Cover
Cover - shares | 9 Months Ended | |
Jan. 31, 2023 | Mar. 16, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 001-41443 | |
Entity Registrant Name | NETCAPITAL INC. | |
Entity Central Index Key | 0001414767 | |
Entity Tax Identification Number | 87-0409951 | |
Entity Incorporation, State or Country Code | UT | |
Entity Address, Address Line One | 1 Lincoln Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02111 | |
City Area Code | (781) | |
Local Phone Number | 925-1700 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | NCPL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,071,777 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jan. 31, 2023 | Apr. 30, 2022 |
Assets: | ||
Cash and cash equivalents | $ 1,771,927 | $ 473,925 |
Related party receivable | 668 | 668 |
Accounts receivable net | 2,163,931 | 2,433,900 |
Prepaid expenses | 36,844 | 5,694 |
Total current assets | 3,973,370 | 2,914,187 |
Deposits | 6,300 | 6,300 |
Notes receivable – related parties | 202,000 | 202,000 |
Purchased technology, net | 15,903,628 | 15,536,704 |
Investment in affiliate | 240,080 | 240,080 |
Equity securities | 19,250,193 | 12,861,253 |
Total assets | 39,575,571 | 31,760,524 |
Current liabilities: | ||
Trade | 634,970 | 536,508 |
Related party | 75,204 | 378,077 |
Accrued expenses | 246,665 | 229,867 |
Stock subscription payable | 10,000 | 33,400 |
Deferred revenue | 718 | 2,532 |
Interest payable | 89,491 | 222,295 |
Deferred tax liability, net | 1,476,000 | 977,000 |
Related party debt | 15,000 | 22,860 |
Secured note payable | 350,000 | 1,400,000 |
Current portion of SBA loans | 1,885,800 | 1,890,727 |
Loan payable - bank | 34,324 | 34,324 |
Convertible notes payable | 300,000 | |
Total current liabilities | 4,818,172 | 6,027,590 |
Long-term liabilities: | ||
Long-term SBA loans, less current portion | 500,000 | 495,073 |
Total liabilities | 5,318,172 | 6,522,663 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $.001 par value; 900,000,000 shares authorized, 6,071,777 and 2,934,344 shares issued and outstanding | 6,072 | 2,934 |
Shares to be issued | 183,187 | 244,250 |
Capital in excess of par value | 29,613,118 | 22,479,769 |
Retained earnings | 4,455,022 | 2,510,908 |
Total stockholders’ equity | 34,257,399 | 25,237,861 |
Total liabilities and stockholders’ equity | $ 39,575,571 | $ 31,760,524 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jan. 31, 2023 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 900,000,000 | 900,000,000 |
Common stock, issued | 6,071,777 | 2,934,344 |
Common stock, outstanding | 6,071,777 | 2,934,344 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,260,414 | $ 1,811,041 | $ 5,379,960 | $ 3,636,050 |
Costs of services | 4,305 | 39,349 | 61,603 | 85,429 |
Gross profit | 2,256,109 | 1,771,692 | 5,318,357 | 3,550,621 |
Costs and expenses: | ||||
Consulting expense | 130,500 | 309,345 | 455,892 | 675,180 |
Marketing | 23,549 | 23,945 | 64,211 | 67,771 |
Rent | 17,187 | 11,869 | 51,586 | 34,480 |
Payroll and payroll related expenses | 946,043 | 1,241,332 | 2,592,891 | 3,032,987 |
General and administrative costs | 568,253 | 320,724 | 1,241,365 | 1,277,146 |
Total costs and expenses | 1,685,532 | 1,907,415 | 4,405,945 | 5,087,564 |
Operating income (loss) | 570,577 | (135,723) | 912,412 | (1,536,973) |
Other income (expense): | ||||
Interest expense | (17,632) | (20,573) | (76,922) | (90,844) |
Gain on debt conversion | 224,260 | |||
Debt forgiveness | 1,904,302 | 1,904,302 | ||
Amortization of intangible assets | (25,914) | (68,076) | ||
Realized loss on sale of investment | (406,060) | |||
Unrealized gain on equity securities | 1,866,468 | 1,857,500 | 3,275,745 | |
Total other income (expense) | 1,822,922 | 1,883,729 | 1,530,702 | 5,089,203 |
Net income before taxes | 2,393,499 | 1,748,006 | 2,443,114 | 3,552,260 |
Income tax expense (benefit) | 697,000 | (73,000) | 499,000 | 548,000 |
Net income | $ 1,696,499 | $ 1,821,006 | $ 1,944,114 | $ 3,004,260 |
Basic earnings per share | $ 0.33 | $ 0.64 | $ 0.46 | $ 1.16 |
Diluted earnings per share | $ 0.33 | $ 0.63 | $ 0.46 | $ 1.14 |
Weighted average number of common shares outstanding: | ||||
Basic | 5,166,299 | 2,842,924 | 4,208,216 | 2,589,142 |
Diluted | 5,166,549 | 2,882,825 | 4,208,466 | 2,629,043 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Shares To Be Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Apr. 30, 2021 | $ 2,178 | $ 15,168,987 | $ (992,622) | $ 14,178,543 | |
Beginning balance, Shares at Apr. 30, 2021 | 2,178,766 | ||||
Q4 stock-based compensation | $ 2 | 14,054 | 14,056 | ||
Q1 stock-based compensation, shares | 937 | ||||
Sale of common stock | $ 176 | 1,592,219 | 1,592,395 | ||
Sale of common stock, Shares | 176,934 | ||||
Shares issued to acquire funding portal: | $ 362 | 3,523,100 | 3,523,462 | ||
Shares issued to acquire funding port, shares | 361,736 | ||||
Net income for January 31, 2023 quarter | 1,457,410 | 1,457,410 | |||
Ending balance, value at Jul. 31, 2021 | $ 2,718 | 20,298,360 | 464,788 | 20,765,866 | |
Ending balance, Shares at Jul. 31, 2021 | 2,718,373 | ||||
Q4 stock-based compensation | $ 1 | 10,072 | 10,073 | ||
Net income for January 31, 2023 quarter | (274,156) | (274,156) | |||
Ending balance, value at Oct. 31, 2021 | $ 2,719 | 20,308,432 | 190,632 | 20,501,783 | |
Ending balance, Shares at Oct. 31, 2021 | 2,719,310 | ||||
Q4 stock-based compensation | $ 55 | 553,967 | 554,022 | ||
Q1 stock-based compensation, shares | 55,312 | ||||
Purchase of equity interest | $ 50 | 499,950 | 500,000 | ||
Purchase of equity interest, Shares | 50,000 | ||||
Purchase of MSG Development Corp. | $ 50 | 244,250 | 488,450 | 732,750 | |
Purchase of MSG Development Corp, Shares | 50,000 | ||||
Sale of common stock | $ 22 | 199,978 | 200,000 | ||
Sale of common stock, Shares | 22,222 | ||||
Net income for January 31, 2023 quarter | 1,821,006 | 1,821,006 | |||
Ending balance, value at Jan. 31, 2022 | $ 2,896 | 244,250 | 22,050,777 | 2,011,638 | 24,309,561 |
Ending balance, Shares at Jan. 31, 2022 | 2,896,844 | ||||
Q4 stock-based compensation | 29,030 | 29,030 | |||
Q1 stock-based compensation, shares | |||||
Purchase of equity interest | $ 38 | 399,962 | 400,000 | ||
Purchase of equity interest, Shares | 37,500 | ||||
Net income for January 31, 2023 quarter | 499,270 | 499,270 | |||
Ending balance, value at Apr. 30, 2022 | $ 2,934 | 244,250 | 22,479,769 | 2,510,908 | 25,237,861 |
Ending balance, Shares at Apr. 30, 2022 | 2,934,344 | ||||
Shares issued for debt conversion | $ 134 | 379,852 | 379,986 | ||
Shares issued for debt conversion, Shares | 133,333 | ||||
Sale of common stock | $ 1,205 | 3,947,912 | 3,949,117 | ||
Sale of common stock, Shares | 1,205,000 | ||||
Vesting of stock options | 32,953 | 32,953 | |||
Net income for January 31, 2023 quarter | 64,477 | 64,477 | |||
Ending balance, value at Jul. 31, 2022 | $ 4,273 | 244,250 | 26,840,486 | 2,575,385 | 29,664,394 |
Ending balance, Shares at Jul. 31, 2022 | 4,272,677 | ||||
Purchase of equity interest | $ 37 | 366,338 | 366,375 | ||
Purchase of equity interest, Shares | 37,500 | ||||
Sale of common stock | $ 3 | 23,397 | 23,400 | ||
Sale of common stock, Shares | 2,600 | ||||
Vesting of stock options | 32,953 | 32,953 | |||
Net income for January 31, 2023 quarter | 183,138 | 183,138 | |||
Ending balance, value at Oct. 31, 2022 | $ 4,313 | 244,250 | 27,263,174 | 2,758,523 | 30,270,260 |
Ending balance, Shares at Oct. 31, 2022 | 4,312,777 | ||||
Purchase of equity interest | $ 19 | 171,105 | 171,124 | ||
Purchase of equity interest, Shares | 18,750 | ||||
Sale of common stock | $ 1,434 | 1,620,025 | 1,621,459 | ||
Sale of common stock, Shares | 1,434,000 | ||||
Vesting of stock options | 63,057 | 63,057 | |||
Net income for January 31, 2023 quarter | 1,696,499 | 1,696,499 | |||
Purchase of intellectual property | $ 300 | 434,700 | 435,000 | ||
Purchase of intellectual property, shares | 300,000 | ||||
Reduction in shares to be issued | $ 6 | (61,063) | 61,057 | ||
Reduction in shares to be issued, shares | 6,250 | ||||
Ending balance, value at Jan. 31, 2023 | $ 6,072 | $ 183,187 | $ 29,613,118 | $ 4,455,022 | $ 34,257,399 |
Ending balance, Shares at Jan. 31, 2023 | 6,071,777 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,944,114 | $ 3,004,260 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Stock-based compensation | 128,963 | 1,137,042 |
