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, 2016

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

For the transition period from _______________ to _______________.

Commission file number: 333-152608

MMEX RESOURCES CORPORATION

(Exact name of Issuer as specified in its charter)

Nevada	26-1749145
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3616 Far West Blvd. #117-321 Austin, Texas 78731	855-880-0400
(Address of principal executive offices, including zip code)	(Issuer’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. Yes ¨ No x

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 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

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

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

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ¨ No ¨

Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of March 13, 2017 there were 2,473,923,522 shares of common stock, $0.001 par value, issued and outstanding.

MMEX RESOURCES CORPORATION

TABLE OF CONTENTS

QUARTER ENDED OCTOBER 31, 2016

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30

2

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

The accompanying condensed consolidated financial statements of MMEX Resources Corporation and subsidiaries (the “Company”) are unaudited and have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, the condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

Operating results and cash flows for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. These condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended April 30, 2016 filed with the Securities and Exchange Commission (“SEC”).

 

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MMEX RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

	October 31, 2016			April 30, 2016
	(Unaudited)
Assets
Current assets:
Cash	$	209		$	1,030
Total current assets		209			1,030
Property and equipment, net		-			386
Total assets	$	209		$	1,416
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	737,194		$	651,188
Accounts payable – related party		4,760			-
Accrued expenses		1,053,217			984,387
Accrued expenses – related party		67,545			64,420
Notes payable, currently in default		375,000			375,000
Convertible notes payable, currently in default		195,001			195,001
Convertible preferred stock, currently in default		137,500			137,500
Derivative liabilities		362,511			395,619
Total current liabilities		2,932,728			2,803,115
Commitments and contingencies
Stockholders’ deficit:
Common stock; $0.001 par value, 3,000,000,000 shares authorized, 383,528,409 and 180,432,013 shares issued and outstanding at October 31, 2016 and April 30, 2016, respectively		383,529			180,434
Common stock payable		505,821			3,395,483
Additional paid-in capital		26,920,335			24,154,130
Non-controlling interest		(377,534	)		(376,619	)
Accumulated (deficit)		(30,364,670	)		(30,155,127	)
Total stockholders’ deficit		(2,932,519	)		(2,801,699	)
Total liabilities and stockholders’ deficit	$	209		$	1,416

 

See accompanying notes to condensed consolidated financial statements.

 

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MMEX RESOURCES CORPORATION

Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended October 31,						Six Months Ended October 31,
	2016			2015			2016			2015
Revenues	$	-		$	-		$	-		$	-
Operating expenses:
General and administrative expenses		102,651			32,743			126,241			134,087
Depreciation and amortization		62			375			386			1,261
Total operating expenses		102,713			33,118			126,627			135,348
Loss from operations		(102,713	)		(33,118	)		(126,627	)		(135,348	)
Other income (expense):
Interest expense		(80,700	)		(36,107	)		(116,939	)		(456,997	)
Gain (loss) on derivative liabilities		(52,587	)		(970,938	)		33,108			(1,274,768	)
Gain (loss) on extinguishment of debt		-			48,050			-			(1,365,521	)
Total other (expense)		(133,287	)		(958,995	)		(83,831	)		(3,097,286	)
Loss before income taxes		(236,000	)		(992,113	)		(210,458	)		(3,232,634	)
Provision for income taxes		-			-			-			-
Net loss		(236,000	)		(992,113	)		(210,458	)		(3,232,634	)
Non-controlling interest in loss of consolidated subsidiaries		453			461			915			924
Net loss attributable to the Company	$	(235,547	)	$	(991,652	)	$	(209,543	)	$	(3,231,710	)
Weighted average number of common shares outstanding – basic and diluted		376,528,409			57,148,313			373,973,860			57,168,313
Net loss per common share – basic and diluted	$	(0.00	)	$	(0.02	)	$	(0.00	)	$	(0.06	)

See accompanying notes to condensed consolidated financial statements.

 

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MMEX RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Six Months Ended October 31,
	2016			2015
Cash flows from operating activities:
Net loss attributable to the Company	$	(209,543	)	$	(3,231,710	)
Non-controlling interest in loss of consolidated subsidiaries		(915	)		(924	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		386			1,261
Stock-based compensation		47,254			-
(Gain) loss on derivative liabilities		(33,108	)		1,274,768
Amortization of debt discount		-			375,617
Amortization of deferred loan costs		-			8,822
Loss on extinguishment of debt		-			1,365,521
Increase (decrease) in liabilities:
Accounts payable		90,766			(9,268	)
Accrued expenses		71,955			168,173
Net cash used in operating activities		(33,205	)		(47,740	)
Cash flows from investing activities:
Decrease in deposits		-			10,000
Net cash provided by investing activities		-			10,000
Cash flows from financing activities:
Proceeds from common stock payable		32,384			40,000
Net cash provided by financing activities		32,384			40,000
Net increase (decrease) in cash		(821	)		2,260
Cash at the beginning of the period		1,030			141
Cash at the end of the period	$	209		$	2,401

Supplemental disclosure:
Interest paid	$	-	$	-
Income taxes paid		-		-
Common stock for common stock payable		196,095		-
Additional paid-in capital for common stock payable		2,738,905		-
Adjustment to common stock and additional paid-in capital		-		(39	)
Accrued expenses contributed to capital		-		2,063,468
Preferred stock and accrued dividends converted to common stock payable		-		(1,410,685	)
Notes payable converted to common stock payable		-		1,950,000
Notes payable – related party contributed to capital		-		149,253

See accompanying notes to condensed consolidated financial statements.

 

6

MMEX RESOURCES CORPORATION

Notes to Condensed Consolidated Financial Statements

Six Months Ended October 31, 2016
(Unaudited)

NOTE 1 – BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION

MMEX Resources Corporation (the “Company” or “MMEX”) was formed in the State of Nevada on May 19, 2005 as Inkie Entertainment Group, Inc. Subsequently, the Company amended its articles of incorporation to change its name to MMEX Resources Corporation and to authorize the Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares. The changes in the number of authorized shares of the Company have been given retroactive effect in the accompanying consolidated financial statements.

The Board of Directors of the Company has decided to focus efforts on the oil, gas, refining and electric power business in the United States and Latin America.

The accompanying condensed consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership:

Name of Entity	%	Form of Entity	State of Incorporation	Relationship
MMEX Resources Corporation (“MMEX”)	-	Corporation	Nevada	Parent
MCC Merger, Inc. (“MCCM”)	100%	Corporation	Delaware	Holding Subsidiary
Maple Carpenter Creek Holdings, Inc. (“MCCH”)	100%	Corporation	Delaware	Subsidiary
Maple Carpenter Creek, LLC (“MCC”)	80%	LLC	Nevada	Subsidiary
Carpenter Creek, LLC (“CC”)	95%	LLC	Delaware	Subsidiary
Armadillo Holdings Group Corp. (“AHGC”)	100%	Corporation	British Virgin Isles	Subsidiary
Armadillo Mining Corp. (“AMC”)	98.6%	Corporation	British Virgin Isles	Subsidiary

As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the “Trust”), whose beneficiaries are the existing shareholders of MMEX. The accounts of AMC are included in the consolidated financial statements due to the common ownership. AMC through the Trust controls the Hunza coal interest previously owned by the Company.

On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (“LatAm”) pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan.

All significant inter-company transactions have been eliminated in the preparation of the consolidated financial statements.

These financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the information contained therein.

The Company has adopted a fiscal year end of April 30.

 

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in our Annual Report on Form 10-K for the year ended April 30, 2016 filed with the SEC on January 13, 2017.

Use of Estimates

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

Derivative liabilities

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We estimate the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Fair value of financial instruments

Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, and ASC 825, Financial Instruments, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's financial statements as reflected herein. The carrying amounts of cash, accounts payable, accrued expenses and notes reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.

 

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Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:

October 31, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	362,511	$	-	$	-	$	362,511

April 30, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	395,619	$	-	$	-	$	395,619

Basic and diluted loss per share

Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the three months and six months ended October 31, 2016, potential dilutive shares had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share.

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Reclassifications

Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year periods presentation.

 

9

Recently Issued Accounting Pronouncements

In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-4, “Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In January 2017, the FASB issued ASU No. 2017-1, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU are effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update are to be applied prospectively on or after the effective date. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In October 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties That are Under Common Control.” This update amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

 

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NOTE 3 – GOING CONCERN

Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $30,364,670 and a total stockholders’ deficit of $2,932,519 at October 31, 2016, and have reported negative cash flows from operations since inception. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months, and we expect to have ongoing requirements for capital investment to implement our business plan. Finally, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which we operate.

Since inception, our operations have primarily been funded through private debt and equity financing, as well as capital contributions by our subsidiaries' partners, and we expect to continue to seek additional funding through private or public equity and debt financing.

Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our operations will be adequate to meet our needs. These factors, among others, indicate that we may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 – RELATED PARTY TRANSACTIONS

During the past few years, Tydus Richards, the former Chairman of our board of directors and shareholder, made certain payments on behalf of the Company. The Company has partially reimbursed Mr. Richards for these advances. As of October 31, 2016 and April 30, 2016, a remaining balance payable of $31,633 is included in accrued expenses – related party.

On October 9, 2014, convertible notes payable in default to an accredited investor of $1,650,000, $120,000 and $180,000 were assigned to The Maple Gas Corporation, a related party owned by Mr. Jack W. Hanks, a director and officer of the Company. On May 8, 2015, The Maple Gas Corporation converted the notes into 194,999,999 common shares of the Company at $0.01 per share, which resulted in a loss on extinguishment of debt of $975,000. The issuance of the common shares to Maple Structure Holdings was approved by the Company’s Board of Directors Resolution dated May 18, 2015, and the shares were issued on May 2, 2016. At April 30, 2016, common stock payable included an obligation of $2,925,000 for the issuance of the shares.

Accounts payable to related parties, comprised of amounts payable to The Maple Gas Corporation, totaled $4,760 and $0 at October 31, 2016 and April 30, 2016, respectively.

Accrued expenses (see Note 6) to related parties totaled $67,545 and $64,420 as of October 31, 2016 and April 30, 2016, respectively.

11

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at:

	October 31, 2016			April 30, 2016
Computer software and hardware	$	25,023		$	25,023
Less accumulated depreciation and amortization		(25,023	)		(24,637	)
	$	-		$	386

Depreciation and amortization expense totaled $62 and $375 for the three months ended October 31, 2016 and 2015, respectively, and $386 and $1,261 for the six months ended October 31, 2016 and 2015, respectively.

NOTE 6 – ACCRUED EXPENSES

Accrued expenses consisted of the following at:

	October 31, 2016		April 30, 2016
Accrued payroll	$	240,059	$	240,309
Accrued consulting		75,633		75,633
Accrued interest		742,529		670,324
Other		62,541		62,541
	$	1,120,762	$	1,048,807

 

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NOTE 7 – NOTES PAYABLE

Notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an unrelated party, maturing July 15, 2010, with interest at 10%	$	300,000	$	300,000
Note payable to an unrelated party, maturing December 31, 2010, with interest at 10%		25,000		25,000
Note payable to an unrelated party, maturing January 27, 2012, with interest at 25%		50,000		50,000
	$	375,000	$	375,000

Accrued interest payable on notes payable, currently in default, totaled $297,102 and $276,477 at October 31, 2016 and April 30, 2016, respectively.

Convertible notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an accredited investor, maturing March 1, 2013, with interest at 1.87% per month, secured with 900,000 common shares of the Company owned by the president and CEO of the Company	$	120,000	$	120,000
Note payable to an unrelated party, maturing March 18, 2014, with interest at 10%		75,001		75,001
Total	$	195,001	$	195,001

Accrued interest payable on convertible notes payable, currently in default, totaled $129,272 and $112,058 at October 31, 2016 and April 30, 2016, respectively.

On January 2, 2013, the Company closed a note purchase agreement with an accredited investor pursuant to which the Company sold a $120,000 note in a private placement transaction. The note was due and payable on March 1, 2013, is currently in default and carries a monthly interest rate of 1.87%. The note purchase agreement included the issuance of 300,000 shares of the Company’s common stock. The note is secured with 900,000 shares of the Company’s common stock owned by Jack W. Hanks, the Company’s President and CEO. The 300,000 shares were valued at $0.10 per share, the closing price of the Company’s common stock on January 2, 2013, and recorded as a $30,000 increase to debt discount and an increase to common stock payable.

The Company allocated the proceeds from the issuance of the notes to the warrants when applicable and to the notes based on their estimated fair market values at the date of issuance using the Black-Scholes option pricing model. The debt discount resulting from interest and the value of warrants computed at the inception of the notes payable was amortized as additional interest expense over the term of the notes.

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NOTE 8 – CONVERTIBLE PREFERRED STOCK

Convertible Preferred Stock, Currently in Default

On June 30, 2011, the Company issued 360,000 shares of Armadillo Mining Corporation Preferred Stock to five unrelated parties in exchange for an investment of $360,000. The Preferred Stock carry a 25% cumulative dividend and have a mandatory redemption feature on December 31, 2011 at a price of $1.25 per share. In addition, the Company issued 360,000 warrants to purchase shares of the Company’s common stock at an exercise price of $0.60 per share on or before three years from the repayment or conversion date.

On January 6, 2012, three unrelated parties converted their Preferred Stock and accrued dividends of $312,500 into 2,983,293 shares of the Company’s common stock at a price of $.10475 per share. As the conversion took place at below the market price and not within the terms of the agreement on the date of conversion, a loss of $75,328 was recorded. As of October 31, 2016 and April 30, 2016, the remaining face value of the Preferred Stock was $137,500. Accrued dividends on the Preferred Stock totaled $316,165 and $281,789 as of October 31, 2016 and April 30, 2016, respectively.

The Company recorded interest expense, which included amortization of debt discount on certain debt in prior years, totaling $80,700 and $36,107 for the three months ended October 31, 2016, respectively, and $116,939 and $456,997 for the six months ended October 31, 2016 and 2015, respectively.

NOTE 9 – DERIVATIVE LIABILITIES

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives.

During the six months ended October 31, 2016, we had the following activity in our derivative liabilities:

Balance, April 30, 2016	$	395,619
Change in fair value of derivative liabilities		(33,108	)
Balance, October 31, 2016	$	362,511

The Company calculated the fair value of the derivatives using a multinomial lattice model simulation. The model is based on a probability weighted discounted cash flow model using projections of the various potential outcomes.

Key inputs and assumptions used in valuing the Company’s derivative liabilities are as follows for issuances of warrants:

· Stock prices on all measurement dates were based on the fair market value

· Risk-free interest rates ranging from 1.03% – 2.49%

· The probability of future financing was estimated at 100%

· Computed volatility ranging from 103% to 249%

These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

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NOTE 10 – STOCKHOLDERS’ DEFICIT

Authorized Shares

As of April 6, 2016, the Company amended its articles of incorporation to increase its authorized shares to 1,000,000,000 common shares and 10,000,000 preferred shares, and subsequently increased its authorized common shares to 3,000,000 shares (Note 14). The increase in authorized shares has been given retroactive effect in the accompanying condensed consolidated financial statements for all periods presented.

Stock Issuances

On May 2, 2016, the Company issued 194,999,999 shares of its common stock to a related party pursuant to the conversion of notes payable in default (see Note 4), reducing stock subscriptions payable by $2,925,000.

As part of a private placement to qualified investors, the Company issued 1,096,397 shares of its common stock on July 12, 2016 to an investor for stock subscriptions payable of $10,000.

On October 31, 2016, the Company issued 7,000,000 shares of its common stock as a settlement fee valued at $34,300 to an institution lender pursuant to a Settlement Agreement and Stipulation (see Note 11).

Common Stock Payable

During the six months ended October 31, 2016, the Company completed subscription agreements for common stock and warrants with qualified investors in a private placement for cash of $32,384. The shares of common stock were issued subsequent to October 31, 2016, and common stock payable included $32,384 at October 31, 2016 related to these transactions. The attached warrants were identified as derivatives, resulting in their inclusion in the derivative liabilities of $362,511 at October 31, 2016 (see Note 9).

Stock Options

On March 7, 2012, the Company issued a total of 2,000,000 stock options exercisable at $0.35 per share for a period of ten years from the date of grant. The Company did not grant any stock options during the six months ended October 31, 2016.

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A summary of stock option activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		2,000,000	$	0.35		5.85
Granted		-		-
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		2,000,000	$	0.35		5.35

The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which value is amortized to stock-based compensation expense over the vesting period of the options. No stock-based compensation expense was recorded during the three months and six months ended October 31, 2016 and 2015 related to stock option grants. There was no unrecognized stock option expense at October 31, 2016.

Warrants

The Company has issued warrants to qualified investors in a private placement, for debt discounts or other stock-based compensation. These warrants generally vest upon grant and are valued using the Black-Scholes option pricing model or multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes.

A summary of warrant activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		14,811,362	$	0.01		5.84
Granted		2,518,445	$	0.01
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		17,329,807	$	0.01		5.33

Common Stock Reserved

At October 31, 2016, 17,329,807 shares of the Company’s common stock were reserved for issuance of outstanding warrants.

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NOTE 11 – SETTLEMENT AGREEMENT AND STIPULATION

Settlement Agreement and Stipulation

On October 28, 2016, the Company entered into a Settlement Agreement and Stipulation (the “Settlement Agreement”) with Rockwell Capital Partners, Inc. (“RCP”). Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables between the Company and designated vendors totaling $109,391 (the “Payables” or “Claims”) and will exchange the portion of such Payables assigned for a Settlement Amount payable in common shares of the Company.

In settlement of the Claims, the Company shall issue and deliver to RCP, in one or more tranches as necessary, shares of the Company’s common stock (“Common Stock”), subject to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to satisfy the Claims amount at a 50% discount to market based on the market price during the valuation period as defined in the Settlement Agreement. The Company also issued 7,000,000 shares of Common Stock as a settlement fee on October 31, 2016.

On October 28, 2016, a circuit court in Florida issued an order confirming the fairness of the terms of the Settlement Agreement within the meaning of exemption from registration provided by Section 3(a) (10) of the Securities Act of 1933.

Subsequent to October 31, 2016, a total of 452,000,000 shares of the Company’s common stock were issued to the RCP (see Note 14).

NOTE 12 – NON-CONTROLLING INTERESTS

On September 23, 2010, the Company, through a reverse merger, acquired 100% of the outstanding shares of Maple Carpenter Creek Holdings, Inc., ("MCCH"), a holding Company, with an 80% interest in Maple Carpenter Creek, LLC ("MCC"), which in turn owned a 95% interest in the subsidiary, Carpenter Creek, LLC ("CC"), and a 98.12% interest in Armadillo Holdings Group Corp. ("AHGC"), which in turn owned an 80% interest in Armadillo Mining Corp. ("AMC"). The non-controlling interest of 1.88% in AHGC was acquired by MCCH on December 21, 2010 in exchange for 31,334 shares of the Company’s common stock resulting in 100% ownership of AHGC. On March 22, 2011, AHGC acquired 14.6% of AMC and on April 30, 2012, an additional 4% interest for a total of 98.6% based upon agreement with the minority interest holder to reduce their interest based upon proportionate share of additional capital contributed to AMC.

As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the "Trust"), whose beneficiaries are the existing shareholders of MMEX. AMC through the Trust controls the Hunza coal interest previously owned by the Company.

On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (“LatAm”) pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan.

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NOTE 13 – COMMITMENTS AND CONTINGENCIES

Legal

There were no legal proceedings against the Company.

Operating Lease Commitments

The Company acquired the Bolzer Lease pursuant to a September 23, 2010 merger. Subsequently, notice of termination on this lease effective April 26, 2010 was provided by previous management. The Company has recorded an accrued expense for the minimum lease payment of $62,541 for the January 2010 payment.

NOTE 14 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, all subsequent events have been reported through the filing date as set forth below.

