10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2015

o           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ________ to ___________.

Commission file number: 0-9483

SPARTA COMMERCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Nevada	30-0298178
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

370 Lexington Ave., Suite 1806, New York, NY 10017

(Address of principal executive offices)  (Zip Code)

(212) 239-2666

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x   Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 504 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to file such files).   x Yes   o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   o Yes  x No

As of December 11, 2015, we had 186,259,731 shares of common stock issued and outstanding.

SPARTA COMMERCIAL SERVICES, INC.

FORM 10-Q

FOR THE QUARTER ENDED OCTOBER 31, 2015

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets  as of October 31, 2015 and April 30, 2015 (unaudited)	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended October 31, 2015 and 2014 (unaudited)	4
	Condensed Consolidated Statement of Changes in Deficit for the Six Months ended October 31, 2015 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended October 31, 2015 and 2014 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosure	33
Item 5.	Other Information	33
Item 6.	Exhibits	33
Signatures		34

PART I. FINANCIAL INFORMATION

ITEM 1.                FINANCIAL STATEMENTS

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31, 2015			April 30, 2015
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	9,762		$	14,034
Accounts receivable		52,341			10
Other current assets		2,114			5,706
Total Current Assets		64,217			19,750
Property and equipment, net of accumulated depreciation and amortization of $205,025 and $203,215, respectively (NOTE B)		8,237			10,047
Goodwill		10,000			10,000
Other assets		9,628			9,628
Deposits		79,776			79,776
Total Long Term Assets		107,641			109,451
Total assets from continuing operations		171,858			129,201
ASSETS FROM DISCONTINUED OPERATIONS (NOTE C)		2,454			13,955
Total assets	$	174,312		$	143,156
LIABILITIES AND DEFICIT
Liabilities:
Current Liabilities
Accounts payable and accrued expenses	$	1,600,084		$	1,382,598
Current portion notes payable net of beneficial conversion feature of $736,596 and $762,426, respectively (NOTE D)		2,032,923			1,374,786
Derivative liabilities		1,678,052			1,605,535
Total Current Liabilities		5,311,059			4,362,919
Long term portion notes payable net of beneficial conversion features of $15,262 and $0, respectively (NOTE D)		1,043,606			1,263,369
Loans payable-related parties (NOTE E)		395,853			385,853
Total Long Term Liabilities		1,439,459			1,649,222
Total liabilities from continuing operations		6,750,518			6,012,141
LIABILITIES FROM DISCONTINUED OPERATIONS (NOTE C)		41,072			70,117
Total liabilities		6,791,590			6,082,258
Deficit:
Preferred stock, $0.001 par value; 10,000,000 shares authorized of which 35,850 shares have been designated as Series A convertible preferred stock, with a stated value of $100 per share, 125 and 125 shares issued and outstanding, respectively		12,500			12,500
Preferred stock B, 1,000 shares have been designated as Series B redeemable preferred stock, $0.001 par value, with a liquidation and redemption value of $10,000 per share, 0 and 0 shares issued and outstanding, respectively		-			-
Preferred stock C, 200,000 shares have been designated as Series C redeemable, convertible preferred, $0.001 par value, with a liquidation and redemption value of $10 per share, 0 and 0 shares issued and outstanding, respectively		-			-
Common stock, $0.001 par value; 750,000,000 shares authorized, 134,865,129 and 43,238,320 shares issued and outstanding, respectively		134,865			43,238
Common stock to be issued 4,699,662 and 2,356,598, respectively		4,700			2,356
Additional paid-in-capital		44,390,665			42,528,909
Accumulated deficit		(51,879,110	)		(49,178,453	)
Deficit attributable to Sparta Commercial Services, Inc.		(7,336,381	)		(6,591,450	)
Non-controlling interest		719,103			652,348
Total Deficit		(6,617,278	)		(5,939,102	)
Total Liabilities and Deficit	$	174,312		$	143,156

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 

3

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2015 AND 2014

(UNAUDITED)

	Three Months Ended						Six Months Ended
	October 31						October 31
	2015			2014			2015			2014
Revenue
Information technology	$	167,348		$	138,074		$	334,571		$	270,881
Cost of goods sold		37,656			48,470			81,802			86,047
Gross profit		129,693			89,604			252,769			184,834
Operating expenses:
General and administrative		720,202			685,680			1,388,223			1,217,394
Depreciation and amortization		753			897			1,810			1,793
Total operating expenses		720,954			686,578			1,390,033			1,219,188
Loss from operations		(591,262	)		(596,974	)		(1,137,264	)		(1,034,353	)
Other (income) expense:
Other income		(10,791	)		(5,011	)		(17,944	)		(15,779	)
Financing cost		200,294			159,809			682,676			246,651
Amortization of debt discount		508,709			189,324			931,175			314,065
(Gain) loss in changes in fair value of derivative liability		(155,560	)		203,825			(80,095	)		(8,704	)
Total other expense		542,651			547,948			1,515,811			536,233
Loss from continuing operations	$	(1,133,913	)	$	(1,144,922	)	$	(2,653,075	)	$	(1,570,586	)
Loss from discontinued operations		(17,898	)		(16,653	)		(30,446	)		(111,017	)
Net Loss		(1,151,811	)		(1,161,575	)		(2,683,520	)		(1,681,603	)
Net (gain) loss attributed to Non-controlling interest		(12,491	)		7,460			(16,754	)		19,251
Preferred dividend		(382	)		(191	)		(382	)		(382	)
Net loss attributed to Sparta Commercial Services, Inc. common shareholders	$	(1,164,684	)	$	(1,154,306	)	$	(2,700,657	)	$	(1,662,735	)
Basic and diluted loss per share	$	(0.02	)	$	(0.05	)	$	(0.04	)	$	(0.07	)
Basic and diluted loss per share attributed to Sparta Commercial Services, Inc. common shareholders	$	(0.02	)	$	(0.05	)	$	(0.04	)	$	(0.07	)
Weighted average shares outstanding		67,509,145			21,906,215			75,749,160			22,275,630

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN DEFICIT

FOR THE SIX MONTHS ENDED OCTOBER 31, 2015

(UNAUDITED)

	Series A				Series B				Series C										Common Stock				Additional					Non-
	Preferred Stock				Preferred Stock				Preferred Stock				Common Stock						to be issued				Paid in		Accumulated			controlling
	Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount			Shares		Amount		Capital		Deficit			Interest		Total
Balance April 30, 2015		125	$	12,500		-	$	-		-	$	-		43,238,320		$	43,238			2,356,598	$	2,356	$	42,528,909	$	(49,178,453	)	$	652,348	$	(5,939,102	)
Correcting														(30,060	)		(30	)
Rounding																	1							332							333
Derivative liability reclassification																								1,029,765							1,029,765
Sale of subsidiary preferred stock																													50,000		50,000
Sale of common stock														760,456			760							19,240							20,000
Shares issued for financing cost														3,309,433			3,309							45,531							48,840
Shares issued for conversion of notes, interest and accounts payable														77,485,924			77,486			2,343,064		2,344		656,399							736,197
Stock compensation														10,066,000			10,066							110,461							120,527
Employee stock & options expense														35,056			35							29							64
Preferred dividend																										(382	)				(382	)
Net loss																										(2,700,275	)		16,754		(2,683,521	)
Balance October 31, 2015		125	$	12,500		-	$	-		-	$	-		134,865,129		$	134,865			4,699,662	$	4,700	$	44,390,665	$	(51,879,110	)	$	719,103	$	(6,617,278	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

SPARTA COMMERCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED OCTOBER 31, 2015 AND 2014

(UNAUDITED)

	Six Months Ended
	October 31
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(2,683,520	)	$	(1,681,603	)
Adjustments to reconcile net loss to net cash used in  operating activities:
Corrections		331			-
Depreciation and amortization		1,810			1,793
(Gain) loss due to change in fair value of derivative liabilities		(80,095)			(8,704)
Amortization of debt discount		931,175			314,065
Equity based finance cost		48,840			187,923
Non cash financing cost		261,770			-
Equity based compensation		120,591			204,386
Changes in operating assets and liabilities:
Accounts receivable		(52,331	)		(98,442	)
Other assets		3,592			(66,505	)
Accounts payable and accrued expenses		312,754			38,375
Net cash used in operating activities		(1,135,084	)		(1,108,713	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		-			-
Net cash (used in) investing activities		-			-
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from sale of common stock		20,000			497,478
Net proceeds from sale of subsidiary preferred stock		50,000			-
Net proceeds from convertible notes		1,659,518			485,000
Net payments on convertible notes		(671,163	)		(97,500	)
Net proceeds from subsidiary notes		80,000			155,000
Net proceeds from related party notes		10,000			-
Net cash provided by financing activities		1,148,355			1,039,978
Cash flows from discontinued operations:
Depreciation of assets of discontinued operations		2,474			10,902
Cash used in operating activities of discontinued operations		(20,017	)		-
Cash used in financing activities of discontinued operations		-			(3,065	)
Net Cash flow from discontinued operation		(17,543	)		7,837
Net Decrease in cash	$	(4,272	)	$	(60,898	)
Cash and cash equivalents, beginning of period	$	14,034		$	70,456
Cash and cash equivalents , end of period	$	9,762		$	9,558
Cash paid for:
Interest	$	14,746		$	27,359
Income taxes	$	-		$	-

Non-cash investing and financing activities: Note I.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE A – SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of October 31, 2015 and for the three and six month periods ended October 31, 2015 and 2014 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended April 30, 2015 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of April 30, 2015 contained herein has been derived from the audited consolidated financial statements as of April 30, 2015, but do not include all disclosures required by the U.S. GAAP.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Specialty Reports, Inc. All significant inter-company transactions and balances have been eliminated in consolidation.

Business

Sparta Commercial Services, Inc. ("Sparta" "we," "us," or the "Company") is a Nevada corporation. We are a technology company that develop and market mobile app tools, products and services. We also provide vehicle history reports and a municipal leasing program.

Our roots are in the Powersports industry and our original focus was providing consumer and municipal financing to the powersports, recreational vehicle, and automobile industries (see Discontinued Operations). Presently, through our subsidiary, Specialty Reports, Inc. (SRI), we offer Mobile App development, sales, marketing and support, and Vehicle History Reports.

Our mobile application (mobile app) offerings have broadened our base beyond vehicle dealers to a wide range of businesses including, but not limited to, restaurants, hotels, and grocery stores. We also private label our mobile app framework to enable other businesses to offer custom apps to their customers.

Our vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com); RVchex (Recreational Vehicle History Reports at www.rvchex.com); CarVINreport (Automobile at www.carvinreport.com) and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com). Our Vehicle History Reports are designed for consumers, retail dealers, auction houses, insurance companies and banks/finance companies.

Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease.

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

7

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of operations for all periods presented.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized upon delivery. Revenues from History Reports are recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. There were no deferred revenues at October 31, 2015 and April 30, 2015.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value. 

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Inventories

Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value.

8

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

Website Development Costs

The Company recognizes website development costs in accordance with Accounting Standards Codification (“ASC”) 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Uncertainty in Income Taxes (“ASC 740-10”)." Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards. 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 removed 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.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions. As a result of implementing ASC 740-10, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015 or the three months or six months ended October 31, 2015.

Fair Value Measurements

The Company adopted ASC 820, “Fair Value Measurements (“ASC 820”).”  ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available.

9

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Comprehensive Income

In accordance with ASC 220-10, “Reporting Comprehensive Income,” (“ASC 220-10”) establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. At October 31, 2015 and April 30, 2015, the Company has no items of other comprehensive income.

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information,” “ASC 208-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2014, the Company has discontinued segment reporting.

Stock Based Compensation

The Company adopted ASC 718-10, “Compensation-Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Concentrations of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

10

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the six months ended October 31, 2015 and 2014, the Company incurred advertising costs of $1,301 and $3,819, respectively. During the three months ended October 31, 2015 and 2014, the Company incurred advertising expenses of $251 and zero, respectively.

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.02 and $0.05 for the three months ended October 31, 2015 and 2014, respectively, and $0.04 and $0.07 for the six months ended October 31, 2015 and 2014, respectively. At October 31, 2015 and 2014, 304,617,676 and 5,586,766 potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Liquidity

As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred a net loss of $2,683,520 and $1,681,603 during the six months ended October 31, 2015 and October 31, 2014, respectively. The Company’s current liabilities exceed its current assets by $5,246,843 as of October 31, 2015.

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

Recent Accounting Pronouncements

There were various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

11

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE B – PROPERTY AND EQUIPMENT

Major classes of property and equipment at October 31, 2015 and April 30, 2015 consist of the followings:

	October 31, 2015			April 30, 2015
Computer equipment, software and furniture	$	213,263		$	213,262
Less: accumulated depreciation		(205,025	)		(203,215	)
Net property and equipment	$	8,238		$	10,047

Depreciation expense of continuing operations for property and equipment was $1,810 and $1,793, respectively for the six months ended October 31, 2015 and 2014 and $753 and $897, respectively for the three months ended October 31, 2015 and 2014.

NOTE C – DISCONTINUED OPERATIONS

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. 

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Six Months Ended
	October 31,			October 31,
	2015			2014
Revenues	$	28,256		$	23,163
Net (loss)	$	(30,446	)	$	(111,017	)

As the Company sold all of its portfolio of performing RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the six months ended October 31, 3015 or the year ending April 30, 2015.

ASSETS INCLUDED IN DISCONTINUED OPERATIONS

MOTORCYCLES AND OTHER VEHICLES UNDER OPERATING LEASES

Motorcycles and other vehicles under operating leases at October 31, 2015 and April 30, 2015:

	October 31,			April 30,
	2015			2015
Motorcycles and other vehicles	$	13,261		$	22,086
Less: accumulated depreciation		(10,793	)		(13,456	)
Motorcycles and other vehicles, net of accumulated depreciation		2,468			8,630
Less: estimated reserve for residual values		(1,247	)		(2,436	)
Motorcycles and other vehicles under operating leases, net	$	1,221		$	6,194

At April 30, 2015, motorcycles and other vehicles are being depreciated to their estimated residual values over the lives of their lease contracts. Depreciation expense for vehicles for the six months ended October 31, 2015 was $2,474 and for the year ended April 30, 2015, it was $28,736. All of the assets are pledged as collateral for the note described in SECURED NOTES PAYABLE in this Note C.  These remaining leases are in a run-off mode. 

12

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

INVENTORY

Inventory is comprised of repossessed vehicles and vehicles which have been returned at the end of their lease. Inventory is carried at the lower of depreciated cost or market, applied on a specific identification basis. At October 31, 2015 and at April 30, 2015, the Company had no repossessed vehicles which are held for resale.

RETAIL (RISC) LOAN RECEIVABLES

All of the Company’s RISC performing loan receivables were sold in August 2013.  As of October 31, 2015 and April 30, 2015, the Company had: RISC loans net of reserves of $1,510 and $8,744, respectively.

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the quarter or six months ending October 31, 2015 or the year ending April 30, 2015.

LIABILITIES INCLUDED IN DISCONTINUED OPERATIONS

SECURED NOTES PAYABLE

	October 31,		April 30,
	2015		2015
Secured, subordinated  individual lender (a)	$	28,992	$	58,037
Secured, subordinated individual lender (b)		12,080		12,080
Total	$	41,072	$	70,117

(a)  The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2015, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2015. The Company is in negotiations with the noteholder to extend the term of this note.  