Receipt of equity in lieu of cash | (4,600,000) | (1,187,500) |
Unrealized gain on equity securities | (1,857,500) | (3,275,745) |
Debt forgiveness | (1,904,302) | |
Gain on debt conversion | (224,260) | |
Provision for bad debts | 2,600 | |
Realized loss on investment | 406,060 | |
Changes in deferred taxes | 499,000 | 548,000 |
Amortization of intangible assets | 68,076 | |
Changes in non-cash working capital balances: | ||
Accounts receivable | 267,369 | (900,242) |
Prepaid expenses | (31,150) | 21,983 |
Accounts payable and accrued expenses | 115,259 | 138,797 |
Deferred revenue | (1,814) | 24,991 |
Accrued interest payable | (122,612) | 89,258 |
Accounts payable – related party | (8,819) | |
Net cash used in operating activities | (3,414,714) | (2,303,458) |
INVESTING ACTIVITIES | ||
Proceeds from sale of investment | 200,000 | |
Loans to affiliates | (202,000) | |
Investment in affiliate | (117,166) | |
Net cash provided by (used in) investing activities | 200,000 | (319,166) |
FINANCING ACTIVITIES | ||
Payment to secured lender | (1,050,000) | |
Payment of related party note | (7,860) | |
Proceeds from stock subscriptions | 5,570,576 | 625,799 |
Net cash provided by financing activities | 4,512,716 | 625,799 |
Net increase (decrease) in cash | 1,298,002 | (1,996,825) |
Cash and cash equivalents, beginning of the period | 473,925 | 2,473,959 |
Cash and cash equivalents, end of the period | 1,771,927 | 477,134 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | ||
Cash paid for interest | 2,077 | 1,592 |
Supplemental Non-Cash Investing and Financing Information: | ||
Common stock issued to pay promissory notes | 266,272 | |
Common stock issued to pay related party payable | 113,714 | 3,523,462 |
Common stock issued to purchase subsidiary | $ 61,063 | $ 488,500 |
Common stock issued to purchase 10% interest in Caesar Media Group Inc. | $ | $ |
Common stock issued to purchase intellectual property | $ 435,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1– Basis of Presentation The accompanying unaudited condensed financial statements of Netcapital Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended January 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ended April 30, 2023. For further information, refer to the audited financial statements and footnotes thereto in our Annual Report on Form 10-K for the year ended April 30, 2022. In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If adopted early, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements. In November 2021, the Financial Accounting Standards Board (FASB) issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In December 2022, the Company purchased the website, intellectual property, source code and domain names of 1ON1.FANS and ONEONONE.FANS (the “Assets”). Pursuant to the guidance of Topic 805, it was determined that the purchase of the Assets did not meet the definition of a business and the asset purchase was accounted for as an asset acquisition. The fair value of the consideration, consisting of 300,000 shares of the Company’s common stock, valued at $435,000, was attributed to a single asset consisting of a website and intellectual property. Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
Concentrations
Concentrations | 9 Months Ended |
Jan. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 2 – Concentrations For the three and nine months ended January 31, 2023, the Company had one customer that constituted 0 39 35 15 35 15 33 28 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jan. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | Note 3 – Revenue Recognition Revenue Recognition under ASC 606 The Company recognizes service revenue from its consulting contracts, funding portal and game website using the five-step model as prescribed by ASC 606: ● Identification of the contract, or contracts, with a customer. ● Identification of the performance obligations in the contract. ● Determination of the transaction price. ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when or as the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which primarily are professional services, listing fees on our funding portal, and a portal fee of 4.9% of the money raised on the funding portal. The transaction price is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised services to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. The Company usually bills its customers before it provides any services and begins performing services after the first payment is received. Contracts are typically one year or less. For larger contracts, in addition to the initial payment, the Company may allow for progress payments throughout the term of the contract. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company enters into contracts with customers that regularly include promises to transfer multiple services, such as digital marketing, web-based videos, offering statements, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices (SSP) of each performance obligation. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company’s game website is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Professional services revenue is recognized over time as the services are rendered. 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 based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded as operating expenses against the contract assets. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services. Contract assets are included in other current assets in the consolidated balance sheets and will be recognized during the succeeding twelve-month period. Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and are recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding twelve-month period are recorded as current deferred revenues in the consolidated balance sheets, with the remainder recorded as other non-current liabilities in the consolidated balance sheets. 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 as other current or non-current assets and amortized on a straight-line basis over the life of the contract, which approximates the benefit period. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. All sales commissions are recorded as consulting fees within the Company’s consolidated statement of operations. Remaining Performance Obligations The Company’s subscription terms are typically less than one year. All of the Company’s revenues in the three and nine months ended January 31, 2023, which amounted to $ 2,260,414 5,379,960 718 2,532 Disaggregation of Revenue Revenue is from U.S.-based companies with no notable geographical concentrations in any area. A distinction exists in revenue source; revenues are either generated online or from consulting services. Revenues disaggregated by revenue source consist of the following: Schedule of revenue Three Months Ended Jan. 31, 2023 Three Months Ended Jan. 31, 2022 Nine Months Ended Jan. 31, 2023 Nine Months Ended Oct. 31, 2022 Consulting services $ 2,028,260 $ 1,389,200 $ 4,784,650 $ 2,395,395 Fees from online services 232,154 421,841 595,310 1,240,655 Total revenues $ 2,260,414 $ 1,811,041 $ 5,379,960 $ 3,636,050 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 4 – Earnings Per Common Share Net income per common and diluted share were calculated as follows for the three- and nine-month periods ended January 31, 2023 and 2022: Schedule of earnings per share Three Months Ended January 31, 2023 Three Months Ended January 31, 2022 Nine Months Ended January 31, 2023 Nine Months Ended January 31, 2022 Net income attributable to common stockholders – basic $ 1,696,499 $ 1,821,006 $ 1,944,114 $ 3,004,260 Adjustments to net income — — — — Net income attributable to common stockholders – diluted $ 1,696,499 $ 1,821,006 $ 1,944,114 $ 3,004,260 Weighted average common shares outstanding - basic 5,166,299 2,842,924 4,208,216 2,589,142 Effect of dilutive securities 250 39,901 250 39,901 Weighted average common shares outstanding – diluted 5,166,549 2,882,825 4,208,466 2,629,043 Earnings per common share - basic $ 0.33 $ 0.64 $ 0.46 $ 1.16 Earnings per common share - diluted $ 0.33 $ 0.63 $ 0.46 $ 1.14 250 shares of common stock that are issuable pursuant to stock subscription agreements are included in the calculation of diluted earnings per share for the three and nine months ended January 31, 2023. 39,901 shares that were issuable to satisfy a supplemental consideration liability were included for the calculation of diluted earnings per share for the three and nine months ended January 31, 2022 Outstanding warrants to purchase 1,541,682 shares of common stock are not included in the calculation of earnings per share for the three and nine months ended January 31, 2023 because their effect is anti-dilutive. Outstanding options to purchase 1,852,000 shares of common stock are not included in the calculation of earnings per share for the three and nine months ended January 31, 2023, respectively, because their effect is anti-dilutive. |
