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 000-54851

DEFENSE TECHNOLOGIES INTERNATIONAL CORP.

(Formerly Canyon Gold Corp.)

 (Exact name of registrant as specified in its charter)

Nevada	Not Applicable
(State or jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number

4730 South Fort Apache Road, Suite 300, Las Vegas, Nevada 89147

(Address of principal executive offices)

(800) 520-9485

(Registrant'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 past 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   [X]     No  [  ]

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  [X]    No  [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company

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]

As of December 15, 2016, there were 30,576,056 shares of the registrant's common stock, $0.0001 par value, outstanding

DEFENSE TECHNOLOGIES INTERNATIONAL CORP.

(Formerly Canyon Gold Corp.)

FORM 10-Q

FOR THE QUARTER ENDED OCTOBER 31, 2016

TABLE OF CONTENTS

	PART  I    —   FINANCIAL INFORMATION	Page
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
Item 4.	Controls and Procedures	23
	PART II   —   OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults upon Senior Securities	24
Item 4.	Mine Safety Disclosure	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
	Signatures	26

2

PART  I   —   FINANCIAL INFORMATION

Item 1.  Financial Statements

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Balance Sheets
	October 31, 2016			April 30, 2016
ASSETS	(Unaudited)
Current assets:
Cash	$	42		$	23
Prepaid expenses		4,000			18,169
Total current assets		4,042			18,192
License agreement		378,600			-
Total assets	$	382,642		$	18,192
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	281,957		$	150,362
Accrued license agreement payments		378,600			-
Accrued interest and fees payable		26,700			63,979
Accrued interest payable – related parties		21,197			17,846
Convertible notes payable, net of discount		449,915			63,486
Convertible notes payable – related parties		57,050			57,050
Notes payable – related parties		79,656			79,656
Derivative liabilities		303,635			2,081,931
Payables – related parties		631,654			565,459
Total current liabilities		2,230,364			3,079,769
Total liabilities		2,230,364			3,079,769
Commitments and Contingencies
Stockholders' deficit:
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, 1,100,000 shares issued and outstanding, respectively		110			110
Common stock, $0.0001 par value; 200,000,000 shares authorized, 26,576,056 and 21,249,676 shares issued and outstanding, respectively		2,658			2,125
Additional paid-in capital		2,435,108			1,447,968
Accumulated deficit		(4,285,598	)		(4,511,780	)
Total stockholders' deficit		(1,847,722	)		(3,061,577	)
Total liabilities and stockholders' deficit	$	382,642		$	18,192

See notes to condensed consolidated financial statements

3

Defense Technologies International Corp.

(Formerly Canyon Gold Corp.)

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended October 31,						Six Months Ended October 31,
	2016			2015			2016			2015
Revenue	$	-		$	-		$	-		$	-
Expenses:
General and administrative		290,008			45,690			968,346			117,161
Exploration costs		1,452			1,725			1,452			3,375
Total expenses		291,460			47,415			969,798			120,536
Loss from operations		(291,460	)		(47,415	)		(969,798	)		(120,536	)
Other income (expense):
Interest expense		(133,466	)		(62,006	)		(438,361	)		(90,420	)
Gain (loss) on derivative liability		(174,907	)		(70,567	)		1,323,152			(144,941	)
Gain on extinguishment of debt		189,786			92,712			311,189			155,459
Total other income (expense)		(118,587	)		(39,861	)		1,195,980			(79,902	)
Income (loss) before income taxes		(410,047	)		(87,276	)		226,182			(200,438	)
Provision for income taxes		-			-			-			-
Net income (loss)	$	(410,047	)	$	(87,276	)	$	226,182		$	(200,438	)

Net income (loss) per common share:
Basic	$	(0.02	)	$	(0.00	)	$	0.01	$	(0.01	)
Diluted	$	(0.02	)	$	(0.00	)	$	0.01	$	(0.01	)
Weighted average common shares outstanding:
Basic		26,922,578			21,049,682			25,009,972		20,988,445
Diluted		26,922,578			21,049,682			32,165,511		20,988,445

See notes to condensed consolidated financial statements

4

Defense Technologies International Corp.

(Formerly Canyon Gold Corp.)

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended October 31,
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	226,182		$	(200,438	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Common shares issued for services		570,110			-
Stock options issued for services		9,056			-
Imputed interest on convertible notes payable		1,125			1,125
Amortization of debt discount to interest expense		409,296			16,585
Debt extension penalty added to note principal		5,000			-
(Gain) loss on derivative liability		(1,323,152	)		144,941
(Gain) on extinguishment of debt		(311,189	)		(155,459	)
Change in operating assets and liabilities:
Increase in prepaid expenses		(2,125	)		(5,642	)
Increase in accounts payable		67,284			49,130
Decrease in accrued interest and fees payable		(15,310	)		(1,169	)
Increase in accrued interest payable – related parties		3,351			3,351
Increase in payables – related parties		66,195			191,379
Net cash provided by (used in) operating activities		(294,177	)		43,803
Cash flows from investing activities:
Net cash provided by investing activities		-			-
Cash flows from financing activities:
Proceeds from convertible notes payable		423,590			-
Repayment of convertible notes payable		(117,894	)		(43,986	)
Payment of debt issuance costs		(11,500	)		-
Net cash provided by (used in) financing activities		294,196			(43,986	)
Net increase (decrease) in cash		19			(183	)
Cash at beginning of period		23			183
Cash at end of period	$	42		$	-

See notes to condensed consolidated financial statements

5

Defense Technologies International Corp.

(Formerly Canyon Gold Corp.)

Notes to Condensed Consolidated Financial Statements

October 31, 2016

(Unaudited)

1. Nature of Operations and Rescission of DTC Agreement

Defense Technologies International Corp. (the "Company ") was incorporated in the State of Delaware on May 27, 1998.  Effective June 15, 2016, the Company changed its name to Defense Technologies International Corp. from Canyon Gold Corp. to more fully represent the Company's expansion goals into the advanced technology sector.

Effective July 15, 2016, the Company executed documents intended to finalize the acquisition of 100% of Defense Technology Corporation, a privately held Colorado company ("DTC"), a developer of defense, detection and protection products to improve security for Anchor schools and other public facilities.  DTC has informed us that it is unable to complete the required financial statements.  Accordingly, the Company will not be able to consolidate DTC's financial statements into its audited financial statements. After a thorough review of the situation and discussions with DTC, we have mutually agreed to rescind the acquisition of DTC and entered into a Rescission Agreement and Mutual Release (the "Rescission Agreement"), dated October 17, 2016.

In connection with the Rescission Agreement with the Company, DTC rescinded its agreement with the inventor and developer of the technology and assets that were subject to the original agreement between the Company and DTC.  On October 19, 2016, the Company entered into a new Definitive Agreement with Controlled Capture Systems, LLC ("CCS"), representing the inventor of the technology and assets previously acquired by DTC, that included a new exclusive Patent License Agreement and Independent Contractor agreement.  Under the license agreement with CCS, the Company acquired the world-wide exclusive rights and privileges to the CCS security technology, patents, products and improvements.  The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties as defined in the Definitive Agreement.  See Note 3.
 

Going Concern

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern.  Through October 31, 2016, the Company has no revenues, has accumulated losses of $4,285,598 and a working capital deficit of $2,226,322 and expects to incur further losses in the development of its business, all of which cast substantial doubt about the Company's ability to continue as a going concern.  Management plans to continue to provide for the Company's capital needs during the year ending April 30, 2017 by issuing debt and equity securities and by the continued support of its related parties (see Note 4).  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.  There is no assurance that funding will be available to continue the Company's business operations.

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2. Basis of Presentation and Summary of Significant Accounting Policies

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States.  The Company's fiscal year end is April 30.

The interim condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission ("SEC") Form 10-Q.  They do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.  Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended April 30, 2016 included in its Annual Report on Form 10-K filed with the SEC.

The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company's consolidated financial position as of October 31, 2016, the consolidated results of its operations for the three and six months ended October 31, 2016 and 2015 and its consolidated cash flows for the six months ended October 31, 2016 and 2015.  The results of operations for any interim period are not necessarily indicative of the results to be expected for the full fiscal year.

Consolidation

These condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Long Canyon Gold Resources Corp.  All inter-company transactions and balances have been eliminated.

Use of Estimates

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

Net Income (Loss) per Common Share

Basic net income or loss per common share is calculated by dividing the Company's net income or loss by the weighted average number of common shares outstanding during the period.  Diluted net income or loss per common share is calculated by dividing the Company's net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding.  Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method.  As of October 31, 2016, the Company had 10,577,860 potential shares issuable under outstanding options, warrants and convertible debt.

7

The common shares used in the computation of our basic and diluted net income (loss) per share are reconciled as follows:

	Three Months Ended October 31,				Six Months Ended October 31,
	2016		2015		2016		2015
Weighted average number of shares outstanding - basic		26,922,578		21,049,682		25,009,972		20,988,445
Dilutive effect of convertible debt		-		-		7,155,539		-
Weighted average number of shares outstanding - diluted		26,922,578		21,049,682		32,165,511		20,988,445

During the three months ended October 31, 2016 and 2015, 9,277,860 and 2,365,098 shares issuable upon exercise of convertible debt, respectively, were excluded from the above calculation due to anti-dilution.  For the six months ended October 31, 2015, 2,365,098 shares issuable upon exercise of convertible debt were excluded from the above calculation due to anti-dilution.

Reclassifications

Certain amounts in the 2015 condensed consolidated financial statements have been reclassified to conform with the current year presentation.

3. License Agreement

As discussed in Note 1, the Company rescinded its agreement to acquire DTC, and on October 19, 2016, the Company entered into a Definitive Agreement with CCS that included an exclusive Patent License Agreement ("License Agreement") and Independent Contractor Agreement.  Under the License Agreement, CCS granted to the Company an exclusive world-wide license to the assets comprising the technology and products of the defense, detection and protection security products invented and developed by the inventor and CCS.  The term of the License Agreement shall be from October 19, 2016 until the expiration of the last to expire of the licensed issued patents or patents to be issued.

The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties at the end of each six-month period at the rate of the greater of 5% of gross sales used or sold, or the minimum royalty payment of $25,000.  The Company also agreed to compensate investors that have provided funding for the development of CCS's technology with 4,000,000 shares of the Company's common stock.  Additionally, CCS will be entitled to receive 250,000 shares of the Company's common stock upon completed sales of 1,000 passive scanner units based on the CCS technology.

The Independent Contractor Agreement between the Company and CCS provides that CCS will provide support for the development of the security technology and products.  An initial payment of $5,000 is to be paid to CCS plus ongoing hourly compensation for services provided.

The Company has capitalized the costs to acquire the License Agreement, including the $25,000 initial licensing fee and the estimated value of the 4,000,000 shares of common stock to be issued to the CCS investors of $353,600, which is based on the closing market price of the Company's common stock on the date of the Definitive Agreement.  The Company has recorded a current liability of $378,600 for these obligations in its consolidated balance sheet as of October 31, 2016.  Once sales of products based on the CCS technology begin, the Company will amortize the capitalized costs over the estimated life of the license agreement as determined by the legal life of patents issued.

4. Related Party Transactions and Balances

Management and administrative services are currently compensated as per a Service Agreement between the Company and its Chief Executive Officer and Director executed on April 25, 2016, a Service Agreement between the Company and a Director executed on May 20, 2016, and an Administration Agreement with a related party executed on March 15, 2011 and renewed on May 1, 2015, whereby the fee is based on services provided and invoiced by the related parties on a monthly basis and the fees are paid in cash when possible or with common stock.  The Company also, from time to time, has some of its expenses paid by related parties with the intent to repay.  These types of transactions, when incurred, result in payables to related parties in the Company's consolidated financial statements as a necessary part of funding the Company's operations.

As of October 31, 2016, and April 30, 2016, the Company had payable balances due to related parties totaling $631,654 and $565,459, respectively, which resulted from transactions with these related parties and other significant shareholders.

