Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2019 | Mar. 12, 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2019 | |
Trading Symbol | cpah | |
Entity Registrant Name | COUNTERPATH CORP | |
Entity Central Index Key | 0001236997 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,949,504 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Current assets: | ||
Cash | $ 1,744,859 | $ 2,348,883 |
Accounts receivable (net of allowance for doubtful accounts of $1,124,161 (2018 - $322,638)) | 2,230,742 | 3,509,010 |
Deferred sales commission costs - current | 110,561 | 0 |
Derivative assets | 12,007 | |
Prepaid expenses and other current assets | 271,687 | 191,245 |
Total current assets | 4,369,856 | 6,049,138 |
Deposits | 96,701 | 98,633 |
Deferred sales commission costs - non-current | 61,812 | |
Equipment | 80,644 | 121,819 |
Goodwill | 6,690,043 | 6,843,575 |
Intangibles and other assets | 225,656 | 221,062 |
Total Assets | 11,524,712 | 13,334,227 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 2,411,854 | 2,437,733 |
Derivative liability | 18,052 | |
Unearned revenue | 2,680,073 | 2,565,876 |
Customer deposits | 3,137 | 2,200 |
Accrued warranty | 49,305 | 63,130 |
Total current liabilities | 5,162,421 | 5,068,939 |
Deferred lease inducements | 6,596 | 14,339 |
Loan payable | 2,000,000 | |
Unrecognized tax liability | 9,763 | 9,763 |
Total liabilities | 7,178,780 | 5,093,041 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value Authorized: 100,000,000 Issued and outstanding: January 31, 2019 - nil; April 30, 2018 - nil | ||
Common stock, $0.001 par value - Authorized: 100,000,000 Issued: January 31, 2019 - 5,946,832; April 30, 2018 - 5,930,468 | 5,947 | 5,931 |
Additional paid-in capital | 75,591,318 | 75,170,181 |
Accumulated deficit | (67,701,736) | (63,701,685) |
Accumulated other comprehensive loss - currency translation adjustment | (3,549,597) | (3,233,241) |
Total stockholders' equity | 4,345,932 | 8,241,186 |
Liabilities and Stockholders' Equity | $ 11,524,712 | $ 13,334,227 |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Allowance for Doubtful Accounts Receivable, Current | $ 1,124,161 | $ 322,638 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | ||
Preferred Stock, Shares Outstanding | ||
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 5,946,832 | 5,930,468 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue | ||||
Software | $ 1,119,311 | $ 1,791,165 | $ 3,398,729 | $ 5,306,925 |
Subscription, support and maintenance | 1,367,387 | 1,120,690 | 3,938,247 | 3,069,371 |
Professional services and other | 101,060 | 172,048 | 579,873 | 1,230,978 |
Total revenue | 2,587,758 | 3,083,903 | 7,916,849 | 9,607,274 |
Operating expenses: | ||||
Cost of sales (includes depreciation of $528 (2018 - $4,753)) | 563,236 | 362,057 | 1,782,603 | 1,131,122 |
Sales and marketing | 983,290 | 996,470 | 2,945,939 | 3,031,981 |
Research and development | 1,369,196 | 1,361,219 | 4,163,889 | 4,052,129 |
General and administrative | 699,428 | 800,049 | 3,241,167 | 2,407,234 |
Total operating expenses | 3,615,150 | 3,519,795 | 12,133,598 | 10,622,466 |
Loss from operations | (1,027,392) | (435,892) | (4,216,749) | (1,015,192) |
Interest and other income (expense), net: | ||||
Interest and other income | 2,145 | 2,145 | ||
Interest expense | (22,122) | (123) | (26,788) | (338) |
Foreign exchange gain (loss) | (16,266) | (342,328) | 108,205 | (756,512) |
Change in fair value of derivative instruments | 4,255 | (897) | ||
Total interest and other income (expense), net | (31,988) | (342,451) | 82,665 | (756,850) |
Net loss for the period | $ (1,059,380) | $ (778,343) | $ (4,134,084) | $ (1,772,042) |
Net loss per share | ||||
Basic and diluted (in dollars per share) | $ (0.18) | $ (0.14) | $ (0.70) | $ (0.33) |
Weighted average common shares outstanding: | ||||
Basic and diluted (in shares) | 5,945,181 | 5,539,352 | 5,939,803 | 5,354,690 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Depreciation | $ 528 | $ 4,753 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Net loss for the period | $ (1,059,380) | $ (778,343) | $ (4,134,084) | $ (1,772,042) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (1,096) | 633,751 | (316,356) | 1,404,362 |
Comprehensive loss | $ (1,060,476) | $ (144,592) | $ (4,450,440) | $ (367,680) |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss for the period | $ (4,134,084) | $ (1,772,042) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 817,331 | 197,870 |
Deferred lease inducements | (7,421) | (7,626) |
Depreciation and amortization | 73,323 | 85,153 |
Unrealized foreign exchange (gain) loss | (172,503) | 707,942 |
Stock-based compensation | 404,414 | 494,883 |
Issuance of common stock for services | 11,105 | |
Change in fair value of derivative instruments | 6,045 | |
Changes in assets and liabilities: | ||
Accounts payable and accrued liabilities | (3,901) | 166,680 |
Accounts receivable | 460,929 | (1,997,358) |
Deferred sales commission costs | (38,340) | |
Accrued warranty | (13,825) | 10,965 |
Customer deposits | 937 | (5,730) |
Prepaid expenses and other current assets | (81,217) | (46,973) |
Unearned revenue | 114,197 | 286,724 |
Net cash used in operating activities | (2,574,115) | (1,868,407) |
Cash flows from investing activities: | ||
Purchases of equipment | (29,147) | (73,415) |
Purchases of intangibles | (9,395) | (13,864) |
Net cash used in investing activities | (38,542) | (87,279) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 16,739 | 2,895,655 |
Repurchases of common stock | (32,059) | |
Proceeds received from loan payable | 2,000,000 | |
Net cash provided by financing activities | 2,016,739 | 2,863,596 |
Foreign exchange effect on cash | (8,106) | 69,489 |
Decrease in cash | (604,024) | 977,399 |
Cash, beginning of the period | 2,348,883 | 2,071,019 |
Cash, end of the period | 1,744,859 | 3,048,418 |
Cash paid for: | ||
Interest | 26,740 | 341 |
Taxes | $ 0 | $ 0 |
INTERIM CONSOLIDATED STATEMENT
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Common Shares [Member] | Treasury Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Apr. 30, 2017 | $ 5,005 | $ (60) | $ 71,680,575 | $ (60,481,015) | $ (4,025,196) | $ 7,179,309 |
Beginning Balance (Shares) at Apr. 30, 2017 | 5,005,245 | (59,900) | ||||
Private placement, net of share issuance costs | $ 967 | 2,831,479 | 2,832,446 | |||
Private placement, net of share issuance costs (Shares) | 966,740 | |||||
Issuance of common stock for services | $ 14 | 33,303 | 33,317 | |||
Issuance of common stock for services (in shares) | 14,000 | |||||
Share repurchase plan | $ (14) | (33,807) | (33,821) | |||
Share repurchase plan (Shares) | (13,600) | |||||
Cancellation of shares | $ (74) | $ 74 | 1,762 | 1,762 | ||
Cancellation of shares (Shares) | (73,500) | 73,500 | ||||
Stock-based compensation | 494,883 | 494,883 | ||||
Employee share purchase program | $ 22 | 61,970 | 61,992 | |||
Employee share purchase program (Shares) | 22,226 | |||||
Exercise of stock options | $ 1 | 1,217 | 1,218 | |||
Exercise of stock options (Shares) | 495 | |||||
Net loss for the period | (1,772,042) | (1,772,042) | ||||
Foreign currency translation adjustment | 1,404,362 | 1,404,362 | ||||
Ending Balance at Jan. 31, 2018 | $ 5,935 | 75,071,382 | (62,253,057) | (2,620,834) | 10,203,426 | |
Ending Balance (Shares) at Jan. 31, 2018 | 5,935,206 | |||||
Adoption of ASC 606 | 134,033 | 134,033 | ||||
Beginning Balance, Adjusted Balance | $ 5,931 | 75,170,181 | (63,567,652) | (3,233,241) | 8,375,219 | |
Beginning Balance at Apr. 30, 2018 | $ 5,931 | 75,170,181 | (63,701,685) | (3,233,241) | 8,241,186 | |
Beginning Balance (Shares) at Apr. 30, 2018 | 5,930,468 | |||||
Stock-based compensation | 404,414 | 404,414 | ||||
Employee share purchase program | $ 9 | 19,109 | 19,118 | |||
Employee share purchase program (Shares) | 9,406 | |||||
Exercise of stock options | $ 7 | (2,386) | $ (2,379) | |||
Exercise of stock options (Shares) | 6,958 | 35,500 | ||||
Net loss for the period | (4,134,084) | $ (4,134,084) | ||||
Foreign currency translation adjustment | (316,356) | (316,356) | ||||
Ending Balance at Jan. 31, 2019 | $ 5,947 | $ 75,591,318 | $ (67,701,736) | $ (3,549,597) | $ 4,345,932 | |
Ending Balance (Shares) at Jan. 31, 2019 | 5,946,832 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Jan. 31, 2019 | |
Nature of Operations [Text Block] | Note 1 Nature of Operations CounterPath Corporation (the “Company”) was incorporated in the State of Nevada on April 18, 2003. The Company focuses on the design, development, marketing and sales of software applications and related services, such as pre and post sales technical support and customization services, that enable enterprises and telecommunication service providers to deliver Unified Communications (“UC”) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol, or IP, based networks. The Company’s products are sold either directly or through channel partners, to small, medium and large businesses (“enterprises”) and telecom service providers, in North America, and in Europe, Middle East, Africa (collectively “EMEA”), Asia Pacific and Latin America. |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Jan. 31, 2019 | |