Principal Financing Arrangement
Principal Financing Arrangements | 9 Months Ended |
Jan. 31, 2023 | |
Principal Financing Arrangements | |
Principal Financing Arrangements | Note 5 – Principal Financing Arrangements The following table summarizes components debt as of January 31, 2023 and April 30, 2022: Schedule of debt January 31, April 30, 2022 Interest Rate Secured lender $ 350,000 $ 1,400,000 8.0 % Notes payable – related parties 15,000 22,860 0.0 % Convertible promissory notes — 300,000 8.0 % U.S. SBA loan 500,000 500,000 3.75 % U.S. SBA loan 1,885,800 1,885,800 1.0 % Loan payable – bank 34,324 34,324 7.50 % Total Debt 2,785,124 4,142,984 Less: current portion of long-term debt 2,285,124 3,647,911 Total long-term debt $ 500,000 $ 495,073 As of January 31, 2023 and April 30, 2022, the Company owed its principal lender (“Lender”) $350,000 and $1,400,000, respectively, under an amended loan and security agreement (“Loan”) dated July 26, 2014 and amended several times thereafter so that the maturity date is now April 30, 2023. In connection with the financing, the Company has agreed to certain restrictive covenants, including, among others, that the Company may not convey, sell, lease, transfer or otherwise dispose of any part of its business or property, except as permitted in the agreement, dissolve, liquidate or merge with any other party unless, in the case of a merger, the Company is the surviving entity, incur any indebtedness except as defined in the agreement, create or allow a lien on any of its assets or collateral that has been pledged to the Lender, make any loans to any person, except for prepaid items or deposits incurred in the ordinary course of business, or make any material capital expenditures. To secure the payment of all obligations to the Lender, the Company granted the Lender a continuing security interest and first lien on all of the assets of the Company. As of January 31, 2023 and April 30, 2022, the Company’s related-party unsecured notes payable totaled $15,000 and $22,860, respectively. As of January 31, 2023 and April 30, 2022, the company owed $0 and $300,000 in convertible notes payable. On July 14, 2022, the Company issued 93,432 shares of common stock valued at $266,272 to retire the $300,000 in convertible promissory notes plus accrued interest of $10,192. The Company owes $34,324 as of January 31, 2023 and April 30, 2022 to Chase Bank. The Company pays interest expense to Chase Bank, which is calculated at a rate of 7.50% per annum. On May 6, 2020, the Company borrowed $1,885,800 (the “May Loan”), on June 17, 2020 the Company borrowed $500,000 (the “June Loan”), and on February 2, 2021, the Company borrowed $1,885,800 (the “February Loan”) from a U.S. Small Business Administration (“SBA”) loan program. The May loan bore interest at a rate of 1% per annum and was forgiven in its entirety, including accrued interest of $18,502. As a result, the Company recognized debt forgiveness of $1,904,296 in the three and nine months ended January 31, 2022. The June Loan required installment payments of $2,594 monthly, beginning on June 17, 2021, over a term of thirty years. However, the SBA postponed the first installment payment for 18 months, and the first payment became due on December 17, 2022. The monthly payments of $2,594 are first applied to accrued interest payable. The monthly payments will not be applied to any of the outstanding principal balance until August of 2026. Consequently, the entire loan balance of $500,000 is classified as a long term liability. Interest accrues at a rate of 3.75% per annum. The Company agreed to grant a continuing security interest in its assets to secure payment and performance of all debts, liabilities, and obligations to the SBA. The June Loan was personally guaranteed by the Company’s Chief Financial Officer. The February loan bears interest at a rate of 1% per annum and the due date of the first payment has been postponed by the SBA because the Company has applied for forgiveness of the February Loan. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes As of January 31, 2023 and April 30, 2022, the Company had net operating loss carryforwards for Federal income tax purposes of approximately $ 925,000 1,108,000 For the three- and nine-month periods ended January 31, 2023, the Company recorded income tax expense of $697,000 and $499,000, respectively. For the three- and nine-month periods ended January 31, 2022, the Company recorded an income tax benefit of $73,000 and an income tax expense of $548,000, respectively. As of January 31, 2023 and April 30, 2022, the Company had deferred tax assets calculated at an expected federal rate of 21 9 Schedule of income taxes January 31, 2023 April 30, 2022 Deferred tax assets, net: Net operating loss carryforwards $ 207,000 $ 322,000 Bad debt allowance 40,000 40,000 Stock-based compensation 394,000 357,000 Deferred tax assets 641,000 719,000 Deferred tax liability Unrealized gain 2,117,000 1,696,000 Net deferred tax liability $ (1,476,000 ) $ (977,000 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions The Company’s largest shareholder, Netcapital Systems LLC (“Systems”), owns 1,711,261 shares of common stock, or 28% of the Company’s 6,071,777 outstanding shares as of January 31, 2023. As of April 30, 2022, the Company accrued a payable to Systems of $294,054 for supplemental consideration owed in conjunction with its purchase of Netcapital Funding Portal Inc., which was paid in full on July 14, 2022, with the issuance to Systems of 39,901 shares of the Company’s common stock. The Company provided professional services to Systems in the three and nine months ended January 31, 2023 and recorded revenue of $4,660 for those services. In total, the Company owed Systems $0 and $294,054 as of January 31, 2023 and April 30, 2022, respectively. The company paid Systems $100,000 and $300,000 in the three and nine months ended January 31, 2023, respectively, and $100,000 and $257,429 in the three and nine months ended January 31, 2022, respectively, for use of the software that runs the website www.netcapital.com. The Chief Executive Officer of our wholly owned subsidiary, Netcapital Advisors Inc., is a member of the board of directors of KingsCrowd Inc. The Company sold 606,060 shares of KingsCrowd in June 2022 for proceeds of $200,000 and recorded a realized loss on the sale of the investment of $406,060. As of January 31, 2023 and April 30, 2022, the Company owned 3,209,685 and 3,815,745 shares of KingsCrowd Inc., valued at $3,209,685 and $3,815,745, respectively. The Chief Executive Officer of our wholly owned subsidiary, Netcapital Advisors Inc. is a member of the board of directors of Deuce Drone LLC. As of January 31, 2023 and April 30, 2022, the Company owns 2,350,000 membership interest units of Deuce Drone LLC., valued at $2,350,000. The Company has notes receivable aggregating $152,000 from Deuce Drone LLC as of January 31, 2023 and April 30, 2022. Compensation to officers in the three- and nine-month periods ended January 31, 2023 consisted of stock-based compensation valued at $32,382 and $44,464, respectively, and cash salary of $141,769 and $391,384, respectively. Compensation to officers in the three- and nine-month periods ended January 31, 2022 consisted of stock-based compensation valued at $89,436 and $190,763, respectively, and cash salary of $73,688 and $217,688, respectively. During the three- and nine-month periods ended January 31, 2023, we paid $0 and $12,019 to a related party to retire a note payable of $3,200 and expenses payable of $8,819. Compensation to a related party consultant in the three- and nine-month periods ended January 31, 2023 and 2022 consisted of cash wages of $15,000 and $45,000, respectively, and