Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Oct. 31, 2013 | Dec. 16, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-13 | ' |
Entity Registrant Name | 'Cornerworld Corp | ' |
Entity Central Index Key | '0001338242 | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 156,813,704 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Oct. 31, 2013 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash | $587,057 | $1,150,880 |
Accounts receivable (net of allowance for doubtful accounts of $51,425 and $61,349 at October 31, 2013 and April 30, 2013, respectively) | 72,707 | 117,440 |
Other receivable | 800,000 | ' |
Prepaid expenses and other current assets | 136,775 | 79,761 |
Assets of discontinued operations held for sale | ' | 6,536,369 |
Total current assets | 1,596,539 | 7,884,450 |
Property and equipment, net | 26,407 | 53,551 |
Other assets | 27,994 | 28,032 |
TOTAL ASSETS | 1,650,940 | 7,966,033 |
Current liabilities: | ' | ' |
Accounts payable | 828,913 | 1,185,947 |
Accrued expenses | 372,177 | 523,741 |
Notes payable, current portion | 16,316 | 16,316 |
Notes payable related parties, current portion net of unamortized discount of $0 and $7,045 at October 31, 2013 and April 30, 2013, respectively | 77,359 | 133,161 |
Lease payable, current portion | 10,704 | 10,704 |
Deferred revenue | 44,124 | 60,735 |
Liabilities of discontinued operations held for sale | ' | 8,246,288 |
Total current liabilities | 1,349,593 | 10,176,892 |
Long-term liabilities: | ' | ' |
Notes payable related parties, net of current portion | 261,599 | 198,752 |
Lease payable, non-current portion | 4,086 | 9,139 |
Total liabilities | 1,615,278 | 10,384,783 |
Commitments and Contingencies | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock, $0.001 par value, 250,000,000 shares authorized; 156,813,704 and 157,313,704 shares issued and outstanding, at October 31, 2013 and April 30, 2013, respectively | 156,813 | 157,313 |
Additional paid-in capital | 11,798,714 | 11,783,945 |
Retained earnings (accumulated deficit) | -11,919,865 | -14,360,008 |
Total stockholders' equity (deficit) | 35,662 | -2,418,750 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $1,650,940 | $7,966,033 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 |
Accounts receivable, allowance for doubtful accounts | $51,425 | $61,349 |
Preferred stock, par value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 156,813,704 | 156,813,704 |
Common stock, shares outstanding | 157,313,704 | 157,313,704 |
Current Notes Payable, Related Parties [Member] | ' | ' |
Notes payable, unamortized discount | $883 | $7,045 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Condensed Consolidated Statements of Operations [Abstract] | ' | ' | ' | ' |
Sales, net | $216,070 | $471,347 | $515,503 | $1,181,531 |
Costs of goods sold | 96,751 | 170,311 | 218,434 | 455,504 |
Gross profit | 119,319 | 301,036 | 297,069 | 726,027 |
Expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 294,953 | 694,714 | 914,502 | 1,659,132 |
Depreciation and amortization | 11,960 | 18,893 | 26,833 | 37,493 |
Total Operating expenses | 306,913 | 713,607 | 941,335 | 1,696,625 |
Operating loss | -187,594 | -412,571 | -644,266 | -970,598 |
Other income (expense), net: | ' | ' | ' | ' |
Interest expense | -7,434 | -9,542 | -17,700 | -18,858 |
Other income (expense), net | -225,000 | ' | -225,002 | -100 |
Total other expense, net | -232,434 | -9,542 | -242,702 | -18,958 |
Loss from continuing operations before income taxes | -420,028 | -422,113 | -886,968 | -989,556 |
Income taxes | ' | ' | ' | ' |
Loss from continuing operations | -420,028 | -422,113 | -886,968 | -989,556 |
Income from discontinued operations, net of tax | 139,964 | 317,066 | 538,568 | 729,810 |
Gain from discontinued operations, net of tax | 2,788,543 | ' | 2,788,543 | ' |
Net income (loss) | $2,508,479 | ($105,047) | $2,440,143 | ($259,746) |
Basic earnings (loss) per share from continuing operations | $0 | $0 | ($0.01) | $0 |
Basic earnings (loss) per share from discontinued operations | $0.02 | $0 | $0.02 | $0 |
Basic earnings (loss) per share | $0.02 | $0 | $0.02 | $0 |
Diluted earnings (loss) per share from continuing operations | $0 | $0 | ($0.01) | $0 |
Diluted earnings (loss) per share from discontinued operations | $0.02 | $0 | $0.02 | $0 |
Diluted earnings (loss) per share | $0.02 | $0 | $0.02 | $0 |
Basic weighted average number shares outstanding | 156,998,486 | 147,547,607 | 157,156,095 | 147,547,607 |
Diluted weighted average number shares outstanding | 163,131,893 | 147,547,607 | 157,156,095 | 147,547,607 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Apr. 30, 2013 | ($2,418,750) | $157,313 | $11,783,945 | ($14,360,008) |
Balance, shares at Apr. 30, 2013 | ' | 157,313,704 | ' | ' |
Stock-based compensation expense | 14,269 | ' | 14,269 | ' |
Retirement of shares, value | ' | -500 | 500 | ' |
Retirement of shares, shares | ' | -500,000 | ' | ' |
Net income | 2,440,143 | ' | ' | 2,440,143 |
Balance at Oct. 31, 2013 | $35,662 | $156,813 | $11,798,714 | ($11,919,865) |
Balance, shares at Oct. 31, 2013 | ' | 156,813,704 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | $2,440,143 | ($259,746) |
Adjustments to reconcile net loss to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 26,833 | 37,493 |
Amortization of discount on debt | 7,045 | 24,338 |
Provision for doubtful accounts | 42,285 | 112,258 |
Stock-based compensation | 14,269 | 83,016 |
Changes in operating assets and liabilities, net of acquisitions and divestitures: | ' | ' |
Accounts receivable | 2,448 | 51,510 |
Changes in other receivables | -800,000 | ' |
Prepaid expenses and other current assets | -57,014 | -14,622 |
Other assets | 38 | 698 |
Accounts payable | -357,034 | -270,265 |
Accrued expenses | -151,564 | 128,370 |
Deferred revenue | -16,611 | -4,722 |
Other liabilities | ' | ' |
Changes in assets and liabilities of discontinued operations | -1,709,919 | 345,937 |
Net cash provided by (used in) operating activities | -559,081 | 234,265 |
Cash Flows from Investing Activities | ' | ' |
Proceeds from sale of fixed assets | ' | ' |
Purchases of property and equipment | -4,439 | -469 |
Net cash used in investing activities | -4,439 | -469 |
Cash Flows from Financing Activities | ' | ' |
Payments on capital lease | -303 | -4,414 |
Net cash used in financing activities | -303 | -4,414 |
Net increase (decrease) in cash | -563,823 | 229,382 |
Cash at beginning of period | 1,150,880 | 890,415 |
Cash at end of period | 587,057 | 1,119,797 |
Cash paid for: | ' | ' |
Interest | 450,291 | 473,622 |
Income taxes | ' | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Interim Unaudited Condensed Consolidated Financial Statements | |
