Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Oct. 31, 2013 | Dec. 17, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'REGI U S INC | ' |
Entity Central Index Key | '0000922330 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Oct-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Entity's Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 32,110,298 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $62 | $16,377 |
Total Assets | 62 | 16,377 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 230,927 | 226,287 |
Due to related parties | 1,514,898 | 1,499,300 |
Total Current Liabilities | 1,745,825 | 1,725,587 |
Stockholders' Deficit: | ' | ' |
Common stock, 100,000,000 shares authorized, no par value, 32,110,298 and 31,675,965 shares issued and outstanding, respectively | 10,280,387 | 10,019,361 |
Deficit accumulated during the development stage | -12,026,150 | -11,728,571 |
Total Stockholders' Deficit | -1,745,763 | -1,709,210 |
Total Liabilities and Stockholders' Deficit | $62 | $16,377 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Oct. 31, 2013 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | ' | ' |
Common stock, shares issued | 32,110,298 | 31,675,965 |
Common stock, shares outstanding | 32,110,298 | 31,675,965 |
Consolidated_Statements_of_Exp
Consolidated Statements of Expenses (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 252 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | |
Operating Expenses: | ' | ' | ' | ' | ' |
Amortization | ' | ' | ' | ' | $130,533 |
General and administrative | 85,825 | 68,388 | 275,162 | 252,579 | 9,650,334 |
Impairment loss | ' | ' | ' | ' | 72,823 |
Gain on settlement of accounts payable | ' | ' | ' | ' | -200,351 |
Research and development | 10,547 | 16,523 | 21,697 | 49,227 | 4,750,937 |
Loss from Operations | -96,372 | -84,911 | -296,859 | -301,806 | -14,404,276 |
Other Income (Expense): | ' | ' | ' | ' | ' |
Interest expense | -360 | -360 | -720 | -720 | -2,570 |
Gain on change in fair value of derivative liabilities | ' | ' | ' | ' | 280,488 |
Net loss | ($96,732) | ($85,271) | ($297,579) | ($302,526) | ($14,126,358) |
Net loss per share - basic and diluted | $0 | $0 | ($0.01) | $0 | ' |
Weighted average shares outstanding - basic and diluted | 32,059,500 | 30,353,000 | 31,875,000 | 29,914,000 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | 252 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($297,579) | ($302,526) | ($14,126,358) |
Adjustments to reconcile loss to net cash used by operating activities: | ' | ' | ' |
Amortization | ' | ' | 130,533 |
Donated services | 60,000 | 60,000 | 1,755,000 |
Impairment loss | ' | ' | 72,823 |
Shares issued for services | ' | 9,000 | 437,900 |
Options and warrants issued for services | 136,321 | 132,299 | 1,806,242 |
Amortization of deferred compensation | ' | ' | 373,795 |
Gain on settlement of accounts payable | ' | ' | -200,351 |
Gain on change in fair value of derivative liability | ' | ' | -280,488 |
Write-off of intellectual property | ' | ' | 578,509 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | ' | ' | -3,000 |
Due to related parties | 253 | ' | 253 |
Accounts payable and accrued liabilities | 4,640 | 3,892 | 439,844 |
Net cash used in operating activities | -96,365 | -97,335 | -9,015,298 |
Cash flows from investing activities: | ' | ' | ' |
Patent protection costs | ' | ' | -38,197 |
Advances to related parties | ' | ' | -260,136 |
Collection of advances to related parties | ' | ' | 260,136 |
Purchase of equipment | ' | ' | -198,419 |
Net cash used in investing activities | ' | ' | -236,616 |
Cash flows from financing activities | ' | ' | ' |
Advances (to) from related parties | 15,345 | -69,952 | 1,825,482 |
Bank indebtedness | ' | -251 | ' |
Proceeds from convertible debentures | ' | ' | 5,000 |
Proceeds from the exercise of options | ' | ' | 20,000 |
Proceeds from the sale of common stock | 64,705 | 167,563 | 7,401,494 |
Net cash provided by financing activities | 80,050 | 97,360 | 9,251,976 |
Net change in cash and cash equivalents | -16,315 | 25 | 62 |
Cash and cash equivalents, beginning of period | 16,377 | 44 | ' |
Cash and cash equivalents, end of period | 62 | 69 | 62 |
Supplemental Disclosures: | ' | ' | ' |
Interest paid | ' | ' | ' |
Income tax paid | ' | ' | ' |
Non-Cash Investing and Financing Activities: | ' | ' | ' |
Cumulative effect of change in accounting principal | ' | ' | 280,488 |
Warrants issued for equity line of credit | ' | ' | $1,561,406 |
Shares issued to settle debt | ' | ' | 496,000 |
Shares issued for convertible debenture | ' | ' | 5,000 |
Shares issued for intellectual property | ' | ' | 345,251 |
Affiliate's shares issued for intellectual property | ' | ' | 200,000 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
NOTE 1. BASIS OF PRESENTATION | |
The accompanying unaudited interim financial statements of REGI U.S., Inc. (“REGI”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto for the year ended April 30, 2013 filed on Form 10-K with the SEC. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial position and the results of operations for the interim period presented herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year or for any future period. Notes to the unaudited consolidated financial statements which would substantially duplicate the disclosures contained in the audited consolidated financial statements for fiscal 2013 as reported in Form 10-K, have been omitted. | |
Reclassifications | |
Certain comparative figures have been reclassified to conform to the current year’s presentation. |
Going_Concern
Going Concern | 6 Months Ended |
Oct. 31, 2013 | |
Going Concern | ' |
Going Concern | ' |
NOTE 2. GOING CONCERN | |
REGI incurred net losses of $297,579 for the six months ended October 31, 2013, has a working capital deficit of $1,745,763 and an accumulated deficit of $12,026,150 at October 31, 2013. These factors raise substantial doubt about the ability of REGI to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. As a result, REGI’s consolidated financial statements as of October 31, 2013 and for the six months ended October 31, 2013 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. | |
REGI also receives interim support from affiliated companies and plans to raise additional capital through debt and/or equity financings. There continues to be insufficient funds to provide enough working capital to fund ongoing operations for the next twelve months. REGI may also raise additional funds through the exercise of warrants and stock options, if exercised. There is no assurance that any of these activities will be successful. |
Related_Parties
Related Parties | 6 Months Ended |
Oct. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Parties | ' |
NOTE 3. RELATED PARTIES | |
Amounts due to and from related parties are unsecured, non-interest bearing and due on demand except for the $24,000 promissory note described below. Related parties consist of companies controlled or significantly influenced by the directors and officers of REGI. As of October 31, 2013, there was no balance due from related parties and an aggregate of $1,514,898 due to related parties. As of April 30, 2013, there was no balance due from related parties and $1,499,300 due to related parties. | |
During the year ended April 30, 2012 the Company issued a promissory note of $24,000 for amounts previously accrued and owed to a company with common director with the Company. The promissory note bears interest rate of 6% per annum, is unsecured and due on demand. During the six months ended October 31, 2013, interest expense of $720 was recorded on the promissory note. The principal balance of the note is included as due to related parties in the consolidated balance sheet. | |
During the six month period ended October 31, 2013, the President, CEO who is also a director of REGI provided consulting services to REGI valued at $45,000, which were accounted for as donated capital and charged to expense during the period. The same amount was recorded in the six month period ended October 31, 2012. | |
During the six month period ended October 31, 2013, the CFO who is also a director of REGI provided consulting services to REGI valued at $15,000, which were accounted for as donated capital and charged to expense during the period. The same amount was recorded in the six month period ended October 31, 2012. | |
During each of the six month periods ended October 31, 2013 and 2012, management fees of $15,000 were accrued to a company having a common director. | |
During the six months period ended October 31, 2013, the Company incurred $18,890 research and development expenses with a company controlled by a director of REGI appointed in 2013. During the six months period ended October 31, 2012, the Company incurred $18,670 research and development expenses with the same related party. | |
REGI currently utilizes office space in a commercial business park building located in Richmond, British Columbia, Canada, a suburb of Vancouver, shared by several companies related by common officers and directors. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
NOTE 4. STOCKHOLDERS’ EQUITY | |||||||||
a) Common Stock Options and Warrants | |||||||||
During the six month periods ended October 31, 2013 and 2012, the Company recorded aggregate stock-based compensation associated with options and warrants of $136,321 and $132,299, respectively. At October 31, 2013 and April 30, 2013, the Company had $401,072 of total unrecognized compensation cost related to non-vested stock options and warrants, which will be recognized over future periods. | |||||||||
The fair value of each option and warrant grant or modification during the six months ended October 31, 2013 and 2012 was determined using the Black-Scholes option pricing model and the following assumptions: | |||||||||
Six Months Ended October 31, | |||||||||
2013 | 2012 | ||||||||
Risk free interest rate | 0.11% - 0.36% | 0.15 - 0.74% | |||||||
Expected life | 0.09-1.64 | 0.01 - 5 years | |||||||
Annualized volatility | 191.11% - 299.98% | 204.98% - 377.83% | |||||||
Expected dividends | - | - | |||||||
Option pricing models require the input of highly subjective assumptions including the expected price volatility. The subjective input assumptions can materially affect the fair value estimate. | |||||||||
A summary of REGI’s stock option activity for the six months ended October 31, 2013 is as follows: | |||||||||
31-Oct-13 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Options | Price | ||||||||
Outstanding at beginning of period | 2,638,000 | $ | 0.15 | ||||||
Outstanding at end of period | 2,638,000 | $ | 0.15 | ||||||
Exercisable at end of period | 659,500 | $ | 0.15 | ||||||
Weighted average fair value of options granted | $ | 0.17 | |||||||
At October 31, 2013, the range of exercise prices and the weighted average remaining contractual life of the outstanding options was $0.10 to $0.20 per share and 3.88 years, respectively. The intrinsic value of “in the money” exercisable options at October 31, 2013 was $19,587. | |||||||||
At April 30, 2013, the range of exercise prices and the weighted average remaining contractual life of the outstanding options was $0.10 to $0.20 per share and 4.83 years, respectively. The intrinsic value of “in the money” exercisable options at April 30, 2013 was $158,005. | |||||||||
A summary of REGI’s common stock warrant activity for six months ended October 31, 2013 is as follows: | |||||||||
31-Oct-13 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Warrants | Price | ||||||||
Outstanding at beginning of period | 3,730,150 | $ | 0.18 | ||||||
Issued during the period | 868,666 | $ | 0.23 | ||||||
Outstanding at end of period | 4,598,816 | $ | 0.19 | ||||||
Exercisable at end of period | 4,561,316 | $ | 0.19 | ||||||
On July 27, 2013, the Company extended the expiration date of 833,950 outstanding common stock warrants with expiration dates between July 30, 2012 and December 17, 2013 by one year and reduced their exercise price from $0.50 to $0.25. REGI calculated the incremental increase in the fair value using the Black-Scholes option pricing model and determined it to be $136,321 which was expensed in six months ended October 31, 2013. | |||||||||
At October 31, 2013, the range of exercise prices and the weighted average remaining contractual life of the outstanding warrants was $0.10 to $0.25 per share and 0.50 year, respectively. The intrinsic value of “in the money” exercisable warrants at October 31, 2013 was $26,946. | |||||||||
At April 30, 2013, the range of exercise prices and the weighted average remaining contractual life of the outstanding warrants was $0.15 to $0.25 per share and 1.01 years, respectively. The intrinsic value of “in the money” exercisable warrants at April 30, 2013 was $783,466. | |||||||||
b) Cash Consideration | |||||||||
During the six months ended October 31, 2013, the Company sold an aggregate of 434,333 units in a private placement for cash proceeds of $64,705, net of issuance costs of $445, at $0.15 per unit. Each unit consists of one common share and two common stock purchase warrants, with one warrant exercisable at $0.20 per share for one year and one warrant exercisable at $0.25 per share for two years into the Company’s common stock from the closing date of the private placement. The private placement was closed on October 7, 2013. |
Subsequent_Event
Subsequent Event | 6 Months Ended |
Oct. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
NOTE 5. SUBSEQUENT EVENT | |
Effective December 12, 2013, the Company assigned the international rights, title and interests in the rotary device patents to Reg Tech, a company under common control. The assignment did not include the rights in the United States. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Reclassifications | ' |
Reclassifications | |
Certain comparative figures have been reclassified to conform to the current year’s presentation. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Schedule of Fair Value Assumptions of Options and Warrants | ' | ||||||||
The fair value of each option and warrant grant or modification during the six months ended October 31, 2013 and 2012 was determined using the Black-Scholes option pricing model and the following assumptions: | |||||||||
Six Months Ended October 31, | |||||||||
2013 | 2012 | ||||||||
Risk free interest rate | 0.11% - 0.36% | 0.15 - 0.74% | |||||||
Expected life | 0.09-1.64 | 0.01 - 5 years | |||||||
Annualized volatility | 191.11% - 299.98% | 204.98% - 377.83% | |||||||
Expected dividends | - | - | |||||||
Schedule of Stock Options Activity | ' | ||||||||
A summary of REGI’s stock option activity for the six months ended October 31, 2013 is as follows: | |||||||||
31-Oct-13 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Options | Price | ||||||||
Outstanding at beginning of period | 2,638,000 | $ | 0.15 | ||||||
Outstanding at end of period | 2,638,000 | $ | 0.15 | ||||||
Exercisable at end of period | 659,500 | $ | 0.15 | ||||||
Weighted average fair value of options granted | $ | 0.17 | |||||||
Summary of Common Stock Warrants Activity | ' | ||||||||
A summary of REGI’s common stock warrant activity for six months ended October 31, 2013 is as follows: | |||||||||
31-Oct-13 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Warrants | Price | ||||||||
Outstanding at beginning of period | 3,730,150 | $ | 0.18 | ||||||
Issued during the period | 868,666 | $ | 0.23 | ||||||
Outstanding at end of period | 4,598,816 | $ | 0.19 | ||||||
Exercisable at end of period | 4,561,316 | $ | 0.19 |
Going_Concern_Details_Narrativ
Going Concern (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 252 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Apr. 30, 2013 | |
Going Concern | ' | ' | ' | ' | ' | ' |
Net loss | $96,732 | $85,271 | $297,579 | $302,526 | $14,126,358 | ' |
Working capital deficit | 1,745,763 | ' | 1,745,763 | ' | 1,745,763 | ' |
Accumulated deficit | $12,026,150 | ' | $12,026,150 | ' | $12,026,150 | $11,728,571 |
Related_Parties_Details_Narrat
Related Parties (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 252 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2012 | Oct. 31, 2013 | Apr. 30, 2013 | |
Promissory note due to related parties | ' | ' | ' | ' | $24,000 | ' | ' |
Due from related parties | 0 | ' | 0 | ' | ' | 0 | 0 |
Due to related parties | 1,514,898 | ' | 1,514,898 | ' | ' | 1,514,898 | 1,499,300 |
Promissory note bears interest rate | ' | ' | ' | ' | 6.00% | ' | ' |
Interest expense | ' | ' | 720 | ' | ' | ' | ' |
Management fees payable | 15,000 | 15,000 | 15,000 | 15,000 | ' | 15,000 | ' |
Research and development expenses | 10,547 | 16,523 | 21,697 | 49,227 | ' | 4,750,937 | ' |
President, CEO And Director [Member] | ' | ' | ' | ' | ' | ' | ' |
Consulting services expense | ' | ' | 45,000 | 45,000 | ' | ' | ' |
CFO, COO And Director [Member] | ' | ' | ' | ' | ' | ' | ' |
Consulting services expense | ' | ' | 15,000 | 15,000 | ' | ' | ' |
REGI Director [Member] | ' | ' | ' | ' | ' | ' | ' |
Research and development expenses | ' | ' | $18,890 | $18,670 | ' | ' | ' |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2013 | Jul. 27, 2013 | Jul. 27, 2013 | Jul. 27, 2013 | |
Minimum [Member] | Maximum [Member] | ||||||
Aggregate stock-based compensation expense associated with options and warrants | ' | $136,321 | $132,299 | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested stock options and warrants | 401,072 | 401,072 | ' | 401,072 | ' | ' | ' |
Range of exercise price of options, minimum | ' | $0.10 | ' | $0.10 | ' | ' | ' |
Range of exercise price of options, maximum | ' | $0.20 | ' | $0.20 | ' | ' | ' |
Options, outstanding, weighted average remaining contractual life | ' | '3 years 10 months 17 days | ' | '4 years 9 months 29 days | ' | ' | ' |
Options, intrinsic value | 19,587 | 19,587 | ' | 158,005 | ' | ' | ' |
Outstanding common stock warrants on extended expiration date | ' | ' | ' | ' | 833,950 | ' | ' |
Warrants maturity date | ' | ' | ' | ' | ' | 30-Jul-12 | 17-Dec-13 |
Outstanding common stock warrants, reduction in exercise price | ' | ' | ' | ' | ' | $0.50 | $0.25 |
Incremental increase in fair value of outstanding common stock warrants expensed | ' | 136,321 | ' | ' | ' | ' | ' |
Range of exercise price of warrants, minimum | ' | $0.10 | ' | $0.15 | ' | ' | ' |
Range of exercise price of warrants, maximum | ' | $0.25 | ' | $0.25 | ' | ' | ' |
Weighted average remaining contractual life of outstanding warrants | ' | '6 months | ' | '1 year 4 days | ' | ' | ' |
Exercisable warrants, intrinsic value | 26,946 | 26,946 | ' | 783,466 | ' | ' | ' |
Common shares issued in private placement | 434,333 | ' | ' | ' | ' | ' | ' |
Proceeds from common shares through private placement | ' | 64,705 | ' | ' | ' | ' | ' |
Net of issuance costs | $445 | ' | ' | ' | ' | ' | ' |
Common stock price per share | $0.15 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants in year one | $0.20 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants in year two | $0.25 | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Fair Value Assumptions of CommonStock Options and Warrants (Details) | 6 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Minimum [Member] | ' | ' |
Risk free interest rate | 0.11% | 0.15% |
Expected life | '1 month 2 days | '4 days |
Annualized volatility | 191.11% | 204.98% |
Expected dividends | ' | ' |
Maximum [Member] | ' | ' |
Risk free interest rate | 0.36% | 0.74% |
Expected life | '1 year 7 months 21 days | '5 years |
Annualized volatility | 299.98% | 377.83% |
Expected dividends | ' | ' |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Options Activity (Details) (USD $) | 6 Months Ended |
Oct. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Options, Outstanding at beginning of period | 2,368,000 |
Options, Outstanding at end of period | 2,638,000 |
Options, Exercisable at end of period | 659,500 |
Weighted Average Exercise Price, Outstanding at beginning of period | $0.15 |
Weighted Average Exercise Price, Outstanding at end of period | $0.15 |
Weighted Average Exercise Price, Exercisable at end of period | $0.15 |
Weighted average fair value of options granted | $0.17 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Common Stock Warrants Activity (Details) (Warrant [Member], USD $) | 6 Months Ended |
Oct. 31, 2013 | |
Warrant [Member] | ' |
Warrants, Outstanding at beginning of period | 3,730,150 |
Warrants, Issued during the period | 868,666 |
Warrants, Outstanding at end of period | 4,598,816 |
Warrants, Exercisable at end of period | 4,598,816 |
Weighted Average Exercise Price, Outstanding at beginning of period | $0.18 |
Weighted Average Exercise Price, Issued During the period | $0.23 |
Weighted Average Exercise Price, Outstanding at end of period | $0.19 |
Weighted Average Exercise Price, Exercisable at end of period | $0.19 |