DERIVATIVE LIABILITY AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2013

Mar. 31, 2013

The table below provides a reconciliation of beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3).


	Down-round			Convertible Feature			Warrant			Warrant Down-round
	Protection Derivative			Derivative			Derivative			Protection Derivative			Total

Balance, March 31, 2013	$	(50,545	)	$	(162,456	)	$	—			—		$	(213,001	)
Net Change in Fair Value		40,545			61,637			—			—			102,182
Settlement Through Modification of Gemini Note II		10,000			100,819			—			—			110,819
Fair Value at Issuance of Secured Notes		(641,113	)		(2,923,370	)		(1,781,592	)		(616,688	)		(5,962,763	)

Balance at 6/30/2013	$	(641,113	)	$	(2,923,370	)	$	(1,781,592	)	$	(616,688	)	$	(5,962,763	)

Schedule of valuation techniques

The following table describes the valuation techniques used to calculate fair values for assets in Level 3. There were no changes in the valuation techniques during the quarter ended June 30, 2013.

	Fair Value at		Valuation
	6/30/2013		Technique	Unobservable Input	Range

Conversion Feature Derivative and Down-round Protection Derivative (combined)
	$	3,564,483	Binomial Option Pricing Model	Probability of common stock issuance at prices less than conversion prices stated in agreements		5%-65	%

Warrant Derivative and Warrant Down-round Protection Derivative (combined)	$	2,488,280	Binomial Option Pricing Model	Probability of common stock issuance at prices less than exercise prices stated in agreements		5%-50	%

Reconciliation of liabilities measured at fair value

The table below provides a reconciliation of beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3).

	Derivative Liability			Convertible Feature Liability			Total
Balance, April 1, 2012	$	—			—			—
Fair Value at Issuance		82,709			457,055			539,764
Net Change in Fair Value		122,945			1,390,292			1,513,237
Conversion of Debt		(155,109	)		(1,684,891	)		(1,840,000	)
Balance, March 31, 2013	$	50,545		$	162,456		$	213,001

- Definition

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.

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