8. Income Taxes

12 Months Ended

Mar. 31, 2012

Income Tax Disclosure [Abstract]

8. Income Taxes

At March 31, 2012, the Company estimated that it had approximately $23,100,000 of net operating loss carry forwards, which if unused will expire through 2031.

The Company and some of its operating entities are delinquent in filing certain of its income (2009-2011) and payroll tax returns (for the year 2010)  in certain jurisdictions, but the Company believes it has sufficient loss carryforwards available for any income tax liability that may be due and has set aside sufficient reserves in accounts payable, accrued expenses and other liabilities for any payroll tax obligations. The Company is subject to audit for all tax returns from 2009 to 2012.

The provision for income taxes consisted of the following:

	2012		2011
Current	$	-	$	-
Deferred		-		-
Total	$	-	$	-

A reconciliation of the effective tax rates and the statutory U.S. federal income tax rates is as follows:

	2012			2011
U.S. federal statutory rates		-34	%		-34	%
State income tax, net of federal tax benefits		-3.5	%		-3.5	%
Permanent differences		7.35	%		8.19	%
Increase in deferred tax asset valuation allowance		30.15	%		29.31	%
Effective tax rate		-	%		-	%

Temporary differences that give rise to a significant portion of the deferred tax asset are as follows:

	2012		2011
Deferred tax assets:
Net operation loss	$	23,100,000	$	10,486,000
Accumulated amortization
on intangible assets		1,124,000		854,000
Warrants for services		690,000		120,000
Allowance for bad debt		19,000		19,000
Total	$	24,899,000	$	11,479,000
Less: Valuation allowance		-24,899,000		(11,479,000	)
Net deferred tax asset	$	-	$	-

Common Stock

2012

In April, 2011, the Company issued 616,000 shares of common stock as compensation under contract. The stock was valued at $0.32 per share, its fair market value at the date of issuance.

In April, 2011, the Company issued 1,056,230 shares of common stock in escrow as compensation under contract to acquire discontinued operation. The stock was not valued as it was issued in escrow.

In April, 2011, the Company sold 1,000,000 shares of common stock. The stock was sold for $.05 per share.

In April, 2011, the Company issued 650,000 shares of common stock as part of an antidilution arrangement for several of its notes payable. The stock was valued at $0.32 per share, its fair market value at the date of issuance.

In April, 2011, the Company issued 2,500,000 shares of common stock to acquire a discontinued operation. The stock was valued at $0.40 per share, its fair market value at the date of issuance.

In April, 2011, the Company issued 325,000 shares of common stock for the exercise of warrants. The stock was exercised at $0.10 per share.

In April, 2011, the Company issued 366,300 shares of common stock for the conversion of $29,575 in debentures. The debentures were converted at $0.08 per share.

In April, 2011, the Company issued 556,250 shares of common stock as compensation under contract to acquire discontinued operation. The stock was valued at $0.40 per share, its fair market value at the date of issuance.

In April, 2011, the Company issued 363,636 shares of common stock as compensation under contract. The stock was valued at $0.28 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 500,000 shares of common stock as compensation under contract. The stock was valued at $0.49 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 600,000 shares of common stock as compensation under contract. The stock was valued at $0.06 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 100,000 shares of common stock as compensation under contract. The stock was valued at $0.12 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 1,000,000 shares of common stock as compensation under contract. The stock was valued at $0.06 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 884,956 shares of common stock for the conversion of $17,700 in debentures. The debentures were converted at $0.02 per share.

In July, 2011, the Company issued 769,231 shares of common stock as compensation under contract in settlement of amounts due to an officer. The stock was valued at $0.13 per share, its fair market value at the date of issuance.

In July, 2011, the Company issued 50,000 shares of common stock as compensation under contract to a former officer. The stock was valued at $0.13 per share, its fair market value at the date of issuance.

In October, 2011, the Company issued 453,030 shares to a lender in connection with a loan. The stock was valued at $0.08 per share, its fair market value at the date of issuance.

In November, 2011, the Company issued 500,000 shares to a lender in connection with a loan. The stock was valued at $0.11 per share, its fair market value at the date of issuance.

2011

On June 28, 2010, the Company issued 2,042 shares of common stock as compensation under contract. The stock was valued at $0.49 per share, its fair market value at the date of issuance.

On July 7, 2010, the Company issued 69,381 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share

On July 8, 2010, the Company issued 127,888 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share

On August 16, 2010, the Company sold 10,000 shares of common stock. These shares were sold at $0.50 per share.

