(7) Derivative Financial Instruments

12 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Derivative Financial Instruments

(7) Derivative Financial Instruments

The Company’s derivative financial instruments consist of compound embedded derivatives (“CED”) that were bifurcated from our Series D Preferred Stock and Secured Notes. The Preferred CED comprises the embedded conversion option and certain other equity-indexed features that were not clearly and closely related to the Series D Preferred Stock in terms of risks. The Senior Note CED comprises certain put features that were not clearly and closely related to the Secured Notes in terms of risks. Derivative financial instruments are carried at fair value. The following table reflects the components of the CEDs and changes in fair value, using the techniques and assumptions described in Note 4:

	Total		Warrant Derivative		Put Derivative
Balances at April 1, 2011	$	2,842,415	$	2,837,143	$	5,272
Fair value adjustments		162,904		168,176		(5,272	)
Balances at March 31, 2012		3,005,319		3,005,319		—
Fair value adjustments		1,659,575		1,659,575		—
Balances at March 31, 2013	$	4,664,894	$	4,664,894	$	—

Fair value adjustments are recorded in fair value adjustments to compound embedded derivatives in the accompanying financial statements. As a result, the Company’s earnings are and will be affected by changes in the assumptions underlying the valuation of the derivative financial instruments. The principal assumptions that have, in the Company’s view, the most significant effects are the Company’s trading market prices, volatilities and risk-adjusted market credit rates.