----

----

| [x] | QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOR ENDED JUNE 30, 2012 |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITIION PERIOD FROM ____________ TO ____________ |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                                       | 45-2405975                           |
|------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |

| Large accelerated filer | [  ] | Accelerated filer                       [  ] |   |
|-----------------------------------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Non-accelerated filer             | [  ] | Smaller reporting company     [x]                                                                                                      |   |

----

----

| Item 1                            | Financial Statements                                                                                                                                 | 4      |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |                                                                                                                                                 |   |
|                              | Balance Sheets as of June 30, 2012 and March 31, 2012                                                                                                | 5      |
|                              |                                                                                                                                                 |   |
|                              | Statements of Operations for the Nine Months Ended June 30, 2012, and 2011 and for the Period from Inception, August 19, 1999, through June 30, 2012 | 6      |
|                              |                                                                                                                                                 |   |
|                              | Statement of Stockholder’s Equity for the Period from Inception through June 30, 2012                                                          | 7      |
|                              |                                                                                                                                                 |   |
|                              | Statements of Cash Flows for the Nine Months Ended June 30, 2012, and 2011 and the Period from Inception, August 19, 1999, through June 30, 2012     | 9      |
|                              |                                                                                                                                                 |   |
|                              | Notes to the Financial Statements                                                                                                                    | 11     |
|                              |                                                                                                                                                 |   |
| Item 2                            | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                          | 16     |
|                              |                                                                                                                                                 |   |
| Item 3                            | Quantitative and Qualitative Disclosures about Market Risk                                                                                           | 17     |
|                              |                                                                                                                                                 |   |
| Item 4                            | Controls and Procedures                                                                                                                              | 18     |
|                              |                                                                                                                                                 |   |
| Part II – Other Information |
|                              |                                                                                                                                                 |   |
| Item 1                            | Legal Proceedings                                                                                                                                    | 19     |
|                              |                                                                                                                                                 |   |
|                              | Item 1A. Risk Factors                                                                                                                                | 19     |
|                              |                                                                                                                                                 |   |
|                              |                                                                                                                                                 |   |
|                              |                                                                                                                                                 |   |
| Item 2                            | Unregistered Sales Of Equity Securities And Use Of Proceeds                                                                                          | 19     |
|                              |                                                                                                                                                 |   |
| Item 3                            | Defaults Upon Senior Securities                                                                                                                      | 19     |
|                              |                                                                                                                                                 |   |
| Item 4                            | Mine Safety Disclosure                                                                                                                               | 19     |
|                              |                                                                                                                                                 |   |
| Item 5                            | Other Information                                                                                                                                    | 19     |
|                              |                                                                                                                                                 |   |
| Item 6                            | Exhibits                                                                                                                                             | 20     |

