be in writing and sent if to the Company to its office at:

Las Vegas Railway Express, Inc.

6050 Via Austi Parkway, Suite # 170 Las Vegas, Nevada 89119

(702)583-6698

or at such other address as the Company may from time to time in writing designate, and if to Executive at such address as Executive may from time to time in writing designate. Each such notice or other communication shall be effective (i) if given by telecommunication, when transmitted to the applicable number so specified in (or pursuant to) this Section 14 and a verification of receipt is received, (ii) if given by mail, three days after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means, when actually delivered at such address.

17. Entire Agreement: This Agreement contains the entire agreement of the parties relating to the subject matter hereof and supersedes agreements, undertakings, commitments and practices relating to Executive's employment by the Company.

18. Amendments:   No amendment or modification of the terms of this Agreement shall be valid unless made in writing and duly executed by both parties.

19. Waiver:   No failure on the part of any party to exercise or delay in exercising any right hereunder shall be deemed a waiver thereof or of any other right, nor shall any single or partial exercise preclude any further or other exercise of such right or any other right.

20. Governing Law:  This Agreement, and the legal relations between the parties, shall be governed by and construed in accordance with the laws of the State of Nevada without regard to conflicts of law doctrines, and any court action arising out of this Agreement shall be brought in any court of competent jurisdiction within the State of Nevada.

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21. Arbitration:The parties may, if they so desire and elect, submit any claim for payment under this Agreement or any dispute regarding the interpretation of this Agreement to arbitration upon such terms and provisions to which they agree.

22. Withholding:All compensation payable hereunder, including salary and other benefits, and amounts payable under Section 5 above, shall be subject to applicable taxes, withholding and other required, normal or elected employee deductions.

23. Counterparts:   This Agreement and any amendment hereto may be executed in one or more counterparts. All of such counterparts shall constitute one and the same agreementand shall become effective when a copy signed by each party has been delivered to the other party.

24. Headings:   Section and other headings contained in this Agreement arc for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

25. Representation  By Counsel;  Interpretation:    The Company and  Executive each acknowledges that each party to this Agreement has been represented by counsel inconnection with this Agreement and the matters contemplated by this Agreement.Accordingly, any rule of law, including but not limited to Section 1654 of the Californiacivil Code, or any legal decision that would require interpretation of any claimedambiguities in this Agreement against the party that drafted it has no application and isexpressly waived.   The provision of this Agreement shall be interpreted in a reasonablemanner to effect the intent of the parties.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

THE COMPANY

Las Vegas Railway Express, Inc.

By: ______________________

Its: ______________________

EXECUTIVE

Michael A. Barron

__________________________

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EX-10.3

Exhibit 10.3

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of February 1, 2012 by and between Las Vegas Railway Express, Inc. aDelaware Corporation (the "Company") and Wanda Witoslawski ("Executive").

WITNESSETH:

WHEREAS, the Company and Executive desire to enter into this Agreement to assure the Company of the continuing and exclusive service of Executive and to set forth the terms and conditions ofExecutive's employment with the Company.

WHEREAS, Executive and the Company have agreed thatto fill this critical executive position the Company and Executive must agree upon the amended terms and conditions set forth herein. The Company's Board further believes that it must provide the Executive with certain enhanced severance benefits upon Executive's termination of  employment and to provide to the Executive, through enhanced financial security, incentive to continue providing services to the Company notwithstanding the possibility of achange of control.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties agree as follows:

1. Term:The Company agrees to employ Executive and Executive hereby accepts such employment, in accordance with the terms of this Agreement, commencing as of the datehereof and ending on the third anniversary of the date hereof unless this Agreement isearlier terminated as provided herein. Notwithstanding any other provision of thisAgreement, the Company shall have an obligation to make any payments to Executive for Base Salary and Bonuses, as defined below and as required by this Agreement.

2. Services and Exclusivity of Services:So long as this Agreement shall continue in effect, Executive shall devote Executive's full business time, energy and ability to the matters related thereto in order to perform duties as assigned by the Chief Executive Officer. Executive shall use Executive's best efforts and abilities to promote the Company's interests and shall perform the services contemplated by this Agreement in accordance with policies established by and under the direction of the Chief Executive Officer. Executive agrees to serve in such other executive capacities for one or more direct or indirect Affiliates of the Company as the Chief Executive Officer may from time to time request, subject to appropriate  authorization by the Affiliate or Affiliates involved and any limitations under applicable law.   Executive agrees to faithfully and diligently promote thebusiness, affairs and interests of the Company and its Affiliates.

Executive shall not, directly or indirectly, during the term of this Agreement engage in any activity competitive with or adverse to the Company's business, whether alone, as a partner, officer, director, employee or significant investor of or in any other entity. (An investment of greater than 5% of theoutstanding capital or equity securities of an entity shall be deemed significant for these purposes.)

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Executive represents to theCompany that Executive has no other outstanding commitments inconsistent with any of the terms of this Agreement or the services to be rendered hereunder.

3. Duties and Responsibilities:    In addition to his duties as an employee as discussed herein, Executive shall serve as Chief Financial Officer/Controller of theCompany for the duration of this Agreement. Executive's duties as an Executive shall be overall responsibility and authority, subject to authorities and limitations as established by the Chief Executive Officer, to implement and continue to develop the business strategies of the Company. In the performance of Executive's duties, Executive shall report directly to Chief Executive Officer and shall be subject to the direction of Chief Executive Officer.

Executive agrees to observe and comply with the rules and regulations of the Company as adopted by the Board respecting the performance of Executive's duties and agrees to carry out and perform orders, directions and policies of the Company and its Board as they may be, from time to time, stated either orally or in writing. The Company agrees thatthe duties which may be assigned to Executive shall be usual and customary duties of the position(s) to which Executive may from time to time be appointed or elected and shall not be inconsistent with the provisions of the charter documents of the Company or applicable law. Executive shall have such corporate power and authority as shall reasonably be required to enable Executive to perform the duties required in any office that may be held, subject to the limitations on such powers imposed by Chief Executive Officer.

4.             Compensation:

Base Compensation:

During the term of this Agreement, the Company agrees to pay Executive a base salary at the rate of One Hundred and Twenty Thousand Dollars (120,000.00) per year payable in equal installments no less frequently than twice monthly from the date hereof to January 31, 2015, subject to increases at the discretion of Chief Executive Officer or the Compensation Committee of the Board, payable in accordance with the Company practices in effect from time to time. The Company and Executive have agreed that the salary shall be increased to Two Hundred Thousand Dollars (200,000.00) per year once the Board certifies an acceptable level of financing to the Company.

Incentive or Performance based Awards;

Executive shall be granted additional shares of common stock in the company upon the company's achievement of certain milestones. As Chief Financial Officer/Controller, the Executive is deemed to have a significantimpact on the ability of the company to achieve theses milestones and thus shall have earned the certain stock awards. Each award shall be granted immediately upon achievement of the individual stated milestones as follows:

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A)	Upon the company's execution of a definitive agreement with Amtrak, employe shall be granted 500,000 shares.
B)	be granted 250,000 shares.
C)	employee shall be granted 250,000 shares.
D)	employee shall be granted 250,000 shares.
E)	Upon the company's completion of its operation of its first train between Los Angeles and Las Vegas, employee shall be granted 750,000 shares.

Bonuses:

Executive shall be eligible for General Bonuses (as defined below) and Performance Bonuses (as defined below) as follows (collectively, "Bonuses"):

General Bonuses: Executive shall be eligible for bonuses in accordance with any bonus or other incentive compensation plans adopted and approved by the Board ("General Bonuses").

Additional Benefits: The Company agrees to provide the following "Additional Benefits" to Executive:

Payment of a medical plan coverage for Executive, his spouse and dependents limited to children, if any, at the expense of the Company, with such payment of coverage (or comparable coverage) to continue following termination of employment (other than for "Cause" or without "Good Reason" as each term is defined in this Agreement) until Executive and spouse are eligible for Medicare, Cobra coverage or if employed elsewhere and other insurance coverage is offered.

All rights and benefits for which Executive is otherwise eligible under any pension plan, profit-sharing plan, dental, disability, or insurance plan or policy or other plan or benefit that the Company or its Affiliates may provide for Executive or (provided Executive is eligible to participate therein) for employees of the Company generally, as from time to time in effect, during the term of this Agreement.

In the event the Company does not offer a medical and dental plan the Company agrees to pay for Executive's personal health plan.

Stock Options: Executive shall be granted 1 million per year, vested quarterly, for a total period of 3 years for a total of 3 million shares issued as follows:

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a)	1 million shares on May 19, 2011
b)	1 million shares on May 19, 2012
c)	1 million shares on May 19, 2013

Executive shall also be eligible for stock option grants under the Company's stock option plans as administered by the Board or the Compensation Committee of the Board if made available in the future.

Perquisites: Executive shall be entitled to four weeks paid vacation and other perquisites in accordance with the plans, policies, programs and practices which are at least as favorable as those in effect with respect to other peer employees of the Company.

