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Document and Entity Information

v2.4.0.8
Document and Entity Information
6 Months Ended
Oct. 31, 2015
Dec. 15, 2015
Document And Entity Information    
Entity Registrant Name Petro River Oil Corp.  
Entity Central Index Key 0001172298  
Document Type 10-Q  
Document Period End Date Oct. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --04-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   4,259,505
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2015  

Consolidated Balance Sheets

v2.4.0.8
Consolidated Balance Sheets (USD $)
Oct. 31, 2015
Apr. 30, 2015
Current Assets:    
Cash and cash equivalents $ 526,135 $ 1,010,543
Certificate of deposit - restricted 125,000 125,000
Accounts receivable - oil and gas 1,806 42,688
Accounts receivable - related party 18,271,716   
Real estate - held for sale 6,021,779   
Prepaid expenses and other current assets 48,729 52,771
Total Current Assets 24,995,165 1,231,002
Oil and gas assets, net 15,403,606 15,757,011
Property, plant and equipment, net of accumulated depreciation of $304,090 and $313,508, respectively 2,720 60,953
Intangible assets, net of accumulated amortization of $80,519 and $20,293, respectively 2,143,167 2,203,393
Other assets 28,132 27,922
Total Other Assets 17,577,625 18,049,279
Total Assets 42,572,790 19,280,281
Current Liabilities:    
Accounts payable and accrued expenses 163,187 252,227
Deposit on real estate sales 888,375   
Asset retirement obligations, current portion 541,959 541,959
Total Current Liabilities 1,593,521 794,186
Long-term liabilities:    
Asset retirement obligations, net of current portion 396,798 376,471
Total Long-term Liabilities 396,798 376,471
Total Liabilities 1,990,319 1,170,657
Equity:    
Preferred shares - 5,000,000 authorized; par value $0.00001; 0 shares issued and outstanding; Preferred B shares - 29,500 authorized; par value $0.00001 per share; 0 shares issued and outstanding      
Common shares - 100,000,000 authorized; par value $0.00001 per share; 4,259,505 Issued and outstanding 43 43
Additional paid-in capital 38,659,215 31,115,291
Accumulated deficit (14,167,061) (16,650,486)
Total Petro River Oil Corp. Equity 24,492,197 14,464,848
Non-controlling interest 16,090,274 3,644,776
Total Equity 40,582,471 18,109,624
Total Liabilities and Equity 42,572,790 19,280,281
Preferred B Shares [Member]
   
Equity:    
Preferred shares - 5,000,000 authorized; par value $0.00001; 0 shares issued and outstanding; Preferred B shares - 29,500 authorized; par value $0.00001 per share; 0 shares issued and outstanding      

Consolidated Balance Sheets (Parenthetical)

v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
Oct. 31, 2015
Accumulated depreciation of Property, plant and equipment $ 304,090
Preferred stock, shares authorized 5,000,000
Preferred stock, par value $ 0.00001
Preferred stock, shares issued 0
Preferred stock, shares outstanding 0
Common stock, shares authorized 100,000,000
Common stock, par value $ 0.00001
Common stock, shares issued 4,259,505
Common stock, shares outstanding 4,259,505
Preferred B Shares [Member]
 
Preferred stock, shares authorized 29,500
Preferred stock, par value $ 0.00001
Preferred stock, shares issued 0
Preferred stock, shares outstanding 0
Preferred shares, stated value per share $ 100

Consolidated Statements of Operations

v2.4.0.8
Consolidated Statements of Operations (USD $)
3 Months Ended 6 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Oct. 31, 2015
Oct. 31, 2014
Revenues        
Oil and natural gas sales    $ 757,485 $ 62,841 $ 1,423,761
Sales of real estate 18,347,111    18,347,111   
Total Revenues 18,347,111 757,485 18,409,952 1,423,761
Cost of revenues - sales of real estate 10,486,373    10,486,373   
Gross Margin 7,860,738 757,485 7,923,579 1,423,761
Operating Expenses        
Lease operating expenses 84,035 446,829 259,988 787,497
Depreciation, depletion and accretion 39,777 218,681 105,750 400,833
Amortization of intangibles 30,113    60,226   
Gain on sale of equipment (5,519)    (5,519)   
General and administrative 1,418,386 1,195,000 1,978,361 3,052,032
Total Expenses 1,566,792 1,860,510 2,398,806 4,240,362
Operating income (loss) 6,293,946 (1,103,025) 5,524,773 (2,816,601)
Other income (101)    782 33
Net income (loss) 6,293,845 (1,103,025) 5,525,555 (2,816,568)
Net income (loss) attributable to non-controlling interest 3,125,489 55,680 3,042,130 (347,031)
Net income (loss) attributable to Petro River Oil Corp. and Subsidiaries $ 3,168,356 $ (1,158,705) $ 2,483,425 $ (2,469,537)
Basic and diluted net income (loss) per Common Share $ 0.74 $ (0.28) $ 0.58 $ 0.60
Weighted Average Number of Common Shares Outstanding - Basic and Diluted 4,259,505 4,092,839 4,259,505 4,092,839

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Oct. 31, 2015
Oct. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 5,525,555 $ (2,816,568)
Adjustments to reconcile net income (loss) to net cash used in operating activities    
Depreciation, depletion and accretion 105,750 400,834
Amortization of intangibles 60,226   
Stock-based compensation 1,402,910 674,254
Non-cash cost of real estate properties sold 9,522,603   
Gain on sale of equipment (5,519)   
Changes in operating assets and liabilities:    
Accounts receivable - oil and gas 40,882 (225,805)
Accounts receivable - related party (17,383,341)   
Prepaid expenses and other current assets 4,042 (45,564)
Accounts payable and accrued expenses (89,036) (78,981)
Net Cash Used in Operating Activities (815,928) (2,091,830)
Cash Flows From Investing Activities:    
Purchase of certificate of deposit - restricted    (125,000)
Capitalized expenditures on oil and gas assets (7,283) (8,333,510)
Cash received upon disposal of oil and gas assets 279,013   
Purchase of equipment    (39,756)
Proceeds from sale of equipment 60,000   
Payments on deposits (210) (10,999)
Net Cash Provided by (Used in) Investing Activities 331,520 (8,509,265)
Cash Flows From Financing Activities:    
Cash payments of note payable    (1,926)
Cash received from non-controlling interest contribution    5,000,000
Net Cash Provided by Financing Activities    4,998,074
Decrease in cash and cash equivalents (484,408) (5,603,021)
Cash and cash equivalents, beginning of period 1,010,543 8,352,949
Cash and cash equivalents, end of period 526,135 2,749,928
Cash paid during the period for:    
Income taxes 14,482 7,975
Interest paid      
Non-cash investing and financing activities:    
Real estate contributed by non-controlling interest 15,544,382   
Accounts receivable for deposit received on real estate sales in escrow 888,375   
Acquisition of oil and gas assets    48,763
Issuance of note payable for purchase of fixed assets    $ 27,280

Organization

v2.4.0.8
Organization
6 Months Ended
Oct. 31, 2015
Organization And Liquidity  
Organization

Petro River Oil Corp (the “Company”) is an independent exploration and development company with a focus on drilling, completion, recompletions, and applying modern technologies to oil and gas assets. The Company’s core holdings are in Oklahoma. The Company’s operations are currently focused on the Mississippi Lime play, capitalizing on the experience, knowledge, and drilling techniques of its team. The Company is driven to utilize its expertise both in the region and in similar formations to exploit hydrocarbon prone resources with tight and/or challenging characteristics in order to create value for the Company and its shareholders. The Company’s principal administrative office is located in Houston, Texas and its principal operations are in Oklahoma with secondary operations in Kansas and Western Missouri. The Company also has an office in New York, New York, which is also headquarters to Petro Spring LLC (“Petro Spring”), the Company’s technology focused subsidiary.

 

The Company is currently focused on developing its Mississippi Lime acreage and acquiring attractive oil and gas assets in this current depressed oil market. The Company recently closed on the MegaWest Transaction (described below) in which it plans to jointly develop its acreage in Osage County, Oklahoma and announced its purchase agreement to acquire Horizon Investments (as described in Note 15), which includes a portfolio of domestic and international oil and gas assets.

