Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2024 | Mar. 25, 2024 | |
Registrant CIK | 0001533357 | |
Fiscal Year End | --04-30 | |
Registrant Name | DEFENSE TECHNOLOGIES INTERNATIONAL CORP. | |
SEC Form | 10-Q | |
Period End date | Jan. 31, 2024 | |
Tax Identification Number (TIN) | 99-0363802 | |
Number of common stock shares outstanding | 9,077,038 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-54851 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2683 Via De La Valle | |
Entity Address, Address Line Two | Suite G418 | |
Entity Address, City or Town | Del Mar | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92014 | |
City Area Code | 800 | |
Local Phone Number | 520-9485 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Preferred Class A | ||
Preferred Stock, Shares Outstanding | 2,535,135 | |
Preferred Class B | ||
Preferred Stock, Shares Outstanding | 1,905,920 | |
Preferred Class C | ||
Preferred Stock, Shares Outstanding | 586 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Current assets | ||
Cash | $ 304 | $ 804 |
Inventory | 7,599 | 34,512 |
Total current assets | 7,903 | 35,316 |
Total assets | 7,903 | 35,316 |
Current liabilities | ||
Accounts payable and accrued expense | 356,146 | 260,765 |
Accrued licenses agreement payable | 75,000 | 37,500 |
Accrued interest and fees payable | 167,735 | 150,517 |
Convertible notes payable, net of discount | 279,085 | 319,767 |
Derivative liabilities | 41,181 | 65,826 |
Payables - related parties | 1,120,858 | 910,524 |
Customer deposits | 40,375 | 30,375 |
Notes payable | 20,042 | 64,092 |
Note payable- related party | 138,988 | 115,600 |
Total current liabilities | 2,239,410 | 1,954,966 |
Total liabilities | 2,239,410 | 1,954,966 |
Commitments and Contingencies | 0 | 0 |
Stockholders' deficit | ||
Common shares | 909 | 181 |
Additional paid-in capital | 15,053,834 | 14,905,851 |
Accumulated deficit | (16,978,037) | (16,527,130) |
Total | (1,922,851) | (1,620,615) |
Non-controlling interest | (308,657) | (299,035) |
Total stockholders' deficit | (2,231,508) | (1,919,650) |
Total liabilities and stockholders' deficit | 7,903 | 35,316 |
Series A Preferred Stock | ||
Stockholders' deficit | ||
Preferred shares | 253 | 292 |
Series B Preferred Stock | ||
Stockholders' deficit | ||
Preferred shares | 190 | 191 |
Series D Preferred Stock | ||
Stockholders' deficit | ||
Preferred shares | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Parenthetical - $ / shares | Jan. 31, 2024 | Apr. 30, 2023 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | |
Preferred Stock, Shares Authorized | 20,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued | 9,077,038 | 1,803,042 |
Common Stock, Shares, Outstanding | 9,077,038 | 1,803,042 |
Series A Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 2,535,135 | 2,535,135 |
Preferred Stock, Shares Outstanding | 2,535,135 | 2,535,135 |
Series B Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 1,905,920 | 1,910,670 |
Preferred Stock, Shares Outstanding | 1,905,920 | 1,910,670 |
Series D Preferred Stock | ||
Preferred Stock, Shares Issued | 586 | 600 |
Preferred Stock, Shares Outstanding | 586 | 600 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | |
Condensed Consolidated Statement of Operations | ||||
Revenue | $ 0 | $ 0 | $ 49,012 | $ 0 |
Cost of goods sold | 0 | 0 | 24,405 | 0 |
Gross margin | 0 | 0 | 24,607 | 0 |
Expenses | ||||
Depreciation | 0 | 2,846 | 0 | 8,676 |
Consulting | 110,000 | 137,500 | 342,637 | 1,022,900 |
Development | 0 | 322 | ||
General and administrative | 31,270 | 42,715 | 107,250 | 194,645 |
Total operating expenses | 141,270 | 183,061 | 450,209 | 1,485,465 |
Loss from operations | (141,270) | (183,061) | (425,602) | (1,485,465) |
Other income (expense) | ||||
Interest and other income (expense) | (6,771) | (8,519) | (21,330) | (60,263) |
Gain (loss) on debt settlement | 25,000 | (13,500) | 25,000 | (849,329) |
Gain (loss) on derivative liability | 226 | 68,890 | (16,528) | 216,920 |
Other income (expense) | 0 | 0 | 0 | 22,626 |
Interest - note discount | 0 | (30,450) | 0 | (76,126) |
Total other income (expense) | 18,455 | 14,891 | (12,858) | (746,172) |
Income (loss) before income taxes | (122,815) | (168,170) | (438,460) | (2,231,637) |
Provision for income taxes | 0 | 0 | 0 | |
Net income (loss) before non-controlling interest | (122,815) | (168,170) | (438,460) | (2,231,637) |
Non-controlling interest in net loss of the consolidated subsidiary | 1,212 | 10,316 | 10,071 | 26,594 |
Net income (loss) attributed to the Company | $ (121,603) | $ (157,854) | $ (428,389) | $ (2,205,043) |
Net income (loss) per common share: Basic and dilutive | $ (0.01) | $ (0.23) | $ (0.11) | $ (3.89) |
Basic and dilutive | 8,942,736 | 679,476 | 3,424,670 | 567,088 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest | Shares Not Issued | Total |
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2022 | $ 410 | $ 49 | $ 10,657,126 | $ (13,916,844) | $ (247,112) | $ 0 | $ (3,506,430) |
Shares, Outstanding, Beginning Balance at Apr. 30, 2022 | 4,103,864 | 487,408 | |||||
Preferred B shares issued for accrued expense - related parties, Value | $ 28 | $ 0 | 1,074,222 | 0 | 0 | 0 | 1,074,250 |
Preferred B shares issued for accrued expense - related parties, Shares | 279,026 | ||||||
Preferred B shares issued for notes payable, Value | $ 4 | 0 | 322,496 | 0 | 0 | 0 | 322,500 |
Preferred B shares issued for notes payable, Shares | 53,750 | ||||||
Preferred B shares issued for accounts payable and accrued expenses | $ 39 | 0 | 1,505,118 | 0 | 0 | 0 | 1,505,155 |
Preferred B shares issued for accounts payable and accrued expenses, Shares | 389,886 | ||||||
Preferred shares issued for service | 0 | 0 | 162,500 | 162,500 | |||
Loss on debt settlement, accruals and/accounts payable | $ 0 | 0 | 835,829 | 0 | 0 | 0 | 835,829 |
Rounding of shares issued | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Rounding of shares issued, shares | 2,535 | ||||||
Net income (loss) before non-controlling interest | 0 | $ 0 | 0 | (2,169,620) | (11,526) | 0 | (2,181,146) |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jul. 31, 2022 | $ 481 | $ 49 | 14,564,874 | (16,094,108) | (258,638) | 162,500 | (1,787,342) |
Shares, Outstanding, Ending Balance at Jul. 31, 2022 | 4,826,526 | 489,943 | |||||
Dividend on preferred shares | $ 0 | $ 0 | 7,644 | (7,644) | 0 | 0 | 0 |
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2022 | $ 410 | $ 49 | 10,657,126 | (13,916,844) | (247,112) | 0 | (3,506,430) |
Shares, Outstanding, Beginning Balance at Apr. 30, 2022 | 4,103,864 | 487,408 | |||||
Preferred B shares issued for accrued expense - related parties, Value | $ 1,074,250 | ||||||
Preferred B shares issued for accrued expense - related parties, Shares | 279,026 | 279,026 | |||||
Preferred B shares issued for notes payable, Value | $ 322,500 | ||||||
Preferred B shares issued for notes payable, Shares | 53,750 | ||||||
Preferred B shares issued for accounts payable and accrued expenses | 1,505,155 | ||||||
Preferred B shares issued for accounts payable and accrued expenses, Shares | 364,886 | ||||||
Preferred shares issued for service | 294,997 | ||||||
Preferred shares issued for service, Shares | 50,000 | ||||||
Loss on debt settlement, accruals and/accounts payable | 835,829 | ||||||
Retirement of derivative at conversion | 30,274 | ||||||
Net income (loss) before non-controlling interest | (2,231,637) | ||||||
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jan. 31, 2023 | $ 483 | $ 97 | 14,644,092 | (16,147,532) | (273,705) | 162,500 | (1,614,065) |
Shares, Outstanding, Ending Balance at Jan. 31, 2023 | 4,843,230 | 962,480 | |||||
Common stock issued for debt conversion | 30,000 | ||||||
Common stock issued for conversion of A series preferred, Value | 0 | ||||||
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jul. 31, 2022 | $ 481 | $ 49 | 14,564,874 | (16,094,108) | (258,638) | 162,500 | (1,787,342) |
