8. RELATED PARTY TRANSACTIONS
|6 Months Ended|
Oct. 31, 2015
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
The Company had the following related party transactions:
The Company owns 14.5% of the equity in SG Austria. This equity interest is reported on the cost method of accounting. SG Austria has two subsidiaries: (i) Austrianova; and (ii) Austrianova Thailand Ltd. For the three months and six months ending October 31, 2015, the Company has purchased products from these subsidiaries in the approximate amount of $155,000 and $203,000 and for the three months and six months ending October 31, 2014, $6,000 and $6,000, respectively.
Effective April 1, 2014, the Company entered into a consulting agreement with Vin-de-Bona Trading Company Pte. Ltd. (Vin-de-Bona) to provide professional consulting services to the Company. Vin-de-Bona is owned by Prof. Dr. Walter H. Günzburg and Dr. Brian Salmons, who are each an officer of SG Austria. The term of the agreement is for 12 months, which is automatically renewed for successive 12 month terms. After the initial term, either party has the right to terminate the consulting agreement by giving the other party 30 days written notice before the effective date of termination. For the three months and six months ending October 31, 2015, the amount the Company paid Vin-de-Bona for consulting services were approximately $11,000 and $19,000 and for the three months and six months ending October 31, 2014, approximately $6,000 and $9,000, respectively.
Under the Cannabis Licensing Agreement, the Company is required to pay Austrianova an Upfront Payment of $2,000,000. The Company has the right to make periodic monthly partial payments of the Upfront Payment in amounts to be agreed upon between the parties prior to each such payment being made. Effective October 19, 2015, the parties extended the date by which the Upfront Payment must be made until June 30, 2016. As of October 31, 2015, the Company has paid Austrianova $1,400,000 of the Upfront Payment (see Note 4).
With the exception of Thomas Liquard, the Board has determined that none of the Companys directors satisfies the definition of an Independent Director as established in the NASDAQ Marketplace Rules. Mr. Liquard has been determined by the Board to be an Independent Director.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef