Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows

Condensed Consolidated Statements of Cash Flows (USD $)
9 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:    
Net loss $ (3,614,095) $ (8,105,129)
Depreciation and amortization 13,858 14,301
Stock based compensation 609,503 1,599,915
Loss on debt extinguishment   3,189,942
Fair market value of conditional warrants that subsequently were issued   74,652
Non cash interest expense 538,736 1,696,055
Fair market value of common stock, warrants and options issued for services 328,327 590,734
Change in fair value of derivative liabilities (1,596,442) (2,098,954)
Issuance of note in convertible note termination 360,186  
Amortization of debt discount and deferred financing costs 1,703,219 1,301,014
Changes in operating assets and liabilities:    
Accounts receivable (183,367)  
Prepaid expenses and other assets 10,557 52,260
Accounts payable and other current liabilities 728,432 152,246
Due to related parties   20,000
Net cash used in operating activities (1,101,086) (1,512,964)
Cash flows from investing activities:    
Purchases of property and equipment (1,735) (2,541)
Additions to patents and patents pending   (6,805)
Net cash used in investing activities (1,735) (9,346)
Cash flows from financing activities:    
Principal repayments of notes payable (15,000)  
Net proceeds from the issuance of convertible notes payable 1,256,921 1,105,000
Proceeds from the issuance of common stock   283,600
Proceeds from collection of secured notes receivable 200,000 300,000
Net cash provided by financing activities 1,441,921 1,688,600
Net increase in cash 339,100 166,290
Cash at beginning of period 15,704 67,950
Cash at end of period 354,804 234,240
Cash paid during the period for:    
Interest 3,636  
Income taxes      
Derivative liabilities recorded in connection with embedded conversion feature of convertible notes and/or warrants   6,980,347
Debt and accrued interest converted to common stock 1,812,386 1,075,550
Debt discount recorded in connection with beneficial conversion feature of convertible notes and related warrants 1,037,901 1,708,600
Issuance of convertible notes in settlement of accrued legal fees   35,469
Reclassification of warrant derivative liability into equity 263,689  
Issuance of shares in connection with restricted stock grant to officer   $ 600