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WARRANTS
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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| Warrants [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Warrants [Text Block] | NOTE 10 — WARRANTS
The 2011 Warrants issued in connection with the Series A Preferred Stock have an exercise price of $0.38 per share, subject to adjustment, and are exercisable for a period of five years. The exercise price of the 2011 Warrants is equal to 125% of the conversion price of the Series A Preferred Stock.
The Company accounted for the 2011 Warrants issued in June 2011 in the condensed consolidated financial statements as a liability at their initial fair value of $347,059 and accounted for the 2011 Warrants issued in October 2011 as a liability at their initial fair value of $447,398. Changes in the fair value of the 2011 Warrants are recognized in earnings for each reporting period. At December 31 and March 31, 2012, the fair value of the 2011 Warrants was included in the condensed consolidated balance sheet under the caption Warrant liability of $451,726 and $684,690, respectively. For the three months ended December 31, 2012, the Company recorded a gain on the change in the value of the 2011 Warrants of $161,685, and for the three months ended December 31, 2011, the Company recorded a loss on the change in the value of the 2011 Warrants of (91,412). For the nine months ended December 31, 2012 and 2011 the Company recorded again on the change in the value of the 2011 Warrants of and $232,964 and $93,613, respectively.
The fair value of the warrants is a Level 3 fair value under the valuation hierarchy and was estimated using the Black-Scholes option pricing model utilizing the following assumptions:
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