10-K
2012-03-31
false
ECRYPT TECHNOLOGIES, INC.
0001449574
--03-31
135773552
0
Smaller Reporting Company
No
No
No
2012
FY
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>1. </b><b>Nature of Operations</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">eCrypt Technologies Inc., a Colorado corporation (“the Company”), was incorporated on April 19, 2007. The Company develops and sells encryption software which secures the transmission of, storage of, and access to digital information. Software applications range from device based (for Personal Digital Assistants (“PDAs”), wireless handheld devices, laptop and desktop computers, pocket computers, cellular phones, smartphones, and other file storage devices), to server-based encryption software for email servers and for file-store server.</p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>2. Significant Accounting Policies</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Basis of Presentation</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”). </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has limited operations and in accordance with FASB ASC 915-10, “Development Stage Entities”, the Company is considered a development stage company. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Use of Estimates</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Uncertainty as a Going Concern</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The accompanying financial statements have been prepared assuming that <font style="TEXT-DECORATION:none; text-underline:none">the Company</font> will continue as a going concern. However, <font style="TEXT-DECORATION:none; text-underline:none">the Company</font> has suffered recurring losses from operations since inception which raises substantial doubt about its ability to continue as a going concern.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company’s ability to continue as a going concern is dependent upon its ability to generate profitable operations in the future and/or obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional capital through a private placement and public offering of its common stock. These plans, if successful, will mitigate the factors which raise substantial doubt about <font style="TEXT-DECORATION:none; text-underline:none">the Company</font>’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Cash, Cash Equivalents and Investments</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Cash equivalents consist of highly liquid investments with original maturities at the date of purchase of three months or less. Short term investments mature in less than one year from the balance sheet date.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company places its cash and short-term investments with financial institutions with high credit quality investments in accordance with its investment policy designed to protect the principal investment. Therefore, the Company believes that its exposure due to concentration of credit risk is minimal and has not experienced credit losses on investments in these instruments to date.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Property and Equipment</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">Property and Equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight line basis over their estimated useful lives:</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt 0.5in"> </p> <table style="MARGIN:auto auto auto 0.95in; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Computer equipment</p></td> <td width="223" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:167.55pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">2 years straight line basis</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Computer software</p></td> <td width="223" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:167.55pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">1 year straight line basis</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Equipment</p></td> <td width="223" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:167.55pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">5 years straight line basis</p></td></tr></table> <p style="MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Revenue Recognition</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Product revenue and miscellaneous income are recognized as earned.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Income Taxes</b></p> <p style="MARGIN:0in 0in 0pt"> </p><pre style="TEXT-ALIGN:justify; tab-stops:.5in">The Company accounts for income taxes as outlined in the Accounting Standards Codification ("ASC") 740 "Income Taxes”. Under ASC Topic 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC Topic 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. </pre> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Stock-Based Compensation </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. </p> <p style="TEXT-ALIGN:justify"> </p> <p style="TEXT-ALIGN:justify">ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Related Parties</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Financial Instruments</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company’s financial instruments consist of cash and cash equivalents, highly liquid short-term investments, accounts payable and accrued liabilities, stockholder loans and a third party note payable. The Company does not hold or issue financial instruments for trading purposes and does not hold any derivative financial instruments.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company’s investment policy is to achieve, in order of importance, the financial objectives of preservation of principal, liquidity and return on investment. Investments are made in U.S. obligations and bank securities provided the obligations are guaranteed or carry ratings appropriate for the policy.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The policy risks are primarily the opportunity cost of the conservative nature of the allowable investments. As the Company is currently in the development stage, the Company has chosen to avoid investments of a trade or speculative nature.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Foreign Currency Translation</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The measurement currency of the Company is the U.S. dollar. Transactions in foreign currencies are translated at the exchange rate in effect at the transaction date. Monetary assets and liabilities denominated in other than the measurement currency are translated at the exchange rates in effect at the balance sheet date. The resulting exchange gains and losses are recognized in earnings.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Net Earnings (Loss) per Share</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Basic and diluted net loss per share information is presented under the requirements of ASC Topic 260, Earnings per Share. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period, less shares subject to repurchase. Diluted net loss per share reflects the potential dilution of securities by adding other common stock equivalents, including stock options, shares subject to repurchase, warrants and convertible notes in the weighted-average number of common shares outstanding for a period, if dilutive. The computation of earnings (loss) per share is as follows:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <table width="596" style="BORDER-BOTTOM:medium none; BORDER-LEFT:medium none; MARGIN:auto auto auto 0.2in; WIDTH:447.2pt; BORDER-COLLAPSE:collapse; BORDER-TOP:medium none; BORDER-RIGHT:medium none" border="1" cellpadding="0" cellspacing="0"> <tr> <td width="252" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; tab-stops:297.0pt"> </p></td> <td width="112" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b> </b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b>2012</b></p></td> <td width="16" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b><u><font style="TEXT-DECORATION:none"> </font></u></b></p></td> <td width="101" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b> </b></p></td> <td width="101" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b> </b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><b>2011</b></p></td> <td width="16" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="center"><u><font style="TEXT-DECORATION:none"> </font></u></p></td></tr> <tr> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Net loss</p></td> <td width="112" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right">$ (696,221)</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:11.85pt 297.0pt" align="right">$ (693,906)</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td></tr> <tr> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Weighted-average number of shares outstanding</p></td> <td width="112" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:11.85pt 297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:11.85pt 297.0pt" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td></tr> <tr> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Basic</p> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="112" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right">135,185,164</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right">134,540,170</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td></tr> <tr> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Loss per share</p></td> <td width="112" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:11.85pt 297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:11.85pt 297.0pt" align="right"> </p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td></tr> <tr> <td width="252" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:189pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Basic</p></td> <td width="112" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:83.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right">(0.01)</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td> <td width="101" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:75.4pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right">(0.01)</p></td> <td width="16" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:11.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:297.0pt" align="right"> </p></td></tr></table> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>3. </b><b>Recent Accounting Pronouncements</b><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>4. Property and Equipment</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:9.0pt 45.0pt"> </p> <p style="MARGIN:0in 0in 0pt; tab-stops:9.0pt 45.0pt"> The components of the Company’s equipment are presented below:</p> <p style="MARGIN:0in 0in 0pt 9.05pt; tab-stops:9.0pt 45.0pt"> </p> <table width="642" style="MARGIN:auto auto auto 5.4pt; WIDTH:481.6pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:13.5pt"> <td width="152" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:black 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"><b> </b></p></td> <td width="92" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:black 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b> </b></p></td> <td width="209" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:156.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:black 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>2012</b></p></td> <td width="190" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:142.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:black 1.5pt solid; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>2011</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="152" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"><b> </b></p></td> <td width="92" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>Cost</b></p></td> <td width="117" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.2in" align="center"><b>Accumulated Depreciation</b></p></td> <td width="92" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>Net</b></p></td> <td width="98" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>Accumulated Depreciation</b></p></td> <td width="92" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"><b>Net</b></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="152" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td> <td width="117" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="152" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Computer equipment</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$9,812 </p></td> <td width="117" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$9,812 </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$0 </p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$8,982</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$830</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="152" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Computer software</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">14,445</p></td> <td width="117" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">14,445</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$0 </p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">14,445</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">0</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="152" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt">Equipment</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">45,159</p></td> <td width="117" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">26,506</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$18,653 </p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">17,851</p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">11,730</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="152" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right"> </p></td> <td width="117" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right"> </p></td> <td width="98" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right"> </p></td> <td width="92" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:white; HEIGHT:12.75pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="152" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:113.9pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="92" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$69,416 </p></td> <td width="117" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$50,763 </p></td> <td width="92" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$18,653</p></td> <td width="98" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:73.6pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$41,278</p></td> <td width="92" style="BORDER-BOTTOM:black 1.5pt solid; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:68.7pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:13.5pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">$12,560</p></td></tr></table> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Depreciation and amortization expense for the years ended March 31, 2012 and 2011 was $9,485 and $8,496, respectively.