At October 31, 2015, the notes payable mature as follows:

Year ended October 31,	Amount
2016	$	41,072
Total Due	$	41,072

13

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE D – NOTES PAYABLE

Notes Payable	October 31, 2015			April 30, 2015
Notes convertible at holder’s option (a)	$	2,411,387		$	2,707,080
Notes convertible at Company’s option (b)		171,000			15,000
Notes with interest only convertible at Company’s option (c)		260,000			285,000
Non-convertible notes payable (d)		986,000			393,000
Subtotal		3,828,387			3,400,580
Less, Debt discount		(751,858	)		(762,426	)
Total	$	3,076,528		$	2,638,154

(a)  Notes convertible at holder’s option consists of:

     (i)                            a $815,868, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013;  

 (ii)                           (a) a $40,000 note due August 21, 2016. The Company has recorded a beneficial conversion discount of $28,996 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                          seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 0.66667%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 0.66667%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;  

14

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

 (vi)                          (a) $32,319 outstanding on a $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (c) a $33,000 5% convertible note due August 25, 2017. This is the second tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $9,029 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 44,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (vii)                         (a) a $27,500, 5% convertible note due March 23, 2015, and (b) a $27,500, 5% convertible note due June 15, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $37,729 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (c) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. Subsequent to October 31, 2015 this noteholder forgave the balancer of this note. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $57,200 8% convertible note due January 26, 2016, (b) a $58,000 8% convertible note due May 6, 2016, and (c) a $30,700 8% convertible note due July 8, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 9,821,428 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

15

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

 (x)                            (a) $17,617 10% note due October 12, 2016. The Company has recorded a beneficial conversion discount of $17,676 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xi)                           (a) $45,000 outstanding under a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (b) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

 (xiii)                         (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (d) a $22,500, 8% convertible note due July 9, 2016. The Company has recorded a beneficial conversion discount of $15,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”);. The Company has reserved up to 8,900,000 shares of its common stock for conversion pursuant to the terms of the notes. 

16

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

 (xiv)                        (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) a $50,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (e) $60,007 outstanding on a $100,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $100,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 21,784,111 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xv)                         (a) a $33,000, 8% note due November 25, 2015; (b) a $38,000, 8% note due January 17, 2016; (c) a $33,000, 8% note due February 16, 2016; and (d) a $28,000, 8% note due April 20, 2016. The Company has recorded a beneficial conversion discount of $102,828 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 10,900,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (xvi)                        $21,500 outstanding under a $30,000, 8% note due April 14, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

 (xvii)                       (a) a $25,000, 8% note due April 22, 2016. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”), and (b) a $37,000, 8% note due October 28, 2016. The Company has recorded a beneficial conversion discount of $37,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 34,718,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

 (xviii)                      (a) $6,100 outstanding under a $25,000, 10% note due July 19, 2016 and (b) a $31,900 note due July 28, 2016. The Company has recorded a beneficial conversion discount of $55,549 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,079,404 shares of its common stock for conversion pursuant to the terms of the notes.

17

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

 (xix)                         (a) $17,000 outstanding under a $50,000, 8% note due August 21, 2016. The company has recorded a $43,855 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; (b) a $41,000, 8% note due August 21, 2016. The company has recorded a $35,961 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (c) a $58,625, 10% note due October 12, 2016. The company has recorded a $58,625 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 81,000,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (xx)                          (a) $18,125 outstanding under a $25,000, 12% note due October 13, 2016. The company has recorded a $25,000 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $27,500, 12% note due October 13, 2016. The company has recorded a $27,500 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 11,322,600 shares of its common stock for conversion pursuant to the terms of the notes.

 (xxi)                         (a) a $34,267.02, 8% note due April 30, 2016. The company has recorded a $28,185 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $55,109.48, 8% note due April 30, 2016. The company has recorded a $45,238 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 120,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

(b) Notes convertible at the Company’s option consist of:

 (i)                            (a) a $15,000, note due April 22, 2016, (b) a $25,000, note due June 28, 2016, (c) a $10,000 note due June 25, 2016, (d) a $5,000 note due July 20, 2016, (e) a $6,000 note due July 22, 2016, (f) a $15,000 note due July 30, 2016 and (g) a $15,000 note due September 29, 2016.  All of the notes bear 10% interest and are convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company agreed to issue the Noteholders a total of 190,000 shares of its restricted common stock as an inducement for the loan. If the notes are not paid in full on or before maturity, the Company shall issue the noteholders 1,000 shares of its restricted common stock for each month, or portion thereof, that the notes remains unpaid.  

 (ii)                           $80,000 in one year 10% notes maturing in July 2016, issued by our subsidiary, Specialty Reports, Inc., convertible at the option of the issuer into the issuer’s common stock at the conversion price of $3.00 per share.

18

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                            a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share; 

 (iii)                          a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period; and

 (iv)                          a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan. The Company is in discussions with this lender to extend the due date of the note. 

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015. The Company is in discussions with this lender to extend the due date of the note;

 (iii)                          a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (iv)                          a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016; a $50,000 , 10% note due April 29, 2016; a $50,000, 10% note due May 4, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $50,000, 10% note due May 17, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $25,000, 10% note due May 28, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan,  a $50,000, 10% note due June 23, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $22,500, 10% note due July 7, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, a $20,000, 10% note due July 13, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, and a $25,000, 10% note due July 30, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan, and $93,000 in advances to the Company in August 2015 the terms of which are under negotiation.

 (v)                           a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan. The Company is in discussions with this lender to extend the due date of the note;

 (vi)                          a $33,500, 10% note due April 30, 2016. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (vii)                         a $32,000, 10% note due May 8, 2016. The Company agreed to issue 64,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid, a $15,000, 10% note due February 12, 2016. The Company agreed to issue 75,000 shares of restricted common stock as an inducement for the loan and pay the holder 10,000 shares per month for each month or fraction thereof the note remains unpaid, and a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

19

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

 (viii)                        a $20,000, 10% note due May 8, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (ix)                          a $25,000, 10% note due August 21, 2016.The Company agreed to issue 62,500 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

     (x)                           a $10,000, 10% note due October 31, 2015.The Company agreed to issue 500,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to Five Hundred ($500) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default, and a $25,000, 10% note due October 21, 2016.The Company agreed to issue 1,000,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

 (xi)                          a $50,000, 10% note due October 19, 2016. The Company agreed to issue 300,000 shares of   restricted common stock as an inducement for the loan and pay the holder 200,000 shares of common stock if the loan is not paid when due. The Company is in discussions with this lender to extend the due date of the note a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

 (xii)                         a $10,000, 20% note due October 5, 2016. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date and amend the terms of this note; and

 (xiii)                        a $10,000, 10% note due November 28, 2015. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 500,000 shares per month for each month or fraction thereof the note remains unpaid.

20

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

Amortization of Beneficial Conversion Feature for the six months ended October 31, 2015 and 2014 was $931,175 and $314,065, respectively and for the fiscal year ended April 30, 2015 was $1,013,934.

The Company's derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

The change in fair value of the derivative liabilities of warrants outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.01	%	to	1.29	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.01	year	to	4.10	years

The change in fair value of the derivative liabilities of convertible notes outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.06	%	to	0.65	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.20	year	to	1.8	years

The value of the derivative liability was re-assessed as of October 31, 2015 resulting in a gain to the consolidated statements of operations of $80,095 and $8,704 for the six months ended October31, 2015 and 2014, respectively.

	October 31, 2015
Opening balance, April 30, 2015	$	1,605,535
Derivative liability reclassified to additional paid in capital		(1,029,765	)
Derivative financial liability arising on the issue of convertible notes		1,022,187
Fair value adjustments		80,095
Closing balance	$	1,678,052

NOTE E – LOANS PAYABLE TO RELATED PARTIES

As of October 31, 2015 and April 30, 2015, aggregated loans payable, without demand and with no interest, to officers and directors were $395,853 and $385,853, respectively. 

21

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE F – EQUITY TRANSACTIONS

On May 18, 2014, the Company’s Board of Directors declared effective a one for seventy-five reverse common stock split. All per share amounts in these unaudited condensed consolidated financial statements and accompanying notes have been retroactively adjusted to the earliest period presented for the effect of this reverse stock split.

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share, 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value, and 200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value, and 750,000,000 shares of common stock with $0.001 par value per share.  The Company had 125 shares of Series A preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015.  The Company had 0 and 0 shares of Series B preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015 respectively.  The Company had nil shares of Series C preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015.  The Company had 134,865,129 and 43,238,320 shares of common stock issued and outstanding as of October 31, 2015 and April 30, 2015, respectively.

Preferred Stock, Series A

During the six months ended October 31, 2015, there were no transactions in Series A Preferred, however, at October 31, 2015, there were $7,944 of accrued dividends payable on the Series A Preferred, compared to the accrual of $7,562 at April 30, 2015.  At the Company’s option, these dividends may be paid in shares of the Company’s Common Stock.

Preferred Stock, Series B

There were no shares of Series B Preferred Stock issued and outstanding at October 31, 2015 and at April 30, 2015.

Preferred Stock Series C

There were no shares of Series C Preferred Stock issued and outstanding at October 31, 2015 and at April 30, 2015.

Common Stock

During the six months ended October 31, 2015, the Company expensed $91,504 for non-cash charges related to stock and option compensation expense. 

During the six months ended October 31, 2015, the Company:

● issued 4,005,396 shares of common stock which had been classified as to be issued at April 30, 2015,

● sold 760,456 shares of restricted common stock to an accredited investor for $20,000,

● issued 73,480,530 shares of common stock upon the conversion of $705,574 principal amount of convertible notes,

●  accrued 4,386,240 shares for the conversion of $30,623 of converted notes and accrued interest,

● issued 3,309,433 shares of common stock valued at $48,840 pursuant to terms of various notes,

● issued 10,066,000 shares of common stock valued at $120,527 pursuant to consulting agreements,

● issued 35,056 shares of common stock to three employees pursuant to vesting provisions of prior stock awards.

NOTE G – NONCONTROLLING INTEREST

For the six months ended October 31, 2015, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2015	$	652,348
Sale of preferred stock		50,000
Non-controlling interest’s share of profits		16,754
Balance at October 31, 2015	$	719,103

22

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE H – FAIR VALUE MEASUREMENTS

The Company follows the guidance established pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of financial liabilities as of October 31, 2015:

			Fair Value Measurement Using
	Fair Value at  October 31,  2015		Level 1		Level 2		Level 3
Derivative liabilities	$	1,678,052		-		-	$	1,678,052

The following is a description of the valuation methodologies used for these items:

Derivative liability — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC Topic 825 “The Fair Value Option for Financial Issuances”.

Changes in Derivative liability during the six months ended October 31, 2015 were:

			New Additions		Decrease
	April 30,		During		in Fair		October 31,
	2015		Period		Value		2015
Derivative liability	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052
Total	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052

NOTE I – NON-CASH FINANCIAL INFORMATION

During the six months ended October 31, 2015, the Company:

· Issued 3,309,433 shares of common stock valued at $48,840 pursuant to the terms of the notes

· Issued 340,000 shares of common stock in settlement of $14,450 in accounts payable

· Issued 73,140,530 shares of common stock upon conversion of $691,124 of interest and notes and accounts payable

· Issued 35,056 shares of common stock to three employees pursuant to vesting schedules of prior stock awards

· Issued 4,005,396 shares of common stock which had been recorded as to be issued at April 30, 2015

23

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

OCTOBER 31, 2015

NOTE J – SUBSEQUENT EVENTS

During November and through December 11, 2015, the Company:

· Issued 37,633,885 shares of common stock upon the conversion of $122,762 of notes and accrued interest thereon.  

· Issued 6,051,980 shares valued at $52,000 pursuant to the terms of notes.

· Issued 2,543,737 shares listed as to be issued at October 31, 2015.

· Issued 5,165,000 shares to a consultant valued at $19,369 pursuant to the terms of his consulting agreement.

·   Borrowed a total of $69,000 from four accredited investors in one year, 10% notes and agreed to issue up to a total of 2,000,000 shares of restricted common stock as inducement for the loans.

NOTE K – GOING CONCERN MATTERS

The accompanying unaudited condensed 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 shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred recurring losses and generated negative cash flows from operating activities since inception.  As of October 31, 2015, the Company had an accumulated deficit of $51,879,110 and working capital deficit (total current liabilities exceeded total current assets) of $5,246,843.  The Company’s cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses for the next twelve months form the filing date of this report.  These factors among others raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

The Company’s existence is dependent upon management’s ability to develop profitable operations.  Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company’s efforts will be successful.  However, there can be no assurance can be given that management’s actions will result in profitable operations or the resolution of its liquidity problems.  The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional equity financing through discussions with investment bankers and private investors.  There can be no assurance the Company will be successful in its effort to secure additional equity financing.

NOTE L – LEGAL PROCEEDINGS

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

As at October 31, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

The Company is involved in two (2) litigation matters in the Supreme Court of the State of New York wherein the Company has alleged that the respective lenders have charged the Company excessive and improper fees and penalties on its loans. The Company expects a satisfactory resolution by settlement with each lender.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion and our opposition were submitted to the Court in September 2015. On December 21, 2015, the Court issued its decision and order denying the motion of the defendant and stating that unless either party raises other matters before January 15, 2016, the clerk will  enter judgment dismissing the complaint, with costs and disbursements according to law.

24

ITEM 2.                MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The following discussion of our financial condition and results of operations should be read in conjunction with (1) our interim unaudited financial statements and their explanatory notes included as part of this quarterly report, and (2) our annual audited financial statements and explanatory notes for the year ended April 30, 2015 as disclosed in our annual report on Form 10-K for that year as filed with the SEC.

“Forward-Looking” Information

This report on Form 10-Q contains certain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which represent our expectations and beliefs, including, but not limited to statements concerning the Company’s expected growth. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” and similar expressions identify forward-looking statements, which speak only as of the date such statement was made. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors.

RESULTS OF OPERATIONS

Comparison of the Three Months Ended October 31, 2015 to the Three Months Ended October 31, 2014

For the three months ended October 31, 2015 and 2014, we have generated limited sales revenues, have incurred significant expenses, and have sustained significant losses.

Discontinued Operations

As discussed in NOTE C to the consolidated financial statements, in August 2012, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented.

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Quarter Ended
	October 31,			October 31,
	2015			2014
Revenues	$	9,841		$	11,297
Net (loss)	$	(17,898	)	$	(16,653	)

RESULTS OF CONTINUING OPERATIONS

Revenues

Revenues totaled $167,348 during the three months ended October 31, 2015 as compared to $138,074 during the three months ended October 31, 2014. This $29,274 or 21.2% increase was due to increased sales of mobile apps.

Costs and Expenses

General and administrative expenses were $720,202 during the three months ended October 31, 2015, compared to $685,680 during the three months ended October 31, 2014, an increase of $34,521or 5.3% reallocation of the majority of these expenses to continuing operations. Expenses incurred during the current three month period consisted primarily of the following expenses: Compensation and related costs, $365,390; General and administrative expenses of $31,716; Accounting, audit and professional fees, $113,036; Consulting fees, $44,736; Rent, utilities and telecommunication expenses $68,807; Travel and entertainment, $9,314;  stock and option based compensation, $38,476; and advertising, marketing and web expenses, $3,005. Expenses incurred during the comparative three month period in 2014 consisted primarily of the following expenses: Compensation and related costs, $302,538; General and administrative expenses of $63,633; Accounting, audit and professional fees, $32,920; Consulting fees, $69,488; Rent, utilities and telecommunication expenses $67,571; Travel and entertainment, $10,912; stock and option based compensation, $121,529; advertising, marketing and web expenses, $12,801; and taxes, $4,288.

