Quarterly report pursuant to Section 13 or 15(d)

Convertible Promissory Notes and Other Notes Payable (Tables)

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Convertible Promissory Notes and Other Notes Payable (Tables)
9 Months Ended
Dec. 31, 2012
Convertible Promissory Notes And Other Notes Payable Tables  
Convertible Promissory Notes and Other Notes Payable

The following table summarizes the components of the company’s secured and unsecured promissory notes and other notes payable at December 31, 2012 and March 31, 2012 (amounts in 100’s).

 

    December 31, 2012     March 31, 2012  
    Principal     Accrued           Principal     Accrued        
    Balance     Interest     Total     Balance     Interest     Total  
Senior Secured 10% Convertible Promissory Notes issued to Platinum:                                    
Exchange Note issued on October 11, 2012   $ 1,272,600     $ 28,900     $ 1,301,500     $ -     $ -     $ -  
Investment Note issued on October 11, 2012     500,000       11,300       511,300       -       -       -  
Investment Note issued on October 19, 2012     500,000       10,200       510,200       -       -       -  
      2,272,600       50,400       2,323,000       -       -       -  
Aggregate note discount     (985,500 )     -       (985,500 )     -       -       -  
    Total Senior notes (non-current)   $ 1,287,100     $ 50,400     $ 1,337,500     $ -     $ -     $ -  
                                                 
Convertible Promissory Notes:                                                
 February 2012 12% convertible promissory notes   $ -     $ -     $ -     $ 500,000     $ 5,300     $ 505,300  
   Note discount     -       -       -       (499,300 )     -       (499,300 )
    Total 12% convertible notes, net (non-current)   $ -     $ -     $ -     $ 700     $ 5,300     $ 6,000  
                                                 
Notes Payable to unrelated parties:                                                
  7.0% Notes payable (April 2011)   $ 11,500     $ 100     $ 11,600     $ 63,800     $ 400     $ 64,200  
  7.0% Notes payable (August 2012)     60,000       1,400       61,400       -       -       -  
      71,500     $ 1,500     $ 73,000       63,800     $ 400     $ 64,200  
 less: current portion     (18,100 )     (1,500 )     (19,600 )     (63,800 )     (400 )     (64,200 )
  7.0% Notes payable - non-current portion   $ 53,400     $ -     $ 53,400     $ -     $ -     $ -  
                                                 
  7.5% Notes payable to service providers for accounts payable                                                
converted to notes payable:                                                
     Burr, Pilger, Mayer   $ 91,800     $ 900     $ 92,700     $ 93,400     $ 1,100     $ 94,500  
     Desjardins     211,700       2,000       213,700       224,300       2,800       227,100  
     McCarthy Tetrault     435,900       200       436,100       459,400       5,700       465,100  
     May 2011 Morrison Foerster     -       -       -       2,420,100       37,900       2,458,000  
     August 2012 Morrison & Foerster Note A     964,700       -       964,700       -       -       -  
     August 2012 Morrison & Foerster Note B (1)     1,379,400       34,600       1,414,000       -       -       -  
     University Health Network  (1)     549,500       9,300       558,800       -       -       -  
      3,633,000       47,000       3,680,000       3,197,200       47,500       3,244,700  
        Note discount     (1,205,500 )     -       (1,205,500 )     (228,900 )     -       (228,900 )
      2,427,500       47,000       2,474,500       2,968,300       47,500       3,015,800  
 less: current portion     (617,000 )     (3,100 )     (620,100 )     (367,700 )     -       (367,700 )
    non-current portion and discount   $ 1,810,500     $ 43,900     $ 1,854,400     $ 2,600,600     $ 47,500     $ 2,648,100  
                                                 
   5.8%  and 8% Notes payable to insurance                                          
premium financing company (current)   $ 15,900     $ -     $ 15,900     $ 4,600     $ -     $ 4,600  
                                                 
  10% Notes payable to vendors for accounts                                          
payable converted to notes payable   $ 144,400     $ 22,100     $ 166,500     $ 165,400     $ 16,800     $ 182,200  
 less: current portion     (144,400 )     (22,100 )     (166,500 )     (146,000 )     -       (146,000 )
    non-current portion   $ -     $ -     $ -     $ 19,400     $ 16,800     $ 36,200  
                                                 
    Total notes payable to unrelated paties   $ 2,659,300     $ 70,600     $ 2,729,900     $ 3,202,100     $ 64,700     $ 3,266,800  
 less: current portion     (795,400 )     (26,700 )     (822,100 )     (582,100 )     (400 )     (582,500 )
    non-current portion and discount   $ 1,863,900     $ 43,900     $ 1,907,800     $ 2,620,000     $ 64,300     $ 2,684,300  
                                                 
Notes payable to related parties:                                                
  April 2011 7 % Note to Cato Holding Co. $ -     $ -     $ -     $ 293,300     $ 6,900     $ 300,200  
  October 2012 7.5% Note to Cato Holding Co.   293,600       1,900       295,500       -       -       -  
  October 2012 7.5% Note to Cato Research Ltd. (1)     1,009,000       17,100       1,026,100       -       -       -  
      1,302,600       19,000       1,321,600       293,300       6,900       300,200  
            Note discount     (157,900 )     -       (157,900 )     (24,300 )     -       (24,300 )
     Total notes payable to related parties   $ 1,144,700     $ 19,000     $ 1,163,700     $ 269,000     $ 6,900     $ 275,900  
 less: current portion     (110,100 )     (1,900 )     (112,000 )     (168,200 )     -       (168,200 )
    non-current portion and discount   $ 1,034,600     $ 17,100     $ 1,051,700     $ 100,800     $ 6,900     $ 107,700  
____________                                                
(1) Note and interest payable solely in restricted shares of the Company's common stock; see description of debt restructuring in Note 7.  
Incremental value of the Amended M&F Warrant

The Company determined that the incremental value of the Amended M&F Warrant was $121,650 at the modification date using the Black-Scholes Option Pricing Model and the following assumptions:

 

Assumption:   Pre-modification     Post-modification  
Market price per share   $ 0.94     $ 0.94  
Exercise price per share   $ 2.00     $ 2.00  
Risk-free interest rate     0.25 %     0.60 %
Expected term (years)     2.33       5.04  
Volatility     77.9 %     88.8 %
Dividend rate     0.0 %     0.0 %
                 
Fair Value per share   $ 0.24     $ 0.52