Basis of Presentation and Principles of Consolidation [Text Block] | Note 2 Basis of Presentation and Principles of Consolidation The accompanying interim consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise disclosed. These interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CounterPath Technologies Inc., a company existing under the laws of the province of British Columbia, Canada, BridgePort Networks, Inc. (“BridgePort”), a company incorporated under the laws of the state of Delaware and CounterPath LLC, a company formed on August 27, 2018, under the laws of the state of Delaware. The results of NewHeights Software Corporation (“NewHeights”), which subsequently was amalgamated with another subsidiary to become CounterPath Technologies Inc., are included from August 2, 2007, the date of acquisition. The results of FirstHand Technologies Inc. (“FirstHand”), which subsequently was amalgamated with CounterPath Technologies Inc., and BridgePort are included from February 1, 2008, the date of acquisition. All inter-company transactions and balances have been eliminated. These interim consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. Going Concern The Company has experienced recurring losses and has an accumulated deficit of $67,701,736 as of January 31, 2019, as a result of flat to declining revenues resulting from a number of factors including its buildout of a cloud based subscription platform concurrent with the change of its licensing model to subscription based licensing and has not reached profitable operations which raises substantial doubt about its ability to continue operating as a going concern within one year of the date of issuance of the financial statements. To alleviate this situation, the Company has plans in place to improve its financial position and liquidity, while executing on its growth strategy, by managing and or reducing costs that are not expected to have an adverse impact on the ability to generate cash flows, as the transition to its software as a service platform and subscription licensing continues. The Company has historically been able to manage liquidity requirements through cost management and cost reduction measures, supplemented with raising additional financing. On October 10, 2018, the Company entered into a loan agreement for an aggregate principal amount of up to $3,000,000. See Note 7 – Loan Payable Interim Reporting The information presented in the accompanying interim consolidated financial statements is without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America. Except where noted, these interim financial statements follow the same accounting policies and methods of their application as the Company’s April 30, 2018 annual audited consolidated financial statements. All adjustments are of a normal recurring nature. It is suggested that these interim financial statements be read in conjunction with the Company’s April 30, 2018 annual audited consolidated financial statements. Operating results for the three and nine months ended January 31, 2019 are not necessarily indicative of the results that can be expected for the year ending April 30, 2019. Reclassification Certain prior period balances have been reclassified to conform to the current period presentation in the Company’s consolidated interim financial statements and the accompanying notes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2019 | |
Summary of Significant Accounting Policies [Text Block] | Note 3 Summary of Significant Accounting Policies The significant accounting policies used in preparation of these interim consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018 filed with the Securities Exchange Commission on July 25, 2018, and there have been no changes to the Company's significant accounting policies during the three and nine months ended January 31, 2019, except for the revenue recognition policy, described in Note 4 – Revenue Recognition under ASC 606 Revenue from Contracts with Customers: Topic 606 Other Assets and Deferred Costs - Contracts with Customers Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by federal deposit insurance; however, the Company believes that its credit risk on cash balances is immaterial. The Company is also subject to concentrations of credit risk in its accounts receivable. The Company monitors and actively manages its receivables, and from time to time will insure certain receivables with higher credit risk and may require collateral or other securities to support its accounts receivable. Revenue from significant customers for the three and nine months ended January 31, 2019 and 2018 is summarized below: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Customer A –% 17% –% 6% The table below presents significant customers who accounted for greater than 10% of total accounts receivable as of January 31, 2019 and April 30, 2018: January 31, April 30, 2019 2018 Customer A –% 18% Customer B –% 13% Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are presented net of an allowance for doubtful accounts. January 31, April 30, 2019 2018 Balance of allowance for doubtful accounts, beginning of period $ 322,638 $ 80,232 Bad debt provision 801,523 578,024 Write-off of receivables – (335,618 ) Balance of allowance for doubtful accounts, end of period $ 1,124,161 $ 322,638 The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. Derivative Instruments The Company accounts for derivative instruments, consisting of foreign currency forward contracts, pursuant to the provisions of ASC 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires the Company to measure derivative instruments at fair value and record them in the balance sheet as either an asset or liability and expands financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, results of operations and cash flows. The Company does not use derivative instruments for trading purposes. ASC 815 also requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The Company also routinely enters into foreign currency forward contracts, not designated as hedging instruments, to protect the Company from fluctuations in exchange rates. Gains or losses arising out of marked to market fair value valuation of non-designated forward contracts are recognized in net income. The Company records foreign currency option and forward contracts on its Consolidated Balance Sheets as derivative assets or liabilities depending on whether the fair value of such contracts is a net asset or net liability, respectively. See Note 5 - Derivative Instruments Recently Adopted Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, Revenue From Contracts With Customers Note 4 – Revenue Recognition Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This amendment is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment, which amends the guidance to eliminate Step 2 from the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Measurement of Credit Losses on Financial Instruments which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for a company’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected will a valuation provision. The amendments will be effective for fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on our consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases |
Revenue Recognition under ASC 6
Revenue Recognition under ASC 606 | 9 Months Ended |
Jan. 31, 2019 | |
