Stockholders' Equity

9 Months Ended

Jan. 31, 2017

Equity [Abstract]

Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

a) Common Stock

On January 6, 2017, the Company’s annual and special meeting of stockholders approved the amendment to the Company’s articles that increased the authorized common shares from 100,000,000 to 150,000,000.

On September 16, 2016, the Company entered into an asset purchase agreement with Reg Technologies Inc., a public company whose common stock was listed on TSX Venture Exchange to purchase all of the assets of Reg Technologies, a company with a common director and CEO with REGI. An aggregate of 50,929,388 unregistered common shares of our company were issued by January 31, 2017 as consideration for the asset purchase. The transaction was not closed until February 17, 2017 upon TSX Venture Exchange approval, which was a condition for the closing.

b) Common Stock Options and Warrants

On August 12, 2016, REGI granted an aggregate of 3,700,000 common stock options for services. These options vest upon grant, expire on July 20, 2021 and are exercisable at the following prices:

Options	Exercise price
900,000	$	0.10
600,000	$	0.20
550,000	$	0.35
450,000	$	0.50
350,000	$	0.75
350,000	$	1.00
250,000	$	1.25
250,000	$	1.50
3,700,000

The fair value of the options was determined to be $216,088 using the Black-Scholes option pricing model, which requires management to make estimates that are subjective and may not be representative of the actual results. Changes in assumptions can materially affect estimates of fair value. The following assumptions were used for the calculation: risk free interest rate 1.16% expected life (in years) 4.94 expected volatility 228.65% and expected dividend yield 0.0%.

On January 1, 2017, REGI granted an aggregate of 3,500,000 common stock options for services. These options vest upon grant, expire on January 1, 2022 and are exercisable at the following prices:

Options	Exercise price
2,500,000	$	0.10
300,000	$	0.20
300,000	$	0.35
300,000	$	0.50
100,000	$	0.75
3,500,000

The fair value of the options was determined to be $170,268 using the Black-Scholes option pricing model, which requires management to make estimates that are subjective and may not be representative of the actual results. Changes in assumptions can materially affect estimates of fair value. The following assumptions were used for the calculation: risk free interest rate 1.93% expected life (in years) 5.00 expected volatility 214.63% and expected dividend yield 0.0%.

A summary of REGI’s stock option activity for the nine months ended January 31, 2017 is as follows:

	Nine months ended January 31, 2017
			Weighted
			Average
			Exercise
	Options		Price
Outstanding at beginning of period		1,938,000	$	0.15
Granted during the period		7,200,000	$	0.36
Outstanding at end of period		9,138,000	$	0.31
Exercisable at end of period		7,684,500	$	0.34
Weighted average fair value of options granted			$	0.05

At January 31, 2017, the Company had $266,707 of total unrecognized compensation cost related to non-vested stock options and warrants, which will be recognized over future periods. The intrinsic value of “in the money” exercisable options at January 31, 2017 was $Nil.

A summary of REGI’s common stock warrant activity for the nine months ended January 31, 2017 is as follows:

	January 31, 2017
			Weighted
			Average
			Exercise
	Warrants		Price
Outstanding at beginning of period		200,000	$	0.25
Outstanding at end of period		200,000		0.25
Exercisable at end of period		200,000	$	0.25

At January 31, 2017, the exercise price and the weighted average remaining contractual life of the outstanding warrants was $0.25 per share and 0.35 year, respectively. The intrinsic value of “in the money” exercisable warrants at January 31, 2017 was $Nil.