Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Apr. 30, 2015
Apr. 30, 2014
OPERATING ACTIVITIES :    
Net loss from operations $ (6,997,782) $ (10,562,690)
Consolidated net loss from discontinued operations (2,106,449) (484,962)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:    
Depreciation and amortization 60,207 110,058
Inducement expense 5,492,842 0
Amortization of notes discount 853,417 4,301,146
Loss on extinguishment of senior secured convertible notes 0 1,299,304
Stock-based compensation 170,562 24,535
Interest expenses related to make-whole amount 1,889,716 0
Income on section 16 settlement (1,401,516) 0
Cash received on section 16 settlement 650,000 0
Gain on forgiveness of other payable to Zurich (883,757) 0
Change in the fair value of derivative liabilities 0 833,750
Provision for doubtful accounts 0 505,646
Amortization of debt issuance costs 0 278,864
Loss on sale of fixed assets 0 8,638
Changes in operating assets and liabilities:    
Restricted cash 0 1,869,178
Accounts receivable (1,879,137) (3,569,319)
Costs and estimated earnings in excess of billings on uncompleted contracts 10,914 (102,207)
Current assets held for sale 928,403 252,698
Prepaid expenses and other current assets (7,706) (55,160)
Other assets 37,392 24,488
Other assets held for sale 1,085,405 630,764
Income taxes payable (2,366) (43,033)
Accounts payable and accrued expenses 1,583,312 1,844,483
Current liabilities held for sale 742,106 (121,858)
Accrued severance expense (550,205) 1,520,205
Billings in excess of costs and estimated earnings on uncompleted contracts (102,102) 104,404
Deferred revenue 0 (113,503)
NET CASH USED IN OPERATING ACTIVITIES (870,409) (1,444,571)
INVESTING ACTIVITIES:    
Cash received on sale of Seattle 1,561,000 0
Acquisition of property and equipment (46,912) (78,544)
Addition on acquisition of BTX capitalized software (2,279) 0
Payment for sale of BTX (59,097) 0
Cash received from acquisition of BTX software 0 1,185,000
NET CASH PROVIDED BY INVESTING ACTIVITIES 1,452,712 1,106,456
FINANCING ACTIVITIES:    
Repayments under loans payable, net (4,043) (76,637)
Repayment to senior secured convertible notes 0 (9,507)
Repayments under other payable to Zurich (290,000) (210,229)
Borrowings under loan payable obligations 0 21,440
Borrowings under short-term bank loan 0 816,100
Borrowings from related party 0 790,255
Debt issuance costs 0 (137,869)
Dividend paid on preferred stock (146,520) (36,993)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (440,563) 1,156,560
Effect of exchange rate changes on cash 45,550 (51,598)
NET INCREASE IN CASH AND CASH EQUIVALENTS 187,290 766,847
CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR 2,177,070 1,410,223
CASH AND CASH EQUIVALENTS, END OF THE YEAR 2,364,360 2,177,070
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Settlement of severance obligation upon sale of Pride 970,000 0
Conversion of Series E preferred stock to promissory notes 2,438,000 0
Settlement of debt, make-whole interest and other liabilities on sale of BTX 1,962,000 0
Settlement of capitalized software and other assets on sale of BTX 1,883,000 0
Declaration on preferred dividend payable 2,508,518 0
Issuance of common stock for the conversion of Notes and accrued interest 0 3,114,816
Acquisition of BTX Software from issuance of Series E Preferred Stock 0 2,635,147
Reclassification of fair value of derivative liability on Notes and Warrants to additional paid-in capital upon the Amendment and Note Amendment 0 7,166,991
Reclassification of fair value of derivative liability on Notes to additional paid-in capital upon conversion of Notes 0 686,856
Conversion of dividend payable related to make-whole amount to common stock 1,622,954 0
Issuance of notes for property and equipment 0 74,190
Acquisition of BTX Software from assumption of BTX Note 0 500,000
Series F-1 preferred stock Series G-1 preferred stock [Member]    
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock for the conversion of Notes and accrued interest 973,180 0
Series F preferred stock Series G preferred stock [Member]    
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock for the conversion of Notes and accrued interest 451,141 0
Series F-1 Preferred Stock [Member]    
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion of Series F-1 Preferred stock to common stock 1,669,915 0
Conversion of dividend payable related to make-whole amount to common stock 133,532 0
Series G-1 Preferred Stock [Member]    
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion of Series F-1 Preferred stock to common stock 110,035 0
Pride [Member]    
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:    
Gain on sale (798,897) 0
Seattle Inc [Member]    
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:    
Gain on sale 374,932 0
BTX Trade [Member]    
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:    
Gain on sale $ (19,700) $ 0