Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2020 | Sep. 18, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Force Protection Video Equipment Corp. | |
Entity Central Index Key | 0001518720 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | No | |
Document Period End Date | Jul. 31, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 841,184,289 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2020 | Apr. 30, 2020 |
Current Assets | ||
Cash | $ 724 | $ 2,505 |
Accounts receivable | 2,000 | 2,116 |
Total Current Assets | 2,724 | 4,621 |
Total Assets | 2,724 | 4,621 |
Current Liabilities | ||
Accounts payable and accrued expenses | 252,790 | 237,233 |
Related party advance | 11,350 | 12,150 |
Note payable | 27,500 | 27,500 |
Convertible notes payable | 499,611 | 463,561 |
Total Current Liabilities | 791,251 | 740,444 |
Commitments and Contingencies (Note 4) | 0 | 0 |
Series A, Redeemable Preferred Stock - Related Party - $0.0001 par value, 20,000,000 shares authorized 5,000,000 shares issued and outstanding, respectively | 5,000 | 5,000 |
Stockholders' Deficit | ||
Common stock, $0.0001 par value, 20,000,000,000 shares authorized 841,184,289 shares issued and outstanding, respectively | 84,119 | 84,119 |
Additional paid-in capital | 3,780,562 | 3,780,562 |
Accumulated deficit | (4,658,208) | (4,605,504) |
Total Stockholders' Deficit | (793,527) | (740,823) |
Liabilities and Stockholders' Deficit | $ 2,724 | $ 4,621 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2020 | Apr. 30, 2020 |
Common stock, shares par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 |
Common stock, shares issued | 841,184,289 | 841,184,289 |
Common stock, shares outstanding | 841,184,289 | 841,184,289 |
Series A Preferred Stock [Member] | ||
Preferred Stock, shares per value | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | 5,000,000 | 5,000,000 |
Preferred Stock, shares outstanding | 5,000,000 | 5,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Consolidated Statements of Operations (Unaudited) | ||
Revenues | $ 4,608 | $ 25,148 |
Cost of revenues | 2,726 | 13,420 |
Gross profit | 1,882 | 11,728 |
General and administrative expenses | 25,489 | 11,932 |
Loss from operations | (23,607) | (204) |
Other income (expense) - net | ||
Interest expense | (29,097) | (7,272) |
Impairment of property and equipment | 0 | (6,274) |
Gain on lease termination | 0 | 603 |
Total other income (expense) - net | (29,097) | (12,943) |
Net loss | $ (52,704) | $ (13,147) |
Loss per share - basic and diluted | $ 0 | $ 0 |
Weighted average number of shares - basic and diluted | 841,184,289 | 841,184,289 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Deficit (Unaudited) - USD ($) | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Common Stock [Member] |
Balance, shares at Apr. 30, 2019 | 841,184,289 | |||
Balance, amount at Apr. 30, 2019 | $ (727,129) | $ 3,762,039 | $ (4,573,287) | $ 84,119 |
Forgiveness of accrued payroll - related party | 18,523 | 18,523 | 0 | 0 |
Net loss - three months ended July 31, 2019 | (13,147) | 0 | (13,147) | $ 0 |
Balance, shares at Jul. 31, 2019 | 841,184,289 | |||
Balance, amount at Jul. 31, 2019 | (721,753) | 3,780,562 | (4,586,434) | $ 84,119 |
Balance, shares at Apr. 30, 2020 | 841,184,289 | |||
Balance, amount at Apr. 30, 2020 | (740,823) | 3,780,562 | (4,605,504) | $ 84,119 |
Net loss - three months ended July 31, 2019 | (52,704) | 0 | (52,704) | $ 0 |
Balance, shares at Jul. 31, 2020 | 841,184,289 | |||
Balance, amount at Jul. 31, 2020 | $ (793,527) | $ 3,780,562 | $ (4,658,208) | $ 84,119 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Operating activities | ||
Net loss | $ (52,704) | $ (13,147) |
Adjustments to reconcile net loss to net cash provided by (used in) operations | ||
Bad debt | 756 | 343 |
Recognition of prepaid interest expense | 0 | 10,234 |
Impairment of property and equipment | 0 | 6,274 |
Gain on ROU lease liability termination | 0 | (603) |
(Increase) decrease in | ||
Accounts receivable | (640) | 194 |
Deposits and other assets | 0 | 1,650 |
Accounts payable and accrued expenses | 15,557 | (352) |
Deferred software maintenance revenue | 0 | (1,270) |
Warranty | 0 | (136) |
Net cash provided by (used in) operating activities | (37,031) | 3,187 |
Financing activities | ||
Repayments on related party advance | (800) | (300) |
Proceeds from issuance of convertible promissory notes | 36,050 | 0 |
Net cash provided by (used in) financing activities | 35,250 | (300) |
Net increase (decrease) in cash | (1,781) | 2,887 |
Cash - beginning of period | 2,505 | 397 |
Cash - end of period | 724 | 3,284 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,365 | 9,909 |
Cash paid for income tax | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities | ||
Forgiveness of accrued payroll - related party | $ 0 | 18,523 |
Termination of ROU lease asset and related liability | $ 29,208 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Jul. 31, 2020 | |
Organization and Nature of Operations | |
Note 1 - Organization and Nature of Operations | Organization Force Protection Video Equipment Corp., together with its wholly owned subsidiary, Cobraxtreme HD Corp. (collectively, “we”, “us”, “our” or the “Company”), sells video and audio capture devices and accessories to consumers and law enforcement. The Company was incorporated on March 11, 2011, under the laws of the State of Florida. Cobraxtreme HD Corp. was incorporated under the laws of the State of North Carolina on September 19, 2017 and currently is non-operating. On February 2, 2015, the Company changed its name to Force Protection Video Equipment Corp. The Company’s fiscal year end is April 30. Basis of Presentation Management acknowledges its responsibility for the preparation of the accompanying unaudited consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its consolidated financial position and the consolidated results of its operations for the periods presented. The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (the “U.S. GAAP”) for interim financial information and with the instructions to Article 8-03 of Regulation S-X. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. Certain information and note disclosure normally included in financial statements prepared in accordance with U.S. GAAP has been condensed or omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements. These unaudited consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to the consolidated financial statements for the year ended April 30, 2020 of the Company which were included in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission on September 14, 2020. Liquidity and Going Concern These consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited consolidated financial statements, for the three months ended July 31, 2020, the Company had: · Net loss from operations of $52,704; and · Net cash used in operations was $37,031 Additionally, at July 31, 2020, the Company had: · Accumulated deficit of $4,658,208, · Stockholders’ deficit of $793,527; and · Working capital deficit of $788,527 At July 31, 2020, the Company was in default on certain convertible notes and related accrued interest. In August 2020, the Company reached an agreement with its lenders to extend the due dates of its in-default convertible notes to February 1, 2021.See Note 3. The Company has incurred significant losses since its inception and has not demonstrated an ability to generate sufficient revenues from the sales of its goods and services to achieve profitable operations. There can be