Refinery Transaction

On March 4, 2017, MMEX Resources Corporation (the “Company”) entered into an agreement with Maple Resources Corporation (“Maple”), a related party, to acquire all of Maple’s right, title and interest (the “Rights”) in plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the “Refinery Transaction” or the “Project”). Pursuant to the Refinery Transaction, the Company agreed to acquire the Rights in exchange for the issuance of 7,000,000,000 new common shares (the “Purchased Shares”).

The Refinery Transaction provides for the Company to issue the Purchased Shares in two tranches, of which the First Tranche of 1,500,000,000 shares was issued on March 4, 2017. The Second Tranche of 5,500,000,000 shares is to be issued once the Company’s Articles of Incorporation are amended to increase the number of authorized shares of common stock, as more particularly described below. In addition, the Second Tranche amount of shares will be adjusted (up or down) subject to valuation of the Refinery Transaction by a third party outside consultant.

Completion of the Project is subject to the receipt of required governmental permits and completion of required debt and equity financing.

Amendments of Articles of Incorporation

As of November 29, 2016, the Company amended its articles of incorporation to increase its authorized common shares to 3,000,000,000 shares.

On March 7, 2017, the holders of more than 50.1% of the outstanding shares of common stock of the Company executed their written consent in lieu of special meeting approving an amendment and restatement of the articles of incorporation to provide for an increase in the authorized shares of common stock from 3,000,000,000 to 10,000,000,000 shares. In addition, the articles of incorporation will be amended to provide for two classes of common shares: (i) Class A Shares, having one vote per share, and (ii) Class B Shares, with 10 votes per share. All of the currently outstanding shares of common stock will be reclassified as Class A Shares, except that all of the Purchased Shares issued or to be issued in the Refinery transaction will be Class B Shares. Other than the provisions of the voting rights, the two classes of shares of common stock will have equal terms and conditions.

 

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Private Placement

As the Company continues to expand its business and implement its business strategy, its current monthly cash flow requirements will exceed its near term cash flow from operations. In order to fund its development costs, the Company initiated in fiscal year 2016 a private placement to qualified investors for cash and services. Through the date of the filing of this report, $118,230 cash and $60,000 in services had been received, including $49,200 cash from related parties, for a total of 41,784,320 common shares of the Company and a total of 43,025,313 warrants. The warrants entitle the investors to purchase common shares at exercise prices of $0.0001 and $0.01 per share through March 1, 2022. Of the common shares issued, 1,096,397 shares were issued in July 2016 and a total of 40,687,923 shares were issued in December 2016 and January 2017.

Settlement Agreement

As discussed in Note 11, on October 28, 2016, the Company entered into a Settlement Agreement) with RCP. Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables from the Company for shares of common stock of the Company.

The Company’s creditors received a total of $84,782 pursuant to the Settlement Agreement. Beginning in November 2016, we have issued a cumulative total of 489,000,000 common shares pursuant to the Settlement Agreement and, as of March 9, 2017, have terminated any further obligation to issue shares. Our creditors will not receive further funding from the Settlement Agreement.

Other Issuances of Common Stock

On January 24, 2017, the Company entered into an agreement with a former employee to issue 2,082,190 shares of the Company’s common stock in settlement of accrued salaries of $208,219.

On January 24, 2017, the Company issued 28,625,000 shares of its common stock to a consultant in payment of services valued at $5,725.

Subsequent to October 31, 2016, the Company issued a total of 30,000,000 shares of its common stock to investors for cash of $6,000.

 

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ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis constitutes forward-looking statements for purposes of the Securities Act and the Exchange Act and as such involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words "expect", "estimate", "anticipate", "predict", "believes", "plan", "seek", "objective" and similar expressions are intended to identify forward-looking statements or elsewhere in this report. Important factors that could cause our actual results, performance or achievement to differ materially from our expectations are discussed in detail in Item 1 above. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by such factors. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Notwithstanding the foregoing, we are not entitled to rely on the safe harbor for forward looking statements under 27A of the Securities Act or 21E of the Exchange Act as long as our stock is classified as a penny stock within the meaning of Rule 3a51-1 of the Exchange Act. A penny stock is generally defined to be any equity security that has a market price (as defined in Rule 3a51-1) of less than $5.00 per share, subject to certain exceptions.

The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements, including the notes thereto.

Overview

New Business Plan

The MMEX Board of Directors has made the decision to focus the Company efforts into the oil, gas, refining and electric power business in the U.S. and in Latin America. The principal reasons are the following:

· MMEX principal shareholders and directors are also principals in a privately held U.S. oil and gas company, Maple Resources Corporation ('Maple") based in Austin, Texas.

· The MMEX management team has over 30 years of experience in natural resource project development and project financing in North and South America and the U.K.

· MMEX directors and principal shareholders with oil, gas, refining and electric power experience will bring this expertise into the Company.

Management Expertise in Oil, Gas, Refining and Electric Power Project Development and Project Finance Development

MMEX principals formed Maple Resources Corporation ("Maple Resources") in 1986. Maple Resources is a privately held corporation, registered in Delaware, with its principal operating offices in Austin, Texas. It is engaged in the evaluation, acquisition and development of oil & gas, refining, power generation, natural gas transmission and processing energy projects in the western United States and Latin America. Maple Resources was established in 1986 in Dallas, Texas USA. Maple Resources engaged in a number of oil and gas acquisitions and dispositions and ultimately acquired assets that included 10 gas processing plants and approximately 770 miles of natural gas gathering lines and transmission infrastructure. In 1992, Maple Resources Dallas sold substantially all of its existing US-based assets and began to pursue energy projects in Latin America. Maple Resources went to Peru in 1992 and managed its Peru business through The Maple Gas Corporation del Peru Ltd ("Maple Peru"). In 1993, Maple Peru began developing the Aguaytía Project, an integrated natural gas and electric power generation and transmission project. This US$ 273 million project involved the first commercial development of a natural gas field in Peru, as well as the construction and operation of approximately 175 miles of hydrocarbon pipelines, a gas processing plant, a fractionation facility, a 153 MW power plant and the related 392 km of electricity transmission lines. The Aguaytía Project began commercial operation in 1998. Maple Peru also acquired a 4,000 barrel per day refinery in Pucallpa along with 3 producing oil fields. In 2007, Maple Peru was registered on the London Stock Market AIM under the name of Maple Energy, plc. In October 2015, Maple Resources along with its partners took Maple Gas del Peru private with the acquisition of the company from Maple Energy, plc, the publicly listed company.

 

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Development Strategy

The new development strategy is to focus on the acquisition, development and financing of oil, gas, refining and electric power projects in Texas, Peru and other countries in Central and Latin America.

As we continue to expand our business and implement our business strategy, our current monthly cash flow requirements will exceed our near term cash flow from operations. Our available cash resources and anticipated cash flow from operations are insufficient to satisfy our anticipated costs associated with new project development. There can be no assurance that we will be able to generate sufficient cash from operations in future periods to satisfy our capital requirements. Therefore, we will have to continue to rely on external financing activities, including the sale of our equity securities, to satisfy our capital requirements for the foreseeable future. Due, in part, to our lack of historical earnings, our prior success in attracting additional funding has been limited to transactions in which our equity is used as currency. In light of the availability of this type of financing, and the lack of alternative proposals, our board of directors has determined that the continued use of our equity for these purposes may be necessary if we are to sustain operations. Equity financings of the type we have been required to pursue are dilutive to our stockholders and may adversely impact the market price for our shares. We recently completed a private placement financing with certain accredited investors, including our two executive officers and directors. However, we have no commitments for borrowings or additional sales of equity, the precise terms upon which we may be able to attract additional funding is not known at this time, and there can be no assurance that we will be successful in consummating any such future financing transactions on terms satisfactory to us, or at all.

Refinery Transaction

On March 4, 2017, MMEX Resources Corporation (the “Company”) entered into an agreement with Maple Resources Corporation (“Maple”), a related party, to acquire all of Maple’s right, title and interest (the “Rights”) in plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the “Refinery Transaction” or the “Project”). Pursuant to the Refinery Transaction, the Company agreed to acquire the Rights in exchange for the issuance of 7,000,000,000 new common shares (the “Purchased Shares”).

The Refinery Transaction provides for the Company to issue the Purchased Shares in two tranches, of which the First Tranche of 1,500,000,000 shares was issued on March 4, 2017. The Second Tranche of 5,500,000,000 shares is to be issued once the Company’s Articles of Incorporation are amended to increase the number of authorized shares of common stock, as more particularly described below. In addition, the Second Tranche amount of shares will be adjusted (up or down) subject to valuation of the Refinery Transaction by a third party outside consultant.

Completion of the Project is subject to the receipt of required governmental permits and completion of required debt and equity financing.

Results of Operations

 We recorded net losses of $210,458, or $(0.00) per share, and $3,232,634, or $(0.06) per share, for the six months ended October 31, 2016 and 2015, respectively.

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Revenues

We have not yet begun to generate revenues.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses increased $69,908 to $102,651 for the three months ended October 31, 2016 from $32,743 for the three months ended October 31, 2015. The increase is due to increased professional fees in the current fiscal year. Our selling, general and administrative expenses decreased $7,846 to $126,241 for the six months ended October 31, 2016 from $134,087 for the six months ended October 31, 2015. The decrease is due to reduced payroll and operating expenses as we have focused on our new development strategy, partially offset by increased professional fees in the current fiscal year.

Depreciation and Amortization Expense

Our depreciation and administrative expenses are not currently material to our operations. Depreciation and administrative expenses were $62 and $375 for the three months ended October 31, 2016 and 2015, respectively, and $386 and $1,261 for the six months ended October 31, 2016 and 2015, respectively.

Other Income (Expense)

Our interest expense increased $44,593 to $80,700 for the three months ended October 31, 2016 from $36,107 for the three months ended October 31, 2015 due primarily to the fees incurred on the Settlement Agreement in the current fiscal year. Our interest expense decreased $340,058 to $116,939 for the six months ended October 31, 2016 from $456,997 for the six months ended October 31, 2015 to a reduction in our interest-bearing indebtedness and because all debt discount recorded for convertible debt was fully amortized in the prior fiscal year. This decrease on a year-to-date basis in the current fiscal year is partially offset by the fees incurred on the Settlement Agreement.

