14. Subsequent Events

12 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

14. Subsequent Events

See Note 10 – Litigation – for Summary of recent legal activity. Effective June 30, 2012 the Company sold to Deep South Capital, LLC of Pineville, LA 100% of the shares of its subsidiary business, Cross Creek Trucking of Central Point, OR.  At the time of the sale, Cross Creek Trucking had ceased all operations.  In addition to the sale of the Cross Creek Trucking, the Company agreed to issue to Deep South a total of five million shares of its stock at the time of closing the transaction.

 Effective June 30, 2012 the Company sold to Deep South Capital, LLC of Pineville, LA 100% of the shares of its subsidiary business, Triple C Transport of Grand Island, NE.  At the time of the sale, Triple C Transport had ceased all operations.  In addition to the sale of the Triple C Transport stock, the Company agreed to issue to Deep South a total of five million shares of its stock at the time of closing the transaction.

 On August 3, 2012 the IFCR board of directors voted to engage Fuselier Consulting of Old Tappan, NJ (“Fuselierco”)  as its strategic business consultant.  Under terms of the three year agreement, Fuselierco will be accountable for consulting with management regarding the Company’s restructuring and turnaround planning and execution.  Fuselierco will be compensated with issuance of the Company’s stock.  The board directed the Company to issue to Fuselierco ten million shares of stock at signing and an additional two and a half million shares per quarter through the term of the agreement. 

On September 21, 2012 the Company’s agreement to sell the shares of Cross Creek Trucking to Deep South, LLC (above) was amended to also include 100% of the stock of Integrated Freight Services.  Integrated Freight Services provided brokerage services and was no longer conducting operations at the time of the transaction.

 On September 21, 2012 the Company’s agreement to sell the shares of Triple C Transport to Deep South, LLC (above) was amended to also include the $150,000 note payable to Triple C Transport’s original owners, Craig and Vonnie White.

 On April 16, 2012 the Company entered into a confession of judgment and forbearance agreement with Mike DeSimone, former owner of Cross Creek Trucking of Central Point, OR, authorizing DeSimone to receive a general judgment in the amount of $3,745,415.54 against the Company and its subsidiary company, Cross Creek Trucking.  The forbearance portion of the agreement calls for the Company to make payments of $5,000.00 on the first of each month beginning September 1, 2012 through August 1, 2014 at which time the balance of the principle, accrued interests, and other fees will be due and payable.  To date the Company is in compliance with the terms of this agreement.

 On various dates since the fiscal year end, the Company has reached full and complete settlements with employees, creditors and/or note holders.  These settlements include:

●   Officer and employee payments of $827,000 settled for $36,500 cash plus common shares;

●   Former subsidiary owners payments of $467,000 settled for $17,000 cash plus convertible preferred shares; and

●   Note holder payments of $357,000 settled for future cash payments of $135,000 plus convertible preferred shares.