25

Loss from continuing operations

We incurred a loss from continuing operations, before preferred dividends and non-controlling interest of $1,133,912 for the three months ended October 31, 2015 as compared to $1,144,922 for the corresponding interim period in 2014, a $11,010 or 0.96% decrease. This decrease was attributable primarily to: a $5,780, 115.35% increase in other income; a $34,522 or 5.03% increase in general and administrative expenses as described above; a $359,385 or 176.3% change of (decrease in) fair value of derivative liabilities; a $40,484 or 25.33% increase in financing costs; and a $319,385 or 168.7% increase in the amortization of debt discount. Our net loss attributable to common stockholders increased to $1,164,683 for the three month period ended October 31, 2015 as compared to $1,154,306 for the corresponding period in 2014. The $10,377 or 0.90% increase in net loss attributable to common stockholders for the three month period ended October 31, 2015 was due primarily to the factors described above and a $19,951 or 267.44% increase in the net gain attributed to non-controlling interest.

Comparison of the Six Months Ended October 31, 2015 to the Six Months Ended October 31, 2014

Discontinued Operations

As discussed in NOTE C to the consolidated financial statements, in August 2012, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented.

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Six Months Ended
	October 31,			October 31,
	2015			2014
Revenues	$	28,256		$	23,163
Net (loss)	$	(30,446	)	$	(111,017	)

For the six months ended October 31, 2015 and 2014, we have generated limited sales revenues, have incurred significant expenses, and have sustained significant losses.

RESULTS OF CONTINUING OPERATIONS

Revenues

Revenues totaled $334,571 during the six months ended October 31, 2015 as compared to $270,881 during the six months ended October 31, 2014.  This $63,690 or 23.51% increase was due to increased sales of mobile apps.

Costs and Expenses

General and administrative expenses were $1,388,223 during the six months ended October 31, 2015, compared to $1,217,394 during the six months ended October 31, 2014, an increase of $170,829, or 14.03% primarily due to run down of discontinued operations and reallocation of the majority of these expenses to continuing operations. Expenses incurred during the current six month period consisted primarily of the following expenses: Compensation and related costs, $715,574; Accounting, audit and professional fees, $274,591; Consulting fees, $119,236; Rent, utilities and telecommunication expenses $141,424; Travel and entertainment, $21,995;  stock and option based compensation, $91,504, advertising, marketing and web expenses, $10,736, and taxes, $431. Expenses incurred during the comparative six month period in 2014 consisted primarily of the following expenses: Compensation and related costs, $634,613; Accounting, audit and professional fees, $119,979; Consulting fees, $119,748; Rent, utilities and telecommunication expenses $113,878; Travel and entertainment, $11,291;  stock and option based compensation, $190,019, advertising, marketing and web expenses, $30,186, and taxes, $8,081. 

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Loss from continuing operations

We incurred a loss from continuing operations before preferred dividends and non-controlling interest of $2,653,075 for our six months ended October 31, 2015 as compared to $1,570,586 for the corresponding interim period in 2014. The $1,082,489 or 68.92% increase in our loss from continuing operations before preferred dividends and non-controlling interest for our six month interim period ended October 31, 2015 was attributable primarily to the: $63,690 or 23.51% increase in revenues; $2,165 or 13.72% increase in other income; and the $71,391 or 820.236% change of (decrease in) fair value of derivative liabilities; all offset by  the $436,025, 176.78% increase in financing costs; the $617,110, 196.49% increase in amortization of debt discount; and non-cash financing costs of $367,939. 

Our net loss attributable to common stockholders increased to $2,700,657 for our six month period ended October 31, 2015 as compared to $1,662,735 for the corresponding period in 2014. The $1,037,922, 62.42% increase in net loss attributable to common stockholders for our six month period ended October 31, 2015 was due to the factors described above. Additionally, there was a gain attributed to non-controlling of $16,754 in the six months ended October 31, 2015 as compared to a loss of $19,251 in the six months ended October 31, 2014.

LIQUIDITY AND CAPITAL RESOURCES

As of October 31, 2015, we had a deficit net worth of $6,617,278. We generated a deficit in cash flow from operations of $1,135,084 for the six months ended October 31, 2015. This deficit is primarily attributable to our net loss of $2,683,520 which included: depreciation of $1,810; the value of shares issued for compensation of $120,591; net change in the value of derivative liabilities of $80,095; amortization of debt discount of $931,175; a $52,331 increase in accounts receivable; an increase of $312,754 in payables and accrued expenses; shares issued for finance cost valued at $48,840; and other financing costs of $261,770.

We met our cash requirements during the six month period as follows: through revenues generated:  net proceeds of notes and convertible notes payable of $1,749,518; net proceeds from the sale of common equity in the amount of $20,000; and net proceeds from the sale of subsidiary preferred stock of $50,000. We made net payments on notes payable in the amount of $671,163.

Net cash used by discontinued operations was $17,543.

We do not anticipate incurring significant research and development expenditures, and we do not anticipate the sale or acquisition of any significant property, plant or equipment, during the next twelve months.  At October 31, 2015, we had 14 full time employees. If we fully implement our business plan, we anticipate our employment base may increase by approximately 100% during the next twelve months. As we continue to expand, we will incur additional cost for personnel. This projected increase in personnel is dependent upon our generating revenues and obtaining sources of financing. There is no guarantee that we will be successful in raising the funds required or generating revenues sufficient to fund the projected increase in the number of employees.

While we have raised capital to meet our working capital and financing needs in the past, additional financing is required in order to meet our current and projected cash flow deficits from operations and development.

We continue seeking additional financing, which may be in the form of senior debt, subordinated debt or equity. We currently have no commitments for financing that aren’t at the investor’s election. There is no guarantee that we will be successful in raising the funds required to support our operations.

We estimate that we will need approximately $1,500,000 in addition to our normal operating cash flow to conduct operations during the next twelve months.   However, there can be no assurance that additional private or public financing, including debt or equity financing, will be available as needed, or, if available, on terms favorable to us. Any additional equity financing may be dilutive to stockholders and such additional equity securities may have rights, preferences or privileges that are senior to those of our existing common or preferred stock. Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. However, if we are not successful in generating sufficient liquidity from operations or in raising sufficient capital resources, on terms acceptable to us, this could have a material adverse effect on our business, results of operations, liquidity and financial condition, and we will have to adjust our planned operations and development on a more limited scale.

The effect of inflation on our revenue and operating results was not significant. Our operations are located in North America and there are no seasonal aspects that would have a material effect on our financial condition or results of operations.

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GOING CONCERN ISSUES

The independent auditors report on our April 30, 2015 and 2014 financial statements included in the Company’s Annual Report states that the Company’s historical losses and the lack of revenues raise substantial doubts about the Company’s ability to continue as a going concern, due to the losses incurred and its lack of significant operations. If we are unable to develop our business, we have to discontinue operations or cease to exist, which would be detrimental to the value of the Company’s common stock. We can make no assurances that our business operations will develop and provide us with significant cash to continue operations.

In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional financing through discussions with investment bankers, financial institutions and private investors. There can be no assurance the Company will be successful in its effort to secure additional financing.

We continue to experience net operating losses. Our ability to continue as a going concern is subject to our ability to develop profitable operations. We are devoting substantially all of our efforts to developing our business and raising capital. Our net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

The primary issues management will focus on in the immediate future to address this matter include: seeking additional credit facilities from institutional lenders; seeking institutional investors for debt or equity investments in our Company; short term interim debt financing: and private placements of debt and equity securities with accredited investors.

To address these issues, we have engaged a financial advisory firm to advise and assist us in negotiating and raising capital.

INFLATION

The impact of inflation on the costs of the Company, and the ability to pass on cost increases to its customers over time is dependent upon market conditions. The Company is not aware of any inflationary pressures that have had any significant impact on the Company’s operations over the past quarter, and the Company does not anticipate that inflationary factors will have a significant impact on future operations.

OFF-BALANCE SHEET ARRANGEMENTS

The Company does not maintain off-balance sheet arrangements nor does it participate in non-exchange traded contracts requiring fair value accounting treatment.

TRENDS, RISKS AND UNCERTAINTIES

We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise.

Our annual operating results may fluctuate significantly in the future as a result of a variety of factors, most of which are outside our control, including: the demand for our products and services; seasonal trends in purchasing, the amount and timing of capital expenditures and other costs relating to the commercial and consumer financing; price competition or pricing changes in the market; technical difficulties or system downtime; general economic conditions and economic conditions specific to the consumer financing sector.

Our annual results may also be significantly impacted by the impact of the accounting treatment of acquisitions, financing transactions or other matters. Particularly at our early stage of development, such accounting treatment can have a material impact on the results for any quarter. Due to the foregoing factors, among others, it is likely that our operating results may fall below our expectations or those of investors in some future quarter.

Our future performance and success is dependent upon the efforts and abilities of our management. To a very significant degree, we are dependent upon the continued services of Anthony L. Havens, our President and Chief Executive Officer and member of our Board of Directors. If we lost the services of either Mr. Havens, or other key employees before we could get qualified replacements, that loss could materially adversely affect our business. We do not maintain key man life insurance on any of our management.

Our officers and directors are required to exercise good faith and high integrity in our management affairs. Our bylaws provide, however, that our directors shall have no liability to us or to our shareholders for monetary damages for breach of fiduciary duty as a director except with respect to (1) a breach of the director’s duty of loyalty to the corporation or its stockholders, (2) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (3) liability which may be specifically defined by law or (4) a transaction from which the director derived an improper personal benefit. 

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The present officers and directors own approximately 1% of the outstanding shares of common stock, without giving effect to shares underlying convertible securities, and therefore are not in a position to elect all of our Directors and otherwise control the Company. However, they can authorize the sale of equity or debt securities of Sparta, the appointment of officers, and the determination of officers’ salaries. Shareholders have no cumulative voting rights.

We may experience growth, which will place a strain on our managerial, operational and financial systems resources. To accommodate our current size and manage growth if it occurs, we must devote management attention and resources to improve our financial strength and our operational systems. Further, we will need to expand, train and manage our sales and distribution base. There is no guarantee that we will be able to effectively manage our existing operations or the growth of our operations, or that our facilities, systems, procedures or controls will be adequate to support any future growth. Our ability to manage our operations and any future growth will have a material effect on our stockholders.

If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board which would limit the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.  Companies trading on the OTC Bulletin Board, such as us, must be reporting issuers under Section 12 of the Securities Exchange Act of 1934, as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board. If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board. As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.

CRITICAL ACCOUNTING POLICIES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policies involves the most complex, difficult and subjective estimates and judgments.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized upon delivery. Revenues from History Reports are recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery.  There were no deferred revenues at October 31, 2015 and April 30, 2015.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value. 

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Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Stock-Based Compensation

The Company adopted ASC 718-10, “Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Allowance for Losses

The Company has loss reserves for its portfolio of Leases and for its portfolio of Retail Installment Sales Contracts (“RISC”). The allowance for Lease and RISC losses is increased by charges against earnings and decreased by charge-offs (net of recoveries). To the extent actual credit losses exceed these reserves, a bad debt provision is recorded; and to the extent credit losses are less than the reserve, additions to the reserve are reduced or discontinued until the loss reserve is in line with the Company’s reserve ratio policy. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past lease and RISC experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. The Company periodically reviews its Lease and RISC receivables in determining its allowance for doubtful accounts.

The Company charges-off receivables when an individual account has become more than 120 days contractually delinquent. In the event of repossession, the asset is immediately sent to auction or held for release.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note A to the Unaudited Condensed Consolidated Financial Statements for a description of recent accounting pronouncements, including the expected dates of adoption and estimated effects on our consolidated financial statements, which is incorporated herein by reference.

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ITEM 3.                QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.                CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer and our Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report.  Based on that evaluation, and in light of the material weaknesses found in our internal controls, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.  In our assessment of the effectiveness of internal control over financial reporting, we determined that control deficiencies existed that constituted material weaknesses, as described below: 

● lack of documented policies and procedures;

● we have no audit committee;

● there is a risk of management override given that our officers have a high degree of involvement in our day to day operations.

● there is no effective separation of duties, which includes monitoring controls, between the members of management.

Management is currently evaluating what steps can be taken in order to address these material weaknesses. 

There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and fraud.  Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met.  Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

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PART II. OTHER INFORMATION

ITEM 1.                LEGAL PROCEEDINGS

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

As at October 31, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

The Company is involved in two (2) litigation matters in the Supreme Court of the State of New York wherein the Company has alleged that the respective lenders have charged the Company excessive and improper fees and penalties on its loans. The Company expects a satisfactory resolution by settlement with each lender.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion and our opposition were submitted in September 2015. On December 21, 2015, the Court issued its decision and order denying the motion of the defendant and stating that unless either party raises other matters before January 15, 2016, the clerk will  enter judgment dismissing the complaint, with costs and disbursements according to law.

ITEM 1A.             RISK FACTORS

We are subject to certain risks and uncertainties in our business operations including those which are described below. The risks and uncertainties described below are not the only risks we face. Additional risks anduncertainties not presently known or which are currently deemed immaterial may also impair our business operations.  A description of factors that could materially affect our business, financial condition or operating results were included in Item 1A “Risk Factors” of our Form 10-K for the year ended April 30, 2015, filed August 13, 2015, and is incorporated herein by reference.  

ITEM 2.                UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Each of the issuance and sale of securities described below was deemed to be exempt from registration under the Securities Act in reliance on Section 4(2) of the Securities Act as transactions by an issuer not involving a public offering. No advertising or general solicitation was employed in offering the securities. Each purchaser is a sophisticated investor (as described in Rule 506(b) (2) (ii) of Regulation D) or an accredited investor (as defined in Rule 501 of Regulation D), and each received adequate information about the Company or had access to such information, through employment or other relationships, to such information.  The Company applied proceeds from financing activities described below to working capital.

During the three months ended October 31, 2015 the Company:

Borrowed a $40,000 note due August 21, 2016. The Company has recorded a beneficial conversion discount of $28,996 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 15,000,000 shares of its common stock for conversion pursuant to the terms of the note.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full.

Borrowed a $33,000, 5% convertible note due August 25, 2017. This is the second tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $9,029 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 2,700,000 shares of its common stock for conversion pursuant to the terms of the note. 

Borrowed a $17,617, 10% note due October 12, 2016. The Company has recorded a beneficial conversion discount of $17,676 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the note.  

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Borrowed a $28,000, 8% note due April 20, 2016. The Company has recorded a beneficial conversion discount of $28,000 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 15,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

Borrowed a $37,000, 8% note due October 28, 2016. The Company has recorded a beneficial conversion discount of $37,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 33,189,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

Borrowed a $41,000, 8% note due August 21, 2016. The company has recorded a $35,961 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 21,000,000 shares of its common stock for conversion pursuant to the terms of the notes.

Borrowed a $27,500, 12% note due October 13, 2016. The company has recorded a $27,500 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 5,936,124 shares of its common stock for conversion pursuant to the terms of the notes.

· issued 51,430,614 shares of common stock upon the conversion of $331,422 principal amount of convertible notes,

· accrued 4,386,240 shares for the conversion of $30,623 of converted notes and accrued interest,

· issued 2,908,374 shares of common stock valued at $37,762 pursuant to terms of various notes,

· issued 7,220,000 shares of common stock valued at $38,447 pursuant to consulting agreements,

ITEM 3.                DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.                MINE SAFETY DISCLOSURE

None.

ITEM 5.                OTHER INFORMATION

Not applicable.

