Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Notes)

v2.4.0.8
INCOME TAXES (Notes)
 12 Months Ended
Apr. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Net deferred tax assets consist of the following components as of April 30:

 
2013
 
2012
NOL
$
(35,883,321
)
 
$
(35,372,287
)
Net Loss
(1,598,102
)
 
(1,899,312
)
Shares issued for services
984,696

 
1,570,280

Depreciation/Amortization
—

 
24,659

Impairment/disposal of Assets
—

 
79,503

Shares issued for interest expense
102,203

 
101,750

Amortization of Debt Discount
(5,695
)
 
(10,798
)
Loss on conversion of debt
39,000

 
—

Gain on forgiveness of debt
(277,085
)
 
(370,619
)
Bad Debt Expense
—

 
6,497

NOL
$
(36,638,304
)
 
$
(35,883,321
)
Effective Rate
0.34

 
0.34

Deferred Tax Asset
(12,457,023
)
 
(12,200,329
)
Valuation Allowance
12,457,023

 
12,200,329

Deferred Tax Asset
$
—

 
$
—



The FASB's interpretation had no material impact on the Company's financial statements for the year ended April 30, 2013. As of April 30, 2013, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $36,638,304 that may be offset against future taxable income through 2032. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.

The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and causes a change in management's judgment about the recoverability of deferred tax assets, the impact of the change on the valuation is reflected in current income. For the year ended April 30, 2013, the valuation allowance increased $256,694.