no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. In making this assessment we performed a comprehensive analysis of our current circumstances including: our financial position, our cash flow and cash usage forecasts for the period ending July 31, 2020, and our current capital structure including equity-based instruments and our obligations and debts. At July 31, 2020, the Company had $724 in cash. If we do not raise sufficient capital in a timely manner, among other things, we may be forced scale back our operations or cease operations all together. We expect that our existing cash and cash equivalents as of July 31, 2020, will not be sufficient to enable us to fund our anticipated level of operations based on our current operating plans, through the first quarter of fiscal year end 2022. Accordingly, we will require additional capital to fund our operations. We anticipate raising additional capital through the private and public sales of our equity or debt securities, or a combination thereof. Although management believes that such capital sources will be available, there can be no assurance that financing will be available to us when needed in order to allow us to continue our operations, or if available, on terms acceptable to us. During the first quarter of fiscal year 2021, the Company was able to raise $36,050 in 8%, convertible notes, under similar terms as its previous convertible note financings; and an additional $66,859 was raised during August and September 2020.There were no sales of equity based capital investments. The Company’s capital-raising efforts are ongoing, and the Company has undertaken the following to reduce its burn rate: an ongoing review and reduction of monthly operating expenses. If sufficient capital cannot be raised during fiscal year 2021, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations to the extent practicable. Because COVID-19 infections have been reported throughout the United States, certain federal, state, and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. Additional, more restrictive proclamations and/or directives may be issued in the future. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but may have a material impact on our business, financial condition, and results of operations. The significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which it may have an impact cannot be determined at this time. In light of the COVID-19 pandemic, the Company has taken proactive steps to manage its costs and discretionary spending. These factors create substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2020 | |
Summary of Significant Accounting Policies | |
Note 2 - Summary of Significant Accounting Policies | Principles of Consolidation These consolidated financial statements have been prepared in accordance with US GAAP and include the accounts of the Company and its wholly owned subsidiary, Cobraxtreme HD Corp. All intercompany transactions and balances have been eliminated. Business Segments The Company uses the “management approach” to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable segments. Using the management approach, the Company determined that it has one operating segment due to business similarities and similar economic characteristics. Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material. Significant estimates during the three months ended July 31, 2020 included allowance for doubtful accounts on accounts receivable and estimates of current and deferred income taxes and deferred tax valuation allowance. Significant estimates during the three months ended July 31, 2019 included allowance for doubtful accounts on accounts receivable, estimated useful life and related impairment of property and equipment, valuation of operating lease right-of-use (“ROU”) assets and liabilities and the related lease termination and estimates of current and deferred income taxes and deferred tax valuation allowance. Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as 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, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: · Level 1 —Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; · Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and · Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors to assist us in determining fair value, as appropriate. Although the Company believes that the recorded fair value of our financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The Company’s financial instruments, including cash, accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At July 31, 2020 and April 30, 2020, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. ASC 825-10 “Financial Instruments” Concentrations of Risk During the three months ended July 31, 2020 and 2019, the following customers accounted for greater than 10% of sales as follows: Three Months Ended Customer July 31, 2020 July 31, 2019 A 43 % - B 12 % - C - 26 % D - 11 % Total 55 % 37 % Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. At July 31, 2020 and April 30, 2020, the Company did not have any cash equivalents. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. There were no balances in excess of FDIC insured levels and the Company has not experienced any losses in such accounts through July 31, 2020 and April 30, 2020, respectively. Accounts Receivable Credit is extended to customers based on an evaluation of their financial condition and other factors. Management periodically assesses the Company’s accounts receivable and, if necessary, establishes an allowance for estimated uncollectible amounts. Accounts determined to be uncollectible are charged to operations when that determination is made. Interest is not accrued on overdue accounts receivable. The Company does not require collateral. Allowance for doubtful accounts was $0 and $0 at July 31, 2020 and April 30, 2020, respectively. All outstanding accounts receivable at July 31, 2020 were collected in August 2020. For the three months ended July 31, 2020 and 2019, the Company recorded bad debt expense of $756 and $343, respectively. Long-lived Assets Management evaluates the recoverability of the Company’s identifiable intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in the Company’s stock price for a sustained period of time; and changes in the Company’s business strategy. In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets ranging from three to seven years. Expenditures for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations. Management periodically reviews the carrying value of its property and equipment for impairment. On May 1, 2019, the Company and its landlord mutually agreed to terminate the outstanding office lease. All related property and equipment at that time was determined to be impaired. The Company recorded impairment losses of property and equipment of $0 and $6,274 for the three months ended July 31, 2020 and 2019, respectively. Right of Use Assets and Lease Obligations The Right of Use (“ROU”) Asset and Lease Liability reflect the present value of the Company’s estimated future minimum lease payments over the lease term, which may include options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. Typically, renewal options are considered reasonably assured of being exercised if the associated asset lives of the building or leasehold improvements exceed that of the initial lease term, and the Company’s operations remains strong. Therefore, the Right of Use Asset and Lease Liability may include an assumption on renewal options that have not yet been exercised by the Company. Operating