Business Acquisitions

3 Months Ended

Jul. 31, 2016

Business Combinations [Abstract]

Business Acquisitions

On May 3, 2016 (the “Closing Date”), the Company consummated the acquisition of Horizon Investments (the “Horizon Acquisition”).  As a result of the acquisition, the Company acquired: (i) a 20% membership interest in Horizon Energy; (ii) three promissory notes issued by the Company to Horizon Investments in the principal amount of $1.6 million (the “Horizon Notes”); (iii) a restricted certificate of deposit; and (iv) certain bank, investment and other accounts maintained by Horizon Investments.  The Horizon Acquisition was completed in accordance with the term and conditions of the Conditional Purchase Agreement first entered into by the Company and Horizon Investments on December 1, 2015 (the “Purchase Agreement”). Also on the Closing Date, the Company and Horizon Investments entered into an amended and restated Purchase Agreement, pursuant to which the Company agreed to provide for additional advances by Horizon Investments to the Company.

As consideration for the Horizon Acquisition, and in accordance with the Purchase Agreement, as amended, the Company issued 11,564,250 shares of its common stock on the Closing Date, which amount included 1,395,916 additional shares of common stock in consideration for the additional cash, receivables and other assets reflected on Horizon Investment's balance sheet on the Closing Date.

The following table summarizes the allocation of the purchase price to the net assets acquired:

Purchase price allocation
Cash and cash equivalents	$	3,364,817
Cost method investment – Horizon Energy Partners, LLC		688,000
Notes receivable – related party		1,600,000
Net assets acquired	$	5,652,817
Consideration for net assets acquired
Fair value of common stock issued	$	5,652,817