10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended April 30, 2015
o	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: 0-9483

SPARTA COMMERCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

NEVADA	30-0298178
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
370 Lexington Ave., Suite 1806, New York, NY	10017
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (212) 239-2666

Securities registered pursuant to Section 12(b) of the Exchange Act:  None

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, par value $0.001

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   o Yes   x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.   o Yes   x No

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 preceeding12 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.    x Yes   o 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 504 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to file such files).     x Yes   o No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions "large accelerated filer", "accelerated filer", and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

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

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

The aggregate market value of voting and non-voting common equity of the issuer held by non-affiliates, on October 31, 2014 was $6,686,869

As of July 27, 2015, we had 68,319,244 shares of common stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:  None.  

SPARTA COMMERCIAL SERVICES, INC.

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	3
Item 1A.	Risk Factors	10
Item 1B.	Unresolved Staff Comments	13
Item 2.	Properties	14
Item 3.	Legal Proceedings	14
Item 4.	Mine Safety Disclosures	14
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	15
Item 6.	Selected Financial Data	19
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 8.	Financial Statements and Supplementary Data	24
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	50
Item 9A.	Controls and Procedures	50
Item 9B.	Other Information	50
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	51
Item 11.	Executive Compensation	53
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	55
Item 13.	Certain Relationships and Related Transactions, and Director Independence	57
Item 14.	Principal Accountant Fees and Services	58
Item 15.	Exhibits, Financial Statement Schedules	59
Signatures		61

PART I

ITEM 1.                 BUSINESS

General Overview

Sparta Commercial Services, Inc. ("Sparta" "we," "us," or the "Company") is a Nevada corporation. We are a technology company that provides a wide range of mobile app tools, products and services. We also provide vehicle history reports and a municipal leasing program.

Our roots are in the Powersports industry and our original focus was providing consumer and municipal financing to the powersports, recreational vehicle, and automobile industries (see Discontinued Operations). Presently, through our subsidiary, Specialty Reports, Inc. (SRI), we offer Mobile App development, sales, marketing and support, and Vehicle History Reports.

Our mobile application (mobile app) offerings have broadened our base beyond vehicle dealers to a wide range of businesses including, but not limited to, restaurants, hotels, and grocery stores. We also private label our mobile app framework to enable other businesses to offer custom apps to their customers.

Our vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com); RVchex (Recreational Vehicle History Reports at www.rvchex.com); CarVINreport (Automobile at www.carvinreport.com) and Truckchex (Heavy Duty Truck History Reports at www.truckchex.com). Our Vehicle History Reports are designed for consumers, retail dealers, auction houses, insurance companies and banks/finance companies.

Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease.

Our offices are located at 370 Lexington Avenue, Suite 1806, New York, NY 10017, (212) 239-2666. We maintain a website at www.spartacommercial.com.

We identify our ongoing information technology business in two reporting groups: mobile apps, and vehicle history reports, both of which operate under our wholly owned subsidiary, Specialty Reports, Inc.

MOBILE APPS

The mobile applications group is currently marketing two mobile app products: Specialty Mobile Apps and iMobile Apps (“iMA”). These products allow us to offer custom mobile apps to a wide range of customers. We also private label these products to allow other businesses to easily offer custom mobile apps to their customers.  In June 2014, we announced a private label version of iMA for Canadian software developer Quantech Software, Inc., who will offer the Q-App, powered by iMobileApp, to their customer base of Retail Auto, RV, Powersports, and Marine dealers.

Specialty Mobile App and iMobileApp Products

Specialty Mobile App (SMA) products are based on a customizable modular mobile app platform developed for powersports, automobile, recreational vehicle and marine dealers that allows them to login to our website and utilize a fully customized dealer mobile app on their own schedules. Dealers can upload images, change colors and icons, customize the items displayed, and send push notifications to their customers using the app in order to create a fully branded experience. We generate and package the mobile application, then make it available on-line to the dealer's customers through the Apple App Store and the Android Market. As we build new features and support more devices, customers can take advantage of these new features and devices as well. The SMA platform also allows us to manage licenses and retrieve reporting information.

The iMobileApp (iMA) platform is similar to the SMA platform, but designed for multi-industry use and for semi- and fully-customized applications. Typical markets for the iMA platform are restaurants, hotels, grocery stores, liquor stores, wineries, butcher shops, medical & dental practices, real estate agencies, attorneys, funeral homes, auto body shops, and stand-alone event apps.

Basic features of the SMA and iMA platforms:

Mobile client framework (“MCF”) - Our mobile framework software allows us to provide customized apps that can be installed on the individual mobile devices and deployed through the Apple App Store, Android Market Place, and similar distribution channels.

Content Management System (CMS) - App customers can use our web-based content management system to upload images to their mobile app, change text content, change colors, organize the order of tabs, and publish updates to the app.

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Customized contact information - Our app customers can elect to present their users with a registration screen on startup that collects information such as first name, last name, email address and telephone number in order to track marketing information and push individual notification messages for future functionality.

Multiple Location Support - Our app customers pay subscription fees multiplied by the number of store locations that they wish to include in their app. Customers can use the client customization portal to add locations to their mobile app.

Hours of Operation - Each location covered by an app can have different time groups for hours of operation. For example, a given store may have the parts department open during one time frame, and the sales department open during another time frame. This information is entered by the app customer in the CMS and is displayed to the end user.

Inventory – The inventory screen allows our app customer to specify the type of inventory they want to display and manage. Inventory can be integrated in a number of ways: web link, hand-keyed, and in some cases through a third-party inventory management data feed.

Quick Dial - Quick Dial is a menu option app customers can choose to make available to their users. Users tap the Quick Dial option to get a list of phone numbers on their mobile phones. The app customer can add, remove, and edit phone numbers that appear in the Quick Dial screen from their CMS.

Push Notifications -  A direct communication channel between our app customer and their app user. This is a way for brands to socialize directly with their very best customers, anytime, anywhere, to build a relationship at a one-to-one level. Because users are typically with their smartphones 24/7, they are—through the push-enabled app—inviting the business into their home and workplace.  Our app customers will be virtually with their app users all the time! 

Geo-fencing – Geo-fencing allows our app customers to “fence off” a specific area for their push notification, and when their app users enter that area, they will automatically receive the message on their device. By setting an active period for the push notification, our app customers can limit the time period for the message -- for instance, they can set it up so all app users who enter the area before 5 PM tomorrow receive their push notification. This is especially useful when businesses have deals or events they would like to advertise to nearby users who are most likely to take advantage.

QR Code Scanner - The Quick Response (QR) two-dimensional bar code scanner enables a user to photograph a QR symbol, then gleans its meaning and takes an appropriate action. The app customer can create QR codes from the CMS system and specify the action that should occur when a user scans the code. Actions include displaying information contained in the code, opening a URL, or running a vehicle history report.

Vehicle History Reports - SMA customers can allow app users to request and retrieve vehicle history reports. A user can create an account on the device or use an existing account. The account information is sent to Specialty Reports, Inc. to create a user account in their system. Users can add credits to their account by entering credit card information into the device. Reports are retrieved from the appropriate Specialty Reports system (Cyclechex.com, RVchex.com or CarVinReport.com) and displayed on users’ Smartphones or other mobile devices. Users can also useQR codes to scan in VIN numbers that have been provided to the CMS system.

Marketing Materials - The CMS allows app customers to download stock artwork, including banners for website display, to help promote their products and services.

Embedded Product Developer and SRI Branding - The “about” screen of the application contains information useful to the support of the product. It also contains a powered-by-the-product-developer logo and text. SRI can choose to use a different logo, but the powered-by-the-product-developer text remains on the “about” screen.

App store and Google Android Distribution - All native applications are deployed through the product developer’s App store and Android Market Place online accounts.

Marketing information - If an app customer has enabled first-time user data collection then that information will be available to the app customer on their portal.

Platforms for SMA and iMA Programs

The products have been designed (and maintained and updated by our product development team) to work as the CMS for various smart phone platforms (now existing and potentially emerging in the future). Our products support HTML 5 and work with, but are not limited to, the following devices: iPhone, iPad, Android devices, and Kindle Fire.

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VEHICLE HISTORY REPORTS

The vehicle history report group is currently marketing through its websites: Cyclechex Motorcycle History Reports© (www.cyclechex.com), RVchex™ RV History Reports (www.rvchex.com), CarVinReport Car History Reports (www.carvinreports.com) and Truckchex Heavy Duty Truck History Reports (www.truckchex.com). These reports contain valuable information for consumers, dealers, insurers, auction houses, and lenders. The information includes a vehicle’s history, such as disclosed damage, salvaged or rebuilt title brands, the number of previous owners, the last recorded odometer reading, the manufacturer’s original equipment, and OEM recall data. We assemble the data for these reports from multiple sources, including, but not limited to, governmental agencies, in order to provide the most current information available for the benefit of all interested parties. We believe our products offer a compelling value because they are priced modestly and we provide a no-hassle, 90-day, and 100% money-back guarantee. We are confident that our Specialty Reports provide buyers and sellers the peace of mind that comes from being able to make an informed decision.

In June 2010, Specialty Reports entered into an exclusive five-year agreement with a U.S. government authorized third-party distributor of on-line data from National Motor Vehicle Title System (NMVTIS) for NMVTIS data on motorcycles, scooters, ATVs and recreational vehicles.

NMVTIS is an information system that federal law required the United States Department of Justice to establish and to provide an electronic means to verify vehicle title, brand, and theft data among motor vehicle administrators, law enforcement officials, prospective purchasers and insurance carriers. NMVTIS was initially authorized in the Anti-Car Theft Act of 1992 and reauthorized by the Anti-Car Theft Improvements Act of 1996. After passage of the 1996 reauthorization, responsibility was transferred from the U.S. Department of Transportation to the U.S. Department of Justice. The NMVTIS system is a Department of Justice program currently operated by the American Association of Motor Vehicle Administrators (AAMVA). The system also provides a means for states to share title information in order to prevent fraud and other crime.

NMVTIS was created to:

·   Prevent the introduction or reintroduction of stolen motor vehicles into interstate commerce

·   Protect states, consumers (both individual and commercial), and other entities from fraud

·   Reduce the use of stolen vehicles for illicit purposes including funding of criminal enterprises

·   Provide consumer protection from unsafe vehicles

NMVTIS information is supplied by state motor vehicle agency records and entire sectors (e.g., insurance, auto recyclers/junk/salvage, etc.) addressed by the Anti-Car Theft Act. As opposed to purchasing information from specific businesses or companies, entities are required to provide specific information to NMVTIS in a specific format. NMVTIS is intended to serve as a reliable source of title and brand history for automobiles, motorcycles and other vehicles. However, there are certain pieces of vehicle history data that NMVTIS’ database does not contain; for example, a vehicle's repair history. Currently the data provided to NMVTIS by states is provided in a variety of time frames; while some report and update NVMTIS data in real-time (as title transactions occur) others send updates less frequently, such as once every 24 hours or within a period of days.

This information is available to consumers and dealers on Specialty Reports’ website located at www.cyclechex.com.  Cyclechex is similar to CARFAX® in that it provides on-line vehicle history reports, for a fee, based on the vehicle’s VIN.  However, neither CARFAX® nor AutoCheck® offers information on motorcycles, scooters, ATVs or recreational vehicles.

     Vehicle History Reports benefit consumers:

●      Consumers can purchase reports directly from the Cyclechex, RVchex, Truckchex or CarVinReport website

●      Consumers can purchase reports via an Affiliate website

     Vehicle History Reports benefit dealers:

●      Dealers can purchase a block of history reports from Cyclechex, RVchex, Truckchex or CarVinReport (with pricing incentives to purchase a larger quantity of reports)

●      Reports facilitate acceptance of trade-in vehicles and add value to the purchase of any pre-owned motorcycle, RV, automobile, light truck or heavy-duty truck

●      Dealers can resell reports to customers

     Vehicle History Reports Affiliate Program:

●      Dealers and other industry sources can incorporate the Cyclechex, RVchex, Truckchex or CarVinReport website linkin their sales and marketing strategies

●      Affiliates earn commission on Cyclechex, RVchex, Truckchex or CarVinReport history reports generated from their sites

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Cyclechex Motorcycle History Reports®

Cyclechex Motorcycle History Reports (Cyclechex.com) contain valuable information for consumers, motorcycle dealers, insurers, auction houses, and lenders including whether a pre-owned motorcycle is a specific model year, make and model, if it has reported damage, its title history including the last recorded odometer reading, any salvage or damaged titles, the manufacturer’s original equipment, and OEM recall data.

For consumers looking to buy a pre-owned motorcycle or a retail motorcycle dealer considering a trade-in or the purchase of other used motorcycles, a Cyclechex Motorcycle History Report can be invaluable.  Moreover, for those dealers who want to provide a higher level of confidence to a potential buyer about the true history of the motorcycle being considered for purchase, the Cyclechex Motorcycle History Report is an outstanding sales support tool.

Our system extracts information from multiple sources, including, but not limited to, governmental agencies, in order to provide the most current information available for the benefit of all interested parties. With a no-hassle, 100% money-back guarantee, and at a modest cost, a Cyclechex Motorcycle History Report provide buyers and sellers peace of mind for decision-making. This critical information is available to any interested party by entering a seventeen digit Vehicle Identification Number (VIN), which covers vehicles dating back to 1981, on our website.

In February 2014, we announced a reciprocal marketing agreement with Allstate insurance company that makes Cyclechex Motorcycle History Reports a recommended tool for Allstate customers.

RVchex™ Recreational Vehicle History Reports

RV History Reports (RVchex.com) contains important and valuable information about any reported damage, salvage, and other relevant data concerning a particular pre-owned RV. Our system extracts information from multiple data sources, including, but not limited to, government agencies throughout the United States. RVchex.com delivers up-to-date, accurate information to consumers, RV dealers, lenders, insurers, and other interested parties, and we offer a no-hassle, 100% money-back guarantee. This critical information is available to any interested party by entering a seventeen digit Vehicle Identification Number (VIN) on our website.

Truckchex Heavy Duty Truck History Reports

The Truckchex Heavy Duty Truck History Report (Truckchex.com) contains valuable information for truck drivers, trucking companies, dealers, insurers, auction houses, and lenders, including whether a specific pre-owned commercial truck has reported damage, recorded accidents, post-accident inspections, inspection violations,  the last recorded odometer reading, any salvage or damaged titles, the manufacturer’s original equipment, and OEM recall data. Our system extracts information from multiple data sources, including, but not limited to, governmental agencies throughout the United States. Truckchecks.com delivers up-to-date, accurate to consumers, truck dealers, lenders, insurers, and other interested parties, and we offer a no-hassle, 100% money-back guarantee. This critical information is available to any interested party by entering a seventeen digit Vehicle Identification Number (VIN) on our website.

CarVin Reports

CarVINreport.com is an online provider of Automobile History Reports. The CarVinReport Car History Report (CarVINreport.com) contains extremely valuable information for consumers, dealers, insurers, auction houses, and lenders, including whether a specific pre-owned automobile has Salvage or Rebuilt Title status or has sustained Flood Damage, the last recorded odometer reading, the manufacturer's original equipment, and OEM recall data. For consumers looking to buy a pre-owned automobile or a retail automobile dealer considering a trade-in or the purchase of other used automobiles, a CarVinReport Car History Report can be invaluable. Moreover, for those dealers who want to provide a higher level of confidence to a potential buyer about the true condition of the automobile being considered for purchase, the CarVinReport Car History Report is an outstanding sales support tool.

The following websites are among those affiliated with Specialty Reports Inc. used to appropriately direct customer inquiries:

www.dmv.org

www.kbb.com

www.motorcycle-histories.com

www.motorcycleshippers.jcmotors.com

www.nadaguides.com

www.cyclepedia.com

http://www.allstateridernews.com/offers

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Each of our four-vehicle history reports search government databases for over 90 types of vehicle title problems and over 28 million Salvage or Loss title records. Our reports provide some, if not all, of the following information:

Crushed Vehicles

Disclosed Damage

Last Recorded Odometer Reading

Manufacturers’ Recall History

Manufacturers’ Specifications

Multi-State Searches

Rebuilt Titles

Salvage-Stolen Titles

Salvaged or Damaged Titles

VIN Decoding

Crash Data

Inspection Data

MARKETING AND SALES

Marketing

Our marketing starts with product development. We create compelling products that; (i) in the case of Specialty Mobile Apps and iMobileApp, provide vehicle dealerships and other businesses with a state-of-the-art mobile application, and (ii) in the case of our four vehicle history report products, provide historical title information that assists consumers in purchase decision-making and dealers, auction houses, or other entities in making a sale or evaluating a vehicle.

Specialty Mobile Apps (SMA)

The primary marketing objective for SMA is to continue gaining market share of the vehicle dealer marketplace. We continue to target franchised vehicle dealers by type of product and manufacturer by specifically approaching each dealership in their dealer network to promote our SMA mobile application. By selling our mobile applications throughout one manufacturer’s dealer network, we benefit from “word of mouth” referrals while building a recognizable presence in that particular market. For example, a leading motorcycle manufacturer has over 1,400 authorized dealers worldwide. By penetrating this market, we significantly improve our credibility with their entire dealer network, resulting in the individual dealers being more receptive to our sales call, and making them more likely to purchase a Specialty Mobile App and refer us to other dealers.

Additional marketing is done through targeted advertising as well as news stories in relevant trade publications.

iMobileApp (iMA)

There are two primary areas of focus to continue gaining market share for iMA – digital marketing and targeted sales efforts.

The digital marketing strategy is predicated on the fact that the business mobile app marketplace is emerging and highly fragmented.  In parallel, the web is not yet dominated by any one business mobile app competitor. Our strategy is to build a strong digital web presence that will help grow our business in the short term, and establish iMA as the market leader in web search as the industry consolidates. The cornerstone of our digital strategy is a state-of-the-art web management platform (see www.iMobileApp.com) that is highly search engine optimized (SEO) in structure and content. Page rank and traffic will increase over time as we support the website with traffic building efforts through blogging, social networking, ad-clicks, remarketing, and continual technical and content optimization. The goal is to have a leadership market share in organic and accidental search for businesses seeking mobile application solutions.

Traditional sales and marketing efforts will be employed against key categories that have an established high level of acceptance for mobile apps and/or in which iMA has already established market share. Efforts include inside sales calls, email campaigns, category trade association marketing, and customer referrals.

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Vehicle History Reports

The vehicle categories that we are targeting - motorcycles, recreational vehicles and commercial trucks – are not the focus of our largest competitors (CARFAX, AutoCheck).  Distribution in the vehicle history reports industry is web-based, and digital competition in our targeted categories is relatively weak and fragmented. Our digital strategy is to become the leading search result for consumers seeking information on used powersports vehicles RV’s, and heavy-duty trucks. We employ an advanced web management platform that is highly search engine optimized (SEO).  Page rank and traffic will increase over time as we support the website with traffic building efforts through blogging, social networking, ad-clicks, remarketing, and continual technical and content optimization.

An equally important digital strategy is our affiliate and cross-marketing programs. By working with leading companies that serve this category – like NADA guides, DMV.org, Kelley Blue Book, and AllState – we are able to cross-promote our powersports and RV history reporting products on their websites.  Consumers who are on affiliate or marketing partner sites can become aware of our reporting services and click through to our websites.  If a purchase is completed, the referring affiliate receives a commission on the sale or in some cases may extend a discount to their customers.

In December 2010, Powersports Business chose Cyclechex as one of their “Nifty 50” winners, recognizing it as one of the top 50 new powersports products introduced during the year.

SRI has considerable opportunity to increase brand awareness and grow traffic through product development, targeted marketing programs and strategic partnerships.

Sales and Customer Support

Our newly organized and expanded sales team for Mobile Applications work out of our New York City office, with field reps in Colorado, Florida, New Jersey, Tennessee, Texas and Washington.

The sales team is responsible for closing sales on leads generated from web inquires, email responses, inside sales calls and customer referrals. The team targets target businesses, trade associations, national chains, manufacturers, vehicle dealers and vehicle auction houses.

Customer service is based in our New York office.

Competition

While there are numerous entities offering customized mobile apps, we believe that Specialty Mobile Apps is the leading pre-packaged customizable mobile app for vehicle dealers at a price point significantly below other vendors of customized apps for the vehicle dealer industry.

Because of our strong customer service and our roots in marketing, we believe that our iMobileApp product can be effectively and competitively marketed.

The two major providers of used automobile history reports, CarFax® and AutoCheck® do not provide motorcycle, recreational vehicle or heavy duty truck history reports. In fact, CarFax states on their website that their database contains records primarily of cars and light trucks and “for heavy trucks, RVs, or motorcycles, CARFAX recommends checking with your DMV, enthusiast forums, and of course a pre-purchase vehicle inspection.” AutoCheck states on its web site “AutoCheck only reports on information for cars and light trucks.” Based on our existing roster of Cyclechex affiliates and current negotiations for additional affiliates, we do not see any company as a significant competitor at this time. We have not identified direct competition of the RV space and do not intend to compete directly with either CarFax® or AutoCheck®.

MUNICIPAL LEASING OF EQUIPMENT, INCLUDING POLICE MOTORCYCLES

Notwithstanding our discontinuance of consumer financing, we continue to offer, on a pass through basis, an equipment-leasing product for local and state agencies throughout the country seeking a better and more economical way to finance their essential equipment needs, including police motorcycles and cruisers, buses and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease to agencies.

DISCONTINUED OPERATIONS

As discussed in NOTE C to the consolidated financial statements, in August 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan business segments and the sale of all of the Company’s portfolio of RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented.

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The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Fiscal Year Ended
	April 30,			April 30,
	2015			2014
Revenues	$	41,714		$	122,372
Net loss	$	(246,537	)	$	(280,441	)

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode (paying-off and terminating as agreed or by repossession), therefore no portfolio performance measures were calculated for the year ending April 30, 2015 and the Company has discontinued segment reporting.

Regulation

Our prior financing operations were and are subject to regulation, supervision, and licensing under various federal, state, and local statutes and ordinances.  Additionally, the procedures that we must follow in connection with the repossession of vehicles securing contracts are regulated by each of the states in which we do business.  Accordingly, the laws of such states, as well as applicable federal law, govern our operations.  Compliance with existing laws and regulations has not had a material adverse effect on our operations to date.  Our management believes that we maintain all requisite licenses and permits and are in material compliance with all applicable local, state, and federal laws and regulations.  We periodically review our office practices in an effort to ensure such compliance.

The following constitute certain of the federal, state, and local statutes and ordinances with which we must comply:

·   Fair Debt Collection Practices Act.  The Fair Debt Collection Practices Act and applicable state law counterparts prohibit us from contacting customers during certain times and at certain places, from using certain threatening practices and from making false implications when attempting to collect a debt.

·   Truth in Lending Act.  The Truth in Lending Act requires us and the dealers we do business with to make certain disclosures to customers, including the terms of repayment, the total finance charge, and the annual percentage rate charged on each contract. 

·   Consumer Leasing Act.  The Consumer Leasing Act applies to any lease of consumer goods for more than four months.  The law requires the seller to disclose information such as the amount of initial payment, number of monthly payments, total amount for fees, penalties for default, and other information before a lease is signed.

·   The Consumer Credit Protection Act of 1968.  The Act required creditors to state the cost of borrowing in a common language so that the consumer can figure out what the charges are, compare costs, and shop for the best credit deal.

·   Equal Credit Opportunity Act.  The Equal Credit Opportunity Act prohibits creditors from discriminating against loan applicants based on race, color, sex, age, or marital status.  Pursuant to Regulation B promulgated under the Equal Credit Opportunity Act, creditors are required to make certain disclosures regarding consumer rights and advise consumers whose credit applications are not approved of the reasons for the rejection.

·   Fair Credit Reporting Act.  The Fair Credit Reporting Act requires us to provide certain information to consumers whose credit applications are not approved on the basis of a report obtained from a consumer reporting agency.

·   Gramm-Leach-Bliley Act.  The Gramm-Leach-Bliley Act requires us to maintain privacy with respect to certain consumer data in our possession and to periodically communicate with consumers on privacy matters.

·   Soldiers' and Sailors' Civil Relief Act.  The Soldiers' and Sailor's Civil Relief Act requires us to reduce the interest rate charged on each loan to customers who have subsequently joined, enlisted, been inducted or called to active military duty, if requested to do so. 

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·   Electronic Funds Transfer Act.  The Electronic Funds Transfer Act prohibits us from requiring our customers to repay a loan or other credit by electronic funds transfer ("EFT"), except in limited situations that do not apply to us.  We are also required to provide certain documentation to our customers when an EFT is initiated and to provide certain notifications to our customers with regard to preauthorized payments.

·   Telephone Consumer Protection Act.  The Telephone Consumer Protection Act prohibits telephone solicitation calls to a customer's home before 8 a.m. or after 9 p.m.  In addition, if we make a telephone solicitation call to a customer's home, the representative making the call must provide his or her name, our name, and a telephone number or address at which our representative may be contacted.  The Telephone Consumer Protection Act also requires that we maintain a record of any requests by customers not to receive future telephone solicitations, which must be maintained for five years.

·   Bankruptcy.  Federal bankruptcy and related state laws may interfere with or affect our ability to recover collateral or enforce a deficiency judgment.

·   Dodd-Frank Wall Street Reform and Consumer Protection Act.  The Dodd-Frank Wall Street Reform and Consumer Protection Act authorized the creation of a Bureau of Consumer Financial Protection.  The impact on the Company of the newly created agency is unknown at this time as the agency is yet to be formed.

Employees

As of April 30, 2015, we had 18 full-time employees.

ITEM 1A.              RISK FACTORS

We are subject to certain risks and uncertainties in our business operations that are described below. The risks and uncertainties described below are not the only risks we face. Additional risks anduncertainties not presently known or that are currently deemed immaterial may also impair our business operations.

We have an operating history of losses.

Through our fiscal year ended April 30, 2015, we have generated cumulative sales revenues, including discontinued operations, of $7,088,155, have incurred significant expenses, and have sustained significant losses. Our net loss for the year ended April 30, 2015 was $4,921,148.  As of April 30, 2015, we had a deficit net worth of $5,939,102.

Our business requires additional amounts of capital and we will need to obtain additional financing in the near future.

In order to expand our business, we need raise additional capital to support our operations until we become cash flow positive. We will have to raise approximately $2 million over the next twelve months to support our business.  As our business grows, we will need to seek additional financing to fund growth. There can be no assurance that we will have sufficient capital or be able to secure credit facilities when needed.  The failure to obtain additional funds, when required, on satisfactory terms and conditions, would have a material and adverse effect on our business, operating results and financial condition, and ultimately could result in the cessation of our business.

To the extent, we raise additional capital by issuing equity securities; our stockholders may experience substantial dilution.  In addition, any new equity securities may have greater rights, preferences or privileges than our existing common stock.  A material shortage of capital will require us to take drastic steps such as reducing our level of operations, disposing of selected assets or seeking an acquisition partner.  If cash is insufficient, we will not be able to continue operations.

We are new entrants into the information technology business.

We are new entrants into the businesses of providing vehicle history reports and building mobile apps. We indirectly compete with major, well capitalized, suppliers of automobile history reports. While these companies do not presently offer motorcycle or RV history reports, there is no guaranty they will not do so in the future.  Many small “players” characterize the mobile app building business. While we believe we are better suited to market mobile apps than our competitors, there is no assurance that we can continue to do so.

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We face security risks related to our electronic processing of sensitive and confidential customer and associate data.

Given the nature of our business, we and/or our service providers collect process and retain sensitive and confidential customer data, including credit card information. Despite our current security measures, our facilities and systems, and those of our third-party service providers, may be vulnerable to information security breaches, acts of vandalism, computer viruses or other similar attacks. An information security breach involving the disclosure of confidential data could damage our reputation and our customers' willingness to shop on our websites, and subject us to possible legal liability. In addition, we may incur material remediation costs as a result of an information security breach, including liability for stolen customer or associate data, repairing system damage or providing credit monitoring or other benefits to customers or associates affected by the breach.

We could be harmed by data loss or other security breaches

As a result of our services being web-based and the fact that we process and/or our service providers, store and transmit large amounts of data, including personal information, for our customers, failure to prevent or mitigate data loss or other security breaches, including breaches of our vendors' technology and systems, could expose us or our customers to a risk of loss or misuse of such information, adversely affect our operating results, result in litigation or potential liability for us and otherwise harm our business. We use third party technology and systems for a variety of reasons, including, without limitation, encryption and authentication technology, employee email, content delivery to customers, back-office support and other functions. Although we and our service providers have developed systems and processes that are designed to protect customer information and prevent data loss and other security breaches, such measures cannot provide absolute security.

Our auditor’s opinion expresses doubt about our ability to continue as a “going concern”.

The independent auditor’s report on our April 30, 2015 consolidated financial statements state that our historical losses raise substantial doubts about our ability to continue as a going concern.  We cannot assure you that we will be able to generate revenues or maintain any line of business that might prove to be profitable.  Our ability to continue as a going concern is subject to our ability to generate a profit or obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, increasing sales or obtaining credit lines or loans from various financial institutions where possible.  If we are unable to develop our business, we may have to discontinue operations or cease to exist, which would be detrimental to the value of our common stock.  We can make no assurances that our business operations will develop and provide us with significant cash to continue operations. 

A significant number of customers may fail to perform under their loans or leases.

Despite the sale of our RISC portfolio, we continue to own a “run-off” (paying-off and terminating as agreed or by repossession) portfolio of leases. As a lender or lessor, one of the largest risks we face is the possibility that a significant number of customers will fail to pay their payments when due.  If customers’ defaults cause losses in excess of our allowance for losses, it could have an adverse effect on our business, profitability and financial condition.  If a borrower enters into bankruptcy, we may have no means of recourse.  We have established an evaluation process designed to determine the adequacy of the allowance for losses.  While this evaluation process uses historical and other objective information, the establishment of losses is dependent largely on management’s experience and judgment.  We cannot assure you that our loss reserves will be sufficient to absorb future losses or prevent a material adverse effect on our business, profitability or financial condition.

A variety of factors and economic forces may affect our operating results.

Our operating results may differ from current forecasts and projections significantly in the future because of a variety of factors, many of which are outside our control.  These factors include, without limitation, the receipt of revenues, which is difficult to forecast accurately, the amount and timing of capital expenditures and other costs relating to the expansion of our operations, the introduction of new products or services by us or our competitors, borrowing costs, pricing changes in the industry, technical difficulties, general economic conditions and economic conditions specific our market place.  The success of an investment in a vehicle history report and mobile app based venture is dependent, at least, in part, on extrinsic economic forces, including the supply of and demand for such services.  No assurance can be given that we will be able to generate sufficient revenue to cover our cost of doing business.  Furthermore, our revenues and results of operations will be subject to fluctuations based upon general economic conditions.  Economic factors like unemployment, interest rates, and the availability of credit generally, municipal government and corporate budget constraints affecting equipment and technology purchases, the rate of inflation, and consumer perceptions of the economy may affect the volume of history report purchases.

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Failure to perfect a security interest could harm our business.

Although our leasing portfolio is in a run-off mode (paying-off and terminating as agreed or by repossession), an ownership interest or security interest in a motor vehicle registered in most states may be perfected against creditors and subsequent purchasers without notice for valuable consideration only by complying with certain procedures specific to the particular state.  While we believe we have made all proper filings, we may not have a perfected lien or ownership interest in all of the vehicles we have financed.  We may not have a validly perfected ownership interest and security interest, respectively, in some vehicles during the period of the loan.  As a result, our ownership or security interest in these vehicles will not be perfected and our interest could be inferior to interests of other creditors or purchasers who have taken the steps described above.  If such creditors or purchasers successfully did so, the affected vehicles would not be available to generate their expected cash flow, which would have a material adverse effect on our business.

Risks associated with leasing.

Our business is subject to the risks generally associated with the ownership and leasing of vehicles.  A lessee may default in performance of its consumer lease obligations and we may be unable to enforce our remedies under a lease.  As a result, certain of these customers may pose credit risks to us.  Our inability to collect receivables due under a lease and our inability to profitably sell or re-lease off-lease vehicles could have a material adverse effect on our business, financial condition or results of operations.

Adverse changes in used vehicle prices may harm our business.

Significant increases in the inventory of vehicles may depress the prices at which we can sell or lease our inventory of used vehicles composed of off-lease and repossessed vehicles or may delay sales or leases.  Factors that may affect the level of used vehicles inventory include consumer preferences, leasing programs offered by our competitors and seasonality.  In addition, average used powersports vehicle prices have fluctuated in the past, and any softening in the used powersports vehicle market could cause our recovery rates on repossessed vehicles to decline below current levels.  Lower recovery rates increase our credit losses and reduce the amount of cash flows we receive.

Our business is dependent on intellectual property rights and we may not be able to protect such rights successfully.

Our intellectual property, including our license agreements and other agreements, which establish our rights to proprietary intellectual property, our Cyclechex, RVchex, CarVin , and Truckchex vehicle history reports and our SMA and iMA mobile apps are of great value to our business operations.  Infringement or misappropriation of our intellectual property could materially harm our business.  We rely on a combination of trade secret, copyright, trademark, and other proprietary rights laws to protect our rights to this valuable intellectual property.  Third parties may try to challenge our intellectual property rights.  In addition, our business is subject to the risk of third parties infringing or circumventing our intellectual property rights.  We may need to resort to litigation in the future to protect our intellectual property rights, which could result in substantial costs and diversion of resources.  Our failure to protect our intellectual property rights could have a material adverse effect on our business and competitive position.

Our business is subject to various government regulations.

While we have sold our consumer loan portfolio, we retain a small and declining lease portfolio. Therefore, we are subject to numerous federal and state consumer protection laws and regulations and licensing requirements, which, among other things, may affect: (i) the interest rates, fees and other charges we impose; (ii) the terms and conditions of the contracts; (iii) the disclosures we must make to obligors; and (iv) the collection, repossession and foreclosure rights with respect to delinquent obligors.  The extent and nature of such laws and regulations vary from state to state.  Federal bankruptcy laws limit our ability to collect defaulted receivables from obligors who seek bankruptcy protection.  Prospective changes in any such laws or the enactment of new laws may have an adverse effect on our business or the results of operations.  Compliance with existing laws and regulations has not had a material adverse effect on our operations to date.  We will need to periodically review our office practices in an effort to ensure such compliance, the failure of which may have a material adverse effect on our operations and our ability to conduct business activities.

We do not intend to pay dividends on our common stock.

We have never declared or paid any cash dividend on our common stock. We currently intend to retain any future earnings and do not expect to pay any dividends on our common stock in the foreseeable future. Future cash dividends on the common stock, if any, will be at the discretion of our board, and will depend on our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions imposed by lending or other agreements, including agreements with holders of senior or preferential rights, and other factors that the board may consider important.

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We have authorized a class of preferred stock that may alter the rights of common stockholders by giving preferred stock holders greater dividend rights, liquidation rights and voting rights than our common stockholders have.

Our board is empowered to issue, without stockholder approval, preferred stock, on one or more series, with dividend, liquidation, conversion, voting or other rights that could adversely affect the voting power or other rights of the holders of common stock.  From time to time, we have designated, and may in the future designate, series of preferred stock carrying various preferences and rights different from, and greater than, our common stock.  As of April 30, 2015, we have one series of preferred stock outstanding. Preferred stock could be utilized, under certain circumstances, as a method of discouraging, delaying or preventing a change in control of the company.

We are subject to various securities-related requirements as a reporting company.

We may need to improve our reporting and internal controls and procedures.  We have in the past submitted reports with the SEC after the original due date of such reports.  If we fail to remain current on our reporting requirements, our common stock could be removed from quotation from the OTC Bulletin Board, which would limit the ability to sell our common stock.

We are controlled by current officers, directors and principal stockholders.

Our directors and executive officers beneficially own approximately 2.52% of our common stock as of April 30, 2015.  Accordingly, these persons and their respective affiliates have the ability to exert some control over the election of our Board of Directors and the outcome of issues submitted to our stockholders, including approval of mergers, sales of assets or other corporate transactions.  In addition, such control could preclude any unsolicited acquisition of our company and could affect the price of our common stock.

We are dependent on our management and the loss of any officer could hinder our implementation of our business plan.

We are heavily dependent upon management, the loss of any one of whom could have a material adverse effect on our ability to implement our business plan.  While we have entered into employment agreement with our Chief Executive Officer, this employment agreement could be terminated for a variety of reasons.  We do not presently carry key man insurance on the life of any employee.  If, for some reason, the services of management, or of any member of management, were no longer available to us, our operations and proposed businesses and endeavors may be materially adversely affected.  Any failure of management to implement and manage our business strategy may have a material adverse effect on us.  There can be no assurance that our operating and financial control systems will be adequate to support our future operations.  Furthermore, the inability to continue to upgrade the operating and financial control systems, the inability to recruit and hire necessary personnel or the emergence of unexpected expansion difficulties could have a material adverse effect on our business, financial condition or results of operations.

ITEM 1B.              UNRESOLVED STAFF COMMENTS

Not applicable.

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ITEM 2.                 PROPERTIES

Our executive offices are located at 370 Lexington Avenue, Suite 1806, New York, NY 10017. We have an agreement for use of office space at this location under a sub-lease expiring on June 29, 2016. The office space contains approximately 2,800 square feet.    For the year ended April 30, 2015, the rent was $185,213. For the year ending April 30, 2016, the rent is $229,830 and for the remaining two months of our sub-lease ending June 30, 2016 the rent is $38,305.

ITEM 3.                 LEGAL PROCEEDINGS

As at April 30, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion is currently scheduled to be heard in September 2015. The Company is currently considering an appeal of the Court's decision on the Company's claims.

ITEM 4.                 MINE SAFETY DISCLOSURES

Not applicable

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PART II

ITEM 5.                 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock is currently quoted on the OTC Bulletin Board under the symbol "SRCO".  The following table sets forth, for the calendar periods indicated, the range of the high and low closing prices of our common stock, as reported by the OTCBB. The quotations represent inter-dealer prices without retail mark-ups, mark-downs or commissions, and may not necessarily represent actual transactions.

	High		Low
Fiscal Year 2015
First quarter (May 1, 2014 – July 31, 2014)	$	1.24	$	0.43
Second quarter (August 1, 2014 – October 31, 2014)	$	0.58	$	0.17
Third quarter (November 1, 2014 – January 31, 2015)	$	0.32	$	0.14
Fourth quarter (February 1, 2015 – April 30, 2015)	$	0.14	$	0.04
Fiscal Year 2014
First quarter (May 1, 2013 – July 31, 2013)	$	0.70	$	0.39
Second quarter (August 1, 2013 – October 31, 2013)	$	0.74	$	0.41
Third quarter (November 1, 2013 – January 31, 2014)	$	1.29	$	0.45
Fourth quarter (February 1, 2014 – April 30, 2014)	$	1.32	$	0.93

Holders

The approximate number of holders of record of our common stock as of April 30, 2015 was 3,073 excluding stockholders holding common stock under nominee security position listings.

Dividends

We have never declared any cash dividends on our common stock. Future cash dividends on the common stock, if any, will be at the discretion of our Board of Directors and will depend on our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions, including any restrictions pursuant to the terms of senior securities outstanding, and other factors that the Board of Directors may consider important. The Board of Directors does not intend to declare or pay cash dividends in the foreseeable future. It is the current policy to retain all earnings, if any, to support future growth and expansion.

As of April 30, 2015, we had outstanding 125 shares of Series A Convertible Preferred Stock, $.001 par value. The Series A shares pay a 6% annual dividend that may be paid in cash or shares of common stock at our option.  We have not, as of April 30, 2015, distributed any dividends on the Series A shares, in cash or in shares of common stock. Upon conversion of the Series A shares, all accrued and unpaid dividends are extinguished. As of April 30, 2015, there was $7,562 of accrued Series A dividends payable.

As of April 30, 2015, we had no shares of Series B preferred stock outstanding or dividends payable. During the year ended April 30, 2015, pursuant to the terms of the Series B Preferred Stock, the Company redeemed and returned to treasury all shares of Series B Preferred Stock and all shares of to be issued Series B Preferred Stock by exchanging the shares for $2,118,309 of note subscription receivables and $204,458 of interest receivable thereon. Subsequent to this redemption, there were no shares of Series B Preferred Stock outstanding and there were no shares of Series B Preferred Stock payable.

Recent Sales of Unregistered Securities  

Each of the issuance and sale of securities described below was deemed to be exempt from registration under the Securities Act in reliance on Section 4(2) of the Securities Act as transactions by an issuer not involving a public offering. No advertising or general solicitation was employed in offering the securities. Each purchaser is a sophisticated investor (as described in Rule 506(b) (2) (ii) of Regulation D) or an accredited investor (as defined in Rule 501 of Regulation D), and each received adequate information about the Company or had access to such information, through employment or other relationships, to such information.

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During the year ended April 30, 2015, the Company:

●  sold 9,655,415 shares of common stock to eighteen accredited investors for $978,886

●  issued 9,487,478 shares of common stock upon the conversion of convertible notes and accrued interest in the amount of $684,788 of which 122,449 shares were classified as to be issued at April 30, 2014 and 1,963,350 shares remained to be issued at April 30, 2015, see following text for details of the notes converted,

●  issued 1,353,830 shares of common stock with 51,000 shares of common stock to be issued at April 30, 2015 valued at $181,912 pursuant to terms of various notes of which 24,809 shares were classified as to be issued at April 30, 2014,

● issued 1,234,959 shares of common stock valued at $352,942 pursuant to consulting agreements, of which 60,000 shares remained to be issued,

● issued 538,160 shares of common stock in payment of $80,154 in accounts payable of which 20,000 shares were classified as to be issued at April 30, 2014, and 100,000 were classified as to be issued at April 30, 2015.

● issued 31,780 shares of common stock valued at $77,460 to three employees in exchange for their outstanding stock purchase options.

Notes convertible at the holder’s option consist of:

Repaid $241,250 of a $1,163,369, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. Issued this noteholder 279,007 shares of common stock to this note holder with another 447,796 shares to be issued at April 30, 2015 upon the conversion of $94,336 of accrued interest

Borrowed $96,500 pursuant to a 6% note due June 30, 2015, and a $40,000 note due December 23, 2015.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). $23,000 of the June 30, 2015 note was converted into 771,370 shares of the Company’s common stock.

Borrowed $59,000 due December 15, 2015, pursuant to the terms of a $165,000, 5% convertible note commitment. And, borrowed another $27,500 due February 25, 2017 pursuant to the terms of a second $165,000, 5% convertible note commitment. Both notes are identical in terms. The lender may lend additional consideration to the Company in such amounts and at such dates as Lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable.  The Conversion Price is the lesser of $0.60 or 70% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the Company fails to maintain its status as DTC Eligible, the Principal amount of the Note shall increase by $10,000 and the conversion price shall be redefined to equal the lesser of $0.60 or 50% of the lowest closing prices during the 25 trading days immediately previous to the day the conversion notice is delivered to the Company. Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. During the fiscal year, two notes totaling $118,000, issued in the prior fiscal year, plus accrued interest thereon were converted into 835,354 shares of the Company’s common stock.

Borrowed the final two $27,500 tranches of a $165,000 due on January 28, 2016 and March 23, 2016, respectively, pursuant to the terms of a 5% convertible note. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the borrower is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date is one year from the effective date of each payment and is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable.  The Conversion Price is the lesser of $0.60 or 60% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. Three notes issued in the prior fiscal year with a total outstanding principal balance of $90,000 plus accrued interest thereon were converted into 1,139,721 shares of the Company’s common stock.

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Borrowed two $110,000 8% notes in two $55,000 tranches each, with due dates of: January 21, 2015, two tranches on January 26, 2016, and February 27, 2016, January 26, 2016. The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full. $85,000 of notes plus accrued interest were converted into 2,506,466 shares of the Company’s common stock.

Sold to an accredited investor a convertible six notes in the aggregate amount of $211,500. The notes are nine-month notes and bear 8% interest. Outstanding at April 30, 2015 are: (a) a $33,000, 8% note due August 16, 2015; and (b) a $33,000, 8% note due October 5, 2015. The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). During the fiscal year, four of the notes totaling $145,500 plus accrued interest thereon were repaid and $42,500 of notes issued during the prior fiscal year, plus accrued interest thereon, were repaid.

Borrowed: $50,000 pursuant to an 8% convertible note due December 20, 2014. This note was repaid; $55,000 pursuant to a 12% convertible note due December 19, 2015. $20,000 of this note was converted into 696,152 shares of the Company’s common stock, the balance was repaid; $105,000 pursuant to a 12% convertible note due December 30, 2015. This note plus accrued interest was converted into 1,716,562 shares of the Company’s common stock; and a $55,000, 12% note due June 22, 2015. The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

Borrowed $110,000 in two $55,000 tranches pursuant to a $220,000, 10% note due May 24, 2015 and July 27, 2015. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

Borrowed: $55,125 pursuant to an 8% convertible note due December 9, 2015, $50,000 pursuant to an 8% convertible note due April 16, 2016, and borrowed a $52,500 pursuant to a 8% convertible note due December 9, 2015. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). $7,500 of the April 16, 2016 note plus interest thereon was converted into 223,661 shares of the Company’s common stock.

Borrowed $50,000 pursuant to a 10% convertible note due December 15, 2015.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

Borrowed $13,859 pursuant to an 8% convertible note due February 9, 2015. This note plus accrued interest thereon was fully converted into 259,366 shares of the Company’s common stock. Borrowed $27,500 pursuant to an 8% convertible note due February 2, 2016. This note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). Borrowed $50,000 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). $15,000 of this note was converted into 518,519 shares of the Company’s common stock. Borrowed $22,500 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). Borrowed $27,250 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

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Borrowed $13,586 pursuant to an 8% convertible note due February 9, 2015. This note plus accrued interest thereon was fully converted into 325,000 shares of the Company’s common stock. Borrowed $27,500 pursuant to an 8% convertible note due February 2, 2016. This note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). Borrowed $50,000 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). $6,100 of this note plus accrued interest thereon was converted into 201,121 shares of the Company’s common stock. Borrowed $22,500 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). Borrowed $27,250 pursuant to an 8% convertible note due March 16, 2016. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

Sold to an accredited investor a convertible two notes in the aggregate amount of $71,000. The notes are nine-month notes and bear 8% interest. The notes are convertible at the note holder’s option at the lower of (i) the price per share at which the Company sells or issues any shares of common, subject to certain exceptions, or (ii) 58% multiplied by the average of the lowest three lowest closing bid price for the common stock during the ten trading day period ending one trading day prior to the date of submission of the conversion notice.

Borrowed $30,000 pursuant to two, 8% convertible notes both due 4/14/16. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

Borrowed $25,000 pursuant to an 8% note due 4/22/16. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).  In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full.

Notes convertible at the Company’s option consist of:

A $15,000, 10% note due 4/22/16. The note is convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company issued the Noteholder 37,500 shares of its restricted common stock as an inducement for the loan. If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.

Notes with interest only convertible at Company’s option consist of:

A 22% note for $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

A $25,000 note due May 1, 2011, which was extended to October 31, 2013 with interest convertible at the Company’s option at $1.50 per share. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share.

A $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period . Issued this noteholder 115,181 shares of common stock to this note holder with another 131,504 shares to be issued at April 30, 2015 upon the conversion of $36,586 of accrued interest.

A $25,000 10% note due February 2, 2016, the Company issued the note holder 110,000 shares of its common stock in connection with this loan. Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.15 per share; and a

 A $15,000 5% note due May 31, 2015 with interest convertible at the Company’s option at $0.58 per share, the Company issued the note holder 5,000 shares of its common stock in connection with this loan. 

18

Non-convertible notes consist of:

A $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid;

A $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 106,700 share of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 1015 to September 18, 2015;

 A $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

A $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331shares of restricted common stock as inducement for the loan; and

A $33,500, 10% note due April 30, 2016.  Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid.

ITEM 6.                 SELECTED FINANCIAL DATA

Not applicable.

ITEM 7.                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

"FORWARD-LOOKING" INFORMATION

This report on Form 10-K contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which represent our expectations and beliefs, including, but not limited to, statements concerning the Company's business and financial plans and prospects. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements, which speak only as of the date such statement was made. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors.

The following discussion and analysis should be read in conjunction with the information set forth in the audited  financial statements for the years ended April 30, 2015 and April 30, 2014 and footnotes found in the Company's Annual Report on Form 10-K.

Discontinued Operations

As discussed in NOTE C to the consolidated financial statements, in August 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented.

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Fiscal Year Ended
	April 30,			April 30,
	2015			2014
Revenues	$	41,714		$	122,373
Net loss	$	(246,537	)	$	(280,441	)

19

RESULTS OF OPERATIONS

For the year ended April 30, 2015, our revenues from continuing operations increased approximately 27%. We have continued to incur significant expenses, and have sustained significant losses.

Revenues-Continuing Operations

Revenues totaled $604,842 in fiscal 2015 compared to revenues of $476,022 in fiscal 2014. Other income in fiscal 2015 was $22,182 compared with $77,190 in fiscal 2014. Revenues from continuing operations in both fiscal years were from the sale of vehicle history reports, mobile apps and monthly mobile app service fees. Other income in both fiscal years was comprised primarily of Municipal Lease Fee income and interest income from subscriptions receivable.

Costs and Expenses-Continuing Operations

We incurred employee compensation and benefit costs of $1,426,292 for the year ended April 30, 2015 compared with $889,933 in fiscal 2014. The increase is primarily related to reduction in allocation of executive salaries to discontinued operations and the corresponding increase in general and administrative expenses as well as an increased sales staff.

In connection with placement transactions, we expensed non-cash costs in the form of shares of common stock or warrants of $181,994 and $113,260 for the years ended April 30, 2015 and 2014, respectively. Additionally, we incurred legal and due diligence fees with respect to placement transactions of $127,550 and $107,110 for the years ended April 30, 2015 and 2014, respectively. These amounts were charged to financing costs. In connection with consulting services, we expensed non-cash costs in the form of shares of common stock or warrants of $375,973 and $361,794 for the years ended April 30, 2015 and 2014, respectively.   Additionally, during the fiscal year ended April 30, 2015, we expensed $63,149 as the value of employee stock and option based compensation as compared to $11,208 in the prior fiscal year. During the year ended April 30, 2015, we recorded a charge of $1,013,934 amortization of debt discounts for convertible notes to financing costs as compared to a charge of $417,290 in fiscal 2014. Additionally, we recognized a net increase of the derivative liability of warrants and share conversion rights in the amount of $318,372 in fiscal 2015 as compared to an increase of $166,932 in fiscal 2014. At April 30, 2015 and 2014, accrued preferred dividends of $758 and $157,758, respectively, were charged to retained earnings.

We incurred legal and accounting fees of $390,417for the year ended April 30, 2015, as compared to $259,260 for the year ended April 30, 2014.

We incurred other operating expenses of $561,890 for the year ended April 30, 2015.  Expenses in this category were: general office expenses of $205,225; rent of $185,213; travel and entertainment of $32,693; utilities of $32,832; advertising, marketing and website expenses of $54,699; loss reserve expenses for discontinued operations of $40,650; and taxes of $10,578.   

We incurred other operating expenses of $487,864 for the year ended April 30, 2014.  Expenses in this category were: general office expenses of $210,456; rent of $114,191; travel and entertainment of $37,981; utilities of $23,956; advertising, marketing and website expenses of $84,779; and taxes of $16,501.   

Interest and financing costs for the fiscal year ended April 30, 2015 were $499,618 as compared to $337,688 for the fiscal year ended April 30, 2014. Depreciation and amortization for the fiscal year ended April 30, 2015 was $3,848 as compared to $4,572 for the fiscal year ended April 30, 2014.

Net Loss-Continuing Operations

Revenues increased $128,820 (27.06%) from $476,022 to $604,842, and cost of goods sold increased $37,152 (23.97%) from $154,961 to $192,113, resulting in a $91,670 (28.55%) increase in gross profit. General and administrative expenses increased $867,918 (38.74%)  to $3,108,073; Interest expense and financing costs increased $161,930 (47.95%) to $499,618; non cash financing costs increased $68,734 (60.69%) to $181,994; the amortization of debt discount increased $596,643 (142.98%) from $417,291 to $1,013,934; and the changes in the fair value of derivative liabilities increased $151,440 (90.72%) from $166,932 to $318,372. Our net loss from continuing operations for the year ended April 30, 2015 increased $1,809,281 (62.797%) to $4,690,926 from a loss of $2,881,646 for the year ended April 30, 2014. The increase in net loss from operations was primarily due to the $867,918 (38.74%) increase in general and administrative expenses, the $55,008 (71.26%) decline in other income, the $161,930 (47.95%) increase in interest expense and financing costs, the 68,734 (60.69%) increase in non-cash financing costs, the increases in GAAP accounting for amortization of debt discount of $596,643 (142.98%) and increase in the charges for derivative liabilities of $151,440 (90.72%). 

20

Our net loss attributable to common stockholders for the year ended April 30, 2015 increased $1,655,500 (50.69%) to $4,921,148 from a loss of $3,265,648 for the year ended April 30, 2014. This increase in net loss attributable to common stockholders for the year ended April 30, 2015 was primarily due to the increased costs and expenses discussed above.

Our net loss per common share (basic and diluted) attributable to common stockholders was $0.19 for the year ended April 30, 2015 and $0.19 for the year ended April 30, 2014.

LIQUIDITY AND CAPITAL RESOURCES

As of April 30, 2015, we had a deficit net worth of $5,939,102. We generated a deficit in cash flow from operations of $2,662,903 for the year ended April 30, 2015. This deficit is primarily attributable to net loss attributed to shareholders of $4,921,148 increased by: the non-controlling interest net loss of $17,076,  and reduced by: depreciation and amortization of $3,848; change in fair value of derivative liabilities of $318,372; amortization of debt discount of $1,013,934; equity based compensation of $430,402; stock based financing costs of $181,912; and to changes in the balances of current assets, consisting primarily of an increase in accounts receivable of $10,678; decrease in prepaid expenses and other assets of $45,659; and an increase in deposits of $39,209 and an increase in current liabilities, consisting primarily of an increase in accounts payable of $331,081. We met our cash requirements during the period through net proceeds from the issuances of convertible and other notes of $2,393,770, and we sold common and preferred stock for net proceeds of $978,866, we repaid notes in the amount of $778,000. Cash flows from discontinued operations included cash used by operating activities of $15,766.

While we have raised capital to meet our working capital and financing needs in the past, additional financing is required in order to meet our current and projected cash flow deficits from operations and development.

We continue seeking additional financing which may be in the form of senior debt, subordinated debt or equity.  Other than described above, we currently have no commitments for financing. There is no guarantee that we will be successful in raising the funds required.

We estimate that we will need approximately $1,750,000 in addition to our normal operating cash flow to conduct operations during the next twelve months.  Based on the above, on capital received from equity financing to date, and certain indications of interest to purchase our equity, we believe that we have a reasonable chance to raise sufficient capital resources to meet projected cash flow deficits through the next twelve months.  There can be no assurance that additional private or public financing, including debt or equity financing, will be available as needed, or, if available, on terms favorable to us. Any additional equity financing may be dilutive to stockholders and such additional equity securities may have rights, preferences or privileges that are senior to those of our existing common or preferred stock. Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. However, if we are not successful in generating sufficient liquidity from operations or in raising sufficient capital resources, on terms acceptable to us, this could have a material adverse effect on our business, results of operations, liquidity and financial condition, and we will have to adjust our planned operations and development on a more limited scale.

The effect of inflation on our revenue and operating results was not significant. Our operations are located in North America and there are no seasonal aspects that would have a material effect on our financial condition or results of operations.

AUDITOR'S OPINION EXPRESSES DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A "GOING CONCERN"

The independent auditors report on our April 30, 2015 and 2014 consolidated financial statements included in this Annual Report states that our historical losses and the lack of revenues raise substantial doubts about our ability to continue as a going concern, due to the losses incurred and lack of significant operations. If we are unable to develop our business, we may have to discontinue operations or cease to exist, which would be detrimental to the value of the Company's common stock. We can make no assurances that our business operations will develop and provide us with significant cash to continue operations.

PLAN OF OPERATIONS

Addressing the Going Concern Issues

In order to improve our liquidity, our management is actively pursuing additional equity financing through discussions with investment bankers and private investors.  There can be no assurance that we will be successful in our efforts to secure additional equity financing.

We continue to experience net operating losses. Our ability to continue as a going concern is subject to our ability to develop profitable operations. We are devoting substantially all of our efforts to developing our business and raising capital. Our net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

21

The primary issues management will focus on in the immediate future to address this matter include:

·   seeking institutional investors for equity investments in our company; and

·   initiating negotiations to secure short term financing through promissory notes or other debt instruments on an as needed basis.

To address these issues, we are negotiating the potential sale of securities with investment banking companies to assist us in raising capital.

Product Research and Development

We do not anticipate incurring significant research and development expenditures during the next twelve months.

Acquisition or Disposition of Plant and Equipment

We do not anticipate the acquisition or sale of any significant property, plant or equipment during the next twelve months.

Number of Employees

From our inception through the period ended April 30, 2015, we have relied on the services of outside consultants for services and currently have twelve full-time employees.  In order for us to attract and retain quality personnel, we anticipate we will have to offer competitive salaries to future employees. If we fully implement our business plan, we anticipate our employment base may increase by at least 100% during the next twelve months. As we continue to expand, we will incur additional cost for personnel. This projected increase in personnel is dependent upon our generating revenues and obtaining sources of financing. There is no guarantee that we will be successful in raising the funds required or generating revenues sufficient to fund the projected increase in the number of employees. 

Inflation

The impact of inflation on our costs and the ability to pass on cost increases to our customers over time is dependent upon market conditions. We are not aware of any inflationary pressures that have had any significant impact on our operations over the past year, and we do not anticipate that inflationary factors will have a significant impact on future operations.

CRITICAL ACCOUNTING POLICIES

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and on various other assumptions, we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policy involves the most complex, difficult and subjective estimates and judgments.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized on a cash basis. Revenues from History Reports are recognized on both a cash basis and a deferral basis depending on the nature of the transaction

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

22

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value.

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Stock-Based Compensation

The Company adopted Financial Accounting Standards Board Accounting Standard Codification Topic 718 (“ASC 718-10”), which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations.  The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards.  The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables.  These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

RECENT ACCOUNTING PRONOUNCEMENTS

For information regarding recent accounting pronouncements and their effect on the Company, see “Recent Accounting Pronouncements” in Note A of the Notes to Consolidated Financial Statements contained herein.

Off-Balance Sheet Arrangements

We do not maintain off-balance sheet arrangements nor do we participate in non-exchange traded contracts requiring fair value accounting treatment.

ITEM 7A.             QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

23

ITEM 8.                FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

	Page
Report of Independent Registered Public Accounting Firm	25
Consolidated Balance Sheets as of April 30, 2015 and 2014	26
Consolidated Statements of Losses for the years ended April 30, 2015 and 2014	27
Consolidated Statement of Deficit for the two years ended April 30, 2015	28
Consolidated Statements of Cash Flows for the years ended April 30, 2015 and 2014	29
Notes to Consolidated Financial Statements	30 - 49

24

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

Sparta Commercial Services, Inc.

New York, New York

We have audited the accompanying consolidated balance sheets of Sparta Commercial Services, Inc. and subsidiary, as of April 30, 2015 and 2014, and the related consolidated statements of losses, deficit and cash flows for each of the two years in the period ended April 30, 2015. These consolidated financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on the consolidated financial statements based upon our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Sparta Commercial Services, Inc. at April 30, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the two years in the period ended April 30, 2015, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming the company will continue as a going concern. As discussed in the Note N to the accompanying consolidated financial statements, the company has suffered recurring losses from operations that raises substantial doubt about the company's ability to continue as a going concern. Management's plans concerning these matters are also described in Note N. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ R B S M LLP

New York, New York

August 13, 2015

25

SPARTA COMMERCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

	As of
	April 30, 2015			April 30, 2014
ASSETS
Current Assets
Cash and cash equivalents	$	14,034		$	70,456
Accounts receivable		10			182,343
Other current assets		5,706			51,364
Total Current Assets		19,750			304,163
Property and equipment, net of accumulated depreciation and amortization of $203,215 and  $199,367, respectively (NOTE B)		10,047			9,974
Goodwill		10,000			10,000
Other assets		9,628			9,628
Deposits		79,776			40,568
Total Long Term Assets		109,451			70,170
Total assets from continuing operations		129,201			374,333
ASSETS FROM DISCONTINUED OPERATIONS (NOTE C)		13,955			90,024
Total assets	$	143,156		$	464,357
LIABILITIES AND DEFICIT
Liabilities:
Current Liabilities
Accounts payable and accrued expenses	$	1,382,598		$	1,259,368
Current portion notes payable net of beneficial conversion feature of $762,426 and $296,384,  respectively (NOTE D)		1,374,786			821,511
Derivative liabilities		1,605,535			601,000
Total Current Liabilities		4,362,919			2,681,879
Long term portion of notes payable		1,263,369			1,198,368
Loans payable-related parties (NOTE E)		385,853			385,853
Total Long Term Liabilities		1,649,222			1,584,221
Total liabilities from continuing operations		6,012,141			4,266,100
LIABILITIES FROM DISCONTINUED OPERATIONS (NOTE C)		70,117			130,420
Total liabilities		6,082,258			4,396,520
Deficit:
Preferred stock, $0.001 par value; 10,000,000 shares authorized of which 35,850 shares have been designated as Series A convertible preferred stock, with a stated value of $100 per share, 125 and 125 shares issued and outstanding, respectively		12,500			12,500
Preferred stock B, 1,000 shares have been designated as Series B redeemable preferred stock, $0.001 par value, with a liquidation and redemption value of $10,000 per share, 0 and 157 shares issued and outstanding, respectively		-			1,570
Preferred stock C, 200,000 shares have been designated as Series C redeemable, convertible preferred, $0.001 par value, with a liquidation and redemption value of $10 per share, 0 and 0 shares issued and outstanding, respectively		-			-
Common stock, $0.001 par value; 750,000,000 shares authorized, 43,238,320 and 20,987,353 shares issued and outstanding, respectively		43,238			20,987
Common stock to be issued 2,356,598 and 283,777, respectively		2,356			284
Preferred stock B to be issued, 0 and 72.48 shares, respectively		-			72
Additional paid-in-capital		42,528,909			41,738,613
Subscriptions receivable		-			(2,118,309	)
Accumulated deficit		(49,178,453	)		(44,257,306	)
Total deficiency in stockholders' equity		(6,591,450	)		(4,601,588	)
Noncontrolling interest		652,348			669,424
Total Deficit		(5,939,102	)		(3,932,164	)
Total Liabilities and Deficit	$	143,156		$	464,357

See accompanying notes to consolidated financial statements. 

