Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Oct. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'BIOSHAFT WATER TECHNOLOGY, INC. | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Apr-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 | 'FY | ' |
Entity Public Float | ' | $8,454,769 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash | $37,338 | $315,832 |
Accounts receivable, net | 302,941 | 15,700 |
Costs in excess of billings on uncompleted projects | 233,352 | ' |
Total Current Assets | 573,631 | 331,532 |
Property and equipment, net | 561 | 1,684 |
Deposits | 1,000 | 3,248 |
Total Assets | 575,192 | 336,464 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 1,473,172 | 777,165 |
Billings in excess of costs and estimated earnings on uncompleted projects | 427,814 | 294,797 |
Accrued interest, net of discount | 460,401 | 151,864 |
Loans payable, net of debt discount | 525,000 | 194,853 |
Total Current Liabilities | 2,886,387 | 1,418,679 |
Total Liabilities | 2,886,387 | 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 | -21,959,853 | -20,700,759 |
Total Stockholders' Deficit | -2,311,195 | -1,082,215 |
Total Liabilities and Stockholders' Deficit | $575,192 | $336,464 |
BALANCE_SHEET_PARENTHETICAL
BALANCE SHEET (PARENTHETICAL) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Balance Sheets | ' | ' |
Allowance for doubtful accounts | $34,000 | ' |
Interest discount | ' | 229,787 |
Debt discount | ' | $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 $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
REVENUES | ' | ' |
Net revenue from projects | $2,060,935 | $515,882 |
Net revenue (expense) from sale of products | ' | -350 |
TOTAL REVENUES | 2,060,935 | 515,532 |
COST OF GOODS SOLD | 1,764,413 | 279,684 |
GROSS PROFIT (LOSS) | 296,522 | 235,848 |
OPERATING EXPENSES | ' | ' |
Selling, general and administrative | 417,397 | 448,234 |
Advertising, marketing and promotions | 15,123 | 7,788 |
Consulting fees | 453,500 | 432,179 |
Depreciation | 1,123 | 1,123 |
Stock-based compensation | 30,114 | 116,968 |
TOTAL OPERATING EXPENSES | 917,257 | 1,006,292 |
INCOME (LOSS) FROM OPERATIONS | -620,735 | -770,444 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest income (expense), net | -78,425 | -78,593 |
Amortization of debt discount | -559,934 | -549,644 |
Gain on settlement with ZAZ | ' | 130,996 |
Change in fair value of derivative | ' | 2,013,929 |
TOTAL OTHER INCOME (EXPENSE) | -638,359 | 1,516,688 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | -1,259,094 | 746,244 |
PROVISION FOR INCOME TAXES | ' | ' |
NET INCOME (LOSS) | ($1,259,094) | $746,244 |
NET INCOME LOSS PER SHARE: BASIC | ($0.01) | $0.01 |
NET INCOME LOSS PER SHARE: DILUTED | ($0.01) | $0.01 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC | 108,911,170 | 105,028,582 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED | 108,911,170 | 131,288,665 |
STATEMENT_OF_STOCKHOLDERS_DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity |
Beginning Balance, amount at Apr. 30, 2012 | $104,383 | $17,642,389 | ($21,447,003) | ($3,700,231) |
Beginning Balance, shares at Apr. 30, 2012 | 104,383,000 | ' | ' | ' |
Stock-based compensation (equity) | ' | 74,690 | ' | 74,690 |
Extinguishment of derivative liability | ' | 700,004 | ' | 700,004 |
Discount on convertible note and accrued interest (shares) | 2,945,170 | ' | ' | ' |
Discount on convertible note and accrued interest (value) | ' | 2,945 | 856,633 | 859,578 |
Stock issued for cash, shares | 1,583,000 | ' | ' | ' |
Stock issued for cash, value | 1,583 | 235,917 | ' | 237,500 |
Net loss for the period | ' | ' | 746,244 | 746,244 |
Ending Balance, amount at Apr. 30, 2013 | 108,911 | 19,509,633 | -20,700,759 | -1,082,215 |
Ending Balance, shares at Apr. 30, 2013 | 108,911,170 | ' | ' | ' |
Stock-based compensation (equity) | ' | 30,114 | ' | 30,114 |
Net loss for the period | ' | ' | -1,259,094 | -1,259,094 |
Ending Balance, amount at Apr. 30, 2014 | $108,911 | $19,539,747 | ($21,959,853) | ($2,311,195) |
Ending Balance, shares at Apr. 30, 2014 | 108,911,170 | ' | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | ($1,259,094) | $746,244 |
Adjustments To Reconcile Net Income (loss) To Net Cash Used In Operating Activities | ' | ' |
Depreciation expense | 1,123 | 1,123 |
Amortization of debt and accrued interest discount | 559,934 | 549,644 |
Bad debt expense | 34,000 | ' |
Stock-based compensation | 30,114 | 116,968 |
Change in fair value of derivative liability | ' | -2,013,929 |
Change in operating assets & liabilities | ' | ' |
Accounts receivable | -321,241 | -15,700 |
Costs in excess of billings on uncompleted projects | -233,352 | 2,253 |
Deposits | 2,248 | -1,000 |
Accounts payable and accrued expenses | 696,007 | 111,667 |
Due to related party | ' | -24,120 |
Billing in excess of costs and estimated earnings on uncompleted projects | 133,017 | 222,864 |
Accrued interest | 78,750 | 78,750 |
Net Cash Provided by (Used in) Operating Activities | -278,494 | -225,236 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of stock | ' | 237,500 |
Net Cash Provided by Financing Activities | ' | 237,500 |
Net Increase (Decrease) in Cash | -278,494 | 12,264 |
Cash - beginning of the period | 315,832 | 303,568 |
Cash - end of the period | 37,338 | 315,832 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | ' | ' |
Cash paid for income taxes | ' | ' |
NON-CASH TRANSACTIONS | ' | ' |
Debt discount due to common stock and beneficial conversion | ' | 506,059 |
Discount on accrued interest | ' | 353,519 |
Derivative liability reclassed to additional paid-in capital | ' | $700,004 |
General_Organization_and_Busin
General Organization and Business | 12 Months Ended |
Apr. 30, 2014 | |
Notes | ' |
General Organization and Business | ' |
NOTE 1. GENERAL ORGANIZATION AND BUSINESS | |
