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NOTE 14. SUBSEQUENT EVENTS
3 Months Ended
Jun. 30, 2011
Subsequent Events [Text Block]
NOTE 14. SUBSEQUENT EVENTS

Management has evaluated events subsequent to June 30, 2011 through the date that the accompanying condensed consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events which may require adjustment of and/or disclosure in such financial statements.

During the period July 1, 2011 through August 18, 2011, we issued 2,200,923 shares of restricted common stock in exchange for the partial or full conversion of principal and interest of several convertible notes payable in an aggregate amount of $191,255 at an average conversion price of $0.09 per share based upon the conversion formulae in the respective notes.

During the period July 1, 2011 through August 18, 2011, we issued 231,164 shares of stock to service providers for services valued at $21,041 based upon the fair value of the shares issued. All of those shares were issued pursuant to our S-8 registration statements covering our Amended and Restated 2003 Consultant Stock Plan or 2010 Stock Incentive Plan. The services were for regulatory affairs and corporate communications.  The average issuance price on the S-8 issuances was approximately $0.09 per share.

During the period July 1, 2011 through August 18, 2011, we issued 27,650 shares of restricted common stock as payment of a monthly interest payment of $1,896 under the Tonaquint note (see Note 4).  The issuance price was approximately $0.07 per share.

During the period July 1, 2011 through August 18, 2011, we raised $357,656 in 10% convertible notes.  Those notes had a fixed conversion price of $0.09 per share.  We also issued those investors warrants to purchase 3,973,957 shares of common stock at $0.125 per share.

During the period July 1, 2011 through August 18, 2011, we agreed to convert $49,610 in accounts payable to a law firm to a 10% non-convertible note payable.

In July 2011, our Board ratified a one year consulting agreement with a consultant to provide corporate advisory services. We agreed to pay the consultant a monthly fee of $5,000 in common stock.

On August 15, 2011, the Company and Barsell signed a Settlement Agreement under which we agreed to repay the notes and related accrued interest in cash or in common stock, at the election of the Company, on a monthly basis over approximately a ten month period of time.  In exchange, Barsell has agreed to dismiss the Lawsuit without prejudice (see Note 12).  On August 17, 2011, we issued 375,000 shares of restricted common stock as the initial monthly payment under the Settlement Agreement.