8

Convertible notes payable – related parties consisted of the following at:

	October 31, 2016		April 30, 2016
Note payable to related party, no interest, convertible into common stock of the Company at $0.10 per share, imputed interest at 9% per annum	$	25,000	$	25,000
Note payable to related party, interest at 6%, convertible into common stock of the Company at $0.10 per share		32,050		32,050
	$	57,050	$	57,050

Convertible notes payable – related parties issued prior to the fiscal year ended April 30, 2014 were convertible 30 days from the first day the Company's common shares are qualified for trading on the OTC Bulletin Board, which occurred in November 2012.  As of October 31, 2016, the convertible note payable – related party of $25,000 had not been converted and therefore is in default.

Notes payable – related parties are currently in default and consisted of the following at:

	October 31, 2016		April 30, 2016
Note payable to related party, with interest at 6% per annum, due September 15, 2013	$	24,656	$	24,656
Note payable to related party, with interest at 6% per annum, due March 8, 2014		7,500		7,500
Note payable to related party, with interest at 6% per annum, due December 5, 2013		47,500		47,500
	$	79,656	$	79,656

Accrued interest payable – related parties was $21,197 and $17,846 at October 31, 2016 and April 30, 2016, respectively.

The Company issued 350,000 of its common shares, valued at $105,000, in May 2016, and 350,000 of its common shares, valued at $57,750, in August 2016 to its Chief Executive Officer pursuant to his Service Agreement.

The Company issued 250,000 of its common shares, valued at $112,500, in August 2016 to a Director.

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5. Convertible Notes Payable

Convertible notes payable consisted of the following at:

	October 31, 2016			April 30, 2016
Note payable, amended April 30, 2016, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share 90 days from demand	$	11,000		$	11,000
Note payable, amended April 30, 2016, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share 90 days from demand		9,000			9,000
Note payable, amended April 30, 2016, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share 90 days from demand		91,150			141,150
Note payable, amended April 30, 2016, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share 90 days from demand		14,500			14,500
Note payable, amended April 30, 2016, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share 90 days from demand		20,000			20,000
Note payable, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share		17,000			17,000
Note payable, with interest at 6% per annum, convertible into common stock of the Company at $0.05 per share		53,650			-
Note payable to institutional investor, with interest at 10% per annum, convertible into common stock of the Company at a defined conversion price		25,000			-
Note payable to institutional investor, with interest at 8% per annum, convertible into common stock of the Company at a fixed conversion price of $0.25 per share		200,000			-
Note payable, with interest at 6% per annum, convertible into common stock of the Company at $0.10 per share		23,750			-
Note payable to institutional investor, with interest at 12% per annum, convertible into common stock of the Company at a defined conversion price		25,000			-
Note payable to institutional investor, with interest at 8% per annum, convertible into common stock of the Company at a defined conversion price		37,000			-
Note payable to institutional investor, with interest at 9% per annum, convertible after 180 days into common stock of the Company at a defined conversion price		35,000			-
Note payable to institutional investor, with interest at 9% per annum, convertible after 180 days into common stock of the Company at a defined conversion price		40,000			-
Advances combined in note payable in November 2016		4,190			-
Note payable to institutional investor repaid in August 2016		-			41,000
Note payable to institutional investor repaid in July 2016		-			55,500
Note payable to institutional investor repaid in July 2016		-			39,000
Total		606,240			348,150
Less discount		(156,325	)		(284,664	)
	$	449,915		$	63,486

10

On April 30, 2016, the convertible notes payable with principal balances of $11,000, $9,000, $141,150, $14,500 and $20,000 were amended to establish a conversion price of $0.05 per share, interest at 6% retroactive to the original issuance date of the notes, and a conversion date of 90 days from demand of the lender.  The amendments were determined to be extinguishments of the prior debt and the issuance of new debt in accordance with ASC 470-50, Debt – Modifications and Extinguishments, resulting in a loss on extinguishment of debt totaling $33,237.  In addition, the Company recorded a debt discount and a beneficial conversion feature totaling $195,650 at the inception of the new debt.

On March 10, 2016, the Company entered into a convertible promissory note for $17,000, which bears interest at an annual rate of 6% and is convertible into shares of the Company's common stock at $0.05 per share.  The Company recorded a debt discount and a beneficial conversion feature of $17,000 at the inception of the note.

On February 4, 2016, the Company entered into a convertible promissory note with an institutional investor for $41,000, which matures on February 4, 2017.  The investor had the right, after the first 180 days of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 60% (representing a discount rate of 40%) of the lowest bid price of the Company's common stock during the 60 consecutive trading days immediately preceding the date of the conversion notice.  At the inception of the convertible note to institutional investor, the Company paid debt issuance costs of $2,500, and recorded a debt discount of $41,000, including an original issue discount of $3,500, a derivative liability of $78,034 related to the conversion feature, and a loss on derivative liability of $40,534.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note.  The note was repaid in August 2016.

On June 8, 2016, the Company entered into a convertible promissory note with an institutional investor for $25,000, which bears interest at an annual rate of 10% and matures on December 9, 2016.  The note holder has the right, after a period of 180 days of the note, to convert the note and accrued interest into shares of the common stock of the Company at a discounted price per share equal to 50% to 65% of the market price of the Company's common stock, depending upon the stock's liquidity as determined by the note holder's broker.  At the inception of the convertible note, the Company paid debt issuance costs of $2,500, recorded a debt discount of $22,500, and recorded a derivative liability of $51,553 related to the conversion feature, and a loss on derivative liability of $29,053.  Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the life of the convertible note.

On July 18, 2016, the Company entered into a Senior Secured Convertible Promissory Note with an institutional investor for $189,000, with net proceeds to the Company of $175,000.  The note was subsequently amended to a total principal of $200,000, with net proceeds to the Company of $185,000.  The note bears interest at an annual rate of 8%, matures on January 17, 2017 and is convertible into common shares of the Company after six months at a fixed conversion price of $0.25 per share.  In the event of default, the conversion price changes to a variable price based on a defined discount to the market price of the Company's common stock.

On July 31, 2016, the Company entered into a convertible promissory note for $53,650, which has no defined maturity date.  The note bears interest at an annual rate of 6% and is payable only on conversion into shares of the Company's common stock at $0.10 per share.

On August 1, 2016, the Company entered into a convertible promissory note for $23,750, which has no defined maturity date.  The note bears interest at an annual rate of 6% and is payable only on conversion into shares of the Company's common stock at $0.10 per share.

On August 3, 2016, the Company entered into a convertible promissory note with an institutional investor for $25,000, which bears interest at an annual rate of 12% and matures on February 4, 2017.  The note holder has the right, after a period of 180 days of the note, to convert the note and accrued interest into shares of the common stock of the Company at a discounted price per share equal to 50% to 65% of the market price of the Company's common stock, depending upon the stock's liquidity as determined by the note holder's broker.  At the inception of the convertible note, the Company paid debt issuance costs of $2,500, recorded a debt discount of $22,500, and recorded a derivative liability of $48,106 related to the conversion feature, and a loss on derivative liability of $25,606.  Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the life of the convertible note.

On August 3, 2016, the Company entered into a convertible promissory note with an institutional investor for $37,000, which bears interest at an annual rate of 8% and matures on August 3, 2017.  The investor has the right, after the first six months of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 55% (representing a discount rate of 45%) of the lowest bid price of the Company's common stock during the 20 trading days immediately ending on the last trading date prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company paid debt issuance costs of $25,500, including 150,000 shares of its common stock valued at $24,000, and recorded a debt discount of $37,000, including an original issue discount of $5,000, a derivative liability of $148,934 related to the conversion feature, and a loss on derivative liability of $142,434.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note.

11

On September 20, 2016, the Company entered into a convertible promissory note with an institutional investor for $35,000, which bears interest at an annual rate of 9% and matures on June 20, 2017.  The investor has the right, commencing on the 180^th day of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 72.5% (representing a discount rate of 27.5%) of the lowest trading price of the Company's common stock during the 15 trading days prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company recorded debt issuance costs comprised of an obligation to issue 110,000 shares of its common stock valued at $14,311, and recorded a debt discount of $35,000, a derivative liability of $47,432 related to the conversion feature, and a loss on derivative liability of $21,743.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note.

On October 27, 2016, the Company entered into a convertible promissory note with an institutional investor for $40,000, which bears interest at an annual rate of 9% and matures on July 7, 2017.  The investor has the right, commencing on the 180^th day of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 72.5% (representing a discount rate of 27.5%) of the lowest trading price of the Company's common stock during the 15 trading days prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company recorded a debt discount of $40,000, a derivative liability of $47,939 related to the conversion feature, and a loss on derivative liability of $7,939.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note.

During the six months ended October 31, 2016, the Company issued a total of 1,829,880 shares of its common stock in the conversion of $72,605 convertible notes principal and $11,644 accrued interest payable.

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

Balance at April 30, 2016	$	2,081,931
Issuance of new debt		112,189
Gain on derivative liability		(1,323,152	)
Conversion of debt to shares of common stock and repayment of debt		(567,333	)
Balance at October 31, 2016	$	303,635

The estimated fair value of the derivative liabilities at October 31, 2016 was calculated using the Black-Scholes pricing model with the following assumptions:

Risk-free interest rate	0.34 – 0.59%
Expected life in years	0.11 - 0.76
Dividend yield	0%
Expected volatility	130.03% - 354.88%

Accrued interest and fees payable was $26,700 and $63,979 at October 31, 2016 and April 30, 2016, respectively.

6. Financial Instruments

The convertible notes payable and related derivative liabilities are measured at fair value on a recurring basis and estimated as follows at October 31, 2016:

	Total		Level 1		Level 2		Level 3
Derivative liabilities	$	303,635	$	-	$	-	$	303,635
Convertible notes payable, net		449,915		-		-		449,915
Total liabilities measured at fair value	$	753,550	$	-	$	-	$	753,550

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7. Stockholders' Deficit
 

During the six months ended October 31, 2016, the Company issued a total of 5,326,380 shares of its common stock: 2,630,000 shares for services valued at $570,110; 16,500 shares in payment of accrued fees payable of $10,325, recognizing a gain on extinguishment of debt of $4,550; 1,829,880 shares in the conversion of debt principal of $72,605 and accrued interest payable of $11,644; 550,000 shares valued at $80,000 for debt issuance costs; and 300,000 shares valued at $38,400 for settlement of warrants (see Note 8).

All issuances of the Company's common stock for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received whichever is more readily determinable.  Most the non-cash consideration received pertaining to services rendered by consultants and others has been valued at the market value of the shares issued.
 

8.  Stock Options and Warrants

During the six months ended October 31, 2016, the Company issued warrants to a lender to purchase 250,000 shares of the Company's common stock at an exercise price of $0.60 per share. The warrants vested upon grant and expire on July 17, 2018.  The Company estimated the grant date fair value of the warrants at $14,365 using the Black-Scholes option-pricing model and charged the amount to debt discount.

During the six months ended October 31, 2016, the Company issued warrants to a consultant to purchase 50,000 shares of the Company's common stock at an exercise price of $0.50 per share. The warrants vested upon grant and expire on June 14, 2017.  The Company estimated the grant date fair value of the warrants at $9,056 using the Black-Scholes option-pricing model and charged the amount to general and administrative expenses.

The following assumptions were used in estimating the value of the warrants:

Risk free interest rate	.55 - .68%
Expected life in years	1.0 - 2.0
Dividend yield	0%
Expected volatility	137.99 – 351.37%

A summary of the Company's stock options and warrants as of October 31, 2016, and changes during the six months then ended is as follows:

	Shares			WeightedAverage Exercise Price		Weighted AverageRemaining Contract Term (Years)		AggregateIntrinsic Value
Outstanding at April 30, 2016		1,068,333		$	1.56
Granted		300,000		$	0.58
Exercised		(68,333	)	$	0.60
Forfeited or expired		-		$	-
Outstanding and exercisable at October 31, 2016		1,300,000		$	1.39	1.57	$	-

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.11 as of October 31, 2016, which would have been received by the holders of in-the-money options had the option holders exercised their options as of that date. 

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The Company and a warrant holder ("Holder") entered into a Warrant Settlement Agreement on August 9, 2016 whereby the Holder exercised 68,333 shares in exchange for a cash payment by the Company of $50,000 and the issuance by the Company of 300,000 of its common shares, valued at $38,400.  The total obligation of $88,400 has been recorded as a reduction of additional paid-in capital.  
 