Shares, Outstanding, Beginning Balance at Jul. 31, 2022 | 4,826,526 | 489,943 | |||||
Preferred shares issued for service | $ 2 | $ 0 | 132,490 | 0 | 0 | 0 | 132,492 |
Preferred shares issued for service, Shares | 25,000 | ||||||
Common stock issued for preferred share conversion, Shares | (7,335) | 73,350 | |||||
Net income (loss) before non-controlling interest | $ 0 | $ 0 | 0 | 122,430 | (4,751) | 0 | 117,679 |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Oct. 31, 2022 | $ 483 | $ 59 | 14,552,856 | (15,980,678) | (263,389) | 162,500 | (1,528,169) |
Shares, Outstanding, Ending Balance at Oct. 31, 2022 | 4,844,191 | 588,086 | |||||
Dividend on preferred shares | $ 0 | $ 0 | 9,000 | (9,000) | 0 | 0 | 0 |
Common stock issued for debt conversion | 0 | $ 2 | 8,998 | 0 | 0 | 0 | 9,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 27,439 | ||||||
Common stock issued for conversion of A series preferred, Value | $ 0 | $ 8 | (8) | 0 | 0 | 0 | 0 |
Preferred B shares issued for notes payable, Value | 322,500 | ||||||
Preferred B shares issued for notes payable, Shares | 53,750 | ||||||
Common stock issued for Series D preferred shares | $ 0 | $ 3 | (3) | 0 | 0 | 0 | 0 |
Common stock issued for Series D preferred shares, Shares | (4) | 27,356 | |||||
Net income (loss) before non-controlling interest | $ 0 | $ 0 | 13,500 | (157,854) | (10,316) | 0 | (168,170) |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jan. 31, 2023 | $ 483 | $ 97 | 14,644,092 | (16,147,532) | (273,705) | 162,500 | (1,614,065) |
Shares, Outstanding, Ending Balance at Jan. 31, 2023 | 4,843,230 | 962,480 | |||||
Common stock issued for debt conversion | $ 0 | $ 0 | 20,975 | 0 | 0 | 0 | 21,000 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 250,139 | ||||||
Common stock issued for Series B preferred share conversion, Value | $ (1) | $ 10 | (9) | 0 | 0 | 0 | 0 |
Common stock issued for Series B preferred share conversion, Shares | (9,690) | 96,899 | |||||
Preferred B issued for accrued expenses Value | $ 1 | $ 0 | 17,499 | 0 | 0 | 0 | 17,500 |
Preferred B issued for accrued expenses, Shares | 9,333 | ||||||
Dividend on Series D preferred, Value | 0 | 0 | 9,000 | (9,000) | 0 | 0 | 0 |
Retirement of debt at conversion, Value | 0 | 0 | 30,274 | 0 | 0 | 0 | 30,274 |
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2023 | $ 483 | $ 181 | 14,905,851 | (16,527,130) | (299,035) | 0 | (1,919,650) |
Shares, Outstanding, Beginning Balance at Apr. 30, 2023 | 4,839,616 | 1,803,042 | |||||
Common stock issued for cash, Value | $ 0 | $ 20 | 9,980 | 0 | 0 | 0 | 10,000 |
Common stock issued for cash, Shares | 200,000 | ||||||
Common stock issued for Series D preferred shares | $ 12 | 0 | 0 | 0 | 0 | 12 | |
Common stock issued for Series D preferred shares, Shares | (3) | 115,955 | |||||
Net income (loss) before non-controlling interest | $ 0 | $ 0 | 0 | (127,474) | (9,055) | 0 | (136,529) |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jul. 31, 2023 | $ 483 | $ 277 | 14,957,155 | (16,661,960) | (308,090) | 0 | (2,012,135) |
Shares, Outstanding, Ending Balance at Jul. 31, 2023 | 4,832,405 | 2,760,759 | |||||
Dividend on preferred shares | $ 0 | $ 0 | 7,356 | (7,356) | 0 | 0 | 0 |
Common stock issued for debt conversion | 0 | $ 57 | 14,629 | 0 | 0 | 0 | 14,686 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 569,681 | ||||||
Common stock issued for Series B preferred share conversion, Value | $ 0 | $ 7 | (15) | 0 | 0 | 0 | (8) |
Common stock issued for Series B conversion, Shares | (7,208) | 72,081 | |||||
Derivative at conversion | $ 0 | $ 0 | 19,354 | 0 | 0 | 0 | 19,354 |
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2023 | $ 483 | $ 181 | 14,905,851 | (16,527,130) | (299,035) | 0 | (1,919,650) |
Shares, Outstanding, Beginning Balance at Apr. 30, 2023 | 4,839,616 | 1,803,042 | |||||
Preferred B shares issued for accrued expense - related parties, Value | $ 15,140 | ||||||
