Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Oct. 31, 2014 | |
Document and Entity Information | ||
Entity Registrant Name | BIOSHAFT WATER TECHNOLOGY, INC. | |
Document Type | 10-K | |
Document Period End Date | Apr. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 1,365,784 | |
Current Fiscal Year End Date | --04-30 | |
Entity Common Stock, Shares Outstanding | 117,611,170 | |
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 | 2,015 | |
Document Fiscal Period Focus | FY | |
Entity Public Float | $ 1,924,146 | |
Trading Symbol | bshf |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
Current assets: | ||
Cash | $ 20,975 | $ 37,338 |
Accounts receivable, net | 58,955 | 302,941 |
Other current assets | 957 | |
Deferred costs of goods sold | 711,489 | 233,352 |
Total Current Assets | 792,376 | 573,631 |
Property and equipment, net | 561 | |
Deposits | 1,000 | 1,000 |
Total Assets | 793,376 | 575,192 |
Current liabilities: | ||
Accounts payable and accrued expenses | 569,664 | 924,917 |
Accounts payable and accrued expenses - related party | 831,583 | 548,255 |
Deferred revenue | 370,419 | 326,887 |
Deferred revenue - related party | 497,713 | 100,927 |
Accrued interest, net | 65,230 | 460,401 |
Notes payable | 1,147,390 | |
Convertible loans payable | 525,000 | |
Related party notes payable | 69,800 | |
Total Current Liabilities | 3,551,799 | 2,886,387 |
Total Liabilities | $ 3,551,799 | $ 2,886,387 |
Stockholders' deficit: | ||
Preferred stock value | ||
Common stock value | $ 117,611 | $ 108,911 |
Additional paid-in capital | 20,285,598 | 19,539,747 |
Accumulated deficit | (23,161,632) | (21,959,853) |
Total Stockholders' Deficit | (2,758,423) | (2,311,195) |
Total Liabilities and Stockholders' Deficit | $ 793,376 | $ 575,192 |
BALANCE SHEET (PARENTHETICAL)
BALANCE SHEET (PARENTHETICAL) - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
Balance Sheets | ||
Allowance for doubtful accounts | $ 182,030 | $ 34,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 117,611,170 | 108,911,170 |
Common stock, shares outstanding | 117,611,170 | 108,911,170 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
REVENUES | ||
Net revenue from projects | $ 565,056 | $ 2,060,935 |
TOTAL REVENUES | 565,056 | 2,060,935 |
COST OF REVENUES | 468,848 | 1,764,413 |
GROSS PROFIT (LOSS) | 96,208 | 296,522 |
OPERATING EXPENSES | ||
Selling, general and administrative | 299,140 | 417,397 |
Advertising, marketing and promotions | 2,287 | 15,123 |
Consulting fees | 419,100 | 453,500 |
Depreciation expense | 561 | 1,123 |
Stock-based compensation | 30,114 | |
TOTAL OPERATING EXPENSES | 721,088 | 917,257 |
INCOME (LOSS) FROM OPERATIONS | (624,880) | (620,735) |
OTHER INCOME (EXPENSE) | ||
Interest income (expense), net | (102,757) | (78,425) |
Amortization of debt discount | (559,934) | |
Loss on extinguishment of debt | (474,142) | |
TOTAL OTHER INCOME (EXPENSE) | (576,899) | (638,359) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | $ (1,201,779) | $ (1,259,094) |
PROVISION FOR INCOME TAXES | ||
NET INCOME (LOSS) | $ (1,201,779) | $ (1,259,094) |
NET INCOME LOSS PER SHARE: BASIC AND DILUTED | $ (0.01) | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 115,108,704 | 108,911,170 |
STATEMENT OF STOCKHOLDERS' DEFI
STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity |
Beginning Balance, shares at Apr. 30, 2013 | 108,911,170 | |||
Beginning Balance, amount at Apr. 30, 2013 | $ 108,911 | $ 19,509,633 | $ (20,700,759) | $ (1,082,215) |
Stock-based compensation | 30,114 | 30,114 | ||
Net income (loss) for the period | (1,259,094) | (1,259,094) | ||
Ending Balance, shares at Apr. 30, 2014 | 108,911,170 | |||
Ending Balance, amount at Apr. 30, 2014 | $ 108,911 | 19,539,747 | (21,959,853) | (2,311,195) |
Stock and warrants in connection with debt extinguishment, shares | 5,000,000 | |||
Stock and warrants in connection with debt extinguishment, value | $ 5,000 | 494,551 | 499,551 | |
Stock issued for cash, shares | 3,700,000 | |||
Stock issued for cash, value | $ 3,700 | 251,300 | 255,000 | |
Net income (loss) for the period | (1,201,779) | (1,201,779) | ||
Ending Balance, shares at Apr. 30, 2015 | 117,611,170 | |||
Ending Balance, amount at Apr. 30, 2015 | $ 117,611 | $ 20,285,598 | $ (23,161,632) | $ (2,758,423) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
NET INCOME (LOSS) | $ (1,201,779) | $ (1,259,094) |
Adjustments To Reconcile Net Income (loss) To Net Cash Used In Operating Activities | ||
Loss on extinguishment | 474,142 | |
Depreciation expense | 561 | 1,123 |
Amortization of debt and accrued interest discount | 559,934 | |
Bad debt expense | 115,363 | 34,000 |
Stock-based compensation | 30,114 | |
Change in operating assets & liabilities | ||
Accounts receivable | 128,623 | (321,241) |
Deferred costs of goods sold | (478,137) | (233,352) |
Other assets | (957) | 2,248 |
Accounts payable and accrued expenses | (71,925) | 696,007 |
Deferred revenues | 440,318 | 133,017 |
Accrued interest | 92,628 | 78,750 |