We reported a loss on derivative liabilities of $52,587 and $970,938 for the three months ended October 31, 2016 and 2015, respectively. We reported a gain on derivative liabilities of $33,108 for the six months ended October 31, 2016 and a loss on derivative liabilities of $1,274,768 for the six months ended October 31, 2015. In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We estimate the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

We had no gain or loss on extinguishment of debt for the three months and six months ended October 31, 2016. We reported a gain on extinguishment of debt of $48,050 for the three months ended October 31, 2015 and a loss on extinguishment of debt of $1,365,521 for the six months ended October 31, 2015 resulting primarily from the conversion of preferred stock and accrued dividends and convertible notes payable to shares of our common stock. We record the value of the shares issued at the current market price, which may be either lower or higher than the conversion price per share, resulting in a gain or loss on conversion.

 

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Net Income (Loss)

As a result of the above, we reported net losses of $236,000 and $992,113 for the three months ended October 31, 2016 and 2015, respectively, and net losses of $210,458 and $3,232,634 for the six months ended October 31, 2016 and 2015, respectively.

Non-Controlling Interest in Loss of Consolidated Subsidiaries

Non-controlling interest in loss of consolidated subsidiaries was $453 and $461for the three months ended October 31, 2016 and 2015, respectively, and $915 and $924 for the six months ended October 31, 2016 and 2015, respectively.

Net Loss Attributable to the Company

Net loss attributable to the Company was $235,547 and $991,652 for the three months ended October 31, 2016 and 2015, respectively, and $209,543 and $3,231,710 for the six months ended October 31, 2016 and 2015, respectively.

Liquidity and Capital Resources

Introduction

As of October 31, 2016, we had current assets of $209, comprised of cash, and current liabilities of $2,932,728, resulting in a working capital deficit and a total stockholders’ deficit of $2,932,519. Included in our current liabilities as of October 31, 2016 are derivative liabilities of $362,511, which we do not anticipate will require the payment of cash.

Because of our continuing operating losses, we have not generated positive operating cash flows. As a result, we have significant short-term cash needs. Our principal source of operating capital has been provided from private sales of our common stock and warrants and debt financing.

During the six months ended October 31, 2016, financing of $32,384 was provided by common stock and warrant subscriptions in a private placement.

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Private Placement

We have initiated a private placement of common stock and warrants to qualified investors for cash and services. Through the date of the filing of this report, $118,230 cash and $60,000 in services had been received, including $49,200 cash from related parties, for a total of 41,784,320 common shares of the Company and a total of 43,025,313 warrants. The warrants entitle the investors to purchase common shares at exercise prices of $0.0001 and $0.01 per share through March 1, 2022. Of the common shares issued, 1,096,397 shares were issued in July 2016, 27,740,123 shares were issued in December 2016 and 12,947,500 shares were issued in January 2017.

Settlement Agreement and Stipulation

On October 28, 2016, the Company entered into a Settlement Agreement and Stipulation (the “Settlement Agreement”) with Rockwell Capital Partners, Inc. (“RCP”). Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables between the Company and designated vendors totaling $109,391 (the “Payables” or “Claims”) and will exchange the portion of such Payables assigned for a Settlement Amount payable in common shares of the Company.

In settlement of the Claims, the Company shall issue and deliver to RCP, in one or more tranches as necessary, shares of the Company’s common stock (“Common Stock”), subject to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to satisfy the Claims amount at a 50% discount to market based on the market price during the valuation period as defined in the Settlement Agreement. The Company also issued 7,000,000 shares of Common Stock as a settlement fee on October 31, 2016.

On October 28, 2016, a circuit court in Florida issued an order confirming the fairness of the terms of the Settlement Agreement within the meaning of exemption from registration provided by Section 3(a) (10) of the Securities Act of 1933.

Through the date of filing of this report, the Company’s creditors have received a total of $84,782 and the Company has repaid $56,100 through the issuance of the following shares of its common stock to RCP: 10,000,000 shares on November 3, 2016, 15,000,000 shares on November 4, 2016, 18,000,000 shares on November 10, 2016, 18,000,000 shares on November 16, 2016, 14,000,000 shares on November 21, 2016, 22,000,000 shares on November 28, 2016, 22,000,000 shares on November 30, 2016, 25,000,000 shares on December 5, 2016, 25,000,000 shares on December 7, 2016, 27,000,000 shares on January 4, 2017, 28,000,000 shares on January 6, 2017, 29,000,000 shares on January 10, 2017, 30,000,000 shares on January 11, 2017, 31,000,000 shares on January 12, 2017, 33,000,000 shares on January 18, 2017, 34,000,000 shares on January 23, 2017, 35,000,000 shares on January 25, 2017 and 36,000,000 shares on January 26, 2017.

We do not anticipate receiving further funding from the Settlement Agreement and Stipulation.

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Future Financing Needs

As we attempt to expand exploration activities and develop our international operations, we expect to continue to experience net negative cash flows from operations in amounts not now determinable, and will be required to obtain additional financing to fund operations through common stock offerings, preferred stock offerings, and debt borrowings to the extent necessary to provide working capital. We have and expect to continue to have substantial capital expenditure and working capital needs. We recently completed a private placement We do not now have funds sufficient to fund our operations at their current level for the next twelve months. We need to raise additional cash to fund our operations and implement our business plan. We expect that the additional financing will (if available) take the form of a private placement of equity, although we may be constrained to obtain additional debt financing in lieu thereof. We are maintaining an on-going effort to locate sources of additional funding, without which we will not be able to remain a viable entity. No financing arrangements are currently under contract, and there are no assurances that we will be able to obtain adequate financing. If we are able to obtain the financing required to remain in business, eventually achieving operating profits will require commencement of operations to generate revenues or drastically reducing expenses from their current levels or both. If we are able to obtain the required financing to remain in business, future operating results depend upon a number of factors that are outside of our control.

Sources and Uses of Cash

We used net cash of $33,205 in operating activities for the six months ended October 31, 2016 as a result of net loss attributable to the Company of $209,543, non-controlling interest in loss of consolidated subsidiaries of $915 and non-cash gain of $33,108, partially offset by non-cash expenses totaling $47,640 and increases in accounts payable of $90,766 and accrued expenses of $71,955.

By comparison, we used net cash of $47,740 in operating activities for the six months ended October 31, 2015 as a result of net loss attributable to the Company of $3,231,710, non-controlling interest in loss of consolidated subsidiaries of $924 and decrease in accounts payable of $9,268, partially offset by non-cash expenses totaling of $3,025,989 and increase in accrued expenses of $168,173.

We had no net cash provided by or used in investing activities for the six months ended October 31, 2016. We had net cash provided by investing activities of $10,000 for the six months ended October 31, 2015, comprised of decrease in deposits.

We had net cash provided by financing activities of $32,384 and $40,000 for the six months ended October 31, 2016 and 2015, respectively, from proceeds from common stock payable.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

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Critical Accounting Policies

For further information on our significant accounting policies see the notes to our condensed consolidated financial statements included in this filing. Other than accounting policies for derivatives and related fair value disclosures that were added in the current fiscal year, there have been no changes to our significant accounting policies.

Derivative liabilities

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We estimate the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Fair value of financial instruments

Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, and ASC 825, Financial Instruments, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's financial statements as reflected herein. The carrying amounts of cash, accounts payable, accrued expenses and notes reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.

 

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Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:

October 31, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	362,511	$	-	$	-	$	362,511

April 30, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	395,619	$	-	$	-	$	395,619

The following describes the general application of accounting principles that impact our condensed consolidated financial statements.

Our results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to inventories, investments, intangible assets, income taxes, financing operations, and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 4 Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined) in Exchange Act Rules 13a – 15(c) and 15d – 15(e). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 (“Securities Exchange Act”) is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

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Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our condensed consolidated financial statements included in this quarterly report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act, as amended. Our management assessed the effectiveness of our internal control over financial reporting as of October 31, 2016. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses:

· As of October 31, 2016, we did not maintain effective controls over the control environment. Specifically, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-B. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

· As of October 31, 2016, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of October 31, 2016, based on the criteria established in "Internal Control-Integrated Framework" issued by the COSO.

(b) Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

28

PART II – OTHER INFORMATION

ITEM 1 Legal Proceedings

We are not a party to or otherwise involved in any legal proceedings.

In the ordinary course of business, we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.

ITEM 1A Risk Factors

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

On October 31, 2016, the Company issued 7,000,000 shares of its common stock as a settlement fee valued at $34,300 to an institution lender pursuant to a Settlement Agreement and Stipulation.

ITEM 3 Defaults Upon Senior Securities

There is no information required to be disclosed by this Item.

ITEM 4 Mine Safety Disclosures

There is no information required to be disclosed by this Item.

ITEM 5 Other Information

There is no information required to be disclosed by this Item.

 

29

ITEM 6 Exhibits

31.1*	Certification by Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
32.1*	Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

______________

* Filed herewith.

** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

 

30

SIGNATURES

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

	MMEX Resources Corporation
Dated: March 13, 2017	By:	/s/ Jack W. Hanks
		Jack W. Hanks
		Chief Executive Officer (Principal Executive Officer), President and Chief Financial Officer (Principal Financial and Accounting Officer)

31

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer

I, Jack W. Hanks, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of MMEX Resources Corporation.;
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 Exhibit 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.

