Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2016 | Feb. 15, 2017 | Oct. 31, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | ValueSetters Inc. | ||
Entity Central Index Key | 1,414,767 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 1,473,200 | ||
Entity Common Stock, Shares Outstanding | 508,000,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 843 | $ 5,237 |
Accounts receivable, net | 5,002 | |
Prepaid expenses | 152,992 | 202,992 |
Other current assets | 2,017 | 4,954 |
Total current assets | 155,852 | 218,185 |
Non-current prepaid expenses | 6,015 | 159,007 |
Equipment and software, net of accumulated depreciation | 539,832 | 920,892 |
Investments | 15,000 | |
Total assets | 701,699 | 1,313,084 |
Current liabilities: | ||
Accounts payable - Trade | 290,389 | 185,795 |
Accounts payable - Related party | 31,680 | 31,680 |
Accrued expenses | 332,792 | 225,629 |
Deferred revenue | 2,017 | 17,160 |
Notes payable- related parties | 15,100 | 16,048 |
Loan payable - bank | 42,747 | 45,804 |
Demand note payable | 50,190 | 39,150 |
Total current liabilities | 764,915 | 561,266 |
Long-term related party note payable | 533,066 | 533,066 |
Long-term unsecured related party note payable | 20,000 | 20,000 |
Long-term secured note payable to related party | 1,167,700 | 1,146,860 |
Total Liabilities | 2,485,681 | 2,261,192 |
Stockholders' deficit: | ||
Common stock, $.001 par value; 900,000,000 shares authorized, 508,000,000 and 500,000,000 shares issued and outstanding in 2016 and 2015, respectively | 508,000 | 500,000 |
Capital in excess of par value | 661,039 | 669,039 |
Accumulated deficit | (2,953,021) | (2,117,147) |
Total liabilities and stockholders' deficit | 701,699 | 1,313,084 |
Total stockholders' deficit | $ (1,783,982) | $ (948,108) |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2016 | Apr. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ .001 | $ .001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 508,000,000 | 500,000,000 |
Common stock, shares outstanding | 508,000,000 | 500,000,000 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 44,878 | $ 93,632 |
Costs and expenses: | ||
Costs of services | 115,864 | 66,562 |
Selling, general and administrative | 255,192 | 655,995 |
Depreciation | 381,060 | 222,285 |
Total costs and expenses | 752,116 | 944,842 |
Loss from operations | (707,238) | (851,210) |
Interest expense | (113,636) | (76,766) |
Loss on investments | (15,000) | (12,500) |
Other expense | (1,486) | |
Mark to market adjustment of derivative liabilities | 456,294 | |
Total other income (expense) | (128,636) | (81,958) |
Net loss before taxes | (835,874) | (485,668) |
Income taxes | ||
Net loss | $ (835,874) | $ (485,668) |
Basic and diluted loss per share | $ 0 | $ 0 |
Weighted average number of shares outstanding | 506,032,787 | 500,000,000 |
Statements of Stockholders Equi
Statements of Stockholders Equity - USD ($) | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Total |
Beginning balance at Apr. 30, 2014 | $ 500,000 | $ 420,968 | $ (1,631,479) | $ (710,511) |
Beginning balance, shares at Apr. 30, 2014 | 500,000,000 | |||
Net loss | (485,668) | (485,668) | ||
Reversal of derivative liability | 244,771 | 244,771 | ||
Beneficial conversion feature of note payable | 3,300 | 3,300 | ||
Balance at Apr. 30, 2015 | $ 500,000 | 669,039 | (2,117,147) | (948,108) |
Balance, shares at Apr. 30, 2015 | 500,000,000 | |||
Net loss | (835,874) | (835,874) | ||
Reversal of derivative liability | ||||
Stock issued for services | $ 8,000 | (8,000) | ||
Stock issued for services, shares | 8,000,000 | |||
Balance at Apr. 30, 2016 | $ 508,000 | $ 661,039 | $ (2,953,021) | $ (1,783,982) |
Balance, shares at Apr. 30, 2016 | 508,000,000 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Operating activities | ||
Net loss | $ (835,874) | $ (485,668) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 198,895 | 537,500 |
Depreciation | 381,060 | 222,285 |
Non-cash revenue | (15,000) | |
Amortization of debt discount | 3,300 | |
Provision for bad debts | 6,559 | |
Loss on investments | 15,000 | 12,500 |
Change in fair market value of derivatives | (456,294) | |
Other expense | 1,486 | |
Changes in non-cash working capital balances | ||
Accounts receivable | 5,002 | 6,567 |
Investments | (12,500) | |
Prepaid expenses | 4,097 | |
Other assets | 2,937 | 2,491 |
Accounts payable | 211,757 | 3,271 |
Accounts payable – related party | 9,420 | |
Accrued expenses | 10,540 | 88,171 |
Deferred revenue | (15,143) | (4,857) |
Cash used in operating activities | (21,729) | (80,769) |
Financing activities | ||
Payments on bank loan | (3,057) | (2,665) |
Payments on demand notes | (1,500) | |
Payments on related party notes | (1,048) | (2,202) |
Proceeds from demand note payable | 11,040 | 24,650 |
Proceeds from note payable- related party | 100 | 21,200 |
Proceeds from note payable- secured related party | 10,300 | 44,900 |
Cash provided by financing activities | 17,335 | 84,383 |
Increase (decrease) in cash and cash equivalents during the period | (4,394) | 3,614 |
Cash and cash equivalents, beginning of the period | 5,237 | 1,623 |
Cash and cash equivalents, end of the period | 843 | 5,237 |
Cash paid for: Interest | 2,809 | 3,017 |
Cash paid for: Income taxes | ||
Non cash financing information: | ||
Debt discount due to beneficial conversion feature | 3,300 | |
Investments acquired for deferred revenue | 10,000 | |