Net Cash Provided by (Used in) Operating Activities | (501,163) | (278,494) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 160,000 | |
Proceeds from related party notes payable | 69,800 | |
Proceeds from issuance of stock | 255,000 | |
Net Cash Provided by Financing Activities | 484,800 | |
Net Increase (Decrease) in Cash | (16,363) | (278,494) |
Cash - beginning of the period | 37,338 | 315,832 |
Cash - end of the period | 20,975 | $ 37,338 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 9,295 | |
Cash paid for income taxes | 800 | |
NON-CASH TRANSACTIONS: | ||
Convertible notes payable, accrued interest, conversion feature and warrants exchanged for note payable | 1,047,390 | |
Stock and warrants in connection with debt extinguishment, value | $ 499,551 |
General Organization and Busine
General Organization and Business | 12 Months Ended |
Apr. 30, 2015 | |
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 $23,161,632 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 managements 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 Accounti
Summary of Significant Accounting Practices | 12 Months Ended |
Apr. 30, 2015 | |
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 entitys 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, 2015 and 2014, the fair value of short-term financial instruments including cash, prepaid expenses, 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 Companys 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 Companys 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, 2015, the Company excluded 6,100,000 common stock equivalents related to options outstanding as their effects would have been anti-dilutive. 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. 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 times obtaining prepayments on contracts. During the years ended April 30, 2015 and 2014, the provisions for uncollectible accounts receivable was $182,030 and $34,000, 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 BCFs 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, the percent complete and are responsible for the overall project administration, 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 cannot 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 accepted by 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. During the year ended April 30, 2015, the Company charged $47,620 to cost of revenues due to overruns on a project. The asset, deferred costs of goods sold, represents costs incurred on current projects which have not been allocated to the particular project or the contract has not been completed and typically relate to deposits paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, deferred revenue, represents billings in excess of revenues recognized or amounts in which the Company has received in connection with contracts being recognized under the completed contract method. Contract retentions are included in accounts receivable. As of April 30, 2015, $22,302 was included within deferred revenues in which related to contracts being accounted for under the percent completion method. 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 Companys 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. The following represents changes in the warranty reserve for the years ended April 30, 2015 and 2014: Year Ended April 30, April 30, 2015 2014 Beginning balance $ 24,000 $ - Additions 4,000 24,000 Amortization / uses - - Ending balance $ 28,000 $ 24,000 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 Companys 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 Companys 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, 2015 and 2014. New Accounting Pronouncements In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this new guidance on the Company's consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements - Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Management is still in the process of assessing the impact of ASU 2014-15 on the Companys consolidated financial statements. |
Property and Equipment Disclosu
Property and Equipment Disclosure | 12 Months Ended |
Apr. 30, 2015 | |
Notes | |
Property and Equipment Disclosure | NOTE 3. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at April 30: April 30, April 30, 2015 2014 Computer Equipment $ 15,177 $ 15,177 Less: accumulated depreciation (15,177) (14,616) Property and equipment, net $ -- $ 561 Depreciation expense was $561 and $1,123 for the years ended April 30, 2015 and 2014, respectively. |
Loans Payable Disclosure
Loans Payable Disclosure | 12 Months Ended |
Apr. 30, 2015 | |
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 Companys 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 Companys 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 Companys 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 during the year ended April 30, 2013. 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. During the year ended April 30, 2014, the Company recognized amortization expense of $325,000 using the straight line method in connection with the amortization of the convertible loan discount. As of April 30, 2014, the discount was fully amortized. In addition, with the agreement the accrued interest was 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. During the year ended April 30, 2014, the Company recognized amortization expense of $229,787 using the straight line method in connection with the amortization of the discount. As of April 30, 2014, the discount was fully amortized. Accrued interest related to this loan was $441,019 as of April 30, 2014. See discussion below for exchange of this note into a new note payable. $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 Companys 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. During the year ended April 30, 2014, the Company recognized amortization expense of $5,147 in connection with the amortization of the secured loan payable discount using the straight line method. As of April 30, 2014, the discount was fully amortized. Accrued interest related to this loan was $19,382 as of April 30, 2014. See discussion below for exchange of this note into a new note payable. $60,000 Loan Payable In May 2014, the Company received $60,000 in proceeds used for working capital purposes from the $500,000 and $25,000 note holders discussed above. On August 21, 2014, the loan payable and accrued interest was sold by the holder and the terms were amended, see below for additional disclosure. $1,047,390 Note Payable On August 21, 2014, the Company was notified that the $60,000 advance, $500,000 convertible note payable and $25,000 secured note payable and accrued interest of $487,799 on such was sold by the holder to a related entity of the holder. On August 21, 2014, the Company entered into a note agreement for $1,047,390. Under the terms of the agreement, the note incurs interest at 7.5% per annum, the holder received 5,000,000 bonus shares of common stock and is due July 7, 2015. In addition, if the Company does not raise $5.0 million in equity capital by July 7, 2015, the holder will receive 30,000,000 warrants to purchase shares of the Company's common stock at $0.025 per share. In connection with the new agreement, the $500,000 convertible note and accrued interest on such is no longer convertible into common stock and warrants to purchase 10,000,000 shares of common stock held by the current holder, which were received in connection with a previous transaction, were cancelled. The Company accounted for the transaction as an extinguishment due to the significant change in the future expected cash flows, which was in excess of 10%, due to the change in interest rate, removal of the conversion feature, cancelation of warrants and issuance of 5,000,000 shares of common stock. The total loss recorded in connection with this extinguishment was $474,142. In determining the loss on extinguishment the Company determined the fair market value of the beneficial conversion feature, warrants and shares of common stock on August 21, 2014. Although, the issuance of the 30,000,000 million warrants are contingent upon a future event, the value was taken into consideration in the loss calculation as the holder does not have a performance commitment to receive such shares and the Company viewed the raising of capital as a market condition to receiving such. As of April 30, 2015, accrued interest on the note payable was approximately $61,000. $100,000 Note Payable On December 24, 2014, the Company secured a $100,000 note payable, accruing interest at 7.5% per annum being due December 24, 2015. The proceeds were used for operating purposes. The loan payable is with the same party as the $1,047,390 note payable disclosed above. |
Stockholders' Deficit Disclosur
Stockholders' Deficit Disclosure | 12 Months Ended |
Apr. 30, 2015 | |
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 In July 2014, the Company sold 1,500,000 shares of common stock at $0.07 per share resulting in proceeds of $105,000. In August 2014, the Company sold 2,200,000 shares of common stock to a member of the board of directors at $0.68 per share resulting in proceeds of $150,000. 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, 2015 and 2014 and changes during the corresponding year are presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) 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 Granted - - - Canceled - - - Outstanding April 30, 2015 6,100,000 $ 0.15 0.6 During the years ended April 30, 2015 and 2014, the Company recorded $0 and $30,114 in stock-based compensation, respectively, which includes the amortization of prepaid amounts. All stock based compensation has been amortized as of April 30, 2015 and 2014. Warrants As of April 30, 2014, the Company had 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, expiring in February 2017. See Note 4 above for discussion related to the cancellation of these warrants. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2015 | |
Notes | |