Auto Allowance: Executive shall be paid $500.00 per month payable on the lst of every month for theuse of his automobile for Company related business.

5.Termination:

This Agreement and all obligations hereunder (except the obligations contained in Additional Benefits Sections 4, and Sections 7, 8, 9 and 10, (Confidential Information, Non-Competition, Non-Solicitation of Customers and Noninterference with Executives) which shall survive any termination hereunder) shall terminate upon the earliest to occur of any of the following:

Expiration of Term: The expiration of the term provided for in Section 1 or the voluntary termination by Executive or retirement from the Company in accordance with the normal retirement policies of the Company.

Death or Disability of Executive: For the purposes of this Agreement, disability shall mean the absence of Executive performing Executive's duties with the Company for a period of three (3) months period, as a result of incapacity due to mental or physical illness. If Executive shall become disabled, Executive's employment may be terminated by written notice from the Company to Executive.

For Cause or Without Good Reason: The Company may terminate Executive's employment and all of Executive's rights to receive Base Salary and Bonuses hereunder for Cause or upon the resignation of Executive without Good Reason. Termination for "Cause" shall mean termination of the Executive by the Company for any of the following reasons: (a) Executive's willful criminal misconduct or habitual neglect in the performance of his duties under this Agreement, (b) commission of any felony by Executive, (c) Executive's commission of anyfelony involving fraud, dishonesty or moral turpitude, (d) Executive's material breach of any material provision of this Agreement that remains uncured ten (10) days following receipt by Executive from Company of written notice thereof, unless such breach is of a kind not susceptible to cure within such ten (10) day period, (e) material violation of any Company policies by Executive,    (f)    Executive's    material    dishonesty,    moral,   turpitude,    fraud    or misrepresentation, if not disclosed, with respect to his material duties or Executive's misrepresentation in inducement to enter into this Agreement, or (g) any willful or intentional action or inaction by Executive resulting in any injury to the reputation of or the financial detriment of the Company. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause unless and until there shall have been (i) delivered to him a notice of termination which shall include a statement to the effect that Executive was guilty of conduct justifying termination for Cause, AND (ii) an opportunity given to him on not less than 72 hours notice to be heard before at lest a majority of the Board of Directors. "Good Reason" shall be defined as (i) demotion of Executive from the position of Chief Financial Officer/Controller without the consent of Executive; (ii) any attemptto decrease Executive's Base Salary; (iii) any breach of this Agreement by the Company; or (iv) any requirement that Executive relocate to an office more than 30 miles from Las Vegas, Nevada. In the event Executive is discharged for any other reason whatsoever the Company shall be obligated to pay Executive a severance sum in cash. The severance amount shall be calculated by taking the sum of all shares held by executive plus any shares held in trust or by an entity where executive is the beneficial owner of said shares and combining all share amounts. This shall also include any shares, options, or warrants which are contractually obligated by the company and the total of these instruments shall be added to the share count as if earned. The severance amount to be paid shall be based on the total share count multiplied by the market share price of the trailing 14 day trading average times twenty percent (20%). Said severance sum shall be paid to Executive prior to any termination becoming effective. Failure by the company to pay the full amount of the severance to Executive within 5 days of the notice of termination, unless Executive agrees in writing to alternative terms, will negate any discharge of Executive.

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Without Cause or With Good Reason: Notwithstanding any other provision of this Section 5, the Board shall have the right to terminate Executive's employment with the Company without Cause, and Executive shall have the right to resign with Good Reason, at any time. If the Company terminates Executive without Cause or Executive terminates for Good Reason, then the Company shall, within two (2) weeks of such termination, make an immediate lump sum payment in the amount of  one time the applicable Base Salary for a period equal to two (2) years following the date of termination (the "Severance Period"), net of applicable taxes, plus  any Bonuses as set by the Board of Directors and duly approved (based on the assumption that the Company would achieve all performance targets for a 100% bonus), and the Company shall provide the Additional Benefits provided for under Section 4 for the remainder of the term, including the accelerated full vesting of Stock Options. The present value of the aggregate unpaid Base Salary and Bonuses shall be determined under the then applicable federal rates under the Internal Revenue Code. Further, if Executive is terminated without Cause or resigns with Good Reason, all stock options held by Executive shall become fully vested.

6. Buy Out Provision:If the Employer terminates the Executive's employment because the business is sold, the Employer will pay to the Executive (1) the Executive's accrued salary and vacation, including the then unused accrued vacation, up to and. including the date of termination and (2) the equivalent of two years of the Executive's Base Salary, less applicable deductions and withholdings, pursuantto the Employer's standard pay periods and practices; provided, however, that such payments shall be deemed severance pay and not wages. Such payment shall be made to the Executive as soon as administratively practicable after the termination of the Executive's employment, but no later than two weeks from the date the Executive's employment is so terminated. The Executive shall execute a release of all current or future claims, known or unknown, arising on or before the date of the release, against the Employer and its subsidiaries and the directors, officers, employees and affiliates of any of them, in a form approved by the Employer and (3) the Executive shall be entitled to all stock grants on section 4 which shall be issued upon termination.

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7. Golden Parachute Limitation:  The payments and benefits payable to Executive under this Agreement and all other contracts, arrangements, or programs with the Company shall not, in the aggregate exceed the maximum amount that may be paid to to Executive without triggering golden parachute penalties  under Section 280G  of the  Internal Revenue Code of 1986, as amended (the "Code"), as determined in good faith by the Company's independent auditors.  Executive agrees that, to the extent payments or benefits under this Agreement would not be deductible under Code Section 162(m) if made or provided when otherwise due under this Agreement, such payments and benefits shall be made or provided later, immediately after Section 162(m) ceases to preclude their deduction, with interest thereon at the rate provided in Code Section 1274(b)(2)(B). If even after such deferral the payments and benefits otherwise payable to Executive must be reduced to avoid triggering such penalties, the payments and benefits will be reduced in the priority order designated by the Executive, or, if the Executive fails promptly to designate an order, in the priority order designated by the Company. If an amount in excess of thelimit set forth in this Section 8 is paid to Executive, Executive shall repay the excess amount to the Company upon demand. Executive and the Company agree to cooperate with each other in connection with any administrative or judicial proceedings concerning the existence or amount of golden parachute penalties on payments or benefits received by Executive.

8. Business Expenses:   During the term of this Agreement, the Company shall reimburse Executive promptly for business expenditures made and substantiated in accordance withpolicies, practices and procedures established from time to time by the Companygenerally with respect to other employees and incurred in the pursuit and furtherance ofthe Company's business and good will.

9. Confidential Information:    Executive acknowledges that the nature of Executive's engagement by the Company is such that Executive shall have access to information of aconfidential and/or trade secret nature which has great value to the Company and whichconstitutes asubstantial basis and foundation upon which the business of the Company isbased.   Such information includes financial, marketing data, techniques, processes,formulas, developmental or experimental work, work in process, methods, trade secrets(including, without limitation, customer lists and lists of customer sources), or any othersecret or confidential information relating to the products, services, customers, sales orbusiness affairs of the Company or its Affiliates (the "Confidential  Information").Executive shall keep all such Confidential Information in confidence during the term ofthis Agreement and at any time thereafter and shall not disclose any of such Confidential Information to any other person, except to the extend such disclosure is (i) required byapplicable law, (ii) lawfully obtainable from other sources, or (iii) authorized in writingby the Company. Upon termination of Executive's employment with the Company,Executive shall deliver to the Company all documents, records, notebooks, work papers,and all similar material containing any of the foregoing information, whether prepared byExecutive, the Company or anyone else.

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Non-Competition:   In order to protect the Confidential Information, Executive agrees that during the term of Executive's employment, and for a period of one years thereafter if Executive employment is terminated by the Company with Cause or by Executive without Good Reason, Executive shall not, directly or indirectly, whether as an owner, partner, shareholder, agent, employee, creditor or otherwise, promote, participate or engage in any activity or other business competitive with the Company's business or the business of any present Affiliate of the Company inthe state of Nevada if such activity or other business involves any use by Executive of any of the Confidential Information. The Company shall notify Executive of any perceived violation of this Section 8, and Executive shall have 30 days to cure such violation.

11. Non-Solicitation of Customers: Executive agrees that for a period of two (2) year after thetermination of employment with the Company, Executive will not, on behalf ofhimself or any other individual, association or entity, whether or not affiliated with Executive call on any of the customers of the Company or any Affiliate of the Companyfor the purpose of soliciting or inducing any of such customers to acquire (or providing toany of such customers) any product or service provided by the Company or any Affiliateof the Company, nor will Executive in any way, directly or indirectly, as agent orotherwise, in any other manner solicit, influenceor encourage such customers to takeaway or to divert or direct their business to Executive or any other person or entity by orwith which Executive is employed, associated, affiliated or otherwise related if suchbusiness is competitive with the Company.

12. Noninterference with Executives:    In order to protect the Confidential Information,Executive agrees that during the term hereof and for a period of two (2) years thereafter,Executive will not, directly or indirectly, induce or entice any employee of the Companyor  its  Affiliates to  leave such employment or cause  anyone  else to  leave  suchemployment.

