Star Gold (SRGZ) 10-Q 21 Mar 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	Feb. 16, 2018	Jan. 31, 2018
Details
Registrant Name		STAR GOLD CORP.
Registrant CIK		1,401,835
SEC Form		10-Q
Period End date		Jan. 31, 2018
Fiscal Year End		--04-30
Trading Symbol		SRGZ
Tax Identification Number (TIN)		270,348,508
Number of common stock shares outstanding	76,434,424
Filer Category		Smaller Reporting Company
Current with reporting		Yes
Voluntary filer		No
Well-known Seasoned Issuer		No
Amendment Flag		false
Document Fiscal Year Focus		2,018
Document Fiscal Period Focus		Q3
Entity Incorporation, State Country Name		NEVADA
Entity Address, Address Line One		611 E. Sherman Avenue
Entity Address, City or Town		Coeur d'Alene
Entity Address, State or Province		Idaho
Entity Address, Postal Zip Code		83,814
Entity Listing, Par Value Per Share	$ 0.001

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jan. 31, 2018	Apr. 30, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 891,010	$ 109,380
TOTAL CURRENT ASSETS	911,968	124,817
OTHER ASSETS - NON-CURRENT (NOTE 4)	19,393	11,111
TOTAL ASSETS	1,362,835	518,402
CURRENT LIABILITIES:
Accounts payable	85,856	53,052
TOTAL CURRENT LIABILITIES	85,856	53,052
TOTAL LIABILITIES	85,856	53,052
STOCKHOLDERS' EQUITY
Additional paid-in capital	11,410,690	10,350,403
Accumulated deficit	(10,210,145)	(9,939,890)
TOTAL STOCKHOLDERS' DEFICIT	1,276,979	465,350
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 1,362,835	$ 518,402

BALANCE SHEETS - Parenthetical

BALANCE SHEETS - Parenthetical - $ / shares	Jan. 31, 2018	Apr. 30, 2017
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001
Common Stock, Shares Authorized	300,000,000
Common Stock, Shares, Issued	76,434,424	54,836,726

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
OPERATING EXPENSE
Mineral exploration expense	$ 22,819	$ 52,294	$ 102,959	$ 196,760
Legal and professional fees	11,667	17,566	65,107	67,077
Depreciation	25,954	27,301	0	4,051
Management and administrative	0	1,350	102,030	263,380
TOTAL OPERATING EXPENSE	60,440	98,511	270,096	531,268
LOSS FROM OPERATIONS	(60,440)	(98,511)	(270,096)	(531,268)
Interest expense	(187)	(80)	(562)	(388)
Interest expense, related party	0	0	0	(2,093)
Interest income	290	0	403	26
TOTAL OTHER EXPENSE	103	(80)	(159)	(2,455)
NET LOSS	$ (60,337)	$ (98,591)	$ (270,255)	$ (533,723)
NET LOSS PER SHARE - BASIC AND DILUTED	$ 0	$ 0	$ 0	$ (0.01)
OUTSTANDING - BASIC AND DILUTED	76,434,424	54,836,726	62,035,959	46,467,161

STATEMENTS OF CASH FLOWS (UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Details
Net loss	$ (207,255)	$ (533,723)
Changes in operating assets and liabilities
Stock based compensation	0	126,777
Depreciation	0	4,051
Other current assets	(5,521)	(17,168)
Other assets	(8,282)	0
Accounts payable	32,804	17,345
Other accrued liabilities	0	(3,381)
Net cash used in operating activities	(251,254)	(406,099)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for mining interests	(47,000)	(37,000)
Net cash used in investing activities	(47,000)	(37,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable, related party	0	70,000
Repayment of notes payable, related party	0	(85,000)
Proceeds from sale of common stock and warrants	1,079,884	682,000
Net cash provided by financing activities	1,079,884	32,163
NET INCREASE (DECREASE) IN CASH	781,630	223,901
CASH AT BEGINNING OF YEAR	109,380	1,785
CASH AT END OF YEAR	891,010	225,686
Interest paid in cash	$ 562	$ 28,286
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Options issued for mining interests	2,000	1,875
Stock issued on subscriptions	-	18,000

NOTE 1 - NATURE OF OPERATIONS

NOTE 1 - NATURE OF OPERATIONS	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 1 - NATURE OF OPERATIONS	NOTE 1 - NATURE OF OPERATIONS Star Gold Corp. (the “Company”) was initially incorporated as Elan Development, Inc., in the State of Nevada on December 8, 2006. The Company was originally organized to explore mineral properties in British Columbia, Canada but the Company is currently focusing on gold, silver and other base metal-bearing properties in Nevada. The Company’s core business consists of assembling and/or acquiring land packages and mining claims the Company believes have potential mining reserves, and expending capital to explore these claims by drilling, and performing geophysical work or other exploration work deemed necessary. The business is a high-risk business as there is no guarantee that the Company’s exploration work will ultimately discover or produce any economically viable minerals.