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:9.0pt 45.0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>5. Stockholders’ Equity</b></p> <p style="MARGIN:0in 0in 0pt 0.25in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Authorized:</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-63.05pt; MARGIN:0in 0in 0pt 45.05pt"> </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-45.05pt; MARGIN:0in 0in 0pt 45.05pt">500,000,000 Common shares with no par value </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">10,000,000 Preferred shares with no par value</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During the year ended March 31, 2008, the Company effected the following stock transactions:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company issued a total of 116,015,968 shares of the Company’s no par value common stock in exchange for cash of $55,130.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During the year ended March 31, 2009 the Company effected the following stock transactions:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:9.0pt .75in"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:9.0pt .75in">On October 09, 2008, the Company announced a 4:1 forward stock split on its common shares. 33,203,992 common shares were issued for 8,300,998 common shares.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On November 12, 2009, the Board of Directors of the Company consented to and approved a four-for-one forward split of the Company’s 33,379,554 issued and outstanding shares of common stock. Pursuant to Rule 10b-17, the Forward Split became effective 10 days following the submission of the required notification forms to FINRA, on November 24, 2009. On the effective date, the Company’s transfer agent issued and mailed to the eligible shareholders of record, three additional shares of common stock for each share of common stock held by the shareholder. The forward split resulted in the increase in the number of shares of the Company’s common stock issued and outstanding to 133,518,216 while keeping the number of authorized shares the same.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During the year ended March 31, 2009 the Company issued 17,502,248 shares of the Company’s no par value common stock in exchange for cash of $151,572.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During the year ended March 31, 2010, the Company effected the following stock transactions:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company issued a total of 40,455 shares of the Company’s no par value common stock at a conversion rate of $0.81 per share in full and final settlement of a convertible debenture dated July 2, 2007. The shares were issued on March 30, 2010 for total value of $32,769. The loan consisted of principal of $23,800 and interest of $8,969. See Note 6.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During the year ended March 31, 2011, the Company effected the following stock transactions:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On April 19, 2010, the Company entered into a private placement agreement that would offer up to 952,381 units which consists of a subscription agreement and three warrants, Warrant #1 offers the holder to purchase 952,381 shares of the Corporation’s common stock at a price of $0.42 per share at any time within a 24 month period from the date of closing. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Warrant #2 entitles the holder to purchase a total of 714,286 shares of the Corporation’s common stock at a price of $0.56 per share at any time within a 24 month period from the date of closing.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Warrant #3 entitles the holder to purchase up to a total of 3,809,524 units at a price of $0.42 per unit at any time during the six month period from the date of closing of this offering. Each unit under warrant #3 consists of one share of common stock and two warrants. One warrant allows the holder to purchase up to 3,809,524 shares of common stock at a price of $0.42 any time during the period of twenty four months from the date of purchase. The other warrant allows the holder to purchase 2,857,142 shares of common<b> </b>stock at a price of $0.56 per share any time during the twenty four months from the date of closing of the purchase of these units under warrant 3.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On April 22, 2010, the Company issued 952,381 shares of common stock, and three (3) warrants for a total value of $400,000, per the private placement agreement explained above.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On February 9, 2011, the Company issued 250,000 shares of common stock for director compensation for a value of $52,500. The share price is valued at the adjusted closing price on the date of grant which was $0.21 per share. The compensation agreement calls for a total of 1,000,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On February 15, 2011, the Company issued 37,500 shares of common stock for director compensation for a value of $11,250. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.30 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On June 23, 2011, the Company issued 250,000 shares of common stock for director compensation for a value of $50,000. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.204 per share. The compensation agreement calls for a total of 1,000,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On June 23, 2011, the Company issued 37,500 shares of common stock for director compensation for a value of $6,941. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $.01851 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On July 8, 2011, the Company issued 37,500 shares of common stock for director compensation for a value of $7,875. The share price is valued at the adjusted closing price on the date of grant which was $0.21 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On October 9, 2011, the Company issued 250,000 shares of common stock for director compensation for a value of $41,250. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.165 per share. The compensation agreement calls for a total of 1,000,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On October 15, 2011, the Company issued 37,500 shares of common stock for director compensation for a value of $6,375. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $.0.17 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On November 8, 2011, the Company issued 37,500 shares of common stock for director compensation for a value of $21,000. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.56 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On February 9, 2012, the Company issued 250,000 shares of common stock for director compensation for a value of $117,500. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.47 per share. The compensation agreement calls for a total of 1,000,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On February 15, 2012, the Company issued 37,500 shares of common stock for director compensation for a value of $22,875. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $.0.61 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On March 8, 2012, the Company issued 37,500 shares of common stock for director compensation for a value of $17,250. The share price is valued at the adjusted closing price on the date of vesting of the shares which was $0.46 per share. The compensation agreement calls for a total of 150,000 shares to be issued during a 12 month period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">During the period March 31, 2012, Company had authorized the issuance of 362,500 shares for a total value of $178,625 as disclosed above. However the Company has not issued the stock and hence the said stock is reclassed as stock payable under the Statement of stockholders’ equity.