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. | |
Going Concern | |
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 $21,960,000 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 | 12 Months Ended | |||
Apr. 30, 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. | ||||
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. | |||
The Company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of April 30, 2014 and 2013, the fair value of short-term financial instruments including cash, accounts receivable, accounts payable and accrued expenses, costs in excess of billings on uncompleted projects, billings in excess of costs and estimated earnings on uncompleted projects, and accrued interest 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 loans payable approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation. | ||||
Concentration of Credit Risk | ||||
Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company has a diversified customer base. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. | ||||
Basic Income (Loss) per Common Share | ||||
Basic income (loss) per share is calculated by dividing the Company’s net income (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 income (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. | ||||
During the year ended April 30, 2014, the Company excluded 6,100,000 common stock equivalents related to options outstanding, 10,000,000 common stock equivalents related to warrants outstanding, 37,640,760 shares issuable under the convertible loans payable and accrued interest as their effects would have been anti-dilutive. | ||||
The following is a summary of outstanding securities which have been included in the calculation of diluted net income per share and reconciliation of net income to net income available to common stock holders for the year ended April 30, 2013: | ||||
For the Year | ||||
Ended | ||||
30-Apr-13 | ||||
Weighted average common shares outstanding | 105,028,582 | |||
used in calculating basic earnings per share | ||||
Warrants | 6,260,083 | |||
Convertible loans payable and accrued interest | 20,000,000 | |||
Weighted average common and common equivalent | 131,288,665 | |||
shares used in calculating diluted earnings per share | ||||
Net income as reported | $ | 746,244 | ||
Add - Interest on convertible loans payable | 78,750 | |||
Net income as adjusted | $ | 824,994 | ||
Cash and Cash Equivalents | ||||
For purpose of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||||
Accounts Receivable | ||||
Accounts receivable is generated from contracts for projects. An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly evaluating the customer receivables and at time obtaining prepayments on contracts. During the years ended April 30, 2014 and 2013, the provisions for uncollectible accounts receivable was $34,000 and $0, respectively. | ||||
Property and Equipment | ||||
Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over the period of three years. | ||||
Convertible Debt | ||||
Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470 “Debt with Conversion and Other Options” and ASC 740 “Beneficial Conversion Features”. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants, if any, issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital. | ||||
The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718 “Compensation - Stock Compensation”, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt. | ||||
The Company accounts for modifications of its BCF’s in accordance with ASC 470 “Modifications and Exchanges”. ASC 470 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment. | ||||
Revenue Recognition | ||||
For contracts in which the Company can reasonably estimate the costs and the percent complete, the Company recognizes revenues based 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. | ||||
For contracts in which the Company can't reasonably estimate the costs and the percent complete, the Company recognizes revenues using the completed contract method. Typically, these contracts are isolated to international contracts whereby the Company is providing equipment and limited installation. Under the completed contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and the equipment is delivered to the end user. | ||||
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 asset, "Costs in excess of billings on uncompleted projects", represents costs incurred on current projects in which have not been allocated to the particular project or the contract has not been completed and typically relate to deposit paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized. Contract retentions are included in accounts receivable. | ||||
Stock-Based Compensation | ||||
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, “Compensation - Stock Compensation” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values over the requisite vesting period. | ||||
The Company follows ASC 505-50, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered. | ||||
Derivative Financial Instruments | ||||
We do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of our financial instruments. However, under the provisions ASC 815 - “Derivatives and Hedging” certain financial instruments that have characteristics of a derivative, as defined by ASC 815, such as embedded conversion features on our convertible notes, that are potentially settled in the Company’s own common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Derivative financial instruments are initially recorded, and continuously carried, at fair value each reporting period. | ||||
