Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2015 | Sep. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | REGI U S INC | |
Entity Central Index Key | 922,330 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 32,779,298 | |
Trading Symbol | RGUS | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 31, 2015 | Apr. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 445 | $ 491 |
Total Assets | 445 | 491 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 185,488 | 185,230 |
Due to related parties | 1,860,790 | 1,791,680 |
Total Current Liabilities | 2,046,278 | 1,976,910 |
Stockholders' Deficit: | ||
Common stock, 100,000,000 shares authorized, no par value, 32,779,298 shares issued and outstanding | 10,780,946 | 10,750,946 |
Accumulated deficit | (12,826,779) | (12,727,365) |
Total Stockholders' Deficit | (2,045,833) | (1,976,419) |
Total Liabilities and Stockholders' Deficit | $ 445 | $ 491 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 31, 2015 | Apr. 30, 2015 |
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 | 32,779,298 |
Common stock, shares outstanding | 32,779,298 | 32,779,298 |
Consolidated Statements of Expe
Consolidated Statements of Expenses (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Operating Expenses: | ||
General and administrative | $ 65,287 | $ 101,822 |
Research and development | 33,767 | 9,624 |
Loss from Operations: | (99,054) | (111,446) |
Other Income (Expense): | ||
Interest expense | (360) | (360) |
Other Income (Expense) | (360) | (360) |
Net loss | $ (99,414) | $ (111,806) |
Net loss per share - basic and diluted | $ .00 | $ 0 |
Weighted average shares outstanding - basic and diluted | 32,779,298 | 32,760,624 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (99,414) | $ (111,806) |
Adjustments to reconcile loss to net cash used in operating activities: | ||
Donated services | $ 30,000 | 30,000 |
Options and warrants issued for services | 34,236 | |
Changes in operating assets and liabilities: | ||
Due to related parties | $ 360 | 360 |
Accounts payable and accrued liabilities | 258 | (18,336) |
Net cash used in operating activities | (68,796) | (65,546) |
Cash flows from financing activities | ||
Advances from related parties | $ 68,750 | 53,539 |
Proceeds from the sale of common stock, net of issuance costs | 13,216 | |
Net cash provided by financing activities | $ 68,750 | 66,755 |
Net change in cash and cash equivalents | (46) | 1,209 |
Cash and cash equivalents, beginning of period | 491 | 1,876 |
Cash and cash equivalents, end of period | $ 445 | $ 3,085 |
Supplemental Disclosures: | ||
Interest paid | ||
Income tax paid |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2015 | |
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, 2015 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 2015 as reported in Form 10-K, have been omitted. |
Going Concern
Going Concern | 3 Months Ended |
Jul. 31, 2015 | |
Going Concern | |
Going Concern | NOTE 2. GOING CONCERN REGI incurred net losses of $99,414 for the three months ended July 31, 2015 and has a working capital deficit of $2,045,833 and an accumulated deficit of $12,826,779 at July 31, 2015. 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, REGIs unaudited consolidated financial statements as of July 31, 2015 and for the three 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 | 3 Months Ended |
Jul. 31, 2015 | |
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. As of July 31, 2015, there was $1,860,790 due to related parties. As of April 30, 2015, there was $1,791,680 due to related parties. During the three month period ended July 31, 2015, the President, CEO and director of REGI provided consulting services to REGI valued at $22,500, which were accounted for as donated capital and charged to expense during the period. The same amount was recorded in the three month period ended July 31, 2014. During the three month period ended July 31, 2015, the CFO, COO and director of REGI provided consulting services to REGI valued at $7,500, which were accounted for as donated capital and charged to expense during the period. The same amount was recorded in the three month period ended July 31, 2014. During each of three month periods ended July 31, 2015 and 2014, management fees of $7,500 were accrued to 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 three months ended July 31, 2015 and 2014, there was no change to the principal amount of the promissory note and interest expense of $360 was recorded each year. The principal balance of the note is included as due to related parties in the consolidated balance sheets. 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 | 3 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 4. STOCKHOLDERS EQUITY a) Common Stock Options and Warrants REGI has a 2000 Stock Option Plan to issue up to 2,500,000 shares to certain key directors and employees. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. All options granted by REGI under the 2000 plan have the following vesting schedule: i) Up to 25% of the option may be exercised at any time during the term of the option; such initial exercise is referred to as the First Exercise. ii) The second 25% of the option may be exercised at any time after 90 days from the date of First Exercise; such second exercise is referred to as the Second Exercise. iii) The third 25% of the option may be exercised at any time after 90 days from the date of Second Exercise; such third exercise is referred to as the Third Exercise. iv) The fourth and final 25% of the option may be exercised at any time after 90 days from the date of the Third Exercise. v) The options expire 60 months from the date of grant. On April 12, 2007, REGI adopted its 2007 Stock Option Plan to issue up to 2,000,000 shares to certain key directors and employees. Pursuant to the 2007 plan, REGI has granted stock options to certain directors and employees. All options granted under the 2007 plan have the following vesting schedule: i) Up to 25% of the option may be exercised 90 days after the grant of the option. ii) The second 25% of the option may be exercised at any time after 1 year and 90 days after the grant of the option. iii) The third 25% of the option may be exercised at any time after 2 years and 90 days after the grant of the option. iv) The fourth and final 25% of the option may be exercised at any time after 3 years and 90 days after the grant of the option. v) The options expire 60 months from the date of grant. During the three month periods ended July 31, 2015 and 2014, the Company recorded aggregate stock-based compensation associated with options and warrants of $Nil and $34,236, respectively. At July 31, 2015, the Company had $369,875 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 three months ended July 31, 2014 was determined using the Black-Scholes option pricing model and the following assumptions. There was no option or warrant grant or modification during the three months ended July 31, 2015. Three Months Ended July 31, 2015 2014 Risk free interest rate - 0.01% - 0.05 % Expected life - 0.06-0.56 Annualized volatility - 139.83% - 154.93 % 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 REGIs stock option activity for the three months ended July 31, 2015 is as follows: Three Months Ended July 31, 2015 Weighted Average Exercise Options Price Outstanding at beginning of period 2,488,000 0.15 Granted - - Exercised - - Expired (50,000 ) 0.10 Forfeited - - Outstanding at end of period 2,438,000 0.15 Exercisable at end of period 609,500 $ 0.15 Weighted average fair value of options granted $ - At July 31, 2015, 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 2.28 years, respectively. The intrinsic value of in the money exercisable options at July 31, 2015 was $Nil. A summary of REGIs common stock warrant activity for the three months ended July 31, 2015 is as follows: Three Months Ended July 31, 2015 Weighted Average Exercise Warrants Price Outstanding at beginning of period 1,709,333 0.19 Issued - - Exercised - - Expired (965,000 ) 0.15 Outstanding at end of period 744,333 0.25 Exercisable at end of period 744,333 $ 0.25 At July 31, 2015, the exercise price and the weighted average remaining contractual life of the outstanding warrants was $0.25 per share and 0.62 year, respectively. The intrinsic value of in the money exercisable warrants at July 31, 2015 was $Nil. |
Commitments
Commitments | 3 Months Ended |
Jul. 31, 2015 | |
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) | 3 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Schedule of Fair Value Assumptions of Options and Warrants | Three Months Ended July 31, 2015 2014 Risk free interest rate - 0.01% - 0.05 % Expected life - 0.06-0.56 Annualized volatility - 139.83% - 154.93 % Expected dividends - - |
Summary of Stock Options Activity | A summary of REGIs stock option activity for the three months ended July 31, 2015 is as follows: Three Months Ended July 31, 2015 Weighted Average Exercise Options Price Outstanding at beginning of period 2,488,000 0.15 Granted - - Exercised - - Expired (50,000 ) 0.10 Forfeited - - Outstanding at end of period 2,438,000 0.15 Exercisable at end of period 609,500 $ 0.15 Weighted average fair value of options granted $ - |
Summary of Common Stock Warrants Activity | A summary of REGIs common stock warrant activity for the three months ended July 31, 2015 is as follows: Three Months Ended July 31, 2015 Weighted Average Exercise Warrants Price Outstanding at beginning of period 1,709,333 0.19 Issued - - Exercised - - Expired (965,000 ) 0.15 Outstanding at end of period 744,333 0.25 Exercisable at end of period 744,333 $ 0.25 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2015 | |
Going Concern | |||
Net loss | $ 99,414 | $ 111,806 | |
Working capital deficit | 2,045,833 | ||
Accumulated deficit | $ 12,826,779 | $ 12,727,365 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2012 | Apr. 30, 2015 | |
Due to related parties | $ 1,860,790 | $ 1,791,680 | ||
Management fees | 7,500 | $ 7,500 | ||
Promissory note due to related parties | $ 24,000 | |||
Promissory note bears interest rate | 6.00% | |||
Interest expense | 360 | 360 | ||
President, CEO And Director [Member] | ||||
Donated consulting services | 22,500 | 22,500 | ||
CFO, COO And Director [Member] | ||||
Donated consulting services | $ 7,500 | $ 7,500 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 12, 2007 | |
Unrecognized compensation cost | $ 369,875 | ||
Exercise price, Minimum | $ 0.10 | ||
Exercise price, Maximum | $ 0.20 | ||
Weighted average remaining contractual life of outstanding options | 2 years 3 months 11 days | ||
Intrinsic value of exercisable options | |||
Options [Member] | |||
Stock based compensation | |||
Warrant [Member] | |||
Stock based compensation | $ 34,236 | ||
Warrants exercise price | $ 0.25 | ||
Warrants weighted average remaining contractual life | 7 months 13 days | ||
Warrants intrinsic value | |||
2000 Stock Option Plan [Member] | Second Exercise [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 90 days | ||
2000 Stock Option Plan [Member] | Options [Member] | |||
Expiration period | 60 months | ||
2000 Stock Option Plan [Member] | First Exercise [Member] | |||
Stock option plan grants percentage | 25.00% | ||
2000 Stock Option Plan [Member] | Third Exercise [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 90 days | ||
2000 Stock Option Plan [Member] | Fourth And Final Exercise [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 90 days | ||
2000 Stock Option Plan [Member] | Directors and Employees [Member] | |||
Issuance of stock options | 2,500,000 | ||
2007 Stock Option Plan [Member] | |||
Expiration period | 60 months | ||
2007 Stock Option Plan [Member] | Directors and Employees [Member] | |||
Issuance of stock options | 2,000,000 | ||
2007 Stock Option Plan One [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 90 days | ||
2007 Stock Option Plan Two [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 1 year 90 days | ||
2007 Stock Option Plan Three [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 2 years 90 days | ||
2007 Stock Option Plan Fourth And Final [Member] | |||
Stock option plan grants percentage | 25.00% | ||
Stock option plan exercise period | 3 years 90 days |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Fair Value Assumptions of Options and Warrants (Details) | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Risk free interest rate, Minimum | 0.01% | |
Risk free interest rate, Maximum | 0.05% | |
Expected life | 0 years | |
Annualized volatility, Minimum | 139.83% | |
Annualized volatility, Maximum | 154.93% | |
Expected dividends | ||
Minimum [Member] | ||
Expected life | 22 days | |
Maximum [Member] | ||
Expected life | 6 months 22 days |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) | 3 Months Ended |
Jul. 31, 2015$ / sharesshares | |
Equity [Abstract] | |
Options, Outstanding at beginning of period | shares | 2,488,000 |
Options, Granted | shares | |
Options, Exercised | shares | |
Options, Expired | shares | (50,000) |
Options, Forfeited | shares | |
Options, Outstanding at end of period | shares | 2,438,000 |
Options, Exercisable at end of period | shares | 609,500 |
Weighted average exercise price, Outstanding at beginning of period | $ 0.15 |
Weighted average exercise price, Granted | |
Weighted average exercise price, Exercised | |
Weighted average exercise price, Expired | $ 0.10 |
Weighted average exercise price, Forfeited | |
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 - Summar17
Stockholders' Equity - Summary of Common Stock Warrants Activity (Details) - Warrant [Member] | 3 Months Ended |
Jul. 31, 2015$ / sharesshares | |
Warrants, Outstanding at beginning of period | shares | 1,709,333 |
Warrants, Issued during the period | shares | |
Warrants, Exercised during the period | shares | |
Warrants, Expired during the period | shares | (965,000) |
Warrants, Outstanding at end of period | shares | 744,333 |
Warrants, Exercisable at end of period | shares | 744,333 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 0.19 |
Weighted Average Exercise Price, Issued | |
Weighted Average Exercise Price, Exercised | |
Weighted Average Exercise Price, Expired | $ .15 |
Weighted Average Exercise Price, Outstanding at end of period | 0.25 |
Weighted Average Exercise Price, Exercisable at end of period | $ 0.25 |
Commitments (Details Narrative)
Commitments (Details Narrative) | 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% |