SUBSEQUENT EVENTS

6 Months Ended

Sep. 30, 2014

Note 18 - SUBSEQUENT EVENTS

On October 3, 2014, the Ministry of Economic Affairs of Taiwan issued a letter to the Company stating that the registrations for the issue of new shares of Excalibur on May 16 and June 15, 2007 were judged to be false by the Taiwan High Court. Therefore, these two registrations were cancelled and all subsequent registrations that followed upon the untrue basis of the two false share registrations were cancelled as well. As the acquisition of Excalibur’s shares by EFTI Taiwan was made after these two invalid share registrations in May and June 2007, the share registration regarding EFTI Taiwan’s purchase of Excalibur’s shares was also cancelled.

After considering the facts referred to above, the Company has concluded that it does not hold an equity position in Excalibur. Rather, the Company’s investment in Excalibur would be considered a Variable Interest Entity (“VIE”) in accordance with ASC 810. The Company provided financial support to Excalibur’s operations and was committed to absorb the losses from Excalibur’s operations. Due to the Company’s investment in Excalibur being considered a VIE, the Company would have consolidated the accounts of Excalibur from the time of its investment and there would have been no impact on the historical financial statements previously presented for the Company.