Dated: March 13, 2017	By:	/s/ Jack W. Hanks
		Jack W. Hanks
		Chief Executive Officer and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MMEX Resources Corporation (the “Company”) on Form 10-Q for the quarter ended October 31, 2016, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Jack W. Hanks, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 13, 2017	By:	/s/ Jack W. Hanks
		Jack W. Hanks
		Chief Executive Officer and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to MMEX Resources Corporation and will be retained by MMEX Resources Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Oct. 31, 2016	Mar. 13, 2017
Document And Entity Information
Entity Registrant Name	MMEX Resources Corp
Entity Central Index Key	0001440799
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,473,923,522
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017

XML

Condensed Consolidated Balance Sheets - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Current assets:
Cash	$ 209	$ 1,030
Total current assets	209	1,030
Property and equipment, net		386
Total assets	209	1,416
Current liabilities:
Accounts payable	737,194	651,188
Accounts payable - related party	4,760
Accrued expenses	1,053,217	984,387
Accrued expenses - related party	67,545	64,420
Notes payable, currently in default	375,000	375,000
Convertible notes payable, currently in default	195,001	195,001
Convertible preferred stock, currently in default	137,500	137,500
Derivative liabilities	362,511	395,619
Total current liabilities	2,932,728	2,803,115
Commitments and contingencies
Stockholders' deficit:
Common stock; $0.001 par value, 3,000,000,000 shares authorized, 383,528,409 and 180,432,013 shares issued and outstanding at October 31, 2016 and April 30, 2016, respectively	383,529	180,434
Common stock payable	505,821	3,395,483
Additional paid in capital	26,920,335	24,154,130
Non-controlling interest	(377,534)	(376,619)
Accumulated (deficit)	(30,364,670)	(30,155,127)
Total Stockholders' Deficit	(2,932,519)	(2,801,699)
Total Liabilities and Stockholders' Deficit	$ 209	$ 1,416

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2016	Apr. 30, 2016
Stockholders' deficit:
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	3,000,000,000	3,000,000,000
Common stock, Issued	383,528,409	180,432,013
Common stock, outstanding	383,528,409	180,432,013

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Operating Expenses:
General and administrative expenses	$ 102,651	$ 32,743	$ 126,241	$ 134,087
Depreciation and amortization	62	375	386	1,261
Total operating expenses	102,713	33,118	126,627	135,348
Loss from operations	(102,713)	(33,118)	(126,627)	(135,348)
Other income (expense):
Interest expense	(80,700)	(36,107)	(116,939)	(456,997)
Gain (loss) on derivative liabilities	(52,587)	(970,938)	33,108	(1,274,768)
Gain (loss) on extinguishment of debt		48,050		(1,365,521)
Total other (expense)	(133,287)	(958,995)	(83,831)	(3,097,286)
Loss before income taxes	(236,000)	(992,113)	(210,458)	(3,232,634)
Provision for income taxes
Net loss	(236,000)	(992,113)	(210,458)	(3,232,634)
Non-controlling interest in loss of consolidated subsidiaries	453	461	915	924
Net loss attributable to the Company	$ (235,547)	$ (991,652)	$ (209,543)	$ (3,231,710)
Weighted average number of common shares outstanding - basic and diluted	376,528,409	57,148,313	373,973,860	57,168,313
Net loss per common share - basic and diluted	$ 0.00	$ (0.02)	$ 0.00	$ (0.06)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities
Net loss attributable to the Company	$ (209,543)	$ (3,231,710)
Non-controlling interest in loss of consolidated subsidiaries	(915)	(924)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	386	1,261
Stock-based compensation	47,254
(Gain) loss on derivative liabilities	(33,108)	1,274,768
Amortization of debt discount		375,617
Amortization of deferred loan costs		8,822
Loss on extinguishment of debt		1,365,521
Increase (decrease) in liabilities:
Accounts payable	90,766	(9,268)
Accrued expenses	71,955	168,173
Net cash used in operating activities	(33,205)	(47,740)
Cash flows from investing activities
Decrease in deposits		10,000
Net cash provided by investing activities		10,000
Cash flows from financing activities
Proceeds from common stock payable	32,384	40,000
Net cash provided by financing activities	32,384	40,000
Net increase (decrease) in cash	(821)	2,260
Cash at the beginning of the period	1,030	141
Cash at the end of the period	209	2,401
Supplemental disclosures:
Interest paid
Income taxes paid
Common stock for common stock payable	196,095
Additional paid-in capital for common stock payable	2,738,905
Adjustment to common stock and additional paid-in capital		(39)
Accrued expenses contributed to capital		2,063,468
Preferred stock and accrued dividends converted to common stock payable		(1,410,685)
Notes payable converted to common stock payable		1,950,000
Notes payable - related party contributed to capital		$ 149,253

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BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 1 - BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION

MMEX Resources Corporation (the “Company” or “MMEX”) was formed in the State of Nevada on May 19, 2005 as Inkie Entertainment Group, Inc. Subsequently, the Company amended its articles of incorporation to change its name to MMEX Resources Corporation and to authorize the Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares. The changes in the number of authorized shares of the Company have been given retroactive effect in the accompanying consolidated financial statements.

The Board of Directors of the Company has decided to focus efforts on the oil, gas, refining and electric power business in the United States and Latin America.

The accompanying condensed consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership:

Name of Entity	%	Form of Entity	State of Incorporation	Relationship
MMEX Resources Corporation (“MMEX”)	-	Corporation	Nevada	Parent
MCC Merger, Inc. (“MCCM”)	100%	Corporation	Delaware	Holding Subsidiary
Maple Carpenter Creek Holdings, Inc. (“MCCH”)	100%	Corporation	Delaware	Subsidiary
Maple Carpenter Creek, LLC (“MCC”)	80%	LLC	Nevada	Subsidiary
Carpenter Creek, LLC (“CC”)	95%	LLC	Delaware	Subsidiary
Armadillo Holdings Group Corp. (“AHGC”)	100%	Corporation	British Virgin Isles	Subsidiary
Armadillo Mining Corp. (“AMC”)	98.6%	Corporation	British Virgin Isles	Subsidiary

As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the “Trust”), whose beneficiaries are the existing shareholders of MMEX. The accounts of AMC are included in the consolidated financial statements due to the common ownership. AMC through the Trust controls the Hunza coal interest previously owned by the Company.

On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (“LatAm”) pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan.

All significant inter-company transactions have been eliminated in the preparation of the consolidated financial statements.

These financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the information contained therein.

The Company has adopted a fiscal year end of April 30.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in our Annual Report on Form 10-K for the year ended April 30, 2016 filed with the SEC on January 13, 2017.

Use of Estimates

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

Derivative liabilities

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We estimate the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Fair value of financial instruments

Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, and ASC 825, Financial Instruments, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's financial statements as reflected herein. The carrying amounts of cash, accounts payable, accrued expenses and notes reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:

October 31, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	362,511	$	-	$	-	$	362,511

April 30, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	395,619	$	-	$	-	$	395,619

Basic and diluted loss per share

Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the three months and six months ended October 31, 2016, potential dilutive shares had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share.

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Reclassifications

Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year periods presentation.

Recently Issued Accounting Pronouncements

In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-4, “Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In January 2017, the FASB issued ASU No. 2017-1, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU are effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update are to be applied prospectively on or after the effective date. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In October 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties That are Under Common Control.” This update amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

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GOING CONCERN

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 3 - GOING CONCERN

Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $30,364,670 and a total stockholders’ deficit of $2,932,519 at October 31, 2016, and have reported negative cash flows from operations since inception. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months, and we expect to have ongoing requirements for capital investment to implement our business plan. Finally, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which we operate.

Since inception, our operations have primarily been funded through private debt and equity financing, as well as capital contributions by our subsidiaries' partners, and we expect to continue to seek additional funding through private or public equity and debt financing.

Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our operations will be adequate to meet our needs. These factors, among others, indicate that we may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 4 - RELATED PARTY TRANSACTIONS

During the past few years, Tydus Richards, the former Chairman of our board of directors and shareholder, made certain payments on behalf of the Company. The Company has partially reimbursed Mr. Richards for these advances. As of October 31, 2016 and April 30, 2016, a remaining balance payable of $31,633 is included in accrued expenses – related party.

On October 9, 2014, convertible notes payable in default to an accredited investor of $1,650,000, $120,000 and $180,000 were assigned to The Maple Gas Corporation, a related party owned by Mr. Jack W. Hanks, a director and officer of the Company. On May 8, 2015, The Maple Gas Corporation converted the notes into 194,999,999 common shares of the Company at $0.01 per share, which resulted in a loss on extinguishment of debt of $975,000. The issuance of the common shares to Maple Structure Holdings was approved by the Company’s Board of Directors Resolution dated May 18, 2015, and the shares were issued on May 2, 2016. At April 30, 2016, common stock payable included an obligation of $2,925,000 for the issuance of the shares.

Accounts payable to related parties, comprised of amounts payable to The Maple Gas Corporation, totaled $4,760 and $0 at October 31, 2016 and April 30, 2016, respectively.

Accrued expenses (see Note 6) to related parties totaled $67,545 and $64,420 as of October 31, 2016 and April 30, 2016, respectively.

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PROPERTY AND EQUIPMENT

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 5 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at:

	October 31, 2016			April 30, 2016
Computer software and hardware	$	25,023		$	25,023
Less accumulated depreciation and amortization		(25,023	)		(24,637	)
	$	-		$	386

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ACCRUED EXPENSES

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 6 - ACCRUED EXPENSES

Accrued expenses consisted of the following at:

	October 31, 2016		April 30, 2016
Accrued payroll	$	240,059	$	240,309
Accrued consulting		75,633		75,633
Accrued interest		742,529		670,324
Other		62,541		62,541
	$	1,120,762	$	1,048,807

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NOTES PAYABLE

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 7 - NOTES PAYABLE

Notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an unrelated party, maturing July 15, 2010, with interest at 10%	$	300,000	$	300,000
Note payable to an unrelated party, maturing December 31, 2010, with interest at 10%		25,000		25,000
Note payable to an unrelated party, maturing January 27, 2012, with interest at 25%		50,000		50,000
	$	375,000	$	375,000

Accrued interest payable on notes payable, currently in default, totaled $297,102 and $276,477 at October 31, 2016 and April 30, 2016, respectively.

Convertible notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an accredited investor, maturing March 1, 2013, with interest at 1.87% per month, secured with 900,000 common shares of the Company owned by the president and CEO of the Company	$	120,000	$	120,000
Note payable to an unrelated party, maturing March 18, 2014, with interest at 10%		75,001		75,001
Total	$	195,001	$	195,001

Accrued interest payable on convertible notes payable, currently in default, totaled $129,272 and $112,058 at October 31, 2016 and April 30, 2016, respectively.