The value of the embedded conversion feature was determined using the Black-Scholes option pricing model. All changes in the fair value of the embedded conversion feature were recognized currently in earnings until the note was extinguished. Determining the fair value of derivative financial instruments involved judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, credit risk, volatility and other factors. The use of different assumptions could have a material effect on the estimated fair value amounts. | ||||
Product Warranty Costs | ||||
The Company provides warranties for certain products and maintains warranty reserves for estimated product warranty costs based upon the percent complete of the project. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty. During the year ended April 30, 2014, the Company recorded an initial warranty reserve of $24,000, in which there have been no offsets. Previously, a warranty reserve had not been required and thus not provided. | ||||
Income Taxes | ||||
The Company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward. | ||||
The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. To date no such provisions have been recorded. | ||||
Impairment of Long-Lived Assets | ||||
The Company regularly evaluates whether events and circumstances have occurred that indicate the carrying amount of property and equipment may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, the Company assesses the potential impairment by determining whether the carrying value of such long-lived assets will be recovered through the future undiscounted cash flows expected from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. The Company regularly evaluates whether events and circumstances have occurred that indicate the useful lives of property and equipment may warrant revision. In our opinion, the carrying values of our long-lived assets, including property and equipment, were not impaired at April 30, 2014 and 2013. | ||||
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. |
Property_and_Equipment_Disclos
Property and Equipment Disclosure | 12 Months Ended | ||||||
Apr. 30, 2014 | |||||||
Notes | ' | ||||||
Property and Equipment Disclosure | ' | ||||||
NOTE 3. PROPERTY AND EQUIPMENT | |||||||
Property and equipment consisted of the following at April 30: | |||||||
2014 | 2013 | ||||||
Computer equipment | $ | 15,177 | $ | 15,177 | |||
Less: accumulated depreciation | -14,616 | -13,493 | |||||
Property and equipment, net | $ | 561 | $ | 1,684 | |||
Depreciation expense was $1,123 and $1,123 for the years ended April 30, 2014 and 2013, respectively. |
Loans_Payable_Disclosure
Loans Payable Disclosure | 12 Months Ended | ||
Apr. 30, 2014 | |||
Notes | ' | ||
Loans Payable Disclosure | ' | ||
NOTE 4. LOANS PAYABLE | |||
$500,000 Convertible Loan | |||
On August 11, 2008, the Company secured 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. 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 loan was modified to extend the maturity date to August 11, 2013. 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 loan was considered extinguished and a new convertible loan 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 loan based on their relative fair value to the face value of the convertible loan, which resulted in a discount of $126,147 being allocated to the common shares. The new convertible loan 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% discount to the new convertible loan. As of April 30, 2014 and 2013, the Company recognized amortization expense of $325,000 and $175,000, respectively, using the straight line method in connection with the amortization of the convertible loan discount. As of April 30, 2014, the discount is fully amortized. | |||
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. As of April 30, 2014 and 2013, the Company recognized amortization expense of $229,787 and $123,732, respectively using the straight line method in connection with the amortization of the discount. As of April 30, 2014, the discount is fully amortized. Accrued interest related to this loan is $441,019 and $366,019 as of April 30, 2014 and 2013, respectively. | |||
Total amortization expense recorded related to the $500,000 convertible note and accrued interest during the year ended April 30, 2014 was $554,787. | |||
As of April 30, 2014, the Company was in default of the convertible loan and is currently trying to renegotiate the terms with the holder. | |||
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 March 6, 2013, the date of extinguishment, using the following assumptions: | |||
. | 6-Mar-13 | ||
Exercise price | $0.03 | ||
Risk free interest rate | 0.07% | ||
Expected dividend yield | 0% | ||
Volatility | 186% | ||
Expected life of options | .01 years | ||
During the year ended April 30, 2013, the Company recorded a gain on the change in fair value of derivative liability of $2,013,929 due to the changes in fair value of the derivative liability between April 30, 2012 and the date of extinguishment. | |||
$25,000 Loan Payable | |||
On March 6, 2009, the Company secured a loan payable of $25,000 accruing interest at 15%, due March 6, 2010 and secured by the assets of the Company. | |||
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 new 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 April 30, 2014 and 2013, the Company recognized amortization expense of $5,147 and $912, respectively, in connection with the amortization of the secured loan payable discount using the straight line method. As of April 30, 2014, the discount is fully amortized. | |||
Accrued interest related to this loan was $19,382 and $15,632 as of April 30, 2014 and 2013, respectively. | |||
As of April 30, 2014, the Company was in default of the secured loan payable and is currently trying to renegotiate the terms with the holder. |
Stockholders_Deficit_Disclosur
Stockholders' Deficit Disclosure | 12 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Notes | ' | |||||||
Stockholders' Deficit Disclosure | ' | |||||||