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>6. Warrants</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On April 19, 2010, the Company entered into a private placement agreement that would offer up to 952,381 units which consists of a subscription agreement and three warrants, Warrant #1 offers the holder to purchase 952,381 shares of the Corporation’s common stock at a price of $0.42 per share at any time within a 24 month period from the date of closing. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Warrant #2 entitles the holder to purchase a total of 714,286 shares of the Corporation’s common stock at a price of $0.56 per share at any time within a 24 month period from the date of closing.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Warrant #3 entitles the holder to purchase up to a total of 3,809,524 units at a price of $0.42 per unit at any time during the six month period from the date of closing of this offering. Each unit under warrant #3 consists of one share of common stock and two warrants. One warrant allows the holder to purchase up to 3,809,524 shares of common stock at a price of $0.42 any time during the period of twenty four months from the date of purchase. The other warrant allows the holder to purchase 2,857,142 shares of common </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">stock at a price of $0.56 per share any time during the twenty four months from the date of closing of the purchase of these units under warrant 3.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">On April 22, 2010, the Company issued 952,381 shares of common stock, and three (3) warrants for a total value of $400,000, per the private placement agreement explained above.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <table style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.8pt; tab-stops:0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Number</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">of Warrants</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Weighted-Average</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Exercise Price per share</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Weighted- Average</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Remaining Life (Years)</p></td></tr> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt">Outstanding at as at 4.01.2011</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in -0.9pt 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right"> 5,476,191</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.43</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">1.00</p></td></tr> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Granted</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Exercised</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Cancelled</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr style="HEIGHT:24.3pt"> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Outstanding at as at 03.31.2012</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">5,476,191</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.43</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0.04</p></td></tr> <tr> <td width="215" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:161.35pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt; tab-stops:1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Exercisable at 03.31.2012</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.15pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="113" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:85.05pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">5,476,191</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.43</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right"> </p></td></tr></table> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">(1) All warrants expire on April 19, 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>7. Stock options</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">As approved by the Board of Directors, on February 16, 2012 the company granted a non-qualified stock option to its newly appointed director, Thomas Trkla as compensation for his services. The agreement calls for three hundred thousand (300,000) shares of restricted common stock for a price equal to $0.30 per share (Exercise Price), vested over a ten year period thereafter. The option shall be exercised during the 12 month period. As at March 31, 2012, the director has not exercised any right. The total fair value of these options at the date of grant was estimated to be $180,000 and was determined using the Black-Scholes option pricing model with an expected life of 10 years, a risk free interest rate of 1.99%, a dividend yield of 0% and expected volatility of 419% . Out of this $45,000 was recorded as a stock based compensation expense for current year based on seventy five thousand (75,000) options vested.</font></p> <p style="MARGIN:0in 0in 0pt"> </p> <table style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.8pt; tab-stops:0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Number</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">of Options</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Weighted-Average</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Exercise Price per share</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Weighted- Average</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">Remaining Life (Years)</p></td></tr> <tr> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt">Outstanding at as at 4.01.2011</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 2.5pt 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">-</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr style="HEIGHT:7.7pt"> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Granted</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">300,000</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.30</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; HEIGHT:7.7pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">10</p></td></tr> <tr> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Exercised</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Cancelled</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ NA</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">NA</p></td></tr> <tr style="HEIGHT:24.3pt"> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Outstanding at as at 03.31.2012</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt -2pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">300,000</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.30</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:24.3pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">9.88</p></td></tr> <tr> <td width="234" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="MARGIN:0in 0in 0pt; tab-stops:1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Exercisable at 03.31.2012</p></td> <td width="28" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:21.3pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="85" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63.75pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; tab-stops:-2.0pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">75,000</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="132" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:99.