Preferred B shares issued for accrued expense - related parties, Shares | 85,000 | ||||||
Preferred shares issued for service | $ 15,138 | ||||||
Common stock issued for preferred shares, Shares | 482,972 | 5,125,554 | |||||
Retirement of derivative at conversion | 41,173 | ||||||
Net income (loss) before non-controlling interest | (438,460) | ||||||
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jan. 31, 2024 | $ 443 | $ 909 | 15,053,834 | (16,978,037) | (308,657) | 0 | (2,231,508) |
Shares, Outstanding, Ending Balance at Jan. 31, 2024 | 4,441,641 | 9,077,038 | |||||
Common stock issued for debt conversion | 25,996 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,262,617 | ||||||
Common stock issued for conversion of A series preferred, Value | (39) | ||||||
Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Jul. 31, 2023 | $ 483 | $ 277 | 14,957,155 | (16,661,960) | (308,090) | 0 | (2,012,135) |
Shares, Outstanding, Beginning Balance at Jul. 31, 2023 | 4,832,405 | 2,760,759 | |||||
Preferred shares issued for service | $ 7 | $ 0 | $ 15,133 | $ 0 | $ 0 | $ 0 | $ 15,140 |
Preferred shares issued for service, Shares | 85,000 | ||||||
Common stock issued for preferred share conversion, Shares | (46,500) | 465,000 | |||||
Common stock issued for cash, Shares | 0 | 0 | 21,819 | 0 | 0 | 0 | 21,819 |
Net income (loss) before non-controlling interest | $ 0 | $ 0 | $ 0 | $ (179,762) | $ 645 | $ 0 | $ (179,117) |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Oct. 31, 2023 | $ 486 | $ 378 | 15,009,693 | (16,849,078) | (307,445) | 0 | (2,145,964) |
Shares, Outstanding, Ending Balance at Oct. 31, 2023 | 4,870,905 | 3,769,657 | |||||
Dividend on preferred shares | $ 0 | $ 0 | 7,356 | (7,356) | 0 | 0 | 0 |
Common stock issued for debt conversion | 0 | $ 54 | 8,275 | 0 | 0 | 0 | 8,329 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 543,898 | ||||||
Common stock issued for conversion of A series preferred, Value | $ (4) | $ 47 | (45) | 0 | 0 | 0 | 0 |
Preferred B shares issued for notes payable, Shares | 53,750 | ||||||
Common stock issued for Series D preferred shares | $ 0 | $ 18 | (18) | 0 | 0 | 0 | 0 |
Common stock issued for Series D preferred shares, Shares | 179,908 | ||||||
Net income (loss) before non-controlling interest | 0 | $ 0 | 0 | (121,603) | (1,212) | 0 | (122,815) |
Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Jan. 31, 2024 | $ 443 | $ 909 | 15,053,834 | (16,978,037) | (308,657) | 0 | (2,231,508) |
Shares, Outstanding, Ending Balance at Jan. 31, 2024 | 4,441,641 | 9,077,038 | |||||
Common stock issued for debt conversion | $ 15 | 2,965 | 0 | 0 | 0 | 2,960 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 149,038 | ||||||
Common stock issued for Series B conversion, Shares | (39,027) | 390,270 | |||||
Common stock issued for Series B conversion | $ (4) | $ 39 | 6 | 0 | 0 | 0 | 39 |
Common stock issued for Serries A conversion | $ (39) | $ 390 | (390) | 0 | 0 | 0 | (39) |
Common stock issued for Serries A conversion, Shares | (390,234) | 3,902,340 | |||||
Common stock issued for convertible debt | $ 0 | $ 69 | 34,222 | 0 | 0 | 0 | 34,291 |
Common stock issued for debt payment, Shares | 685,825 | ||||||
Common stock issued for convertible debt | $ 0 | $ 0 | $ 7,356 | $ (7,356) | $ 0 | $ 0 | $ 0 |
Dividend issued on series D preferred shares, Shares | (3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Cash flows from operating activities | ||
Net income (loss) before non-controlling interest | $ (438,460) | $ (2,231,637) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Preferred shares issued for service | 15,138 | 294,997 |
Amortization of debt discount to interest expense | 0 | 76,126 |
(Gain) loss on settlement of accrued payments | 0 | 849,329 |
(Gain) loss on derivative liability | 16,528 | (216,920) |
Depreciation | 0 | 8,676 |
Change in operating assets and liabilities | ||
(Increase) decrease in accounts receivable | 0 | 0 |