The unaudited interim condensed consolidated financial statements of CornerWorld Corporation ("CornerWorld" or the "Company") as of October 31, 2013 and for the three and six month periods ended October 31, 2013 and 2012 contained in this Quarterly Report (collectively, the "Unaudited Interim Condensed Consolidated Financial Statements") were prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for all periods presented. The results of operations for the three and six month periods ended October 31, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year. | |
The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with the regulations for interim financial information of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited accompanying statements of financial condition and related interim statements of operations, cash flows, and stockholders' deficit include all adjustments (which consist only of normal and recurring adjustments) considered necessary for a fair presentation in conformity with U.S. GAAP. These Unaudited Interim Condensed Consolidated Financial Statements should be read in conjunction with the CornerWorld consolidated financial statements as of and for the year ended April 30, 2013, as filed with the SEC on Form 10-K. | |
Organization | |
The Company was incorporated in the State of Nevada, on November 9, 2004. Effective May 1, 2007, we changed our name to CornerWorld Corporation. | |
The Company provides certain marketing services through its operating subsidiary Enversa Companies LLC, a Texas limited liability company ("Enversa"). CornerWorld is the sole member of Enversa. Enversa is a technology-oriented direct response marketing company. Using its proprietary technology, Enversa identifies qualified leads for advertisers thereby connecting them with potential consumers. Enversa utilizes a pay-for-performance pricing model which is very appealing to clients because it ensures that they are billed solely for campaign performance. Enversa also operates several ad networks. Enversa also provides search engine optimization services ("SEO"), domain leasing and website management services on a recurring monthly basis. | |
The Company provides telecommunications services through its wholly-owned subsidiary, Woodland Holdings Corp. ("Woodland Holdings"). Woodland Holdings was the owner of S Squared, LLC, doing business in the state of Texas as "Ranger Wireless LLC" ("Ranger"). The Company sold Ranger on September 30, 2013. See also Note 3, Discontinued Operations, for more detail. | |
Woodland Holdings also provides telephony and internet services through its subsidiaries Phone Services and More, L.L.C., doing business as Visitatel ("PSM") and T2 Communications, L.L.C. ("T2 Communications"). As a provider of Internet Protocol Television (IPTV), Internet and VoIP services, T2 Communications delivers leading-edge technology to business customers in Michigan. Offerings include: phone lines, Internet connections, long distance and toll-free services. T2 Communications is a Competitive Local Exchange Carrier (CLEC). PSM holds an FCC 214 License as a wholesale long distance service provider to the carrier community and large commercial users of transport minutes. | |
The Company's year-end is April 30th. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
This summary of significant accounting policies is presented to assist in understanding the Company's condensed consolidated financial statements. The condensed consolidated financial statements and notes are representations of the Company's management who is responsible for their integrity and objectivity. These accounting policies conform to US GAAP and have been consistently applied in the preparation of the financial statements. The financial statements are stated in United States of America dollars. | |
Use of Estimates | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, the realizability of accounts receivable, recoverability of property and equipment, intangibles and goodwill and valuation of stock-based compensation and deferred tax assets. Actual results could differ from these estimates. | |
Fair Value of Financial Instruments | |
Accounting Standards Codification ("ASC") No. 850 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company's cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable, accounts payable-related party, accrued liabilities, and notes payable approximate their estimated fair values due to their short-term maturities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial statements. | |
Revenue Recognition | |
The Company recognizes revenue in accordance with Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements," as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility is probable. Sales are recorded net of sales discounts. | |
At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. Revenue is also recognized monthly as SEO services are provided or in the form of revenues from domain leases. For T2 Communications, the majority of revenue is derived from month-to-month, bundled service contracts for the phone and internet services used by each customer. Revenue is recognized as the services are provided. | |
Income Taxes | |
The Company accounts for income tax in accordance with ASC No. 740 which requires the use of the asset and liability method of accounting of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
Long-Lived Assets | |
The Company accounts for its long-lived assets in accordance with the ASC. The Company's only long-lived assets are property and equipment. The ASC requires a company to assess the recoverability of its long-lived assets whenever events and circumstances indicate the carrying value of an asset or asset group may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. Management does not believe that its fixed assets are impaired. No impairment charges have been recorded as of October 31, 2013. | |
Stock-Based Compensation | |
The Company accounts for awards made under its two stock-based compensation plans pursuant to the fair value provisions of ASC No. 718. ASC No. 718 requires the recognition of stock-based compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options. ASC No. 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company accounts for stock-based compensation in accordance with ASC No. 718 and estimates its fair value based on using the Black-Scholes option pricing model. The Company's determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company's stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company's expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company's stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company's options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company's options. Although the fair value of the Company's options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 6 Stock Based Compensation, for more details. | |