13. Indemnity:   To the fullest extend permitted by applicable law and the bylaws of theCompany, as from time to time in effect, the Company shall indemnify Executive andhold Executive harmless for any acts or decisions made in good faith while performingservices for the Company, and the Company shall use commercially reasonable efforts toobtain coverage for Executive (provided the same may be obtained at reasonable cost)under any liability insurance policy or policies now in force or hereafter obtained duringthe term of this Agreement that cover other officers of the Company having comparableor lesser status and responsibility.   The Company will pay and, subject to any legallimitations, advance all reasonable expenses, including reasonable attorneys' fees andcosts ofcourt approved settlements, actually and necessarily incurred by Executive inconnection with the defense of any action, suit or proceeding and in connection with anyappeal thereon, which has been brought against Executive by reason of Executive's service as an officer or agent of the Company, except if shown that Executive has breached his duties and obligations to the Company.

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14. Severability:   If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, to achieve the intent of theparties to the extent possible.   In any event, all other provisions of this Agreement shallbe deemed valid and enforceable to the extent possible.  

15. Succession:    This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns and any such successor or assignee shall bedeemed substituted for the Company under the terms of this Agreement for all purposes.As used herein, "successor" and "assignee" shall include any person, firm, corporation orother business entity which at any time, whether by purchase, merger or otherwise,directly or indirectly acquires the stock of the Company or to which the Company assignsthis Agreement by operation of law or otherwise.    The obligations and duties ofExecutive hereunder are personal and otherwise not assignable.   Executive's obligationsand representations under this Agreement will survive the termination of Executive's employment, regardless of the manner of such termination.

16. Notices:  Any notice or other communication provided for in this Agreement shall be in writing and sent if to the Company to its office at:   Las Vegas Railway Express, Inc. 6050 Via Austi Parkway, Suite # 170 Las Vegas, Nevada 89119 (702)583-6698   or at such other address as the Company may from time to time in writing designate, and if to Executive at such address as Executive may from time to time in writing designate. Each such notice or other communication shall be effective (i) if given by telecommunication, when transmitted to the applicable number so specified in (or pursuant to) this Section 14 and a verification of receipt is received, (ii) if given by mail, three days after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means, when actually delivered at such address.

17. Entire Agreement: This Agreement contains the entire agreement of the parties relating to the subject matter hereof and supersedes agreements, undertakings, commitments andpractices relating to Executive's employment by the Company.

18. Amendments:   No amendment or modification of the terms of this Agreement shall be valid unless made in writing and duly executed by both parties.

19. Waiver:   No failure on the part of any party to exercise or delay in exercising any righthereunder shall be deemed a waiver thereof or of any other right, nor shall any single orpartial exercise preclude any further or other exercise of such right or any other right.

20. Governing Law:  This Agreement, and the legal relations between the parties, shall begoverned by and construed in accordance with the laws of the State of Nevada withoutregard to conflicts of law doctrines, and any court action arising out of this Agreementshall be brought in any court of competent jurisdiction within the State of Nevada.

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21. Arbitration:The parties may, if they so desire and elect, submit any claim for payment under this Agreement or any dispute regarding the interpretation of this Agreement toarbitration upon such terms and provisions to which they agree.

22. Withholding:All compensation payable hereunder, including salary and other benefits, and amounts payable under Section 5 above, shall be subject to applicable taxes,withholding and other required, normal or elected employee deductions.

23. Counterparts:   This Agreement and any amendment hereto may be executed in one ormore counterparts. All of such counterparts shall constitute one and the same agreementand shall become effective when a copy signed by each party has been delivered to theother party.

24. Headings:   Section and other headings contained in this Agreement arc for convenienceof reference only and shall not affect in any way the meaning or interpretation of thisAgreement.

25. Representation  By Counsel;  Interpretation:    The Company and  Executive each acknowledges that each party to this Agreement has been represented by counsel in connection with this Agreement and the matters contemplated by this Agreement.Accordingly, any rule of law, including but not limited to Section 1654 of the Californiacivil Code, or any legal decision that would require interpretation of any claimedambiguities in this Agreement against the party that drafted it has no application and isexpressly waived.   The provision of this Agreement shall be interpreted in a reasonablemanner to effect the intent of the parties.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

THE COMPANY

Las Vegas Railway Express, Inc.

By: ______________________

Its: ______________________

EXECUTIVE

Wanda Witoslawski

__________________________

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EX-10.4

Exhibit 10.4

PROPOSED LEASE TERMS

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding ("MOU") is dated as of May 1, 2012 and is between T-UPR, LLC ("Landlord") and Las Vegas Railway Express, Inc. a Delaware company ("Tenant"). For the purposes of this MOU, Landlord and Tenant shall sometimes collectively be referred to as the "Parties". This MOU sets forth the principal terms and conditions upon which the Parties would be willing to entertain entering into a lease (the "Lease"), as more particularly hereinafter described. Except with respect to the provisions of confidentiality contained herein, the execution of this MOU shall not be deemed a binding offer in any manner on either Party nor shall the execution of this MOU impose upon any of the Parties any legal obligations whatsoever in connection with the proposed Lease, unless and until the Parties enter into the final Lease containing, among other things, the terms of this MOU. Notwithstanding anything to the contrary contained herein, this MOU shall expire without the need for any further action by either party on July 31, 2012.

BUILDING/COMPLEX:	The Plaza Hotel and Casino (the "Hotel")
BUILDING ADDRESS:	1 Main Street, Las Vegas, Nevada 89101
LANDLORD:	T-UPR LLC
	The Plaza Hotel & Casino is owned by T-UPR LLC, a subsidiary of Tamares Real Estate Holdings, Inc.
TENANT:	Las Vegas Railway Express, Inc.  a Delaware company (OTC:BB-XTRN)
SECURITY DEPOSIT:	Tenant shall invest substantial capital in the proposed leased space (the "Leased Space") as hereinafter more fully described for certain Landlord approved improvements (the "Improvements") that will become the property of the Landlord. No security deposit shall be required.
PERMITTED USE:	First Class operation of intercity passenger rail terminal for LVRE service between Los Angeles and Las Vegas, souvenir shop, train ticket sales, travel and entertainment booking services, and service operations related to the operation to "X" Train but excluding, among other uses, any repairs or maintenance of trains and train parts and systems (the "Service"). The intercity passenger railroad itself is hereinafter called the "X Train".

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PROPOSED LEASE TERMS

PREMISES:

	Terminal Area	An area inside the Hotel of approximately 3,100 SF to be used for train terminal operations subject to measurement by Landlord's architect, see Exhibit A.
	Food Preparation Area	A separate food preparation kitchen area of approximately 1,900 SF in addition to the train terminal area and the land for the siding, and pedestrian platform and walkway to the terminal (collectively the "Leased Space"). The exact location and size of the food preparation area, which shall be either in the banquet kitchen on the second floor or the employee dining room kitchen on the first floor, shall be determined and agreed upon between the parties prior to completion of ongoing Hotel renovations. All food and beverages to be served by the Tenant, wherever prepared, shall be served only on the X Train itself.
	Platform Area	A rail siding and platform area will be constructed by Tenant, at Tenant's expense, along the Union Pacific main line, on Landlord's property, encroaching not more than twenty-five (25) feet into the existing parking area along the edge of the Tamares property that fronts the railroad tracks as shown on Exhibit B. All plans and specifications for construction of the siding and platform area shall be subject to Landlord and Union Pacific approval and all applicable laws and regulations.
LEASE COMMENCEMENT DATE AND TERM:		Upon full execution of the Lease. The initial term of the Lease shall be 10 years from execution.
RENT COMMENCEMENT DATE:		The earlier of the date upon which (i) Tenant occupies the Leased Space not including however the period following the Commencement Date during which Tenant will have access to the Leased Space for construction of tenant improvements and installation of FF&E or (ii) opens for business, but in no event later than 12 months subsequent to the Lease Commencement Date.

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PROPOSED LEASE TERMS

ADDITIONAL RENTAL RATE:

Tenant shall lease the Leased Space on a NNN basis, wherein Tenant shall pay Base Rent as hereinafter set forth and shall, as Additional Rent, furnish and pay for (i) its own janitorial service, (ii) HVAC, (iii) security and trash removal service, (iv)its usage of electric power, water and sewer usage based on separate meters or sub-meters to be installed by Tenant at Tenant's sole cost, or if separate metering is not feasible, by allocation made in good faith by the Landlord, and (v) its pro rata share of Landlord's real estate taxes, insurance, building maintenance and reserves and property management.