stock-based compensation of $0 and $25,908 for the three and nine months ended January 31, 2022, respectively. This consultant is also the controlling shareholder of Zelgor Inc. and $16,500 and $44,000 of the Company’s revenues in the three and nine months ended January 31, 2023 were from Zelgor Inc. As of January 31, 2023 and April 30, 2022, the Company owned 1,400,000 shares which are valued at $1,400,000. As of January 31, 2023 and April 30, 2022, the Company has invested $240,080 in an affiliate, 6A Aviation Alaska Consortium, Inc., in conjunction with a land lease in an airport in Alaska. The Chief Executive Officer of our wholly owned subsidiary, Netcapital Advisors Inc., is also the Chief Executive Officer of 6A Aviation Alaska Consortium, Inc. We owe Steven Geary, a director, $31,680 as of January 31, 2023 and April 30, 2022. This obligation is not interest bearing. $16,680 is recorded as a related party trade accounts payable and $15,000 as a related party note payable. We have no signed agreements for the indebtedness to Mr. Geary. In January 2023 we granted stock options to purchase an aggregate of 1,600,000 shares of our common stock to four related parties as follows: Our Chief Executive Officer, 1,000,000 shares; our Chief Financial Officer, 200,000 shares; our Founder, 200,000 shares; and a director of one of our subsidiaries, 200,000 shares. The options have an exercise price of $1.43, vest monthly on a straight-line basis over a 4-year period and expire in 10 years. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 8 – Stockholders’ Equity The Company is authorized to issue 900,000,000 001 6,071,777 2,934,344 On January 27, 2022, the Company filed a Form S-8 registration statement for securities to be offered in employee benefit plans, to register 300,000 shares of common stock from the Company’s 2021 Equity Incentive Plan. On February 2, 2022, the Company granted an aggregate of 272,000 options to purchase shares of common stock of the company at a price of $10.50 per share. The options were granted to employees, consultants, and members of the board of directors. The options vest monthly on a straight-line basis over a 4-year period and expire in 10 years. As of January 31, 2023 and April 30, 2022, 252,000 and 271,000 options, respectively, were outstanding. During the quarter ended July 31, 2022, the Company issued 39,901 shares of common stock with a value of $113,714 to settle a related party payable of $294,054. The Company also issued 93,432 shares of common stock valued at $266,272 to retire $300,000 of convertible promissory notes plus accrued interest of $10,192. The convertible note holders also received warrants to purchase shares of common stock at a per share exercise price of $5.19, that are exercisable immediately, and expire five years from the date of issuance. These equity issuances resulted in a gain from the conversion of debt totaling $224,260, which is recorded as other income in the income statement. On July 15, 2022, the Company completed an underwritten public offering of 1,205,000 shares of the Company’s common stock and warrants to purchase 1,205,000 shares of the Company’s common stock at a combined public offering price of $4.15 per share and warrant. The gross proceeds from the offering were $5,000,750 prior to deducting underwriting discounts, commissions, and other offering expenses, which resulted in net proceeds of $3,949,117. The warrants have a per share exercise price of $5.19, are exercisable immediately, and expire five years from the date of issuance. In addition, the Company granted the underwriter a 45-day option to purchase up to an additional 180,750 shares of common stock and/or up to 180,750 additional warrants to cover over-allotments, if any. In connection with the closing of the offering, the underwriter partially exercised its over-allotment option and purchased an additional 111,300 warrants, and the Company issued an aggregate of warrants to purchase 60,250 shares of our common stock to the underwriter and its designees. On December 16, 2022 the Company completed an underwritten public offering of 1,247,000 shares of the Company’s common stock, at a price to the public of $1.40 per share. Pursuant to the terms of an underwriting agreement, the Company also granted the underwriters a 45-day option to purchase up to an additional 187,000 shares of common stock solely to cover over-allotments, at the same price per share of $1.40, less the underwriting discounts and commissions. In conjunction with this offering, the Company issued the underwriter and its designees warrants to purchase 62,350 shares of our common stock at an exercise price of $1.75. The underwriters exercised their over-allotment option and on January 5, 2023, the Company issued an additional 187,000 shares of its common stock. The Company received net proceeds of $1,621,459 for the issuance of a total of 1,434,000 shares of common stock for both the initial and over-allotment offering. In conjunction with the exercise of the over-allotment, the Company issued the underwriter and its designees warrants to purchase 9,350 shares of our common stock with an exercise price of $1.75. The Securities were offered, issued and sold to the public pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-267921) previously filed with the Securities and Exchange Commission (the “Commission”) on October 18, 2022 and declared effective by the Commission on October 26, 2022 and related prospectus supplements dated December 13, 2022, as amended on December 16, 2022. The following tables summarize information about warrants outstanding as of January 31, 2023 and April 30, 2022: Schedule of warrants outstanding Warrants Outstanding Warrants Exercisable Weighted- Average Weighted- Weighted- Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2022 — — — $ — — $ — As of January 31, 2023 $1.75 - $5.19 1,541,682 4.49 $ 5.03 1,469,982 $ 5.19 Schedule of warrants activity Number of Exercise Price Average Outstanding May 1, 2021 — — $ — Issued during year ended April 30, 2022 — — $ — Exercised/canceled during year ended April 30, 2022 — — $ — Outstanding April 30, 2022 — — $ — Issued during nine months ended January 31, 2023 1,541,682 $ 1.75 5.19 $ 5.03 Exercised/canceled during nine months ended January 31, 2023 — — $ — Warrants outstanding January 31, 2023 1,541,682 $ $ 1.75 5.19 $ 5.03 Warrants exercisable, January 31, 2023 1,469,982 $ 5.19 $ 5.19 As a result of the two offerings, the company has warrants outstanding, with a five-year term, to purchase a total of 1,469,982 shares of its common stock at an exercise price of $5.19 and 71,700 shares of its common stock at an exercise price of $1.75. The warrants issued to the underwriter’s representatives and to the underwriter were not part of a unit, consisting of one share of common stock and one warrant and are valued based upon unadjusted quoted prices on the Nasdaq market. The value of the 60,250 representatives’ warrants amounted to $26,510 and the value of the 111,300 underwriter’s warrants amounted to $48,972. The value of the warrants is not an addition to capital in excess of par value because the value of the warrants is also an offsetting offering cost. During the quarter ended October 31, 2022, the Company issued 37,500 shares of common stock, valued at $366,375, in conjunction with the purchase of a 10% equity stake in Caesar Media Group, Inc. The Company also issued 2,600 shares of common stock in conjunction with a stock subscription agreement with accredited investors, valued at $23,400. During the quarter ended January 31, 2023, in addition to the public offering, the Company issued 18,750 shares of common stock, valued at $171,124, in conjunction with the purchase of a 10% equity stake in Caesar Media Group, Inc., 300,000 shares of common stock, valued at $435,000 to purchase the website and intellectual property of a real-time video conferencing website, and 6,250 shares of common stock in conjunction with an acquisition agreement that requires shares to be issued by the Company. As a result of this issuance, the value of the account for Shares to be issued decreased by $61,063 to $183,187 as of January 31, 2023, from a balance of $244,250 as of April 30, 2022. On January 5, 2023, the Company filed a Current Report on Form 8-K and announced the formation of the Netcapital Inc. 2023 Omnibus Equity Incentive Plan (the “Plan”). The purposes of the Plan are to (i) provide an additional incentive to selected employees, directors, and independent contractors of the Company or its affiliates whose contributions are essential to the growth and success of the Company, (ii) strengthen the commitment of such individuals to the Company and its affiliates, (iii) motivate those individuals to faithfully and diligently perform their responsibilities and (iv) attract and retain competent and dedicated individuals whose efforts will result in the long-term growth and profitability of the Company. In conjunction with these purposes, the Company granted stock options to four individuals to purchase an aggregate of 1,600,000 of our common stock at a price of $1.43 per share. See Note 7. The options vest monthly on a straight-line basis over a 4-year period and expire in 10 years. As of January 31, 2023 options to purchase 1,600,000 shares of common stock were outstanding under the Plan. The stock options are subject to stockholder approval, and the Company has called a special meeting of stockholders on March 28, 2023 to approve the adoption of the Plan. |