On January 2, 2013, the Company closed a note purchase agreement with an accredited investor pursuant to which the Company sold a $120,000 note in a private placement transaction. The note was due and payable on March 1, 2013, is currently in default and carries a monthly interest rate of 1.87%. The note purchase agreement included the issuance of 300,000 shares of the Company’s common stock. The note is secured with 900,000 shares of the Company’s common stock owned by Jack W. Hanks, the Company’s President and CEO. The 300,000 shares were valued at $0.10 per share, the closing price of the Company’s common stock on January 2, 2013, and recorded as a $30,000 increase to debt discount and an increase to common stock payable.

The Company allocated the proceeds from the issuance of the notes to the warrants when applicable and to the notes based on their estimated fair market values at the date of issuance using the Black-Scholes option pricing model. The debt discount resulting from interest and the value of warrants computed at the inception of the notes payable was amortized as additional interest expense over the term of the notes.

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CONVERTIBLE PREFERRED STOCK

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 8 - CONVERTIBLE PREFERRED STOCK

Convertible Preferred Stock, Currently in Default

On June 30, 2011, the Company issued 360,000 shares of Armadillo Mining Corporation Preferred Stock to five unrelated parties in exchange for an investment of $360,000. The Preferred Stock carry a 25% cumulative dividend and have a mandatory redemption feature on December 31, 2011 at a price of $1.25 per share. In addition, the Company issued 360,000 warrants to purchase shares of the Company’s common stock at an exercise price of $0.60 per share on or before three years from the repayment or conversion date.

On January 6, 2012, three unrelated parties converted their Preferred Stock and accrued dividends of $312,500 into 2,983,293 shares of the Company’s common stock at a price of $.10475 per share. As the conversion took place at below the market price and not within the terms of the agreement on the date of conversion, a loss of $75,328 was recorded. As of October 31, 2016 and April 30, 2016, the remaining face value of the Preferred Stock was $137,500. Accrued dividends on the Preferred Stock totaled $316,165 and $281,789 as of October 31, 2016 and April 30, 2016, respectively.

The Company recorded interest expense, which included amortization of debt discount on certain debt in prior years, totaling $80,700 and $36,107 for the three months ended October 31, 2016, respectively, and $116,939 and $456,997 for the six months ended October 31, 2016 and 2015, respectively.

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DERIVATIVE LIABILITIES

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 9 - DERIVATIVE LIABILITIES

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives.

During the six months ended October 31, 2016, we had the following activity in our derivative liabilities:

Balance, April 30, 2016	$	395,619
Change in fair value of derivative liabilities		(33,108	)
Balance, October 31, 2016	$	362,511

The Company calculated the fair value of the derivatives using a multinomial lattice model simulation. The model is based on a probability weighted discounted cash flow model using projections of the various potential outcomes.

Key inputs and assumptions used in valuing the Company’s derivative liabilities are as follows for issuances of warrants:

· Stock prices on all measurement dates were based on the fair market value

· Risk-free interest rates ranging from 1.03% – 2.49%

· The probability of future financing was estimated at 100%

· Computed volatility ranging from 103% to 249%

These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

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STOCKHOLDERS DEFICIT

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 10 - STOCKHOLDERS DEFICIT

Authorized Shares

As of April 6, 2016, the Company amended its articles of incorporation to increase its authorized shares to 1,000,000,000 common shares and 10,000,000 preferred shares, and subsequently increased its authorized common shares to 3,000,000 shares (Note 14). The increase in authorized shares has been given retroactive effect in the accompanying condensed consolidated financial statements for all periods presented.

Stock Issuances

On May 2, 2016, the Company issued 194,999,999 shares of its common stock to a related party pursuant to the conversion of notes payable in default (see Note 4), reducing stock subscriptions payable by $2,925,000.

As part of a private placement to qualified investors, the Company issued 1,096,397 shares of its common stock on July 12, 2016 to an investor for stock subscriptions payable of $10,000.

On October 31, 2016, the Company issued 7,000,000 shares of its common stock as a settlement fee valued at $34,300 to an institution lender pursuant to a Settlement Agreement and Stipulation (see Note 11).

Common Stock Payable

During the six months ended October 31, 2016, the Company completed subscription agreements for common stock and warrants with qualified investors in a private placement for cash of $32,384. The shares of common stock were issued subsequent to October 31, 2016, and common stock payable included $32,384 at October 31, 2016 related to these transactions. The attached warrants were identified as derivatives, resulting in their inclusion in the derivative liabilities of $362,511 at October 31, 2016 (see Note 9).

Stock Options

On March 7, 2012, the Company issued a total of 2,000,000 stock options exercisable at $0.35 per share for a period of ten years from the date of grant. The Company did not grant any stock options during the six months ended October 31, 2016.

A summary of stock option activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		2,000,000	$	0.35		5.85
Granted		-		-
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		2,000,000	$	0.35		5.35

The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which value is amortized to stock-based compensation expense over the vesting period of the options. No stock-based compensation expense was recorded during the three months and six months ended October 31, 2016 and 2015 related to stock option grants. There was no unrecognized stock option expense at October 31, 2016.

Warrants

The Company has issued warrants to qualified investors in a private placement, for debt discounts or other stock-based compensation. These warrants generally vest upon grant and are valued using the Black-Scholes option pricing model or multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes.

A summary of warrant activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		14,811,362	$	0.01		5.84
Granted		2,518,445	$	0.01
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		17,329,807	$	0.01		5.33

Common Stock Reserved

At October 31, 2016, 17,329,807 shares of the Company’s common stock were reserved for issuance of outstanding warrants.

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SETTLEMENT AGREEMENT AND STIPULATION

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 11 - SETTLEMENT AGREEMENT AND STIPULATION

Settlement Agreement and Stipulation

On October 28, 2016, the Company entered into a Settlement Agreement and Stipulation (the “Settlement Agreement”) with Rockwell Capital Partners, Inc. (“RCP”). Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables between the Company and designated vendors totaling $109,391 (the “Payables” or “Claims”) and will exchange the portion of such Payables assigned for a Settlement Amount payable in common shares of the Company.

In settlement of the Claims, the Company shall issue and deliver to RCP, in one or more tranches as necessary, shares of the Company’s common stock (“Common Stock”), subject to adjustment and ownership limitations as set forth in the Settlement Agreement, sufficient to satisfy the Claims amount at a 50% discount to market based on the market price during the valuation period as defined in the Settlement Agreement. The Company also issued 7,000,000 shares of Common Stock as a settlement fee on October 31, 2016.

On October 28, 2016, a circuit court in Florida issued an order confirming the fairness of the terms of the Settlement Agreement within the meaning of exemption from registration provided by Section 3(a) (10) of the Securities Act of 1933.

Subsequent to October 31, 2016, a total of 452,000,000 shares of the Company’s common stock were issued to the RCP (see Note 14).

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NON-CONTROLLING INTERESTS

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 12 - NON-CONTROLLING INTERESTS

On September 23, 2010, the Company, through a reverse merger, acquired 100% of the outstanding shares of Maple Carpenter Creek Holdings, Inc., ("MCCH"), a holding Company, with an 80% interest in Maple Carpenter Creek, LLC ("MCC"), which in turn owned a 95% interest in the subsidiary, Carpenter Creek, LLC ("CC"), and a 98.12% interest in Armadillo Holdings Group Corp. ("AHGC"), which in turn owned an 80% interest in Armadillo Mining Corp. ("AMC"). The non-controlling interest of 1.88% in AHGC was acquired by MCCH on December 21, 2010 in exchange for 31,334 shares of the Company’s common stock resulting in 100% ownership of AHGC. On March 22, 2011, AHGC acquired 14.6% of AMC and on April 30, 2012, an additional 4% interest for a total of 98.6% based upon agreement with the minority interest holder to reduce their interest based upon proportionate share of additional capital contributed to AMC.

As of April 13, 2016, the Company assigned AMC to an irrevocable trust (the "Trust"), whose beneficiaries are the existing shareholders of MMEX. AMC through the Trust controls the Hunza coal interest previously owned by the Company.

On September 1, 2016, the Company entered into a stock assignment agreement with LatAm Services, LLC (“LatAm”) pursuant to which it assigned MCCH to LatAm. With the assignment of MCCH to LatAm, the Company has exited the Hunza coal project to focus on energy related projects under its new business plan.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 13 - COMMITMENTS AND CONTINGENCIES

Legal

There were no legal proceedings against the Company.

Operating Lease Commitments

The Company acquired the Bolzer Lease pursuant to a September 23, 2010 merger. Subsequently, notice of termination on this lease effective April 26, 2010 was provided by previous management. The Company has recorded an accrued expense for the minimum lease payment of $62,541 for the January 2010 payment.

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SUBSEQUENT EVENTS

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

NOTE 14 - SUBSEQUENT EVENTS

In accordance with ASC 855-10, all subsequent events have been reported through the filing date as set forth below.

Refinery Transaction

On March 4, 2017, MMEX Resources Corporation (the “Company”) entered into an agreement with Maple Resources Corporation (“Maple”), a related party, to acquire all of Maple’s right, title and interest (the “Rights”) in plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the “Refinery Transaction” or the “Project”). Pursuant to the Refinery Transaction, the Company agreed to acquire the Rights in exchange for the issuance of 7,000,000,000 new common shares (the “Purchased Shares”).

The Refinery Transaction provides for the Company to issue the Purchased Shares in two tranches, of which the First Tranche of 1,500,000,000 shares was issued on March 4, 2017. The Second Tranche of 5,500,000,000 shares is to be issued once the Company’s Articles of Incorporation are amended to increase the number of authorized shares of common stock, as more particularly described below. In addition, the Second Tranche amount of shares will be adjusted (up or down) subject to valuation of the Refinery Transaction by a third party outside consultant.

Completion of the Project is subject to the receipt of required governmental permits and completion of required debt and equity financing.

Amendments of Articles of Incorporation

As of November 29, 2016, the Company amended its articles of incorporation to increase its authorized common shares to 3,000,000,000 shares.

