Bioshaft Water Technology (BSHF) Inactive 10-Q14 Mar 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Jan. 31, 2014
Document and Entity Information	'
Entity Registrant Name	'BIOSHAFT WATER TECHNOLOGY, INC.
Document Type	'10-Q
Document Period End Date	31-Jan-14
Amendment Flag	'false
Entity Central Index Key	'0001365784
Current Fiscal Year End Date	'--04-30
Entity Common Stock, Shares Outstanding	108,911,170
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'No
Entity Well-known Seasoned Issuer	'No
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q3

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Jan. 31, 2014	Apr. 30, 2013
Current assets:	'	'
Cash	$229,866	$315,832
Accounts receivable, net	252,558	15,700
Prepaid expenses	114,534	'
Total Current Assets	596,958	331,532
Property and equipment, net	835	1,684
Deposits	1,000	3,248
Total Assets	598,793	336,464
Current liabilities:	'	'
Accounts payable and accrued expenses	1,221,396	777,165
Billings in excess of costs and estimated earnings on uncompleted projects	272,218	294,797
Accrued interest, net of discount	439,257	151,864
Loans payable, net of debt discount	524,398	194,853
Derivative liability	'	'
Total Current Liabilities	2,457,269	1,418,679
Total Liabilities	2,457,269	1,418,679
Stockholders' deficit:	'	'
Preferred stock value	'	'
Common stock value	108,911	108,911
Additional paid-in capital	19,539,747	19,509,633
Accumulated deficit	-21,507,134	-20,700,759
Total Stockholders' Deficit	-1,858,476	-1,082,215
Total Liabilities and Stockholders' Deficit	$598,793	$336,464

BALANCE_SHEET_PARENTHETICAL

BALANCE SHEET (PARENTHETICAL) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Balance Sheets	'	'
Interest discount	'	$229,787
Debt discount	$602	$330,147
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	25,000,000	25,000,000
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	108,911,170	108,911,170
Common stock, shares outstanding	108,911,170	108,911,170

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
REVENUES	'	'	'	'
Net revenue from projects	$1,136,884	'	$1,731,447	$409,103
Net revenue (expense) from sale of products	'	'	'	-350
TOTAL REVENUES	1,136,884	'	1,731,477	408,753
COST OF GOODS SOLD	786,385	2,442	1,260,222	284,673
GROSS PROFIT (LOSS)	350,499	-2,442	471,255	124,080
OPERATING EXPENSES	'	'	'	'
Selling, general and administrative	103,707	120,585	307,094	350,372
Advertising, marketing and promotions	965	50	6,759	6,568
Consulting fees	121,500	114,500	316,200	333,279
Depreciation	283	283	849	849
Stock-based compensation	9,475	13,122	30,114	99,098
TOTAL OPERATING EXPENSES	235,930	248,540	661,016	790,166
INCOME (LOSS) FROM OPERATIONS	114,569	-250,982	-189,761	-666,086
OTHER INCOME (EXPENSE)	'	'	'	'
Interest income (expense), net	-19,187	-19,849	-57,282	-59,469
Amortization of debt discount	-1,515	'	-559,332	-250,000
Gain on settlement with ZAZ	'	'	'	130,996
Change in fair value of derivative	'	-259,203	'	1,913,812
TOTAL OTHER INCOME (EXPENSE)	-20,702	-279,052	-616,614	1,735,339
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES	93,867	-530,034	-806,375	1,069,253
PROVISION FOR INCOME TAXES	'	'	'	'
NET INCOME (LOSS)	$93,867	($530,034)	($806,375)	$1,069,253
NET INCOME LOSS PER SHARE: BASIC	$0	($0.01)	($0.01)	$0.02
NET INCOME LOSS PER SHARE: DILUTED	$0	($0.01)	($0.01)	$0.01
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC	108,911,170	104,383,000	108,911,170	104,383,000
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED	148,628,017	104,383,000	108,911,170	130,567,316