----

----

|                                                                                                                                                                         |   | June 30, 2012 |        |   | March 31, 2012 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------------|--------|
| ASSETS                                                                                                                                                                       |   |          |        |   |           |   |
|                                                                                                                                                                         |   |          |        |   |           |   |
| CURRENT ASSETS:                                                                                                                                                              |   |          |        |   |           |   |
|                                                                                                                                                                         |   |          |        |   |           |   |
| Cash                                                                                                                                                                         |   | $             | 9,373       |   |           | $      | 36,447 |   |
| Prepaid expenses                                                                                                                                                             |   |          | 5,440,077   |   |           |   | 5,403,921 |   |
| Total Current Assets                                                                                                                                                         |   |          | 5,449,450   |   |           |   | 5,440,368 |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                                                                                                  |   |          | 48,368      |   |           |   | 48,144 |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| OTHER ASSETS                                                                                                                                                                 |   |          |        |   |           |   |   |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| Note Receivable                                                                                                                                                              |   |          | 218,063     |   |           |   | 215,383 |   |
| Deposits                                                                                                                                                                     |   |          | 6,270       |   |           |   | 6,270 |   |
| Intangibles                                                                                                                                                                  |   |          | 500         |   |           |   | 0 |   |
| Total Other Assets                                                                                                                                                           |   |          | 224,833     |   |           |   | 221,653 |   |
| TOTAL ASSETS                                                                                                                                                                 |   | $             | 5,722,651   |   |           | $      | 5,710,165 |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT)                                                                                                                             |   |          |        |   |           |   |   |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                         |   |          |        |   |           |   |   |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                        |   | $             | 3,775,878   |   |           | $      | 3,142,645 |   |
| Accounts payable and accrued expenses - Related party                                                                                                                        |   |          | 0           |   |           |   | 20,679 |   |
| Notes Payable                                                                                                                                                                |   |          | 95,000      |   |           |   | 95,000 |   |
| Notes Payable - Related parties                                                                                                                                              |   |          | 323,206     |   |           |   | 942,759 |   |
| Total Current Liabilities                                                                                                                                                    |   |          | 4,194,084   |   |           |   | 4,201,083 |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| LONG TERM LIABILITIES:                                                                                                                                                       |   |          |        |   |           |   |   |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| Notes Payable - Related parties                                                                                                                                              |   |          | 661,922     |   |           |   | 0 |   |
| Total Current Liabilities                                                                                                                                                    |   |          | 661,922     |   |           |   | 0 |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| STOCKHOLERS' EQUITY / (DEFICIT)                                                                                                                                              |   |          |        |   |           |   |   |   |
|                                                                                                                                                                         |   |          |        |   |           |   |   |   |
| Preferred stock, $.001 par value; 5 shares issued and outstanding at June 30, 2012                                                                                           |   |          |        |   |           |   |   |   |
| Common Stock, .001 par value: 989,999,995 shares authorized: 124,736,955 and 120,946,840 shares issued and outstanding as of June 30, 2012, and March 31, 2012, respectively |   |          | 124,737     |   |           |   | 120,947 |   |
| Additional paid-in capital                                                                                                                                                   |   |          | 20,046,583  |   |           |   | 19,607,273 |   |
| Stock issue payable                                                                                                                                                          |   |          | 13,000      |   |           |   | 0 |   |
| Deficit accumulated during the development stage                                                                                                                             |   |          | (19,317,675 | )      |           |   | (18,219,138 | ) |
| Total Stockholders' Equity / (Deficit)                                                                                                                                       |   |          | 866,645     |   |           |   | 1,509,082 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT)                                                                                                                       |   | $             | 5,722,651   |   |           | $      | 5,710,165 |   |

----

|                                     |   | Three Months EndedJune 30, |        |   | For the Period August 19, 1999 (Inception) to June |   |
|------------------------------------------|--------|----------------------------|-------------|--------|----------------------------------------------------|--------|
|                                     |   | 2012                       |        |   | 2011                                               |   |   |   | 30, 2012 |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |
| Sales                                    |   |                       | 0           |   |                                               |   | 0 |   |   |   | 370,800 |   |
| Cost of sales                            |   |                       | 0           |   |                                               |   | 0 |   |   |   | 0 |   |
| Gross profit                             |   |                       | 0           |   |                                               |   | 0 |   |   |   | 370,800 |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Operating Expenses                       |   |                       |        |   |                                               |   |   |   |   |   |   |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Depreciation and amortization            |   |                       | 1,880       |   |                                               |   | 50 |   |   |   | 6,589 |   |
| General and administrative expenses      |   |                       | 1,069,642   |   |                                               |   | 649,853 |   |   |   | 13,646,946 |   |
| Impairment of goodwill                   |   |                       | 0           |   |                                               |   | 3,833,722 |   |   |   | 3,833,722 |   |
| Impairment of long-lived assets          |   |                       | 0           |   |                                               |   | 0 |   |   |   | 855 |   |
| Impairment of loan receivable            |   |                       | 0           |   |                                               |   | 0 |   |   |   | 130,000 |   |
| Total operating expenses                 |   |                       | 1,071,522   |   |                                               |   | 4,483,625 |   |   |   | 17,618,112 |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Income / (Loss) from Operations          |   |                       | (1,071,522  | )      |                                               |   | (4,483,625 | ) |   |   | (17,247,312 | ) |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Other Income / (Expense)                 |   |                       |        |   |                                               |   |   |   |   |   |   |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Other income                             |   |                       | 0           |   |                                               |   | 0 |   |   |   | 56,889 |   |
| Loss from conversion of shareholder debt |   |                       | 0           |   |                                               |   | 0 |   |   |   | (1,506,528 | ) |
| Interest Income                          |   |                       | 2,680       |   |                                               |   | 0 |   |   |   | 3,063 |   |
| Interest (expense)                       |   |                       | (2,948      | )      |                                               |   | (4,354 | ) |   |   | (564,471 | ) |
| Interest (expense) - Related parties     |   |                       | (26,747     | )      |                                               |   | (4,271 | ) |   |   | (59,316 | ) |
| Unrealized Exchange (Gain) / Loss        |   |                       | 0           |   |                                               |   | 0 |   |   |   | 0 |   |
| Total Other Income / (Expense)           |   |                       | (27,015     | )      |                                               |   | (8,625 | ) |   |   | (2,070,363 | ) |
| Income / (Loss) before Income Taxes      |   |                       | (1,098,537  | )      |                                               |   | (4,492,250 | ) |   |   | (19,317,675 | ) |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Provisions for Income Taxes              |   |                       | 0           |   |                                               |   | 0 |   |   |   | 0 |   |
| Net Income / (Loss)                      |   |                       | (1,098,537  | )      |                                               |   | (4,492,250 | ) |   |   | (19,317,675 | ) |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Net Income / (Loss) Per Share:           |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Basic and Diluted                        |   |                       | (0.01       | )      |                                               |   | (0.13 | ) |   |   |   |   |
|                                     |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Weighted Average Shares Outstanding      |   |                       |        |   |                                               |   |   |   |   |   |   |   |
| Basic and Diluted                        |   |                       | 124,222,044 |   |                                               |   | 34,504,511 |   |   |   |   |   |

