Intangible Assets

9 Months Ended

Jan. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

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

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

The Company’s intangibles assets consisted of the following:

	Estimated useful life	As of January 31, 2016			As of April 30, 2015
Patent rights	15 years	$	2,223,686		$	2,223,686
Less: accumulated amortization			(110,632	)		(20,293	)
Intangible assets, net		$	2,113,054		$	2,203,393

The Company recorded amortization expense of $30,113 and $0 for the three months ended January 31, 2016 and 2015, respectively, and recorded amortization expense of $90,339 and $0 for the nine months ended January 31, 2016 and 2015, respectively.

As of April 30, 2015 and January 31, 2016, the Company performed an impairment assessment on the intangible assets and no impairment was noted.

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

April 30,
2016 (remainder of year)	$	29,367
2017		119,469
2018		119,469
2019		119,469
2020		119,469
Thereafter		1,605,811
	$	2,113,054