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 0.30</p></td> <td width="19" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.2pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="108" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:80.85pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right"> </p></td></tr></table> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal"> </font></p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>8. Convertible Loan-Related Party</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:27.0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On July 2, 2007, the Company issued a convertible debenture with a face value totaling $23,800. This loan, or any portion, is convertible at any time until paid in full at a rate of 1 common share per $0.001 of the debt converted. The loan bears interest at an annual rate of 12% percent compounded monthly. In accordance with ASC Topic 470 -20 the intrinsic value of the beneficial conversion feature has been valued at $0. Some terms were amended on September 9, 2009 but the conversion price remained the same. The conversion terms were amended on February 26, 2010 to reflect the new conversion price of $0.81 per share of common stock, and adding that interest is also convertible. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On March 15, 2010, the Company authorized the issuance of 40,455 of common shares for the share price of $0.81 per share for a convertible debenture dated July 2, 2007. The shares were issued on March 30, 2010 for $32,769 and the conversion of the debenture. The loan consisted of face value of $23,800 and interest of $8,969.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>9. Advance-Related Party</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company issued on January 11, 2012 a $38,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on January 11, 2014.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on December 6, 2011 a $20,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on December 6, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on October 19, 2011 a $25,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on October 19, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on September 30, 2011 a $20,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on September 30, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on September 2, 2011 a $20,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on September 2, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on August 5, 2011 a $24,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on August 5, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on July 7, 2011 a $40,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on July 7, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on May 9, 2011 a $36,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on May 9, 2013. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on April 29, 2011 a $15,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on April 29, 2013. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company issued a $100,000 advance during the month of January 2011 to shareholder. The advance was unsecured, non-interest bearing and due in six months. On June 24, 2011 the loan was modified to bear interest at 10%, compounded annually, and extended to mature in two years on June 24, 2013.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">The Company issued on May 18, 2010 a $215,000 unsecured note payable to a shareholder. The note bears interest at 10%, compounded annually, matures in two years on May 18, 2012. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:9.0pt">Interest expense for the years ended March 31, 2012 and 2011 was $14,169 and $19,425, respectively.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:9.0pt"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>10. Note Payable</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:9.0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company issued on February 21, 2012 a $99,964.06 unsecured note payable to a third party. The note bears interest at 10%, compounded annually, matures in two years on February 21, 2014. Interest expense for the years ended March 31, 2012 and 2011 was $1,065 and $Nil respectively. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="BACKGROUND:yellow"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>11. Advertising Costs</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; tab-stops:9.0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred $13,565, and $308,348 of advertising expense during the years ended March 31, 2012, and 2011, respectively.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>12. Stock Compensation Program</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify">On April 12, 2011, subject to shareholder approval, the Board of Directors of eCrypt Technologies, Inc. (the “Company”) approved the adoption of the eCrypt Technologies, Inc. Stock Compensation Program (the “Program”) under which 13,500,000 shares have been reserved for purposes of possible future issuance of incentive stock options, non-qualified stock options, and restricted stock grants to employees, directors and certain key individuals. On April 15, 2011, pursuant to a written consent in lieu of a meeting, a majority of the Company’s shareholders approved the Program. The purpose of the Program is to attract and retain key employees, consultants and other persons, and to provide such key individuals with an additional incentive to contribute to the success of the Company. In order to maintain flexibility in the award of stock benefits, the Program constitutes a single “omnibus” plan, but is composed of three parts. The first part is the Incentive Stock Option Plan (“Incentive Option Plan) which provides grants of incentive stock options under Section 422A of the Internal Revenue Code of 1986, as amended. The second part is the Nonqualified Stock Option Plan (“Nonqualified Option Plan”) which provides grants of nonqualified stock options. The third part is the Restricted Shares Plan (“Restricted Plan”) which provides grants of restricted shares of Company common stock. The Incentive Option Plan, the Nonqualified Option Plan and the Restricted Plan respectively comprise Plan I, Plan II, and Plan III of the Program. </p>
<!--egx--><p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align="left"><strong>14. Subsequent Event</strong></p> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align="left"><font style="FONT-WEIGHT:normal"> </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-WEIGHT:normal">The Company on May 30, 2012 issued the authorized 362,500 shares for a total value of $178,625 as disclosed in Note 5 above.</font></p>