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Jan. 31, 2014	Jan. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income (loss)	($806,375)	$1,069,253
Adjustments To Reconcile Net Income (loss) To Net Cash Used In Operating Activities	'	'
Depreciation expense	849	849
Amortization of debt and accrued interest discount	559,332	250,000
Stock-based compensation	30,114	99,098
Change in fair value of derivative liability	'	-1,913,812
Change in operating assets & liabilities	'	'
Accounts receivable	-236,858	'
Prepaid expenses and deposits	-112,286	-8
Accounts payable and accrued expenses	444,231	196,816
Due to related party	'	-24,120
Billing in excess of costs and estimated earnings on uncompleted projects	-22,579	-38,416
Accrued interest	57,606	59,548
Net Cash Provided by (Used in) Operating Activities	-85,966	-300,792
Net Increase (Decrease) in Cash	-85,966	-300,792
Cash - beginning of the period	315,832	303,568
Cash - end of the period	229,866	2,776
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for interest	'	'
Cash paid for income taxes	'	'

GENERAL_ORGANIZATION_AND_BUSIN

GENERAL ORGANIZATION AND BUSINESS	3 Months Ended
GENERAL ORGANIZATION AND BUSINESS	Jan. 31, 2014
Notes	'
GENERAL ORGANIZATION AND BUSINESS	'
	NOTE 1 - GENERAL ORGANIZATION AND BUSINESS

	Bioshaft Water Technology, Inc. (the “Company”) was originally incorporated under the laws of the state of Nevada on March 8, 2006. The Company owns worldwide patented technology and is in the business of designing, manufacturing and installing wastewater (sewage) treatment plants using its technology.

	The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern. The Company has used cash flows from operations and incurred net losses of approximately $21,507,134 since inception. The Company currently has limited liquidity, and does not yet have enough revenues sufficient to cover operating costs over an extended period of time. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors cause significant doubt regarding the Company to continue as a going concern.

	Management anticipates that the Company will be dependent, for the foreseeable future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

	The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	3 Months Ended
	Jan. 31, 2014
Notes	'
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	'
	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

	Basis of Presentation

	The accounting policies of the Company are in accordance with the accounting principles generally accepted in the United States of America and are presented in United States dollars (“USD”). Outlined below are those policies considered particularly significant. The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of January 31, 2014, and the results of its operations and cash flows for the three and nine months ended January 31, 2014 and 2013. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission. The Company believes that the disclosures in the unaudited financial statements are adequate to make the information presented not misleading. The operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. For further information, refer to the financial statements and notes included in the Company’s Form 10-K for the year ended April 30, 2013.

	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

	Fair Value of Financial Instruments

	The Company follows accounting guidance issued by the Financial Accounting Standards Board (“FASB”) on “Fair Value Measurements” for assets and liabilities measured at fair value on a recurring basis. The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the FASB requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

	The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

	Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

	Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data.

	Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

	Our company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of January 31, 2014 and April 30, 2013, the fair value of short-term financial instruments including cash, accounts receivable, accounts payable and accrued expenses, approximates book value due to their short-term maturity. The fair value of property and equipment is estimated to approximate its net book value. The fair value of debt obligations, other than convertible debt obligations approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation.

	As of January 31, 2014 and April 30, 2013, the Company’s convertible loan payable of $500,000 was considered a level 2 liability.

	Basic Income (Loss) per Common Share

	Basic loss per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period.

	The Company excluded 11,300,000 and 12,300,000 common stock equivalents outstanding as of January 31, 2014 and 2013, respectively, as their exercise prices were in excess of the average closing market price of the Company’s common stock, causing their effects to be anti-dilutive using the treasury stock method.

	The following is a summary of outstanding securities which have been included in the calculation of diluted net income per share and a reconciliation of net income to net income available to common stock holders for the three months ended January 31, 2014 and the nine months ended January 31, 2013:

	.		For the Three	For the Nine
			Months Ended	Months Ended
			31-Jan-14	31-Jan-13
	Weighted average common shares outstanding used in calculating basic earnings per share		108,911,170	104,383,000
	Warrants		2,826,087	6,184,316
	Effect of conversion features on loan payable		20,000,000	20,000,000
	Weighted average common and common equivalent shares used in calculating diluted earnings per share		148,628,017	130,567,316

	Net income as reported		$93,867	$1,069,253
	Add - Interest on convertible loans payable		19,202	56,712
	Net income available to common shareholders		$113,069	$1,125,965



	Revenue Recognition

	The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

	Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

	The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized.