26

SPARTA COMMERCIAL SERVICES, INC.

CONSOLIDATED STATEMENT OF LOSSES

	Year Ended
	April 30,
	2015			2014
Revenue
Information technology	$	604,842		$	476,022
Cost of goods sold		192,112			154,961
Gross profit		412,730			321,061
Operating expenses:
General and administrative		3,108,073			2,240,154
Depreciation and amortization		3,848			4,572
Total operating expenses		3,111,921			2,244,726
Loss from operations		(2,699,191	)		(1,923,665	)
Other (income) expense:
Other income		(22,182	)		(77,190	)
Interest expense and financing cost, net		499,618			337,688
Non-cash financing costs		181,994			113,260
Amortization of debt discount		1,013,934			417,291
(Gain) loss in changes in fair value of derivative liability		318,372			166,932
Total other expense		1,991,736			957,981
Net loss from continuing operations		(4,690,926	)		(2,881,646	)
Net loss from discontinued operations		(246,537	)		(280,441	)
Net Loss		(4,937,464	)		(3,162,087	)
Net loss attributed to Noncontrolling interest		17,076			53,767
Preferred dividend		(758	)		(157,328	)
Net loss attributed to common stockholders	$	(4,921,148	)	$	(3,265,648	)
Basic and diluted loss per share	$	(0.18	)	$	(0.16	)
Basic and diluted loss per share attributed to common stockholders	$	(0.19	)	$	(0.19	)
Weighted average shares outstanding		26,440,126			17,637,942

See accompanying notes to consolidated financial statements.

27

SPARTA COMMERCIAL SERVICES, INC.

CONSOLIDATED STATEMENT OF DEFICIT

FOR THE TWO YEARS ENDED APRIL 30, 2015

	Series A				Series B																Common Stock									Additional
	Preferred Stock				Preferred Stock						Shares to be issued					Common Stock					to be issued						Subscriptions			Paid in			Accumulated			Non-controlling
	Shares		Amount		Shares			Amount			Shares			Amount		Shares			Amount		Shares			Amount			Receivable			Capital			Deficit			Interest			Total
Balance April 30, 2013		125	$	12,500		157		$	1,570			57		$	-		14,131,242		$	14,131		625,340		$	625		$	(2,118,309	)	$	38,483,198		$	(40,991,658	)	$	723,191		$	(3,874,694	)
Correcting																	(40	)		-		(85,826	)		(87	)					12									(75	)
Preferred dividend to be issued												15					-			-		-			-			-			156,554									156,569
Derivative liability reclassification																															518,379									518,379
Sale of common stock																	3,883,899			3,884		(72,201	)		(72	)					1,295,165									1,298,977
Shares issued for financing cost																	158,766			158		16,677			17						113,085									113,260
Shares issued for conversion of notes and interest																	1,886,804			1,887		(205,713	)		(205	)					775,004									776,686
Stock compensation																	926,682			927		5,500			6						386,008									386,941
Employee options expense																															11,208									11,208
Net loss																																		(3,265,648	)		(53,767	)		(3,319,414	)
Balance April 30, 2014		125	$	12,500		157		$	1,570			72		$	-		20,987,353		$	20,987		283,777		$	284		$	(2,118,309	)	$	41,738,613		$	(44,257,305	)	$	669,424		$	(3,932,163	)
Correcting																	345					(430	)		(1	)					-									(1	)
Redemption of preferred B stock						(157	)		(1,570	)		(72	)															2,118,309			(2,309,678	)								(193,011	)
Derivative liability reclassification																															768,174									768,174
Sale of common stock																	9,655,415			9,656		65,249			65						969,145									978,866
Shares issued for financing cost																	1,302,830			1,303		27,069			27						180,582									181,912
Shares issued for conversion of notes, interest and accounts payable																	10,025,638			10,025		1,920,933			1,921						752,996									764,942
Stock compensation																	1,234,959			1,235		60,000			60						351,647									352,942
Employee stock & options expense																	31,780			32											77,428									77,460
Net loss																																		(4,921,148	)		(17,076	)		(4,938,223	)
Balance April 30, 2015		125	$	12,500		-		$	-			0		$	-		43,238,320		$	43,238		2,356,598		$	2,356		$	-		$	42,528,908		$	(49,178,453	)	$	652,348		$	(5,939,102	)

See accompanying notes to consolidated financial statements. 

28

SPARTA COMMERCIAL SERVICES, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

	FY ENDED
	APRIL 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(4,921,148	)	$	(3,265,648	)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments		(1	)		(75	)
Dividend on preferred stock		-			156,569
Loss allocable to non-controlling interest		(17,076	)		(53,767	)
Depreciation and amortization		3,848			4,572
Change in fair value of derivative liabilities		318,372			166,932
Amortization of debt discount		1,013,934			417,291
Equity based finance cost		181,912			113,260
Equity based compensation		430,402			398,149
(Increase) decrease in operating assets:
Accounts receivable		(10,678	)		(28,496	)
Prepaid expenses and other assets		45,659			(3,083	)
Deposits		(39,209	)		-
Increase (decrease) in operating liabilities:
Accounts and accrued expenses		331,081			217,692
Net cash used in operating activities		(2,662,903	)		(1,876,605	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		(3,921	)		-
Net cash (used in) investing activities		(3,921	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from sale of common stock		978,866			1,298,977
Net proceeds from convertible notes		2,298,770			966,433
Net payments on convertible notes		(778,000	)		(309,500	)
Net proceeds from other notes		95,000			65,000
Net payment on other notes		-			(65,000	)
Net payment on related notes		-			(7,407	)
Net cash provided by financing activities		2,594,636			1,948,503
Cash flows from discontinued operations:
Cash provided by (used in) operating activities of discontinued operations		15,766			(39,655	)
Net Cash flow from discontinued operation		15,766			(39,655	)
Net Decrease in cash	$	(56,422	)	$	32,243
Unrestricted cash and cash equivalents, beginning of period	$	70,456			38,213
Unrestricted cash and cash equivalents , end of period	$	14,034		$	70,456
Cash paid for:
Interest	$	109,654		$	11,438
Income taxes	$	1,244		$	5,600
Non cash investing and financing activities ( see: Note M)

See accompanying notes to consolidated financial statements.

29

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows.

Business and Basis of Presentation

Since May 2010, the Company has concentrated its efforts on developing and marketing vehicle history reports, over the internet, and mobile apps for vehicle dealers and other market segments. Historically, the Company had been in the business as an originator and indirect lender for consumer retail installment loans and consumer lease financing for the purchase or lease of new and used motorcycles. These consumer financing products were discontinued during the fiscal year ending April 30, 2013 (see Discontinued Operations).  The Company continues to offer a leasing program, on a pass through basis, for municipalities.  

Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized on a cash basis. Revenues from History Reports are recognized on both a cash basis and a deferral basis depending on the nature of the transaction.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value.

30

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Website Development Costs

The Company recognizes website development costs in accordance with ASC 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website.  Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life.  Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Income Taxes" (“ASC 740-10”).  Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be removed or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions.  As a result of implementing ASC 740-10, there has been no adjustment to the Company’s consolidated financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015.

Fair Value Measurements

The Company adopted ASC 820,” Fair Value Measurements”  (“ASC 820”), establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets.  Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  For some products or in certain market conditions, observable inputs may not always be available.

31

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets”  (“ASC 360-10”), long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.  Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information” (“ASC 280-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2013, the Company has discontinued segment reporting.

Stock Based Compensation

The Company adopted ASC 718-10 “Accounting for Stock Compensation” (“ASC 718-10”) which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations.  The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards.  The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables.  These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the years ended April 30, 2015 and 2014, the Company’s continuing operations incurred advertising costs of $7,519 and $39,519, respectively.

32

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share” for calculating the basic and diluted loss per share.  The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding.  Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.18 and $0.19 for the year ended April 30, 2015, respectively, and $0.16 and $0.19 for the year ended April 30, 2014, respectively. At April 30, 2015 and 2014, 20,081,014 (including 2,356,598 shares to be issued included on the balance sheet) and 6,076,389 (including 283,777 shares to be issued included on the balance sheet)  potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of April 30, 2015, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.  Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”.

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

33

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

NOTE B - PROPERTY AND EQUIPMENT

Major classes of property and equipment at April 30, 2015 and 2014 consist of the followings:

	2015			2014
Computer equipment, software and furniture	$	213,262		$	209,341
Less: accumulated depreciation		(203,215	)		(199,367	)
Net property and equipment	$	10,047		$	9,974

Depreciation expense related to property and equipment was $3,848, and $4,572 for the years ended April 30, 2015 and 2014, respectively.

NOTE C - DISCONTINUED OPERATIONS

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Fiscal Year Ended
	April 30,			April 30,
	2015			2014
Revenues	$	41,714		$	122,373
Net loss	$	(246,537	)	$	(280,441	)

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore no portfolio performance measures were calculated for the year ending April 30, 2015.

ASSETS INCLUDED IN DISCONTINUED OPERATIONS

MOTORCYCLES AND OTHER VEHICLES UNDER OPERATING LEASES

Motorcycles and other vehicles under operating leases at April 30, 2015 and 2014 consist of the following:

	2015			2014
Motorcycles and other vehicles	$	22,086		$	60,686
Less: accumulated depreciation		(13,455	)		(5,016	)
Motorcycles and other vehicles, net of accumulated depreciation		8,631			55,670
Less: estimated reserve for residual values		(2,437	)		(4,252	)
Motorcycles and other vehicles under operating leases, net	$	6,194		$	51,418

At April 30, 2015, motorcycles and other vehicles are being depreciated to their estimated residual values over the lives of their lease contracts. Depreciation expense for vehicles for the years ended April 30, 2015 and 2014 was $28,736 and $29,411, respectively. All of the assets are pledged as collateral for the note described in SECURED NOTES PAYABLE in this Note. These remaining leases are in a run-off mode.

34

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

The following is a schedule by years of minimum future rentals (excluding residual values of $27,460) on non-cancelable operating leases as of April 30, 2015:

Year ending April 30,
2016	$	27,460
2017		-
Total	$	27,460

RETAIL (RISC) LOAN RECEIVABLES

All of the Company’s RISC loan receivables were sold in August 2013.   As of April 30, 2015 and 2014, the Company had RISC Loans receivables of $8,743(representing refinancing of two loans that had previously been sold) and zero, respectively; Interest receivable of $1,265 and $2,180, respectively; and deficiency receivables of $0 and $0, respectively. At April 30, 2015 and 2014, the reserve for doubtful RISC loan receivables was $0 and $1,124, respectively.

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore no portfolio performance measures were calculated for the year endings April 30, 2014 and 2015.

LIABILITIES INCLUDED IN DISCONTINUED OPERATIONS

SECURED NOTES PAYABLE

	2015		2014
Secured, subordinated  individual lender (a)	$	58,037	$	117,508
Secured, subordinated individual lender (b)		12,080		12,912
Total	$	70,117	$	130,420

(a)   The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at April 30, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of April 30, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009, which was extended to August 15, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2013, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock.

At April 30, 2015, the notes payable mature as follows:

Year ended April 30,	Amount
2016	$	70,117
2017		-
Total Due	$	70,117

35

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

NOTE D - NOTES PAYABLE$

Notes Payable	April 30, 2015			April 30, 2014
Notes convertible at holder’s option (a)	$	2,707,080		$	1,901,263
Notes convertible at Company’s option (b)		15,000			-
Notes with interest only convertible at Company’s option (c)		285,000			390,000
Non-convertible notes payable d)		393,500			25,000
Subtotal		3,400,580			2,316,263
Less, Debt discount		(762,426	)		(296,384	)
Total	$	2,638,154		$	2,019,879

(a) Notes convertible at holder’s option consists of:

(i)                            a $1,163,369, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013; 

 (ii)                           (a) a $33,500, 6% note due June 30, 2015, and (b) a $40,000 note due December 23, 2015. The Company has recorded beneficial conversion discounts totaling $85,465 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 4,753,694 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                           seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; 

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes;  

36

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

   (vi)                          (a) $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 2,400,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (vii)                         (a) a $27,500, 5% convertible note due January 28, 2015, (b) a $27,500, 5% convertible note due April 29, 2015 and (c) a $27,500 convertible note due January 28, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $59,437 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (d) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $25,000 8% convertible note due April 27, 2015, (b) a $55,000 8% convertible note due January 26, 2016, and (c) a $57,200 8% convertible note due January 26, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 5,106,571 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           (a) a $33,000, 8% note due August 16, 2015; and (b) a $33,000, 8% note due October 5, 2015. The Company has recorded a beneficial conversion discount of $32,904 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,735,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (x)                            a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

37

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

 (xi)                           a $55,000, 12% note due June 22, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 2,000,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          (a) $55,000 outstanding under a $220,000, 10% note due May 24, 2015 and (b) $55,000 outstanding under the same note due July 27, 2015. The Company has recorded a beneficial conversion discount of $105,364 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (xiii)                         (a) a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,500 outstanding under a $50,000, 8% convertible note due April 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (c) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xiv)                        a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

(xv)                          (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $35,000 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

38

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

(xvi)                            (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,900 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

(xvii)                           (a) a $33,000, 8% note due November 25, 2015; and (b) a $38,000, 8% note due January 17, 2016. The Company has recorded a beneficial conversion discount of $51,414 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 5,650,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

(xviii)                           (a) two $30,000, 8% notes both due 4/14/16. The Company has recorded a beneficial conversion discount of $45,000 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

(xix)                           a $25,000, 8% note due 4/22/16. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,529,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

(b) Notes convertible at the Company’s option consist of:

(i)                            a $15,000, 10% note due 4/22/16. The note is convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company issued the Noteholder 37,500 shares of its restricted common stock as an inducement for the loan. If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                              a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share;

39

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

 (iii)                       a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period;

 (iv)                          a $25,000 10% note due February 2, 2016, the Company issued the note holder 110,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.15 per share; and

 (v)                       a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan.

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015;

 (iii)                        a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (iv)                        a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016;

  (v)                        a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan; and

 (vi)                        a $33,500, 10% note due April 30, 2015. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid.

Amortization of Beneficial Conversion Feature for the fiscal years ended April 30, 2015 and 2014 was $1,013,934 and $417,291, respectively.

The Company's derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), because of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

40

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

The change in fair value of the derivative liabilities of warrants outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.09%  to 1.32%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0.59 years to 4.51 years

The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.001% to 0.24%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0. years to 1 year

The value of the derivative liability was re-assessed as of April 30, 2015 resulting in a loss to the consolidated statement of operations of $318,372 for the year ended April 30, 2015.

	April 30, 2015
Opening balance	$	601,000
Derivative liability reclassified to additional paid in capital		768,174
Derivative financial liability arising on the issue of convertible notes		554,733
Fair value adjustments		(318,372	)
Closing balance	$	1,605,535

NOTE E - LOANS PAYABLE TO RELATED PARTIES

The Company has outstanding, non-interest bearing notes totaling $372,093 to a Director and $13,760 to an officer and Director as of April 30, 2015.

NOTE F - EQUITY INSTRUMENTS

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share, 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value per share, and 200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value and 750,000,000 shares of common stock with $0.001 par value per share.  The Company had 125 and 125 shares of Series A preferred stock issued and outstanding as of April 30, 2015 and 2014, respectively.  The Company had 0 and 157 shares of Series B preferred stock issued and outstanding as of April 30, 2015 and 2014 and 0 and 72.45 shares to be issued in lieu of cash dividends on the Series B preferred stock shares, respectively.  The Company had 0 and 0 shares of Series C preferred stock issued and outstanding as of April 30, 2015 and 2014, respectively.  The Company had 43,238,320 and 20,987,353 shares of common stock issued and outstanding and shares committed to be issued of 4,609,828 and 283,777 as of April 30, 2015 and 2014, respectively.

Preferred Stock Series A.

The Series A preferred stock has a stated value of $100 per share, carries a 6% annual cumulative dividend, payable semi-annually in arrears, and is convertible into shares of common stock at the rate of one preferred share into 8.55 shares of common stock.  There were no transactions of the Series A Preferred Stock during the year ended April 30, 2015.

41

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Preferred Stock Series B

On July 24, 2009, the Company designated 1,000 shares as Series B Preferred Stock.  The Series B Preferred Stock, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank senior to the Company’s common stock and any other class or series of preferred stock, and junior to all of the Company’s existing and future indebtedness.  The Series B Preferred Stock accrues dividends at an annual rate of 10%.  Accrued dividends are payable upon redemption of the Series B Preferred Stock.  The Company’s common stock may not be redeemed while shares of Series B Preferred Stock are outstanding.  The Series B Preferred Stock certificate of designations provides that, without the approval of a majority of the shares of Series B Preferred Stock, the Company cannot authorize or create any class of stock ranking as to distribution of assets upon a liquidation senior to or otherwise pari passu with the Series B Preferred Stock, liquidate, dissolve or wind-up the Company’s business and affairs, or effect certain fundamental corporate transactions, or otherwise alter or change adversely the powers, preferences or rights given to the Series B Preferred Stock.  The Series B Preferred Stock have a liquidation preference per share equal to the original price per share thereof plus all accrued dividends thereon upon liquidation, including upon consummation of certain fundamental corporate transactions, dissolution, or winding up of the Company’s business.  The shares of Series B Preferred Stock are redeemable at the Company’s option on or after the fifth anniversary of the date of its issuance.  During the year ended April 30, 2015, pursuant to the terms of the Series B Preferred Stock, the Company redeemed and returned to treasury all shares of Series B Preferred Stock and all shares of to be issued Series B Preferred Stock by exchanging the shares for $2,118,309 of note subscription receivables and $193,011 of interest receivable thereon. Subsequent to this redemption, there were no shares of Series B Preferred Stock outstanding and there were no shares of Series B Preferred Stock payable.

Preferred Stock Series C

In November 2009, the Company authorized a new series of 200,000 shares of preferred stock designated as Series C Convertible Preferred Stock, each share having a par value of $0.001 per share.  The Series C Preferred Stock shall, upon liquidation, winding-up or dissolution, rank: (a) senior to the Company's common stock and any other class or series of preferred stock of the Company which by their terms are junior to the Series C Preferred Stock (collectively, together with any warrants, rights, calls or options exercisable for or convertible into such Preferred Stock, the “Junior Shares”); (b) junior to all existing and future indebtedness of the Company; and (c) junior to the Company's Series A and Series B Preferred Stock.  The Series C Preferred Stock is not entitled to receive any dividends, has a liquidation value of $10.00 per share, redeemable at the Company’s option at $10.00 per share, and is convertible at the option of the holder into shares of common stock as follows: the number of such shares of common stock to be received for each share of Series C Preferred Stock so converted shall be determined by (A) dividing the number of shares of Series C Preferred Stock to be converted by the weighted average closing price per share of the Company's common stock for the ten (10) trading days immediately preceding the date on which the Company agrees to issue shares of Series C Preferred Stock to such holder multiplied by (B) the Series C liquidation value. There were zero and zero shares issued and outstanding at April 30, 2015 and 2014, respectively.

Common Stock

During the fiscal years ended April 30, 2015 and 2014, the Company expensed $430,402 and $398,149, respectively, for non-cash charges related to stock and option compensation expense.

During the fiscal year ended April 30, 2015, the Company:

●  sold 9,655,415 shares of common stock to eighteen accredited investors for $978,866,

●  issued 9,487,478 shares of common stock upon the conversion of convertible notes and accrued interest in the amount of $684,788, of which 122,451 shares were classified as to be issued at April 30, 2014 and 1,963,350 shares remained to be issued at April 30, 2015,

●  issued 1,353,830 shares of common stock with 51,000 shares of common stock to be issued at April 30, 2015 valued at $181,912 pursuant to terms of various notes of which 24,809 shares were classified as to be issued at April 30, 2014,

● issued 1,234,959 shares of common stock valued at $352,942 pursuant to consulting agreements, of which 60,000 shares remained to be issued,

● issued 538,160 shares of common stock in payment of $80,154 in accounts payable of which 20,000 shares were classified as to be issued at April 30, 2014, and 100,000 were classified as to be issued at April 30, 2015.

● issued 31,780 shares of common stock valued at $77,460 to three employees in exchange for their outstanding stock purchase options.

42

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

NOTE G – NON-CONTROLLING INTEREST

For the fiscal years ended April 30, 2015 and 2014, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2013	$	723,191
Noncontrolling interest’s share of losses		(53,767	)
Balance at April 30, 2014	$	669,424
Noncontrolling interest’s share of losses		(17,076	)
Balance at April 30, 2015	$	652,348

NOTE H – FAIR VALUE MEASUREMENTS

The Company follows the guidance established pursuant to ASC 820, which established a framework for measuring fair value, and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of our financial liabilities that are required to be carried on a recurring basis as of April 30, 2015:

	Fair Value at		Fair Value Measurement Using
	April 30,
	2015		Level 1		Level 2		Level 3
Derivative liability	$	1,605,535		-		-	$	1,605,535
Derivative liability	$	1,605,535		-		-	$	1,605,535

The following is a description of the valuation methodologies used for these items:

Derivative liability — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models, which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life.

NOTE I - INCOME TAXES

At April 30, 2015 and 2014, the Company has available for federal income tax purposes a net operating loss carry forward of approximately $36,891,436 and $32,060,454, respectively, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that, the benefits will not be realized. Also, due to change in the control after reverse acquisition of Sparta Commercial Services, Inc., the Company's past accumulated losses to be carried forward may be limited.

43

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Components of deferred tax assets as of April 30, 2015 and 2014 are as follows:

	April 30,
	2015			2014
Noncurrent:
Net operating loss carry forward	$	10,329,233		$	8,976,606
Valuation allowance		(10,329,233	)		(8,976,606	)
Net deferred tax asset	$	-		$	-

The valuation allowance and increased by $1,352,627 and $908,514 during the years ended April 30, 2015 and 2014, respectively.

NOTE J - STOCK OPTIONS AND WARRANTS

Options:

On April 29, 2005, the Company issued to the Chief Operating Officer non-qualified stock options to purchase 11,667 shares of the Company's common stock, subject to vesting conditions, at an exercise price of $45.375 per share. The options have a five-year life from vesting. All of these options have expired.

During the year ended April 30, 2007, the Company granted options to purchase an aggregate of 57,334 shares of common stock to one employee and one Director.  53,334 of the options are exercisable at a price of $14.355 per share and 4,000 are exercisable at $9.00 per share. At grant date, 13,334 options vested immediately. The vested and unvested options were initially valued at $636,433 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 131%; (3) risk-free interest rate of 5.04% and 5.24%, vest over a 36-month period and expire if unexercised in five years. 41,334 of these options have expired.

During the year ended April 30, 2008, the Company granted options to purchase an aggregate of 15,600 shares of common stock to thirteen employees exercisable at $7.50 per share. Because of separation from employment, 11,600 unexercised options were cancelled. The remaining vested and unvested options had an initial value of $23,019 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 143%; (3) risk-free interest rate of 4.76%, vest over a 48-month period and expire if unexercised in ten years.

During the year ended April 30, 2011, the Company issued stock options, exercisable at $1.875 per share until May 12, 2015, subject to vesting at the rate of 20% on the grant date, 40% on May 12, 2012, and 40% on May 12, 2014, to the following officers and directors:  Anthony Havens, 88,967 options; Kristian Srb, 32,867 options; Richard Trotter, 53,550 options; Jeffrey Bean, 12,750 options; Anthony Adler, 53,267 options; and Sandra Ahman, 41,934 options.  The vested and unvested options were initially valued at $409,790 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 271; (3) risk-free interest rate of 0.89%, vest over a 36-month period and expire if unexercised in five years.  $163,322 of the remaining initial value were charged to expense in fiscal year end 2013.

During the year ended April 30, 2011, the Company issued to four employees under the Company’s 2005 Stock Incentive Compensation Plan options to purchase a total of 28,667 shares of common stock at $1.65 per share until December 1, 2018, subject to vesting at the rate of 40% on the grant date, 20% on December 1, 2011, 20% on December 1, 2014 and 20% on December 1, 2015. As of April 30, 2011, the vested and unvested options were initially valued at $42,961 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 250; (3) risk-free interest rate of 2.33%, vest over a 48-month period and expire if unexercised in ten years.   $6,444 and $8,592 of the initial value were charged to expense in fiscal year end 2014 and 2013, respectively.

During the year ended April 30, 2012, the Company issued to two directors, 13,334, five year options each. The options are exercisable at $0.60 per share and have been valued at $5,955 each using the Black-Scholes option pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 227%; (3) risk-free interest rate of 0.41%, vest over a 36-month period and expire if unexercised in five years. The Company charged $4,764 and $4,170 to expenses for the fiscal years ended 2014 and 2013, respectively.

During the fiscal year ended April 30, 2015, four employees agreed to exchange 3,999 options exercisable at $7.50 per share and 28,667 options exercisable at $ 1.65 per share for 113,338 shares of the Company’s common stock, valued at $77,460. The shares will vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016.  Only 31,780 shares of the initial 37,780 shares were issued during the year ended April 30, 2015. The shares were authorized/issued from the 2005 Stock Incentive Compensation Plan.

44

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price on the 327,335 options held by the Company’ s officers and directors was reduced to $0.50 per share from exercise prices ranging from $0.60 to $14.355, and the expiration dates were extended by two years. The $63,149 valuation of this action was fully expensed during the year.

No options were granted during the fiscal year ended April 30, 2015.

The following table summarizes common stock options issued to officers, directors and employees outstanding and the related exercise price.

Options Outstanding						Options Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
	327,335		2.22	$	0.50		327,335	$	0.50

Transactions involving stock options issued to officers, directors and employees are summarized as follows:

	Number of Shares			Weighted Average Price Per Share
Outstanding at April 30, 2013		379,667		$	3.20
Granted		-			-
Exercised		-			-
Canceled or expired		(19,666	)		(20.05	)
Outstanding at April 30, 2014		360,001		$	2.41
Granted		-			-
Exercised		(32,666	)		(2.37	)
Canceled or expired		-			-
Outstanding at April 30, 2015		327,335		$	0.50

No options were granted during the fiscal years ended April 30, 2015 and 2014.

Warrants:

No warrants were granted during the year ended April 30, 2014.

During the year ended April 30, 2015, the Company issued two warrants to purchase an aggregate of 190,000 shares of common stock to a consultant. The warrant to purchase 150,000 shares were initially valued at $30,918 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 0.95%, and (4) expected life of 3 years. The warrant to purchase 40,000 shares were initially valued at $7, 707 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 1.62%, and (4) expected life of 5 years. The warrants have exercise prices of $0.40 and $0.80 respectively, and are fully vested.

The Company adopted SFAS No. 123(R) during third quarter of Fiscal year 2006, which no longer permits the use of the intrinsic value method under APB No. 25. The Company uses the modified prospective method to adopt SFAS No. 123(R), which requires compensation expense to be recorded for all stock-based compensation granted on or after January 1, 2006, as well the unvested portion of previously granted options. The Company is recording the compensation expense on a straight-line basis, generally over the explicit service period of three years. The Company made no stock-based compensation grants prior to the adoption of Statement 123(R) and therefore has no unrecognized stock compensation related liabilities or expense unvested or vested prior to 2006.

45

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company.

		Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.275		25,938		.86	$	1.275		25,938	$	1.275
$	0.8475		123,145		1.15	$	0.8475		123,145	$	0.8475
$	0.80		20,000		2.67	$	0.80		20,000	$	0.80
$	0.75		21,680		1.30	$	0.75		21,680	$	0.75
$	0.65		40,000		5	$	0.65		40,000	$	0.65
$	0.60		40,000		2.16	$	0.60		40,000	$	0.60
$	0.40		150,000		2	$	0.40		150,000	$	0.40
			420,763		1.02	$	0.66		420,763	$	0.66

Transactions involving stock warrants issued to non-employees are summarized as follows:

	Number of Shares			Weighted Average Exercise Price Per Share
Outstanding at April 30, 2013		439,196		$	1.27
Granted		-			-
Exercised		-			-
Canceled or expired		(41,311	)		(5.40	)
Outstanding at April 30, 2014		397,885			1.99
Granted		190,000			0.45
Exercised		(167,122	)		(0.8475	)
Canceled or expired		-			-
Outstanding at April 30, 2015		420,763		$	0.66

No non-employee warrants were granted during the year ended April 30, 2014.The weighted-average fair value of stock warrants granted to non-employees during the year ended April 30, 2015 was $0.20, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option-pricing model are as follows:

	2015		2014
Significant assumptions (weighted-average):
Risk-free interest rate at grant date		1.09%		-
Expected stock price volatility		140%		-
Expected dividend payout		-		-
Expected option life-years	3.42		-

The amount of the initial expenses charged to operations for compensatory warrants granted in exchange for services was $38,625 for the year ended April 30, 2015.