ITEM 6.                EXHIBITS

The following exhibits are filed with this report:

Exhibit No.	Description
11	Statement re: computation of per share earnings is hereby incorporated by reference to “Financial Statements” of Part I - Financial Information, Item 1 - Financial Statements, contained in this Form 10-Q.
31.1*	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
31.2*	Certification of Principal Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350
32.2*	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase
* Filed herewith

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SIGNATURES

           Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPARTA COMMERCIAL SERVICES, INC.
Date:  December 21, 2015	By:  /s/ Anthony L. Havens
	Anthony L. Havens
	Chief Executive Officer
Date:  December 21, 2015	By:  /s/ Anthony W. Adler
	Anthony W. Adler
	Principal Financial Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Anthony L. Havens, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended October 31, 2015 of Sparta Commercial Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  December 21, 2015

/s/ Anthony L. Havens

Anthony L. Havens

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Anthony W. Adler, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended October 31, 2015 of Sparta Commercial Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  December 21, 2015

/s/ Anthony W. Adler

Anthony W. Adler

Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Sparta Commercial Services, Inc. (the “Company”) on Form 10-Q for the quarterly period ended October 31, 2015, as filed with the Securities and Exchange Commission on the date therein specified (the “Report”), I, Anthony L. Havens, as Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  December 21, 2015

/s/ Anthony L. Havens

Anthony L. Havens

Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Sparta Commercial Services, Inc. (the “Company”) on Form 10-Q for the quarterly period ended October 31, 2015, as filed with the Securities and Exchange Commission on the date therein specified (the “Report”), I, Anthony W. Adler, as Principal Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  December 21, 2015

/s/ Anthony W. Adler

Anthony W. Adler

Principal Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Oct. 31, 2015	Dec. 11, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SPARTA COMMERCIAL SERVICES, INC.
Document Type	10-Q
Current Fiscal Year End Date	--04-30
Entity Common Stock, Shares Outstanding		186,259,731
Amendment Flag	false
Entity Central Index Key	0000318299
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Current Assets
Cash and cash equivalents	$ 9,762	$ 14,034
Accounts receivable	52,341	10
Other current assets	2,114	5,706
Total Current Assets	64,217	19,750
Property and equipment, net of accumulated depreciation and amortization of $205,025 and $203,215, respectively (NOTE B)	8,237	10,047
Goodwill	10,000	10,000
Other assets	9,628	9,628
Deposits	79,776	79,776
Total Long Term Assets	107,641	109,451
Total assets from continuing operations	171,858	129,201
ASSETS FROM DISCONTINUED OPERATIONS (NOTE C)	2,454	13,955
Total assets	174,312	143,156
Current Liabilities
Accounts payable and accrued expenses	1,600,084	1,382,598
Current portion notes payable net of beneficial conversion feature of $736,596 and $762,426, respectively (NOTE D)	2,032,923	1,374,786
Derivative liabilities	1,678,052	1,605,535
Total Current Liabilities	5,311,059	4,362,919
Long term portion notes payable net of beneficial conversion features of $15,262 and $0, respectively (NOTE D)	1,043,606	1,263,369
Loans payable-related parties (NOTE E)	395,853	385,853
Total Long Term Liabilities	1,439,459	1,649,222
Total liabilities from continuing operations	6,750,518	6,012,141
LIABILITIES FROM DISCONTINUED OPERATIONS (NOTE C)	41,072	70,117
Total liabilities	6,791,590	6,082,258
Deficit:
Common stock, $0.001 par value; 750,000,000 shares authorized, 134,865,129 and 43,238,320 shares issued and outstanding, respectively	134,865	43,238
Common stock to be issued 4,699,662 and 2,356,598, respectively	4,700	2,356
Additional paid-in-capital	44,390,665	42,528,909
Accumulated deficit	(51,879,110)	(49,178,453)
Deficit attributable to Sparta Commercial Services, Inc.	(7,336,381)	(6,591,450)
Non-controlling interest	719,103	652,348
Total Deficit	(6,617,278)	(5,939,102)
Total Liabilities and Deficit	174,312	143,156
Series A Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	12,500	12,500
Series B Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	0	0
Series C Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	$ 0	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Accumulated depreciation and amortization (in Dollars)	$ 205,025	$ 203,215
Beneficial Conversion Feature (in Dollars)	$ 751,858	$ 762,426
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	10,000,000	10,000,000
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	134,865,129	43,238,320
Common stock, shares outstanding	134,865,129	43,238,320
Common stock to be issued	4,699,662	2,356,598
Series A Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 100	$ 100
Preferred stock, shares designated	35,850	35,850
Preferred stock, shares issued	125	125
Preferred stock, shares outstanding	125	125
Series B Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	1,000	1,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, redemption value (in Dollars)	$ 10,000	$ 10,000
Series C Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, redemption value (in Dollars)	$ 10	$ 10
Convertible Debt [Member]
Beneficial Conversion Feature (in Dollars)	15,262	0
Convertible Debt [Member]
Beneficial Conversion Feature (in Dollars)	$ 736,596	$ 762,426

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Revenue
Information technology	$ 167,348	$ 138,074	$ 334,571	$ 270,881
Cost of goods sold	37,656	48,470	81,802	86,047
Gross profit	129,693	89,604	252,769	184,834
Operating expenses:
General and administrative	720,202	685,680	1,388,223	1,217,394
Depreciation and amortization	753	897	1,810	1,793
Total operating expenses	720,954	686,578	1,390,033	1,219,188
Loss from operations	(591,262)	(596,974)	(1,137,264)	(1,034,353)
Other (income) expense:
Other income	(10,791)	(5,011)	(17,944)	(15,779)
Financing cost	200,294	159,809	682,676	246,651
Amortization of debt discount	508,709	189,324	931,175	314,065
(Gain) loss in changes in fair value of derivative liability	(155,560)	203,825	(80,095)	(8,704)
Total other expense	542,651	547,948	1,515,811	536,233
Loss from continuing operations	(1,133,913)	(1,144,922)	(2,653,075)	(1,570,586)
Loss from discontinued operations	(17,898)	(16,653)	(30,446)	(111,017)
Net Loss	(1,151,811)	(1,161,575)	(2,683,520)	(1,681,603)
Net (gain) loss attributed to Non-controlling interest	(12,491)	7,460	(16,754)	19,251
Preferred dividend	(382)	(191)	(382)	(382)
Net loss attributed to Sparta Commercial Services, Inc. common shareholders	$ (1,164,684)	$ (1,154,306)	$ (2,700,657)	$ (1,662,735)
Basic and diluted loss per share (in Dollars per share)	$ (0.02)	$ (0.05)	$ (0.04)	$ (0.07)
Basic and diluted loss per share attributed to Sparta Commercial Services, Inc. common shareholders (in Dollars per share)	$ (0.02)	$ (0.05)	$ (0.04)	$ (0.07)
Weighted average shares outstanding (in Shares)	67,509,145	21,906,215	75,749,160	22,275,630

XML

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (UNAUDITED) - 6 months ended Oct. 31, 2015 - USD ($)	Total	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Common Stock [Member]	Common Stock To Be Issued [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Balance at Apr. 30, 2015	$ (5,939,102)	$ 12,500	$ 0	$ 0	$ 43,238	$ 2,356	$ 42,528,909	$ (49,178,453)	$ 652,348
Balance (in Shares) at Apr. 30, 2015		125	0	0	43,238,320	2,356,598
Correcting					$ (30)
Correcting (in Shares)					(30,060)
Rounding	333				$ 1		332
Derivative liability reclassification	1,029,765						1,029,765
Sale of subsidiary preferred stock	50,000								50,000
Sale of common stock	20,000				$ 760		19,240
Sale of common stock (in Shares)					760,456
Shares issued for financing cost	48,840				$ 3,309		45,531
Shares issued for financing cost (in Shares)					3,309,433
Shares issued for conversion of notes, interest and accounts payable	736,197				$ 77,486	$ 2,344	656,399
Shares issued for conversion of notes, interest and accounts payable (in Shares)					77,485,924	2,343,064
Stock compensation	120,527				$ 10,066		110,461
Stock compensation (in Shares)					10,066,000
Employee stock & options expense	64				$ 35		29
Employee stock & options expense (in Shares)					35,056
Preferred dividend	(382)							(382)
Net loss	(2,683,521)							(2,700,275)	16,754
Balance at Oct. 31, 2015	$ (6,617,278)	$ 12,500	$ 0	$ 0	$ 134,865	$ 4,700	$ 44,390,665	$ (51,879,110)	$ 719,103
Balance (in Shares) at Oct. 31, 2015		125	0	0	134,865,129	4,699,662

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,683,520)	$ (1,681,603)
Adjustments to reconcile net loss to net cash used in operating activities:
Corrections	331	0
Depreciation and amortization	1,810	1,793
(Gain) loss due to change in fair value of derivative liabilities	(80,095)	(8,704)
Amortization of debt discount	931,175	314,065
Equity based finance cost	48,840	187,923
Non cash financing cost	261,770	0
Equity based compensation	120,591	204,386
Changes in operating assets and liabilities:
Accounts receivable	(52,331)	(98,442)
Other assets	3,592	(66,505)
Accounts payable and accrued expenses	312,754	38,375
Net cash used in operating activities	(1,135,084)	(1,108,713)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	0	0
Net cash (used in) investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from sale of common stock	20,000	497,478
Net proceeds from sale of subsidiary preferred stock	50,000	0
Net proceeds from convertible notes	1,659,518	485,000
Net payments on convertible notes	(671,163)	(97,500)
Net proceeds from subsidiary notes	80,000	155,000
Net proceeds from related party notes	10,000	0
Net cash provided by financing activities	1,148,355	1,039,978
Cash flows from discontinued operations:
Depreciation of assets of discontinued operations	2,474	10,902
Cash used in operating activities of discontinued operations	(20,017)	0
Cash used in financing activities of discontinued operations	0	(3,065)
Net Cash flow from discontinued operation	(17,543)	7,837
Net Decrease in cash	(4,272)	(60,898)
Cash and cash equivalents, beginning of period	14,034	70,456
Cash and cash equivalents , end of period	9,762	9,558
Cash paid for:
Interest	14,746	27,359
Income taxes	$ 0	$ 0

XML

NOTE A - SUMMARY OF ACCOUNTING POLICIES

6 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE A – SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of October 31, 2015 and for the three and six month periods ended October 31, 2015 and 2014 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended April 30, 2015 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of April 30, 2015 contained herein has been derived from the audited consolidated financial statements as of April 30, 2015, but do not include all disclosures required by the U.S. GAAP.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Specialty Reports, Inc. All significant inter-company transactions and balances have been eliminated in consolidation.

Business

Sparta Commercial Services, Inc. ("Sparta" "we," "us," or the "Company") is a Nevada corporation. We are a technology company that develop and market mobile app tools, products and services. We also provide vehicle history reports and a municipal leasing program.

Our roots are in the Powersports industry and our original focus was providing consumer and municipal financing to the powersports, recreational vehicle, and automobile industries (see Discontinued Operations). Presently, through our subsidiary, Specialty Reports, Inc. (SRI), we offer Mobile App development, sales, marketing and support, and Vehicle History Reports.

Our mobile application (mobile app) offerings have broadened our base beyond vehicle dealers to a wide range of businesses including, but not limited to, restaurants, hotels, and grocery stores. We also private label our mobile app framework to enable other businesses to offer custom apps to their customers.

Our vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com); RVchex (Recreational Vehicle History Reports at www.rvchex.com); CarVINreport (Automobile at www.carvinreport.com) and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com). Our Vehicle History Reports are designed for consumers, retail dealers, auction houses, insurance companies and banks/finance companies.

Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease.

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of operations for all periods presented.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized upon delivery. Revenues from History Reports are recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. There were no deferred revenues at October 31, 2015 and April 30, 2015.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value. 

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Inventories

Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value.

Website Development Costs

The Company recognizes website development costs in accordance with Accounting Standards Codification (“ASC”) 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Uncertainty in Income Taxes (“ASC 740-10”)." Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards. 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 removed 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.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions. As a result of implementing ASC 740-10, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015 or the three months or six months ended October 31, 2015.

Fair Value Measurements

The Company adopted ASC 820, “Fair Value Measurements (“ASC 820”).”  ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available.

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Comprehensive Income

In accordance with ASC 220-10, “Reporting Comprehensive Income,” (“ASC 220-10”) establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. At October 31, 2015 and April 30, 2015, the Company has no items of other comprehensive income.

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information,” “ASC 208-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2014, the Company has discontinued segment reporting.

Stock Based Compensation

The Company adopted ASC 718-10, “Compensation-Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Concentrations of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the six months ended October 31, 2015 and 2014, the Company incurred advertising costs of $1,301 and $3,819, respectively. During the three months ended October 31, 2015 and 2014, the Company incurred advertising expenses of $251 and zero, respectively.

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.02 and $0.05 for the three months ended October 31, 2015 and 2014, respectively, and $0.04 and $0.07 for the six months ended October 31, 2015 and 2014, respectively. At October 31, 2015 and 2014, 304,617,676 and 5,586,766 potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Liquidity

As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred a net loss of $2,683,520 and $1,681,603 during the six months ended October 31, 2015 and October 31, 2014, respectively. The Company’s current liabilities exceed its current assets by $5,246,843 as of October 31, 2015.

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

Recent Accounting Pronouncements

There were various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

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NOTE B - PROPERTY AND EQUIPMENT

6 Months Ended

Oct. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE B – PROPERTY AND EQUIPMENT

Major classes of property and equipment at October 31, 2015 and April 30, 2015 consist of the followings:

	October 31, 2015			April 30, 2015
Computer equipment, software and furniture	$	213,263		$	213,262
Less: accumulated depreciation		(205,025	)		(203,215	)
Net property and equipment	$	8,238		$	10,047

Depreciation expense of continuing operations for property and equipment was $1,810 and $1,793, respectively for the six months ended October 31, 2015 and 2014 and $753 and $897, respectively for the three months ended October 31, 2015 and 2014.

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NOTE C - DISCONTINUED OPERATIONS

6 Months Ended

Oct. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE C – DISCONTINUED OPERATIONS

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. 

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Six Months Ended
	October 31,			October 31,
	2015			2014
Revenues	$	28,256		$	23,163
Net (loss)	$	(30,446	)	$	(111,017	)

As the Company sold all of its portfolio of performing RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the six months ended October 31, 3015 or the year ending April 30, 2015.

ASSETS INCLUDED IN DISCONTINUED OPERATIONS

MOTORCYCLES AND OTHER VEHICLES UNDER OPERATING LEASES

Motorcycles and other vehicles under operating leases at October 31, 2015 and April 30, 2015:

	October 31,			April 30,
	2015			2015
Motorcycles and other vehicles	$	13,261		$	22,086
Less: accumulated depreciation		(10,793	)		(13,456	)
Motorcycles and other vehicles, net of accumulated depreciation		2,468			8,630
Less: estimated reserve for residual values		(1,247	)		(2,436	)
Motorcycles and other vehicles under operating leases, net	$	1,221		$	6,194

At April 30, 2015, motorcycles and other vehicles are being depreciated to their estimated residual values over the lives of their lease contracts. Depreciation expense for vehicles for the six months ended October 31, 2015 was $2,474 and for the year ended April 30, 2015, it was $28,736. All of the assets are pledged as collateral for the note described in SECURED NOTES PAYABLE in this Note C.  These remaining leases are in a run-off mode. 

INVENTORY

Inventory is comprised of repossessed vehicles and vehicles which have been returned at the end of their lease. Inventory is carried at the lower of depreciated cost or market, applied on a specific identification basis. At October 31, 2015 and at April 30, 2015, the Company had no repossessed vehicles which are held for resale.

RETAIL (RISC) LOAN RECEIVABLES

All of the Company’s RISC performing loan receivables were sold in August 2013.  As of October 31, 2015 and April 30, 2015, the Company had: RISC loans net of reserves of $1,510 and $8,744, respectively.

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore there no portfolio performance measures were calculated for the quarter or six months ending October 31, 2015 or the year ending April 30, 2015.

LIABILITIES INCLUDED IN DISCONTINUED OPERATIONS

SECURED NOTES PAYABLE

	October 31,		April 30,
	2015		2015
Secured, subordinated  individual lender (a)	$	28,992	$	58,037
Secured, subordinated individual lender (b)		12,080		12,080
Total	$	41,072	$	70,117

(a)  The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2015, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2015. The Company is in negotiations with the noteholder to extend the term of this note.  