Reversal of derivative liability | $ 244,771 |
Note 1 - Description of Busines
Note 1 - Description of Business and Summary of Accounting Principles | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 1 - Description of Business and Summary of Accounting Principles | 1. Description of Business and Summary of Accounting Principles Description of Business and Concentrations Valuesetters, Inc. (Valuesetters, we, our, or the Company) is a provider of consulting services, subscription services, advertising and digital goods using technology distribution platforms like the Internet and mobile devices in the media and entertainment markets. The financial statements are presented in United States dollars and have been prepared in accordance with generally accepted accounting principles in the United States of America. The Companys fiscal year end is April 30. Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. A valuation allowance has been established to eliminate the Companys deferred tax assets as it is more likely than not that none of the deferred tax assets will be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the tax authorities. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in income tax expense. The Company has determined that it had no significant uncertain tax positions requiring recognition or disclosure. Revenue Recognition Revenues from services are recognized in the period in which they are earned, in accordance with the terms and conditions noted on our websites. In instances where a subscriber prepays for a service, any prepayment is recognized as a current liability until it is earned. Costs of Services Costs of services consist of direct costs that we pay to third parties in order to provide the services that generate revenue. Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of shares outstanding. To the extent that stock options and warrants are anti-dilutive, they are excluded from the calculation of diluted loss per share. For 2016 and 2015, the Company had no potentially dilutive securities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company did not have any cash equivalents during fiscal 2016 and 2015. Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimate relates to the accruals for income tax valuation allowance. On a continual basis, management reviews its estimates, utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Determination of Fair Value Cash and cash equivalents, accounts receivable, and accounts payable In general, carrying amounts approximate fair value because of the short maturity of these instruments. Deferred Revenue Deferred Revenue represents revenues collected but not earned as of the year end. The Company renders services, or rights to use its software, over a specific time period and revenues are recognized as earned as time passes. Debt At April 30, 2016 and 2015, the Companys secured debt was carried at its face value plus accrued interest. In July 2014, the Company renegotiated its secured related party debt and a note payable to a former director, and these notes are now term loans which mature on June 30, 2017. Based on the financial condition of the Company, it is impracticable for the Company to estimate the fair value of its short and long-term debt. The Company has no instruments with significant off balance sheet risk. Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We will adopt this ASU when effective. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and our management is currently evaluating which transition approach to use. We are currently evaluating the possible impact of ASU 2014-09, but we do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. Under this amendment, management is now required to determine every interim and annual period whether conditions or events exist that raise substantial doubt about an entitys ability to continue as a going concern within one year after the date the financial statements are issued. If management indicates that it is probable the entity will not be able to meet its obligations as they become due within the assessment period, then management must evaluate whether it is probable that plans to mitigate those factors will alleviate that substantial doubt. The guidance is effective for fiscal years, beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of ASU 2014-15 to have a significant impact on the Company's consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 is effective for interim and annual reporting periods beginning after December 15, 2015. The new guidance will be applied on a retrospective basis and early adoption is permitted. The Company chose early adoption of the new guidance, which had no impact on the Company's consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this Update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If an entity applies the guidance prospectively, the entity should disclose in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If an entity applies the guidance retrospectively, the entity should disclose in the first interim and first annual period of change the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. We do not expect the adoption of ASU 2015-17 to have a significant impact on our consolidated results of operations, financial position or cash flows. In January 2016, the FASB issued ASU 2016-01 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other changes, requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This Update also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The amendments in ASU 2016-01 will become effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the effect of the adoption of ASU 2016-01 will have on our consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years, for public business entities. We are currently evaluating the effect of the adoption of ASU 2016-02 will have on our consolidated results of operations, financial position or cash flows. In March 2016, the FASB issued ASC 2016-09 Compensation Stock Compensation (Topic 718) Improvements to Employee Share-based Payment Accounting. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to these simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The amendments in ASC 2016-09 will become effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the effect of the adoption of ASU 2016-09 will have on our consolidated results of operations, financial position or cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipt and Cash Payments. The new guidance addresses certain classification issues related to the statement of cash flows which will eliminate the diversity of practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 2017. Early adoption is permitted. We are currently evaluating the possible impact of ASU 2016-15, but do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. The new guidance amends the consolidation guidance on how a reporting entity that is the single decision make of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The guidance is effective for fiscal years beginning after December 2016. Early adoption is permitted. We are currently evaluating the possible impact of ASU 2016-17, but do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Note 2 - Going Concern Matters
Note 2 - Going Concern Matters and Realization of Assets | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 2 - Going Concern Matters and Realization of Assets | 2. Going Concern Matters and Realization of Assets The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. However, the Company has sustained recurring losses from its continuing operations and as of April 30, 2016, had negative working capital of $609,063 and a stockholders deficit of $1,783,982. In addition, the Company is unable to meet its obligations as they become due and sustain its operations. The Company believes that its existing cash resources are not sufficient to fund its continuing operating losses, capital expenditures, lease and debt payments and working capital requirements. The Company may not be able to raise sufficient additional debt, equity or other cash on acceptable terms, if at all. Failure to generate sufficient revenues, achieve certain other business plan objectives or raise additional funds could have a material adverse effect on the Companys results of operations, cash flows and financial position, including its ability to continue as a going concern, and may require it to significantly reduce, reorganize, discontinue or shut down its operations. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company which, in turn, is dependent upon the Companys ability to meet its financing requirements on a continuing basis, and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in its existence. Managements plans include: 1. Seek to raise debt or equity for working capital purposes and to pay off existing debt balances. With sufficient additional cash available to the Company, it can begin to make marketing expenditures and hire people to generate more revenues, and consequently cut monthly operating losses. 2. Continue to look for software niches and digital products that can be sold via an Internet-based store. Various acquisition opportunities are being considered to help the Company generate additional revenues and obtain profitability. 3. Continue to provide consulting services to early-stage companies, and begin charging a cash fee, in addition to an equity-based fee, in exchange for the services. There can be no assurance that the Company will be able to achieve or maintain cash-flow-positive operating results. If the Company is unable to generate adequate funds from operations or raise sufficient additional funds, the Company may not be able to repay its existing debt, continue to operate its business network, respond to competitive pressures or fund its operations. As a result, the Company may be required to significantly reduce, reorganize, discontinue or shut down its operations. The financial statements do not include any adjustments that might result from this uncertainty. |
Note 3 - Debt