9. Contingencies and Commitments

The Company has the following material commitments as of October 31, 2016:

a)   Administration Agreement with EMAC Handels AG, renewed effective May 1, 2015 for a period of three years. Monthly fee for administration services of $5,000, office rent of $250 and office supplies of $125.  Extraordinary expenses are invoiced by EMAC on a quarterly basis.  The fee may be paid in cash and or with common stock.

b)   Service Agreement signed April 25, 2016 with Merrill W. Moses, President, Director and CEO, for services of $7,500 per month beginning May 2016 and the issuance of a total 700,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

c)   Service Agreement signed May 20, 2016 with Charles C. Hooper, Director, for services of $5,000 per month beginning May 2016 and the issuance of 250,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

10. Recent Accounting Pronouncements

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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11. Supplemental Statement of Cash Flows Information

During the six months ended October 31, 2016 and 2015, the Company paid $95,017 and $67,514 for interest.

During the six months ended October 31, 2016 and 2015, the Company paid no amounts for income taxes.

During the six months ended October 31, 2016, the Company had the following non-cash investing and financing activities:

In debt conversions, increased common stock by $183, increased additional paid-in capital by $304,923, decreased convertible notes payable by $72,605, decreased accrued interest and fees payable by $11,644, decreased debt discount by $39,837 and decreased derivative liabilities by $41,880.

Increased accounts payable and debt discount by $14,311.

Increased debt discount and additional paid-in capital by $52,136 for beneficial conversion feature of new convertible notes payable.

Increased debt discount and decreased prepaid expenses by $16,294.

Increased debt discount and derivative liability by $112,189.

Increased common stock by $2 and additional paid-in capital by $5,773 and decreased accrued interest and fees payable by $10,325.

Increased debt discount and additional paid-in capital by $14,365 for the issuance of warrants.

Increased common stock and decreased additional paid-in capital by $30 for net settlement of warrants.

Increased accounts payable and decreased additional paid-in capital by $50,000 for settlement of warrants obligation.

Increased license agreement and accrued license agreement payments by $378,600.

Increased debt discount by $80,000, common stock by $55 and additional paid-in capital by $79,945 for issuance of common stock for debt issuance costs.

During the six months ended October 31, 2015, the Company had the following non-cash investing and financing activities:

Increased common stock by $18, increased additional paid-in capital by $33,969, decreased convertible notes payable by $10,014, decreased debt discount by $2,594 and decreased derivative liability by $24,051.

Decreased debt discount by $10,723 and derivative liability by $146,533.

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12. Restatement of Consolidated Financial Statements

Because of the Rescission Agreement with DTC discussed in Note 1, the Company has eliminated the accounts of DTC from the Company's condensed consolidated financial statements as of July 31, 2016 and for the three months then ended, which accounts were previously consolidated with those of the Company.  In addition, certain equity transactions involving obligations to issue shares of the Company's common stock and the issuance of stock options were not properly recorded in the three months ended July 31, 2016.  The following schedules present the condensed consolidated amounts previously reported, the restatement adjustments to eliminate the accounts of DTC and properly record the equity transactions, and the condensed consolidated amounts as restated.

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Balance Sheet
As of July 31, 2016 (Unaudited)
	As Previously Reported		Restatement Adjustments			As Restated
ASSETS
Current assets:
Cash	$	13,362	$	(12,187	)	$	1,175
Inventories		5,355		(5,355	)		-
Prepaid expenses		7,875					7,875
Total current assets		26,592		(17,542	)		9,050
Property and equipment – construction in progress		11,819		(11,819	)		-
Intangible assets		1,437,345		(1,437,345	)		-
Total assets	$	1,475,756	$	(1,466,706	)	$	9,050
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	216,210	$	60,555		$	276,765
Accrued interest and fees payable		365,593		(343,846	)		21,747
Accrued interest payable – related parties		19,521					19,521
Convertible notes payable, net of discount		1,465,571		(1,119,716	)		345,855
Convertible notes payable – related parties		57,050					57,050
Notes payable – related parties		79,656					79,656
Derivative liabilities		228,825					228,825
Payables – related parties		635,855		90,222			726,077
Total current liabilities		3,068,281		(1,312,785	)		1,755,496
Total liabilities		3,068,281		(1,312,785	)		1,755,496
Commitments and Contingencies

Stockholders' deficit:
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, 1,100,000 shares issued and outstanding		110						110
Common stock, $0.0001 par value; 200,000,000 shares authorized, 24,496,056 and 21,249,676 shares issued and outstanding, respectively		2,450						2,450
Additional paid-in capital		2,117,489			9,056			2,126,545
Accumulated deficit		(3,712,574	)		(162,977	)		(3,875,551	)
Total stockholders' deficit		(1,592,525	)		(153,921	)		(1,746,446	)
Total liabilities and stockholders' deficit	$	1,475,756		$	(1,466,706	)	$	9,050

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Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Statement of Operations
Three Months Ended July 31, 2016 (Unaudited)
	As Previously Reported			Restatement Adjustments			As Restated
Revenue	$	-					$	-
Expenses:
General and administrative		513,682		$	164,656			678,338
Research and development		3,277			(3,277	)		-
Total expenses		516,959			161,379			678,338
Loss from operations		(516,959	)		(161,379	)		(678,338	)
Other income (expense):
Interest expense		(303,297	)		(1,598	)		(304,895	)
Gain (loss) on derivative liability		1,498,059						1,498,059
Gain on extinguishment of debt		121,403						121,403
Total other income (expense)		1,316,165			(1,598	)		1,314,567
Income (loss) before income taxes		799,206			(162,977	)		636,229
Provision for income taxes		-						-
Net income (loss)	$	799,206		$	(162,977	)	$	636,229
Net income (loss) per common share:
Basic	$	0.03					$	0.03
Diluted	$	0.03		$	(0.01	)	$	0.02
Weighted average common shares outstanding:
Basic		23,097,363						23,097,363
Diluted		32,267,573						32,267,573

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13. Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events to determine events occurring after October 31, 2016 that would have a material impact on the Company's financial results or require disclosure.

Issuances of Common Shares

In November 2016, the Company issued 4,000,000 shares of its common stock to several individuals as required by the License Agreement discussed in Note 3.

In November 2016, the Company entered into a short-term convertible promissory note of $5,790, with interest at 6% per annum and convertible into shares of the Company's common stock at a conversion price of $0.10 per share. 

In November 2016, the Company entered into a short-term convertible promissory note of $14,600, with interest at 6% per annum and convertible into shares of the Company's common stock at a conversion price of $0.075 per share. 

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Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations

Overview

The following information should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Form 10-Q.

Defense Technologies International Corp. (the "Company ") was incorporated in the State of Delaware on May 27, 1998.  Effective June 15, 2016, the Company changed its name to Defense Technologies International Corp. from Canyon Gold Corp. to more fully represent the Company's expansion goals into the advanced technology sector.

Effective July 15, 2016, the Company executed documents intended to finalize the acquisition of 100% of Defense Technology Corporation, a privately held Colorado company ("DTC"), a developer of defense, detection and protection products to improve security for Anchor schools and other public facilities.  DTC has informed us that it is unable to complete the required financial statements.  Accordingly, the Company will not be able to consolidate DTC's financial statements into its audited financial statements. After a thorough review of the situation and discussions with DTC, we have mutually agreed to rescind the acquisition of DTC and entered into a Rescission Agreement and Mutual Release (the "Rescission Agreement"), effective October 17, 2016.

In connection with the Rescission Agreement with the Company, DTC rescinded its agreement with the inventor and developer of the technology and assets that were subject to the original agreement between the Company and DTC.  On October 19, 2016, the Company entered into a new Definitive Agreement with Controlled Capture Systems, LLC ("CCS"), representing the inventor of the technology and assets previously acquired by DTC, that included a new exclusive Patent License Agreement and Independent Contractor agreement.  Under the license agreement with CCS, the Company acquired the world-wide exclusive rights and privileges to the CCS security technology, patents, products and improvements.  The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties as defined in the Definitive Agreement.

The security products licensed from CCS and to be developed by the Company are designed for personal and collateral protection.  The proposed detection technology is intended to provide passive security scanning units for either walk-through or hand-held use.  The units use electromagnets and do not emit anything (such as x-rays) through the subject.  The Company recently completed a prototype and currently has an operational testing unit.  The units are intended to improve security for schools and other public facilities.

Our principal executive office is located at 4730 South Fort Apache Road, Suite 300, Las Vegas, Nevada 89147, telephone 1-(800) 520-9485.  Additional office space is subleased from EMAC at 641 West 3rd Street, North Vancouver BC, Canada.  The office of DRLLC that is responsible for management of exploration program is located at 125 East Main Street # 307, American Fork, Utah 84003.

Our website address is http://www.defensetechnologiesintl.com

Information on or accessed through our website is not incorporated into this Quarterly Report on Form 10-Q and is not a part of this Form 10-Q.

Forward Looking and Cautionary Statements

This report contains forward-looking statements relating to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar terms, variations of such terms or the negative of such terms.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors.  Although forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment, actual results could differ materially from those anticipated in such statements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

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Going Concern

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern.  Through October 31, 2016, the Company has no revenues, has accumulated losses of $4,285,598 and a working capital deficit of $2,226,322 and expects to incur further losses in the development of its business, all of which cast substantial doubt about the Company's ability to continue as a going concern.  Management plans to continue to provide for the Company's capital needs during the year ending April 30, 2017 by issuing debt and equity securities and by the continued support of its related parties.  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.  There is no assurance that funding will be available to continue the Company's business operations.

Results of Operations

We currently have no sources of operating revenues. Accordingly, no revenues were recorded for the three and six months ended October 31, 2016 and 2015.

Our general and administrative expenses increased $244,318 to $290,008 in the three months ended October 31, 2016 from $45,690 in the three months ended October 31, 2015, and increased $851,185 to $968,346 in the six months ended October 31, 2016 from $117,161 in the six months ended October 31, 2015.  The increases are due primarily to an increase in stock based compensation, including shares issued to our new President and to a Director, and the issuance of shares to investor relations consultants.  We also incurred an increase in professional fees and costs associated with the rescinded agreement with DTC and the new Definitive Agreement with CCS.

Exploration costs were $1,452 in the three months ended October 31, 2016 compared to $1,725 in the three months ended October 31, 2015, and were $1,452 in the six months ended October 31, 2016 compared to $3,375 in the six months ended October 31, 2015.  The exploration costs for all periods consisted of State of Nevada annual claims maintenance fees and the costs of re-staking the Nevada mineral claims.

Our interest expense increased to $133,466 in the three months ended October 31, 2016 from $62,006 in the three months ended October 31, 2015, and increased to $438,361 in the six months ended October 31, 2016 from $90,420 in the six months ended October 31, 2015.  The increase in interest expense is due primarily to new interest-bearing debt issued to institutional investors, related extension and early payment penalties, and to the amortization of debt discount to interest expense in the current year.  A portion of our interest expense is incurred to related parties.

We recognized a loss on derivative liability of $174,907 and $70,567 for the three months ended October 31, 2016 and 2015, respectively.  We recognized a gain on derivative liability of $1,323,152 in the six months ended October 31, 2016 and a loss on derivative liability of $144,941 in the six months ended October 31, 2015.  We estimate the fair value of the derivative for the conversion feature of our convertible notes payable using the Black-Scholes pricing model at the inception of the debt, at the date of conversions to equity, cash payments and at each reporting date, recording a derivative liability, debt discount and a gain or loss on change in derivative liability as applicable.  These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility, and variable conversion prices based on market prices as defined in the respective loan agreements.  These inputs are subject to significant changes from period to period; therefore, the estimated fair value of the derivative liability will fluctuate from period to period and the fluctuation may be material.

We recognized a gain on extinguishment of debt of $189,786 and $92,712 in the three months ended October 31, 2016 and 2015, respectively, and of $311,189 and $155,459 in the six months ended October 31, 2016 and 2015, respectively.  The gain on extinguishment of debt resulted primarily from the elimination of derivative liabilities upon debt extinguishment.