lease ROU assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses in the consolidated statements of operations. On May 1, 2019, the Company and its landlord mutually agreed to terminate the outstanding office lease. The Company had an ROU asset of $29,208 and a lease liability of $29,811 at the date of termination, resulting in a gain on lease termination of $603 for the three months ended July 31, 2019. See Note 4. Derivative Liabilities The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, (“ASC 480”), “ Distinguishing Liabilities from Equity” Derivatives and Hedging” Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment recognized in the Company’s consolidated statements of operations. The Company has adopted ASU 2017-11, “ Earnings per share (Topic 260)” If the down round feature in the warrants that are classified as equity is triggered, the Company will recognize the effect of the down round as a deemed dividend, which will reduce the income available to common stockholders. At July 31, 2020 and April 30, 2020, the Company did not have any derivative liabilities. Stock Warrant Liability The Company accounts for certain stock warrants outstanding as a liability at fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations. The fair value of the warrants issued by the Company are estimated using a Black-Scholes option pricing model, at each measurement date. At July 31, 2020 and April 30, 2020, the Company did not have any warrant liabilities. Debt Discounts (Derivative Liabilities) The Company accounts for debt discounts originating in connection with conversion features that remain embedded in the related notes (ASC 815) in accordance with ASC 470-20, Debt with Conversion and Other Options At July 31, 2020 and April 30, 2020, the Company did not have any debt discounts recorded in connection with any derivative or stock warrant liabilities. Beneficial Conversion Features and Debt Discounts For instruments that are not considered liabilities under ASC 480 or ASC 815, the Company applies ASC 470-20 to convertible securities with beneficial conversion features that must be settled in stock and to those that give the issuer a choice in settling the obligation in either stock or cash. ASC 470-20 requires that the beneficial conversion feature should be valued at the commitment date as the difference between the conversion price and the fair market value of the common stock (whereby the conversion price is lower than the fair market value) into which the security is convertible, multiplied by the number of shares into which the security is convertible. This amount is recorded as a debt discount and amortized over the life of the debt. ASC 470-20 further limits this debt discount amount to the proceeds allocated to the convertible instrument. Revenue Recognition Our revenue is generated from the sale of products consisting primarily of video and audio capture devices and accessories. Payment or invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue is recorded net of discounts and promotions and is disaggregated based on significant product lines. See Note 6 for segments and geographic data. ASC Topic 606 is a comprehensive revenue recognition model that requires revenue to be recognized when control of the promised goods or services are transferred to our customers at an amount that reflects the consideration that we expect to receive. Application of ASC Topic 606 requires us to use more judgment and make more estimates than under former guidance. Application of ASC Topic 606 requires a five-step model applicable to all product offerings revenue streams as follows: Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit or financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize revenue at the point in time that the related performance obligation is satisfied by transferring the promised goods or services to our customer. Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have risk before the specified good or service have been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service We have discretion in establishing the price our customer pays for the specified goods or services. Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities have been historically low and are generally recorded as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. We have no Long-term contract liabilities which would represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. Cost of Revenues Cost of revenues represents costs directly related to the production, manufacturing and freight-in of the Company’s product inventory purchased from third-party manufacturers. Income Taxes The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes”. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. As of July 31, 2020, and April 30, 2020, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The Company recognizes interest and penalties related to uncertain income tax positions in other expense. However, no such interest and penalties were recorded for the three months ended July 31, 2020 and 2019. Marketing and Advertising Costs Marketing and advertising costs are expensed as incurred. The Company recognized $749 and $2,972 in marketing and advertising costs during the three months ended July 31, 2020 and 2019, respectively, and are included as a component of general and administrative expenses on the consolidated statements of operations. Stock-Based Compensation We account for our stock-based compensation under ASC 718 “Compensation – Stock Compensation” We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. When determining fair value, the Company considers the following assumptions in the Black-Scholes model: · Exercise price, · Expected dividends, · Expected volatility, · Risk-free interest rate, · Expected life of option; and · Expected forfeiture rate There were no stock option grants during the three months ended July 31, 2020 and 2019, respectively. Additionally, there were no stock options outstanding or exercisable as of July 31, 2020 and April 30, 2020, respectively. Common stock awards The Company may grant common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded in accordance with ASU 2018-07 (June 2018) on the consolidated statement of operations in the same manner and charged to the same account as if such settlements had been made in cash. There were no stock awards granted during the three months ended July 31, 2020 and 2019, respectively. Stock Warrants In connection with certain financing, consulting and collaboration arrangements, the Company may issue warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period or at the date of issuance if there is not a service period. There were no warrants granted during the three months ended July 31, 2020 and 2019, respectively. Additionally, there were no warrants outstanding or exercisable as of July 31, 2020 and April 30, 2020, respectively. Basic and diluted loss per share Pursuant to ASC 260-10-45, basic loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Potentially dilutive common shares may consist of common stock issuable for stock options and warrants (using the treasury stock method), convertible notes and common stock issuable. These common stock equivalents may be dilutive in the future. The following potentially dilutive equity securities outstanding as of July 31, 2020 and 2019 were not included in the computation of dilutive loss per common share because the effect would have been anti-dilutive: July 31, 2020 July 31, 2019 Convertible notes (P&I) 2,328,163,333 20,632,801,111 Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Recently Issued Accounting Standards Changes to accounting principles are established by the FASB in the form of ASUs to the FASB’s Codification. We consider the applicability and impact of all ASUs on our financial position, results of operations, cash flows, or presentation thereof. Described below are ASUs that are not yet effective, but may be applicable to our financial position, results of operations, cash flows, or presentation thereof. ASUs not listed below were assessed and determined to not be applicable to our financial position, results of operations, cash flows, or presentation thereof. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” |