Fair Value
Fair Value | 9 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 9 – Fair Value The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. ● Level 2: inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3: inputs are unobservable inputs for the asset or liability. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, we base fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data and, therefore, are based primarily upon management’s own estimates, are often calculated based on current pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other such factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Jan. 31, 2023 | |
Stock-based Compensation Plans | |
Stock-Based Compensation Plans | Note 10 – Stock-Based Compensation Plans In addition to cash payments, the Company enters agreements to issue common stock and records the applicable non-cash expense in accordance with the authoritative guidance of the Financial Accounting Standards Board. For the three and nine months ended January 31, 2023, stock-based compensation expense amounted to $ 63,057 128,963 For the three and nine months ended January 31, 2022, stock-based compensation expense amounted to $ 653,975 1,137,042 The table below presents the components of compensation expense for the issuance of shares of common stock and stock options to employees and consultants for the three- and nine-month periods ended January 31, 2023 and 2022. Schedule of stock based compensation expense Stock-based compensation expense Three Months Ended Jan. 31, 2023 Three Months Ended Jan. 31, 2022 Nine Months Ended Jan. 31, 2023 Nine Months Ended Jan. 31, 2022 Chief Executive Officer $ 20,023 $ — $ 22,440 $ 40,608 Chief Financial Officer 6,179 — 11,012 40,608 Chief Marketing Officer — 89,436 — 109,547 Related party consultant — — — 25,908 VP of Digital Strategy — 1,586 — 5,603 Marketing consultant — 37,052 — 111,156 Marketing consultant — 125,901 — 377,704 Employee and consultant options 36,855 — 95,511 — Member of board of directors — 100,000 — 100,000 Business consultant — 300,000 — 300,000 Business consultant — — — 25,908 Total stock-based compensation expense $ 63,057 $ 653,975 $ 128,963 $ 1,137,042 The following tables summarize information about stock options outstanding as of January 31, 2023 and April 30, 2022: Schedule of stock option outstanding Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2022 $10.50 - $10.50 271,000 9.79 $ 10.50 16,945 $ 10.50 As of January 31, 2023 $1.43 - $10.50 1,852,000 9.81 $ 2.66 91,083 $ 7.18 Schedule of stock options activity Number of Exercise Price Average Outstanding May 1, 2021 — — $ — Issued during year ended April 30, 2022 272,000 $ 10.50 $ 10.50 Exercised/canceled during year ended April 30, 2022 (1,000 ) $ 10.50 $ 10.50 Outstanding April 30, 2022 271,000 $ 10.50 $ 10.50 Issued during nine months ended January 31, 2023 1,600,000 $ 1.43 $ 1.43 Exercised/canceled during nine months ended January 31, 2023 (19,000 ) $ 1.43 10.50 $ 10.50 Options outstanding January 31, 2023 1,852,000 $ 1.43 10.50 $ 2.66 Options exercisable, January 31, 2023 91,083 $ 1.43 10.50 $ 7.18 |
Deposits and Commitments
Deposits and Commitments | 9 Months Ended |
Jan. 31, 2023 | |
Deposits And Commitments | |
Deposits and Commitments | Note 11 – Deposits and Commitments We utilize an office at 1 Lincoln Street in Boston, Massachusetts. We currently pay a membership fee of approximately $5,700 a month, under a virtual office agreement that expires in September 2023 and includes a deposit of $6,300. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 12 – Intangible Assets Intangible assets with defined useful lives are generally measured at cost less straight-line amortization. The useful life is determined using the period of the underlying contract or the period of time over which the intangible asset can be expected to be used. Impairments are recognized if the recoverable amount of the asset is lower than the carrying amount. The recoverable amount is the higher of either the fair value less costs to sell or the value in use. The value in use is determined on the basis of future cash inflows and outflows, and the weighted average cost of capital. Intangible assets with indefinite useful lives, such as trade names and trademarks, that have been acquired as part of acquisitions are measured at cost and tested for impairment annually, or if there is an indication that their value has declined. In December 2022, the Company purchased the website, intellectual property, source code and domain names of 1ON1.FANS and ONEONONE.FANS (the “Assets”). Pursuant to the guidance of Topic 805, it was determined that the purchase of the Assets did not meet the definition of a business and the asset purchase was accounted for as an asset acquisition. The fair value of the consideration, consisting of 300,000 shares of the Company’s common stock, valued at $435,000, was attributed to a single asset and is classified as acquired intellectual property and website. The following table sets forth the major categories of the intangible assets as of January 31, 2023 and April 30, 2022 Schedule of intangible assets January 31, 2023 April 30, 2022 Acquired users $ 14,288,695 $ 14,288,695 Acquired brand 583,429 583,429 Acquired intellectual property and website 435,000 — Professional practice 556,830 556,830 Literary works and contracts 107,750 107,750 Total intangible assets $ 15,971,704 $ 15,536,704 As of January 31, 2023, the weighted average remaining useful life for technology, trade names, professional practice, literary works and domains is 14.3 68,076 |
Investments
Investments | 9 Months Ended |
Jan. 31, 2023 | |
Investments | |
Investments | Note 13 – Investments In January 2023, the Company received 2,100,000 units of Dark LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $1.00 per unit based on a sales price of $1.00 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $2,100,000. As of January 31, 2023, the Company owned 2,100,000 units which are valued at $2,100,000. In August 2022, the Company received 1,911,765 units of NetWire LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.68 per unit based on a sales price of $0.68 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,300,000. As of January 31, 2023, the Company owned 1,911,765 units which are valued at $1,300,000. In May 2022, the Company received 1,764,706 units of Reper LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.68 per unit based on a sales price of $0.68 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,200,000. As of January 31, 2023, the Company owned 1,764,706 units which are valued at $1,200,000. In April 2022, the Company received 3,000,000 units of Cust Corp. as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.40 per unit based on a sales price of $0.40 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,200,000. As of January 31, 2023 and April 30, 2022, the Company owned 3,000,000 units which are valued at $1,200,000. In January 2022, the Company received 1,700,000 units of ScanHash LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied $425,000 of an accounts receivable balance. As of January 31, 2023 and April 30, 2022, the