Annual report pursuant to Section 13 and 15(d)

Sale of Common Stock and Warrants

Sale of Common Stock and Warrants

12 Months Ended

Mar. 31, 2012

Sale of Common Stock and Warrants [Abstract]

Note 9. Sale of Common Stock and Warrants

During fiscal year 2006, the Company entered into a contract with certain consultants of the Company pursuant to which the Company will issue warrants on a monthly basis in lieu of cash payments for two years, dependent upon the continuation of the contract and the achievement of certain performance goals. These warrants are valued and expensed on a monthly basis upon issuance.

During fiscal year 2008, the Company issued 5,000 warrants valued at $29 using the Black-Scholes model with an exercise price at the market value on the day of the grant and an average interest rate of 3.75% and a 5 year life.

During the fiscal year 2009, the Company issued no warrants. The Company booked $15 of expense for warrants previously issued.

During the fiscal year 2010, the Company issued no warrants. The Company booked $0 of expense for warrants previously issued.

During the fiscal year 2011, the Company issued 185,777 warrants valued at $1,645 using the Black-Scholes model with an exercise price at the market value on the day of the grant (the date the Formation and Contribution Agreement was signed) and an average interest rate of 1.62% and a four year life. The Company booked $0 of expense for warrants previously issued.

During the fiscal year 2012, the Company issued no warrants. The Company booked $0 of expense for warrants previously issued.

At March 31, 2012, there were 8,825 warrants outstanding, with an average exercise price of $32.27.