Debt
Debt | 3 Months Ended |
Jul. 31, 2020 | |
Debt | |
Note 3 - Debt | Convertible Notes Payable The Company has issued numerous convertible promissory notes. In certain cases, these notes contained conversion features that require a discount to the market price based upon a formula using the Company’s stock prices. The Company has determined that each convertible promissory note conversion feature is indexed to the Company’s stock, which is an input to a fair value measurement of a fixed-for-fixed option on equity shares. Thus, the conversion feature of the notes meets the scope exception under FASB Accounting Standards Codification (“ASC”) 815-40-15-7 and treatment under ASC 470-20 – “Debt with Conversion and Other Options” The following represents a summary of the Company’s lenders, key terms of the debt and outstanding balances at July 31, 2020 and April 30, 2020, respectively. Year Ended April 30, 2021 Effective August 1, 2020, the Company’s outstanding convertible notes payable (8%) and related accrued interest of approximately $662,000 were no longer in default as these debt instruments were extended to a maturity date of February 1, 2021. Also, effective August 1, 2020, all principal and accrued interest outstanding under the convertible notes as of July 31, 2020 were consolidated into one single convertible note. Additional financings subsequent to July 31, 2020 retain the same terms as the original convertible notes payable. Year Ended April 30, 2020 Effective May 1, 2019, the lender amended the conversion price for all outstanding notes to a fixed price of $0.0003. As a result of this amendment, the Company determined that the present value of the cash flows of the outstanding debt were similar (less than 10%) to the present value of the cash flows of the new debt and therefore this amendment was accounted for as a debt modification, which had no effect for financial reporting purposes. Additionally, on May 1, 2019, the lender amended all of their 8% convertible promissory notes previously outstanding as well as those issued after May 1, 2019 to suspend the default provision, which would allow for a default penalty of 150% on the outstanding principal and accrued interest at the time of default. The lender has provided for similar relief to its 5%, non-convertible note, issued on October 11, 2019 (See below). The lender has reserved the right to reinstate the default provision at their discretion. Lenders RDW Capital, LLC (“RDW”) - Convertible Notes (6 Notes) Term of Convertible Notes Approximately 6 months Maturity Dates September 10, 2016 – October 31, 2018, then February 1, 2021 Interest Rate 8% Default Interest Rate 24% Collateral Unsecured Conversion Discount Fixed at $0.003 Conversion Restriction Ownership cannot exceed 4.99% Prepayment Penalty (P&I) 130% Default Penalty (P&I) 150% Common Share Reserve Three (3) times the possible shares needed upon conversion Red Diamond Partners, LLC (“Red”) – Convertible Notes (12 Notes) Issuance Date of Convertible Notes October 11, 2019 – July 23, 2020 Term of Convertible Notes Approximately 6 months Maturity Dates April 11, 2020 – January 23, 2021, then February 1, 2021 Gross Proceeds $211,806 Interest Rate 8% Default Interest Rate 24% Collateral Unsecured Conversion Feature Fixed at $0.0003 Conversion Restriction Ownership cannot exceed 4.99% Prepayment Penalty (P&I) 130% Default Penalty (P&I) 150% Common Share Reserve Three (3) times the possible shares needed upon conversion Red Diamond Partners, LLC – Term Note (1 Note) Issuance Date of Note October 11, 2019 Term of Note Approximately 6 months Maturity Date April 11, 2020 Gross Proceeds $27,500 Interest Rate 5% Default Interest Rate None Collateral 5,000,000 shares, Series A, Redeemable Preferred Stock – all held by the Company’s CEO Conversion Feature None Conversion Restriction N/A Prepayment Penalty (P&I) 130% Default Penalty (P&I) N/A Common Share Reserve N/A As of July 31, 2020, the note payable of $27,500 along with accrued interest of $1,108 was in default. In connection with the default, the lender has not called this debt and is not seeking to foreclose on the collateral and obtain the 5,000,000 shares of Series A, Redeemable, Preferred Stock. See Note 5. The following is a summary of the Company’s convertible notes and related accrued interest (included as a component of accounts payable and accrued expenses) at July 31, 2020: Convertible Notes Payable Amounts In-Default Balance - April 30, 2019 $ 439,465 $ 439,465 Proceeds 175,756 Repayments (132,460 ) Gain on Debt Settlements - Net (19,200 ) Balance - April 30, 2020 463,561 420,661 Proceeds 36,050 Balance - July 31, 2020 $ 499,611 $ 463,561 Accrued Interest Payable Amounts In-Default Balance - April 30, 2019 149,636 149,636 Interest Expense - Net 65,367 Repayments (2,040 ) Gain on Debt Settlements - Net (41,857 ) Balance - April 30, 2020 171,106 168,174 Interest Expense 27,732 Balance - July 31, 2020 $ 198,838 $ - |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies | |
Note 4 - Commitments and Contingencies | Product Warranties The Company’s manufacturer(s) provide the Company with a 2-year warranty. The Company products are sold with a 1-year manufacturer’s warranty. The Company offers a 1-year extended warranty for a fee. The extended warranty expires at the end of the second year from the date of purchase with warranty costs during the two-year period being born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure. |
Series A, Redeemable Preferred
Series A, Redeemable Preferred Stock - Related Party | 3 Months Ended |
Jul. 31, 2020 | |
Series A, Redeemable Preferred Stock - Related Party | |
Note 5 - Series A, Redeemable Preferred Stock - Related Party | As of July 31, 2020, and April 30, 2020, respectively, there were 5,000,000 shares of $0.0001 par value, Series A, Redeemable Preferred Stock outstanding held by the Company’s Chief Executive Officer (“CEO”). The Preferred Stock pays no dividends and has no conversion rights into common stock. Each share of Preferred Stock is entitled to 200 votes per share and is redeemable in whole, but not in part, at the option of the holder for $0.0001 per share. Due to the redemption feature being at the option of the holder, the Company classifies the purchase price in the temporary equity section of the balance sheet. See Note 3 regarding these 5,000,000 shares serving as collateral for a debt issuance to Red Diamond Partners, LLC (“Red”) on October 11, 2019 for $27,500. |
REVENUES
REVENUES | 3 Months Ended |
Jul. 31, 2020 | |
REVENUES | |
