Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2017 | Mar. 28, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | MMEX Resources Corp | |
Entity Central Index Key | 1,440,799 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2017 | |
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 | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,479,282,834 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Current assets: | ||
Cash | $ 82 | $ 1,030 |
Total current assets | 82 | 1,030 |
Property and equipment, net | 386 | |
Total assets | 82 | 1,416 |
Current liabilities: | ||
Accounts payable | 659,640 | 651,188 |
Accounts payable - related party | 9,010 | |
Accrued expenses | 877,801 | 984,387 |
Accrued expenses - related party | 69,108 | 64,420 |
Notes payable, currently in default | 375,000 | 375,000 |
Convertible notes payable, currently in default, net of discount of $2,594 and $0 at January 31, 2017 and April 30, 2016, respectively | 221,089 | 195,001 |
Convertible preferred stock, currently in default | 137,500 | 137,500 |
Derivative liabilities | 48,062 | 395,619 |
Total current liabilities | 2,397,210 | 2,803,115 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Common stock; $0.001 par value, 3,000,000,000 shares authorized, 911,923,522 and 180,432,013 shares issued and outstanding at January 31, 2017 and April 30, 2016, respectively | 911,924 | 180,434 |
Common stock payable | 291,668 | 3,395,483 |
Additional paid-in capital | 26,830,796 | 24,154,130 |
Non-controlling interest | (377,989) | (376,619) |
Accumulated (deficit) | (30,053,527) | (30,155,127) |
Total stockholders' deficit | (2,397,128) | (2,801,699) |
Total liabilities and stockholders' deficit | $ 82 | $ 1,416 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Current liabilities: | ||
Convertible notes, net of discount currently in default | $ 2,594 | $ 0 |
Stockholders' deficit: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, Issued | 911,923,522 | 180,432,013 |
Common stock, outstanding | 911,923,522 | 180,432,013 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Condensed Consolidated Statements Of Operations | ||||
Revenues | ||||
Operating Expenses: | ||||
General and administrative expenses | 21,759 | 60,525 | 148,000 | 194,612 |
Depreciation and amortization | 363 | 386 | 1,624 | |
Total operating expenses | 21,759 | 60,888 | 148,386 | 196,236 |
Loss from operations | (21,759) | (60,888) | (148,386) | (196,236) |
Other income (expense): | ||||
Interest expense | (97,436) | (36,169) | (214,375) | (493,166) |
Gain (loss) on derivative liabilities | 222,080 | 1,026,919 | 255,188 | (247,849) |
Gain (loss) on extinguishment of liabilities | 207,803 | 207,803 | (1,365,521) | |
Total other income (expense) | 332,447 | 990,750 | 248,616 | (2,106,536) |
Income (loss) before income taxes | 310,688 | 929,862 | 100,230 | (2,302,772) |
Provision for income taxes | ||||
Net income (loss) | 310,688 | 929,862 | 100,230 | (2,302,772) |
Non-controlling interest in loss of consolidated subsidiaries | 455 | 460 | 1,370 | 1,384 |
Net income (loss) attributable to the Company | $ 311,143 | $ 930,322 | $ 101,600 | $ (2,301,388) |
Weighted average number of common shares outstanding | ||||
Basic | 579,136,120 | 167,031,611 | 442,361,280 | 93,789,412 |
Diluted | 636,500,120 | 167,051,758 | 449,531,780 | 93,789,412 |
Net income (loss) per common share - basic and diluted | $ 0 | $ 0.01 | $ 0 | $ (0.02) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) attributable to the Company | $ 101,600 | $ (2,301,388) |
Non-controlling interest in loss of consolidated subsidiaries | (1,370) | (1,384) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 386 | 1,624 |
Stock-based compensation | 47,254 | |
(Gain) loss on derivative liabilities | (255,188) | 247,849 |
(Gain) loss on extinguishment of liabilities | (207,803) | 1,365,521 |
Amortization of debt discount | 61,320 | 375,617 |
Amortization of deferred loan costs | 8,822 | |
Increase (decrease) in liabilities: | ||
Accounts payable | 23,187 | 2,515 |
Accrued expenses | 106,321 | 229,279 |
Net cash used in operating activities | (124,293) | (71,545) |
Cash flows from investing activities | ||
Decrease in deposits | 10,000 | |
Net cash provided by investing activities | 10,000 | |
Cash flows from financing activities | ||
Proceeds from common stock payable | 37,563 | 65,000 |
Proceeds from issuance of common stock | 1,000 | |
Proceeds from convertible notes payable | 84,782 | |
Net cash provided by financing activities | 123,345 | 65,000 |
Net increase (decrease) in cash | (948) | 3,455 |
Cash at the beginning of the period | 1,030 | 141 |
Cash at the end of the period | 82 | 3,596 |
Supplemental disclosures: | ||
Interest paid | ||
Income taxes paid | ||
Common stock for common stock payable | 236,783 | |
Additional paid-in capital for common stock payable | 2,827,549 | |
Notes payable converted to common stock | 56,100 | |
Derivative liabilities converted to common stock | 156,283 | |
Common stock payable contributed to capital | 90,000 | |
Derivative liabilities for debt discount | 63,914 | |
Common stock for accounts payable | 5,725 | |
Common stock for accrued expenses | 208,219 | |
Adjustment to common stock and additional paid-in capital | (39) | |
Accrued expenses contributed to capital | 2,063,468 | |
Preferred stock and accrued dividends converted to common stock payable | (1,410,685) | |
Notes payable converted to common stock payable | 1,950,000 | |
Notes payable – related party contributed to capital | $ 149,253 |
BACKGROUND, ORGANIZATION AND BA
BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 1 - BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION | MMEX Resources Corporation (the Company or MMEX) was formed in the State of Nevada on May 19, 2005 as Inkie Entertainment Group, Inc. Subsequently, the Company amended its articles of incorporation to change its name to MMEX Resources Corporation and to authorize the Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares. The changes in the number of authorized shares of the Company have been given retroactive effect in the accompanying consolidated financial statements. The Board of Directors of the Company has decided to focus efforts on the oil, gas, refining and electric power business in the United States and Latin America. The accompanying condensed consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership: Name of Entity % Form of Entity State of Incorporation Relationship MMEX Resources Corporation (MMEX) - Corporation Nevada Parent MCC Merger, Inc. (MCCM) 100 % Corporation Delaware Holding Subsidiary Maple Carpenter Creek Holdings, Inc. (MCCH) 100 % Corporation Delaware Subsidiary Maple Carpenter Creek, LLC (MCC) 80 % LLC Nevada Subsidiary Carpenter Creek, LLC (CC) 95 % LLC Delaware Subsidiary Armadillo Holdings Group Corp. (AHGC) 100 % Corporation British Virgin Isles Subsidiary Armadillo Mining Corp. (AMC) 98.6 % Corporation British Virgin Isles Subsidiary As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the Trust), whose beneficiaries are the existing shareholders of MMEX. The accounts of AMC are included in the consolidated financial statements due to the common ownership. AMC through the Trust controls the Hunza coal interest previously owned by the Company. On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (LatAm) pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan. All significant inter-company transactions have been eliminated in the preparation of the consolidated financial statements. These financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the information contained therein. The Company has adopted a fiscal year end of April 30. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Our significant accounting policies are described in our Annual Report on Form 10-K for the year ended April 30, 2016 filed with the SEC on January 13, 2017. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and 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. Actual results could differ from those estimates. Derivative liabilities In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We have also identified the conversion feature of one of our convertible notes payable as a derivative. We estimate the fair value of the derivatives using the Black-Scholes option pricing model and multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and managements estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material. Fair value of financial instruments Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, Financial Instruments, An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: January 31, 2017 Total Level 1 Level 2 Level 3 Derivative liabilities $ 48,062 $ - $ - $ 48,062 April 30, 2016 Total Level 1 Level 2 Level 3 Derivative liabilities $ 395,619 $ - $ - $ 395,619 Basic and diluted loss per share Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the three months ended January 31, 2017 and 2016 and the nine months ended January 31, 2017, potential dilutive securities included 57,364,000, 20,147 and 7,170,500 shares issuable for in-the-money warrants and shares issuable for convertible debt, respectively, using the treasury stock method. For the nine months ended January 31, and 2016, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share. Issuance of shares for non-cash consideration The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. Reclassifications Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year periods presentation. Recently Issued Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-4, Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting units goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In January 2017, the FASB issued ASU No. 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU are effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update are to be applied prospectively on or after the effective date. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In October 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties That are Under Common Control. This update amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (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 primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim 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. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 3 - GOING CONCERN | Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $30,053,527 and a total stockholders deficit of $2,397,128 at January 31, 2017, and have reported negative cash flows from operations since inception. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months, and we expect to have ongoing requirements for capital investment to implement our business plan. Finally, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which we operate. Since inception, our operations have primarily been funded through private debt and equity financing, as well as capital contributions by our subsidiaries' partners, and we expect to continue to seek additional funding through private or public equity and debt financing. Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our operations will be adequate to meet our needs. These factors, among others, indicate that we may be unable to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 4 - RELATED PARTY TRANSACTIONS | During the past few years, Tydus Richards, the former Chairman of our board of directors and shareholder, made certain payments on behalf of the Company. The Company has partially reimbursed Mr. Richards for these advances. As of January 31, 2017 and April 30, 2016, a remaining balance payable of $31,633 is included in accrued expenses related party. On October 9, 2014, convertible notes payable in default to an accredited investor of $1,650,000, $120,000 and $180,000 were assigned to The Maple Gas Corporation, a related party owned by Mr. Jack W. Hanks, a director and officer of the Company. On May 8, 2015, The Maple Gas Corporation converted the notes into 194,999,999 common shares of the Company at $0.01 per share, which resulted in a loss on extinguishment of debt of $975,000. The issuance of the common shares to Maple Structure Holdings was approved by the Companys Board of Directors Resolution dated May 18, 2015, and the shares were issued on May 2, 2016. At April 30, 2016, common stock payable included an obligation of $2,925,000 for the issuance of the shares. Accounts payable to related parties, comprised of amounts payable to The Maple Gas Corporation, totaled $9,010 and $0 at January 31, 2017 and April 30, 2016, respectively. Accrued expenses (see Note 6) to related parties totaled $69,108 and $64,420 as of January 31, 2017 and April 30, 2016, respectively. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 5 - PROPERTY AND EQUIPMENT | Property and equipment consisted of the following at: January 31, 2017 April 30, 2016 Computer software and hardware $ 25,023 $ 25,023 Less accumulated depreciation and amortization (25,023 ) (24,637 ) $ - $ 386 Depreciation and amortization expense totaled $0 and $363 for the three months ended January 31, 2017 and 2016, respectively, and $386 and $1,624 for the nine months ended January 31, 2017 and 2016, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 6 - ACCRUED EXPENSES | Accrued expenses consisted of the following at: January 31, 2017 April 30, 2016 Accrued payroll $ 30,090 $ 240,309 Accrued consulting 75,633 75,633 Accrued interest 778,645 670,324 Other 62,541 62,541 $ 946,909 $ 1,048,807 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 7 - NOTES PAYABLE | Notes payable, currently in default, consist of the following at: January 31, 2017 April 30, 2016 Note payable to an unrelated party, maturing July 15, 2010, with interest at 10% $ 300,000 $ 300,000 Note payable to an unrelated party, maturing December 31, 2010, with interest at 10% 25,000 25,000 Note payable to an unrelated party, maturing January 27, 2012, with interest at 25% 50,000 50,000 $ 375,000 $ 375,000 Accrued interest payable on notes payable, currently in default, totaled $307,415 and $276,477 at January 31, 2017 and April 30, 2016, respectively. Convertible notes payable, currently in default, consist of the following at: January 31, 2017 April 30, 2016 Note payable to an accredited investor, maturing March 1, 2013, with interest at 1.87% per month, $ 120,000 $ 120,000 Note payable to an unrelated party, maturing March 18, 2014, with interest at 10% 75,001 75,001 Note payable pursuant to Settlement Agreement, non- interest bearing, repaid in March 2017 (Note 13), net of discount of $2,594 26,088 - Total $ 221,089 $ 195,001 Accrued interest payable on convertible notes payable, currently in default, totaled $137,879 and $112,058 at January 31, 2017 and April 30, 2016, respectively. On January 2, 2013, the Company closed a note purchase agreement with an accredited investor pursuant to which the Company sold a $120,000 note in a private placement transaction. The note was due and payable on March 1, 2013, is currently in default and carries a monthly interest rate of 1.87%. The note purchase agreement included the issuance of 300,000 shares of the Companys common stock. The note is secured with 900,000 shares of the Companys common stock owned by Jack W. Hanks, the Companys President and CEO. The 300,000 shares were valued at $0.10 per share, the closing price of the Companys common stock on January 2, 2013, and recorded as a $30,000 increase to debt discount and an increase to common stock payable. The Company allocated the proceeds from the issuance of the notes to the warrants when applicable and to the notes based on their estimated fair market values at the date of issuance using the Black-Scholes option pricing model. The debt discount resulting from interest and the value of warrants computed at the inception of the notes payable was amortized as additional interest expense over the term of the notes. On October 28, 2016, the Company entered into a Settlement Agreement and Stipulation (the Settlement Agreement) with Rockwell Capital Partners, Inc. (RCP). Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables between the Company and designated vendors totaling $84,782 (the Payables or Claims) and will exchange the portion of such Payables assigned for a Settlement Amount payable in common shares of the Company. In settlement of the Claims, the Company shall issue and deliver to RCP, in one or more tranches as necessary, shares of the Companys common stock (Common Stock), subject to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to satisfy the Claims amount at a 50% discount to market based on the market price during the valuation period as defined in the Settlement Agreement. We identified this conversion feature as a derivative and have estimated the fair value of the derivative using the Black-Scholes option pricing model. The Company also issued 7,000,000 shares of Common Stock as a settlement fee on October 31, 2016. On October 28, 2016, a circuit court in Florida issued an order confirming the fairness of the terms of the Settlement Agreement within the meaning of exemption from registration provided by Section 3(a) (10) of the Securities Act of 1933. The Companys creditors received a total of $84,782 pursuant to the Settlement Agreement, and through January 31, 2017, the Company issued to RCP a total of 452,000,000 shares of the Companys common stock in conversion of $56,100 note principal. Subsequent to January 31, 2017, the Settlement Agreement was terminated (see Note 13). |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 8 - CONVERTIBLE PREFERRED STOCK | Convertible Preferred Stock, Currently in Default On June 30, 2011, the Company issued 360,000 shares of Armadillo Mining Corporation Preferred Stock to five unrelated parties in exchange for an investment of $360,000. The Preferred Stock carry a 25% cumulative dividend and have a mandatory redemption feature on December 31, 2011 at a price of $1.25 per share. In addition, the Company issued 360,000 warrants to purchase shares of the Companys common stock at an exercise price of $0.60 per share on or before three years from the repayment or conversion date. On January 6, 2012, three unrelated parties converted their Preferred Stock and accrued dividends of $312,500 into 2,983,293 shares of the Companys common stock at a price of $.10475 per share. As the conversion took place at below the market price and not within the terms of the agreement on the date of conversion, a loss of $75,328 was recorded. As of January 31, 2017 and April 30, 2016, the remaining face value of the Preferred Stock was $137,500. Accrued dividends on the Preferred Stock totaled $333,351 and $281,789 as of January 31, 2017 and April 30, 2016, respectively. The Company recorded interest expense, which included amortization of debt discount on certain debt in prior years, totaling $36,118 and $36,169 for the three months ended January 31, 2017, respectively, and $153,055 and $493,166 for the nine months ended January 31, 2017 and 2016, respectively. |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 9 - DERIVATIVE LIABILITIES | In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We have also identified the variable conversion price feature of our convertible note payable issued in the Settlement Agreement as a derivative. During the nine months ended January 31, 2017, we had the following activity in our derivative liabilities: Balance, April 30, 2016 $ 395,619 Derivative liabilities recorded as debt discount 63,914 Debt conversions (156,283 ) Change in fair value of derivative liabilities (255,188 ) Balance, January 31, 2017 $ 48,062 The Company calculated the fair value of the derivatives associated with warrants using a multinomial lattice model simulation. The model is based on a probability weighted discounted cash flow model using projections of the various potential outcomes. Key inputs and assumptions used in valuing the Companys derivative liabilities are as follows for issuances of warrants: · Stock prices on all measurement dates were based on the fair market value · Risk-free interest rates ranging from 1.49% 1.54% · The probability of future financing was estimated at 100% · Computed volatility ranging from 104% to 109% We calculated the fair value of the derivatives associated with the Settlement Agreement using the Black-Scholes option pricing model. Key inputs and assumptions in valuing the Companys derivative liabilities are as follows for convertible note payable: · Stock prices on all measurement dates were based on the fair market value · Risk-free interest rates ranging from 0.35% 0.53% · Computed volatility ranging from 172% 396% · Dividend yield was assumed at 0% · Years to maturity ranging from .10 .35 years · Conversion price of debt ranging from $0.00005 $0.00245 per share These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material. |