At October 31, 2015, the notes payable mature as follows:

Year ended October 31,	Amount
2016	$	41,072
Total Due	$	41,072

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NOTE D - NOTES PAYABLE

6 Months Ended

Oct. 31, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE D – NOTES PAYABLE

Notes Payable	October 31, 2015			April 30, 2015
Notes convertible at holder’s option (a)	$	2,411,387		$	2,707,080
Notes convertible at Company’s option (b)		171,000			15,000
Notes with interest only convertible at Company’s option (c)		260,000			285,000
Non-convertible notes payable (d)		986,000			393,000
Subtotal		3,828,387			3,400,580
Less, Debt discount		(751,858	)		(762,426	)
Total	$	3,076,528		$	2,638,154

(a)  Notes convertible at holder’s option consists of:

     (i)                            a $815,868, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013;  

 (ii)                           (a) a $40,000 note due August 21, 2016. The Company has recorded a beneficial conversion discount of $28,996 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                          seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 0.66667%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 0.66667%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;  

 (vi)                          (a) $32,319 outstanding on a $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (c) a $33,000 5% convertible note due August 25, 2017. This is the second tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $9,029 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 44,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (vii)                         (a) a $27,500, 5% convertible note due March 23, 2015, and (b) a $27,500, 5% convertible note due June 15, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $37,729 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (c) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. Subsequent to October 31, 2015 this noteholder forgave the balancer of this note. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $57,200 8% convertible note due January 26, 2016, (b) a $58,000 8% convertible note due May 6, 2016, and (c) a $30,700 8% convertible note due July 8, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 9,821,428 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

 (x)                            (a) $17,617 10% note due October 12, 2016. The Company has recorded a beneficial conversion discount of $17,676 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xi)                           (a) $45,000 outstanding under a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (b) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

 (xiii)                         (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (d) a $22,500, 8% convertible note due July 9, 2016. The Company has recorded a beneficial conversion discount of $15,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”);. The Company has reserved up to 8,900,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (xiv)                         (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) a $50,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (e) $60,007 outstanding on a $100,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $100,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 21,784,111 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xv)                         (a) a $33,000, 8% note due November 25, 2015; (b) a $38,000, 8% note due January 17, 2016; (c) a $33,000, 8% note due February 16, 2016; and (d) a $28,000, 8% note due April 20, 2016. The Company has recorded a beneficial conversion discount of $102,828 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 10,900,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (xvi)                        $21,500 outstanding under a $30,000, 8% note due April 14, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

 (xvii)                       (a) a $25,000, 8% note due April 22, 2016. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”), and (b) a $37,000, 8% note due October 28, 2016. The Company has recorded a beneficial conversion discount of $37,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 34,718,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

 (xviii)                      (a) $6,100 outstanding under a $25,000, 10% note due July 19, 2016 and (b) a $31,900 note due July 28, 2016. The Company has recorded a beneficial conversion discount of $55,549 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,079,404 shares of its common stock for conversion pursuant to the terms of the notes.

 (xix)                         (a) $17,000 outstanding under a $50,000, 8% note due August 21, 2016. The company has recorded a $43,855 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; (b) a $41,000, 8% note due August 21, 2016. The company has recorded a $35,961 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (c) a $58,625, 10% note due October 12, 2016. The company has recorded a $58,625 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 81,000,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (xx)                          (a) $18,125 outstanding under a $25,000, 12% note due October 13, 2016. The company has recorded a $25,000 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $27,500, 12% note due October 13, 2016. The company has recorded a $27,500 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 11,322,600 shares of its common stock for conversion pursuant to the terms of the notes.

 (xxi)                         (a) a $34,267.02, 8% note due April 30, 2016. The company has recorded a $28,185 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $55,109.48, 8% note due April 30, 2016. The company has recorded a $45,238 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 120,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

(b) Notes convertible at the Company’s option consist of:

 (i)                            (a) a $15,000, note due April 22, 2016, (b) a $25,000, note due June 28, 2016, (c) a $10,000 note due June 25, 2016, (d) a $5,000 note due July 20, 2016, (e) a $6,000 note due July 22, 2016, (f) a $15,000 note due July 30, 2016 and (g) a $15,000 note due September 29, 2016.  All of the notes bear 10% interest and are convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company agreed to issue the Noteholders a total of 190,000 shares of its restricted common stock as an inducement for the loan. If the notes are not paid in full on or before maturity, the Company shall issue the noteholders 1,000 shares of its restricted common stock for each month, or portion thereof, that the notes remains unpaid.  

 (ii)                           $80,000 in one year 10% notes maturing in July 2016, issued by our subsidiary, Specialty Reports, Inc., convertible at the option of the issuer into the issuer’s common stock at the conversion price of $3.00 per share.

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                            a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share; 

 (iii)                          a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period; and

 (iv)                          a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan. The Company is in discussions with this lender to extend the due date of the note. 

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015. The Company is in discussions with this lender to extend the due date of the note;

 (iii)                          a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (iv)                          a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016; a $50,000 , 10% note due April 29, 2016; a $50,000, 10% note due May 4, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $50,000, 10% note due May 17, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $25,000, 10% note due May 28, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan,  a $50,000, 10% note due June 23, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $22,500, 10% note due July 7, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, a $20,000, 10% note due July 13, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, and a $25,000, 10% note due July 30, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan, and $93,000 in advances to the Company in August 2015 the terms of which are under negotiation.

 (v)                           a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan. The Company is in discussions with this lender to extend the due date of the note;

 (vi)                          a $33,500, 10% note due April 30, 2016. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (vii)                         a $32,000, 10% note due May 8, 2016. The Company agreed to issue 64,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid, a $15,000, 10% note due February 12, 2016. The Company agreed to issue 75,000 shares of restricted common stock as an inducement for the loan and pay the holder 10,000 shares per month for each month or fraction thereof the note remains unpaid, and a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

 (viii)                        a $20,000, 10% note due May 8, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (ix)                          a $25,000, 10% note due August 21, 2016.The Company agreed to issue 62,500 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

     (x)                           a $10,000, 10% note due October 31, 2015.The Company agreed to issue 500,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to Five Hundred ($500) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default, and a $25,000, 10% note due October 21, 2016.The Company agreed to issue 1,000,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

 (xi)                          a $50,000, 10% note due October 19, 2016. The Company agreed to issue 300,000 shares of   restricted common stock as an inducement for the loan and pay the holder 200,000 shares of common stock if the loan is not paid when due. The Company is in discussions with this lender to extend the due date of the note a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

 (xii)                         a $10,000, 20% note due October 5, 2016. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date and amend the terms of this note; and

 (xiii)                        a $10,000, 10% note due November 28, 2015. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 500,000 shares per month for each month or fraction thereof the note remains unpaid.

Amortization of Beneficial Conversion Feature for the six months ended October 31, 2015 and 2014 was $931,175 and $314,065, respectively and for the fiscal year ended April 30, 2015 was $1,013,934.

The Company's derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

The change in fair value of the derivative liabilities of warrants outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.01	%	to	1.29	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.01	year	to	4.10	years

The change in fair value of the derivative liabilities of convertible notes outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.06	%	to	0.65	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.20	year	to	1.8	years

The value of the derivative liability was re-assessed as of October 31, 2015 resulting in a gain to the consolidated statements of operations of $80,095 and $8,704 for the six months ended October31, 2015 and 2014, respectively.

	October 31, 2015
Opening balance, April 30, 2015	$	1,605,535
Derivative liability reclassified to additional paid in capital		(1,029,765	)
Derivative financial liability arising on the issue of convertible notes		1,022,187
Fair value adjustments		80,095
Closing balance	$	1,678,052

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NOTE E - LOANS PAYABLE TO RELATED PARTIES

6 Months Ended

Oct. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE E – LOANS PAYABLE TO RELATED PARTIES

As of October 31, 2015 and April 30, 2015, aggregated loans payable, without demand and with no interest, to officers and directors were $395,853 and $385,853, respectively. 

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NOTE F - EQUITY TRANSACTIONS

6 Months Ended

Oct. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE F – EQUITY TRANSACTIONS

On May 18, 2014, the Company’s Board of Directors declared effective a one for seventy-five reverse common stock split. All per share amounts in these unaudited condensed consolidated financial statements and accompanying notes have been retroactively adjusted to the earliest period presented for the effect of this reverse stock split.

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share, 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value, and 200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value, and 750,000,000 shares of common stock with $0.001 par value per share.  The Company had 125 shares of Series A preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015.  The Company had 0 and 0 shares of Series B preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015 respectively.  The Company had nil shares of Series C preferred stock issued and outstanding as of October 31, 2015 and April 30, 2015.  The Company had 134,865,129 and 43,238,320 shares of common stock issued and outstanding as of October 31, 2015 and April 30, 2015, respectively.

Preferred Stock, Series A

During the six months ended October 31, 2015, there were no transactions in Series A Preferred, however, at October 31, 2015, there were $7,944 of accrued dividends payable on the Series A Preferred, compared to the accrual of $7,562 at April 30, 2015.  At the Company’s option, these dividends may be paid in shares of the Company’s Common Stock.

Preferred Stock, Series B

There were no shares of Series B Preferred Stock issued and outstanding at October 31, 2015 and at April 30, 2015.

Preferred Stock Series C

There were no shares of Series C Preferred Stock issued and outstanding at October 31, 2015 and at April 30, 2015.

Common Stock

During the six months ended October 31, 2015, the Company expensed $91,504 for non-cash charges related to stock and option compensation expense. 

During the six months ended October 31, 2015, the Company:

● issued 4,005,396 shares of common stock which had been classified as to be issued at April 30, 2015,

● sold 760,456 shares of restricted common stock to an accredited investor for $20,000,

● issued 73,480,530 shares of common stock upon the conversion of $705,574 principal amount of convertible notes,

●  accrued 4,386,240 shares for the conversion of $30,623 of converted notes and accrued interest,

● issued 3,309,433 shares of common stock valued at $48,840 pursuant to terms of various notes,

● issued 10,066,000 shares of common stock valued at $120,527 pursuant to consulting agreements,

● issued 35,056 shares of common stock to three employees pursuant to vesting provisions of prior stock awards.

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NOTE G - NONCONTROLLING INTEREST

6 Months Ended

Oct. 31, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

NOTE G – NONCONTROLLING INTEREST

For the six months ended October 31, 2015, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2015	$	652,348
Sale of preferred stock		50,000
Non-controlling interest’s share of profits		16,754
Balance at October 31, 2015	$	719,103

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NOTE H - FAIR VALUE MEASUREMENTS

6 Months Ended

Oct. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE H – FAIR VALUE MEASUREMENTS

The Company follows the guidance established pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of financial liabilities as of October 31, 2015:

			Fair Value Measurement Using
	Fair Value at  October 31,  2015		Level 1		Level 2		Level 3
Derivative liabilities	$	1,678,052		-		-	$	1,678,052

The following is a description of the valuation methodologies used for these items:

Derivative liability — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC Topic 825 “The Fair Value Option for Financial Issuances”.

Changes in Derivative liability during the six months ended October 31, 2015 were:

			New Additions		Decrease
	April 30,		During		in Fair		October 31,
	2015		Period		Value		2015
Derivative liability	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052
Total	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052

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NOTE I - NON-CASH FINANCIAL INFORMATION

6 Months Ended

Oct. 31, 2015

Disclosure Text Block Supplement [Abstract]

Additional Financial Information Disclosure [Text Block]

NOTE I – NON-CASH FINANCIAL INFORMATION

During the six months ended October 31, 2015, the Company:

· Issued 3,309,433 shares of common stock valued at $48,840 pursuant to the terms of the notes

· Issued 340,000 shares of common stock in settlement of $14,450 in accounts payable

· Issued 73,140,530 shares of common stock upon conversion of $691,124 of interest and notes and accounts payable

· Issued 35,056 shares of common stock to three employees pursuant to vesting schedules of prior stock awards

· Issued 4,005,396 shares of common stock which had been recorded as to be issued at April 30, 2015

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NOTE J - SUBSEQUENT EVENTS

6 Months Ended

Oct. 31, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE J – SUBSEQUENT EVENTS

During November and through December 11, 2015, the Company:

· Issued 37,633,885 shares of common stock upon the conversion of $122,762 of notes and accrued interest thereon.  

· Issued 6,051,980 shares valued at $52,000 pursuant to the terms of notes.

· Issued 2,543,737 shares listed as to be issued at October 31, 2015.

· Issued 5,165,000 shares to a consultant valued at $19,369 pursuant to the terms of his consulting agreement.

·   Borrowed a total of $69,000 from four accredited investors in one year, 10% notes and agreed to issue up to a total of 2,000,000 shares of restricted common stock as inducement for the loans.

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NOTE K - GOING CONCERN MATTERS

6 Months Ended

Oct. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Substantial Doubt about Going Concern [Text Block]

NOTE K – GOING CONCERN MATTERS

The accompanying unaudited condensed 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 shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred recurring losses and generated negative cash flows from operating activities since inception.  As of October 31, 2015, the Company had an accumulated deficit of $51,879,110 and working capital deficit (total current liabilities exceeded total current assets) of $5,246,843.  The Company’s cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses for the next twelve months form the filing date of this report.  These factors among others raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

The Company’s existence is dependent upon management’s ability to develop profitable operations.  Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company’s efforts will be successful.  However, there can be no assurance can be given that management’s actions will result in profitable operations or the resolution of its liquidity problems.  The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional equity financing through discussions with investment bankers and private investors.  There can be no assurance the Company will be successful in its effort to secure additional equity financing.

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NOTE L - LEGAL PROCEEDINGS

6 Months Ended

Oct. 31, 2015

Disclosure Text Block Supplement [Abstract]

Legal Matters and Contingencies [Text Block]

NOTE L – LEGAL PROCEEDINGS

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

As at October 31, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

The Company is involved in two (2) litigation matters in the Supreme Court of the State of New York wherein the Company has alleged that the respective lenders have charged the Company excessive and improper fees and penalties on its loans. The Company expects a satisfactory resolution by settlement with each lender.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion and our opposition were submitted to the Court in September 2015. On December 21, 2015, the Court issued its decision and order denying the motion of the defendant and stating that unless either party raises other matters before January 15, 2016, the clerk will  enter judgment dismissing the complaint, with costs and disbursements according to law.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of October 31, 2015 and for the three and six month periods ended October 31, 2015 and 2014 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended April 30, 2015 as disclosed in the Company’s Form 10-K for that year as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of April 30, 2015 contained herein has been derived from the audited consolidated financial statements as of April 30, 2015, but do not include all disclosures required by the U.S. GAAP.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Specialty Reports, Inc. All significant inter-company transactions and balances have been eliminated in consolidation.

Business

Sparta Commercial Services, Inc. ("Sparta" "we," "us," or the "Company") is a Nevada corporation. We are a technology company that develop and market mobile app tools, products and services. We also provide vehicle history reports and a municipal leasing program.

Our roots are in the Powersports industry and our original focus was providing consumer and municipal financing to the powersports, recreational vehicle, and automobile industries (see Discontinued Operations). Presently, through our subsidiary, Specialty Reports, Inc. (SRI), we offer Mobile App development, sales, marketing and support, and Vehicle History Reports.

Our mobile application (mobile app) offerings have broadened our base beyond vehicle dealers to a wide range of businesses including, but not limited to, restaurants, hotels, and grocery stores. We also private label our mobile app framework to enable other businesses to offer custom apps to their customers.

Our vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com); RVchex (Recreational Vehicle History Reports at www.rvchex.com); CarVINreport (Automobile at www.carvinreport.com) and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com). Our Vehicle History Reports are designed for consumers, retail dealers, auction houses, insurance companies and banks/finance companies.

Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease.