NOTE 5. 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. | ||||||||
Shares Issued for Cash | ||||||||
On March 13, 2013, the Company issued 1,250,000 shares of common stock at $0.15 per share for total proceeds of $187,500. | ||||||||
On March 20, 2013, the Company issued 333,000 shares of common stock at $0.15 per share for total proceeds of $50,000. | ||||||||
Stock Options and Stock-Based Compensation | ||||||||
The Company uses the Black-Scholes option valuation model to value stock options and warrants granted. The Black- Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates, which are subjective and may not be representative of actual results. | ||||||||
A summary of stock option for the years ended April 30, 2014 and 2013 and changes during the corresponding year are presented as follows: | ||||||||
Options | Weighted Average | Weighted | ||||||
Exercise Price | Average | |||||||
Remaining | ||||||||
Contractual | ||||||||
Term (Years) | ||||||||
Outstanding April 30, 2012 | 13,300,000 | $ | 0.15 | 5.9 | ||||
Granted | - | - | - | |||||
Canceled | -2,000,000 | 0.15 | 3.4 | |||||
Outstanding April 30, 2013 | 11,300,000 | 0.15 | 5.3 | |||||
Granted | - | - | - | |||||
Canceled | -5,200,000 | 0.15 | 7.8 | |||||
Outstanding April 30, 2014 | 6,100,000 | $ | 0.15 | 1.6 | ||||
During the years ended April 30, 2014 and 2013, the Company recorded $30,114 and $116,968 in stock-based compensation, respectively, which includes the amortization of prepaid amounts. All stock based compensation has been amortized as of April 30, 2014. | ||||||||
Warrants | ||||||||
As of April 30, 2014 and 2013, the Company has outstanding warrants to purchase 10,000,000 shares of common stock at an exercise price of $0.025 with an initial life of five years. The warrants expire in February 2017. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2014 | |
Notes | ' |
Related Party Transactions | ' |
NOTE 6. RELATED PARTY TRANSACTIONS | |
Consulting Contracts | |
As of April 30, 2014, the Company has consulting contracts with three related parties for total annual compensation of $384,000. Total amounts due to these related parties, including reimbursable expenses, as of April 30, 2014 and 2013 was $170,289 and $141,400, respectively. The amounts are included in accounts payable and accrued expenses on the accompanying balance sheet. | |
During the year ended April 30, 2013, a consulting contract with a related party for total annual compensation of $120,000 expired on December 31, 2012 without renewal. During the year ended April 30, 2013, the Company recorded compensation of $80,000 in connection with this contract. As of April 30, 2014, no additional amounts were due to this former consultant. | |
As of April 30, 2014 and 2013, the Company's Chief Executive Officer, who resigned in February 2014, had accrued salaries of $19,000 and $58,000, respectively. The amount was included in accounts payable and accrued expenses on the accompanying balance sheets. | |
As of April 30, 2014 and 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 years ended April 30, 2014 and 2013. | |
As of April 30, 2014 and 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 sheets. There were no payments made on this obligation during the years ended April 30, 2014 and 2013. | |
As of April 30, 2012, the Company had a net amount due to a related party of $2,559. The amount was comprised of accounts receivable and accounts payable in which have the right of offset. The Company recognized net expense of $350 from the related party during the year ended April 30, 2013. | |
Revenues and Settlements | |
During the year ended April 30, 2014, the Company entered into a contract with an entity controlled by a board of director to provide a waste water plant, see below for additional transactions with the board of director member. As of April 30, 2014, the Company has invoiced the related party under the contract $100,927 of which progress payments of $100,927 have been received. The Company has not recorded any revenues in connection with contract as to date invoices have related to purchase equipment in which would incorrectly reflect the actual percent complete on the contract. | |
During the year ended April 30, 2013, the Company generated revenues of $248,060 from an entity controlled by a board of director, see below. | |
On October 15, 2012, the Company entered into a settlement agreement with Zuhier A. Zahran ("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. Additionally, ZAZ obtained the right to distribute the Company's products for a period of two years. In connection, with 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 their product. The Company received the $24,000 receivable from ZAZ during the year ended April 30, 2013. |
Commitment_Disclosure
Commitment Disclosure | 12 Months Ended |
Apr. 30, 2014 | |
Notes | ' |
Commitment Disclosure | ' |
NOTE 7. COMMITMENT | |
Operating Leases | |
In April 2009, Company entered into a lease for a new facility, commencing May 5, 2009. The lease expired on May 4, 2013 and carried a base rent of $24,692 per year. The Company currently leases an office space on a year to year basis. Monthly rent charged in connection with this lease is $500. |
Income_Taxes_Disclosure
Income Taxes Disclosure | 12 Months Ended | ||||||
Apr. 30, 2014 | |||||||
Notes | ' | ||||||
Income Taxes Disclosure | ' | ||||||
NOTE 8. INCOME TAXES | |||||||
The provision for income tax consists of the following for the years ended April 30: | |||||||
2014 | 2013 | ||||||
Income tax benefit attributable to: | |||||||
Net income (loss) | $ | -414,832 | $ | 253,723 | |||
Permanent differences | 190,378 | -497,857 | |||||
Valuation allowance | 224,454 | 244,134 | |||||
Net provision for income tax | $ | -- | $ | -- | |||
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of April 30: | |||||||
2014 | 2013 | ||||||