BASE RENTAL RA TE:

The Base Rent to be paid by Tenant shall be the greater of 2.5% of the gross income generated on the premises by the Tenant per annum or a minimum Base Rent to be paid monthly as follows:

Months		#of Months		Annual Rent Rate/RSF  Terminal & Food Prep Area		Annual Rent Rate/SF Platform Area and Siding Area
	1-12		12	$	0.00/SF	$	0.00/SF
	13-24		12	$	12.00/SF	$	2.40/SF
	25-60		36	$	15.00/SF	$	2.40/SF
	61-120		60	$	18.00/SF	$	2.40/SF

LANDLORD'S WORK:

Landlord agrees to extend all commercially necessary electrical and plumbing, to either a centralized location or to stubs within Premises. In addition, the Landlord will make Premises compliant with all applicable environmental laws, including the removal of all asbestos.

Tenant shall make substantial improvements to the Leased Space at its expense (the "Tenant's Work"). The interior and exterior improvements will be subject to design approval by Landlord, not to be unreasonably withheld. Tenant's initial estimate of interior and exterior improvements is approximately $2MM. The construction period for the Tenant's Work is estimated at twelve months including design, construction drawings, permits, and construction. Landlord shall provide the Leased Space in "as-is" condition, excluding extension of utilities to the space and mitigation of existing environmental hazards or removal of hazardous building materials which shall be the responsibility and expense of Landlord as above set forth. TENANT'S WORK:

3

PROPOSED LEASE TERMS

Tenant, at Tenant's expense will be responsible for all Tenant's Work, with Tenant's general contractor and subcontractors subject to Landlord's approval not to be unreasonably withheld, in the Leased Space, including, but not limited to:
	●	Tenant store front and signage (both interior and exterior
	●	Partitions, ceilings, finish flooring, signage
	●	Fire-rated rear service doors and associated security systems
	●	Plumbing distributions/fixtures, if needed
	●	Sprinkler drops and heads
	●	Transformers to appropriate volt power
	●	Telephone and cable wires from central distribution and control systems, including air handler, duct work, thermostats, registers, etc.
	●	Water source heat pumps and related distribution and control systems, including air handler, duct work, thermostats, etc.
	●	Emergency power, if needed
	●	Construction trash removal
	●	Cost of structural and other Tenant plan reviews, if required
	●	Installation of railroad sidings, and more.
	●	All Tenant's Work must be done in accordance with Landlord's design criteria and specifications and coordinated through Landlord's Tenant construction director. Tenant's construction must be performed in compliance with all local laws and Nevada codes and requirements.

4

PROPOSED LEASE TERMS

OPTION TO RENEW:	Provided (i) no Event of Default exists, or would but for the passage of time exist, (ii) Tenant has been continuously operating the "X" Train in accordance with the Lease without default, (iii) Tenant has provided Landlord not less than nine months prior written notice of its election to renew, and (iv) Tenant is occupying the entire Leased Space at the time of such election. Landlord will provide Tenant with one (1) option to renew the additional term of ten (10) years at the Base Rent in place at the time of renewal, plus annual CPI escalations, not less however than three (3%) per cent per annum.
TENANT TERMINA TION RIGHT:	Provided and on condition that (i) Tenant has not constructed a second siding and platform west of the current Union Pacific tracks for the Service, or (ii) less than 60,000 passengers utilized the Service in the prior 12 month period, Tenant shall have the one time right to terminate the Lease after the 36th month following the Rent Commencement Date (the "Tenant Termination"). Tenant shall provide twelve months prior written notice to Landlord of its election to exercise the Tenant Termination right.
NON-COMPETE:	Notwithstanding anything to the contrary contained herein, throughout the term of the Lease or, in the event that the Lease terminates in accordance with its terms other than due to the termination of the Lease by the Landlord pursuant to the Landlord's right of termination as set forth supra, the Tenant shall be restricted and may not establish any other service or terminals for the X Train in Clark County, Nevada throughout the Lease term and for a period of five (5) years following such termination-providing that certain expansion needs are met by the landlord as may be agreed upon in the Lease.
LANDLORD TERMINATION RIGHT:	Landlord shall have a right to terminate the Lease upon three (3) years prior written notice to the Tenant and payment of Tenant's unamortized initial construction costs of the Tenant Work as of the actual lease termination date, computed in accordance with GAAP.

5

PROPOSED LEASE TERMS

BUILDING AND LOBBY SIGN AGE:	Landlord shall reasonably provide Tenant signage, at Tenant's sole cost, on the building's exterior and within its lobby to assist in direction of passengers.
PARKING:	Up to 35 Tenant employees shall be provided on site parking at no expense in areas to be designated by Landlord south of the Hotel either in the south lot or parking garage as shall be determined by Landlord. Up to 20 additional parking spaces shall be made available to Tenant employees by Landlord, if available, at standard rates then in effect less 20%.
LIMOUSINE SER VICE, SHUTTLE BUS STA GING AREA:	Landlord has retained a master planning firm to study numerous issues relating to the proposed Lease. A mutually agreeable off-site area for staging and loading of taxi cabs, transfer cars, limousines and shuttle buses within reasonably close proximity to the Hotel (for approximately 120 cabs, 115 limousines and private cars, 10 shuttle buses and 5 full size buses) shall be agreed upon by the Parties following completion of the master planning study.
ASSIGNMENT AND SUBLETTING:	Tenant may, without the consent of Landlord, sublease the premises to an Affiliate of Tenant or assign the lease to an Affiliate of Tenant, provided that Tenant shall not thereupon be relieved of any liability under the Lease. Tenant will promptly notify Landlord of such assignment or sublease which notice will include a description of the Affiliate and its legal structure, its most recent financial statements, a copy of the assignment or sublease and such other  reasonable information as requested by Landlord. Tenant may not sublease the Leased Space or assign the Lease to any other party without the consent of Landlord, which consent may be granted or withheld in Landlord's sole and absolute discretion. In the event of an assignment or subletting, Tenant shall remain liable for the payment of all Base Rent and Additional Rent and the performance of all of Tenant's obligations under the Lease. Notwithstanding anything to the contrary contained herein, in the event of the sale of all of the Tenant's business (either an asset sale or a sale of a controlling interest of the Tenant or any Affiliate and provided among other things that there is and has been no default, and that other conditions as shall be set forth in the Lease have been met by the buyer and Tenant, the Lease may be assigned.

6

PROPOSED LEASE TERMS

BUILDING SECURITY AND ACCESS:	Tenant's authorized employees shall have access to the Premises twenty-four (24) hours per day, seven (7) days per week, or at a minimum during all hours of the operation the Building/Complex hotel and casino operations.
OPERATIONS AND PROMOTION AGREEMENTS:	As a condition to the Lease Tenant and Landlord intend to simultaneously enter into additional agreements between the parties to facilitate cross promotion of services to train and hotel casino/customers that will include the matters contained on Exhibit B annexed hereto.
	Based on Landlord's Lease terms subject to review and acceptance by Tenant.
INDEMNIFICATION:	Tenant agrees to provide Landlord with all reasonable and necessary financial information required for Landlord to sufficiently evaluate its financial condition and Landlord conditions this proposal, among other things, upon satisfactory review of such information.
FINANCIAL CREDIT:	Landlord will pay Tenant's real estate broker, Odyssey Realty, Dave Sundaram, a leasing commission of $30,000.

7

PROPOSED LEASE TERMS

LEASING COMMISSION:	The commission will be deemed earned only upon mutual execution of the Lease and shall be paid as follows: 1) 50% of the commission will be paid within 30 days of the Lease Commencement Date, and 2) 50% of the commission will be paid within 30 days following the Rent Commencement Date.
GAMING RESTRICTIONS:	Tenant acknowledges that Landlord's ownership of the Hotel is subject to a privileged gaming license and over lease with very stringent requirements. Further, Tenant acknowledges that it may be required to disclose to Landlord and/or its lender all ownership interests and all lenders or sources of financing. Should Landlord or Tenant be subject to any investigation, possible fine or penalty, or possible forfeiture of any privileges or licenses due to Tenant's operations, the individuals or entities which comprise the Tenant or any financial arrangements involving Tenant, upon written notice from Landlord, Tenant must cooperate with the investigation and, if a problem is identified, correct the problem or disassociate itself from the individual or entities giving rise to the issue, and if such does not occur to the satisfaction of the gaming authorities, Landlord shall have the right to immediately terminate the Lease without penalty.
CONFIDENTIALITY:	This proposal and all discussions related thereto shall be held in confidence in accordance with the attached confidentiality agreement.
TRAIN TRACK OVERPASS:	Tenant shall, if requested by Landlord, use its best efforts to assist Landlord in securing an easement right from Union Pacific Railroad, or such other applicable property owner(s), for use by Landlord to construct a pedestrian overpass above the train tracks. The easement shall connect an area adjacent to the Hotel and Symphony Park in a location mutually acceptable to Landlord and the City of Las Vegas.
	Las Vegas Railway Express, Inc.
	By: /s/ Michael Barron
	Name: Michael Barron

8

PROPOSED LEASE TERMS

AGREED AND ACCEPTED:	Title: CEO President
	T-UPR, LLC
	By: /s/ Ivy Greenburg
	Name: Ivy Greenburg
	CFO,
	Director
	_______________________________
DATE:

