7. RELATED PARTY TRANSACTIONS
|12 Months Ended|
Apr. 30, 2019
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
NOTE 7 – RELATED PARTY TRANSACTIONS
The Company had the following related party transactions during the years ended April 30, 2019 and 2018, respectively.
The Company owns 14.5% of the equity in SG Austria and is reported on the cost method of accounting. SG Austria has two subsidiaries: (i) Austrianova; and (ii) Austrianova Thailand. The Company purchased products and services from these subsidiaries in the approximate amounts of $168,000 and $1,389,000 in the years ended April 30, 2019 and 2018, respectively.
In April 2014, the Company entered the Vin-de-Bona Consulting Agreement pursuant to which it agreed to provide professional consulting services to the Company. Vin-de-Bona is owned by Prof. Günzburg and Dr. Salmons, both of whom are involved in numerous aspects of the Company’s scientific endeavors relating to cancer and diabetes (Prof. Gunzburg is the Chairman of Austrianova, and Dr. Salmons is the Chief Executive Officer and President of Austrianova). The term of the agreement is for 12 months, automatically renewable for successive 12-month terms. After the initial term, either party can terminate the agreement by giving the other party 30 days’ written notice before the effective date of termination. The amounts incurred for the years ended April 30, 2019 and 2018 were approximately $18,000 and $35,000, respectively. In addition, during the year ended April 30, 2019 the Company issued 2 million common shares to Prof. Günzburg and 500,000 common shares to Dr. Salmons. The Company recorded a noncash consulting expense of approximately $140,000 relating to these share issuances for the year ended April 30, 2019.
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://fasb.org/us-gaap/role/ref/legacyRef