Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Aug. 11, 2020 | Oct. 31, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | PharmaCyte Biotech, Inc. | ||
Entity Central Index Key | 0001157075 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 2,333,810,405 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Public Float | $ 44,427,991 | ||
Entity Current Reporting Status | Yes | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Interactive Data Current? | Yes | ||
Incorporation State | NV | ||
Entity File Number | 333-68008 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Current Assets: | ||
Cash | $ 894,861 | $ 515,253 |
Prepaid expenses and other current assets | 142,785 | 138,151 |
Total Current Assets | 1,037,646 | 653,404 |
Other assets: | ||
Intangibles | 3,549,427 | 3,549,427 |
Investment in SG Austria | 1,572,193 | 1,572,193 |
Other assets | 7,372 | 7,372 |
Total other assets | 5,128,992 | 5,128,992 |
Total Assets | 6,166,638 | 5,782,396 |
Current Liabilities: | ||
Accounts payable | 185,842 | 121,885 |
Accrued expenses | 816,638 | 620,966 |
Current portion of Small Business Administration - Paycheck Protection Program loan | 28,918 | 0 |
Total current liabilities | 1,031,398 | 742,851 |
Long term liabilities: | ||
Small Business Administration - Paycheck Protection Program loan | 46,282 | 0 |
Total Liabilities | 1,077,680 | 742,851 |
Stockholders' Equity | ||
Common stock, authorized: 2,490,000,000 shares, $0.0001 par value; 1,638,637,839 and 1,186,004,505 shares issued and outstanding as of April 30, 2020 and 2019, respectively | 163,864 | 118,600 |
Additional paid in capital | 108,805,062 | 104,966,158 |
Accumulated deficit | (103,858,259) | (100,031,371) |
Accumulated other comprehensive income (loss) | (21,709) | (13,842) |
Total stockholders' equity | 5,088,958 | 5,039,545 |
Total Liabilities and Stockholders' Equity | $ 6,166,638 | $ 5,782,396 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2020 | Apr. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 2,490,000,000 | 2,490,000,000 |
Common stock issued | 1,638,637,839 | 1,186,004,505 |
Common stock, outstanding | 1,638,637,839 | 1,186,004,505 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues: | ||
Revenue | $ 0 | $ 0 |
Operating Expenses: | ||
Research and development costs | 301,221 | 460,052 |
Compensation expense | 1,586,583 | 1,555,258 |
Director fees | 316,892 | 406,812 |
Legal and professional fees | 459,146 | 299,963 |
General and administrative | 1,162,553 | 1,378,544 |
Total operating expenses | 3,826,395 | 4,100,629 |
Loss from operations | (3,826,395) | (4,100,629) |
Other income (expense): | ||
Interest expense | (453) | 0 |
Other income (expense) | (40) | 33,401 |
Total other income (expense), net | (493) | 33,401 |
Net loss | $ (3,826,888) | $ (4,067,228) |
Basic and diluted loss per share | $ 0 | $ 0 |
Weighted average shares outstanding basic and diluted | 1,355,717,271 | 1,100,104,338 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||
Net loss | $ (3,826,888) | $ (4,067,228) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (7,867) | (9,133) |
Other comprehensive loss | (7,867) | (9,133) |
Comprehensive loss | $ (3,834,755) | $ (4,076,361) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Beginning balance, shares at Apr. 30, 2018 | 1,013,260,644 | ||||
Beginning balance, value at Apr. 30, 2018 | $ 101,326 | $ 101,626,215 | $ (95,964,143) | $ (4,709) | $ 5,768,689 |
Shares issued for compensation, shares | 6,600,000 | ||||
Shares issued for compensation, value | $ 660 | 292,669 | 293,329 | ||
Shares issued for services, shares | 4,450,000 | ||||
Shares issued for services, value | $ 445 | 316,094 | 316,539 | ||
Shares issued for cash, net of issuance costs, shares | 161,693,861 | ||||
Shares issued for cash, net of issuance costs, value | $ 16,169 | 2,308,831 | 2,325,000 | ||
Stock options granted | 412,349 | 412,349 | |||
Foreign currency translation adjustment | (9,133) | (9,133) | |||
Net loss | (4,067,228) | (4,067,228) | |||
Ending balance, shares at Apr. 30, 2019 | 1,186,004,505 | ||||
Ending balance, amount at Apr. 30, 2019 | $ 118,600 | 104,966,158 | (100,031,371) | (13,842) | 5,039,545 |
Shares issued for compensation, shares | 6,600,000 | ||||
Shares issued for compensation, value | $ 660 | 367,990 | 368,650 | ||
Shares issued for services, shares | 9,700,000 | ||||
Shares issued for services, value | $ 970 | 472,171 | 473,141 | ||
Shares issued for cash, net of issuance costs, shares | 436,333,334 | ||||
Shares issued for cash, net of issuance costs, value | $ 43,634 | 2,619,366 | 2,663,000 | ||
Stock options granted | 379,377 | 379,377 | |||
Foreign currency translation adjustment | (7,867) | (7,867) | |||
Net loss | (3,826,888) | (3,826,888) | |||
Ending balance, shares at Apr. 30, 2020 | 1,638,637,839 | ||||
Ending balance, amount at Apr. 30, 2020 | $ 163,864 | $ 108,805,062 | $ (103,858,259) | $ (21,709) | $ 5,088,958 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (3,826,888) | $ (4,067,228) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock issued for services | 473,141 | 316,539 |
Stock issued for compensation | 368,650 | 293,329 |
Stock-based compensation - options | 379,375 | 412,349 |
Change in operating assets and liabilities: | ||
Increase in prepaid expenses and other current assets | (4,634) | 85,916 |
Increase (decrease) in accounts payable | 63,958 | (230,736) |
Increase in accrued expenses | 208,025 | 311,919 |
Net cash used in operating activities | (2,338,373) | (2,877,912) |
Cash flows from investing activities: | ||
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from sale of Series A Preferred Stock | 1 | 0 |
Repurchase of Series A Preferred Stock | (1) | 0 |
Use of funds for payment of insurance financing loan | (12,352) | 0 |
Proceeds from Small Business Administration - Paycheck Protection Program | 75,200 | 0 |
Proceeds from sale of common stock, net of issuance costs | 2,663,000 | 2,342,500 |
Net cash provided by financing activities | 2,725,848 | 2,342,500 |
Effect of currency rate exchange on cash | (7,867) | (9,133) |
Net increase (decrease) in cash | 379,608 | (544,545) |
Cash at beginning of the year | 515,253 | 1,059,798 |
Cash at end of the year | 894,861 | 515,253 |
Supplemental disclosures of cash flows information: | ||
Cash paid during the years for taxes | 800 | 800 |
Cash paid during the year for interest expense | 453 | 0 |
Supplemental schedule of noncash investing and financing activity: | ||
Issuance costs for shares issued | $ 0 | $ 17,500 |
1. NATURE OF BUSINESS
1. NATURE OF BUSINESS | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NOTE 1 – NATURE OF BUSINESS The Company is a biotechnology company focused on developing and preparing to commercialize cellular therapies for cancer and diabetes based upon a proprietary cellulose-based live cell encapsulation technology known as “Cell-in-a-Box ® ® The Company is developing therapies for solid tumor cancers involving the encapsulation of live cells placed in the body to enable the activation of cancer-killing drugs to the source of the cancer. The Company is also examining ways to exploit the benefits of the Cell-in-a-Box ® Cannabis In addition, the Company is involved in preclinical studies to determine if its cancer therapy can slow the production and/or accumulation of malignant ascites fluid in the abdomen that accompanies the growth of several types of abdominal cancers. The Company is also developing a therapy for Type 1 diabetes and insulin-dependent Type 2 diabetes based upon the encapsulation of a human liver cell line genetically engineered to produce, store and secrete insulin at levels in proportion to the levels of blood sugar in the human body using our Cell-in-a-Box ® ® Finally, the Company licensed from Hai Kang the right to sell and distribute COVID-19 diagnostic kits. Pursuant to the Hai Kang License Agreement, the Company may directly (or through a third party) conduct research, use, develop, market, sell, distribute, import and export these kits for human and veterinary uses in North America, the United Kingdom and certain European cites. Impact of the COVID-19 Pandemic on the Company’s Operations The COVID-19 pandemic is causing significant, industry-wide delays in clinical trials. Although the Company is not yet in a clinical trial, one is being planned. Currently, clinical trials are being delayed due to COVID-19. There are numerous reasons for these delays. For example, patients have shown a reluctance to enroll or continue in a clinical trial due to fear of exposure to COVID-19 when they are in a hospital or doctor’s office. There are local, regional and state-wide shelter-in-place orders and regulations. These discourage and interfere with patient visits to a doctor’s office if the visit is not COVID-19 related. Healthcare providers and health systems are shifting their resources away from clinical trials toward the care of COVID-19 patients. The FDA and other healthcare providers are making product candidates for the treatment of COVID-19 a priority over product candidates unrelated to COVID-19. As of the date of this Report, the COVID-19 pandemic has had an impact upon the Company’s operations, although the Company believes that impact is not material. They primarily relate to delays in tasks associated with the preparation of the Company’s IND. As a result of the COVID-19 pandemic, commencement the Company’s planned clinical trial to treat LAPC may be delayed. Also, enrollment may be difficult for the reasons discussed above. In addition, after enrollment in the trial, if patients contract COVID-19 during their participation in the trial or are subject to isolation or shelter in place restrictions, this may cause them to drop out of our trial, miss scheduled therapy appointments or follow-up visits or otherwise fail to follow the trial protocol. If patients are unable to follow the trial protocol or if the trial results are otherwise affected by the consequences of the COVID-19 pandemic on patient participation or actions taken to mitigate COVID-19 spread, the integrity of data from the trial may be compromised or not be accepted by the FDA. This could impact or delay on the Company’s clinical development program. Given when the Company’s clinical trial to treat LAPC is planned to commence, it is highly speculative in projecting the effects of COVID-19 on the Company’s clinical development program and the Company generally. COVID-19 quickly and dramatically changes over time. Its evolution is difficult to predict, and no one is able to say with certainty when the pandemic will subside and life as we knew it before the pandemic will return to normal. Cancer Therapy Targeted Chemotherapy The Company is using the Cell-in-a-Box ® ® Pancreatic Cancer Therapy A critical unmet medical need exists for patients with LAPC whose pancreas tumors no longer respond to Abraxane ® ® Subject to FDA approval, the Company plans to commence a clinical trial involving patients with LAPC to test this hypothesis. The trial will take place initially in the U.S. with possible study sites in Europe at a later date. Cannabinoid Therapy to Treat Cancer The Company plans to use cannabinoids, constituents of the Cannabis Cannabis To further its Cannabis Cannabis ® ® Malignant Ascites Fluid Therapy The Company is also developing a therapy to delay the production and accumulation of malignant ascites fluid that results from many types of abdominal tumors. Malignant ascites fluid is secreted by abdominal tumors into the abdomen after the tumors have reached a certain stage of growth. This fluid contains cancer cells that can seed and form new tumors throughout the abdomen. This fluid accumulates in the abdominal cavity, causing swelling of the abdomen, severe breathing difficulties and extreme pain. Once an abdominal tumor reaches a certain stage of development, it produces malignant ascites in the abdominal cavity. Malignant ascites fluid must be removed by paracentesis on a periodic basis. This procedure is painful and costly. There is no therapy that the Company is aware of that prevents or delays the production and accumulation of malignant ascites fluid. The Company has been involved in a series of preclinical studies conducted by TD2 to determine if the combination of Cell-in-a-Box ® Diabetes Therapy Bio-Artificial Pancreas for Diabetes In addition, the Company plans to develop a therapy for Type 1 diabetes and insulin-dependent Type 2 diabetes. It is developing a therapy that involves encapsulation of human liver cells that have been genetically engineered to produce, store insulin and release insulin on demand at levels in proportion to the levels of blood sugar (glucose) in the human body. The encapsulation will be done using the Cell-in-a-Box ® ® COVID-19 Diagnostic Kits The Company entered into the Hai Kang License Agreement pursuant to which Hai Kang granted to the Company a license to conduct research, use, develop, market, sell, distribute, import and export the COVID-19 diagnostic kits for