9

PROPOSED LEASE TERMS

EXHIBIT A Site

Plan and Description

10

11

PROPOSED LEASE TERMS

EXHIBIT B X Train/Plaza

Marketing Opportunities not limited to the following:

Package Sales
	1.	Explore Joint Venture to operate a Las Vegas ticket sales organization
		a.	Sell All shows in Las Vegas and LA
		b,	Package shows with Rooms in LA and LV
		c.	Special Food Packages
			i.	X Train Preferred Restaurants
				1.	Food Credits/discounts
				2.	Reservations
			ii.	Pre order meals on train
	2.	Group Sales
		a.	Coordinate X Train group sales efforts with Plaza
		b.	Concentrate on smaller groups in LA
		c.	Package with Plaza offerings
		d.	Rooms, Food, Entertainment
	3.	Night Club Package
		a,	Offer all inclusive transportation, hotel and clubbing specials in LV
		b.	Offer all inclusive transportation, hotel and clubbing specials in LA
Promotional Opportunities
	1.	Identify shared advertising space for XTrain and Plaza to cross promote
		a.	Billboards
		b.	In room collaterals
		c.	Websites
		d.	TV
		e.	Radio
		f.	On Property Signage (Plaza, Las Vegas Club)
			i.	Directional signage
			ii.	Light boxes
			iii.	Free Standing Posters
		g.	On Train Collateral
			i.	Light Boxes
			ii.	Platform Messages
			iii.	Brochure racks
	2.	Identify "for sale" advertising space onboard x train.
	3.	Explore Outside Media promotional opportunites in LA and LV
		a,	Free Distributed magazines nightlife in LA and LV
		b.	Free Advertising for XTrain...distribute on Train
		c.	Traffic and weather reports in LA and LV
	4.	Celebrity Trips
		a,	Radio and TV personalities to host trips to LV and LA
		b.	Hollywood and TV stars to take trips and promote XTrain
		c.	Any Movie premier featuring LAXV or trains to be hosted on XTrain
	5.	Adult Trips
		a.	Cross promote with Gentlemen Clubs
		b.	Bachelor Party Cars
		c.	Bachelorette Part Cars
	6.	Coordinate PR efforts between Plaza and XTrain

12

EX-31.1

Exhibit 31.1

Certifications

I, Michael A. Barron, certify that:

1. I have reviewed this annual report on Form 10-K of Las Vegas Railway Express, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 10, 2013

/s/ Michael A. Barron

Michael A. Barron

Chief Executive Officer/President

EX-31.2

Exhibit 31.2

Certifications

I, Wanda Witoslawski, certify that:

1. I have reviewed this annual report on Form 10-K of Las Vegas Railway Express, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 10, 2013

/s/ Wanda Witoslawski

Wanda Witoslawski

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Las Vegas Railway Express, Inc. (the “Company”) on Form 10-K for the period ended March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael A. Barron, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael A. Barron

Michael A. Barron

Chief Executive Officer/President

Date: June 10, 2013

EX-32.2

    ex32-2.htm
    
    
    

XML

(12) Discontinued Operations

12 Months Ended

Mar. 31, 2012

Notes

(12) Discontinued Operations:

(12)  Discontinued Operations:

As discussed in Note 1, prior to January 21, 2010, the Company had been actively engaged in acquiring underperforming mortgage loan portfolios and generating revenues from re-performing, sale of loans and fee revenue.  As of January 21, 2010, the Company changed its primary business and abandoned the prior business. Accordingly, the assets and liabilities and results of operation related to this business have been classified as discontinued operations in the financial statements for all periods presented. As a result, the prior period comparative financial statements have been restated. Prior to this decision, the loan business represented substantially all of the Company’s operating revenue.

Prior to the Company’s corporate restructuring in 2010, the Company had several accounts payable dating back to 2008 and prior (the “Liberty Capital Payables”). All of these Liberty Capital Payables were related to business operations which were discontinued in January 2010. In 2012, the Company updated its internal review of the status of the Liberty Capital Payables and recorded a $47,330 gain resulting from relief of liabilities that were cleared based on expiration of Nevada statutes of limitations. The gain is reflected as a gain from discontinued operations. There was no tax impact as the prior tax assets had a 100% valuation allowance resulting in no balance sheet or income statement adjustments for taxes.

The following table summarizes results from discontinued operations for the years ended March 31, 2012 and 2011:

		Year Ended
		March 31,		March 31,
		2012		2011
Revenues	$	4,315	$	52,506
Cost of sales		-		-
Gross profit		4,315		52,506
Operating Expenses:
Selling, general and administrative		-		4,528
Total expenses		-		4,528
Loss from discontinued operations		4,315		47,978
Other (expense) income
Interest expense		(32,649)		(31,831)
Write down of payables		47,330		-
Total other (expense) income		14,681		(31,831)
Net income from discontinued operations	$	18,996	$	16,147

The following table summarizes the liabilities classified as discontinued operations in the accompanying balance sheets. 

		2012		2011
Accounts payable and accrued expenses	$	622,603		684,302
Notes payable		148,060		150,060
Notes payable, related party		135,287		164,760
	$	905,950	$	999,122

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through July 9, 2012. 

XML

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)	12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Operating Expenses:
Compensation and payroll taxes	$ 1,222,013	$ 780,849
Selling, general and administrative	233,577	314,835
Professional fees	268,731	752,052
Depreciation and amortization	320
Total expenses	1,724,641	1,847,736
Loss from continuing operations	(1,724,641)	(1,847,736)
Other (expense) income
Interest income		3,000
Interest expense	(295,131)	(198,813)
Change in derivative liability	37,086
Loss on disposition of assets		(2,965)
Gain on extinguishment of debt		238,374
Total other (expense) income	(258,045)	39,596
Net loss from continuing operations before tax provision	(1,982,686)	(1,808,140)
Provision for income taxes	42,343
Net loss from continuing operations	(2,025,029)	(1,808,140)
Income from discontinued operations	18,996	16,157
Net loss	$ (2,006,033)	$ (1,791,983)
Net (loss) per share, continuing operations, basic and diluted	$ (0.05)	$ (0.05)
Net income (loss) per share, discontinued operations, basic and diluted
Net (loss) per share basic and diluted	$ (0.05)	$ (0.05)
Weighted average number of common shares outstanding, basic and diluted	43,680,249	36,253,005

XML

(5) Notes Payable

12 Months Ended

Mar. 31, 2012

Notes

(5) Notes Payable:

5)  Notes payable:

A summary of notes payable is as follows:

		March 31,		March 31,
		2012		2011
Notes payable - discontinued operations
Secured promissory notes,  dated June 25, 2008, to two	$	126,005	$	126,005
investors, bearing interest at 10% per annum, payable
September 1, 2010.
Unsecured promissory notes payable dated October 1, 2009
bearing interest at 10% per annum, payable September 1, 2010		22,055		24,055
Notes included in liabilities from discontinued operations	$	148,060	$	150,060
Notes payable - current operations
Unsecured promissory note,  dated  April 4, 2011, to
an investor bearing interest at 8% per annum, payable on
April 4, 2012.	$	97,266	$	-
Secured promissory notes,  dated  May 17, 2011 through
May 17, 2012 to an investor bearing interest at 8% per annum,
payable on May 17, 2012.		12,850		-
Secured promissory note,  dated August 15, 2011, to an
investor, bearing interest at 10% per annum, payable
February 11, 2012.		100,000		-
Secured promissory note,  dated  September 30, 2011, to
an investor bearing interest at 10% per annum, payable on
March 28, 2012.		50,000		-
Secured promissory notes,  dated  October 8, 2011,
to three investors bearing interest at 10% per annum,
payable on April 10, 2012.		225,000		-
Secured promissory note,  dated  January 25, 2012, to
an investor bearing interest at 10% per annum, payable on
demand, convertible to common shares at $0.10 per share.		100,000		-
Secured promissory note,  dated  February 24, 2012, to an
investor bearing interest at 10% per annum, payable on
demand, convertible to common shares at $0.10 per share.		200,000		-
Total outstanding notes payable from continuing operations	$	785,116	$	-

The Company is in default on notes payable made to investors that are included in liabilities of discontinued operations.  As of March 31, 2012, there has been no demand made for repayment of the notes or accrued interest.

XML

(13) Subsequent Events

12 Months Ended

Mar. 31, 2012

Notes

(13) Subsequent Events

(13)  Subsequent Event:

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through July 9, 2012. 

On April 11, 2012 the Company entered into Promissory Note Conversion Agreement with Jameson Capital LLC pursuant to which a promissory note with accrued interest in the total amount of $15,602.85 was converted to restricted common stock at the price of $0.05 per share totaling 312,057 shares.

On April 24, 2012 the Company issued 400,000 shares of common stock for Directors’ compensation.

On April 30, 2012 the Company entered into a Promissory Note Conversion Agreement with American Pension Services, Inc. Administrator for Gilbert H. Lamphere pursuant to which two promissory notes, in the total value of $300,000 were converted to restricted common stock at the price of $0.10 per share totaling 3,000,000 shares.

