Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Oct. 31, 2014 | Dec. 22, 2014 | |
Document And Entity Information | ||
Entity Registrant Name | REGI U S INC | |
Entity Central Index Key | 922330 | |
Document Type | 10-Q | |
Document Period End Date | 31-Oct-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 32,779,298 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Current Assets: | ||
Cash and cash equivalents | $524 | $1,876 |
Total Assets | 524 | 1,876 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 184,568 | 236,534 |
Due to related parties | 1,679,990 | 1,531,106 |
Total Current Liabilities | 1,864,558 | 1,767,640 |
Stockholders' Deficit: | ||
Common stock, 100,000,000 shares authorized, no par value, 32,779,298 and 32,640,298 shares issued and outstanding, respectively | 10,690,837 | 10,550,355 |
Accumulated deficit | -12,554,871 | -12,316,119 |
Total Stockholders' Deficit | -1,864,034 | -1,765,764 |
Total Liabilities and Stockholders' Deficit | $524 | $1,876 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, no par value | ||
Common stock, shares issued | 32,779,298 | 32,640,298 |
Common stock, shares outstanding | 32,779,298 | 32,640,298 |
Consolidated_Statements_of_Exp
Consolidated Statements of Expenses (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Operating Expenses: | ||||
General and administrative | $114,272 | $85,825 | $216,094 | $275,162 |
Research and development | 12,314 | 10,547 | 21,938 | 21,697 |
Loss from Operations: | -126,586 | -96,372 | -238,032 | -296,859 |
Other Income (Expense): | ||||
Interest expense | -360 | -360 | -720 | -720 |
Net loss | ($126,946) | ($96,732) | ($238,752) | ($297,579) |
Net loss per share - basic and diluted | $0 | $0 | ($0.01) | ($0.01) |
Weighted average shares outstanding - basic and diluted | 32,779,298 | 32,059,500 | 32,771,940 | 31,875,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Cash flows from operating activities: | ||
Net loss | ($238,752) | ($297,579) |
Adjustments to reconcile loss to net cash used in operating activities: | ||
Donated services | 60,000 | 60,000 |
Options and warrants issued for service | 68,285 | 136,321 |
Changes in operating assets and liabilities: | ||
Due to related parties | 720 | 253 |
Accounts payable and accrued liabilities | -51,966 | 4,640 |
Net cash used in operating activities | -161,713 | -96,365 |
Cash flows from financing activities | ||
Advances from related parties | 148,164 | 15,345 |
Proceeds from the sale of common stock | 12,197 | 64,705 |
Net cash provided by financing activities | 160,361 | 80,050 |
Net change in cash and cash equivalents | -1,352 | -16,315 |
Cash and cash equivalents, beginning of period | 1,876 | 16,377 |
Cash and cash equivalents, end of period | 524 | 62 |
Supplemental Disclosures: | ||
Interest paid | ||
Income tax paid |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2014 | |
Accounting Policies [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, 2014 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 2014 as reported in Form 10-K, have been omitted. |
Going_Concern
Going Concern | 6 Months Ended |
Oct. 31, 2014 | |
Going Concern | |
Going Concern | NOTE 2. GOING CONCERN |
REGI incurred net loss of $238,752 for the six months ended October 31, 2014 and has a working capital deficit of $1,864,034 and an accumulated deficit of $12,554,871 at October 31, 2014. 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 unaudited consolidated financial statements as of October 31, 2014 and for the six months ended 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, 2014 | |
Related Party Transactions [Abstract] | |
Related Parties | NOTE 3. RELATED PARTIES |
Amounts due from related parties are unsecured, non-interest bearing and due on demand. Related parties consist of the President of REGI and companies controlled or significantly influenced by the President of REGI and by a director of REGI. As of October 31, 2014, there was $1,679,990 due to related parties. As of April 30, 2014, there was $1,531,106 due to related parties. | |
During the six month period ended October 31, 2014, the President, CEO and 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, 2013. | |
During the six month period ended October 31, 2014, the CFO, COO and 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, 2013. | |
During each of six month periods ended October 31, 2014 and 2013, management fees of $15,000 were accrued to a company having a common director. | |
During the six month periods ended October 31, 2014 and 2013, research and development services of $21,938 and $21,697 were provided by a company having a common director. | |
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, 2014 and 2013, there was no change to the principal amount of the promissory note and interest expense of $720 was recorded during each six month period. The principal balance of the note is included as due to related parties in the consolidated balance sheet. | |