human and veterinary uses in North America, the United Kingdom and certain other European cities. Company Background and Material Agreements The Company is a Nevada corporation incorporated in 1996. In 2013, the Company restructured its operations to focus on biotechnology. The restructuring resulted in the Company focusing all its efforts upon the development of a novel, effective and safe way to treat cancer and diabetes. On January 6, 2015, the Company changed its name from Nuvilex, Inc. to PharmaCyte Biotech, Inc. to reflect the nature of its business. In 2011, the Company entered the SG Austria APA with SG Austria to purchase 100% of the assets and liabilities of SG Austria. Austrianova and Bio Blue Bird, then wholly owned subsidiaries of SG Austria, were to become wholly owned subsidiaries of the Company on the condition that the Company pay SG Austria $2.5 million and 100,000,000 shares of the common stock of the Company’s common stock. The Company was to receive 100,000 shares of common stock of Austrianova and nine bearer shares of Bio Blue Bird representing 100% of the ownership of Bio Blue Bird. Through two addenda to the SG Austria APA, the closing date of the SG Austria APA was extended twice by agreement between the parties. In June 2013, the Company and SG Austria entered a Third Addendum. The Third Addendum changed materially the transaction contemplated by the SG Austria APA. Under the Third Addendum, the Company acquired 100% of the equity interests in Bio Blue Bird and received a 14.5% equity interest in SG Austria. In addition, the Company received nine bearer shares of Bio Blue Bird to reflect its 100% ownership of Bio Blue Bird. The Company paid: (i) $500,000 to retire all outstanding debt of Bio Blue Bird; and (ii) $1.0 million to SG Austria. The Company also paid SG Austria $1,572,193 in exchange for the 14.5% equity interest of SG Austria. The Third Addendum required SG Austria to return the 100,000,000 shares of common stock held by SG Austria and for the Company to return the 100,000 shares of common stock of Austrianova the Company held. Effective as of the same date of the Third Addendum, the parties entered the Clarification Agreement to clarify and include certain language that was inadvertently left out of the Third Addendum. Among other things, the Clarification Agreement confirmed that the Third Addendum granted the Company an exclusive, worldwide license to use, with a right to sublicense, the Cell-in-a-Box ® ® With respect to Bio Blue Bird, Bavarian Nordic/GSF and Bio Blue Bird entered into the Bavarian Nordic/GSF License Agreement in July 2005 whereby Bio Blue Bird was granted a non-exclusive license to further develop, make, have made (including services under contract for Bio Blue Bird or a sub-licensee), by Contract Manufacturing Organizations, Contract Research Organizations, Consultants, Logistics Companies or others), obtain marketing approval, sell and offer for sale the clinical data generated from the second pancreatic cancer clinical trial which contained proprietary information from the 1 st Bavarian Nordic/GSF and Bio Blue Bird amended the Bavarian Nordic License Agreement in December 2006 to reflect: (i) the license granted was exclusive; (ii) the royalty rate increased from 3% to 4.5%; (iii) Bio Blue Bird assumed the patent prosecution expenses; and (iv) it was made clear that the license will survive as a license granted by one of the licensors if the other licensor rejects performance under the Bavarian Nordic License Agreement due to any actions or declarations of insolvency. In June 2013, the Company entered into the Diabetes Licensing Agreement pursuant to which the Company is provided an exclusive, worldwide license to use the Cell-in-a-Box ® In October 2014, the Company entered the Melligen Cell License Agreement. The Company plans to develop a therapy for diabetes by encapsulating the Melligen cells using the Cell-in-a-Box ® In December 2014, the Company entered the Cannabis Licensing Agreement pursuant to which it acquired from Austrianova an exclusive, worldwide license to use the Cell-in-a-Box ® ® In July 2016, the Company entered the Austrianova MOU pursuant to which Austrianova will actively work to seek an investment partner or partners who will finance clinical trials and further develop products for the therapies for cancer, in exchange for which the Company, Austrianova and any future investment partner or partners will each receive a share of the net revenue of applicable products in designated territories. Effective October 1, 2016, the parties amended the Bavarian Nordic/GSF License Agreement to include the right to import, reflect ownership and notification of improvements, clarify which provisions survive expiration or termination of the Bavarian Nordic/GSF License Agreement, to provide rights to Bio Blue Bird to the clinical data after expiration of the licensed patent rights and to change the notice address and recipients of Bio Blue Bird. In August 2017, the Company entered into the Binding Term Sheet with SG Austria and Austrianova pursuant to which the parties reached an agreement to amend certain provisions in the SG Austria APA, the Diabetes Licensing Agreement the Cannabis Licensing Agreement and the Vin-de-Bona Consulting Agreement. In May 2018, the Company entered into agreements with SG Austria and Austrianova to amend certain provisions of the SG Austria APA, the Diabetes Licensing Agreement, the Cannabis Licensing Agreement and the Vin-de-Bona Consulting Agreement pursuant to the Binding Term Sheet. The Binding Term Sheet Amendments provide that the Company’s obligation to make milestone payments to Austrianova are eliminated in their entirety under the Cannabis License Agreement and the Diabetes License Agreement, as amended. The Binding Term Sheet Amendments also provide that the Company’s obligation to make milestone payments to SG Austria pursuant to the SG Austria APA, as amended and clarified, is eliminated in their entirety. One of the Binding Term Sheet Amendments also provides that the scope of the Diabetes License Agreement is expanded to include all cell types and cell lines of any kind or description now or later identified, including, but not limited to, primary cells, mortal cells, immortal cells and stem cells at all stages of differentiation and from any source specifically designed to produce insulin for the treatment of diabetes. In addition, one of the Binding Term Sheet Amendments provides that the Company has a 5-year right of first refusal from August 30, 2017 in the event that Austrianova chooses to sell, transfer or assign at any time during this period the Cell-in-a-Box ® ® Bac-in-a-Box® technology is a means to protect, isolate, store and transport living bacteria and yeast). ® The Binding Term Sheet Amendments further provide that the royalty payments on gross sales as specified in the SG Austria APA, the Cannabis License Agreement and the Diabetes License Agreement will be changed to 4%. They also provide that the royalty payments on amounts received by the Company from sublicensees’ gross sales under the same agreements will be changed to 20% of the amount received by the Company’s sublicensees, provided, however , The Binding Term Sheet Amendments also provide that Austrianova will receive 50% of any other financial and non-financial consideration received from the Company’s sublicensees of the Cell-in-a-Box ® In April 2020, the Company entered into the Hai Kang License Agreement pursuant to which Hai Kang granted to the Company a license to certain technology owned or controlled by Hai Kang related to COVID-19 diagnostic kits. Pursuant to the Hai Kang License Agreement, the Company may directly (or through a third party) conduct research, use, develop, market, sell, distribute, import and export Products for human and veterinary uses in North America, the United Kingdom and certain other European cites. A “Product” is defined as any existing Kit of Hai Kang or any future Kit derived from Hai Kang’s Kits and includes an in vitro diagnostic test that is designed, manufactured and used within a single laboratory for which the FDA is not enforcing any premarket review or other regulatory approval requirements. |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. The Company operates independently and through four wholly owned subsidiaries: (i) Bio Blue Bird; (ii) PharmaCyte Biotech Europe Limited; (iii) PharmaCyte Biotech Australia Pty. Ltd.; and (iv) Viridis Biotech, Inc. and are prepared in accordance with U.S. GAAP and the rules and regulations of the Commission. Intercompany balances and transactions are eliminated. The Company’s 14.5% investment in SG Austria is presented on the cost method of accounting. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates these estimates including those related to fair values of financial instruments, intangible assets, fair value of stock-based awards, income taxes and contingent liabilities, among others. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. Intangible Assets The Financial Accounting Standards Board ("FASB") standard on goodwill and other intangible assets prescribes a two-step process for impairment testing of goodwill and indefinite-lived intangibles, which is performed annually, as well as when an event triggering impairment may have occurred. The first step tests for impairment, while the second step, if necessary, measures the impairment. The Company has elected to perform its annual analysis at the end of its reporting year. The Company’s intangible assets are licensing agreements related to the Cell-in-a-Box ® These intangible assets have an indefinite life; therefore, they are not amortizable. The Company concluded that there was no impairment of the carrying value of the intangibles for the years ended April 30, 2020 and 2019. Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset are less than carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value. No impairment was identified or recorded during the years ended April 30, 2020 and 2019. Fair Value of Financial Instruments For certain of the Company’s non-derivative financial instruments, including cash, accounts payable and accrued expenses, the carrying amount approximates fair value due to the short-term maturities of these instruments. Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Income Taxes Deferred taxes are calculated using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. A valuation allowance is provided for deferred income tax assets when, in management’s judgment, based upon currently available information and other factors, it is more likely than not that all or a portion of such deferred income tax assets will not be realized. The determination of the need for a valuation allowance is based on an on-going evaluation of current information including, among other things, historical operating results, estimates of future earnings in different taxing jurisdictions and the expected timing of the reversals of temporary differences. The Company believes the determination to record a valuation allowance to reduce a deferred income tax asset is a significant accounting estimate because it is based on, among other things, an estimate of future taxable income in the U.S. and certain other jurisdictions, which is susceptible to change and may or may not occur, and because the impact of adjusting a valuation allowance may be material. In determining when to release the valuation allowance established against the Company’s net deferred income tax assets, the Company considers all available evidence, both positive and negative. Consistent with the Company’s policy, and because of the Company’s history of operating losses, the Company does not currently recognize the benefit of all its deferred tax assets, including tax loss carry forwards, which may be used to offset future taxable income. The Company continually assesses its ability to generate sufficient taxable income during future periods in which deferred tax assets may be realized. When the Company believes it is more likely than not that it will recover its deferred tax assets, the Company will reverse the valuation allowance as an income tax benefit in the statements of operations. The U.S. GAAP method of accounting for uncertain tax positions utilizes a two-step approach to evaluate tax positions. Step one, recognition, requires evaluation of the tax position to determine if based solely on technical merits it is more likely than not to be sustained upon examination. Step two, measurement, is addressed only if a position is more likely than not to be sustained. In step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement with tax authorities. If a position does not meet the more likely than not threshold for recognition in step one, no benefit is recorded until the first subsequent period in which the more likely than not standard is met, the issue is resolved with the taxing authority or the statute of limitations expires. Positions previously recognized are derecognized when the Company subsequently determines the position no longer is more likely than not to be sustained. Evaluation of tax positions, their technical merits and measurements using cumulative probability are highly subjective management estimates. Actual results could differ materially from these estimates. On December 22, 2017, the U.S. enacted the Tax Act which made significant changes to U.S. federal income tax law affecting the Company. Set forth below is a discussion of certain provisions of the Tax Act and the Company's assessment of the impact of such provisions on its financial statements. Effective January 1, 2018, the Company's U.S. income has been taxed at a 21% (subject to IRC Section 15 blended rate provisions) down from the 35 % federal corporate rate. ASC 740-10-25-47 requires the Company to recognize the effect of this rate change on its deferred tax assets and liabilities in the period the tax rate change was enacted. As a result, the Company concluded this caused the Company's net deferred taxes to be remeasured at the new lower tax rate. The Company maintains a full valuation allowance on its U.S. net deferred tax assets. Deferred tax asset remeasurement (tax expense) was offset by a net decrease in valuation allowance, that resulted in no impact on the Company's income tax expense. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the Coronavirus Disease 2019 outbreak. The Company maintains a full valuation allowance on its U.S. net deferred tax assets. Deferred tax asset remeasurement (tax expense) was offset by a net decrease in valuation allowance, that resulted in no impact on the Company's income tax expense. Therefore, the Company does not expect the provisions in the CARES Act will impact the Company’s consolidated financial statements. Research and Development R&D expenses consist of costs incurred for direct and overhead-related research expenses and are expensed as incurred. Costs to acquire technologies, including licenses, that are utilized in research and development and that have no alternative future use are expensed when incurred. Technology developed for use in the Company’s product candidates is expensed as incurred until technological feasibility has been established. R&D costs for the years ended April 30, 2020 and 2019 were $301,221 and $460,052, respectively. Stock-Based Compensation The Company recognizes stock-based compensation expense for only those awards ultimately expected to vest on a straight-line basis over the requisite service period of the award. The Company estimates the fair value of stock options using a Black-Scholes-Merton valuation model. This model requires the input of highly subjective assumptions, including the option's expected term and stock price volatility. In addition, judgment is also required in estimating the number of stock-based awards that are expected to be forfeited. Forfeitures are estimated based on historical experience at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management's judgment. Thus, if factors change and the Company uses different assumptions, the stock-based compensation expense could be materially different in the future. Concentration of Credit Risk The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. The Company maintains most of its cash balance at a financial institution located in California. Accounts at this institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Uninsured balances aggregated approximately $618,000 and $127,000 at April 30, 2020 and 2019, respectively. The Company has not experienced any losses in such accounts. Management believes it is not exposed to any significant credit risk on cash. Foreign Currency Translation The Company translates the financial statements of its foreign subsidiary from the local (functional) currencies to U.S. dollars in accordance with FASB ASC 830, Foreign Currency Matters Going Concern The accompanying Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern; however, the following conditions raise substantial doubt about the Company's ability to do so. As of April 30, 2020, the Company has an accumulated deficit of $103,858,259 and incurred a net loss for year ended April 30, 2020 of $3,826,888. The Company requires substantial additional capital to finance its planned business operations and expects to incur operating losses in future periods due to the expenses related to the Company’s core businesses. The Company has not realized any revenue since it commenced doing business in the biotechnology sector, and there can be no assurance that it will be successful in generating revenues in the future in this sector. The Consolidated Financial Statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Over the past year, funding was provided by investors to maintain and expand the Company. Sales of the Company’s common stock were made under the Second S-3 allowing for offerings of up to $50 million dollars in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act or transactions structured as a public offering of a distinct block or blocks of the shares of the Company’s common stock. Over the past year, the Company continued to acquire funds through the Company’s Second S-3 pursuant to which the placement agent sells shares of common stock “at-the-market” in a program which is structured to provide up to $25 million to the Company less certain commissions pursuant to the Second S-3. From May 1, 2019 through April 30, 2020 the Company raised capital of approximately $2.15 million in Block Trade transactions. Additionally, the Company raised approximately $500,000 through the sale of unregistered shares of its Common Stock in private placement transactions. Subsequent to fiscal year end, the Company raised additional capital in the amount of approximately $4.7 million from Block Trades and “at-the-market” trades. As of the date of this Report, the Company has approximately $4.9 million in its bank account. With the filing of this Report, the S-3 will no longer be available to the Company to use to raise capital. The Company plans to continue to sell unregistered shares to raise capital to fund operations and R&D expenses. Management determined that these plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company believes the cash on hand at April 30, 2020, the potential sales of unregistered shares of its common stock and any public offerings of common stock in which the Company may engage in will provide sufficient capital to meet the Company’s capital requirements and to fund the Company’s operations through August 31, 2021. Recent Accounting Pronouncements On May 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company elected the available practical expedients on adoption. Adoption of the new standard resulted in an immaterial amount of total lease liabilities and ROU assets of as of May 1, 2019. There were no material impacts on the Company’s consolidated financial statements resulting from the adoption during the year ended April 30, 2020 of: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting; ASC Topic 326: Codification Improvements to Financial Instruments Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement; Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
3. ACCRUED EXPENSES
3. ACCRUED EXPENSES | 12 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 3 – ACCRUED EXPENSES Accrued expenses at April 30, 2020 and 2019 are summarized below: 2020 2019 Payroll related costs $ 435,577 $ 358,616 Share issuance compensation – 240,015 Director and Officer insurance financing 113,245 – Other 267,816 22,335 Total $ 816,638 $ 620,966 The Company financed the Director and Officer insurance policy. The term of the policy is from March 8, 2020 through March 8, 2021. The financing agreement has an interest rate of 4.25% per annum and requires eight monthly payments of $12,806. The unpaid balances as of April 30, 2020 of $113,245 is included in accrued expenses. |
4. SMALL BUSINESS ADMINISTRATIO
4. SMALL BUSINESS ADMINISTRATION - PAYCHECK PROTECTION PROGRAM | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
SMALL BUSINESS ADMINISTRATION - PAYCHECK PROTECTION PROGRAM | NOTE 4 – SMALL BUSINESS ADMINISTRATION – PAYCHECK PROTECTION PROGRAM On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to provide financial aid to family and businesses impacted by the COVID-19 pandemic. The Company participated in the CARES Act, and on April 15, 2020, the Company entered into a note payable with a bank under the Small Business Administration (“SBA”), Paycheck Protection Program (“PPP”) in the amount of $75,200. This note payable matures on April 15, 2022 with a fixed interest rate of 1% per annum with interest deferred for six months. The PPP loan has an initial term of two years, is unsecured and guaranteed by the SBA. Under the terms of the PPP note, the Company may apply for forgiveness of the amount due on the PPP loan. The Company used the proceeds from the PPP loan for qualifying expenses as defined in the PPP. The Company intends to apply for forgiveness of the PPP loan in accordance with the terms of the Cares Act. However, the Company cannot assure at this time that the PPP loan will be forgiven partially or in full. If the loan is not forgiven based on the PPP guidelines to be issued by the SBA, as defined, then, the monthly payment amount will be $4,229 beginning on October 15, 2020 through April 15, 2022. The current portion of the PPP loan is $28,918 and the long-term portion is $46,282. |
5. COMMON STOCK TRANSACTIONS
5. COMMON STOCK TRANSACTIONS | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
COMMON STOCK TRANSACTIONS | NOTE 5 – COMMON STOCK TRANSACTIONS A summary of the Company’s compensatory stock activity and related weighted average grant date fair value information for the years ended April 30, 2020 and 2019 are as follows: During the year ended April 30, 2018, the Company issued 1,750,000 shares of common stock to four non-employee members of the Company’s Board of Directors (the “Board”) pursuant to Director Letter Agreements with the Company (“DLAs”). The shares vested upon issuance and the Company recorded a non-cash expense of $0 and $24,165 for the years ended April 30, 2020 and 2019, respectively. During the year ended April 30, 2018, the Company issued 4,200,000 shares of common stock to three consultants. The terms of two of the agreements are for twelve months and one agreement is for eighteen months. The shares vest monthly over a twelve-month to eighteen-month period and are subject to the consultants providing services under the agreements. The Company recorded a non-cash consulting expense in the amount of $0 and $73,800 for the years ended April 30, 2020 and 2019, respectively. There were zero unvested shares as of April 30, 2020 and 2019, respectively. The Company awarded 6,600,000 shares of common stock to officers as part of their compensation agreements for 2018. These shares vest monthly over a twelve-month period and are subject to them continuing service under the agreements. During the years ended April 30, 2020 and 2019, the Company recorded a non-cash compensation expense in the amount of $0 and $245,520. There were zero unvested shares as of April 30, 2020 and 2019, respectively. During the year ended April 30, 2019, the Company issued 4,450,000 shares of common stock to four consultants. The terms of the agreements are for twelve months. The shares vest monthly over a twelve-month period and are subject to the consultants providing services under the agreements. The Company recorded a non-cash consulting expense in the amount of $24,726 and $230,829 for the year ended April 30, 2020 and 2019, respectively. There were zero and 408,333 unvested shares as of April 30, 2020 and 2019, respectively. The Company awarded 6,600,000 shares of common stock to officers as part of their compensation agreements for 2019. These shares vest monthly over a twelve-month period and are subject to them continuing service under the agreements. During the years ended April 30, 2020 and 2019, the Company recorded a non-cash compensation expense in the amount of $278,891 and $47,809, respectively. There were zero and 4,400,000 unvested shares as of April 30, 2020 and 2019, respectively. During the year ended April 30, 2020, the four non-employee members of the Board were issued 2,000,000 shares of common stock pursuant to their DLAs and relating to their services for the prior year. The shares were fully vested upon issuance. The Company recorded a non-cash expense of $19,212 and $101,288 for the years ended April 30, 2020 and 2019, respectively. There were zero unvested shares of Common Stock remaining related to these DLAs as of April 30, 2020. During the year ended April 30, 2020, a consultant was issued 2,500,000 shares of common stock in respect of his services as the Chairman of the Company’s Medical and Scientific Advisory Board over a five-year period vested upon issuance are subject to the consultant