Use of Estimates, Policy [Policy Text Block]

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of operations for all periods presented.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized upon delivery. Revenues from History Reports are recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. There were no deferred revenues at October 31, 2015 and April 30, 2015.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value. 

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out method and with market defined as the lower of replacement cost or realizable value.

Research, Development, and Computer Software, Policy [Policy Text Block]

Website Development Costs

The Company recognizes website development costs in accordance with Accounting Standards Codification (“ASC”) 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life. Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Tax, Policy [Policy Text Block]

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Uncertainty in Income Taxes (“ASC 740-10”)." Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards. 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 removed 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.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions. As a result of implementing ASC 740-10, there has been no adjustment to the Company’s financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015 or the three months or six months ended October 31, 2015.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company adopted ASC 820, “Fair Value Measurements (“ASC 820”).”  ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

In accordance with ASC 220-10, “Reporting Comprehensive Income,” (“ASC 220-10”) establishes standards for reporting and displaying of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. At October 31, 2015 and April 30, 2015, the Company has no items of other comprehensive income.

Segment Reporting, Policy [Policy Text Block]

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information,” “ASC 208-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of performing RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2014, the Company has discontinued segment reporting.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

The Company adopted ASC 718-10, “Compensation-Stock Compensation Overall” (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations. The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the six months ended October 31, 2015 and 2014, the Company incurred advertising costs of $1,301 and $3,819, respectively. During the three months ended October 31, 2015 and 2014, the Company incurred advertising expenses of $251 and zero, respectively.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share,” for calculating the basic and diluted loss per share. The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.02 and $0.05 for the three months ended October 31, 2015 and 2014, respectively, and $0.04 and $0.07 for the six months ended October 31, 2015 and 2014, respectively. At October 31, 2015 and 2014, 304,617,676 and 5,586,766 potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Liquidity Policy [Policy Text Block]

Liquidity

As shown in the accompanying unaudited condensed consolidated financial statements, the Company has incurred a net loss of $2,683,520 and $1,681,603 during the six months ended October 31, 2015 and October 31, 2014, respectively. The Company’s current liabilities exceed its current assets by $5,246,843 as of October 31, 2015.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

There were various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

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NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables)

6 Months Ended

Oct. 31, 2015

Estimated Useful Lives [Member]

NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables) [Line Items]

Property, Plant and Equipment [Table Text Block]

Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

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NOTE B - PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Oct. 31, 2015

Property and Equipment [Member]

NOTE B - PROPERTY AND EQUIPMENT (Tables) [Line Items]

Property, Plant and Equipment [Table Text Block]

Major classes of property and equipment at October 31, 2015 and April 30, 2015 consist of the followings:

	October 31, 2015			April 30, 2015
Computer equipment, software and furniture	$	213,263		$	213,262
Less: accumulated depreciation		(205,025	)		(203,215	)
Net property and equipment	$	8,238		$	10,047

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NOTE C - DISCONTINUED OPERATIONS (Tables) - Consumer Lease and Loan Lines of Business [Member]

6 Months Ended

Oct. 31, 2015

NOTE C - DISCONTINUED OPERATIONS (Tables) [Line Items]

Disposal Groups, Including Discontinued Operations [Table Text Block]

The following table presents summarized operating results for those discontinued operations.

	Six Months Ended
	October 31,			October 31,
	2015			2014
Revenues	$	28,256		$	23,163
Net (loss)	$	(30,446	)	$	(111,017	)

Schedule of Property Subject to or Available for Operating Lease [Table Text Block]

Motorcycles and other vehicles under operating leases at October 31, 2015 and April 30, 2015:

	October 31,			April 30,
	2015			2015
Motorcycles and other vehicles	$	13,261		$	22,086
Less: accumulated depreciation		(10,793	)		(13,456	)
Motorcycles and other vehicles, net of accumulated depreciation		2,468			8,630
Less: estimated reserve for residual values		(1,247	)		(2,436	)
Motorcycles and other vehicles under operating leases, net	$	1,221		$	6,194

Schedule of Short-term Debt [Table Text Block]

	October 31,		April 30,
	2015		2015
Secured, subordinated  individual lender (a)	$	28,992	$	58,037
Secured, subordinated individual lender (b)		12,080		12,080
Total	$	41,072	$	70,117

(a)  The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2015, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2015. The Company is in negotiations with the noteholder to extend the term of this note.  

Schedule of Maturities of Long-term Debt [Table Text Block]

At October 31, 2015, the notes payable mature as follows:

Year ended October 31,	Amount
2016	$	41,072
Total Due	$	41,072

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NOTE D - NOTES PAYABLE (Tables)

6 Months Ended

Oct. 31, 2015

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Schedule of Debt [Table Text Block]

Notes Payable	October 31, 2015			April 30, 2015
Notes convertible at holder’s option (a)	$	2,411,387		$	2,707,080
Notes convertible at Company’s option (b)		171,000			15,000
Notes with interest only convertible at Company’s option (c)		260,000			285,000
Non-convertible notes payable (d)		986,000			393,000
Subtotal		3,828,387			3,400,580
Less, Debt discount		(751,858	)		(762,426	)
Total	$	3,076,528		$	2,638,154

(a)  Notes convertible at holder’s option consists of:

     (i)                            a $815,868, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013;  

 (ii)                           (a) a $40,000 note due August 21, 2016. The Company has recorded a beneficial conversion discount of $28,996 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                          seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 0.66667%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 0.66667%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes;  

 (vi)                          (a) $32,319 outstanding on a $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (c) a $33,000 5% convertible note due August 25, 2017. This is the second tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $9,029 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 44,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (vii)                         (a) a $27,500, 5% convertible note due March 23, 2015, and (b) a $27,500, 5% convertible note due June 15, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $37,729 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (c) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. Subsequent to October 31, 2015 this noteholder forgave the balancer of this note. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $57,200 8% convertible note due January 26, 2016, (b) a $58,000 8% convertible note due May 6, 2016, and (c) a $30,700 8% convertible note due July 8, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 9,821,428 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

 (x)                            (a) $17,617 10% note due October 12, 2016. The Company has recorded a beneficial conversion discount of $17,676 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xi)                           (a) $45,000 outstanding under a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (b) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

 (xiii)                         (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (d) a $22,500, 8% convertible note due July 9, 2016. The Company has recorded a beneficial conversion discount of $15,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”);. The Company has reserved up to 8,900,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (xiv)                         (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) a $50,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (e) $60,007 outstanding on a $100,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $100,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 21,784,111 shares of its common stock for conversion pursuant to the terms of the notes.  

 (xv)                         (a) a $33,000, 8% note due November 25, 2015; (b) a $38,000, 8% note due January 17, 2016; (c) a $33,000, 8% note due February 16, 2016; and (d) a $28,000, 8% note due April 20, 2016. The Company has recorded a beneficial conversion discount of $102,828 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 10,900,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (xvi)                        $21,500 outstanding under a $30,000, 8% note due April 14, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

 (xvii)                       (a) a $25,000, 8% note due April 22, 2016. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”), and (b) a $37,000, 8% note due October 28, 2016. The Company has recorded a beneficial conversion discount of $37,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 34,718,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

 (xviii)                      (a) $6,100 outstanding under a $25,000, 10% note due July 19, 2016 and (b) a $31,900 note due July 28, 2016. The Company has recorded a beneficial conversion discount of $55,549 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,079,404 shares of its common stock for conversion pursuant to the terms of the notes.

 (xix)                         (a) $17,000 outstanding under a $50,000, 8% note due August 21, 2016. The company has recorded a $43,855 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; (b) a $41,000, 8% note due August 21, 2016. The company has recorded a $35,961 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (c) a $58,625, 10% note due October 12, 2016. The company has recorded a $58,625 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 81,000,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (xx)                          (a) $18,125 outstanding under a $25,000, 12% note due October 13, 2016. The company has recorded a $25,000 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $27,500, 12% note due October 13, 2016. The company has recorded a $27,500 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 11,322,600 shares of its common stock for conversion pursuant to the terms of the notes.

 (xxi)                         (a) a $34,267.02, 8% note due April 30, 2016. The company has recorded a $28,185 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate; and (b) a $55,109.48, 8% note due April 30, 2016. The company has recorded a $45,238 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate. The Company has reserved up to 120,000,000 shares of its common stock for conversion pursuant to the terms of the notes.  

(b) Notes convertible at the Company’s option consist of:

 (i)                            (a) a $15,000, note due April 22, 2016, (b) a $25,000, note due June 28, 2016, (c) a $10,000 note due June 25, 2016, (d) a $5,000 note due July 20, 2016, (e) a $6,000 note due July 22, 2016, (f) a $15,000 note due July 30, 2016 and (g) a $15,000 note due September 29, 2016.  All of the notes bear 10% interest and are convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company agreed to issue the Noteholders a total of 190,000 shares of its restricted common stock as an inducement for the loan. If the notes are not paid in full on or before maturity, the Company shall issue the noteholders 1,000 shares of its restricted common stock for each month, or portion thereof, that the notes remains unpaid.  

 (ii)                           $80,000 in one year 10% notes maturing in July 2016, issued by our subsidiary, Specialty Reports, Inc., convertible at the option of the issuer into the issuer’s common stock at the conversion price of $3.00 per share.

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                            a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share; 

 (iii)                          a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period; and

 (iv)                          a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan. The Company is in discussions with this lender to extend the due date of the note. 

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015. The Company is in discussions with this lender to extend the due date of the note;

 (iii)                          a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note;

 (iv)                          a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016; a $50,000 , 10% note due April 29, 2016; a $50,000, 10% note due May 4, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $50,000, 10% note due May 17, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $25,000, 10% note due May 28, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan,  a $50,000, 10% note due June 23, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $22,500, 10% note due July 7, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, a $20,000, 10% note due July 13, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, and a $25,000, 10% note due July 30, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan, and $93,000 in advances to the Company in August 2015 the terms of which are under negotiation.

 (v)                           a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan. The Company is in discussions with this lender to extend the due date of the note;

 (vi)                          a $33,500, 10% note due April 30, 2016. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (vii)                         a $32,000, 10% note due May 8, 2016. The Company agreed to issue 64,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid, a $15,000, 10% note due February 12, 2016. The Company agreed to issue 75,000 shares of restricted common stock as an inducement for the loan and pay the holder 10,000 shares per month for each month or fraction thereof the note remains unpaid, and a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

 (viii)                        a $20,000, 10% note due May 8, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (ix)                          a $25,000, 10% note due August 21, 2016.The Company agreed to issue 62,500 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

     (x)                           a $10,000, 10% note due October 31, 2015.The Company agreed to issue 500,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to Five Hundred ($500) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default, and a $25,000, 10% note due October 21, 2016.The Company agreed to issue 1,000,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default;

 (xi)                          a $50,000, 10% note due October 19, 2016. The Company agreed to issue 300,000 shares of   restricted common stock as an inducement for the loan and pay the holder 200,000 shares of common stock if the loan is not paid when due. The Company is in discussions with this lender to extend the due date of the note a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;

 (xii)                         a $10,000, 20% note due October 5, 2016. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date and amend the terms of this note; and

 (xiii)                        a $10,000, 10% note due November 28, 2015. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 500,000 shares per month for each month or fraction thereof the note remains unpaid.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The value of the derivative liability was re-assessed as of October 31, 2015 resulting in a gain to the consolidated statements of operations of $80,095 and $8,704 for the six months ended October31, 2015 and 2014, respectively.

	October 31, 2015
Opening balance, April 30, 2015	$	1,605,535
Derivative liability reclassified to additional paid in capital		(1,029,765	)
Derivative financial liability arising on the issue of convertible notes		1,022,187
Fair value adjustments		80,095
Closing balance	$	1,678,052

Warrant [Member]

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The change in fair value of the derivative liabilities of warrants outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.01	%	to	1.29	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.01	year	to	4.10	years

Debt [Member]

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The change in fair value of the derivative liabilities of convertible notes outstanding at October 31, 2015 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.06	%	to	0.65	%
Expected stock price volatility					251	%
Expected dividend payout					0
Expected options life in years	Ranging from	.20	year	to	1.8	years

XML

NOTE G - NONCONTROLLING INTEREST (Tables)

6 Months Ended

Oct. 31, 2015

Noncontrolling Interest [Abstract]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

For the six months ended October 31, 2015, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2015	$	652,348
Sale of preferred stock		50,000
Non-controlling interest’s share of profits		16,754
Balance at October 31, 2015	$	719,103

XML

NOTE H - FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Oct. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The table below summarizes the fair values of financial liabilities as of October 31, 2015:

			Fair Value Measurement Using
	Fair Value at  October 31,  2015		Level 1		Level 2		Level 3
Derivative liabilities	$	1,678,052		-		-	$	1,678,052

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

Changes in Derivative liability during the six months ended October 31, 2015 were:

			New Additions		Decrease
	April 30,		During		in Fair		October 31,
	2015		Period		Value		2015
Derivative liability	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052
Total	$	1,605,535	$	1,800,336	$	(1,727,819)	$	1,678,052

XML

NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) [Line Items]
Advertising Expense	$ 251	$ 0	$ 1,301	$ 3,819
Earnings Per Share, Basic and Diluted (in Dollars per share)	$ (0.02)	$ (0.05)	$ (0.04)	$ (0.07)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)			304,617,676	5,586,766
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (1,151,811)	$ (1,161,575)	$ (2,683,520)	$ (1,681,603)
Working Capital (Deficit)	$ (5,246,843)		$ (5,246,843)
Minimum [Member]
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			3 years
Maximum [Member]
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			5 years

XML

NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property and Equipment	6 Months Ended
	Oct. 31, 2015
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Website Costs [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	5 years

XML

NOTE B - PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization	$ 753	$ 897	$ 1,810	$ 1,793

XML

NOTE B - PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Schedule of Property and Equipment [Abstract]
Computer equipment, software and furniture	$ 213,263	$ 213,262
Less: accumulated depreciation	(205,025)	(203,215)
Net property and equipment	$ 8,237	$ 10,047

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - USD ($)			1 Months Ended	6 Months Ended		12 Months Ended
	Jan. 31, 2014	Oct. 31, 2008	Apr. 30, 2009	Oct. 31, 2015	Oct. 31, 2014	Apr. 30, 2015	Apr. 30, 2014
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Depreciation and Amortization, Discontinued Operations				$ 2,474	$ 10,902
Inventory Write-down						$ 0
Payments to Acquire Property, Plant, and Equipment				0	$ 0
Consumer Lease and Loan Lines of Business [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net				$ 1,510		8,744
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Interest Rate, Effective Percentage				15.29%
Property, Plant and Equipment, Additions		$ 100,000
Payments to Acquire Property, Plant, and Equipment		80,000	$ 10,000
Other Accrued Liabilities							$ 10,000
Debt Instrument, Face Amount		150,000
Proceeds from Secured Notes Payable		$ 100,000
Debt Instrument, Maturity Date		May 01, 2015
Debt Conversion, Converted Instrument, Amount	$ 50,000
Debt Conversion, Converted Instrument, Shares Issued (in Shares)	60,606
Disposal Group, Including Discontinued Operation, Other Liabilities				$ 12,080
Vehicles [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Depreciation and Amortization, Discontinued Operations				$ 2,474		$ 28,736
Minimum [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Term				1 year
Maximum [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Term				5 years

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Abstract]
Revenues			$ 28,256	$ 23,163
Net (loss)	$ (17,898)	$ (16,653)	$ (30,446)	$ (111,017)

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Property Subject to or Available for Operating Lease - Consumer Lease and Loan Lines of Business [Member] - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Property Subject to or Available for Operating Lease [Line Items]
Motorcycles and other vehicles	$ 13,261	$ 22,086
Less: accumulated depreciation	(10,793)	(13,456)
Motorcycles and other vehicles, net of accumulated depreciation	2,468	8,630
Less: estimated reserve for residual values	(1,247)	(2,436)
Motorcycles and other vehicles under operating leases, net	$ 1,221	$ 6,194

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Short-term Debt - USD ($)		Oct. 31, 2015	Apr. 30, 2015
Short-term Debt [Line Items]
Senior subordinated notes		$ 41,072	$ 70,117
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes		41,072	70,117
RISCs and Leases Financed Through Third Parties [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes	[1]	28,992	58,037
Senior Note to Purchase Portfolio [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes	[2]	$ 12,080	$ 12,080

[1] The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at October 31, 2015 is 15.29%.