Deferred tax asset attributable to: | |||||||
Net operating loss carryover | $ | 7,760,569 | $ | 7,536,115 | |||
Valuation allowance | -7,760,569 | -7,536,115 | |||||
Net deferred tax asset | $ | -- | $ | -- | |||
During the years ended April 30, 2014 and 2013, the valuation allowance increased by $237,714 and $244,134, respectively. At April 30, 2014, the Company had approximately $22,864,000 in federal and state gross net operating losses allocated to continuing operations available. The net operating loss carry forwards, if not utilized, will begin to expire in 2029 for federal purposes and 2019 for state purposes. | |||||||
Based on the available objective evidence, including the Company’s limited operating history and current liabilities in excess of assets, management believes it is more likely than not that the net deferred tax assets at April 30, 2014 and 2013, will not be fully realizable. In addition, since inception the Company has issued a significant amount of common stock for cash, services, etc. The Company has determined that due to the significant change in ownership, the historical NOLs have probably been impaired due to IRS Section 382 limitations. | |||||||
The Company has filed all United States Federal and State tax returns. The Company has identified the United States Federal tax returns as its “major” tax jurisdiction. The United States Federal return years 2010 through 2014 are still subject to tax examination by the United States Internal Revenue Service; however, we do not currently have any ongoing tax examinations. The Company is subject to examination by the California Franchise Tax Board for the years ended 2009 through 2014 and currently does not have any ongoing tax examinations. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2014 | |
Notes | ' |
Subsequent Events | ' |
NOTE 9 - SUBSEQUENT EVENTS | |
Subsequent to year end, the Company entered into a promissory note for $54,000 with an entity controlled by a significant shareholder and a member of the board of directors. The promissory note incurs interest at 15% per annum, compounding monthly, with principal and interest due July 25, 2015. | |
Subsequent to year end, the Company received $60,000 in proceeds used for working capital purposes from the note holders discussed in Note 4 above. The terms of the agreement have yet to be finalized. | |
Subsequent to year end, the Company sold 1,500,000 shares of common stock at $0.07 per share resulting in proceeds of $105,000. | |
In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to April 30, 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 other than the items above. |
Summary_of_Significant_Account1
Summary of Significant Accounting Practices: Basis of Presentation (Policies) | 12 Months Ended |
Apr. 30, 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Practices: Use of Estimates (Policies) | 12 Months Ended |
Apr. 30, 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) | 12 Months Ended | |
Apr. 30, 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. | |
The Company discloses the estimated fair value for all financial instruments for which it is practicable to estimate fair value. As of April 30, 2014 and 2013, the fair value of short-term financial instruments including cash, accounts receivable, accounts payable and accrued expenses, costs in excess of billings on uncompleted projects, billings in excess of costs and estimated earnings on uncompleted projects, and accrued interest 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 loans payable approximates their face values due to their short-term maturities and/or the variable rates of interest associated with the underlying obligation. |
Summary_of_Significant_Account4
Summary of Significant Accounting Practices: Concentration of Credit Risk (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company has a diversified customer base. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Summary_of_Significant_Account5
Summary of Significant Accounting Practices: Basic Income (loss) Per Common Share, Policy (Policies) | 12 Months Ended | |||
Apr. 30, 2014 | ||||
Policies | ' | |||
Basic Income (loss) Per Common Share, Policy | ' | |||
Basic Income (Loss) per Common Share | ||||
Basic income (loss) per share is calculated by dividing the Company’s net income (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 income (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. | ||||
During the year ended April 30, 2014, the Company excluded 6,100,000 common stock equivalents related to options outstanding, 10,000,000 common stock equivalents related to warrants outstanding, 37,640,760 shares issuable under the convertible loans payable and accrued interest as their effects would have been anti-dilutive. | ||||
The following is a summary of outstanding securities which have been included in the calculation of diluted net income per share and reconciliation of net income to net income available to common stock holders for the year ended April 30, 2013: | ||||
For the Year | ||||
Ended | ||||
30-Apr-13 | ||||
Weighted average common shares outstanding | 105,028,582 | |||
used in calculating basic earnings per share | ||||
Warrants | 6,260,083 | |||
Convertible loans payable and accrued interest | 20,000,000 | |||
Weighted average common and common equivalent | 131,288,665 | |||
shares used in calculating diluted earnings per share | ||||
Net income as reported | $ | 746,244 | ||
Add - Interest on convertible loans payable | 78,750 | |||
Net income as adjusted | $ | 824,994 | ||
Summary_of_Significant_Account6
Summary of Significant Accounting Practices: Cash and Cash Equivalents, Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Cash and Cash Equivalents, Policy | ' |
Cash and Cash Equivalents | |
For purpose of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. |