Note 3 - Debt | 12 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Note 4 - Principal Financing Arrangements | 3. Debt The following table summarizes components debt as of April 30, 2016 and 2015: 2016 2015 Interest Rate Secured lender (affiliate) $ 1,167,700 $ 1,146,860 8.00 % Term note 333,066 333,066 3.0 % Term note 200,000 200,000 2.0 % Notes payable related parties 35,100 36,048 0.0 % Demand note payable 50,190 39,150 0.0 10.0 % Loan payable - bank 42,747 45,804 5.5 % Total Debt $ 1,828,803 $ 1,800,928 As of April 30, 2016 and 2015, the Company owed its principal lender (Lender) $1,167,700 and $1,146,860, respectively, under a loan and security agreement (Loan) dated April 28, 2011, that was amended on July 26, 2014, to change the maturity date to June 30, 2017. The maximum amount of the Loan is $1,250,000, and interest on the Loan has been accrued and added to the principal balance of the Loan. The Lender is also the largest shareholder of the Company, owning 227,173,207 shares of common stock, or 44.7% of the 508,000,000 shares issued and outstanding, as of April 30, 2016. In connection with the financing, the Company has agreed to certain restrictive covenants, including, among others, that the Company may not convey, sell lease, transfer or otherwise dispose of any part of its business or property, except as permitted in the agreement, dissolve, liquidate or merge with any other party unless, in the case of a merger, the Company is the surviving entity, incur any indebtedness except as defined in the agreement, create or allow an lien on any of its assets or collateral that has been pledge to the Lender, make any loans to any person, except for prepaid items or deposits incurred in the ordinary course of business, or make any material capital expenditures To secure the payment of all obligations to the lender, the Company granted to the lender a continuing security interest and first lien on all of the assets of the Company. As of April 30, 2016 and 2015, the Companys related-party unsecured notes payable totaled $35,100 and $36,048, respectively. The Company also owes $333,066 to a former board member, who owns 8.7% of our outstanding shares, for a note payable dated April 30, 2011. In July 2014, this note was renegotiated to a 3% term loan due on June 30, 2017. The same person has personally guaranteed a bank line of credit under which the Company owes $42,747 and $45,804 as of April 30, 2016 and 2015, respectively. The Company pays $220 a month in principal payments on the outstanding balance, plus the monthly interest expense, which is calculated at a rate of 5.5% per annum. Demand notes payable totaled $50,190 and $39,150 at April 30, 2016 and 2015, respectively. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Note 8 - Fair Value | 4. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures of financial instruments on a recurring basis. Fair Value Hierarchy The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Determination of Fair Value Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the Company bases its fair value on 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. It is the Companys policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and, therefore, are based primarily upon managements own estimates, are often calculated based on current pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other such factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future value. See Note 1 for a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value where it is practicable to do so for financial instruments not recorded at fair value (disclosures required by the Fair Value Measurements Topic of the FASB Accounting Standards Codification). |
Note 5 - Income Taxes
Note 5 - Income Taxes | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Note 5 - Income Taxes | 4. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures of financial instruments on a recurring basis. Fair Value Hierarchy The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Determination of Fair Value Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the Company bases its fair value on 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. It is the Companys policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and, therefore, are based primarily upon managements own estimates, are often calculated based on current pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other such factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future value. See Note 1 for a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value where it is practicable to do so for financial instruments not recorded at fair value (disclosures required by the Fair Value Measurements Topic of the FASB Accounting Standards Codification). |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Note 6 - Commitments and Contingencies | 6. Commitments and Contingencies Litigation The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. In the opinion of management, the amount of ultimate liability, if any, is not likely to have a material effect on the financial condition, results of operations or liquidity of the Company. However, as the outcome of litigation or legal claims is difficult to predict, significant changes in the estimated exposures could occur. |
Note 7 - Stockholders' Deficit
