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Derivative Instruments (Tables)

9 Months Ended

Dec. 31, 2014

Derivative Instruments

Projected volatility curve for the valuation dates

The Company’s 2013 derivative warrants were valued at each period ending date with the following assumptions:

·??	The stock price would fluctuate with the Company projected volatility.

·??	The stock price would fluctuate with an annual volatility. The projected volatility curve was based on historical volatilities of the Company for the valuation periods.

·??	The Holder would exercise the warrant as they become exercisable (effective registration is projected 4 months from issuance and the earliest exercise is projected 180 days from issuance) at target prices of 2 times the higher of the projected reset price or stock price.

·??	The Holder would exercise the warrant at maturity if the stock price was above the project reset prices.

·??	A 100% probability of a reset event and a projected financing each quarter for 3 years at prices approximating 93% of market

·??	The Warrants with an exercise price of $0.25 exercise price is projected to reset to $0.047 at maturity; the Warrants with an exercise price of $0.20 per share is projected to reset to $0.043 at maturity

·??	No warrants have expired. Warrants with full reset feature issued during this period ending 12/31/2014

·??	The projected volatility curve for the valuation dates was:

	1 Year		2 Year			3 Year			4 Year			5 Year

August 6, 2012	129%		178%			218%			252%			281%

September 30, 2012	127%		173%			211%			244%			272%

March 31, 2013	122%		167%			205%			236%			264%

March 31, 2014	104%		168%			202%			233%			261%

December 31, 2014	112%		168%			202%			233%			261%

Fair Value Of Derivative Warrants

Company’s common stock, including net transfers in and/or out, of derivative warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

			Fair Value Measurement Using Level 3 Inputs
			Derivative warrants Assets (Liability)				Total

Balance, March 31, 2013		$	(486,113	)		$	(486,113	)

Total gains or losses (realized/unrealized) included in:

Net income (loss)			(5,290,703	)			(5,290,703	)

Other comprehensive income (loss)			-				-

Purchases, issuances and settlements			385,192				385,192

Transfers in and/or out of Level 3			-				-

Balance, March 31, 2014			(5,391,624	)			(5,391,624	)

Total gains or losses (realized/unrealized) included in:

Net income (loss)			1,215,623				1,215,623

Other comprehensive income (loss)			-				-

Purchases, issuances and settlements			1,709,657				1,709,657

Transfers in and/or out of Level 3			-				-

Balance, December 31, 2014		$	(2,466,344	)		$	(2,466,344	)

Summarizes the Company's derivative warrant activity

The table below summarizes the Company’s derivative warrant activity:

		Warrant Activities																APIC				(Gain) Loss
		Derivative Shares				Non-derivative Shares				Total Warrant Shares				Fair Value of Derivative Warrants				Reclassification of Derivative Liability				Change in Fair Value of Derivative Liability

Derivative warrant at March 31, 2013			2,951,424				2,281,753				5,233,177				(486,113	)

Issuance of warrants			42,302,198				1,247,076				42,549,274				(472,374	)			-				-

Exercise of warrants			(12,144,847	)			-				(12,144,847	)			857,566				-				-

Mark to market															(5,290,703	)							5,290,703

Derivative warrant at March 31, 2014			33,108,775				3,528,829				36,637,604				(5,391,624	)

Issuance of warrants			10,336,097				5,184,353				15,520,450				(2,493,287	)			-				-

Exercise of warrants			(23,103,575	)			-				(23,103,575	)			4,202,944				-				-

Mark to market															1,215,623								1,215,623

Derivative warrant at December 31, 2014			20,341,297				8,713,182				36,637,604				(2,466,344	)

Schedule of summary of the Company's warrant Activities

The table below summarizes the Company’s warrant activities:

		Number of Warrant Shares				Exercise Price Range Per Share				Weighted Average Exercise Price				Fair Value at Date of Issuance				Aggregate Intrinsic Value

Balance, March 31, 2014			36,637,604			$	0.053365 - 0.30			$	0.05436			$	680,894			$	-

Granted			15,520,450				0.05 - 0.45				0.053365				159,266				-

Canceled			-				-				-				-				-

Exercised			(23,103,575	)			0.041 - 0.053365				0.14291				(143,944	)			-

Expired			-				-				-				-				-

Balance, December 31, 2014			29,054,479			$	0.010 - 0.30			$	0.14291			$	696,216			$	-

Earned and exercisable, December 31, 2014			29,054,479			$	0.010 - 0.30			$	0.14291			$	696,216			$	-

Unvested, December 31, 2014			-			$	-			$	-			$	-			$	-

Schedule of information concerning outstanding and exercisable warrants

The following table summarizes information concerning outstanding and exercisable warrants as of December 31, 2014:

			Warrants Outstanding							Warrants Exercisable
Range of Exercise Prices			Number Outstanding		Average Remaining Contractual Life (in years)		Weighted Average Exercise Price			Number Exercisable		Average Remaining Contractual Life (in years)		Weighted Average Exercise Price

$0.0426 - 0.45			29,054,479		4.95		$	0.14291		19,654,479		3.97		$	0.15928

$0.0426 - 0.45			29,054,479		4.95		$	0.14291		19,654,479		3.97		$	0.15928

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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