NOTE 6 - REVENUES | All of the Company’s revenues are derived from business in North America. The following tables disaggregate our revenue by major product line, types of customers, and timing of revenue recognition for the three months ended July 31, 2020 and 2019, respectively: July 31, 2020 July 31, 2019 Major Product Lines Revenue % of Revenues Revenue % of Revenues Cameras $ 3,644 79 % $ 15,779 63 % Accessories 964 21 % 9,369 37 % Total Net Revenue $ 4,608 100 % $ 25,148 100 % Types of Customers Revenue % of Revenues Revenue % of Revenues Federal $ 138 3 % $ 1,760 7 % State and Local 4,424 96 % 22,382 89 % Non-government 46 1 % 1,006 4 % $ 4,608 100 % $ 25,148 100 % Timing of Revenue Recognition Revenue % of Revenues Revenue % of Revenues Transferred at a point in time $ 4,608 100 % $ 25,148 100 % $ 4,608 100 % $ 25,148 100 % |
STOCKHOLDER'S DEFICIT
STOCKHOLDER'S DEFICIT | 3 Months Ended |
Jul. 31, 2020 | |
STOCKHOLDER'S DEFICIT | |
NOTE 7 - STOCKHOLDER'S DEFICIT | July 31, 2020 During the three months ended July 31, 2020, there were no equity transactions. July 31, 2019 During the three months ended July 31, 2019, the Company’s CEO forgave accrued payroll of $18,523. Since the forgiveness occurred with a related party, accordingly there was no gain or loss, this resulted in a contribution to equity. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
NOTE 8 - RELATED PARTY TRANSACTIONS | Shareholder advances (repayments) From time to time, the Company receives advances from and repays such advances to the Company’s CEO for working capital purposes and to repay indebtedness. The advances are non-interest bearing, unsecured and due on demand. During the three months ended July 31, 2020, the Company repaid $800, resulting in an outstanding balance of $11,350. During the three months ended July 31, 2019, the Company repaid $300, resulting in an outstanding balance of $14,350. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 9 - SUBSEQUENT EVENTS | Debt Issuances The following is a summary of the Company’s convertible notes payable and related accrued interest (included as a component of accounts payable and accrued expenses) for the fiscal year end April 30, 2020, July 31, 2020 and through September 18, 2020: Convertible Notes Payable Amounts In-Default Balance - April 30, 2019 $ 439,465 $ 439,465 Proceeds 175,756 Repayments (132,460 ) Gain on Debt Settlements - Net (19,200 ) Balance - April 30, 2020 463,561 420,661 Proceeds 36,050 Balance - July 31, 2020 499,611 463,561 Proceeds 66,859 Balance - September 18, 2020 $ 566,470 $ - Accrued Interest Payable Amounts In-Default Balance - April 30, 2019 149,636 149,636 Interest Expense - Net 65,367 Repayments (2,040 ) Gain on Debt Settlements - Net (41,857 ) Balance - April 30, 2020 171,106 168,174 Interest Expense 27,732 Balance - July 31, 2020 198,838 198,701 Interest Expense 6,207 Balance - September 18, 2020 $ 205,045 $ - |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | These consolidated financial statements have been prepared in accordance with US GAAP and include the accounts of the Company and its wholly owned subsidiary, Cobraxtreme HD Corp. All intercompany transactions and balances have been eliminated. |
Business Segments | The Company uses the “management approach” to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable segments. Using the management approach, the Company determined that it has one operating segment due to business similarities and similar economic characteristics. |
Use of Estimates | In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material. During the three months ended July 31, 2020, there were no significant estimates. Significant estimates during the three months ended July 31, 2019 included estimated useful life and related impairment of property and equipment, valuation of operating lease right-of-use (“ROU”) assets and liabilities and the related lease termination and estimates of current and deferred income taxes and deferred tax valuation allowance. |
Fair Value of Financial Instruments | The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as 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, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: · Level 1 —Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; · Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and · Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors to assist us in determining fair value, as appropriate. Although the Company believes that the recorded fair value of our financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The Company’s financial instruments, including cash, accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At July 31, 2020 and April 30, 2020, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. ASC 825-10 “Financial Instruments” |
Concentrations of risk | During the three months ended July 31, 2020 and 2019, the following customers accounted for greater than 10% of sales as follows: Three Months Ended Customer July 31, 2020 July 31, 2019 A 43 % - B 12 % - C - 26 % D - 11 % Total 55 % 37 % |
Cash and Cash Equivalents | For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. At July 31, 2020 and April 30, 2020, the Company did not have any cash equivalents. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. There were no balances in excess of FDIC insured levels and the Company has not experienced any losses in such accounts through July 31, 2020 and April 30, 2020, respectively. |
Accounts Receivable | Credit is extended to customers based on an evaluation of their financial condition and other factors. Management periodically assesses the Company’s accounts receivable and, if necessary, establishes an allowance for estimated uncollectible amounts. Accounts determined to be uncollectible are charged to operations when that determination is made. Interest is not accrued on overdue accounts receivable. The Company does not require collateral. Allowance for doubtful accounts was $0 and $0 at July 31, 2020 and April 30, 2020, respectively. All outstanding accounts receivable at July 31, 2020 were collected in August 2020. For the three months ended July 31, 2020 and 2019, the Company recorded bad debt expense of $756 and $343, respectively. |
Long-Lived Assets | Management evaluates the recoverability of the Company’s identifiable intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in the Company’s stock price for a sustained period of time; and changes in the Company’s business strategy. In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Property and Equipment | Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets ranging from three to seven years. Expenditures for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations. Management periodically reviews the carrying value of its property and equipment for impairment. On May 1, 2019, the Company and its landlord mutually agreed to terminate the outstanding office lease. All related property and equipment at that time was determined to be impaired. The Company recorded impairment losses of property and equipment of $0 and $6,274 for the three months ended July 31, 2020 and 2019, respectively. |
Right of Use Assets and Lease Obligations | The Right of Use (“ROU”) Asset and Lease Liability reflect the present value of the Company’s estimated future minimum lease payments over the lease term, which may include options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. Typically, renewal options are considered reasonably assured of being exercised if the associated asset lives of the building or leasehold improvements exceed that of the initial lease term, and the Company’s operations remains strong. Therefore, the Right of Use Asset and Lease Liability may include an assumption on renewal options that have not yet been exercised by the Company. Operating lease ROU assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses in the consolidated statements of operations. On May 1, 2019, the Company and its landlord mutually agreed to terminate the outstanding office lease. The Company had an ROU asset of $29,208 and a lease liability of $29,811 at the date of termination, resulting in a gain on lease termination of $603 for the three months ended July 31, 2019. See Note 4. |