Note 7 - Stockholders' Deficit | 12 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Note 7 - Stockholders' Deficit | 7. Stockholders Deficit The Company is authorized to issue 900,000,000 shares of its common stock, par value $0.001. 508,000,000 and 500,000,000 shares were outstanding as of April 30, 2016 and 2015, respectively. 8,000,000 shares were issued in fiscal 2016 for consulting services and no shares were issued during fiscal 2015. The following tables summarize information about options outstanding at April 30, 2016 and 2015. Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Number Contractual Exercise Number Exercise Range of Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2016 $0.03 18,000,000 3.02 $ 0.03 13,417,883 $ 0.03 As of April 30, 2015 $0.03 18,000,000 4.02 $ 0.03 8,909,672 $ 0.03 Number of Shares Exercise Price Per Share Average Exercise Price Outstanding April 30, 2014 - - - Granted during year ended April 30, 2015 18,000,000 $ 0.03 $ 0.03 Exercised/canceled during year ended April 30, 2015 - - - Outstanding April 30, 2015 18,000,000 $ 0.03 $ 0.03 Granted during year ended April 30, 2016 - - - Exercised/canceled during year ended April 30, 2016 - - - Outstanding April 30, 2016 18,000,000 $ $ 0.03 $ 0.03 Options exercisable, April 30, 2016 13,417,883 $0.03 $ 0.03 On May 7, 2014, the Company granted 5-year stock options that fully vest over a three year period to three consultants. Each consultant was granted an option to purchase up to 6 million shares of the Companys common stock at a price of $0.03 per share. The Company entered consulting agreements to issue common stock and options to purchase common stock, and recorded the applicable non-cash expense in accordance with the authoritative guidance of the Financial Accounting Standards Board. For the years ended April 30, 2016 and 2015, the Company recorded $198,895 and $537,500, respectively, in stock-based compensation expense. As of April 30, 2016, there was $159,007 of prepaid stock-based compensation expense, $152,992 of which is current and $6,015 of which is non-current. On July 5, 2014, the Company agreed to issue 6,000,000 shares of restricted common stock in exchange for investor awareness services for the period of July 10, 2014 to December 31, 2014. The Company believes services were never rendered and has not issued any shares. On July 24, 2014, the Company signed a three-year consulting agreement in exchange for 6,000,000 shares of common stock, which were issued in May 2015. On August 8, 2014, the Company signed a six-month consulting agreement in exchange for 2,000,000 shares of common stock, which were issued in October 2015. On September 11, 2014, the Company entered into a twelve month consulting agreement valued at $200,000 based on services to be performed. The Company issued a three-year note at 2% interest per annum, which can be converted into a maximum of 20,000,000 shares of common stock of the Company. |
Note 8 - Loss Per Common Share
Note 8 - Loss Per Common Share | 12 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Note 8 - Loss Per Common Share | 7. Stockholders Deficit The Company is authorized to issue 900,000,000 shares of its common stock, par value $0.001. 508,000,000 and 500,000,000 shares were outstanding as of April 30, 2016 and 2015, respectively. 8,000,000 shares were issued in fiscal 2016 for consulting services and no shares were issued during fiscal 2015. The following tables summarize information about options outstanding at April 30, 2016 and 2015. Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Number Contractual Exercise Number Exercise Range of Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2016 $0.03 18,000,000 3.02 $ 0.03 13,417,883 $ 0.03 As of April 30, 2015 $0.03 18,000,000 4.02 $ 0.03 8,909,672 $ 0.03 Number of Shares Exercise Price Per Share Average Exercise Price Outstanding April 30, 2014 - - - Granted during year ended April 30, 2015 18,000,000 $ 0.03 $ 0.03 Exercised/canceled during year ended April 30, 2015 - - - Outstanding April 30, 2015 18,000,000 $ 0.03 $ 0.03 Granted during year ended April 30, 2016 - - - Exercised/canceled during year ended April 30, 2016 - - - Outstanding April 30, 2016 18,000,000 $ $ 0.03 $ 0.03 Options exercisable, April 30, 2016 13,417,883 $0.03 $ 0.03 On May 7, 2014, the Company granted 5-year stock options that fully vest over a three year period to three consultants. Each consultant was granted an option to purchase up to 6 million shares of the Companys common stock at a price of $0.03 per share. The Company entered consulting agreements to issue common stock and options to purchase common stock, and recorded the applicable non-cash expense in accordance with the authoritative guidance of the Financial Accounting Standards Board. For the years ended April 30, 2016 and 2015, the Company recorded $198,895 and $537,500, respectively, in stock-based compensation expense. As of April 30, 2016, there was $159,007 of prepaid stock-based compensation expense, $152,992 of which is current and $6,015 of which is non-current. On July 5, 2014, the Company agreed to issue 6,000,000 shares of restricted common stock in exchange for investor awareness services for the period of July 10, 2014 to December 31, 2014. The Company believes services were never rendered and has not issued any shares. On July 24, 2014, the Company signed a three-year consulting agreement in exchange for 6,000,000 shares of common stock, which were issued in May 2015. On August 8, 2014, the Company signed a six-month consulting agreement in exchange for 2,000,000 shares of common stock, which were issued in October 2015. On September 11, 2014, the Company entered into a twelve month consulting agreement valued at $200,000 based on services to be performed. The Company issued a three-year note at 2% interest per annum, which can be converted into a maximum of 20,000,000 shares of common stock of the Company. |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 12 Months Ended |
Apr. 30, 2016 | |
Related Party Transactions [Abstract] | |