NOTE 2 - SIGNIFICANT ACCOUNTING

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the six-month period ended January 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2018. All amounts presented are in U.S. dollars. For further information, refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2017. Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of January 31, 2018, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $10,210,145 and, at January 31, 2018, the Company’s working capital was $826,112. Achievement of the Company’s objectives will be dependent upon the ability to obtain additional financing, to locate profitable mining properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors and/or lenders, and attaining commercial production. With the recent capital raise (Note 8), management believes the Company has adequate funds to operate over the next twelve months. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to long-lived asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. Restricted cash Restricted cash constitutes cash held as collateral for the faithful performance of bonds securing exploration permits. Financial Instruments periods within those fiscal years, with early adoption permitted. The Company does not expect this update to have a material impact on the consolidation financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after the effective date. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

NOTE 3- EQUIPMENT AND MINING IN

NOTE 3- EQUIPMENT AND MINING INTEREST	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 3- EQUIPMENT AND MINING INTEREST	NOTE 3– EQUIPMENT AND MINING INTEREST The following is a summary of the Company’s equipment and mining interest at January 31, 2018 and April 30, 2017. January 31, 2018 April 30, 2017 Equipment $ 27,007 $ 27,007 Less accumulated depreciation (27,007) (27,007) Equipment, net of accumulated depreciation - - Mining interest – Longstreet 409,874 360,874 TOTAL EQUIPMENT AND MINING INTEREST $ 409,874 $ 360,874 Pursuant to the Longstreet Property Option Agreement (the “Longstreet Agreement”) entered into by the Company on or about January 15, 2010, the Company leases, with an option to acquire, unpatented mining claims located in the State of Nevada known as the Longstreet Property. On December 10, 2014, the Longstreet Agreement was amended revising the required expenditures and annual stock option obligation. On January 5, 2016, the Longstreet Agreement was further amended revising the required expenditures and annual stock option obligation. All allowable expenditures in excess of the required annual expenditures shall be carried-over to the subsequent year. The Company is also obligated, pursuant to the Longstreet Agreement, as amended, to pay an annual advance royalty payment of $12,000 related to the Clifford claims. For the year ended April 30, 2017, the Company paid the annual $12,000 advance royalty for additional mining interest on the Longstreet Property related to the Clifford claims. The Company also made an annual required payment to the optioner of $25,000 which is included in “Equipment and Mining Interest”. The Company also issued options to purchase 25,000 shares of common stock with fair value of $1,875. For the nine months ended January 31, 2018, the Company paid the annual $12,000 advance royalty for additional mining interest on the Longstreet property related to the Clifford claims. The Company also made an annual required payment to the optioner of $35,000 which is included in “Equipment and Mining Interest”. Additionally, the Company issued options to purchase 40,000 shares of common stock with fair value of $2,000. The schedule of annual payments, minimum expenditures and number of stock options to be issued pursuant to the amended Longstreet Agreement of January 5, 2016, is as follows: Required annual expenditure between: Required Expenditure Cash payment (1) Stock options January 17, 2018 through January 16, 2019 $ 500,000 $ 40,000 45,000 January 17, 2019 through January 16, 2020 700,000 45,000 50,000 Payment due upon transfer but no later than January 16, 2021 - 85,000 - TOTAL $ 1,200,000 $ 170,000 95,000 (1) As of the measurement date of January 16, 2018, the Company had made cumulative allowable expenditures of $2,433,991, a surplus of $83,991 over the required cumulative expenditures of $2,350,000. As of January 31, 2018, the Company was in compliance with all provisions of the Longstreet Agreement.