providing services to the Company. The Company recorded a non-cash consulting expense in the amount of $22,584 and $107,749 for the years ended April 30, 2020 and 2019, respectively. There were zero unvested shares remaining related to his compensation agreements as of April 30, 2020. During the year ended April 30, 2020, the four non-employee members of the Board were issued 2,000,000 shares of Common Stock pursuant to their DLAs in respect of their service during that year. The shares were fully vested upon issuance. The Company recorded a non-cash expense of $65,339 for the year ended April 30, 2020, respectively. There were zero unvested shares remaining related to a DLA as of April 30, 2020. During the year ended April 30, 2020, five consultants were issued 3,200,000 shares of restricted Common Stock pursuant to their respective consulting agreement with the Company. The terms of the agreements are for twelve months. The share issuances covered current and prior years. The shares vest monthly over a twelve-month period and are subject to the consultants providing services under the consultant’s respective consulting agreement. The Company recorded a non-cash consulting expense in the amount of $108,575 and $17,350 for the years ended April 30, 2020 and 2019, respectively. There were 200,000 unvested shares remaining related to these consulting agreements as of April 30, 2020. The Company awarded 6,600,000 shares of common stock to officers as part of their compensation agreements for 2020. These shares vest monthly over a twelve-month period and are subject to them continuing service under the agreements. During the year ended April 30, 2020, the Company recorded a non-cash compensation expense in the amount of $89,759. There were 4,400,000 unvested shares as of April 30, 2020. During the year ended April 30, 2020, the Company entered into four stock subscription agreements resulting in the sale and issuance of one-hundred-three million (103 million) shares of restricted Common Stock. The Company received $515,000 from the sale of these shares. All shares were issued without registration under the Securities Act in reliance upon the exemption afforded by Section 4(a)(2) of the Securities Act. On September 28, 2017, the Second S-3 was declared effective by the Commission for a public offering of up to $50 million on a “shelf offering” basis. During the years ended April 30, 2020 and 2019, the Company sold and issued approximately 333.3 and 161.7 million shares of common stock, respectively, at prices ranging from $0.01 to $0.03 per share. Net of underwriting discounts, legal, accounting and other offering expenses, the Company received proceeds of approximately $2.1 and $2.3 million from the sale of these shares for the years ended April 30, 2020 and 2019, respectively. The Company has filed a prospectus supplement for an “at-the-market” offering with an investment bank as sales agent. The Company will not be eligible to use the S-3 once the 10-K is filed. A summary of the Company’s non-vested restricted stock activity and related weighted average grant date fair value information for the last three years ended April 30, 2020 are as follows: Shares Weighted Unvested, at April 30, 2018 5,600,000 $ 0.06 Granted 11,050,000 0.05 Vested (12,050,000 ) 0.06 Forfeited – – Unvested, at April 30, 2019 4,600,000 0.05 Granted 16,300,000 0.05 Vested (16,300,000 ) 0.05 Forfeited – – Unvested, at April 30, 2020 4,600,000 $ 0.06 |
6. STOCK OPTIONS AND WARRANTS
6. STOCK OPTIONS AND WARRANTS | 12 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS AND WARRANTS | NOTE 6 – STOCK OPTIONS AND WARRANTS Stock Options As of April 30, 2020, the Company had 67,200,000 outstanding stock options to its directors and officers (collectively, “Employee Options”) and consultants (“Non-Employee Options”). During the years ended April 30, 2020 and 2019, the Company granted 11,000,000 and 11,000,000 Employee Options, respectively. The fair value of the Employee Options at the date of grant was estimated using the Black-Scholes-Merton option-pricing model, based on the following weighted average assumptions: Years Ended April 30, 2020 2019 Risk-free interest rate 1.8% 2.0% Expected volatility 91% 97% Expected lives (years) 2.7 2.7 Expected dividend yield 0.00% 0.00% The Company’s computation of expected volatility is based on the historical daily volatility of its publicly traded stock. For stock option grants issued during years ended April 30, 2020 and 2019, the Company used a calculated volatility for each grant. The Company lacks adequate information about the exercise behavior now and has determined the expected term assumption under the simplified method provided for under ASC 718, which averages the contractual term of the Company’s stock options of five years with the average vesting term of two and one-half years for an average of three years. The dividend yield assumption of zero is based upon the fact the Company has never paid cash dividends and presently has no intention of paying cash dividends. The risk-free interest rate used for each grant is equal to the U.S. Treasury rates in effect at the time of the grant for instruments with a similar expected life. During the years ended April 30, 2020 and 2019, the Company granted Non-Employee Options of 1,200,000 and 1,200,000, respectively. The fair value of the Non-Employee Options was estimated using the Black-Scholes-Merton option-pricing model, based on the following weighted average assumptions: Years Ended April 30, 2020 2019 Risk-free interest rate 1.6% 2.5% Expected volatility 90% 98% Expected lives (years) 5.0 5.0 Expected dividend yield 0.00% 0.00% Non-Employee Option grants that do not vest immediately upon grant are recorded as an expense over the vesting period. Effective August 1, 2018 the Company adopted ASU 2018-07 early using the modified retrospective transition approach. The Company determined there was no transition adjustment upon adoption of ASU 2018-07. A summary of the Company’s stock option activity and related information for the two years ended April 30, 2020 are shown below: Options Weighted Weighted Outstanding, April 30, 2018 95,250,000 $ 0.11 $ 0.11 Issued 12,200,000 0.05 0.05 Forfeited – – – Exercised – – – Outstanding, April 30, 2019 107,450,000 0.11 0.11 Issued 12,200,000 0.04 0.04 Forfeited (52,450,000 ) 0.15 0.14 Exercised – – – Outstanding, April 30, 2020 67,200,000 $ 0.06 $ 0.06 Exercisable, April 30, 2020 61,000,000 $ 0.07 $ – Vested and expected to vest 67,200,000 $ 0.06 $ – A summary of the activity for unvested stock options during the years ended April 30, 2020 and 2019 is as follows: Options Weighted Unvested, April 30, 2018 7,200,000 $ – Granted 12,200,000 0.05 Vested (13,200,000 ) – Forfeited – – Unvested, April 30, 2019 6,200,000 – Granted 12,200,000 0.04 Vested (12,200,000 ) – Forfeited – – Unvested, April 30, 2020 6,200,000 $ 0.05 The Company recorded $338,050 and $320,178 of stock-based compensation related to the issuance of Employee Options to certain officers and directors in exchange for services during the years ended April 30, 2020 and 2019, respectively. At April 30, 2020, there remained $141,642 of unrecognized compensation expense related to unvested Employee Options granted to officers and directors, to be recognized as expense over a weighted-average period of the remaining eight months in the calendar year. The unvested options vest at 750,000 shares per month and are expected to be fully vested on December 31, 2020. The Company recorded $41,326 and $92,171 of stock-based compensation related to the issuance of Non-Employee Options in exchange for services during the years ended April 30, 2020 and 2019, respectively. The unvested Non-Employee Options vest at 100,000 shares per month and are expected to be fully vested on June 30, 2020. The following table summarizes the outstanding stock options by exercise price at April 30, 2020: Exercise Price Number of Weighted Weighted Number of Weighted Average $ 0.063 15,600,000 0.40 $ 0.063 15,600,000 $ 0.063 $ 0.104 10,450,000 1.20 $ 0.104 10,450,000 $ 0.104 $ 0.0685 600,000 1.00 $ 0.0685 600,000 $ 0.0685 $ 0.058 2,450,000 1.62 $ 0.058 2,450,000 $ 0.058 $ 0.0734 1,200,000 2.00 $ 0.0734 1,200,000 $ 0.0734 $ 0.0729 1,800,000 2.19 $ 0.0729 1,800,000 $ 0.0729 $ 0.089 1,200,000 2.22 $ 0.089 1,200,000 $ 0.089 $ 0.0553 500,000 1.22 $ 0.0553 500,000 $ 0.0553 $ 0.0558 9,000,000 1.60 $ 0.0558 9,000,000 $ 0.0558 $ 0.0534 1,200,000 3.35 $ 0.0534 1,200,000 $ 0.0534 $ 0.0539 1,000,000 1.50 $ 0.0539 1,000,000 $ 0.0539 $ 0.0683 500,000 1.58 $ 0.0683 500,000 $ 0.0683 $ 0.0649 500,000 1.72 $ 0.0649 500,000 $ 0.0649 $ 0.0495 9,000,000 2.33 $ 0.0495 9,000,000 $ 0.0495 $ 0.0380 1,200,000 4.40 $ 0.0380 1,000,000 $ 0.0380 $ 0.0404 1,000,000 2.00 $ 0.0404 1,000,000 $ 0.0404 $ 0.0370 500,000 2.09 $ 0.0370 500,000 $ 0.0370 $ 0.0340 500,000 2.22 $ 0.0340 500,000 $ 0.0340 $ 0.0408 9,000,000 2.81 $ 0.0408 3,000,000 $ 0.0408 Total 67,200,000 1.61 $ 0.06 61,000,000 $ 0.07 The aggregate intrinsic value of outstanding options as of April 30, 2020 was zero. This represents options whose exercise price was less than the closing fair market value of the Company’s common stock on April 30, 2020 of approximately $0.0245 per share. Warrants The warrants issued by the Company are equity-classified. The fair value of the warrants was recorded as additional paid-in-capital, and no further adjustments are made. For stock warrants paid in consideration of services rendered by non-employees, the Company recognizes consulting expense in accordance with the requirements of ASC 505. Effective May 30, 2018, the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,388,889 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.02 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $19,000. The warrants have a cashless exercise feature. Effective June 28, 2018, the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,923,077 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.03 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $38,000. The warrants have a cashless exercise feature. Effective November 1, 2018, the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 2,272,727 shares of common stock based upon a Block Trade pursuant to the engagement agreement with the Company’s placement agent dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $19,000. The warrants have a cashless exercise feature. Effective March 26, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,250,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $9,000. The warrants have a cashless exercise feature. Effective March 26, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,250,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $9,000. The warrants have a cashless exercise feature. Effective June 13, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,338,889 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $9,000. The warrants have a cashless exercise feature. Effective July 15, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,944,444 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $12,000. The warrants have a cashless exercise feature. Effective August 7, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 3,000,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $10,000. The warrants have a cashless exercise feature. Effective August 7, 2019 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 500,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $2,000. The warrants have a cashless exercise feature. Effective February 24, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,000,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $3,000. The warrants have a cashless exercise feature. Effective February 24, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,000,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $3,000. The warrants have a cashless exercise feature. Effective March 24, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 3,500,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $12,000. The warrants have a cashless exercise feature. Effective March 31, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 1,000,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $3,000. The warrants have a cashless exercise feature. Effective April 7, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 2,500,000 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of $0.01 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $17,000. The warrants have a cashless exercise feature. Effective April 21, 2020 the Company issued a common stock purchase warrant to Aeon for a Block Trade. The Company issued a warrant to purchase 833,333 shares of common stock based upon a Block Trade pursuant to the engagement agreement with Aeon dated February 22, 2018. The Company classified these warrants as equity, and the warrants have a term of five years with an exercise price of approximately $0.02 per share. Using the Black-Scholes-Merton option pricing model, the Company determined the aggregate value of these warrants to be approximately $9,000. The warrants have a cashless exercise feature. A summary of the Company’s warrant activity and related information for the two years ended April 30, 2020 are shown below: Warrants Weighted Outstanding, April 30, 2018 33,993,104 $ 0.10 Issued 8,084,693 – Expired – – Outstanding, April 30, 2019 42,077,797 0.09 Issued 16,666,666 – Expired (10,854,308 ) – Outstanding, April 30, 2020 47,890,155 – Exercisable, April 30, 2020 47,890,155 $ 0.05 The following table summarizes additional information concerning warrants outstanding and exercisable at April 30, 2020: Exercise Prices Number of Weighted Weighted $0.12 17,000,000 0.69 $0.065 769,231 1.64 $0.0575 869,565 1.93 $0.03 2,500,000 2.58 $0.026 1,923,077 3.16 $0.025 2,000,000 2.24 $0.018 1,388,889 3.08 $0.011 2,272,727 3.51 $0.01 5,000,000 4.42 $0.015 833,333 4.98 $0.009 3,333,333 4.17 $0.005 10,000,000 4.67 47,890,155 2.73 $ 0.05 |
