Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Apr. 30, 2014 | Aug. 15, 2014 | Oct. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'ValueSetters Corp | ' | ' |
Entity Central Index Key | '0001414767 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Apr-14 | ' | ' |
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 | ' | ' | $1,251,268 |
Entity Common Stock, Shares Outstanding | ' | 500,000,000 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $1,623 | $3,075 |
Total current assets | 1,623 | 3,075 |
Total assets | 1,623 | 3,075 |
Current liabilities: | ' | ' |
Accounts payable - Trade | 74,592 | 79,943 |
Accounts payable - Related party | 110,985 | 103,509 |
Accrued expenses | 15,536 | 19,600 |
Deferred revenue | 3,217 | ' |
Secured note payable to related party | ' | 69,254 |
Notes payable- related parties | 17,050 | 348,066 |
Loan payable - bank | 48,469 | 50,229 |
Demand note payable | 16,000 | 15,000 |
Total current liabilities | 285,849 | 685,601 |
Long-term related party note payable | 333,066 | ' |
Long-term secured note payable to related party | 93,219 | ' |
Total Liabilities | 712,134 | 685,601 |
Stockholders' deficit: | ' | ' |
Common stock, $.001 par value; 500,000,000 shares authorized, 500,000,000 shares issued and outstanding in 2014 and 2013 | 500,000 | 500,000 |
Capital in excess of par value | 420,968 | 420,968 |
Accumulated deficit | -1,631,479 | -1,603,494 |
Total stockholders' deficit | -710,511 | -682,526 |
Total liabilities and stockholders' deficit | $1,623 | $3,075 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 500,000,000 | 500,000,000 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Income Statement [Abstract] | ' | ' |
Revenues | $4,679 | $8,127 |
Costs and expenses: | ' | ' |
Costs of services | 1,242 | 806 |
Selling, general and administrative | 13,182 | 14,817 |
Interest Expense | 18,240 | 18,874 |
Total costs and expenses | 32,664 | 34,496 |
Net loss before taxes | -27,985 | -26,370 |
Income taxes | ' | ' |
Net loss | -27,985 | -26,370 |
Basic and diluted loss per share | $0 | $0 |
Weighted average number of shares outstanding | 500,000,000 | 500,000,000 |
Comprehensive Loss | ' | ' |
Net loss | -27,985 | -26,370 |
Other comprehensive income | ' | ' |
Comprehensive loss | ($27,985) | ($26,370) |
Statements_of_Stockholders_Equ
Statements of Stockholders Equity (USD $) | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Total |
Beginning balance at Apr. 30, 2012 | $50,000 | $420,698 | ($1,577,124) | ($656,156) |
Beginning balance, shares at Apr. 30, 2012 | 500,000,000 | ' | ' | ' |
Net loss | ' | ' | -26,370 | -26,370 |
Balance at Apr. 30, 2013 | 50,000 | 420,698 | -1,603,494 | -682,526 |
Balance, shares at Apr. 30, 2013 | 500,000,000 | ' | ' | ' |
Net loss | ' | ' | -27,985 | -27,985 |
Balance at Apr. 30, 2014 | $50,000 | $420,698 | ($1,631,479) | ($710,511) |
Balance, shares at Apr. 30, 2014 | 500,000,000 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Operating activities | ' | ' |
Net loss | ($27,985) | ($26,370) |
Changes in non-cash working capital balances | ' | ' |
Accounts payable | 2,125 | 3,880 |
Accrued liabilities | 5,708 | 5,600 |
Cash provided by (used in) operating activities | -20,152 | -16,890 |
Financing activities | ' | ' |
Payments on bank loan | -1,760 | ' |
Proceeds from demand note payable | 1,000 | ' |
Proceeds from note payable- related party | 2,050 | ' |
Proceeds from note payable- secured related party | 17,410 | 18,021 |
Cash provided by financing activities | 18,700 | 18,021 |
Increase (decrease) in cash and cash equivalents during the period | -1,452 | 1,131 |
Cash and cash equivalents, beginning of the period | 3,075 | 1,944 |
Cash and cash equivalents, end of the period | 1,623 | 3,075 |
Cash paid for: Interest | 4,209 | 6,812 |
Cash paid for: Income taxes | ' | ' |
Note_1_Description_of_Business
Note 1 - Description of Business and Summary of Accounting Principles | 12 Months Ended |
Apr. 30, 2014 | |
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”, or the “Company”) is a provider of subscription services, advertising and digital goods using technology distribution platforms like the Internet and mobile devices in the media and entertainment markets. Most of the Company’s revenues are derived from customers worldwide who subscribe to a chess website that allows them to play ranked chess games against international competitors, or against various levels of artificial intelligence embedded in the Company’s online chess software. | |
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 Company’s 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 Company’s 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 maintain our online sites 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 2014 and 2013, 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 2014 and 2013. | |
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 estimates relates to the accruals for unbilled legal services and 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 revenue 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, 2014 and 2013, the Company’s secured debt was carried at its face value plus accrued interest. In July 2014, the Company renegotiated its secured related party debt and one related party note, 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 | |
On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities (Topic 915). Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders equity, (2) label the financial statements as those of a development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any annual or interim reporting period for which the financial statements have yet to be issued. The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information on the respective financial statements. | |
The Company does not expect any other recent accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Note_2_Going_Concern_Matters_a
Note 2 - Going Concern Matters and Realization of Assets | 12 Months Ended | ||
Apr. 30, 2014 | |||
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, 2014, had negative working capital of $284,226 and a stockholders’deficit of $710,511. 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 Company’s 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 Company’s 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. Management’s 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 other 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. | ||
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, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Note 4 - Principal Financing Arrangements | ' | ||||||||||||
3. Debt | |||||||||||||
The following table summarizes components debt as of April 30, 2014 and 2013: | |||||||||||||
2014 | 2013 | Interest Rate | |||||||||||
Secured lender (majority shareholder) | $ | 93,219 | $ | 69,254 | 8 | % | |||||||
Notes payable – related parties | 350,116 | 348,066 | 3 | % | |||||||||
Demand note payable | 16,000 | 15,000 | 0 | % | |||||||||
Loan payable - bank | 48,469 | 50,229 | 5.5 | % | |||||||||
Total Debt | $ | 507,804 | $ | 482,549 | |||||||||
As of April 30, 2014 and 2013, the Company owed its principal lender (“Lender”) $93,219 and $69,254, 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 $250,000, and interest on the Loan has been accrued and added to the principal balance of the Loan. The Lender is also the majority shareholder of the Company, owning 271,673,207 shares of common stock, or 54% of the 500,000,000 shares issued and outstanding. | |||||||||||||
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, 2014 and 2013, the Company’s related-party unsecured notes payable totaled $350,116 and $348,066, respectively. The majority of this debt is owed to a former board member, who is a 10% shareholder, for a $314,000 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 $48,469 and $50,229 as of April 30, 2014 and 2013, 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 $16,000 and $15,000 at April 30, 2014 and 2013, respectively. |
Note_4_Fair_Value_Measurements
Note 4 - Fair Value Measurements | 12 Months Ended |
Apr. 30, 2014 | |
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 Company’s 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 management’s 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, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Note 5 - Income Taxes | ' | ||||||||
5. Income Taxes | |||||||||
At April 30, 2014, the Company had net operating loss carryforwards for Federal income tax purposes of approximately $1,060,000 expiring in the years of 2015 through 2030. Utilization of the net operating losses may be subject to annual limitations provided by Section 382 of the Internal Revenue Code and similar State provisions. | |||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2014 and 2013 were as follows: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets, net: | |||||||||
Net operating loss carryforwards | $ | 1,060,000 | $ | 1,032,000 | |||||
Valuation allowance | 1,060,000 | 1,032,000 | |||||||
Net deferred assets | $ | — | $ | — | |||||
The valuation allowance increased to $1,060,000 at April 30, 2014 from $1,032,000 at April 30, 2013. | |||||||||
The following is a reconciliation of the tax provisions for the years ended April 30, 2014 and 2013 with the statutory Federal income tax rates: | |||||||||
Percentage of Pre-Tax Income | |||||||||
2014 | 2013 | ||||||||
Statutory Federal income tax rate | (34.0 | )% | (34.0 | )% | |||||
Loss generating no tax benefit | 34 | 34 | |||||||
Effective tax rate | — | — | |||||||
The Company did not have any material unrecognized tax benefits as of April 30, 2014 and 2013. The Company does not expect the unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company recorded no interest and penalties relating to unrecognized tax benefits as of and during the years ended April 30, 2014 and 2013. The Company is subject to U.S. federal income tax, as well as taxes by various state jurisdictions. The Company is currently open to audit under the statute of limitations by the federal and state jurisdictions for the years ending April 30, 2011 through 2014. |
Note_6_Commitments_and_Conting