Reclassifications | |
Certain prior year accounts have been reclassified to conform to the current year's presentation. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Discontinued Operations [Abstract] | ' | |||||||||||||
Discontinued Operations | ' | |||||||||||||
3. Discontinued Operations | ||||||||||||||
We completed the sale of our Ranger business on September 30, 2013 for $7.5 million in cash plus a contingent receivable for $800,000; we recognized a gain of $2,788,543 on the sale, net of tax. The decision to sell Ranger allowed us to retire substantially all of our secured debt. Our Ranger operations, previously reported within the Communications Services segment, have been reclassified as discontinued operations in our unaudited Condensed Consolidated Financial Statements for the operations up to the date of sale for the three and six month periods ended October 30, 2013 and 2012. In addition, all secured debt retired as a result of the divestiture, including related interest expenses and fees, have been reclassified as discontinued operations. | ||||||||||||||
The following is a summary of the operating results of our discontinued operations: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended October 31, | Ended October 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sales, net | $ | 781,239 | $ | 1,396,984 | $ | 2,014,095 | $ | 2,861,867 | ||||||
Income from discontinued operations before income taxes | 139,964 | 317,066 | 538,568 | 729,810 | ||||||||||
Income taxes | - | - | - | - | ||||||||||
Net income from discontinued operations | $ | 139,964 | $ | 317,066 | $ | 538,568 | $ | 729,810 | ||||||
The following is a summary of assets and liabilities held for sale as of April 30, 2013: | ||||||||||||||
30-Apr-13 | ||||||||||||||
Assets: | ||||||||||||||
Current assets | $ | 529,328 | ||||||||||||
Property, plant and equipment, net | 11,349 | |||||||||||||
Patent and goodwill, net | 5,995,692 | |||||||||||||
Assets of discontinued operations held for sale | 6,536,369 | |||||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued expenses | 457,972 | |||||||||||||
Long term debt, net of discounts | 6,647,645 | |||||||||||||
Deferred revenue | 266,810 | |||||||||||||
Other liabilities | 873,861 | |||||||||||||
$ | 8,246,288 |
Debt
Debt | 6 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Debt [Abstract] | ' | |||||||
Debt | ' | |||||||
4. Debt | ||||||||
As of | ||||||||
October 31, | April 30, | |||||||
2013 | 2013 | |||||||
Long-term Debt | ||||||||
Notes payable to Emerald Crest Capital (the "Senior Lender"). These notes were collateralized by all assets of the Company. The notes and all accrued interest were settled in full as a result of the divestiture of Ranger. | $ | - | $ | 3,700,000 | ||||
Note payable IU Holdings, LP. This note was collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 1,500,000 | ||||||
Note payable to IU Investments, LLC. These notes were collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 527,915 | ||||||
Note payable to Internet University, Inc. This note was collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 10,000 | ||||||
Note payable to Ned B. Timmer. At October 31, 2013, the interest rate was 10%. This note was collateralized by all assets of Woodland Holdings, Corporation, including the Ranger patent. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 1,440,000 | ||||||
Note payable to CEO; the note matures July 31, 2016. At October 31, 2013, the interest rate was 10%. This note is collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. | 338,958 | 338,958 | ||||||
Note payable to Kelly Larabee Morlan; the note matures December 31, 2013. At October 31, 2013, the interest rate was 10%. This note is not collateralized. | 16,316 | 16,316 | ||||||
Total debt | 355,274 | 7,533,189 | ||||||
Less current portion of long-term debt | (93,675 | ) | (4,352,979 | ) | ||||
Non-current portion of long-term debt | $ | 261,599 | $ | 3,180,210 | ||||
As previously noted, on September 30, 2013, the Company sold 100% of the outstanding membership interests of Ranger. By executing the sale of Ranger, the Company was able to payoff substantially all of its secured creditors including reacquiring the common stock purchase warrants originally issued to the Senior Lender (the "Warrants"), pursuant to which the Senior Lender could have purchased up to 8,762,008 shares of the Company's common stock for an aggregate price of $100. The Warrants were not exercisable prior to March 30, 2014 but were being carried as a liability due to the fact that they could be put to the Company for $1,000,000 on March 30, 2014. In addition to retiring the Warrants and the notes payable to the Senior Lender, unamortized loan fees of $396,913 were written off as a result of the sale of Ranger and the subsequent retirement of substantially all secured payables. | ||||||||
Notes Payable to Junior Lender: | ||||||||
Substantially all of the Company's notes payable to its junior lenders were also paid off as a result of the sale of Ranger The remaining collateralized note payable, due to the Company's CEO, contains no restrictive covenants or events of default other than non-payment. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
5. Commitments and Contingencies | |
Litigation | |
On October 10, 2013, the Company's former President, Marc A. Pickren ("Pickren") filed a lawsuit in Dallas County District court alleging, among other things, that the Company had wrongfully terminated his employment; Pickren's suit seeks claims approximating $265,000 which represent one year's severance and costs to provide health insurance. As noted in the Company's form 8-K filed on October 4, 2013, Pickren's employment agreement expired on September 15, 2013, Pickren's employment agreement was not renewed and Pickren was removed as President of CornerWorld on October 4, 2013, though he remained employed as the President of Enversa, the Company's only remaining operating subsidiary. The Company intends to vigorously defend itself against Pickren's claims. | |
The Company is occasionally involved in other litigation matters relating to claims arising from the ordinary course of business. The Company's management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material adverse effect on our business, results of operations and financial condition. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
6. Stock-Based Compensation | ||||||||||||||
Incentive Stock Plan | ||||||||||||||
On August 17, 2007, the Company's board of directors adopted and implemented the Company's 2007 Incentive Stock Plan. Under the Incentive Stock Plan, the Company is authorized to issue 4,000,000 shares of its common stock to the Company's directors, officers, employees, advisors or consultants. | ||||||||||||||
Any Incentive Stock Option granted to an employee of the Company shall become exercisable over a period of no longer than 5 years, and no less than 20% of the shares covered thereby shall become exercisable annually. 20% of shares vest annually beginning on the first anniversary of the grant. The options expire 5 years from the grant date. | ||||||||||||||
The Company issued no stock options pursuant to this plan during the three and six month periods ended October 31, 2013. | ||||||||||||||
Stock Compensation Plan | ||||||||||||||
On August 17, 2007, the Company's board of directors adopted and implemented the Company's 2007 Stock Compensation Plan. The total number of shares of the Company's common stock which may be purchased or granted directly by Options, Stock Awards or Warrants under the Compensation Plan shall not exceed 4,000,000 shares of the Company's common stock. | ||||||||||||||
Awards granted to a participant of the Company shall become exercisable over a period of no longer than 5 years, and may vest as determined at the Company's discretion at the time of grant. | ||||||||||||||
The Company issued no stock options pursuant to this plan during the three and six month periods ended October 31, 2013. | ||||||||||||||
A summary of the shares reserved for grant and awards available for grant under each Stock Plan is as follows: | ||||||||||||||
31-Oct-13 | ||||||||||||||
Shares Reserved | Awards Available | |||||||||||||
for Grant | for Grant | |||||||||||||
Incentive Stock Plan | 4,000,000 | 3,230,000 | ||||||||||||
Stock Compensation Plan | 4,000,000 | 3,825,000 | ||||||||||||
8,000,000 | 7,055,000 | |||||||||||||
The Company issues awards to employees, qualified consultants and directors that generally vest over time based solely on continued employment or service during the related vesting period and are exercisable over a five to ten year service period. Options are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant. | ||||||||||||||
The fair value of each stock-based award is estimated on the grant date using the Black-Scholes option-pricing model. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term of options granted subsequent to the adoption ASC 718 is derived using the simplified method as defined in the SEC's SAB No. 107. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury interest rates in effect at the time of grant. The fair value of options granted was estimated using the following weighted-average assumptions: | ||||||||||||||
For the three month periods Ended October 31 | For the six month periods Ended October 31 | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Expected term (in years) | - | - | - | - | ||||||||||
Expected volatility | - | % | - | % | - | % | - | % | ||||||
Risk-free interest rate | - | % | - | % | - | % | - | % | ||||||
Dividend yield | - | % | - | % | - | % | - | % | ||||||
A summary of activity under the Stock Plans and changes during the period ended October 31, 2012 is presented below: | ||||||||||||||
Weighted-Average | ||||||||||||||
Shares | Exercise | Remaining | Aggregate | |||||||||||
Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Outstanding at May 1, 2013 | 2,245,000 | $ | 0.38 | 1.49 | $ | - | ||||||||
Issued | - | - | - | - | ||||||||||
Cancelled/forfeited | (1,300,000 | ) | 0.49 | |||||||||||
Exercised | - | - | ||||||||||||
Outstanding at October 31, 2013 | 945,000 | $ | 0.22 | 1.65 | $ | - | ||||||||
Options vested and expected to vest | 945,000 | $ | 0.22 | 1.51 | $ | - | ||||||||
Options exercisable at end of period | 742,500 | $ | 0.22 | 1.4 | $ | - | ||||||||
For the three month periods ended October 31, 2013 and 2012, the Company recognized $7,134 and $41,507 of stock-based compensation expense, respectively, and for the six month periods ended October 31, 2013 and 2012, the Company recognized $14,269 and $83,016 of stock-based compensation expense, respectively. As of October 31, 2013 there was $33,237 of total unrecognized compensation cost, net of forfeitures, related to unvested employee and director stock option compensation arrangements. That cost is expected to be recognized on a straight-line basis over the next 1.4 weighted average years. |
Business_Segments
Business Segments | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Business Segments [Abstract] | ' | |||||||||||||
Business Segments | ' | |||||||||||||
7. Business Segments | ||||||||||||||
Our business consists primarily of two integrated business segments: (i) marketing services and (ii) communications services. Our corporate administrative functions are tracked separately and the associated costs are not pushed down to the operating segments. The following table summarizes selected financial information for each operating segment: | ||||||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Three Months Ended October 31, 2013 | ||||||||||||||
Revenue | $ | 190,602 | $ | 25,468 | $ | - | $ | 216,070 | ||||||
Income (loss) from continuing operations before tax | (138,708 | ) | (51,711 | ) | (229,609 | ) | (420,028 | ) | ||||||
Income (loss) from continuing operations after tax | (138,708 | ) | (51,711 | ) | (229,609 | ) | (420,028 | ) | ||||||
Net (loss) income | (138,708 | ) | 2,650,088 | (2,901 | ) | 2,508,479 | ||||||||
Total assets | 110,892 | 903,662 | 636,386 | 1,650,940 | ||||||||||
Depreciation and amortization | 403 | 4,090 | 7,467 | 11,960 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Three Months Ended October 31, 2012 | ||||||||||||||
Revenue | $ | 425,545 | $ | 45,802 | $ | - | $ | 471,347 | ||||||
Income (loss) from continuing operations before tax | 186,374 | (99,587 | ) | (508,900 | ) | (422,113 | ) | |||||||
Income (loss) from continuing operations after tax | 186,374 | (99,587 | ) | (508,900 | ) | (422,113 | ) | |||||||
Net (loss) income | 186,374 | 390,844 | (682,265 | ) | (105,047 | ) | ||||||||
Total assets | 354,252 | 8,726,239 | 728,472 | 9,808,963 | ||||||||||
Depreciation and amortization | 1,546 | 4,600 | 12,747 | 18,893 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Six Months Ended October 31, 2013 | ||||||||||||||
Revenue | $ | 458,876 | $ | 56,627 | $ | - | $ | 515,503 | ||||||
Income (loss) from continuing operations before tax | (46,962 | ) | (157,354 | ) | (682,652 | ) | (886,968 | ) | ||||||
Income (loss) from continuing operations after tax | (46,962 | ) | (157,354 | ) | (682,652 | ) | (886,968 | ) | ||||||
Net (loss) income | (46,962 | ) | 2,985,493 | (498,388 | ) | 2,440,143 | ||||||||
Total assets | 110,892 | 903,662 | 636,386 | 1,650,940 | ||||||||||
Depreciation and amortization | 3,211 | 8,689 | 14,933 | 26,833 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Six Months Ended October 31, 2012 | ||||||||||||||
Revenue | $ | 1,092,339 | $ | 89,192 | $ | - | $ | 1,181,531 | ||||||