7. LEGAL PROCEEDINGS
7. LEGAL PROCEEDINGS | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 7 – LEGAL PROCEEDINGS The Company is not currently a party to any pending legal proceedings, material or otherwise. There are no legal proceedings to which any property of the Company is subject. |
8. RELATED PARTY TRANSACTIONS
8. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS The Company had the following related party transactions during the years ended April 30, 2020 and 2019, 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 $153,000 and $168,000 in the years ended April 30, 2020 and 2019, 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 agreement has been automatically renewed annually. The amounts incurred for the years ended April 30, 2020 and 2019 were approximately $24,000 and $18,000, respectively. In addition, during the year ended April 30, 2020 the Company issued 250,000 shares of common stock to Dr. Salmons. The Company recorded a noncash consulting expense of approximately $10,000 relating to these share issuances for the year ended April 30, 2020. During the year ended April 30, 2020, the Company issued one share of Series A Preferred Stock to the Chief Executive Officer of the Company for $1 pursuant to a subscription agreement. The Series A Preferred Stock is described in detail in Note 12 – Preferred Stock. The Board exercised its right to have the Company redeem the one share of Series A Preferred Stock. It is no longer issued and outstanding. |
9. COMMITMENTS AND CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 – COMMITMENTS AND CONTINGENCIES The Company acquires assets still in development and enters R&D arrangements with third parties that often require milestone and royalty payments to the third-party contingent upon the occurrence of certain future events linked to the success of the asset in development. Milestone payments may be required, contingent upon the successful achievement of an important point in the development lifecycle of the pharmaceutical product (e.g., approval of the product for marketing by a regulatory agency). If required by the license agreements, the Company may have to make royalty payments based upon a percentage of the sales of the pharmaceutical products if regulatory approval for marketing is obtained. Office Lease Effective September 1, 2017, the Company entered into a lease for its Leased Premises in California. The term of the lease is for 24 months and expired on August 31, 2019. In May 2019, the Company entered into an additional one-year lease for the Leased Premises, commencing upon the expiration of the term of the prior lease. The term of the lease expires on August 31, 2020. On May 28, 2020, the Company entered into an additional six-month lease of the Leased Premises, commencing on September 1, 2020. The term of the new lease expires on February 28, 2021. Rent expenses for these offices for the years ended April 30, 2020 and 2019 were $30,964 and $34,153, respectively. The following table summarizes the Company’s aggregate future minimum lease payments required under the operating lease as of. Years Ending April 30, Amount 2021 $ 17,196 $ 17,196 Material Agreements The Company’s material agreements are identified and summarized in Note 1 – Nature of Business – Company Background and Material Agreements. Compensation Agreements The Company entered into executive compensation agreements with its three executive officers in March 2015, each of which was amended in December 2015 and March 2017. Each agreement has a term of two years with annual extensions thereafter unless the Company or the officer provides written notification of termination at least ninety days prior to the end of the term or subsequent extensions. The Company also entered a compensation agreement with a Board member in April 2015 which continued in effect until amended in May 2017. In May 2017, the Company amended the compensation agreement with the Board members and the terms continue in effect until a member is no longer on the Board. The Company has four independent directors. Each director receives the same compensation: (i) $12,500 in cash for each calendar quarter of service on the Board; (ii) 500,000 fully-paid, non-assessable shares of the Company’s restricted common stock (“Shares”) annually; and (iii) a five-year option to purchase 500,000 Shares annually at an exercise price equal to the fair market value of the Shares on the date of grant. The Shares and the option Shares fully vest on the date of the grants. |
10. INCOME TAXES
10. INCOME TAXES | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES At April 30, 2020, the Company had federal and state net operating loss carryforwards of approximately $44,863,000 and $41,203,000, respectively, available to offset against future taxable income; these operating loss carryforwards expire in 2020 through 2038. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. Based on the assessment of all available evidence including, but not limited to, the Company’s limited operating history in its core business and lack of profitability, uncertainties of the commercial viability of its technology, the impact of government regulations and healthcare reform initiatives and other risks normally associated with biotechnology companies, the Company has concluded that is more likely than not that these operating loss carryforwards will not be realized. Accordingly, 100% of the deferred tax valuation allowance has been recorded against these assets. Deferred income taxes reflect the net effect of temporary differences between the financial reporting carrying amounts of assets and liabilities and income tax carrying amounts of assets and liabilities. The components of the Company’s deferred tax assets and liabilities are as follows: April 30, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 12,904,396 11,849,290 Stock compensation 2,494,586 2,233,230 Other 129,976 105,251 Total deferred tax assets 15,528,958 14,187,771 Valuation allowance (15,528,958 ) (14,187,771 ) $ – $ – For all years presented, the Company did not recognize any deferred tax assets or liabilities. The net change in valuation allowance for the years ended April 30, 2020 and 2019 were increases of $1,341,187 and $952,170, respectively. The provision for income taxes differs from the provision computed by applying the Federal statutory rate to net loss before income taxes as follows: Years Ended April 30, 2020 2019 Federal benefit at statutory rate $ (803,646 ) (854,118 ) State income taxes, net of Federal taxes (327,199 ) (274,538 ) Permanent differences 248,908 170,032 Provision related to change in valuation allowance 1,341,187 952,170 Net valuation allowance for state tax deductions (402,882 ) – Other, net (56,368 ) 6,454 $ – $ – There have been no changes to the Company’s liability for unrecognized tax benefits during the year ended April 30, 2020. The Company files its income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. As of the year ended April 30, 2020, the tax returns for 2014 through 2019 remain open to examination by the Internal Revenue Service and various state tax authorities. The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of the years ended April 30, 2020 and 2019, the Company had accrued no interest or penalties related to uncertain tax positions. |
11. EARNINGS PER SHARE
11. EARNINGS PER SHARE | 12 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 11 – EARNINGS PER SHARE Basic earnings (loss) per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares and potentially dilutive shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would be outstanding if the potentially dilutive securities had been issued. Potential shares of common stock outstanding principally include stock options and warrants. During the years ended April 30, 2020 and 2019, the Company incurred losses. Accordingly, the effect of any common stock equivalent would be anti-dilutive during those periods and are not included in the calculation of diluted weighted average number of shares outstanding. The table below sets forth the basic loss per share calculations: Years Ended April 30, 2020 2019 Net loss $ (3,826,888 ) $ (4,067,228 ) Basic weighted average number of shares outstanding 1,355,717,271 1,100,104,338 Diluted weighted average number of shares outstanding 1,355,717,271 1,100,104,338 Basic and diluted loss per share $ (0.00 ) $ (0.00 ) The table below sets forth these potentially dilutive securities: Years Ended April 30, 2020 2019 Excluded options 67,200,000 107,450,000 Excluded warrants 47,890,155 42,077,797 Total excluded options and warrants 115,090,155 149,527,797 |
12. PREFERRED STOCK
12. PREFERRED STOCK | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
PREFERRED STOCK | NOTE 12 – PREFERRED STOCK The Company has authorized 10,000,000 shares of preferred stock, with a par value of $0.0001, of which one share has been designated as "Series A Preferred Stock". The one share of Series A Preferred Stock was issued on October 30, 2019 and repurchased by the Company on December 3, 2019. As of April 30, 2020, there are no shares of preferred stock issued and outstanding. The description of the Series A Preferred Stock below is qualified in its entirety by reference to the Company’s Articles of Incorporation, as amended. The Series A Preferred Stock has the following features: • There is one share of preferred stock designated as Series A Preferred Stock; • The Series A Preferred Stock has a number of votes at any time equal to the number of votes then held by all other shareholders of the Company having a right to vote on any matter plus one. The Certificate of Designations that designated the terms of the Series A Preferred Stock cannot be amended without the consent of the holder of the Series A Preferred Stock; • The Company may redeem the Series A Preferred Stock at any time for a redemption price of $1.00 paid to the holder of the share of Series A Preferred Stock; and • The Series A Preferred Stock has no rights of transfer, conversion, dividends, preferences upon liquidation or participation in any distributions to shareholders. |
13. SUBSEQUENT EVENTS
13. SUBSEQUENT EVENTS | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On May 28, 2020, the Company entered into a six-month office lease extension commencing on September 1, 2020. The lease extension is for the office where the Company is currently located in Laguna Hills, California. The term of the new lease expires on February 28, 2021 and requires monthly lease payments of approximately $1,300. From May 1, 2020 through August 11, 2020, the Company sold approximately 687 million shares of common stock using the Second S-3 structured as a Block Trade. The issuance of these shares resulted in gross proceeds to the Company of approximately $5 million. Pursuant to the Aeon Agreement, the Company is required to pay Aeon a fee of approximately $281,000 and provide warrant coverage of 5% of the number of shares of commons stock sold in the Block Trade with a five-year term for approximately 34 million warrant shares. The Company incurred additional fees of approximately $191,000 to an unrelated party. From May 1, 2020 through August 13, 2020, the Company sold 5,339,232 shares of common stock using the Second S-3 “at-the-market” trades. The net proceeds from these sales were $131,547. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | PHARMACYTE BIOTECH, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years Ended April 30, 2020 and 2019 Description Balance at Additions Charged to Deductions Balance at Reserve Deducted in the Balance Sheets from the Allowance for Deferred Tax Assets Year ended April 30, 2020 $ 14,187,771 – 1,341,187 – 15,528,958 Year ended April 30, 2019 $ 13,235,601 – 952,170 – 14,187,771 |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. The Company operates independently and through four wholly owned subsidiaries: (i) Bio Blue Bird; (ii) PharmaCyte Biotech Europe Limited; (iii) PharmaCyte Biotech Australia Pty. Ltd.; and (iv) Viridis Biotech, Inc. and are prepared in accordance with U.S. GAAP and the rules and regulations of the Commission. Intercompany balances and transactions are eliminated. The Company’s 14.5% investment in SG Austria is presented on the cost method of accounting. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates these estimates including those related to fair values of financial instruments, intangible assets, fair value of stock-based awards, income taxes and contingent liabilities, among others. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. |
