AGREEMENTS WITH RELATED PARTY

12 Months Ended

Apr. 30, 2016

AGREEMENTS WITH RELATED PARTY

AGREEMENTS WITH RELATED PARTY

NOTE 11—AGREEMENTS WITH RELATED PARTY

Electronika's requirements for raw material, labor, testing, packaging and related services required to complete the manufacture, delivery and sale of the ballast transformers were outsourced pursuant to a Manufacturing Agreement (“Agreement”) with Magnetika, a corporation owned by the Caloyeras family. Under the terms of the Agreement, Electronika was obligated to order all of its ballast transformer requirements exclusively from Magnetika. In exchange for the services provided to Electronika under the Agreement, Magnetika received 40% of the net sales price of all ballast transformers sold by Electronika. The Agreement was terminated pursuant to its terms in February 2016 in connection with the dissolution of Electronika and the winding up of its affairs. In the fiscal year ended April 30, 2016, Electronika recouped incurred costs of $6,000 for goods purchased, (all of which was paid prior to the dissolution of Electronika). In the fiscal year ended April 30, 2015, Electronika incurred costs of $2,000 for goods purchased on trade terms of net 20 days pursuant to the Agreement. Of the amount purchased, $4,000 was due and payable as of April 30, 2015.