On March 7, 2017, the holders of more than 50.1% of the outstanding shares of common stock of the Company executed their written consent in lieu of special meeting approving an amendment and restatement of the articles of incorporation to provide for an increase in the authorized shares of common stock from 3,000,000,000 to 10,000,000,000 shares. In addition, the articles of incorporation will be amended to provide for two classes of common shares: (i) Class A Shares, having one vote per share, and (ii) Class B Shares, with 10 votes per share. All of the currently outstanding shares of common stock will be reclassified as Class A Shares, except that all of the Purchased Shares issued or to be issued in the Refinery transaction will be Class B Shares. Other than the provisions of the voting rights, the two classes of shares of common stock will have equal terms and conditions.

Private Placement

As the Company continues to expand its business and implement its business strategy, its current monthly cash flow requirements will exceed its near term cash flow from operations. In order to fund its development costs, the Company initiated in fiscal year 2016 a private placement to qualified investors for cash and services. Through the date of the filing of this report, $118,230 cash and $60,000 in services had been received, including $49,200 cash from related parties, for a total of 41,784,320 common shares of the Company and a total of 43,025,313 warrants. The warrants entitle the investors to purchase common shares at exercise prices of $0.0001 and $0.01 per share through March 1, 2022. Of the common shares issued, 1,096,397 shares were issued in July 2016 and a total of 40,687,923 shares were issued in December 2016 and January 2017.

Settlement Agreement

As discussed in Note 11, on October 28, 2016, the Company entered into a Settlement Agreement) with RCP. Pursuant to the Settlement Agreement, as amended, RCP has purchased certain outstanding payables from the Company for shares of common stock of the Company.

The Company’s creditors received a total of $84,782 pursuant to the Settlement Agreement. Beginning in November 2016, we have issued a cumulative total of 489,000,000 common shares pursuant to the Settlement Agreement and, as of March 9, 2017, have terminated any further obligation to issue shares. Our creditors will not receive further funding from the Settlement Agreement.

Other Issuances of Common Stock

On January 24, 2017, the Company entered into an agreement with a former employee to issue 2,082,190 shares of the Company’s common stock in settlement of accrued salaries of $208,219.

On January 24, 2017, the Company issued 28,625,000 shares of its common stock to a consultant in payment of services valued at $5,725.

Subsequent to October 31, 2016, the Company issued a total of 30,000,000 shares of its common stock to investors for cash of $6,000.

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SUMMARY OF SIGNIFICANT ACCOUNTING (POLICIES)

6 Months Ended

Oct. 31, 2016

Summary Of Significant Accounting Policies Policies

Use of estimates

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

Derivative liabilities

In a series of subscription agreements, we have issued warrants that contain certain anti-dilution provisions that we have identified as derivatives. We estimate the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

Fair value of financial instruments

Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, and ASC 825, Financial Instruments, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's financial statements as reflected herein. The carrying amounts of cash, accounts payable, accrued expenses and notes reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:

October 31, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	362,511	$	-	$	-	$	362,511

April 30, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	395,619	$	-	$	-	$	395,619

Basic and diluted loss per share

Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the three months and six months ended October 31, 2016, potential dilutive shares had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share.

Issuance of shares for non-cash consideration

The Company accounts for the issuance of equity instruments to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The Company's accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of the standards issued by the FASB. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor's performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.

Reclassifications

Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year periods presentation.

Recently issued accounting pronouncements

In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-4, “Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In January 2017, the FASB issued ASU No. 2017-1, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of this ASU are effective for public business entities for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update are to be applied prospectively on or after the effective date. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In October 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties That are Under Common Control.” This update amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The primary beneficiary of a VIE is the reporting entity that has a controlling financial interest in a VIE and, therefore, consolidates the VIE. A reporting entity has an indirect interest in a VIE if it has a direct interest in a related party that, in turn, has a direct interest in the VIE. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently unable to determine the impact on its consolidated financial statements of the adoption of this new accounting pronouncement.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or results of operations.

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BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Tables)

6 Months Ended

Oct. 31, 2016

Background Organization And Basis Of Presentation Tables

Entity operational details

The accompanying condensed consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership:

Name of Entity	%	Form of Entity	State of Incorporation	Relationship
MMEX Resources Corporation (“MMEX”)	-	Corporation	Nevada	Parent
MCC Merger, Inc. (“MCCM”)	100%	Corporation	Delaware	Holding Subsidiary
Maple Carpenter Creek Holdings, Inc. (“MCCH”)	100%	Corporation	Delaware	Subsidiary
Maple Carpenter Creek, LLC (“MCC”)	80%	LLC	Nevada	Subsidiary
Carpenter Creek, LLC (“CC”)	95%	LLC	Delaware	Subsidiary
Armadillo Holdings Group Corp. (“AHGC”)	100%	Corporation	British Virgin Isles	Subsidiary
Armadillo Mining Corp. (“AMC”)	98.6%	Corporation	British Virgin Isles	Subsidiary

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Oct. 31, 2016

Summary Of Significant Accounting Policies Tables

Summary of derivative liabilities

Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:

October 31, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	362,511	$	-	$	-	$	362,511

April 30, 2016	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	395,619	$	-	$	-	$	395,619

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Oct. 31, 2016

Property And Equipment Tables

Property and Equipment

Property and equipment consisted of the following at:

	October 31, 2016			April 30, 2016
Computer software and hardware	$	25,023		$	25,023
Less accumulated depreciation and amortization		(25,023	)		(24,637	)
	$	-		$	386

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ACCRUED EXPENSES (Tables)

6 Months Ended

Oct. 31, 2016

Accrued Expenses Tables

Accrued expenses

Accrued expenses consisted of the following at:

	October 31, 2016		April 30, 2016
Accrued payroll	$	240,059	$	240,309
Accrued consulting		75,633		75,633
Accrued interest		742,529		670,324
Other		62,541		62,541
	$	1,120,762	$	1,048,807

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NOTES PAYABLE (Tables)

6 Months Ended

Oct. 31, 2016

Income Taxes Tables

Notes payable, currently in default

Notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an unrelated party, maturing July 15, 2010, with interest at 10%	$	300,000	$	300,000
Note payable to an unrelated party, maturing December 31, 2010, with interest at 10%		25,000		25,000
Note payable to an unrelated party, maturing January 27, 2012, with interest at 25%		50,000		50,000
	$	375,000	$	375,000

Convertible notes payable, currently in default

Convertible notes payable, currently in default, consist of the following at:

	October 31, 2016		April 30, 2016
Note payable to an accredited investor, maturing March 1, 2013, with interest at 1.87% per month, secured with 900,000 common shares of the Company owned by the president and CEO of the Company	$	120,000	$	120,000
Note payable to an unrelated party, maturing March 18, 2014, with interest at 10%		75,001		75,001
Total	$	195,001	$	195,001

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DERIVATIVE LIABILITIES (Tables)

6 Months Ended

Oct. 31, 2016

Derivative Liabilities Tables

DERIVATIVE LIABILITIES

During the six months ended October 31, 2016, we had the following activity in our derivative liabilities:

Balance, April 30, 2016	$	395,619
Change in fair value of derivative liabilities		(33,108	)
Balance, October 31, 2016	$	362,511

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STOCKHOLDERS DEFICIT (Tables)

6 Months Ended

Oct. 31, 2016

Changes In Stockholders Equity Deficit Tables

Summary of stock option activity

A summary of stock option activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		2,000,000	$	0.35		5.85
Granted		-		-
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		2,000,000	$	0.35		5.35

Summary of warrant activity

A summary of warrant activity during the six months ended October 31, 2016 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, April 30, 2016		14,811,362	$	0.01		5.84
Granted		2,518,445	$	0.01
Canceled / Expired		-		-
Exercised		-		-
Outstanding, October 31, 2016		17,329,807	$	0.01		5.33

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BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Details)	6 Months Ended
	Oct. 31, 2016
State of Incorporation	Nevada
Mmex Resources Corporation [Member]
Ownership Percentage	-
Form of Entity	Corporation
State of Incorporation	Nevada
Relationship	Parent
Mcc Merger Inc [Member]
Ownership Percentage	100%
Form of Entity	Corporation
State of Incorporation	Delaware
Relationship	Holding Subsidiary
Maple Carpenter Creek Holdings Inc [Member]
Ownership Percentage	100%
Form of Entity	Corporation
State of Incorporation	Delaware
Relationship	Subsidiary
Maple Carpenter Creek Llc [Member]
Ownership Percentage	80%
Form of Entity	LLC
State of Incorporation	Nevada
Relationship	Subsidiary
Carpenter Creek Llc [Member]
Ownership Percentage	95%
Form of Entity	LLC
State of Incorporation	Delaware
Relationship	Subsidiary
Armadillo Holdings Group Corp [Member]
Ownership Percentage	100%
Form of Entity	Corporation
State of Incorporation	British Virgin Isles
Relationship	Subsidiary
Armadillo Mining Corp [Member]
Ownership Percentage	98.6%
Form of Entity	Corporation
State of Incorporation	British Virgin Isles
Relationship	Subsidiary

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BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative)	6 Months Ended
	Oct. 31, 2016
Background Organization And Basis Of Presentation Details Narrative
State Country Name	Nevada
Date of incorporation	May 19, 2005
Description of stock issued	Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Derivative liability	$ 362,511	$ 395,619
Level 1 [Member]
Derivative liability
Level 2 [Member]
Derivative liability
Level 3 [Member]
Derivative liability	$ 362,511	$ 395,619

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Going Concern (Details Narrative) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Going Concern Details Narrative
Accumulated deficit	$ (30,364,670)	$ (30,155,127)
Total Stockholders' Deficit	$ (2,932,519)	$ (2,801,699)

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Related Party Transactions (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	May 08, 2015	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016	Oct. 09, 2014
Reimbursed amount outstanding		$ 31,633		$ 31,633		$ 31,633
Loss on extinguishment of debt			$ 48,050		$ (1,365,521)
Accounts payable - related party		4,760		4,760
Accrued expenses - related party		$ 67,545		$ 67,545		64,420
Maple Gas Corporation [Member]
Default in convertible notes payable							$ 1,650,000
Converted note common shares	194,999,999
Convertible note per share	$ 0.01
Loss on extinguishment of debt	$ 975,000
Stock payable obligation						$ 2,925,000
related party owned by Mr. Jack W. Hanks [Member]
Default in convertible notes payable							120,000
Director and officer of the Company [Member]
Default in convertible notes payable							$ 180,000