Intangible Assets | Intangible Assets The Financial Accounting Standards Board ("FASB") standard on goodwill and other intangible assets prescribes a two-step process for impairment testing of goodwill and indefinite-lived intangibles, which is performed annually, as well as when an event triggering impairment may have occurred. The first step tests for impairment, while the second step, if necessary, measures the impairment. The Company has elected to perform its annual analysis at the end of its reporting year. The Company’s intangible assets are licensing agreements related to the Cell-in-a-Box ® These intangible assets have an indefinite life; therefore, they are not amortizable. The Company concluded that there was no impairment of the carrying value of the intangibles for the years ended April 30, 2020 and 2019. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset are less than carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value. No impairment was identified or recorded during the years ended April 30, 2020 and 2019. |
Fair value of Financial Instruments | Fair Value of Financial Instruments For certain of the Company’s non-derivative financial instruments, including cash, accounts payable and accrued expenses, the carrying amount approximates fair value due to the short-term maturities of these instruments. Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Income Taxes | Income Taxes Deferred taxes are calculated using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. A valuation allowance is provided for deferred income tax assets when, in management’s judgment, based upon currently available information and other factors, it is more likely than not that all or a portion of such deferred income tax assets will not be realized. The determination of the need for a valuation allowance is based on an on-going evaluation of current information including, among other things, historical operating results, estimates of future earnings in different taxing jurisdictions and the expected timing of the reversals of temporary differences. The Company believes the determination to record a valuation allowance to reduce a deferred income tax asset is a significant accounting estimate because it is based on, among other things, an estimate of future taxable income in the U.S. and certain other jurisdictions, which is susceptible to change and may or may not occur, and because the impact of adjusting a valuation allowance may be material. In determining when to release the valuation allowance established against the Company’s net deferred income tax assets, the Company considers all available evidence, both positive and negative. Consistent with the Company’s policy, and because of the Company’s history of operating losses, the Company does not currently recognize the benefit of all its deferred tax assets, including tax loss carry forwards, which may be used to offset future taxable income. The Company continually assesses its ability to generate sufficient taxable income during future periods in which deferred tax assets may be realized. When the Company believes it is more likely than not that it will recover its deferred tax assets, the Company will reverse the valuation allowance as an income tax benefit in the statements of operations. The U.S. GAAP method of accounting for uncertain tax positions utilizes a two-step approach to evaluate tax positions. Step one, recognition, requires evaluation of the tax position to determine if based solely on technical merits it is more likely than not to be sustained upon examination. Step two, measurement, is addressed only if a position is more likely than not to be sustained. In step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement with tax authorities. If a position does not meet the more likely than not threshold for recognition in step one, no benefit is recorded until the first subsequent period in which the more likely than not standard is met, the issue is resolved with the taxing authority or the statute of limitations expires. Positions previously recognized are derecognized when the Company subsequently determines the position no longer is more likely than not to be sustained. Evaluation of tax positions, their technical merits and measurements using cumulative probability are highly subjective management estimates. Actual results could differ materially from these estimates. On December 22, 2017, the U.S. enacted the Tax Act which made significant changes to U.S. federal income tax law affecting the Company. Set forth below is a discussion of certain provisions of the Tax Act and the Company's assessment of the impact of such provisions on its financial statements. Effective January 1, 2018, the Company's U.S. income has been taxed at a 21% (subject to IRC Section 15 blended rate provisions) down from the 35 % federal corporate rate. ASC 740-10-25-47 requires the Company to recognize the effect of this rate change on its deferred tax assets and liabilities in the period the tax rate change was enacted. As a result, the Company concluded this caused the Company's net deferred taxes to be remeasured at the new lower tax rate. The Company maintains a full valuation allowance on its U.S. net deferred tax assets. Deferred tax asset remeasurement (tax expense) was offset by a net decrease in valuation allowance, that resulted in no impact on the Company's income tax expense. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the Coronavirus Disease 2019 outbreak. The Company maintains a full valuation allowance on its U.S. net deferred tax assets. Deferred tax asset remeasurement (tax expense) was offset by a net decrease in valuation allowance, that resulted in no impact on the Company's income tax expense. Therefore, the Company does not expect the provisions in the CARES Act will impact the Company’s consolidated financial statements. |
Research and Development | Research and Development R&D expenses consist of costs incurred for direct and overhead-related research expenses and are expensed as incurred. Costs to acquire technologies, including licenses, that are utilized in research and development and that have no alternative future use are expensed when incurred. Technology developed for use in the Company’s product candidates is expensed as incurred until technological feasibility has been established. R&D costs for the years ended April 30, 2020 and 2019 were $301,221 and $460,052, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense for only those awards ultimately expected to vest on a straight-line basis over the requisite service period of the award. The Company estimates the fair value of stock options using a Black-Scholes-Merton valuation model. This model requires the input of highly subjective assumptions, including the option's expected term and stock price volatility. In addition, judgment is also required in estimating the number of stock-based awards that are expected to be forfeited. Forfeitures are estimated based on historical experience at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management's judgment. Thus, if factors change and the Company uses different assumptions, the stock-based compensation expense could be materially different in the future. |
Concentration of Credit Risk | Concentration of Credit Risk The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. The Company maintains most of its cash balance at a financial institution located in California. Accounts at this institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Uninsured balances aggregated approximately $618,000 and $127,000 at April 30, 2020 and 2019, respectively. The Company has not experienced any losses in such accounts. Management believes it is not exposed to any significant credit risk on cash. |
Foreign Currency Translation | Foreign Currency Translation The Company translates the financial statements of its foreign subsidiary from the local (functional) currencies to U.S. dollars in accordance with FASB ASC 830, Foreign Currency Matters |
Going Concern | Going Concern The accompanying Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern; however, the following conditions raise substantial doubt about the Company's ability to do so. As of April 30, 2020, the Company has an accumulated deficit of $103,858,259 and incurred a net loss for year ended April 30, 2020 of $3,826,888. The Company requires substantial additional capital to finance its planned business operations and expects to incur operating losses in future periods due to the expenses related to the Company’s core businesses. The Company has not realized any revenue since it commenced doing business in the biotechnology sector, and there can be no assurance that it will be successful in generating revenues in the future in this sector. The Consolidated Financial Statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Over the past year, funding was provided by investors to maintain and expand the Company. Sales of the Company’s common stock were made under the Second S-3 allowing for offerings of up to $50 million dollars in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act or transactions structured as a public offering of a distinct block or blocks of the shares of the Company’s common stock. Over the past year, the Company continued to acquire funds through the Company’s Second S-3 pursuant to which the placement agent sells shares of common stock “at-the-market” in a program which is structured to provide up to $25 million to the Company less certain commissions pursuant to the Second S-3. From May 1, 2019 through April 30, 2020 the Company raised capital of approximately $2.15 million in Block Trade transactions. Additionally, the Company raised approximately $500,000 through the sale of unregistered shares of its Common Stock in private placement transactions. Subsequent to fiscal year end, the Company raised additional capital in the amount of approximately $4.7 million from Block Trades and “at-the-market” trades. As of the date of this Report, the Company has approximately $4.9 million in its bank account. With the filing of this Report, the S-3 will no longer be available to the Company to use to raise capital. The Company plans to continue to sell unregistered shares to raise capital to fund operations and R&D expenses. Management determined that these plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company believes the cash on hand at April 30, 2020, the potential sales of unregistered shares of its common stock and any public offerings of common stock in which the Company may engage in will provide sufficient capital to meet the Company’s capital requirements and to fund the Company’s operations through August 31, 2021. |
Recent accounting pronouncements | Recent Accounting Pronouncements On May 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” which requires the recognition of right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company elected the available practical expedients on adoption. Adoption of the new standard resulted in an immaterial amount of total lease liabilities and ROU assets of as of May 1, 2019. There were no material impacts on the Company’s consolidated financial statements resulting from the adoption during the year ended April 30, 2020 of: (i) ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting; ASC Topic 326: Codification Improvements to Financial Instruments Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement; Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
3. ACCRUED EXPENSES (Tables)
3. ACCRUED EXPENSES (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses at April 30, 2020 and 2019 are summarized below: 2020 2019 Payroll related costs $ 435,577 $ 358,616 Share issuance compensation – 240,015 Director and Officer insurance financing 113,245 – Other 267,816 22,335 Total $ 816,638 $ 620,966 |
5. COMMON STOCK TRANSACTIONS (T
5. COMMON STOCK TRANSACTIONS (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Schedule of non-vested restricted stock activity | A summary of the Company’s non-vested restricted stock activity and related weighted average grant date fair value information for the last three years ended April 30, 2020 are as follows: Shares Weighted Unvested, at April 30, 2018 5,600,000 $ 0.06 Granted 11,050,000 0.05 Vested (12,050,000 ) 0.06 Forfeited – – Unvested, at April 30, 2019 4,600,000 0.05 Granted 16,300,000 0.05 Vested (16,300,000 ) 0.05 Forfeited – – Unvested, at April 30, 2020 4,600,000 $ 0.06 |