----

|                                             |   | Common Stock |      |   | Additional Paid-in |   |   | Deficit Accumulated During the Development |   |   | Total Stockholders' |   |
|--------------------------------------------------|--------|--------------|-----------|--------|--------------------|--------|--------|--------------------------------------------|--------|--------|---------------------|--------|
|                                             |   | Shares       |      |   | Amount             |   |   | Capital                                    |   |   | Stage               |   |   | Equity |   |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |
| Balance at inception, August 19, 1999            |   |         | 0         |   |               | $      | 0      |                                       |   | $      | 0                   |   |   | $ | 0 |   |   | $ | 0 |   |
| Issuance of common stock                         |   |         | 2,000     |   |               |   | 2      |                                       |   |   | 18                  |   |   |   |   |   |   |   | 20 |   |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (84,021 | ) |   |   | (84,021 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 1999                     |   |         | 2,000     |   |               |   | 2      |                                       |   |   | 18                  |   |   |   | (84,021 | ) |   |   | (84,001 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (230,879 | ) |   |   | (230,879 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2000                     |   |         | 2,000     |   |               |   | 2      |                                       |   |   | 18                  |   |   |   | (314,900 | ) |   |   | (314,880 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (494,816 | ) |   |   | (494,816 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2001                     |   |         | 2,000     |   |               |   | 2      |                                       |   |   | 18                  |   |   |   | (809,716 | ) |   |   | (809,696 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (384,590 | ) |   |   | (384,590 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2002                     |   |         | 2,000     |   |               |   | 2      |                                       |   |   | 18                  |   |   |   | (1,194,306 | ) |   |   | (1,194,286 | ) |
| Reclassification of debt to equity               |   |         | 4,300     |   |               |   | 4      |                                       |   |   | 1,581,979           |   |   |   | 0 |   |   |   | 1,581,983 |   |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (736,364 | ) |   |   | (736,364 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2003                     |   |         | 6,300     |   |               |   | 6      |                                       |   |   | 1,581,997           |   |   |   | (1,930,670 | ) |   |   | (348,667 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (205,994 | ) |   |   | (205,994 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2004                     |   |         | 6,300     |   |               |   | 6      |                                       |   |   | 1,581,997           |   |   |   | (2,136,664 | ) |   |   | (554,661 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (1,592,469 | ) |   |   | (1,592,469 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2005                     |   |         | 6,300     |   |               |   | 6      |                                       |   |   | 1,581,997           |   |   |   | (3,729,133 | ) |   |   | (2,147,130 | ) |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (1,376,529 | ) |   |   | (1,376,529 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2006                        |   |         | 6,300     |   |               |   | 6      |                                       |   |   | 1,581,997           |   |   |   | (5,105,662 | ) |   |   | (3,523,659 | ) |
| Shares issued for services                       |   |         | 88,285    |   |               |   | 88     |                                       |   |   | 123,511             |   |   |   |   |   |   |   | 123,599 |   |
| Expenses paid by related party                   |   |         |      |   |               |   |   |                                       |   |   | 515,000             |   |   |   |   |   |   |   | 515,000 |   |
| Stock issued as dividend                         |   |         | 2,636,564 |   |               |   | 2,637  |                                       |   |   | (2,637              | )      |   |   |   |   |   |   | 0 |   |
| Conversion of SKRM Interactive payable to equity |   |         |      |   |               |   |   | 4,382,718                                  |   |   |                |   |   |   |   | 4,382,718 |   |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (1,810,502 | ) |   |   | (1,810,502 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2007                        |   |         | 2,731,149 |   |               |   | 2,731  |                                       |   |   | 6,600,589           |   |   |   | (6,916,164 | ) |   |   | (312,844 | ) |
| Stock issued for debt                            |   |         | 669,577   |   |               |   | 670    |                                       |   |   | 1,673,250           |   |   |   |   |   |   |   | 1,673,920 |   |
| Net loss                                         |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   | (1,596,320 | ) |   |   | (1,596,320 | ) |
|                                             |   |         |      |   |               |   |   |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2008                        |   |         | 3,400,726 |   |               |   | 3,401  |                                       |   |   | 8,273,839           |   |   |   | (8,512,484 | ) |   |   | (235,244 | ) |