(increase) decrease in inventory | 26,913 | (33,476) |
Increase (decrease) in accounts payable and accrued expenses | 154,209 | 841,564 |
Customer deposits | 10,000 | 0 |
Increase in payables - related parties | 210,334 | 327,739 |
Net cash provided by (used in) operating activities | (5,338) | (83,602) |
Net Cash Provided by (Used in) Investing Activities | ||
Proceeds from notes payable- related party | 5,338 | 115,600 |
Repayment of notes payable | (30,500) | (30,000) |
Proceeds from convertible notes | 20,000 | 0 |
Proceeds from common stock for cash | 10,000 | 0 |
Net Cash Provided by (Used in) Financing Activities | 4,838 | 85,600 |
Net increase (decrease) in cash | (500) | 1,998 |
Cash at beginning of period | 804 | 5,761 |
Cash at end of period | 304 | 7,759 |
Supplemental Cash Flow Information | ||
Interest Paid | 0 | 0 |
Income tax Paid | 0 | 0 |
Noncash financing and investing activities | ||
Retirement of derivative at conversion | 41,173 | 30,274 |
Interest accrued on preferred shares | 14,712 | 25,645 |
Common stock issued for debt conversion | 25,996 | 30,000 |
Common stock issued for conversion of preferred shares | (8) | 0 |
Series B preferred issued for notes payable and accrued interest | 0 | 322,500 |
Series B preferred issued for accrued expense | 34,292 | 1,522,618 |
Series B preferred issued for accrued expense - relate parties | 0 | 1,704,250 |
Common stock issued for conversion of A series preferred, Value | $ (39) | $ 0 |
NOTE - 1_ BASIS OF PRESENTATION
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION | NOTE – 1: BASIS OF PRESENTATION AND ORGANIZATION Defense Technologies International Corp. (the "Company ") was incorporated in the State of Delaware on May 27, 1998. Effective June 15, 2016, the Company changed its name to Defense Technologies International Corp. from Canyon Gold Corp. to more fully represent the Company's expansion goals into the advanced technology sector. On October 19, 2016, the Company entered into a Definitive Agreement with Controlled Capture Systems, LLC (“CCS”), representing the inventor of the technology and assets previously acquired by DTC, that included a new exclusive Patent License Agreement and Independent Contractor agreement. Under the license agreement with CCS, the Company acquired the world-wide exclusive rights and privileges to the CCS security technology, patents, products and improvements. The Company agreed to pay CCS an initial licensing fee of $25,000 and to pay ongoing royalties as defined in the Definitive Agreement. On May 30, 2018, the Company and Control Capture Systems, LLC amended their license agreement as follows (1) Royalty payments of 5% of gross sale from the license agreement will be calculated and paid quarterly with a minimum of $12,500 paid each quarter (2) All payment will be in US dollars or stock of the Company and or its subsidiary. The value of the stock will be a discount to the market of 25% of the average trading price for the 10 days prior to conversion. The number of shares received by Control Capture prior to any reverse split are anti-dilutive (3)Invoices for parts and materials will be billed separate of the license fees noted above Effective January 12, 2017, Passive Security Scan, Inc. ("PSSI") was incorporated in the state of Utah as subsidiary controlled by the Company. The Company transferred to PSSI its exclusive world-wide license to the defense, detection and protection security products previously acquired by the Company. The Company currently owns 76.28% of PSSI with 23.72% acquired by several individuals and entities. The Company’s unique technology works precisely to specifications as required by our technology and as confirmed in the market. All sales and marketing activities will be executed through PSSI. On June 28, 2022 the Company’s common shares were reversed with each shareholder receiving one share of common stock for each 500 shares held before the reverse split. The number of shares throughout the disclosure have been retrospectively adjusted to represent the number of shares after the reverse split. Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The Company’s fiscal year end is April 30. The interim condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2023 included in its Annual Report on Form 10-K filed with the SEC. The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position as of January 31, 2024, the consolidated results of its operations and its consolidated cash flows for the nine months ended January 31, 2024 and 2023. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full fiscal year. Consolidation and Non-Controlling Interest These consolidated financial statements include the accounts of the Company, and its majority-owned subsidiary, PSSI, from its formation on January 12, 2017 to date. All inter-company transactions and balances have been eliminated. Inventory Inventories are stated at the lower of cost using the first-in, first-out (FIFO) cost method of accounting. Inventories as of January 31, 2024 consist of parts used in assembly of the units being sold plus work in progress and finished goods. As of January 31, 2024, the value of the inventory was $7,599, compared to an inventory value of $34,512 as of April 30, 2023. Equipment Equipment is carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Net Income (Loss) per Common Share Basic net income or loss per common share is calculated by dividing the Company’s net income or loss by the weighted average number of common shares outstanding during the period. Diluted net income or loss per common share is calculated by dividing the Company’s net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding. Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method. As of January 31, 2024, the Company had potential shares issuable under convertible preferred shares and convertible debt for a total of 45,208,943. Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) No 2020-06 Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contract’s in an Entity’s own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU simplifies the diluted net income per share calculation in certain areas. The ASU is effective for annual and interim periods has been amended for small businesses to beginning after December 15, 2023 as early adoption was permitted for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company recognizes there will be an impact on how conversion are calculated which may require recognitions of gains or losses. However, the Company believes, through their evaluation, there is no material impact this new guidance will have on its financial statements. Revenue Recognition In April 2016, the FASB issued ASU 2016–10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. ASC Topic 606 prescribes a new five-step model entities should follow in order to recognize revenue in accordance with the core principle. These five steps are: 1. Identify the contract(s) with a customer 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfied the performance obligations. Effective October 31, 2018, the Company implemented the transition using the modified retrospective method of transition. Under this method, the determination date of open contracts which could affect any adjustments was October 31, 2018. The open contracts at the time period are the unfulfilled portions of the maintenance contracts. The Company has one revenue stream, of which the revenue is recognized in accordance to the five steps included in Topic 606. The revenue stream is the sale of finished screening units. Revenue for the sale of the screening units is both directly to end users and through the distributor and is recognized upon the shipment of the unit from the Company to the end customer. |
NOTE - 2_ GOING CONCERN