STOCKHOLDERS DEFICIT
STOCKHOLDERS DEFICIT | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 10 - STOCKHOLDERS DEFICIT | Authorized Shares As of April 6, 2016, the Company amended its articles of incorporation to increase its authorized shares to 1,000,000,000 common shares and 10,000,000 preferred shares, and as of November 29, 2016, increased its authorized common shares to 3,000,000,000 shares. The increase in authorized shares has been given retroactive effect in the accompanying condensed consolidated financial statements for all periods presented. Stock Issuances During the nine months ended January 31, 2017, the Company issued a total of 731,491,509 shares of its common stock: 194,999,999 shares in conversion of notes payable in default of $2,925,000; 41,784,320 shares in a private placement for $118,230 cash and $60,000 in services; 7,000,000 shares as a fee valued at $34,300 and 452,000,000 shares in conversion of $56,100 note principal pursuant to the Settlement Agreement (Note 7) and $156,283 in associated derivative liabilities; 5,000,000 shares for cash of $1,000, 2,082,190 shares in settlement of accrued expenses of $208,219 and 28,625,000 shares in payment of accounts payable for services of $5,725. On May 2, 2016, the Company issued 194,999,999 shares of its common stock to a related party pursuant to the conversion of notes payable in default (see Note 4), reducing stock subscriptions payable by $2,925,000. The Company initiated in fiscal year 2016 a private placement to qualified investors for cash and services. A total of $118,230 cash and $60,000 in services was received, including $49,200 cash from related parties, for a total of 41,784,320 common shares of the Company and a total of 43,025,313 warrants. The warrants entitle the investors to purchase common shares at exercise prices of $0.0001 and $0.01 per share through March 1, 2022. Of the common shares issued, 1,096,397 shares were issued in July 2016, 27,740,423 shares were issued in December 2016 and 12,947,500 shares were issued in January 2017. On October 31, 2016, the Company issued 7,000,000 shares of its common stock as a fee valued at $34,300 to an institution lender pursuant to a Settlement Agreement (see Note 7). During November 2016 through January 31, 2017, the Company issued the lender a total of 452,000,000 shares of the Companys common stock in conversion of $56,100 note principal. On January 19, 2017, the Company issued 5,000,000 shares of its common stock to an investor for $1,000 cash. On January 24, 2017, the Company entered into an agreement with a former employee to issue 2,082,190 shares of the Companys common stock in settlement of accrued salaries of $208,219, and recognized a gain on extinguishment of liabilities of $207,803. On January 24, 2017, the Company issued 28,625,000 shares of its common stock to a consultant in payment of services valued at $5,725. Stock Options On March 7, 2012, the Company issued a total of 2,000,000 stock options exercisable at $0.35 per share for a period of ten years from the date of grant. The Company did not grant any stock options during the nine months ended January 31, 2017. A summary of stock option activity during the nine months ended January 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding, April 30, 2016 2,000,000 $ 0.35 5.85 Granted - - Canceled / Expired - - Exercised - - Outstanding, January 31, 2017 2,000,000 $ 0.35 5.10 The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which value is amortized to stock-based compensation expense over the vesting period of the options. No stock-based compensation expense was recorded during the three months and nine months ended January 31, 2017 and 2016 related to stock option grants. There was no unrecognized stock option expense at January 31, 2017. Warrants The Company has issued warrants to qualified investors in a private placement, for debt discounts or other stock-based compensation. These warrants generally vest upon grant and are valued using the Black-Scholes option pricing model or multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. A summary of warrant activity during the nine months ended January 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding, April 30, 2016 11,522,170 $ 0.01 5.84 Granted 65,138,143 $ 0.01 Canceled / Expired - - Exercised - - Outstanding, January 31, 2017 76,660,313 $ 0.01 5.04 Common Stock Reserved At January 31, 2017, 76,660,313 shares of the Companys common stock were reserved for issuance of outstanding warrants. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 11 - NON-CONTROLLING INTERESTS | On September 23, 2010, the Company, through a reverse merger, acquired 100% of the outstanding shares of Maple Carpenter Creek Holdings, Inc., ("MCCH"), a holding Company, with an 80% interest in Maple Carpenter Creek, LLC ("MCC"), which in turn owned a 95% interest in the subsidiary, Carpenter Creek, LLC ("CC"), and a 98.12% interest in Armadillo Holdings Group Corp. ("AHGC"), which in turn owned an 80% interest in Armadillo Mining Corp. ("AMC"). The non-controlling interest of 1.88% in AHGC was acquired by MCCH on December 21, 2010 in exchange for 31,334 shares of the Companys common stock resulting in 100% ownership of AHGC. On March 22, 2011, AHGC acquired 14.6% of AMC and on April 30, 2012, an additional 4% interest for a total of 98.6% based upon agreement with the minority interest holder to reduce their interest based upon proportionate share of additional capital contributed to AMC. As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the "Trust"), whose beneficiaries are the existing shareholders of MMEX. AMC through the Trust controls the Hunza coal interest previously owned by the Company. On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (LatAm), a related party, pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 12 - COMMITMENTS AND CONTINGENCIES | Legal There were no legal proceedings against the Company. Operating Lease Commitments The Company acquired the Bolzer Lease pursuant to a September 23, 2010 merger. Subsequently, notice of termination on this lease effective April 26, 2010 was provided by previous management. The Company has recorded an accrued expense for the minimum lease payment of $62,541 for the January 2010 payment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jan. 31, 2017 | |