Derivative Liabilities | The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, (“ASC 480”), “ Distinguishing Liabilities from Equity” Derivatives and Hedging” Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment recognized in the Company’s consolidated statements of operations. The Company has adopted ASU 2017-11, “ Earnings per share (Topic 260)” If the down round feature in the warrants that are classified as equity is triggered, the Company will recognize the effect of the down round as a deemed dividend, which will reduce the income available to common stockholders. At July 31, 2020 and April 30, 2020, the Company did not have any derivative liabilities. |
Stock Warrant Liability | The Company accounts for certain stock warrants outstanding as a liability at fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statements of operations. The fair value of the warrants issued by the Company are estimated using a Black-Scholes option pricing model, at each measurement date. At July 31, 2020 and April 30, 2020, the Company did not have any warrant liabilities. |
Debt Discounts (Derivative Liabilities) | The Company accounts for debt discounts originating in connection with conversion features that remain embedded in the related notes (ASC 815) in accordance with ASC 470-20, Debt with Conversion and Other Options At July 31, 2020 and April 30, 2020, the Company did not have any debt discounts recorded in connection with any derivative or stock warrant liabilities. |
Beneficial Conversion Features and Debt Discounts | For instruments that are not considered liabilities under ASC 480 or ASC 815, the Company applies ASC 470-20 to convertible securities with beneficial conversion features that must be settled in stock and to those that give the issuer a choice in settling the obligation in either stock or cash. ASC 470-20 requires that the beneficial conversion feature should be valued at the commitment date as the difference between the conversion price and the fair market value of the common stock (whereby the conversion price is lower than the fair market value) into which the security is convertible, multiplied by the number of shares into which the security is convertible. This amount is recorded as a debt discount and amortized over the life of the debt. ASC 470-20 further limits this debt discount amount to the proceeds allocated to the convertible instrument. |
Revenue Recognition | Our revenue is generated from the sale of products consisting primarily of video and audio capture devices and accessories. Payment or invoicing typically occurs upon shipment and the term between invoicing and when payment is due is not significant. Revenue is recorded net of discounts and promotions and is disaggregated based on significant product lines. See Note 6 for segments and geographic data. ASC Topic 606 is a comprehensive revenue recognition model that requires revenue to be recognized when control of the promised goods or services are transferred to our customers at an amount that reflects the consideration that we expect to receive. Application of ASC Topic 606 requires us to use more judgment and make more estimates than under former guidance. Application of ASC Topic 606 requires a five-step model applicable to all product offerings revenue streams as follows: Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit or financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize revenue at the point in time that the related performance obligation is satisfied by transferring the promised goods or services to our customer. Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have risk before the specified good or service have been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service We have discretion in establishing the price our customer pays for the specified goods or services. Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities have been historically low and are generally recorded as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. We have no Long-term contract liabilities which would represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. |
Cost of Revenues | Cost of revenues represents costs directly related to the production, manufacturing and freight-in of the Company’s product inventory purchased from third-party manufacturers. |
Income Taxes | The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes”. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. As of July 31, 2020, and April 30, 2020, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The Company recognizes interest and penalties related to uncertain income tax positions in other expense. However, no such interest and penalties were recorded for the three months ended July 31, 2020 and 2019. |
Marketing and Advertising Costs | Marketing and advertising costs are expensed as incurred. The Company recognized $749 and $2,972 in marketing and advertising costs during the three months ended July 31, 2020 and 2019, respectively, and are included as a component of general and administrative expenses on the consolidated statements of operations. |
Stock Based Compensation | We account for our stock-based compensation under ASC 718 “Compensation – Stock Compensation” We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. When determining fair value, the Company considers the following assumptions in the Black-Scholes model: · Exercise price, · Expected dividends, · Expected volatility, · Risk-free interest rate, · Expected life of option; and · Expected forfeiture rate There were no stock option grants during the three months ended July 31, 2020 and 2019, respectively. Additionally, there were no stock options outstanding or exercisable as of July 31, 2020 and April 30, 2020, respectively. Common stock awards The Company may grant common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded in accordance with ASU 2018-07 (June 2018) on the consolidated statement of operations in the same manner and charged to the same account as if such settlements had been made in cash. There were no stock awards granted during the three months ended July 31, 2020 and 2019, respectively. Stock Warrants In connection with certain financing, consulting and collaboration arrangements, the Company may issue warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period or at the date of issuance if there is not a service period. There were no warrants granted during the three months ended July 31, 2020 and 2019, respectively. Additionally, there were no warrants outstanding or exercisable as of July 31, 2020 and April 30, 2020, respectively. |
Basic and diluted loss per share | Pursuant to ASC 260-10-45, basic loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Potentially dilutive common shares may consist of common stock issuable for stock options and warrants (using the treasury stock method), convertible notes and common stock issuable. These common stock equivalents may be dilutive in the future. The following potentially dilutive equity securities outstanding as of July 31, 2020 and 2019 were not included in the computation of dilutive loss per common share because the effect would have been anti-dilutive: July 31, 2020 July 31, 2019 Convertible notes (P&I) 2,328,163,333 20,632,801,111 |
