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9. FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Dec. 31, 2012

Note 9. Fair Value Measurements

Fair value measurements based on the valuation technique

Our fair value measurements at the December 31, 2012 reporting date are classified based on the valuation technique level noted in the table below (there were no transfers in or out of level 3 for all periods presented):

Quoted Prices

Significant

in Active

Other

Significant

Markets for

Observable

Unobservable

December 31,

Identical Assets

Inputs

Inputs

Description

2012

(Level 1)

(Level 2)

(Level 3)

Derivative Liabilities

$

1,810,138

$

–

$

–

$

1,810,138

Significant weighted average assumptions used to estimate the fair value information utilizing the Binomial Lattice option pricing model

The following outlines the significant weighted average assumptions used to estimate the fair value information presented, in connection with our warrant and embedded conversion option derivative instruments utilizing the Binomial Lattice option pricing model:

		Nine Months Ended December 31, 2012
Risk free interest rate			0.05% - 0.60%
Average expected life			0.02 – 4.2 years
Expected volatility			76.0% - 107.1%
Expected dividends			None

Summary of changes in the fair value of our Level 3 financial instruments

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2012:

										Change in				Reclassification
										estimated fair				of Derivative
						Recorded				value recognized				Liability to
		April 1,				New Derivative				in results				Paid in				December 31,
		2012				Liabilities				of operations				capital				2012

Derivative liabilities		$	3,588,615			$	–			$	(1,745,718	)		$	(32,759	)		$	1,810,138

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2011:

										Change in				Reclassification
										estimated fair				of Derivative
						Recorded				value recognized				Liability to
		April 1,				New Derivative				in results				Paid in				December 31,
		2011				Liabilities				of operations				capital				2011

Derivative liabilities			2,002,896			$	1,107,940			$	(1,596,442	)		$	(263,689	)		$	1,250,705

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details