Income (loss) from continuing operations before tax | 349,509 | (213,388 | ) | (1,125,677 | ) | (989,556 | ) | |||||||
Income (loss) from continuing operations after tax | 349,509 | (213,388 | ) | (1,125,677 | ) | (989,556 | ) | |||||||
Net (loss) income | 349,509 | 874,584 | (1,483,839 | ) | (259,746 | ) | ||||||||
Total assets | 354,252 | 8,726,239 | 728,472 | 9,808,963 | ||||||||||
Depreciation and amortization | 3,092 | 9,199 | 25,202 | 37,493 | ||||||||||
There were no intersegment sales. All of the Company's business activities are conducted within the United States geographic boundaries. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Oct. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
8. Related Party Transactions | |
On February 23, 2009, the Company entered into a promissory note (the "Tier 3 Junior Note") totaling $1,900,000 with IU Investments, LLC ("IUI"). IUI is an entity owned by the parents of the Company's Chief Executive Officer. Interest is payable at the Company's discretion at a rate of 10% per annum. The Company recorded interest of $26,105 and $26,992 on this facility during the six month periods ended October 31, 2013 and 2012, respectively. The outstanding portion of this note along with its accrued interest was settled in its entirety on September 30, 2013. | |
On March 30, 2011, the Company entered into a subordinated $1.5 million promissory note (the "Tier 2 Junior Note") with IU Holdings, LP ("IUH"). Interest on the outstanding principal amount under the Tier 2 Junior Note is payable at the Company's discretion at a rate of 10% per annum. As additional consideration to induce IUH to enter into the Tier 2 Junior Note, the Company issued to IUH, 48,414,132 shares of CornerWorld Corporation Common stock. IUH is a partnership whose limited partners include the family of the Company's Chief Executive Officer. Steve Toback, the uncle of the Company's Chief Executive Officer, serves as the manager of IU Holdings, GP, LLC which is the general partner of IUH. The Company recorded approximately $73,006 and $75,616 in interest on this facility, during the six month periods ended October 31, 2013 and 2012, respectively. The outstanding portion of this note along with its accrued interest was settled in its entirety on September 30, 2013. | |
On March 30, 2011, the Company entered into a subordinated $400,000 promissory note (the "Tier 5 Junior Note") with Internet University. Interest on the outstanding principal amount under the Tier 5 Junior Note is payable at the Company's discretion at a rate of 10% per annum. As additional consideration to induce Internet University to enter into the Tier 5 Junior Note, the Company issued to Internet University, 12,910,435 shares of CornerWorld Corporation Common stock. The Company recorded interest of $1,342 and $12,641 on this facility during the six month periods ended October 31, 2013 and 2012, respectively. The outstanding portion of this note along with its accrued interest was settled in its entirety on September 30, 2013. | |
On March 30, 2011, the Company entered into a subordinated $389,942 promissory note (the "Tier 7 Junior Note") with Scott N. Beck, the Company's Chief Executive Officer. Interest on the outstanding principal amount under the Tier 7 Junior Note is payable at the Company's discretion at a rate of 10% per annum. As additional consideration to induce Mr. Beck to enter into this Promissory Note, the Company issued Mr. Beck 12,585,802 shares of CornerWorld Corporation Common stock. The Tier 7 Junior Note consists primarily of prior accounts payable. The Company recorded interest of $19,840 and $17,087 on this facility during the six month periods ended October 31, 2013 and 2012, respectively. The balance of this note totaled $338,958 at October 31, 2013. | |
The Company is party to a lease agreement with 13101 Preston Road, LP pursuant to which it leases office space for its corporate headquarters. The limited partners of 13101 Preston Road, LP are trusts controlled by the family of the Company's Chief Executive Officer. The Company paid $15,000 and $61,972 in rent during the six month periods ended October 31, 2013 and 2012, respectively. | |
In addition, the Company provides accounting, human resources and certain IT services to an entity controlled by the family of the Company's Chief Executive Officer for $5,000 per month. The Company received $30,000 from this entity during the six month periods ended October 31, 2013 and 2012. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Oct. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
9. Subsequent Events | |
On November 4, 2013, the Company amended its promissory note to Scott N. Beck dated March 30, 2011whereby it deferred any principal or interest payments on the Note until May 31, 2014 and reduced the interest rate to 6.25%. On November 4, 2013, the Company amended its employment agreement with Scott N. Beck, the Company's Chief Executive Officer originally dated July 28, 2011, to set his annual base salary to $18,000 per year effective November 1, 2013 and to waive any bonuses related to the recent sale of Ranger. | |
On November 6, 2013, the Company collected the $800,000 contingent receivable related to the Ranger sale. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Oct. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, the realizability of accounts receivable, recoverability of property and equipment, intangibles and goodwill and valuation of stock-based compensation and deferred tax assets. Actual results could differ from these estimates. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Accounting Standards Codification ("ASC") No. 850 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company's cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable, accounts payable-related party, accrued liabilities, and notes payable approximate their estimated fair values due to their short-term maturities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial statements. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue in accordance with Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements," as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility is probable. Sales are recorded net of sales discounts. | |
At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. Revenue is also recognized monthly as SEO services are provided or in the form of revenues from domain leases. For T2 Communications, the majority of revenue is derived from month-to-month, bundled service contracts for the phone and internet services used by each customer. Revenue is recognized as the services are provided. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income tax in accordance with ASC No. 740 which requires the use of the asset and liability method of accounting of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
