XML 15 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
 3 Months Ended
Jul. 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions

 

Note 2: related party transactions

 

Accounts payable - related parties includes the following expense reimbursements due to related parties at July 31, 2012 and April 30, 2012.  Amounts due include reimbursements for D&O insurance, rent, travel, legal and cash advances for payment of other administrative expenses.

   July 31, 2012  April 30, 2012
       
Alan G. Massara, Chief Financial Officer  $19,055   $18,698 
   $19,055   $18,698 
           

 

Effective June 15, 2011, the Board of Directors approved compensation to begin accruing at the rate of $10,000 per month for each of the two listed executive officers.  At October 31, 2011, accrued expenses included $90,000 accrued for compensation.  Beginning effective November 1, 2011, the compensation rate for Mr. Coldren increased to $20,833 per month and for Mr. Massara increased to $18,750 per month.  Both agreed to discontinue accruing their salary effective January 31, 2012 until conditions improve.

 

Accrued expenses include the following:

 

    July 31, 2012    April 30, 2012 
           
Accrued compensation due officers  $208,750   $208,750 
Accrued interest due CEO   20,400    11,583 
 Amount due related parties   229,150    220,333 
Other accrued expenses   —      994 
Accrued interest - other   2,415    2,029 
Asset retirement obligation   426    416 
   $231,991   $223,772 
           

Convertible note payable – officer

Interim financing for due diligence expenses and operations is being funded pursuant to a $500,000 multiple advance bridge loan provided to the Company by Clinton W. Coldren, CEO.  In evidence of the loan, on November 3, 2011, the Company issued to Clinton W. Coldren that certain 8% Convertible Note in the principal amount of $500,000.  The Convertible Note has a term of one year and is convertible into shares of common stock of the Company, in whole or in part at any time, at an initial conversion price equal to 130% of the volume-weighted average price of the common stock for the 50 trading days following October 31, 2011, subject to adjustment for distributions to shareholders, stock splits, reclassification of shares and tender or exchange offers.  The Company does not have the right to prepay all or any portion of the Note prior to the Maturity Date.