Related Parties | Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. |
Recently Issued Accounting Standards | Changes to accounting principles are established by the FASB in the form of ASUs to the FASB’s Codification. We consider the applicability and impact of all ASUs on our financial position, results of operations, cash flows, or presentation thereof. Described below are ASUs that are not yet effective, but may be applicable to our financial position, results of operations, cash flows, or presentation thereof. ASUs not listed below were assessed and determined to not be applicable to our financial position, results of operations, cash flows, or presentation thereof. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Table) | 3 Months Ended |
Jul. 31, 2020 | |
Summary of Significant Accounting Policies (Table) | |
Schedule of sales | Three Months Ended Customer July 31, 2020 July 31, 2019 A 43 % - B 12 % - C - 26 % D - 11 % Total 55 % 37 % |
Schedule of Basic and diluted loss per share | July 31, 2020 July 31, 2019 Convertible notes (P&I) 2,328,163,333 20,632,801,111 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Debt | |
Schedule of Outstanding Convertible Promissory Notes | Term of Convertible Notes Approximately 6 months Maturity Dates September 10, 2016 – October 31, 2018, then February 1, 2021 Interest Rate 8% Default Interest Rate 24% Collateral Unsecured Conversion Discount Fixed at $0.003 Conversion Restriction Ownership cannot exceed 4.99% Prepayment Penalty (P&I) 130% Default Penalty (P&I) 150% Common Share Reserve Three (3) times the possible shares needed upon conversion |
Schedule of default provision | Issuance Date of Convertible Notes October 11, 2019 – July 23, 2020 Term of Convertible Notes Approximately 6 months Maturity Dates April 11, 2020 – January 23, 2021, then February 1, 2021 Gross Proceeds $211,806 Interest Rate 8% Default Interest Rate 24% Collateral Unsecured Conversion Feature Fixed at $0.0003 Conversion Restriction Ownership cannot exceed 4.99% Prepayment Penalty (P&I) 130% Default Penalty (P&I) 150% Common Share Reserve Three (3) times the possible shares needed upon conversion Red Diamond Partners, LLC – Term Note (1 Note) Issuance Date of Note October 11, 2019 Term of Note Approximately 6 months Maturity Date April 11, 2020 Gross Proceeds $27,500 Interest Rate 5% Default Interest Rate None Collateral 5,000,000 shares, Series A, Redeemable Preferred Stock – all held by the Company’s CEO Conversion Feature None Conversion Restriction N/A Prepayment Penalty (P&I) 130% Default Penalty (P&I) N/A Common Share Reserve N/A |
Summary of convertible notes and related accrued interest | Convertible Notes Payable Amounts In-Default Balance - April 30, 2019 $ 439,465 $ 439,465 Proceeds 175,756 Repayments (132,460 ) Gain on Debt Settlements - Net (19,200 ) Balance - April 30, 2020 463,561 420,661 Proceeds 36,050 Balance - July 31, 2020 499,611 463,561 Proceeds 66,859 Balance - September 18, 2020 $ 566,470 $ - Accrued Interest Payable Amounts In-Default Balance - April 30, 2019 149,636 149,636 Interest Expense - Net 65,367 Repayments (2,040 ) Gain on Debt Settlements - Net (41,857 ) Balance - April 30, 2020 171,106 168,174 Interest Expense 27,732 Balance - July 31, 2020 198,838 198,701 Interest Expense 6,207 Balance - September 18, 2020 $ 205,045 $ - |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
REVENUES | |
Schedule of revenue recognition | July 31, 2020 July 31, 2019 Major Product Lines Revenue % of Revenues Revenue % of Revenues Cameras $ 3,644 79 % $ 15,779 63 % Accessories 964 21 % 9,369 37 % Total Net Revenue $ 4,608 100 % $ 25,148 100 % Types of Customers Revenue % of Revenues Revenue % of Revenues Federal $ 138 3 % $ 1,760 7 % State and Local 4,424 96 % 22,382 89 % Non-government 46 1 % 1,006 4 % $ 4,608 100 % $ 25,148 100 % Timing of Revenue Recognition Revenue % of Revenues Revenue % of Revenues Transferred at a point in time $ 4,608 100 % $ 25,148 100 % $ 4,608 100 % $ 25,148 100 % |
SUBSEQUENT EVENT (Tables)
SUBSEQUENT EVENT (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
SUBSEQUENT EVENTS | |
Summary of convertible notes and related accrued interest | Convertible Notes Payable Amounts In-Default Balance - April 30, 2019 $ 439,465 $ 439,465 Proceeds 175,756 Repayments (132,460 ) Gain on Debt Settlements - Net (19,200 ) Balance - April 30, 2020 463,561 420,661 Proceeds 36,050 Balance - July 31, 2020 499,611 463,561 Proceeds 66,859 Balance - September 18, 2020 $ 566,470 $ - Accrued Interest Payable Amounts In-Default Balance - April 30, 2019 149,636 149,636 Interest Expense - Net 65,367 Repayments (2,040 ) Gain on Debt Settlements - Net (41,857 ) Balance - April 30, 2020 171,106 168,174 Interest Expense 27,732 Balance - July 31, 2020 198,838 198,701 Interest Expense 6,207 Balance - September 18, 2020 $ 205,045 $ - |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) - USD ($) | 3 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Net operating loss | $ (52,704) | |||
Stockholder deficit | (793,527) | $ (721,753) | $ (740,823) | $ (727,129) |
Cash equivalents | 724 | |||
Accumulated deficit | (4,658,208) | $ (4,605,504) | ||
Working capital deficit | (788,527) | |||
Net cash used in operations | (37,031) | $ 3,187 | ||
Proceeds from convertible notes payable | 36,050 | |||
During August and September 2020 [Member] | ||||
Proceeds from convertible notes payable | $ 66,859 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Concentrations of risk, percentage | 55.00% | 37.00% |
Customer Concentration Risk [Member] | Sales [Member] | Customer A [Member] | ||
Concentrations of risk, percentage | 43.00% | 0.00% |
Customer Concentration Risk [Member] | Sales [Member] | Customer B [Member] | ||
Concentrations of risk, percentage | 12.00% | 0.00% |
Customer Concentration Risk [Member] | Sales [Member] | Customer C [Member] | ||
Concentrations of risk, percentage | 0.00% | 26.00% |
Customer Concentration Risk [Member] | Sales [Member] | Customer D [Member] | ||
Concentrations of risk, percentage | 0.00% | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Organization and Nature of Operations | ||
Convertible notes (P&I) | 2,328,163,333 | 20,632,801,111 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | |
Organization and Nature of Operations | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Impairment losses of property and equipment | 0 | $ 6,274 | |
Right of use assets | 29,208 | ||
Lease liability | 29,811 | ||
Gain on lease termination | 603 | ||
Bad debts expenses | 756 | 343 | |
Marketing and advertising Expenses | $ 749 | $ 2,972 |
Debt (Details)
Debt (Details) - RDW Capital, LLC [Member] - Convertible Promissory Notes (6 Notes) [Member] | 3 Months Ended |
Jul. 31, 2020 | |
Maturity date | Feb. 1, 2021 |
Term of convertible debt | 6 months |
Interest rate | 8.00% |
Default Interest Rate | 24.00% |
Collateral | Unsecured |
Conversion Discount | Fixed at $0.003 |
Conversion Restriction | Ownership cannot exceed 4.99% |
Prepayment Penalty (P&I) | 130.00% |
Default Penalty (P&I) | 150.00% |
Common Share Reserve | Three (3) times the possible shares needed upon conversion |
Minimum [Member] | |
Maturity date | Sep. 10, 2016 |
Maximum [Member] | |
Maturity date | Oct. 31, 2018 |
Debt (Details 1)
Debt (Details 1) - Red Diamond Partners, LLC [Member] - Convertible Notes Payable (12 Notes) [Member] | 3 Months Ended |
Jul. 31, 2020USD ($) | |
Maturity date | Feb. 1, 2021 |
Term of convertible debt | 6 months |
Gross proceeds | $ 211,806 |
Interest rate | 8.00% |