The Company's derivative financial instruments consist of embedded derivatives related to the short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

46

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

NOTE K - COMMITMENTS AND CONTINGENCIES

Operating Lease Commitments

Our executive offices are located at 370 Lexington Avenue, Suite 1806, New York, NY 10017. We have an agreement for use of office space at this location under a sub-lease expiring on June 29, 2015. The office space contains approximately 2,800 square feet.    For the year ended April 30, 2015, the rent was $185,213. For the year ending April 30, 2016, the rent is $229,830 and for the remaining two months of our sub-lease ending June 30, 2016 the rent is $38,305.

Employment and Consulting Agreements

The Company does not have employment agreements with any of its non-executive employees.

The Company has consulting agreements with outside contractors to provide marketing and financial advisory services. The agreements are generally for a term of 12 months from inception and renewable automatically from year to year unless either the Company or consultant terminates such engagement by written notice.

The Company entered into an employment agreement, dated as of July 12, 2004, with Anthony L. Havens, our Chief Executive Officer. The employment is for a term of five years. The employment term is to be automatically extended for one five-year period, and additional one-year periods, unless written notice is given three months prior to the expiration of any such term that the term will not be extended. The agreement was automatically extended for one year on July 12, 2015.  He is entitled to six weeks of paid vacation per year, and health insurance, short-term and long-term disability insurance, retirement benefits, fringe benefits, and other employee benefits on the same basis as is generally made available to other senior executives. He did not receive any equity compensation as part of this agreement.

Litigation

As at April 30, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion is currently scheduled to be heard in September 2015. The Company is currently considering an appeal of the Court's decision on the Company's claims.

47

SPARTA COMMERCIAL SERVICES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2015 AND 2014

NOTE L - NON-CASH FINANCIAL INFORMATION

Subsequent to April 30, 2015 the Company:

During the year ended April 30, 2015, the Company:

· Issued 167,260 shares of common stock that were classified as to be issued at April 30, 2014.

· Issued 1,353,830 shares of common stock (of which, 51,000 shares remained to be issued at April 30, 2015) valued at $181,912 pursuant to the terms of various notes.

· Derivative liability reclassification of $768,174.

· Issued 9,883,187 shares of common stock (of which 2,063,350 shares remained to be issued at April 30, 2015) for conversion of notes, interest, and accounts payable of $764,942.

During the year ended April 30, 2014, the Company:

· Issued 567,240 shares of common stock that were classified as to be issued at April 30, 2013.

· Issued 158,766 shares of common stock valued at $113, 260 pursuant to the terms of various notes.

· Derivative liability reclassification of $518,379.

· Issued 1,888,804 shares for conversion of notes, interest, and accounts payable of $776,686. 

· Issued 20,000 shares of common stock, valued at $6,200, to a note holder as inducement.

NOTE M - SUBSEQUENT EVENTS

Subsequent to April 30, 2015 the Company:

·   Sold 760,456 shares of restricted common stock to an accredited investor for $20,000.

·   Issued 391,059 shares of restricted common stock valued at $11,078 to two six-note holders pursuant to the terms of their notes.

·   Issued 2,846,000 shares of restricted common stock valued at $82,080 to two consultants.

·   Issued 2,024,371 shares restricted common stock that had been classified as to be issued at April 30, 2015.

·   Issued 340,000 shares of common stock in partial settlement of $14,500 of accounts payable.

·   Issued 22,049,916 shares of common stock to ten note holders upon conversion of $374,152 of notes payable.

·   Issued 35,056 shares of common stock to three employees pursuant to vesting terms of prior stock grant awards.

·   Repaid $173,000 of convertible notes.

·   Borrowed a $33,000, 8% note due February 21, 2016 and a $38,000 8% note due April 17, 2016. Both notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full.

·   Borrowed a $55,000, 8% note due April 30, 2016 and a $100,000 8% note due April 30, 2016. Both notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest trading price for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the note is paid in full.

·   Borrowed a $55,000 8% convertible note due May 27, 2016, and a $58,000 8% convertible note due July 8, 2016 of which $25,000 was due to be paid July 29, 2015.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full.

·   Borrowed a $31,900 10% convertible note due July 28, 2016. The note is convertible at a 42% discount from the lowest closing price for the twenty trading days prior to conversion. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full.

48

·   Borrowed $27,500, (the initial tranche of a $165,000 5% convertible note) due June 15, 2016. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company.

·   Borrowed a $22,500, 8% convertible note due July 19, 2016. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the notes are paid in full.

·   Borrowed a $50,000, 8% convertible note due June 2, 2016. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the notes are paid in full.

·   Borrowed from four accredited investors, four one-year notes at 10% interest as follows: $25,000 due June 29, 2016, $10,000 due June 29, 2016, $5,000 due July 20, 2016, and $21,000 due July 22, 2016. As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note. The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion.

·   Borrowed from three accredited investors, nine one-year notes at 10% interest as follows: $50,000 due May 5, 2016, $32,000 due May 13, 2016, $50,000 due May 18, 2016, $20,000 due May 28, 2016, $25,000 due May 29, 2016, $50,000 due June 24, 2016, $22,500 due July 8, 2016, $20,000 due July 14, 2016, and $25,000 Due July 31, 2016. As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note.

NOTE N - GOING CONCERN MATTERS

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements during the period October 1, 2001 (date of inception) through April 30, 2015, the Company has incurred a cumulative net loss of $49,178,453. During the year ended April 30, 2015, the Company incurred a net loss of $4,921,148.  As of April 30, 2015, the Company had a deficit net worth of $5,939,102. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

The Company's existence is dependent upon management's ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company's efforts will be successful. While, the planned principal operations have commenced, no assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

In order to improve the Company's liquidity, the Company's management is actively pursuing additional equity financing through discussions with investment bankers and private investors. There can be no assurance the Company will be successful in its effort to secure additional equity financing.

49

ITEM 9.                CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 9A.             CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Exchange Act that are designed to ensure 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 the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures as of April 30, 2015.  Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls, the Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were not effective.

Management Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) of the Exchange Act.  Under the supervision and with the participation of our Chief Executive Officer and Principal Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of April 30, 2015 using the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.  In our assessment of the effectiveness of internal control over financial reporting as of April 30, 2015, we determined that control deficiencies existed that constituted material weaknesses, as described below: 

● lack of documented policies and procedures;

● we have no audit committee;

● there is a risk of management override given that our officers have a high degree of involvement in our day-to-day operations.

● there is no effective separation of duties, which includes monitoring controls, between the members of management.

Management is currently evaluating what steps can be taken in order to address these material weaknesses. 

Accordingly, we concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by our internal controls. 

As a result of the material weaknesses described above, management has concluded that we did not maintain effective internal control over financial reporting as of April 30, 2015 based on criteria established in Internal Control—Integrated Framework issued by COSO. 

RBSM LLP, an independent registered public accounting firm, was not required to and has not issued a report concerning the effectiveness of our internal control over financial reporting as of April 30, 2015.

Changes in Internal Controls

During the fiscal year ended April 30, 2015, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B.             OTHER INFORMATION

Not applicable.

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PART III

ITEM 10.             DIRECTORS, EXECUTIVE OFFICERS AND CORPORATION GOVERNANCE

Our Management

The following table sets forth our executive officers and directors and their respective ages and positions as of August 1, 2015.

Name	Age	Position
Anthony L. Havens	61	Chief Executive Officer, President, and Chairman
Kristian Srb	60	Director
Jeffrey Bean	62	Director
Anthony W. Adler	75	Executive Vice President and Principal Financial Officer
Richard P. Trotter	72	Chief Operating Officer
Sandra L. Ahman	52	Vice President, Secretary and Director

Management Profiles

Anthony L. Havens, Chief Executive Officer, President, and Chairman. On February 27, 2004, Mr. Havens became our Chief Executive Officer, President and Chairman of the Board. Mr. Havens served as acting Chief Financial Officer from July 2005 to September 2006. Mr. Havens served as the Managing Member and Chief Executive Officer of our predecessor entity, Sparta Commercial Services, LLC, since its inception in 2001 until its dissolution in February 2006. He is involved in all aspects of Sparta's operations, including providing strategic direction, and developing sales and marketing strategies. From 1994 to 2004, Mr. Havens was Chief Executive Officer and a director of American Motorcycle Leasing Corp. He co-founded American Motorcycle Leasing Corp. in 1994, and developed its operating platform and leasing program to include a portfolio, which includes both prime and sub-prime customers. Mr. Havens has over 20 years of experience in finance and investment banking.

Kristian Srb, Director. Mr. Srb joined our board of directors in December 2004. Mr. Srb has been a director of American Motorcycle Leasing Corp. from 1994 to the present. Mr. Srb was President of American Motorcycle Leasing Corp. from 1994 to 1999. Since 1999, Mr. Srb has engaged in private investment activities. He has over 16 years’ experience in international brand development and management, including for 13 years with Escada A.G.

Jeffrey Bean, Director. Mr. Bean joined our Board of Directors in December 2004. Mr. Bean is the founder and President of Bean Foods, LLC. Formed in July 2006 the company develops, owns and operates quick serve restaurants in Georgia. Prior to founding Bean Foods, Mr. Bean was the founding partner for GoMotorcycle.com, a business that engaged in the sale of motorcycle parts and accessories over the Internet.  Mr. Bean was an institutional broker and trader at a major commodities trading firm from 1985 to 1997. From 1977 to 1985, Mr. Bean was President of Thomaston Press, Ltd., a printing concern. He received a B.A. degree from the University of Virginia.

Anthony W. Adler, Executive Vice President and Principal Financial Officer. From March 2004 to August 2006, Mr. Adler was a full time consultant to the Company, and in September 2006, joined Sparta as Executive Vice President and as principal financial officer. From 1995 to March 2004, he was Chief Financial Officer of American Motorcycle Leasing Corp.  From 1993 to 1994, Mr. Adler was Chief Executive Officer of Innotek, Inc., a public company engaged in the development and distribution of skin-care products. Prior to 1993, Mr. Adler served in numerous executive capacities including Director of Research and Vice President, Corporate Finance for two New York Stock Exchange Member Firms. Mr. Adler holds an MBA from New York University and a BA from Columbia College.

Richard P. Trotter, Chief Operating Officer. Mr. Trotter has been our Chief Operating Officer since November 2004. From 2001 to 2004, Mr. Trotter was President, Chief Credit Officer, of American Finance Company, Inc., purchasing retail automobile installment contracts from independent automobile dealers nationwide. From 1996 to 2001, he was Senior Vice President of Originations for Consumer Portfolio Services, Inc., one of the nation's leading purchasers of non-prime retail automobile installment contracts. From 1994 to 1996, he was Senior Vice President of Marketing for Consumer Portfolio Services, Inc. His experience also includes positions as Chief Operating Officer, Executive Director and President, and Chief Credit Officer for banks and financial institutions in California. Mr. Trotter has over 30 years’ experience in financial institutions and over 20 years’ experience specializing in the automobile lending, servicing, and collecting industry.

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Sandra L. Ahman, Vice President, Secretary and Director. On March 1, 2004, Sandra Ahman became Vice President of Operations and Secretary of Sparta, and a Director on June 1, 2004. She served as a Vice President of our predecessor entity, Sparta Commercial Services, LLC since its inception in 2001 until its dissolution in February 2006. From 1994 to 2004, she was Vice President of Operations of American Motorcycle Leasing Corp. Prior to joining American Motorcycle Leasing Corp., Ms. Ahman was with Chatham Capital Partners, Ltd. Before joining Chatham in 1993, she was Manager, Human Resources for Comart and Aniforms, a sales promotion and marketing agency in New York, where she worked from 1986 to 1993. For the past 15 years, Ms. Ahman has been a volunteer with The Children's Aid Society in New York City, a membership of 500 committed volunteers, serving from 2000 to 2002 as President of its Associates Council, from 2002 to 2005 as Chairman of the Associates Council, and from 2002 to 2012 as a member of the Advisory Council of their Board of Trustees.

Board of Directors Information and Corporate Governance

There are no family relationships among our executive officers or directors.  None of our directors or officers serves or has served during the past five years as a director of another reporting company or a registered investment company.  Based solely in reliance on representations made by our officers and directors, during the past ten years, none of the following occurred with respect to such persons:  no petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such persons, or any partnership in which he or she was a general partner or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing; no such persons were convicted in a criminal proceeding or are a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); no such persons were the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, or of any federal or state authority barring, suspending or otherwise limiting, their involvement in any type of business practice, or in securities or banking or other financial institution activities; and no such persons were found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or by the Commodity Futures Trading Commission to have violated any federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

Our directors are elected annually to serve for one year and hold office until the next annual meeting of the stockholders and until their successors are elected and qualified. Our Board of Directors may increase the size of the Board of Directors. Any director who fills a position created by the Board of Directors serves until the next annual meeting of the stockholders. Our officers are elected by the Board of Directors at the first meeting after each annual meeting of our stockholders, and hold office until their death, resignation or removal from office.  In seeking candidates for directors, our Board may use their business, professional and personal contacts; accept the recommendations from other Board members, stockholders or management. Candidates recommended by security holders are considered. Current members of the Board are considered for re-election.  The process for evaluating candidates and the manner of evaluation is the same regardless of the category of person recommending the proposed candidate.  The Board considers business experience, mix of skills and other criteria and qualities appropriate for Board membership, including: intelligence, high personal and professional ethics, values, integrity and sound judgment; education; business and professional skills and experience; familiarity with our business and the industry in general; independence from management; ability to devote sufficient time to Board business; commitment to regularly attend and participate in meetings of our Board and its committees; and concern for the long-term interests of the stockholders. While such factors important in evaluating candidates, we do not impose any specific, minimum qualifications for director nominees.

Our Board of Directors does not currently maintain a separately designated standing audit, nominating, or compensation committee, or other similar committee, of the Board of Directors, and we do not have audit, nominating, or compensation committee, or other similar charter.  Functions customarily performed by such committees are performed by our Board as a whole as our operations have been limited and we have had a small number of officers and a small number of directors since inception. We are not required to maintain such committees under the applicable rules of the OTC Bulletin Board. None of our directors qualifies as an "audit committee financial expert." As all of our Board members are officers or nominees of a substantial stockholder who may not be deemed independent, we have not established separate Board committees.

The Board of Directors has not adopted a specific process with respect to security holder communications, but security holders wishing to communicate with the Board of Directors may do so by mailing such communications to the Board of Directors at our offices.

Code of Ethics

We have adopted a "code of ethics", as defined by the SEC, which applies to all our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions.

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Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires Sparta's executive officers, directors, and persons who beneficially own more than ten percent of Sparta's common stock to file with the Securities and Exchange Commission initial reports of beneficial ownership and reports of changes in beneficial ownership of Sparta's common stock.  Such persons are also required by Securities and Exchange Commission regulations to furnish Sparta with copies of all such Section 16(a) forms filed by such person.  Based solely on a review of the copies of such reports furnished to Sparta in connection with the fiscal year ended April 30, 2015, Sparta is not aware of any material delinquencies in the filing of such reports.

ITEM 11.             EXECUTIVE COMPENSATION

Summary Compensation

The table below sets forth information concerning the compensation we paid to our Chief Executive Officer and our next two most highly compensated executive officers who served during our fiscal year ended April 30, 2015 ("Named Executive Officers").

						Stock		Option		All Other
		Salary		Bonus		Awards		Awards		Compensation		Total
Name and Principal Position	Year	($)(a)		($)		($)(b)		($)(b)(b)		($)(c)		($)
Anthony L. Havens	2015		280,000				-		-		45,586		325,586
Chief Executive Officer	2014		280,000				-		-		106,615		386,615
Anthony W. Adler
Executive Vice  President and	2015		185,000		-		-		-		-		185,000
Principal Financial Officer	2014		185,000		-		-		-		-		185,000
Richard P. Trotter	2015		100,000		-		-		-		-		100,000
Chief Operating Officer	2014		100,000		-		-		-		-		100,000

 (a) For Mr. Adler includes accrued; unpaid net salary of $112,018, $119,025, and $78,420 at year end 2015, 2014 and 2013, respectively. For Mr. Trotter, includes accrued; unpaid net salary of $74,754 and $52,198 at year end 2015 and 2014, respectively

 (b) Represents the stock-based compensation recognized in accordance with ASC 718. Stock-based awards are valued at the fair value on the grant date using a Black-Scholes model. Assumptions made in the valuation of stock-based awards are discussed in Note J to the consolidated financial statements.

 (c) This column reports the total amount of perquisites and other benefits provided, if such total amount exceed $10,000. In fiscal 2015 and 2014, for Mr. Havens, this includes $45,586 and $106,615, respectively, for garage rental, life  insurance and reimbursement of unused vacation time.

In general, compensation payable to a Named Executive Officer consists of a base salary, a stock or stock option award, and may include a cash bonus.  During our 2015 fiscal year, we had in effect a written employment agreement with the Mr. Havens.  Our compensation system has generally not been tied to performance-based conditions other than the passage of time.

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Employment Agreement with CEO

We entered into an employment agreement, dated as of July 12, 2004, with Anthony L. Havens who serves as our Chief Executive Officer.  The agreement was for an initial term of five years, and provided for automatic extensions for one five-year period and for additional one-year periods, unless written notice is given three months prior to the expiration of any such term that the term will not be extended.  The agreement was automatically extended for one year in July 2015. His base salary is at an annual rate of $280,000.  He is entitled to defer a portion of his base salary each year.  He is entitled to annual increases in his base salary and other compensation as may be determined by the Board of Directors.  He is entitled to a $1,000,000 term insurance policy.  He is entitled to six weeks of paid vacation per year, health insurance, short term and long-term disability insurance, retirement benefits, fringe benefits, and other employee benefits on the same basis as is generally made available to other senior executives.  He is entitled to reimbursement of reasonable business expenses incurred by him in accordance with company policies.  If terminated, he is entitled to three months of severance for up to six months of service for each year of employment, plus full participation in all standard employee benefits during the period of severance payments.  The employment agreement provides for termination for cause.  If he resigns for good reason or is terminated without cause within twelve months after a change in control, he is entitled to receive an additional lump sum payment equal to the greater of the severance payment or the balance of his base salary for the remaining employment term, continued coverage under any welfare benefits plans for two years, and full vesting of any account balance under a 401(k) plan.  For purposes of the employment agreement, a change in control refers to: 

· a change in voting power, due to a person becoming the beneficial owner of 50% or more of the voting power of our securities and our largest stockholder;

· during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors, including later approved directors, ceasing to constitute a majority of the board;

· a merger or consolidation of our company with a third party, after which our stockholders do not own more than 50% of the voting power; or

· a sale of all or substantially all of our assets to a third party.

If we elect not to renew the employment agreement, he shall be entitled to receive severance equal to thirty months of his base salary plus standard employment benefits.  If we fail to fully perform all or any portion of our post-termination obligations, we are be obligated to pay to him an amount equal to five times the value of the unperformed obligation.

Outstanding Equity Awards at Fiscal Year End

The following table sets forth information concerning outstanding equity awards held by the Name Executive Officers as at April 30, 2015.

	Option Awards							Stock Awards
Name	Number of securities underlying unexercised options (#) Exercisable		Number of securities underlying unexercised options (#) Unexercisable		Option exercise price ($)(3)		Option expiration date(3)	Number of shares or units of stock that have not vested (#)		Market value of shares or units of stock that have not vested ($)
Anthony L. Havens (1)		88,967		-		0.50	5/12/2017		-		-
Anthony W. Adler (2)		16,000		-		0.50	9/21/2016		-		-
Anthony W. Adler (1)		53,267		-		0.50	5/12/2017		-		-
Sandra H. Ahman (1)		41,933		-		0.50	5/12/2017		-		-
Richard P. Trotter (1)		53,550		-		0.50	5/12/2017		-		-

(1) Granted pursuant to an option agreement dated May 12, 2011.  The options are exercisable, subject to vesting, for a period of five years from the grant date at $1.875 per share. See note (3)

(2) Granted pursuant to an option agreement dated September 22, 2006.  The options are exercisable for a period of five years from the vesting date at $14.355 per share. See note (3)

(3) Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price on the 327,333 options held by the Company’ s officers and directors was reduced to $0.50 per share from exercise prices ranging from $0.60 to $14.355, and the expiration dates were extended by two years. The $63,149 valuation of this action was fully expensed during the year.

No options were granted during the fiscal year ended April 30, 2015.

Compensation of Directors

In fiscal 2015, non-employee directors received no compensation.

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ITEM 12.              SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Securities Authorized for Issuance under Equity Compensation Plans

The following table summarizes our equity compensation plan information as of April 30, 2015.

Plan category	Number of shares issued during the year ended April 30, 2015	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)	Weighted-average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plan
Equity compensation plans    approved by securities holders
2005 Plan	113,334 (1)	-		-		-
Equity compensation plans not    approved by security holders
2009 Plan	238,160	-		-		116,270
2014 Plan	200,000	-		-		2,800,000
Total	551,494	-		-		2,916,270

(a) For purposes of the table, does not include shares issued and outstanding pursuant neither to the Company’s 2009 Consultant Stock Plan, nor 1,334 shares vested pursuant to a restricted stock grant.

(b) Calculation excludes shares issued pursuant to stock grants.

(1) The shares vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016.

Plans in the Shareholder Approved Category

In July 2004, we adopted our 2005 Stock Incentive Compensation Plan (the “2005 Plan”).  The 2005 Plan authorizes our Board of Directors to grant securities, including stock options, to employees, directors and others, in the aggregate amount of 113,334 shares of common stock. Securities issued under the plan may be stock awards, non-qualified options, incentive stock options, or any combination of the foregoing.  In general, stock options granted under the plan have a maximum duration of ten years from the date of the grant and are not transferable. The per share exercise price of any incentive stock option granted under the plan may not be less than the fair market value of the common stock on the date of grant. Incentive stock options granted to persons who have voting control over ten percent or more of our capital stock are granted at 110% of fair market value of the underlying common stock on the date of grant and expire five years after the date of grant. No awards may be granted after July 1, 2014.  In June 2015, four employees agreed to exchange 3,999 options exercisable at $7.50 per share and 28,667 options exercisable at $ 1.65 per share for 113,334 shares of the Company’s common stock, valued at $77,460. The shares will vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016.  Only 31,780 shares of the initial 37,780 shares were issued during the year ended April 30, 2015.

As of April 30, 2015, no options to purchase shares of common stock were outstanding under the plan.

Plans Not in the Shareholder Approved Category

On November 1, 2004, pursuant to an employment agreement with Richard P. Trotter, our Chief Operating Officer, we granted an award of 1,667 shares of our common stock, subject to vesting and subject to continued employment.  As of April 30, 2015, Mr. Trotter was vested with 1,667 shares.

On September 22, 2006, pursuant to an option agreement with Anthony W. Adler, our Executive Vice President, we issued stock options to purchase up to 53,334 shares of a common stock, exercisable at $14.355 per share until September 22, 2015. Options to purchase 37,334 shares have expired. The remaining 16,000 options expire September 22, 2015. Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price of the options was reduced to $0.50 per share and the expiration date extended to September 22, 2016.

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On October 23, 2006, pursuant to an option agreement with Jeffrey Bean, one of our directors, we issued stock options to purchase up to 6,667shares of common stock, exercisable at $7.50 per share until October 23, 2015. All but 1,333 of these options have expired. Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price of the options was reduced to $0.50 per share and the expiration date extended to October 22, 2016.

In the fiscal year ended April 30, 2010, we issued four warrants to purchase an aggregate of 34,501 shares of common stock to three consultants valued at $119,923. The warrants are exercisable at $0.8475 per share and expire on various dates from July 12, 2015 to June 22, 2016.

On May 12, 2010, we issued stock options, exercisable at $1.875 per share until May 12, 2015, subject to vesting at the rate of 20% on the grant date, 40% on May 12, 2011, and 40% on May 12, 2012, to the following officers and directors:  Anthony Havens, 88,967 options; Kristian Srb, 32,867 options; Richard Trotter, 53,550 options; Jeffrey Bean, 12,750 options; Anthony Adler, 53,267 options; and Sandra Ahman, 41,934 options. Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price of the options was reduced to $0.50 per share and the expiration date extended to May 12, 2017.

On November 22, 2011, we issued stock options, exercisable at $0.60 per share until November 22, 2016, subject to vesting at the rate of 20% on the grant date, 40% on November 22, 2012, and 40% on November 22, 2014, to the following directors:  Kristian Srb, 13,334 options, and Jeffrey Bean, 13,334 options. Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price of the options was reduced to $0.50 per share and the expiration date extended to November 22, 2018.

In the fiscal year ended April 30, 2011, we issued five warrants to purchase an aggregate of 23,977 shares of common stock to a consultant valued at $105,235. The warrants are exercisable at $1.275 per share and expire on various dates from December 1, 2015 to April 30, 2016. Additionally, we issued six warrants to purchase an aggregate of 88,642 shares of common stock to three consultants valued at $180,963. The warrants are exercisable at $0.8475 per share and expire on various dates from June 15, 2016 to January 20, 2017.

In the fiscal year ended April 30, 2012, we issued four warrants to purchase an aggregate of 43,641 shares of common stock to a consultant valued at $33,007. 1,961 warrants are exercisable at $1.275 and expire May 31, 2016; 21,680 warrants are exercisable at $o.75 and expire in August 2016; and 20,000 warrants are exercisable at $0.60 and expire March 30, 2017.

In the fiscal year ended April 30, 2013, we issued two warrants to purchase an aggregate of 40,000 shares of common stock to a consultant valued at $33,801. 20,000 warrants are exercisable at $0.80 and expire December 31, 2017, and 20,000 warrants are exercisable at $0.60 and expire September 20, 2017.

No warrants were issued in the year ended April 30, 2014.

In the fiscal year ended April 30, 2015, we issued to a consultant five year fully vested warrants to purchase 40,000 shares of common stock exercisable at $0.65 per share, which were valued at $7,707 and expire November 1, 2019. In addition, we issued to another consultant, three year fully vested warrants to purchase 150,000 shares of common stock exercisable at $0.40 per share, which were valued at $30,918 and expire March 24, 2017.

In May 2009, the Company’s Board of Directors authorized a 2009 Consultant Stock Plan covering 133,334 shares of the Company’s common stock for purposes of compensation of certain consultants. Effective June 12, 2013 the Plan was amended to increase the authorized number of shares by 500,000 bringing the total number of authorized shares to 633,333. During the fiscal years ended April 30, 2015 and 2014, the Company issued 238,160 and 170,000 shares, respectively under the plan. As of April 30, 2015, 116,270 shares were available for issuance pursuant to the plan.

In October 2014, the Company’s Board of Directors approved the “2014Equity Incentive Plan” authorizing the issuance of up to 3,000,000 shares of the Company’s common stock or common stock purchase options. The purpose of the  2014 Equity Incentive Plan (the “2014 Plan”) is to advance the interests of Sparta Commercial Services, Inc. (the “Company”) and its shareholders by enabling the Company and its Subsidiaries to attract and retain persons of ability to perform services for the Company and its Subsidiaries by providing an incentive to such individuals through equity participation in the Company and by rewarding such individuals who contribute to the achievement by the Company of its economic objectives. The shares underlying the 2014 Plan were registered on Form S-8 with the Securities and Exchange Commission on November 3, 2014. During the fiscal year ended April 30, 2015, 200,000 shares of common stock were issued under the 2014 Plan.

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Common Stock Ownership

The table below sets forth information regarding the beneficial ownership of our common stock as of July 31, 2015 by: each of our directors; each of our executive officers; all of our executive officers and directors as a group; and each person known by us to be the beneficial owner of more than 5% of our common stock.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting and investment power. Under SEC rules, a person is deemed to be the beneficial owner of securities, which may be acquired by such person upon the exercise of options and warrants or the conversion of convertible securities within 60 days from the date on which beneficial ownership is to be determined. Each beneficial owner's percentage ownership is determined by dividing the number of shares beneficially owned by that person by the base number of outstanding shares, increased to reflect the beneficially owned shares underlying options, warrants or other convertible securities included in that person's holdings, but not those underlying shares held by any other person.

Name (a)	Number of Shares Beneficially Owned		Percentage of Class Beneficially Owned
Anthony L. Havens (1)		348,085		0.80%
Kristian Srb (2)		445,144		1.02%
Jeffrey Bean (3)		31,032		0.07%
Anthony W. Adler (4)		121,833		0.28%
Richard P. Trotter (5)		121,138		0.28%
Sandra L. Ahman (6)		49,678		0.11%
All current directors and named officers as a group (6 in all)		1,116,910		2.25%

(a) Unless indicated otherwise, the address for each person named in the table is c/o Sparta Commercial Services, Inc., 370 Lexington Avenue, Suite 1806, New York, NY 10017.

(1) Mr. Havens' minor son owns approximately 50,000 shares of common stock in a trust account. Mr. Havens is not the trustee for his son's trust account, and does not have the sole or shared power to vote or direct the vote of such shares.  Mr. Havens disclaims beneficial ownership of such shares held in his son's trust account.

Includes 88,967 vested options, all exercisable at $0.50 per share until May 12, 2017.

(2) Includes 32,867 vested options, all exercisable at $0.50 per share until May 12, 2017.  And, 13,333 vested stock options, all exercisable at $0.50 until November 22, 2018.

(3) Includes 1,333 vested stock options, exercisable at $0.50 per share until October 23, 2016, and 12,750 vested options all exercisable at $0.50 per share until May 12, 2017. And, 13,333 vested stock options all exercisable at $0.50 until November 22, 2018.

(4) Includes 16,000 vested stock options, exercisable at $0.50 per share until September 22, 2016, and 44,445 shares held by The Anthony W. Adler Irrevocable Trust, dated October 1, 2009.  Includes 53,267 vested stock options, exercisable at $0.50 per share until May 12, 2017.

(5) Includes 1,667 vested shares and 44,445 shares held by The Richard and Kay Trotter Trust Established March 18, 2009. Includes 21,476 shares to be issued to Mr. Trotter in lieu of salary.  Includes 53,550 vested stock options, all exercisable at $0.500 per share until May 12, 2017.

(6) Includes 41,993 vested stock options, all exercisable at $0.50 per share until May 12, 2017.

Changes in Control

Other than outstanding convertible securities, we do not have any arrangements that may result in a change in control.

ITEM 13.             CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

During the fiscal year ended April 30, 2014, we repaid Kristian Srb, one of our directors $7,407. There were no transactions with our Directors during the fiscal year ended April 30, 2015. As of April 30, 2015, we owed Mr. Srb $372,093.

Director Independence

None of our directors, other than Kristian Srb and Jeffrey Bean, is deemed an independent director.  For purposes of determining independence, we are applying the independence standards of the NASDAQ Stock Market LLC.

