Document and Entity Information
Document and Entity Information | 9 Months Ended |
Jan. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | BIOSHAFT WATER TECHNOLOGY, INC. |
Document Type | 10-Q |
Document Period End Date | Jan. 31, 2017 |
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 | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | bshf |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Current assets: | ||
Cash | $ 1,754 | $ 22,409 |
Other current assets | 199 | 985 |
Deferred costs of goods sold | 1,036,925 | 665,832 |
Total Current Assets | 1,038,878 | 689,226 |
Deposits | 1,000 | 1,000 |
Total Assets | 1,039,878 | 690,226 |
Current liabilities: | ||
Accounts payable and accrued expenses | 660,487 | 593,573 |
Accounts payable and accrued expenses - related party | 1,339,219 | 1,152,119 |
Deferred revenue | 354,686 | 354,686 |
Deferred revenue - related party | 887,978 | 436,880 |
Accrued interest, net | 292,844 | 159,051 |
Notes payable | 1,267,390 | 1,267,390 |
Related party notes payable | 59,710 | 66,450 |
Total Current Liabilities | 4,862,314 | 4,030,149 |
Total Liabilities | 4,862,314 | 4,030,149 |
Stockholders' deficit: | ||
Preferred stock value | ||
Common stock value | 117,611 | 117,611 |
Additional paid-in capital | 20,285,598 | 20,285,598 |
Accumulated deficit | (24,225,645) | (23,743,132) |
Total Stockholders' Deficit | (3,822,436) | (3,339,923) |
Total Liabilities and Stockholders' Deficit | $ 1,039,878 | $ 690,226 |
BALANCE SHEET (PARENTHETICAL)
BALANCE SHEET (PARENTHETICAL) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Balance Sheets | ||
Allowance for doubtful accounts | $ 182,030 | |
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 | 117,611,170 |
Common stock, shares outstanding | 117,611,170 | 117,611,170 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
REVENUES | ||||
Net revenue from projects | $ 7,000 | $ 647,416 | ||
Net revenue from projects - related party | $ 336,490 | 336,490 | ||
TOTAL REVENUES | 336,490 | 343,490 | 647,416 | |
COST OF REVENUES | 283,034 | $ 170 | 283,034 | 494,753 |
GROSS PROFIT (LOSS) | 53,456 | (170) | 60,456 | 152,663 |
OPERATING EXPENSES | ||||
Selling, general and administrative | 27,750 | 29,053 | 104,103 | 119,225 |
Advertising, marketing and promotions | 252 | 1,176 | 3,494 | 1,694 |
Consulting fees | 102,011 | 120,900 | 298,811 | 350,200 |
TOTAL OPERATING EXPENSES | 128,013 | 151,129 | 406,408 | 471,119 |
INCOME (LOSS) FROM OPERATIONS | (74,557) | (151,299) | (345,952) | (318,456) |
OTHER INCOME (EXPENSE) | ||||
Interest income (expense), net | (49,567) | (25,310) | (136,561) | (78,658) |
TOTAL OTHER INCOME (EXPENSE) | (49,567) | (25,310) | (136,561) | (78,658) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (124,124) | (176,609) | (482,513) | (397,114) |
PROVISION FOR INCOME TAXES | ||||
NET INCOME (LOSS) | $ (124,124) | $ (176,609) | $ (482,513) | $ (397,114) |
NET INCOME LOSS PER SHARE: BASIC AND DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 117,611,170 | 117,611,170 | 117,611,170 | 117,611,170 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
NET INCOME (LOSS) | $ (482,513) | $ (397,114) |
Adjustments To Reconcile Net Income (loss) To Net Cash Used In Operating Activities | ||
Bad debt expense | 11,600 | |
Change in operating assets & liabilities | ||
Accounts receivable | (13,856) | |
Deferred costs of goods sold | (371,093) | 416,852 |
Prepaids and other assets | 786 | 82 |
Accounts payable and accrued expenses | 254,014 | 149,734 |
Accrued interest | 133,793 | 70,727 |
Deferred revenues | 451,098 | (389,591) |
Net Cash Provided by (Used in) Operating Activities | (13,915) | (151,566) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 120,000 | |
Proceeds from related party notes payable | 44,949 | 11,000 |
Repayments on related party notes payable | 51,689 | |
Net Cash Provided by Financing Activities | (6,740) | 131,000 |
Net Increase (Decrease) in Cash | (20,655) | (20,566) |
Cash - beginning of the period | 22,409 | 20,975 |
Cash - end of the period | 1,754 | 409 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 4,204 | $ 6,960 |
Cash paid for income taxes | $ 822 |
General Organization and Busine
General Organization and Business | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
General Organization and Business | NOTE 1 - GENERAL ORGANIZATION AND BUSINESS Bioshaft Water Technology, Inc. (the Company) was originally incorporated under the laws of the state of Nevada on March 8, 2006. The Company owns worldwide patented technology and is in the business of designing, manufacturing and installing wastewater (sewage) treatment plants using its technology. The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern. The Company has used cash flows from operations and incurred net losses of approximately $24,225,645 million since inception. The Company currently has limited liquidity, and does not yet have sufficient revenues 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 through notes payable or sales of common stock 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 | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