Revenue Recognition under ASC 606 [Text Block] | Note 4 Revenue Recognition under ASC 606 On May 1, 2018, the Company adopted the new accounting standard, ASC 606 “Revenue from Contracts with Customers” Revenues from contracts with customers are recognized when control of promised goods and services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company recognizes revenue using the five-step model as prescribed by ASC 606: 1) Identification of the contract, or contracts, with a customer; 2) Identification of the performance obligations in the contract; 3) Determination of the transaction price; 4) Allocation of the transaction price to the performance obligations in the contract; and 5) Recognition of revenue when or as, the Company satisfies a performance obligation. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts at the end of each reporting period based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded against the related accounts receivable. The transaction price is the consideration that the Company expects to receive from its customers in exchange for its products or services. In determining the allocation of the transaction price, the Company identifies performance obligations in contracts with customers, which may include products, subscriptions to software and services, support, professional services and training. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis. The standalone selling price (“SSP”) is the price at which the Company would sell a promised product or service separately to a customer. The Company determines the SSP using information that may include market conditions or other observable inputs. In certain cases, the Company is able to establish a SSP based on observable prices for products or services sold separately. In these instances, the Company would use a single amount to estimate a SSP. If a SSP is not directly observable, for example when pricing is variable, the Company will use a range of SSP. In certain circumstances, the Company may estimate SSP for a product or service by applying the residual approach. This approach has been most commonly used when certain perpetual software licenses are only sold bundled with one year of post-contract support or other services, and a price has not been established for the software. Significant judgement is used to determine SSP and to determine whether there is a variance that needs to be allocated based on the relative SSP of the various products and services. Estimating SSP is a formal process that includes review and approval by the Company’s management. Software Revenue The Company generates software revenue primarily on a single fee per perpetual software license basis. The Company recognizes software revenue for perpetual licenses when control has transferred to the customer, which is generally at the time of delivery when the customer has the ability to deploy the licenses, provided all revenue recognition criteria have been met. If the revenue recognition criteria has not been met, the revenue is deferred or not recognized. Subscription, support and maintenance Revenue from the Company’s recurring subscription revenue from subscriptions related to our software as a service offering is recognized ratably over the contractual subscription term as control of the goods or services is transferred to the customer, beginning on the date that the subscription is made available to the customer. Support and maintenance revenue is generated from recurring annual software support and maintenance contracts for our perpetual software licenses and is recognized ratably over the term of the service period, which is generally twelve months. Support and maintenance services include e-mail and telephone support, unspecified rights to bug fixes and product updates and upgrades and enhancements available on a when-and-if available basis. Both subscription revenue and support and maintenance revenue are typically billed annually in advance based on the terms of the arrangement. Professional services and other Professional services and other revenue is generated through services including product configuration and customization, implementation, dedicated engineering and training. The amount of product configuration and customization required by a customer typically increases as the order size increases from a given customer. Services and pricing may vary depending upon a customer’s requirements for customization, implementation and training. Depending on the services to be provided, revenue from professional services and other is generally recognized at the time of delivery when the services have been completed and control has been transferred. For contracts with elements related to customized network solutions and certain network build-outs or software systems that require significant modification or customization, the Company will recognize revenue using the percentage-of-completion method. In using the percentage-of-completion method, revenues are generally recorded based on completion of milestones as described in the agreement. Profit estimates on long-term contracts are revised periodically based on changes in circumstances and any losses on contracts are recognized in the period that such losses become known. Unearned Revenue Unearned revenue represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual support and subscription services and professional services not yet provided as of the balance sheet date. During the three and nine months ended January 31, 2019, the Company recognized $473,272 and $2,129,124 in revenue, respectively, in its consolidated statements of operations that was previously recognized as unearned revenue in the consolidated balance sheets at May 1, 2018. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a systematic basis, consistent with the timing of revenue recognition over the anticipated benefit period of up to 3.5 years, depending on the products and services. The anticipated benefit period was estimated based on the average length of applicable customer contracts and includes the contract term and any anticipated renewal periods. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. The Company has elected to apply a practical expedient that permits the Company to expense costs to obtain a contract as incurred, if the anticipated benefit period is one year or less. From time to time, management will revisit the estimates used in recognizing the costs to obtain customer contracts. During the three and nine months ended January 31, 2019, the Company capitalized approximately $79,926 and $399,058, respectively, of costs to obtain revenue contracts and amortized approximately $73,127 and $186,822 of commissions during those same periods to sales and marketing expense. Capitalized costs to obtain a revenue contract on the Company's condensed consolidated balance sheets totaled approximately $172,373 at January 31, 2019. Costs to Fulfill a Customer Contract Certain contract costs incurred to fulfill obligations under a contract are capitalized when such costs generate or enhance resources to be used in satisfying future performance obligations and the costs are deemed recoverable. Judgement is used in determining whether certain contract costs can be capitalized. These costs are capitalized and amortized on a systematic basis to match the timing of revenue recognition over the anticipated benefit period of up to 3.5 years, depending on the products and services. The anticipated benefit period was estimated based on the average length of applicable customer contracts and includes the contract term and any anticipated renewal periods. This amortization expense is recorded in cost of sales in the Company’s consolidated statement of operations. From time to time, management will review the capitalized costs for impairment and will also revisit the estimates used in recognizing the costs to fulfill customer contracts. Adoption Impact of ASC 606 The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the condensed consolidated balance sheet as of May 1, 2018: Balance at ASC 606 Balance at April 30, 2018 Adjustments May 1, 2018 Current assets: Deferred sales commissions costs $ – $ 70,248 $ 70,248 Non-current assets: Deferred sales commissions costs $ – $ 63,785 $ 63,785 Stockholders’ equity: Accumulated deficit $ (63,701,685 ) $ 134,033 $ (63,567,652 ) The following tables summarize the adoption impact of ASC 606 on the Company's condensed consolidated financial statements for the three and nine months ended January 31, 2019. Selected Condensed Consolidated Income Statement Line Items: Three Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Revenue: Software $ 1,104,256 $ 15,055 $ 1,119,311 Subscription, support and maintenance 1,369,457 (2,070 ) 1,367,387 Professional services and other 118,206 (17,146 ) 101,060 Total revenue $ 2,591,919 $ (4,161 ) $ 2,587,758 Operating expenses: Sales and marketing $ 990,089 $ (6,799 ) $ 983,290 Loss from operations $ (1,030,030 ) $ 2,638 $ (1,027,392 ) Net loss per share: Basic and diluted $ (0.18 ) $ – $ (0.18 ) Nine Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Revenue: Software $ 3,415,716 $ (16,987 ) $ 3,398,729 Subscription, support and maintenance 3,941,904 (3,657 ) 3,938,247 Professional services and other 556,698 23,175 579,873 Total revenue $ 7,914,318 $ 2,531 $ 7,916,849 Operating expenses: Sales and marketing $ 2,982,294 $ (36,355 ) $ 2,945,939 Loss from operations $ (4,255,635 ) $ 38,886 $ (4,216,749 ) Net loss per share: Basic and diluted $ (0.71 ) $ 0.01 $ (0.70 ) Selected Condensed Consolidated Balance Line Items: January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Current assets: Deferred sales commissions costs $ – $ 110,561 $ 110,561 Current liabilities: Unearned revenue $ 2,682,604 $ (2,531 ) $ 2,680,073 Non-current assets: Deferred sales commissions costs $ – $ 61,812 $ 61,812 Stockholders’ equity: Accumulated deficit $ (67,871,578 ) $ 169,842 $ (67,701,736 ) Selected Condensed Consolidated Statement of Cash Flows Line Items: Nine Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Net loss $ (4,172,970 ) $ 38,886 $ (4,134,084 ) Deferred sales commissions costs $ – $ (38,340 ) $ (38,340 ) Unearned revenue $ 116,728 $ (2,531 ) $ 114,197 Unrealized foreign exchange (gain) loss $ (174,488 ) $ 1,985 $ (172,503 ) Net cash provided by operating activities $ (2,574,115 ) $ – $ (2,574,115 ) Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 10 – Segmented Information |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Jan. 31, 2019 | |