	New Accounting Pronouncements

	The FASB issues Accounting Standard Updates (“ASUs”) to amend the authoritative literature in the Accounting Standards Codification (“ASC”). There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

LOANS_PAYABLE

LOANS PAYABLE	3 Months Ended
	Jan. 31, 2014
Notes	'
LOANS PAYABLE	'
	NOTE 3 - LOANS PAYABLE

	$500,000 Convertible Note

	On August 11, 2008, the Company obtained a loan payable of $500,000 accruing interest at 15%, secured by the assets of the Company, subject to a 3% financing fee and repayable on the one year anniversary date of the agreement.

	On February 13, 2012, the terms of the loan were changed to reflect a conversion feature and extend the maturity date to August 11, 2012. The loan is convertible into shares of the Company’s common stock, up to 20,000,000, at a price of $0.025 per share.

	The Company accounts for the fair value of the conversion feature in accordance with ASC 815-15 “Derivatives and Hedging; Embedded Derivatives” which requires the Company to bifurcate and separately account for the conversion features as an embedded derivative contained in the Company’s convertible loan. The Company is required to carry the embedded derivative on its balance sheet at fair value and account for any unrealized change in fair value as a component of results of operations. The Company valued the embedded derivative using the Black-Scholes pricing model. On February 13, 2012, the fair value of the conversion feature was recorded as a derivative liability and a discount to the convertible loan of $1,363,664 and $500,000, respectively.

	On March 6, 2013, the convertible note was modified to extend the maturity date to August 11, 2013, which as of the date of this filing is in default. As consideration for the extension, 2,811,873 common shares of the Company’s common stock were issued to the lender. The common shares were valued at $168,712 based on the closing market price of the Company's common stock on the date of the agreement. The modification qualified for extinguishment accounting whereby the former convertible note was considered extinguished and a new convertible note issued. Accordingly, the derivative liability allocated with the extinguished convertible note no longer required liability accounting as the conversion price of the convertible note was fixed at $0.025 per share. Thus, the derivative liability was valued immediately before extinguishment, using the inputs noted below at March 6, 2013, with the remaining balance of $700,004 being charged to additional paid-in capital. Because the terms of the modified note included a fixed conversion price and because the Company has an adequate number of common shares available to be issued to cover the conversion, no derivative liability was applicable.

	The Company allocated fair value of the common shares issued of $168,712 in connection with the new convertible note based on their relative fair value to the face value of the convertible note, which resulted in a discount of $126,147 being allocated to the common shares. The new convertible note also contained a BCF due to the conversion price being below the fair market value of the Company's common stock on the date of issuance. The BCF was valued at $331,288, which resulted in a 100%, or $500,000, discount to the new convertible note. The Company is amortizing the discount over the term of the new convertible note using the straight line method due to the short term nature of the note. During the nine month period ended January 31, 2014, the Company amortized $325,000 of the discount to interest expense. As of January 31, 2014 and April 30, 2013, the remaining debt discount was $0 and $325,000, respectively.

	In addition, with the agreement the accrued interest was now convertible at $0.025, the same rate as the new convertible note. At the date of the agreement, the conversion price was below the fair market value of the Company's common stock which implied a BCF. The BCF was valued at $353,519, which resulted in a 100% discount to accrued interest. The Company is amortizing the discount over the term of the new convertible note using the straight line method due to the short term nature of the note. During the nine months ended January 31, 2014, the Company amortized $229,787 of the discount to interest expense. As of January 31, 2014 and April 30, 2013, the remaining discount on accrued interest was $0 and $229,787, respectively.

	Accrued interest related to this loan is $422,269 and $366,019 as of January 31, 2014 and April 30, 2013, respectively.

	Prior to extinguishment on March 6, 2013, the derivative liability was revalued each reporting period using the Black-Scholes model. The Company estimated the fair value of the derivative liability using the Black-Scholes model on the January 31, 2013 reporting dates using the following assumptions:

	.	31-Jan-13
	Exercise price	$0.03
	Risk free interest rate	0.07%
	Expected dividend yield	0%
	Volatility	186%
	Expected life of options	.03 years

	During the nine months ended January 31, 2013, the Company recorded a gain on the change in fair value of derivative liability of $1,913,812.

	$25,000 Loan Payable

	On March 6, 2009, the Company obtained a loan payable of $25,000 accruing interest at 15%, due March 6, 2010 and secured by the assets of the Company. The term of this loan has been extended to September 6, 2012.