Summary of Significant Accounting Practices | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES Basis of Presentation The accounting policies of the Company are in accordance with the accounting principles generally accepted in the United States of America and are presented in United States dollars (USD). Outlined below are those policies considered particularly significant. The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of January 31, 2017, and the results of its operations and cash flows for the three and nine months ended January 31, 2017. Certain information and footnote disclosures normally included in the financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission. The Company believes that the disclosures in the unaudited financial statements are adequate to make the information presented not misleading. The operating results of the Company on a quarterly basis may not be indicative of operation results for the full year. For further information, refer to the financial statements and notes included in the Company's Form 10-K for the year ended April 30, 2016. 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 January 31, 2017 and April 30, 2016, 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. 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 three and nine months ended January 31, 2017, the Company excluded 1,000,000 common stock equivalents related to options outstanding and 30,000,000 common stock equivalents related to warrants outstanding as their effects would have been anti-dilutive. During the three and nine months ended January 31, 2016, the Company excluded 2,100,000 common stock equivalents related to options outstanding and 30,000,000 common stock equivalents related to warrants outstanding as their effects would have been anti-dilutive. 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. 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. As of January 31, 2017 and April 30, 2016, the Company capitalized costs of $1,036,925 and $665,832 related to contracts in which expenditures had been made but the equipment had not been delivered or accepted by the end customer, respectively. As of January 31, 2017 and April 30, 2016, $0 and $0 was included within deferred revenues in which related to contracts being accounted for under the percent completion method, respectively. New Accounting Pronouncements In May 2014, and later amended in August 2015, the FASB issued new Accounting Standards Update (ASU) regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance and, and is effective for public entities for annual and interim periods beginning after December 31, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of this new guidance on the Companys financial statements. In August 2014, the FASB issued ASU 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 entitys 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. The guidance is not expected to have a material impact on the Companys financial statements. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The guidance did not have a material impact on the Companys financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance is not expected to have a material impact on the Companys financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 840), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for a public entity. Early adoption of the amendments in this standard is permitted for all entities and the Company must recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the effect this guidance will have on its financial statements and related disclosures. |
Loans Payable Disclosure
Loans Payable Disclosure | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
Loans Payable Disclosure | NOTE 3 - LOANS PAYABLE $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 October 7, 2015. In addition, if the Company does not raise $5.0 million in equity capital by October 7, 2015, which was not the case, 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 was contingent upon a future event, the value was taken into consideration in the loss calculation as the holder didn't have a performance commitment to receive such shares and the Company viewed the raising of capital as a market condition to receiving such. This note as well as the others held by the holder were combined into a single note as disclosed below. $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. This note as well as the others held by the holder were combined into a single note as disclosed below. $50,000 Note Payable On June 9, 2015, the Company secured a $50,000 note payable, accruing interest at 7.5% per annum being due June 9, 2016. The proceeds were used for operating purposes. The loan payable is with the same party as the $1,047,390 note payable disclosed above. This note as well as the others held by the holder were combined into a single note as disclosed below. $25,000 Notes Payables On September 22, 2015 and October 28, 2015, the Company secured two $25,000 notes payable with the same party as discussed above, accruing interest at 7.5% per annum being due September 22, 2016 and October 28, 2015, respectively. The $50,000 in total proceeds were used for operating purposes. This note as well as the others held by the holder were combined into a single note as disclosed below. $20,000 Notes Payable On December 16, 2015, the Company secured a $20,000 notes payable with the same party as discussed above, accruing interest at 7.5% per annum being due December 16, 2016. The proceeds were used for operating purposes. This note as well as the others held by the holder were combined into a single note as disclosed below. Combination of Notes Payable In January 2016, the holder of the notes disclosed above consolidated all the notes into one single note with a principal balance of $1,267,390. The note incurs interest at 7.5% per annum and is due on demand. The terms of the combined note weren't different than the stand alone notes and thus no additional accounting was required. Accrued Interest on Notes Payable As of January 31, 2017 and April 30, 2016, accrued interest on the note payable above was approximately $292,844 and $159,051, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