Company owned 1,700,000 units which are valued at $425,000. In January 2022, the Company received 2,850,000 units of Hiveskill LLC as payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $712,500. As of January 31, 2023 and April 30, 2022, the Company owned 2,850,000 units which are valued at $712,500. In fiscal 2022, the Company purchased a 10% interest, or 400 shares of common stock, in Caesar Media Group Inc. (“Caesar”) for an initial purchase price of 50,000 shares of the Company’s common stock, valued at $500,000. Caesar is a marketing and technology solutions provider. The purchase agreement includes additional contractual requirements for the Company and Caesar, including the issuance of an additional 150,000 shares of common stock of the Company over a two-year period. The Company issued 37,500 shares of its common stock in April 2022, 25,000 shares of its common stock in September 2022, 12,500 shares of its common stock in October 2022, and 18,750 shares of its common stock in January 2023, as part of its contractual payment obligations. As of January 31, 2023 and April 30, 2022, there have been no observable price changes in the value of Caesar's common stock and the Company has valued its ownership in Caesar at cost, which is $1,437,500 as of January 31, 2023. In May 2020, the Company entered a consulting contract with Watch Party LLC (“WP”), which allowed the Company to receive 110,000 membership interest units of WP in return for services rendered in conjunction with a crowdfunding offering. The Company earned 97,500 membership interest units in the quarter ended July 31, 2020. The WP units are valued at $4 per unit based on a sales price of $4 per unit on an online funding portal. As of January 31, 2023 and April 30, 2022, the Company owned 110,000 WP units, which are valued at $440,000 and $235,400, respectively. The $204,600 increase in value of the WP units owned by the Company is recorded as an unrealized gain in the three- and nine-month periods ended January 31, 2023. In May 2020, the Company entered a consulting contract with ChipBrain LLC (“Chip”), which allowed the Company to receive 710,200 membership interest units of Chip in return for services rendered in conjunction with a crowdfunding offering. The Chip units were initially valued at $0.93 per unit based on a sales price of $0.93 per unit on an online funding portal. Subsequently, Chip sold identical units for $4.74 per unit, and as of January 31, 2023 and April 30, 2022, the 710,200 units owned by the Company are valued at $3,366,348 and $1,704,480, respectively. The $1,661,868 increase in value of the Chip units owned by the Company is recorded as an unrealized gain in the three- and nine-month periods ended January 31, 2023. In May 2020, the Company entered a consulting contract with a related party, Zelgor Inc. (“Zelgor”), which allowed the Company to receive 1,400,000 shares of common stock of Zelgor in return for services rendered in conjunction with a crowdfunding offering. The Zelgor shares are valued at $1.00 per share based on a sales price of $1.00 per share on an online funding portal. As of January 31, 2023 and April 30, 2022, the Company owned 1,400,000 shares which are valued at $1,400,000. On January 2, 2020, the Company entered a consulting contract with Deuce Drone LLC (“Drone”), which allowed the Company to receive 2,350,000 membership interest units of Drone in return for services rendered in conjunction with a crowdfunding offering. The Drone units were originally valued at $0.35 per unit based on a sales price of $0.35 per unit when the units were earned, or $822,500. Drone subsequently sold identical Drone units for $1.00 per unit on an online funding portal and as of January 31, 2023 and April 30, 2022, the units owned by the Company are valued at $2,350,000. In August 2019, the Company entered a consulting contract with KingsCrowd LLC (“KingsCrowd”), which allowed the Company to receive 300,000 membership interest units of KingsCrowd in return for services rendered in conjunction with a crowdfunding offering. The KingsCrowd units were valued at $1.80 per unit based on a sales price of $1.80 per unit when the units were earned, or $540,000. In December 2020, KingsCrowd converted from a limited liability company to a corporation to facilitate raising capital under Regulation A. KingsCrowd filed a Form 1-A Offering Statement under the Securities Act of 1933 and is selling shares at $1.00 per share. In connection with the conversion to a corporation, each membership interest unit converted into 12.71915 shares of common stock. The Company sold 606,060 shares of KingsCrowd in June 2022 for proceeds of $200,000 and recorded a realized loss on the sale of the investment of $406,060. KingsCrowd filed a post qualification offering circular amendment on July 21, 2022 and continues to sell shares of stock to the public for $1.00 per share. As of January 31, 2023 and April 30, 2022, the Company owned 3,209,685 and 3,815,745 shares of KingsCrowd, valued at $3,209,685 and $3,815,745, respectively. During fiscal 2019, the Company entered a consulting contract with NetCapital Systems LLC (“NetCapital”), which allowed the Company to receive up to 1,000 membership interest units of NetCapital in return for consulting services. The Company earned all 1,000 Netcapital units but sold a portion of the units in fiscal 2020 at a sales price of $91.15 per unit. As of January 31, 2023 and April 30, 2022, the Company owned 528 Netcapital units, at a value of $48,128. In July 2020 the Company entered a consulting agreement with Vymedic, Inc. for a $40,000 fee over a 5-month period. Half the fee was payable in stock and half was payable in cash. As of January 31, 2023 and April 30, 2022, the Company owned 4,000 units, at a value of $11,032 and $20,000, respectively. Based upon recent sales of shares of common stock of Vymedic Inc., the per share value dropped from $5.00 per share to $2.758 per share, and the Company recorded an unrealized loss on equity securities of $0 and $8,968 for the three and nine months ended January 31, 2023, respectively. This unrealized loss of $8,968 is netted with the unrealized gains of $204,600 and $1,661,868 in the WP and Chip securities, respectively, and results in an unrealized gain in equity securities of $1,866,468 and $1,857,500 in the three- and nine-month periods ended January 31, 2023. In August 2020 the Company entered a consulting agreement with C-Reveal Therapeutics LLC (“CRT”). for a $120,000 fee over a 12-month period. $50,000 of the fee was payable in CRT units. As of January 31, 2023 and April 30, 2022, the Company owned 5,000 units, at a value of $50,000. The following table summarizes the components of investments as of January 31, 2023 and April 30, 2022: Schedule of investments Jan. 31, 2023 April 30, 2022 Netcapital Systems LLC $ 48,128 $ 48,128 Watch Party LLC 440,000 235,400 Zelgor Inc. 1,400,000 1,400,000 ChipBrain LLC 3,366,348 1,704,480 Vymedic Inc. 11,032 20,000 C-Reveal Therapeutics LLC 50,000 50,000 Deuce Drone LLC 2,350,000 2,350,000 Hiveskill LLC 712,500 712,500 ScanHash LLC 425,000 425,000 Caesars Media Group Inc. 1,437,500 900,000 Cust Corp. 1,200,000 1,200,000 Reper LLC 1,200,000 — Kingscrowd Inc. 3,209,685 3,815,745 Dark LLC 2,100,000 — Netwire LLC 1,300,000 — Total $ 19,250,193 $ 12,861,253 The above investments in equity securities are within the scope of ASC 321. The Company monitors the investments for any changes in observable prices from orderly transactions. All investments are initially measured at cost and evaluated for changes in estimated fair value. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events The Company evaluated subsequent events through the date these financial statements were available to be issued. There were no material subsequent events that required recognition or additional disclosure in these financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Revenue Recognition | |
