Note 14 - Commitments and Contingencies

3 Months Ended

Jul. 31, 2014

Note 14 - Commitments and Contingencies:

Note 14 - Commitments and Contingencies

NOTE 14 - COMMITMENTS AND CONTINGENCIES

We did not incur rent expense in both first quarter fiscal 2015 and fiscal 2014. All facilities related to traditional Chinese medicine segment are leased from Pharmaceutical Corporation, a related party. The term of this lease expired in October, 2012 and provides for annual lease payments of $23,400. After October 1, 2012 Pharmaceutical Corporation agreed to waive the lease payments.

On August 25, 2011, Qufu Natural Green entered into an agreement with Qufu Jinxuan Real Estate Development Co., Ltd., an unaffiliated third party, to purchase thirty apartment units in China for investment. The total area of the apartment complex units is 41,979 square feet, with 6,458 square feet of storage area for a total purchase price of RMB15,120,000 (approximately $2,390,325) (the “Purchase Price”). Under the terms of the agreement, the apartment units were expected to be delivered by December 30, 2012. As of July 31, 2014, we did not receive the deed and other legal documents for the apartment units; the apartment units are expected to be delivered before the end of the calendar year 2014. We prepaid 30% of the Purchase Price, approximately $717,097, upon signing the agreement on August 25, 2011. An additional 50% of the Purchase Price, or approximately $1,195,162, was paid on December 8, 2011, with the balance, or approximately $478,066 due upon completion of the ownership documents and transfer of the apartment units to us.  As of July 31, 2014 and April 30, 2014, we classified investment in real estate held for resale as a long-term asset since we do not plan on selling the apartment units within one year. As of July 31, 2014 and April 30, 2014, investment in real estate held for resale amounted to $1,962,267 and $1,963,891, respectively.