Related Party Transactions | NOTE 6. RELATED PARTY TRANSACTIONS Consulting Contracts As of April 30, 2015, 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, 2015 and 2014 was $453,617 and $170,289, respectively. The amounts are included in accounts payable and accrued expenses - related party on the accompanying balance sheets. As of April 30, 2014, the Company's Chief Executive Officer, who resigned in February 2014, had accrued salaries of $19,000. The amount was subsequently paid. As of April 30, 2015 and 2014, 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 - related party on the accompanying balance sheets. There were no payments made on this obligation during the years ended April 30, 2015 and 2014. As of April 30, 2015 and 2014, another consultant, shareholder and officer of the Company is due a net $171,966 which is included within accounts payable and accrued expenses - related party on the accompanying balance sheets. There were no payments made on this obligation during the years ended April 30, 2015 and 2014. Revenues From time to time, the Company enters into contracts with an entity controlled by a board member to provide waste water plants. These contracts are typically for waste water plants located in the middle east in which the board member's company has operations. Under these contracts, the Company supplies completed waste water treatment units and the customer performs the installation. During the year ended April 30, 2015, the Company recorded $336,425 in revenues under these contracts. As of April 30, 2015, the Company capitalized costs of $478,814 related to these contracts in which expenditures had been made but the equipment had not been delivered or accepted by the end customer. As of April 30, 2015 and 2014, the Company has recorded within deferred revenues - related party $497,713 and $100,927, respectively. These amount represents amounts in which have been received from the related party but the revenue has not been recognized as the equipment has not been delivered or accepted. As of April 30, 2015, the Company had $11,600 due from the related party recorded in accounts receivable. The Company typically records revenues and expenses in connection with these contracts using the completed contract method as their services primarily relate to the sale of equipment to the related party. The related party is typically responsible for the installation and management of the project. The Company recognizes revenues and costs when acceptance of the waste water plants are received. Promissory Note In July 2014, the Company entered into a promissory note for $65,000 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 this agreement, an additional $4,800 was provided to the Company, bringing the total due to the related party as of April 30, 2015 to $69,800. The additional proceeds have the same terms as the promissory note. The proceeds were used to fund operations. Sales of Common Stock See Note 5 for discussion regarding sales of common stock to a related party. |
Commitment and Contingencies Di
Commitment and Contingencies Disclosure | 12 Months Ended |
Apr. 30, 2015 | |
Notes | |
Commitment and Contingencies Disclosure | NOTE 7. COMMITMENT AND CONTINGENCIES Operating Leases The Company currently leases office space on a year to year basis. Monthly rent charged in connection with this lease is approximately $800. Contingency On January 30, 2015, Citadel Services, Inc. (Citadel) filed a law suit in the Supreme Court of the State of New York, County of Chautauqua, naming the Company and one of its customers as defendants . In the complaint filed by Citadel, they claimed that the Company has breached the sub-contract between them by failing to pay $57,580 for materials and labor already furnished in connection with one of the Company's projects. Citadel filed a mechanics lien on the project property for the same amount. In the complaint, Citadel requests judgment that Citadel is entitled to the outstanding amount and that the Company has breached the sub-contracts between them Citadel is also asking for costs and disbursements from the Company. As of April 30, 2015, the Company has $57,580 included within accounts payable and accrued liabilities on the accompanying balance sheet. In May 2015, in connection with this lawsuit, the customers response to the lawsuit indicated that the Company has damaged them due to breach of contract. The customer claims that these damages are approximately $515,000. The Company believes they have significant defenses to this response, intend to defend it vigorously, and believe that no loss is probable. Thus, no amounts have been included within the accompanying financial statements. |
Income Taxes Disclosure
Income Taxes Disclosure | 12 Months Ended |
Apr. 30, 2015 | |
Notes | |