Related Party Transactions | NOTE 4 - RELATED PARTY TRANSACTIONS Consulting Contracts As of January 31, 2017, the Company has consulting contracts with three related parties for total annual compensation of $393,600. Total amounts due to these related parties, including reimbursable expenses, as of January 31, 2017 and April 30, 2016 were $961,251 and $774,153, respectively. The amounts are included in accounts payable and accrued expenses - related parties on the accompanying balance sheets. As of January 31, 2017 and April 30, 2016, 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 parties on the accompanying balance sheets. There were no payments made on this obligation during the three and nine months ended January 31, 2017. As of January 31, 2017 and April 30, 2016, another consultant, shareholder and officer of the Company is due a net $171,968 which is included within accounts payable and accrued expenses - related parties on the accompanying balance sheets. There were no payments made on this obligation during the three and nine months ended January 31, 2017. 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. As of January 31, 2017 and April 30, 2016, the Company has recorded within deferred revenues - related party of $887,978 and $436,880, respectively. These amounts represent 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 January 31, 2017 and April 30, 2016, the Company had $0 and $0, respectively, 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. Loans Payable 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 and at various times, additional monies have been provided to the Company, bringing the total due to the related party as of January 31, 2017 and April 30, 2016 to $59,710 and $66,450, respectively. The proceeds were used to fund operations. The promissory note is technically in default although no demands for repayment have been made. |
Commitments and Contingencies D
Commitments and Contingencies Disclosure | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
Commitments and Contingencies Disclosure | NOTE 5 - COMMITMENTS AND CONTINGENCIES 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 Companys 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 January 31, 2017 and April 30, 2016, the Company has $56,562 included within accounts payable and accrued liabilities on the accompanying balance sheet. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jan. 31, 2017 | |
Notes | |
Subsequent Events | NOTE 6 - SUBSEQUENT EVENTS In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to January 31, 2017 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. |
Summary of Significant Accoun12
Summary of Significant Accounting Practices: Basis of Presentation (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
Policies | |
Basis of Presentation | Basis of Presentation The accounting policies of the Company are in accordance with the accounting principles generally accepted in the United States of America and are presented in United States dollars (USD). Outlined below are those policies considered particularly significant. The accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position of the Company as of January 31, 2017, and the results of its operations and cash flows for the three and nine months ended January 31, 2017. Certain information and footnote disclosures normally included in the financial statements have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission. The Company believes that the disclosures in the unaudited financial statements are adequate to make the information presented not misleading. The operating results of the Company on a quarterly basis may not be indicative of operation results for the full year. For further information, refer to the financial statements and notes included in the Company's Form 10-K for the year ended April 30, 2016. |
Summary of Significant Accoun13
Summary of Significant Accounting Practices: Use of Estimates (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
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 Accoun14
Summary of Significant Accounting Practices: Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
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 January 31, 2017 and April 30, 2016, 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 Accoun15
Summary of Significant Accounting Practices: Basic Income (Loss) Per Common Share Policy (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