 

Petro River Oil LLC (“Petro”), was incorporated under the laws of the State of Delaware on March 3, 2011.  Petro has purchased various interests in oil and gas leases, wells, records, data and related personal property located along the Mississippi Lime play in the state of Kansas from Metro Energy Corporation (“Metro”), a Louisiana company, and other interrelated entities, through a court approved order as Metro was undergoing Chapter 11 Bankruptcy proceedings as a Debtor-In-Possession of these various oil and gas assets. The Company has a total of 115,000 gross (85,000 net) acres of leased unproved property in the Mississippi Lime in Southeast Kansas.

 

Recent Developments

 

Reverse Stock Split.  On December 7, 2015 (the “Effective Date”), the Company effected a one (1) for two hundred (200) reverse split of its issued and outstanding common stock (the “Reverse Split”), and, immediately following the Reverse Split, filed an amendment to its Certificate of Incorporation with the Delaware Secretary of State to increase the Company's authorized number of shares of common stock to 100.0 million. The reverse stock split was approved by the Company's shareholders at the Company’s annual meeting of shareholders on July 8, 2015 and the specific ratio was subsequently determined at a meeting of the Company's Board of Directors on November 11, 2015. Following the filing of an amendment to the Company’s Certificate of Incorporation with the Delaware Secretary of State on December 1, 2015, each 200 shares of issued and outstanding common stock were converted into one share of common stock. On the Effective Date, the Company's common stock will begin trading under a new CUSIP number (71647K303). The Company's ticker symbol, "PTRC", will remain unchanged; however, the ticker symbol will be represented as "PTRCD" for 20 trading days commencing on the Effective Date to designate the Reverse Split.

 

As a result of the Reverse Split, all historical share amounts have been retrospectively recast to reflect the share exchange.  No fractional shares are to be issued, with fractional shares of common stock to be rounded up to the nearest whole share.

 

 

Megawest Transaction.  On October 15, 2015, the Company entered into a contribution agreement (the “Contribution Agreement”), with Megawest Energy Kansas Corporation (“Megawest”), a Delaware corporation and wholly owned subsidiary of the Company, and Fortis Property Group, LLC (“Fortis”), a Delaware limited liability company, pursuant to which the Company and Fortis each agreed to contribute certain assets to Megawest in exchange for shares of MegaWest common stock (“Megawest Shares”).

 

Upon execution of the Contribution Agreement, (i) the Company transferred its 50% membership interest in Bandolier Energy, LLC (the “Bandolier Interest”), with net assets of $7,119,798, and cancelled all of its ownership interest in the then issued and outstanding Megawest Shares, and (ii) Fortis transferred certain indirect interests held in 30 condominium units and the rights to any profits and proceeds therefrom, with a book value of $15,544,382, to Megawest.  Immediately thereafter, Megawest issued to the Company 58,510 Megawest Shares, representing a 58.51% member interest in Megawest, as consideration for the assignment of the Bandolier Interest, and issued to Fortis 41,490 Megawest Shares, representing a 41.49% member interest in Megawest, as consideration for the assets assigned to Megawest by Fortis.  Subject to the terms and conditions of the Contribution Agreement, following six months after the execution of the Contribution Agreement, the board of Megawest will engage in a valuation of the Company’s contribution to determine the fair market value (the “Redetermination”). Any shortfall from the initial valuation at contribution resulting from the Redetermination shall be required to be funded by the Company. The board of Megawest shall have certain remedies to exercise against the Company (including a right to foreclose on all of the Company’s equity in Megawest) upon a failure by the Company to fund the shortfall following the Redetermination.  In the event of foreclosure, the Bandolier Interest would revert back to the Company.

 

Basis of Preparation

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Basis of Preparation
6 Months Ended
Oct. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Preparation

The consolidated financial statements and accompanying footnotes are prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest.

 

These consolidated financial statements include the Company and the following subsidiaries:

 

Petro River Oil LLC, Petro Spring, LLC, PO1, LLC and MegaWest Energy USA Corp. and its wholly owned subsidiaries:

 

MegaWest Energy Texas Corp.

MegaWest Energy Kentucky Corp.

MegaWest Energy Missouri Corp.

MegaWest Energy Montana Corp.

 

Also contained in the consolidated financial statements is the financial information of the Company’s 58.51% owned subsidiary, MegaWest Energy Kansas Corp., which pursuant to the MegaWest Transaction includes the Company’s contribution of its 50% interest in Bandolier Energy LLC, as described in Note 5.

 

Significant Accounting Policies

v2.4.0.8
Significant Accounting Policies
6 Months Ended
Oct. 31, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies

The unaudited consolidated financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended April 30, 2015 filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2015. The Company assumes that the users of the interim financial information herein have read or have access to the audited financial statements for the preceding fiscal year and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, footnote disclosure, which would substantially duplicate the disclosure contained in the Company’s Form 10-K for the year ended April 30, 2015 has been omitted. The results of operations for the interim periods presented are not necessarily indicative of results for the entire year ending April 30, 2016.

 

 (a)   Use of Estimates:

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

The Company’s financial statements are based on a number of significant estimates, including oil and natural gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and natural gas properties, and timing and costs associated with its asset retirement obligations, as well as those related to the fair value of stock options, stock warrants and stock issued for services. While we believe that our estimates and assumptions used in preparation of the financial statements are appropriate, actual results could differ from those estimates.

 

 (b)   Receivables:

 

Pursuant to FASB ASC paragraph 310-10-35-47 trade receivables that management has the intent and ability to hold for the foreseeable future shall be reported in the balance sheet at outstanding principal adjusted for any charge-offs and the allowance for doubtful accounts.. The Company follows FASB ASC paragraphs 310-10-35-7 through 310-10-35-10 to estimate the allowance for doubtful accounts. Pursuant to FASB ASC paragraph 310-10-35-9, losses from uncollectible receivables shall be accrued when both of the following conditions are met: (a) Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset has been impaired at the date of the financial statements, and (b) The amount of the loss can be reasonably estimated. These conditions may be considered in relation to individual receivables or in relation to groups of similar types of receivables. If the conditions are met, an accrual shall be made even though the particular receivables that are uncollectible may not be identifiable. The Company reviews individually each trade receivable for collectability and performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. Bad debt expense is included in general and administrative expenses, if any.

 

Pursuant to FASB ASC paragraph 310-10-35-41 Credit losses for trade receivables (uncollectible trade receivables), which may be for all or part of a particular trade receivable, shall be deducted from the allowance. The related trade receivable balance shall be charged off in the period in which the trade receivables are deemed uncollectible. Recoveries of trade receivables previously charged off shall be recorded when received. The Company charges off its trade account receivables against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

The allowance for doubtful accounts at October 31, 2015 and April 30, 2015 was $0 and $0, respectively.

 

 (c)   Real Estate – Held for Sale:

 

Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

 

 (d)   Per Share Amounts:

 

Basic net income (loss) per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. For the three and six months ended October 31, 2014, potentially dilutive securities were not included in the calculation of diluted net loss per share because to do so would be anti-dilutive. For the three and six months ended October 31, 2015, the dilutive effect of stock options and warrants was 0 because all options and warrants outstanding were out of money.

 

The Company had the following common stock equivalents at October 31, 2015 and 2014:

 

As of   October 31, 2015     October 31, 2014  
Stock Options     598,352       534,691  
Stock Purchase Warrants     336,458       203,125  
      934,810       737,816  

 

 (e)   Income Taxes:

 

Income Tax Provision

 

The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

 

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

 

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary.

 

During the six months ended October 31, 2015, the Company utilized a portion of its NOL carry-forwards to absorb the income created by the real estate segment.

 

 

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

 

Uncertain Tax Positions

 

The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the reporting period ended October 31, 2015 or 2014.

 

 (f)   Recent Accounting Pronouncements:

 

The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.

 

 (g)   Subsequent Events:

 

The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

 

Going Concern and Management’s Plan

v2.4.0.8
Going Concern and Management’s Plan
6 Months Ended
Oct. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern and Management’s Plan:

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of October 31, 2015, the Company had an accumulated deficit of $14,167,061.  The Company has incurred significant losses since inception. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

At October 31, 2015, the Company had a working capital surplus of approximately $23.4 million, of which approximately $18.3 million and $6.0 million is attributable to an accounts receivable from a related party, and real estate held for sale, respectively, each of which are held by Megawest, the Company’s 58.51% owned subsidiary.  As a result of the utilization of cash in its operating activities, and the development of its assets, the Company has incurred losses since it commenced operations. In addition, the Company has a limited operating history prior to the acquisition of Bandolier.  At October 31, 2015, the Company had cash and cash equivalents of $526,135.  The Company’s primary source of operating funds since inception has been equity financings.