Summary_of_Significant_Account7
Summary of Significant Accounting Practices: Accounts Receivable Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Accounts Receivable Policy | ' |
Accounts Receivable | |
Accounts receivable is generated from contracts for projects. An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly evaluating the customer receivables and at time obtaining prepayments on contracts. During the years ended April 30, 2014 and 2013, the provisions for uncollectible accounts receivable was $34,000 and $0, respectively. |
Summary_of_Significant_Account8
Summary of Significant Accounting Practices: Property and Equipment Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Property and Equipment Policy | ' |
Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over the period of three years. |
Summary_of_Significant_Account9
Summary of Significant Accounting Practices: Convertible Debt Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Convertible Debt Policy | ' |
Convertible Debt | |
Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470 “Debt with Conversion and Other Options” and ASC 740 “Beneficial Conversion Features”. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants, if any, issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital. | |
The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718 “Compensation - Stock Compensation”, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt. | |
The Company accounts for modifications of its BCF’s in accordance with ASC 470 “Modifications and Exchanges”. ASC 470 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment. |
Recovered_Sheet1
Summary of Significant Accounting Practices: Revenue Recognition Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Revenue Recognition Policy | ' |
Revenue Recognition | |
For contracts in which the Company can reasonably estimate the costs and the percent complete, the Company recognizes revenues based 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. | |
For contracts in which the Company can't reasonably estimate the costs and the percent complete, the Company recognizes revenues using the completed contract method. Typically, these contracts are isolated to international contracts whereby the Company is providing equipment and limited installation. Under the completed contract basis, contract costs are recorded to a deferred asset account and billings and/or cash received are recorded to a deferred revenue liability account during the periods of construction. All revenues, costs, and profits are recognized in operations upon completion of the contract. A contract is considered completed when all costs except insignificant items have been incurred and the equipment is delivered to the end user. | |
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 asset, "Costs in excess of billings on uncompleted projects", represents costs incurred on current projects in which have not been allocated to the particular project or the contract has not been completed and typically relate to deposit paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenues recognized. Contract retentions are included in accounts receivable. |
Recovered_Sheet2
Summary of Significant Accounting Practices: Stock-based Compensation Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Stock-based Compensation Policy | ' |
Stock-Based Compensation | |
The Company accounts for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, “Compensation - Stock Compensation” which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values over the requisite vesting period. | |
The Company follows ASC 505-50, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered. |
Recovered_Sheet3
Summary of Significant Accounting Practices: Derivative Financial Instruments Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Derivative Financial Instruments Policy | ' |
Derivative Financial Instruments | |
We do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of our financial instruments. However, under the provisions ASC 815 - “Derivatives and Hedging” certain financial instruments that have characteristics of a derivative, as defined by ASC 815, such as embedded conversion features on our convertible notes, that are potentially settled in the Company’s own common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Derivative financial instruments are initially recorded, and continuously carried, at fair value each reporting period. | |
The value of the embedded conversion feature was determined using the Black-Scholes option pricing model. All changes in the fair value of the embedded conversion feature were recognized currently in earnings until the note was extinguished. Determining the fair value of derivative financial instruments involved judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, credit risk, volatility and other factors. The use of different assumptions could have a material effect on the estimated fair value amounts. |
Recovered_Sheet4
Summary of Significant Accounting Practices: Product Warranty Costs Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Product Warranty Costs Policy | ' |
Product Warranty Costs | |
The Company provides warranties for certain products and maintains warranty reserves for estimated product warranty costs based upon the percent complete of the project. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty. During the year ended April 30, 2014, the Company recorded an initial warranty reserve of $24,000, in which there have been no offsets. Previously, a warranty reserve had not been required and thus not provided. |
Recovered_Sheet5
Summary of Significant Accounting Practices: Income Taxes Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Income Taxes Policy | ' |
Income Taxes | |
The Company provides for income taxes using an asset and liability approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward. | |
The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. To date no such provisions have been recorded. |
Recovered_Sheet6
Summary of Significant Accounting Practices: Impairment of Long-lived Assets Policy (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Policies | ' |
Impairment of Long-lived Assets Policy | ' |
Impairment of Long-Lived Assets | |
The Company regularly evaluates whether events and circumstances have occurred that indicate the carrying amount of property and equipment may not be recoverable. When factors indicate that these long-lived assets should be evaluated for possible impairment, the Company assesses the potential impairment by determining whether the carrying value of such long-lived assets will be recovered through the future undiscounted cash flows expected from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as applicable. The Company regularly evaluates whether events and circumstances have occurred that indicate the useful lives of property and equipment may warrant revision. In our opinion, the carrying values of our long-lived assets, including property and equipment, were not impaired at April 30, 2014 and 2013. |
Recovered_Sheet7
Summary of Significant Accounting Practices: New Accounting Pronouncements (Policies) | 12 Months Ended |
Apr. 30, 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. |
Recovered_Sheet8
Summary of Significant Accounting Practices: Basic Income (loss) Per Common Share, Policy: Schedule of Weighted Average Number of Shares (Tables) | 12 Months Ended | |||
Apr. 30, 2014 | ||||
Tables/Schedules | ' | |||
Schedule of Weighted Average Number of Shares | ' | |||
For the Year | ||||
Ended | ||||
30-Apr-13 | ||||
Weighted average common shares outstanding | 105,028,582 | |||
used in calculating basic earnings per share | ||||
Warrants | 6,260,083 | |||
Convertible loans payable and accrued interest | 20,000,000 | |||
Weighted average common and common equivalent | 131,288,665 | |||
shares used in calculating diluted earnings per share | ||||
Net income as reported | $ | 746,244 | ||
Add - Interest on convertible loans payable | 78,750 | |||
Net income as adjusted | $ | 824,994 |
Property_and_Equipment_Disclos1
Property and Equipment Disclosure: Schedule of Property and Equipment (Tables) | 12 Months Ended | ||||||
Apr. 30, 2014 | |||||||
Tables/Schedules | ' | ||||||
Schedule of Property and Equipment | ' | ||||||
2014 | 2013 | ||||||
Computer equipment | $ | 15,177 | $ | 15,177 | |||
Less: accumulated depreciation | -14,616 | -13,493 | |||||
Property and equipment, net | $ | 561 | $ | 1,684 |
Loans_Payable_Disclosure_Sched
Loans Payable Disclosure: Schedule of Derivative Liabilities at Fair Value (Tables) | 12 Months Ended | ||
Apr. 30, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Derivative Liabilities at Fair Value | ' | ||
. | 6-Mar-13 | ||
Exercise price | $0.03 | ||
Risk free interest rate | 0.07% | ||
Expected dividend yield | 0% | ||
Volatility | 186% | ||
Expected life of options | .01 years |
Stockholders_Deficit_Disclosur1
Stockholders' Deficit Disclosure: Schedule of Stock Options (Tables) | 12 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Stock Options | ' | |||||||
Options | Weighted Average | Weighted | ||||||
Exercise Price | Average | |||||||
Remaining | ||||||||
Contractual | ||||||||
Term (Years) | ||||||||
Outstanding April 30, 2012 | 13,300,000 | $ | 0.15 | 5.9 | ||||
Granted | - | - | - | |||||
Canceled | -2,000,000 | 0.15 | 3.4 | |||||
Outstanding April 30, 2013 | 11,300,000 | 0.15 | 5.3 | |||||
Granted | - | - | - | |||||
Canceled | -5,200,000 | 0.15 | 7.8 | |||||
Outstanding April 30, 2014 | 6,100,000 | $ | 0.15 | 1.6 |
Income_Taxes_Disclosure_Schedu
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended | ||||||
Apr. 30, 2014 | |||||||
Tables/Schedules | ' | ||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||
2014 | 2013 | ||||||
Income tax benefit attributable to: | |||||||
Net income (loss) | $ | -414,832 | $ | 253,723 | |||
Permanent differences | 190,378 | -497,857 | |||||
Valuation allowance | 224,454 | 244,134 | |||||
Net provision for income tax | $ | -- | $ | -- |
Income_Taxes_Disclosure_Schedu1
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | ||||||
Apr. 30, 2014 | |||||||
Tables/Schedules | ' | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||
2014 | 2013 | ||||||
Deferred tax asset attributable to: | |||||||
Net operating loss carryover | $ | 7,760,569 | $ | 7,536,115 | |||
Valuation allowance | -7,760,569 | -7,536,115 | |||||
Net deferred tax asset | $ | -- | $ | -- |
General_Organization_and_Busin1
General Organization and Business (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Net losses since inception | $21,959,853 | $20,700,759 |
Recovered_Sheet9
Summary of Significant Accounting Practices: Basic Income (loss) Per Common Share, Policy (Details) | 12 Months Ended |
Apr. 30, 2014 | |
Related to options outstanding | ' |
Common stock excluded, anti-dilutive | 6,100,000 |
Related to outstanding warrants | ' |
Common stock excluded, anti-dilutive | 10,000,000 |
Related to Convertible loans payable and accrued interest | ' |
Common stock excluded, anti-dilutive | 37,640,760 |
Recovered_Sheet10
Summary of Significant Accounting Practices: Basic Income (loss) Per Common Share, Policy: Schedule of Weighted Average Number of Shares (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Details | ' | ' |
Weighted average common shares outstanding used in calculating basic earnings per share | 108,911,170 | 105,028,582 |
Warrants | ' | 6,260,083 |
Effect of conversion features on loan payable and accrued interest | ' | 20,000,000 |
Weighted average common and common equivalent shares used in calculating diluted earnings per share | 108,911,170 | 131,288,665 |