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 three and nine months ended January 31, 2017, the Company excluded 1,000,000 common stock equivalents related to options outstanding and 30,000,000 common stock equivalents related to warrants outstanding as their effects would have been anti-dilutive. During the three and nine months ended January 31, 2016, the Company excluded 2,100,000 common stock equivalents related to options outstanding and 30,000,000 common stock equivalents related to warrants outstanding as their effects would have been anti-dilutive. |
Summary of Significant Accoun16
Summary of Significant Accounting Practices: Revenue Recognition Policy (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
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. 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. As of January 31, 2017 and April 30, 2016, the Company capitalized costs of $1,036,925 and $665,832 related to contracts in which expenditures had been made but the equipment had not been delivered or accepted by the end customer, respectively. As of January 31, 2017 and April 30, 2016, $0 and $0 was included within deferred revenues in which related to contracts being accounted for under the percent completion method, respectively. |
Summary of Significant Accoun17
Summary of Significant Accounting Practices: New Accounting Pronouncements (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
Policies | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, and later amended in August 2015, the FASB issued new Accounting Standards Update (ASU) regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance and, and is effective for public entities for annual and interim periods beginning after December 31, 2017. Early adoption is permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of this new guidance on the Companys financial statements. In August 2014, the FASB issued ASU 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 entitys 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. The guidance is not expected to have a material impact on the Companys financial statements. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The guidance did not have a material impact on the Companys financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance is not expected to have a material impact on the Companys financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 840), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for a public entity. Early adoption of the amendments in this standard is permitted for all entities and the Company must recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the effect this guidance will have on its financial statements and related disclosures. |
General Organization and Busi18
General Organization and Business (Details) - USD ($) | Jan. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2016 |
Details | |||
Net losses since inception | $ 24,225,645 | $ 24,225,645 | $ 23,743,132 |
Summary of Significant Accoun19
Summary of Significant Accounting Practices: Basic Income (Loss) Per Common Share Policy (Details) - shares | 9 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Related to options outstanding | ||
Common stock excluded, anti-dilutive | 1,000,000 | 2,100,000 |
Related to warrants outstanding | ||
Common stock excluded, anti-dilutive | 30,000,000 | 30,000,000 |
Loans Payable Disclosure (Detai
Loans Payable Disclosure (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 21, 2014 | Apr. 30, 2015 | Jan. 31, 2017 | Apr. 30, 2016 | Dec. 16, 2015 | Sep. 22, 2015 | Jun. 09, 2015 | Dec. 24, 2014 | |
Accrued interest | $ 292,844 | $ 159,051 | ||||||
$1,047,390 Note Payable | ||||||||
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. | |||||||
Loan payable | $ 1,047,390 | |||||||
Interest rate on loan payable | 7.50% | |||||||
Shares of common stock issued for debt | 5,000,000 | |||||||
Gain (loss) on extinguishment | $ 474,142 | |||||||
$100,000 Note Payable | ||||||||
Loan payable | $ 100,000 | |||||||
$25,000 Loan Payable | ||||||||
Interest rate on loan payable | 7.50% | |||||||
$50,000 Note Payable | ||||||||
Loan payable | $ 50,000 | |||||||
Interest rate on loan payable | 7.50% | |||||||
$25,000 Notes Payable | ||||||||
Loan payable | $ 25,000 | |||||||
Interest rate on loan payable | 7.50% | |||||||
$20,000 Notes Payable | ||||||||
Loan payable | $ 20,000 | |||||||
Interest rate on loan payable | 7.50% | |||||||
Combination of Notes Payable | ||||||||
Loan payable | $ 1,267,390 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Deferred revenue - related party | $ 887,978 | $ 436,880 |
Loan payable related party | 59,710 | 66,450 |
Consulting Contracts | ||
Due to related parties | 961,251 | 774,153 |
Former officer and current shareholder | ||
Due to related party, other | 206,000 | |
Consultant, shareholder and officer | ||
Payable due to related party | 171,968 | |
Entity controlled by a board of director | ||
Deferred revenue - related party | 887,978 | 436,880 |
Entity controlled by a significant shareholder and a member of the board of directors | ||
Loan payable related party | $ 59,710 | $ 66,450 |
Commitments and Contingencies22
Commitments and Contingencies Disclosure (Details) | Jan. 31, 2017USD ($) |
Judgment Claim | |
Accounts payable and accrued liabilities | $ 56,562 |