Note 9 - Related Party Transactions | 9. Related Party Transactions The Companys largest shareholder is also its principal lender. As of April 30, 2016 and 2015, the Company owed its largest shareholder, under a secured lending agreement, $1,167,700 and $1,146,860, respectively. The maximum amount of the loan is $1,250,000, and the loan matures on June 30, 2017. Interest payments are accrued monthly and added to the principal balance of the note. The largest shareholder of the Company owns 227,173,207 shares of common stock, or 44.7% of the 508,000,000 shares issued and outstanding at April 30, 2016. The Company owes a related party $20,000 as of April 30, 2016 and 2015 under a note payable with interest at 8% per annum, with a maturity date of November 18, 2017. The Company has accounts payable to two directors for a total of $31,680 as of April 30, 2016 and 2015. The Company has a note payable to a director for $15,000 as of April 30, 2016 and 2015. The Company owes its Chief Executive Officer and Chairman of the board of directors $100 and $1,048 as of April 30, 2016 and 2015, respectively. |
Note 10. Purchase of a Business
Note 10. Purchase of a Business | 12 Months Ended |
Apr. 30, 2016 | |
Notes to Financial Statements | |
10. Purchase of a Business | 10. Purchase of a Business On September 30, 2014, the Company purchased assets and assumed certain liabilities of a voice over Internet protocol (VoIP) business (the Business) that sells under the name of VoX Communications and VoX Mobile. The seller required 40,000,000 shares of the Companys common stock, which was provided to the seller by our largest shareholder and secured lender, Vaxstar LLC (Vaxstar). In a simultaneous transaction, Vaxstar sold the Business to the Company for a $1,000,000 increase in our secured note that is due on June 30, 2017. In conjunction with this purchase, we recorded assets of $1,170,041, consisting of equipment and software of $1,143,177, accounts receivable of $19,415 and other assets of $7,449. We also recorded $1,170,041 in liabilities, consisting of the $1,000,000 loan, $151,241 in accounts payable and accrued expenses and $18,800 in deferred revenue. All the equipment on our balance sheet is from this purchase. We depreciate the equipment over a three-year life. |
Note 11. Investments
Note 11. Investments | 12 Months Ended |
Apr. 30, 2016 | |
Notes to Financial Statements | |
Note 11. Investments | 11. Investments During fiscal 2016 the Company acquired an equity interest in Dark LLC, Sportsclub LLC, Reper LLC and Cupcrew LLC in exchange for consulting services. During fiscal 2015, the Company acquired a 5% interest in three early-stage companies, Madhat Media, Inc., Zelgor Inc. and NetCapital Systems LLC, as payment for consulting and advisory services provided to the companies. The Company only recognizes consulting revenues and the cost of the investment in instances where the services were provided to entities that generated revenues known to the Company. The Company also purchased 5% of Splyst LLC for a cash payment of $12,500 and recorded a valuation loss on investments at April 30, 2016 and 2015 of $15,000 and $12,500, respectively. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 12 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Note 12 - Subsequent Events | 12 Subsequent Events The Company made additional investments in early-stage companies in exchange for consulting and advisory services. Agreements for non-exclusive advisory services and management consulting services were rendered that provide the Company with equity in Zelgor Inc., MadHat Media Inc, Chronability, Dark LLC, Storeboard Inc, Splyst LLC and Rivetz Corp. The Company also is providing additional services for NetCapital Systems LLC, which generates revenues, under a new agreement in August 2016. |
Note 1 - Description of Busin19
Note 1 - Description of Business and Summary of Accounting Principles (Policies) | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Concentrations | Description of Business and Concentrations Valuesetters, Inc. (Valuesetters, we, our, or the Company) is a provider of consulting services, subscription services, advertising and digital goods using technology distribution platforms like the Internet and mobile devices in the media and entertainment markets. The financial statements are presented in United States dollars and have been prepared in accordance with generally accepted accounting principles in the United States of America. The Companys fiscal year end is April 30. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. A valuation allowance has been established to eliminate the Companys deferred tax assets as it is more likely than not that none of the deferred tax assets will be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the tax authorities. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in income tax expense. The Company has determined that it had no significant uncertain tax positions requiring recognition or disclosure. |
Revenue Recognition | Revenue Recognition Revenues from services are recognized in the period in which they are earned, in accordance with the terms and conditions noted on our websites. In instances where a subscriber prepays for a service, any prepayment is recognized as a current liability until it is earned. |
Costs of Services | Costs of Services Costs of services consist of direct costs that we pay to third parties in order to provide the services that generate revenue. |