 

As a result of the execution of the purchase agreement with Horizon I Investments, LLC as discussed in Note 16, the Company received $750,000 in debt financing, which amount management intends to use to fund operating expenses pending consummation of the Horizon Transaction. To address the current challenging oil and gas environment, and in order to increase the value of the Company’s oil and gas assets, management has also curtailed certain oil and gas operations, and focused on the Company’s technology and related initiatives, as well as the Horizon Transaction. In addition to the Horizon Transaction and the Megawest Transaction, the Company is exploring farm in and joint venture opportunities for its oil and gas assets as well other opportunities to increase shareholder value. No assurances can be given that management will be successful. 

 

 

Business Acquisition

v2.4.0.8
Business Acquisition
6 Months Ended
Oct. 31, 2015
Business Combinations [Abstract]  
Business Acquisition

Acquisition of Interest in Bandolier Energy LLC.   On May 30, 2014, the Company entered into a Subscription Agreement pursuant to which the Company was issued a 50% interest in Bandolier Energy, LLC (“Bandolier”) in exchange for a capital contribution of $5.0 million (the “Bandolier Acquisition”). In connection with the Bandolier Acquisition, the Company has the right to appoint a majority of the board of managers of Bandolier. The Company’s Executive Chairman is a manager of, and investor in, Pearsonia West Investment Group, LLC (“PWIG”), a special purpose vehicle formed for the purpose of investing in Bandolier with the Company and Ranger Station, LLC (“Ranger Station”). Concurrently with the Bandolier Acquisition, PWIG was issued a 44% interest in Bandolier for cash consideration of $4.4 million, and Ranger Station was issued a 6% interest in Bandolier for cash consideration of $600,000. In connection with PWIG’s investment in Bandolier, the Company and PWIG entered into an agreement, dated May 30, 2014, granting the members of PWIG an option, exercisable at any time prior to May 30, 2017, to exchange their pro rata share of the Bandolier membership interests for shares of the Company’s common stock, at a price of $16 per share, subject to adjustment (the “Option”). The Option, if fully exercised, would result in the Company issuing 275,000 shares of its common stock, or 6% to the members of PWIG. 

 

The Company has operational control along with a 50% ownership interest in Bandolier. As a result, the Company consolidates Bandolier. The remaining 50% non–controlling interest represents the equity investment from PWIG and Ranger Station.

 

On May 30, 2014, Bandolier acquired for $8,712,893, less a $407,161 claw back, all of the issued and outstanding equity of Spyglass Energy Group, LLC (“Spyglass”), the owner of oil and gas leases, leaseholds, lands, and options and concessions thereto located in Osage County, Oklahoma. Spyglass controls a significant contiguous oil and gas acreage position in Northeastern Oklahoma, consisting of approximately 106,000 acres, with substantial original oil in place, stacked reservoirs, as well as exploratory and development opportunities that can be accessed through both horizontal and vertical drilling. Significant infrastructure is already in place including 32 square miles of 3D seismic, 3 phase power, a dedicated sub-station as well as multiple oil producing horizontal wells.  No additional contingencies were assumed.

 

The Company recorded the purchase of Spyglass using the acquisition method of accounting as specified in ASC 805 “Business Combinations.” This method of accounting requires the acquirer to (i) record purchase consideration issued to sellers in a business combination at fair value on the date control is obtained, (ii) determine the fair value of any non-controlling interest, and (iii) allocate the purchase consideration to all tangible and intangible assets acquired and liabilities assumed based on their acquisition date fair values. Further, the Company commenced reporting the results of Spyglass on a consolidated basis with those of the Company effective upon the date of the acquisition.

 

The Company consolidated Bandolier as of May 30, 2014, and the results of operations of the Company include that of Bandolier from June 1, 2014.

 

The following table summarizes, on an unaudited pro forma basis, the results of operations of the Company as though the acquisition had occurred as of May 1, 2014. The pro forma amounts presented are not necessarily indicative of either the actual operation results had the acquisition transaction occurred as of May 1, 2014.

 

   

For the Three

Months Ended

   

For the Six

Months Ended

 
   

October 31,

2014

   

October 31,

2014

 
Revenues   $ 1,184,375     $ 2,217,467  
Net loss   $ (1,681,079 )   $ (3,187,533 )
Net loss per common share - Basic and diluted   $ (0.41 )   $ (0.79 )
Weighted average number of common shares outstanding - Basic and diluted     4,029,839       4,029,839  

 

Accounts Receivable - Related Party

v2.4.0.8
Accounts Receivable - Related Party
6 Months Ended
Oct. 31, 2015
Accounting Policies [Abstract]  
Accounts Receivable - Related Party

As discussed in Note 1, on October 15, 2015, the Company entered into the Contribution Agreement with Megawest and Fortis, pursuant to which the Company and Fortis each agreed to assign certain assets to Megawest in exchange for the Megawest Shares.

 

Upon execution of the Contribution Agreement, (i) the Company transferred its 50% membership interest in Bandolier with a net book value of $7,119,798, and cancelled all of its ownership interest in the then issued and outstanding Megawest Shares, and (ii) Fortis transferred certain indirect interests held in 30 condominium units and the rights to any profits and proceeds therefrom, with a book value of $15,544,382, to Megawest. Immediately thereafter, Megawest issued to the Company 58,510 Megawest Shares, representing a 58.51% member interest in Megawest, as consideration for the assignment of the Bandolier Interest, and issued to Fortis 41,490 Megawest Shares, representing a 41.49% member interest in Megawest, as consideration for the condominiums assigned to Megawest by Fortis.

 

As of October 31, 2015, the Company recorded an accounts receivable – related party in the amount of $17,383,341 which was due from Fortis for the sale of 18 condominiums. See Note 7.  The Company also recorded an accounts receivable – related party in the amount of $888,375 for deposits received on the sale of additional units that was being held in escrow and an offsetting liability of $888,375 for the deposits received.  These funds were received by Megawest subsequent to October 31, 2015. These funds are held currently by Megawest and controlled by the board of directors of Megawest, consisting of two members appointed by Fortis, and one by the Company.

 

Real Estate Held for Sale

v2.4.0.8
Real Estate Held for Sale
6 Months Ended
Oct. 31, 2015
Notes to Financial Statements  
Real Estate Held for Sale

As discussed above, the Company acquired an interest in 30 condominium units pursuant to the Megawest Transaction.  Between October 15, 2015 and October 31, 2015, the Company sold 18 condominium units with a book value of $9,522,603 for gross proceeds of $18,347,111.  The Company incurred commissions and closing costs of $963,770 for the 18 units sold.  As of October 31, 2015, proceeds from the sale of the 18 units was received by Fortis, but had not yet been transferred to the Company. See Note 6.

 

The following table summarizes the activity for real estate held for sale:

 

    October 31, 2015  
Balance at April 30, 2015   $ -  
Additions - 30 condominium units contributed by Fortis     15,544,382  
Cost of sales - 18 condominium units     (9,522,603 )
Balance at October 31, 2015   $ 6,021,779  

 

The Company reviewed the accounting standards, Real Estate - General (ASC 970-10) and Property, Plant, and Equipment (ASC 360-10), to determine the appropriate classification for this property. According to ASC 970-10, real estate that is held for sale in the ordinary course of business is classified as inventory, which is a current asset. ASC 360-10 provides the following criteria for property to be classified as held for sale:

 

·Management with the appropriate authority commits to a plan to sell the asset;
·The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;
·An active program to locate a buyer and other actions required to complete the plan of sale have been initiated;
·The sale of the property or asset within one year is probable and will qualify for accounting purposes as a sale;
·The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and
·Actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

 

The Company had sales of units during the period and has reviewed the recent interest for remaining units. Based on the review, the Company believes that the sale of the remaining units within one year is probable. The Company concluded that all of these criteria have been met for these properties and that they are appropriately classified as held for sale in current assets.

