Equity

3 Months Ended

Oct. 31, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 8 - STOCKHOLDERS' EQUITY

On May 9, 2011, we issued Yefu Sun 333,328 shares of our common stock for legal services pursuant to an agreement we entered into with Mr. Sun in December 2009 and amended in March 2010.  The shares were part of our agreement to issue Mr. Sun a total of 1,000,000 shares as compensation for services over a 24 month period because there was no performance commitment at the date of the agreement. We recognized compensation expense based on the fair value of our common stock at each interim reporting date.  In connection with this share issuance, $103,331 in stock-based consulting expense was recognized during the six months ended October 31, 2011.  

On April 22, 2011 we entered into a consulting agreement with China Direct Investments, Inc. (“CDI”) to perform consulting services for fiscal 2012 and agreed to a consulting fee of 1,500,000 shares of the Company’s common stock.  On May 6, 2011 we issued 1,000,000 shares of our common stock valued at $343,000 to CDI, which was recognized as consulting expense for the six months ended October 31, 2011. We recognized $98,750 in stock-based consulting expenses during the six months ended October 31, 2010. These amounts are reflected in general and administrative expenses in the accompanying consolidated statements of operations. 

During the second quarter of fiscal 2011, we issued 749,655 shares of our common stock upon the exercise of purchase warrants at $0.15 per share providing proceeds to us of $112,449. A summary of the changes to our outstanding stock warrants during the six months ended October 31, 2011 is as follows:

	Shares		Weighted Average  Exercise Price
Outstanding at April 30, 2011		26,689,391	$	0.35
Granted		-		-
Exercised		-		-
Forfeited		-		-
Warrants exercisable at October 31, 2011 (unaudited)		26,689,391	$	0.35

The following information applies to all warrants outstanding at October 31, 2011:

		Warrants Outstanding			Warrants Exercisable
Exercise Prices		Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price	Shares	Weighted Average Exercise Price
$	0.15	22,725	0.39	$0.15	22,725	$0.15
$	0.35	26,666,666	2.33	$0.35	26,666,666	$0.35
		26,689,391		$0.35	26,689,391	$0.35