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ITEM 14.              PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

Fees for audit services provided by RBSM LLP, our principal independent registered public accounting firm, during the fiscal years ended April 30, 2015 and 2014 were $115,000 and $110,000, respectively. Audit fees consist of the aggregate fees billed for the audits of our annual financial statements, the reviews of our quarterly financial statements, and services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years.

Audit-Related Fees

Fees for audit-related services provided by our principal independent registered public accounting firm during the fiscal years ended April 30, 2015 and 2014 were $0. Audit-related fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements outside of those fees disclosed above under the caption Audit Fees.

Tax Fees

Fees for tax services provided by our principal independent registered public accounting firm during the fiscal years ended April 30, 2015 and 2014 were $0. Tax fees consist of fees billed for tax compliance, tax advice, and tax planning.

All Other Fees

There were no other fees billed for services our principal independent registered public accounting firm for the fiscal years ended April 30, 2015 and 2014.

Pre-Approval Policies and Procedures

Our Board of Directors has a policy that requires pre-approval of all audit, audit-related, tax services, and other services, including non-audit services, performed by our independent registered public accounting firm.  All services performed by our principal independent registered public accounting firm, and all fees paid, in our fiscal years ended April 30, 2015 and 2014were pre-approved.  The Board of Directors is responsible for matters typically performed by an audit committee. We do not presently have a separate audit committee of the Board of Directors. The Board of Directors considered whether, and determined that, the auditor's provision of audit and non-audit services was compatible with maintaining the auditor's independence.

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ITEM 15.              EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)           List of documents filed as a part of this report:

(1)         Index to Consolidated Financial Statements

Report of Registered Independent Certified Public Accounting Firm

Consolidated Balance Sheets as of April 30, 2015 and 2014

Consolidated Statements of Losses for the years ended April 30, 2015 and 2014

Consolidated Statement of Deficit for the two years ended April 30, 2015

Consolidated Statements of Cash Flows for the years ended April 30, 2015 and 2014

Notes to Consolidated Financial Statements

(2)           Index to Financial Statement Schedules

Not required.

(3)           Index to Exhibits

Exhibit Number	Description of Exhibit
3(i)(1)	Articles of Incorporation of Tomahawk Oil and Minerals, Inc. (Incorporated by reference to Exhibit 3(i) (1) of Form 10-KSB filed on August 13, 2004)
3(i)(2)	Certificate of Amendment of Articles of Incorporation, November 1983 (Incorporated by reference to Exhibit 3(i) (2) of Form 10-KSB filed on August 13, 2004)
3(i)(3)	Certificate of Amendment of Articles of Incorporation for name change, August 2004 (Incorporated by reference to Exhibit 3(i) of Form 8-K filed on August 27, 2004)
3(i)(4)	Certificate of Amendment of Articles of Incorporation for increase in authorized capital, September 2004 (Incorporated by reference to Exhibit 3(i) of Form 8-K filed on September 17, 2004)
3(i)(5)	Certificate of Amendment of Articles of Incorporation for decrease in authorized capital, December 2004 (Incorporated by reference to Exhibit 3(i) of Form 8-K filed on December 23, 2004)
3(i)(6)	Certificate of Designation for Series A Redeemable Preferred Stock, December 2004 (Incorporated by reference to Exhibit 3(i) of Form 8-K filed on January 4, 2005)
3(i)(7)	Certificate of Designation for Series B Preferred Stock (Incorporated by reference to Exhibit B to Preferred Stock Purchase Agreement, dated as of July 29, 2009 (see Exhibit 10.21 below)
3(i)(8)	Certificate of Amendment of Articles of Incorporation for increase in authorized capital, September 21, 2009 (Incorporated by reference to Exhibit 3(i)(8) of Form S-1 filed on October 2, 2010)
3(i)(9)	Certificate of Designations of Series C Convertible Preferred Stock (Incorporated by reference to Exhibit 5.03(i) of Form 8-K filed on November 19, 2009)
3(ii)(1)	By-laws (Incorporated by reference to Exhibit 3(ii) (1) of Form 10-KSB filed on August 13, 2004)
3(ii)(2)	By-laws Resolution (Incorporated by reference to Exhibit 3(ii) (2) of Form 10-KSB filed on August 13, 2004)
3(ii)(3)	Board of Directors Resolutions amending By-laws (Incorporated by reference to Exhibit 3(ii) of Form 10-QSB filed on December 15, 2004)
10.1+	Form of Employment Agreement with Anthony Havens (Incorporated by reference to Exhibit 10.4 of Form 10-KSB filed on August 13, 2004)
10.2+	Stock Option Agreement with Jeffrey Bean, dated October 23, 2006 (Incorporated by reference to Exhibit 10.1 of Form 8-K filed on October 24, 2006)
10.3+	2005 Stock Incentive Compensation Plan (Incorporated by reference to Exhibit 4 of Form 10-KSB filed on August 13, 2004)
10.4	2010 Consultant Stock Plan (Incorporated by reference to Exhibit 99.1 of Form S-8 filed on May 12, 2010)
10.5	Form of Promissory Note (Incorporated by reference to Exhibit 10.3 of Form 10-QSB filed on December 18, 2006)
10.6	Form of Promissory Note (Incorporated by reference to Exhibit 10.4 of Form 10-QSB filed on December 18, 2006)
10.7	Preferred Stock Purchase Agreement, dated as of July 29, 2009, by and among Sparta Commercial Services, Inc. and Optimus Capital Partners, LLC (Incorporated by reference to Exhibit 10.1 of Form 8-K filed on July 30, 2009)
11.0*	Form of Convertible Note

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12**	2014 Equity Incentive Plan
14.1	Code of Ethics  (Incorporated by reference to Exhibit 14.1 of Form 10-K filed on August 15, 2011)
21.1*	List of Subsidiaries
23.1*	Consent of RBSM LLP
31.1*	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
31.2*	Certification of Principal Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350
32.2*	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350
101.INS*	XBRL Instance Document
101.SCH*	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

___

* Filed herewith.

** Incorporated by reference to the registration statement on Form S-8 filed by the registrant with the Commission on November 3, 2014

+ Represents executive compensation plan or agreement

60

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

SPARTA COMMERCIAL SERVICES, INC.
By:	/s/ Anthony L. Havens
	Anthony L. Havens
	Chief Executive Officer
	Date:  August 13, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

By:	/s/ Anthony L. Havens
	Anthony L. Havens
	Chief Executive Officer, President
	and Chairman of the Board
	Date: August 13, 2015
By:	/s/ Anthony W. Adler
	Anthony W. Adler
	Executive Vice President, and
	Interim Principal Financial Officer
	Date: August 13, 2015
By:	/s/ Sandra L. Ahman
	Sandra L. Ahman
	Vice President and Director
	Date: August 13, 2015
By:	/s/ Kristian Srb
	Kristian Srb
	Director
	Date: August 13, 2015
By:	/s/ Jeffrey Bean
	Jeffrey Bean
	Director
	Date: August 13, 2015

61

EX-11.0

Exhibit 11.0

(FORM OF CONVERTIBLE NOTE)

THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT”)

  US $

SPARTA COMMERCIAL SERVICES, INC.

8% CONVERTIBLE REDEEMABLE NOTE

DUE

FOR VALUE RECEIVED, Sparta Commercial Services, Inc. (the “Company”) promises to pay to the order of ________________________________and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of ________________________________________ on ___________________ ("Maturity Date") and to pay interest on the principal amount outstanding hereunder at the rate of 8% per annum commencing on ________________. This Note contains a 5% original issue discount such that the purchase price of the note is $­­­­_________. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note.  The principal of, and interest on, this Note are payable at ­­­­­­­__________________________, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time.  The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company.  The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer.  Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

This Note is subject to the following additional provisions:

1.           This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.  No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

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  Initials

2.           The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

3.           This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act"), and applicable state securities laws.  Any attempted transfer to a non-qualifying party shall be treated by the Company as void.  Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary.  Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

4.           (a)           The Holder of this Note is entitled, at its option, at any time after 180 days, and after full cash payment for the shares convertible hereunder,to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common Stock") without restrictive legend of any nature, at a price ("Conversion Price") for each share of Common Stock equal to ___% of the average of the 3 lowest closing pricesof the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the tenpriortrading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion.  Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder's intention to convert this Note or a specified portion hereof, and accompanied by proper assignment hereof in blank.  Accrued but unpaid interest shall be subject to conversion.  No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 50% instead of 60% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company.  While this Note is in effect, the Holder shall open or maintain a short position in the Common Stock of the Company.

(b)           Interest on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum.  Interest shall be paid by the Company in Common Stock ("Interest Shares").  Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above.  The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

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2

(c)           The Notes may be prepaid with the following penalties:

PREPAY DATE	PREPAY AMOUNT
< 30 days	110% of principal plus accrued interest
31- 60 days	115% of principal plus accrued interest
61-90 days	120% of principal plus accrued interest
91-120 days	125% of principal plus accrued interest
121-150 days	130% of principal plus accrued interest
151-180 days	135% of principal plus accrued interest

This Note may not be prepaid after the 180th day. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

(d)           Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

(e)           In case of any Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

5.           No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

____

  Initials

3

6.           The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

7.           The Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

8.           If one or more of the following described "Events of Default" shall occur:

(a)           The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

(b)           Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

(c)           The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

(d)           The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for  bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

(e)           A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

(f)           Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or

(g)           One or more money judgments, writs or warrants of attachment, or similar process, in excess of one-hundred thousand dollars ($100,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) business days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

(h)           The Company shall have defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period; or

____

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4

(i)           The Company shall have its Common Stock delisted from a market (including the OTCQB marketplace) or, if the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

(j)           If a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

(k)           The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or

(l)           The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder; or

(m)           The Company shall not be “current” in its filings with the Securities and Exchange Commission; or

(n)           The Company shall lose the “bid” price for its stock and a market (including the OTCBB marketplace or other exchange)

Then, or at any time thereafter, unless cured within 15 business days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.  Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law.  In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.  This penalty shall increase to $500 per day beginning on the 10th day.  The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%.  In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%.  If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

Make-Whole for Failure to Deliver Loss.  At the Holder’s election, if the Company fails for any reason, except in circumstances beyond the control of the Company, to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

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  Initials

5

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

9.           In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

10.           Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

11.           The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer.  Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

12.           The Company shall issue irrevocable transfer agent instructions reserving __________________ shares of its Common Stock for conversions under this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note.   Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs associated with issuing and delivering the shares. The company should at all times reserve a minimum of four times the amount of shares required if the note would be fully converted.  The Holder may reasonably request increases from time to time to reserve such amounts.

13.           The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc.  This notice shall be given to the Holder as soon as possible under law.

14.           This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto.  The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York.  This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

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6

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

Dated:

SPARTA COMMERCIAL SERVICES, INC.

By: __________________________________

Title: ­­­­________________________________

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7

EXHIBIT A

NOTICE OF CONVERSION

 (To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Sparta Commercial Services, Inc.  (“Shares”) according to the conditions set forth in such Note, as of the date written below.

If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.

Date of Conversion: 

Applicable Conversion Price: 

Signature: 

[Print Name of Holder and Title of Signer]

Address:  

SSN or EIN:

Shares are to be registered in the following name:

Name: 

Address: 

Tel: 

Fax: 

SSN or EIN: 

Shares are to be sent or delivered to the following account:

Account Name: 

Address: 

____

  Initials

8

EX-21.1

EXHIBIT 21.1

LIST OF SUBSIDIARIES

(as of April 30, 2015)

Specialty Reports, Inc., a Nevada corporation, 100% owned

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

Sparta Commercial Services, Inc.

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (File No. 333-189264) and (File No. 333-199822) of our report, which includes an explanatory paragraph regarding the substantial doubt about the Company’s ability to continue as a going concern, dated August 13, 2015 included Sparta Commercial Services, Inc.’s Annual Report on Form 10-K for the year ended April 30, 2015.

/s/RBSM LLP

New York, New York

August 13, 2015

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Anthony L. Havens, certify that:

1. I have reviewed this report on Form 10-K for the fiscal year ended April 30, 2015 of Sparta Commercial Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2015

/s/ Anthony L. Havens

Anthony L. Havens

Chief Executive Officer




EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Anthony W. Adler, certify that:

1.		I have reviewed this report on Form 10-K for the fiscal year ended April 30, 2015 of Sparta Commercial Services, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2015

/s/ Anthony W. Adler

Anthony W. Adler

Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Annual Report of Sparta Commercial Services, Inc. (the “Company”) on Form 10-K for the fiscal year ended April 30, 2015, as filed with the Securities and Exchange Commission on the date therein specified (the “Report”), I, Anthony L. Havens, as Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, 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 results of operations of the Company.

Date: August 13, 2015

/s/ Anthony L. Havens

Anthony L. Havens

Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Annual Report of Sparta Commercial Services, Inc. (the “Company”) on Form 10-K for the fiscal year ended April 30, 2015, as filed with the Securities and Exchange Commission on the date therein specified (the “Report”), I, Anthony W. Adler, as Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, 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 results of operations of the Company.

Date: August 13, 2015

/s/ Anthony W. Adler

Anthony W. Adler

Principal Financial Officer

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt - USD ($)	Apr. 30, 2015	Apr. 30, 2014
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt [Line Items]
Total Due	$ 2,638,154	$ 2,019,879
Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Maturities of Long-term Debt [Line Items]
2016	70,117
2017	0
Total Due	$ 70,117

XML

NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Number Outstanding (in Shares)	420,763	397,885	439,196
Warrants Oustanding, Weighted Average Remaining Contractual Life	1 year 7 days
Warrants Outstanding, Weighted Average Exercise Price	$ 0.66	$ 1.99	$ 1.27
Warrants Exercisable, Number Exercisable (in Shares)	420,763
Warrants Exercisable, Weighted Average Exercise Price	$ 0.66
Warrants at $1.275 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 1.275
Warrants Oustanding, Number Outstanding (in Shares)	25,938
Warrants Oustanding, Weighted Average Remaining Contractual Life	313 days
Warrants Outstanding, Weighted Average Exercise Price	$ 1.275
Warrants Exercisable, Number Exercisable (in Shares)	25,938
Warrants Exercisable, Weighted Average Exercise Price	$ 1.275
Warrants at $0.8475 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.8475
Warrants Oustanding, Number Outstanding (in Shares)	123,145
Warrants Oustanding, Weighted Average Remaining Contractual Life	1 year 54 days
Warrants Outstanding, Weighted Average Exercise Price	$ 0.8475
Warrants Exercisable, Number Exercisable (in Shares)	123,145
Warrants Exercisable, Weighted Average Exercise Price	$ 0.8475
Warrants at $0.80 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.80
Warrants Oustanding, Number Outstanding (in Shares)	20,000
Warrants Oustanding, Weighted Average Remaining Contractual Life	2 years 244 days
Warrants Outstanding, Weighted Average Exercise Price	$ 0.80
Warrants Exercisable, Number Exercisable (in Shares)	20,000
Warrants Exercisable, Weighted Average Exercise Price	$ 0.80
Warrants at $0.75 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.75
Warrants Oustanding, Number Outstanding (in Shares)	21,680
Warrants Oustanding, Weighted Average Remaining Contractual Life	1 year 109 days
Warrants Outstanding, Weighted Average Exercise Price	$ 0.75
Warrants Exercisable, Number Exercisable (in Shares)	21,680
Warrants Exercisable, Weighted Average Exercise Price	$ 0.75
Warrants at $0.65 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.65
Warrants Oustanding, Number Outstanding (in Shares)	40,000
Warrants Oustanding, Weighted Average Remaining Contractual Life	5 years
Warrants Outstanding, Weighted Average Exercise Price	$ 0.65
Warrants Exercisable, Number Exercisable (in Shares)	40,000
Warrants Exercisable, Weighted Average Exercise Price	$ 0.65
Warrants at $0.60 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.60
Warrants Oustanding, Number Outstanding (in Shares)	40,000
Warrants Oustanding, Weighted Average Remaining Contractual Life	2 years 58 days
Warrants Outstanding, Weighted Average Exercise Price	$ 0.60
Warrants Exercisable, Number Exercisable (in Shares)	40,000
Warrants Exercisable, Weighted Average Exercise Price	$ 0.60
Warrants at $0.40 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Warrants Oustanding, Exercise Prices	$ 0.40
Warrants Oustanding, Number Outstanding (in Shares)	150,000
Warrants Oustanding, Weighted Average Remaining Contractual Life	2 years
Warrants Outstanding, Weighted Average Exercise Price	$ 0.40
Warrants Exercisable, Number Exercisable (in Shares)	150,000
Warrants Exercisable, Weighted Average Exercise Price	$ 0.40

XML

NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($)	Apr. 30, 2015	Apr. 30, 2014
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liability	$ 1,605,535	$ 601,000
Fair Value, Inputs, Level 1 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liability	0
Fair Value, Inputs, Level 2 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liability	0
Fair Value, Inputs, Level 3 [Member]
NOTE H - FAIR VALUE MEASUREMENTS (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative liability	$ 1,605,535

XML

NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract]
Number of Shares, Warrants Outstanding	397,885	439,196
Weighted Average Exercise Price per Share, Warrants Outstanding	$ 1.99	$ 1.27
Number of Shares, Warrants Granted	190,000	0
Weighted Average Exercise Price per Share, Warrants Granted	$ 0.45	$ 0
Number of Shares, Warrants Exercised	(167,122)	0
Weighted Average Exercise Price per Share, Warrants Exercised	$ (0.8475)	$ 0
Number of Shares, Warrants Canceled or Expired	0	(41,311)
Weighted Average Exercise Price per Share, Warrants Canceled or Expired	$ 0	$ (5.40)
Number of Shares, Warrants Outstanding	420,763	397,885
Weighted Average Exercise Price per Share, Warrants Outstanding	$ 0.66	$ 1.99

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NOTE F - EQUITY INSTRUMENTS (Details)	3 Months Ended	12 Months Ended
	Aug. 12, 2015 shares	Apr. 30, 2015 USD ($) $ / shares shares	Apr. 30, 2014 USD ($) $ / shares shares	Nov. 30, 2009 $ / shares shares
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Preferred Stock, Shares Authorized		10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Common Stock, Shares Authorized		750,000,000	750,000,000
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Common Stock, Shares, Issued		43,238,320	20,987,353
Common Stock, Shares, Outstanding		43,238,320	20,987,353
Common stock to be issued, shares		4,609,828	283,777
Allocated Share-based Compensation Expense (in Dollars) | $		$ 430,402	$ 398,149
Stock Issued During Period, Value, New Issues (in Dollars) | $		$ 978,866	$ 1,298,977
Debt Conversion, Converted Instrument, Shares Issued	22,049,916		1,888,804
Debt Conversion, Original Debt, Amount (in Dollars) | $			$ 776,686
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		(32,666)	0
Stock Issued for Cash [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues		9,655,415	31,780
Number of Accredited Investors		18	77,460
Stock Issued During Period, Value, New Issues (in Dollars) | $		$ 978,866
Stock to be Issued		9,487,478
Conversion of Convertible Notes and Accrued Interest [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Common stock to be issued, shares		1,353,830	122,451
Debt Conversion, Converted Instrument, Shares Issued		684,788
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 1,963,350
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Common stock to be issued, shares			24,809
Debt Conversion, Converted Instrument, Shares Issued		51,000
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 181,912
Stock Issued to Consultants [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services		1,234,959
Stock Issued During Period, Value, Issued for Services (in Dollars) | $		$ 352,942
Stock Issued for Accounts Payable [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Common stock to be issued, shares			20,000
Debt Conversion, Converted Instrument, Shares Issued		60,000
Debt Conversion, Original Debt, Amount (in Dollars) | $		$ 538,160
Series A Preferred Stock [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Preferred Stock, Shares Authorized		35,850	35,850
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 100	$ 100
Preferred Stock, Shares Issued		125	125
Preferred Stock, Shares Outstanding		125	125
Preferred Stock, Dividend Rate, Percentage		6.00%
Convertible Preferred Stock, Terms of Conversion		convertible into shares of common stock at the rate of one preferred share into 8.55 shares of common stock
Convertible Preferred Stock, Shares Issued upon Conversion		8.55
Series B Preferred Stock [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Preferred Stock, Shares Authorized		1,000	1,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ / shares		$ 10,000
Preferred Stock, Shares Issued		0	157
Preferred Stock, Shares Outstanding		0	157
Preferred Stock, Shares to Be Issued		0	72.45
Preferred Stock, Dividend Rate, Percentage		10.00%
Series C Preferred Stock [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Preferred Stock, Shares Authorized		200,000	200,000	200,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares		$ 0.001	$ 0.001	$ 0.001
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ / shares		$ 10		$ 10.00
Preferred Stock, Shares Issued		0	0
Preferred Stock, Shares Outstanding		0	0
Preferred Stock, Dividend Payment Terms		redeemable at the Company’s option at $10.00 per share, and is convertible at the option of the holder into shares of common stock as follows: the number of such shares of common stock to be received for each share of Series C Preferred Stock so converted shall be determined by (A) dividing the number of shares of Series C Preferred Stock to be converted by the weighted average closing price per share of the Company's common stock for the ten (10) trading days immediately preceding the date on which the Company agrees to issue shares of Series C Preferred Stock to such holder multiplied by (B) the Series C liquidation value.
Redemption of Preferred Shares for Note Subscription Receivable [Member] | Series B Preferred Stock [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Stock Redeemed or Called During Period, Value (in Dollars) | $		$ 2,118,309
Redemption of Preferred Shares for Interest Receivable [Member] | Series B Preferred Stock [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Stock Redeemed or Called During Period, Value (in Dollars) | $		$ 193,011
Employee [Member]
NOTE F - EQUITY INSTRUMENTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		80,154
Stock Issued During Period, Value, Stock Options Exercised (in Dollars) | $		$ 100,000

XML

NOTE B - PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Schedule of Property and Equipment [Abstract]
Computer equipment, software and furniture	$ 213,262	$ 209,341
Less: accumulated depreciation	(203,215)	(199,367)
Net property and equipment	$ 10,047	$ 9,974

XML

NOTE K - COMMITMENTS AND CONTINGENCIES (Details) - Apr. 30, 2015	USD ($) ft²
NOTE K - COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 27,460
Other Commitments, Description	The agreements are generally for a term of 12 months from inception and renewable automatically from year to year unless either the Company or consultant terminates such engagement by written notice.
Consulting Agreement, Term of Agreement	12 months
Chief Executive Officer [Member] | Employment Agreement [Member]
NOTE K - COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Other Commitments, Description	The employment term is to be automatically extended for one five-year period, and additional one-year periods, unless written notice is given three months prior to the expiration of any such term that the term will not be extended. The agreement was automatically extended for one year on July 12, 2015. He is entitled to six weeks of paid vacation per year, and health insurance, short-term and long-term disability insurance, retirement benefits, fringe benefits, and other employee benefits on the same basis as is generally made available to other senior executives.
Consulting Agreement, Term of Agreement	5 years
Building [Member]
NOTE K - COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Lease Expiration Date	Jun. 29, 2015
Area of Real Estate Property | ft²	2,800
Operating Leases, Rent Expense	$ 185,213
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 229,830
Lessor Leasing Arrangements, Operating Leases, Term of Contract	2 months
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Next Twelve Months	$ 38,305

XML

NOTE D - NOTES PAYABLE (Tables)

12 Months Ended

Apr. 30, 2015

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Schedule of Debt [Table Text Block]

Notes Payable	April 30, 2015			April 30, 2014
Notes convertible at holder’s option (a)	$	2,707,080		$	1,901,263
Notes convertible at Company’s option (b)		15,000			-
Notes with interest only convertible at Company’s option (c)		285,000			390,000
Non-convertible notes payable d)		393,500			25,000
Subtotal		3,400,580			2,316,263
Less, Debt discount		(762,426	)		(296,384	)
Total	$	2,638,154		$	2,019,879

(a) Notes convertible at holder’s option consists of:

(i)                            a $1,163,369, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013; 

 (ii)                           (a) a $33,500, 6% note due June 30, 2015, and (b) a $40,000 note due December 23, 2015. The Company has recorded beneficial conversion discounts totaling $85,465 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 4,753,694 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                           seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; 

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes;  

   (vi)                          (a) $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 2,400,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (vii)                         (a) a $27,500, 5% convertible note due January 28, 2015, (b) a $27,500, 5% convertible note due April 29, 2015 and (c) a $27,500 convertible note due January 28, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $59,437 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (d) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $25,000 8% convertible note due April 27, 2015, (b) a $55,000 8% convertible note due January 26, 2016, and (c) a $57,200 8% convertible note due January 26, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 5,106,571 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           (a) a $33,000, 8% note due August 16, 2015; and (b) a $33,000, 8% note due October 5, 2015. The Company has recorded a beneficial conversion discount of $32,904 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,735,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (x)                            a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

 (xi)                           a $55,000, 12% note due June 22, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 2,000,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          (a) $55,000 outstanding under a $220,000, 10% note due May 24, 2015 and (b) $55,000 outstanding under the same note due July 27, 2015. The Company has recorded a beneficial conversion discount of $105,364 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (xiii)                         (a) a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,500 outstanding under a $50,000, 8% convertible note due April 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (c) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xiv)                        a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

(xv)                          (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $35,000 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

(xvi)                            (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,900 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

(xvii)                           (a) a $33,000, 8% note due November 25, 2015; and (b) a $38,000, 8% note due January 17, 2016. The Company has recorded a beneficial conversion discount of $51,414 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 5,650,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

(xviii)                           (a) two $30,000, 8% notes both due 4/14/16. The Company has recorded a beneficial conversion discount of $45,000 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

(xix)                           a $25,000, 8% note due 4/22/16. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,529,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

(b) Notes convertible at the Company’s option consist of:

(i)                            a $15,000, 10% note due 4/22/16. The note is convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company issued the Noteholder 37,500 shares of its restricted common stock as an inducement for the loan. If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                              a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share;

 (iii)                       a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period;

 (iv)                          a $25,000 10% note due February 2, 2016, the Company issued the note holder 110,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.15 per share; and

 (v)                       a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan.

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015;

 (iii)                        a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (iv)                        a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016;

  (v)                        a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan; and

 (vi)                        a $33,500, 10% note due April 30, 2015. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid.

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

No non-employee warrants were granted during the year ended April 30, 2014.The weighted-average fair value of stock warrants granted to non-employees during the year ended April 30, 2015 was $0.20, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option-pricing model are as follows:

	2015		2014
Significant assumptions (weighted-average):
Risk-free interest rate at grant date		1.09%		-
Expected stock price volatility		140%		-
Expected dividend payout		-		-
Expected option life-years	3.42		-

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The value of the derivative liability was re-assessed as of April 30, 2015 resulting in a loss to the consolidated statement of operations of $318,372 for the year ended April 30, 2015.

	April 30, 2015
Opening balance	$	601,000
Derivative liability reclassified to additional paid in capital		768,174
Derivative financial liability arising on the issue of convertible notes		554,733
Fair value adjustments		(318,372	)
Closing balance	$	1,605,535

Warrant [Member]

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The change in fair value of the derivative liabilities of warrants outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.09%  to 1.32%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0.59 years to 4.51 years

Debt [Member]

NOTE D - NOTES PAYABLE (Tables) [Line Items]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.001% to 0.24%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0. years to 1 year

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NOTE I - INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Noncurrent:
Net operating loss carry forward	$ 10,329,233	$ 8,976,606
Valuation allowance	(10,329,233)	(8,976,606)
Net deferred tax asset	$ 0	$ 0

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NOTE D - NOTES PAYABLE (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	1.09%	0.00%
Expected stock price volatility	140.00%	0.00%
Expected options life in years	3 years 153 days
Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected stock price volatility	230.00%
Expected dividend payout (in Dollars per share)	$ 0
Minimum [Member] | Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.09%
Expected options life in years	215 days
Maximum [Member] | Warrant [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	1.32%
Expected options life in years	4 years 186 days

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NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases	Apr. 30, 2015 USD ($)
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract]
2016	$ 27,460
2017	0
Total	$ 27,460

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NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Abstract]
Options	327,335	360,001	379,667
Options	2 years 80 days
Options	$ 0.50	$ 2.41	$ 3.20
Options	327,335
Options	$ 0.50

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NOTE G - NONCONTROLLING INTEREST (Details) - Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Abstract]
Balance	$ 669,424	$ 723,191
Noncontrolling interest’s share of losses	(17,076)	(53,767)
Balance	$ 652,348	$ 669,424

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NOTE C - DISCONTINUED OPERATIONS

12 Months Ended

Apr. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE C - DISCONTINUED OPERATIONS

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Fiscal Year Ended
	April 30,			April 30,
	2015			2014
Revenues	$	41,714		$	122,373
Net loss	$	(246,537	)	$	(280,441	)

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore no portfolio performance measures were calculated for the year ending April 30, 2015.

ASSETS INCLUDED IN DISCONTINUED OPERATIONS

MOTORCYCLES AND OTHER VEHICLES UNDER OPERATING LEASES

Motorcycles and other vehicles under operating leases at April 30, 2015 and 2014 consist of the following:

	2015			2014
Motorcycles and other vehicles	$	22,086		$	60,686
Less: accumulated depreciation		(13,455	)		(5,016	)
Motorcycles and other vehicles, net of accumulated depreciation		8,631			55,670
Less: estimated reserve for residual values		(2,437	)		(4,252	)
Motorcycles and other vehicles under operating leases, net	$	6,194		$	51,418

At April 30, 2015, motorcycles and other vehicles are being depreciated to their estimated residual values over the lives of their lease contracts. Depreciation expense for vehicles for the years ended April 30, 2015 and 2014 was $28,736 and $29,411, respectively. All of the assets are pledged as collateral for the note described in SECURED NOTES PAYABLE in this Note. These remaining leases are in a run-off mode.

The following is a schedule by years of minimum future rentals (excluding residual values of $27,460) on non-cancelable operating leases as of April 30, 2015:

Year ending April 30,
2016	$	27,460
2017		-
Total	$	27,460

RETAIL (RISC) LOAN RECEIVABLES

All of the Company’s RISC loan receivables were sold in August 2013.   As of April 30, 2015 and 2014, the Company had RISC Loans receivables of $8,743(representing refinancing of two loans that had previously been sold) and zero, respectively; Interest receivable of $1,265 and $2,180, respectively; and deficiency receivables of $0 and $0, respectively. At April 30, 2015 and 2014, the reserve for doubtful RISC loan receivables was $0 and $1,124, respectively.

As the Company sold all of its portfolio of RISCs, and a portion of its portfolio of leases with the remaining leases in final run-off mode, therefore no portfolio performance measures were calculated for the year endings April 30, 2014 and 2015.