 

Oil and Gas Assets

v2.4.0.8
Oil and Gas Assets
6 Months Ended
Oct. 31, 2015
Extractive Industries [Abstract]  
Oil and Gas Assets

The following table summarizes the oil and gas assets by project:

 

Cost   Oklahoma     Kansas     Missouri     Other    

 

Total

 
Balance April 30, 2015   $ 6,935,000     $ 7,803,020     $ 918,991     $ 100,000     $ 15,757,011  
Additions     7,283       -       -       -       7,283  
Disposals     (279,013 )     -       -       -       (279,013 )
Depreciation, depletion and amortization     (23,042     (58,634 )     -       -       (81,676 )
Balance October 31, 2015   $ 6,640,228     $ 7,744,386     $ 918,991     $ 100,000     $ 15,403,605  

 

During the six months ended October 31, 2015, the Company disposed of oil and gas assets and received proceeds totaling $279,013. The proceeds were offset against the full cost pool therefore no gain or loss was recognized.

 

As of April 30, 2015, the Company performed a ceiling test on the oil and gas assets and recognized an impairment charge of $1,246,975. As of October 31, 2015, the Company performed a ceiling test on the oil and gas assets and no impairment was noted.

 

Change in Personia West Concession.  On July 31, 2015, the Company received formal notice from the Osage Mineral Council that the new concession terms for the Pearsonia West Concession (“Pearsonia West”) are effective and formalized. Pearsonia West is a 106,500 contiguous acre position in Osage County, Oklahoma which the Company owns a controlling interest in through its investment in Bandolier Energy LLC, whole owner of the concession.  

 

The new terms allow for vertical drilling obligations to hold the concession which previously had horizontal drilling obligations.  This provides a significant cost savings to the Company and preserves potential control of its core asset until 2018, assuming the negotiated obligations are met. Previously, the concession required 11 horizontal wells to be drilled by the end of 2015 with the concession terminating in the event these wells were not drilled.  The estimated cost of this obligation was approximately $22.1 million.

 

Pursuant to the new terms, assuming estimated completion costs of $300,000 per vertical well, the drilling obligations only require capital expenditures of: $1.8 million in 2016, $2.7 million in 2017, and $3.6 million in 2018, collectively $8.1 million to hold the entire concession.  This represents a cost savings to the Company of approximately $14.0 million while gaining an extra three years of potential control. 

 

The Company is currently exploring multiple options for development for the Pearsonia Concession including entertaining inquiries from industry and joint venture partners.

 

 

Intangible Assets

v2.4.0.8
Intangible Assets
6 Months Ended
Oct. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Acquisition of Havelide and Coalthane Assets.  On February 18, 2015, Petro Spring I, LLC ("Petro Spring I"), a Delaware limited liability company wholly owned by Petro Spring, entered into a definitive asset purchase agreement ("Havelide Purchase Agreement") to purchase substantially all of the assets of Havelide GTL LLC ("Havelide") and Coalthane Tech LLC ("Coalthane"), consisting of certain patents and other intellectual property, trade secrets, and assets developed and owned by Havelide to produce a gasoline-like liquid and high-purity hydrogen from natural gas, at low temperature and at low pressure (the "Havelide Assets") and consisting of certain patents and other intellectual property, trade secrets, and assets developed and owned by Coalthane to reduce the methane from coal mines and other wells (the "Coalthane Assets").  The purchase of the Coalthane and Havelide Assets was consummated on February 27, 2015.  The acquisitions reflect the increased focus on technology solutions in an effort to diversify our business amid a challenging oil price environment.  We believe the patents acquired can potentially be licensed or sold for a profit.

 

The Company’s intangible assets are held by Petro Spring, a wholly owned technology focused subsidiary of the Company. It was launched with an intentionally broad mandate to acquire and commercialize cutting edge technologies with the intent to capitalize on the significant technological experience of its leadership team and network of industry relationships within the energy sector.

  

The Company’s intangibles assets consisted of the following:

 

 

Estimated

useful life

 

As of

October 31,

2015

   

As of

April 30,

2015

 
Patent rights 15 years   $ 2,223,686     $ 2,223,686  
Less: accumulated amortization       (80,519 )     (20,293 )
Intangible assets, net     $ 2,143,167     $ 2,203,393  

 

The Company recorded amortization expense of $30,113 and $0 for the three months ended October 31, 2015 and 2014, respectively, and recorded amortization expense of $60,226 and $0 for the six months ended October 31, 2015 and 2014, respectively.

 

As of April 30, 2015 and October 31, 2015, the Company performed an impairment assessment on the intangible assets and no impairment was noted.

 

The following table outlines estimated future annual amortization expense for the next five years and thereafter:

 

April 30,      
2016 (remainder of year)   $ 59,489  
2017     119,469  
2018     119,469  
2019     119,469  
2020     119,469  
Thereafter     1,605,802  
    $ 2,143,167  

 

 

Asset Retirement Obligations

v2.4.0.8
Asset Retirement Obligations
6 Months Ended
Oct. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

The total future asset retirement obligation was estimated based on the Company’s ownership interest in all wells and facilities, the estimated legal obligations required to retire, dismantle, abandon and reclaim the wells and facilities and the estimated timing of such payments. The Company estimated the present value of its asset retirement obligations at both October 31, 2015 and April 30, 2015, based on a future undiscounted liability of $1,146,125 and $1,143,857, respectively. These costs are expected to be incurred within one to 24 years. A credit-adjusted risk-free discount rate of 10% and an inflation rate of 2% were used to calculate the present value.

 

Changes to the asset retirement obligation were as follows:

 

   

October 31,

2015

   

April 30,

2015

 
Balance, beginning of period   $ 918,430     $ 818,010  
Additions     -       52,514  
Accretion     20,327       47,906  
Total asset retirement obligations     938,757       918,430  
Less: current portion of asset retirement obligations     (541,959 )     (541,959 )
Long-term portion of asset retirement obligations   $ 396,798     $ 376,471  

 

Expected timing of asset retirement obligations:

 

Year Ending April 30,      
2016 (remainder of year)     541,959  
2017     212,000  
2018     -  
2019     -  
2020     -  
Thereafter     392,166  
      1,146,125  
Effect of discount     (207,368 )
Total   $ 938,757  

 

As of October 31, 2015 and April 30, 2015, the Company has $0 of reclamation deposits with authorities to secure certain abandonment liabilities.

 

Related Party Transaction

v2.4.0.8
Related Party Transaction
6 Months Ended
Oct. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transaction

On October 30, 2015, Mr. Stephen Brunner joined the Company as President.  Mr. Brunner has been tasked with making oil and gas related decisions and execute the Company’s growth strategy. Under the terms of the contract, Mr. Brunner will receive a base salary of $5,000 per month from January 2016 until March 2016, which amount will increase to $10,000 per month thereafter. Mr. Brunner was also granted 53,244 stock options, which represents 1.25% of the Company’s outstanding common stock as of October 31, 2015, subject to vesting schedules, aligning his interests strongly with shareholders. He also has the right to purchase an additional 1.75% of the Company’s common stock subject to shareholder approval on the increase of the current stock option plan and achieving pre-defined target objectives.

 

The Company computed the fair value of the grant as of the date of grant utilizing a Black-Scholes option-pricing model using the following assumptions: common share value based on the fair value of the Company’s common stock as quoted on the Over the Counter Bulletin Board, $1.78; exercise price of $2.00; expected volatility of 171%; and a discount rate of 2.16%. The grant date fair value of the award was $89,525. For the three and six months ended October 31, 2015, the Company expensed $17,905 and $17,905, respectively, to general and administrative expenses.

 

 

 

Stockholders' Equity

v2.4.0.8
Stockholders' Equity
6 Months Ended
Oct. 31, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

As of October 31, 2015 and April 30, 2015, the Company had 5,000,000 shares of blank check preferred stock authorized with a par value of $0.00001 per share. None of the blank check preferred shares were issued or outstanding.

 

As of October 31, 2015 and April 30, 2015, the Company had 29,500 shares of preferred B preferred stock authorized with a par value of $0.00001 per share (“Series B Preferred”). No Series B Preferred shares are issued or outstanding. 

 

As of October 31, 2015 and April 30, 2015, the Company had 112,500,000 shares of common stock authorized with a par value of $0.00001 per share. There were 4,259,505 shares of common stock issued and outstanding as of October 31, 2015 and April 30, 2015. 