----

|                                         |   | Common Stock |        |   | Additional Paid-in |   |    | Deficit Accumulated During the Development |   |   | Total Stockholders' |   |
|----------------------------------------------|--------|--------------|-------------|--------|--------------------|--------|---------|--------------------------------------------|--------|--------|---------------------|--------|
|                                         |   | Shares       |        |   | Amount             |   |    | Capital                                    |   |   | Stage               |   |   | Equity |   |
| Net loss                                     |   |         |        |   |               |   |    |                                       |   |   |                | (6,954 | ) |   |   | (6,954 | ) |
| Balance at March 31, 2009                    |   |         | 3,400,726   |   |               |   | 3,401   |                                       |   |   | 8,273,839           |   |   |   | (8,519,438 | ) |   |   | (242,198 | ) |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Conversion of Martin debt                    |   |         | 300,000     |   |               |   | 300     |                                       |   |   | 60,700              |   |   |   |   |   |   |   | 61,000 |   |
| Net loss                                     |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   | (73,636 | ) |   |   | (73,636 | ) |
| Balance at March 31, 2010                    |   |         | 3,700,726   |   |               |   | 3,701   |                                       |   |   | 8,334,539           |   |   |   | (8,593,074 | ) |   |   | (254,834 | ) |
| Stock-based compensation - Non-Emp           |   |         |        |   |               |   |    |                                       |   |   | 79,500              |   |   |   |   |   |   |   | 79,500 |   |
| Net loss                                     |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   | (115,118 | ) |   |   | (115,118 | ) |
| Balance at March 31, 2011                    |   |         | 3,700,726   |   |               |   | 3,701   |                                       |   |   | 8,414,039           |   |   |   | (8,708,192 | ) |   |   | (290,452 | ) |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Treasury Stock - Redemtion and cancellation  |   |         | (1,700,000  | )      |               |   | (1,700  | )                                          |   |   | (848,300            | )      |   |   |   |   |   |   | (850,000 | ) |
| Issuance of common stock                     |   |         | 46,021,000  |   |               |   | 46,021  |                                       |   |   | 5,242,780           |   |   |   | 0 |   |   |   | 5,288,800 |   |
| Shares issued for services                   |   |         | 14,015,500  |   |               |   | 14,016  |                                       |   |   | 1,442,405           |   |   |   | 0 |   |   |   | 1,456,420 |   |
| Restricted Stock - Employees & Directors |   |         | 53,650,000  |   |               |   | 53,650  |                                       |   |   | 5,311,350           |   |   |   | 0 |   |   |   | 5,365,000 |   |
| Exercised warrants                           |   |         | 259,614     |   |               |   | 260     |                                       |   |   | 0                   |   |   |   | 0 |   |   |   | 260 |   |
| Conversion of debt to equity                 |   |         | 5,000,000   |   |               |   | 5,000   |                                       |   |   | 45,000              |   |   |   | 0 |   |   |   | 50,000 |   |
| Net (Loss) / Income                          |   |         | 0           |   |               |   | 0       |                                       |   |   | 0                   |   |   |   | (9,510,946 | ) |   |   | (9,510,946 | ) |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2012                    |   |         | 120,946,840 |   |               |   | 120,947 |                                       |   |   | 19,607,273          |   |   |   | (18,219,138 | ) |   |   | 1,509,082 |   |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Issuance of common stock - 1st Quarter       |   |         | 910,115     |   |               |   | 910     |                                       |   |   | 154,190             |   |   |   |   |   |   |   | 155,100 |   |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Shares issued for services - 1st Quarter     |   |         | 2,880,000   |   |               |   | 2,880   |                                       |   |   | 285,120             |   |   |   |   |   |   |   | 288,000 |   |
|                                         |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   |   |   |   |   |   |   |
| Net loss - 1st Quarter                       |   |         |        |   |               |   |    |                                       |   |   |                |   |   |   | (1,098,537 | ) |   |   | (1,098,537 | ) |
| Balance at June 30, 2012                     |   |         | 124,736,955 |   |               |   | 124,737 |                                       |   |   | 20,046,583          |   |   |   | (19,317,675 | ) |   |   | 853,645 |   |