Derivative Instruments [Text Block] | Note 5 Derivative Instruments In the normal course of business, the Company is exposed to fluctuations in the exchange rates associated with foreign currencies. The Company’s primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk. Foreign Currency Exchange Rate Risk A majority of the Company’s revenue activities are transacted in U.S. dollars. However, the Company is exposed to foreign currency exchange rate risk, inherent in conducting business globally in multiple currencies, primarily from its business operations in Canada. The Company’s foreign currency risk management program includes entering into foreign currency derivatives at various times to mitigate the currency exchange rate risk on Canadian dollar denominated cash flows. These foreign currency forward and option contracts are considered non-designated derivative instruments and are not used for trading or speculative purposes. The changes in fair value and settlements are recorded in change in fair value of derivative instruments, net in the consolidated statement of operations. During the three and nine months ended January 31, 2019 and 2018, the Company did not enter into any designated cash flow hedge contracts. The following table summarizes the notional amounts of the Company’s outstanding derivative instruments: January 31, April 30, Fair value of Undesignated Derivatives 2019 2018 Foreign currency option contracts $ 2,000,000 $ – The following table presents the fair values of the Company’s derivative instruments on a gross basis as reflected on the Company’s consolidated balance sheets. The Company did not have any outstanding derivative contracts as of April 30, 2018. January 31, 2019 Derivative Derivative Fair value of Undesignated Derivatives Assets Liabilities Foreign currency option contracts $ 12,007 $ 18,052 During the three and nine months ended January 31, 2019, the Company recorded a gain of $4,255 and a loss of $897, respectively, resulting from the change in fair value of derivative instruments. No such gains or losses were recorded in the prior year as the Company did not enter into any forward and option contracts. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jan. 31, 2019 | |
Fair Value Measurements [Text Block] | Note 6 Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to valuation of these assets or liabilities are set forth below. Transfers between levels are recognized at the end of each quarter. The Company did not recognize any transfers between levels during the periods presented. Level 1—Inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3— unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The carrying values of financial instruments classified as current assets and current liabilities approximates their fair values, based on the nature and short maturity of these instruments, and are presented in the Company’s financial statements at carrying cost. Financial Instruments Measured at Fair value The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of January 31, 2019 and April 30, 2018. Carrying Fair Value As at January 31, 2019 Amount Fair Value Levels Reference Assets Cash $ 1,744,859 $ 1,744,859 1 N/A Foreign currency option contracts 12,007 12,007 2 Note 5 $ 1,756,866 $ 1,756,866 Liabilities Foreign currency option contracts $ 18,052 $ 18,052 2 Note 5 Carrying Fair Value As at April 30, 2018 Amount Fair Value Levels Reference Cash $ 2,348,883 $ 2,348,883 1 N/A Financial Instruments Not Measured at Fair Value The following table presents the Company’s liability that is not measured at fair value as of January 31, 2019, but for which fair value is available: Carrying Fair Value As at January 31, 2019 Amount Fair Value Levels Reference Loan payable $ 2,000,000 $ 2,118,677 2 Note 7 Loan payable is presented on the consolidated balance sheets at carrying cost. The fair value of the fixed interest rate loan is estimated based on observable market prices or inputs. Where observable prices or inputs are not available, valuation models are applied using the net present value of cash flow streams over the term, using estimated market rates for similar instruments and remaining terms. |
Loan Payable
Loan Payable | 9 Months Ended |
Jan. 31, 2019 | |
Loan Payable [Text Block] | Note 7 Loan Payable On October 10, 2018, the Company entered into a loan agreement (the “Loan Agreement”) with Wesley Clover International Corporation and KMB Trac Two Holdings Ltd for an aggregate principal amount of up to $3,000,000. Pursuant to the terms of the Loan Agreement, the loan is unsecured and will be made available in multiple advances at the discretion of the Company and will bear interest at a rate of 8% per year, payable monthly. The outstanding principal and any accrued interest may be prepaid without penalty and is to be fully repaid on the second anniversary of the first advance. As of January 31, 2019, the principal balance of the loan payable was $2,000,000. This balance is to be repaid on or before October 11, 2020. During the three and nine months ended January 31, 2019, the Company recognized $22,137 and $26,740, respectively, in interest expense in the consolidated statement of operations. See Note 9 – Related Party Transactions |
Common Stock
Common Stock | 9 Months Ended |
Jan. 31, 2019 | |
Common Stock [Text Block] | Note 8 Common Stock Private Placement On January 24, 2018, the Company issued an aggregate of 427,500 shares of common stock under a non-brokered private placement at a price of $4.01 per share for total gross proceeds of $1,714,275 less issuance costs of $48,325. On July 20, 2017, the Company issued an aggregate of 539,240 shares of common stock under a non-brokered private placement at a price of $2.20 per share for total gross proceeds of $1,186,328 less issuance costs of $19,832. There were no private placements during the nine months ended January 31, 2019. Shares Issued for Services On October 16, 2017, the Company entered into an agreement to issue 14,000 shares of the Company’s common stock in exchange for investor relation services. The agreement was terminated on April 8, 2018 as the services were no longer required. Pursuant to the terms of the agreement, upon termination, 7,211 shares of common stock were returned to the Company. Stock Options During the nine months ended January 31, 2019, the Company granted 221,000 stock options to certain employees of the Company. No stock options were granted during the same period in the prior year. The weighted-average fair value of options granted during the nine months ended January 31, 2019 was $0.82. The weighted-average assumptions utilized to determine such value is presented in the following table: Nine Months Ended January 31, 2019 Risk-free interest rate 2.7% Expected volatility 77.2% Expected term 3.7 years Dividend yield –% During the nine months ended January 31, 2019, the Company issued 6,958 shares pursuant to cashless exercises of 35,500 stock options and remitted employee tax withholdings of approximately $2,386 on the behalf of its employees. No stock options were exercised in the same periods in the prior year. The following is a summary of the status of the Company’s stock options as of January 31, 2019 and the stock option activity during the nine months ended January 31, 2019: Weighted Average Number of Exercise Price Options per Share Outstanding at April 30, 2018 675,042 $ 2.66 Granted 221,000 $ 1.45 Forfeited/Cancelled (151,635 ) $ 2.74 Expired (71,000 ) $ 2.50 Exercised (35,500 ) $ 2.50 Outstanding at January 31, 2019 637,907 $ 2.25 Exercisable at January 31, 2019 217,493 $ 2.57 Exercisable at April 30, 2018 256,555 $ 2.47 Employee and non-employee stock-based compensation amounts classified in the Company’s consolidated statements of operations for the three and nine months ended January 31, 2019 and 2018 are as follows: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Cost of sales $ 11,528 $ 11,583 $ 37,098 $ 39,439 Sales and marketing 16,333 17,141 55,093 58,814 Research and development 11,478 11,006 37,491 42,933 General and administrative 10,455 25,630 55,178 97,978 Total stock-option based compensation $ 49,794 $ 65,360 $ 184,860 $ 239,164 Employee Stock Purchase Plan Under the terms of the Employee Stock Purchase Plan (the “ESPP”) all regular salaried (non-probationary) employees can purchase up to 6% of