Loss Per Share | Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of shares outstanding. To the extent that stock options and warrants are anti-dilutive, they are excluded from the calculation of diluted loss per share. For 2016 and 2015, the Company had no potentially dilutive securities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company did not have any cash equivalents during fiscal 2016 and 2015. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The most significant estimate relates to the accruals for income tax valuation allowance. On a continual basis, management reviews its estimates, utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Determination of Fair Value | Determination of Fair Value Cash and cash equivalents, accounts receivable, and accounts payable In general, carrying amounts approximate fair value because of the short maturity of these instruments. |
Deferred Revenue | Deferred Revenue Deferred Revenue represents revenues collected but not earned as of the year end. The Company renders services, or rights to use its software, over a specific time period and revenues are recognized as earned as time passes. |
Debt | Debt At April 30, 2016 and 2015, the Companys secured debt was carried at its face value plus accrued interest. In July 2014, the Company renegotiated its secured related party debt and a note payable to a former director, and these notes are now term loans which mature on June 30, 2017. Based on the financial condition of the Company, it is impracticable for the Company to estimate the fair value of its short and long-term debt. The Company has no instruments with significant off balance sheet risk. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. We will adopt this ASU when effective. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and our management is currently evaluating which transition approach to use. We are currently evaluating the possible impact of ASU 2014-09, but we do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. Under this amendment, management is now required to determine every interim and annual period whether conditions or events exist that raise substantial doubt about an entitys ability to continue as a going concern within one year after the date the financial statements are issued. If management indicates that it is probable the entity will not be able to meet its obligations as they become due within the assessment period, then management must evaluate whether it is probable that plans to mitigate those factors will alleviate that substantial doubt. The guidance is effective for fiscal years, beginning after December 15, 2016. Early adoption is permitted. We do not expect the adoption of ASU 2014-15 to have a significant impact on the Company's consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. ASU 2015-03 is effective for interim and annual reporting periods beginning after December 15, 2015. The new guidance will be applied on a retrospective basis and early adoption is permitted. The Company chose early adoption of the new guidance, which had no impact on the Company's consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this Update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If an entity applies the guidance prospectively, the entity should disclose in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that prior periods were not retrospectively adjusted. If an entity applies the guidance retrospectively, the entity should disclose in the first interim and first annual period of change the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. We do not expect the adoption of ASU 2015-17 to have a significant impact on our consolidated results of operations, financial position or cash flows. In January 2016, the FASB issued ASU 2016-01 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other changes, requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This Update also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The amendments in ASU 2016-01 will become effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the effect of the adoption of ASU 2016-01 will have on our consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). Under ASU 2016-02, entities will be required to recognize lease asset and lease liabilities by lessees for those leases classified as operating leases. Among other changes in accounting for leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. The amendments in ASU 2016-02 will become effective for fiscal years beginning after December 15, 2018, including interim periods with those fiscal years, for public business entities. We are currently evaluating the effect of the adoption of ASU 2016-02 will have on our consolidated results of operations, financial position or cash flows. In March 2016, the FASB issued ASC 2016-09 Compensation Stock Compensation (Topic 718) Improvements to Employee Share-based Payment Accounting. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to these simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The amendments in ASC 2016-09 will become effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the effect of the adoption of ASU 2016-09 will have on our consolidated results of operations, financial position or cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipt and Cash Payments. The new guidance addresses certain classification issues related to the statement of cash flows which will eliminate the diversity of practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 2017. Early adoption is permitted. We are currently evaluating the possible impact of ASU 2016-15, but do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. The new guidance amends the consolidation guidance on how a reporting entity that is the single decision make of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The guidance is effective for fiscal years beginning after December 2016. Early adoption is permitted. We are currently evaluating the possible impact of ASU 2016-17, but do not anticipate that it will have a material impact on the Company's consolidated results of operations, financial position or cash flows. |
Note 3 - Debt (Tables)
Note 3 - Debt (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 2016 2015 Interest Rate Secured lender (affiliate) $ 1,167,700 $ 1,146,860 8.00 % Term note 333,066 333,066 3.0 % Term note 200,000 200,000 2.0 % Notes payable related parties 35,100 36,048 0.0 % Demand note payable 50,190 39,150 0.0 10.0 % Loan payable - bank 42,747 45,804 5.5 % Total Debt $ 1,828,803 $ 1,800,928 |
Note 5 - Income Taxes (Tables)
Note 5 - Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Note 5 - Income Taxes Tables | |
Deferred tax assets and liabilities | 2016 2015 Deferred tax assets, net: Net operating loss carryforwards $ 1,700,000 $ 1,124,000 Valuation allowance 1,700,000 1,124,000 Net deferred assets $ $ |
Tax provisions | Percentage of Pre-Tax Income 2016 2015 Statutory Federal income tax rate (34.0 )% (34.0 )% Loss generating no tax benefit 34.0 34.0 Effective tax rate |
Note 7 - Stockholders' Deficit
Note 7 - Stockholders' Deficit (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Note 7 - Stockholders Deficit Tables | |
Schedule of stockholders' deficit | Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Number Contractual Exercise Number Exercise Range of Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2016 $0.03 18,000,000 3.02 $ 0.03 13,417,883 $ 0.03 As of April 30, 2015 $0.03 18,000,000 4.02 $ 0.03 8,909,672 $ 0.03 Number of Shares Exercise Price Per Share Average Exercise Price Outstanding April 30, 2014 - - - Granted during year ended April 30, 2015 18,000,000 $ 0.03 $ 0.03 Exercised/canceled during year ended April 30, 2015 - - - Outstanding April 30, 2015 18,000,000 $ 0.03 $ 0.03 Granted during year ended April 30, 2016 - - - Exercised/canceled during year ended April 30, 2016 - - - Outstanding April 30, 2016 18,000,000 $ $ 0.03 $ 0.03 Options exercisable, April 30, 2016 13,417,883 $0.03 $ 0.03 |
Note 8 - Loss Per Common Share
Note 8 - Loss Per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | 2016 2015 Net loss $ (835,874 ) $ (485,668 ) Weighted average common shares outstanding 508,000,000 500,000,000 Effect of dilutive securities Weighted average dilutive common shares outstanding 508,000,000 500,000,000 Loss per common share basic $ (.00 ) $ (.00 ) Loss per common share diluted $ (.00 ) $ (.00 ) |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Narrative) | Apr. 30, 2016USD ($) |
Note 2 - Going Concern Details | |
Working capital | $ (609,063) |
Stockholders' equity deficit | $ 1,783,982 |
Note 3 - Debt (Details)
Note 3 - Debt (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Debt Disclosure [Abstract] | ||
Secured lender (majority shareholder) | $ 1,167,700 | $ 1,146,860 |
Term note | 333,066 | 333,066 |
Term note 2 | 200,000 | 200,000 |
Notes payable- related parties | 35,100 | 36,048 |
Demand note payable | 50,190 | 39,150 |
Loan payable - bank | 42,747 | 45,804 |
Total Debt | $ 1,828,803 | $ 1,800,928 |
Note 5 - Income Taxes (Details)
Note 5 - Income Taxes (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 1,700,000 | $ 1,124,000 |
Valuation allowance | 1,700,000 | 1,124,000 |
Net deferred assets |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details 1) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Note 5 - Income Taxes Details | ||
Statutory Federal income tax rate | (34.00%) | (34.00%) |
Loss generating no tax benefit | 34.00% | 34.00% |
Effective tax rate | 0.00% | 0.00% |
Note 7 - Stockholders' Defici28
Note 7 - Stockholders' Deficit (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Option activity | ||
Number of Options, Outstanding (in shares) | 18,000,000 | |
Granted | 18,000,000 | |
Exercised | ||
Expired/Cancelled | ||
Number of Options, Outstanding (in shares) | 18,000,000 | 18,000,000 |
Number of Options exercisable | 13,417,883 | 8,909,672 |
Weighted Average Remaining Contractual Life | 4 years 7 days | 3 years 7 days |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price (in dollars per share) | $ .03 | |
Granted | .03 | .03 |
Exercised | ||
Expired/Cancelled | ||
Weighted Average Exercise Price (in dollars per share) | $ .03 | $ .03 |
Note 8 - Loss Per Common Shar29
Note 8 - Loss Per Common Share (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Note 8 - Loss Per Common Share Details | ||
Net loss | $ (835,874) | $ (485,668) |
Weighted average common shares outstanding | 508,000,000 | 500,000,000 |
Effect of dilutive securities | ||
Weighted average dilutive common shares outstanding | 508,000,000 | 500,000,000 |
Loss per common share-basic | $ (.00) | $ (.00) |
Loss per common share-diluted | $ (.00) | $ (.00) |