----

|                                                                                   |   | Three Months EndedJune 30, |       |   | For the Period August 19, 1999 (Inception) to |   |
|----------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------------------------------|--------|
|                                                                                   |   | 2012                       |       |   | 2011                                          |   |   | June 30, 2012 |   |
| CASH FLOWS FROM OPERATIONS:                                                            |   |                       |       |   |                                          |   |   |   |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |
| Net Income / (Loss)                                                                    |   |                       | (1,098,537 | )      |                                          |   | (4,492,249 | ) |   |   | (19,317,675 | ) |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Adjustments to reconcile net income / (loss) to net cash used in operating activities: |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Depreciation & Amortization                                                        |   |                       | 1,880      |   |                                          |   | 50 |   |   |   | 58,540 |   |
| Impairment of Goodwill                                                                 |   |                       |       |   |                                          |   | 3,833,722 |   |   |   | 3,833,722 |   |
| Impairment of Long-Lived Assets                                                        |   |                       |       |   |                                          |   |   |   |   |   | 855 |   |
| Impairment of Loan Receivable                                                          |   |                       |       |   |                                          |   |   |   |   |   | 130,000 |   |
| Accrued Interest on payable converted to debt                                          |   |                       |       |   |                                          |   |   |   |   |   | 209,817 |   |
| Issurance of warrants for services                                                     |   |                       |       |   |                                          |   |   |   |   |   | 79,500 |   |
| Common stock issued for services                                                       |   |                       | 288,000    |   |                                          |   | 550,000 |   |   |   | 1,868,279 |   |
| Loss on conversion of stockholder debt to Common Stock                                 |   |                       |       |   |                                          |   |   |   |   |   | 1,506,528 |   |
| Expense paid by stockholder and affiliate                                              |   |                       |       |   |                                          |   |   |   |   |   | 636,796 |   |
| Payables and servcies converted to Common Stock                                        |   |                       |       |   |                                          |   |   |   |   |   | 770,674 |   |
| Assumption of liabilities over value of assets                                         |   |                       | 0          |   |                                          |   | (833,722 | ) |   |   | (833,722 | ) |
| Changes in Assets & Liabilities:                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Decrease / (Increase) in prepaid expenses                                              |   |                       | (36,156    | )      |                                          |   | (311,014 | ) |   |   | (81,347 | ) |
| Decrease / (Increase) in note receivable                                               |   |                       | (2,680     | )      |                                          |   | 0 |   |   |   | (218,063 | ) |
| (Decrease) / Increase in accounts payable and accrued expenses                         |   |                       | 633,233    |   |                                          |   | 845,656 |   |   |   | 3,785,132 |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| (Decrease) / Increase in interest payable to stockholder                               |   |                       | (20,679    | )      |                                          |   | 4,271 |   |   |   | 335,757 |   |
| (Decrease) / Increase in notes payable related party - current                         |   |                       | 42,369     |   |                                          |   |   |   |   |   | 42,369 |   |
| Net cash provided by operating activities                                              |   |                       | (192,569   | )      |                                          |   | (403,287 | ) |   |   | (7,192,838 | ) |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING:                                                             |   |                       |       |   |                                          |   |   |   |   |   |   |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Purchase of property plant and equip                                                   |   |                       | (2,104     | )      |                                          |   | (8,501 | ) |   |   | (107,763 | ) |
| Note Receivable                                                                        |   |                       |       |   |                                          |   |   |   |   |   | (130,000 | ) |
| Intangibles                                                                            |   |                       | (500       | )      |                                          |   |   |   |   |   | (500 | ) |
| Net cash used in investing activities                                                  |   |                       | (2,604     | )      |                                          |   | (8,501 | ) |   |   | (238,263 | ) |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING:                                                             |   |                       |       |   |                                          |   |   |   |   |   |   |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Proceeds from parent company                                                           |   |                       |       |   |                                          |   |   |   |   |   | 697,193 |   |
| Net proceeds from notes payable - other                                                |   |                       |       |   |                                          |   | 145,000 |   |   |   | 91,982 |   |
| Net proceeds from notes payable - shareholder                                          |   |                       |       |   |                                          |   |   |   |   |   | 1,721,208 |   |
| Net proceeds from notes payable - affiliates                                           |   |                       |       |   |                                          |   |   |   |   |   | 2,423,191 |   |
| Net proceedsfrom stock issue payable                                                   |   |                       | 13,000     |   |                                          |   | 39,000 |   |   |   | 13,000 |   |
| Proceeds from inssuance of common stock                                                |   |                       | 155,100    |   |                                          |   | 320,300 |   |   |   | 2,493,900 |   |
| Net cash from financing activities                                                     |   |                       | 168,100    |   |                                          |   | 504,300 |   |   |   | 7,440,474 |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| Net Increase / (Decrease) in cash                                                      |   |                       | (27,074    | )      |                                          |   | 92,512 |   |   |   | 9,373 |   |
|                                                                                   |   |                       |       |   |                                          |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                            |   |                       | 36,447     |   |                                          |   | 101 |   |   |   | 0 |   |
| CASH AT END OF PERIOD                                                                  |   |                       | 9,373      |   |                                          |   | 92,613 |   |   |   | 9,373 |   |