On September 7, 2010, the Company issued 135,679 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share

On September 16, 2010, the Company issued 5,333 shares of common stock as compensation for legal services. The stock was valued at $0.89 per share, its fair market value at the date of issuance.

On September 16, 2010, the Company issued 150,000 shares of common stock as a bonus for an extension on a loan from a stockholder. The stock was valued at $0.89 per share, its fair market value at the date of issuance.

On September 30, 2010, the Company issued 333,333 shares of common stock to an investor as a bonus for financing. The stock was valued at $0.89 per share, its fair market value at the date of issuance.

On September 30, 2010, the Company issued 2,000,000 shares of common stock for the acquisition of Triple C Transport. These shares were valued at $0.10 per share, the fair market value at the time of the acquisition.

On October, 27, 2010, the Company issued 390,000 shares of common stock to an investor as a bonus for financing. The stock was valued at $0.82 per share, its fair market value at the date of issuance.

On November 29, 2010, the Company sold 2,400,000 shares of common stock. These shares were sold at $0.40 per share.

On December 22, 2010, the Company issued 32,780 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.40 per share

On December 22, 2010, the Company issued 250,000 shares of common stock as compensation for consulting services. The stock was valued at $0.88 per share, its fair market value at the date of issuance.

On December 22, 2010, the Company issued 265,000 shares of common stock as compensation for consulting services. The stock was valued at $0.88 per share, its fair market value at the date of issuance.

On December 22, 2010, the Company issued 25,000 shares of common stock as compensation for accounting services. The stock was valued at $0.88 per share, its fair market value at the date of issuance

On December 22, 2010, the Company issued 64,592 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share

On December 22, 2010, the Company sold 10,000 shares of common stock. These shares were sold at $0.50 per share.

On December 22, 2010, the Company issued 75,000 shares of common stock as compensation. The stock was valued at $0.88 per share, its fair market value at the date of issuance.

On December 22, 2010, the Company issued 125,000 shares of common stock as compensation for consulting services. The stock was valued at $0.88 per share, its fair market value at the date of issuance.

On December 22, 2010, the Company issued 250,000 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.40 per share. The Company issued 185,185 shares of common stock upon “cashless” exercise of warrants.

On March 18, 2011, the Company issued 888,000 shares of common stock as compensation for professional services. The stock was valued at $0.30 per share, its fair market value at the date of issuance.

On March 18, 2011, the Company issued 89,306 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share.

On March 18, 2011, the Company issued 2,281,458 shares of common stock as a result of the conversion of a promissory note. The stock was converted at $0.53 per share.

On March 18, 2011, the Company issued 227,548 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share

On March 18, 2011, the Company issued 93,024 shares of common stock as a result of the conversion of debentures. The stock was converted at $0.30 per share.

Warrants to Purchase Common Stock

2012

In April, 2011, the Company issued 300,000 common stock warrants to various holders, at an exercise price ranging of $0.25, with a termination period of 6 years, relating to the extension of debt obligations.

In June, 2011, The Company issued 400,000 common stock warrants, with an exercise price of $0.20, an expiration date of 3 years, relating to services provided to the Company.

In August, 2011, the Company issued 116,000 common stock warrants to various holders, at an exercise price ranging from $0.30, with a termination period of 5 years, relating to the issuance of debt obligations.

In April, 2011, the Company issued 1,500,000 common stock warrants to various holders, as compensation under contract to acquire discontinued operation at an exercise of $0.40, with a termination period of 3 years.

2011

For the nine months ended December 31, 2010, the Company issued 1,009,433 common stock warrants to various holders, at an exercise price ranging from $0.30 to $0.50, with a termination period from 3 to 5 years, relating to the issuance of debt obligations.

The Company issued 620,883 common stock warrants, with an exercise price of $0.30, an expiration date of 5 years, relating to services provided to the Company.

The Company issued 10,000 common stock warrants, with an exercise price of $1.00, an expiration date of 3 years, relating to the purchase of the Company’s common stock.

The Company issued 375,000 common stock warrants, with an exercise price of $0.40, an expiration date of 5 years, relating to services provided to the Company.

The Company issued 2,400,000 common stock warrants, with an exercise price of $0.75, an expiration date of 5 years, as a bonus for financing.

The Company issued 830,000 common stock warrants to various holders, at an exercise price ranging from $0.30 to $0.50, with a termination period of 5 years, relating to the issuance of debt obligations.

On March 7, 2011, the Company issued 234,720 common stock warrants, with an exercise price of $0.40, an expiration date of 5 years, as a bonus for financing.

On March 17, 2011, the Company issued 100,000 common stock warrants, with an exercise price of $0.40, an expiration date of 5 years, as a bonus for financing.