Notes to Financial Statements | |
NOTE 13 - SUBSEQUENT EVENTS | In accordance with ASC 855-10, all subsequent events have been reported through the filing date as set forth below. Refinery Transaction On March 4, 2017, MMEX Resources Corporation (the Company) entered into an agreement with Maple Resources Corporation (Maple), a related party, to acquire all of Maples right, title and interest (the Rights) in plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the Refinery Transaction or the Project). Pursuant to the Refinery Transaction, the Company agreed to acquire the Rights in exchange for the issuance of 7,000,000,000 new common shares (the Purchased Shares). The Refinery Transaction provides for the Company to issue the Purchased Shares in two tranches, of which the First Tranche of 1,500,000,000 shares was issued on March 4, 2017. The Second Tranche of 5,500,000,000 shares is to be issued once the Companys Articles of Incorporation are amended to increase the number of authorized shares of common stock, as more particularly described below. In addition, the Second Tranche amount of shares will be adjusted (up or down) subject to valuation of the Refinery Transaction by a third party outside consultant. Completion of the Project is subject to the receipt of required governmental permits and completion of required debt and equity financing. Amendment of Articles of Incorporation On March 7, 2017, the holders of more than 50.1% of the outstanding shares of common stock of the Company executed their written consent in lieu of special meeting approving an amendment and restatement of the articles of incorporation to provide for an increase in the authorized shares of common stock from 3,000,000,000 to 10,000,000,000 shares. In addition, the articles of incorporation will be amended to provide for two classes of common shares: (i) Class A Shares, having one vote per share, and (ii) Class B Shares, with 10 votes per share. All of the currently outstanding shares of common stock will be reclassified as Class A Shares, except that all of the Purchased Shares issued or to be issued in the Refinery transaction will be Class B Shares. Other than the provisions of the voting rights, the two classes of shares of common stock will have equal terms and conditions. As of the date of filing of this report, the amendment to the articles of incorporation creating two classes of common shares has not been filed. Settlement Agreement As discussed in Note 7, on October 28, 2016, the Company entered into a Settlement Agreement with RCP. Pursuant to the Settlement Agreement, as amended, RCP purchased a total of $84,782 outstanding payables from the Company for shares of common stock of the Company. During November 2016 through January 2017, we have issued a cumulative total of 452,000,000 common shares pursuant to the Settlement Agreement and, as of March 9, 2017, we issued an additional 37,000,000 common shares and have terminated any further obligation to issue shares. Our creditors will not receive further funding from the Settlement Agreement. Other Common Shares Issued Subsequent to January 31, 2017, the Company issued a total of 27,727,733 shares of its common stock to investors for cash of $15,500 and 2,631,579 shares of its common stock to a consultant for services valued at $9,737. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING (POLICIES) | 9 Months Ended |
Jan. 31, 2017 | |
Summary Of Significant Accounting Policies Policies | |
Use of estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and 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. Actual results could differ from those estimates. |
Derivative liabilities | In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We have also identified the conversion feature of one of our convertible notes payable as a derivative. We estimate the fair value of the derivatives using the Black-Scholes option pricing model and multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and managements estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material. |
Fair value of financial instruments | Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, Financial Instruments, An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: January 31, 2017 Total Level 1 Level 2 Level 3 Derivative liabilities $ 48,062 $ - $ - $ 48,062 April 30, 2016 Total Level 1 Level 2 Level 3 Derivative liabilities $ 395,619 $ - $ - $ 395,619 |
Basic and diluted loss per share | Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the three months ended January 31, 2017 and 2016 and the nine months ended January 31, 2017, potential dilutive securities included 57,364,000, 20,147 and 7,170,500 shares issuable for in-the-money warrants and shares issuable for convertible debt, respectively, using the treasury stock method. For the nine months ended January 31, and 2016, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share. |
Issuance of shares for non-cash consideration | The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. |
Reclassifications | Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year periods presentation. |
Recently issued accounting pronouncements | In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-4, Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting units goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In January 2017, the FASB issued ASU No. 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU are effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update are to be applied prospectively on or after the effective date. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In October 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties That are Under Common Control. This update amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (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 primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim 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. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement. Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations. |
BACKGROUND, ORGANIZATION AND 20
BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Background Organization And Basis Of Presentation Tables | |
Entity operational details | The accompanying condensed consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership: Name of Entity % Form of Entity State of Incorporation Relationship MMEX Resources Corporation (MMEX) - Corporation Nevada Parent MCC Merger, Inc. (MCCM) 100 % Corporation Delaware Holding Subsidiary Maple Carpenter Creek Holdings, Inc. (MCCH) 100 % Corporation Delaware Subsidiary Maple Carpenter Creek, LLC (MCC) 80 % LLC Nevada Subsidiary Carpenter Creek, LLC (CC) 95 % LLC Delaware Subsidiary Armadillo Holdings Group Corp. (AHGC) 100 % Corporation British Virgin Isles Subsidiary Armadillo Mining Corp. (AMC) 98.6 % Corporation British Virgin Isles Subsidiary |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Summary Of Significant Accounting Policies Tables | |
Summary of derivative liabilities | Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows: January 31, 2017 Total Level 1 Level 2 Level 3 Derivative liabilities $ 48,062 $ - $ - $ 48,062 April 30, 2016 Total Level 1 Level 2 Level 3 Derivative liabilities $ 395,619 $ - $ - $ 395,619 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Property And Equipment Tables | |
Property and Equipment | Property and equipment consisted of the following at: January 31, 2017 April 30, 2016 Computer software and hardware $ 25,023 $ 25,023 Less accumulated depreciation and amortization (25,023 ) (24,637 ) $ - $ 386 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Accrued Expenses Tables | |
Accrued expenses | Accrued expenses consisted of the following at: January 31, 2017 April 30, 2016 Accrued payroll $ 30,090 $ 240,309 Accrued consulting 75,633 75,633 Accrued interest 778,645 670,324 Other 62,541 62,541 $ 946,909 $ 1,048,807 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Income Taxes Tables | |
Notes payable, currently in default | Notes payable, currently in default, consist of the following at: January 31, 2017 April 30, 2016 Note payable to an unrelated party, maturing July 15, 2010, with interest at 10% $ 300,000 $ 300,000 Note payable to an unrelated party, maturing December 31, 2010, with interest at 10% 25,000 25,000 Note payable to an unrelated party, maturing January 27, 2012, with interest at 25% 50,000 50,000 $ 375,000 $ 375,000 |
Convertible notes payable, currently in default | Convertible notes payable, currently in default, consist of the following at: January 31, 2017 April 30, 2016 Note payable to an accredited investor, maturing March 1, 2013, with interest at 1.87% per month, $ 120,000 $ 120,000 Note payable to an unrelated party, maturing March 18, 2014, with interest at 10% 75,001 75,001 Note payable pursuant to Settlement Agreement, non- interest bearing, repaid in March 2017 (Note 13), net of discount of $2,594 26,088 - Total $ 221,089 $ 195,001 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Derivative Liabilities Tables | |
Derivative liabilities | During the nine months ended January 31, 2017, we had the following activity in our derivative liabilities: Balance, April 30, 2016 $ 395,619 Derivative liabilities recorded as debt discount 63,914 Debt conversions (156,283 ) Change in fair value of derivative liabilities (255,188 ) Balance, January 31, 2017 $ 48,062 |
STOCKHOLDERS DEFICIT (Tables)
STOCKHOLDERS DEFICIT (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Changes In Stockholders Equity Deficit Tables | |
Summary of stock option activity | A summary of stock option activity during the nine months ended January 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding, April 30, 2016 2,000,000 $ 0.35 5.85 Granted - - Canceled / Expired - - Exercised - - Outstanding, January 31, 2017 2,000,000 $ 0.35 5.10 |
Summary of warrant activity | A summary of warrant activity during the nine months ended January 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding, April 30, 2016 11,522,170 $ 0.01 5.84 Granted 65,138,143 $ 0.01 Canceled / Expired - - Exercised - - Outstanding, January 31, 2017 76,660,313 $ 0.01 5.04 |
BACKGROUND, ORGANIZATION AND 27
BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Details) | 9 Months Ended |
Jan. 31, 2017 | |
State of Incorporation | Nevada |
Mmex Resources Corporation [Member] | |
Ownership Percentage | - |
Form of Entity | Corporation |
State of Incorporation | Nevada |
Relationship | Parent |
Mcc Merger Inc [Member] | |
Ownership Percentage | 100% |
Form of Entity | Corporation |
State of Incorporation | Delaware |
Relationship | Holding Subsidiary |
Maple Carpenter Creek Holdings Inc [Member] | |
Ownership Percentage | 100% |
Form of Entity | Corporation |
State of Incorporation | Delaware |
Relationship | Subsidiary |
Maple Carpenter Creek Llc [Member] | |
Ownership Percentage | 80% |
Form of Entity | LLC |
State of Incorporation | Nevada |
Relationship | Subsidiary |
Carpenter Creek Llc [Member] | |
Ownership Percentage | 95% |
Form of Entity | LLC |
State of Incorporation | Delaware |
Relationship | Subsidiary |
Armadillo Holdings Group Corp [Member] | |
Ownership Percentage | 100% |
Form of Entity | Corporation |
State of Incorporation | British Virgin Isles |
Relationship | Subsidiary |
Armadillo Mining Corp [Member] | |
Ownership Percentage | 98.6% |
Form of Entity | Corporation |
State of Incorporation | British Virgin Isles |
Relationship | Subsidiary |
BACKGROUND, ORGANIZATION AND 28
BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) | 9 Months Ended |
Jan. 31, 2017 | |
Background Organization And Basis Of Presentation Details Narrative | |
State of Incorporation | Nevada |
Date of incorporation | May 19, 2005 |
Description of stock issued | Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Derivative liability | $ 48,062 | $ 395,619 |
Level 1 [Member] | ||
Derivative liability | ||
Level 2 [Member] | ||
Derivative liability | ||
Level 3 [Member] | ||
Derivative liability | $ 48,062 | $ 395,619 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | |
Summary Of Significant Accounting Policies Details Narrative | |||
Potential dilutive securities | 57,364,000 | 20,147 | 7,170,500 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Going Concern Details Narrative | ||
Accumulated deficit | $ (30,053,527) | $ (30,155,127) |
Total Stockholders' Deficit | $ (2,397,128) | $ (2,801,699) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | May 08, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Apr. 30, 2016 | Oct. 09, 2014 |
Reimbursed amount outstanding | $ 31,633 | $ 31,633 | $ 31,633 | ||||
Loss on extinguishment of debt | 207,803 | 207,803 | $ (1,365,521) | ||||
Accounts payable - related party | 9,010 | 9,010 | |||||
Accrued expenses - related party | $ 69,108 | $ 69,108 | 64,420 | ||||
Maple Gas Corporation [Member] | |||||||
Convertible notes payable assigned | $ 1,650,000 | ||||||
Converted note common shares | 194,999,999 | ||||||
Convertible note per share | $ 0.01 | ||||||
Loss on extinguishment of debt | $ 975,000 | ||||||
Stock payable obligation | $ 2,925,000 | ||||||
Maple Gas Corporation One [Member] | |||||||
Convertible notes payable assigned | 120,000 | ||||||
Maple Gas Corporation Two [Member] | |||||||
Convertible notes payable assigned | $ 180,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Property And Equipment Details | ||
Computer software and hardware | $ 25,023 | $ 25,023 |
Less accumulated depreciation and amortization | (25,023) | (24,637) |
Property and equipment, net | $ 386 |
Property and Equipment (Detai34
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Property And Equipment Details Narrative | ||||
Depreciation and amortization expense | $ 363 | $ 386 | $ 1,624 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Total Accrued Expenses | $ 946,909 | $ 1,048,807 |
Accrued Payroll [Member] | ||
Total Accrued Expenses | 30,090 | 240,309 |
Accrued Consulting [Member] | ||
Total Accrued Expenses | 75,633 | 75,633 |
Accrued Interest [Member] | ||
Total Accrued Expenses | 778,645 | 670,324 |
Other [Member] | ||
Total Accrued Expenses | $ 62,541 | $ 62,541 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Notes payable | $ 375,000 | $ 375,000 |
Note Payable [Member] | ||
Notes payable | 300,000 | 300,000 |
Note payable One [Member] | ||
Notes payable | 25,000 | 25,000 |
Note payable Two [Member] | ||
Notes payable | $ 50,000 | $ 50,000 |
NOTES PAYABLE (Details 1)
NOTES PAYABLE (Details 1) - USD ($) | Jan. 31, 2017 | Apr. 30, 2016 |
Convertible notes payable | $ 221,089 | $ 195,001 |
Convertible Notes Payable [Member] | ||
Convertible notes payable | 120,000 | 120,000 |
Convertible Notes Payable One [Member] | ||
Convertible notes payable | 75,001 | 75,001 |
Convertible Notes Payable Two [Member] | ||
Convertible notes payable | $ 26,088 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 9 Months Ended | ||||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | Apr. 30, 2016 | Jan. 02, 2013 | |
Accrued interest | $ 307,415 | $ 276,477 | |||
Accrued interest payable on convertible notes payable | $ 137,879 | $ 112,058 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Proceeds from convertible notes payable | $ 84,782 | ||||
Common stock issued for settlement, Shares | 7,000,000 | ||||
Discount in settlement for claims | 50.00% | ||||
Common stock issued for RCP | 452,000,000 | ||||
Conversion of principal amount | $ 56,100 | ||||
Convertible Notes Payable [Member] | |||||
New notes issued | 120,000 | ||||
Note interest rate, monthly | 1.87% | ||||
Increase to debt discount | $ 30,000 | ||||
Issue of shares | 300,000 | ||||
Note secured by common stock | 900,000 | ||||
Closing price per share of common stock | $ 0.10 |
CONVERTIBLE PREFERRED STOCK (De
CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($) | Jan. 06, 2012 | Jun. 30, 2011 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Apr. 30, 2016 |
Loss on extinguishment of debt | $ 207,803 | $ 207,803 | $ (1,365,521) | ||||
Convertible preferred stock, currently in default | 137,500 | 137,500 | $ 137,500 | ||||
Interest expense | 97,436 | 36,169 | 214,375 | 493,166 | |||
Convertible Preferred Stock [Member] | |||||||
Share issued, Shares | 360,000 | ||||||
Shares issued, Amount | $ 360,000 | ||||||
Conversion price per share | $ 0.10475 | $ 1.25 | |||||
Preferred Stock dividend rate | 25.00% | ||||||
Accrued dividends | $ 312,500 | 333,351 | 333,351 | 281,789 | |||
Preferred stock and accrued dividends converted into common stock | 2,983,293 | ||||||
Loss on extinguishment of debt | $ 75,328 | ||||||
Warrant issued | 360,000 | ||||||
Common stock exercise price per share | $ 0.60 | ||||||
Convertible preferred stock, currently in default | 137,500 | 137,500 | $ 137,500 | ||||
Interest expense | $ 36,118 | $ 36,169 | $ 153,055 | $ 493,166 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details) | 9 Months Ended |
Jan. 31, 2017USD ($) | |
Notes to Financial Statements | |
Derivative liabilities | $ 395,619 |
Derivative liabilities recorded as debt discount | 63,914 |
Debt conversions | (156,283) |
Change in fair value of derivative liabilities | (255,188) |
Derivative liabilities | $ 48,062 |
DERIVATIVE LIABILITIES (Detai41
DERIVATIVE LIABILITIES (Details Narrative) | 9 Months Ended |
Jan. 31, 2017$ / shares | |
Convertible Notes Payable [Member] | |
Dividend yield | 0.00% |
Warrants [Member] | |
Probability of future financing | 100.00% |
Minimum [Member] | Convertible Notes Payable [Member] | |
Risk-free interest rates | 0.35% |
Volatility | 172.00% |
Years to maturity | 1 month 6 days |
Conversion price of debt | $ 0.00005 |
Minimum [Member] | Warrants [Member] | |
Risk-free interest rates | 1.49% |
Volatility | 104.00% |
Maximum [Member] | Convertible Notes Payable [Member] | |
Risk-free interest rates | 0.53% |
Volatility | 396.00% |
Years to maturity | 4 months 6 days |
Conversion price of debt | $ 0.00245 |
Maximum [Member] | Warrants [Member] | |
Risk-free interest rates | 1.54% |
Volatility | 109.00% |
STOCKHOLDERS_ DEFICIT (Details)
STOCKHOLDERS’ DEFICIT (Details) | 9 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Number of options | |
Beginning Balance | shares | 2,000,000 |
Granted | shares | |
Canceled / Expired | shares | |
Exercised | shares | |
Weighted Average Exercise Price Per share | |
Beginning Balance | $ / shares | $ 0.35 |
Granted | $ / shares | |
Canceled / Expired | $ / shares | |
Exercised | $ / shares | |
Weighted Average Remaining Contractual Life (in years) Beginning | 5 years 10 months 6 days |
Weighted Average Remaining Contractual Life (in years) Outstanding Ending | 5 years 1 month 6 days |
STOCKHOLDERS_ DEFICIT (Details
STOCKHOLDERS’ DEFICIT (Details 1) | 9 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Number of warrants | |
Beginning Balance | shares | 2,000,000 |
Granted | shares | |
Canceled / Expired | shares | |
Exercised | shares | |
Weighted Average Exercise Price Per Share | |
Beginning Balance | $ 0.35 |
Granted | |
Canceled / Expired | |
Exercised | |
Weighted Average Remaining Contractual Life (in years) Beginning | 5 years 10 months 6 days |
Weighted Average Remaining Contractual Life (in years) Outstanding Ending | 5 years 1 month 6 days |
Warrants [Member] | |
Number of warrants | |
Beginning Balance | shares | 11,522,170 |
Granted | shares | 65,138,143 |
Canceled / Expired | shares | |
Exercised | shares | |
Weighted Average Exercise Price Per Share | |
Beginning Balance | $ 0.01 |
Granted | 0.01 |
Canceled / Expired | |
Exercised | |
Ending Balance | $ 0.01 |
Weighted Average Remaining Contractual Life (in years) Beginning | 5 years 10 months 2 days |
Weighted Average Remaining Contractual Life (in years) Outstanding Ending | 5 years 15 days |
STOCKHOLDERS_ DEFICIT (Detail44
STOCKHOLDERS’ DEFICIT (Details Narrative) - USD ($) | May 02, 2016 | Mar. 07, 2012 | Jan. 24, 2017 | Jan. 19, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | Jul. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Nov. 29, 2016 | Jul. 12, 2016 | Apr. 30, 2016 | Apr. 06, 2016 |
Number of options | 2,000,000 | ||||||||||||||
Stock options exercisable | $ 0.35 | ||||||||||||||
Accrued salaries | $ 877,801 | $ 877,801 | |||||||||||||
Debt conversion converted amount | (156,283) | ||||||||||||||
Proceeds from issuance of stock | 1,000 | ||||||||||||||
Gain on extinguishment of debt | $ 207,803 | $ 207,803 | $ (1,365,521) | ||||||||||||
Stock Issuances [Member] | |||||||||||||||
Common stock subscriptions payable | $ 2,925,000 | $ 10,000 | |||||||||||||
Common stock shares issued | 731,491,509 | ||||||||||||||
Common stock shares issued during period | 5,000,000 | ||||||||||||||
Proceeds from issuance of stock | $ 10,000 | ||||||||||||||
Stock Issuances [Member] | Accounts Payable [Member] | |||||||||||||||
Common stock shares issued | 28,625,000 | ||||||||||||||
Debt conversion converted amount | $ 5,725 | ||||||||||||||
Stock Issuances [Member] | Cash [Member] | |||||||||||||||
Common stock shares issued | 5,000,000 | ||||||||||||||
Debt conversion converted amount | $ 1,000 | ||||||||||||||
Stock Issuances [Member] | Accrued expenses [Member] | |||||||||||||||
Common stock shares issued | 2,082,190 | ||||||||||||||
Debt conversion converted amount | $ 208,219 | ||||||||||||||
Stock Issuances [Member] | Private Placement [Member] | |||||||||||||||
Common stock shares issued | 27,740,423 | 1,096,397 | 41,784,320 | ||||||||||||
Debt conversion converted amount | $ 118,230 | ||||||||||||||
Debt conversion converted amout of services rendered | $ 60,000 | ||||||||||||||
Class of warrant or rights issued | 43,025,313 | 43,025,313 | |||||||||||||
Maturity date | Mar. 1, 2022 | ||||||||||||||
Stock Issuances [Member] | Private Placement [Member] | Minimum [Member] | |||||||||||||||
Exercise price | $ 0.0001 | $ 0.0001 | |||||||||||||
Stock Issuances [Member] | Private Placement [Member] | Maximum [Member] | |||||||||||||||
Exercise price | 0.01 | $ 0.01 | |||||||||||||
Stock Issuances [Member] | Private Placement [Member] | Cash [Member] | |||||||||||||||
Common stock shares issued | 12,947,500 | ||||||||||||||
Proceeds from private placement | $ 118,230 | ||||||||||||||
Stock Issuances [Member] | Fee [Member] | |||||||||||||||
Common stock shares issued | 7,000,000 | ||||||||||||||
Debt conversion converted amount | $ 34,300 | ||||||||||||||
Stock Issuances [Member] | Convertible Notes Payable [Member] | |||||||||||||||
Common stock subscriptions payable | $ 2,925,000 | ||||||||||||||
Common stock shares issued | 194,999,999 | 194,999,999 | |||||||||||||
Debt conversion converted amount | $ 2,925,000 | ||||||||||||||
Stock Issuances [Member] | Convertible Notes Payable [Member] | Settlement Agreement [Member] | |||||||||||||||
Common stock shares issued | 452,000,000 | ||||||||||||||
Debt conversion converted amount | $ 56,100 | ||||||||||||||
Debt conversion converted amout of derivative liability | 156,283 | ||||||||||||||
Stock Issuances [Member] | Convertible Notes Payable [Member] | Settlement Agreement [Member] | Fee [Member] | |||||||||||||||
Common stock shares issued | 7,000,000 | ||||||||||||||
Debt conversion converted amount | $ 34,300 | ||||||||||||||
Stock Issuances [Member] | Consultant [Member] | |||||||||||||||
Common stock shares issued during period | 28,625,000 | ||||||||||||||
Amount of services rendered | $ 5,725 | ||||||||||||||
Stock Issuances [Member] | Former employee [Member] | |||||||||||||||
Common stock reserved | 2,082,190 | ||||||||||||||
Accrued salaries | $ 208,219 | ||||||||||||||
Gain on extinguishment of debt | $ 207,803 | ||||||||||||||
Stock Issuances [Member] | Related Parties [Member] | Private Placement [Member] | |||||||||||||||
Proceeds from private placement | 49,200 | ||||||||||||||
Stock Issuances [Member] | Services [Member] | Private Placement [Member] | |||||||||||||||
Proceeds from private placement | $ 60,000 | ||||||||||||||
Authorized Shares [Member] | |||||||||||||||
Increase authorized common share | 3,000,000,000 | 1,000,000,000 | |||||||||||||
Increase authorized preferred share | 10,000,000 | ||||||||||||||
Stock Options [Member] | |||||||||||||||
Number of options | 2,000,000 | ||||||||||||||
Stock options exercisable | $ 0.35 | ||||||||||||||
Stock option expiration period | 10 years | ||||||||||||||
Warrants [Member] | |||||||||||||||
Number of options | 11,522,170 | ||||||||||||||
Stock options exercisable | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Common stock reserved | 76,660,313 | 76,660,313 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details Narrative) - shares | Apr. 30, 2012 | Mar. 22, 2011 | Dec. 21, 2010 | Sep. 23, 2010 |
MCCH [Member] | ||||
Controling interest | 100.00% | |||
MCC [Member] | ||||
Controling interest | 80.00% | |||
CC [Member] | ||||
Controling interest | 95.00% | |||
AHGC [Member] | ||||
Controling interest | 100.00% | 98.12% | ||
Non-controlling interest | 1.88% | |||
Exchange shares | 31,334 | |||
Acquired of AMC | 14.60% | |||
Additional interest | 4.00% | |||
Total interest | 98.60% | |||
AMC [Member] | ||||
Controling interest | 80.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Apr. 26, 2010USD ($) |
Commitments And Contingencies Details Narrative | |
Minimum lease payment | $ 62,541 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Mar. 07, 2017Votesshares | Mar. 04, 2017USD ($)Barrelsshares | Mar. 09, 2017USD ($)shares | Jan. 31, 2017USD ($)shares | Apr. 30, 2016USD ($)shares |
Common stock, Authorized | 3,000,000,000 | 3,000,000,000 | |||
Common stock issued for cash, value | $ | $ 911,924 | $ 180,434 | |||
Subsequent Event [Member] | Settlement Agreement and Stipulation [Member] | |||||
Company’s creditors received | $ | $ 84,782 | ||||
Common stock issued to RCP | 452,000,000 | ||||
Additional common shares issued | 37,000,000 | ||||
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member] | |||||
Outstanding shares percentage for writen consent | more than 50.1% | ||||
Number of votes per share | Votes | 10 | ||||
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member] | Minimum [Member] | |||||
Common stock, Authorized | 3,000,000,000 | ||||
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member] | Maximum [Member] | |||||
Common stock, Authorized | 10,000,000,000 | ||||
Subsequent Event [Member] | Consultant [Member] | |||||
Commons stock issued for services, value | $ | $ 9,737 | ||||
Common shares | 2,631,579 | ||||
Subsequent Event [Member] | Investor [Member] | |||||
Common stock issued for cash, value | $ | $ 15,500 | ||||
Common shares | 27,727,733 | ||||
Subsequent Event [Member] | Maple [Member] | |||||
Related party transaction | $ | $ 450,000,000 | ||||
Crude oil refines per day | Barrels | 50,000 | ||||
Exchange of new common shares | 7,000,000,000 | ||||
Company to issue the purchase shares | two tranches | ||||
First tranche shares issued | 1,500,000,000 | ||||
Second tranche shares issued | 5,500,000,000 |