their base salary in shares of the Company’s common stock at market price. The Company matches 50% of the shares purchased by issuing or purchasing in the market up to 3% of the respective employee’s base salary in shares. During the nine months ended January 31, 2019, the Company matched $19,118 (2018 - $36,210) in shares purchased by employees under the ESPP. During the nine months ended January 31, 2019, 19,724 shares (2018 – 12,832 shares) were purchased on the open market and 9,406 shares (2018 – 22,226) were issued from treasury under the ESPP. A total of 220,000 shares have been reserved for issuance under the ESPP. As of January 31, 2019, a total of 152,098 shares were available for issuance under the ESPP. Deferred Share Unit Plan During the nine months ended January 31, 2019, 236,981 (2018 - 119,998) deferred stock units (“DSUs”) were issued under the Deferred Stock Unit Plan (“DSUP”), of which 45,661 DSUs have been cancelled. Of the oustanding DSUs granted this year, 122,830 were granted to officers and employees and 68,490 were granted to non-employee directors. As of January 31, 2019, a total of 42,495 shares were available for issuance under the DSUP. The following table summarizes the Company’s outstanding DSU awards as of January 31, 2019, and changes during the period then ended: Weighted Average Grant Date Fair Number of DSUs Value Per DSU DSUs outstanding at April 30, 2018 465,390 $ 6.40 Granted 236,981 $ 2.05 Cancelled (68,880 ) $ 2.42 DSUs outstanding at January 31, 2019 633,491 $ 5.20 Employee and non-employee DSU based compensation amounts classified in the Company’s consolidated statements of operations for the three and nine months ended January 31, 2019 and 2018 are as follows: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 General and administrative $ 15,024 $ 22,564 $ 219,554 $ 255,719 Normal Course Issuer Bid Plan Pursuant to a normal course issuer bid (“NCIB”) commencing on March 29, 2017 and expired March 28, 2018, the Company was authorized to purchase 258,613 shares of the Company’s common stock through the facilities of the Toronto Stock Exchange (the “TSX”) and other Canadian marketplaces or U.S. marketplaces. During the period March 29, 2017 to January 31, 2018, the Company repurchased 73,500 common shares at an average price of $2.18 (CDN$2.81) for a total of $160,230. As of January 31, 2018, a total of 73,500 shares had been cancelled. On March 27, 2018, the Company filed another normal course issuer bid commencing on March 29, 2018 and expiring March 28, 2019. Under this normal course issuer bid, the Company is authorized to purchase up to 284,278 shares of its common stock through the facilities of the TSX and other Canadian marketplaces or U.S. marketplaces. During the three and nine months ended January 31, 2019, no shares were repurchased under the NCIB. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2019 | |
Related Party Transactions [Text Block] | Note 9 Related Party Transactions On October 10, 2018, the Company entered into a loan agreement (the “Loan Agreement”) with Wesley Clover International Corporation, a company controlled by the Chairman of the Company, and KMB Trac Two Holdings Ltd., a company owned by the spouse of a director of the Company. As of January 31, 2019, the principal balance of the loan payable was $2,000,000. During the three and nine months ended January 31, 2019, the Company recognized $22,137 and $26,740, respectively, in interest expense in the consolidated statement of operations. See Loan Payable During the three and nine months ended January 31, 2019, the Company through its wholly owned subsidiary, CounterPath Technologies Inc., paid $20,946 and $63,012 (2018 - $21,911 and $65,277), respectively, to KRP Properties (“KRP”) (previously known as Kanata Research Park Corporation) for leased office space. KRP is controlled by the Chairman of the Company. On November 21, 2013, the Company, through its wholly owned subsidiary, CounterPath Technologies Inc., entered into an agreement with 8007004 (Canada) Inc. (“8007004”) to lease office space. 8007004 is controlled by a member of the board of directors of the Company. CounterPath Technologies Inc., paid $7,733 and $23,263 (2018 - $8,258 and $24,820) for the three and nine months ended January 31, 2019, respectively. On January 24, 2018, the Company issued an aggregate of 427,500 shares of common stock under a non-brokered private placement at a price of $4.01 per share for total gross proceeds of $1,714,275 less issuance costs of $48,325. In connection with this private placement, KRP, a company controlled by the Chairman of the Company, purchased 125,000 shares and KMB Trac Two Holdings Ltd., a company owned by the spouse of a director of our Company, purchased 125,000 shares. On July 20, 2017, our Company issued an aggregate of 539,240 shares of common stock under a non-brokered private placement at a price of $2.20 per share for total gross proceeds of $1,186,328 less issuance costs of $19,832. In connection with this private placement, Wesley Clover International Corporation purchased 144,357 shares, KMB Trac Two Holdings Ltd., purchased 180,446 shares, the chief financial officer of the Company, purchased 4,511 shares, and the executive vice president, sales and marketing of the Company, purchased 4,545 shares. The above transactions are in the normal course of operations and are recorded at amounts established and agreed to between the related parties. |
Segmented Information
Segmented Information | 9 Months Ended |
Jan. 31, 2019 | |
Segmented Information [Text Block] | Note 10 Segmented Information The Company’s chief operating decision maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. Accordingly, the Company has concluded that it has one reportable operating segment. Revenues are categorized based on the country in which the customer is located. The following is a summary of total revenues by geographic area for the three and nine months ended January 31, 2019 and 2018: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 North America $ 1,682,944 $ 1,648,430 $ 5,063,949 $ 5,158,026 EMEA 501,404 1,127,537 1,713,885 3,304,887 Asia Pacific 278,440 216,479 830,100 744,693 Latin America 124,970 91,457 308,915 399,668 $ 2,587,758 $ 3,083,903 $ 7,916,849 $ 9,607,274 All of the Company’s long-lived assets, which include equipment, goodwill and intangible assets and other assets, are located in Canada and the United States as follows: January 31, April 30, 2019 2018 Canada 6,965,438 7,150,537 United States 30,905 35,919 $ 6,996,343 $ 7,186,456 |
Commitments
Commitments | 9 Months Ended |
Jan. 31, 2019 | |
Commitments [Text Block] | Note 11 Commitments Total payable over the term of the agreements for the period ended are as follows: Office Office Voice Leases – Leases – Total Platform Related Unrelated Office Service Total Party Party Leases Contract Commitments 2019 $ 28,038 $ 145,282 $ 173,320 $ 60,000 $ 233,320 2020 5,156 305,167 310,323 240,000 550,323 2021 − 41,331 41,331 220,000 261,331 2022 − 24,110 24,110 − 24,110 $ 33,194 $ 515,890 $ 549,084 $ 520,000 $ 1,069,084 |
Contingencies
Contingencies | 9 Months Ended |
Jan. 31, 2019 | |
Contingencies [Text Block] | Note 12 Contingencies The Company is party to legal claims from time to time which arise in the normal course of business. These claims are not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
Loss per share
Loss per share | 9 Months Ended |
Jan. 31, 2019 | |
Loss per share [Text Block] | Note 13 Loss per share The following table shows the computation of basic and diluted loss per share: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Numerator Net loss $ (1,059,380 ) $ (778,343 ) $ (4,134,084 ) $ (1,772,042 ) Denominator Weighted average shares outstanding 5,945,181 5,539,352 5,939,803 5,354,690 Effect of dilutive securities − − − − 5,945,181 5,539,352 5,939,803 5,354,690 Basic and diluted loss per share $ (0.18 ) $ (0.14 ) $ (0.70 ) $ (0.33 ) For the three and nine months ended January 31, 2019, common share equivalents consisting of stock options and DSUs totaling 1,271,398 for both periods were not included in the computation of diluted EPS because the effect was anti-dilutive. For the three and nine months ended January 31, 2018, common share equivalents consisting of stock options and DSUs totaling 1,144,172 for both periods were not included in the computation of diluted EPS because the effect was anti-dilutive. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2019 | |