6. STOCK OPTIONS AND WARRANTS (
6. STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Employee stock option activity | A summary of the Company’s stock option activity and related information for the two years ended April 30, 2020 are shown below: Options Weighted Weighted Outstanding, April 30, 2018 95,250,000 $ 0.11 $ 0.11 Issued 12,200,000 0.05 0.05 Forfeited – – – Exercised – – – Outstanding, April 30, 2019 107,450,000 0.11 0.11 Issued 12,200,000 0.04 0.04 Forfeited (52,450,000 ) 0.15 0.14 Exercised – – – Outstanding, April 30, 2020 67,200,000 $ 0.06 $ 0.06 Exercisable, April 30, 2020 61,000,000 $ 0.07 $ – Vested and expected to vest 67,200,000 $ 0.06 $ – |
Unvested employee stock option activity | A summary of the activity for unvested stock options during the years ended April 30, 2020 and 2019 is as follows: Options Weighted Unvested, April 30, 2018 7,200,000 $ – Granted 12,200,000 0.05 Vested (13,200,000 ) – Forfeited – – Unvested, April 30, 2019 6,200,000 – Granted 12,200,000 0.04 Vested (12,200,000 ) – Forfeited – – Unvested, April 30, 2020 6,200,000 $ 0.05 |
Range of outstanding stock options | The following table summarizes ranges of outstanding stock options by exercise price at April 30, 2020: Exercise Price Number of Weighted Weighted Number of Weighted Average $ 0.063 15,600,000 0.40 $ 0.063 15,600,000 $ 0.063 $ 0.104 10,450,000 1.20 $ 0.104 10,450,000 $ 0.104 $ 0.0685 600,000 1.00 $ 0.0685 600,000 $ 0.0685 $ 0.058 2,450,000 1.62 $ 0.058 2,450,000 $ 0.058 $ 0.0734 1,200,000 2.00 $ 0.0734 1,200,000 $ 0.0734 $ 0.0729 1,800,000 2.19 $ 0.0729 1,800,000 $ 0.0729 $ 0.089 1,200,000 2.22 $ 0.089 1,200,000 $ 0.089 $ 0.0553 500,000 1.22 $ 0.0553 500,000 $ 0.0553 $ 0.0558 9,000,000 1.60 $ 0.0558 9,000,000 $ 0.0558 $ 0.0534 1,200,000 3.35 $ 0.0534 1,200,000 $ 0.0534 $ 0.0539 1,000,000 1.50 $ 0.0539 1,000,000 $ 0.0539 $ 0.0683 500,000 1.58 $ 0.0683 500,000 $ 0.0683 $ 0.0649 500,000 1.72 $ 0.0649 500,000 $ 0.0649 $ 0.0495 9,000,000 2.33 $ 0.0495 9,000,000 $ 0.0495 $ 0.0380 1,200,000 4.40 $ 0.0380 1,000,000 $ 0.0380 $ 0.0404 1,000,000 2.00 $ 0.0404 1,000,000 $ 0.0404 $ 0.0370 500,000 2.09 $ 0.0370 500,000 $ 0.0370 $ 0.0340 500,000 2.22 $ 0.0340 500,000 $ 0.0340 $ 0.0408 9,000,000 2.81 $ 0.0408 3,000,000 $ 0.0408 Total 67,200,000 1.61 $ 0.06 61,000,000 $ 0.07 |
Warrant activity | A summary of the Company’s warrant activity and related information for the two years ended April 30, 2020 are shown below: Warrants Weighted Outstanding, April 30, 2018 33,993,104 $ 0.10 Issued 8,084,693 – Expired – – Outstanding, April 30, 2019 42,077,797 0.09 Issued 16,666,666 – Expired (10,854,308 ) – Outstanding, April 30, 2020 47,890,155 – Exercisable, April 30, 2020 47,890,155 $ 0.05 |
Schedule of warrants outstanding and exercisable | The following table summarizes additional information concerning warrants outstanding and exercisable at April 30, 2020: Exercise Prices Number of Weighted Weighted $0.12 17,000,000 0.69 $0.065 769,231 1.64 $0.0575 869,565 1.93 $0.03 2,500,000 2.58 $0.026 1,923,077 3.16 $0.025 2,000,000 2.24 $0.018 1,388,889 3.08 $0.011 2,272,727 3.51 $0.01 5,000,000 4.42 $0.015 833,333 4.98 $0.009 3,333,333 4.17 $0.005 10,000,000 4.67 47,890,155 2.73 $ 0.05 |
Employee Options [Member] | |
Assumptions | The fair value of the Employee Options at the date of grant was estimated using the Black-Scholes-Merton option-pricing model, based on the following weighted average assumptions: Years Ended April 30, 2020 2019 Risk-free interest rate 1.8% 2.0% Expected volatility 91% 97% Expected lives (years) 2.7 2.7 Expected dividend yield 0.00% 0.00% |
Non-Employee Options [Member] | |
Assumptions | The fair value of the Non-Employee Options was estimated using the Black-Scholes-Merton option-pricing model, based on the following weighted average assumptions: Years Ended April 30, 2020 2019 Risk-free interest rate 1.6% 2.5% Expected volatility 90% 98% Expected lives (years) 5.0 5.0 Expected dividend yield 0.00% 0.00% |
9. COMMITMENTS AND CONTINGENC_2
9. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | The following table summarizes the Company’s aggregate future minimum lease payments required under the operating lease as of. Years Ending April 30, Amount 2021 $ 17,196 $ 17,196 |
10. INCOME TAXES (Tables)
10. INCOME TAXES (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets | The components of the Company’s deferred tax assets and liabilities are as follows: April 30, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 12,904,396 11,849,290 Stock compensation 2,494,586 2,233,230 Other 129,976 105,251 Total deferred tax assets 15,528,958 14,187,771 Net deferred tax assets Valuation allowance (15,528,958 ) (14,187,771 ) $ – $ – |
Tax provision schedule | The provision for income taxes differs from the provision computed by applying the Federal statutory rate to net loss before income taxes as follows: Years Ended April 30, 2020 2019 Federal benefit at statutory rate $ (803,646 ) (854,118 ) State income taxes, net of Federal taxes (327,199 ) (274,538 ) Permanent differences 248,908 170,032 Provision related to change in valuation allowance 1,341,187 952,170 Net valuation allowance for state tax deductions (402,882 ) – Other, net (56,368 ) 6,454 $ – $ – |
11. EARNINGS PER SHARE (Tables)
11. EARNINGS PER SHARE (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share calculations | The table below sets forth the basic loss per share calculations: Years Ended April 30, 2020 2019 Net loss $ (3,826,888 ) $ (4,067,228 ) Basic weighted average number of shares outstanding 1,355,717,271 1,100,104,338 Diluted weighted average number of shares outstanding 1,355,717,271 1,100,104,338 Basic and diluted loss per share $ (0.00 ) $ (0.00 ) |
Schedule of potentially dilutive securities | The table below sets forth these potentially dilutive securities: Years Ended April 30, 2020 2019 Excluded options 67,200,000 107,450,000 Excluded warrants 47,890,155 42,077,797 Total excluded options and warrants 115,090,155 149,527,797 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of valuation and qualifying accounts | Description Balance at Additions Charged to Deductions Balance at Reserve Deducted in the Balance Sheets from the Allowance for Deferred Tax Assets Year ended April 30, 2020 $ 14,187,771 – 1,341,187 – 15,528,958 Year ended April 30, 2019 $ 13,235,601 – 952,170 – 14,187,771 |
2. SIGNIFICANT ACCOUNTING POLIC
2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Aug. 10, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Aug. 14, 2020 | Apr. 30, 2018 | |
Intangible assets | $ 3,549,427 | $ 3,549,427 | |||
Impairment of intangible assets | 0 | 0 | |||
Research and development costs | 301,221 | 460,052 | |||
Uninsured cash balances | 618,000 | 127,000 | |||
Accumulated deficit | (103,858,259) | (100,031,371) | |||
Net loss | (3,826,888) | (4,067,228) | |||
Cash in bank | 894,861 | $ 515,253 | $ 1,059,798 | ||
Subsequent Event [Member] | |||||
Cash in bank | $ 4,900,000 | ||||
Block Trade [Member] | |||||
Proceeds from the sale of equity | 2,150,000 | ||||
Private Placement [Member] | |||||
Proceeds from the sale of equity | 500,000 | ||||
Block Trade [Member] | Subsequent Event [Member] | |||||
Proceeds from the sale of equity | $ 4,700,000 | ||||
Cell-in-a-Box [Member] | |||||
Intangible assets | 1,549,427 | ||||
Diabetes License [Member] | |||||
Intangible assets | $ 2,000,000 | ||||
SG Austria [Member] | |||||
Percentage investment in SG Austria | 14.50% |
3. ACCRUED EXPENSES (Details)
3. ACCRUED EXPENSES (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Payables and Accruals [Abstract] | ||
Payroll related costs | $ 435,577 | $ 358,616 |
Share issuance compensation | 0 | 240,015 |
Director and Officer insurance financing | 113,245 | 0 |
Other | 267,816 | 22,335 |
Total | $ 816,638 | $ 620,966 |
3. ACCRUED EXPENSES (Details Na
3. ACCRUED EXPENSES (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Director and Officer insurance financing | $ 113,245 | $ 0 |
Director and Officer Insurance | ||
Director and Officer insurance financing | $ 113,245 | |
Policy period | March 8, 2020 through March 8, 2021 | |
Financed interest rate | 4.25% | |
Payment period | 8 monthly payments | |
Payment amount | $ 12,806 |
4. SMALL BUSINESS ADMINISTRAT_2
4. SMALL BUSINESS ADMINISTRATION - PAYCHECK PROTECTION PROGRAM (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Debt Disclosure [Abstract] | ||
Proceeds from loans | $ 75,200 | $ 0 |
Notes payable maturity date | Apr. 15, 2022 | |
Current portion of PPP loan | $ 28,918 | 0 |
Long term portion of PPP loan | $ 46,282 | $ 0 |
Payment frequency | monthly | |
Payment amount | $ 4,229 | |
Payment start date | Oct. 15, 2020 |
5. COMMON STOCK TRANSACTIONS (D
5. COMMON STOCK TRANSACTIONS (Details - Nonvested Option activity) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Options Outstanding | ||
Beginning balance | 4,600,000 | 5,600,000 |
Granted | 16,300,000 | 11,050,000 |
Vested | (16,300,000) | (12,050,000) |
Forfeited | 0 | |
Ending balance | 4,600,000 | 4,600,000 |
Weighted Average Grant Date Fair Value | ||
Beginning balance | $ 0.05 | $ 0.06 |
Granted | 0.05 | 0.05 |
Vested | 0.05 | 0.06 |
Forfeited | ||
Ending balance | $ 0.06 | $ 0.05 |
5. COMMON STOCK TRANSACTIONS _2
5. COMMON STOCK TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Shelf Offering [Member] | |||
Stock issued new, shares | 333,300,000 | 161,700,000 | |
Proceeds from sale of equity | $ 2,100,000 | $ 2,300,000 | |
Common Stock [Member] | Director Letter Agreement [Member] | Four Nonemployee Members [Member] | |||
Stock issued for compensation, shares | 2,000,000 | ||
Stock based compensation expense | $ 19,212 | 101,288 | |
Unvested shares | 0 | ||
Common Stock [Member] | Director Letter Agreement [Member] | Four Nonemployee Member [Member] | |||
Stock issued for compensation, shares | 2,000,000 | ||
Stock based compensation expense | $ 65,339 | ||
Unvested shares | 0 | ||
Common Stock [Member] | Consulting Agreements [Member] | Three Consultants [Member] | |||
Stock issued for compensation, shares | 4,200,000 | ||
Stock based compensation expense | $ 0 | $ 73,800 | |
Unvested shares | 0 | 0 | |
Common Stock [Member] | Consulting Agreements [Member] | Five Consultants [Member] | |||
Stock issued for compensation, shares | 3,200,000 | ||
Stock based compensation expense | $ 108,575 | $ 17,350 | |
Unvested shares | 200,000 | ||
Common Stock [Member] | 2018 Compensation Agreement [Member] | Officers [Member] | |||
Stock issued for compensation, shares | 6,600,000 | ||
Stock based compensation expense | $ 0 | $ 245,520 | |
Unvested shares | 0 | 0 | |
Common Stock [Member] | 2019 Compensation Agreement [Member] | Officers [Member] | |||
Stock issued for compensation, shares | 6,600,000 | ||
Stock based compensation expense | $ 278,891 | $ 47,809 | |
Unvested shares | 0 | 4,400,000 | |
Common Stock [Member] | 2019 Compensation Agreement [Member] | Four Consultants [Member] | |||
Stock issued for compensation, shares | 4,450,000 | ||
Stock based compensation expense | $ 24,726 | $ 230,829 | |
Unvested shares | 0 | 408,333 | |
Common Stock [Member] | Medical And Scientific Advisory Board [Member] | A Consultant [Member] | |||
Stock issued for compensation, shares | 2,500,000 | ||
Stock based compensation expense | $ 22,584 | $ 107,749 | |
Unvested shares | 0 | ||
Common Stock [Member] | 2020 Compensation Agreement [Member] | Officers [Member] | |||
Stock issued for compensation, shares | 6,600,000 | ||
Stock based compensation expense | $ 89,759 | ||
Unvested shares | 4,400,000 | ||
Common Stock [Member] | Four Directors [Member] | Director Letter Agreement [Member] | |||
Stock issued for compensation, shares | 1,750,000 | ||
Stock based compensation expense | $ 0 | $ 24,165 | |
Restricted Stock [Member] | Stock Subscription Agreements [Member] | |||
Stock issued new, shares | 103,000,000 | ||
Proceeds from sale of equity | $ 515,000 |
6. STOCK OPTIONS AND WARRANTS_2
6. STOCK OPTIONS AND WARRANTS (Details - Option Assumptions) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Employee Options [Member] | ||
Risk-free interest rate | 1.80% | 2.00% |
Expected volatility | 91.00% | 97.00% |
Expected lives (years) | 2 years 8 months 12 days | 2 years 8 months 12 days |
Expected dividend yield | 0.00% | 0.00% |
Non-Employee Options [Member] | ||
Risk-free interest rate | 1.60% | 2.50% |
Expected volatility | 90.00% | 98.00% |
Expected lives (years) | 5 years | 5 years |
Expected dividend yield | 0.00% | 0.00% |
6. STOCK OPTIONS AND WARRANTS_3
6. STOCK OPTIONS AND WARRANTS (Details - Option activity) - Options [Member] - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Options Outstanding | ||
Beginning balance | 107,450,000 | 95,250,000 |
Issued/Granted | 12,200,000 | 12,200,000 |
Forfeited | (52,450,000) | 0 |
Exercised | 0 | 0 |
Ending balance | 67,200,000 | 107,450,000 |
Exercisable | 61,000,000 | |
Vested and expected to vest | 67,200,000 | |
Weighted Average Exercise Price | ||