  

 

Stock Options

v2.4.0.8
Stock Options
6 Months Ended
Oct. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options

The following table summarizes information about the options changes of options for the period from Aril 30, 2015 to October 31, 2015 and options outstanding and exercisable at October 31, 2015:

 

    Options    

Weighted Average

Exercise Prices

 
             
Outstanding April 30, 2015     540,941     $ 12.00  
Exercisable – April 30, 2015     158,241     $    
Granted     453,039     $ 2.00  
Exercised     -     $ -  
Forfeited/Cancelled     (395,629   $ 11.71  
Outstanding – October 31, 2015     598,352     $ 4.39  
Exercisable – October 31, 2015     439,951     $   5.21  
                 
Outstanding – Aggregate Intrinsic Value           $ -  
Exercisable – Aggregate Intrinsic Value           $ -  

 

The Company restructured its option plan by cancelling 395,629 options and issuing 453,039 options to new and existing option holders pursuant to the Amended and Restated 2012 Equity Compensation Plan.

 

For options issued during the six months ended October 31, 2015, the Company computed the fair value of the grant as of the date of grant utilizing a Black-Scholes option-pricing model using the following assumptions: common share value based on the fair value of the Company’s common stock as quoted on the Over the Counter Bulletin Board, range of $2.00 to $12.00; exercise price range of $2.00 to $12.00; expected volatility of 171%; and a discount rate range of 2.16% to 2.29%.

 

The following table summarizes information about the options outstanding and exercisable at October 31, 2015:

 

      Options Outstanding   Options Exercisable  
Exercise Price   Options  

Weighted Avg.

Life Remaining

 

Weighted Avg.

Exercise Price

  Options  

Weighted Avg.

Exercise Price

 
$ 44.00   2,326   0.01 years   $ 44.00   2,326   $ 44.00  
$ 12.00   132,987   8.18 years   12.00   130,811   $ 12.00  
$ 6.00   10,000   9.25 years   $ 6.00   10,000   $ 6.00  
$ 2.00   453,039   10.0 years   $ 2.00   296,814   $ 2.00  
      598,352              439,951        
Aggregate Intrinsic Value           $ -       $ -  

  

During the three months ended October 31, 2015 and 2014, the Company expensed approximately $1,174,000 and $485,000 to general and administrative expense for stock-based compensation pursuant to employment and consulting agreements. During the six months ended October 31, 2015 and 2014, the Company expensed approximately $1,403,000 and $674,200 to general and administrative expense for stock-based compensation pursuant to employment and consulting agreements.

 

As of October 31, 2015, the total intrinsic value of options outstanding and exercisable was $0.

  

During the three and six months ended October 31, 2015, the Company had no other stock-based compensation expense.

 

As of October 31, 2015, the Company has approximately $683,000 in unrecognized stock-based compensation expense, which will be amortized over a weighted average exercise period of 4.25 years.

 

Warrants:

 

   

Number of

 Warrants

   

Weighted

Average

Exercise Price

   

Weighted

Average Life

Remaining

 
Outstanding and exercisable – April 30, 2015     336,458     36.00       2.29  
Forfeited     -       -       -  
Granted     -       -       -  
Outstanding and exercisable – October 31, 2015     336,458      $ 36.00       2.04  

 

There were no changes of the Company’s warrants during the six months ended October 31, 2015. The aggregate intrinsic value of the outstanding warrants was $0.

Non-controlling interest

v2.4.0.8
Non-controlling interest
6 Months Ended
Oct. 31, 2015
Noncontrolling Interest [Abstract]  
Non-controlling interest

At October 31, 2015 the Company’s non–controlling interest was as follows:

 

    Bandolier     Fortis     Total  
Non–controlling interest at April 30, 2015   $ 3,644,776     $ -     $ 3,644,776  
Contribution of real estate by non-controlling interest holders     -       9,403,368       9,403,368  
Non–controlling interest share of income (losses)     (154,987 )     3,197,117       3,042,130  
Non–controlling interest at October 31, 2015   $ 3,489,789     $ 12,600,485     $ 16,090,274  

 

Segment Information

v2.4.0.8
Segment Information
6 Months Ended
Oct. 31, 2015
Segment Reporting [Abstract]  
Segment Information

The Company evaluates performance of its operating segments based on revenue and operating profit (loss). Segment information for the three and six months ended October 31, 2015 and 2014 and as of October 31, 2015, and April 30, 2015, are as follows:

 

    Oil and Gas     Real Estate     Total  
Three months ended October 31, 2015                        
Revenue   $     $ 18,347,111     $ 18,347,111  
Cost of revenue           (10,486,373 )     (10,486,373 )
Gross margin           7,860,738       7,860,738  
Operating expenses     (1,572,311 )     -       (1,572,311 )
Operating profit/(loss )     (1,572,311 )     7,860,738       6,288,427  
                         
Three months ended October 31, 2014                        
Revenue   $ 757,485     $     $ 757,485  
Cost of revenue                  
Gross margin     757,485             757,485  
Operating expenses     (1,860,510 )           (1,860,510 )
Operating profit/(loss)     (1,103,025 )           (1,103,025 )
                         
Six months ended October 31, 2015                        
Revenue   $ 62,841     $ 18,347,111     $ 18,409,952  
Cost of revenue           (10,486,373 )     (10,486,373 )
Gross margin     62,841       7,860,738       7,860,738  
Operating expenses     (2,404,325 )     -       (2,404,325 )
Operating profit/(loss )     (2,341,484 )     7,860,738       5,519,254  
                         
Six months ended October 31, 2014                        
Revenue   $ 1,423,761     $     $ 1,423,761  
Cost of revenue                  
Gross margin     1,423,761             1,423,761  
Operating expenses     (4,240,362 )           (4,240,362  
Operating profit/(loss)     (2,816,601 )           (2,816,601 )
                         
October 31, 2015                        
Cash and cash equivalents (excludes $125,000 of restricted cash)   $ 526,135     $     $ 526,135  
Investment in real estate           6,021,779       6,021,779  
Oil and gas assets, net     15,403,606             15,403,606  
Intangible assets, net     2,143,167             2,143,167  
                         
April 30, 2015                        
Cash and cash equivalents (excludes $125,000 of restricted cash)   $ 1,010,543     $     $ 1,010,543  
Investment in real estate                  
Oil and gas assets, net     15,757,011             15,757,011  
Intangible assets, net     2,203,393             2,203,393  

 

 

Contingency and Contractual Obligations

v2.4.0.8
Contingency and Contractual Obligations
6 Months Ended
Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Contingency and Contractual Obligations

(a) In January 2010, the Company experienced a flood in its Calgary office premises as a result of a broken water pipe. There was significant damage to the premises rendering them unusable until the landlord had completed remediation. Pursuant to the lease contract, the Company asserted that rent should be abated during the remediation process and accordingly, the Company did not pay any rent after December 2009. During the remediation process, the Company engaged an independent environmental testing company to test for air quality and for the existence of other potentially hazardous conditions. The testing revealed the existence of potentially hazardous mold and the consultant provided specific written instructions for the effective remediation of the premises. During the remediation process, the landlord did not follow the consultant’s instructions and correct the potentially hazardous mold situation and subsequently in June 2010 gave notice and declared the premises to be ready for occupancy. The Company re-engaged the consultant to re-test the premises and the testing results again revealed the presence of potentially hazardous mold. The Company determined that the premises were not fit for re-occupancy and considered the landlord to be in default of the lease and the lease terminated.

 

On January 30, 2014 the landlord filed a Statement of Claim against the Company for rental arrears in the amount aggregating approximately CAD $759,000. On October 20, 2014, the Company filed a summary judgment application stating that the landlord’s claim is barred as it was commenced outside the 2-year statute of limitation period under the Alberta Limitations Act. The landlord subsequently filed a cross-application to amend its Statement of Claim to add a claim for loss of prospective rent in an amount of approximately CAD $665,000. The applications were heard on June 25, 2015.   On July 3, 2015 the court issued a decision allowing both applications.  On the basis of this decision, the landlord’s claim for rental arrears in the approximate amount of CAD $759,000 has now been replaced by a claim for loss of prospective rent in the approximate amount of CAD $665,000 (which the Company believes is more accurately quantified at approximately CAD $450,000).  The decision has been appealed by both parties and the appeal hearing has been scheduled for March 16, 2016.

