Equity Transactions

6 Months Ended

Sep. 30, 2015

Equity [Abstract]

Equity Transactions

13. EQUITY TRANSACTIONS

Equity Compensation Plan

On April 29, 2014, the Company adopted the 2014 Non-Qualified Performance Equity Award Plan (the “Plan”). The Plan provides for awards of non-qualified stock options, restricted stock and other equity based awards. Award shares that are not used will be available for re-grant. The maximum award is limited to 1,250,000 shares. The Plan provides for a term of 20 years, but awards may not be granted after the 10th anniversary of the effective date of the Plan. To the extent required, for example for stock options, the exercise price or other award price will be the fair market value of a share of stock on the date of grant.

On November 7, 2014, the Board of Directors of the Company authorized to increase the number of shares under the Plan to 10,000,000 shares.

Common Stock

During the six months ended September 30, 2015, the Company issued 166,225,894 shares of common stock to 31 Group for the conversion of convertible notes of $280,000. Derivative liabilities on note conversion feature of $87,945 was reclassified to additional paid-in capital upon conversions.

Options

A summary of activities in options and the related information is as follows:

	Number of Units	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, March 31, 2015	2,000,000		0.12	3.58		-
Granted	-		-	-		-
Exercised	-		-	-		-
Outstanding, September 30, 2015	2,000,000		0.12	3.58		-
Exercisable September 30, 2015	1,000,000

Fair value of all options issued and outstanding are being amortized over their respective vesting periods. The unrecognized compensation expense at September 30, 2015 was $59,622. During the six months ended September 30, 2015, the Company recorded option expense of $51,102.

Warrants

Following is a summary of warrant activities for the six months ended September 30, 2015:

	Number of Units	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, March 31, 2015	12,660,395		0.26	2.80		-
Granted	-		-	-		-
Expired	(440,000)		-	-		-
Outstanding, September 30, 2015	12,220,395		0.26	2.39		-
Exercisable, September 30, 2015	12,220,395

Because the Company may not have enough authorized common shares to settle its obligation for its warrants, the Company concluded that the warrants issued with the 31 Group, LLC convertible notes and all of the existing warrants should be treated as financial derivatives. During the six months ended September 30, 2015, 440,000 warrants expired without exercise.