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Property and Equipment (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Property And Equipment Details
Computer software and hardware	$ 25,023	$ 25,023
Less accumulated depreciation and amortization	(25,023)	(24,637)
Property and equipment, net		$ 386

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Property And Equipment Details Narrative
Depreciation and amortization expense	$ 62	$ 375	$ 386	$ 1,261

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Accrued Expenses (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Total Accrued Expenses	$ 1,120,762	$ 1,048,807
Accrued Payroll [Member]
Total Accrued Expenses	240,059	240,309
Accrued Consulting [Member]
Total Accrued Expenses	75,633	75,633
Accrued Interest [Member]
Total Accrued Expenses	742,529	670,324
Other [Member]
Total Accrued Expenses	$ 62,541	$ 62,541

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NOTES PAYABLE (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Notes payable	$ 375,000	$ 375,000
Note Payable [Member]
Notes payable	300,000	300,000
Note payable One [Member]
Notes payable	25,000	25,000
Note payable Two [Member]
Notes payable	$ 50,000	$ 50,000

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NOTES PAYABLE (Details 1) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Convertible notes payable	$ 195,001	$ 195,001
Convertible Notes Payable [Member]
Convertible notes payable	120,000	120,000
Convertible Notes Payable One [Member]
Convertible notes payable	$ 75,001	$ 75,001

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NOTES PAYABLE (Details Narrative) - USD ($)	Oct. 31, 2016	Apr. 30, 2016	Jan. 02, 2013
Accrued interest	$ 297,102	$ 276,477
Accrued interest payable on convertible notes payable	$ 129,272	$ 112,058
Common stock, par value	$ 0.001	$ 0.001
Convertible Notes Payable [Member]
New notes issued			120,000
Note interest rste			1.87%
Increase to debt discount			$ 30,000
Issue of shares			300,000
Note secured by common stock			900,000
Common stock, par value			$ 0.10

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CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 06, 2012	Jun. 30, 2011	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016
loss on extinguishment of debt				$ 48,050		$ (1,365,521)
Interest expense			80,700	36,107	116,939	456,997
Convertible Preferred Stock [Member]
Share issued		360,000
Investment		$ 360,000
Conversion price	$ 0.10475	$ 1.25
Preferred Stock dividend rate		25.00%
Accrued dividends	$ 312,500		316,165		316,165		$ 281,789
Accrued dividend converted into common shares	2,983,293
loss on extinguishment of debt	$ 75,328
Warrent issued		360,000
Common stock exercise price		$ 0.60
Remaining face value of Preferred Stock			137,500		137,500		$ 137,500
Interest expense			$ 80,700	$ 36,107	$ 116,939	$ 456,997

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DERIVATIVE LIABILITIES (Details)	6 Months Ended
	Oct. 31, 2016 USD ($)
Notes to Financial Statements
Derivative liabilities	$ 395,619
Change in fair value of derivative liabilities	(33,108)
Derivative liabilities	$ 362,511

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DERIVATIVE LIABILITIES (Details Narrative)	6 Months Ended
	Oct. 31, 2016
Probability of future financing	100.00%
Minimum [Member]
Risk-free interest rates	1.03%
Volatility	103.00%
Maximum [Member]
Risk-free interest rates	2.49%
Volatility	249.00%

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STOCKHOLDERS’ DEFICIT (Details)	6 Months Ended
	Oct. 31, 2016 $ / shares shares
Number of options
Beginning Balance | shares	2,000,000
Granted | shares
Canceled / Expired | shares
Exercised | shares
Ending Balance | shares	2,000,000
Weighted Average Exercise Price Per share
Beginning Balance | $ / shares	$ 0.35
Granted | $ / shares
Canceled / Expired | $ / shares
Exercised | $ / shares
Ending Balance | $ / shares	$ 0.35
Weighted Average Remaining Contractual Life (in years) Beginning	5 years 10 months 6 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	5 years 4 months 6 days

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STOCKHOLDERS’ DEFICIT (Details 1)	6 Months Ended
	Oct. 31, 2016 $ / shares shares
Number of warrants
Beginning Balance | shares	2,000,000
Granted | shares
Canceled / Expired | shares
Exercised | shares
Ending Balance | shares	2,000,000
Weighted Average Exercise Price Per Share
Beginning Balance | $ / shares	$ 0.35
Granted | $ / shares
Canceled / Expired | $ / shares
Exercised | $ / shares
Ending Balance | $ / shares	$ 0.35
Weighted Average Remaining Contractual Life (in years) Beginning	5 years 10 months 6 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	5 years 4 months 6 days
Warrants [Member]
Number of warrants
Beginning Balance | shares	14,811,362
Granted | shares	2,518,445
Canceled / Expired | shares
Exercised | shares
Ending Balance | shares	17,329,807
Weighted Average Exercise Price Per Share
Beginning Balance | $ / shares	$ 0.01
Granted | $ / shares	0.01
Canceled / Expired | $ / shares
Exercised | $ / shares
Ending Balance | $ / shares	$ 0.01
Weighted Average Remaining Contractual Life (in years) Beginning	5 years 10 months 2 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	5 years 3 months 29 days

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STOCKHOLDERS’ DEFICIT (Details Narrative) - USD ($)	6 Months Ended
	Oct. 31, 2016	Jul. 12, 2016	May 02, 2016	Apr. 30, 2016	Apr. 06, 2016	Mar. 07, 2012
Common stock, Authorized	3,000,000,000			3,000,000,000
Common stock shares Issued	383,528,409			180,432,013
Private placement for cash	$ 32,384
Related transaction	32,384
Derivative liabilities	$ 362,511
Number of options	2,000,000			2,000,000
Stock options exercisable	$ 0.35			$ 0.35
Common stock reserved	17,329,807
Common stock issued for settlement, Shares	7,000,000
Common stock issued for settlement, Amount	$ 34,300
Authorized Shares [Member]
Increase authorized common share					1,000,000,000
Common stock, Authorized					3,000,000
Preferred stock Authorized					10,000,000
Stock Issuances [Member]
Common stock shares Issued		1,096,397	194,999,999
Common stock subscriptions reducing		$ 10,000	$ 2,925,000
Stock Options [Member]
Number of options						2,000,000
Stock options exercisable						$ 0.35

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SETTLEMENT AGREEMENT AND STIPULATION (Details Narrative)	6 Months Ended
	Oct. 31, 2016 USD ($) shares
Notes to Financial Statements
Payables | $	$ 109,391
Common stock issued for settlement, Shares	7,000,000
Discount in settlement for claims	50.00%
Common stock issued for RCP	452,000,000

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NON-CONTROLLING INTERESTS (Details Narrative) - shares	Apr. 30, 2012	Mar. 22, 2011	Dec. 21, 2010	Sep. 23, 2010
AHGC [Member]
Controling interest			100.00%	98.12%
Non-controlling interest			1.88%
Exchange shares			31,334
Acquired of AMC		14.60%
Additional interest	4.00%
Total interest	98.60%
MCCH [Member]
Controling interest				100.00%
MCC [Member]
Controling interest				80.00%
CC [Member]
Controling interest				95.00%
AMC [Member]
Controling interest				80.00%

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COMMITMENTS AND CONTINGENCIES (Details Narrative)	Apr. 26, 2010 USD ($)
Commitments And Contingencies Details Narrative
Minimum lease payment	$ 62,541

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SUBSEQUENT EVENTS (Details Narrative)	Mar. 07, 2017 $ / shares shares	Mar. 04, 2017 USD ($) Barrels shares	Mar. 09, 2017 USD ($) shares	Jan. 31, 2017 shares	Jan. 24, 2017 USD ($) shares	Jan. 13, 2017 USD ($) $ / shares shares	Dec. 31, 2016 shares	Nov. 29, 2016 shares	Oct. 31, 2016 USD ($) shares	Jul. 31, 2016 shares	Apr. 30, 2016 USD ($) shares	Oct. 31, 2015 USD ($)	Apr. 30, 2015 USD ($)
Common stock, Authorized									3,000,000,000		3,000,000,000
Cash | $									$ 209		$ 1,030	$ 2,401	$ 141
Private Placement [Member]
Common shares										1,096,397
Qualified investor [Member]
Cash | $									$ 2,500
Common shares									12,500,000
Subsequent Event [Member] | Private Placement [Member]
Cash | $						$ 118,230
Services | $						60,000
Cash from related party | $						$ 49,200
Common shares				40,687,923		41,784,320	40,687,923
Warrants						43,025,313
Subsequent Event [Member] | Private Placement [Member] | Minimum [Member]
Common shares exercise price | $ / shares						$ 0.0001
Subsequent Event [Member] | Private Placement [Member] | Maximum [Member]
Common shares exercise price | $ / shares						$ 0.01
Subsequent Event [Member] | Settlement Agreement and Stipulation [Member]
Company’s creditors received | $			$ 84,782
Common stock issued to RCP			489,000,000
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member]
Common stock, Authorized								3,000,000,000
Outstanding shares percentage for writen consent	more than 50.1%
Votes per share | $ / shares	$ 10
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member] | Minimum [Member]
Common stock, Authorized	3,000,000,000
Subsequent Event [Member] | Amendment of Articles of Incorporation [Member] | Maximum [Member]
Common stock, Authorized	10,000,000,000
Subsequent Event [Member] | Consultant [Member]
Services | $					$ 5,725
Common shares					28,625,000
Subsequent Event [Member] | Empolyee [Member]
Common shares					2,082,190
Accrued salaries | $					$ 208,219
Subsequent Event [Member] | Maple [Member]
Related party transaction | $		$ 450,000,000
Crude oil refines per day | Barrels		50,000
Exchange of new common share		7,000,000,000
Company to issue the purchase shares		two tranches
First tranch shares issued		1,500,000,000
Second tranch shares issued		5,500,000,000