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SUBSEQUENT EVENT
6 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

NOTE 15 – SUBSEQUENT EVENT

 

On February 28, 2011, the Company acquired an US patent from L.Y. Hong Kong Biotech Limited (“LYHK”), L.Y. Research Corp’s wholly owned subsidiary incorporated in Hong Kong, China, in exchange for 44,254,952 shares of common stock at the acquisition date. In addition, 11,063,968 shares of common stock became issuable to the seller upon the occurrence of the quotation of the Company’s common stock on the OTCBB on September 9, 2011. The consideration of $32,748,665 at inception was calculated by multiplying 44,254,952 common stock shares by the Company’s quoted stock price of $0.74 per share on February 28, 2011. It is being amortized over the shorter of its remaining legal life, 9.9 years, or its useful life, on a straight-line basis. An additional consideration of $2,765,992 was calculated by multiplying 11,063,968 common stock shares by the Company’s quoted price of $0.25 per share on September 9, 2011 when the Company’s stock was successfully listed on the OTCQB and the L.Y. Research Corp was entitled to the 11,063,968 shares of the common stock. However, at the year ended on March 31, 2012, the Company reassessed the value of this patent for an impairment analysis. Per the impairment analysis, the Company determined that the patent’s value was impaired, therefore, the net carrying value of the patent was written off as of March 31, 2012.

 

In accordance with the agreement between the Company and L.Y. Research Corp, the patent will be returned to L.Y. Research Corp. and the shares issued to LYHK will be returned to the Company effective October 21, 2012 if the $20 million financing target is not achieved.

 

On October 21, 2012, the targeted financing did not occur; therefore, the patent is to be returned to L.Y. Research Corp. and the shares issued (or issuable) to LYHK are to be returned to the Company. The actual return of the patent and shares will be accounted for when they occur. Such event will have no impact on the Company’s results of current operations.