	On March 6, 2013, the secured loan payable was modified to extend the maturity date to March 6, 2014. As consideration for the extension, 133,297 common shares of the Company’s common stock were issued to the lender. The common shares were valued at $7,998 based on the closing market price of the Company's common stock on the date of the agreement. The modification qualified for extinguishment accounting whereby the former secured loan payable was considered extinguished and a new secured loan payable was issued.

	The Company allocated the common shares issued in connection with the news secured loan payable based on their relative fair value to the face value of the secured loan payable, which resulted in a discount of $6,059 being allocated to the secured loan payable. As of January 31, 2014, the Company recognized interest expense of $5,457 in connection with the amortization of the secured loan payable discount using the straight line method, with $602 remaining unamortized. The unamortized portion will be fully recognized in fiscal 2014. Accrued interest related to this loan was $16,988 and $15,632 as of January 31, 2014 and April 30, 2013, respectively.

STOCKHOLDERS_DEFICIT

STOCKHOLDERS' DEFICIT	3 Months Ended
STOCKHOLDERS' DEFICIT	Jan. 31, 2014
Notes	'
STOCKHOLDERS' DEFICIT	'
	NOTE 4 - STOCKHOLDERS’ DEFICIT

	Authorized

	The Company is authorized to issue 300,000,000 shares of $0.001 par value common stock and 25,000,000 shares of $0.001 par value preferred stock. All common stock shares have equal voting rights, are non-assessable and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company. The preferred shares may be issued in series, with the powers, rights and limitations of the preferred shares to be determined by the Board.

	Stock Options and Stock-Based Compensation

	During the nine months ended January 31, 2014 and 2013, the Company recorded $30,144 and $99,098 in stock-based compensation, respectively. The Company expects to record $9,475 in additional stock based compensation for the remainder of fiscal year ended April 30, 2014.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2014
Notes	'
RELATED PARTY TRANSACTIONS	'
	NOTE 5 - RELATED PARTY TRANSACTIONS

	As of January 31, 2014, the Company has consulting contracts with three related parties for total annual compensation of $384,000. Total amounts due to these related parties as of January 31, 2014 and April 30, 2013 was $140,556 and $141,400, respectively. The amounts are included in accounts payable and accrued expenses on the accompanying balance sheet.

	As of January 31, 2014 and April 30, 2013, a former officer and current shareholder of the Company is due $206,000 for prior consulting services performed which is included in accounts payable and accrued expenses on the accompanying balance sheets. There were no payments made on this obligation during the nine months ended January 31, 2014.

	As of January 31, 2014 and April 30, 2013, another consultant, shareholder and officer of the Company is due a net $171,966 which is included within accounts payable and accrued expenses on the accompanying balance sheet. There were no payments made on this obligation during the six months ended January 31, 2014.

	During the nine months ended January 31, 2013, the Company generated revenues of $248,060 from an entity controlled by a newly appointed board of director.

	On October 15, 2012, the Company entered into a settlement agreement with Zuhier Ahmad Zahran & Co. ("ZAZ"). Under the terms of the agreement, the Company transferred the responsibility of all outstanding projects in which ZAZ was acting as the teaming partner to ZAZ. Addition, ZAZ obtained the right to distribute the Company's products for a period of two years. In connection with this transaction, the Company recorded a gain on ZAZ settlement of $130,996 which was the result of $24,000 in receivable from ZAZ and the relief of liabilities and deposits of $106,996, net of a $30,000 in accounts receivable from ZAZ. The Company recorded the transaction as other income and expense as the transaction is a one-time transaction and the Company intends to generate future revenues from ZAZ through the distribution of the Company's product.

Subsequent_Events

Subsequent Events	3 Months Ended
Subsequent Events	Jan. 31, 2014
Notes	'
Subsequent Events	'
	NOTE 6. SUBSEQUENT EVENTS

	In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to January 31, 2014 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Basis of Presentation (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
Basis of Presentation	'
	Basis of Presentation

	The accounting policies of the Company are in accordance with the accounting principles generally accepted in the United States of America and are presented in United States dollars (“USD”). Outlined below are those policies considered particularly significant. The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of January 31, 2014, and the results of its operations and cash flows for the three and nine months ended January 31, 2014 and 2013. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission. The Company believes that the disclosures in the unaudited financial statements are adequate to make the information presented not misleading. The operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. For further information, refer to the financial statements and notes included in the Company’s Form 10-K for the year ended April 30, 2013.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Use of Estimates (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
Use of Estimates	'
	Use of Estimates

	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Fair Value of Financial Instruments (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments

	The Company follows accounting guidance issued by the Financial Accounting Standards Board (“FASB”) on “Fair Value Measurements” for assets and liabilities measured at fair value on a recurring basis. The FASB defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the FASB requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

	The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

	Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities.

	Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data.

	Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

	Our company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of January 31, 2014 and April 30, 2013, the fair value of short-term financial instruments including cash, accounts receivable, accounts payable and accrued expenses, approximates book value due to their short-term maturity. The fair value of property and equipment is estimated to approximate its net book value. The fair value of debt obligations, other than convertible debt obligations approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation.

	As of January 31, 2014 and April 30, 2013, the Company’s convertible loan payable of $500,000 was considered a level 2 liability.

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Basic Income (Loss) Per Common Share (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
Basic Income (Loss) Per Common Share	'
	Basic Income (Loss) per Common Share

	Basic loss per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Under the treasury stock method, the exercise price of an award, if any, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the estimated tax benefits that would be recorded in paid-in capital, if any, when an award is settled are assumed to be used to repurchase shares in the current period.

	The Company excluded 11,300,000 and 12,300,000 common stock equivalents outstanding as of January 31, 2014 and 2013, respectively, as their exercise prices were in excess of the average closing market price of the Company’s common stock, causing their effects to be anti-dilutive using the treasury stock method.

	The following is a summary of outstanding securities which have been included in the calculation of diluted net income per share and a reconciliation of net income to net income available to common stock holders for the three months ended January 31, 2014 and the nine months ended January 31, 2013:

	.	For the Three	For the Nine
		Months Ended	Months Ended
		31-Jan-14	31-Jan-13
	Weighted average common shares outstanding used in calculating basic earnings per share	108,911,170	104,383,000
	Warrants	2,826,087	6,184,316
	Effect of conversion features on loan payable	20,000,000	20,000,000
	Weighted average common and common equivalent shares used in calculating diluted earnings per share	148,628,017	130,567,316

	Net income as reported	$93,867	$1,069,253
	Add - Interest on convertible loans payable	19,202	56,712
	Net income available to common shareholders	$113,069	$1,125,965

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Revenue Recognition (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition

	The Company recognizes revenues from contracts on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. That method is used because management considers total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term.

	Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income, which are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements, are accounted for as changes in estimates in the current period. No profit is recognized on change orders until they have been approved by the customer.

	The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized.

SUMMARY_OF_SIGNIFICANT_ACCOUNT6

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: New Accounting Pronouncements (Policies)	3 Months Ended
	Jan. 31, 2014
Policies	'
New Accounting Pronouncements	'
	New Accounting Pronouncements

	The FASB issues Accounting Standard Updates (“ASUs”) to amend the authoritative literature in the Accounting Standards Codification (“ASC”). There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

SUMMARY_OF_SIGNIFICANT_ACCOUNT7

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Basic Income (Loss) Per Common Share: Schedule of Weighted Average Number of Shares (Tables)	3 Months Ended
	Jan. 31, 2014
Tables/Schedules	'
Schedule of Weighted Average Number of Shares	'

	.	For the Three	For the Nine
		Months Ended	Months Ended
		31-Jan-14	31-Jan-13
	Weighted average common shares outstanding used in calculating basic earnings per share	108,911,170	104,383,000
	Warrants	2,826,087	6,184,316
	Effect of conversion features on loan payable	20,000,000	20,000,000
	Weighted average common and common equivalent shares used in calculating diluted earnings per share	148,628,017	130,567,316

	Net income as reported	$93,867	$1,069,253
	Add - Interest on convertible loans payable	19,202	56,712
	Net income available to common shareholders	$113,069	$1,125,965

LOANS_PAYABLE_Schedule_of_Deri

LOANS PAYABLE: Schedule of Derivative Liabilities at Fair Value (Tables)	3 Months Ended
	Jan. 31, 2014
Tables/Schedules	'
Schedule of Derivative Liabilities at Fair Value	'

	.	31-Jan-13
	Exercise price	$0.03
	Risk free interest rate	0.07%
	Expected dividend yield	0%
	Volatility	186%
	Expected life of options	.03 years

