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Related Party Disclosures
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9 Months Ended |
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Jan. 31, 2012
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| Related Party Transactions [Abstract] | |
| Related Party Transactions Disclosure [Text Block] |
NOTE 12 - RELATED PARTY TRANSACTIONS
On February 11, 2009, the Company and Charlston Kentrist 41 Direct, Inc. (CK-41) restructured its Marketing Agreement (the “restructured agreement”) surrounding purEffect ™, an acne treatment system. Under the terms of the restructured agreement, the Company will transfer all of its rights to purEffect ™ to CK-41 for four million two hundred-fifty thousand (4,250,000) shares of CK-41 common stock at the price of $0.01 per share. CK-41 will also grant the Company a three-year warrant to purchase an additional four million two hundred-fifty thousand (4,250,000) shares of common stock at $6.00 per share. Additionally, the Company will receive a two percent (2%) royalty on worldwide purEffect ™ adjusted net sales. The restructured agreement set minimum royalty payments of one hundred-fifty thousand ($150,000) dollars payable March 1, 2010 and two hundred-fifty thousand ($250,000) dollars payable on March 1, 2011. In addition to these royalty payments, a one hundred thousand ($100,000) dollar late penalty is due if not paid by the appropriate due date. The Company was also guaranteed to hold one seat on the Board of Directors of CK-41. In the event royalty payments were not paid in full, the agreement included a full product recall right, that Nuvilex can, at its option, recall the product, advertising, and all other aspects of purEffect ™ treatment spent or accumulated to date, back to Nuvilex. This would then allow Nuvilex the opportunity to develop purEffect ™ from that point forward. As of January 31, 2012, CK-41 remains delinquent in its payments and the associated penalties. Accordingly, the Company has no assurance this royalty payment will be made for the purEffect ™ product and is considering appropriate activities as a result. As of January 31, 2012 the Company was indebted to its CEO for a $100,000 note payable, $12,005 for advances to cover certain operating expenses and $241 of accrued interest. The note bears interest at 8% and is due within one year. The $12,005 was repaid in February 2012. As of January 31, 2012 the Company was indebted to another officer for $22,700 plus $1,816 of accrued interest. The loan accrues interest at 8% and is due with one year. On October 28, 2011 the Company entered into a note payable with a majority shareholder for $60,000. The note accrues interest at 6% per annum and is due October 28, 2014. In the event of default the note holder, at its sole discretion, can convert the note into super voting convertible preferred class of stock for every dollar invested. On November 23, 2011 the Company entered into a note payable with a majority shareholder for $100,000. The note accrues interest at 6% per annum and is due November 23, 2014. In the event of default the note holder, at its sole discretion, can convert the note into super voting convertible preferred class of stock for every dollar invested. On November 29, 2011 the Company entered into a note payable with a majority shareholder for $100,000. The note accrues interest at 6% per annum and is due November 29, 2014. In the event of default the note holder, at its sole discretion, can convert the note into super voting convertible preferred class of stock for every dollar invested. As of January 31, 2012 the Company was indebted to a majority shareholder for $27,934 for monies loaned to the company to pay for certain operating expense. The loan accrues interest at 8% and is due with one year. |