Default Interest Rate | 24.00% |
Conversion feature | Fixed at $0.0003 |
Collateral | Unsecured |
Conversion Restriction | Ownership cannot exceed 4.99% |
Default Penalty (P&I) | 150.00% |
Prepayment Penalty (P&I) | 130.00% |
Common Share Reserve | Three (3) times the possible shares needed upon conversion |
Maximum [Member] | |
Maturity date | Jan. 23, 2021 |
Issuance Date of Convertible Notes | Jul. 23, 2020 |
Minimum [Member] | |
Maturity date | Apr. 11, 2020 |
Issuance Date of Convertible Notes | Oct. 11, 2019 |
Debt (Details 2)
Debt (Details 2) - Red Diamond Partners, LLC [Member] - Convertible Notes Payable Term Note (1 Note) [Member] | 3 Months Ended |
Jul. 31, 2020USD ($) | |
Issuance date description | October 11, 2019 |
Term of convertible debt | 6 months |
Gross proceeds | $ 27,500 |
Interest rate | 5.00% |
Default Interest Rate | 0.00% |
Collateral | 5,000,000 shares, Series A, Redeemable Preferred Stock – all held by the Company’s CEO |
Conversion feature | None |
Conversion Restriction | N/A |
Default Penalty (P&I) | N/A |
Common Share Reserve | N/A |
Prepayment Penalty (P&I) | 130% |
Maturity date | Apr. 11, 2020 |
Debt (Details 3)
Debt (Details 3) - Convertible Promissory Notes [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Apr. 30, 2020 | |
Beginning Balance | $ 463,561 | $ 439,465 |
Proceeds | 36,050 | 175,756 |
Repayments | (132,460) | |
Gain on Debt Settlements - Net | (19,200) | |
Ending Balance | 499,611 | 463,561 |
In-Default [Member] | ||
Beginning Balance | 420,661 | 439,465 |
Ending Balance | $ 463,561 | $ 420,661 |
Debt (Details 4)
Debt (Details 4) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 18, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | |
Interest Expense - Net | $ 29,097 | $ 7,272 | ||
Accrued Interest Payable [Member] | In-Default [Member] | Subsequent Event [Member] | ||||
Beginning Balance | $ 198,701 | 168,174 | 149,636 | $ 149,636 |
Ending Balance | 198,701 | 168,174 | ||
Accrued Interest Payable [Member] | Subsequent Event [Member] | ||||
Beginning Balance | 198,838 | 171,106 | $ 149,636 | 149,636 |
Interest Expense - Net | 65,367 | |||
Interest Expense | 6,207 | 27,732 | 65,367 | |
Repayment | (2,040) | |||
Gain on Debt Settlements - Net | (41,857) | |||
Ending Balance | $ 205,045 | $ 198,838 | $ 171,106 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Accrued interest | $ 1,108 | ||
Term Note, default | $ 27,500 | ||
Series A Preferred Stock [Member] | |||
Redeemable, Preferred Stock | 5,000,000 | 5,000,000 | |
RDW Capital, LLC [Member] | Convertible Promissory Notes Six [Member] | |||
Interest rate | 8.00% | ||
Default Penalty (P&I) | 150.00% | ||
August 1, 2020 [Member] | |||
Interest rate | 8.00% | ||
Accrued interest | $ 662,000 | ||
Maturity date | Feb. 1, 2021 | ||
September 10, 2016 [Member] | RDW Capital, LLC [Member] | Convertible Promissory Notes Six [Member] | Security Purchase Agreement [Member] | |||
Interest rate | 8.00% | ||
Conversion price | $ 0.0003 | ||
Default Penalty (P&I) | 150.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 3 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies | |
Standard product warranty description | The Company’s manufacturer(s) provide the Company with a 2-year warranty. The Company products are sold with a 1-year manufacturer’s warranty |
Extended product warranty description | The Company offers a 1-year extended warranty for a fee. The extended warranty expires at the end of the second year from the date of purchase with warranty costs during the two-year period being born by the manufacturer |
Series A, Redeemable Preferre_2
Series A, Redeemable Preferred Stock - Related Party (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Oct. 11, 2019 | Jul. 31, 2020 | Apr. 30, 2020 | |
Red Diamon Partners, LLC [Member] | |||
Stock issued in collateral for serving | 5,000,000 | ||
Debt instrument, principal amount | $ 27,500 | ||
Series A Preferred Stock [Member] | |||
Preferred stock, shares outstanding | 5,000,000 | 5,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, conversion description | The Preferred Stock pays no dividends and has no conversion rights into common stock. | ||
Preferred stock, voting rights | Each share of Preferred Stock is entitled to 200 votes per share and is redeemable in whole, but not in part, at the option of the holder for $0.0001 per share. |
REVENUES (Details)
REVENUES (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Revenues | $ 4,608 | $ 25,148 |
Major Product Lines [Member] | ||
Percentage of Revenues | 100.00% | 100.00% |
Revenues | $ 4,608 | $ 25,148 |
Cameras [Member] | ||
Percentage of Revenues | 79.00% | 63.00% |
Revenues | $ 3,644 | $ 15,779 |
Accessories [Member] | ||
Percentage of Revenues | 21.00% | 37.00% |
Revenues | $ 964 | $ 9,369 |
REVENUES (Details 1)
REVENUES (Details 1) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Revenues | $ 4,608 | $ 25,148 |
Federal [Member] | ||
Percentage of sales | 3.00% | 7.00% |
Revenues | $ 138 | $ 1,760 |
State and Local [Member] | ||
Percentage of sales | 96.00% | 89.00% |
Revenues | $ 4,424 | $ 22,382 |
Non Government [Member] | ||
Percentage of sales | 1.00% | 4.00% |
Revenues | $ 46 | $ 1,006 |
Types of Customers [Member] | ||
Percentage of sales | 100.00% | 100.00% |
Revenues | $ 4,608 | $ 25,148 |
REVENUES (Details 2)
REVENUES (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues | $ 4,608 | $ 25,148 | ||
Timing of Revenue Recognition [Member] | ||||
Revenues | $ 4,608 | $ 25,148 | ||
Percentage of sales | 100.00% | 100.00% | ||
Transferred at a point in time [Member] | ||||
Revenues | $ 4,608 | $ 25,148 | ||
Percentage of sales | 100.00% | 100.00% |
STOCKHOLDERS DEFICIT (Details N
STOCKHOLDERS DEFICIT (Details Narrative) | Jul. 31, 2019USD ($) |
CEO [Member] | |
Accrued payroll | $ 18,523 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - CEO [Member] - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Related party outstanding balance | $ 11,350 | $ 14,350 |
Repayments of related party | $ 800 | $ 300 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Convertible Promissory Notes [Member] - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Sep. 18, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | |
Proceeds | $ 36,050 | $ 175,756 | |
Repayments | (132,460) | ||
Gain on Debt Settlements - Net | (19,200) | ||
In-Default [Member] | |||
Beginning Balance | 420,661 | 439,465 | |
Ending Balance | 463,561 | 420,661 | |
Subsequent Event [Member] | |||
Beginning Balance | $ 499,611 | 463,561 | 439,465 |
Proceeds | 66,859 | 36,050 | 175,756 |
Repayments | (132,460) | ||
Gain on Debt Settlements - Net | (19,200) | ||
Ending Balance | 566,470 | 499,611 | 463,561 |
Subsequent Event [Member] | In-Default [Member] | |||
Beginning Balance | 463,561 | 420,661 | 439,465 |
Ending Balance | $ 0 | $ 463,561 | $ 420,661 |
SUBSEQUENT EVENT (Details 1)
SUBSEQUENT EVENT (Details 1) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 18, 2020 | Jul. 31, 2020 | Jul. 31, 2019 | Apr. 30, 2020 | |
Interest Expense - Net | $ 29,097 | $ 7,272 | ||
Accrued Interest Payable [Member] | In-Default [Member] | Subsequent Event [Member] | ||||
Beginning Balance | $ 198,701 | 168,174 | 149,636 | $ 149,636 |
Ending Balance | 198,701 | 168,174 | ||
Accrued Interest Payable [Member] | Subsequent Event [Member] | ||||
Beginning Balance | 198,838 | 171,106 | $ 149,636 | 149,636 |
Interest Expense - Net | 65,367 | |||
Repayment | (2,040) | |||
Gain on Debt Settlements - Net | (41,857) | |||
Interest Expenses | 6,207 | 27,732 | 65,367 | |
Ending Balance | $ 205,045 | $ 198,838 | $ 171,106 |