v2.4.0.6
Note 7. Fair Value of Financial Instruments
 12 Months Ended
Mar. 31, 2012
Fair Value Disclosures [Text Block]
7.             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 March 31, 2012:

    TOTAL     LEVEL 1     LEVEL 2     LEVEL 3  
LIABILITIES:                        
                         
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 )
Change in fair market value from Oct. 1, 2011 to Dec. 31, 2011
    (867,705 )     -       -       (867,705 )
Change in fair market value from Jan. 1, 2012 to Mar. 31, 2012
    1,001,250       -       -       1,001,250  
                                 
                                 
Convertible loan derivative liability at March 31, 2012   $ 3,520,496     $ -     $ -     $ 3,520,496