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9. FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Jun. 30, 2011

Note 9. Fair Value Measurements

Fair value measurements based on the valuation technique

Our fair value measurements at the June 30, 2012 reporting date are classified based on the valuation technique level noted in the table below:

Description

June 30,

2012

Quoted Prices

in Active Markets for

(Level 1)

Significant Other Observable

(Level 2)

Significant

Unobservable

(Level 3)

Derivative Liabilities

$

2,874,472

$

--

$

--

$

2,874,472

Total Assets

$

2,874,472

$

--

$

--

$

2,874,472

Significant weighted average assumptions used to estimate the fair value information utilizing the Binomial Lattice option pricing model

The following outlines the significant weighted average assumptions used to estimate the fair value information presented, in connection with our warrant and embedded conversion option derivative instruments utilizing the Binomial Lattice option pricing model:

	Three Months Ended June 30, 2012
Risk free interest rate	0.09% - 0.60%
Average expected life	0.02 – 4.2 years
Expected volatility	76.0% - 102.0%
Expected dividends	None

Summary of changes in the fair value of our Level 3 financial instruments

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the three months ended June 30, 2012:

		April 1, 2012				Recorded New Derivative Liabilities				Change in estimated fair value recognized in results of operations				Reclassification of Derivative Liability to Paid in capital				June 30, 2012

Derivative liabilities		$	3,588,615			$	–			$	(687,600	)			(26,543	)		$	2,874,472

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the three months ended June 30, 2011:

		April 1, 2011				Recorded New Derivative Liabilities				Change in estimated fair value recognized in results of operations				Reclassification of Derivative Liability to Paid in capital				June 30, 2011

Derivative liabilities			2,002,896			$	939,136			$	(491,827	)			(228,981	)		$	2,221,224

The fair value of derivative liabilities that we recorded in the three months ended June 2010 was related to the restructuring of the Amended and Restated Convertible Notes (see Note 5) and was based upon an independent valuation report.

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

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.

+ References+ Details