Concentrations of Credit Risk [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by federal deposit insurance; however, the Company believes that its credit risk on cash balances is immaterial. The Company is also subject to concentrations of credit risk in its accounts receivable. The Company monitors and actively manages its receivables, and from time to time will insure certain receivables with higher credit risk and may require collateral or other securities to support its accounts receivable. Revenue from significant customers for the three and nine months ended January 31, 2019 and 2018 is summarized below: Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Customer A –% 17% –% 6% The table below presents significant customers who accounted for greater than 10% of total accounts receivable as of January 31, 2019 and April 30, 2018: January 31, April 30, 2019 2018 Customer A –% 18% Customer B –% 13% |
Accounts Receivable and Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are presented net of an allowance for doubtful accounts. January 31, April 30, 2019 2018 Balance of allowance for doubtful accounts, beginning of period $ 322,638 $ 80,232 Bad debt provision 801,523 578,024 Write-off of receivables – (335,618 ) Balance of allowance for doubtful accounts, end of period $ 1,124,161 $ 322,638 The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. |
Derivative Instruments [Policy Text Block] | Derivative Instruments The Company accounts for derivative instruments, consisting of foreign currency forward contracts, pursuant to the provisions of ASC 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires the Company to measure derivative instruments at fair value and record them in the balance sheet as either an asset or liability and expands financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, results of operations and cash flows. The Company does not use derivative instruments for trading purposes. ASC 815 also requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The Company also routinely enters into foreign currency forward contracts, not designated as hedging instruments, to protect the Company from fluctuations in exchange rates. Gains or losses arising out of marked to market fair value valuation of non-designated forward contracts are recognized in net income. The Company records foreign currency option and forward contracts on its Consolidated Balance Sheets as derivative assets or liabilities depending on whether the fair value of such contracts is a net asset or net liability, respectively. See Note 5 - Derivative Instruments |
Recently Adopted Accounting Pronouncements [Policy Text Block] | Recently Adopted Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, Revenue From Contracts With Customers Note 4 – Revenue Recognition |
Recently Issued Accounting Pronouncements [Policy Text Block] | Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This amendment is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment, which amends the guidance to eliminate Step 2 from the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Measurement of Credit Losses on Financial Instruments which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for a company’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected will a valuation provision. The amendments will be effective for fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on our consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | January 31, April 30, 2019 2018 Balance of allowance for doubtful accounts, beginning of period $ 322,638 $ 80,232 Bad debt provision 801,523 578,024 Write-off of receivables – (335,618 ) Balance of allowance for doubtful accounts, end of period $ 1,124,161 $ 322,638 |
Revenue [Member] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Customer A –% 17% –% 6% |
Trade Accounts Receivable [Member] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | January 31, April 30, 2019 2018 Customer A –% 18% Customer B –% 13% |
Revenue Recognition under ASC_2
Revenue Recognition under ASC 606 (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Condensed Balance Sheet [Table Text Block] | Balance at ASC 606 Balance at April 30, 2018 Adjustments May 1, 2018 Current assets: Deferred sales commissions costs $ – $ 70,248 $ 70,248 Non-current assets: Deferred sales commissions costs $ – $ 63,785 $ 63,785 Stockholders’ equity: Accumulated deficit $ (63,701,685 ) $ 134,033 $ (63,567,652 ) January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Current assets: Deferred sales commissions costs $ – $ 110,561 $ 110,561 Current liabilities: Unearned revenue $ 2,682,604 $ (2,531 ) $ 2,680,073 Non-current assets: Deferred sales commissions costs $ – $ 61,812 $ 61,812 Stockholders’ equity: Accumulated deficit $ (67,871,578 ) $ 169,842 $ (67,701,736 ) |
Condensed Income Statement [Table Text Block] | Three Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Revenue: Software $ 1,104,256 $ 15,055 $ 1,119,311 Subscription, support and maintenance 1,369,457 (2,070 ) 1,367,387 Professional services and other 118,206 (17,146 ) 101,060 Total revenue $ 2,591,919 $ (4,161 ) $ 2,587,758 Operating expenses: Sales and marketing $ 990,089 $ (6,799 ) $ 983,290 Loss from operations $ (1,030,030 ) $ 2,638 $ (1,027,392 ) Net loss per share: Basic and diluted $ (0.18 ) $ – $ (0.18 ) Nine Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Revenue: Software $ 3,415,716 $ (16,987 ) $ 3,398,729 Subscription, support and maintenance 3,941,904 (3,657 ) 3,938,247 Professional services and other 556,698 23,175 579,873 Total revenue $ 7,914,318 $ 2,531 $ 7,916,849 Operating expenses: Sales and marketing $ 2,982,294 $ (36,355 ) $ 2,945,939 Loss from operations $ (4,255,635 ) $ 38,886 $ (4,216,749 ) Net loss per share: Basic and diluted $ (0.71 ) $ 0.01 $ (0.70 ) |
Condensed Cash Flow Statement [Table Text Block] | Nine Months Ended January 31, 2019 ASC 606 (As Reported) ASC 605 Adjustments ASC 606 Net loss $ (4,172,970 ) $ 38,886 $ (4,134,084 ) Deferred sales commissions costs $ – $ (38,340 ) $ (38,340 ) Unearned revenue $ 116,728 $ (2,531 ) $ 114,197 Unrealized foreign exchange (gain) loss $ (174,488 ) $ 1,985 $ (172,503 ) Net cash provided by operating activities $ (2,574,115 ) $ – $ (2,574,115 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Derivative Instruments [Table Text Block] | January 31, April 30, Fair value of Undesignated Derivatives 2019 2018 Foreign currency option contracts $ 2,000,000 $ – |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | January 31, 2019 Derivative Derivative Fair value of Undesignated Derivatives Assets Liabilities Foreign currency option contracts $ 12,007 $ 18,052 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | Carrying Fair Value As at January 31, 2019 Amount Fair Value Levels Reference Assets Cash $ 1,744,859 $ 1,744,859 1 N/A Foreign currency option contracts 12,007 12,007 2 Note 5 $ 1,756,866 $ 1,756,866 Liabilities Foreign currency option contracts $ 18,052 $ 18,052 2 Note 5 Carrying Fair Value As at April 30, 2018 Amount Fair Value Levels Reference Cash $ 2,348,883 $ 2,348,883 1 N/A |
Schedule of Assets and Liabilities Not Measured at Fair Value [Table Text Block] | Carrying Fair Value As at January 31, 2019 Amount Fair Value Levels Reference Loan payable $ 2,000,000 $ 2,118,677 2 Note 7 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended January 31, 2019 Risk-free interest rate 2.7% Expected volatility 77.2% Expected term 3.7 years Dividend yield –% |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Number of Exercise Price Options per Share Outstanding at April 30, 2018 675,042 $ 2.66 Granted 221,000 $ 1.45 Forfeited/Cancelled (151,635 ) $ 2.74 Expired (71,000 ) $ 2.50 Exercised (35,500 ) $ 2.50 Outstanding at January 31, 2019 637,907 $ 2.25 Exercisable at January 31, 2019 217,493 $ 2.57 Exercisable at April 30, 2018 256,555 $ 2.47 19 |
Schedule of Employee and Non-Employee Service Share-based Compensation Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Cost of sales $ 11,528 $ 11,583 $ 37,098 $ 39,439 Sales and marketing 16,333 17,141 55,093 58,814 Research and development 11,478 11,006 37,491 42,933 General and administrative 10,455 25,630 55,178 97,978 Total stock-option based compensation $ 49,794 $ 65,360 $ 184,860 $ 239,164 |
Schedule of Stockholders Equity Deferred Share Unit Plan [Table Text Block] | Weighted Average Grant Date Fair Number of DSUs Value Per DSU DSUs outstanding at April 30, 2018 465,390 $ 6.40 Granted 236,981 $ 2.05 Cancelled (68,880 ) $ 2.42 DSUs outstanding at January 31, 2019 633,491 $ 5.20 |
Schedule of Allocation of Share Based Compensation Costs for Deferred Share Units [Table Text Block] | Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 General and administrative $ 15,024 $ 22,564 $ 219,554 $ 255,719 |
Segmented Information (Tables)
Segmented Information (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 North America $ 1,682,944 $ 1,648,430 $ 5,063,949 $ 5,158,026 EMEA 501,404 1,127,537 1,713,885 3,304,887 Asia Pacific 278,440 216,479 830,100 744,693 Latin America 124,970 91,457 308,915 399,668 $ 2,587,758 $ 3,083,903 $ 7,916,849 $ 9,607,274 |
