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Convertible Notes Payable
 9 Months Ended
Jan. 31, 2015
Debt Disclosure [Abstract]  
Convertible Notes Payable

Note 4: CONVERTIBLE NOTES PAYABLE

 

Convertible notes payable consist of the following at January 31, 2015 and April 30, 2014.

 

    January 31, 2015     April 30, 2014  
             
Related Parties                
Convertible note payable to an officer/director renewed July 1, 2014, due April 30, 2015, interest accruing at 4% per annum, convertible at $0.015 per common share (a)   $ 500,000     $ 500,000  
Convertible note payable to an officer/director dated July 1, 2014, due April 30, 2015, interest accruing at 4% per annum, convertible at $0.015 per common share (b)     7,155       -  
Convertible note payable to an director dated July 1, 2014, due April 30, 2015, interest accruing at 4% per annum, convertible at $0.015 per common share (c)     22,888       -  
Total related parties     530,043       500,000  
Other                
Convertible note payable to a consultant renewed July 1, 2014, due April 30, 2015, interest accruing at 4% per annum, convertible at $0.015 per common share (d)     38,678       38,678  
Convertible note payable to a consultant dated July 1, 2014, due April 30, 2015, interest accruing at 4% per annum, convertible at $0.015 per common share (e)     17,100       -  
Total other     55,778       38,678  
Total convertible notes payable   $ 585,821     $ 538,678  

 

  (a) Interim financing for due diligence expenses and operations was 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 Mr. Coldren a 8% Convertible Note in the principal amount of $500,000. This Convertible Note had an original term of one year and was convertible into shares of common stock of the Company 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 stock dividends, stock splits and other corporate actions. On June 30, 2014, the Board of Directors approved the new terms listed above.
     
  (b) On July 1, 2014, and approved by the Board of Directors on June 30, 2014, a Convertible Note was issued to Mr. Coldren in the amount of $7,155 in exchange for amounts loaned to the Company by him as of April 30, 2014 and not included in the bridge loan. The terms of the Convertible Note are stated above.
     
  (c) On July 1, 2014, and approved by the Board of Directors on June 30, 2014, a Convertible Note was issued to Alan Massara in the amount of $22,888 in exchange for amounts loaned to the Company by him. The terms of the Convertible Note are stated above.
     
  (d) On July 1, 2014, and approved by the Board of Directors on June 30, 2014, the Convertible Note due a consultant was renewed with the terms stated above.
     
  (e) On July 1, 2014, and approved by the Board of Directors on June 30, 2014, a Convertible Note due a consultant was issued in exchange for amounts owed him, with the terms stated above.

 

The value of the conversion feature for the Convertible Notes either issued or extended on July 1, 2014 was calculated using the Black – Scholes valuation method with an annual volatility of 75%, no dividends and a risk free interest rate of 0.88%. The amount calculated, $54,677, is being amortized over the ten-month life of the notes to interest expense with a corresponding credit to additional paid in capital.

 

Total amount to be amortized   $ 54,677  
Amount amortized at January 31, 2015     (38,274 )
Balance to be amortized   $ 16,403