Net income as reported | ' | $746,244 |
Add: Interest on convertible loans payable | ' | 78,750 |
Net income as adjusted | ' | $824,994 |
Recovered_Sheet11
Summary of Significant Accounting Practices: Product Warranty Costs Policy (Details) (USD $) | 12 Months Ended |
Apr. 30, 2014 | |
Details | ' |
Warranty reserve | $24,000 |
Property_and_Equipment_Disclos2
Property and Equipment Disclosure: Schedule of Property and Equipment (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
less: Accumulated depreciation | ($14,616) | ($13,493) |
Property and equipment, net (total) | 561 | 1,684 |
Computer Equipment | ' | ' |
Property, Plant and Equipment, Gross | $15,177 | $15,177 |
Property_and_Equipment_Disclos3
Property and Equipment Disclosure (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Details | ' | ' |
Depreciation expense for the years ended | $1,123 | $1,123 |
Loans_Payable_Disclosure_Detai
Loans Payable Disclosure (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 | Jul. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Mar. 06, 2013 | Feb. 13, 2012 | Aug. 11, 2008 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Mar. 06, 2013 | Mar. 06, 2009 |
$500,000 Convertible Note | $500,000 Convertible Note | $500,000 Convertible Note | $500,000 Convertible Note | $500,000 Convertible Note | $500,000 Convertible Note | Accrued interest on convertible note | Accrued interest on convertible note | $25,000 Loan Payable | $25,000 Loan Payable | $25,000 Loan Payable | $25,000 Loan Payable | |||
Loan payable | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | $25,000 |
Interest rate on loan payable | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | 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 expense | ' | ' | ' | 325,000 | 175,000 | ' | ' | ' | 229,787 | 123,732 | 5,147 | 912 | ' | ' |
Accrued interest | 525,000 | 194,853 | ' | 441,019 | 366,019 | ' | ' | ' | ' | ' | 19,382 | 15,632 | ' | ' |
Gain on change in fair value of derivative liability | ' | ' | ' | ' | $2,013,929 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Payable_Disclosure_Sched1
Loans Payable Disclosure: Schedule of Derivative Liabilities at Fair Value (Details) (USD $) | 10 Months Ended |
Mar. 06, 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 | '4 days |
Stockholders_Deficit_Disclosur2
Stockholders' Deficit Disclosure (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Stock-based compensation recorded | $30,114 | $116,968 |
RelatedToWarrantsOutstandingMember | ' | ' |
Warrants outstanding | 10,000,000 | ' |
March 13, 2013 Issuance | ' | ' |
Common stock issued for cash | ' | 1,250,000 |
Cash proceeds from issuance | ' | 187,500 |
March 20, 2013 Issuance | ' | ' |
Common stock issued for cash | ' | 333,000 |
Cash proceeds from issuance | ' | $50,000 |
Stockholders_Deficit_Disclosur3
Stockholders' Deficit Disclosure: Schedule of Stock Options (Details) (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Details | ' | ' | ' |
Options outstanding | 6,100,000 | 11,300,000 | 13,300,000 |
Weighted average exercise price, options outstanding | $0.15 | $0.15 | $0.15 |
Weighted average remaining contractual term, options outstanding (years) | 1.6 | 5.3 | 5.9 |
Options cancelled | 5,200,000 | 2,000,000 | ' |
Weighted average price, options cancelled | $0.15 | $0.15 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2012 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2012 | Oct. 15, 2012 | |
Consulting Contracts | Consulting Contracts | Former CEO | Former CEO | Former officer and current shareholder | Consultant, shareholder and officer | For accounts receivable and accounts payable | Entity controlled by a board of director | Entity controlled by a board of director | Zuhier A. Zahran | Zuhier A. Zahran | |
Related party compensation | $384,000 | $80,000 | ' | ' | ' | ' | ' | $100,927 | $248,060 | ' | ' |
Due to related parties | 170,289 | 141,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued salaries | ' | ' | 19,000 | 58,000 | ' | ' | ' | ' | ' | ' | ' |
Due to related party, other | ' | ' | ' | ' | 206,000 | ' | ' | ' | ' | ' | ' |
Payable due to related party | ' | ' | ' | ' | ' | 171,966 | 2,559 | ' | ' | ' | ' |
Gain on settlement agreement- | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,996 |
Receivable from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000 | ' |
Relief of liabilities and deposits, settlement agreement- | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $106,996 |
Commitment_Disclosure_Details
Commitment Disclosure (Details) (USD $) | Apr. 30, 2014 |
Details | ' |
Monthly rent payments | $500 |
Income_Taxes_Disclosure_Schedu2
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Details | ' | ' |
Income tax benefit attributable to Net income (loss) | ($414,832) | $253,723 |
Income tax benefits, permanent differences | 190,378 | -497,857 |
Valuation allowance for income taxes | 224,454 | 244,134 |
Net provision for income tax | ' | ' |
Income_Taxes_Disclosure_Schedu3
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Details | ' | ' |
Net operating loss carryover | $7,760,569 | $7,536,115 |
Valuation allowance, deferred tax assets | ($7,760,569) | ($7,536,115) |
Income_Taxes_Disclosure_Detail
Income Taxes Disclosure (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Details | ' | ' |
Increase in valuation allowance | $237,714 | $244,134 |
Net operating losses allocated to continuing operations | $22,864,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Apr. 30, 2013 | Aug. 15, 2014 | Aug. 15, 2014 | Aug. 15, 2014 | |
March202013issuedmemberMember | Promissory note | Note holders (Note 4) | Stock Issuance | |
Proceeds from notes | ' | $54,000 | $60,000 | ' |
Common stock issued for cash | ' | ' | ' | 1,500,000 |
Cash proceeds from issuance | $105,000 | ' | ' | ' |