Schedule of Long Lived Assets by Geographical Areas [Table Text Block] | January 31, April 30, 2019 2018 Canada 6,965,438 7,150,537 United States 30,905 35,919 $ 6,996,343 $ 7,186,456 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Agreements by Year [Table Text Block] | Office Office Voice Leases – Leases – Total Platform Related Unrelated Office Service Total Party Party Leases Contract Commitments 2019 $ 28,038 $ 145,282 $ 173,320 $ 60,000 $ 233,320 2020 5,156 305,167 310,323 240,000 550,323 2021 − 41,331 41,331 220,000 261,331 2022 − 24,110 24,110 − 24,110 $ 33,194 $ 515,890 $ 549,084 $ 520,000 $ 1,069,084 |
Loss per share (Tables)
Loss per share (Tables) | 9 Months Ended |
Jan. 31, 2019 | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended January 31, January 31, 2019 2018 2019 2018 Numerator Net loss $ (1,059,380 ) $ (778,343 ) $ (4,134,084 ) $ (1,772,042 ) Denominator Weighted average shares outstanding 5,945,181 5,539,352 5,939,803 5,354,690 Effect of dilutive securities − − − − 5,945,181 5,539,352 5,939,803 5,354,690 Basic and diluted loss per share $ (0.18 ) $ (0.14 ) $ (0.70 ) $ (0.33 ) |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Narrative) (Details) - USD ($) | Jan. 31, 2019 | Oct. 10, 2018 | Apr. 30, 2018 |
Accumulated deficit | $ (67,701,736) | $ (63,701,685) | |
Loans Payable | $ 2,000,000 | ||
Maximum [Member] | |||
Loans Payable | $ 3,000,000 |
Revenue Recognition under ASC_3
Revenue Recognition under ASC 606 (Narrative) (Details) | 3 Months Ended | 9 Months Ended |
Jan. 31, 2019USD ($) | Jan. 31, 2019USD ($) | |
Deferred Revenue, Revenue Recognized | $ 473,272 | $ 2,129,124 |
Capitalized Contract Cost, cost capitalized during period | 79,926 | 399,058 |
Capitalized Contract Cost, Amortization | 73,127 | 186,822 |
Capitalized Contract Cost | $ 172,373 | $ 172,373 |
Revenue recognition, anticipated benefit period | 3 years 6 months |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jan. 31, 2019 | Jan. 31, 2019 | |
Fair value adjustment on derivative instruments | $ 4,255 | $ (897) |
Loan Payable (Narrative) (Detai
Loan Payable (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2019 | Oct. 10, 2018 | |
Loan payable | $ 2,000,000 | $ 2,000,000 | |
Debt instrument, interest rate | 8.00% | 8.00% | |
Interest expense | $ 22,137 | $ 26,740 | |
Maximum [Member] | |||
Loan payable | $ 3,000,000 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) | Apr. 08, 2018shares | Jan. 24, 2018USD ($)$ / sharesshares | Oct. 16, 2017shares | Jul. 20, 2017USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | Mar. 27, 2018shares | Jan. 31, 2018$ / shares | Mar. 29, 2017shares |
Stock Issued During Period, Shares, New Issues | 427,500 | 539,240 | ||||||||
Equity Issuance, Per Share Amount | $ / shares | $ 4.01 | $ 2.20 | ||||||||
Proceeds from Issuance of Private Placement | $ | $ 1,714,275 | $ 1,186,328 | ||||||||
Payments of Stock Issuance Costs | $ | $ 48,325 | $ 19,832 | ||||||||
Stock Issued During Period, Shares, Issued for Services | 14,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 221,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0.82 | |||||||||
Shares issued pursuant to cashless exercises of stock options | 6,958 | |||||||||
Exercise of stock options (Shares) | 35,500 | |||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ | $ 2,386 | |||||||||
Employee Stock Ownership Plan (ESOP), Plan Description | Under the terms of the Employee Stock Purchase Plan (the “ESPP”) all regular salaried (non-probationary) employees can purchase up to 6% of their base salary in shares of the Company’s common stock at market price. The Company matches 50% of the shares purchased by issuing or purchasing in the market up to 3% of the respective employee’s base salary in shares. | |||||||||
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP | 19,118 | 36,210 | ||||||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 220,000 | |||||||||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 152,098 | |||||||||
Deferred Share Units Granted During Period | 236,981 | 119,998 | ||||||||
Deferred Share Units Granted And Cancelled During Period | 45,661 | |||||||||
Deferred Share Units Available for Issuance | 42,495 | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 284,278 | 258,613 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | (per share) | $ 2.18 | $ 2.18 | $ 2.81 | |||||||
Payments for Repurchase of Common Stock | $ | $ 32,059 | $ 160,230 | ||||||||
Stock Repurchased During Period, Shares which have been Cancelled | 73,500 | |||||||||
Stock Repurchased and Retired During Period, Shares | 73,500 | |||||||||
Stock Repurchased During Period, Shares | 7,211 | |||||||||
Granted to Officers or Employees [Member] | ||||||||||
Deferred Share Units Granted During Period | 122,830 | |||||||||
Granted to Non-Employee Directors [Member] | ||||||||||
Deferred Share Units Granted During Period | 68,490 | |||||||||
Shares purchased on the open market [Member] | ||||||||||
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP | 19,724 | 12,832 | ||||||||
Shares issued from treasury under the ESPP [Member] | ||||||||||
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP | 9,406 | 22,226 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 24, 2018 | Jul. 20, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Loans Payable | $ 2,000,000 | $ 2,000,000 | ||||
Interest Expense, Debt | 22,137 | 26,740 | ||||
Private placement, net of share issuance costs (Shares) | 427,500 | 539,240 | ||||
Sale of Stock, Price Per Share | $ 4.01 | $ 2.20 | ||||
Proceeds from Issuance of Common Stock | $ 1,714,275 | $ 1,186,328 | 16,739 | $ 2,895,655 | ||
Payments of Stock Issuance Costs | $ 48,325 | $ 19,832 | ||||
KRP [Member] | ||||||
Payments for Rent | 20,946 | $ 21,911 | 63,012 | 65,277 | ||
Private placement, net of share issuance costs (Shares) | 125,000 | |||||
8007004 (Canada) Inc. [Member] | ||||||
Payments for Rent | $ 7,733 | $ 8,258 | $ 23,263 | $ 24,820 | ||
Wesley Clover [Member] | ||||||
Private placement, net of share issuance costs (Shares) | 144,357 | |||||
KMB Trac Two Holdings Ltd [Member] | ||||||
Private placement, net of share issuance costs (Shares) | 125,000 | 180,446 | ||||
The chief financial officer of our company [Member] | ||||||
Private placement, net of share issuance costs (Shares) | 4,511 | |||||
Executive Vice President [Member] | ||||||
Private placement, net of share issuance costs (Shares) | 4,545 |
Loss per share (Narrative) (Det
Loss per share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,271,398 | 1,144,172 | 1,271,398 | 1,144,172 |
Schedules of Concentration of R
Schedules of Concentration of Risk, by Risk Factor (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Apr. 30, 2018 | |
Customer A [Member] | Revenue [Member] | |||||
Concentration Risk, Percentage | 0.00% | 17.00% | 0.00% | 6.00% | |
Customer A [Member] | Trade Accounts Receivable [Member] | |||||
Concentration Risk, Percentage | 0.00% | 18.00% | |||
Customer B [Member] | Trade Accounts Receivable [Member] | |||||
Concentration Risk, Percentage | 0.00% | 13.00% |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jan. 31, 2019 | Apr. 30, 2018 | |
Balance of allowance for doubtful accounts, beginning of period | $ 322,638 | $ 80,232 |
Bad debt provision | 801,523 | 578,024 |
Write-off of receivables | 0 | (335,618) |
Balance of allowance for doubtful accounts, end of period | $ 1,124,161 | $ 322,638 |
Schedule of condensed Balance S
Schedule of condensed Balance Sheet (Details) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Current assets: | ||
Deferred sales commissions costs | $ 110,561 | $ 0 |
Unearned revenue | 2,680,073 | 2,565,876 |
Non-current assets: | ||
Deferred sales commissions costs | 0 | |
Stockholders equity: | ||
Accumulated deficit | (67,701,736) | (63,701,685) |
ASC 605 [Member] | ||
Current assets: | ||
Deferred sales commissions costs | 0 | |
Unearned revenue | 2,682,604 | |
Non-current assets: | ||
Deferred sales commissions costs | 0 | |
Stockholders equity: | ||
Accumulated deficit | (67,871,578) | |
ASC 606 Adjustments [Member] | ||
Current assets: | ||
Deferred sales commissions costs | 110,561 | 70,248 |
Unearned revenue | (2,531) | |
Non-current assets: | ||
Deferred sales commissions costs | 61,812 | 63,785 |
Stockholders equity: | ||
Accumulated deficit | 169,842 | 134,033 |
ASC 606 [Member] | ||
Current assets: | ||
Deferred sales commissions costs | 110,561 | 70,248 |
Unearned revenue | 2,680,073 | |
Non-current assets: | ||
Deferred sales commissions costs | 61,812 | 63,785 |
Stockholders equity: | ||
Accumulated deficit | $ (67,701,736) | $ (63,567,652) |
Schedule of condensed Income St
Schedule of condensed Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue | ||||
Software | $ 1,119,311 | $ 1,791,165 | $ 3,398,729 | $ 5,306,925 |
Subscription, support and maintenance | 1,367,387 | 1,120,690 | 3,938,247 | 3,069,371 |
Professional services and other | 101,060 | 172,048 | 579,873 | 1,230,978 |