GENERAL_ORGANIZATION_AND_BUSIN1

GENERAL ORGANIZATION AND BUSINESS (Details) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Details	'	'
Net losses since inception	$21,507,134	$20,700,759

SUMMARY_OF_SIGNIFICANT_ACCOUNT8

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Fair Value of Financial Instruments (Details) (USD $)	Jan. 31, 2014
Details	'
Convertible note payable	$500,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT9

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Basic Income (Loss) Per Common Share (Details)	9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Details	'	'
Common stock excluded, anti-dilutive	11,300,000	12,300,000

Recovered_Sheet1

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES: Basic Income (Loss) Per Common Share: Schedule of Weighted Average Number of Shares (Details) (USD $)	3 Months Ended		9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Details	'	'	'	'
Weighted average common shares outstanding used in calculating basic earnings per share	108,911,170	104,383,000	108,911,170	104,383,000
Warrants	2,826,087	'	'	6,184,316
Effect of conversion features on loan payable	20,000,000	'	'	20,000,000
Weighted average common and common equivalent shares used in calculating diluted earnings per share	148,628,017	104,383,000	108,911,170	130,567,316
Net income as reported	$93,867	'	'	$1,069,253
Add: Interest on convertible loans payable	19,202	'	'	56,712
Net income available to common shareholders	$113,069	'	'	$1,125,965

LOANS_PAYABLE_Details

LOANS PAYABLE (Details) (USD $)

Jan. 31, 2014

Apr. 30, 2013

Jul. 31, 2013

Jan. 31, 2014

Jan. 31, 2013

Oct. 31, 2013

Apr. 30, 2013

Mar. 06, 2013

Feb. 13, 2012

Aug. 11, 2008

Jan. 31, 2014

Apr. 30, 2013

Jan. 31, 2014

Apr. 30, 2013

Mar. 06, 2013

Mar. 06, 2009

$500,000 Convertible Note

Accrued interest on convertible note

$25,000 Loan Payable

Loan payable

$500,000

$25,000

Interest rate on loan payable

15.00%

Financing fee rate

3.00%

Convertible feature, shares

20,000,000

Convertible feature, price per share

$0.03

Derivative liability

1,363,664

Shares issued for extension of note

2,811,873

133,297

Shares issued for extension of note (value)

168,712

7,998

Extinguishment of derivative liability, charged to additional paid-in capital

700,004

Discount allocated to common shares

126,147

Amortized discount

325,000

229,787

Unamortized portion of discount

602

330,147

325,000

229,787

Accrued interest

524,398

194,853

422,269

366,019

16,988

15,632

Gain on change in fair value of derivative liability

1,913,812

Interest expense

$5,457

LOANS_PAYABLE_Schedule_of_Deri1

LOANS PAYABLE: Schedule of Derivative Liabilities at Fair Value (Details) (USD $)	9 Months Ended
	Jan. 31, 2013
Details	'
Exercise price, derivative liability	$0.03
Risk free interest rate, derivative liability	0.07%
Volatility rate, derivative liability	186.00%
Expected life of options	'11 days

STOCKHOLDERS_DEFICIT_Details

STOCKHOLDERS' DEFICIT (Details) (USD $)	9 Months Ended
STOCKHOLDERS' DEFICIT (Details) (USD $)	Jan. 31, 2014	Jan. 31, 2013
Details	'	'
Stock-based compensation recorded	$30,114	$99,098

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details) (USD $)	9 Months Ended				6 Months Ended
	Jan. 31, 2014	Apr. 30, 2013	Jan. 31, 2014	Jan. 31, 2014	Oct. 31, 2012	Oct. 31, 2012	Oct. 15, 2012
	Consulting Contracts	Consulting Contracts	Former officer and current shareholder	Consultant, shareholder and officer	Revenues and Settlements	Zuhier A. Zahran	Zuhier A. Zahran
Related party compensation	$384,000	'	'	'	$248,060	'	'
Due to related parties	140,556	141,400	'	'	'	'	'
Due to related party, other	'	'	206,000	'	'	'	'
Payable due to related party	'	'	'	171,966	'	'	'
Gain on settlement agreement-	'	'	'	'	'	'	130,996
Receivable from related party	'	'	'	'	'	24,000	'
Relief of liabilities and deposits, settlement agreement-	'	'	'	'	'	'	$106,996