Schedule of revenue | Schedule of revenue Three Months Ended Jan. 31, 2023 Three Months Ended Jan. 31, 2022 Nine Months Ended Jan. 31, 2023 Nine Months Ended Oct. 31, 2022 Consulting services $ 2,028,260 $ 1,389,200 $ 4,784,650 $ 2,395,395 Fees from online services 232,154 421,841 595,310 1,240,655 Total revenues $ 2,260,414 $ 1,811,041 $ 5,379,960 $ 3,636,050 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Schedule of earnings per share Three Months Ended January 31, 2023 Three Months Ended January 31, 2022 Nine Months Ended January 31, 2023 Nine Months Ended January 31, 2022 Net income attributable to common stockholders – basic $ 1,696,499 $ 1,821,006 $ 1,944,114 $ 3,004,260 Adjustments to net income — — — — Net income attributable to common stockholders – diluted $ 1,696,499 $ 1,821,006 $ 1,944,114 $ 3,004,260 Weighted average common shares outstanding - basic 5,166,299 2,842,924 4,208,216 2,589,142 Effect of dilutive securities 250 39,901 250 39,901 Weighted average common shares outstanding – diluted 5,166,549 2,882,825 4,208,466 2,629,043 Earnings per common share - basic $ 0.33 $ 0.64 $ 0.46 $ 1.16 Earnings per common share - diluted $ 0.33 $ 0.63 $ 0.46 $ 1.14 |
Principal Financing Arrangeme_2
Principal Financing Arrangements (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Principal Financing Arrangements | |
Schedule of debt | Schedule of debt January 31, April 30, 2022 Interest Rate Secured lender $ 350,000 $ 1,400,000 8.0 % Notes payable – related parties 15,000 22,860 0.0 % Convertible promissory notes — 300,000 8.0 % U.S. SBA loan 500,000 500,000 3.75 % U.S. SBA loan 1,885,800 1,885,800 1.0 % Loan payable – bank 34,324 34,324 7.50 % Total Debt 2,785,124 4,142,984 Less: current portion of long-term debt 2,285,124 3,647,911 Total long-term debt $ 500,000 $ 495,073 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes | Schedule of income taxes January 31, 2023 April 30, 2022 Deferred tax assets, net: Net operating loss carryforwards $ 207,000 $ 322,000 Bad debt allowance 40,000 40,000 Stock-based compensation 394,000 357,000 Deferred tax assets 641,000 719,000 Deferred tax liability Unrealized gain 2,117,000 1,696,000 Net deferred tax liability $ (1,476,000 ) $ (977,000 ) |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Schedule of warrants outstanding | Schedule of warrants outstanding Warrants Outstanding Warrants Exercisable Weighted- Average Weighted- Weighted- Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2022 — — — $ — — $ — As of January 31, 2023 $1.75 - $5.19 1,541,682 4.49 $ 5.03 1,469,982 $ 5.19 |
Schedule of warrants activity | Schedule of warrants activity Number of Exercise Price Average Outstanding May 1, 2021 — — $ — Issued during year ended April 30, 2022 — — $ — Exercised/canceled during year ended April 30, 2022 — — $ — Outstanding April 30, 2022 — — $ — Issued during nine months ended January 31, 2023 1,541,682 $ 1.75 5.19 $ 5.03 Exercised/canceled during nine months ended January 31, 2023 — — $ — Warrants outstanding January 31, 2023 1,541,682 $ $ 1.75 5.19 $ 5.03 Warrants exercisable, January 31, 2023 1,469,982 $ 5.19 $ 5.19 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Stock-based Compensation Plans | |
Schedule of stock based compensation expense | Schedule of stock based compensation expense Stock-based compensation expense Three Months Ended Jan. 31, 2023 Three Months Ended Jan. 31, 2022 Nine Months Ended Jan. 31, 2023 Nine Months Ended Jan. 31, 2022 Chief Executive Officer $ 20,023 $ — $ 22,440 $ 40,608 Chief Financial Officer 6,179 — 11,012 40,608 Chief Marketing Officer — 89,436 — 109,547 Related party consultant — — — 25,908 VP of Digital Strategy — 1,586 — 5,603 Marketing consultant — 37,052 — 111,156 Marketing consultant — 125,901 — 377,704 Employee and consultant options 36,855 — 95,511 — Member of board of directors — 100,000 — 100,000 Business consultant — 300,000 — 300,000 Business consultant — — — 25,908 Total stock-based compensation expense $ 63,057 $ 653,975 $ 128,963 $ 1,137,042 |
Schedule of stock option outstanding | Schedule of stock option outstanding Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Range of Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price As of April 30, 2022 $10.50 - $10.50 271,000 9.79 $ 10.50 16,945 $ 10.50 As of January 31, 2023 $1.43 - $10.50 1,852,000 9.81 $ 2.66 91,083 $ 7.18 |
Schedule of stock options activity | Schedule of stock options activity Number of Exercise Price Average Outstanding May 1, 2021 — — $ — Issued during year ended April 30, 2022 272,000 $ 10.50 $ 10.50 Exercised/canceled during year ended April 30, 2022 (1,000 ) $ 10.50 $ 10.50 Outstanding April 30, 2022 271,000 $ 10.50 $ 10.50 Issued during nine months ended January 31, 2023 1,600,000 $ 1.43 $ 1.43 Exercised/canceled during nine months ended January 31, 2023 (19,000 ) $ 1.43 10.50 $ 10.50 Options outstanding January 31, 2023 1,852,000 $ 1.43 10.50 $ 2.66 Options exercisable, January 31, 2023 91,083 $ 1.43 10.50 $ 7.18 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets January 31, 2023 April 30, 2022 Acquired users $ 14,288,695 $ 14,288,695 Acquired brand 583,429 583,429 Acquired intellectual property and website 435,000 — Professional practice 556,830 556,830 Literary works and contracts 107,750 107,750 Total intangible assets $ 15,971,704 $ 15,536,704 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jan. 31, 2023 | |
Investments | |
Schedule of investments | Schedule of investments Jan. 31, 2023 April 30, 2022 Netcapital Systems LLC $ 48,128 $ 48,128 Watch Party LLC 440,000 235,400 Zelgor Inc. 1,400,000 1,400,000 ChipBrain LLC 3,366,348 1,704,480 Vymedic Inc. 11,032 20,000 C-Reveal Therapeutics LLC 50,000 50,000 Deuce Drone LLC 2,350,000 2,350,000 Hiveskill LLC 712,500 712,500 ScanHash LLC 425,000 425,000 Caesars Media Group Inc. 1,437,500 900,000 Cust Corp. 1,200,000 1,200,000 Reper LLC 1,200,000 — Kingscrowd Inc. 3,209,685 3,815,745 Dark LLC 2,100,000 — Netwire LLC 1,300,000 — Total $ 19,250,193 $ 12,861,253 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
First Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 0% | 35% | 39% | 15% |
Second Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 35% | 33% | 15% | 28% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue Recognition | |||||
Consulting services | $ 2,028,260 | $ 1,389,200 | $ 4,784,650 | $ 2,395,395 | |
Fees from online services | 232,154 | 421,841 | 595,310 | 1,240,655 | |
Total revenues | $ 2,260,414 | $ 1,811,041 | $ 1,811,041 | $ 5,379,960 | $ 3,636,050 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2023 | Apr. 30, 2022 | |
Revenue Recognition | |||
Revenues, Net of Interest Expense | $ 2,260,414 | $ 5,379,960 | |
Deferred Revenue | $ 718 | $ 718 | $ 2,532 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders – basic | $ 1,696,499 | $ 1,821,006 | $ 1,944,114 | $ 3,004,260 |
Adjustments to net income | ||||
Net income attributable to common stockholders – diluted | $ 1,696,499 | $ 1,821,006 | $ 1,944,114 | $ 3,004,260 |
Weighted average common shares outstanding - basic | 5,166,299 | 2,842,924 | 4,208,216 | 2,589,142 |
Effect of dilutive securities | $ 250 | $ 39,901 | $ 250 | $ 39,901 |
Weighted average common shares outstanding – diluted | 5,166,549 | 2,882,825 | 4,208,466 | 2,629,043 |
Earnings per common share - basic | $ 0.33 | $ 0.64 | $ 0.46 | $ 1.16 |
Earnings per common share - diluted | $ 0.33 | $ 0.63 | $ 0.46 | $ 1.14 |
Principal Financing Arrangeme_3
Principal Financing Arrangements (Details) - USD ($) | Jan. 31, 2023 | Apr. 30, 2022 |
Debt Instrument [Line Items] | ||
Debt | $ 2,785,124 | $ 4,142,984 |
Less: current portion of long-term debt | 2,285,124 | 3,647,911 |
Long-term Debt | 500,000 | 495,073 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 350,000 | 1,400,000 |
Interest Rate | 8% | |
Notes Payable Related Parties [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 15,000 | 22,860 |
Interest Rate | 0% | |
Convertible Promissory Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 300,000 | |
Interest Rate | 8% | |
U.S. SBA loan | ||
Debt Instrument [Line Items] | ||
Debt | $ 500,000 | 500,000 |
Interest Rate | 3.75% | |
U S S B A Loan One [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 1,885,800 | 1,885,800 |
Interest Rate | 1% | |
Loan Payable Bank [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 34,324 | $ 34,324 |
Interest Rate | 7.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jan. 31, 2023 | Apr. 30, 2022 |
Deferred tax assets, net: | ||
Net operating loss carryforwards | $ 207,000 | $ 322,000 |
Bad debt allowance | 40,000 | 40,000 |
Stock-based compensation | 394,000 | 357,000 |
Deferred tax assets | 641,000 | 719,000 |
Deferred tax liability | ||
Unrealized gain | 2,117,000 | 1,696,000 |
