v2.3.0.15
Note 9. Fair Value of Financial Instruments
6 Months Ended
Sep. 30, 2011
Fair Value Disclosures [Text Block]
 9 .
FAIR VALUE OF FINANCIAL INSTRUMENTS.

The Company measures fair value in accordance with 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).  The three levels of the fair value hierarchy are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities;

Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The table below sets forth a summary of the fair values of the Company’s financial assets and liabilities as of September 30, 2011:

LIABILITIES:   TOTAL     LEVEL 1     LEVEL 2     LEVEL 3  
                         
Convertible loan derivative liability at March 31, 2011
  $ 1,397,911     $ -     $ -     $ 1,397,911  
Change in fair market value from March 31, 2011 to June 24, 2011
  $ 193,749     $ -     $ -     $ 193,749  
Accounting “extinguishment” of derivative liabilities on
June 24, 2011
  $ (1,591,660 )    $ -     $ -       (1,591,660  )
Establishment of new derivative liabilities on June 24, 2011
  $ 4,516,240     $ -     $ -     $ 4,516,240  
Change in fair market value from June 24, 2011 to June 30, 2011
  $ (418,724 )   $ -     $ -     $ (418,724 )
Change in fair market value from July 1, 2011 to Sept. 30, 2011
  $ (710,565 )   $ -     $ -     $ (710,565 )
                                 
Convertible loan derivative liability at September 30, 2011
  $ 3,386,951     $ -     $ -     $ 3,386,951