 

(b) In September 2013, the Company was notified by the Railroad Commission of Texas (the “Commission”) that the Company was not in compliance with regulations promulgated by the Commission. The Company was therefore deemed to have lost its corporate privileges within the State of Texas and as a result, all wells within the state would have to be plugged. The Commission therefore collected $25,000 from the Company, which was originally deposited with the Commission, to cover a portion of the estimated costs of $88,960 to plug the wells. In addition to the above, the Commission also reserved its right to separately seek any remedies against the Company resulting from its noncompliance.

 

(c) On August 11, 2014, Martha Donelson and John Friend amended their complaint in an existing lawsuit by filing a class action complaint styled: Martha Donelson and John Friend, et al. v. United States of America, Department of the Interior, Bureau of Indian Affairs and Devon Energy Production, LP, et al., Case No. 14-CV-316-JHP-TLW, United States District Court for the Northern District of Oklahoma (the “Proceeding”).  The plaintiffs added as defendants twenty-seven (27) specifically named operators, including the Company, as well as all Osage County lessees and operators who have obtained a concession agreement, lease or drilling permit approved by the Bureau of Indian Affairs (“BIA”) in Osage County allegedly in violation of National Environmental Policy Act (“NEPA”).  Plaintiffs seek a declaratory judgment that the BIA improperly approved oil and gas leases, concession agreements and drilling permits prior to August 12, 2014, without satisfying the BIA’s obligations under federal regulations or NEPA, and seek a determination that such oil and gas leases, concession agreements and drilling permits are void ab initio.  Plaintiffs are seeking damages against the defendants for alleged nuisance, trespass, negligence and unjust enrichment.  The potential consequences of such complaint could jeopardize the corresponding leases.

 

On October 7, 2014 Spyglass, along with other defendants, filed a motion to dismiss the August 11, 2014 Proceeding on various procedural and legal arguments.  Plaintiffs filed their response to the motion to dismiss on October 27, 2014.  Spyglass filed its reply brief on November 10, 2014 and the plaintiffs were granted leave until November 19, 2014 to file a reply to Spyglass’ reply brief.  Once the briefing cycle concluded on November 19, 2014, the motion to dismiss became ripe for determination by the court.  Oral arguments may be ordered by the court.  There is no specific timeline by which the court must render a ruling.

 

(d) Mega West Energy Missouri Corp. (“Megawest”), a wholly owned subsidiary of the Company, was previously involved in two cases related to oil leases in West Central, Missouri.  The first case (James Long and Jodeane Long v. Mega West Energy Missouri and Petro River Oil Corp., case number 13B4-CV00019) was a case for unlawful detainer, pursuant to which the plaintiffs contended that a Megawest oil and gas lease had expired and Megawest was unlawfully possessing the plaintiffs’ real property by asserting that the leases remained in effect.  Megawest filed a second case on October 14, 2014 (Mega West Energy Missouri Corp. v. James Long, Jodeane Long, and Arrow Mines LLC, case number 14VE-CV00599).  This case was pending in Vernon County, Missouri.  Although the two cases were separate, they were interrelated.  In the Vernon County case, Megawest made claims for: (1) replevin for personal property; (2) conversion of personal property; (3) breach of the covenant of quiet enjoyment regarding the lease; (4) constructive eviction of the lease; (5) breach of fiduciary obligation against James Long; (6) declaratory judgment that the oil and gas lease did not terminate; and (7) injunctive relief to enjoin the action pending in Barton County, Missouri.  On September 21, 2015, the parties entered into a Settlement and Release Agreement for both cases.   The parties agreed to release their claims and dismiss their lawsuits with prejudice.  Megawest released its claims to certain leases and the plaintiffs purchased certain personal property from Megawest.  The matters have been completely resolved, and the cases dismissed.

 

(e) The Company is from time to time involved in legal proceedings in the ordinary course of business. It does not believe that any of these claims and proceedings against it is likely to have, individually or in the aggregate, a material adverse effect on its financial condition or results of operations.

Subsequent events

v2.4.0.8
Subsequent events
6 Months Ended
Oct. 31, 2015
Subsequent Events [Abstract]  
Subsequent events

Acquisition of Horizon Investments.  On December 1, 2015, the Company entered into a conditional purchase agreement with Horizon I Investments, LLC ("Horizon Investments") ("Purchase Agreement"). Under the terms of the Purchase Agreement, the Company intends to acquire from Horizon Investments, no earlier than April 30, 2016 (the "Closing Date"), and subject to the satisfaction of certain conditions set forth in the Purchase Agreement (the "Horizon Transaction"): (i) a 20% membership interest in Horizon Energy Partners, LLC ("Horizon Energy Partners"); (ii) certain promissory note issued by Horizon Investments to the Company in the principal amount of $750,000 ("Horizon Note"); (iii) approximately $690,000 currently held in escrow pending Closing (the "Closing Proceeds"); and (iv) certain bank, investment and other accounts maintained by Horizon Investments, in an amount which, together with the principal amount of the Horizon Note and the Closing Proceeds, total not less than $5.0 million (collectively, the "Purchased Assets").  The consideration for the Purchased Assets is 10,168,333 post-split shares of the Company's common stock, which shares shall be issued to Horizon Investments on the Closing Date.

 

The Escrow Proceeds are being held in a third party escrow account under the terms of an Escrow Agreement, dated November 17, 2015 ("Escrow Agreement").  Under the terms of the Escrow Agreement, the Escrow Proceeds will be disbursed to the Company upon consummation of the Horizon Transaction, the issuance to certain investors of 230.0 million shares of the Company's Common Stock, as well as the satisfaction of other release conditions set forth in the Escrow Agreement. Horizon Energy Partners is an oil and gas exploration and development company with a portfolio of domestic and international assets. Horizon Energy Partner’s key projects include two assets located in the United Kingdom, adjacent to the giant Wytch Farm oil field, the largest onshore oil field in Western Europe.  Other projects include the redevelopment of a large oil field in Kern County, California and the development of an additional recent discovery in Kern County. The Company will provide more detail on each project on or prior to the closing of the Horizon Transaction.

 

Issuance of Horizon Note.  On December 1, 2015, the Company issued the Horizon Note, in the principal amount of $750,000, the proceeds of which are to be used for working capital purposes. Interest on the Horizon Note is due upon the earlier to occur of closing of the Horizon Transaction, or December 31, 2016. Amounts due under the terms of the Horizon Note accrue interest at an annual rate equal to one half of one percent.

 

Significant Accounting Policies (Policies)

v2.4.0.8
Significant Accounting Policies (Policies)
6 Months Ended
Oct. 31, 2015
Accounting Policies [Abstract]  
Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

The Company’s financial statements are based on a number of significant estimates, including oil and natural gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and natural gas properties, and timing and costs associated with its asset retirement obligations, as well as those related to the fair value of stock options, stock warrants and stock issued for services. While we believe that our estimates and assumptions used in preparation of the financial statements are appropriate, actual results could differ from those estimates.

Receivables

Pursuant to FASB ASC paragraph 310-10-35-47 trade receivables that management has the intent and ability to hold for the foreseeable future shall be reported in the balance sheet at outstanding principal adjusted for any charge-offs and the allowance for doubtful accounts.. The Company follows FASB ASC paragraphs 310-10-35-7 through 310-10-35-10 to estimate the allowance for doubtful accounts. Pursuant to FASB ASC paragraph 310-10-35-9, losses from uncollectible receivables shall be accrued when both of the following conditions are met: (a) Information available before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) indicates that it is probable that an asset has been impaired at the date of the financial statements, and (b) The amount of the loss can be reasonably estimated. These conditions may be considered in relation to individual receivables or in relation to groups of similar types of receivables. If the conditions are met, an accrual shall be made even though the particular receivables that are uncollectible may not be identifiable. The Company reviews individually each trade receivable for collectability and performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and general economic conditions that may affect a client’s ability to pay. Bad debt expense is included in general and administrative expenses, if any.

 

Pursuant to FASB ASC paragraph 310-10-35-41 Credit losses for trade receivables (uncollectible trade receivables), which may be for all or part of a particular trade receivable, shall be deducted from the allowance. The related trade receivable balance shall be charged off in the period in which the trade receivables are deemed uncollectible. Recoveries of trade receivables previously charged off shall be recorded when received. The Company charges off its trade account receivables against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

The allowance for doubtful accounts at October 31, 2015 and April 30, 2015 was $0 and $0, respectively.

