Note 5 - Deferred Credits Payable

3 Months Ended

Jul. 31, 2017

Notes to Financial Statements

Customer Advances and Deposits Disclosure [Text Block]

 

(

5

) Deferred Credits Payable

During the year ended

April 

30,

2001,

in connection with the sale of common stock to an investor, the Company received

$0.6

million from the investor in exchange for an option to purchase up to

500,000

metric tons of carbon emissions credits generated by the Company during the years

2008

through

2012,

at a

30%

discount from the then-prevailing market rate. If the Company received emission credits under applicable laws and failed to sell to the investor the credits up to the full amount of emission credits covered by the option, the investor was entitled to liquidated damages equal to

30%

of the aggregate market value of the shortfall in emission credits (subject to a limit on the market price of emission credits).  Under the terms of the agreement, if the Company did

not

become entitled under applicable laws to the full amount of emission credits covered by the option by

December 

31,

2012,

the Company was obligated to return the option fee of

$0.6

million, less the aggregate discount on any emission credits sold to the investor prior to such date. In

December 2012,

the Company and the investor agreed to extend the period for the sale of emission credits until

December 31, 2017.

As of

July 31, 2017,

the Company has

not

generated any emissions credits eligible for purchase under the agreement. As a result, the Company anticipates returning the option fee of

$0.6

million. Therefore, the

$0.6

million is reflected in the consolidated balance sheets within “Deferred credits payable current” as of

July 31, 2017

and

April 30, 2017,

respectively.