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)
6 Months Ended
Sep. 30, 2013
Convertible Promissory Notes And Other Notes Payable Tables  
Convertible Promissory Notes and Other Notes Payable

The following table summarizes the Company’s secured and unsecured promissory notes and other notes payable at September 30, 2013 and March 31, 2013.

    September 30, 2013     March 31, 2013        
    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     $ 130,900     $ 1,403,500     $ 1,272,600     $ 61,700     $ 1,334,300  
Investment note issued on October 11, 2012     500,000       51,500       551,500       500,000       24,200       524,200  
Investment note issued on October 19, 2012     500,000       50,200       550,200       500,000       23,000       523,000  
Investment note issued on February 22, 2013     250,000       15,700       265,700       250,000       2,600       252,600  
Investment note issued on March 12, 2013     750,000       43,100       793,100       750,000       4,700       754,700  
      3,272,600       291,400       3,564,000       3,272,600       116,200       3,388,800  
                                                 
Convertible promissory note issued on July 26, 2013     250,000       4,600       254,600       -       -       -  
    Total senior notes     3,522,600       296,000       3,818,600       3,272,600       116,200       3,388,800  
                                                 
Aggregate note discount     (2,170,500 )     -       (2,170,500 )     (1,963,100 )     -       (1,963,100 )
    Net Senior notes (non-current)   $ 1,352,100     $ 296,000     $ 1,648,100     $ 1,309,500     $ 116,200     $ 1,425,700  
                                                 
                                                 
10% Convertible Promissory Notes (2013 Unit Notes)   $ 205,000     $ 3,000     $ 208,000     $ -     $ -     $ -  
 Note discount     (200,600 )     -       (200,600 )     -       -       -  
    Net convertible notes (all current)   $ 4,400     $ 3,000     $ 7,400     $ -     $ -     $ -  
                                                 
                                                 
Notes Payable to unrelated parties:                                                
7.5% notes payable to service providers for                                          
accounts payable converted to notes payable:                                          
     Burr, Pilger, Mayer   $ 90,400     $ 3,400     $ 93,800     $ 90,400     $ -     $ 90,400  
     Desjardins     191,600       8,000       199,600       194,100       800       194,900  
     McCarthy Tetrault     387,300       12,200       399,500       403,100       1,700       404,800  
     August 2012 Morrison & Foerster Note A     918,200       39,100       957,300       937,400       -       937,400  
     August 2012 Morrison & Foerster Note B (1)     1,379,400       126,400       1,505,800       1,379,400       60,100       1,439,500  
     University Health Network  (1)     549,500       40,100       589,600       549,500       19,400       568,900  
      3,516,400       229,200       3,745,600       3,553,900       82,000       3,635,900  
        Note discount     (1,004,300 )     -       (1,004,300 )     (1,142,600 )     -       (1,142,600 )
      2,512,100       229,200       2,741,300       2,411,300       82,000       2,493,300  
     less: current portion     (385,400 )     (62,700 )     (448,100 )     (450,300 )     (2,500 )     (452,800 )
     non-current portion and discount   $ 2,126,700     $ 166,500     $ 2,293,200     $ 1,961,000     $ 79,500     $ 2,040,500  
                                                 
5.75% and 10.25% notes payable to insurance                                          
premium financing company (current)   $ 57,400     $ -     $ 57,400     $ 4,200     $ -     $ 4,200  
                                                 
10% notes payable to vendors for accounts                                          
payable converted to notes payable   $ 119,400     $ 28,700     $ 148,100     $ 128,800     $ 23,300     $ 152,100  
     less: current portion     (119,400 )     (28,700 )     (148,100 )     (128,800 )     (23,300 )     (152,100 )
     non-current portion   $ -     $ -     $ -     $ -     $ -     $ -  
                                                 
  7.0% note payable (August 2012)   $ 58,800     $ 1,700     $ 60,500     $ 59,400     $ -     $ 59,400  
     less: current portion     (6,300 )     (1,700 )     (8,000 )     (8,100 )     -       (8,100 )
  7.0% notes payable - non-current portion   $ 52,500     $ -     $ 52,500     $ 51,300     $ -     $ 51,300  
                                                 
  Total notes payable to unrelated parties   $ 3,752,000     $ 259,600     $ 4,011,600     $ 3,746,300     $ 105,300     $ 3,851,600  
     less: current portion     (568,500 )     (93,100 )     (661,600 )     (591,400 )     (25,800 )     (617,200 )
     non-current portion     3,183,500       166,500       3,350,000       3,154,900       79,500       3,234,400  
     less: discount     (1,004,300 )     -       (1,004,300 )     (1,142,600 )     -       (1,142,600 )
    $ 2,179,200     $ 166,500     $ 2,345,700     $ 2,012,300     $ 79,500     $ 2,091,800  
                                                 
                                                 
Notes payable to related parties:                                                
  October 2012 7.5% note to Cato Holding Co.   $ 293,600     $ 18,900     $ 312,500     $ 293,600     $ 7,400     $ 301,000  
  October 2012 7.5% note to Cato Research Ltd. (1)     1,009,000       76,100       1,085,100       1,009,000       36,200       1,045,200  
      1,302,600       95,000       1,397,600       1,302,600       43,600       1,346,200  
            Note discount     (125,900 )     -       (125,900 )     (147,200 )     -       (147,200 )
     Total notes payable to related parties     1,176,700       95,000       1,271,700       1,155,400       43,600       1,199,000  
      less: current portion     (81,100 )     (18,900 )     (100,000 )     (85,600 )     (7,400 )     (93,000 )
      non-current portion and discount   $ 1,095,600     $ 76,100     $ 1,171,700     $ 1,069,800     $ 36,200     $ 1,106,000  

 

(1) Note and interest payable solely in restricted shares of the Company's common stock.

 

Components of the discount and interest rates
Face value   $ 250,000  
Discount attributable to:  
   Fair value of warrant     (146,800 )
   Beneficial conversion feature     (100,700 )
Inception date carrying value   $ 2,500  
         
Effective Interest Rate     159.05 %