	September 30, 2011		March 31, 2011
	(Unaudited)
April 2, 2008 (a)	$	-	$	120,000
April 9, 2008 (b)		-		120,000
April 14, 2008 (c)		60,000		60,000
May 19, 2008 (d)		-		33,000
August 5, 2008 (e)		55,000		55,000

Total	$	115,000	$	388,000

(a) On June 30, 2011, another accredited investor entered into a Debt Exchange Agreement with the original holder of this short-term bridge loan with principal balance of $120,000 plus accrued interest of $53,951 along with the May 19, 2008 bridge loan with principal balance of $33,000 plus accrued interest of $14,986 (see below in the May 19, 2008 financing section) for a total of $221,937. The new debt holder desired to exchange the two original bridge loans into the issuance of a long term convertible note with a maturity date of September 17, 2012 and an interest rate of 10%. As part of this agreement, the Company issued the new debt holder a warrant to purchase 20,000,000 shares of the Company’s common stock at an exercise price of $.02 per share with a life of five years and cancelled the personal guarantee of Roy Warren, CEO, for these two original loans. Both the note and warrant have similar rights as all other convertible notes and associated warrants. The Company is no longer in default of these previous two bridge loans.

(b) On May 6, 2011, the holder of this bridge loan and the Company agreed to convert the original $120,000 principal amount of the short-term bridge loan into six million (6,000,000) shares of restricted common stock. The bridge loan is now considered paid and no longer outstanding, and the personal guarantee of Roy Warren, CEO, is cancelled.

(c) On April 14, 2008, the Company entered into a financing arrangement that provided for the issuance of a $60,000 face value short-term bridge loan note payable due July 15, 2008 plus warrants to purchase (i) 5,000 shares of our common stock and (ii) additional warrants to purchase 5,000 shares of our common stock, representing an aggregate 10,000 shares. We determined that the warrants issued in this financing arrangement meet the conditions for equity classification so we allocated the proceeds of the debt between the debt and the detachable warrants based on the relative fair value of the debt security and the warrants in accordance with the FASB Accounting Standards Codification.

Date	Terms	Consideration
June 2008	Extend maturity to July 19, 2008	Warrants indexed to 2,500 shares of common stock
September 2008	Extend maturity to December 15, 2008	6,000 shares of restricted stock
January 2009	Extend maturity date to April 30, 2009	1) Warrants indexed to 6,000 shares of common stock 2) 6,000 shares of restricted stock

On December 15, 2008, we were in default on the notes for non-payment of the required principal payment. The remedy for event of default was acceleration of principal and interest so they were recorded at face value.

As of September 30, 2011, this April 14, 2008 note was considered in default for non-payment. The Company is negotiating with the debt holder to extend the due date of the note. It was determined that the extension warrants required liability accounting and are being recorded at fair value with changes in fair value being recorded in derivative (income) expense. The warrants contain full-ratchet protection so the exercise price of the warrants was reduced to $3.30 when the Company issued additional convertible instruments with a lower conversion rate on December 18, 2008. The exercise price of the warrants was reduced again to $1.00 when the Company issued additional convertible instruments with a lower conversion rate on January 27, 2009. The exercise price of the warrants was reduced again to $.494 when the Company issued additional convertible instruments with a lower conversion rate in November 2009. The exercise price of the warrants was reduced again to $.16 when the Company issued additional convertible instruments with a lower conversion rate in January 2010.

(d) On June 30, 2011, another accredited investor entered into a Debt Exchange Agreement with the original holder of this short-term bridge loan with principal balance of $33,000 plus accrued interest of $14,986 along with the April 2, 2008 bridge loan with principal balance of $120,000 plus accrued interest of $53,951 (see above in the April 2, 2008 financing section) for a total of $221,937. The new debt holder exchanged the two original bridge loans for a long term convertible note with a maturity date of September 17, 2012 and an interest rate of 10%. As part of this agreement, the Company issued the new debt holder a warrant to purchase 20,000,000 shares of the Company’s common stock at an exercise price of $.02 per share with a life of five years and cancelled the personal guarantee of Roy Warren, CEO, for these two original loans. Both the note and warrant have the same rights as all other convertible notes and associated warrants. The Company is no longer in default of these previous two bridge loans.

Information and significant assumptions as of September 30, 2011 and March 31, 2011 for the extension warrants related to the April 14, 2008 financing which is required to be recorded at fair value each reporting period:

	January 27, 2009
	Extension Warrants
	September 30,			March 31,
		2011			2011
	(unaudited)
Estimated fair value of underlying common share	$	0.0006		$	0.02
Conversion or strike price	$	1.00		$	1.00
Volatility (based upon Peer Group)		140.00	%		145.00	%
Equivalent term (years)		2.33			2.83
Risk-free rate		0.31	%		1.20	%
Dividends		-			-

(e) On August 5, 2008, the Company entered into a financing arrangement that provided for the issuance of a $55,000 face value short term bridge loan, due September 5, 2008, plus warrants to purchase (i) 5,000 shares of our common stock at an exercise price of $10.00 and (ii) additional warrants to purchase 5,000 shares of our common stock at an exercise price of $15.00, representing an aggregate 10,000 shares. The due date of the loan was extended to December 15, 2008 with 5,500 restricted shares of common stock issued as consideration. On December 15, 2008, we were in default on the notes for non-payment of the required principal payment. Remedies for an event of default are acceleration of principal and interest. There were no incremental penalties for the event of default; however, the notes were recorded at face value.

We also evaluated the warrants to determine if they required liability or equity accounting. The warrants issued in conjunction with the financing are redeemable for cash upon the occurrence of acquisition, merger or sale of substantially all assets of the Company in an all cash transaction; therefore, the FASB Accounting Standards Codification requires that they be recorded as derivative liabilities on our balance sheet and marked to fair value each reporting period. We allocated the proceeds of the debt to the warrants, and the remaining portion was allocated to the debt instrument. The fair value of the warrants using the Black-Scholes pricing model was $62,700 and since the fair value of the warrants exceeded the proceeds from the financing, we recorded a day-one derivative loss of $12,700.

On January 15, 2009, we extended the term on the note from December 15, 2008 to April 30, 2009, and we issued investor warrants to purchase 5,500 shares of our common stock and 5,500 shares of restricted common stock as consideration for the extension. We recorded a loss on extinguishment of $2,112 in accordance with the FASB Accounting Standards Codification.

The warrants contain full-ratchet protection so the exercise price of the warrants was reduced to $3.30 when the Company issued additional convertible instruments with a lower conversion rate on December 18, 2008. The exercise price of the warrants was reduced again to $1.00 when the Company issued additional convertible instruments with a lower conversion rate on January 27, 2009. The exercise price of the warrants was reduced again to $.494 when the Company issued additional convertible instruments with a lower conversion rate in November 2009. The exercise price of the warrants was reduced again to $.16 when the Company issued additional convertible instruments with a lower conversion rate on January 28, 2010.

	Warrants						Extension Warrants
	September 30,			March 31,			September 30,			March 31,
		2011			2011			2011			2011
	(unaudited)						(unaudited)
Estimated fair value of underlying common share	$	0.0011		$	0.02		$	0.0011		$	0.02
Conversion or strike price	$	10.00		$	10.00		$	1.00		$	1.00
Volatility (based upon Peer Group)		150.00	%		100.00	%		140.00	%		145.00	%
Equivalent term (years)		0			0.35			2.33			2.83
Risk-free rate		0.00	%		0.121	%		0.306	%		1.20	%
Dividends		--			--			--			--