Note 6 - Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2014 | |
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, 2014 | |
Equity [Abstract] | ' |
Note 7 - Stockholders' Deficit | ' |
7. Stockholders’(Deficit) | |
The Company is authorized to issue 500,000,000 shares of its common stock, par value $0.001. 500,000,000 shares were outstanding as of April 30, 2014 and 2013, and no shares were issued during the fiscal years ended April 30, 2014 or 2013. No warrants, options or other convertible securities are outstanding at April 30, 2014 and 2013. The Company’s board of directors and majority shareholder have approved an increase in the authorized shares to 900,000,000 pending approval from FINRA. |
Note_8_Loss_Per_Common_Share
Note 8 - Loss Per Common Share | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Note 8 - Loss Per Common Share | ' | ||||||||
8. Loss Per Common Share | |||||||||
Loss per common share data was computed as follows: | |||||||||
2014 | 2013 | ||||||||
Net loss | $ | (27,986 | ) | $ | (26,370 | ) | |||
Weighted average common | 500,000,000 | 500,000,000 | |||||||
shares outstanding | |||||||||
Effect of dilutive securities | — | — | |||||||
Weighted average dilutive | 500,000,000 | 500,000,000 | |||||||
common shares outstanding | |||||||||
Loss per common share – basic | $ | (.00 | ) | $ | (.00 | ) | |||
Loss per common share – diluted | $ | (.00 | ) | $ | (.00 | ) | |||
Note_9_Related_Party_Transacti
Note 9 - Related Party Transactions | 12 Months Ended |
Apr. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Note 9 - Related Party Transactions | ' |
9. Related Party Transactions | |
The Company’s majority shareholder is also its principal lender. As of April 30, 2014 and 2013, the Company owed its majority shareholder, under a secured lending agreement, $93,219 and $69,254, respectively. The maximum amount of the loan is $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 majority shareholder of the Company owns 271,673,207 shares of common stock, or 54% of the 500,000,000 shares issued and outstanding. | |
A former director of the Company and founder of Valuesetters, Inc., which merged with the Company in December 2003, has personally guaranteed bank debt of $48,469 and $50,229, as of April 30, 2014 and 2013, respectively and credit card debt of $22,947 and $28,298 as of April 30, 2014 and 2013, respectively. In addition to the personal guarantees, the Company owes him $412,371 and $400,429 as of April 30, 2014 and 2013, respectively, for loans, interest payable and unpaid expenses. | |
The Company owes a second director $31,680 as of April 30, 2014 and 2013. | |
The Company owes a third director $15,000 as of April 30, 2014 and 2013. | |
The Company owes its Chief Executive Officer and Chairman of the board of directors $2,050 as of April 30, 2014. |
Note_10_Subsequent_Events
Note 10 - Subsequent Events | 12 Months Ended | ||
Apr. 30, 2014 | |||
Subsequent Events [Abstract] | ' | ||
Note 10 - Subsequent Events | ' | ||
10 | Subsequent Events | ||
The Company has analyzed its operations subsequent to April 30, 2014 through the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose | |||
Note_1_Description_of_Business1
Note 1 - Description of Business and Summary of Accounting Principles (Policies) | 12 Months Ended |
Apr. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business and Concentrations | ' |
Description of Business and Concentrations | |
Valuesetters, Inc. (“Valuesetters”, or the “Company”) is a provider of subscription services, advertising and digital goods using technology distribution platforms like the Internet and mobile devices in the media and entertainment markets. Most of the Company’s revenues are derived from customers worldwide who subscribe to a chess website that allows them to play ranked chess games against international competitors, or against various levels of artificial intelligence embedded in the Company’s online chess software. | |
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 Company’s 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 Company’s 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 maintain our online sites 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 2014 and 2013, 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 2014 and 2013. | |
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 estimates relates to the accruals for unbilled legal services and 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 revenue 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, 2014 and 2013, the Company’s secured debt was carried at its face value plus accrued interest. In July 2014, the Company renegotiated its secured related party debt and one related party note, 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 | |
On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities (Topic 915). Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders equity, (2) label the financial statements as those of a development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any annual or interim reporting period for which the financial statements have yet to be issued. The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information on the respective financial statements. | |