As a result, we recognized a net loss of $410,047 and $87,276 in the three months ended October 31, 2016 and 2015, respectively, and a net loss of $200,438 in the six months ended October 31, 2015.  Primarily due to the gain on derivative liability, we reported net income of $226,182 in the six months ended October 31, 2016.

20

Liquidity and Capital Resources

At October 31, 2016, we had total current assets of $4,042, including cash of $42 and prepaid expenses of $4,000, and total current liabilities of $2,230,364, resulting in a working capital deficit of $2,226,322.  Included in our current liabilities and working capital deficit are derivative liabilities totaling $303,635 related to the conversion features of certain of our convertible notes payable.  We do not believe the derivative liabilities will be required to be settled in cash.

A significant portion of our current liabilities as of October 31, 2016 is comprised of amounts due to related parties: accrued interest payable – related parties of $21,197; convertible notes payable – related parties of $57,050; notes payable – related parties of $79,656; and payables – related parties of $631,654.  We anticipate that in the short-term, operating funds will continue to be provided by related parties and other lenders.

At October 31, 2016, we had total convertible notes payable of $449,915, net of discount of $156,325.  Several of the note agreements require repayment through conversion of principal and interest into shares of the Company's common stock.  We anticipate, therefore, converting these notes payable into shares of our common stock without the need for replacement financing; however, there can be no assurance that we will be successful in accomplishing this.

Pursuant to nine convertible notes payable, we received total cash proceeds of $423,590 during the six months ended October 31, 2016.  These short-term notes, which have a total principal balance of $443,590 at October 31, 2016 (including $20,000 total original interest discount), bear interest at annual rates ranging from 6% to 12% per annum and are convertible into common shares of the Company upon the terms and subject to the limitations and conditions set forth in the note agreements.  The notes generally contain early repayment penalties if repaid before defined payment dates in the note agreements.

From proceeds from the new convertible notes payable, we repaid $117,894 in principal of convertible notes payable and further extinguished $72,605 in principal through conversion of convertible notes payable to common stock.

During the six months ended October 31, 2016, net cash used in operating activities was $294,177, as a result of our net income of $226,182, non-cash expenses totaling $994,587 and increases in accounts payable of $67,284, accrued interest payable – related parties of $3,351 and payables – related parties of $66,195, offset by non-cash gains totaling $1,634,341, increase in prepaid expenses of $2,125, and a decrease in accrued interest and fees payable of $15,310.

During the six months ended October 31, 2015, net cash provided by operating activities was $43,803, as a result of our net loss of $200,438, gain on extinguishment of debt of $155,459, increase in prepaid expenses of $5,642 and decrease in accrued interest and fees payable of $1,169, offset by non-cash expenses totaling $162,651 and increases in accounts payable of $49,130, accrued interest payable – related parties of $3,351, and payables – related parties of $191,379.

During the six months ended October 31, 2016 and 2015, we had no cash provided by or used in investing activities.

During the six months ended October 31, 2016, net cash provided by financing activities was $294,177, comprised of proceeds from convertible notes payable of $423,590, partially offset by repayment of convertible notes payable of $117,894 and payment of debt issuance costs of $11,500.

During the six months ended October 31, 2015, net cash used in financing activities was $43,986, comprised of repayment of convertible notes payable.

We have not realized any revenues since inception and paid expenses and costs with proceeds from the issuance of securities as well as by loans from investor, stockholders and other related parties.

Our immediate goal is to provide funding for the completion of the initial production of the Offender Alert Passive Scan licensed from CCS.  The Offender Alert Passive Scan is an advanced passive scanning system for detecting and identifying concealed threats.

We believe a related party and other lenders will provide sufficient funds to carry on general operations in the near term and fund DTC's production and sales.  We expect to raise additional funds from the sale of securities, stockholder loans and convertible debt.  However, we may not be successful in our efforts to obtain financing to carry out our business plan.

As of October 31, 2016, we did not have sufficient cash to fund our operations for the next twelve months.

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Inflation

In the opinion of management, inflation has not and will not have a material effect on our operations until such time as we successfully complete an acquisition or merger.  At that time, management will evaluate the possible effects of inflation related to our business and operations following a successful acquisition or merger.

Critical Accounting Policies

Use of Estimates

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

Net Income (Loss) per Common Share

Basic net income or loss per common share is calculated by dividing the Company's net income or loss by the weighted average number of common shares outstanding during the period.  Diluted net income or loss per common share is calculated by dividing the Company's net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding.  Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method.  
 

Exploration Costs

All sampling, metallurgical, engineering, contractor costs, and efforts to obtain mineral rights have been charged to expense as incurred.

Non-Monetary Transactions

All issuances of our common stock for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received whichever is more readily determinable.  The majority of the non-cash consideration received pertains to services rendered by consultants and others and has been valued at the market value of the shares issued.

Our accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505, Equity Based Payments to Non Employees, where the equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  The measurement date for the fair value of the equity instruments issued is determined at 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.

Comprehensive Loss

We have no component of other comprehensive income.  Accordingly, net loss equals comprehensive loss for the three months and six months ended October 31, 2016 and 2015.

Income Taxes

We provide for income taxes under ASC 740, Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes.  Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.  Our predecessor operated as entity exempt from federal and state income taxes.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

22

Impairment of Long-Lived Assets

We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows.  If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

Revenue Recognition

Revenues from the sale of products will be recorded when the product is shipped, title and risk of loss have transferred to the purchaser, payment terms are fixed or determinable and payment is reasonably assured.  Revenues from service contracts will be recognized when performance of the service is complete or over the term of the contract.

Recent Accounting Pronouncements

See the notes to our condensed consolidated financial statements for a discussion of recently issued accounting pronouncements that we have either implemented or that may have a material future impact on our financial position or results of operations.

Off-Balance Sheet Arrangements

We have no 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 is material to stockholders.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

This item is not required for a smaller reporting company.

Item 4.  Controls and Procedures.

Evaluation of Disclosure Controls and Procedures.  As of the end of the period covered by this report, we conducted 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 the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) ("Exchange Act").  Based on this evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, in a manner that allows timely decisions regarding required disclosures.

We operate with a limited number of accounting and financial personnel.  Although we retain the services of an experienced certified public accountant, we have been unable to implement proper segregation of duties over certain accounting and financial reporting processes, including timely and proper documentation of material transactions and agreements.  We believe these control deficiencies represent material weaknesses in internal control over financial reporting.

Despite the material weaknesses in financial reporting noted above, we believe that our consolidated financial statements included in this report fairly present our financial position, results of operations and cash flows as of and for the periods presented in all material respects.

Changes in Internal Control over Financial Reporting.  There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

23

PART II — OTHER INFORMATION

Item 1.  Legal Proceedings

There are no material pending legal proceedings to which we are a party or to which any of our property is subject and, to the best of our knowledge, no such actions against us are contemplated or threatened.

Item 1A.   Risk Factors

This item is not required for a smaller reporting company.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended October 31, 2016, the Company issued a total of 2,080,000 unregistered shares of its common stock: 1,230,000 shares for services valued at $266,310; 550,000 shares for debt issuance costs valued at $80,000; and 300,000 shares for warrant settlement valued at $38,400.  The securities were issued in a private transaction to a related party pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933.

Item 3.  Defaults Upon Senior Securities

This item is not applicable.

Item 4.  Mine Safety Disclosure

This item is not applicable.

Item 5.  Other Information

Not applicable

24

Item 6.  Exhibits

The following exhibits are filed as part of this report:

Exhibit No.	Description of Exhibit
31.1	Section 302 Certification of Chief Executive Officer and Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
101 INS*	XBRL Instance Document
101SCH*	XBRL Taxonomy Extension Schema
101 CAL*	XBRL Taxonomy Extension Calculation Linkbase
101 DEF*	XBRL Taxonomy Extension Definition Linkbase
101 LAB*	XBRL Taxonomy Extension Label Linkbase
101 PRE*	XBRL Taxonomy Extension Presentation Linkbase

* The XBRL related information in Exhibit 101 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Exchange Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

25

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.

	DEFENSE TECHNOLOGIES INTERNATIONAL CORP.
Date: December 15, 2016	By:/S/  Merrill W. Moses
	Merrill W. Moses
	Chief Executive Officer
	Acting Chief Financial Officer

26

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Merrill W. Moses, certify that:
1.	I have reviewed this quarterly report on Form 10-Q of DEFENSE TECHNOLGIES INTERNATIONAL CORP.;
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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange 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 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.

Date: December 15, 2016

/S/  Merrill W. Moses

Merrill W. Moses

Chief Executive Officer

Acting Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of DEFENSE TECHNOLGIES INTERNATIONAL CORP. (the "Company") on Form 10-Q for the period ending October 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Merrill W. Moses, Chief Executive Officer and Acting 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 Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/S/  Merrill W. Moses

Merrill W. Moses

Chief Executive Officer

Acting Chief Financial Officer

December 15, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certifications are accompanying the Company's Form 10-Q solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Form 10-Q or as a separate disclosure document.

XML

Document and Entity Information - shares	6 Months Ended
	Oct. 31, 2016	Dec. 15, 2016
Document and Entity Information:
Entity Registrant Name	DEFENSE TECHNOLOGIES INTERNATIONAL CORP.
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Trading Symbol	cgcc
Amendment Flag	false
Entity Central Index Key	0001533357
Current Fiscal Year End Date	--04-30
Entity Common Stock, Shares Outstanding		30,576,056
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Entity Incorporation, State Country Name	Delaware
Entity Incorporation, Date of Incorporation	May 27, 1998

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Current assets:
Cash	$ 42	$ 23
Prepaid expenses	4,000	18,169
Total current assets	4,042	18,192
License agreement	378,600
Total assets	382,642	18,192
Current liabilities:
Accounts payable	281,987	150,362
Accrued license agreement payments	378,600
Accrued interest and fees payable	26,700	63,979
Accrued interest payable - related parties	21,197	17,846
Convertible notes payable, net of discount	449,915	63,486
Convertible notes payable - related parties	57,050	57,050
Notes payable - related parties	79,656	79,656
Derivative liabilities	303,635	2,081,931
Payables - related parties	631,654	565,459
Total current liabilities	2,230,364	3,079,769
Total liabilities	2,230,364	3,079,769
Commitments and Contingencies
Stockholders' deficit:
Preferred stock, $0.0001 par value; 20,000,000 shares authorized, 1,100,000 shares issued and outstanding, respectively	110	110
Common stock, $0.0001 par value; 200,000,000 shares authorized, 26,576,056 and 21,249,676 shares issued and outstanding, respectively	2,658	2,125
Additional paid-in capital	2,435,108	1,447,968
Accumulated deficit	(4,285,598)	(4,511,780)
Total stockholders' deficit	(1,847,722)	(3,061,577)
Total liabilities and stockholders' deficit	$ 382,642	$ 18,192

XML

CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares	Oct. 31, 2016	Apr. 30, 2016
CONSOLIDATED BALANCE SHEETS PARENTHETICAL
Preferred stock par value	$ 0.0001	$ 0.0001
Preferred stock shares authorized	20,000,000	20,000,000
Preferred stock shares issued	1,100,000	1,100,000
Preferred stock shares outstanding	1,100,000	1,100,000
Common stock par value	$ 0.0001	$ 0.0001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	26,576,056	21,249,676
Common stock shares outstanding	26,576,056	21,249,676

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue
Expenses:
General and administrative	290,008	45,690	968,346	117,161
Exploration costs	1,452	1,725	1,452	3,375
Total expenses	291,460	47,415	969,798	120,536
Loss from operations	(291,460)	(47,415)	(969,798)	(120,536)
Other income (expense):
Interest expense	(133,466)	(62,006)	(438,361)	(90,420)
Gain (loss) on derivative liability	(174,907)	(70,567)	1,323,152	(144,941)
Gain on extinguishment of debt	(189,786)	92,712	311,189	155,459
Total other income (expense)	(118,587)	(39,861)	1,195,980	(79,902)
Income (loss) before income taxes	(410,047)	(87,276)	226,182	(200,438)
Provision for income taxes
Net income (loss)	$ (410,047)	$ (87,276)	$ 226,182	$ (200,438)
Net income (loss) per common share:
Net income (loss) per common share: Basic	$ (0.02)		$ 0.01	$ (0.01)
Net income (loss) per common share: Diluted	$ (0.02)		$ 0.01	$ (0.01)
Weighted average common shares outstanding:
Weighted average common shares outstanding: Basic	26,922,578	21,049,682	25,009,972	20,988,445
Weighted average common shares outstanding: Diluted	26,922,578	21,049,682	32,165,511	20,988,445