LIABILITIES INCLUDED IN DISCONTINUED OPERATIONS

SECURED NOTES PAYABLE

	2015		2014
Secured, subordinated  individual lender (a)	$	58,037	$	117,508
Secured, subordinated individual lender (b)		12,080		12,912
Total	$	70,117	$	130,420

(a)   The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at April 30, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of April 30, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009, which was extended to August 15, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2013, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock.

At April 30, 2015, the notes payable mature as follows:

Year ended April 30,	Amount
2016	$	70,117
2017		-
Total Due	$	70,117

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NOTE D - NOTES PAYABLE (Details) - Schedule of Fair Value of Convertible Notes	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	1.09%	0.00%
Expected stock price volatility	140.00%	0.00%
Expected dividend payout	0.00%	0.00%
Expected options life in years	3 years 153 days
Debt [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected stock price volatility	230.00%
Expected dividend payout	0.00%
Minimum [Member] | Debt [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.001%
Expected options life in years
Maximum [Member] | Debt [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk free interest rate	0.24%
Expected options life in years	1 year

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NOTE J - STOCK OPTIONS AND WARRANTS (Tables)

12 Months Ended

Apr. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]

The following table summarizes common stock options issued to officers, directors and employees outstanding and the related exercise price.

Options Outstanding						Options Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
Options	327,335		2.22	$	0.50		327,335	$	0.50

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Transactions involving stock options issued to officers, directors and employees are summarized as follows:

	Number of Shares			Weighted Average Price Per Share
Outstanding at April 30, 2013		379,667		$	3.20
Granted		-			-
Exercised		-			-
Canceled or expired		(19,666	)		(20.05	)
Outstanding at April 30, 2014		360,001		$	2.41
Granted		-			-
Exercised		(32,666	)		(2.37	)
Canceled or expired		-			-
Outstanding at April 30, 2015		327,335		$	0.50

Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Table Text Block]

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company.

		Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.275		25,938		.86	$	1.275		25,938	$	1.275
$	0.8475		123,145		1.15	$	0.8475		123,145	$	0.8475
$	0.80		20,000		2.67	$	0.80		20,000	$	0.80
$	0.75		21,680		1.30	$	0.75		21,680	$	0.75
$	0.65		40,000		5	$	0.65		40,000	$	0.65
$	0.60		40,000		2.16	$	0.60		40,000	$	0.60
$	0.40		150,000		2	$	0.40		150,000	$	0.40
			420,763		1.02	$	0.66		420,763	$	0.66

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Transactions involving stock warrants issued to non-employees are summarized as follows:

	Number of Shares			Weighted Average Exercise Price Per Share
Outstanding at April 30, 2013		439,196		$	1.27
Granted		-			-
Exercised		-			-
Canceled or expired		(41,311	)		(5.40	)
Outstanding at April 30, 2014		397,885			1.99
Granted		190,000			0.45
Exercised		(167,122	)		(0.8475	)
Canceled or expired		-			-
Outstanding at April 30, 2015		420,763		$	0.66

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

No non-employee warrants were granted during the year ended April 30, 2014.The weighted-average fair value of stock warrants granted to non-employees during the year ended April 30, 2015 was $0.20, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option-pricing model are as follows:

	2015		2014
Significant assumptions (weighted-average):
Risk-free interest rate at grant date		1.09%		-
Expected stock price volatility		140%		-
Expected dividend payout		-		-
Expected option life-years	3.42		-

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NOTE I - INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2015

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Components of deferred tax assets as of April 30, 2015 and 2014 are as follows:

	April 30,
	2015			2014
Noncurrent:
Net operating loss carry forward	$	10,329,233		$	8,976,606
Valuation allowance		(10,329,233	)		(8,976,606	)
Net deferred tax asset	$	-		$	-

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NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Significant assumptions (weighted-average):
Risk-free interest rate at grant date	1.09%	0.00%
Expected stock price volatility	140.00%	0.00%
Expected dividend payout	0.00%	0.00%
Expected option life-years	3 years 153 days

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NOTE D - NOTES PAYABLE (Details) - Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Fair Value, Net Derivative Liability Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
Derivative Liability	$ 601,000
Derivative liability reclassified to additional paid in capital	768,174	$ 518,379
Derivative financial liability arising on the issue of convertible notes	554,733
Fair value adjustments	(318,372)
Derivative Liability	$ 1,605,535	$ 601,000

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NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) [Line Items]
Advertising Expense	$ 7,519	$ 39,519
Earnings Per Share, Basic	$ (0.18)	$ 0.16
Earnings Per Share, Diluted	$ (0.19)	$ 0.19
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,081,014	6,076,389
Common Stock To Be Issued [Member]
NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,356,598	283,777

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NOTE A - SUMMARY OF ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property and Equipment	12 Months Ended
	Apr. 30, 2015
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Website Costs [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful Lives	5 years

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NOTE B - PROPERTY AND EQUIPMENT

12 Months Ended

Apr. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE B - PROPERTY AND EQUIPMENT

Major classes of property and equipment at April 30, 2015 and 2014 consist of the followings:

	2015			2014
Computer equipment, software and furniture	$	213,262		$	209,341
Less: accumulated depreciation		(203,215	)		(199,367	)
Net property and equipment	$	10,047		$	9,974

Depreciation expense related to property and equipment was $3,848, and $4,572 for the years ended April 30, 2015 and 2014, respectively.

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NOTE B - PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization	$ 3,848	$ 4,572

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NOTE D - NOTES PAYABLE (Details)	12 Months Ended
	Apr. 30, 2015 USD ($) $ / shares shares	Apr. 30, 2014 USD ($)	Apr. 30, 2013 USD ($)	Apr. 30, 2012 USD ($)
NOTE D - NOTES PAYABLE (Details) [Line Items]
Amortization of Debt Discount (Premium)	$ 1,013,934	$ 417,291
Derivative, Gain (Loss) on Derivative, Net	(318,372)	(166,932)
Note Convertible at Holder's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 1,163,369
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Apr. 30, 2014
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.495
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 663,403
Note Convertible at Holder's Option #2-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,500
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Debt Instrument, Maturity Date	Jun. 30, 2015
Note Convertible at Holder's Option #2-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 40,000
Note Convertible at Holder's Option #2 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 85,465
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	4,753,694
Debt Instrument, Default Interest Rate, Percentage	18.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #3-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Maturity Date	May 27, 2014
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.59
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	5,000
Note Convertible at Holder's Option #3-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Maturity Date	Mar. 20, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.59
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	10,000
Convertible at the Holder's Options #3 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature		50,000
Debt Instrument, Convertible, Terms of Conversion Feature	If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.
Note Convertible at Holder's Option #4 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 118,250
Debt Instrument, Maturity Date	Aug. 15, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.25
Debt Instrument, Convertible, Beneficial Conversion Feature				$ 5,340
Number of Notes	7
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	15.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	20.00%
Accrued Interest, Monthly Compounding Interest Rate	8.00%
Note Convertible at Holder's Option #4 [Member] | Convertible Notes Payable [Member] | Past Due Monthly Penalty [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Stock Issued During Period, Shares, Other (in Shares) | shares	667
Note Convertible at Holder's Option #5 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 106,250
Debt Instrument, Maturity Date	Aug. 15, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.25
Debt Instrument, Convertible, Beneficial Conversion Feature				$ 6,120
Number of Notes	3
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	20.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	25.00%
Accrued Interest, Monthly Compounding Interest Rate	8.00%
Note Convertible at Holder's Option #6-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 59,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 29,333
Debt Instrument, Convertible, Terms of Conversion Feature	The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Note Convertible at Holder's Option #6-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Maturity Date	Feb. 25, 2017
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 21,079
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	2,400,000
Debt Instrument, Convertible, Terms of Conversion Feature	The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Note Convertible at Holder's Option #7-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Maturity Date	Jan. 28, 2015
Note Convertible at Holder's Option #7-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Note Convertible at Holder's Option #7-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Note Convertible at Holder's Option #7 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature		59,437
Debt Instrument, Convertible, Terms of Conversion Feature	The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding.
Debt Instrument, Description	This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.
Debt Instrument, Payment Terms	The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.
Debt Instrument, Maturity Date, Description	The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.
Note Convertible at Holder's Option #7-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 13,900
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Maturity Date	Jun. 01, 2014
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	8,750,000
Debt Instrument, Convertible, Terms of Conversion Feature	Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company.
Convertible Notes Payable, Current	$ 490
Note Convertible at Holder's Option #8-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Apr. 27, 2015
Number of Notes	25,000
Note Convertible at Holder's Option #8-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Note Convertible at Holder's Option #8-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 57,200
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Note Convertible at Holder's Option #8 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 100,699
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	5,106,571
Debt Instrument, Default Interest Rate, Percentage	15.00%
Debt Instrument, Convertible, Terms of Conversion Feature	convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion.
Note Convertible at Holder's Option #9-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Aug. 16, 2015
Note Convertible at Holder's Option #9-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Note Convertible at Holder's Option #9 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 32,904
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	1,735,000
Debt Instrument, Default Interest Rate, Percentage	22.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #10 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 44,770
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Convertible, Beneficial Conversion Feature		$ 35,816
Debt Instrument, Default Interest Rate, Percentage	18.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.
Note Convertible at Holder's Option #11 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 48,015
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	2,000,000
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #12-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,000
Debt Instrument, Maturity Date	May 24, 2015
Note Convertible at Holder's Option #12 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 220,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 105,364
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	7,000,000
Debt Instrument, Convertible, Terms of Conversion Feature	The notes are convertible at the note holder’s option at a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #12-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,000
Note Convertible at Holder's Option #13-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 55,125
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Dec. 09, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 55,000
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 42,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Apr. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 50,000
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #13 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	7,094,000
Note Convertible at Holder's Option #13-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 52,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Dec. 09, 2015
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 52,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #14 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 39,400
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #15-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #15-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 35,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 50,000
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #15 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	7,094,000
Note Convertible at Holder's Option #15-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 22,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #15-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,250
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #16-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #16-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 42,900
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 50,000
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #16 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	7,094,000
Note Convertible at Holder's Option #16-C [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 22,500
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 22,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #16-D [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 27,250
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Mar. 16, 2016
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 27,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Holder's Option #17-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Nov. 25, 2015
Note Convertible at Holder's Options #17-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 38,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Note Convertible at Holder's Option #17 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 51,414
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	5,650,000
Debt Instrument, Default Interest Rate, Percentage	22.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).
Note Convertible at Holder's Option #18 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 45,000
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	4,999,000
Debt Instrument, Default Interest Rate, Percentage	22.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The notes are convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Number of Notes	2
Note Convertible at Holder's Option #18-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Apr. 14, 2016
Note Convertible at Holder's Option #18-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Note Convertible at Holder's Option #19 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 19,723
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	1,529,000
Debt Instrument, Default Interest Rate, Percentage	22.00%
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Note Convertible at Company's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	37,500
Debt Instrument, Convertible, Terms of Conversion Feature	The note is convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days.
Debt Default, Short-term Debt, Description of Violation or Event of Default	If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.
Convertible Notes with Interest Only, Convertible at Company's Option #1 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000
Debt Instrument, Interest Rate, Stated Percentage	22.00%
Debt Instrument, Maturity Date	May 31, 2015
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 1.50
Convertible Notes with Interest Only, Convertible at Company's Option #2 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Maturity Date	Oct. 31, 2013
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 1.50
Debt Instrument, Monthly Penalty Shares (in Shares) | shares	3,333
Convertible Notes with Interest Only, Convertible at Company's Option #3 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 210,000
Debt Instrument, Interest Rate, Stated Percentage	12.462%
Debt Instrument, Maturity Date	Apr. 30, 2014
Debt Instrument, Payment Terms	Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period
Convertible Notes with Interest Only, Convertible at Company's Option #4 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Maturity Date	Feb. 02, 2016
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.15
Stock Issued During Period, Shares, Other (in Shares) | shares	110,000
Debt Instrument, Monthly Penalty Shares (in Shares) | shares	5,000
Convertible Notes with Interest Only, Convertible at Company's Option #5 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 15,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Maturity Date	May 31, 2015
Stock Issued During Period, Shares, Other (in Shares) | shares	5,000
Note Payable #1 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Maturity Date	May 31, 2015
Stock Issued During Period, Shares, Other (in Shares) | shares	1,000
Note Payable #2 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 75,000
Debt Instrument, Interest Rate, Stated Percentage	20.00%
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	2,519,597
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	106,700
Stock Issued During Period, Shares, Other (in Shares) | shares	417,891
Note Payable #5 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Maturity Date	Sep. 18, 2015
Note Payable #5 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	20.00%
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | shares	1,672,241
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	272,331
Note Payable #3 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Dec. 31, 2014
Debt Instrument, Payment Terms	The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid
Note Payable #4-A [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 100,000
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Maturity Date	Jul. 31, 2016
Debt Instrument, Collateral Amount	$ 76,610
Note Payable #4-B [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Maturity Date	Apr. 20, 2016
Note Payable #4-C [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Maturity Date	Apr. 22, 2016
Note Payable #6 [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Maturity Date	Apr. 30, 2015
Note Payable #6 [Member] | Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 33,500
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Payment Terms	The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid.
Debt Instrument, Final Tranche [Member] | Note Convertible at Holder's Option #6-A [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 165,000
Debt Instrument, Tranche One [Member] | Note Convertible at Holder's Option #6-B [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 165,000

XML

NOTE J - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Number of Shares, Options Outstanding	360,001	379,667
Weighted Average Price per Share, Options Outstanding	$ 2.41	$ 3.20
Number of Shares, Options Granted	0	0
Weighted Average Price per Share, Options Granted	$ 0	$ 0
Number of Shares, Options Exercised	(32,666)	0
Weighted Average Price per Share, Options Exercised	$ (2.37)	$ 0
Number of Shares, Options Canceled or Expired	0	(19,666)
Weighted Average Price per Share, Options Canceled or Expired	$ 0	$ (20.05)
Number of Shares, Options Outstanding	327,335	360,001
Weighted Average Price per Share, Options Outstanding	$ 0.50	$ 2.41

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Current Assets
Cash and cash equivalents	$ 14,034	$ 70,456
Accounts receivable	10	182,343
Other current assets	5,706	51,364
Total Current Assets	19,750	304,163
Property and equipment, net of accumulated depreciation and amortization of $203,215 and $199,367, respectively (NOTE B)	10,047	9,974
Goodwill	10,000	10,000
Other assets	9,628	9,628
Deposits	79,776	40,568
Total Long Term Assets	109,451	70,170
Total assets from continuing operations	129,201	374,333
ASSETS FROM DISCONTINUED OPERATIONS (NOTE C)	13,955	90,024
Total assets	143,156	464,357
Current Liabilities
Accounts payable and accrued expenses	1,382,598	1,259,368
Current portion notes payable net of beneficial conversion feature of $762,426 and $296,384, respectively (NOTE D)	1,374,786	821,511
Derivative liabilities	1,605,535	601,000
Total Current Liabilities	4,362,919	2,681,879
Long term portion of notes payable	1,263,369	1,198,368
Loans payable-related parties (NOTE E)	385,853	385,853
Total Long Term Liabilities	1,649,222	1,584,221
Total liabilities from continuing operations	6,012,141	4,266,100
LIABILITIES FROM DISCONTINUED OPERATIONS (NOTE C)	70,117	130,420
Total liabilities	6,082,258	4,396,520
Deficit:
Common stock, $0.001 par value; 750,000,000 shares authorized, 43,238,320 and 20,987,353 shares issued and outstanding, respectively	43,238	20,987
Common stock to be issued 2,356,598 and 283,777, respectively	2,356	284
Preferred stock B to be issued, 0 and 72.48 shares, respectively	0	72
Additional paid-in-capital	42,528,909	41,738,613
Subscriptions receivable	0	(2,118,309)
Accumulated deficit	(49,178,453)	(44,257,306)
Total deficiency in stockholders' equity	(6,591,450)	(4,601,588)
Noncontrolling interest	652,348	669,424
Total Deficit	(5,939,102)	(3,932,164)
Total Liabilities and Deficit	143,156	464,357
Series A Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	12,500	12,500
Series B Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	0	1,570
Series C Preferred Stock [Member]
Deficit:
Preferred shares, value, issued	$ 0	$ 0

XML

NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details)	Apr. 30, 2015 USD ($)
Director [Member]
NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details) [Line Items]
Due to Related Parties, Noncurrent	$ 372,093
Officer [Member]
NOTE E - LOANS PAYABLE TO RELATED PARTIES (Details) [Line Items]
Due to Related Parties, Noncurrent	$ 13,760

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (4,921,148)	$ (3,265,648)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments	(1)	(75)
Dividend on preferred stock	0	156,569
Loss allocable to non-controlling interest	(17,076)	(53,767)
Depreciation and amortization	3,848	4,572
Change in fair value of derivative liabilities	318,372	166,932
Amortization of debt discount	1,013,934	417,291
Equity based finance cost	181,912	113,260
Equity based compensation	430,402	398,149
(Increase) decrease in operating assets:
Accounts receivable	(10,678)	(28,496)
Prepaid expenses and other assets	45,659	(3,083)
Deposits	(39,209)	0
Increase (decrease) in operating liabilities:
Accounts and accrued expenses	331,081	217,692
Net cash used in operating activities	(2,662,903)	(1,876,605)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(3,921)	0
Net cash (used in) investing activities	(3,921)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from sale of common stock	978,866	1,298,977
Net proceeds from convertible notes	2,298,770	966,433
Net payments on convertible notes	(778,000)	(309,500)
Net proceeds from other notes	95,000	65,000
Net payment on other notes	0	(65,000)
Net payment on related notes	0	(7,407)
Net cash provided by financing activities	2,594,636	1,948,503
Cash flows from discontinued operations:
Cash provided by (used in) operating activities of discontinued operations	15,766	(39,655)
Net Cash flow from discontinued operation	15,766	(39,655)
Net Decrease in cash	(56,422)	32,243
Unrestricted cash and cash equivalents, beginning of period	70,456	38,213
Unrestricted cash and cash equivalents , end of period	14,034	70,456
Cash paid for:
Interest	109,654	11,438
Income taxes	$ 1,244	$ 5,600

XML

NOTE M - SUBSEQUENT EVENTS (Details) - USD ($)		3 Months Ended	12 Months Ended
	Jul. 29, 2015	Aug. 12, 2015	Apr. 30, 2015	Apr. 30, 2014
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Value, New Issues			$ 978,866	$ 1,298,977
Stock Issued During Period, Value, Other			181,912	$ 113,260
Debt Conversion, Converted Instrument, Shares Issued		22,049,916		1,888,804
Debt Conversion, Original Debt, Amount				$ 776,686
Repayments of Convertible Debt			$ 778,000	$ 309,500
Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues		760,456
Stock Issued During Period, Value, New Issues		$ 20,000
Stock Issued During Period, Shares, Other		391,059
Stock Issued During Period, Value, Other		$ 11,078
Stock Issued During Period, Shares, Issued for Services		2,846,000
Stock Issued During Period, Value, Issued for Services		$ 82,080
Stockholders' Equity, Other Shares		2,024,371
Stock Issued During Period, Shares, Conversion of Convertible Securities		340,000
Stock Issued During Period, Value, Conversion of Convertible Securities		$ 14,500
Debt Conversion, Converted Instrument, Shares Issued		374,152
Debt Conversion, Original Debt, Amount		$ 35,056
Repayments of Convertible Debt		173,000
Convertible Note #1 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 33,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Feb. 21, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		22.00%
Convertible Note #2 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 38,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Apr. 17, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		22.00%
Convertible Note #3 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 55,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Apr. 30, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest trading price for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		24.00%
Convertible Note #4 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 100,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Apr. 30, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest trading price for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		24.00%
Convertible Note #5 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 55,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		May 27, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion
Debt Instrument, Default Interest Rate, Percentage		15.00%
Convertible Note #6 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Repayments of Convertible Debt	$ 25,000
Debt Instrument, Face Amount		$ 58,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Jul. 08, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion
Debt Instrument, Default Interest Rate, Percentage		15.00%
Convertible Note #7 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 31,900
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 28, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at a 42% discount from the lowest closing price for the twenty trading days prior to conversion
Debt Instrument, Default Interest Rate, Percentage		15.00%
Convertible Note #8 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 27,500
Debt Instrument, Interest Rate, Stated Percentage		5.00%
Debt Instrument, Maturity Date		Jun. 15, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company
Debt Instrument, Payment Terms		The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.
Debt Instrument, Maturity Date, Description		The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable
Convertible Note #9 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Jul. 19, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		24.00%
Convertible Note #10 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Maturity Date		Jun. 02, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”)
Debt Instrument, Default Interest Rate, Percentage		24.00%
Convertible Note #11 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jun. 29, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion
Debt Instrument, Description		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #12 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 10,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jun. 29, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion
Debt Instrument, Description		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #13 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 5,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 20, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion
Debt Instrument, Description		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #14 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 21,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 22, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion
Debt Instrument, Description		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note.
Convertible Note #15 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		May 05, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #16 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 32,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		May 13, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #17 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		May 18, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #18 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 20,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		May 28, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #19 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		May 29, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #20 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 50,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jun. 24, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #21 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 22,500
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 08, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #22 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 20,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 14, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Convertible Note #23 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 25,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%
Debt Instrument, Maturity Date		Jul. 31, 2016
Debt Instrument, Convertible, Terms of Conversion Feature		As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note
Debt Instrument, Tranche One [Member] | Convertible Note #8 [Member] | Convertible Debt [Member] | Subsequent Event [Member]
NOTE M - SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount		$ 165,000

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Abstract]
Revenues	$ 41,714	$ 122,373
Net loss	$ (246,537)	$ (280,441)

XML

NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2015

Estimated Useful Lives [Member]

NOTE A - SUMMARY OF ACCOUNTING POLICIES (Tables) [Line Items]

Property, Plant and Equipment [Table Text Block]

Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

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NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Property Subject to or Available for Operating Lease - Consumer Lease and Loan Lines of Business [Member] - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Property Subject to or Available for Operating Lease [Line Items]
Motorcycles and other vehicles	$ 22,086	$ 60,686
Less: accumulated depreciation	(13,455)	(5,016)
Motorcycles and other vehicles, net of accumulated depreciation	8,631	55,670
Less: estimated reserve for residual values	(2,437)	(4,252)
Motorcycles and other vehicles under operating leases, net	$ 6,194	$ 51,418

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NOTE C - DISCONTINUED OPERATIONS (Tables) - Consumer Lease and Loan Lines of Business [Member]

12 Months Ended

Apr. 30, 2015

NOTE C - DISCONTINUED OPERATIONS (Tables) [Line Items]

Disposal Groups, Including Discontinued Operations [Table Text Block]

The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. The following table presents summarized operating results for those discontinued operations.

	Fiscal Year Ended
	April 30,			April 30,
	2015			2014
Revenues	$	41,714		$	122,373
Net loss	$	(246,537	)	$	(280,441	)

Schedule of Property Subject to or Available for Operating Lease [Table Text Block]

Motorcycles and other vehicles under operating leases at April 30, 2015 and 2014 consist of the following:

	2015			2014
Motorcycles and other vehicles	$	22,086		$	60,686
Less: accumulated depreciation		(13,455	)		(5,016	)
Motorcycles and other vehicles, net of accumulated depreciation		8,631			55,670
Less: estimated reserve for residual values		(2,437	)		(4,252	)
Motorcycles and other vehicles under operating leases, net	$	6,194		$	51,418

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The following is a schedule by years of minimum future rentals (excluding residual values of $27,460) on non-cancelable operating leases as of April 30, 2015:

Year ending April 30,
2016	$	27,460
2017		-
Total	$	27,460

Schedule of Short-term Debt [Table Text Block]

	2015		2014
Secured, subordinated  individual lender (a)	$	58,037	$	117,508
Secured, subordinated individual lender (b)		12,080		12,912
Total	$	70,117	$	130,420

(a)   The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at April 30, 2015 is 15.29%.

(b)   On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases (“Purchased Portfolio”) for a total purchase price of $100,000.  The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of April 30, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 (“Senior Secured Note”) in exchange for $100,000 from the holder.  Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009, which was extended to August 15, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2013, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company’s restricted common stock.

Schedule of Maturities of Long-term Debt [Table Text Block]

At April 30, 2015, the notes payable mature as follows:

Year ended April 30,	Amount
2016	$	70,117
2017		-
Total Due	$	70,117

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NOTE A - SUMMARY OF ACCOUNTING POLICIES

12 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE A - SUMMARY OF ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows.

Business and Basis of Presentation

Since May 2010, the Company has concentrated its efforts on developing and marketing vehicle history reports, over the internet, and mobile apps for vehicle dealers and other market segments. Historically, the Company had been in the business as an originator and indirect lender for consumer retail installment loans and consumer lease financing for the purchase or lease of new and used motorcycles. These consumer financing products were discontinued during the fiscal year ending April 30, 2013 (see Discontinued Operations).  The Company continues to offer a leasing program, on a pass through basis, for municipalities.  

Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented.

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized on a cash basis. Revenues from History Reports are recognized on both a cash basis and a deferral basis depending on the nature of the transaction.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value.

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Website Development Costs

The Company recognizes website development costs in accordance with ASC 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website.  Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life.  Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Income Taxes" (“ASC 740-10”).  Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be removed or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions.  As a result of implementing ASC 740-10, there has been no adjustment to the Company’s consolidated financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015.

Fair Value Measurements

The Company adopted ASC 820,” Fair Value Measurements”  (“ASC 820”), establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets.  Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  For some products or in certain market conditions, observable inputs may not always be available.

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets”  (“ASC 360-10”), long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.  Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information” (“ASC 280-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2013, the Company has discontinued segment reporting.

Stock Based Compensation

The Company adopted ASC 718-10 “Accounting for Stock Compensation” (“ASC 718-10”) which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations.  The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards.  The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables.  These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the years ended April 30, 2015 and 2014, the Company’s continuing operations incurred advertising costs of $7,519 and $39,519, respectively.

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share” for calculating the basic and diluted loss per share.  The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding.  Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.18 and $0.19 for the year ended April 30, 2015, respectively, and $0.16 and $0.19 for the year ended April 30, 2014, respectively. At April 30, 2015 and 2014, 20,081,014 (including 2,356,598 shares to be issued included on the balance sheet) and 6,076,389 (including 283,777 shares to be issued included on the balance sheet)  potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of April 30, 2015, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.  Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”.

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Accumulated depreciation and amortization (in Dollars)	$ 203,215	$ 199,367
Beneficial Conversion Feature (in Dollars)	$ 762,426	$ 296,384
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	10,000,000	10,000,000
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	43,238,320	20,987,353
Common stock, shares outstanding	43,238,320	20,987,353
Common stock to be issued	2,356,598	283,777
Series A Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 100	$ 100
Preferred stock, shares designated	35,850	35,850
Preferred stock, shares issued	125	125
Preferred stock, shares outstanding	125	125
Series B Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	1,000	1,000
Preferred stock, shares issued	0	157
Preferred stock, shares outstanding	0	157
Preferred stock, redemption value (in Dollars)	$ 10,000	$ 10,000
Preferred Stock, Shares to be Issued	0	72.48
Series C Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares designated	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, redemption value (in Dollars)	$ 10	$ 10

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NOTE K - COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE K - COMMITMENTS AND CONTINGENCIES

Operating Lease Commitments

Our executive offices are located at 370 Lexington Avenue, Suite 1806, New York, NY 10017. We have an agreement for use of office space at this location under a sub-lease expiring on June 29, 2015. The office space contains approximately 2,800 square feet.    For the year ended April 30, 2015, the rent was $185,213. For the year ending April 30, 2016, the rent is $229,830 and for the remaining two months of our sub-lease ending June 30, 2016 the rent is $38,305.

Employment and Consulting Agreements

The Company does not have employment agreements with any of its non-executive employees.

The Company has consulting agreements with outside contractors to provide marketing and financial advisory services. The agreements are generally for a term of 12 months from inception and renewable automatically from year to year unless either the Company or consultant terminates such engagement by written notice.

The Company entered into an employment agreement, dated as of July 12, 2004, with Anthony L. Havens, our Chief Executive Officer. The employment is for a term of five years. The employment term is to be automatically extended for one five-year period, and additional one-year periods, unless written notice is given three months prior to the expiration of any such term that the term will not be extended. The agreement was automatically extended for one year on July 12, 2015.  He is entitled to six weeks of paid vacation per year, and health insurance, short-term and long-term disability insurance, retirement benefits, fringe benefits, and other employee benefits on the same basis as is generally made available to other senior executives. He did not receive any equity compensation as part of this agreement.

Litigation

As at April 30, 2015, we were not a party to any material pending legal proceeding except as stated below.  From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.

On December 18, 2012, the Company filed suit in the United States District Court for the Southern District Court of New York against a former credit provider. The suit sought damages arising out of the credit provider’s termination of the Company’s credit line in 2009. The defendant counterclaimed for recovery of legal fees under an indemnification clause contained in one of the loan documents. The matter proceeded to trial in May 2015, and the Court thereafter issued a decision finding in favor of the defendant on the Company’s claims. The defendant now seeks recovery of approximately $2 million in legal fees, relying on the contractual indemnity clause. The Company believes that it has good and valid defenses to the claim, including that the indemnification clause only applies to third party claims; however, there can be no assurance that the Court will agree with the Company’s arguments. The defendant’s motion is currently scheduled to be heard in September 2015. The Company is currently considering an appeal of the Court's decision on the Company's claims.

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Document And Entity Information - USD ($)	12 Months Ended
	Apr. 30, 2015	Jul. 27, 2015	Oct. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	SPARTA COMMERCIAL SERVICES, INC.
Document Type	10-K
Current Fiscal Year End Date	--04-30
Entity Common Stock, Shares Outstanding		68,319,244
Entity Public Float			$ 6,686,869
Amendment Flag	false
Entity Central Index Key	0000318299
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Apr. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

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NOTE L - NON-CASH FINANCIAL INFORMATION

12 Months Ended

Apr. 30, 2015

Disclosure Text Block Supplement [Abstract]

Additional Financial Information Disclosure [Text Block]

NOTE L - NON-CASH FINANCIAL INFORMATION

Subsequent to April 30, 2015 the Company:

During the year ended April 30, 2015, the Company:

· Issued 167,260 shares of common stock that were classified as to be issued at April 30, 2014.

· Issued 1,353,830 shares of common stock (of which, 51,000 shares remained to be issued at April 30, 2015) valued at $181,912 pursuant to the terms of various notes.

· Derivative liability reclassification of $768,174.

· Issued 9,883,187 shares of common stock (of which 2,063,350 shares remained to be issued at April 30, 2015) for conversion of notes, interest, and accounts payable of $764,942.

During the year ended April 30, 2014, the Company:

· Issued 567,240 shares of common stock that were classified as to be issued at April 30, 2013.

· Issued 158,766 shares of common stock valued at $113, 260 pursuant to the terms of various notes.

· Derivative liability reclassification of $518,379.

· Issued 1,888,804 shares for conversion of notes, interest, and accounts payable of $776,686. 

· Issued 20,000 shares of common stock, valued at $6,200, to a note holder as inducement.

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CONSOLIDATED STATEMENT OF LOSSES - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Revenue
Information technology	$ 604,842	$ 476,022
Cost of goods sold	192,112	154,961
Gross profit	412,730	321,061
Operating expenses:
General and administrative	3,108,073	2,240,154
Depreciation and amortization	3,848	4,572
Total operating expenses	3,111,921	2,244,726
Loss from operations	(2,699,191)	(1,923,665)
Other (income) expense:
Other income	(22,182)	(77,190)
Interest expense and financing cost, net	499,618	337,688
Non-cash financing costs	181,994	113,260
Amortization of debt discount	1,013,934	417,291
(Gain) loss in changes in fair value of derivative liability	318,372	166,932
Total other expense	1,991,736	957,981
Net loss from continuing operations	(4,690,926)	(2,881,646)
Net loss from discontinued operations	(246,537)	(280,441)
Net Loss	(4,937,464)	(3,162,087)
Net loss attributed to Noncontrolling interest	17,076	53,767
Preferred dividend	(758)	(157,328)
Net loss attributed to common stockholders	$ (4,921,148)	$ (3,265,648)
Basic and diluted loss per share (in Dollars per share)	$ (0.18)	$ (0.16)
Basic and diluted loss per share attributed to common stockholders (in Dollars per share)	$ (0.19)	$ (0.19)
Weighted average shares outstanding (in Shares)	26,440,126	17,637,942

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NOTE F - EQUITY INSTRUMENTS

12 Months Ended

Apr. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE F - EQUITY INSTRUMENTS

The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share, 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value per share, and 200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value and 750,000,000 shares of common stock with $0.001 par value per share.  The Company had 125 and 125 shares of Series A preferred stock issued and outstanding as of April 30, 2015 and 2014, respectively.  The Company had 0 and 157 shares of Series B preferred stock issued and outstanding as of April 30, 2015 and 2014 and 0 and 72.45 shares to be issued in lieu of cash dividends on the Series B preferred stock shares, respectively.  The Company had 0 and 0 shares of Series C preferred stock issued and outstanding as of April 30, 2015 and 2014, respectively.  The Company had 43,238,320 and 20,987,353 shares of common stock issued and outstanding and shares committed to be issued of 4,609,828 and 283,777 as of April 30, 2015 and 2014, respectively.

Preferred Stock Series A.

The Series A preferred stock has a stated value of $100 per share, carries a 6% annual cumulative dividend, payable semi-annually in arrears, and is convertible into shares of common stock at the rate of one preferred share into 8.55 shares of common stock.  There were no transactions of the Series A Preferred Stock during the year ended April 30, 2015.

Preferred Stock Series B

On July 24, 2009, the Company designated 1,000 shares as Series B Preferred Stock.  The Series B Preferred Stock, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank senior to the Company’s common stock and any other class or series of preferred stock, and junior to all of the Company’s existing and future indebtedness.  The Series B Preferred Stock accrues dividends at an annual rate of 10%.  Accrued dividends are payable upon redemption of the Series B Preferred Stock.  The Company’s common stock may not be redeemed while shares of Series B Preferred Stock are outstanding.  The Series B Preferred Stock certificate of designations provides that, without the approval of a majority of the shares of Series B Preferred Stock, the Company cannot authorize or create any class of stock ranking as to distribution of assets upon a liquidation senior to or otherwise pari passu with the Series B Preferred Stock, liquidate, dissolve or wind-up the Company’s business and affairs, or effect certain fundamental corporate transactions, or otherwise alter or change adversely the powers, preferences or rights given to the Series B Preferred Stock.  The Series B Preferred Stock have a liquidation preference per share equal to the original price per share thereof plus all accrued dividends thereon upon liquidation, including upon consummation of certain fundamental corporate transactions, dissolution, or winding up of the Company’s business.  The shares of Series B Preferred Stock are redeemable at the Company’s option on or after the fifth anniversary of the date of its issuance.  During the year ended April 30, 2015, pursuant to the terms of the Series B Preferred Stock, the Company redeemed and returned to treasury all shares of Series B Preferred Stock and all shares of to be issued Series B Preferred Stock by exchanging the shares for $2,118,309 of note subscription receivables and $193,011 of interest receivable thereon. Subsequent to this redemption, there were no shares of Series B Preferred Stock outstanding and there were no shares of Series B Preferred Stock payable.

Preferred Stock Series C

In November 2009, the Company authorized a new series of 200,000 shares of preferred stock designated as Series C Convertible Preferred Stock, each share having a par value of $0.001 per share.  The Series C Preferred Stock shall, upon liquidation, winding-up or dissolution, rank: (a) senior to the Company's common stock and any other class or series of preferred stock of the Company which by their terms are junior to the Series C Preferred Stock (collectively, together with any warrants, rights, calls or options exercisable for or convertible into such Preferred Stock, the “Junior Shares”); (b) junior to all existing and future indebtedness of the Company; and (c) junior to the Company's Series A and Series B Preferred Stock.  The Series C Preferred Stock is not entitled to receive any dividends, has a liquidation value of $10.00 per share, redeemable at the Company’s option at $10.00 per share, and is convertible at the option of the holder into shares of common stock as follows: the number of such shares of common stock to be received for each share of Series C Preferred Stock so converted shall be determined by (A) dividing the number of shares of Series C Preferred Stock to be converted by the weighted average closing price per share of the Company's common stock for the ten (10) trading days immediately preceding the date on which the Company agrees to issue shares of Series C Preferred Stock to such holder multiplied by (B) the Series C liquidation value. There were zero and zero shares issued and outstanding at April 30, 2015 and 2014, respectively.

Common Stock

During the fiscal years ended April 30, 2015 and 2014, the Company expensed $430,402 and $398,149, respectively, for non-cash charges related to stock and option compensation expense.

During the fiscal year ended April 30, 2015, the Company:

●  sold 9,655,415 shares of common stock to eighteen accredited investors for $978,866,

●  issued 9,487,478 shares of common stock upon the conversion of convertible notes and accrued interest in the amount of $684,788, of which 122,451 shares were classified as to be issued at April 30, 2014 and 1,963,350 shares remained to be issued at April 30, 2015,

●  issued 1,353,830 shares of common stock with 51,000 shares of common stock to be issued at April 30, 2015 valued at $181,912 pursuant to terms of various notes of which 24,809 shares were classified as to be issued at April 30, 2014,

● issued 1,234,959 shares of common stock valued at $352,942 pursuant to consulting agreements, of which 60,000 shares remained to be issued,

● issued 538,160 shares of common stock in payment of $80,154 in accounts payable of which 20,000 shares were classified as to be issued at April 30, 2014, and 100,000 were classified as to be issued at April 30, 2015.

● issued 31,780 shares of common stock valued at $77,460 to three employees in exchange for their outstanding stock purchase options.

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NOTE E - LOANS PAYABLE TO RELATED PARTIES

12 Months Ended

Apr. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE E - LOANS PAYABLE TO RELATED PARTIES

The Company has outstanding, non-interest bearing notes totaling $372,093 to a Director and $13,760 to an officer and Director as of April 30, 2015.

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NOTE B - PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Apr. 30, 2015

Property and Equipment [Member]

NOTE B - PROPERTY AND EQUIPMENT (Tables) [Line Items]

Property, Plant and Equipment [Table Text Block]

Major classes of property and equipment at April 30, 2015 and 2014 consist of the followings:

	2015			2014
Computer equipment, software and furniture	$	213,262		$	209,341
Less: accumulated depreciation		(203,215	)		(199,367	)
Net property and equipment	$	10,047		$	9,974

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NOTE M - SUBSEQUENT EVENTS

12 Months Ended

Apr. 30, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE M - SUBSEQUENT EVENTS

Subsequent to April 30, 2015 the Company:

·   Sold 760,456 shares of restricted common stock to an accredited investor for $20,000.

·   Issued 391,059 shares of restricted common stock valued at $11,078 to two six-note holders pursuant to the terms of their notes.

·   Issued 2,846,000 shares of restricted common stock valued at $82,080 to two consultants.

·   Issued 2,024,371 shares restricted common stock that had been classified as to be issued at April 30, 2015.

·   Issued 340,000 shares of common stock in partial settlement of $14,500 of accounts payable.

·   Issued 22,049,916 shares of common stock to ten note holders upon conversion of $374,152 of notes payable.

·   Issued 35,056 shares of common stock to three employees pursuant to vesting terms of prior stock grant awards.

·   Repaid $173,000 of convertible notes.

·   Borrowed a $33,000, 8% note due February 21, 2016 and a $38,000 8% note due April 17, 2016. Both notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the note is paid in full.

·   Borrowed a $55,000, 8% note due April 30, 2016 and a $100,000 8% note due April 30, 2016. Both notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest trading price for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the note is paid in full.

·   Borrowed a $55,000 8% convertible note due May 27, 2016, and a $58,000 8% convertible note due July 8, 2016 of which $25,000 was due to be paid July 29, 2015.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full.

·   Borrowed a $31,900 10% convertible note due July 28, 2016. The note is convertible at a 42% discount from the lowest closing price for the twenty trading days prior to conversion. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full.

·   Borrowed $27,500, (the initial tranche of a $165,000 5% convertible note) due June 15, 2016. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company.

·   Borrowed a $22,500, 8% convertible note due July 19, 2016. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the notes are paid in full.

·   Borrowed a $50,000, 8% convertible note due June 2, 2016. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing bid price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). In the event the notes are not paid when due, the interest rate is increased to twenty-four percent until the notes are paid in full.

·   Borrowed from four accredited investors, four one-year notes at 10% interest as follows: $25,000 due June 29, 2016, $10,000 due June 29, 2016, $5,000 due July 20, 2016, and $21,000 due July 22, 2016. As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note. The notes are convertible at $0.30 per share at the Company’s option if, and only if the closing price of Company’s common stock meets or exceeds $0.30 per share for ten consecutive trading days prior to any conversion.

·   Borrowed from three accredited investors, nine one-year notes at 10% interest as follows: $50,000 due May 5, 2016, $32,000 due May 13, 2016, $50,000 due May 18, 2016, $20,000 due May 28, 2016, $25,000 due May 29, 2016, $50,000 due June 24, 2016, $22,500 due July 8, 2016, $20,000 due July 14, 2016, and $25,000 Due July 31, 2016. As inducement for the notes, the Company agreed to issue such number of shares of the Company’s common stock that equaled two-and-one-half times the amount of the note.

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NOTE I - INCOME TAXES

12 Months Ended

Apr. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE I - INCOME TAXES

At April 30, 2015 and 2014, the Company has available for federal income tax purposes a net operating loss carry forward of approximately $36,891,436 and $32,060,454, respectively, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that, the benefits will not be realized. Also, due to change in the control after reverse acquisition of Sparta Commercial Services, Inc., the Company's past accumulated losses to be carried forward may be limited.

Components of deferred tax assets as of April 30, 2015 and 2014 are as follows:

	April 30,
	2015			2014
Noncurrent:
Net operating loss carry forward	$	10,329,233		$	8,976,606
Valuation allowance		(10,329,233	)		(8,976,606	)
Net deferred tax asset	$	-		$	-

The valuation allowance and increased by $1,352,627 and $908,514 during the years ended April 30, 2015 and 2014, respectively.

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NOTE N - GOING CONCERN MATTERS (Details) - USD ($)	12 Months Ended		163 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2015	Apr. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net Income (Loss) Attributable to Parent	$ (4,921,148)	$ (3,265,648)	$ (49,178,453)
Stockholders' Equity Attributable to Parent	$ (5,939,102)	$ (3,932,164)	$ (5,939,102)	$ (3,874,694)

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NOTE G - NONCONTROLLING INTEREST

12 Months Ended

Apr. 30, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

NOTE G – NON-CONTROLLING INTEREST

For the fiscal years ended April 30, 2015 and 2014, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2013	$	723,191
Noncontrolling interest’s share of losses		(53,767	)
Balance at April 30, 2014	$	669,424
Noncontrolling interest’s share of losses		(17,076	)
Balance at April 30, 2015	$	652,348

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NOTE H - FAIR VALUE MEASUREMENTS

12 Months Ended

Apr. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE H – FAIR VALUE MEASUREMENTS

The Company follows the guidance established pursuant to ASC 820, which established a framework for measuring fair value, and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The table below summarizes the fair values of our financial liabilities that are required to be carried on a recurring basis as of April 30, 2015:

	Fair Value at		Fair Value Measurement Using
	April 30,
	2015		Level 1		Level 2		Level 3
Derivative liability	$	1,605,535		-		-	$	1,605,535
Derivative liability	$	1,605,535		-		-	$	1,605,535

The following is a description of the valuation methodologies used for these items:

Derivative liability — these instruments consist of certain variable conversion features related to notes payable obligations and certain outstanding warrants. These instruments were valued using pricing models, which incorporate the Company’s stock price, volatility, U.S. risk free rate, dividend rate and estimated life.

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NOTE J - STOCK OPTIONS AND WARRANTS

12 Months Ended

Apr. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE J - STOCK OPTIONS AND WARRANTS

Options:

On April 29, 2005, the Company issued to the Chief Operating Officer non-qualified stock options to purchase 11,667 shares of the Company's common stock, subject to vesting conditions, at an exercise price of $45.375 per share. The options have a five-year life from vesting. All of these options have expired.

During the year ended April 30, 2007, the Company granted options to purchase an aggregate of 57,334 shares of common stock to one employee and one Director.  53,334 of the options are exercisable at a price of $14.355 per share and 4,000 are exercisable at $9.00 per share. At grant date, 13,334 options vested immediately. The vested and unvested options were initially valued at $636,433 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 131%; (3) risk-free interest rate of 5.04% and 5.24%, vest over a 36-month period and expire if unexercised in five years. 41,334 of these options have expired.

During the year ended April 30, 2008, the Company granted options to purchase an aggregate of 15,600 shares of common stock to thirteen employees exercisable at $7.50 per share. Because of separation from employment, 11,600 unexercised options were cancelled. The remaining vested and unvested options had an initial value of $23,019 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 143%; (3) risk-free interest rate of 4.76%, vest over a 48-month period and expire if unexercised in ten years.

During the year ended April 30, 2011, the Company issued stock options, exercisable at $1.875 per share until May 12, 2015, subject to vesting at the rate of 20% on the grant date, 40% on May 12, 2012, and 40% on May 12, 2014, to the following officers and directors:  Anthony Havens, 88,967 options; Kristian Srb, 32,867 options; Richard Trotter, 53,550 options; Jeffrey Bean, 12,750 options; Anthony Adler, 53,267 options; and Sandra Ahman, 41,934 options.  The vested and unvested options were initially valued at $409,790 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 271; (3) risk-free interest rate of 0.89%, vest over a 36-month period and expire if unexercised in five years.  $163,322 of the remaining initial value were charged to expense in fiscal year end 2013.

During the year ended April 30, 2011, the Company issued to four employees under the Company’s 2005 Stock Incentive Compensation Plan options to purchase a total of 28,667 shares of common stock at $1.65 per share until December 1, 2018, subject to vesting at the rate of 40% on the grant date, 20% on December 1, 2011, 20% on December 1, 2014 and 20% on December 1, 2015. As of April 30, 2011, the vested and unvested options were initially valued at $42,961 using the Black-Scholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 250; (3) risk-free interest rate of 2.33%, vest over a 48-month period and expire if unexercised in ten years.   $6,444 and $8,592 of the initial value were charged to expense in fiscal year end 2014 and 2013, respectively.

During the year ended April 30, 2012, the Company issued to two directors, 13,334, five year options each. The options are exercisable at $0.60 per share and have been valued at $5,955 each using the Black-Scholes option pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 227%; (3) risk-free interest rate of 0.41%, vest over a 36-month period and expire if unexercised in five years. The Company charged $4,764 and $4,170 to expenses for the fiscal years ended 2014 and 2013, respectively.

During the fiscal year ended April 30, 2015, four employees agreed to exchange 3,999 options exercisable at $7.50 per share and 28,667 options exercisable at $ 1.65 per share for 113,338 shares of the Company’s common stock, valued at $77,460. The shares will vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016.  Only 31,780 shares of the initial 37,780 shares were issued during the year ended April 30, 2015. The shares were authorized/issued from the 2005 Stock Incentive Compensation Plan.

Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price on the 327,335 options held by the Company’ s officers and directors was reduced to $0.50 per share from exercise prices ranging from $0.60 to $14.355, and the expiration dates were extended by two years. The $63,149 valuation of this action was fully expensed during the year.

No options were granted during the fiscal year ended April 30, 2015.

The following table summarizes common stock options issued to officers, directors and employees outstanding and the related exercise price.

Options Outstanding						Options Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
Options	327,335		2.22	$	0.50		327,335	$	0.50

Transactions involving stock options issued to officers, directors and employees are summarized as follows:

	Number of Shares			Weighted Average Price Per Share
Outstanding at April 30, 2013		379,667		$	3.20
Granted		-			-
Exercised		-			-
Canceled or expired		(19,666	)		(20.05	)
Outstanding at April 30, 2014		360,001		$	2.41
Granted		-			-
Exercised		(32,666	)		(2.37	)
Canceled or expired		-			-
Outstanding at April 30, 2015		327,335		$	0.50

No options were granted during the fiscal years ended April 30, 2015 and 2014.

Warrants:

No warrants were granted during the year ended April 30, 2014.

During the year ended April 30, 2015, the Company issued two warrants to purchase an aggregate of 190,000 shares of common stock to a consultant. The warrant to purchase 150,000 shares were initially valued at $30,918 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 0.95%, and (4) expected life of 3 years. The warrant to purchase 40,000 shares were initially valued at $7, 707 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 1.62%, and (4) expected life of 5 years. The warrants have exercise prices of $0.40 and $0.80 respectively, and are fully vested.

The Company adopted SFAS No. 123(R) during third quarter of Fiscal year 2006, which no longer permits the use of the intrinsic value method under APB No. 25. The Company uses the modified prospective method to adopt SFAS No. 123(R), which requires compensation expense to be recorded for all stock-based compensation granted on or after January 1, 2006, as well the unvested portion of previously granted options. The Company is recording the compensation expense on a straight-line basis, generally over the explicit service period of three years. The Company made no stock-based compensation grants prior to the adoption of Statement 123(R) and therefore has no unrecognized stock compensation related liabilities or expense unvested or vested prior to 2006.

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company.

		Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.275		25,938		.86	$	1.275		25,938	$	1.275
$	0.8475		123,145		1.15	$	0.8475		123,145	$	0.8475
$	0.80		20,000		2.67	$	0.80		20,000	$	0.80
$	0.75		21,680		1.30	$	0.75		21,680	$	0.75
$	0.65		40,000		5	$	0.65		40,000	$	0.65
$	0.60		40,000		2.16	$	0.60		40,000	$	0.60
$	0.40		150,000		2	$	0.40		150,000	$	0.40
			420,763		1.02	$	0.66		420,763	$	0.66

Transactions involving stock warrants issued to non-employees are summarized as follows:

	Number of Shares			Weighted Average Exercise Price Per Share
Outstanding at April 30, 2013		439,196		$	1.27
Granted		-			-
Exercised		-			-
Canceled or expired		(41,311	)		(5.40	)
Outstanding at April 30, 2014		397,885			1.99
Granted		190,000			0.45
Exercised		(167,122	)		(0.8475	)
Canceled or expired		-			-
Outstanding at April 30, 2015		420,763		$	0.66

No non-employee warrants were granted during the year ended April 30, 2014.The weighted-average fair value of stock warrants granted to non-employees during the year ended April 30, 2015 was $0.20, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option-pricing model are as follows:

	2015		2014
Significant assumptions (weighted-average):
Risk-free interest rate at grant date		1.09%		-
Expected stock price volatility		140%		-
Expected dividend payout		-		-
Expected option life-years	3.42		-

The amount of the initial expenses charged to operations for compensatory warrants granted in exchange for services was $38,625 for the year ended April 30, 2015.

The Company's derivative financial instruments consist of embedded derivatives related to the short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

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NOTE C - DISCONTINUED OPERATIONS (Details)			1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2013 USD ($) shares	Oct. 31, 2008 USD ($)	Apr. 30, 2009 USD ($)	Aug. 12, 2015 shares	Apr. 30, 2015 USD ($)	Apr. 30, 2014 USD ($) shares
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Payments to Acquire Property, Plant, and Equipment					$ (3,921)	$ 0
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares				22,049,916		1,888,804
Consumer Lease and Loan Lines of Business [Member] | Asset-backed Securities, Securitized Loans and Receivables [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net					$ 8,743	$ 0
Number of Notes					2
Disposal Group Including Discountinued Operations, Interest Receivable					$ 1,265	2,180
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Other					0	0
Financing Receivable, Allowance for Credit Losses					$ 0	1,124
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Interest Rate, Effective Percentage					15.29%
Property, Plant and Equipment, Additions		$ 100,000
Payments to Acquire Property, Plant, and Equipment		80,000	$ 10,000
Other Accrued Liabilities						10,000
Debt Instrument, Face Amount		150,000
Proceeds from Secured Notes Payable		$ 100,000
Debt Instrument, Maturity Date		Aug. 15, 2015
Debt Conversion, Converted Instrument, Amount	$ 50,000
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares	60,606
Vehicles [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Depreciation and Amortization, Discontinued Operations					$ 28,736	$ 29,411
Property, Plant, and Equipment, Salvage Value					$ 27,460
Minimum [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Term					1 year
Maximum [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
NOTE C - DISCONTINUED OPERATIONS (Details) [Line Items]
Debt Instrument, Term					5 years

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NOTE J - STOCK OPTIONS AND WARRANTS (Details)				1 Months Ended	12 Months Ended
	Apr. 30, 2008 USD ($) $ / shares shares	Apr. 30, 2007 USD ($) $ / shares shares	Apr. 29, 2005 $ / shares shares	Aug. 31, 2014 USD ($) $ / shares shares	Apr. 30, 2015 USD ($) $ / shares shares	Apr. 30, 2014 USD ($) $ / shares shares	Apr. 30, 2013 USD ($) $ / shares shares	Apr. 30, 2011 USD ($) $ / shares shares
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)					0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (in Shares)					0	(19,666)
Share-based Compensation (in Dollars) | $					$ 430,402	$ 398,149
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)					327,335	360,001	379,667
Class of Warrant or Rights, Granted (in Shares)					190,000	0
Fair Value Assumptions, Expected Dividend Rate					0.00%	0.00%
Fair Value Assumptions, Expected Volatility Rate					140.00%	0.00%
Fair Value Assumptions, Risk Free Interest Rate					1.09%	0.00%
Fair Value Assumptions, Expected Term					3 years 153 days
Share-base Compensation Arrangement, by Share-based Payment Award, Amortization of Share-based Compensation Expenses, Period						3 years
Class of Warrant or Rights, Weighted-Average Exercise Price of Warrants or Rights, Granted (in Dollars per share) | $ / shares					$ 0.45	$ 0
Warrants Issued to Consultant [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)					2
Class of Warrants, Number of Shares Issued Upon Conversion of Warrants (in Shares)					190,000
Class of Warrant or Rights, Weighted-Average Exercise Price of Warrants or Rights, Granted (in Dollars per share) | $ / shares						$ 0.20
Warrant Issued to Consultant #1 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrants, Number of Shares Issued Upon Conversion of Warrants (in Shares)					150,000
Warrants, Fair Value of Warrants, Granted (in Dollars) | $					$ 30,918
Fair Value Assumptions, Expected Dividend Rate					0.00%
Fair Value Assumptions, Risk Free Interest Rate					0.95%
Fair Value Assumptions, Expected Term					3 years
Warrant Issued to Consultant #2 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrants, Number of Shares Issued Upon Conversion of Warrants (in Shares)					40,000
Warrants, Fair Value of Warrants, Granted (in Dollars) | $					$ 7,707
Fair Value Assumptions, Expected Dividend Rate					0.00%
Fair Value Assumptions, Expected Volatility Rate					140.00%
Fair Value Assumptions, Risk Free Interest Rate					1.62%
Fair Value Assumptions, Expected Term					5 years
Employee Stock Option [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares								$ 1.875
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value Grants in Period (in Dollars) | $								$ 409,790
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate								0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate								271.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								36 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term								5 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate								0.89%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights								vesting at the rate of 20% on the grant date, 40% on May 12, 2012, and 40% on May 12, 2014
Share-based Compensation (in Dollars) | $							$ 163,322
Employee Stock Option [Member] | Chief Operating Officer [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)			11,667					53,550
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares			$ 45.375
Employee Stock Option [Member] | Employee and Director [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)		57,334
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in Shares)		13,334
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value Grants in Period (in Dollars) | $		$ 636,433
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		131.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum		5.04%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum		5.24%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		36 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (in Shares)		41,334
Employee Stock Option [Member] | Employee and Director [Member] | Options at $14.355 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)		53,334
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares		$ 14.355
Employee Stock Option [Member] | Employee and Director [Member] | Options at $9.00 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)		4,000
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares		$ 9.00
Employee Stock Option [Member] | Employee [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)	15,600				113,338			28,667
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares	$ 7.50							$ 1.65
Number of employees	13	1			4			4
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value Grants in Period (in Dollars) | $	$ 23,019				$ 77,460			$ 42,961
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%							0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	143.00%							250.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	48 months							48 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years							10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (in Shares)	11,600
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.76%							2.33%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights					shares will vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016			vesting at the rate of 40% on the grant date, 20% on December 1, 2011, 20% on December 1, 2014 and 20% on December 1, 2015
Share-based Compensation (in Dollars) | $						$ 6,444	$ 8,592
Share-based Compensation Arrangement by Share-based Payment Award, Options, Issued (in Shares)					31,780
Employee Stock Option [Member] | Employee [Member] | Options at $7.50 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares					$ 7.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exchanged in Period (in Shares)					3,999
Employee Stock Option [Member] | Employee [Member] | Options at $1.65 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares					$ 1.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exchanged in Period (in Shares)					28,667
Employee Stock Option [Member] | Director [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)								32,867
Number of employees		1
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate							0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate							227.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							36 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term							5 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate							0.41%
Share-based Compensation (in Dollars) | $						$ 4,764	$ 4,170
Number of Directors							2
Employee Stock Option [Member] | Chief Executive Officer [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)								88,967
Employee Stock Option [Member] | Director #2 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)							13,334	12,750
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares							$ 0.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value Grants in Period (in Dollars) | $							$ 5,955
Employee Stock Option [Member] | Executive Vice President [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)								53,267
Employee Stock Option [Member] | Vice President [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)								41,934
Employee Stock Option [Member] | Director #1 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)							13,334
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares							$ 0.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value Grants in Period (in Dollars) | $							$ 5,955
Employee Stock Option [Member] | Officers and Directors [Member] | Amendment of Option Terms [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares				$ 0.50
Share-based Compensation (in Dollars) | $				$ 63,149
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)				327,335
Share-based Compensation Arrangement by Share-based Payment Award, Extension of Expiration Date				2 years
Minimum [Member] | Warrants Issued to Consultant [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares					$ 0.40
Minimum [Member] | Employee Stock Option [Member] | Officers and Directors [Member] | Original Option Terms [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares				$ 0.60
Maximum [Member] | Warrants Issued to Consultant [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares					$ 0.80
Maximum [Member] | Warrant Issued to Consultant #1 [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Fair Value Assumptions, Expected Volatility Rate					140.00%
Maximum [Member] | Employee Stock Option [Member] | Officers and Directors [Member] | Original Option Terms [Member]
NOTE J - STOCK OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arranagement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $ / shares				$ 14.355

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Accounting Policies, by Policy (Policies)

12 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Business and Basis of Presentation

Since May 2010, the Company has concentrated its efforts on developing and marketing vehicle history reports, over the internet, and mobile apps for vehicle dealers and other market segments. Historically, the Company had been in the business as an originator and indirect lender for consumer retail installment loans and consumer lease financing for the purchase or lease of new and used motorcycles. These consumer financing products were discontinued during the fiscal year ending April 30, 2013 (see Discontinued Operations).  The Company continues to offer a leasing program, on a pass through basis, for municipalities.

Use of Estimates, Policy [Policy Text Block]

Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

As discussed in NOTE C, in the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs, and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Information Technology:

Revenues from mobile app products are recognized on a cash basis. Revenues from History Reports are recognized on both a cash basis and a deferral basis depending on the nature of the transaction.

Discontinued Operations:

Revenues from RISCs and leases

The RISCs are secured by liens on the titles to the vehicles. The RISCs are accounted for as loans.  Upon purchase, the RISCs appear on our balance sheet as RISC loans receivable current and long term. When the RISC is entered into our accounting system, based on the customer's APR (interest rate), an amortization schedule for the loan on a simple interest basis is created. Interest is computed by taking the principal balance times the APR rate then divided by 365 days to get your daily interest amount. The daily interest amount is multiplied by the number of days from the last payment to get the interest income portion of the payment being applied. The balance of the payment goes to reducing the loan principal balance.

Our leases are accounted for as either operating leases or direct financing leases. At the inception of operating leases, no lease revenue is recognized and the leased motorcycles, together with the initial direct costs of originating the lease, which are capitalized, appear on the balance sheet as "motorcycles under operating leases-net". The capitalized cost of each motorcycle is depreciated over the lease term, on a straight-line basis, down to the original estimate of the projected value of the motorcycle at the end of the scheduled lease term (the "Residual"). Monthly lease payments are recognized as rental income. An acquisition fee classified as fee income on the financial statements is received and recognized in income at the inception of the lease. Direct financing leases are recorded at the gross amount of the lease receivable, and unearned income at lease inception is amortized over the lease term.

We realize gains and losses as the result of the termination of leases, both at and prior to their scheduled termination, and the disposition of the related motorcycle. The disposal of motorcycles, which reach scheduled termination of a lease, results in a gain or loss equal to the difference between proceeds received from the disposition of the motorcycle and its net book value. Net book value represents the residual value at scheduled lease termination. Lease terminations that occur prior to scheduled maturity because of the lessee's voluntary request to purchase the vehicle have resulted in net gains, equal to the excess of the price received over the motorcycle's net book value.