On April 30, 2012 the Company entered into a Promissory Note Conversion Agreement with Gilbert H. Lamphere pursuant to which two promissory notes, in the total value of $150,000, were converted to restricted common stock at the price of $0.10 per share totaling 1,500,000 shares.

On May 22, 2012 the Company issued 500,000 shares of Common Stock for Directors’ compensation and 1,000,000 shares were issued pursuant to an employment agreement.

On May 31, 2012 the Company issued 4,996,716 shares of common stock by Promissory Note Conversion Agreements with three entities and converting these notes and accrued interest at the price of $0.05 per share.

On June 4, 2012 the Company issued 600,000 shares of common stock for debt of $30,000.

On April 27, 2012 the Company commenced a private offering under a Private Placement Memorandum under Regulation D of the Securities Act of 1933 of up to aggregate number of 30,000,000 shares of common stock at the price of $0.05 totaling up to $1,500,000 worth of common stock.  As of June 22, 2012 the Company issued 22,400,000 shares of common stock for an aggregate purchase price of $1,120,000.

XML

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)	12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Net loss	$ (2,006,033)	$ (1,791,983)
Depreciation and amortization	320
Amortization of discounts on note payable	257,653	166,930
Gain on extinguishment of debt		(238,374)
Loss on disposition of assets		2,965
Deferred tax provision	42,343
Change in value of derivative liability	(37,086)
Stock issued and subscribed for services	127,493	477,894
Stock issued for compensation	477,866	67,577
Stock option compensation	80,522	80,522
Other current assets	(47,028)	50,000
Liabilities of discontinued operations, net	(93,172)	(349,438)
Accounts payable and accrued expenses	66,054	126,073
Net cash used in operating activities	(1,131,068)	(1,407,834)
Purchases of property and equipment	(3,200)
Net cash used in investing activities	(3,200)
Proceeds from sale of stock	383,254	1,269,001
Payments on related party notes payables		(20,725)
Proceeds from notes payable	788,333	175,000
Payments on note payable		(5,000)
Net cash provided by financing activities	1,171,587	1,418,276
Net change in cash	37,319	10,442
Cash, beginning of the year	16,313	5,871
Cash, end of the year	53,632	16,313
Interest paid		28,850
Warrants issued for debt	53,285	160,000
Stock issued for debt		154,432
Recission of stock previously issued for debt		$ 121,590

XML

(2) Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2012

Notes

(2) Summary of Significant Accounting Policies:

(2)  Summary of Significant Accounting Policies:

Basis of Presentation:

The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.    

Restatement:

The accompanying financial statements as of March 31, 2012 and 2011 and for the year ended March 31, 2012 have been restated to reflect a correction in the presentation of common stock subscribed related to the purchase of the train business, from a liability to stockholders’ equity.  The nature of this account is such that it will not be settled with cash or other assets, but rather it will be settled by issuance of a fixed number of the Company’s common stock.  Accordingly it should be classified in stockholders’ equity.

Additionally, the Company has determined that certain of the warrants outstanding had elements that qualified them as derivative liabilities instead of equity. And two of its notes payable also had embedded elements that required bifurcation and statement as derivative liabilities. Accordingly, it obtained a third party valuation of the warrants and embedded derivatives and reclassified them as derivative liabilities.

Additionally, the Company made corrections to the way it accounts for stock based compensation

Finally, the Company has determined that since goodwill is amortized for income taxes, but not for books, there exists a temporary difference in the carrying amount of this asset between book and tax. Furthermore, as it cannot be concluded that this difference can be absorbed by the Company’s net operating loss carryforward, it is necessary to record a deferred income tax liability.

The impact of the restatements described above is as follows.

As of March 31, 2012:
	As Previously
	Reported	Adjustments	Restated
Notes payable	$           788,333	$     (3,217)	$           785,116
Derivative liability	-	170,499	170,499
Stock subscription payable	640,000	(640,000)	-
Total current liabilities	2,570,292	(472,718)	2,097,574
Deferred tax liability	-	42,343	42,343
Total liabilities	2,570,292	(430,375)	2,139,917
Common stock subscribed	-	640,000	640,000
Additional paid in capital	9,995,692	(23,705)	9,971,987
Retained earnings	(11,623,612)	(185,920)	(11,809,532)
Total stockholders' deficit	(1,623,055)	(430,375)	(1,192,680)
For the year ended March 31, 2012:
	As Previously
	Reported	Adjustments	Restated
Operating Expenses:
Compensation and payroll taxes	$        1,128,689	$     93,324	$        1,222,013
Selling, general and administrative	233,577	-	233,577
Professional fees	268,731	-	268,731
Depreciation expense	320	-	320
Total expenses	1,631,317	93,324	1,724,641
Loss from operations	(1,631,317)	(93,324)	(1,724,641)
Other income (expense):
Change in derivative liability	-	37,086	37,086
Interest income (expense)	(207,792)	(87,339)	(295,131)
Total other income (expense)	(207,792)	(50,253)	(258,045)
Net loss from continuing operations before tax provision	(1,839,109)	(143,577)	(1,982,686)
Provision for income taxes	-	42,343	42,343
Net loss from continuing operations	(1,839,109)	(185,920)	(2,025,029)
Discontinued operations:
Income (loss) from discontinued operations, net of income tax	18,996		18,996
Net loss	$      (1,820,113)	$ (185,920)	$      (2,006,033)
As of March 31, 2011:
	As Previously
	Reported	Adjustments	Restated
Stock subscription payable	$           640,000	$ (640,000)	$                     -
Total liabilities	1,809,077	(640,000)	1,169,077
Common stock subscribed	210,000	640,000	850,000
Total stockholders' deficit	(949,067)	640,000	(309,067)

Going Concern:

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has net losses of $2,006,033 and $1,791,983 for the years ended March 31, 2012 and 2011, respectively. Although a substantial portion of the Company’s cumulative net loss is attributable to discontinued operations, management believes that it will need additional equity or debt financing to be able to implement the business plan.  The Company has no operating revenues and is currently dependent on external debt financing and/or sale of equities to fund operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern.

Management is attempting to raise additional equity to sustain operations until it can market its services and achieves profitability.  The successful outcome of future activities cannot be determined at this time and there are no assurances that, if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Risks and Uncertainties:

The Company operates in an industry that is subject to intense competition and potential government regulations.  Significant changes in regulations and the ability of the Company to establish contracts with rail services providers could have a materially adverse impact on the Company’s operations.

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods.

Cash and Cash Equivalents:

The Company considers all highly liquid holdings with maturities of three months or less at the time of purchase to be cash equivalents.

Property and Equipment:

Property and equipment are stated at cost, less accumulated depreciation.  Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, ranging from three to thirty years. Total depreciation expense related to property and equipment was $320 and $0 for the years ended March 31, 2012 and 2011, respectively. Maintenance and repairs are charged to operations when incurred.  Major betterments and renewals are capitalized.  Gains or losses are recognized upon sale or disposition of assets.

Intangible Assets:

Goodwill represents the excess of purchase price over tangible and intangible assets acquired, less liabilities assumed arising from the acquisition of the train business on November 23, 2009.  Goodwill is not amortized, but is reviewed for potential impairment on an annual basis at the reporting unit level.  On March 31, 2012, as required by the “Intangibles – Goodwill and Other” topic of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”), the Company conducted an analysis of the goodwill on its single reporting unit using the Company’s market capitalization (based on Level 1 inputs). For the fiscal years ending March 31, 2012 and 2011, our assessment for impairment found that due to the continued progress toward the measurement goals of the business plan that there is no impairment of goodwill. The Company has no accumulated impairment losses on goodwill.

Basic and Diluted Loss Per Share:

In accordance with FASB ASC 260, “Earnings Per Share,” the basic loss per common share is computed by dividing the net loss available to common stockholders after reducing net income by preferred stock dividends, by the weighted average common shares outstanding during the period.  Diluted earnings per share reflect per share amounts that would have resulted if diluted potential common stock had been converted to common stock.  Common stock equivalents have not been included in the earnings per share computation for the years ended March 31, 2012 and 2011 as the amounts are anti-dilutive.  As of March 31, 2012 and 2011, the Company had 2,000,000 outstanding options which were excluded from the computation of net income per share because they are anti-dilutive.  As of March 31, 2012, the Company also had convertible debt that was convertible into 3,000,000 shares of common stock which was excluded from the computation.  As of March 31, 2012, the Company had 1,500,000 outstanding warrants which were also excluded from the computation because they were anti-dilutive.

Income Taxes:

The Company accounts for income taxes under FASB ASC 740 "Income Taxes."  Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  The deferred tax assets of the Company relate primarily to operating loss carryforwards for federal income tax purposes. A full valuation allowance for deferred tax assets has been provided because the Company believes it is not more likely than not that the deferred tax asset will be realized. Realization of deferred tax assets is dependent on the Company generating sufficient taxable income in future periods.