NOTE 4 -OTHER ASSETS

NOTE 4 -OTHER ASSETS	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 4 -OTHER ASSETS	NOTE 4 –OTHER ASSETS On January 19, 2017, the Company entered into an Option and Lease of Water Rights with Stone Cabin Company, LLC (the “Stone Cabin Water Rights Agreement”). In exchange for a one-time payment of $20,000, the Water Rights Agreement granted the Company a three-year option to commence a ten-year lease of certain water rights in Nevada. The water rights are for use in conjunction with the Company’s Longstreet Project. Lease payments for the water rights do not commence unless the Company exercises the option to lease. The Stone Cabin Water Rights Agreement also granted the Company the ability to extend, upon additional option payments, the option to lease for up to an additional three years and the ability to extend the water rights lease (if exercised) for an additional ten-year period. The $20,000 payment has been deferred and is being amortized on a straight-line basis over the three-year option period. On August 21, 2017, the Company entered into an Option and Lease of Water Rights, with High Test Hay, LLC (the “High Test Water Rights Agreement”). In exchange for a one-time payment of $25,000, the High Test Water Rights Agreement grants the Company a three-year option to commence a ten-year lease on certain water rights in Nevada. The water rights are for use in conjunction with the Company’s Longstreet Project. Lease payments for the water do not commence unless and until the Company exercises the option to lease. The High Test Water Rights Agreement also grants Star Gold the ability to extend, upon additional option payments, the option to lease for up to an additional three years and the ability to extend the water rights lease (if exercised) for up to an additional twenty years. The following is a summary of the Company’s other assets at January 31, 2018 and April 30, 2017. January 31, 2018 April 30, 2017 Option on water rights lease agreements $ 34,393 $ 17,777 Prepaid insurance 5,958 8,771 Subtotal 40,351 26,548 Less Other Assets - Current (20,958) (15,437) TOTAL OTHER ASSETS - NON-CURRENT $ 19,393 $ 11,111

NOTE 5- RELATED PARTY TRANSACTI

NOTE 5- RELATED PARTY TRANSACTIONS	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 5- RELATED PARTY TRANSACTIONS	NOTE 5– RELATED PARTY TRANSACTIONS The Company rents its office space from Marlin Property Management, LLC (“Marlin”) an entity owned by the spouse of the Company’s former President and current Chairman of the Board of Directors. The lease is on a month-to-month basis as financial resources are available. The Company currently pays $250 per month plus a proportionate share of utilities and insurance. For the three months ended January 31, 2018 and 2017, office rent was $750 and $Nil, respectively. For the nine months ended January 31, 2018 and 2017, office rent was $1,500 and $Nil, respectively. The Company has had short term promissory notes with its Chairman of the Board of Directors as follows:   For the three months ended January 31, 2018 and 2017, interest expense on these notes in aggregate was $Nil and $Nil, respectively. For the nine months ended January 31, 2018 and 2017, interest expense on these notes in aggregate was $Nil and $2,093, respectively.

NOTE 6 - WARRANTS

NOTE 6 - WARRANTS	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 6 - WARRANTS	NOTE 6 – WARRANTS The following is a summary of the Company’s warrants to purchase shares of common stock activity: Warrants Weighted Average Exercise Price Balance outstanding at April 30, 2015 1,614,400 $ 0.23 Issued – October 12, 2015 4,241,000 0.20 Balance outstanding at April 30, 2016 5,855,400 0.21 Issued – October 12, 2016 (Note 8) 14,000,000 0.15 Balance outstanding at April 30, 2017 19,855,400 $ 0.17 Issued – October 31, 2017 (Note 8) 10,798,849 0.15 Balance outstanding at January 31, 2018 30,654,249 $ 0.16 The composition of the Company’s warrants outstanding at January 31, 2018 is as follows: Issue Date Expiration Date Warrants Exercise Price Remaining life (years) July 29, 2014 July 29, 2019 1,614,400 $ 0.23 1.49 October 12, 2015 October 12, 2020 4,241,000 0.20 2.70 October 12, 2016 October 12, 2021 14,000,000 0.15 3.70 October 31, 2017 October 31, 2020 10,798,849 0.15 2.75 30,654,249 $ 0.16 3.11

NOTE 8 - STOCKHOLDERS' EQUITY

NOTE 8 - STOCKHOLDERS' EQUITY	9 Months Ended
	Jan. 31, 2018
Notes
NOTE 8 - STOCKHOLDERS' EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY On October 12, 2016, the Company issued 14,000,000 shares of its common stock, and warrants to purchase an additional 14,000,000 shares of its common stock to 24 investors pursuant to a private placement of its securities (the “2016 Offering”). The 2016 Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.05. Warrants issued pursuant to the 2016 Offering entitled the holders thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for five years commencing with its issuance date. The Company raised a total of $700,000 ($18,000 in fiscal year ended April 30, 2016 and $682,000 in the year ended April 30, 2017) pursuant to the 2016 Offering. On October 31, 2017, the Company issued 21,597,698 shares of its common stock, and warrants to purchase an additional 10,798,849 shares of its common stock to 34 investors pursuant to a private placement of its securities (the “2017 Offering”). The 2017 Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.10. Each unit consisted of two shares of common stock and one warrants to purchase an additional share of common stock. Warrants issued pursuant to the 2017 Offering entitled the holders thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for three years commencing with its issuance date. The Company raised a total of $1,079,884.