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 226,182	$ (200,438)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Common shares issued for services	570,110
Stock options issued for services	9,056
Imputed interest on convertible notes payable	1,125	1,125
Amortization of debt discount to interest expense	409,296	16,585
Debt extension penalty added to note principal	5,000
(Gain) loss on derivative liability	(1,323,152)	144,941
(Gain) on extinguishment of debt	(311,189)	(155,459)
Change in operating assets and liabilities:
Increase in prepaid expenses	(2,125)	(5,642)
Increase in accounts payable	67,284	49,130
Decrease in accrued interest and fees payable	(15,310)	(1,169)
Increase in accrued interest payable - related parties	3,351	3,351
Increase in payables - related parties	66,195	191,379
Net cash provided by (used in) operating activities	(294,177)	43,803
Cash flows from investing activities:
Net cash provided by investing activities
Cash flows from financing activities:
Proceeds from convertible notes payable	423,590
Repayment of convertible notes payable	(117,894)	(43,986)
Payment of debt issuance costs	(11,500)
Net cash provided by (used in) financing activities	294,196	(43,986)
Net increase (decrease) in cash	19	(183)
Cash at beginning of period	23	$ 183
Cash at end of period	$ 42

XML

1. Nature of Operations and Continuation of Business

6 Months Ended

Oct. 31, 2016

Notes

1. Nature of Operations and Continuation of Business

1. Nature of Operations and Rescission of DTC Agreement

Defense Technologies International Corp. (the "Company ") was incorporated in the State of Delaware on May 27, 1998.  Effective June 15, 2016, the Company changed its name to Defense Technologies International Corp. from Canyon Gold Corp. to more fully represent the Company's expansion goals into the advanced technology sector.

Effective July 15, 2016, the Company executed documents intended to finalize the acquisition of 100% of Defense Technology Corporation, a privately held Colorado company ("DTC"), a developer of defense, detection and protection products to improve security for Anchor schools and other public facilities.  DTC has informed us that it is unable to complete the required financial statements.  Accordingly, the Company will not be able to consolidate DTC's financial statements into its audited financial statements. After a thorough review of the situation and discussions with DTC, we have mutually agreed to rescind the acquisition of DTC and entered into a Rescission Agreement and Mutual Release (the “Rescission Agreement”), dated October 17, 2016.

In connection with the Rescission Agreement with the Company, DTC rescinded its agreement with the inventor and developer of the technology and assets that were subject to the original agreement between the Company and DTC.  On October 19, 2016, the Company entered into a new Definitive Agreement with Controlled Capture Systems, LLC (“CCS”), representing the inventor of the technology and assets previously acquired by DTC, that included a new exclusive Patent License Agreement and Independent Contractor agreement.  Under the license agreement with CCS, the Company acquired the world-wide exclusive rights and privileges to the CCS security technology, patents, products and improvements.  The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties as defined in the Definitive Agreement.  See Note 3.

Going Concern

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern.  Through October 31, 2016, the Company has no revenues, has accumulated losses of $4,285,598 and a working capital deficit of $2,226,322 and expects to incur further losses in the development of its business, all of which cast substantial doubt about the Company’s ability to continue as a going concern.  Management plans to continue to provide for the Company's capital needs during the year ending April 30, 2017 by issuing debt and equity securities and by the continued support of its related parties (see Note 4).  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.  There is no assurance that funding will be available to continue the Company’s business operations.

XML

2. Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Oct. 31, 2016

Notes

2. Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States.  The Company’s fiscal year end is April 30.

The interim condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q.  They do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.  Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2016 included in its Annual Report on Form 10-K filed with the SEC.

The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position as of October 31, 2016, the consolidated results of its operations for the three and six months ended October 31, 2016 and 2015 and its consolidated cash flows for the six months ended October 31, 2016 and 2015.  The results of operations for any interim period are not necessarily indicative of the results to be expected for the full fiscal year.

Consolidation

These condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Long Canyon Gold Resources Corp.  All inter-company transactions and balances have been eliminated.

Use of Estimates

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

Net Income (Loss) per Common Share

Basic net income or loss per common share is calculated by dividing the Company’s net income or loss by the weighted average number of common shares outstanding during the period.  Diluted net income or loss per common share is calculated by dividing the Company’s net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding.  Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method.  As of October 31, 2016, the Company had 10,577,860 potential shares issuable under outstanding options, warrants and convertible debt.

The common shares used in the computation of our basic and diluted net income (loss) per share are reconciled as follows:

	Three Months Ended October 31,		Six Months Ended October 31,
	2016	2015	2016	2015
Weighted average number of shares    outstanding - basic	26,922,578	21,049,682	25,009,972	20,988,445
Dilutive effect of convertible debt	-	-	155,539	-
Weighted average number of shares    outstanding - diluted	26,922,578	21,049,682	32,165,511	20,988,445

During the three months ended October 31, 2016 and 2015, 9,277,860 and 2,365,098 shares issuable upon exercise of convertible debt, respectively, were excluded from the above calculation due to anti-dilution.  For the six months ended October 31, 2015, 2,365,098 shares issuable upon exercise of convertible debt were excluded from the above calculation due to anti-dilution.

Reclassifications

Certain amounts in the 2015 condensed consolidated financial statements have been reclassified to conform with the current year presentation.

XML

3. License Agreement

6 Months Ended

Oct. 31, 2016

Notes

3. License Agreement

3. License Agreement

As discussed in Note 1, the Company rescinded its agreement to acquire DTC, and on October 19, 2016, the Company entered into a Definitive Agreement with CCS that included an exclusive Patent License Agreement (“License Agreement”) and Independent Contractor Agreement.  Under the License Agreement, CCS granted to the Company an exclusive world-wide license to the assets comprising the technology and products of the defense, detection and protection security products invented and developed by the inventor and CCS.  The term of the License Agreement shall be from October 19, 2016 until the expiration of the last to expire of the licensed issued patents or patents to be issued.

The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties at the end of each six-month period at the rate of the greater of 5% of gross sales used or sold, or the minimum royalty payment of $25,000.  The Company also agreed to compensate investors that have provided funding for the development of CCS’s technology with 4,000,000 shares of the Company’s common stock.  Additionally, CCS will be entitled to receive 250,000 shares of the Company’s common stock upon completed sales of 1,000 passive scanner units based on the CCS technology.

The Independent Contractor Agreement between the Company and CCS provides that CCS will provide support for the development of the security technology and products.  An initial payment of $5,000 is to be paid to CCS plus ongoing hourly compensation for services provided.

The Company has capitalized the costs to acquire the License Agreement, including the $25,000 initial licensing fee and the estimated value of the 4,000,000 shares of common stock to be issued to the CCS investors of $353,600, which is based on the closing market price of the Company’s common stock on the date of the Definitive Agreement.  The Company has recorded a current liability of $378,600 for these obligations in its consolidated balance sheet as of October 31, 2016.  Once sales of products based on the CCS technology begin, the Company will amortize the capitalized costs over the estimated life of the license agreement as determined by the legal life of patents issued.

XML

4. Related Party Transactions and Balances

6 Months Ended

Oct. 31, 2016

Notes

4. Related Party Transactions and Balances

4. Related Party Transactions and Balances

Management and administrative services are currently compensated as per a Service Agreement between the Company and its Chief Executive Officer and Director executed on April 25, 2016, a Service Agreement between the Company and a Director executed on May 20, 2016, and an Administration Agreement with a related party executed on March 15, 2011 and renewed on May 1, 2015, whereby the fee is based on services provided and invoiced by the related parties on a monthly basis and the fees are paid in cash when possible or with common stock.  The Company also, from time to time, has some of its expenses paid by related parties with the intent to repay.  These types of transactions, when incurred, result in payables to related parties in the Company’s consolidated financial statements as a necessary part of funding the Company’s operations.

As of October 31, 2016, and April 30, 2016, the Company had payable balances due to related parties totaling $631,654 and $565,459, respectively, which resulted from transactions with these related parties and other significant shareholders.

Convertible notes payable – related parties consisted of the following at:

	October 31, 2016	April 30, 2016
Note payable to related party, no interest, convertible    into common stock of the Company at $0.10 per    share, imputed interest at 9% per annum	$           25,000	$           25,000
Note payable to related party, interest at 6%,    convertible into common stock of the Company at    $0.10 per share	32,050	32,050
	$           57,050	$          57,050

Convertible notes payable – related parties issued prior to the fiscal year ended April 30, 2014 were convertible 30 days from the first day the Company’s common shares are qualified for trading on the OTC Bulletin Board, which occurred in November 2012.  As of October 31, 2016, the convertible note payable – related party of $25,000 had not been converted and therefore is in default.

Notes payable – related parties are currently in default and consisted of the following at:

	October 31, 2016	April 30, 2016
Note payable to related party, with interest at 6% per    annum, due September 15, 2013	$           24,656	$           24,656
Note payable to related party, with interest at 6% per    annum, due March 8, 2014	7,500	7,500
Note payable to related party, with interest at 6% per    annum, due December 5, 2013	47,500	47,500
	$           79,656	$           79,656

Accrued interest payable – related parties was $21,197 and $17,846 at October 31, 2016 and April 30, 2016, respectively.

The Company issued 350,000 of its common shares, valued at $105,000, in May 2016, and 350,000 of its common shares, valued at $57,750, in August 2016 to its Chief Executive Officer pursuant to his Service Agreement.

The Company issued 250,000 of its common shares, valued at $112,500, in August 2016 to a Director.

XML

5. Convertible Notes Payable

6 Months Ended

Oct. 31, 2016

Notes

5. Convertible Notes Payable

5. Convertible Notes Payable

Convertible notes payable consisted of the following at:

	October 31, 2016	April 30, 2016
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	$             11,000	$             11,000
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	9,000	9,000
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	91,150	141,150
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	14,500	14,500
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	20,000	20,000
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.05 per share	17,000	17,000
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.05 per share	53,650	-
Note payable to institutional investor, with interest at    10% per annum, convertible into common stock of    the Company at a defined conversion price	25,000	-
Note payable to institutional investor, with interest at    8% per annum, convertible into common stock of    the Company at a fixed conversion price of $0.25    per share	200,000	-
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.10 per share	23,750	-
Note payable to institutional investor, with interest at    12% per annum, convertible into common stock of    the Company at a defined conversion price	25,000	-
Note payable to institutional investor, with interest at    8% per annum, convertible into common stock of    the Company at a defined conversion price	37,000	-
Note payable to institutional investor, with interest at    9% per annum, convertible after 180 days into    common stock of the Company at a defined    conversion price	35,000	-
Note payable to instititional investor, with interest at 9% per annum, convertible after 180 days into common stock of the Company at a defined conversion price.	40,000
Advances combined in note payable in November 2016	4,190	-
Note payable to institutional investor repaid in    August 2016	-	41,000
Note payable to institutional investor repaid in    July 2016	-	55,500
Note payable to institutional investor repaid in    July 2016	-	39,000
Total	606,240	348,150
Less discount	(156,325)	(284,664)
	$            449,915	$             63,486

On April 30, 2016, the convertible notes payable with principal balances of $11,000, $9,000, $141,150, $14,500 and $20,000 were amended to establish a conversion price of $0.05 per share, interest at 6% retroactive to the original issuance date of the notes, and a conversion date of 90 days from demand of the lender.  The amendments were determined to be extinguishments of the prior debt and the issuance of new debt in accordance with ASC 470-50, Debt – Modifications and Extinguishments, resulting in a loss on extinguishment of debt totaling $33,237.  In addition, the Company recorded a debt discount and a beneficial conversion feature totaling $195,650 at the inception of the new debt.

On March 10, 2016, the Company entered into a convertible promissory note for $17,000, which bears interest at an annual rate of 6% and is convertible into shares of the Company’s common stock at $0.05 per share.  The Company recorded a debt discount and a beneficial conversion feature of $17,000 at the inception of the note.

On February 4, 2016, the Company entered into a convertible promissory note with an institutional investor for $41,000, which matures on February 4, 2017.  The investor had the right, after the first 180 days of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 60% (representing a discount rate of 40%) of the lowest bid price of the Company's common stock during the 60 consecutive trading days immediately preceding the date of the conversion notice.  At the inception of the convertible note to institutional investor, the Company paid debt issuance costs of $2,500, and recorded a debt discount of $41,000, including an original issue discount of $3,500, a derivative liability of $78,034 related to the conversion feature, and a loss on derivative liability of $40,534.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note.  The note was repaid in August 2016.

On June 8, 2016, the Company entered into a convertible promissory note with an institutional investor for $25,000, which bears interest at an annual rate of 10% and matures on December 9, 2016.  The note holder has the right, after a period of 180 days of the note, to convert the note and accrued interest into shares of the common stock of the Company at a discounted price per share equal to 50% to 65% of the market price of the Company’s common stock, depending upon the stock’s liquidity as determined by the note holder’s broker.  At the inception of the convertible note, the Company paid debt issuance costs of $2,500, recorded a debt discount of $22,500, and recorded a derivative liability of $51,553 related to the conversion feature, and a loss on derivative liability of $29,053.  Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the life of the convertible note.

On July 18, 2016, the Company entered into a Senior Secured Convertible Promissory Note with an institutional investor for $189,000, with net proceeds to the Company of $175,000.  The note was subsequently amended to a total principal of $200,000, with net proceeds to the Company of $185,000.  The note bears interest at an annual rate of 8%, matures on January 17, 2017 and is convertible into common shares of the Company after six months at a fixed conversion price of $0.25 per share.  In the event of default, the conversion price changes to a variable price based on a defined discount to the market price of the Company’s common stock.

On July 31, 2016, the Company entered into a convertible promissory note for $53,650, which has no defined maturity date.  The note bears interest at an annual rate of 6% and is payable only on conversion into shares of the Company’s common stock at $0.10 per share.

On August 1, 2016, the Company entered into a convertible promissory note for $23,750, which has no defined maturity date.  The note bears interest at an annual rate of 6% and is payable only on conversion into shares of the Company’s common stock at $0.10 per share.

On August 3, 2016, the Company entered into a convertible promissory note with an institutional investor for $25,000, which bears interest at an annual rate of 12% and matures on February 4, 2017.  The note holder has the right, after a period of 180 days of the note, to convert the note and accrued interest into shares of the common stock of the Company at a discounted price per share equal to 50% to 65% of the market price of the Company’s common stock, depending upon the stock’s liquidity as determined by the note holder’s broker.  At the inception of the convertible note, the Company paid debt issuance costs of $2,500, recorded a debt discount of $22,500, and recorded a derivative liability of $48,106 related to the conversion feature, and a loss on derivative liability of $25,606.  Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the life of the convertible note.

On August 3, 2016, the Company entered into a convertible promissory note with an institutional investor for $37,000, which bears interest at an annual rate of 8% and matures on August 3, 2017.  The investor has the right, after the first six months of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 55% (representing a discount rate of 45%) of the lowest bid price of the Company's common stock during the 20 trading days immediately ending on the last trading date prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company paid debt issuance costs of $25,500, including 150,000 shares of its common stock valued at $24,000, and recorded a debt discount of $37,000, including an original issue discount of $5,000, a derivative liability of $148,934 related to the conversion feature, and a loss on derivative liability of $142,434.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note. 

On September 20, 2016, the Company entered into a convertible promissory note with an institutional investor for $35,000, which bears interest at an annual rate of 9% and matures on June 20, 2017.  The investor has the right, commencing on the 180^th day of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 72.5% (representing a discount rate of 27.5%) of the lowest trading price of the Company's common stock during the 15 trading days prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company recorded debt issuance costs comprised of an obligation to issue 110,000 shares of its common stock valued at $14,311, and recorded a debt discount of $35,000, a derivative liability of $47,432 related to the conversion feature, and a loss on derivative liability of $21,743.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note. 

On October 27, 2016, the Company entered into a convertible promissory note with an institutional investor for $40,000, which bears interest at an annual rate of 9% and matures on July 7, 2017.  The investor has the right, commencing on the 180^th day of the note, to convert the note and accrued interest in whole or in part into shares of the common stock of the Company at a price per share equal to 72.5% (representing a discount rate of 27.5%) of the lowest trading price of the Company's common stock during the 15 trading days prior to the conversion date.  At the inception of the convertible note to institutional investor, the Company recorded a debt discount of $40,000, a derivative liability of $47,939 related to the conversion feature, and a loss on derivative liability of $7,939.  Interest expense for the amortization of the debt discount was calculated on a straight-line basis over the life of the convertible note. 

During the six months ended October 31, 2016, the Company issued a total of 1,829,880 shares of its common stock in the conversion of $72,605 convertible notes principal and $11,644 accrued interest payable.

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

Balance at April 30, 2016	$      2,081,931
Issuance of new debt	112,189
Gain on derivative liability	(1,323,152)
Conversion of debt to shares of common stock    and repayment of debt	(567,333)
Balance at October 31, 2016	$         303,635

The estimated fair value of the derivative liabilities at October 31, 2016 was calculated using the Black-Scholes pricing model with the following assumptions:

Risk-free interest rate	0.34 – 0.59%
Expected life in years	0.11 - 0.76
Dividend yield	0%
Expected volatility	130.03% - 354.88%

Accrued interest and fees payable was $26,700 and $63,979 at October 31, 2016 and April 30, 2016, respectively.

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6. Financial Instruments

6 Months Ended

Oct. 31, 2016

Notes

6. Financial Instruments

6. Financial Instruments

The convertible notes payable and related derivative liabilities are measured at fair value on a recurring basis and estimated as follows at October 31, 2016:

	Total	Level 1	Level 2	Level 3
Derivative liabilities	$         303,635	$                       -	$                        -	$         303,635
Convertible notes payable, net	449,915	-	-	449,915
Total liabilities measured    at fair value	$         753,550	$                       -	$                        -	$         753,550

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7. Stockholders' Deficit

6 Months Ended

Oct. 31, 2016

Notes

7. Stockholders' Deficit

7. Stockholders’ Deficit

During the six months ended October 31, 2016, the Company issued a total of 5,326,380 shares of its common stock: 2,630,000 shares for services valued at $570,110; 16,500 shares in payment of accrued fees payable of $10,325, recognizing a gain on extinguishment of debt of $4,550; 1,829,880 shares in the conversion of debt principal of $72,605 and accrued interest payable of $11,644; 550,000 shares valued at $80,000 for debt issuance costs; and 300,000 shares valued at $38,400 for settlement of warrants (see Note 8).

All issuances of the Company’s common stock for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received whichever is more readily determinable.  Most the non-cash consideration received pertaining to services rendered by consultants and others has been valued at the market value of the shares issued.

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8. Stock Options and Warrants

6 Months Ended

Oct. 31, 2016

Notes

8. Stock Options and Warrants

8.  Stock Options and Warrants

During the six months ended October 31, 2016, the Company issued warrants to a lender to purchase 250,000 shares of the Company’s common stock at an exercise price of $0.60 per share.  The warrants vested upon grant and expire on July 17, 2018.  The Company estimated the grant date fair value of the warrants at $14,365 using the Black-Scholes option-pricing model and charged the amount to debt discount.

During the six months ended October 31, 2016, the Company issued warrants to a consultant to purchase 50,000 shares of the Company’s common stock at an exercise price of $0.50 per share. The warrants vested upon grant and expire on June 14, 2017.  The Company estimated the grant date fair value of the warrants at $9,056 using the Black-Scholes option-pricing model and charged the amount to general and administrative expenses.

The following assumptions were used in estimating the value of the warrants:

Risk free interest rate	.55 - .68%
Expected life in years	1.0 - 2.0
Dividend yield	0%
Expected volatility	137.99 – 351.37%

A summary of the Company’s stock options and warrants as of October 31, 2016, and changes during the six months then ended is as follows:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contract Term (Years)	Aggregate Intrinsic Value
Outstanding at April 30, 2016	1,068,333	$	1.56
Granted	300,000	$	0.58
Exercised	(68,333)	$	0.60
Forfeited or expired	-	$	-
Outstanding and exercisable at October 31, 2016	1,300,000	$	1.39	1.57	$   -

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.11 as of October 31, 2016, which would have been received by the holders of in-the-money options had the option holders exercised their options as of that date. 

The Company and a warrant holder (“Holder”) entered into a Warrant Settlement Agreement on August 9, 2016 whereby the Holder exercised 68,333 shares in exchange for a cash payment by the Company of $50,000 and the issuance by the Company of 300,000 of its common shares, valued at $38,400.  The total obligation of $88,400 has been recorded as a reduction of additional paid-in capital. 

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9. Contingencies and Commitments

6 Months Ended

Oct. 31, 2016

Notes

9. Contingencies and Commitments

9. Contingencies and Commitments

The Company has the following material commitments as of October 31, 2016:

a)   Administration Agreement with EMAC Handels AG, renewed effective May 1, 2014 for a period of three years. Monthly fee for administration services of $5,000, office rent of $250 and office supplies of $125.  Extraordinary expenses are invoiced by EMAC on a quarterly basis.  The fee may be paid in cash and or with common stock.

b)   Service Agreement signed April 25, 2016 with Merrill W. Moses, President, Director and CEO, for services of $7,500 per month beginning May 2016 and the issuance of a total 700,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

c)   Service Agreement signed May 20, 2016 with Charles C. Hooper, Director, for services of $5,000 per month beginning May 2016 and the issuance of 250,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

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10. Recent Accounting Pronouncements

6 Months Ended

Oct. 31, 2016

Notes

10. Recent Accounting Pronouncements

10. Recent Accounting Pronouncements

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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11. Supplemental Statement of Cash Flows Information

6 Months Ended

Oct. 31, 2016

Notes

11. Supplemental Statement of Cash Flows Information

11. Supplemental Statement of Cash Flows Information

During the six months ended October 31, 2016 and 2015, the Company paid $95,017 and $67,514 for interest.

During the six months ended October 31, 2016 and 2015, the Company paid no amounts for income taxes.

During the six months ended October 31, 2016, the Company had the following non-cash investing and financing activities:

In debt conversions, increased common stock by $183, increased additional paid-in capital by $304,923, decreased convertible notes payable by $72,605, decreased accrued interest and fees payable by $11,644, decreased debt discount by $39,837 and decreased derivative liabilities by $41,880.

Increased accounts payable and debt discount by $14,311.

Increased debt discount and additional paid-in capital by $52,136 for beneficial conversion feature of new convertible notes payable.

Increased debt discount and decreased prepaid expenses by $16,294.

Increased debt discount and derivative liability by $112,189.

Increased common stock by $2 and additional paid-in capital by $5,773 and decreased accrued interest and fees payable by $10,325.

Increased debt discount and additional paid-in capital by $14,365 for the issuance of warrants.

Increased common stock and decreased additional paid-in capital by $30 for net settlement of warrants.

Increased accounts payable and decreased additional paid-in capital by $50,000 for settlement of warrants obligation.

Increased license agreement and accrued license agreement payments by $378,600.

Increased debt discount by $80,000, common stock by $55 and additional paid-in capital by $79,945 for issuance of common stock for debt issuance costs.

During the six months ended October 31, 2015, the Company had the following non-cash investing and financing activities:

Increased common stock by $18, increased additional paid-in capital by $33,969, decreased convertible notes payable by $10,014, decreased debt discount by $2,594 and decreased derivative liability by $24,051.

Decreased debt discount by $10,723 and derivative liability by $146,533.

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12. Restatement of Consolidated Financial Statements

6 Months Ended

Oct. 31, 2016

Notes

12. Restatement of Consolidated Financial Statements

12. Restatement of Consolidated Financial Statements

Because of the Rescission Agreement with DTC discussed in Note 1, the Company has eliminated the accounts of DTC from the Company’s condensed consolidated financial statements as of July 31, 2016 and for the three months then ended, which accounts were previously consolidated with those of the Company.  In addition, certain equity transactions involving obligations to issue shares of the Company’s common stock and the issuance of stock options were not properly recorded in the three months ended July 31, 2016.  The following schedules present the condensed consolidated amounts previously reported, the restatement adjustments to eliminate the accounts of DTC and properly record the equity transactions, and the condensed consolidated amounts as restated.