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. REGI does not pay rent for this office space. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Stockholders' Equity | NOTE 4. STOCKHOLDERS’ EQUITY | ||||||||
a) Common Stock Options and Warrants | |||||||||
During the six month periods ended October 31, 2014 and 2013, the Company recorded aggregate stock-based compensation associated with options and warrants of $68,285 and $136,321, respectively. At October 31, 2014, the Company had $393,913 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, 2014 and 2013 was determined using the Black-Scholes option pricing model and the following assumptions: | |||||||||
Six Months Ended October 31, | |||||||||
2014 | 2013 | ||||||||
Risk free interest rate | 0.01% - 0.05 | % | 0.11% - 0.36 | % | |||||
Expected life | 0.06-0.57 | 0.09-1.64 | |||||||
Annualized volatility | 139.83% - 182.47 | % | 191.11% - 299.98 | % | |||||
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, 2014 is as follows: | |||||||||
31-Oct-14 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Options | Price | ||||||||
Outstanding at beginning of period | 2,638,000 | $ | 0.15 | ||||||
Granted | - | - | |||||||
Expired | - | - | |||||||
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 | $ | - | |||||||
On May 5, 2014, the Company extended the expiration date of 830,000 outstanding common stock warrants from May 27, 2014 to November 27, 2014. On October 31, 2014, the expiration date of these warrants was further extended to May 27, 2015. The warrants are exercisable at $0.15 per share. The incremental increase in the fair value of the warrants for each extension was determined to be $34,236 and $34,049, respectively. | |||||||||
At October 31, 2014, 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 2.88 years, respectively. The intrinsic value of “in the money” exercisable options at October 31, 2014 was $3,270. | |||||||||
A summary of REGI’s common stock warrant activity for the six months ended October 31, 2014 is as follows: | |||||||||
31-Oct-14 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Warrants | Price | ||||||||
Outstanding at beginning of period | 5,128,816 | $ | 0.19 | ||||||
Granted | 139,000 | 0.15 | |||||||
Expired | (661,950 | ) | 0.24 | ||||||
Outstanding at end of period | 4,605,866 | 0.18 | |||||||
Exercisable at end of period | 4,605,866 | $ | 0.18 | ||||||
At October 31, 2014, 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 0.43 year, respectively. The intrinsic value of “in the money” exercisable warrants at October 31, 2014 was $0. | |||||||||
b) Cash Consideration | |||||||||
During May and June, 2014, the Company sold an aggregate of 139,000 units in a private placement for cash proceeds of $12,197, net of issuance costs of $1,303, at $0.10 per unit. Each unit consists of one common share and one common stock purchase warrant exercisable at $0.15 per share for one year into the Company’s common stock from the closing date of the private placement. |
Commitments
Commitments | 6 Months Ended |
Oct. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 5. COMMITMENTS |
Pursuant to a letter of understanding dated December 13, 1993 between REGI, Rand and Reg (collectively called the grantors) and West Virginia University Research Corporation (“WVURC”), the grantors have agreed that WVURC shall own 5% of all patented technology with regards to RC/DC Engine technology and will receive 5% of all net profits from sales, licenses, royalties or income derived from the patented technology. To date, no sales have been accrued and no royalties have been accrued or paid. | |
Pursuant to an agreement dated August 20, 1992, REGI acquired the U.S. rights to the original RC/DC Engine from Rand. REGI will pay Rand and the original owner a net profit royalty of 5% and 1%, respectively. To date no sales have been accrued and no royalties have been accrued or paid. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Equity [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, 2014 and 2013 was determined using the Black-Scholes option pricing model and the following assumptions: | ||||||||
Six Months Ended October 31, | |||||||||
2014 | 2013 | ||||||||
Risk free interest rate | 0.01% - 0.05 | % | 0.11% - 0.36 | % | |||||
Expected life | 0.06-0.57 | 0.09-1.64 | |||||||
Annualized volatility | 139.83% - 182.47 | % | 191.11% - 299.98 | % | |||||
Expected dividends | - | - | |||||||
Summary of Stock Options Activity | A summary of REGI’s stock option activity for the six months ended October 31, 2014 is as follows: | ||||||||
31-Oct-14 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Options | Price | ||||||||
Outstanding at beginning of period | 2,638,000 | $ | 0.15 | ||||||
Granted | - | - | |||||||
Expired | - | - | |||||||
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 | $ | - | |||||||
Summary of Common Stock Warrants Activity | A summary of REGI’s common stock warrant activity for the six months ended October 31, 2014 is as follows: | ||||||||
31-Oct-14 | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise | |||||||||
Warrants | Price | ||||||||
Outstanding at beginning of period | 5,128,816 | $ | 0.19 | ||||||
Granted | 139,000 | 0.15 | |||||||
Expired | (661,950 | ) | 0.24 | ||||||
Outstanding at end of period | 4,605,866 | 0.18 | |||||||
Exercisable at end of period | 4,605,866 | $ | 0.18 |
Going_Concern_Details_Narrativ
Going Concern (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | |
Going Concern | |||||
Net loss | $126,946 | $96,732 | $238,752 | $297,579 | |
Working capital deficit | 1,864,034 | 1,864,034 | |||
Accumulated deficit | $12,554,871 | $12,554,871 | $12,316,119 |
Related_Parties_Details_Narrat
Related Parties (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2012 | Apr. 30, 2014 | |
Due to related parties | $1,679,990 | $1,679,990 | $1,531,106 | |||
Management fees | 15,000 | 15,000 | ||||
Research and development services | 12,314 | 10,547 | 21,938 | 21,697 | ||
Promissory note due to related parties | 24,000 | |||||
Promissory note bears interest rate | 6.00% | |||||
Interest expense | 720 | 720 | ||||
President, CEO And Director [Member] | ||||||
Donated consulting services | 45,000 | 45,000 | ||||
CFO, COO And Director [Member] | ||||||
Donated consulting services | $15,000 | $15,000 |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | |
5-May-14 | Oct. 31, 2014 | Oct. 31, 2013 | |
Unrecognized compensation cost | $393,913 | ||
Warrants outstanding | 830,000 | ||
Warrants expiration date range | May 27, 2014 to November 27, 2014 | ||
Warrants expiration date extended | 27-May-15 | ||
Warrants exercise price | $0.15 | ||
Exercise price, Minimum | $0.10 | ||
Exercise price, Maximum | $0.20 | ||
Weighted average remaining contractual life of outstanding options | 2 years 10 months 17 days | ||
Intrinsic value of exercisable options | 3,270 | ||
Range of exercise price of warrants, minimum | $0.10 | ||
Range of exercise price of warrants, maximum | $0.25 | ||
Weighted average remaining contractual life of outstanding warrants | 5 months 5 days | ||
Exercisable warrants, intrinsic value | 0 | ||
Private Placement [Member] | |||
Common shares issued in private placement | 139,000 | ||
Proceeds from common shares through private placement | 12,197 | ||
Net of equity issuance costs | 1,303 | ||
Common stock price per share | $0.10 | ||
Maximum [Member] | |||
Warrants increased during period | 34,236 | ||
Minimum [Member] | |||
Warrants increased during period | 34,049 | ||
Warrant [Member] | |||
Stock based compensation | 136,321 | 136,321 | |
Each equity unit, description | Each unit consists of one common share and one common stock purchase warrant | ||
Exercise price of warrants in year one | $0.15 | ||
Options [Member] | |||
Stock based compensation | $68,285 | $68,285 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Fair Value Assumptions of Options and Warrants (Details) | 6 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Minimum [Member] | ||
Risk free interest rate | 0.01% | 0.11% |
Expected life | 22 days | 1 month 2 days |
Annualized volatility | 139.83% | 191.11% |
Expected dividends | ||
Maximum [Member] | ||
Risk free interest rate | 0.05% | 0.36% |
Expected life | 6 months 26 days | 1 year 7 months 21 days |
Annualized volatility | 182.47% | 299.98% |
Expected dividends |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Options Activity (Details) (USD $) | 6 Months Ended |
Oct. 31, 2014 | |
Equity [Abstract] | |
Options, Outstanding at beginning of period | 2,638,000 |
Options, Granted | |
Options, Expired | |
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, Granted | |
Weighted average exercise price, Expired | |
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 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Common Stock Warrants Activity (Details) (Warrant [Member], USD $) | 6 Months Ended |
Oct. 31, 2014 | |
Warrant [Member] | |
Warrants, Outstanding at beginning of period | 5,128,816 |
Warrants, Granted during the period | 139,000 |
Warrants, Expired during the period | -661,950 |
Warrants, Outstanding at end of period | 4,605,866 |
Warrants, Exercisable at end of period | 4,605,866 |
Weighted Average Exercise Price, Outstanding at beginning of period | $0.19 |
Weighted Average Exercise Price, Granted | $0.15 |
Weighted Average Exercise Price, Expired | $0.24 |
Weighted Average Exercise Price, Outstanding at end of period | $0.18 |
Weighted Average Exercise Price, Exercisable at end of period | $0.18 |
Commitments_Details_Narrative
Commitments (Details Narrative) | 0 Months Ended | |
Dec. 13, 1993 | Aug. 20, 1992 | |
Percentage of patented technology owned by West Virginia University Research Corporation | 5.00% | |
Percentage of net profits from sales, licenses, royalties or income of patented technology earned by West Virginia University Research Corporation | 5.00% | |
Rand Energy Group Inc [Member] | ||
Payment of royalty on net profit, percentage | 5.00% | |
West Virginia University Research Corporation [Member] | ||
Payment of royalty on net profit, percentage | 1.00% |