Real Estate - Held for Sale

Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

Per Share Amounts

Basic net income (loss) per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. For the three and six months ended October 31, 2014, potentially dilutive securities were not included in the calculation of diluted net loss per share because to do so would be anti-dilutive. For the three and six months ended October 31, 2015, the dilutive effect of stock options and warrants was 0 because all options and warrants outstanding were out of money.

 

The Company had the following common stock equivalents at October 31, 2015 and 2014:

 

As of   October 31, 2015     October 31, 2014  
Stock Options     598,352       534,691  
Stock Purchase Warrants     336,458       203,125  
      934,810       737,816  

 

Income Tax Provision

The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

 

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

 

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary.

 

During the six months ended October 31, 2015, the Company utilized a portion of its NOL carry-forwards to absorb the income created by the real estate segment.

 

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

 

Uncertain Tax Positions

The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the reporting period ended October 31, 2015 or 2014.

Recent Accounting Pronouncements

The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.

Subsequent Events

The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

Significant Accounting Policies (Tables)

v2.4.0.8
Significant Accounting Policies (Tables)
6 Months Ended
Oct. 31, 2015
Accounting Policies [Abstract]  
Schedule of Common Stock Equivalents
As of   October 31, 2015     October 31, 2014  
Stock Options     598,352       534,691  
Stock Purchase Warrants     336,458       203,125  
      934,810       737,816  

Business Acquisition (Tables)

v2.4.0.8
Business Acquisition (Tables)
6 Months Ended
Oct. 31, 2015
Business Combinations [Abstract]  
Schedule of Pro Forma Basis, Results of Operations
   

For the Three

Months Ended

   

For the Six

Months Ended

 
   

October 31,

2014

   

October 31,

2014

 
Revenues   $ 1,184,375     $ 2,217,467  
Net loss   $ (1,681,079 )   $ (3,187,533 )
Net loss per common share - Basic and diluted   $ (0.41 )   $ (0.79 )
Weighted average number of common shares outstanding - Basic and diluted     4,029,839       4,029,839  

Real Estate Held for Sale (Tables)

v2.4.0.8
Real Estate Held for Sale (Tables)
6 Months Ended
Oct. 31, 2015
Notes to Financial Statements  
Real estate held for sale
    October 31, 2015  
Balance at April 30, 2015   $ -  
Additions - 30 condominium units contributed by Fortis     15,544,382  
Cost of sales - 18 condominium units     (9,522,603 )
Balance at October 31, 2015   $ 6,021,779  

Oil and Gas Assets (Tables)

v2.4.0.8
Oil and Gas Assets (Tables)
6 Months Ended
Oct. 31, 2015
Extractive Industries [Abstract]  
Schedule of Oil and Gas Assets
Cost   Oklahoma     Kansas     Missouri     Other    

 

Total

 
Balance April 30, 2015   $ 6,935,000     $ 7,803,020     $ 918,991     $ 100,000     $ 15,757,011  
Additions     7,283       -       -       -       7,283  
Disposals     (279,013 )     -       -       -       (279,013 )
Depreciation, depletion and amortization     (23,042     (58,634 )     -       -       (81,676 )
Balance October 31, 2015   $ 6,640,228     $ 7,744,386     $ 918,991     $ 100,000     $ 15,403,605  

Intangible Assets (Tables)

v2.4.0.8
Intangible Assets (Tables)
6 Months Ended
Oct. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets
 

Estimated

useful life

 

As of

October 31,

2015

   

As of

April 30,

2015

 
Patent rights 15 years   $ 2,223,686     $ 2,223,686  
Less: accumulated amortization       (80,519 )     (20,293 )
Intangible assets, net     $ 2,143,167     $ 2,203,393  

Asset Retirement Obligations (Tables)

v2.4.0.8
Asset Retirement Obligations (Tables)
6 Months Ended
Oct. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Changes to Asset Retirement Obligation
   

October 31,

2015

   

April 30,

2015

 
Balance, beginning of period   $ 918,430     $ 818,010  
Additions     -       52,514  
Accretion     20,327       47,906  
Total asset retirement obligations     938,757       918,430  
Less: current portion of asset retirement obligations     (541,959 )     (541,959 )
Long-term portion of asset retirement obligations   $ 396,798     $ 376,471  
Schedule of Expected Timing of Asset Retirement Obligations
Year Ending April 30,      
2016 (remainder of year)     541,959  
2017     212,000  
2018     -  
2019     -  
2020     -  
Thereafter     392,166  
      1,146,125  
Effect of discount     (207,368 )
Total   $ 938,757  

Stock Options (Tables)

v2.4.0.8
Stock Options (Tables)
6 Months Ended
Oct. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Changes in Stock Options
    Options    

Weighted Average

Exercise Prices

 
             
Outstanding April 30, 2015     540,941     $ 12.00  
Exercisable – April 30, 2015     158,241     $    
Granted     453,039     $ 2.00  
Exercised     -     $ -  
Forfeited/Cancelled     (395,629   $ 11.71  
Outstanding – October 31, 2015     598,352     $ 4.39  
Exercisable – October 31, 2015     439,951     $   5.21  
                 
Outstanding – Aggregate Intrinsic Value           $ -  
Exercisable – Aggregate Intrinsic Value           $ -  
Summary of Options Outstanding and Exercisable
      Options Outstanding   Options Exercisable  
Exercise Price   Options  

Weighted Avg.

Life Remaining

 

Weighted Avg.

Exercise Price

  Options  

Weighted Avg.

Exercise Price

 
$ 44.00   2,326   0.01 years   $ 44.00   2,326   $ 44.00  
$ 12.00   132,987   8.18 years   12.00   130,811   $ 12.00  
$ 6.00   10,000   9.25 years   $ 6.00   10,000   $ 6.00  
$ 2.00   453,039   10.0 years   $ 2.00   296,814   $ 2.00  
      598,352              439,951        
Aggregate Intrinsic Value           $ -       $ -  
Summary of Warrants Outstanding and Exercisable
   

Number of

 Warrants

   

Weighted

Average

Exercise Price

   

Weighted

Average Life

Remaining

 
Outstanding and exercisable – April 30, 2015     336,458     36.00       2.29  
Forfeited     -       -       -  
Granted     -       -       -  
Outstanding and exercisable – October 31, 2015     336,458      $ 36.00       2.04  

Non-controlling interest (Tables)

v2.4.0.8
Non-controlling interest (Tables)
6 Months Ended
Oct. 31, 2015
Noncontrolling Interest [Abstract]  
Non-controlling interest
    Bandolier     Fortis     Total  
Non–controlling interest at April 30, 2015   $ 3,644,776     $ -     $ 3,644,776  
Contribution of real estate by non-controlling interest holders     -       9,403,368       9,403,368  
Non–controlling interest share of income (losses)     (154,987 )     3,197,117       3,042,130  
Non–controlling interest at October 31, 2015   $ 3,489,789     $ 12,600,485     $ 16,090,274  

Segment Information (Tables)

v2.4.0.8
Segment Information (Tables)
6 Months Ended
Oct. 31, 2015
Segment Reporting [Abstract]  
Schedule of Segment Information
    Oil and Gas     Real Estate     Total  
Three months ended October 31, 2015                        
Revenue   $     $ 18,347,111     $ 18,347,111  
Cost of revenue           (10,486,373 )     (10,486,373 )
Gross margin           7,860,738       7,860,738  
Operating expenses     (1,572,311 )     -       (1,572,311 )
Operating profit/(loss )     (1,572,311 )     7,860,738       6,288,427  
                         
Three months ended October 31, 2014                        
Revenue   $ 757,485     $     $ 757,485  
Cost of revenue                  
Gross margin     757,485             757,485  
Operating expenses     (1,860,510 )           (1,860,510 )
Operating profit/(loss)     (1,103,025 )           (1,103,025 )
                         
Six months ended October 31, 2015                        
Revenue   $ 62,841     $ 18,347,111     $ 18,409,952  
Cost of revenue           (10,486,373 )     (10,486,373 )
Gross margin     62,841       7,860,738       7,860,738  
Operating expenses     (2,404,325 )     -       (2,404,325 )
Operating profit/(loss )     (2,341,484 )     7,860,738       5,519,254  
                         