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<!--egx--><p style="TEXT-ALIGN:justify"><b>13. Income Taxes</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">At March 31, 2012 and 2011, the Company had federal operating loss carryforwards of $1,299,407 and $939,252, respectively, which begins to expire in 2030.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Components of net deferred tax assets, including a valuation allowance, are as follows at March 31, 2012 and 2011:</p> <p style="MARGIN:0in 0in 0pt"> </p> <table width="94%" style="MARGIN:auto auto auto 18.9pt; WIDTH:94%; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"><br clear="all" style="PAGE-BREAK-BEFORE:always"></br> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Deferred tax assets:</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td></tr> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in"> </p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">2012</p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">2011</p></td></tr> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Net operating loss carryforward</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="28%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:28.38%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 1,299,407</p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ 939,252</p></td></tr> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Total deferred tax assets</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="28%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:28.38%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 2.65pt; tab-stops:0in 2.65pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">454,792</p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">328,738</p></td></tr> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Less: Valuation allowance</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="28%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:28.38%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 2.65pt; tab-stops:0in 2.65pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(454,792)</p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 26.55pt; tab-stops:0in 22.05pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(328,738)</p></td></tr> <tr> <td width="33%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:33.22%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Net deferred tax assets</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.14%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="28%" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:28.38%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ -</p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="2%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:2.46%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="30%" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:30.32%; PADDING-RIGHT:5.4pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">$ -</p></td></tr></table> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The valuation allowance for deferred tax assets as of March 31, 2012 and 2011 was $454,792 and $328,738, respectively, which will begin to expire 2030. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of March 31, 2012 and 2011 and maintained a full valuation allowance.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Reconciliation between the statutory rate and the effective tax rate is as follows at March 31, 2012 and 2011:</p> <p style="MARGIN:0in 0in 0pt"><b> </b></p> <table width="75%" style="MARGIN:auto auto auto 0.5in; WIDTH:75.08%; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:15.85pt"> <td width="59%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:59.84%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.9%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="18%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:18.96%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; tab-stops:0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">2012</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.16%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="14%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.14%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 5.15pt; tab-stops:-12.85pt 0in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center">2011</p></td></tr> <tr style="HEIGHT:15.85pt"> <td width="59%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:59.84%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Federal statutory rate</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.9%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="18%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:18.96%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 5.55pt; tab-stops:0in 3.7pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(35.0)%</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.16%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="14%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.14%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 16.8pt; tab-stops:0in 3.3pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(35.0)%</p></td></tr> <tr style="HEIGHT:15.85pt"> <td width="59%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:59.84%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">State taxes, net of federal benefit</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.9%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="18%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:18.96%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 5.55pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(0.00)%</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.16%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="14%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.14%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 16.8pt; tab-stops:0in 3.3pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">(0.00)%</p></td></tr> <tr style="HEIGHT:15.85pt"> <td width="59%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:59.84%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Change in valuation allowance</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.9%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="18%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:18.96%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 5.55pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">35.0%</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:3.16%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="14%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:14.14%; PADDING-RIGHT:5.4pt; BACKGROUND:#ccffff; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 16.8pt; tab-stops:0in 3.3pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">35.0%</p></td></tr> <tr style="HEIGHT:15.85pt"> <td width="59%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:59.84%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in">Effective tax rate</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.9%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="18%" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:18.96%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0.0%</p></td> <td width="3%" style="BORDER-BOTTOM:#ece9d8; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.16%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="center"> </p></td> <td width="14%" style="BORDER-BOTTOM:windowtext 1.5pt double; BORDER-LEFT:#ece9d8; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:14.14%; PADDING-RIGHT:5.4pt; HEIGHT:15.85pt; BORDER-TOP:#ece9d8; BORDER-RIGHT:#ece9d8; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt 0.5in; tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in" align="right">0.0%</p></td></tr></table> <p style="MARGIN:0in 0in 0pt"><b> </b></p>
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iso4217:USD
shares
iso4217:USD
shares
Preferred stock 10,000,000 Shares Authorized; No Par Value 0 shares issued and outstanding as at March 31, 2012 and 2011
Common stock 500,000,000 Shares Authorized; Par Value .001; 135,486,052 and 134,798,452 shares issued and outstanding as at March 31, 2012 and 2011