NOTE 2 - SIGNIFICANT ACCOUNTI13

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Basis of Presentation	Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the six-month period ended January 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2018. All amounts presented are in U.S. dollars. For further information, refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2017.

NOTE 2 - SIGNIFICANT ACCOUNTI14

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Going Concern (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Going Concern	Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of January 31, 2018, the Company has limited financial resources with which to achieve the objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $10,210,145 and, at January 31, 2018, the Company’s working capital was $826,112. Achievement of the Company’s objectives will be dependent upon the ability to obtain additional financing, to locate profitable mining properties and generate revenue from current and planned business operations, and control costs. The Company plans to fund its future operations by joint venturing, obtaining additional financing from investors and/or lenders, and attaining commercial production. With the recent capital raise (Note 8), management believes the Company has adequate funds to operate over the next twelve months.

NOTE 2 - SIGNIFICANT ACCOUNTI15

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to long-lived asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations.

NOTE 2 - SIGNIFICANT ACCOUNTI16

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents.

NOTE 2 - SIGNIFICANT ACCOUNTI17

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Restricted cash (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Restricted cash	Restricted cash Restricted cash constitutes cash held as collateral for the faithful performance of bonds securing exploration permits.

NOTE 2 - SIGNIFICANT ACCOUNTI18

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Financial Instruments (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Financial Instruments	Financial Instruments The Company’s financial instruments include cash and cash equivalents and line of credit. All instruments are accounted for on a historical cost basis, which, due to the short-term nature of these financial instruments approximates fair value at December 31, 2017.

NOTE 2 - SIGNIFICANT ACCOUNTI19

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measures (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Fair Value Measures	Fair Value Measures When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2017 and 2016, the Company had no assets or liabilities accounted for at fair value on a recurring or nonrecurring basis.

NOTE 2 - SIGNIFICANT ACCOUNTI20

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Mining Interests and Mineral Exploration Expenditures (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Mining Interests and Mineral Exploration Expenditures	Mining Interests and Mineral Exploration Expenditures Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations.

NOTE 2 - SIGNIFICANT ACCOUNTI21

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Equipment (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Equipment	Equipment Equipment is stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses.

NOTE 2 - SIGNIFICANT ACCOUNTI22

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Reclamation and Remediation (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Reclamation and Remediation	Reclamation and Remediation The Company’s operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset.

NOTE 2 - SIGNIFICANT ACCOUNTI23

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Impaired Asset Policy (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Impaired Asset Policy	Impaired Asset Policy The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable. The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value.

NOTE 2 - SIGNIFICANT ACCOUNTI24

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Stock-based Compensation (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Stock-based Compensation	The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten-year maximum term and varying vesting periods as determined by the Board of Directors. The value of shares of common stock awards is determined based on the closing price of the Company’s stock on the date of the award.

NOTE 2 - SIGNIFICANT ACCOUNTI25

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Loss Per Share (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Loss Per Share	Loss Per Share Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. The outstanding securities at January 31, 2018 and 2017, that could have a dilutive effect are as follows: January 31, 2018 January 31, 2017 Stock options 5,250,000 5,210,000 Warrants 30,654,249 19,855,400 TOTAL POSSIBLE DILUTION 35,904,249 25,065,400 At January 31, 2018 and 2017, the effect of the Company’s outstanding stock options and warrants would have been anti-dilutive.

NOTE 2 - SIGNIFICANT ACCOUNTI26

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Income Taxes	Income Taxes The Company recognizes provision for income tax using the liability method. Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

NOTE 2 - SIGNIFICANT ACCOUNTI27

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Reclassifications (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
Reclassifications	Reclassifications Certain reclassifications have been made to the 2017 financial statements in order to conform to the 2018 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit as previously reported.

NOTE 2 - SIGNIFICANT ACCOUNTI28

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: New Accounting Pronouncements (Policies)	9 Months Ended
	Jan. 31, 2018
Policies
New Accounting Pronouncements	In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect this update to have a material impact on the consolidation financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after the effective date. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.