The Company’s goodwill is deductible for tax but not for book. This difference creates a deferred tax liability, which cannot be matched with the Company’s deferred tax asset. As a result, the Company cannot net it with its net operating loss carryforward and therefore records a deferred tax liability to reflect the future non-deductibility of its goodwill asset. The deferred tax liability at March 31, 2012 and 2011 was $42,343 and $0, respectively.

The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2012 and 2011, the Company has not established a liability for uncertain tax positions.

Stock Based Compensation:

The Company issues stock, options and warrants as share-based compensation to employees and non-employees.

The Company accounts for its share-based compensation to employees in accordance FASB ASC 718.  Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. 

The Company accounts for share-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50 “Equity - Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The final fair value of the share-based payment transaction is determined at the performance completion date. For interim periods, the fair value is estimated and the percentage of completion is applied to that estimate to determine the cumulative expense recorded.

The Company values compensatory stock based on the market price on the measurement date. As described above, for employees this is the date of grant, and for non-employees, this is the date of service completion.

The Company values stock options and warrants that do not qualify as derivative instruments using the Black-Scholes option pricing model.  There were no warrants or options granted during the years ended March 31, 2012 or 2011 for which the Company used the Black-Scholes model.

Certain compensatory warrants qualify as derivative instruments and are valued using the binomial lattice method. See Note 7 below regarding accounting for derivative liabilities.

Fair Value of Financial Instruments:

The Company's financial instruments as defined by FASB ASC 825-10-50 include cash, trade accounts receivable, accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at March 31, 2012.  The amounts shown for notes payable approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.

FASB ASC 820 defines fair value, establishes a framework for measuring fair value, in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. These assumptions may have a significant effect on our estimates of fair value, and the use of different assumptions as well as changes in market conditions could have a material effect on our results of operations or financial condition.

New Accounting Pronouncements:

Issued

In December 2011, the FASB issued Account Standards Update (“ASU”) 2011-12, “Comprehensive Income - Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05,” to defer the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. All other provisions of this update, which are to be applied retrospectively, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this accounting standard update will become effective for the reporting period beginning January 1, 2012. The adoption of this guidance will not have a material impact on the Company’s financial position, results of operations or cash flows.

In December 2011, the FASB issued ASU 2011-10, “Derecognition of in Substance Real Estate—a Scope Clarification” to clarify that when a parent (reporting entity) ceases to have a controlling financial interest (as described in ASC subtopic 810-10, Consolidation) in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in subtopic 360-20, Property, Plant and Equipment, to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness. Under this new guidance, even if the reporting entity ceases to have a controlling financial interest under subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary’s operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt. This amendment is applicable to us prospectively for deconsolidation events occurring after June 15, 2012. The adoption of this accounting standard update will become effective for the reporting period beginning July 1, 2012. The adoption of this guidance will not have a material impact on the Company’s financial position, results of operations, or cash flows.

Other recent accounting pronouncements did not, or are not believed by management to, have a material impact on the Company's present or future financial statements

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(6) Commitments and Contingencies

12 Months Ended

Mar. 31, 2012

Notes

(6) Commitments and Contingencies:

(6)  Commitments and Contingencies:

Operating Leases

The Company leases its facilities under a rental agreement that expires in January 31, 2013.  The rental agreement includes common area maintenance, property taxes and insurance.  It also provided eight months abatement of the base rent.

Future annual minimum payments under operating leases are as follows:

Years ending March 31,
2013	$	58,400
Total	$	58,400

Rental expense under operating leases for the years ended March 31, 2012 and 2011 was $51,522 and $59,234, respectively.

Litigation

In the ordinary course of business, the Company may be or has been involved in legal proceedings from time to time. As of the date of this annual report on Form 10-K, there have been no material changes to any legal proceedings relating to the Company which previously were not reported.

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(4) Property and Equipment

12 Months Ended

Mar. 31, 2012

Notes

(4) Property and Equipment:

(4)  Property and Equipment:

Property and equipment consisted of the following as of March 31, 2012 and 2011. 

		March 31,		March 31,
		2012		2011
Furniture and fixtures	$	112,413	$	112,413
Equipment		177,023		173,823
Leasehold improvements		63,250		63,250
Software		30,722		30,722
		383,408		380,208
Less: accumulated depreciation		(188,689)		(188,369)
Less: impairment of assets		(191,839)		(191,839)
	$	2,880	$	-

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BALANCE SHEET PARENTHETICAL (USD $)	Mar. 31, 2012	Mar. 31, 2011
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock par value	$ 0.0001	$ 0.0001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	48,653,350	39,201,498
Common stock shares outstanding	48,653,350	39,201,498

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(9) Stock Option Plan

12 Months Ended

Mar. 31, 2012

Notes

(9) Stock Option Plan:

(9)  Stock Option Plan:

The Company’s 2011 Stock Option Plan provides for the grant of 20,000,000 incentive or non-statutory stock options to purchase common stock. Employees, who share the responsibility for the management growth or protection of the business of the Company and certain Non-Employee (“Selected Persons”), are eligible to receive options which are approved by a committee of the Board of Directors.  These options vest over five years and are exercisable for a ten-year period from the date of the grant.

As of March 31, 2012 and 2011, the Company had 2,000,000 options outstanding.  The fair value for these options was estimated at the date of grant, November 1, 2008 using a Black-Scholes option pricing model with the following weighted-average assumptions for an estimated 2.5 year term; risk free rate of 3.5%; no dividend yield; volatility factors of the expected market price of the Company’s common stock of (51%), the market value of the Company’s stock on grant date was $0.45.

The Company has recorded employee shared based compensation of $558,388 and $148,099 for March 31, 2012 and 2011, respectively.  At March 31, 2012, the Company had approximately $80,522 of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 2 years.  No options were exercised during the years ended March 31, 2012.  

A summary of the Company’s stock option activity follows:

	March 31, 2012				March 31, 2011
			Weighted				Weighted
			Average				Average
			Exercise				Exercise
	Options		Price		Options		Price
Outstanding - March 31, 2011		2,000,000	$	0.50		2,000,000	$	0.50
Granted		-		-		-		-
Exercised		-		-		-		-
Cancelled		-		-		-		-
Outstanding - March 31, 2012		2,000,000	$	0.50		2,000,000	$	0.50
Exercisable - end of year		1,600,000	$	0.50		1,200,000	$	0.50

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $)	Common Stock	Subscriptions	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Mar. 31, 2010	$ 2,289	$ 640,000	$ 6,464,307	$ (8,011,516)	$ (904,920)
Balance - Shares at Mar. 31, 2010	22,889,686
Stock issued for cash	805		1,268,196		1,269,001
Stock issued for cash - Shares	8,049,411
Stock issued from subscriptions payable	400		159,600		160,000
Stock issued from subscriptions payable - Shares	4,000,000
Stock issued for services	239	210,000	267,655		477,894
Stock issued for services - Shares	2,388,416
Stock issued for compensation	45		67,532		67,577
Stock issued for compensation - Shares	454,615
Stock issued for debt	145		154,287		154,432
Stock issued for debt - Shares	1,451,174
Stock issued debt discount	240		299,760		300,000
Stock issued debt discount - Shares	2,400,000
Rescission of stock issued for debt	(243)		(121,347)		(121,590)
Rescission of stock issued for debt - Shares	(2,431,804)
Stock based compensation cost			80,522
Net loss				(1,791,983)	(1,791,983)
Balance at Mar. 31, 2011	3,920	850,000	8,640,512	(9,803,499)	(309,067)
Balance - Shares at Mar. 31, 2011	39,201,498
Stock issued for cash	379		382,875		383,254
Stock issued for cash - Shares	3,785,023
Stock issued from subscriptions payable	60	(210,000)	209,940
Stock issued from subscriptions payable - Shares	600,000
Stock issued for services	98		127,395		127,493
Stock issued for services - Shares	982,741
Warrants issued for debt discount (restated)			53,285		53,285
Recission of stock issued to former officer	(25)		(37,475)		(37,500)
Recission of stock issued to former officer - Shares	(250,000)
Stock issued for compensation (restated)	433		514,933		515,366
Stock issued for compensation (restated) - Shares	4,334,268
Stock based compensation cost			80,522
Net loss				(2,006,033)	(2,006,033)
Balance at Mar. 31, 2012	$ 4,865	$ 640,000	$ 9,971,987	$ (11,809,532)	$ (1,192,680)
Balance - Shares at Mar. 31, 2012	48,653,530

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2012	Mar. 31, 2011
Current assets:
Cash	$ 53,632	$ 16,313
Other current assets	47,028
Total current assets	100,660	16,313
Property and equipment, net of accumulated depreciation	2,880
Other assets
Goodwill	843,697	843,697
Total other assets	843,697	843,697
Total assets	947,237	860,010
Current liabilities
Short term notes payable	785,116
Accounts payable and accrued expenses	236,009	169,955
Derivative liability	170,499
Liabilities of discontinued operations	905,950	999,122
Total current liabilities	2,097,574	1,169,077
Deferred tax liability	42,343
TOTAL LIABILITIES	2,139,917	1,169,077
Commitments and contingencies
Common stock subscribed	640,000	850,000
Common stock, $0.0001 par value, 200,000,000 shares authorized, 48,653,350 and 39,201,498 shares issued and outstanding as of March 31, 2012 and 2011, respectively	4,865	3,920
Additional paid-in capital	9,971,987	8,640,512
Accumulated deficit	(11,809,532)	(9,803,499)
Total stockholders' deficiency	(1,192,680)	(309,067)
Total liabilities and stockholders' deficiency	$ 947,237	$ 860,010

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(8) Equity

12 Months Ended

Mar. 31, 2012

Notes

(8) Equity:

(8)  Equity:

The Company is authorized to issue 200,000,000 shares of common stock.   There were 48,653,530 and 39,201,498 shares of common stock outstanding as of March 31, 2012 and 2011, respectively.  The holders of common stock are entitled to one vote per share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election of directors.  The holders of common stock are entitled to any dividends that may be declared by the Board of Directors out of funds legally available subject to the prior rights of holders of any outstanding shares of preferred stock and any contractual restrictions we have against the payment of dividends on common stock. In the event of our liquidation or dissolution, holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock.  Holders of common stock have no preemptive or other subscription rights and no right to convert their common stock into any other securities.