The Company accounts for its long-lived assets in accordance with the ASC. The Company's only long-lived assets are property and equipment. The ASC requires a company to assess the recoverability of its long-lived assets whenever events and circumstances indicate the carrying value of an asset or asset group may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. Management does not believe that its fixed assets are impaired. No impairment charges have been recorded as of October 31, 2013. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company accounts for awards made under its two stock-based compensation plans pursuant to the fair value provisions of ASC No. 718. ASC No. 718 requires the recognition of stock-based compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options. ASC No. 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company accounts for stock-based compensation in accordance with ASC No. 718 and estimates its fair value based on using the Black-Scholes option pricing model. The Company's determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company's stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company's expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company's stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company's options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company's options. Although the fair value of the Company's options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 6 Stock Based Compensation, for more details. | |
Reclassifications | ' |
Reclassifications | |
Certain prior year accounts have been reclassified to conform to the current year's presentation. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Discontinued Operations [Abstract] | ' | |||||||||||||
Summary of the operating results of our discontinued operations | ' | |||||||||||||
The following is a summary of the operating results of our discontinued operations: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended October 31, | Ended October 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sales, net | $ | 781,239 | $ | 1,396,984 | $ | 2,014,095 | $ | 2,861,867 | ||||||
Income from discontinued operations before income taxes | 139,964 | 317,066 | 538,568 | 729,810 | ||||||||||
Income taxes | - | - | - | - | ||||||||||
Net income from discontinued operations | $ | 139,964 | $ | 317,066 | $ | 538,568 | $ | 729,810 | ||||||
Summary of assets and liabilities held for sale | ' | |||||||||||||
The following is a summary of assets and liabilities held for sale as of April 30, 2013: | ||||||||||||||
30-Apr-13 | ||||||||||||||
Assets: | ||||||||||||||
Current assets | $ | 529,328 | ||||||||||||
Property, plant and equipment, net | 11,349 | |||||||||||||
Patent and goodwill, net | 5,995,692 | |||||||||||||
Assets of discontinued operations held for sale | 6,536,369 | |||||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued expenses | 457,972 | |||||||||||||
Long term debt, net of discounts | 6,647,645 | |||||||||||||
Deferred revenue | 266,810 | |||||||||||||
Other liabilities | 873,861 | |||||||||||||
$ | 8,246,288 |
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Debt [Abstract] | ' | |||||||
Schedule of Long-term Debt | ' | |||||||
As of | ||||||||
October 31, | April 30, | |||||||
2013 | 2013 | |||||||
Long-term Debt | ||||||||
Notes payable to Emerald Crest Capital (the "Senior Lender"). These notes were collateralized by all assets of the Company. The notes and all accrued interest were settled in full as a result of the divestiture of Ranger. | $ | - | $ | 3,700,000 | ||||
Note payable IU Holdings, LP. This note was collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 1,500,000 | ||||||
Note payable to IU Investments, LLC. These notes were collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 527,915 | ||||||
Note payable to Internet University, Inc. This note was collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 10,000 | ||||||
Note payable to Ned B. Timmer. At October 31, 2013, the interest rate was 10%. This note was collateralized by all assets of Woodland Holdings, Corporation, including the Ranger patent. The note and all accrued interest were settled in full as a result of the divestiture of Ranger. | - | 1,440,000 | ||||||
Note payable to CEO; the note matures July 31, 2016. At October 31, 2013, the interest rate was 10%. This note is collateralized by all assets of the Company save for the Ranger patent. See also note 8, Related Party Transactions. | 338,958 | 338,958 | ||||||
Note payable to Kelly Larabee Morlan; the note matures December 31, 2013. At October 31, 2013, the interest rate was 10%. This note is not collateralized. | 16,316 | 16,316 | ||||||
Total debt | 355,274 | 7,533,189 | ||||||
Less current portion of long-term debt | (93,675 | ) | (4,352,979 | ) | ||||
Non-current portion of long-term debt | $ | 261,599 | $ | 3,180,210 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||
Schedule of Shares Reserved for Grant and Awards Available for Grant | ' | |||||||||||||
A summary of the shares reserved for grant and awards available for grant under each Stock Plan is as follows: | ||||||||||||||
31-Oct-13 | ||||||||||||||
Shares Reserved | Awards Available | |||||||||||||
for Grant | for Grant | |||||||||||||
Incentive Stock Plan | 4,000,000 | 3,230,000 | ||||||||||||
Stock Compensation Plan | 4,000,000 | 3,825,000 | ||||||||||||
8,000,000 | 7,055,000 | |||||||||||||
Schedule of Weighted-Average Assumptions | ' | |||||||||||||
The fair value of options granted was estimated using the following weighted-average assumptions: | ||||||||||||||
For the three month periods Ended October 31 | For the six month periods Ended October 31 | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Expected term (in years) | - | - | - | - | ||||||||||
Expected volatility | - | % | - | % | - | % | - | % | ||||||
Risk-free interest rate | - | % | - | % | - | % | - | % | ||||||
Dividend yield | - | % | - | % | - | % | - | % | ||||||
Schedule of Stock Plan Activity | ' | |||||||||||||
A summary of activity under the Stock Plans and changes during the period ended October 31, 2012 is presented below: | ||||||||||||||
Weighted-Average | ||||||||||||||
Shares | Exercise | Remaining | Aggregate | |||||||||||
Price | Contractual | Intrinsic | ||||||||||||
Term (Years) | Value | |||||||||||||
Outstanding at May 1, 2013 | 2,245,000 | $ | 0.38 | 1.49 | $ | - | ||||||||
Issued | - | - | - | - | ||||||||||
Cancelled/forfeited | (1,300,000 | ) | 0.49 | |||||||||||
Exercised | - | - | ||||||||||||
Outstanding at October 31, 2013 | 945,000 | $ | 0.22 | 1.65 | $ | - | ||||||||
Options vested and expected to vest | 945,000 | $ | 0.22 | 1.51 | $ | - | ||||||||
