Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Oct. 31, 2014 | Dec. 15, 2014 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SPARTA COMMERCIAL SERVICES, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -26 | |
Entity Common Stock, Shares Outstanding | 26,893,212 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 318299 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Oct-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $9,558 | $70,456 |
Accounts receivable | 164,678 | 182,343 |
Property and equipment, net of accumulated depreciation and amortization of $201,160 and $199,367, respectively (NOTE B) | 8,181 | 9,974 |
Goodwill | 10,000 | 10,000 |
Other assets | 50,887 | 60,992 |
Deposits | 117,178 | 40,568 |
Total assets from continuing operations | 360,481 | 374,333 |
Assets from discontinued operations (NOTE C) | 49,233 | 90,024 |
Total assets | 409,714 | 464,357 |
Liabilities: | ||
Accounts payable and accrued expenses | 1,313,311 | 1,259,368 |
Notes payable net of beneficial conversion feature of $366,434 and $296,384, respectively (NOTE D) | 2,370,923 | 2,019,879 |
Loans payable-related parties (NOTE E) | 385,853 | 385,853 |
Derivative liabilities | 755,571 | 601,000 |
Total liabilities from continuing operations | 4,825,660 | 4,266,100 |
Liabilities from discontinued operations (NOTE C) | 97,465 | 130,420 |
Total liabilities | 4,923,125 | 4,396,520 |
Deficit: | ||
Common stock, $0.001 par value; 740,000,000 shares authorized, 24,397,250, and 20,987,353 shares issued and outstanding, respectively | 24,397 | 20,987 |
Common stock to be issued, 407,050 and 283,777, respectively | 407 | 284 |
Preferred stock B to be issued, 29 and 72.48 shares, respectively | 29 | 72 |
Additional paid-in-capital | 41,621,763 | 41,738,613 |
Subscriptions receivable | -903,309 | -2,118,309 |
Accumulated deficit | -45,920,041 | -44,257,306 |
Total deficiency in stockholders' equity | -5,163,583 | -4,601,588 |
Noncontrolling interest | 650,173 | 669,424 |
Total Deficit | -4,513,411 | -3,932,164 |
Total Liabilities and Deficit | 409,714 | 464,357 |
Series A Preferred Stock [Member] | ||
Deficit: | ||
Preferred shares, value, issued | 12,500 | 12,500 |
Series B Preferred Stock [Member] | ||
Deficit: | ||
Preferred shares, value, issued | 670 | 1,570 |
Series C Preferred Stock [Member] | ||
Deficit: | ||
Preferred shares, value, issued | $0 | $0 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Accumulated depreciation and amortization (in Dollars) | $201,160 | $199,367 |
Beneficial Conversion Feature (in Dollars) | 366,434 | 296,384 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares designated | 10,000,000 | 10,000,000 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 740,000,000 | 740,000,000 |
Common stock, shares issued | 24,397,250 | 20,987,353 |
Common stock, shares outstanding | 24,397,250 | 20,987,353 |
Common stock to be issued | 407,050 | 283,777 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $100 | $100 |
Preferred stock, shares designated | 35,850 | 35,850 |
Preferred stock, shares issued | 125 | 125 |
Preferred stock, shares outstanding | 125 | 125 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares designated | 1,000 | 1,000 |
Preferred stock, shares issued | 67 | 157 |
Preferred stock, shares outstanding | 67 | 157 |
Preferred stock, redemption value (in Dollars) | 10,000 | 10,000 |
Preferred Stock, Shares to be Issued | 29 | 72.48 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares designated | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, redemption value (in Dollars) | $10 | $10 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF LOSSES (UNAUDITED) (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Revenue | ||||
Information technology | $138,074 | $118,047 | $270,881 | $254,164 |
Cost of goods sold | 48,470 | 38,715 | 86,047 | 76,291 |
Gross profit | 89,604 | 79,333 | 184,834 | 177,872 |
Operating expenses: | ||||
General and administrative | 685,680 | 363,382 | 1,217,394 | 711,829 |
Depreciation and amortization | 897 | 357 | 1,793 | 2,778 |
Total operating expenses | 686,578 | 363,739 | 1,219,188 | 714,607 |
Loss from continuing operations | -596,974 | -284,406 | -1,034,353 | -536,735 |
Other (income) expense: | ||||
Other income | -5,011 | -17,691 | -15,779 | -38,195 |
Interest expense and financing cost, net | 159,810 | 88,088 | 246,651 | 186,121 |
Amortization of debt discount | 189,324 | 120,451 | 314,065 | 195,942 |
(Gain) loss in changes in fair value of derivative liability | 203,825 | -27,403 | -8,704 | 26,720 |
Total other expense | 547,948 | 163,444 | 536,233 | 370,587 |
Net loss from continuing operations | -1,144,922 | -447,850 | -1,570,586 | -907,322 |
Net loss from discontinued operations | -16,653 | -267,992 | -111,017 | -278,613 |
Net Loss | -1,161,575 | -715,843 | -1,681,603 | -1,185,934 |
Net loss attributed to non-controlling interest | 7,460 | 18,304 | 19,251 | 27,969 |
Preferred dividend | -191 | -39,764 | -382 | -79,097 |
Net loss attributed to common stockholders | ($1,154,306) | ($737,302) | ($1,662,735) | ($1,237,064) |
Basic and diluted loss per share (in Dollars per share) | ($0.05) | ($0.03) | ($0.07) | ($0.06) |
Basic and diluted loss per share attributed to common stockholders (in Dollars per share) | ($0.05) | ($0.05) | ($0.07) | ($0.08) |
Weighted average shares outstanding (in Shares) | 21,906,215 | 15,823,610 | 22,275,630 | 15,994,720 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (UNAUDITED) (USD $) | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock to be Issued [Member] | Common Stock [Member] | Common Stock To Be Issued [Member] | Stock Subscribed [Member] | Receivables from Stockholder [Member] | Deferred Compensation, Share-based Payments [Member] | Additional Paid-in Capital [Member] | Total |
Balance at Apr. 30, 2014 | $12,500 | $1,570 | $72 | $20,987 | $284 | ($2,118,309) | $41,738,613 | ($44,257,306) | $669,424 | ($3,932,164) |
Balance (in Shares) at Apr. 30, 2014 | 125 | 157 | 0 | 20,987,353 | 283,777 | |||||
Correcting | -1 | 15 | 14 | |||||||
Correcting (in Shares) | 345 | -430 | ||||||||
Redemption of preferred B stock | -900 | -43 | 1,215,000 | -1,330,164 | -116,107 | |||||
Redemption of preferred B stock (in Shares) | -90 | |||||||||
Derivative liability reclassification | 81,821 | 81,821 | ||||||||
Sale of common stock | 1,955 | 84 | 495,439 | 497,479 | ||||||
Sale of common stock (in Shares) | 1,954,496 | 84,023 | ||||||||
Shares issued for financing cost | 157 | -31 | 60,493 | 60,619 | ||||||
Shares issued for financing cost (in Shares) | 156,644 | -31,778 | ||||||||
Shares issued for conversion of notes, interest and accounts payable | 1,026 | 11 | 371,490 | 372,527 | ||||||
Shares issued for conversion of notes, interest and accounts payable (in Shares) | 1,026,523 | 11,458 | ||||||||
Stock compensation | 240 | 60 | 126,628 | 126,928 | ||||||
Stock compensation (in Shares) | 240,109 | 60,000 | ||||||||
Employee stock & options expense & revaluation | 32 | 77,428 | 77,460 | |||||||
Employee stock & options expense & revaluation (in Shares) | 31,780 | |||||||||
Net loss | -1,662,735 | -19,251 | -1,681,986 | |||||||
Balance at Oct. 31, 2014 | $12,500 | $670 | $29 | $24,397 | $407 | ($903,309) | $41,621,763 | ($45,920,041) | $650,173 | ($4,513,411) |
Balance (in Shares) at Oct. 31, 2014 | 125 | 67 | 0 | 24,397,250 | 407,050 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 6 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | ($1,662,735) | ($1,237,064) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Adjustments | 0 | -71 |
Dividend on preferred stock | 382 | 79,097 |
Loss allocable to non-controlling interest | -19,251 | -27,969 |
Depreciation and amortization | 1,793 | 2,778 |
Amortization of debt discount | 314,065 | 195,942 |
Change in fair value of derivative liabilities | -8,704 | 26,720 |
Shares issued for finance cost | 60,619 | 26,872 |
Shares issued for interest payable | 127,304 | 0 |
Equity based compensation | 204,386 | 119,037 |
(Increase) decrease in operating assets: | ||
Accounts receivable | -98,442 | -64,117 |
Prepaid expenses and other assets | 0 | 0 |
Restricted cash | 0 | 0 |
Other assets | -66,505 | 10,705 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | 38,375 | 4,707 |
Net cash used in operating activities | -1,108,713 | -863,363 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash provided by investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from sale of common stock | 497,478 | 513,161 |
Net proceeds from convertible notes | 485,000 | 460,263 |
Net payments on notes payable | -97,500 | -137,500 |
Net proceeds from other notes | 155,000 | 25,000 |
Net (payment of) loan proceeds from other related parties | 0 | -7,407 |
Net cash provided by financing activities | 1,039,978 | 853,517 |
Cash flows from discontinued operations: | ||
Depreciation of assets of discontinued operations | 10,902 | 0 |
Cash (used in) operating activities of discontinued operations | 0 | -9,197 |
Cash provided by investing activities of discontinued operations | 0 | 0 |
Cash (used in) financing activities of discontinued operations | -3,065 | 0 |
Net Cash flow from discontinued operation | 7,837 | -9,197 |
Net (decrease) in cash | -60,898 | -19,043 |
Unrestricted cash and cash equivalents, beginning of period | 70,456 | 38,213 |
Unrestricted cash and cash equivalents, end of period | 9,558 | 19,170 |
Cash paid for: | ||
Interest | 27,359 | 10,807 |
Income taxes | $944 | $3,664 |
NOTE_A_SUMMARY_OF_ACCOUNTING_P
NOTE A - SUMMARY OF ACCOUNTING POLICIES | 6 Months Ended | |
Oct. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies [Text Block] | NOTE A – SUMMARY OF ACCOUNTING POLICIES | |
A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. | ||
Basis of Presentation | ||
The accompanying unaudited condensed consolidated financial statements as of October 31, 2014 and for the three and six month periods ended October 31, 2014 and 2013 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended April 30, 2014 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission. | ||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Specialty Reports, Inc. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Business | ||
Sparta Commercial Services, Inc. ("Sparta" "we," "us," or the "Company") is a Nevada corporation. We are a technology company that develop and market mobile app tools, products and services. We also provide vehicle history reports and a municipal leasing program. | ||
Our roots are in the Powersports industry and our original focus was providing consumer and municipal financing to the powersports, recreational vehicle, and automobile industries (see Discontinued Operations). Presently, through our subsidiary, Specialty Reports, Inc. (SRI), we offer Mobile App development, sales, marketing and support, and Vehicle History Reports. | ||
We have expanded our mobile application (mobile app) marketing efforts beyond vehicle dealers to a variety of businesses including, but not limited to, restaurants, hotels, and grocery stores. We also private label our mobile app framework to enable other businesses to offer custom apps to their customers. | ||
Our vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com); RVchex (Recreational Vehicle History Reports at www.rvchex.com); CarVINreport (Automobile at www.carvinreport.com) and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com). Our Vehicle History Reports are designed for consumers, retail dealers, auction houses, insurance companies and banks/finance companies. | ||
Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease. | ||
The results of operations for the three and six months ended October31, 2014 are not necessarily indicative of the results to be expected for any other interim period or the full year ending April 30, 2015. | ||
Estimates | ||
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | ||
Discontinued Operations | ||
As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. | ||
Revenue Recognition | ||
Revenues from history report and mobile app products are recognized on a cash basis. | ||
The Company’s leases, which are included in Discontinued Operations, are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as “motorcycles under operating leases-net”. The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the Company’s original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the “Residual”). Monthly lease payments are recognized as rental income. | ||
Direct financing leases are recorded at the gross amount of the lease receivable (principal amount of the contract plus the calculated earned income over the life of the contract), and the unearned income at lease inception is amortized over the lease term. | ||
