RELATED PARTY TRANSACTION

3 Months Ended

Jun. 30, 2012

RELATED PARTY TRANSACTION

RELATED PARTY TRANSACTION

Note 6.   RELATED PARTY TRANSACTION

We paid consulting fees of $25,561 and $17,960 to an entity owned by one of our directors and $47,249 and none to an entity owned by another director during the three months ended June 30, 2012 and 2011, respectively.

In March and April of 2012, we completed a private placement of 1,755,000 shares of our common stock. The purchase price per share for the shares sold in the private placement was $1.00. Mr. Kornelsen, one of our directors, purchased 26,000 shares in the private placement. CMED Partners LLLP, an investment fund affiliated with Mr. Kornelsen, purchased 514,000 shares in the private placement.