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Related Party Transactions
12 Months Ended
Apr. 30, 2016
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

 

Upon the acquisition of DTS8 Holdings on April 30, 2012, the Company assumed a loan from Sean Tan to DTS8 Holdings. Sean Tan was the Company’s Chief Executive Officer and director until August 10, 2015, when Sean Tan resigned and Douglas Thomas replaced his position. As of April 30, 2015, $120,000 due to Sean Tan was included in due from related parties, the loan bears no interest and has no fixed term of repayment. The Company entered into a debt settlement agreement dated August 28, 2015 with Sean Tan to convert $120,000 of debt owed by the Company, at the price of $0.07 per share, being the closing stock price at August 28, 2015, for a total of 1,714,286 shares of the Company’s common stock.

 

On March 31, 2011, the Company entered into a management agreement with Sean Tan, the Company’s former officer and director, to serve as the President and Chief Executive Officer of the Company. This contract was terminated effective August 10, 2015. The Company entered into a debt settlement agreement dated August 28, 2015 with Sean Tan to convert the management fee payment of $128,000 owed by the Company, at the price of $0.07 per share, being the closing stock price at August 28, 2015, for a total of 1,828,571 shares of the Company’s common stock. As of April 30, 2016 and April 30, 2015, $nil and $110,000 of management fees was owed to Mr. Tan, respectively.

 

On August 10, 2015, Company entered into a management agreement with Douglas Thomas to serve as the President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company. Mr. Thomas’s engagement commenced on the August 10, 2015, and shall continue on a year-to-year basis until terminated by either party upon sixty days prior written notice to the other party. The Company shall make a monthly management fee payment of $6,000 to Mr. Thomas, in arrears, on the 25th day of each month and 4 million restricted common shares of the Company as engagement bonus remuneration. As of April 30, 2016 and April 30, 2015, the Company owed Mr. Thomas $118,549 and $43,000, respectively. The balance of $43,000 as of April 30, 2015 was included in accounts payable and accruals due to the fact that Mr. Thomas was not a related party until August 10, 2015.

 

On August 31, 2015, the Company entered into an agreement with Cherry Cai to serve as the financial controller of the Company commenced on September 1, 2015, and shall continue on a year-to-year basis until terminated by either party upon thirty days prior written notice to the other party. The Company shall make monthly fee payment of $3,000 to Cherry, in arrears, on 25th day of each month and issue 1 million shares of common stock of the Company; 500,000 shares were issued in September 2015 and balance of 500,000 shares was to be issued on September 1, 2016. As of the date of this Report, the Company has deferred the issuance the 500,000 shares to a later date. As of April 30, 2016 and April 30, 2015, the Company owed Ms. Cai $1,700 and $nil, respectively.

 

On April 30, 2012, upon its acquisition of DTS8 Holdings, the Company assumed a loan payable of $382,396 owed by DTS8 Coffee to a consultant who provides accounting and financial reporting services to the Company through his company from time to time on a monthly basis. The amounts owed, as loan payable, as of April 30, 2016, and 2015, were $251,027 and $382,152, respectively. During the year ended April 30, 2016, the Company paid $110,700 towards the outstanding loan payable. The balance of the amount is unsecured, non-interest bearing, has no fixed term of repayment, and is repayable on demand, and the consultant has agreed not to demand payment within the next fiscal year. In addition, for the years ended April 30, 2016 and 2015, the Company owed the consultant $251,500 and $160,800 respectively for consulting services provided to the Company. Accordingly, as of April 30, 2016 and 2015, the total loans and consulting fees owed to the consultant totaled $502,527 and $542,952.

 

During the year ended April 30, 2016, the Company made reimbursement to Alex Liang, the Company’s former Chairman and director, $7,503 for the consultant fee and travel expenses incurred for business operation purpose. As of April 30, 2016 and April 30, 2015, there was $nil due to this related party.

 

Also see Note 10 for common stock issued to related parties.