Options exercisable at end of period | 742,500 | $ | 0.22 | 1.4 | $ | - | ||||||||
Business_Segments_Tables
Business Segments (Tables) | 6 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Business Segments [Abstract] | ' | |||||||||||||
Schedule of Financial Data by Reporting Segment | ' | |||||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Three Months Ended October 31, 2013 | ||||||||||||||
Revenue | $ | 190,602 | $ | 25,468 | $ | - | $ | 216,070 | ||||||
Income (loss) from continuing operations before tax | (138,708 | ) | (51,711 | ) | (229,609 | ) | (420,028 | ) | ||||||
Income (loss) from continuing operations after tax | (138,708 | ) | (51,711 | ) | (229,609 | ) | (420,028 | ) | ||||||
Net (loss) income | (138,708 | ) | 2,650,088 | (2,901 | ) | 2,508,479 | ||||||||
Total assets | 110,892 | 903,662 | 636,386 | 1,650,940 | ||||||||||
Depreciation and amortization | 403 | 4,090 | 7,467 | 11,960 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Three Months Ended October 31, 2012 | ||||||||||||||
Revenue | $ | 425,545 | $ | 45,802 | $ | - | $ | 471,347 | ||||||
Income (loss) from continuing operations before tax | 186,374 | (99,587 | ) | (508,900 | ) | (422,113 | ) | |||||||
Income (loss) from continuing operations after tax | 186,374 | (99,587 | ) | (508,900 | ) | (422,113 | ) | |||||||
Net (loss) income | 186,374 | 390,844 | (682,265 | ) | (105,047 | ) | ||||||||
Total assets | 354,252 | 8,726,239 | 728,472 | 9,808,963 | ||||||||||
Depreciation and amortization | 1,546 | 4,600 | 12,747 | 18,893 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Six Months Ended October 31, 2013 | ||||||||||||||
Revenue | $ | 458,876 | $ | 56,627 | $ | - | $ | 515,503 | ||||||
Income (loss) from continuing operations before tax | (46,962 | ) | (157,354 | ) | (682,652 | ) | (886,968 | ) | ||||||
Income (loss) from continuing operations after tax | (46,962 | ) | (157,354 | ) | (682,652 | ) | (886,968 | ) | ||||||
Net (loss) income | (46,962 | ) | 2,985,493 | (498,388 | ) | 2,440,143 | ||||||||
Total assets | 110,892 | 903,662 | 636,386 | 1,650,940 | ||||||||||
Depreciation and amortization | 3,211 | 8,689 | 14,933 | 26,833 | ||||||||||
Marketing | Communications | Corporate | Consolidated | |||||||||||
Services | Services | Overhead | ||||||||||||
Six Months Ended October 31, 2012 | ||||||||||||||
Revenue | $ | 1,092,339 | $ | 89,192 | $ | - | $ | 1,181,531 | ||||||
Income (loss) from continuing operations before tax | 349,509 | (213,388 | ) | (1,125,677 | ) | (989,556 | ) | |||||||
Income (loss) from continuing operations after tax | 349,509 | (213,388 | ) | (1,125,677 | ) | (989,556 | ) | |||||||
Net (loss) income | 349,509 | 874,584 | (1,483,839 | ) | (259,746 | ) | ||||||||
Total assets | 354,252 | 8,726,239 | 728,472 | 9,808,963 | ||||||||||
Depreciation and amortization | 3,092 | 9,199 | 25,202 | 37,493 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Discontinued Operations [Abstract] | ' | ' | ' |
Gain from discontinued operations, net of tax | $2,788,543 | $2,788,543 | $2,788,543 |
Proceeds from contingent receivable related to sale | $7,500,000 | ' | ' |
Discontinued_Operations_Summar
Discontinued Operations (Summary of Operating Results of Our Discontinued Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Discontinued Operations [Abstract] | ' | ' | ' | ' |
Sales, net | $781,239 | $1,396,984 | $2,014,095 | $2,861,867 |
Income from discontinued operations before income taxes | 139,964 | 317,066 | 538,568 | 729,810 |
Income taxes | ' | ' | ' | ' |
Net income from discontinued operations | $139,964 | $317,066 | $538,568 | $729,810 |
Discontinued_Operations_Summar1
Discontinued Operations (Summary of Assets and Liabilities Held for Sale) (Details) (USD $) | Apr. 30, 2013 |
Assets: | ' |
Current assets | $529,328 |
Property, plant and equipment, net | 11,349 |
Patent and goodwill, net | 5,995,692 |
Assets of discontinued operations held for sale | 6,536,369 |
Liabilities | ' |
Accounts payable and accrued expenses | 457,972 |
Long term debt, net of discounts | 6,647,645 |
Deferred revenue | 266,810 |
Other liabilities | 873,861 |
Liabilities of discontinued operations held for sale | $8,246,288 |
Debt_Schedule_of_Longterm_Debt
Debt (Schedule of Long-term Debt) (Details) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Mar. 30, 2012 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Apr. 30, 2013 |
Emerald Crest Capital [Member] | Emerald Crest Capital [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | IU Investments, LLC [Member] | IU Investments, LLC [Member] | Internet University [Member] | Internet University [Member] | Ned B. Timmer [Member] | Ned B. Timmer [Member] | CEO [Member] | CEO [Member] | Kelly Larabee Morlan [Member] | Kelly Larabee Morlan [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | $355,274 | $7,533,189 | ' | $3,700,000 | ' | $1,500,000 | $1,500,000 | ' | $527,915 | ' | $10,000 | ' | $1,440,000 | $338,958 | $338,958 | $16,316 | $16,316 |
Less current portion of long-term debt | -93,675 | -4,352,979 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current portion of long-term debt | $261,599 | $3,180,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jul-16 | ' | 31-Dec-13 | ' |
Interest rate at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | 10.00% | ' |
Debt_Narrative_Details
Debt (Narrative) (Details) (Senior Lender [Member], USD $) | 1 Months Ended |
Sep. 30, 2013 | |
Senior Lender [Member] | ' |
Debt Instrument [Line Items] | ' |
Sale of membership interests | 100.00% |
Common stock puchase warrant, shares authorized | 8,762,008 |
Common stock purchase warrant, price per share | $100 |
Common stock purchase warrant, exercise date | 30-Mar-14 |
Minimum cash value of warrant granted | $1,000,000 |
Other loan fees, total | $396,913 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Former President [Member], USD $) | 1 Months Ended |
Oct. 31, 2013 | |
Former President [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Severance Costs | $265,000 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Aug. 31, 2007 | Aug. 17, 2007 | Aug. 17, 2007 | Aug. 31, 2007 | Aug. 17, 2007 | Aug. 31, 2007 | |
Incentive Stock Plan [Member] | Incentive Stock Plan [Member] | Incentive Stock Plan [Member] | Incentive Stock Plan [Member] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | |||||
Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | 4,000,000 | ' |
Options exercisable period | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years |
