Note 2 - Prepaid Expenses

6 Months Ended

Oct. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Note 2 - Prepaid Expenses

Prepaid expenses consist of the following at October 31, 2014 and April 30, 2014:

	October 31,		April 30,
	2014		2014
Prepaid consulting	$	232,810	$	–
Hotel deployment partnership agreement		98,000		–
Deposits on inventory		69,500		–
Other		364		–
Prepaid expenses	$	400,674	$	–

During the six months ended October 31, 2014, the Company issued an aggregate of 7,677,366 shares of its restricted common stock to nine consultants for services to be provided pursuant to consulting agreements. The shares were valued at an average price of $0.064 per share based on the most recent sales of stock subscriptions to investors as of the dates of obligation for a total of $492,736. Based on the terms of the agreements, $259,927 has been included in general and administrative expenses for the six months ended October 31, 2014 and $232,810 is included in prepaid expenses at October 31, 2014. (See Note 5 – Stockholders’ Equity).

On May 1, 2014, STVU (which was merged into the Company on July 31, 2014) entered into a Hotel Deployment Partnership Agreement with AACSA Partners LLC (“AACSA”) whereby AACSA is to provide the Company with up to 1,000 hotel customers through three distinct phases. The agreement has an initial term of seven years and renews annually for each subsequent year unless terminated as permitted in the agreement.

The three Phases are as follows:

Phase 1 – Includes a commitment by AACSA for contracting of 100 hotels nationwide by December 31, 2014. The Company has paid a $100,000 fee for Phase 1 as of July 31, 2014. Two hotels have been deployed as of October 31, 2014 and $2,000 is included in cost of revenues for the three and six months ended October 31, 2014. $98,000 is included in prepaid expenses at October 31, 2014.

Phase 2 – Includes a commitment by AACSA for contracting an additional 150 hotels nationwide between January 1, 2015 and June 30, 2015. Fees of $150,000 will be payable in installments of $75,000 due on January 15, 2015 and $75,000 due on April 15, 2015 for the Phase 2 implementation.

Phase 3 – Includes a commitment by AACSA for contracting an additional 750 hotels nationwide between July 1, 2015 and June 30, 2016. Fees of $750,000 will be payable in three equal quarterly installments of $250,000 each starting on July 1, 2015 for the Phase 3 implementation.

As of October 31, 2014, the Company has prepaid $69,500 on a purchase order for inventory from a supplier.