Total revenue | 2,587,758 | 3,083,903 | 7,916,849 | 9,607,274 |
Operating expenses: | ||||
Sales and marketing | 983,290 | 996,470 | 2,945,939 | 3,031,981 |
Loss from operations | $ (1,027,392) | $ (435,892) | $ (4,216,749) | $ (1,015,192) |
Net loss per share: | ||||
Basic and diluted | $ (0.18) | $ (0.14) | $ (0.70) | $ (0.33) |
ASC 605 [Member] | ||||
Revenue | ||||
Software | $ 1,104,256 | $ 3,415,716 | ||
Subscription, support and maintenance | 1,369,457 | 3,941,904 | ||
Professional services and other | 118,206 | 556,698 | ||
Total revenue | 2,591,919 | 7,914,318 | ||
Operating expenses: | ||||
Sales and marketing | 990,089 | 2,982,294 | ||
Loss from operations | $ (1,030,030) | $ (4,255,635) | ||
Net loss per share: | ||||
Basic and diluted | $ (0.18) | $ (0.71) | ||
ASC 606 Adjustments [Member] | ||||
Revenue | ||||
Software | $ 15,055 | $ (16,987) | ||
Subscription, support and maintenance | (2,070) | (3,657) | ||
Professional services and other | (17,146) | 23,175 | ||
Total revenue | (4,161) | 2,531 | ||
Operating expenses: | ||||
Sales and marketing | (6,799) | (36,355) | ||
Loss from operations | $ 2,638 | $ 38,886 | ||
Net loss per share: | ||||
Basic and diluted | $ 0 | $ 0.01 |
Schedule of condensed Cash Flow
Schedule of condensed Cash Flow Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Net loss | $ (1,059,380) | $ (778,343) | $ (4,134,084) | $ (1,772,042) |
Deferred sales commission costs | (38,340) | |||
Unearned revenue | 114,197 | 286,724 | ||
Unrealized foreign exchange (gain) loss | (172,503) | 707,942 | ||
Net cash used in operating activities | (2,574,115) | $ (1,868,407) | ||
ASC 605 [Member] | ||||
Net loss | (4,172,970) | |||
Deferred sales commission costs | 0 | |||
Unearned revenue | 116,728 | |||
Unrealized foreign exchange (gain) loss | (174,488) | |||
Net cash used in operating activities | (2,574,115) | |||
ASC 606 Adjustments [Member] | ||||
Net loss | 38,886 | |||
Deferred sales commission costs | (38,340) | |||
Unearned revenue | (2,531) | |||
Unrealized foreign exchange (gain) loss | 1,985 | |||
Net cash used in operating activities | $ 0 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments (Details) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Foreign currency option contracts [Member] | ||
Foreign currency option contracts | $ 2,000,000 | $ 0 |
Schedule of Derivative Instru_2
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) | Jan. 31, 2019USD ($) |
Derivative assets | $ 12,007 |
Derivative liability | 18,052 |
Foreign currency option contracts [Member] | |
Derivative assets | 12,007 |
Derivative liability | $ 18,052 |
Fair Value, Measured on Recurri
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings (Details) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2017 |
Cash, Carrying Amount | $ 1,744,859 | $ 2,348,883 | $ 3,048,418 | $ 2,071,019 |
Cash, Fair Value | 1,744,859 | $ 2,348,883 | ||
Foreign currency option contracts, Carrying Amount | 12,007 | |||
Foreign currency option contracts, Fair Value | 12,007 | |||
Assets, Carrying Amount | 1,756,866 | |||
Assets, Fair Value | 1,756,866 | |||
Foreign currency forward contracts, Carrying Amount | 18,052 | |||
Foreign currency forward contracts, Fair Value | $ 18,052 |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Not Measured at Fair Value (Details) | Jan. 31, 2019USD ($) |
Loan payable | $ 2,000,000 |
Loans Payable, Fair Value Disclosure | $ 2,118,677 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 9 Months Ended |
Jan. 31, 2019 | |
Risk-free interest rate | 2.70% |
Expected volatility | 77.20% |
Expected term | 3 years 8 months 12 days |
Dividend yield | 0.00% |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) | 9 Months Ended |
Jan. 31, 2019$ / sharesshares | |
Number of Options Outstanding at the beginning of period | shares | 675,042 |
Weighted Average Exercise Price per Share of Options Oustanding at the beginning of period | $ / shares | $ 2.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 221,000 |
Weighted Average Exercise Price per Share of Options Granted | $ / shares | $ 1.45 |
Number of Options Forfeited/Cancelled | shares | (151,635) |
Weighted Average Exercise Price per Share of Options Forfeited/Cancelled | $ / shares | $ 2.74 |
Number of Options Expired | shares | (71,000) |
Weighted Average Exercise Price per Share of Options Expired | $ / shares | $ 2.50 |
Number of Options Exercised | shares | (35,500) |
Weighted Average Exercise Price per Share of Options Exercised | $ / shares | $ 2.50 |
Number of Options Outstanding at the end of period | shares | 637,907 |
Weighted Average Exercise Price per Share of Options Outstanding at end of period | $ / shares | $ 2.25 |
Number of Options Exercisable at the end of period | shares | 217,493 |
Weighted Average Exercise Price per Share of Options Exercisable at end of period | $ / shares | $ 2.57 |
Number of Options Exercisable at the beginning of period | shares | 256,555 |
Weighted Average Exercise Price per Share of Options Exercisable at beginning of period | $ / shares | $ 2.47 |
Schedule of Employee and Non-Em
Schedule of Employee and Non-Employee Service Share-based Compensation Allocation of Recognized Period Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Allocated Share-based Compensation Expense | $ 49,794 | $ 65,360 | $ 184,860 | $ 239,164 |
Cost of sales [Member] | ||||
Allocated Share-based Compensation Expense | 11,528 | 11,583 | 37,098 | 39,439 |
Sales and marketing [Member] | ||||
Allocated Share-based Compensation Expense | 16,333 | 17,141 | 55,093 | 58,814 |
Research and development [Member] | ||||
Allocated Share-based Compensation Expense | 11,478 | 11,006 | 37,491 | 42,933 |
General and administrative [Member] | ||||
Allocated Share-based Compensation Expense | $ 10,455 | $ 25,630 | $ 55,178 | $ 97,978 |
Schedule of Stockholders Equity
Schedule of Stockholders Equity Deferred Share Unit Plan (Details) - USD ($) | 9 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Deferred Share Units Outstanding, beginning of period | 465,390 | |
Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, beginning of period | $ 6.40 | |
Deferred Share Units Granted During Period | 236,981 | 119,998 |
Deferred Share Units Granted During Period Weighted Average Grant Date Fair Value | $ 2.05 | |
Deferred Share Units Converted During Period | (68,880) | |
Deferred Share Units Converted During Period Weighted Average Grant Date Fair Value | $ 2.42 | |
Deferred Share Units Outstanding, end of period | 633,491 | |
Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, end of period | $ 5.20 |
Schedule of Allocation of Share
Schedule of Allocation of Share Based Compensation Costs for Deferred Share Units (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
General and administrative [Member] | ||||
Deferred Compensation, Allocated Share-based Compensation Expense | $ 15,024 | $ 22,564 | $ 219,554 | $ 255,719 |
Schedule of Revenue from Extern
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Total revenue | $ 2,587,758 | $ 3,083,903 | $ 7,916,849 | $ 9,607,274 |
North America [Member] | ||||
Total revenue | 1,682,944 | 1,648,430 | 5,063,949 | 5,158,026 |
EMEA [Member] | ||||
Total revenue | 501,404 | 1,127,537 | 1,713,885 | 3,304,887 |
Asia Pacific [Member] | ||||
Total revenue | 278,440 | 216,479 | 830,100 | 744,693 |
Latin America [Member] | ||||
Total revenue | $ 124,970 | $ 91,457 | $ 308,915 | $ 399,668 |
Schedule of Long Lived Assets b
Schedule of Long Lived Assets by Geographical Areas (Details) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 |
Long-lived assets | $ 6,996,343 | $ 7,186,456 |
Canada | ||
Long-lived assets | 6,965,438 | 7,150,537 |
United States | ||
Long-lived assets | $ 30,905 | $ 35,919 |
Schedule of Agreements by Year
Schedule of Agreements by Year (Details) | Jan. 31, 2019USD ($) |
2019 | $ 233,320 |
2020 | 550,323 |
2021 | 261,331 |
2022 | 24,110 |
Commitment Total | 1,069,084 |
Office Leases - Related party [Member] | |
2019 | 28,038 |
2020 | 5,156 |
2021 | 0 |
2022 | 0 |
Commitment Total | 33,194 |
Office Leases - Unrelated Party [Member] | |
2019 | 145,282 |
2020 | 305,167 |
2021 | 41,331 |
2022 | 24,110 |
Commitment Total | 515,890 |
Total Office Leases [Member] | |
2019 | 173,320 |
2020 | 310,323 |
2021 | 41,331 |
2022 | 24,110 |
Commitment Total | 549,084 |
Voice Platform Service Contract [Member] | |
2019 | 60,000 |
2020 | 240,000 |
2021 | 220,000 |
2022 | 0 |
Commitment Total | $ 520,000 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Net loss | $ (1,059,380) | $ (778,343) | $ (4,134,084) | $ (1,772,042) |
Weighted average shares outstanding Basic | 5,945,181 | 5,539,352 | 5,939,803 | 5,354,690 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted average shares outstanding Diluted | 5,945,181 | 5,539,352 | 5,939,803 | 5,354,690 |
Basic and diluted loss per share | $ (0.18) | $ (0.14) | $ (0.70) | $ (0.33) |