The Company’s Retail Installment Sales Contracts (“RISC”), which are included in Discontinued Operations, are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans. Upon purchase, the RISCs appear on the Company’s balance sheet as RISC loan receivable current and long term. Interest income on these loans is recognized when it is earned. | ||
The Company realizes gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity as a result of the lessee’s voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle’s net book value. | ||
Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee’s early termination. In those instances, the Company receives the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee’s insurer. The Company records a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. | ||
Inventories | ||
Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value. | ||
Website Development Costs | ||
The Company recognizes website development costs in accordance with Accounting Standards Codification (“ASC”) 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses. | ||
Cash Equivalents | ||
For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | ||
Income Taxes | ||
Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Uncertainty in Income Taxes (“ASC 740-10”)." Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards. 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 removed or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. | ||
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions. As a result of implementing ASC 740-10, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2014 or the three months or six months ended October 31, 2014. | ||
Fair Value Measurements | ||
The Company adopted ASC 820, “Fair Value Measurements (“ASC 820”).” ASC 820 establishes a three-level 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 the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities. The three levels of the fair value hierarchy under ASC 820 are described below: | ||
· | Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. | |
· | Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |
· | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation. | |
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. | ||
Impairment of Long-Lived Assets | ||
In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | ||
Comprehensive Income | ||
In accordance with ASC 220-10, “Reporting Comprehensive Income,” (“ASC 220-10”) establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. At October 31, 2014 and April 30, 2014, the Company has no items of other comprehensive income. | ||
Segment Information | ||
The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information,” “ASC 208-10”). ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments. | ||
In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2013, the Company has discontinued segment reporting. | ||
Stock Based Compensation | ||
The Company adopted ASC 718-10, “Compensation-Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years. | ||
ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate. | ||
Concentrations of Credit Risk | ||
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | ||
Property and Equipment | ||
Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows: | ||
Leasehold improvements | 3 years | |
Furniture and fixtures | 7 years | |
Website costs | 3 years | |
Computer Equipment | 5 years | |
Advertising Costs | ||
The Company follows a policy of charging the costs of advertising to expenses incurred. During the six months ended October 31, 2014 and 2013, the Company incurred advertising costs of $3,819 and $8,500, respectively. During the three months ended October 31, 2014 and 2013, the Company incurred advertising expenses of zero and $4,250, respectively. | ||
Net Loss Per Share | ||
The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. | ||
Per share basic and diluted net loss attributable to common stockholders amounted to $0.05 and $0.05 for the three months ended October 31, 2014 and 2013, respectively, and $0.07 and $0.08 for the six months ended October 31, 2014 and 2013, respectively. At October 31, 2014 and 2013, 8,789,459 and 5,586,766 potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. | ||
Liquidity | ||
As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred a net loss attributed to common stockholders of $1,662,735 and $1,237,064 during the six months ended October 31, 2014 and October 31, 2013, respectively. The Company’s liabilities exceed its assets by $4,513,411 as of October 31, 2014. | ||
Reclassifications | ||
Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses. | ||
Recent Accounting Pronouncements | ||
There were various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows. | ||
NOTE_B_PROPERTY_AND_EQUIPMENT
NOTE B - PROPERTY AND EQUIPMENT | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE B – PROPERTY AND EQUIPMENT | ||||||||
Major classes of property and equipment at October 31, 2014 and April 30, 2014 consist of the followings: | |||||||||
October 31, | April 30, | ||||||||
2014 | 2014 | ||||||||
Computer equipment, software and furniture | $ | 209,341 | $ | 209,341 | |||||
Less: accumulated depreciation | (201,160 | ) | (199,367 | ) | |||||
Net property and equipment | $ | 8,181 | $ | 9,974 | |||||
Depreciation expense of continuing operations for property and equipment was $1,793 and $2,778, respectively for the six months ended October 31, 2014 and 2013 and $897 and $357, respectively for the three months ended October 31, 2014 and 2013. | |||||||||
NOTE_C_DISCONTINUED_OPERATIONS
NOTE C - DISCONTINUED OPERATIONS | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE C – DISCONTINUED OPERATIONS | ||||||||
In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. | |||||||||
The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations. | |||||||||
Six Months Ended | |||||||||
October 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
Revenues | $ | 23,163 | $ | 58,997 | |||||
Net (loss) | $ | (111,017 | ) | $ | (278,613 | ) | |||
As the Company sold all of its portfolio of performing RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the six months ended October 31, 3014 or the year ending April 30, 2014. | |||||||||
ASSETS INCLUDED IN DISCONTINUED OPERATIONS | |||||||||
MOTORCYCLES AND OTHER VEHICLES UNDER OPERATING LEASES | |||||||||
Motorcycles and other vehicles under operating leases at October 31, 2014 and April 30, 2014: | |||||||||
October 31, | April 30, | ||||||||
2014 | 2014 | ||||||||
Motorcycles and other vehicles | $ | 33,518 | $ | 60,686 | |||||
Less: accumulated depreciation | (3,525 | ) | (3,986 | ) | |||||
Motorcycles and other vehicles, net of accumulated depreciation | 29,992 | 56,700 | |||||||
Less: estimated reserve for residual values | (957 | ) | (1,030 | ) | |||||
Motorcycles and other vehicles under operating leases, net | $ | 29,036 | $ | 55,670 | |||||
At April 30, 2014, motorcycles and other vehicles are being depreciated to their estimated residual values over the lives of their lease contracts. Depreciation expense for vehicles for the six months ended October 31, 2014 was $10,902 and for the year ended April 30, 2014, it was $29,411. All of the assets are pledged as collateral for the note described in SECURED NOTES PAYABLE in this Note C. These remaining leases are in a run-off mode. | |||||||||
INVENTORY | |||||||||
Inventory is comprised of repossessed vehicles and vehicles which have been returned at the end of their lease. Inventory is carried at the lower of depreciated cost or market, applied on a specific identification basis. At October 31, 2014 and at April 30, 2014, the Company had no repossessed vehicles which are held for resale. | |||||||||
RETAIL (RISC) LOAN RECEIVABLES | |||||||||
All of the Company’s RISC performing loan receivables were sold in August 2013. As of October 31, 2014 and April 30, 2014, the Company had: RISC loans of $19,016 and $20,345, respectively, and deficiency receivables of $3,395 and $0, respectively. At October 31, 2014 and at April 30, 2014, the reserve for doubtful RISC loan receivables was $2,500 and $1,124, respectively. | |||||||||
As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the quarter or six months ending October 31, 2014 or the year ending April 30, 2014. | |||||||||
LIABILITIES INCLUDED IN DISCONTINUED OPERATIONS | |||||||||
SECURED NOTES PAYABLE | |||||||||
October 31, | April 30, | ||||||||
2014 | 2014 | ||||||||
Secured, subordinated individual lender (a) | $ | 85,385 | $ | 117,508 | |||||
Secured, subordinated individual lender (b) | 12,080 | 12,912 | |||||||
Total | $ | 97,465 | $ | 130,420 | |||||
(a) | The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2014 is 15.29%. | ||||||||
(b) | On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000. The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2014, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder. Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2014, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2014, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2014, has been extended to August 31, 2015. | ||||||||
At October 31, 2014, the notes payable mature as follows: | |||||||||
Year ended October 31, | Amount | ||||||||
2015 | $ | 97,465 | |||||||
Total Due | $ | 97,465 | |||||||
NOTE_D_NOTES_PAYABLE
NOTE D - NOTES PAYABLE | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | NOTE D – NOTES PAYABLE | ||||||||
Notes Payable | October 31, | April 30, | |||||||
2014 | 2014 | ||||||||
Notes convertible at holder’s option (a) | $ | 2,167,358 | $ | 1,901,263 | |||||
Notes with interest only convertible at Company’s option (b) | 390,000 | 390,000 | |||||||
Non-convertible notes payable (c) | 180,000 | 25,000 | |||||||
Subtotal | 2,737,357 | 2,316,263 | |||||||
Less, Debt discount | (366,434 | ) | (296,384 | ) | |||||
Total | $ | 2,370,923 | $ | 2,019,879 | |||||
(a) Notes convertible at holder’s option consists of: | |||||||||
(i) a $1,258,368, 8% note originally due April 30, 2013, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. In fiscal 2012, the Company had recorded a $663,403 beneficial conversion discount for this note which was fully amortized during fiscal 2013; | |||||||||
(ii) a $56,500, 6% note due June 30, 2015. The Company has recorded beneficial conversion discounts totaling $56,500 for the note. The discount is being fully amortized over the terms of the note. The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 1,356,993 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; | |||||||||
(iii) a $25,000, 12% convertible note due May 27, 2014. The note is convertible at $0.59 per share. If the Company has not redeemed the outstanding principal and accrued interest of this Debenture in cash by the Maturity Date and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph 12, the Debenture shall be considered past due but not in default. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan and a $50,000, 12% note, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2012, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; | |||||||||
(iv) seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%, the Company is paying 667 monthly penalty shares until the note is paid in full on one $25,000 note which had been past due, all of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; | |||||||||
(v) three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; | |||||||||
(vi) a $59,000, 5% convertible note due April 16, 2015. This lender has committed to lend up to $330,000 (three hundred thousand) in the form of a $165,000 note. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The second note has been amended to include a 3% closing fee on the amount of each sum advanced plus a 5% due diligence fee on the amount of each sum advanced. The combined fees shall be added to the sum advanced for all purposes under the Note, including when calculating the amount of the interest charge. The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $39,784 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note; | |||||||||
(vii) a $13,720 outstanding balance of a $27,500, 5% convertible note due October 21, 2014, a $27,500, 5% convertible note due January 28, 2015 and a $27,500, 5% convertible note due April 29, 2015. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $49,085 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; $500 outstanding balance on a $13,900, and 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded an $11,158 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; and $625 outstanding balance on a $60,000, 12% convertible note due March 20, 2015. The Conversion Price for this note is 65% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded a $32,309 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; | |||||||||
(viii) a $55,000 8% convertible note due February 25, 2015 and a $55,000 convertible note due April 27, 2015. Both notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $99,161 beneficial conversion discount for the two notes. The discount is being fully amortized over the initial term of the notes. The Company had reserved up to 918,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the note is not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full; | |||||||||
(ix) a $42,500, 8% note due February 2, 2015, $37,500, 8% note due April 27, 2015, a$32,500, 8% note due June 3, 2015 and a $33,000, 8% note due July 14, 2015. The Company has recorded a beneficial conversion discount of $114,215 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 2,900,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full; | |||||||||
(x) a $20,000 outstanding balance of a $40,000, 6% note due April 3, 2015. In fiscal 2014, the Company has recorded a beneficial conversion discount of $20,085 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at the lesser of $1.20 or a variable conversion of 65% multiplied by the lowest VWAP in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 310,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full; and | |||||||||
(xi) a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and | |||||||||
(xii) a $50,000, 8% note due December 20, 2014. The Company has recorded a beneficial conversion discount of $36,207 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 340,000 shares of its common stock for conversion pursuant to the terms of the note, and a $55,000, 12% note due February 19, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 325,000 shares of its common stock for conversion pursuant to the terms of the note. | |||||||||
(b) Notes with interest only convertible at Company’s option consist of: | |||||||||
(i) a 22% note in the amount of $10,000 due May 31, 2015; | |||||||||
(ii) a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share; | |||||||||
(iii) a $315,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period; | |||||||||
(iv) a $25,000 8% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.35 per share; and a | |||||||||
(v) $15,000 5% note due May 31, 2015, the Company agreed to issue the note holder 5,000 shares of its common stock in connection with this loan. | |||||||||
(c) Non-convertible notes consist of: | |||||||||
(i) a $25,000 note due May 31, 2015 which bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid; | |||||||||
(ii) a $75,000, 20% note due March 18, 2015. The note is secured by 640,197 shares of the Company’s restricted common stock. The Company issued this Noteholder 106,700 shares of restricted common stock as inducement for the loan; and | |||||||||
(iii) two $20,000, 8% notes due January 5, 2015. The notes are secured by a $37,401 security deposit. In case of default the interest rate is increased to eighteen percent and the Company shall issue each noteholder 10,000 shares of its restricted common stock for every ten day period the notes remain unpaid. | |||||||||
(iv) a $40,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan. | |||||||||
Amortization of Beneficial Conversion Feature for the six months ended October 31, 2014 and 2013 was $314,065 and $195,942, respectively and for the fiscal year ended April 30, 2014 was $417,291. | |||||||||
The Company's derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income. | |||||||||
Derivative liabilities related to notes payable increased by a net of $221,450 during the six months ended October 31, 2014 to $583,800. $81,821 of this amount was charged to additional-paid-in-capital upon payoff or full conversion of notes payable. Derivative liabilities related to outstanding warrants decreased by a net of $66,878 during the six months ended October 31, 2014 to $171,771. | |||||||||
The change in fair value of the derivative liabilities of warrants outstanding at October 31, 2014 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows: | |||||||||
Significant Assumptions: | |||||||||
Risk free interest rate | Ranging from | 0.15 | % | to | 1.02 | % | |||
Expected stock price volatility | 140 | % | |||||||
Expected dividend payout | 0 | ||||||||
Expected options life in years | Ranging from | 0.15 | year | to | 3.17 | years | |||
The change in fair value of the derivative liabilities of convertible notes outstanding at October 31, 2014 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows: | |||||||||
Significant Assumptions: | |||||||||
Risk free interest rate | Ranging from | 0.039 | % | to | 0.074 | % | |||
Expected stock price volatility | 140 | % | |||||||
Expected dividend payout | 0 | ||||||||
Expected options life in years | Ranging from | 0.22 | year | to | 0.9 | year | |||
The value of the derivative liability was re-assessed as of October 31, 2014 resulting in a gain to the consolidated statement of operations of $8,704 for the six months ended October31, 2014 and a loss to the consolidated statement of operations of $203,825 for the three months ended October 31, 2014. | |||||||||
October 31, | |||||||||
2014 | |||||||||
Opening balance, April 30, 2014 | $ | 601,000 | |||||||
Derivative liability reclassified to additional paid in capital | (81,821 | ) | |||||||
Derivative financial liability arising on the issue of convertible notes | 465,047 | ||||||||
Fair value adjustments | (228,655 | ) | |||||||
Closing balance | $ | 755,571 | |||||||
NOTE_E_LOANS_PAYABLE_TO_RELATE
NOTE E - LOANS PAYABLE TO RELATED PARTIES | 6 Months Ended |
Oct. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE E – LOANS PAYABLE TO RELATED PARTIES |
As of October 31, 2014 and April 30, 2014, aggregated loans payable, without demand and with no interest, to officers and directors were $385,853 and $385,853, respectively. | |
NOTE_F_EQUITY_TRANSACTIONS
NOTE F - EQUITY TRANSACTIONS | 6 Months Ended | |
Oct. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ||
Stockholders' Equity Note Disclosure [Text Block] | NOTE F – EQUITY TRANSACTIONS | |
On May 18, 2013, the Company’s Board of Directors declared effective a one for seventy-five reverse common stock split. All per share amounts in these unaudited condensed consolidated financial statements and accompanying notes have been retroactively adjusted to the earliest period presented for the effect of this reverse stock split. | ||
The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share, 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value, and 200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value, and 740,000,000 shares of common stock with $0.001 par value per share. The Company had 125 shares of Series A preferred stock issued and outstanding as of October 31, 2014 and April 30, 2014. The Company had 67 and 157 shares of Series B preferred stock issued and outstanding as of October 31, 2014 and April 30, 2014 respectively. The Company had nil shares of Series C preferred stock issued and outstanding as of October 31, 2014 and April 30, 2014. The Company has 24,397,250 and 20,987,353 shares of common stock issued and outstanding as of October 31, 2014 and April 30, 2014, respectively. | ||
Preferred Stock, Series A | ||
During the six months ended October 31, 2014, there were no transactions in Series A Preferred, however, at October 31, 2014, there were $7,186 of accrued dividends payable on the Series A Preferred, compared to the accrual of $6,803 at April 30, 2014. At the Company’s option, these dividends may be paid in shares of the Company’s Common Stock. | ||
Preferred Stock, Series B | ||
During the six months ended October 31, 2014, pursuant to the terms of the Series B Preferred Stock, the Company redeemed 90 shares of Series B Preferred Stock and 43.11 shares of to be issued Series B Preferred Stock by exchanging the shares for $1,215,000 of note subscription receivables and $116,107 of interest receivable thereon. Subsequent to this redemption there were 67 shares of Series B Preferred Stock outstanding and there were 29.37 shares of Series B Preferred Stock payable. | ||
Preferred Stock Series C | ||
There were no shares of Series C Preferred Stock issued and outstanding at October 31, 2014 and at April 30, 2014. | ||
Common Stock | ||
During the six months ended October 31, 2014, the Company expensed $204,388 for non-cash charges related to stock and option compensation expense. | ||
During the six months ended October 31, 2014, the Company: | ||
● | sold 2,038,519 shares of common stock to eighteen accredited investors for $497,479, of which 185,900 shares remained to be issued at October 31, 2014 and 101,877 shares were classified as to be issued at April 30, 2014, | |
● | issued 888,365 shares of common stock upon the conversion of convertible notes and accrued interest in the amount of $325,463, of which 122,451 shares were classified as to be issued at April 30, 2014 and 153,910 shares remained to be issued at October 31, 2014, | |
● | issued 207,787 shares of common stock valued at $60,619 pursuant to terms of various notes of which 60,000 shares remained to be issued at October 31, 2014, and issued 16,666 shares were classified as to be issued at April 30, 2014., | |
● | issued 240,109 shares of common stock valued at $126,928 pursuant to consulting agreements, | |
● | issued 138,160 shares of common stock in payment of $47,064 in accounts payable of which 20,000 shares were classified as to be issued at April 30, 2014, and | |
● | issued 31,780 shares of common stock valued at $14,269 to three employees in exchange for their outstanding stock purchase options. | |
NOTE_G_NONCONTROLLING_INTEREST
NOTE G - NONCONTROLLING INTEREST | 6 Months Ended | ||||
Oct. 31, 2014 | |||||
Noncontrolling Interest [Abstract] | |||||
Noncontrolling Interest Disclosure [Text Block] | NOTE G – NONCONTROLLING INTEREST | ||||
For the six months ended October 31, 2014, the non-controlling interest is summarized as follows: | |||||
Amount | |||||
Balance at April 30, 2014 | $ | 669,424 | |||
Noncontrolling interest’s share of losses | (19,251 | ) | |||
Balance at October 31, 2014 | $ | 650,173 | |||
NOTE_H_FAIR_VALUE_MEASUREMENTS
NOTE H - FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE H – FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company follows the guidance established pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||||||||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. | |||||||||||||||||
Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||||||||||||||||
The table below summarizes the fair values of financial liabilities as of October 31, 2014: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value at | |||||||||||||||||
October 31, | |||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative liabilities | $ | 755,571 | - | - | $ | 755,571 | |||||||||||
The following is a description of the valuation methodologies used for these items: | |||||||||||||||||
Derivative liability — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life. | |||||||||||||||||
The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC Topic 825 “The Fair Value Option for Financial Issuances”. | |||||||||||||||||
Changes in Derivative liability during the six months ended October 31, 2014 were: | |||||||||||||||||
Increased | Decrease | ||||||||||||||||
April 30, | During | in Fair | October 31, | ||||||||||||||
2014 | Period | Value | 2014 | ||||||||||||||
Derivative liability | $ | 601,000 | $ | 465,047 | $ | 310,476 | $ | 755,571 | |||||||||
Total | $ | 601,000 | $ | 465,047 | $ | 310,476 | $ | 755,571 | |||||||||
NOTE_I_NONCASH_FINANCIAL_INFOR
NOTE I - NON-CASH FINANCIAL INFORMATION | 6 Months Ended | |
Oct. 31, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ||
Additional Financial Information Disclosure [Text Block] | NOTE I – NON-CASH FINANCIAL INFORMATION | |
During the six months ended October 31, 2014, the Company: | ||
● | issued 888,365 shares of common stock upon the conversion of convertible notes and accrued interest in the amount of $325,463, of which 122,451 shares were classified as to be issued at April 30, 2014 and 153,910 shares remained to be issued at October 31, 2014, | |
● | issued 156,644 shares of common stock valued at $60,619 pursuant to terms of various notes of which 16,666 were classified as to be issued at April 30, 2014 and 60,000 shares remained to be issued at October 31, 2014, and | |
● | issued 138,160 shares of common stock in payment of $47,064 in accounts payable of which 20,000 shares were classified as to be issued at April 30, 2014. | |
NOTE_J_SUBSEQUENT_EVENTS
NOTE J - SUBSEQUENT EVENTS | 6 Months Ended | |
Oct. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | NOTE J – SUBSEQUENT EVENTS | |
During November and through December 19, 2014, the Company: | ||
Issued 605,179 shares of common stock upon the conversion of $76,020 of notes and accrued interest thereon. | ||
· | Sold 1,193,288 shares of common stock to four accredited investors for $123,400. | |
· | Issued 123,813 shares valued at $20,567 pursuant to the terms of notes. | |
· | Issued 362,000 shares of common stock valued at $109,990 to a consultant. | |
· | Issued 211,682 shares listed as to be issued at October 31, 2014. | |
· | Borrowed pursuant to a $55,125, 8% note due December 12, 2015. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. This lender has committed to lend the Company an additional $52,500 under the same terms on or before August 9, 2015 so long as the Company continues to meet the current information requirements under Rule 144 of the Securities Act of 1933, as amended. | |
· | Borrowed pursuant to a $33,000, 8% note due August 19, 2015. The note is convertible at the note holder’s option at a variable conversion price of 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | |
· | Borrowed $55,000 pursuant to a $220,000, 10% note due November 24, 2015. The note holder has the right but not the obligation, subject to the Company’s agreement, to advance the remaining $165,000 balance of the note on or before the due date. The note is convertible at the note holder’s option at a variable conversion prices of 58% multiplied by the lowest closing price for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | |
Borrowed $65,000 pursuant to a $100,000, 8% secured note due July 31, 2016, and re-classed $35,000 of existing debt due this note holder into this note. The Company issued this note holder 100,000 shares of common stock as inducement for this loan. The note is secured by a $76,610 security deposit. | ||
NOTE_K_GOING_CONCERN_MATTERS
NOTE K - GOING CONCERN MATTERS | 6 Months Ended |
Oct. 31, 2014 | |
Going Concern Disclosure [Abstract] | |
Going Concern Disclosure [Text Block] | |
NOTE K– GOING CONCERN MATTERS | |
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements during the period July 1, 2004 (date of inception) through October 31, 2014, the Company incurred loss of $45,920,041. Of these losses, $1,662,735 was incurred in the six months ending October 31, 2014. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time. | |
The Company’s existence is dependent upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company’s efforts will be successful. However, there can be no assurance can be given that management’s actions will result in profitable operations or the resolution of its liquidity problems. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. | |
In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional equity financing through discussions with investment bankers and private investors. There can be no assurance the Company will be successful in its effort to secure additional equity financing. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | |
Oct. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements as of October 31, 2014 and for the three and six month periods ended October 31, 2014 and 2013 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended April 30, 2014 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission. | ||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Specialty Reports, Inc. All significant inter-company transactions and balances have been eliminated in consolidation. | ||
Use of Estimates, Policy [Policy Text Block] | Estimates | |
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | ||
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations | |
As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. | ||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |
Revenues from history report and mobile app products are recognized on a cash basis. | ||
The Company’s leases, which are included in Discontinued Operations, are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as “motorcycles under operating leases-net”. The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the Company’s original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the “Residual”). Monthly lease payments are recognized as rental income. | ||
Direct financing leases are recorded at the gross amount of the lease receivable (principal amount of the contract plus the calculated earned income over the life of the contract), and the unearned income at lease inception is amortized over the lease term. | ||
The Company’s Retail Installment Sales Contracts (“RISC”), which are included in Discontinued Operations, are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans. Upon purchase, the RISCs appear on the Company’s balance sheet as RISC loan receivable current and long term. Interest income on these loans is recognized when it is earned. | ||
The Company realizes gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity as a result of the lessee’s voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle’s net book value. | ||
Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee’s early termination. In those instances, the Company receives the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee’s insurer. The Company records a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. | ||
Inventory, Policy [Policy Text Block] | Inventories | |
Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value. | ||
Website Development Costs [Policy Text Block] | Website Development Costs | |
The Company recognizes website development costs in accordance with Accounting Standards Codification (“ASC”) 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses. | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents | |
For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. | ||
Income Tax, Policy [Policy Text Block] | Income Taxes | |
Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Uncertainty in Income Taxes (“ASC 740-10”)." Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards. 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 removed or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. | ||
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions. As a result of implementing ASC 740-10, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2014 or the three months or six months ended October 31, 2014. | ||
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements | |
The Company adopted ASC 820, “Fair Value Measurements (“ASC 820”).” ASC 820 establishes a three-level 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 the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities. The three levels of the fair value hierarchy under ASC 820 are described below: | ||
· | Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. | |
· | Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |
· | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation. | |
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. | ||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets | |
In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | ||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income | |
In accordance with ASC 220-10, “Reporting Comprehensive Income,” (“ASC 220-10”) establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. At October 31, 2014 and April 30, 2014, the Company has no items of other comprehensive income. | ||
Segment Reporting, Policy [Policy Text Block] | Segment Information | |
The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information,” “ASC 208-10”). ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments. | ||
In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2013, the Company has discontinued segment reporting. | ||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based Compensation | |
The Company adopted ASC 718-10, “Compensation-Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years. | ||
ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate. | ||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk | |
Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. | ||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | |
Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows: | ||
Leasehold improvements | 3 years | |
Furniture and fixtures | 7 years | |
Website costs | 3 years | |
Computer Equipment | 5 years | |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | |
The Company follows a policy of charging the costs of advertising to expenses incurred. During the six months ended October 31, 2014 and 2013, the Company incurred advertising costs of $3,819 and $8,500, respectively. During the three months ended October 31, 2014 and 2013, the Company incurred advertising expenses of zero and $4,250, respectively. | ||
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Share | |
The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. | ||
Per share basic and diluted net loss attributable to common stockholders amounted to $0.05 and $0.05 for the three months ended October 31, 2014 and 2013, respectively, and $0.07 and $0.08 for the six months ended October 31, 2014 and 2013, respectively. At October 31, 2014 and 2013, 8,789,459 and 5,586,766 potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. | ||
Liquidity Disclosure [Policy Text Block] | Liquidity | |
As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred a net loss attributed to common stockholders of $1,662,735 and $1,237,064 during the six months ended October 31, 2014 and October 31, 2013, respectively. The Company’s liabilities exceed its assets by $4,513,411 as of October 31, 2014. | ||
Reclassification, Policy [Policy Text Block] | Reclassifications | |
Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses. | ||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | |
There were various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows. |
NOTE_A_SUMMARY_OF_ACCOUNTING_P1
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables) (Estimated Useful Lives [Member]) | 6 Months Ended | |
Oct. 31, 2014 | ||
Estimated Useful Lives [Member] | ||
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables) [Line Items] | ||
Property, Plant and Equipment [Table Text Block] | Estimated useful lives of major depreciable assets are as follows: | |
Leasehold improvements | 3 years | |
Furniture and fixtures | 7 years | |
Website costs | 3 years | |
Computer Equipment | 5 years |
NOTE_B_PROPERTY_AND_EQUIPMENT_
NOTE B - PROPERTY AND EQUIPMENT (Tables) (Property and Equipment [Member]) | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property and Equipment [Member] | |||||||||
NOTE B - PROPERTY AND EQUIPMENT (Tables) [Line Items] | |||||||||
Property, Plant and Equipment [Table Text Block] | Major classes of property and equipment at October 31, 2014 and April 30, 2014 consist of the followings: | ||||||||
October 31, | April 30, | ||||||||
2014 | 2014 | ||||||||
Computer equipment, software and furniture | $ | 209,341 | $ | 209,341 | |||||
Less: accumulated depreciation | (201,160 | ) | (199,367 | ) | |||||
Net property and equipment | $ | 8,181 | $ | 9,974 |
NOTE_C_DISCONTINUED_OPERATIONS1
NOTE C - DISCONTINUED OPERATIONS (Tables) (Consumer Lease and Loan Lines of Business [Member]) | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Consumer Lease and Loan Lines of Business [Member] | |||||||||
NOTE C - DISCONTINUED OPERATIONS (Tables) [Line Items] | |||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table presents summarized operating results for those discontinued operations. | ||||||||
Six Months Ended | |||||||||
October 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
Revenues | $ | 23,163 | $ | 58,997 | |||||
Net (loss) | $ | (111,017 | ) | $ | (278,613 | ) | |||
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | Motorcycles and other vehicles under operating leases at October 31, 2014 and April 30, 2014: | ||||||||
October 31, | April 30, | ||||||||
2014 | 2014 | ||||||||
Motorcycles and other vehicles | $ | 33,518 | $ | 60,686 | |||||
Less: accumulated depreciation | (3,525 | ) | (3,986 | ) | |||||
Motorcycles and other vehicles, net of accumulated depreciation | 29,992 | 56,700 | |||||||
Less: estimated reserve for residual values | (957 | ) | (1,030 | ) | |||||
Motorcycles and other vehicles under operating leases, net | $ | 29,036 | $ | 55,670 | |||||
Schedule of Short-term Debt [Table Text Block] | October 31, | April 30, | |||||||
2014 | 2014 | ||||||||
Secured, subordinated individual lender (a) | $ | 85,385 | $ | 117,508 | |||||
Secured, subordinated individual lender (b) | 12,080 | 12,912 | |||||||
Total | $ | 97,465 | $ | 130,420 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | At October 31, 2014, the notes payable mature as follows: | ||||||||
Year ended October 31, | Amount | ||||||||
2015 | $ | 97,465 | |||||||
Total Due | $ | 97,465 |
NOTE_D_NOTES_PAYABLE_Tables
NOTE D - NOTES PAYABLE (Tables) | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
NOTE D - NOTES PAYABLE (Tables) [Line Items] | |||||||||
Schedule of Debt [Table Text Block] | Notes Payable | October 31, | April 30, | ||||||
2014 | 2014 | ||||||||
Notes convertible at holder’s option (a) | $ | 2,167,358 | $ | 1,901,263 | |||||
Notes with interest only convertible at Company’s option (b) | 390,000 | 390,000 | |||||||
Non-convertible notes payable (c) | 180,000 | 25,000 | |||||||
Subtotal | 2,737,357 | 2,316,263 | |||||||
Less, Debt discount | (366,434 | ) | (296,384 | ) | |||||
Total | $ | 2,370,923 | $ | 2,019,879 | |||||
(a) Notes convertible at holder’s option consists of: | |||||||||
(i) a $1,258,368, 8% note originally due April 30, 2013, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. In fiscal 2012, the Company had recorded a $663,403 beneficial conversion discount for this note which was fully amortized during fiscal 2013; | |||||||||
(ii) a $56,500, 6% note due June 30, 2015. The Company has recorded beneficial conversion discounts totaling $56,500 for the note. The discount is being fully amortized over the terms of the note. The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 1,356,993 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; | |||||||||
(iii) a $25,000, 12% convertible note due May 27, 2014. The note is convertible at $0.59 per share. If the Company has not redeemed the outstanding principal and accrued interest of this Debenture in cash by the Maturity Date and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph 12, the Debenture shall be considered past due but not in default. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan and a $50,000, 12% note, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2012, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; | |||||||||
(iv) seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%, the Company is paying 667 monthly penalty shares until the note is paid in full on one $25,000 note which had been past due, all of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; | |||||||||
(v) three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; | |||||||||
(vi) a $59,000, 5% convertible note due April 16, 2015. This lender has committed to lend up to $330,000 (three hundred thousand) in the form of a $165,000 note. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The second note has been amended to include a 3% closing fee on the amount of each sum advanced plus a 5% due diligence fee on the amount of each sum advanced. The combined fees shall be added to the sum advanced for all purposes under the Note, including when calculating the amount of the interest charge. The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $39,784 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note; | |||||||||
(vii) a $13,720 outstanding balance of a $27,500, 5% convertible note due October 21, 2014, a $27,500, 5% convertible note due January 28, 2015 and a $27,500, 5% convertible note due April 29, 2015. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $49,085 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; $500 outstanding balance on a $13,900, and 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded an $11,158 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; and $625 outstanding balance on a $60,000, 12% convertible note due March 20, 2015. The Conversion Price for this note is 65% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded a $32,309 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; | |||||||||
(viii) a $55,000 8% convertible note due February 25, 2015 and a $55,000 convertible note due April 27, 2015. Both notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $99,161 beneficial conversion discount for the two notes. The discount is being fully amortized over the initial term of the notes. The Company had reserved up to 918,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the note is not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full; | |||||||||
(ix) a $42,500, 8% note due February 2, 2015, $37,500, 8% note due April 27, 2015, a$32,500, 8% note due June 3, 2015 and a $33,000, 8% note due July 14, 2015. The Company has recorded a beneficial conversion discount of $114,215 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 2,900,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full; | |||||||||
(x) a $20,000 outstanding balance of a $40,000, 6% note due April 3, 2015. In fiscal 2014, the Company has recorded a beneficial conversion discount of $20,085 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at the lesser of $1.20 or a variable conversion of 65% multiplied by the lowest VWAP in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 310,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full; and | |||||||||
(xi) a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and | |||||||||
(xii) a $50,000, 8% note due December 20, 2014. The Company has recorded a beneficial conversion discount of $36,207 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 340,000 shares of its common stock for conversion pursuant to the terms of the note, and a $55,000, 12% note due February 19, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 325,000 shares of its common stock for conversion pursuant to the terms of the note. | |||||||||
(b) Notes with interest only convertible at Company’s option consist of: | |||||||||
(i) a 22% note in the amount of $10,000 due May 31, 2015; | |||||||||
(ii) a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share; | |||||||||
(iii) a $315,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period; | |||||||||
(iv) a $25,000 8% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.35 per share; and a | |||||||||
(v) $15,000 5% note due May 31, 2015, the Company agreed to issue the note holder 5,000 shares of its common stock in connection with this loan. | |||||||||
(c) Non-convertible notes consist of: | |||||||||
(i) a $25,000 note due May 31, 2015 which bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid; | |||||||||
(ii) a $75,000, 20% note due March 18, 2015. The note is secured by 640,197 shares of the Company’s restricted common stock. The Company issued this Noteholder 106,700 shares of restricted common stock as inducement for the loan; and | |||||||||
(iii) two $20,000, 8% notes due January 5, 2015. The notes are secured by a $37,401 security deposit. In case of default the interest rate is increased to eighteen percent and the Company shall issue each noteholder 10,000 shares of its restricted common stock for every ten day period the notes remain unpaid. | |||||||||
(iv) a $40,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan. | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The value of the derivative liability was re-assessed as of October 31, 2014 resulting in a gain to the consolidated statement of operations of $8,704 for the six months ended October31, 2014 and a loss to the consolidated statement of operations of $203,825 for the three months ended October 31, 2014. | ||||||||
October 31, | |||||||||
2014 | |||||||||
Opening balance, April 30, 2014 | $ | 601,000 | |||||||
Derivative liability reclassified to additional paid in capital | (81,821 | ) | |||||||
Derivative financial liability arising on the issue of convertible notes | 465,047 | ||||||||
Fair value adjustments | (228,655 | ) | |||||||
Closing balance | $ | 755,571 | |||||||
Warrant [Member] | |||||||||
NOTE D - NOTES PAYABLE (Tables) [Line Items] | |||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The change in fair value of the derivative liabilities of warrants outstanding at October 31, 2014 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows: | ||||||||
Significant Assumptions: | |||||||||
Risk free interest rate | Ranging from | 0.15 | % | to | 1.02 | % | |||
Expected stock price volatility | 140 | % | |||||||
Expected dividend payout | 0 | ||||||||
Expected options life in years | Ranging from | 0.15 | year | to | 3.17 | years | |||
Debt [Member] | |||||||||
NOTE D - NOTES PAYABLE (Tables) [Line Items] | |||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The change in fair value of the derivative liabilities of convertible notes outstanding at October 31, 2014 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows: | ||||||||
Significant Assumptions: | |||||||||
Risk free interest rate | Ranging from | 0.039 | % | to | 0.074 | % | |||
Expected stock price volatility | 140 | % | |||||||
Expected dividend payout | 0 | ||||||||
Expected options life in years | Ranging from | 0.22 | year | to | 0.9 | year | |||
NOTE_G_NONCONTROLLING_INTEREST1
NOTE G - NONCONTROLLING INTEREST (Tables) | 6 Months Ended | ||||
Oct. 31, 2014 | |||||
Noncontrolling Interest [Abstract] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | For the six months ended October 31, 2014, the non-controlling interest is summarized as follows: | ||||
Amount | |||||
Balance at April 30, 2014 | $ | 669,424 | |||
Noncontrolling interest’s share of losses | (19,251 | ) | |||
Balance at October 31, 2014 | $ | 650,173 |
NOTE_H_FAIR_VALUE_MEASUREMENTS1
NOTE H - FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The table below summarizes the fair values of financial liabilities as of October 31, 2014: | ||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value at | |||||||||||||||||
October 31, | |||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Derivative liabilities | $ | 755,571 | - | - | $ | 755,571 | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | Changes in Derivative liability during the six months ended October 31, 2014 were: | ||||||||||||||||
Increased | Decrease | ||||||||||||||||
April 30, | During | in Fair | October 31, | ||||||||||||||
2014 | Period | Value | 2014 | ||||||||||||||
Derivative liability | $ | 601,000 | $ | 465,047 | $ | 310,476 | $ | 755,571 | |||||||||
Total | $ | 601,000 | $ | 465,047 | $ | 310,476 | $ | 755,571 |
NOTE_A_SUMMARY_OF_ACCOUNTING_P2
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 124 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | |
Accounting Policies [Abstract] | |||||
Advertising Expense | $0 | $4,250 | $3,819 | $8,500 | |
Earnings Per Share, Basic and Diluted (in Dollars per share) | ($0.05) | ($0.05) | ($0.07) | ($0.08) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 8,789,459 | 5,586,766 | |||
Net Income (Loss) Attributable to Parent | -1,154,306 | -737,302 | -1,662,735 | -1,237,064 | -45,920,041 |
Working Capital (Deficit) | $4,513,411 | $4,513,411 | $4,513,411 |
NOTE_A_SUMMARY_OF_ACCOUNTING_P3
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property and Equipment | 6 Months Ended |
Oct. 31, 2014 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 7 years |
Website Costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 3 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 5 years |
NOTE_B_PROPERTY_AND_EQUIPMENT_1
NOTE B - PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation, Depletion and Amortization | $897 | $357 | $1,793 | $2,778 |
NOTE_B_PROPERTY_AND_EQUIPMENT_2
NOTE B - PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Schedule of Property and Equipment [Abstract] | ||
Computer equipment, software and furniture | $209,341 | $209,341 |
Less: accumulated depreciation | -201,160 | -199,367 |
Net property and equipment | $8,181 | $9,974 |
NOTE_C_DISCONTINUED_OPERATIONS2
NOTE C - DISCONTINUED OPERATIONS (Details) (USD $) | 6 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2008 | Apr. 30, 2009 | Apr. 30, 2009 | |
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Depreciation and Amortization, Discontinued Operations | $10,902 | $0 | |||||
Vehicles [Member] | Consumer Lease and Loan Lines of Business [Member] | |||||||
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Depreciation and Amortization, Discontinued Operations | 10,902 | 29,411 | |||||
Consumer Other Financing Receivable [Member] | Consumer Lease and Loan Lines of Business [Member] | |||||||
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 19,016 | 20,345 | |||||
Financing Receivable, Recorded Investment, Past Due | 3,395 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 2,500 | 1,124 | |||||
Secured Debt [Member] | Minimum [Member] | Consumer Lease and Loan Lines of Business [Member] | |||||||
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Debt Instrument, Term | 1 year | ||||||
Secured Debt [Member] | Maximum [Member] | Consumer Lease and Loan Lines of Business [Member] | |||||||
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Debt Instrument, Term | 5 years | ||||||
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member] | |||||||
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 15.29% | ||||||
Property, Plant and Equipment, Additions | 100,000 | ||||||
Payments to Acquire Property, Plant, and Equipment | 80,000 | 10,000 | |||||
Other Accrued Liabilities | 10,000 | ||||||
Debt Instrument, Face Amount | 150,000 | ||||||
Proceeds from Secured Notes Payable | 100,000 | ||||||
Debt Instrument, Payment Terms | Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. | ||||||
Debt Instrument, Maturity Date | 1-May-14 | ||||||
Debt Conversion, Converted Instrument, Amount | 50,000 | ||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 60,606 | ||||||
Disposal Group, Including Discontinued Operation, Other Liabilities | $12,080 |
NOTE_C_DISCONTINUED_OPERATIONS3
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Abstract] | ||||
Revenues | $23,163 | $58,997 | ||
Net (loss) | ($16,653) | ($267,992) | ($111,017) | ($278,613) |
NOTE_C_DISCONTINUED_OPERATIONS4
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Property Subject to or Available for Operating Lease (Consumer Lease and Loan Lines of Business [Member], USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Consumer Lease and Loan Lines of Business [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Motorcycles and other vehicles | $33,518 | $60,686 |
Less: accumulated depreciation | -3,525 | -3,986 |
Motorcycles and other vehicles, net of accumulated depreciation | 29,992 | 56,700 |
Less: estimated reserve for residual values | -957 | -1,030 |
Motorcycles and other vehicles under operating leases, net | $29,036 | $55,670 |
NOTE_C_DISCONTINUED_OPERATIONS5
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Short-term Debt (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | ||
Short-term Debt [Line Items] | ||||
Senior subordinated notes | $97,465 | $130,420 | ||
RISCs and Leases Financed Through Third Parties [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member] | ||||
Short-term Debt [Line Items] | ||||
Senior subordinated notes | 85,385 | [1] | 117,508 | [1] |
Senior Note to Purchase Portfolio [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member] | ||||
Short-term Debt [Line Items] | ||||
Senior subordinated notes | 12,080 | [2] | 12,912 | [2] |
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member] | ||||
Short-term Debt [Line Items] | ||||
Senior subordinated notes | $97,465 | $130,420 | ||
[1] | The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2014 is 15.29%. | |||
[2] | On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases ("Purchased Portfolio") for a total purchase price of $100,000. The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2014, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 ("Senior Secured Note") in exchange for $100,000 from the holder. Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2014, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2014, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company's restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2014, has been extended to August 31, 2015. |
NOTE_C_DISCONTINUED_OPERATIONS6
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt [Line Items] | ||
Total Due | $2,370,923 | $2,019,879 |
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member] | ||
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt [Line Items] | ||
2015 | 97,465 | |
Total Due | $97,465 |
NOTE_D_NOTES_PAYABLE_Details
NOTE D - NOTES PAYABLE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2012 | Oct. 30, 2014 | |
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Amortization of Debt Discount (Premium) | $189,324 | $120,451 | $314,065 | $195,942 | $417,291 | ||
Derivative Liability | 755,571 | 755,571 | 601,000 | ||||
Derivative, Gain (Loss) on Derivative, Net | -203,825 | 27,403 | 8,704 | -26,720 | |||
Debt [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Increase (Decrease) in Derivative Liabilities | 221,450 | ||||||
Derivative Liability | 583,800 | 583,800 | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | 81,821 | ||||||
Warrant [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Increase (Decrease) in Derivative Liabilities | 66,878 | ||||||
Derivative Liability | 171,771 | 171,771 | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #1 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 1,258,368 | 1,258,368 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 30-Apr-13 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.50 | $0.50 | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 663,403 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #2 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 56,500 | 56,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||
Debt Instrument, Maturity Date | 30-Jun-15 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 56,500 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 1,356,993 | 1,356,993 | |||||
Debt Instrument, Default Interest Rate, Percentage | 18.00% | 18.00% | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #3 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 25,000 | 25,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||
Debt Instrument, Maturity Date | 27-May-14 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.59 | $0.59 | |||||
Debt Instrument, Description | If the Company has not redeemed the outstanding principal and accrued interest of this Debenture in cash by the Maturity Date and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph 12, the Debenture shall be considered past due but not in default. | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 5,000 | ||||||
Convertible Notes Payable [Member] | Additional Note Issued with Note Convertible at Holder's Option #3 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 50,000 | 50,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||
Debt Instrument, Maturity Date | 20-Mar-15 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.59 | $0.59 | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 50,000 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 10,000 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #4 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 118,250 | 118,250 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 15-Aug-15 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.25 | $0.25 | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 5,340 | ||||||
Number of Notes | 7 | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 15.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 20.00% | ||||||
Debt Instrument, Monthly Penalty Shares (in Shares) | 667 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #5 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 106,250 | 106,250 | |||||
Debt Instrument, Maturity Date | 15-Aug-15 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.25 | $0.25 | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 6,120 | ||||||
Number of Notes | 3 | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 20.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 25.00% | ||||||
Accrued Interest, Monthly Compounding Interest Rate | 8.00% | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #6 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 59,000 | 59,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 39,784 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Conversion Price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $39,784 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note;(vii) a $13,720 outstanding balance of a $27,500, 5% convertible note due October 21, 2014, a $27,500, 5% convertible note due January 28, 2015 and a $27,500, 5% convertible note due April 29, 2015. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. | ||||||
Debt Instrument, Description | This lender has committed to lend up to $330,000 (three hundred thousand) in the form of a $165,000 note. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The second note has been amended to include a 3% closing fee on the amount of each sum advanced plus a 5% due diligence fee on the amount of each sum advanced. The combined fees shall be added to the sum advanced for all purposes under the Note, including when calculating the amount of the interest charge. The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $39,784 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note;(vii) a $13,720 outstanding balance of a $27,500, 5% convertible note due October 21, 2014, a $27,500, 5% convertible note due January 28, 2015 and a $27,500, 5% convertible note due April 29, 2015. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. | ||||||
Debt Instrument, Amendment Description | The second note has been amended to include a 3% closing fee on the amount of each sum advanced plus a 5% due diligence fee on the amount of each sum advanced. The combined fees shall be added to the sum advanced for all purposes under the Note, including when calculating the amount of the interest charge. | ||||||
Debt Instrument, Maturity Date, Description | The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #7-A [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 27,500 | 27,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date | 21-Oct-14 | ||||||
Convertible Notes Payable | 13,720 | 13,720 | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #7-B [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 27,500 | 27,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date | 28-Jan-15 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #7-C [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 27,500 | 27,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date | 29-Apr-15 | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #7 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 49,085 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Conversion Price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). | ||||||
Debt Instrument, Description | This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. | ||||||
Debt Instrument, Payment Terms | The maturity date of each note is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #7-D [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 13,900 | 13,900 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | |||||
Debt Instrument, Maturity Date | 1-Jun-14 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 11,158 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). | ||||||
Convertible Notes Payable, Current | 500 | 500 | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #7-E [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 60,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||
Debt Instrument, Maturity Date | 20-Mar-15 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 32,309 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Conversion Price for this note is 65% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). | ||||||
Convertible Notes Payable, Current | 625 | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #8-A [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 55,000 | 55,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 25-Feb-15 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #8-B [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 55,000 | 55,000 | |||||
Debt Instrument, Maturity Date | 27-Apr-15 | ||||||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option #8 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 99,161 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 918,000 | 918,000 | |||||
Debt Instrument, Debt Default, Description of Violation or Event of Default | In the event the note is not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #9-A [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 42,500 | 42,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 2-Feb-15 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #9-B [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 37,500 | 37,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 27-Apr-15 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #9-C [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 32,500 | 32,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 3-Jun-15 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #9-D [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 33,000 | 33,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 114,215 | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #9 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 2,900,000 | 2,900,000 | |||||
Debt Instrument, Debt Default, Description of Violation or Event of Default | In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #10 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 40,000 | 40,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 20,085 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at the lesser of $1.20 or a variable conversion of 65% multiplied by the lowest VWAP in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 310,000 | 310,000 | |||||
Convertible Notes Payable | 20,000 | 20,000 | |||||
Debt Instrument, Debt Default, Description of Violation or Event of Default | In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full | ||||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #11 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 44,770 | 44,770 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 35,816 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted. | ||||||
Debt Instrument, Default Interest Rate, Percentage | 18.00% | 18.00% | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #12-A [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 50,000 | 50,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 20-Dec-14 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 36,207 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 340,000 | 340,000 | |||||
Convertible Notes Payable [Member] | Note Convertible at Holder's Option #12-B [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 55,000 | 55,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||
Debt Instrument, Maturity Date | 19-Feb-15 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 48,015 | ||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 325,000 | 325,000 | |||||
Convertible Notes Payable [Member] | Interest Only Note Convertible at Company's Option #1 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 10,000 | 10,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 22.00% | 22.00% | |||||
Debt Instrument, Maturity Date | 31-May-15 | ||||||
Convertible Notes Payable [Member] | Interest Only Note Convertible at Company's Option #2 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 25,000 | 25,000 | |||||
Debt Instrument, Maturity Date | 31-Oct-13 | ||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $1.50 | $1.50 | |||||
Debt Instrument, Monthly Penalty Shares (in Shares) | 3,333 | ||||||
Convertible Notes Payable [Member] | Interest Only Note Convertible at Company's Option #3 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 315,000 | 315,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.46% | 12.46% | |||||
Debt Instrument, Payment Terms | Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period | ||||||
Convertible Notes Payable [Member] | Interest Only Note Convertible at Company's Option #4 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 25,000 | 25,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.35 | $0.35 | |||||
Debt Instrument, Payment Terms | 31-May-15 | ||||||
Stock Issued During Period, Shares, Other (in Shares) | 5,000 | ||||||
Convertible Notes Payable [Member] | Interest Only Note Convertible at Company's Option #5 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 15,000 | 15,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date | 31-May-15 | ||||||
Stock Issued During Period, Shares, Other (in Shares) | 5,000 | ||||||
Loans Payable [Member] | Note Payable #1 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 25,000 | 25,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | |||||
Debt Instrument, Maturity Date | 31-May-15 | ||||||
Stock Issued During Period, Shares, Other (in Shares) | 1,000 | ||||||
Loans Payable [Member] | Notes Payable #2 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 75,000 | 75,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 20.00% | 20.00% | |||||
Debt Instrument, Maturity Date | 18-Mar-15 | ||||||
Stock Issued During Period, Shares, Other (in Shares) | 106,700 | ||||||
Debt Instrument, Collateral | secured by 640,197 shares of the Company’s restricted common stock | ||||||
Loans Payable [Member] | Note Payable #3 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | 20,000 | 20,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 5-Jan-15 | ||||||
Number of Notes | 2 | ||||||
Debt Instrument, Debt Default, Description of Violation or Event of Default | In case of default the interest rate is increased to eighteen percent and the Company shall issue each noteholder 10,000 shares of its restricted common stock for every ten day period the notes remain unpaid. | ||||||
Debt Instrument, Collateral Amount | 37,401 | 37,401 | |||||
Loans Payable [Member] | Note Payable #4 [Member] | |||||||
NOTE D - NOTES PAYABLE (Details) [Line Items] | |||||||
Debt Instrument, Face Amount | $40,000 | $40,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Maturity Date | 31-Dec-14 | ||||||
Stock Issued During Period, Shares, Other (in Shares) | 10,000 |
NOTE_D_NOTES_PAYABLE_Details_S
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | ||
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items] | ||||
Note payable, gross | $2,737,357 | $2,316,263 | ||
Less, Debt discount | -366,434 | -296,384 | ||
Total | 2,370,923 | 2,019,879 | ||
Convertible Notes Payable [Member] | Notes Convertible at Holder's Option [Member] | ||||
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items] | ||||
Note payable, gross | 2,167,358 | [1] | 1,901,263 | [1] |
Convertible Notes Payable [Member] | Notes with Interest Only, Convertible at Company's Option [Member] | ||||
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items] | ||||
Note payable, gross | 390,000 | [2] | 390,000 | [2] |
Loans Payable [Member] | ||||
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items] | ||||
Note payable, gross | $180,000 | [3] | $25,000 | [3] |
[1] | (a) Notes convertible at holder's option consists of:(i) a $1,258,368, 8% note originally due April 30, 2013, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder's option at $0.495 per share. In fiscal 2012, the Company had recorded a $663,403 beneficial conversion discount for this note which was fully amortized during fiscal 2013; (ii) a $56,500, 6% note due June 30, 2015. The Company has recorded beneficial conversion discounts totaling $56,500 for the note. The discount is being fully amortized over the terms of the note. The note is convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 1,356,993 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;(iii) a $25,000, 12% convertible note due May 27, 2014. The note is convertible at $0.59 per share. If the Company has not redeemed the outstanding principal and accrued interest of this Debenture in cash by the Maturity Date and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company's restricted common stock or (ii) the number of shares of the Company's restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph 12, the Debenture shall be considered past due but not in default. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan and a $50,000, 12% note, due March 20, 2015, convertible at the holder's option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2012, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note;(iv) seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%, the Company is paying 667 monthly penalty shares until the note is paid in full on one $25,000 note which had been past due, all of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; (v) three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; (vi) a $59,000, 5% convertible note due April 16, 2015. This lender has committed to lend up to $330,000 (three hundred thousand) in the form of a $165,000 note. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The second note has been amended to include a 3% closing fee on the amount of each sum advanced plus a 5% due diligence fee on the amount of each sum advanced. The combined fees shall be added to the sum advanced for all purposes under the Note, including when calculating the amount of the interest charge. The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $39,784 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note;(vii) a $13,720 outstanding balance of a $27,500, 5% convertible note due October 21, 2014, a $27,500, 5% convertible note due January 28, 2015 and a $27,500, 5% convertible note due April 29, 2015. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable. The Conversion Price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $49,085 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; $500 outstanding balance on a $13,900, and 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded an $11,158 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; and $625 outstanding balance on a $60,000, 12% convertible note due March 20, 2015. The Conversion Price for this note is 65% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $15,000, and the conversion price shall be redefined to equal the lesser of (a) $0.005 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). In fiscal 2014, the Company has recorded a $32,309 beneficial conversion discount for the note. The discount is being fully amortized over the term of the note; (viii) a $55,000 8% convertible note due February 25, 2015 and a $55,000 convertible note due April 27, 2015. Both notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $99,161 beneficial conversion discount for the two notes. The discount is being fully amortized over the initial term of the notes. The Company had reserved up to 918,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the note is not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full; (ix) a $42,500, 8% note due February 2, 2015, $37,500, 8% note due April 27, 2015, a$32,500, 8% note due June 3, 2015 and a $33,000, 8% note due July 14, 2015. The Company has recorded a beneficial conversion discount of $114,215 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 2,900,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full;(x) a $20,000 outstanding balance of a $40,000, 6% note due April 3, 2015. In fiscal 2014, the Company has recorded a beneficial conversion discount of $20,085 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at the lesser of $1.20 or a variable conversion of 65% multiplied by the lowest VWAP in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 310,000 shares of its common stock for conversion pursuant to the terms of the note. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full; and(xi) a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at the rate of 1.5 shares of common stock for each dollar converted. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and(xii) a $50,000, 8% note due December 20, 2014. The Company has recorded a beneficial conversion discount of $36,207 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 340,000 shares of its common stock for conversion pursuant to the terms of the note, and a $55,000, 12% note due February 19, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest trades in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 325,000 shares of its common stock for conversion pursuant to the terms of the note. | |||
[2] | Notes with interest only convertible at Company's option consist of: (i) a 22% note in the amount of $10,000 due May 31, 2015; (ii) a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company's option and on the $25,000 note at the holder's option in cash or in shares at the rate of $1.50 per share;(iii) a $315,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the law suit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company's options calculated as the volume weighted average price of the Company's common stock for the ten day trading period immediately preceding the last day of each three month period;(iv) a $25,000 8% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company's option in cash or in shares at the rate of $0.35 per share; and a(v) $15,000 5% note due May 31, 2015, the Company agreed to issue the note holder 5,000 shares of its common stock in connection with this loan. | |||
[3] | Non-convertible notes consist of: (i) a $25,000 note due May 31, 2015 which bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid; (ii) a $75,000, 20% note due March 18, 2015. The note is secured by 640,197 shares of the Company's restricted common stock. The Company issued this Noteholder 106,700 shares of restricted common stock as inducement for the loan; and (iii) two $20,000, 8% notes due January 5, 2015. The notes are secured by a $37,401 security deposit. In case of default the interest rate is increased to eighteen percent and the Company shall issue each noteholder 10,000 shares of its restricted common stock for every ten day period the notes remain unpaid.(iv) a $40,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan. |
NOTE_D_NOTES_PAYABLE_Details_F
NOTE D - NOTES PAYABLE (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques (Warrant [Member]) | 6 Months Ended | |
Oct. 31, 2014 | Dec. 31, 2014 | |
Minimum [Member] | ||
Significant Assumptions: | ||
Risk free interest rate | 0.15% | |
Expected options life in years | 54 days | |
Maximum [Member] | ||
Significant Assumptions: | ||
Risk free interest rate | 1.02% | |
Expected stock price volatility | 140.00% | |
Expected dividend payout | 0.00% | |
Expected options life in years | 3 years 62 days |
NOTE_D_NOTES_PAYABLE_Details_S1
NOTE D - NOTES PAYABLE (Details) - Schedule of Fair Value of Convertible Notes (Debt [Member], USD $) | 6 Months Ended |
Oct. 31, 2014 | |
Minimum [Member] | |
Significant Assumptions: | |
Risk free interest rate | 0.04% |
Expected options life in years | 80 days |
Maximum [Member] | |
Significant Assumptions: | |
Risk free interest rate | 0.07% |
Expected stock price volatility | 140.00% |
Expected dividend payout (in Dollars per share) | 0 |
Expected options life in years | 328 days |
NOTE_D_NOTES_PAYABLE_Details_F1
NOTE D - NOTES PAYABLE (Details) - Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation (USD $) | 6 Months Ended |
Oct. 31, 2014 | |
Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |
Derivative Liability | $601,000 |
Derivative liability reclassified to additional paid in capital | -81,821 |
Derivative financial liability arising on the issue of convertible notes | 465,047 |
Fair value adjustments | -228,655 |
Derivative Liability | $755,571 |
NOTE_E_LOANS_PAYABLE_TO_RELATE1
NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details) (Officer and Director [Member], USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Officer and Director [Member] | ||
NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details) [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% |
Notes Payable, Related Parties | $385,853 | $385,853 |
NOTE_F_EQUITY_TRANSACTIONS_Det
NOTE F - EQUITY TRANSACTIONS (Details) (USD $) | 0 Months Ended | 6 Months Ended | |
18-May-13 | Oct. 31, 2014 | Apr. 30, 2014 | |
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Stockholders' Equity, Reverse Stock Split | one for seventy-five | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |
Common Stock, Shares Authorized | 740,000,000 | 740,000,000 | |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |
Common Stock, Shares, Outstanding | 24,397,250 | 20,987,353 | |
Common Stock, Shares, Issued | 24,397,250 | 20,987,353 | |
Allocated Share-based Compensation Expense (in Dollars) | $204,388 | ||
Stock Issued During Period, Value, New Issues (in Dollars) | 497,479 | ||
Stock Issued During Period, Value, Other (in Dollars) | 60,619 | ||
Number of employees | 3 | ||
Series A Preferred Stock [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Preferred Stock, Shares Authorized | 35,850 | 35,850 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $100 | $100 | |
Preferred Stock, Shares Issued | 125 | 125 | |
Preferred Stock, Shares Outstanding | 125 | 125 | |
Dividends Payable (in Dollars) | 7,186 | 6,803 | |
Preferred Stock, Dividend Payment Terms | At the Company’s option, these dividends may be paid in shares of the Company’s Common Stock. | ||
Series B Preferred Stock [Member] | Principal [Member] | Redemption of Preferred Shares for Note Subscription Receivable [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Notes Issued (in Dollars) | 1,215,000 | ||
Series B Preferred Stock [Member] | Accrued Interest [Member] | Redemption of Preferred Shares for Note Subscription Receivable [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Notes Issued (in Dollars) | 116,107 | ||
Series B Preferred Stock [Member] | Redemption of Preferred Shares for Note Subscription Receivable [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Stock Redeemed or Called During Period, Shares | 90 | ||
Common stock to be issued, shares | 43.11 | ||
Series B Preferred Stock [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Preferred Stock, Shares Authorized | 1,000 | 1,000 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $10,000 | ||
Preferred Stock, Shares Issued | 67 | 157 | |
Preferred Stock, Shares Outstanding | 67 | 157 | |
Preferred Stock, to be Issued | 29.37 | ||
Series C Preferred Stock [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Preferred Stock, Shares Authorized | 200,000 | 200,000 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $10 | ||
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Conversion of Convertible Notes and Accrued Interest [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Common stock to be issued, shares | 153,910 | 122,451 | |
Debt Conversion, Converted Instrument, Shares Issued | 888,365 | ||
Debt Conversion, Original Debt, Amount (in Dollars) | 325,463 | ||
Stock Issued for Cash [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Common stock to be issued, shares | 101,877 | ||
Stock Issued During Period, Shares, New Issues | 2,038,519 | ||
Number of Accredited Investors | 18 | ||
Stock Issued During Period, Value, New Issues (in Dollars) | 497,479 | ||
Stock to be Issued | 185,900 | ||
Stock Issued to Note Holder Pursuant to Terms of Note [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Common stock to be issued, shares | 60,000 | 16,666 | |
Debt Conversion, Converted Instrument, Shares Issued | 156,644 | ||
Debt Conversion, Original Debt, Amount (in Dollars) | 60,619 | ||
Stock Issued During Period, Shares, Other | 207,787 | ||
Stock Issued During Period, Value, Other (in Dollars) | 60,619 | ||
Stock Issued to Consultants [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services | 240,109 | ||
Stock Issued During Period, Value, Issued for Services (in Dollars) | 126,928 | ||
Shares Issued in Lieu of Payment of Accounts Payable [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Common stock to be issued, shares | 20,000 | ||
Stock Issued During Period, Shares, Other | 138,160 | ||
Stock Issued During Period, Value, Other (in Dollars) | 47,064 | ||
Exchange for Outstanding Stock Options [Member] | |||
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 31,780 | ||
Stock Issued During Period, Value, Stock Options Exercised (in Dollars) | $14,269 |
NOTE_G_NONCONTROLLING_INTEREST2
NOTE G - NONCONTROLLING INTEREST (Details) - Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Balance at April 30, 2014 | $669,424 | |||
Noncontrolling interestbs share of losses | -7,460 | -18,304 | -19,251 | -27,969 |
Balance at October 31, 2014 | 650,173 | 650,173 | ||
Specialty Reports Inc. [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Balance at April 30, 2014 | 669,424 | |||
Noncontrolling interestbs share of losses | -19,251 | |||
Balance at October 31, 2014 | $650,173 | $650,173 |
NOTE_H_FAIR_VALUE_MEASUREMENTS2
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | $755,571 | $601,000 |
Fair Value, Inputs, Level 1 [Member] | ||
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | $755,571 |
NOTE_H_FAIR_VALUE_MEASUREMENTS3
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Fair Value, Liabilities Measured on Recurring Basis (USD $) | 6 Months Ended |
Oct. 31, 2014 | |
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Fair Value, Liabilities Measured on Recurring Basis [Line Items] | |
Derivative Liability, Fair Value, Beginning of Period | $601,000 |
Increase in Deriative Liabilities | 465,047 |
Decrease in Fair Value | 310,476 |
Derivative Liability, Fair Value, End of Period | 755,571 |
Embedded Derivative Financial Instruments and Warrants [Member] | |
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Fair Value, Liabilities Measured on Recurring Basis [Line Items] | |
Derivative Liability, Fair Value, Beginning of Period | 601,000 |
Increase in Deriative Liabilities | 465,047 |
Decrease in Fair Value | 310,476 |
Derivative Liability, Fair Value, End of Period | $755,571 |
NOTE_I_NONCASH_FINANCIAL_INFOR1
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Oct. 31, 2014 | Apr. 30, 2014 | |
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items] | ||
Stock Issued During Period, Value, Other (in Dollars) | $60,619 | |
Conversion of Convertible Notes and Accrued Interest [Member] | ||
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items] | ||
Debt Conversion, Converted Instrument, Shares Issued | 888,365 | |
Debt Conversion, Original Debt, Amount (in Dollars) | 325,463 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 153,910 | 122,451 |
Stock Issued to Note Holder Pursuant to Terms of Note [Member] | ||
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items] | ||
Debt Conversion, Converted Instrument, Shares Issued | 156,644 | |
Debt Conversion, Original Debt, Amount (in Dollars) | 60,619 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 60,000 | 16,666 |
Stock Issued During Period, Shares, Other | 207,787 | |
Stock Issued During Period, Value, Other (in Dollars) | 60,619 | |
Stock Issued for Accounts Payable [Member] | ||
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items] | ||
Stock Issued During Period, Shares, Other | 138,160 | 20,000 |
Stock Issued During Period, Value, Other (in Dollars) | $47,064 |
NOTE_J_SUBSEQUENT_EVENTS_Detai
NOTE J - SUBSEQUENT EVENTS (Details) (USD $) | 6 Months Ended | 2 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Dec. 19, 2014 | Apr. 30, 2014 | |
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Value, New Issues | $497,479 | |||
Stock Issued During Period, Value, Other | 60,619 | |||
Proceeds from Convertible Debt | 485,000 | 460,263 | ||
Convertible Notes Payable [Member] | Subsequent Event [Member] | Note Payable #1 [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Maturity Date | 12-Dec-15 | |||
Debt Instrument, Face Amount | 55,125 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. | |||
Convertible Notes Payable [Member] | Subsequent Event [Member] | Notes Payable #2 [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Maturity Date | 19-Aug-15 | |||
Debt Instrument, Face Amount | 33,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion price of 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | |||
Convertible Notes Payable [Member] | Subsequent Event [Member] | Note Payable #3 [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Maturity Date | 24-Nov-15 | |||
Debt Instrument, Face Amount | 220,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Debt Instrument, Convertible, Terms of Conversion Feature | The note is convertible at the note holder’s option at a variable conversion prices of 58% multiplied by the lowest closing price for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). | |||
Proceeds from Notes Payable | 55,000 | |||
Debt Instrument, Description | The note holder has the right but not the obligation, subject to the Company’s agreement, to advance the remaining $165,000 balance of the note on or before the due date. | |||
Convertible Notes Payable [Member] | Subsequent Event [Member] | Note Payable #4 [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Other (in Shares) | 100,000 | |||
Debt Instrument, Face Amount | 100,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Proceeds from Convertible Debt | 65,000 | |||
Convertible Notes Payable | 35,000 | |||
Debt Instrument, Collateral Amount | 76,610 | |||
Subsequent Event [Member] | Stock Issued to Note Holder Pursuant to Terms of Note [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Other (in Shares) | 123,813 | |||
Stock Issued During Period, Value, Other | 20,567 | |||
Subsequent Event [Member] | Stock Issued to Consultants [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | 362,000 | |||
Stock Issued During Period, Value, Issued for Services | 109,990 | |||
Subsequent Event [Member] | Shares Previously Classified to be Issued [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Common stock to be issued, shares (in Shares) | 211,682 | |||
Subsequent Event [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 605,179 | |||
Debt Conversion, Original Debt, Amount | 76,020 | |||
Stock Issued During Period, Shares, New Issues (in Shares) | 1,193,288 | |||
Number of Accredited Investors | 4 | |||
Stock Issued During Period, Value, New Issues | 123,400 | |||
Stock Issued to Note Holder Pursuant to Terms of Note [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 156,644 | |||
Debt Conversion, Original Debt, Amount | 60,619 | |||
Stock Issued During Period, Shares, Other (in Shares) | 207,787 | |||
Stock Issued During Period, Value, Other | 60,619 | |||
Common stock to be issued, shares (in Shares) | 60,000 | 16,666 | ||
Stock Issued to Consultants [Member] | ||||
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | 240,109 | |||
Stock Issued During Period, Value, Issued for Services | $126,928 |
NOTE_K_GOING_CONCERN_MATTERS_D
NOTE K - GOING CONCERN MATTERS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 124 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | |
Going Concern Disclosure [Abstract] | |||||
Net Income (Loss) Attributable to Parent | ($1,154,306) | ($737,302) | ($1,662,735) | ($1,237,064) | ($45,920,041) |