Net deferred tax liability | $ (1,476,000) | $ (977,000) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Apr. 30, 2022 | Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Operating Loss Carryforwards | $ 1,108,000 | $ 925,000 |
Expected federal rate | 21% | 21% |
State and local rate | 9% | 9% |
Schedule of warrants outstandin
Schedule of warrants outstanding (Details) - $ / shares | 9 Months Ended | |
Jan. 31, 2023 | Apr. 30, 2022 | |
Equity [Abstract] | ||
Number of warrants outstanding | 1,541,682 | |
Weighted average exercise price, Warrants Outstanding | $ 5.03 | |
Number of warrants exercisable | 1,469,982 | |
Weighted average exercise price, Warrants Exercisable | $ 5.19 | |
Weighted Average Remaining Contractual Life (Years) | 4 years 5 months 26 days |
Schedule of warrants activity (
Schedule of warrants activity (Details) - Warrant [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Apr. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares outstanding, beginning balance | ||
Exercise price per share, beginning balance | ||
Average Exercise price per share, beginning balance | ||
Number of shares outstanding, issued | 1,541,682 | |
Exercise price per share, issued | ||
Average Exercise price per share, issued | $ 5.03 | |
Number of shares outstanding, exercised/canceled | ||
Exercise price per share, exercised/cancled | ||
Average Exercise price per share, exercised/cancled | ||
Number of shares outstanding, ending balance | 1,541,682 | |
Average Exercise price per share, ending balance | 5.03 | |
Number of shares, exercisable | 1,469,982 | |
Exercise price per share exercisable | $ 5.19 | |
Average Exercise price per share, exercisable | 5.19 | |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, issued | $ 1.75 | |
Average Exercise price per share, ending balance | 1.75 | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, issued | $ 5.19 | |
Average Exercise price per share, ending balance | 5.19 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | Jan. 31, 2023 | Apr. 30, 2022 |
Equity [Abstract] | ||
Common stock, authorized | 900,000,000 | 900,000,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, issued | 6,071,777 | 2,934,344 |
Common stock, outstanding | 6,071,777 | 2,934,344 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | $ 63,057 | $ 653,975 | $ 128,963 | $ 1,137,042 |
Chief Executive Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 20,023 | 22,440 | 40,608 | |
Chief Financial Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 6,179 | 11,012 | 40,608 | |
Chief Marketing Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 89,436 | 109,547 | ||
Related Party Consultant [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 25,908 | |||
V P Of Digital Strategy [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 1,586 | 5,603 | ||
Marketing Consultant [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 37,052 | 111,156 | ||
Marketing Consultant One [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 125,901 | 377,704 | ||
Employee And Consultant Options [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 36,855 | 95,511 | ||
Member Of Board Of Directors [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 100,000 | 100,000 | ||
Business Consultant [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | 300,000 | 300,000 | ||
Business Consultant One [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Total stock-based compensation expense | $ 25,908 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Details 1) - $ / shares | 9 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Apr. 30, 2022 | |
Stock-based Compensation Plans | ||
Number of option outstanding | 1,852,000 | 271,000 |
Weighted Average Remaining Contractual Life (Years) | 9 months 24 days | 9 years 9 months 14 days |
Weighted average exercise price, Option Outstanding | $ 2.66 | $ 10.50 |
Number of option exercisable | 91,083 | 16,945 |
Weighted average exercise price, Option Exercisable | $ 7.18 | $ 10.50 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Details 2) - $ / shares | 9 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Apr. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares outstanding, beginning balance | 271,000 | |
Average Exercise price per share, beginning balance | $ 10.50 | |
Number of shares outstanding, ending balance | 1,852,000 | 271,000 |
Average Exercise price per share, ending balance | $ 2.66 | $ 10.50 |
Number of shares, exercisable | 91,083 | 16,945 |
Average Exercise price per share, exercisable | $ 7.18 | $ 10.50 |
Equity Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares outstanding, beginning balance | 271,000 | |
Exercise price per share, beginning balance | $ 10.50 | |
Average Exercise price per share, beginning balance | $ 10.50 | |
Number of shares outstanding, issued | 1,600,000 | 272,000 |
Exercise price per share, issued | $ 1.43 | $ 10.50 |
Average Exercise price per share, issued | $ 1.43 | $ 10.50 |
Number of shares outstanding, exercised/canceled | (19,000) | (1,000) |
Exercise price per share, exercised/cancled | $ 10.50 | |
Average Exercise price per share, exercised/cancled | $ 10.50 | $ 10.50 |
Number of shares outstanding, ending balance | 1,852,000 | 271,000 |
Exercise price per share, ending balance | $ 10.50 | |
Average Exercise price per share, ending balance | $ 2.66 | $ 10.50 |
Number of shares, exercisable | 91,083 | |
Average Exercise price per share, exercisable | $ 7.18 | |
Equity Option [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, exercised/cancled | 1.43 | |
Exercise price per share, ending balance | 1.43 | |
Exercise price per share exercisable | 1.43 | |
Equity Option [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Exercise price per share, exercised/cancled | 10.50 | |
Exercise price per share, ending balance | 10.50 | |
Exercise price per share exercisable | $ 10.50 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Stock-based Compensation Plans | ||||
Stock-based compensation | $ 63,057 | $ 653,975 | $ 128,963 | $ 1,137,042 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jan. 31, 2023 | Apr. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 15,971,704 | $ 15,536,704 |
Acquired Users [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 14,288,695 | 14,288,695 |
Acquired Brand [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 583,429 | 583,429 |
Acquired Intellectual Property And Website [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 435,000 | |
Professional Practice [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 556,830 | 556,830 |
Literary Works And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 107,750 | $ 107,750 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 9 Months Ended |
Jan. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Weighted average remaining useful life | 14 years 3 months 18 days |
Accumulated amortization | $ 68,076 |
Investments (Details)
Investments (Details) - USD ($) | Jan. 31, 2023 | Apr. 30, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | $ 19,250,193 | $ 12,861,253 |
Netcapital Systems L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 48,128 | 48,128 |
Watch Party L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 440,000 | 235,400 |
Zelgor [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 1,400,000 | 1,400,000 |
Chip Brain L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 3,366,348 | 1,704,480 |
Vymedic [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 11,032 | 20,000 |
C Reveal [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 50,000 | 50,000 |
Deuce Drone L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 2,350,000 | 2,350,000 |
Hiveskill L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 712,500 | 712,500 |
Scan Hash L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 425,000 | 425,000 |
Ceasar Media Group Inc [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 1,437,500 | 900,000 |
Cust Corp [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 1,200,000 | 1,200,000 |
Reper [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 1,200,000 | |
Kingscrowd Inc [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 3,209,685 | 3,815,745 |
Dark L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | 2,100,000 | |
Netwire L L C [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investment Owned, at Cost | $ 1,300,000 |