Six months ended October 31, 2014                        
Revenue   $ 1,423,761     $     $ 1,423,761  
Cost of revenue                  
Gross margin     1,423,761             1,423,761  
Operating expenses     (4,240,362 )           (4,240,362  
Operating profit/(loss)     (2,816,601 )           (2,816,601 )
                         
October 31, 2015                        
Cash and cash equivalents (excludes $125,000 of restricted cash)   $ 526,135     $     $ 526,135  
Investment in real estate           6,021,779       6,021,779  
Oil and gas assets, net     15,403,606             15,403,606  
Intangible assets, net     2,143,167             2,143,167  
                         
April 30, 2015                        
Cash and cash equivalents (excludes $125,000 of restricted cash)   $ 1,010,543     $     $ 1,010,543  
Investment in real estate                  
Oil and gas assets, net     15,757,011             15,757,011  
Intangible assets, net     2,203,393             2,203,393  

Organization (Details Narrative)

v2.4.0.8
Organization (Details Narrative) (USD $)
1 Months Ended 6 Months Ended
Dec. 14, 2015
Oct. 31, 2015
Apr. 30, 2015
Oct. 31, 2015
Bandolier [Member]
Oct. 31, 2015
MegaWest [Member]
Oct. 31, 2015
Fortis [Member]
Equity ownership       50.00% 58.51% 41.49%
Equity transfer value       $ 7,119,798 $ 15,554,382  
Equity shares         58,510 41,490
Due from related party   $ 18,271,716        $ 17,383,341
Reverse stock split one (1) for two hundred (200) reverse split          

Basis of Preparation (Details Narrative)

v2.4.0.8
Basis of Preparation (Details Narrative)
Oct. 31, 2015
MegaWest [Member]
 
Equity ownership 58.51%
Bandolier [Member]
 
Equity ownership 50.00%

Significant Accounting Policies - Schedule of Common Stock Equivalents (Details)

v2.4.0.8
Significant Accounting Policies - Schedule of Common Stock Equivalents (Details)
6 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Common stock equivalent shares 934,810 737,816
Stock Options [Member]
   
Common stock equivalent shares 598,352 534,691
Stock Purchase Warrant [Member]
   
Common stock equivalent shares 336,458 203,125

Significant Accounting Policies (Details Narrative)

v2.4.0.8
Significant Accounting Policies (Details Narrative) (USD $)
Oct. 31, 2015
Oct. 31, 2014
Accounting Policies [Abstract]    
Allowance for doubtful accounts $ 0 $ 0

Going Concern and Management’s Plan (Details Narrative)

v2.4.0.8
Going Concern and Management’s Plan (Details Narrative) (USD $)
1 Months Ended
Dec. 14, 2015
Oct. 31, 2015
Apr. 30, 2015
Oct. 31, 2014
Apr. 30, 2014
Accumulated deficit   $ (14,167,061) $ (16,650,486)    
Working capital   23,400,000      
Cash and cash equivalents   526,135 1,010,543 2,749,928 8,352,949
Proceeds from debt financing 750,000        
Accounts receivable - related party   18,271,716       
Real estate - held for sale   $ 6,021,779       
MegaWest [Member]
         
Equity ownership   58.51%      

Business Acquisition (Details)

v2.4.0.8
Business Acquisition (Details) (USD $)
3 Months Ended 6 Months Ended
Oct. 31, 2014
Oct. 31, 2014
Business Combinations [Abstract]    
Revenues $ 1,184,375 $ 2,217,467
Net loss $ (1,681,079) $ (3,187,533)
Loss per share of common share - Basic and diluted $ (0.41) $ (0.79)
Weighted average number of common shares Outstanding - Basic and diluted 4,029,839 4,029,839

Business Acquisition (Details Narrative)

v2.4.0.8
Business Acquisition (Details Narrative) (USD $)
1 Months Ended
May 30, 2014
Bandolier Energy LLC. [Member]
 
Equity ownership 50.00%
Capital contribution $ 5,000,000
Equity exchange price per share $ 0.16
Option contingently issuable 275,000
Persona West [Member]
 
Equity ownership 44.00%
Consideration paid 4,400,000
Ranger Station [Member]
 
Equity ownership 6.00%
Consideration paid 600,000
Spyglass Energy Group, LLC [Member]
 
Consideration paid 8,712,893
Clawback, amount $ 407,161

Accounts Receivable - Related Party (Details Narrative)

v2.4.0.8
Accounts Receivable - Related Party (Details Narrative) (USD $)
6 Months Ended
Oct. 31, 2015
Apr. 30, 2015
Oct. 31, 2015
Bandolier [Member]
Oct. 31, 2015
MegaWest [Member]
Oct. 31, 2015
Fortis [Member]
Oct. 31, 2015
Deposits [Member]
Equity ownership     50.00% 58.51% 41.49%  
Equity transfer value     $ 7,119,798 $ 15,554,382    
Equity shares       58,510 41,490  
Due from related party $ 18,271,716        $ 17,383,341 $ 888,375

Real Estate Held for Sale - Real estate held for sale (Details)

v2.4.0.8
Real Estate Held for Sale - Real estate held for sale (Details) (USD $)
6 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Notes to Financial Statements    
Balance at beginning of period     
Additions 15,544,382  
Cost of sales 9,522,603   
Balance at end of period $ 6,021,779  

Real Estate Held for Sale - Real estate held for sale (Details Narrative)

v2.4.0.8
Real Estate Held for Sale - Real estate held for sale (Details Narrative) (USD $)
6 Months Ended
Oct. 31, 2015
Oct. 31, 2014
Notes to Financial Statements    
Real estate sales $ (9,522,603)   
Gross proceeds from real estate sales 18,347,111  
Closing costs $ 963,770  

Oil and Gas Assets (Details)

v2.4.0.8
Oil and Gas Assets (Details) (USD $)
6 Months Ended
Oct. 31, 2015
Oil and gas assets, net $ 15,757,011
Additions 7,279
Disposals (279,013)
Depreciation, depletion and amortization (81,676)
Oil and gas assets, net 15,403,606
Oklahoma Bandolier [Member]
 
Oil and gas assets, net 6,935,000
Additions 7,279
Disposals (279,013)
Depreciation, depletion and amortization (23,042)
Oil and gas assets, net 6,640,228
Kansas [Member]
 
Oil and gas assets, net 7,803,020
Additions   
Disposals   
Depreciation, depletion and amortization (58,634)
Oil and gas assets, net 7,744,386
Missouri [Member]
 
Oil and gas assets, net 918,991
Additions   
Disposals   
Depreciation, depletion and amortization   
Oil and gas assets, net 918,991
Other [Member]
 
Oil and gas assets, net 100,000
Additions   
Disposals   
Oil and gas assets, net $ 100,000

Oil and Gas Assets (Details Narrative)

v2.4.0.8
Oil and Gas Assets (Details Narrative) (USD $)
6 Months Ended 12 Months Ended
Oct. 31, 2015
Apr. 30, 2015
Disposals $ 279,013  
Persona West [Member]
   
Concession obligation 22,100,000  
Completion expense liability 300,000  
Capital expenditure liability next twelve months 1,800,000  
Capital expenditure liability in two years 2,700,000  
Capital expenditure liability in three years 3,600,000  
Capital expenditure liability, total 8,100,000  
OKLAHOMA
   
Disposals 279,013  
Impairment charge   $ 1,246,975

Intangible Assets (Details)

v2.4.0.8
Intangible Assets (Details) (USD $)
6 Months Ended
Oct. 31, 2015
Apr. 30, 2015
Oct. 31, 2015
Patents [Member]
Estimated useful life     15 years
Patent rights $ 2,223,686 $ 2,223,686  
Less: Accumulated amortization (80,519) (20,293)  
Intangible assets, net $ 2,143,167 $ 2,203,393  

Intangible Assets (Details 1)

v2.4.0.8
Intangible Assets (Details 1) (USD $)
Oct. 31, 2015
Apr. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]    
2016 $ 59,489  
2017 119,469  
2018 119,469  
2019 119,469  
2020 119,469  
Thereafter 1,605,802  
Intangible assets, net $ 2,143,167 $ 2,203,393