Income Taxes Disclosure | NOTE 8. INCOME TAXES The provision for income tax consists of the following for the years ended April 30: Income Taxes 2015 2014 Income tax benefit attributable to: Net income (loss) $ (408,605) $ (428,092) Permanent differences 161,208 190,378 Valuation allowance 247,397 237,714 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: 2015 2014 Deferred tax asset attributable to: Net operating loss carryover $ 8,021,226 $ 7,773,829 Valuation allowance (8,021,226) (7,773,829) Net deferred tax asset $ -- $ -- During the years ended April 30, 2015 and 2014, the valuation allowance increased by $247,397 and $237,714, respectively. At April 30, 2015, the Company had approximately $8,021,226 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 Companys 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, 2015 and 2014, 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 may have 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 2011 through 2015 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 2011 through 2015 and currently does not have any ongoing tax examinations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2015 | |
Notes | |
Subsequent Events | NOTE 9 - SUBSEQUENT EVENTS In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to April 30, 2015 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 Accoun16
Summary of Significant Accounting Practices: Basis of Presentation (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Accoun17
Summary of Significant Accounting Practices: Use of Estimates (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Accoun18
Summary of Significant Accounting Practices: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 entitys 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, 2015 and 2014, the fair value of short-term financial instruments including cash, prepaid expenses, 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 Accoun19
Summary of Significant Accounting Practices: Concentration of Credit Risk (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Accoun20
Summary of Significant Accounting Practices: Basic Income (Loss) Per Common Share Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
Policies | |
Basic Income (Loss) Per Common Share Policy | Basic Income (Loss) per Common Share Basic income (loss) per share is calculated by dividing the Companys 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 Companys 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, 2015, the Company excluded 6,100,000 common stock equivalents related to options outstanding as their effects would have been anti-dilutive. 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. |
Summary of Significant Accoun21
Summary of Significant Accounting Practices: Cash and Cash Equivalents Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Accoun22
Summary of Significant Accounting Practices: Accounts Receivable Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 times obtaining prepayments on contracts. During the years ended April 30, 2015 and 2014, the provisions for uncollectible accounts receivable was $182,030 and $34,000, respectively. |
Summary of Significant Accoun23
Summary of Significant Accounting Practices: Property and Equipment Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Accoun24
Summary of Significant Accounting Practices: Convertible Debt Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 BCFs 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. |
Summary of Significant Accoun25
Summary of Significant Accounting Practices: Revenue Recognition Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
Policies | |
Revenue Recognition Policy | Revenue Recognition For contracts in which the Company can reasonably estimate the costs, the percent complete and are responsible for the overall project administration, 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 cannot 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 accepted by 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. During the year ended April 30, 2015, the Company charged $47,620 to cost of revenues due to overruns on a project. The asset, deferred costs of goods sold, represents costs incurred on current projects which have not been allocated to the particular project or the contract has not been completed and typically relate to deposits paid or incurred to third party vendors in which the services and or equipment has not been provided. The liability, deferred revenue, represents billings in excess of revenues recognized or amounts in which the Company has received in connection with contracts being recognized under the completed contract method. Contract retentions are included in accounts receivable. As of April 30, 2015, $22,302 was included within deferred revenues in which related to contracts being accounted for under the percent completion method. |
Summary of Significant Accoun26
Summary of Significant Accounting Practices: Stock-based Compensation Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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. |
Summary of Significant Accoun27
Summary of Significant Accounting Practices: Derivative Financial Instruments Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Companys 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. |
Summary of Significant Accoun28