Options expiration period | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Percentage of shares that vest annually | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Stock-based compensation | $7,134 | $41,507 | $14,269 | $83,016 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, net of forfeitures | $33,237 | ' | $33,237 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted-average recognition period, years | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Shares Reserved) (Details) | Oct. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Reserved for Grant | 8,000,000 |
Awards Available for Grant | 7,055,000 |
Incentive Stock Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Reserved for Grant | 4,000,000 |
Awards Available for Grant | 3,230,000 |
Stock Compensation Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Reserved for Grant | 4,000,000 |
Awards Available for Grant | 3,825,000 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule of Assumptions) (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Expected term (in years) | ' | ' | ' | ' |
Expected volatility | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' |
StockBased_Compensation_Schedu2
Stock-Based Compensation (Schedule of Stock Plan Activity) (Details) (USD $) | 6 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Shares | ' | ' |
Outstanding, beginning | 2,245,000 | ' |
Issued | ' | ' |
Cancelled/forfeited | -1,300,000 | ' |
Exercised | ' | ' |
Outstanding, ending | 945,000 | ' |
Options vested and expected to vest | 945,000 | ' |
Options exercisable at end of period | 742,500 | ' |
Exercise Price | ' | ' |
Outstanding, beginning | $0.38 | ' |
Issued | ' | ' |
Cancelled/forfeited | $0.49 | ' |
Exercised | ' | ' |
Outstanding, ending | $0.22 | ' |
Options vested and expected to vest | $0.22 | ' |
Options exercisable at end of period | $0.22 | ' |
Remaining Contractual Term | ' | ' |
Remaining contractual term, options issued | ' | ' |
Remaining contractual term, options outstanding | '1 year 7 months 24 days | '1 year 5 months 26 days |
Remaining contractual term, options vested and expected to vest | '1 year 6 months 4 days | ' |
Remaining contractual term, options exercisable | '1 year 4 months 24 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding, beginning | ' | ' |
Issued | ' | ' |
Outstanding, ending | ' | ' |
Options vested and expected to vest | ' | ' |
Options exercisable at end of period | ' | ' |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | $216,070 | $471,347 | $515,503 | $1,181,531 | ' |
Income (loss) from continuing operations before tax | -420,028 | -422,113 | -886,968 | -989,556 | ' |
Income (loss) from continuing operations after tax | -420,028 | -422,113 | -886,968 | -989,556 | ' |
Net income (loss) | 2,508,479 | -105,047 | 2,440,143 | -259,746 | ' |
Total assets | 1,650,940 | ' | 1,650,940 | ' | 7,966,033 |
Depreciation and amortization | 11,960 | 18,893 | 26,833 | 37,493 | ' |
Marketing Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 190,602 | 425,545 | 458,876 | 1,092,339 | ' |
Income (loss) from continuing operations before tax | -138,708 | 186,374 | -46,962 | 349,509 | ' |
Income (loss) from continuing operations after tax | -138,708 | 186,374 | -46,962 | 349,509 | ' |
Net income (loss) | -138,708 | 186,374 | -46,962 | 349,509 | ' |
Total assets | 110,892 | 354,252 | 110,892 | 354,252 | ' |
Depreciation and amortization | 403 | 1,546 | 3,211 | 3,092 | ' |
Communications Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 25,468 | 45,802 | 56,627 | 89,192 | ' |
Income (loss) from continuing operations before tax | -51,711 | -99,587 | -157,354 | -213,388 | ' |
Income (loss) from continuing operations after tax | -51,711 | -99,587 | -157,354 | -213,388 | ' |
Net income (loss) | 2,650,088 | 390,844 | 2,985,493 | 874,584 | ' |
Total assets | 903,662 | 8,726,239 | 903,662 | 8,726,239 | ' |
Depreciation and amortization | 4,090 | 4,600 | 8,689 | 9,199 | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Income (loss) from continuing operations before tax | -229,609 | -508,900 | -682,652 | -1,125,677 | ' |
Income (loss) from continuing operations after tax | -229,609 | -508,900 | -682,652 | -1,125,677 | ' |
Net income (loss) | -2,901 | -682,265 | -498,388 | -1,483,839 | ' |
Total assets | 636,386 | 728,472 | 636,386 | 728,472 | ' |
Depreciation and amortization | 7,467 | 12,747 | 14,933 | 25,202 | ' |
Consolidated [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 216,070 | 471,347 | 515,503 | 1,181,531 | ' |
Income (loss) from continuing operations before tax | -420,028 | -422,113 | -886,968 | -989,556 | ' |
Income (loss) from continuing operations after tax | -420,028 | -422,113 | -886,968 | -989,556 | ' |
Net income (loss) | 2,508,479 | -105,047 | 2,440,143 | -259,746 | ' |
Total assets | 1,650,940 | 9,808,963 | 1,650,940 | 9,808,963 | ' |
Depreciation and amortization | $11,960 | $18,893 | $26,833 | $37,493 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Feb. 23, 2009 | Mar. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Mar. 30, 2012 | Mar. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Mar. 30, 2011 | Mar. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Mar. 30, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
IU Investments, LLC [Member] | IU Investments, LLC [Member] | IU Investments, LLC [Member] | IU Investments, LLC [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | IU Holdings, LP [Member] | Internet University [Member] | Internet University [Member] | Internet University [Member] | Internet University [Member] | Internet University [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | 13101 Preston Road, LP [Member] | 13101 Preston Road, LP [Member] | Entity Controlled by CEO's Family [Member] | Entity Controlled by CEO's Family [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000 | $61,972 | ' | ' |
Debt issued | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | 389,942 | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Interest expense | ' | ' | 26,105 | 26,992 | ' | ' | ' | 73,006 | 75,616 | ' | ' | ' | 1,342 | 12,641 | ' | ' | ' | 19,840 | 17,087 | ' | ' | ' | ' | ' | ' |
Long-term debt | 355,274 | 7,533,189 | ' | ' | 527,915 | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | ' | 10,000 | ' | ' | 338,958 | ' | 338,958 | ' | ' | ' | ' | ' |
Stock issuance during period, shares | ' | ' | ' | ' | ' | ' | 48,414,132 | ' | ' | ' | ' | 12,910,435 | ' | ' | ' | ' | 12,585,802 | ' | ' | ' | ' | ' | ' | ' | ' |
Service revenue, monthly amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' |
Revenue from accounting, human resources, and IT services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000 | $30,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2013 | Nov. 06, 2013 | Nov. 04, 2013 |
Subsequent Event [Member] | Subsequent Event [Member] | ||
Scott Beck [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Interest Rate On Promissory Note | ' | ' | 6.25% |
Annual base salary | ' | ' | $18,000 |
Collection of contingent recievable related to sale | $7,500,000 | $800,000 | ' |