----

|                                |   | Three Months EndedJune 30, |    |   | April 19. 1999 to |   |
|-------------------------------------|--------|----------------------------|---------|--------|-------------------|--------|
|                                |   | 2012                       |    |   | 2011              |   |   | June 30, 2012 |   |
| SUPPLEMENTAL CASH FLOW INFORMATION: |   |                       |    |   |              |   |   |   |   |
|                                |   |                       |    |   |              |   |   |   |   |
| Common stock issued for services    |   |                       | 288,000 |   |              |   | 588,800 |   |   |   | 1,868,279 |   |

----

----

----

|                                                                                                                                                                                                                         |   | June 30, 2012 |    |   | March 31, 2012 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|----------------|--------|
|                                                                                                                                                                                                                         |   |          |    |   |           |   |
| Note payable, 12% interest, principal and interest due monthly commencing January 1, 2013, and due June 1, 2014. (1)                                                                                                         |   | $             | 167,758 |   |           | $      | 142,759 |   |
|                                                                                                                                                                                                                         |   |          |    |   |           |   |
| Note payable, 12% interest, principal and interest due monthly commencing January 1, 2013, and due June 1, 2014. Interst payment due 8/31/2012 of 10% of funds raised between date of extension and 8/31/2012 up to $10,000. |   | 817,370       |    |   | 800,000        |   |
|                                                                                                                                                                                                                         |   | $             | 985,128 |   |           | $      | 942,759 |   |
| Current portion of notes payable                                                                                                                                                                                             |   | $             | 323,206 |   |           | $      | 942,759 |   |
|                                                                                                                                                                                                                         |   |          |    |   |           |   |   |   |
| Non current portion of notes payable                                                                                                                                                                                         |   | $             | 661,922 |   |           | $      | 0 |   |