Summary of Significant Accounting Practices: Product Warranty Costs Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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. The following represents changes in the warranty reserve for the years ended April 30, 2015 and 2014: Year Ended April 30, April 30, 2015 2014 Beginning balance $ 24,000 $ - Additions 4,000 24,000 Amortization / uses - - Ending balance $ 28,000 $ 24,000 |
Summary of Significant Accoun29
Summary of Significant Accounting Practices: Income Taxes Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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 Companys 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 Companys 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. |
Summary of Significant Accoun30
Summary of Significant Accounting Practices: Impairment of Long-lived Assets Policy (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
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, 2015 and 2014. |
Summary of Significant Accoun31
Summary of Significant Accounting Practices: New Accounting Pronouncements (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
Policies | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this new guidance on the Company's consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements - Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Management is still in the process of assessing the impact of ASU 2014-15 on the Companys consolidated financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Practices: Product Warranty Costs Policy: Schedule of Product Warranty Reserve (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Tables/Schedules | |
Schedule of Product Warranty Reserve | Year Ended April 30, April 30, 2015 2014 Beginning balance $ 24,000 $ - Additions 4,000 24,000 Amortization / uses - - Ending balance $ 28,000 $ 24,000 |
Property and Equipment Disclo33
Property and Equipment Disclosure: Schedule of Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Tables/Schedules | |
Schedule of Property and Equipment | April 30, April 30, 2015 2014 Computer Equipment $ 15,177 $ 15,177 Less: accumulated depreciation (15,177) (14,616) Property and equipment, net $ -- $ 561 |
Stockholders' Deficit Disclos34
Stockholders' Deficit Disclosure: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) 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 Granted - - - Canceled - - - Outstanding April 30, 2015 6,100,000 $ 0.15 0.6 |
Income Taxes Disclosure_ Schedu
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | 2015 2014 Income tax benefit attributable to: Net income (loss) $ (408,605) $ (428,092) Permanent differences 161,208 190,378 Valuation allowance 247,397 237,714 Net provision for income tax $ -- $ -- |
Income Taxes Disclosure_ Sche36
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2015 2014 Deferred tax asset attributable to: Net operating loss carryover $ 8,021,226 $ 7,773,829 Valuation allowance (8,021,226) (7,773,829) Net deferred tax asset $ -- $ -- |
General Organization and Busi37
General Organization and Business (Details) - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
Details | ||
Net losses since inception | $ 23,161,632 | $ 21,959,853 |
Summary of Significant Accoun38
Summary of Significant Accounting Practices: Basic Income (Loss) Per Common Share Policy (Details) | 12 Months Ended |
Apr. 30, 2015shares | |
Related to options outstanding | |
Common stock excluded, anti-dilutive | 10,000,000 |
Related to convertible notes payable and accrued interest | |
Common stock excluded, anti-dilutive | 37,640,760 |
Summary of Significant Accoun39
Summary of Significant Accounting Practices: Accounts Receivable Policy (Details) - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
Details | ||
Provisions for uncollectible accounts receivable | $ 182,030 | $ 34,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Practices: Revenue Recognition Policy (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Cost of revenues charged | $ 468,848 | $ 1,764,413 |
Deferred revenue | 370,419 | $ 326,887 |
Overruns on a project | ||
Cost of revenues charged | 47,620 | |
Deferred revenue | $ 22,302 |
Summary of Significant Accoun41
Summary of Significant Accounting Practices: Product Warranty Costs Policy: Schedule of Product Warranty Reserve (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Details | ||
Warranty reserve, additions | $ 4,000 | $ 24,000 |
Warranty reserve balance | $ 28,000 | $ 24,000 |
Property and Equipment Disclo42
Property and Equipment Disclosure: Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
less: Accumulated depreciation | $ (15,177) | $ (14,616) |
Property and equipment, net (total) | 561 | |
Computer Equipment | ||
Property, Plant and Equipment, Gross | $ 15,177 | $ 15,177 |
Property and Equipment Disclo43
Property and Equipment Disclosure (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Details | ||
Depreciation expense | $ 561 | $ 1,123 |
Loans Payable Disclosure (Detai