[2] On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases ("Purchased Portfolio") for a total purchase price of $100,000. The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of October 31, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 ("Senior Secured Note") in exchange for $100,000 from the holder. Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009 which was extended to May 1, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2015, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company's restricted common stock. The note, which had an outstanding balance of $12,080 at October 31, 2015. The Company is in negotiations with the noteholder to extend the term of this note.

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt - Consumer Lease and Loan Lines of Business [Member]	Oct. 31, 2015 USD ($)
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt [Line Items]
2016	$ 41,072
Total Due	$ 41,072

XML

NOTE D - NOTES PAYABLE (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 31, 2015 USD ($) $ / shares shares	Oct. 31, 2014 USD ($)	Oct. 31, 2015 USD ($) $ / shares shares	Oct. 31, 2014 USD ($)	Apr. 30, 2015 USD ($)	Apr. 30, 2014 USD ($)	Apr. 30, 2013 USD ($)	Apr. 30, 2012 USD ($)
NOTE D - NOTES PAYABLE (Details) [Line Items]
Proceeds from Convertible Debt			$ 1,659,518	$ 485,000
Amortization of Debt Discount (Premium)	$ 508,709	$ 189,324	931,175	314,065	$ 1,013,934
Derivative, Gain (Loss) on Derivative, Net	155,560	$ (203,825)	80,095	$ 8,704
Note Convertible at Holder's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 815,868		$ 815,868
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 30, 2014
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.495		$ 0.495
Debt Instrument, Convertible, Beneficial Conversion Feature							$ 663,403
Note Convertible at Holder's Option #2 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 40,000		$ 40,000
Debt Instrument, Maturity Date			Aug. 21, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 28,996
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	25,000,000		25,000,000
Debt Instrument, Default Interest Rate, Percentage	18.00%		18.00%
Note Convertible at Holder's Option #3-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%		12.00%
Debt Instrument, Maturity Date			May 27, 2014
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.59		$ 0.59
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			5,000
Note Convertible at Holder's Option #3-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%		12.00%
Debt Instrument, Maturity Date			Mar. 20, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.59		$ 0.59
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			10,000
Note Convertible at Holder's Option #3 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature						$ 50,000
Debt Instrument, Convertible, Terms of Conversion Feature			If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.
Note Convertible at Holder's Option #4 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 118,250		$ 118,250
Debt Instrument, Maturity Date			Aug. 15, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.25		$ 0.25
Debt Instrument, Convertible, Beneficial Conversion Feature								$ 5,340
Number of Notes			7
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum			15.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum			20.00%
Accrued Interest, Monthly Compounding Interest Rate			0.66667%
Debt Default, Short-term Debt, Amount	$ 25,000		$ 25,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			667
Note Convertible at Holder's Option #5 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 106,250		$ 106,250
Debt Instrument, Maturity Date			Aug. 15, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.25		$ 0.25
Debt Instrument, Convertible, Beneficial Conversion Feature								$ 6,120
Debt Instrument, Convertible, Terms of Conversion Feature			0.66667%
Number of Notes			3
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum			20.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum			25.00%
Note Convertible at Holder's Option #6-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 59,000		$ 59,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Dec. 16, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 29,333
Debt Instrument, Convertible, Terms of Conversion Feature			The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Convertible Notes Payable	$ 32,319		$ 32,319
Note Convertible at Holder's Option #6-A [Member] | Convertible Notes Payable [Member] | Debt Instrument, Final Tranche [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	165,000		165,000
Note Convertible at Holder's Option #6-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Feb. 25, 2017
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 21,079
Debt Instrument, Convertible, Terms of Conversion Feature			The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Note Convertible at Holder's Option #6-B [Member] | Convertible Notes Payable [Member] | Debt Instrument, Tranche One [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 165,000		$ 165,000
Note Convertible at Holder's Option #6-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 165,000		$ 165,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Aug. 25, 2017
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 9,029
Debt Instrument, Convertible, Terms of Conversion Feature			The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	44,000,000		44,000,000
Proceeds from Convertible Debt			$ 33,000
Note Convertible at Holder's Option #7-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Mar. 23, 2015
Note Convertible at Holder's Option #7-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Jun. 15, 2016
Note Convertible at Holder's Option #7 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature						37,729
Debt Instrument, Convertible, Terms of Conversion Feature			The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	8,750,000		8,750,000
Debt Instrument, Description			This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.
Debt Instrument, Payment Terms			The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.
Debt Instrument, Maturity Date, Description			The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.
Note Convertible at Holder's Option #7-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 13,900		$ 13,900
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jun. 01, 2014
Convertible Notes Payable, Current	$ 490		$ 490
Note Convertible at Holder's Option #8-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 57,200		$ 57,200
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jan. 26, 2016
Note Convertible at Holder's Option #8-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 58,000		$ 58,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			May 06, 2016
Note Convertible at Holder's Option #8-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,700		$ 30,700
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jul. 08, 2016
Note Convertible at Holder's Option #8 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 100,699
Debt Instrument, Convertible, Terms of Conversion Feature			The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion.
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	9,821,428		9,821,428
Debt Instrument, Default Interest Rate, Percentage	15.00%		15.00%
Note Convertible at Holder's Option #9 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			Apr. 15, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature						$ 35,816
Debt Instrument, Default Interest Rate, Percentage	18.00%		18.00%
Note Convertible at Holder's Option #9 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			62,500
Note Convertible at Holder's Option #10 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 17,617		$ 17,617
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Oct. 12, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 17,676
Debt Instrument, Convertible, Terms of Conversion Feature			The notes are convertible at the note holder’s option at a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	25,000,000		25,000,000
Note Convertible at Holder's Option #11-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,125		$ 55,125
Debt Instrument, Maturity Date			Dec. 09, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 55,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #11-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 52,500		$ 52,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 52,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	7,094,000		7,094,000
Note Convertible at Holder's Option #12 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Dec. 15, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 39,400
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #13-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Feb. 02, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 22,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,250		$ 27,250
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jul. 09, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 15,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	8,900,000		8,900,000
Note Convertible at Holder's Option #14-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Feb. 02, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #14-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 22,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #14-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,250		$ 27,250
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #14-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jun. 02, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 50,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Convertible Notes Payable	$ 50,000		$ 50,000
Note Convertible at Holder's Option #14-E [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 100,000		$ 100,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jun. 02, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 100,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Convertible Notes Payable	$ 60,007		$ 60,007
Note Convertible at Holder's Option #14 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	21,784,111		21,784,111
Note Convertible at Holder's Option #15-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,000		$ 33,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Nov. 25, 2015
Note Convertible at Holder's Option #15-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 38,000		$ 38,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jan. 17, 2016
Note Convertible at Holder's Option #15-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,000		$ 33,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Feb. 16, 2016
Note Convertible at Holder's Option #15-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 28,000		$ 28,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 20, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 102,828
Debt Instrument, Convertible, Terms of Conversion Feature			The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #15 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	10,900,000		10,900,000
Debt Instrument, Default Interest Rate, Percentage	22.00%		22.00%
Note Convertible at Holder's Option #16 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000		$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 14, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The notes are convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	4,999,000		4,999,000
Debt Instrument, Default Interest Rate, Percentage	22.00%		22.00%
Convertible Notes Payable	$ 21,500		$ 21,500
Note Convertible at Holder's Option #17-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 22, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 19,723
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #17-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 37,000		$ 37,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Oct. 28, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 37,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #17 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	34,718,000		34,718,000
Debt Instrument, Default Interest Rate, Percentage	22.00%		22.00%
Note Convertible at Holder's Option #18-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jul. 19, 2016
Convertible Notes Payable	$ 6,100		$ 6,100
Note Convertible at Holder's Option #18-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 31,900		$ 31,900
Debt Instrument, Maturity Date			Jul. 28, 2016
Note Convertible at Holder's Option #18 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 55,549
Debt Instrument, Convertible, Terms of Conversion Feature			The notes are convertible at the note holder’s option at a variable conversion of 58% multiplied by lowest closing price in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	1,079,404		1,079,404
Note Convertible at Holder's Option #19-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Aug. 21, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 43,855
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate
Convertible Notes Payable	$ 17,000		$ 17,000
Note Convertible at Holder's Option #19-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 41,000		$ 41,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Aug. 21, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 35,961
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate
Note Convertible at Holder's Option #19-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 58,625		$ 58,625
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Oct. 12, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 58,625
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate.
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	81,000,000		81,000,000
Note Convertible at Holder's Option #20-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%		12.00%
Debt Instrument, Maturity Date			Oct. 13, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 25,000
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate
Convertible Notes Payable	$ 18,125		$ 18,125
Note Convertible at Holder's Option #20-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	12.00%		12.00%
Debt Instrument, Maturity Date			Oct. 13, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate.
Note Convertible at Holder's Option #20 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	11,322,600		11,322,600
Note Convertible at Holder's Option #21-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 34,267.02		$ 34,267.02
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 30, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 28,185
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate
Note Convertible at Holder's Option #21-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,109.48		$ 55,109.48
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Apr. 30, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 45,238
Debt Instrument, Convertible, Terms of Conversion Feature			The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate
Note Convertible at Holder's Option #21 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	120,000,000		120,000,000
Note Convertible at Company's Option #1-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000		$ 15,000
Debt Instrument, Maturity Date			Apr. 22, 2016
Note Convertible at Company's Option #1-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	25,000		$ 25,000
Debt Instrument, Maturity Date			Jun. 28, 2016
Note Convertible at Company's Option #1-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	10,000		$ 10,000
Debt Instrument, Maturity Date			Jun. 25, 2016
Note Convertible at Company's Option #1-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	5,000		$ 5,000
Debt Instrument, Maturity Date			Jul. 20, 2016
Note Convertible at Company's Option #1-E [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	6,000		$ 6,000
Debt Instrument, Maturity Date			Jul. 22, 2016
Note Convertible at Company's Option #1-F [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	15,000		$ 15,000
Debt Instrument, Maturity Date			Jul. 30, 2016
Note Convertible at Company's Option #1-G [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000		$ 15,000
Debt Instrument, Maturity Date			Sep. 29, 2016
Note Convertible at Company's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Convertible, Terms of Conversion Feature			convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days.
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			190,000
Debt Default, Short-term Debt, Description of Violation or Event of Default			If the notes are not paid in full on or before maturity, the Company shall issue the noteholders 1,000 shares of its restricted common stock for each month, or portion thereof, that the notes remains unpaid.
Note Convertible at Company's Options #2 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 80,000		$ 80,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 3.00		$ 3.00
Debt Instrument, Maturity Date, Description			July 2016
Debt Instrument, Term			1 year
Convertible Notes with Interest Only, Convertible at Company's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	22.00%		22.00%
Debt Instrument, Maturity Date			May 31, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 1.50		$ 1.50
Convertible Notes with Interest Only, Convertible at Company's Option #2 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Maturity Date			Oct. 31, 2013
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 1.50		$ 1.50
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			3,333
Convertible Notes with Interest Only, Convertible at Company's Option #3 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 210,000		$ 210,000
Debt Instrument, Interest Rate, Stated Percentage	12.462%		12.462%
Debt Instrument, Maturity Date			Apr. 30, 2014
Debt Instrument, Payment Terms			Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period
Convertible Notes with Interest Only, Convertible at Company's Option #4 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000		$ 15,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Debt Instrument, Maturity Date			May 31, 2015
Stock Issued During Period, Shares, Other (in Shares) | shares			5,000
Note Payable #1 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Maturity Date			May 31, 2015
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			1,000
Note Payable #2 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 75,000		$ 75,000
Debt Instrument, Interest Rate, Stated Percentage	20.00%		20.00%
Debt Instrument, Maturity Date			Sep. 18, 2015
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	2,519,597		2,519,597
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			106,700
Debt Instrument, Maturity Date, Description			extend the maturity date of the note from March 18, 2015 to September 18, 2015
Stock Issued During Period, Shares, Other (in Shares) | shares			417,891
Note Payable #3 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000		$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Dec. 31, 2014
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			10,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			1,000
Note Payable #4-A [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 100,000		$ 100,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%		8.00%
Debt Instrument, Maturity Date			Jul. 31, 2016
Debt Instrument, Collateral Amount	$ 76,610		$ 76,610
Note Payable #4-B [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000		$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Apr. 20, 2016
Note Payable #4-C [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Apr. 22, 2016
Note Payable #4-D [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Apr. 29, 2016
Note Payable #4-E [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			May 04, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			125,000
Note Payable #4-F [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			May 17, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			125,000
Note Payable #4-G [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			62,500
Note Payable #4-G [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			May 28, 2016
Note Payable #4-H [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jun. 23, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			125,000
Note Payable #4-I [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jul. 07, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			56,250
Note Payable #4-J [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 20,000		$ 20,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jul. 13, 2016
Note Payable #4-K [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jul. 30, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			62,500
Note Payable #4-L [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Proceeds from Convertible Debt			$ 93,000
Note Payable #5 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	20.00%		20.00%
Debt Instrument, Maturity Date			Sep. 18, 2015
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	1,672,241		1,672,241
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			272,331
Note Payable #6 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,500		$ 33,500
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Apr. 30, 2016
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			1,000
Note Payable #7-A [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 32,000		$ 32,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			May 08, 2016
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	64,000		64,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			1,000
Note Payable #7-B [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000		$ 15,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Feb. 12, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			75,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			10,000
Note Payable #7-C [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jan. 21, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			50,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			13,334
Note Payable #8 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 20,000		$ 20,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			May 08, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			50,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares			1,000
Note Payable #9 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Aug. 21, 2016
Debt Instrument, Payment Terms			pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day).
Note Payable #10-A [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Oct. 31, 2015
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			500,000
Debt Instrument, Payment Terms			pay the holder such number of shares of the Company’s restricted common stock which equal to Five Hundred ($500) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day)
Note Payable #10-B [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Oct. 21, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			1,000,000
Debt Instrument, Payment Terms			pay the holder such number of shares of the Company’s restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day)
Note Payable #11-A [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Oct. 19, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			300,000
Debt Instrument, Payment Terms			pay the holder 200,000 shares of common stock if the loan is not paid when due
Note Payable 11-B [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Jan. 21, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			50,000
Debt Instrument, Payment Terms			pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid
Note Payable #12 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	20.00%		20.00%
Debt Instrument, Maturity Date			Oct. 05, 2016
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			200,000
Debt Instrument, Payment Terms			pay the holder 1,000,000 shares per month for each month or fraction thereof the note remains unpaid
Note Payable #13 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Maturity Date			Nov. 28, 2015
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares			200,000
Debt Instrument, Payment Terms			pay the holder 500,000 shares per month for each month or fraction thereof the note remains unpaid

XML

NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble - USD ($)		Oct. 31, 2015	Apr. 30, 2015
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross		$ 3,828,387	$ 3,400,580
Less, Debt discount		(751,858)	(762,426)
Total		3,076,528	2,638,154
Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[1]	986,000	393,000
Note Convertible at Holder's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[2]	2,411,387	2,707,080
Note Convertible at Company's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[3]	171,000	15,000
Note with Interest Only, Convertible at Company's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[4]	$ 260,000	$ 285,000

