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9. FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

12 Months Ended

Dec. 31, 2014

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair value measurements based on the valuation technique

Description		March 31, 2014				Quoted Prices in Active Markets for (Level 1)				Significant Other Observable (Level 2)				Significant Unobservable (Level 3)
Derivative Liabilities		$	10,679,067			$	–			$	–			$	10,679,067
Total Assets		$	10,679,067			$	–			$	–			$	10,679,067

The fair value of our recorded derivative liabilities is determined based on unobservable inputs that are not corroborated by market data, which is a Level 3 classification. We record derivative liabilities on our balance sheet at fair value with changes in fair value recorded in our consolidated statements of operations. Our fair value measurements at the reporting date were as follows:

At March 31, 2014:

Description

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant

Unobservable

Inputs (Level 3)

Derivative Liabilities

$

–

$

–

$

10,679,067

Total Assets

$

–

$

–

$

10,679,067

At March 31, 2013:

Description

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant

Unobservable

Inputs (Level 3)

Derivative Liabilities

$

–

$

–

$

3,588,239

Total Assets

$

–

$

–

$

3,588,239

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

		Nine Months Ended December 31, 2013
Risk free interest rate		0.02% - 2.04%
Average expected life		0.25 – 3 years
Expected volatility		58.0% - 103.1%
Expected dividends		None

The following outlines the significant weighted average assumptions used to estimate the fair value information presented for the fiscal years ended March 31, 2014 and 2013, in connection with our April 2011 convertible note, July & August 2011 10% convertible notes and the September 2011 convertible note offerings and with respect to warrant and embedded conversion option derivative instruments utilizing the Binomial Lattice option pricing model:

	Fiscal Year Ended March 31, 2014
Risk free interest rate	0.02% - 0.79%
Average expected life	0.25 – 2.8 years
Expected volatility	58.0% - 103.1%
Expected dividends	None

	Fiscal Year Ended March 31, 2013
Risk free interest rate	0.05% - 1.56%
Average expected life	0.25 – 3.6 years
Expected volatility	76.0% - 107.1%
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 nine months ended December 31, 2014:

		April 1, 2014				Recorded New Derivative Liabilities				Change in estimated fair value recognized in results of operations				Reclassification of Derivative Liability to Paid in capital				December 31, 2014

Derivative liabilities		$	10,679,067			$	–			$	–			$	(10,679,067	)		$	–

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the nine months ended December 31, 2013:

		April 1, 2013				Recorded New Derivative Liabilities				Change in estimated fair value recognized in results of operations				Reclassification of Derivative Liability to Paid in capital				December 31, 2013


Derivative liabilities		$	3,588,239			$	–			$	2,304,702			$	(316,876	)		$	5,576,065

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the year ended March 31, 2014:

		April 1, 2013				Recorded New Derivative Liabilities				Change in estimated fair value recognized in results of operations				Reclassification of Derivative Liability to Paid in capital				March 31, 2014

Derivative liabilities		$	3,588,239			$	–			$	5,729,780			$	1,361,048			$	10,679,067

The table below sets forth a summary of changes in the fair value of our Level 3 financial instruments for the year ended March 31, 2013:

		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				March 31, 2013

Derivative liabilities		$	3,588,615			$	–			$	(44,705	)		$	44,329			$	3,588,239

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