Loans Payable Disclosure (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Aug. 21, 2014 | Oct. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Dec. 24, 2014 | May. 31, 2014 | Mar. 06, 2013 | Feb. 13, 2012 | Mar. 06, 2009 | Aug. 11, 2008 | |
Accrued interest | $ 65,230 | $ 460,401 | ||||||||
Loss on extinguishment | 474,142 | |||||||||
$500,000 Convertible Note | ||||||||||
Loan payable | $ 500,000 | |||||||||
Interest rate on loan payable | 3.00% | |||||||||
Convertible feature, shares | 20,000,000 | |||||||||
Convertible feature, price per share | $ 0.025 | |||||||||
Shares issued for extension of note | 2,811,873 | |||||||||
Shares issued for extension of note (value) | $ 168,712 | |||||||||
Discount allocated to common shares | $ 126,147 | |||||||||
Beneficial conversion feature value | $ 331,288 | |||||||||
Amortization of discount | 325,000 | |||||||||
Accrued interest | 441,019 | |||||||||
Accrued interest on $500,000 convertible note | ||||||||||
Beneficial conversion feature value | 353,519 | |||||||||
Amortization of discount | $ 229,787 | |||||||||
$25,000 Loan Payable | ||||||||||
Loan payable | $ 25,000 | |||||||||
Interest rate on loan payable | 7.50% | 15.00% | ||||||||
Shares issued for extension of note | 133,297 | |||||||||
Shares issued for extension of note (value) | $ 7,998 | |||||||||
Discount allocated to common shares | $ 6,059 | |||||||||
Amortization of discount | 5,147 | |||||||||
Accrued interest | $ 19,382 | |||||||||
$60,000 Loan Payable | ||||||||||
Loan payable | $ 60,000 | |||||||||
$1,047,390 Note Payable | ||||||||||
Loan payable | $ 1,047,390 | |||||||||
Interest rate on loan payable | 7.50% | |||||||||
Accrued interest | $ 61,000 | |||||||||
Transfer of Debt | On August 21, 2014, the Company was notified that the $60,000 advance, $500,000 convertible note payable and $25,000 secured note payable and accrued interest of $487,799 on such was sold by the holder to a related entity of the holder. | |||||||||
Shares of common stock issued for debt | 5,000,000 | |||||||||
Loss on extinguishment | $ 474,142 | |||||||||
$100,000 Note Payable | ||||||||||
Loan payable | $ 100,000 |
Stockholders' Deficit Disclos45
Stockholders' Deficit Disclosure (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Common stock authorized to be issued | 300,000,000 | 300,000,000 |
Common par value | $ 0.001 | $ 0.001 |
Preferred stock authorized to be issued | 25,000,000 | 25,000,000 |
Preferred par value | $ 0.001 | $ 0.001 |
Stock-based compensation | $ 30,114 | |
Warrants outstanding | $ 10,000,000 | |
Issued for cash - July 2014 | ||
Common stock issued | 1,500,000 | |
Price per share sold | $ 0.07 | |
Proceeds from issuance of common stock | $ 105,000 | |
Issued for cash - August 2014 | ||
Common stock issued | 2,200,000 | |
Price per share sold | $ 0.68 | |
Proceeds from issuance of common stock | $ 150,000 |
Stockholders' Deficit Disclos46
Stockholders' Deficit Disclosure: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2013 | |
Details | |||
Options outstanding | 6,100,000 | 6,100,000 | 11,300,000 |
Weighted average exercise price, options outstanding | $ 0.15 | $ 0.15 | $ 0.15 |
Options cancelled | 5,200,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Deferred revenue - related party | $ 497,713 | $ 100,927 |
Loan payable related party | 69,800 | |
Consulting Contracts | ||
Related party compensation | 384,000 | |
Due to related parties | 453,617 | 170,289 |
Chief Executive Officer, accrued salary | ||
Due to related parties | 19,000 | |
Former officer and current shareholder | ||
Due to related party, other | 206,000 | |
Consultant, shareholder and officer | ||
Payable due to related party | 171,966 | |
Entity controlled by a board of director | ||
Related party compensation | 336,425 | |
Deferred revenue - related party | 497,713 | $ 100,927 |
Accounts receivable recorded | 11,600 | |
Entity controlled by a significant shareholder and a member of the board of directors | ||
Loan payable related party | $ 69,800 |
Commitment and Contingencies 48
Commitment and Contingencies Disclosure (Details) | Apr. 30, 2015USD ($) |
Details | |
Monthly rent payments | $ 800 |
Accounts payable and accrued liabilities due to lawsuit | $ 57,580 |
Income Taxes Disclosure_ Sche49
Income Taxes Disclosure: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Details | ||
Income tax benefit attributable to net income (loss) | $ (408,605) | $ (428,092) |
Income tax benefits, permanent differences | 161,208 | 190,378 |
Valuation allowance for income taxes | $ 247,397 | $ 237,714 |
Net provision for income tax |
Income Taxes Disclosure_ Sche50
Income Taxes Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Apr. 30, 2015 | Apr. 30, 2014 |
Details | ||
Net operating loss carryover | $ 8,021,226 | $ 7,773,829 |
Valuation allowance, deferred tax assets | $ (8,021,226) | $ (7,773,829) |
Income Taxes Disclosure (Detail
Income Taxes Disclosure (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Details | ||
Increase in valuation allowance | $ 247,397 | $ 237,714 |
Net operating losses allocated to continuing operations | $ 8,021,226 |