Beginning balance | $ 0.11 | $ 0.11 |
Issued | 0.04 | 0.05 |
Forfeited | 0.15 | |
Exercised | ||
Ending balance | 0.06 | 0.11 |
Exercisable | 0.07 | |
Vested and expected to vest | 0.06 | |
Beginning balance | 0.11 | 0.11 |
Issued | 0.04 | 0.05 |
Forfeited | 0.14 | |
Ending balance | $ 0.06 | $ 0.11 |
6. STOCK OPTIONS AND WARRANTS_4
6. STOCK OPTIONS AND WARRANTS (Details - Unvested Option activity) - Unvested Stock Options [Member] - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Options Outstanding | ||
Beginning balance | 6,200,000 | 7,200,000 |
Granted | 12,200,000 | 12,200,000 |
Vested | (12,200,000) | (13,200,000) |
Forfeited | 0 | 0 |
Ending balance | 6,200,000 | 6,200,000 |
Beginning balance | ||
Granted | 0.04 | 0.05 |
Vested | ||
Forfeited | ||
Ending balance | $ 0.05 |
6. STOCK OPTIONS AND WARRANTS_5
6. STOCK OPTIONS AND WARRANTS (Details - Options by exercise price) - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Options [Member] | |||
Number of Options | 67,200,000 | 107,450,000 | 95,250,000 |
Weighted Average Remaining Contractual LIfe (years) | 1 year 7 months 10 days | ||
Weighted Average Exercisable Price | $ 0.06 | $ 0.11 | $ 0.11 |
Numer of Options Exercisable | 61,000,000 | ||
$0.063 [Member] | |||
Number of Options | 15,600,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 4 months 24 days | ||
Weighted Average Exercisable Price | $ 0.063 | ||
Numer of Options Exercisable | 15,600,000 | ||
$0.104 [Member] | |||
Number of Options | 10,450,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 2 months 12 days | ||
Weighted Average Exercisable Price | $ 0.104 | ||
Numer of Options Exercisable | 10,450,000 | ||
$0.0685 [Member] | |||
Number of Options | 600,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year | ||
Weighted Average Exercisable Price | $ 0.0685 | ||
Numer of Options Exercisable | 600,000 | ||
$0.058 [Member] | |||
Number of Options | 2,450,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 7 months 13 days | ||
Weighted Average Exercisable Price | $ 0.058 | ||
Numer of Options Exercisable | 2,450,000 | ||
$0.0734 [Member] | |||
Number of Options | 1,200,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years | ||
Weighted Average Exercisable Price | $ 0.0734 | ||
Numer of Options Exercisable | 1,200,000 | ||
$0.0729 [Member] | |||
Number of Options | 1,800,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 2 months 8 days | ||
Weighted Average Exercisable Price | $ 0.0729 | ||
Numer of Options Exercisable | 1,800,000 | ||
$0.089 [Member] | |||
Number of Options | 1,200,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 2 months 19 days | ||
Weighted Average Exercisable Price | $ 0.089 | ||
Numer of Options Exercisable | 1,200,000 | ||
$0.0553 [Member] | |||
Number of Options | 500,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 2 months 19 days | ||
Weighted Average Exercisable Price | $ 0.0553 | ||
Numer of Options Exercisable | 500,000 | ||
$0.0558 [Member] | |||
Number of Options | 9,000,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 7 months 6 days | ||
Weighted Average Exercisable Price | $ 0.0558 | ||
Numer of Options Exercisable | 9,000,000 | ||
$0.0534 [Member] | |||
Number of Options | 1,200,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 3 years 4 months 6 days | ||
Weighted Average Exercisable Price | $ 0.0534 | ||
Numer of Options Exercisable | 1,200,000 | ||
$0.0539 [Member] | |||
Number of Options | 1,000,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 6 months | ||
Weighted Average Exercisable Price | $ 0.0539 | ||
Numer of Options Exercisable | 1,000,000 | ||
$0.0683 [Member] | |||
Number of Options | 500,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 6 months 29 days | ||
Weighted Average Exercisable Price | $ 0.0683 | ||
Numer of Options Exercisable | 500,000 | ||
$0.0649 [Member] | |||
Number of Options | 500,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 1 year 8 months 19 days | ||
Weighted Average Exercisable Price | $ 0.0649 | ||
Numer of Options Exercisable | 500,000 | ||
$0.0495 [Member] | |||
Number of Options | 9,000,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 3 months 29 days | ||
Weighted Average Exercisable Price | $ 0.0495 | ||
Numer of Options Exercisable | 9,000,000 | ||
$0.038 [Member] | |||
Number of Options | 1,200,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 4 years 4 months 24 days | ||
Weighted Average Exercisable Price | $ 0.038 | ||
Numer of Options Exercisable | 1,000,000 | ||
$0.0404 [Member] | |||
Number of Options | 1,000,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years | ||
Weighted Average Exercisable Price | $ 0.0404 | ||
Numer of Options Exercisable | 1,000,000 | ||
$0.037 [Member] | |||
Number of Options | 500,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 1 month 2 days | ||
Weighted Average Exercisable Price | $ 0.037 | ||
Numer of Options Exercisable | 500,000 | ||
$0.034 [Member] | |||
Number of Options | 500,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 2 months 19 days | ||
Weighted Average Exercisable Price | $ 0.034 | ||
Numer of Options Exercisable | 500,000 | ||
$0.0408 [Member] | |||
Number of Options | 9,000,000 | ||
Weighted Average Remaining Contractual LIfe (years) | 2 years 9 months 22 days | ||
Weighted Average Exercisable Price | $ 0.0408 | ||
Numer of Options Exercisable | 3,000,000 |
6. STOCK OPTIONS AND WARRANTS_6
6. STOCK OPTIONS AND WARRANTS (Details - Warrant activity) - Warrants [Member] - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Warrants outstanding, beginning balance | 42,077,797 | 33,993,104 |
Warrants issued | 16,666,666 | 8,084,693 |
Warrants expired | (10,854,308) | 0 |
Warrants outstanding, ending balance | 47,890,155 | 42,077,797 |
Warrants exercisable | 47,890,155 | |
Weighted average exercise price warrants outstanding, beginning balance | $ 0.09 | $ 0.1 |
Weighted average exercise price warrants issued | ||
Weighted average exercise price warrants Expired | ||
Weighted average exercise price warrants outstanding, ending balance | $ 0.09 | |
Weighted average exercise price warrants exercisable | $ 0.05 |
6. STOCK OPTIONS AND WARRANTS_7
6. STOCK OPTIONS AND WARRANTS (Details - Warrants by exercise price) | 12 Months Ended |
Apr. 30, 2020$ / sharesshares | |
Warrants [Member] | |
Number of Warrants exercisable | 47,890,155 |
Weighted average remaining contractual term | 2 years 8 months 23 days |
Weighted average exercise price exercisable | $ / shares | $ 0.05 |
$0.12 [Member] | |
Number of Warrants exercisable | 17,000,000 |
Weighted average remaining contractual term | 8 months 9 days |
$0.11 [Member] | |
Number of Warrants exercisable | 769,231 |
Weighted average remaining contractual term | 1 year 7 months 21 days |
$0.065 [Member] | |
Number of Warrants exercisable | 869,565 |
Weighted average remaining contractual term | 1 year 11 months 4 days |
$0.0575 [Member] | |
Number of Warrants exercisable | 2,500,000 |
Weighted average remaining contractual term | 2 years 6 months 29 days |
$0.03 [Member] | |
Number of Warrants exercisable | 1,923,077 |
Weighted average remaining contractual term | 3 years 1 month 27 days |
$0.026 [Member] | |
Number of Warrants exercisable | 2,000,000 |
Weighted average remaining contractual term | 2 years 2 months 27 days |
$0.025 [Member] | |
Number of Warrants exercisable | 1,388,889 |
Weighted average remaining contractual term | 3 years 29 days |
$0.018 [Member] | |
Number of Warrants exercisable | 2,272,727 |
Weighted average remaining contractual term | 3 years 6 months 3 days |
$0.011 [Member] | |
Number of Warrants exercisable | 5,000,000 |
Weighted average remaining contractual term | 4 years 5 months 1 day |
$0.01 [Member] | |
Number of Warrants exercisable | 833,333 |
Weighted average remaining contractual term | 4 years 11 months 23 days |
$0.009 [Member] | |
Number of Warrants exercisable | 3,333,333 |
Weighted average remaining contractual term | 4 years 2 months 1 day |
$0.005 [Member] | |
Number of Warrants exercisable | 10,000,000 |
Weighted average remaining contractual term | 4 years 8 months 2 days |
6. STOCK OPTIONS AND WARRANTS_8
6. STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 10 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Jun. 13, 2019 | May 30, 2018 | Jun. 15, 2019 | Jun. 28, 2018 | Aug. 07, 2019 | Nov. 01, 2018 | Feb. 24, 2020 | Apr. 07, 2020 | Mar. 31, 2020 | Mar. 24, 2020 | Mar. 26, 2019 | Apr. 30, 2020 | Apr. 21, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Stock based compensation - options | $ 379,375 | $ 412,349 | |||||||||||||
Stock price per share | $ 0.0245 | ||||||||||||||
Options [Member] | |||||||||||||||
Options outstanding | 67,200,000 | 107,450,000 | 95,250,000 | ||||||||||||
Options granted in period | 12,200,000 | 12,200,000 | |||||||||||||
Aggregate intrinsic value | $ 0 | ||||||||||||||
Options [Member] | Employees [Member] | |||||||||||||||
Options granted in period | 11,000,000 | 11,000,000 | |||||||||||||
Stock based compensation - options | $ 338,050 | $ 320,178 | |||||||||||||
Unrecognized compensation expense | $ 141,642 | ||||||||||||||
Options [Member] | Non-Employees [Member] | |||||||||||||||
Options granted in period | 1,200,000 | 1,200,000 | |||||||||||||
Stock based compensation - options | $ 41,326 | $ 92,171 | |||||||||||||
Unrecognized compensation expense weighted-average period | 8 months | ||||||||||||||
Warrants [Member] | Aeon [Member] | |||||||||||||||
Warrants issued | 1,338,889 | 1,388,889 | 1,944,444 | 1,923,077 | 3,000,000 | 2,272,727 | 1,000,000 | 2,500,000 | 1,000,000 | 3,500,000 | 1,250,000 | 833,333 | |||
Aggregate fair value of warrants issued | $ 9,000 | $ 19,000 | $ 12,000 | $ 38,000 | $ 10,000 | $ 19,000 | $ 3,000 | $ 17,000 | $ 3,000 | $ 12,000 | $ 9,000 | $ 9,000 | |||
Warrants [Member] | Aeon 1 [Member] | |||||||||||||||
Warrants issued | 1,000,000 | 1,250,000 | |||||||||||||
Aggregate fair value of warrants issued | $ 3,000 | $ 9,000 |
8. RELATED PARTY TRANSACTIONS (
8. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
SG Austria [Member] | ||
Equity interest owned | 14.50% | |
SG Austria [Member] | ||
Purchases from related parties | $ 153,000 | $ 168,000 |
Vin-de-Bona [Member] | ||
Consulting fees | 24,000 | $ 18,000 |
Share base compensation expense | $ 10,000 | |
Vin-de-Bona [Member] | Dr. Salmons [Member] | ||
Stock issued for services, shares | 250,000 |
9. COMMITMENTS AND CONTINGENC_3
9. COMMITMENTS AND CONTINGENCIES (Details) | Apr. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum operating lease expense 2021 | $ 17,196 |
Minimum operating lease expense | $ 17,196 |
9. COMMITMENTS AND CONTINGENC_4
9. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent and lease expense | $ 30,964 | $ 34,153 |
10. INCOME TAXES (Details - Def
10. INCOME TAXES (Details - Deferred tax assets) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 12,904,396 | $ 11,849,290 | |
Stock compensation | 2,494,586 | 2,233,230 | |
Other | 129,976 | 105,251 | |
Total deferred tax assets | 15,528,958 | 14,187,771 | |
Valuation allowance | (15,528,958) | (14,187,771) | $ (13,235,601) |
Net deferred tax assets | $ 0 | $ 0 |
10. INCOME TAXES (Details - Inc
10. INCOME TAXES (Details - Income tax provision) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal benefit at statutory rate | $ (803,646) | $ (854,118) |
State income taxes, net of Federal taxes | (327,199) | (274,538) |
Permanent differences | 248,908 | 170,032 |
Provision related to change in valuation allowance | 1,341,187 | 952,170 |
Net valuation allowance for state tax deductions | (402,882) | 0 |
Other, net | (56,368) | 6,454 |
Provision for income taxes | $ 0 | $ 0 |
10. INCOME TAXES (Details Narra
10. INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss carryfrowrd | $ 44,863,000 | |
State net operating loss carryforwards | $ 41,203,000 | |
Operating loss carryforward expiration date | Dec. 31, 2038 | |
Increase in valuation allowance | $ 1,341,187 | $ 952,170 |
11. EARNINGS PER SHARE (Details
11. EARNINGS PER SHARE (Details - per share calculation) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (3,826,888) | $ (4,067,228) |
Basic weighted average number of shares outstanding | 1,355,717,271 | 1,100,104,338 |
Diluted weighted average number of shares outstanding | 1,355,717,271 | 1,100,104,338 |
Basic and diluted loss per share | $ 0 | $ 0 |
11. EARNINGS PER SHARE (Detai_2
11. EARNINGS PER SHARE (Details - diluted shares) - shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Antidilutive shares | 115,090,155 | 149,527,797 |
Options [Member] | ||
Antidilutive shares | 67,200,000 | 107,450,000 |
Warrants [Member] | ||
Antidilutive shares | 47,890,155 | 42,077,797 |
SCHEDULE II - VALUATION AND Q_3
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | ||
Deferred tax assets, beginning balance | $ 14,187,771 | $ 13,235,601 |
Additions charged to costs and expenses | 0 | 0 |
Charged to other accounts | 1,341,187 | 952,170 |
Deductions | 0 | 0 |
Deferred tax assets, ending balance | $ 15,528,958 | $ 14,187,771 |