The Company does not expect any other recent accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Note_3_Debt_Tables
Note 3 - Debt (Tables) | 12 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
2014 | 2013 | Interest Rate | |||||||||||
Secured lender (majority shareholder) | $ | 93,219 | $ | 69,254 | 8 | % | |||||||
Notes payable – related parties | 350,116 | 348,066 | 3 | % | |||||||||
Demand note payable | 16,000 | 15,000 | 0 | % | |||||||||
Loan payable - bank | 48,469 | 50,229 | 5.5 | % | |||||||||
Total Debt | $ | 507,804 | $ | 482,549 |
Note_5_Income_Taxes_Tables
Note 5 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Note 5 - Income Taxes Tables | ' | ||||||||
Deferred tax assets and liabilities | ' | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets, net: | |||||||||
Net operating loss carryforwards | $ | 1,060,000 | $ | 1,032,000 | |||||
Valuation allowance | 1,060,000 | 1,032,000 | |||||||
Net deferred assets | $ | — | $ | — | |||||
Tax provisions | ' | ||||||||
Percentage of Pre-Tax Income | |||||||||
2014 | 2013 | ||||||||
Statutory Federal income tax rate | (34.0 | )% | (34.0 | )% | |||||
Loss generating no tax benefit | 34 | 34 | |||||||
Effective tax rate | — | — |
Note_8_Loss_Per_Common_Share_T
Note 8 - Loss Per Common Share (Tables) | 12 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per share | ' | ||||||||
2014 | 2013 | ||||||||
Net loss | $ | (27,986 | ) | $ | (26,370 | ) | |||
Weighted average common | 500,000,000 | 500,000,000 | |||||||
shares outstanding | |||||||||
Effect of dilutive securities | — | — | |||||||
Weighted average dilutive | 500,000,000 | 500,000,000 | |||||||
common shares outstanding | |||||||||
Loss per common share – basic | $ | (.00 | ) | $ | (.00 | ) | |||
Loss per common share – diluted | $ | (.00 | ) | $ | (.00 | ) |
Note_2_Going_Concern_Details
Note 2 - Going Concern (Details) (USD $) | Apr. 30, 2014 |
Note 2 - Going Concern Details | ' |
Working capital | ($284,226) |
Stockholders' equity deficit | ($710,511) |
Note_3_Debt_Details
Note 3 - Debt (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Debt Disclosure [Abstract] | ' | ' |
Secured lender (majority shareholder) | $93,219 | $69,254 |
Notes payable- related parties | 350,116 | 348,066 |
Demand note payable | 16,000 | 15,000 |
Loan payable - bank | 48,469 | 50,229 |
Total Debt | $507,804 | $482,549 |
Note_3_Debt_Details_Parentheti
Note 3 - Debt (Details) (Parenthetical) (USD $) | Apr. 30, 2014 |
Secured lender (majority shareholder) | ' |
Interest Rate | 8.00% |
Borrowing amount | $250,000 |
Common shares, held | 271,673,207 |
Ownership | 54.00% |
Demand note payable- related parties | ' |
Interest Rate | 3.00% |
Ownership | 10.00% |
Demand note payable | ' |
Interest Rate | 0.00% |
Due to bank | ' |
Interest Rate | 5.50% |
Note_3_Debt_Details_Narrative
Note 3 - Debt (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Note payable to Board Member | $314,000 | $314,000 |
Guaranteed line of credit | 50,000 | 50,000 |
Line of credit payable | 48,469 | 50,229 |
Principal payments | $220 | ' |
Interest rate | 5.50% | ' |
Note_5_Income_Taxes_Details_Na
Note 5 - Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Operating loss carryforward | $1,060,000 | $1,032,000 |
Expiration | 30-Apr-15 | ' |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
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 | ' | ' |
Note_7_Stockholders_Equity_Def
Note 7 - Stockholders' Equity (Deficit) (Details Narrative) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Equity [Abstract] | ' | ' |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, par value | $0.00 | $0.00 |
Increase in Common stock, share | 900,000,000 | ' |
Note_8_Loss_Per_Common_Share_D
Note 8 - Loss Per Common Share (Details) (USD $) | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Note 8 - Loss Per Common Share Details | ' | ' |
Net loss | ($27,986) | ($26,370) |
Weighted average common shares outstanding | 500,000,000 | 500,000,000 |
Effect of dilutive securities | ' | ' |
Weighted average dilutive common shares outstanding | 500,000,000 | 500,000,000 |
Loss per common share-basic | $0 | $0 |
Loss per common share-diluted | $0 | $0 |
Note_9_Related_Party_Transacti1
Note 9 - Related Party Transactions (Details Narrative) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Secured lender (majority shareholder) | $93,219 | $69,254 |
Loan payable - bank | 48,469 | 50,229 |
Credit card debt | 22,947 | 28,298 |
Due to Related Party | 350,116 | 348,066 |
Director | ' | ' |
Due to Related Party | 412,371 | 400,429 |
Second Director | ' | ' |
Due to Related Party | 31,680 | 31,680 |
Third Director | ' | ' |
Due to Related Party | 15,000 | 15,000 |
Chief Executive Officer and Chairman of the board of directors | ' | ' |
Due to Related Party | 2,050 | ' |
Secured lender (majority shareholder) | ' | ' |
Borrowing amount | $250,000 | ' |
Common shares, held | 271,673,207 | ' |
Ownership | 54.00% | ' |