During the year ended March 31, 2012, the Company issued, in a private placement, 3,785,023 shares of its common stock, for a total of $383,254.  During the year ended March 31, 2011, the Company issued 8,049,411 shares of common stock for a total of $1,269,001. 

During the year ended March 31, 2012, the Company issued 982,741 shares of its common stock for consulting services totaling $127,493.  During the year ended March 31, 2011, the Company issued 2,388,416 shares of common stock for consulting services totaling $477,894.  The fair value of the consulting services was determined by the closing price of the stock on date of issuance.

During the year ended March 31, 2012, the Company issued 4,334,268 shares of its common stock as compensation for employees valued at $515,366.  During the year end March 31, 2011, the Company issued 454,615 shares of its common stock as compensation for employees valued at $67,577.  The fair value of the employee services was determined by the closing price of the stock on date of issuance or the employment agreement in force at the date of issuance.

During the year ended March 31, 2011, the Company issued 4,000,000 shares of its common stock as part of its Asset Purchase Agreement in the acquisition of railway assets.  Stock is issued upon the completion of certain agreements.  The remaining 16,000,000 shares are to be issued upon the completion of the agreements, which are deemed necessary for the continued operation of the Company’s proposed railway service.

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(11) Related-party Transactions

12 Months Ended

Mar. 31, 2012

Notes

(11) Related-party Transactions:

(11)  Related-Party Transactions:

Michael A. Barron, our CEO and President, is a 100% owner and President of Allegheny Nevada Holdings Corporation, “Allegheny”.  The Company is indebted to Allegheny by a certain promissory note, dated January 6, 2009, of which Allegheny loaned the Company funds for working capital needs.  Said Agreement was amended on October 1, 2009 and a portion was converted to 1,564,719 shares of the Company’s common stock at $0.05 per share.  As of January 15, 2011, the amendment was rescinded, returning the shares to the Company and restoring the note balance.  No gain or loss was recognized in the amendment or rescission.  As of March 31, 2012 and 2011, the balance of the note was $89,186 and $107,563, respectively.

On November 23, 2009, the Company entered into an Asset Purchase Agreement with Las Vegas Railway Express, a Nevada Corporation, of which Allegheny is owner of 28.6% and Mr. Barron is a 28.6% owner, independent of Allegheny.  On January 21, 2010, by shareholder approval the Company acquired Las Vegas Railway Express for 20,000,000 shares of the Company’s stock, of which 4,000,000 has been issued on April 23, 2010.  The remaining 16,000,000 shares are to be issued upon the completion of certain agreements.  These agreements are deemed necessary for the continued operation of the Company’s proposed railway service.

As of March 31, 2012 and 2011, Allegheny Nevada Holdings had a beneficial ownership in the Company of 4.12% and 0%, respectively.

As of March 31, 2012 and 2011, Mr. Barron had accrued wages of $71,563 and $65,734, respectively.

Dianne David Barron, our Company’s Manager of Station Development is the spouse of our Chief Executive Officer, Michael A. Barron.

Joseph Cosio-Barron, former President, Secretary and Director of the Company is a 100% owner of CBS Consultants “CBS”, a Nevada Corporation.  CBS had a 22.9% ownership of Las Vegas Railway Express at the time of acquisition on October 1, 2009, the Company entered into a promissory note with Mr. Cosio-Barron for $86,709.  The Company converted 867,085 shares of the Company’s stock at $0.05 per share, resulting in a balance at March 31, 2012 and 2011 of  $46,102 and $57,198, respectively.   As of March 31, 2012 and 2011, Mr. Cosio-Barron had accrued wages of $57,800 and $51,971, respectively.

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(7) Derivative Instruments

12 Months Ended

Mar. 31, 2012

Notes

(7) Derivative Instruments:

(7)  Derivative Instruments:

The Company has certain warrants and notes payable with elements that qualify as derivatives. The warrants have anti-dilution clauses that prevent calculation of the ultimate number of shares that may be issued upon exercise, and two of the notes payable had a variable conversion feature that similarly prevented the calculation of the number of shares into which they were convertible.

The derivative liability, as it relates to the different instruments, is shown in the following table.

	Year Ended March 31, 2012
		Conversion Feature
		of
	Warrants	Notes Payable	Total
Beginning balance, March 31, 2011	$              -	$               -	$             -
Additional issuances	171,877	35,708	207,585
Exercised/converted	-	-	-
Change in derivative liability	(37,086)	-	(37,086)
Ending balance, March 31, 2012	$     134,791	$        35,708	$    170,499

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(1) Description of Business

12 Months Ended

Mar. 31, 2012

Notes

(1) Description of Business:

(1)  Description of Business:

Las Vegas Railway Express, Inc.  (the “Company”, “we”, “us”, or “our”) was formed as a Delaware corporation in March 9, 2007 as Corporate Outfitters, Inc., a development stage company. On November 3, 2008, pursuant to a common stock purchase agreement, the Company acquired 100% of the outstanding capital stock of Liberty Capital Asset Management, a Nevada corporation, formed in July of 2008 as a holding company for all the assets of CD Banc LLC in contemplation of the company going public via a reverse merger into a publicly trading corporation.

CD Banc LLC was formed in 2003 as a Nevada limited liability corporation with the purpose of acquiring real estate assets and holding them for long-term appreciation.

The Company business plan is to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. On January 21, 2010, the Company completed a share exchange and asset purchase agreement with Las Vegas Railway Express, a Nevada Corporation, and subsequently changed its name from Liberty Capital Asset Management, Inc. to Las Vegas Railway Express, Inc.

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(10) Income Taxes

12 Months Ended

Mar. 31, 2012

Notes

(10) Income Taxes:

 (10)  Income Taxes:

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carry forwards.  The tax effects of significant items comprising the Company’s deferred taxes as of March 31, 2012 and 2011 are as follows.

		March 31,		March 31,
Deferred tax assets		2012		2011
Net operating loss carryforward	$	6,243,339	$	5,577,000
Stock option compensation		27,377		-
Warrants issued in connection with debt		18,117		-
Total deferred tax assets		(6,288,833)		(5,577,000)
Net deferred tax assets	$	-	$	-
Deferred tax liabilities
Goodwill	$	42,343	$	-
Net deferred tax liabilities	$	42,343	$	-

A reconciliation of the provision for income taxes with the expected income tax computed by applying the Federal statutory income tax rate to income before provision for income taxes for the years ended March 31, 2012 and 2011 are as follows. 

		March 31,		March 31,
		2012		2011
Income tax benefit computed at the Federal statutory rate of 34%	$	(682,051)	$	(487,000)
Increase in valuation allowance		669,442		487,000
Other		12,609		-
Amortization of goodwill		42,343		-
Provision for income taxes	$	42,343	$	-

ASC 740 requires that the tax benefit of net operating losses carry forwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.”  Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carry forward period.  Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a 100% valuation allowance against the asset amounts.  

Any uncertain tax positions would be related to tax years that remain open and subject to examination by the relevant tax authorities.  The Company has no liabilities related to uncertain tax positions or unrecognized benefits as of the year end March 31, 2012 or 2011.  The Company has not accrued for interest or penalties associated with unrecognized tax liabilities. 

As of March 31, 2012, the Company had federal net operating loss carry forwards of approximately $18.3 million, which may be available to offset future taxable income for tax purposes.  These net operating loss carry forwards begin to expire in 2027 through 2032.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

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Document and Entity Information (USD $)	12 Months Ended
	Mar. 31, 2012	Jun. 22, 2012	Sep. 30, 2011
Document and Entity Information:
Entity Registrant Name	LAS VEGAS RAILWAY EXPRESS, INC.
Document Type	10-K
Document Period End Date	Mar. 31, 2012
Amendment Flag	false
Entity Central Index Key	0001405227
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		83,362,303
Entity Public Float			$ 3,321,267
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY