Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2016 | Sep. 20, 2016 | |
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, 2016 | |
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 | 2,017 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 31, 2016 | Apr. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 10 | $ 42 |
Total Assets | 10 | 42 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 178,417 | 192,752 |
Due to related parties | 1,942,094 | 1,916,876 |
Total Current Liabilities | 2,120,511 | 2,109,628 |
Stockholders' Deficit: | ||
Common stock, 100,000,000 shares authorized, no par value, 32,779,298 shares issued and outstanding | 10,840,946 | 10,840,946 |
Accumulated deficit | (12,961,447) | (12,950,532) |
Total Stockholders' Deficit | (2,120,501) | (2,109,586) |
Total Liabilities and Stockholders' Deficit | $ 10 | $ 42 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 31, 2016 | Apr. 30, 2016 |
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, 2016 | Jul. 31, 2015 | |
Operating Expenses: | ||
General and administrative | $ 11,221 | $ 65,287 |
Research and development | 33,767 | |
Loss from Operations: | (11,221) | (99,054) |
Other Income (Expense): | ||
Gain on settlement of accounts payable | 666 | |
Interest expense | (360) | (360) |
Other Income (Expense) | 306 | (360) |
Net loss | $ (10,915) | $ (99,414) |
Net loss per share – basic and diluted | $ 0 | $ 0 |
Weighted average shares outstanding – basic and diluted | 32,779,298 | 32,779,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (10,915) | $ (99,414) |
Adjustments to reconcile loss to net cash used in operating activities: | ||
Donated services | 30,000 | |
Gain on settlement of accounts payable | (666) | |
Changes in operating assets and liabilities: | ||
Due to related parties | 360 | 360 |
Accounts payable and accrued liabilities | (13,669) | 258 |
Net cash used in operating activities | (24,890) | (68,796) |
Cash flows from financing activities | ||
Advances from related parties | 24,858 | 68,750 |
Net cash provided by financing activities | 24,858 | 68,750 |
Net change in cash and cash equivalents | (32) | (46) |
Cash and cash equivalents, beginning of period | 42 | 491 |
Cash and cash equivalents, end of period | 10 | 445 |
Supplemental Disclosures: | ||
Interest paid | ||
Income tax paid |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2016 | |
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, 2016 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 2016 as reported in Form 10-K, have been omitted. |
Going Concern
Going Concern | 3 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2. GOING CONCERN REGI incurred net losses of $10,915 for the three months ended July 31, 2016 and has a working capital deficit of $2,120,501 and an accumulated deficit of $12,961,447 at July 31, 2016. 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, 2016 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, 2016 | |
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, 2016, there was $1,942,094 due to related parties. As of April 30, 2016, there was $1,916,876 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. $Nil was recorded in the three month period ended July 31, 2016. 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. $Nil was recorded in the three month period ended July 31, 2016. During the three month period ended July 31, 2016, we incurred management fees of $3,500 and $2,500 for services provided by the CEO and CFO respectively. During the three months ended July 31, 2015 management fees of $7,500 was accrued to a company with 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, 2016 and 2015, 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. |
Gain on Debt Settlement
Gain on Debt Settlement | 3 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
Gain on Debt Settlement | NOTE 4. GAIN ON DEBT SETTLEMENT During the three months ended July 31, 2016 the Company recorded gain on debt settlement of $666 with a service provider. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 5. STOCKHOLDERS EQUITY a) Common Stock Options and Warrants During the three month periods ended July 31, 2016 and 2015, the Company did not record stock-based compensation associated with options or warrants. At July 31, 2016, the Company had $266,707 of total unrecognized compensation cost related to non-vested stock options and warrants, which will be recognized over future periods. A summary of REGIs stock option activity for the three months ended July 31, 2016 is as follows: Three Months ended July 31, 2016 Weighted Average Exercise Options Price Outstanding at beginning of period 1,938,000 $ 0.15 Outstanding at end of period 1,938,000 $ 0.15 Exercisable at end of period 484,500 $ 0.15 Weighted average fair value of options granted $ - A summary of REGIs common stock warrant activity for the three months ended July 31, 2016 is as follows: July 31, 2016 Weighted Average Exercise Warrants Price Outstanding at beginning of period 200,000 $ 0.25 Outstanding at end of period 200,000 0.25 Exercisable at end of period 200,000 $ 0.25 At July 31, 2016, the exercise price and the weighted average remaining contractual life of the outstanding warrants was $0.25 per share and 0.60 year, respectively. The intrinsic value of in the money exercisable warrants at July 31, 2016 was $Nil. |
Commitments
Commitments | 3 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 6. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 7. SUBSEQUENT EVENTS During August, 2016, the Company issued senior secured convertible promissory notes (the Convertible Notes) for total proceeds of $140,000. The Convertible Notes are secured against all assets of the Company, mature 90 days after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date, and convertible at any time on or after ninety days from the issuance date into the Companys common stock at $0.10 per share. On August 12, 2016, the Company adopted its 2016 Stock Option Plan to issue up to 5,000,000 shares to certain key employees, directors, officers and consultants. Pursuant to the 2016 plan, the Company granted 3,700,000 stock options to certain directors and employees exercisable into the Companys common shares at prices between $0.10 and $1.50, expiring July 20, 2021. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Summary of Stock Options Activity | A summary of REGIs stock option activity for the three months ended July 31, 2016 is as follows: Three Months ended July 31, 2016 Weighted Average Exercise Options Price Outstanding at beginning of period 1,938,000 $ 0.15 Outstanding at end of period 1,938,000 $ 0.15 Exercisable at end of period 484,500 $ 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, 2016 is as follows: July 31, 2016 Weighted Average Exercise Warrants Price Outstanding at beginning of period 200,000 $ 0.25 Outstanding at end of period 200,000 0.25 Exercisable at end of period 200,000 $ 0.25 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Accounting Policies [Abstract] | |||
Net loss | $ 10,915 | $ 99,414 | |
Working capital deficit | 2,120,501 | ||
Accumulated deficit | $ 12,961,447 | $ 12,950,532 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2012 | Apr. 30, 2016 | |
Due to related parties | $ 1,942,094 | $ 1,916,876 | ||
Management fees | 3,500 | $ 2,500 | ||
Promissory note bears interest rate | 6.00% | |||
Interest expense | 360 | 360 | ||
President, CEO And Director [Member] | ||||
Donated consulting services | 22,500 | |||
CFO, COO And Director [Member] | ||||
Donated consulting services | 7,500 | |||
Director [Member] | ||||
Management fees | $ 7,500 | |||
Promissory note due to related parties | $ 24,000 |
Gain on Debt Settlement (Detail
Gain on Debt Settlement (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Gain on debt settlement | $ 666 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) | 3 Months Ended |
Jul. 31, 2016USD ($)$ / shares | |
Equity [Abstract] | |
Unrecognized compensation cost | $ 266,707 |
Warrants exercise price | $ / shares | $ 0.25 |
Weighted average remaining contractual life of outstanding options | 7 months 6 days |
Warrants intrinsic value |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Activity (Details) | 3 Months Ended |
Jul. 31, 2016$ / sharesshares | |
Equity [Abstract] | |
Options, Outstanding at beginning of period | shares | 1,938,000 |
Options, Outstanding at end of period | shares | 1,938,000 |
Options, Exercisable at end of period | shares | 484,500 |
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 |
Stockholders' Equity - Summar19
Stockholders' Equity - Summary of Common Stock Warrants Activity (Details) - Warrant [Member] | Jul. 31, 2016$ / sharesshares |
Warrants, Outstanding at beginning of period | shares | 200,000 |
Warrants, Outstanding at end of period | shares | 200,000 |
Warrants, Exercisable at end of period | shares | 200,000 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ / shares | $ 0.25 |
Weighted Average Exercise Price, Outstanding at end of period | $ / shares | 0.25 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 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% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | Aug. 31, 2016 | Aug. 12, 2016 |
Proceeds from convertible notes | $ 140,000 | |
Debt instrument maturity period, description | The Convertible Notes are secured against all assets of the Company, mature 90 days after the issuance | |
Debt instrument interest rate | 10.00% | |
Common stock share per price | $ 0.10 | |
Maximum number of stock option issued | 5,000,000 | |
Number of stock options granted | 3,700,000 | |
Stock option exercise price range, minimum | $ 0.10 | |
Stock option exercise price range, maximum | $ 1.50 | |
Stock option plan expiration date | Jul. 20, 2021 | |
Mature 90 Days After [Member] | ||
Debt instrument interest rate | 20.00% |