| (1)                 This note is convertible into 881,744 shares of common stock for its cancellation and the conversion price is based on the 10-day volume-weighted average price (“VWAP”) of the Company’s common stock or $0.16, whichever is less.  The accrued interest shall be converted at the same rate. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                   |   | June 30, 2012 |   |   | March 31, 2012 |   |
|------------------------------------------------------------------------|--------|---------------|--------|--------|----------------|--------|
|                                                                   |   |          |   |   |           |   |
| Notes payable, 15% interest, principle and interest due April 12, 2013 |   | $             | 45,000 |   |           | $      | 45,000 |   |
|                                                                   |   |          |   |   |           |   |   |   |
| Note payable, 10% interest, principle and interest due March 18, 2013  |   |          | 50,000 |   |           |   | 50,000 |   |
|                                                                   |   | $             | 95,000 |   |           | $      | 95,000 |   |

----

----

----

|                                   |   | Number of Warrants |     |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Terms |   |   | Aggregate Intrinsic Value |   |
|----------------------------------------|--------|--------------------|----------|--------|---------------------------------|--------|--------|----------------------------------------------|--------|--------|---------------------------|--------|
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |
| Outstanding at March 31, 2010          |   |               |     |   |                            |   |   |                                         |   |   |                      |   |
| Granted                                |   |               | 500,000  |   |                            | $      | 0.16   |                                         |   |   |                      |   |   |   |
| Exercised                              |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |
| Exchanged for Shares                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |
| Expired                                |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |
| Outstanding at March 31, 2011          |   |               | 500,000  |   |                            | $      | 0.16   |                                         |   |   | 4.87                      |   |   |   | 70,000 |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Granted                                |   |               | 0        |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Exercised                              |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Exchanged for Shares                   |   |               | (300,000 | )      |                            | $      | 0.16   |                                         |   |   |                      |   |   |   |   |   |
| Expired                                |   |               | 0        |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Outstanding at March 31, 2012          |   |               | 200,000  |   |                            | $      | 0.16   |                                         |   |   | 3.87                      |   |   |   | 28,000 |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Granted                                |   |               | 0        |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Exercised                              |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Exchanged for Shares                   |   |               | 0        |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Expired                                |   |               | 0        |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Outstanding at June 30, 2012           |   |               | 200,000  |   |                            | $      | 0.16   |                                         |   |   | 3.62                      |   |   |   | 26,000 |   |
|                                   |   |               |     |   |                            |   |   |                                         |   |   |                      |   |   |   |   |   |
| Exercisable at June 30, 2012           |   |               | 200,000  |   |                            | $      | 0.16   |                                         |   |   | 3.62                      |   |   |   | 26,000 |   |
| Weighted Average Grant Date Fair Value |   |               |     |   |                            | $      | 0.16   |                                         |   |   |                      |   |   |   |   |   |

| Stock Price             | $0.16   |   |
|-------------------------|---------|--------|
| Expected Term           | 5 Years |   |
| Expected Volatility     | 252.35% |   |
| Dividend Yield          | 0       |   |
| Rick Free Interest Rate | 1.125%  |   |

----

----

----

----

| Number | Description |
|--------|-------------|

| 31.1 (2) | Certification of Chief Executive Officer of the Company as required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 (2) | Certification of Chief Financial Officer of the Company as required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 (2) | Certification of Chief Executive Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 Of 18 U.S.C. 63 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 (2) | Certification of Chief Financial Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 Of 18 U.S.C. 63 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|           | VRDT CORPORATION |                      |
|--------------------------------------------------------|------------------|---------------------------|
|                                                   |             |                 |   |
|                                                   |             |                      |   |
| Date: August 13, 2012                                  | By:    | /s/ Graham Norton-Standen |   |
|                                                   |             | Graham Norton-Standen     |   |
|                                                   |             | Executive Chairman        |   |
|                                                   |             |                      |   |
| Date: August 13, 2012                                  | By:    | /s/ Dennis Hogan          |   |
|                                                   |             | Dennis Hogan              |   |
|                                                   |             | Chief Financial Officer   |   |