STOCKHOLDERS' EQUITY

12 Months Ended

Mar. 31, 2012

8.	STOCKHOLDERS’ EQUITY

In December 2009, the Company established its 2009 incentive plan (“the plan”) to provide additional incentive to selected employees, officers, directors and consultants of the Company and to retain the best available personnel for positions of substantial responsibility and to promote the long-term success of the Company. 2,000,000 shares of Company common stock were initially reserved for issuance pursuant to awards granted under the plan. Awards may be in the form of incentive stock options, non-qualified stock options, restricted shares or other arrangements or programs. On September 8, 2010, 250,000 shares of common stock were issued from the plan to several employees and consultants for services rendered. The Company recorded the fair value of $97,500 for these issued shares. As of March 31, 2012, total 1,419,093 shares were issued from the plan.

On November 15, 2010, the Company issued 18,182 common shares to its legal consul for services rendered. The Company recorded the fair value of $20,000 for these issued shares, which approximated the fair value of the shares on the date of issuance.

Pursuant to an Independent Director Agreement the Company entered into with Mr. Stephen J. Sax on April 14, 2011, the Company granted an award of 100,000 shares of restricted stock of the Company on the date of appointment. The Company recorded the fair value of $65,000 for these issued shares.

On April 18, 2011, the Company issued 28,571 common shares to its legal counsel Ellenoff Grossman & Schole LLP for services rendered. The Company recorded the fair value of $20,000 for these issued shares.

On September 21, 2011, the Company issued 1,377,000 common shares to several officers, directors, employees and consultants for their services. 580,000 shares were issued to the officers and directors. The Company recorded the fair value of $688,500 for these issued shares.

On November 1, 2011, the Company issued 100,000 common shares to its consultants in China for services rendered. The Company recorded the fair value of $32,000 for these issued shares.

On November 1, 2011, the Company sold 26,000 common shares to an individual at the price of $0.3 per share.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

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+ Details

Tongli Pharmaceuticals (USA), Inc. 10-K