5. Stockholders Equity

3 Months Ended

Jul. 31, 2011

Notes to Financial Statements

5. Stockholders Equity

NOTE E- STOCK HOLDERS EQUITY

(A) Preferred Stock- The Company has 5,200 preferred shares authorized to be issued with the rights and preferences to be determined by the Board of Directors as of July 31, 2010 and 2011.

(B) Stock Options- On November 7, 2004 the Board of Directors adopted the 2004 Stock Option Plan, authorizing issuance of options on up to 60 million shares of the Company’s common stock.  In December of 2004, the Board approved issuance of options to purchase approximately 48,000,000 shares of its common stock to existing officers, directors and employees, subject to shareholder approval of the plan. In May 2005, such approval was received. The fair value of the options on the grant date was $480,000 calculated using the Black-Scholes Option Pricing Model. As of July 31, 2011 approximately 11,215,000 were deemed vested based on length of service with the Company since the date the Company’s Plan of Reorganization was approved. Terminated employees who have elected not to exercise options have forfeited their options. Approximately 37,000,000 total options have been forfeited since the adoption of the Stock Option Plan.

The following table summarizes the transactions of the Company’s stock options for the two-year period ended July 31, 2011:

	Number of Shares		Weighted Average Exercise Price
Options outstanding, July 31, 2009		12,430,000	$	0.01
Options granted		-		-
Options exercised		-		-
Options forfeited		(1,215,000)		0.01
Options outstanding, July 31, 2010		11,215,000	$	0.01
Options granted		-		-
Options exercised		-		-
Options forfeited		-		-
Options outstanding, July 31,2011		11,215,000	$	0.01

July 31, 2011 Options Outstanding							Options Exercisable
Range of Exercise Price		Number Outstanding at April 30, 2011		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable at April 30, 2011		Weighted Average Exercise Price
$	.01		11,215,000	1.83 years	$	.01		11,215,000	$	.01

July 31, 2010 Options Outstanding							Options Exercisable
Range of  Exercise Price		Number Outstanding at April 30, 2010		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable at April 30, 2010		Weighted Average Exercise Price
$	.01		11,215,000	2.83 years	$	.01		11,215,000	$	.01