FAIR VALUE

9 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

7. FAIR VALUE

ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access.

Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of December 31, 2011 and March 31, 2011 the Company had assets and liabilities that fell under the scope of ASC 820. The carrying value of accounts receivable, notes receivable and accounts payable and accrued interest all approximate their fair value due to the short term nature. The fair value of the warrant liabilities were determined by the Monte Carlo simulation method. The Monte Carlo simulation is a generally accepted statistical method used to generate a defined number of stock paths in order to develop a reasonable estimate of the range of future expected stock prices of the Company and its peer group and minimizes standard error. Please see Notes 1, and 4 for discussion regarding the determination of fair value for these liabilities. Accordingly, the Company’s fair value measurements of the Company’s warrant liability and derivative liabilities are classified as a Level 3 input.

The fair value of the Company’s financial assets and liabilities carried at fair value and measured on a recurring basis are as follows:

	December 31, 2011
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant Liability – Convertible Note (Iroquois)	$	-	$	-	$	8,375,343	$	8,375,343
Derivatives Liability – Convertible Note (Iroquois)	$	-	$	-	$	271,749	$	271,749
Warrant Liability - ABG	$	-	$	-	$	1,103,949	$	1,103,949
Warrant liability - Other	$	-	$	-	$	8,632	$	8,632

	March 31, 2011 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant Liability – Convertible Note (Iroquois)	$	-	$	-	$	12,809,065	$	12,809,065
Derivatives Liability – Convertible Note (Iroquois)	$	-	$	-	$	4,534,069	$	4,534,069
Warrant liability - ABG	$	-	$	-	$	5,860,509	$	5,860,509
Warrant liability - Other	$	-	$	-	$	670,395	$	670,395

The following table sets forth a summary of changes in the fair value of the Company's Level 3 liabilities for the nine months ended December 31, 2011:

			Fair Value					Cancellation,
	Balance at		of warrants		Unrealized			termination,			Balance at
	March 31,		upon		(gains) or			and			December 31,
Description	2011		issuance		losses			reclassification			2011
Warrant Liability – Convertible Note (Iroquois)	$	12,809,065	$	-	$	(4,433,722	)	$	-		$	8,375,343
Derivatives Liability – Convertible Note (Iroquois)	$	4,534,069	$	-	$	(4,262,320	)	$	-		$	271,749
Warrant Liability – ABG	$	5,860,509	$	1,927,553	$	(6,684,113	)	$	-		$	1,103,949
Warrant liability - Other	$	670,395	$	-	$	(34,396	)	$	(627,367	)	$	8,632

The unrealized gains or losses on warrant or derivative liabilities are recorded as a change in fair value of warrant or derivative liabilities in the Company's statement of operations. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company reviews the assets and liabilities that are subject to ASC Topic 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.