Note 10. Shareholders' Deficit

12 Months Ended

Mar. 31, 2015

Notes

Note 10. Shareholders' Deficit

Note 10. Shareholders' Deficit

Preferred Stock

In January, 2015, the Board approved an amendment to the Articles of Incorporation relative to its capital structure to create new classes of stock by authorizing Ninety Million (90,000,000) shares of Series A Preferred Stock with a par value of $.005, and Three Hundred Million (300,000,000) shares of Preferred Stock with preferences to be determined by the board at a later date

In January, 2015, the Company issued 90,000,000 shares of Series A Preferred Stock in satisfaction of $577,800 related party debt and accrued interest.

Common Stock

Year Ended March 31, 2014

In August, 2013, the Company issued 5,000,000 common shares for services.

In October, 2013, the Company issued 5,606,061 common shares for services

In December, 2013, the Company issued 60,000,000 common shares for accrued compensation to Officers of the Company.  The shares were valued using a volume weighted average price of $.004 per share

In February, 2014, the Company issued 73,407,828 common shares for accrued compensation to Officers of the Company.  The shares were valued using a volume weighted average price of $.007 per share

Year Ended March 31, 2015

In October, 2014, the Company issued 10,000,000 common shares for services.

In October, 2014, the Company issued 20,000,000 common shares to Fuselier Consulting in accordance with the terms of a consulting contract.  The stock was valued at $.0071 per share, its fair market value at the date of issuance

In November, 2014, the Company issued 13,500,000 common shares for services.  The stock was valued at $.0072 per share, its fair market value at the date of issuance

In November, 2014, the Company issued 8,728,265 common shares for accrued compensation to Officers of the Company.  The shares were valued using a volume weighted average price of $.017 per share

In December, 2015 the Company issued 8,023,529 common shares as part of a negotiated settlement on debt

In January, 2015, the Company issued 35,219,711 common shares in satisfaction of convertible debt

In January, 2015, the Company authorized 21,072,793 common shares as part of negotiated settlements on various debts.  These shares were issued in May 2015.

In February, 2015, the Company issued 36,310,721 common shares in satisfaction of convertible debt

In February, 2015, the Company issued 2,050,000 common shares as part of a negotiated settlement on debt

In March, 2015, the Company issued 40,223,804 common shares in satisfaction of convertible debt

In March 2015, the Company issued ten year warrants to purchase 20,000,000 common shares, with an exercise price of $.005, for services.

Warrants to Purchase Common Stock

The Company issued 21,320,006 and 0 new warrants to purchase Common Stock during the fiscal years ended March 31, 2015 and 2014 respectively.

The fair value for the warrants was estimated at the date of valuation using the Black-Scholes option-pricing model with the following assumptions:

Risk-free interest rate		1.37	%
Dividend yield		0.00	%
Volatility factor		447.60	%
Expected life	5-10 years

The relative fair value of warrants issued is calculated in accordance with ASC 470-20, Debt with Conversion and Other Options.

A summary of the warrant balances outstanding for the year ended March 31, 2015 and 2014 is presented below:

	& Exercisable		Price		Term
Balance, March 31, 2013		13,307,390	$	0.23	2 years
Granted		-		-
Exercised		-		-
Expired/Cancelled		360,000		0.23		N/A
Balance, March 31, 2014		12,947,390	$	0.23	2 years
Granted		21,320,006		0.008	-
Exercised		-		-	-
Expired/Cancelled		6,436,883		.23		N/A
Balance, March 31, 2015		27,830,513	$	0.156	2 years

As of March 31, 2015 and 2014, the number of warrants that were currently vested and expected to become vested was 27,830,513 and 12,947,390, respectively.