Early lease terminations also occur because of (i) a default by the lessee, (ii) the physical loss of the motorcycle, or (iii) the exercise of the lessee's early termination. In those instances, we receive the proceeds from either the resale or release of the repossessed motorcycle, or the payment by the lessee's insurer. We record a gain or loss for the difference between the proceeds received and the net book value of the motorcycle. We charge fees to manufacturers and other customers related to creating a private label version of our financing program including web access, processing credit applications, consumer contracts and other related documents and processes. Fees received are amortized and booked as income over the length of the contract.

Website Development Costs [Policy Text Block]

Website Development Costs

The Company recognizes website development costs in accordance with ASC 350-50, "Accounting for Website Development Costs." As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website.  Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life.  Costs associated with repair or maintenance for the website are included in cost of net revenues in the current period expenses.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents.

Income Tax, Policy [Policy Text Block]

Income Taxes

Deferred income taxes are provided using the asset and liability method for financial reporting purposes in accordance with the provisions of ASC 740-10, "Accounting for Income Taxes" (“ASC 740-10”).  Under this method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be removed or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

ASC 740-10prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  ASC 740-10 also provides guidance on derecognition, classification, treatment of interest and penalties, and disclosure of such positions.  As a result of implementing ASC 740-10, there has been no adjustment to the Company’s consolidated financial statements and the adoption of ASC 740-10 did not have a material effect on the Company’s consolidated financial statements for the year ending April 30, 2015.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company adopted ASC 820,” Fair Value Measurements”  (“ASC 820”), establishes a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets the lowest priority to unobservable inputs to fair value measurements of certain assets and Liabilities.  The three levels of the fair value hierarchy under ASC 820 are described below:

·   Level 1 — Quoted prices for identical instruments in active markets.  Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets.

·   Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets.

·   Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurements.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as management judgments or estimates that are significant to valuation.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  For some products or in certain market conditions, observable inputs may not always be available.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

In accordance ASC 360-10, “Impairment or Disposal of Long-Lived Assets”  (“ASC 360-10”), long-lived assets, such as property, equipment, motorcycles and other vehicles and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.  Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows or quoted market prices in active markets if available, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Segment Reporting, Policy [Policy Text Block]

Segment Information

The Company adopted ASC 280-10 “Disclosures about Segments of an Enterprise and Related Information” (“ASC 280-10”).  ASC 280-10 establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in consolidated financial reports issued to stockholders.  ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas.  Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance.  The information disclosed herein, materially represents all of the financial information related to the Company's principal operating segments.

In the second quarter of fiscal 2013, the Company’s Board of Directors approved management’s recommendation to discontinue the Company’s consumer lease and loan lines of business and the sale of all of the Company’s portfolio of RISCs and a portion of its portfolio of leases. The sale was consummated in that quarter. The assets and liabilities have been accounted for as discontinued operations in the Company’s consolidated balance sheets for all periods presented. The operating results related to these lines of business have been included in discontinued operations in the Company’s consolidated statements of loss for all periods presented. As these lines of business were discontinued during the fiscal year ending April 30, 2013, the Company has discontinued segment reporting.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

The Company adopted ASC 718-10 “Accounting for Stock Compensation” (“ASC 718-10”) which records compensation expense on a straight-line basis, generally over the explicit service period of three to five years.

ASC 718-10 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statement of Operations.  The Company is using the Black-Scholes option-pricing model as its method of valuation for share-based awards.  The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables.  These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and certain other market variables such as the risk free interest rate.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows:

Leasehold improvements	3 years
Furniture and fixtures	7 years
Website costs	3 years
Computer Equipment	5 years

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

The Company follows a policy of charging the costs of advertising to expenses incurred. During the years ended April 30, 2015 and 2014, the Company’s continuing operations incurred advertising costs of $7,519 and $39,519, respectively.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

The Company uses ASC 260-10, “Earnings Per Share” for calculating the basic and diluted loss per share.  The Company computes basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding.  Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive.

Per share basic and diluted net loss attributable to common stockholders amounted to $0.18 and $0.19 for the year ended April 30, 2015, respectively, and $0.16 and $0.19 for the year ended April 30, 2014, respectively. At April 30, 2015 and 2014, 20,081,014 (including 2,356,598 shares to be issued included on the balance sheet) and 6,076,389 (including 283,777 shares to be issued included on the balance sheet)  potential shares, respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications have been made to conform to prior periods' data to the current presentation. These reclassifications had no effect on reported losses.

Derivatives, Policy [Policy Text Block]

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of April 30, 2015, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

Debt, Policy [Policy Text Block]

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.

Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.  Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”.

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.

ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or applications to specific industries and are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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NOTE G - NONCONTROLLING INTEREST (Tables)

12 Months Ended

Apr. 30, 2015

Noncontrolling Interest [Abstract]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

For the fiscal years ended April 30, 2015 and 2014, the non-controlling interest is summarized as follows:

	Amount
Balance at April 30, 2013	$	723,191
Noncontrolling interest’s share of losses		(53,767	)
Balance at April 30, 2014	$	669,424
Noncontrolling interest’s share of losses		(17,076	)
Balance at April 30, 2015	$	652,348

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NOTE I - INCOME TAXES (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards	$ 36,891,436	$ 32,060,454
Valuation Allowances and Reserves, Period Increase (Decrease)	$ 1,352,627	$ 908,514

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NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble - USD ($)		Apr. 30, 2015	Apr. 30, 2014
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross		$ 3,400,580	$ 2,316,263
Less, Debt discount		(762,426)	(296,384)
Total		2,638,154	2,019,879
Loans Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[1]	393,500	25,000
Note Convertible at Holder's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[2]	2,707,080	1,901,263
Note Convertible at Company's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[3]	15,000	0
Note with Interest Only, Convertible at Company's Option [Member] | Convertible Notes Payable [Member]
NOTE D - NOTES PAYABLE (Details) - Schedule of Notes Payble [Line Items]
Note payable, gross	[4]	$ 285,000	$ 390,000

[1] (d) Non-convertible notes consist of: (i) a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid; (ii) a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company's restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015; (iii) a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid; (iv) a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company's landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016; (v) a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company's restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan; and (vi) a $33,500, 10% note due April 30, 2015. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid.

[2] Notes convertible at holder's option consists of: (i) a $1,163,369, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder's option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013; (ii) (a) a $33,500, 6% note due June 30, 2015, and (b) a $40,000 note due December 23, 2015. The Company has recorded beneficial conversion discounts totaling $85,465 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 4,753,694 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; (iii) (a) a $25,000, 12% convertible debenture due May 27, 2014 (the "Debenture"). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder's option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company's restricted common stock or (ii) the number of shares of the Company's restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price "VWACP" of the Company's common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default. (iv) seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; (v) three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder's option at $0.25 per share. In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; (vi) (a) $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 2,400,000 shares of its common stock for conversion pursuant to the terms of the notes. (vii) (a) a $27,500, 5% convertible note due January 28, 2015, (b) a $27,500, 5% convertible note due April 29, 2015 and (c) a $27,500 convertible note due January 28, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion. The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note. The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable. The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $59,437 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (d) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes (viii) (a) a $25,000 8% convertible note due April 27, 2015, (b) a $55,000 8% convertible note due January 26, 2016, and (c) a $57,200 8% convertible note due January 26, 2016. The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 5,106,571 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full; (ix) (a) a $33,000, 8% note due August 16, 2015; and (b) a $33,000, 8% note due October 5, 2015. The Company has recorded a beneficial conversion discount of $32,904 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 1,735,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full; (x) a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at the rate of 1.5 shares of common stock for each dollar converted. In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and (xi) a $55,000, 12% note due June 22, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 2,000,000 shares of its common stock for conversion pursuant to the terms of the note. (xii) (a) $55,000 outstanding under a $220,000, 10% note due May 24, 2015 and (b) $55,000 outstanding under the same note due July 27, 2015. The Company has recorded a beneficial conversion discount of $105,364 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 7,000,000 shares of its common stock for conversion pursuant to the terms of the notes. (xiii) (a) a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (b) $42,500 outstanding under a $50,000, 8% convertible note due April 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); and (c) a $52,500, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate").The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. (xiv) a $50,000, 10% convertible note due December 15, 2015. The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes. The note is convertible at the note holder's option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate").(xv) (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (b) $35,000 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (c) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. (xvi) (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (b) $42,900 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (c) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. (xvii) (a) a $33,000, 8% note due November 25, 2015; and (b) a $38,000, 8% note due January 17, 2016. The Company has recorded a beneficial conversion discount of $51,414 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 5,650,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;(xviii) (a) two $30,000, 8% notes both due 4/14/16. The Company has recorded a beneficial conversion discount of $45,000 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.(xix) a $25,000, 8% note due 4/22/16. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder's option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the "Discount Conversion Rate"). The Company has reserved up to 1,529,000 shares of its common stock for conversion pursuant to the terms of the notes. In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

[3] Notes convertible at the Company's option consist of:(i) a $15,000, 10% note due 4/22/16. The note is convertible at the Company's option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company's common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company issued the Noteholder 37,500 shares of its restricted common stock as an inducement for the loan. If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.

[4] Notes with interest only convertible at Company's option consist of: (i) a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company's option at $1.50 per share; (ii) a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company's option and on the $25,000 note at the holder's option in cash or in shares at the rate of $1.50 per share; (iii) a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company's options calculated as the volume weighted average price of the Company's common stock for the ten day trading period immediately preceding the last day of each three month period; (iv) a $25,000 10% note due February 2, 2016, the Company issued the note holder 110,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company's option in cash or in shares at the rate of $0.15 per share; and (v) a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan.

XML

CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) - USD ($)	Total	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Series B Preferred Stock to be Issued [Member]	Common Stock [Member]	Common Stock To Be Issued [Member]	Receivables from Stockholder [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Balance at Apr. 30, 2013	$ (3,874,694)	$ 12,500	$ 1,570	$ 0	$ 14,131	$ 625	$ (2,118,309)	$ 38,483,198	$ (40,991,658)	$ 723,191
Balance (in Shares) at Apr. 30, 2013		125	157	57	14,131,242	625,340
Correcting	(75)					$ (87)		12
Correcting (in Shares)					(40)	(85,826)
Preferred dividend to be issued	156,569							156,554
Preferred dividend to be issued (in Shares)				15
Derivative liability reclassification	518,379							518,379
Sale of common stock	1,298,977				$ 3,884	$ (72)		1,295,165
Sale of common stock (in Shares)					3,883,899	(72,201)
Shares issued for financing cost	113,260				$ 158	$ 17		113,085
Shares issued for financing cost (in Shares)					158,766	16,677
Shares issued for conversion of notes, interest and accounts payable	776,686				$ 1,887	$ (205)		775,004
Shares issued for conversion of notes, interest and accounts payable (in Shares)					1,886,804	(205,713)
Stock compensation	386,941				$ 927	$ 6		386,008
Stock compensation (in Shares)					926,682	5,500
Employee stock & options expense	11,208							11,208
Net loss	(3,319,414)								(3,265,648)	(53,767)
Balance at Apr. 30, 2014	(3,932,164)	$ 12,500	$ 1,570	$ 0	$ 20,987	$ 284	(2,118,309)	41,738,613	(44,257,305)	669,424
Balance (in Shares) at Apr. 30, 2014		125	157	72	20,987,353	283,777
Correcting	(1)					$ (1)
Correcting (in Shares)					345	(430)
Redemption of preferred B stock	(193,011)		$ (1,570)				$ 2,118,309	(2,309,678)
Redemption of preferred B stock (in Shares)			(157)	(72)
Preferred dividend to be issued	0
Derivative liability reclassification	768,174							768,174
Sale of common stock	978,866				$ 9,656	$ 65		969,145
Sale of common stock (in Shares)					9,655,415	65,249
Shares issued for financing cost	181,912				$ 1,303	$ 27		180,582
Shares issued for financing cost (in Shares)					1,302,830	27,069
Shares issued for conversion of notes, interest and accounts payable	764,942				$ 10,025	$ 1,921		752,996
Shares issued for conversion of notes, interest and accounts payable (in Shares)					10,025,638	1,920,933
Stock compensation	352,942				$ 1,235	$ 60		351,647
Stock compensation (in Shares)					1,234,959	60,000
Employee stock & options expense	77,460				$ 32			77,428
Employee stock & options expense (in Shares)					31,780
Net loss	(4,938,223)								(4,921,148)	(17,076)
Balance at Apr. 30, 2015	$ (5,939,102)	$ 12,500	$ 0	$ 0	$ 43,238	$ 2,356		$ 42,528,908	$ (49,178,453)	$ 652,348
Balance (in Shares) at Apr. 30, 2015		125	0	0	43,238,320	2,356,598

XML

NOTE D - NOTES PAYABLE

12 Months Ended

Apr. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE D - NOTES PAYABLE$

Notes Payable	April 30, 2015			April 30, 2014
Notes convertible at holder’s option (a)	$	2,707,080		$	1,901,263
Notes convertible at Company’s option (b)		15,000			-
Notes with interest only convertible at Company’s option (c)		285,000			390,000
Non-convertible notes payable d)		393,500			25,000
Subtotal		3,400,580			2,316,263
Less, Debt discount		(762,426	)		(296,384	)
Total	$	2,638,154		$	2,019,879

(a) Notes convertible at holder’s option consists of:

(i)                            a $1,163,369, 8% note originally due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated, convertible at the holder’s option at $0.495 per share. The Company had recorded a $663,403 beneficial conversion discount for this note, which was fully amortized during fiscal 2013; 

 (ii)                           (a) a $33,500, 6% note due June 30, 2015, and (b) a $40,000 note due December 23, 2015. The Company has recorded beneficial conversion discounts totaling $85,465 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 4,753,694 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to eighteen percent until the note is paid in full;

 (iii)                          (a) a $25,000, 12% convertible debenture due May 27, 2014 (the “Debenture”). The Debenture is convertible at $0.59 per share. The Company issued the holder 5,000 shares of its restricted common stock as inducement for the loan, and (b) a $50,000, 12% debenture, due March 20, 2015, convertible at the holder’s option at $0.59 per share), the Company issued the holder 10,000 shares of its restricted common stock as inducement for the loan. In fiscal 2014, the Company has recorded a $50,000 beneficial conversion discount for this note. The discount is being fully amortized over the term of the note; If the Company has not redeemed the outstanding principal and accrued interest of both Debentures in cash by their Maturity Dates and the original Debenture between the Holder and the Company dated September 19, 2007 is no longer outstanding, then for every 30 day period past the Maturity Date of which the principal balance an any accrued interest of this Debenture remain outstanding, the Company shall issue the Holder the greater of (i) 1,333 shares of the Company’s restricted common stock or (ii) the number of shares of the Company’s restricted common stock equal to $2,000 determined on the basis of the volume weighted average closing price “VWACP” of the Company’s common stock for the five consecutive trading days immediately prior to the 19th of each month (for a day to be included in the calculation, there must have been at least 100 shares traded on that day). As long as the Company remains current on the payment of the shares under Paragraph 12 of the Debentures, the Debentures shall be considered past due but not in default.

 (iv)                           seven notes aggregating $118,250, all due August 15, 2015 with interest ranging from 15% to 20%, with accrued interest compounding monthly at 8%. On one $25,000 note, which had been past due, the Company is paying 667 monthly penalty shares until the note is paid in full. All of the notes are convertible at the holder’s option at $0.25 per share. In fiscal 2012, the Company has recorded a $5,340 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes; 

 (v)                           three notes aggregating $106,250, all due August 15, 2015 with interest ranging from 20% to 25% with accrued interest compounding monthly at 8%, all of the notes are convertible at the holder’s option at $0.25 per share.  In fiscal 2012, the Company has recorded a $6,120 beneficial conversion discount for these notes. The discount is being fully amortized over the term of the notes;  

   (vi)                          (a) $59,000, 5% convertible note due December 16, 2015. This is the final tranche of a $165,000 note. The conversion price is the lesser of $1.20 or 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $29,333 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note, and (b) a $27,500 5% convertible note due February 25, 2017. This is the initial tranche of a $165,000 note. The conversion price is 70% of the average of the three lowest closing prices during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company (In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. The Company has recorded a $21,079 beneficial conversion discount for the note. The discount is being fully amortized over the initial term of the note. The Company has reserved up to 2,400,000 shares of its common stock for conversion pursuant to the terms of the notes.

 (vii)                         (a) a $27,500, 5% convertible note due January 28, 2015, (b) a $27,500, 5% convertible note due April 29, 2015 and (c) a $27,500 convertible note due January 28, 2016. This lender has committed to lend up to $165,000. The lender may lend additional consideration to the Company in such amounts and at such dates as lender may choose in its sole discretion.  The principal sum due to lender shall be prorated based on the consideration actually paid by lender (plus an approximate 10% original issue discount that is prorated based on the consideration actually paid by the lender as well as any other interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of this note.  The maturity date of each note is one year from the effective date of each payment and is the date upon which the principal sum of this note, as well as any unpaid interest and other fees, shall be due and payable.  The conversion price for the notes is the lesser of $0.60 or 70% of the lowest closing price during the 20 trading days immediately before the day the conversion notice is delivered to the Company. (In the case that conversion shares are not deliverable by DWAC, the principal amount of the note shall be increased by $10,000, and the conversion price shall be redefined to equal the lesser of (a) $0.60 or (b) 50% of the lowest closing price during the 20 trading days immediately previous to the day the conversion notice is delivered to the Company).  Unless otherwise agreed in writing by both parties, at no time will the lender convert any amount of this note into common stock that would result in the lender owning more than 4.99% of the common stock outstanding. In fiscal 2014, the Company has recorded a $59,437 beneficial conversion discount for the notes. The discounts are being fully amortized over the terms of the notes; (d) $490 outstanding balance on a $13,900, 10% convertible note due June 1, 2014. The Conversion Price for this note is the lesser of $0.50 or 70% of the lowest closing prices during the 20 trading days immediately before the day the conversion notice is delivered to the Company. The Company has reserved up to 8,750,000 shares of its common stock for conversion pursuant to the terms of the notes

 (viii)                        (a) a $25,000 8% convertible note due April 27, 2015, (b) a $55,000 8% convertible note due January 26, 2016, and (c) a $57,200 8% convertible note due January 26, 2016.  The notes are convertible at a 40% discount from the lowest closing price for the twenty trading days prior to conversion. The Company has recorded a $100,699 beneficial conversion discount for the notes. The discounts are being fully amortized over the initial term of the notes. The Company had reserved up to 5,106,571 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to fifteen percent until the notes are paid in full;  

 (ix)                           (a) a $33,000, 8% note due August 16, 2015; and (b) a $33,000, 8% note due October 5, 2015. The Company has recorded a beneficial conversion discount of $32,904 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,735,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

 (x)                            a $44,770, 5% note due April 15, 2016. In fiscal 2014, the Company has recorded a beneficial conversion discount of $35,816 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at the rate of 1.5 shares of common stock for each dollar converted.  In the event the note is not paid when due, the interest rate is increased to eighteen percent until the note is paid in full; and

 (xi)                           a $55,000, 12% note due June 22, 2015. The Company has recorded a beneficial conversion discount of $48,015 for the note. The discount is being fully amortized over the term of the note.   The note is convertible at the note holder’s option at  a variable conversion of 58% multiplied by the average of the three lowest trades in the twenty trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 2,000,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xii)                          (a) $55,000 outstanding under a $220,000, 10% note due May 24, 2015 and (b) $55,000 outstanding under the same note due July 27, 2015. The Company has recorded a beneficial conversion discount of $105,364 for the notes. The discount is being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 58% multiplied by the lowest trading price in the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,000,000 shares of its common stock for conversion pursuant to the terms of the notes. 

 (xiii)                         (a) a $55,125, 8% convertible note due December 9, 2015. The Company has recorded a beneficial conversion discount of $55,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,500 outstanding under a $50,000, 8% convertible note due April 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); and (c) a $52,500, 8% convertible note due December 9, 2015.  The Company has recorded a beneficial conversion discount of $52,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by the average of the three lowest closing prices in the fifteen trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

 (xiv)                        a $50,000, 10% convertible note due December 15, 2015.  The Company has recorded a beneficial conversion discount of $39,400 for the note. The discount is being fully amortized over the term of the notes.   The note is convertible at the note holder’s option at a variable conversion prices such that during the period during which the note is outstanding at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the five trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”).

(xv)                          (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $35,000 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c) $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

(xvi)                            (a) a $27,500, 8% convertible note due February 2, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (b) $42,900 outstanding under a $50,000, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $50,000 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (c)  $22,500, 8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $22,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”); (d) $27,250,8% convertible note due March 16, 2016. The Company has recorded a beneficial conversion discount of $27,500 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by the lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company had reserved up to 7,094,000 shares of its common stock for conversion pursuant to the terms of the note. 

(xvii)                           (a) a $33,000, 8% note due November 25, 2015; and (b) a $38,000, 8% note due January 17, 2016. The Company has recorded a beneficial conversion discount of $51,414 for the notes. The discounts are being fully amortized over the term of the notes.   The notes are convertible at the note holder’s option at a variable conversion prices such that during the period during which the notes are outstanding, with all notes convertible at 58% multiplied by the average of the three lowest closing bid prices for the common stock during the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 5,650,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full;

(xviii)                           (a) two $30,000, 8% notes both due 4/14/16. The Company has recorded a beneficial conversion discount of $45,000 for the notes. The discounts are being fully amortized over the term of the notes. The notes are convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 4,999,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the notes are not paid when due, the interest rate is increased to twenty-two percent until the notes are paid in full.

(xix)                           a $25,000, 8% note due 4/22/16. The Company has recorded a beneficial conversion discount of $19,723 for the note. The discount is being fully amortized over the term of the note. The note is convertible at the note holder’s option at  a variable conversion of 60% multiplied by lowest closing price in the ten trading day period ending one trading day prior to the submission date of the conversion notice by the note holder to the Company (the “Discount Conversion Rate”). The Company has reserved up to 1,529,000 shares of its common stock for conversion pursuant to the terms of the notes.  In the event the note is not paid when due, the interest rate is increased to twenty-two percent until the note paid in full.

(b) Notes convertible at the Company’s option consist of:

(i)                            a $15,000, 10% note due 4/22/16. The note is convertible at the Company’s option, at a price of thirty ($0.30) cents per share only if, prior to any conversion, the closing price of the Company’s common stock has equaled or exceeded thirty ($0.30) cents per share for ten (10) consecutive trading days. The Company issued the Noteholder 37,500 shares of its restricted common stock as an inducement for the loan. If the note is not paid in full on or before maturity, the Company shall issue the noteholder 1,000 shares of its restricted common stock for each month, or portion thereof, that the note remains unpaid.

(c) Notes with interest only convertible at Company’s option consist of:

 (i)                              a 22% note in the amount of $10,000 due May 31, 2015 with interest convertible at the Company’s option at $1.50 per share;

 (ii)                           a $25,000 note due May 1, 2011, which was extended to October 31, 2013. The Company is paying the note holder 3,333 shares per month until the note is paid or renegotiated. So long as the Company pays the monthly shares this note is not in default. Interest is payable on the $10,000 note at the Company’s option and on the $25,000 note at the holder’s option in cash or in shares at the rate of $1.50 per share;

 (iii)                       a $210,000, 12.462% note due April 30, 2014, but subsequently amended to such time as the lawsuit filed by the Company (see: PART II, ITEM 1 LEGAL PROCEEDINGS) is fully adjudicated. Interest is payable quarterly with a minimum or $600 in cash with the balance payable in cash or stock at the Company’s options calculated as the volume weighted average price of the Company’s common stock for the ten day trading period immediately preceding the last day of each three month period;

 (iv)                          a $25,000 10% note due February 2, 2016, the Company issued the note holder 110,000 shares of its common stock in connection with this loan Pursuant to the terms of this note, the Company is required to issue to the note holder 5,000 shares of its common stock for each month or portion thereof that the note remains unpaid. Interest is payable on all this note at the Company’s option in cash or in shares at the rate of $0.15 per share; and

 (v)                       a $15,000 5% note due May 31, 2015, the Company issued the note holder 5,000 shares of its common stock in connection with this loan.

(d) Non-convertible notes consist of:

 (i)                            a $25,000 note due May 31, 2015 that bears no interest. Pursuant to the terms of this note, the Company is required to issue to the note holder 1,000 shares of its common stock for each month or portion thereof that the note remains unpaid;

 (ii)                           a $75,000, 20% note due September 18, 2015. The Company has reserved 2,519,597 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this noteholder 106,700 shares of restricted common stock as inducement for the loan and 417,891 shares of common stock to extend the maturity date of the note from March 18, 2015 to September 18, 2015;

 (iii)                        a $30,000, 8% note due December 31, 2014. The Company agreed to issue 10,000 shares of restricted common stock as an inducement for the loan and pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid;

 (iv)                        a $100,000, 8% note due July 31, 2016. This note is collateralized by a security deposit in the amount of $76,610 held by the Company’s landlord; a $30,000, 10% note due April 20, 2016, and a $50,000, 10% note due April 22, 2016;

  (v)                        a $50,000, 20% note due September 18, 2015. The Company has reserved 1,672,241 shares of the Company’s restricted common stock as collateral for the loan. The Company issued this Noteholder 272,331 shares of restricted common stock as inducement for the loan; and

 (vi)                        a $33,500, 10% note due April 30, 2015. The Company agreed to pay the holder 1,000 shares per month for each month or fraction thereof the note remains unpaid.

Amortization of Beneficial Conversion Feature for the fiscal years ended April 30, 2015 and 2014 was $1,013,934 and $417,291, respectively.

The Company's derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company's common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity's Own Equity ("ASC 815-40"), because of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

The change in fair value of the derivative liabilities of warrants outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.09%  to 1.32%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0.59 years to 4.51 years

The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2015 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.001% to 0.24%
Expected stock price volatility			230%
Expected dividend payout			0
Expected options life in years	Ranging from	0. years to 1 year

The value of the derivative liability was re-assessed as of April 30, 2015 resulting in a loss to the consolidated statement of operations of $318,372 for the year ended April 30, 2015.

	April 30, 2015
Opening balance	$	601,000
Derivative liability reclassified to additional paid in capital		768,174
Derivative financial liability arising on the issue of convertible notes		554,733
Fair value adjustments		(318,372	)
Closing balance	$	1,605,535

XML

NOTE L - NON-CASH FINANCIAL INFORMATION (Details) - USD ($)	3 Months Ended	12 Months Ended
	Aug. 12, 2015	Apr. 30, 2015	Apr. 30, 2014
NOTE L - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Stock Issued		$ 167,260
Debt Conversion, Converted Instrument, Shares Issued (in Shares)	22,049,916		1,888,804
Common stock to be issued, shares (in Shares)		4,609,828	283,777
Debt Conversion, Original Debt, Amount			$ 776,686
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity		$ 768,174	518,379
Stock Issued During Period, Value, Other		$ 181,912	$ 113,260
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE L - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued (in Shares)		1,353,830	158,766
Common stock to be issued, shares (in Shares)		51,000
Debt Conversion, Original Debt, Amount		$ 181,912	$ 113,260
Conversion of Convertible Notes and Accrued Interest [Member]
NOTE L - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Debt Conversion, Converted Instrument, Shares Issued (in Shares)		9,883,187
Common stock to be issued, shares (in Shares)		2,063,350
Debt Conversion, Original Debt, Amount		$ 764,942
Shares Previously Classified to be Issued [Member]
NOTE L - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Stock Issued			$ 567,240
Stock Issued to Note Holder Pursuant to Terms of Note [Member]
NOTE L - NON-CASH FINANCIAL INFORMATION (Details) [Line Items]
Stock Issued During Period, Shares, Other (in Shares)			20,000
Stock Issued During Period, Value, Other			$ 6,200

XML

NOTE H - FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Apr. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The table below summarizes the fair values of our financial liabilities that are required to be carried on a recurring basis as of April 30, 2015:

	Fair Value at		Fair Value Measurement Using
	April 30,
	2015		Level 1		Level 2		Level 3
Derivative liability	$	1,605,535		-		-	$	1,605,535
Derivative liability	$	1,605,535		-		-	$	1,605,535

XML

NOTE C - DISCONTINUED OPERATIONS (Details) - Schedule of Short-term Debt - USD ($)		Apr. 30, 2015	Apr. 30, 2014
Short-term Debt [Line Items]
Senior subordinated notes		$ 70,117	$ 130,420
Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes		70,117	130,420
RISCs and Leases Financed Through Third Parties [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes	[1]	58,037	117,508
Senior Note to Purchase Portfolio [Member] | Secured Debt [Member] | Consumer Lease and Loan Lines of Business [Member]
Short-term Debt [Line Items]
Senior subordinated notes	[2]	$ 12,080	$ 12,912

[1] The Company had financed certain of its leases and RISCs through two third parties. The repayment terms are generally one year to five years and the notes are secured by the underlying assets. The weighted average interest rate at April 30, 2015 is 15.29%.

[2] On October 31, 2008, the Company purchased certain loans secured by a portfolio of secured motorcycle leases ("Purchased Portfolio") for a total purchase price of $100,000. The Company paid $80,000 at closing, $10,000 in April 2009 and agreed to pay the remaining $10,000 upon receipt of additional Purchase Portfolio documentation. As of April 30, 2015, no such documents have been received. Proceeds from the Purchased Portfolio started accruing to the Company beginning November 1, 2008. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 ("Senior Secured Note") in exchange for $100,000 from the holder. Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. To finance the purchase, the Company issued a $150,000 Senior Secured Note dated October 31, 2008 ("Senior Secured Note") in exchange for $100,000 from the holder. Terms of the Senior Secured Note require the Company to make semi-monthly payments in amounts equal to all net proceeds from Purchased Portfolio lease payments and motorcycle asset sales received until the Company has paid $150,000 to the holder. The Company was obligated to pay any remainder of the Senior Secured Note by November 1, 2009, which was extended to August 15, 2015, and has granted the note holder a security interest in the Purchased Portfolio. On January 31, 2013, the holder converted $50,000 of the outstanding balance of the Note into 60,606 shares of the Company's restricted common stock.

XML

NOTE N - GOING CONCERN MATTERS

12 Months Ended

Apr. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Substantial Doubt about Going Concern [Text Block]

NOTE N - GOING CONCERN MATTERS

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements during the period October 1, 2001 (date of inception) through April 30, 2015, the Company has incurred a cumulative net loss of $49,178,453. During the year ended April 30, 2015, the Company incurred a net loss of $4,921,148.  As of April 30, 2015, the Company had a deficit net worth of $5,939,102. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

The Company's existence is dependent upon management's ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company's efforts will be successful. While, the planned principal operations have commenced, no assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

In order to improve the Company's liquidity, the Company's management is actively pursuing additional equity financing through discussions with investment bankers and private investors. There can be no assurance the Company will be successful in its effort to secure additional equity financing.