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Balance Sheet
As of July 31, 2016 (Unaudited)
	As Previously Reported	Restatement Adjustments	As Restated
ASSETS
Current assets:
Cash	$       13,362	$       (12,187)	$           1,175
Inventories	5,355	(5,355)	-
Prepaid expenses	7,875		7,875
Total current assets	26,592	(17,542)	9,050
Property and equipment – construction in progress	11,819	(11,819)	-
Intangible assets	1,437,345	(1,437,345)	-
Total assets	$  1,475,756	$  (1,466,706)	$           9,050
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$     216,210	$         60,555	$       276,765
Accrued interest and fees payable	365,593	(343,846)	21,747
Accrued interest payable – related parties	19,521		19,521
Convertible notes payable, net of discount	1,465,571	(1,119,716)	345,855
Convertible notes payable – related parties	57,050		57,050
Notes payable – related parties	79,656		79,656
Derivative liabilities	228,825		228,825
Payables – related parties	635,855	90,222	726,077
Total current liabilities	3,068,281	(1,312,785)	1,755,496
Total liabilities	3,068,281	(1,312,785)	1,755,496
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value; 20,000,000 shares       authorized, 1,100,000 shares issued and outstanding	110		110
Common stock, $0.0001 par value; 200,000,000 shares       authorized, 24,496,056 and 21,249,676 shares issued       and outstanding, respectively	2,450		2,450
Additional paid-in capital	2,117,489	9,056	2,126,545
Accumulated deficit	(3,712,574)	(162,977)	(3,875,551)
Total stockholders’ deficit	(1,592,525)	(153,921)	(1,746,446)
Total liabilities and stockholders’ deficit	$  1,475,756	$  (1,466,706)	$           9,050

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Statement of Operations
Three Months Ended July 31, 2016 (Unaudited)
	As Previously Reported	Restatement Adjustments	As Restated
Revenue	$                -		$                -
Expenses:
General and administrative	513,682	$    164,656	678,338
Research and development	3,277	(3,277)	-
Total expenses	516,959	161,379	678,338
Loss from operations	(516,959)	(161,379)	(678,338)
Other income (expense):
Interest expense	(303,297)	(1,598)	(304,895)
Gain (loss) on derivative liability	1,498,059		1,498,059
Gain on extinguishment of debt	121,403		121,403
Total other income (expense)	1,316,165	(1,598)	1,314,567
Income (loss) before income taxes	799,206	(162,977)	636,229
Provision for income taxes	-		-
Net income (loss)	$    799,206	$    (162,977)	$       636,229
Net income (loss) per common share:
Basic	$          0.03		$             0.03
Diluted	$          0.03	$          (0.01)	$             0.02
Weighted average common shares outstanding:
Basic	23,097,363		23,097,363
Diluted	32,267,573		32,267,573

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13. Subsequent Events

6 Months Ended

Oct. 31, 2016

Notes

13. Subsequent Events

13. Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events to determine events occurring after October 31, 2016 that would have a material impact on the Company’s financial results or require disclosure.

Issuances of Common Shares

In November 2016, the Company issued 4,000,000 shares of its common stock to several individuals as required by the License Agreement discussed in Note 3.

In November 2016, the Company entered into a short-term convertible promissory note of $5,790, with interest at 6% per annum and convertible into shares of the Company’s common stock at a conversion price of $0.10 per share.

In November 2016, the Company entered into a short-term convertible promissory note of $14,600 with interest at 6% per annum and convertible into shares of the Company’s common stock at a conversion price of $0.075 per share.

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1. Nature of Operations and Continuation of Business: Going Concern (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Going Concern

Going Concern

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern.  Through October 31, 2016, the Company has no revenues, has accumulated losses of $4,285,598 and a working capital deficit of $2,226,322 and expects to incur further losses in the development of its business, all of which cast substantial doubt about the Company’s ability to continue as a going concern.  Management plans to continue to provide for the Company's capital needs during the year ending April 30, 2017 by issuing debt and equity securities and by the continued support of its related parties (see Note 4).  The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.  There is no assurance that funding will be available to continue the Company’s business operations.

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2. Basis of Presentation and Summary of Significant Accounting Policies: Consolidation (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Consolidation

Consolidation

These condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Long Canyon Gold Resources Corp.  All inter-company transactions and balances have been eliminated.

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2. Basis of Presentation and Summary of Significant Accounting Policies: Use of Estimates (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Use of Estimates

Use of Estimates

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

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2. Basis of Presentation and Summary of Significant Accounting Policies: Net Income (Loss) Per Common Share (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Net Income (Loss) Per Common Share

Net Income (Loss) per Common Share

Basic net income or loss per common share is calculated by dividing the Company’s net income or loss by the weighted average number of common shares outstanding during the period.  Diluted net income or loss per common share is calculated by dividing the Company’s net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding.  Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method.  As of October 31, 2016, the Company had 10,577,860 potential shares issuable under outstanding options, warrants and convertible debt.

The common shares used in the computation of our basic and diluted net income (loss) per share are reconciled as follows:

	Three Months Ended October 31,		Six Months Ended October 31,
	2016	2015	2016	2015
Weighted average number of shares    outstanding - basic	26,922,578	21,049,682	25,009,972	20,988,445
Dilutive effect of convertible debt	-	-	155,539	-
Weighted average number of shares    outstanding - diluted	26,922,578	21,049,682	32,165,511	20,988,445

During the three months ended October 31, 2016 and 2015, 9,277,860 and 2,365,098 shares issuable upon exercise of convertible debt, respectively, were excluded from the above calculation due to anti-dilution.  For the six months ended October 31, 2015, 2,365,098 shares issuable upon exercise of convertible debt were excluded from the above calculation due to anti-dilution.

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2. Basis of Presentation and Summary of Significant Accounting Policies: Reclassifications (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Reclassifications

Reclassifications

Certain amounts in the 2015 condensed consolidated financial statements have been reclassified to conform with the current year presentation.

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10. Recent Accounting Pronouncements: Recent Accounting Pronouncements (Policies)

6 Months Ended

Oct. 31, 2016

Policies

Recent Accounting Pronouncements

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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2. Basis of Presentation and Summary of Significant Accounting Policies: Net Income (Loss) Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Earnings Per Share, Basic and Diluted

	Three Months Ended October 31,		Six Months Ended October 31,
	2016	2015	2016	2015
Weighted average number of shares    outstanding - basic	26,922,578	21,049,682	25,009,972	20,988,445
Dilutive effect of convertible debt	-	-	155,539	-
Weighted average number of shares    outstanding - diluted	26,922,578	21,049,682	32,165,511	20,988,445

During the three months ended October 31, 2016 and 2015, 9,277,860 and 2,365,098 shares issuable upon exercise of convertible debt, respectively, were excluded from the above calculation due to anti-dilution.  For the six months ended October 31, 2015, 2,365,098 shares issuable upon exercise of convertible debt were excluded from the above calculation due to anti-dilution.

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4. Related Party Transactions and Balances: Schedule of Convertible Notes Payable Related Parties (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Convertible Notes Payable Related Parties

	October 31, 2016	April 30, 2016
Note payable to related party, no interest, convertible    into common stock of the Company at $0.10 per    share, imputed interest at 9% per annum	$           25,000	$           25,000
Note payable to related party, interest at 6%,    convertible into common stock of the Company at    $0.10 per share	32,050	32,050
	$           57,050	$          57,050

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4. Related Party Transactions and Balances: Schedule of Notes Payable Related Parties (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Notes Payable Related Parties

	October 31, 2016	April 30, 2016
Note payable to related party, with interest at 6% per    annum, due September 15, 2013	$           24,656	$           24,656
Note payable to related party, with interest at 6% per    annum, due March 8, 2014	7,500	7,500
Note payable to related party, with interest at 6% per    annum, due December 5, 2013	47,500	47,500
	$           79,656	$           79,656

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5. Convertible Notes Payable: Schedule of Convertible Notes Payable (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Convertible Notes Payable

	October 31, 2016	April 30, 2016
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	$             11,000	$             11,000
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	9,000	9,000
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	91,150	141,150
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	14,500	14,500
Note payable, amended April 30, 2016, with interest    at 6% per annum, convertible into common stock of the    Company at $0.05 per share 90 days from demand	20,000	20,000
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.05 per share	17,000	17,000
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.05 per share	53,650	-
Note payable to institutional investor, with interest at    10% per annum, convertible into common stock of    the Company at a defined conversion price	25,000	-
Note payable to institutional investor, with interest at    8% per annum, convertible into common stock of    the Company at a fixed conversion price of $0.25    per share	200,000	-
Note payable, with interest at 6% per annum,    convertible into common stock of the Company    at $0.10 per share	23,750	-
Note payable to institutional investor, with interest at    12% per annum, convertible into common stock of    the Company at a defined conversion price	25,000	-
Note payable to institutional investor, with interest at    8% per annum, convertible into common stock of    the Company at a defined conversion price	37,000	-
Note payable to institutional investor, with interest at    9% per annum, convertible after 180 days into    common stock of the Company at a defined    conversion price	35,000	-
Note payable to instititional investor, with interest at 9% per annum, convertible after 180 days into common stock of the Company at a defined conversion price.	40,000
Advances combined in note payable in November 2016	4,190	-
Note payable to institutional investor repaid in    August 2016	-	41,000
Note payable to institutional investor repaid in    July 2016	-	55,500
Note payable to institutional investor repaid in    July 2016	-	39,000
Total	606,240	348,150
Less discount	(156,325)	(284,664)
	$            449,915	$             63,486

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5. Convertible Notes Payable: Schedule of Derivative Liability Related to the Conversion Feature (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Derivative Liability Related to the Conversion Feature

Balance at April 30, 2016	$      2,081,931
Issuance of new debt	112,189
Gain on derivative liability	(1,323,152)
Conversion of debt to shares of common stock    and repayment of debt	(567,333)
Balance at October 31, 2016	$         303,635

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5. Convertible Notes Payable: Schedule of Assumptions Used (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Assumptions Used

Risk-free interest rate	0.34 – 0.59%
Expected life in years	0.11 - 0.76
Dividend yield	0%
Expected volatility	130.03% - 354.88%

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6. Financial Instruments: Fair Value, Liabilities Measured on Recurring Basis (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Fair Value, Liabilities Measured on Recurring Basis

	Total	Level 1	Level 2	Level 3
Derivative liabilities	$         303,635	$                       -	$                        -	$         303,635
Convertible notes payable, net	449,915	-	-	449,915
Total liabilities measured    at fair value	$         753,550	$                       -	$                        -	$         753,550

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8. Stock Options and Warrants: Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

Risk free interest rate	.55 - .68%
Expected life in years	1.0 - 2.0
Dividend yield	0%
Expected volatility	137.99 – 351.37%

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8. Stock Options and Warrants: Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contract Term (Years)	Aggregate Intrinsic Value
Outstanding at April 30, 2016	1,068,333	$	1.56
Granted	300,000	$	0.58
Exercised	(68,333)	$	0.60
Forfeited or expired	-	$	-
Outstanding and exercisable at October 31, 2016	1,300,000	$	1.39	1.57	$   -

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12. Restatement of Consolidated Financial Statements: Restatement to Prior Year Income (Tables)

