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

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

 

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

 

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