[1] Non-convertible notes consist of: (i) a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note; (ii) a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company's restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015. The Company is in discussions with this lender to extend the due date of the note; (iii) a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date of the note; (iv) a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company's landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016; a $50,000 , 10% note due April 29, 2016; a $50,000, 10% note due May 4, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $50,000, 10% note due May 17, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $25,000, 10% note due May 28, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan, a $50,000, 10% note due June 23, 2016, the Company issued this noteholder 125,000 shares of restricted common stock as an inducement for the loan, a $22,500, 10% note due July 7, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, a $20,000, 10% note due July 13, 2016, the Company issued this noteholder 56,250 shares of restricted common stock as an inducement for the loan, and a $25,000, 10% note due July 30, 2016, the Company issued this noteholder 62,500 shares of restricted common stock as an inducement for the loan, and $93,000 in advances to the Company in August 2015 the terms of which are under negotiation. (v) a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company's restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan. The Company is in discussions with this lender to extend the due date of the note; (vi) a $33,500, 10% note due April 30, 2016. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid; (vii) a $32,000, 10% note due May 8, 2016. The Company agreed to issue 64,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid, a $15,000, 10% note due February 12, 2016. The Company agreed to issue 75,000 shares of restricted common stock as an inducement for the loan and pay the holder 10,000 shares per month for each month or fraction thereof the note remains unpaid, and a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid;(viii) a $20,000, 10% note due May 8, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid; (ix) a $25,000, 10% note due August 21, 2016.The Company agreed to issue 62,500 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company's restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default; (x) a $10,000, 10% note due October 31, 2015.The Company agreed to issue 500,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company's restricted common stock which equal to Five Hundred ($500) dollars determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default, and a $25,000, 10% note due October 21, 2016.The Company agreed to issue 1,000,000 shares of restricted common stock as an inducement for the loan and pay the holder such number of shares of the Company's restricted common stock which equal to one thousand ($1,000) dollars determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 1st trading day of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under this Paragraph, the Note shall be considered past due but not in default; (xi) a $50,000, 10% note due October 19, 2016. The Company agreed to issue 300,000 shares of restricted common stock as an inducement for the loan and pay the holder 200,000 shares of common stock if the loan is not paid when due. The Company is in discussions with this lender to extend the due date of the note a $10,000, 10% note due January 21, 2016. The Company agreed to issue 50,000 shares of restricted common stock as an inducement for the loan and pay the holder 13,334 shares per month for each month or fraction thereof the note remains unpaid; (xii) a $10,000, 20% note due October 5, 2016. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000,000 shares per month for each month or fraction thereof the note remains unpaid. The Company is in discussions with this lender to extend the due date and amend the terms of this note; and(xiii) a $10,000, 10% note due November 28, 2015. The Company agreed to issue 200,000 shares of restricted common stock as an inducement for the loan and pay the holder 500,000 shares per month for each month or fraction thereof the note remains unpaid.

[2] Notes convertible at holder's option consists of: (i) a $815,868, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder's option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013; (ii) (a) a $40,000 note due August 21, 2016. The Company has recorded a beneficial conversion discount of $28,996 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion prices such that during the period during which the note is outstanding, the note convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; (iii) (a) a $25,000, 12% convertible debenture due May 27, 2014 (the "Debenture"). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder's option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company's restricted common stock or (ii) the number of shares of the Company's restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default. (iv) seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 0.66667%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes; (v) three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 0.66667%, all of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes the Company is in negotiations with the noteholder to extend the due date of the notes; (vi) (a) $32,319 outstanding on a $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (c) a $33,000 5% convertible note due August 25, 2017. This is the second tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $9,029 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 44,000,000 shares of its common stock for conversion pursuant to the terms of the notes. (vii) (a) a $27,500, 5% convertible note due March 23, 2015, and (b) a $27,500, 5% convertible note due June 15, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable. The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $37,729 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (c) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. Subsequent to October 31, 2015 this noteholder forgave the balancer of this note. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes (viii) (a) a $57,200 8% convertible note due January 26, 2016, (b) a $58,000 8% convertible note due May 6, 2016, and (c) a $30,700 8% convertible note due July 8, 2016. The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 9,821,428 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full; (ix) a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at the rate of 1.5 shares of common stock for each dollar converted. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and (x) (a) $17,617 10% note due October 12, 2016. The Company has recorded a beneficial conversion discount of $17,676 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 25,000,000 shares of its common stock for conversion pursuant to the terms of the notes. (xi) (a) $45,000 outstanding under a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); and (b) a $52,500, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate").The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. (xii) a $50,000, 10% convertible note due December 15, 2015. The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes. The note is convertible at the note holder's option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). (xiii) (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (b) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); and (d) a $22,500, 8% convertible note due July 9, 2016. The Company has recorded a beneficial conversion discount of $15,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate");. The Company has reserved up to 8,900,000 shares of its common stock for conversion pursuant to the terms of the notes. (xiv) (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (b) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (c) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (d) a $50,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); and (e) $60,007 outstanding on a $100,000, 8% convertible note due June 2, 2016. The Company has recorded a beneficial conversion discount of $100,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 21,784,111 shares of its common stock for conversion pursuant to the terms of the notes. (xv) (a) a $33,000, 8% note due November 25, 2015; (b) a $38,000, 8% note due January 17, 2016; (c) a $33,000, 8% note due February 16, 2016; and (d) a $28,000, 8% note due April 20, 2016. The Company has recorded a beneficial conversion discount of $102,828 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 10,900,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full; (xvi) $21,500 outstanding under a $30,000, 8% note due April 14, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full. (xvii) (a) a $25,000, 8% note due April 22, 2016. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"), and (b) a $37,000, 8% note due October 28, 2016. The Company has recorded a beneficial conversion discount of $37,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 34,718,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note paid in full. (xviii) (a) $6,100 outstanding under a $25,000, 10% note due July 19, 2016 and (b) a $31,900 note due July 28, 2016. The Company has recorded a beneficial conversion discount of $55,549 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion of 58% multiplied by lowest closing price in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 1,079,404 shares of its common stock for conversion pursuant to the terms of the notes. (xix) (a) $17,000 outstanding under a $50,000, 8% note due August 21, 2016. The company has recorded a $43,855 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate; (b) a $41,000, 8% note due August 21, 2016. The company has recorded a $35,961 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate; and (c) a $58,625, 10% note due October 12, 2016. The company has recorded a $58,625 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate. The Company has reserved up to 81,000,000 shares of its common stock for conversion pursuant to the terms of the notes. (xx) (a) $18,125 outstanding under a $25,000, 12% note due October 13, 2016. The company has recorded a $25,000 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate; and (b) a $27,500, 12% note due October 13, 2016. The company has recorded a $27,500 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate. The Company has reserved up to 11,322,600 shares of its common stock for conversion pursuant to the terms of the notes. (xxi) (a) a $34,267.02, 8% note due April 30, 2016. The company has recorded a $28,185 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest closing prices in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate; and (b) a $55,109.48, 8% note due April 30, 2016. The company has recorded a $45,238 a beneficial conversion discount for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest closing price in the fourteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate. The Company has reserved up to 120,000,000 shares of its common stock for conversion pursuant to the terms of the notes.

[3] Notes convertible at the Company's option consist of: (i) (a) a $15,000, note due April 22, 2016, (b) a $25,000, note due June 28, 2016, (c) a $10,000 note due June 25, 2016, (d) a $5,000 note due July 20, 2016, (e) a $6,000 note due July 22, 2016, (f) a $15,000 note due July 30, 2016 and (g) a $15,000 note due September 29, 2016. All of the notes bear 10% interest and are convertible at the Company's option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company's common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company agreed to issue the Noteholders a total of 190,000 shares of its restricted common stock as an inducement for the loan. If the notes are not paid in full on or before maturity, the Company shall issue the noteholders 1,000 shares of its restricted common stock for each month, or portion thereof, that the notes remains unpaid. (ii) $80,000 in one year 10% notes maturing in July 2016, issued by our subsidiary, Specialty Reports, Inc., convertible at the option of the issuer into the issuer's common stock at the conversion price of $3.00 per share.

[4] Notes with interest only convertible at Company's option consist of: (i) a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company's option at $1.50 per share; (ii) a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company's option and on the $25,000 note at the holder's option in cash or in shares at the rate of $1.50 per share; (iii) a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company's options calculated as the volume weighted average price of the Company's common stock for the ten day trading period immediately preceding the last day of each three month period; and (iv) a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan. The Company is in discussions with this lender to extend the due date of the note.

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NOTE D - NOTES PAYABLE (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - Warrant [Member]	6 Months Ended
	Oct. 31, 2015
Minimum [Member]
Significant Assumptions:
Risk free interest rate	0.01%
Expected options life in years	3 days
Maximum [Member]
Significant Assumptions:
Risk free interest rate	1.29%
Expected stock price volatility	251.00%
Expected dividend payout	0.00%
Expected options life in years	4 years 36 days

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NOTE D - NOTES PAYABLE (Details) - Schedule of Fair Value of Convertible Notes - Debt [Member]	6 Months Ended
	Oct. 31, 2015
Minimum [Member]
Significant Assumptions:
Risk free interest rate	0.06%
Expected options life in years	73 days
Maximum [Member]
Significant Assumptions:
Risk free interest rate	0.65%
Expected stock price volatility	251.00%
Expected dividend payout	0.00%
Expected options life in years	1 year 292 days

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NOTE D - NOTES PAYABLE (Details) - Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation	6 Months Ended
	Oct. 31, 2015 USD ($)
Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
Derivative Liability	$ 1,605,535
Derivative liability reclassified to additional paid in capital	(1,029,765)
Derivative financial liability arising on the issue of convertible notes	1,022,187
Fair value adjustments	80,095
Derivative Liability	$ 1,678,052

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NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Related Party Transactions [Abstract]
Due to Related Parties, Noncurrent	$ 395,853	$ 385,853

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NOTE F - EQUITY TRANSACTIONS (Details)		6 Months Ended
	May. 18, 2014	Oct. 31, 2015 USD ($) $ / shares shares	Apr. 30, 2015 USD ($) $ / shares shares
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Stockholders' Equity, Reverse Stock Split	one for seventy-five
Preferred Stock, Shares Authorized		10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Common Stock, Shares Authorized		750,000,000	750,000,000
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Common Stock, Shares, Outstanding		134,865,129	43,238,320
Common Stock, Shares, Issued		134,865,129	43,238,320
Allocated Share-based Compensation Expense (in Dollars) | $		$ 91,504
Stock Issued During Period, Value, New Issues (in Dollars) | $		20,000
Stock Issued During Period, Value, Issued for Services (in Dollars) | $		$ 120,527
Stock Issued which were Classified as to be Issued at April 30, 2015 [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues		4,005,396
Stock Issued for Cash [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues		760,456
Stock Issued During Period, Value, New Issues (in Dollars) | $		$ 20,000
Stock Issued to Consultants [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services		10,066,000
Stock Issued During Period, Value, Issued for Services (in Dollars) | $		$ 120,527
Stock Issued to Employees Pursuant to Vesting of Prior Stock Awards [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		35,056
Number of employees		3
Series A Preferred Stock [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Preferred Stock, Shares Authorized		35,850	35,850
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 100	$ 100
Preferred Stock, Shares Issued		125	125
Preferred Stock, Shares Outstanding		125	125
Dividends Payable (in Dollars) | $		$ 7,944	$ 7,562
Series B Preferred Stock [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Preferred Stock, Shares Authorized		1,000	1,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ / shares		$ 10,000
Preferred Stock, Shares Issued		0	0
Preferred Stock, Shares Outstanding		0	0
Series C Preferred Stock [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Preferred Stock, Shares Authorized		200,000	200,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ / shares		$ 10
Preferred Stock, Shares Issued		0	0
Preferred Stock, Shares Outstanding		0	0
Conversion of Convertible Notes, Principal [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued		73,480,530
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 705,574
Conversion of Convertible Notes, Interest [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued		4,386,240
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 30,623
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE F - EQUITY TRANSACTIONS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued		3,309,433
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 48,840

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NOTE G - NONCONTROLLING INTEREST (Details) - Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Abstract]
Balance			$ 652,348
Sale of preferred stock			50,000
Non-controlling interest’s share of profits	$ 12,491	$ (7,460)	16,754	$ (19,251)
Balance	$ 719,103		$ 719,103

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NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($)	Oct. 31, 2015	Apr. 30, 2015
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liabilities	$ 1,678,052	$ 1,605,535
Fair Value, Inputs, Level 1 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liabilities	0
Fair Value, Inputs, Level 2 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liabilities	0
Fair Value, Inputs, Level 3 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liabilities	$ 1,678,052	$ 1,605,535

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NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Changes in Derivative Liability	6 Months Ended
	Oct. 31, 2015 USD ($)
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Changes in Derivative Liability [Line Items]
Derivative Liability	$ 1,605,535
Derivative Liability	1,678,052
Fair Value, Inputs, Level 3 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Changes in Derivative Liability [Line Items]
Derivative Liability	1,605,535
Derivative Liability, Increase During Period	1,800,336
Derivative Liability, Decrease in Fair Value	(1,727,819)
Derivative Liability	$ 1,678,052

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NOTE I - NON-CASH FINANCIAL INFORMATION (Details)	6 Months Ended
	Oct. 31, 2015 USD ($) shares
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	3,309,433
Debt Conversion, Original Debt, Amount (in Dollars) | $	$ 48,840
Stock Issued for Accounts Payable [Member]
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	340,000
Debt Conversion, Original Debt, Amount (in Dollars) | $	$ 14,450
Conversion of Convertible Notes and Accrued Interest [Member]
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	73,140,530
Debt Conversion, Original Debt, Amount (in Dollars) | $	$ 691,124
Stock Issued to Employees Pursuant to Vesting of Prior Stock Awards [Member]
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	35,056
Number of employees	3
Common Stock To Be Issued [Member]
NOTE I - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Stock Issued During Period, Shares, New Issues	4,005,396

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NOTE J - SUBSEQUENT EVENTS (Details)	1 Months Ended	6 Months Ended
	Dec. 11, 2015 USD ($) shares	Oct. 31, 2015 USD ($) shares
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Value, Issued for Services (in Dollars) | $		$ 120,527
Common Stock To Be Issued [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues		4,005,396
Stock Issued to Consultants [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services		10,066,000
Stock Issued During Period, Value, Issued for Services (in Dollars) | $		$ 120,527
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued		3,309,433
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 48,840
Subsequent Event [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars) | $	$ 69,000
Number of Accredited Investors	4
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Subsequent Event [Member] | Common Stock To Be Issued [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues	2,543,737
Subsequent Event [Member] | Stock Issued to Consultants [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services	5,165,000
Stock Issued During Period, Value, Issued for Services (in Dollars) | $	$ 19,369
Subsequent Event [Member] | Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	6,051,980
Debt Conversion, Original Debt, Amount (in Dollars) | $	$ 52,000
Stock Issued During Period, Shares, Other	2,000,000
Convertible Notes Payable [Member] | Subsequent Event [Member]
NOTE J - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	37,633,885
Debt Conversion, Original Debt, Amount (in Dollars) | $	$ 122,762

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NOTE K - GOING CONCERN MATTERS (Details) - USD ($)	Oct. 31, 2015	Apr. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Retained Earnings (Accumulated Deficit)	$ (51,879,110)	$ (49,178,453)
Working Capital (Deficit)	$ (5,246,843)

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NOTE L - LEGAL PROCEEDINGS (Details) $ in Millions	6 Months Ended
	Oct. 31, 2015 USD ($)
Disclosure Text Block Supplement [Abstract]
Loss Contingency, Damages Sought, Value	$ 2