6 Months Ended

Oct. 31, 2016

Tables/Schedules

Restatement to Prior Year Income

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Balance Sheet
As of July 31, 2016 (Unaudited)
	As Previously Reported	Restatement Adjustments	As Restated
ASSETS
Current assets:
Cash	$       13,362	$       (12,187)	$           1,175
Inventories	5,355	(5,355)	-
Prepaid expenses	7,875		7,875
Total current assets	26,592	(17,542)	9,050
Property and equipment – construction in progress	11,819	(11,819)	-
Intangible assets	1,437,345	(1,437,345)	-
Total assets	$  1,475,756	$  (1,466,706)	$           9,050
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$     216,210	$         60,555	$       276,765
Accrued interest and fees payable	365,593	(343,846)	21,747
Accrued interest payable – related parties	19,521		19,521
Convertible notes payable, net of discount	1,465,571	(1,119,716)	345,855
Convertible notes payable – related parties	57,050		57,050
Notes payable – related parties	79,656		79,656
Derivative liabilities	228,825		228,825
Payables – related parties	635,855	90,222	726,077
Total current liabilities	3,068,281	(1,312,785)	1,755,496
Total liabilities	3,068,281	(1,312,785)	1,755,496
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value; 20,000,000 shares       authorized, 1,100,000 shares issued and outstanding	110		110
Common stock, $0.0001 par value; 200,000,000 shares       authorized, 24,496,056 and 21,249,676 shares issued       and outstanding, respectively	2,450		2,450
Additional paid-in capital	2,117,489	9,056	2,126,545
Accumulated deficit	(3,712,574)	(162,977)	(3,875,551)
Total stockholders’ deficit	(1,592,525)	(153,921)	(1,746,446)
Total liabilities and stockholders’ deficit	$  1,475,756	$  (1,466,706)	$           9,050

Defense Technologies International Corp. (Formerly Canyon Gold Corp.)
Condensed Consolidated Statement of Operations
Three Months Ended July 31, 2016 (Unaudited)
	As Previously Reported	Restatement Adjustments	As Restated
Revenue	$                -		$                -
Expenses:
General and administrative	513,682	$    164,656	678,338
Research and development	3,277	(3,277)	-
Total expenses	516,959	161,379	678,338
Loss from operations	(516,959)	(161,379)	(678,338)
Other income (expense):
Interest expense	(303,297)	(1,598)	(304,895)
Gain (loss) on derivative liability	1,498,059		1,498,059
Gain on extinguishment of debt	121,403		121,403
Total other income (expense)	1,316,165	(1,598)	1,314,567
Income (loss) before income taxes	799,206	(162,977)	636,229
Provision for income taxes	-		-
Net income (loss)	$    799,206	$    (162,977)	$       636,229
Net income (loss) per common share:
Basic	$          0.03		$             0.03
Diluted	$          0.03	$          (0.01)	$             0.02
Weighted average common shares outstanding:
Basic	23,097,363		23,097,363
Diluted	32,267,573		32,267,573

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1. Nature of Operations and Continuation of Business (Details)	6 Months Ended
	Oct. 31, 2016
Details
Entity Incorporation, State Country Name	Delaware
Entity Incorporation, Date of Incorporation	May 27, 1998

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1. Nature of Operations and Continuation of Business: Going Concern (Details) - USD ($)	3 Months Ended		6 Months Ended		100 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016
Details
Net income (loss)	$ 410,047	$ 87,276	$ (226,182)	$ 200,438	$ 4,285,598
Working capital deficit	$ 2,226,322		$ 2,226,322		$ 2,226,322

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2. Basis of Presentation and Summary of Significant Accounting Policies: Net Income (Loss) Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - shares	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Details
Weighted average common shares outstanding: Basic	26,922,578	21,049,682	25,009,972	20,988,445
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,277,860	2,365,098	155,539	2,365,098
Weighted average common shares outstanding: Diluted	26,922,578	21,049,682	32,165,511	20,988,445

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3. License Agreement (Details)	Oct. 31, 2016 USD ($)
Details
Accrued license agreement payments	$ 378,600

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4. Related Party Transactions and Balances (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Details
Payables - related parties	$ 631,654	$ 565,459
Accrued interest payable - related parties	$ 21,197	$ 17,846

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4. Related Party Transactions and Balances: Schedule of Convertible Notes Payable Related Parties (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Convertible notes payable - related parties	$ 57,050	$ 57,050
NotesPayableRelatedParty1Member
Convertible notes payable - related parties	25,000	25,000
NotesPayableRelatedParty2Member
Convertible notes payable - related parties	$ 32,050	$ 32,050

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4. Related Party Transactions and Balances: Schedule of Notes Payable Related Parties (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Notes payable - related parties	$ 79,656	$ 79,656
NotesPayableRelatedParty1Member
Notes payable - related parties	24,656	24,656
NotesPayableRelatedParty2Member
Notes payable - related parties	7,500	7,500
NotesPayableRelatedParty3Member
Notes payable - related parties	$ 47,500	$ 47,500

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5. Convertible Notes Payable: Schedule of Convertible Notes Payable (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Convertible notes payable, net of discount	$ 449,915	$ 63,486
Debt Instrument, Unamortized Discount	(156,325)	(284,664)
Convertible Notes Payable	449,915	63,486
Convertible Note Payable 1
Convertible notes payable, net of discount	11,000	11,000
Convertible Note Payable 2
Convertible notes payable, net of discount	9,000	9,000
Convertible Note Payable 3
Convertible notes payable, net of discount	91,150	141,150
Convertible Note Payable 4
Convertible notes payable, net of discount	14,500	14,500
Convertible Note Payable 5
Convertible notes payable, net of discount	20,000	20,000
Convertible Note Payable 6
Convertible notes payable, net of discount	17,000	17,000
Convertible Note Payable 7
Convertible notes payable, net of discount	53,650
Convertible Note Payable 8
Convertible notes payable, net of discount	25,000
Convertible Note Payable 9
Convertible notes payable, net of discount	200,000
Convertible Note Payable 10
Convertible notes payable, net of discount	23,750
Convertible Note Payable 11
Convertible notes payable, net of discount	25,000
Convertible Note Payable 12
Convertible notes payable, net of discount	37,000
Convertible Note Payable 13
Convertible notes payable, net of discount	35,000
ConvertibleNotePayable15Member
Convertible notes payable, net of discount	40,000	41,000
ConvertibleNotePayable14Member
Convertible notes payable, net of discount	4,190
ConvertibleNotePayable16Member
Convertible notes payable, net of discount		55,500
ConvertibleNotePayable17Member
Convertible notes payable, net of discount		39,000
OtherConvertibleDebtMember
Convertible notes payable, net of discount	$ 606,240	$ 348,150

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5. Convertible Notes Payable (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016
Gain (loss) on derivative liability	$ (174,907)	$ (70,567)	$ 1,323,152	$ (144,941)
Accrued interest and fees payable	26,700		26,700		$ 63,979
Convertible Note Payable 6
Debt discount related to the conversion feature			17,000
Derivative Liability Related to the Conversion Feature			17,000
Convertible Note Payable 7
Debt discount related to the conversion feature			41,000
Derivative Liability Related to the Conversion Feature			78,034
Prepaid Expense, Current					$ 2,500
Gain (loss) on derivative liability			40,534
Convertible Note Payable 9
Debt discount related to the conversion feature			22,500
Derivative Liability Related to the Conversion Feature			51,553
Prepaid Expense, Current	$ 2,500		2,500
Gain (loss) on derivative liability			$ 29,053

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5. Convertible Notes Payable: Schedule of Derivative Liability Related to the Conversion Feature (Details) - USD ($)	6 Months Ended
	Oct. 31, 2016	Apr. 30, 2016
Derivative liabilities	$ 303,635	$ 2,081,931
Derivative Liability
Derivative liabilities	303,635	$ 2,081,931
Issuance of new debt related to the Conversion Feature	112,189
Gain (Loss) on Derivative Liability Related to the Conversion Feature	(1,323,152)
Conversion of debt to shares of common stock and repayment of debt	$ (567,333)

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5. Convertible Notes Payable: Schedule of Assumptions Used (Details)	6 Months Ended
	Oct. 31, 2016
Fair Value Assumptions, Expected Dividend Rate	0.00%
Minimum
Fair Value Assumptions, Risk Free Interest Rate	0.34%
Fair Value Assumptions, Expected Term	1 month 10 days
Fair Value Assumptions, Expected Volatility Rate	130.03%
Maximum
Fair Value Assumptions, Risk Free Interest Rate	0.59%
Fair Value Assumptions, Expected Term	9 months 4 days
Fair Value Assumptions, Expected Volatility Rate	354.88%

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6. Financial Instruments: Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Derivative liabilities	$ 303,635	$ 2,081,931
Convertible Debt	449,915
Liabilities, Fair Value Disclosure, Recurring	753,550
Fair Value, Inputs, Level 3
Derivative liabilities	303,635
Convertible Debt	449,915
Liabilities, Fair Value Disclosure, Recurring	$ 753,550

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7. Stockholders' Deficit (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Stock Issued During Period, Shares, New Issues			5,326,380
Stock Issued During Period, Shares, Issued for Services			2,630,000
Common shares issued for services			$ 570,110
Gain on extinguishment of debt	$ (189,786)	$ 92,712	$ 311,189	$ 155,459
Stock Issued During Period, Shares, Conversion of Convertible Securities			1,829,880
Stock Issued During Period, Value, Conversion of Convertible Securities			$ 72,605
Stock Issuance 1
Stock Issued During Period, Shares, Other			16,500
Stock Issued During Period, Value, Other			$ 10,325
Gain on extinguishment of debt			$ 4,550
Stock Issuance 10
Stock Issued During Period, Shares, Other			550,000
Stock Issued During Period, Value, Other			$ 80,000
Stock Issuance 3
Stock Issued During Period, Shares, Other			300,000
Stock Issued During Period, Value, Other			$ 38,400

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8. Stock Options and Warrants (Details)	6 Months Ended
	Oct. 31, 2016 USD ($) shares
Details
Warrants Issued to A Lender To Purchase Shares | shares	250,000
Estimated Fair Value of Warrants, charged to Debt Discount | $	$ 14,365
Warrants Issued to A Consultant To Purchase Shares | shares	50,000
Estimated Fair Value of Warrants, charged to General and Administrative Expenses | $	$ 9,056

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8. Stock Options and Warrants: Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details)	6 Months Ended
	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.55%
Share Based Compensation Arrangement By Share Based Payment Award, Fair Value Assumptions, Expected Life in Years	1.0
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	137.99%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.68%
Share Based Compensation Arrangement By Share Based Payment Award, Fair Value Assumptions, Expected Life in Years	2.0
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	351.37%

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8. Stock Options and Warrants: Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details)	6 Months Ended
	Oct. 31, 2016 USD ($) $ / shares shares	Apr. 30, 2016 $ / shares shares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	1,300,000	1,068,333
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 1.39	$ 1.56
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares	300,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $	$ (68,333)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 0.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares	1,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 1.39
Share Based Compensation Arrangement By Share Based Payment Award, Weighted Average Remaining Contract Term (Years)	1.57

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9. Contingencies and Commitments (Details) - USD ($)	6 Months Ended	24 Months Ended
	Oct. 31, 2016	Apr. 30, 2013
EMAC Handels AG
Monthly fee for administration services		$ 5,000
Monthly fee for Office Rent		250
Monthly fee for Office Supplies		$ 125
DelbertGBlewettMember
Monthly Director's fee per Service Agreement	$ 7,500
Charles C. Hooper
Monthly fee for administration services	$ 5,000

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11. Supplemental Statement of Cash Flows Information (Details) - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Interest Paid	$ 95,017	$ 67,514
Accrued license agreement payments	378,600
Stock Issuance 1
Increase decrease in common stock	183	18
Increase decrease in Additional Paid In Capital	304,923	33,969
Increase decrease in debt discount	39,837	2,594
Increase decrease in derivative liability	41,880	24,051
Stock Issuance 2
Increase decrease in debt discount		10,723
Increase decrease in derivative liability		$ 146,533
Increase Accounts Payable and Debt Discount	14,311
Stock Issuance 3
Increase decrease in Additional Paid In Capital	52,136
Increase decrease in debt discount	52,136
Stock Issuance 4
Increase decrease in debt discount	16,294
Stock Issuance 5
Increase decrease in debt discount	112,189
Increase decrease in derivative liability	112,189
Stock Issuance 6
Increase decrease in common stock	2
Increase decrease in Additional Paid In Capital	5,773
Stock Issuance 7
Increase decrease in debt discount	14,365
Stock Issuance 8
Increase Common Stock and Decrease Additional Paid In Capital for Net Settlement of Warrants	30
Stock Issuance 9
Increase Accounts Payable and Decrease Additional Paid In Capital for Settlement of Warrants Obligation	50,000
Stock Issuance 10
Increase decrease in debt discount	$ 80,000