NOTE - 2: GOING CONCERN | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 2: GOING CONCERN | NOTE – 2: GOING CONCERN These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern. Through January 31, 2024, the Company had revenues of $49,012, has accumulated deficit of $16,978,037 and a working capital deficit of $2,231,508 and expects to incur further losses in the development of its business. The Company has not yet established an ongoing source of revenue sufficient to cover operating costs, which raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. Management plans to continue to provide for the Company's capital needs during the year ending April 30, 2024 by issuing debt and equity securities and by the continued support of its related parties. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. |
NOTE - 3_ INVESTMENTS
NOTE - 3: INVESTMENTS | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 3: INVESTMENTS | NOTE – 3: INVESTMENTS Effective January 12, 2017, Passive Security Scan, Inc. ("PSSI") was incorporated in the state of Utah as subsidiary controlled by the Company. The Company transferred to PSSI its exclusive world-wide license to the defense, detection and protection security products previously acquired by the Company for 17,500 shares of PSSI valued at $378,600 for 76.28% of PSSI. The balance of PSSI was acquired by four individuals and entities. The Company plans to continue the development of the technology and conduct all sales and marketing activities in PSSI. The investment was impaired as of April 30, 2019. |
NOTE - 4_ RELATED PARTY TRANSAC
NOTE - 4: RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 4: RELATED PARTY TRANSACTIONS | NOTE – 4: RELATED PARTY TRANSACTIONS Management and administrative services are currently compensated as per a Service Agreement between the Company and its Chief Executive Officer and Director executed on April 25, 2016 and a Service Agreement with the subsidiary PSSI executed on January 12, 2017, a Service Agreement between the Company and a Director executed on May 20, 2016, and an Administration Agreement with a related party executed on March 15, 2011 and renewed on May 1, 2017 and renewed in August 21, 2020 plus the assumption of a Service Agreement with the subsidiary PSSI assumed on January 12, 2017 and renewed on August 21, 2020, whereby the fee is based on services provided and invoiced by the related parties on a monthly basis and the fees are paid in cash when possible or with common stock. The Company also, from time to time, has some of its expenses paid by related parties with the intent to repay. These types of transactions, when incurred, result in payables to related parties in the Company’s consolidated financial statements as a necessary part of funding the Company’s operations. On May 1, 2022, the Company entered into a loan agreement with EMAC Handels AG for short term loans up to $100,000. The loans bear interest at 6% per annum. As of January 31, 2024, the outstanding balance on the loan agreement was $138,988 plus accrued interest. During the nine months period ended January 31, 2023, the Company issued 279,026 series B preferred shares to three related parties for the payment of $1,074,250 of accrued expenses. During the nine months period ended January 31, 2024, the Company issued 85,000 series B preferred shares to a related party with a value of $15,140. During the nine months period ended January 31, 2024, the Company issued 3,902,340 shares of common stock for the conversion of 390,234 of series A preferred shares.to a related party. As of January 31, 2024 and April 30, 2023, the Company had payable balances due to related parties totaling $1,120,858 and $910,524, respectively. |
NOTE - 5_ NOTES PAYABLE
NOTE - 5: NOTES PAYABLE | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 5: NOTES PAYABLE | NOTE – 5: NOTES PAYABLE On March 5, 2018, the Company subsidiary PSSI entered into a note agreement with Premium Marketing Associates, LLC for $25,000. The funds were designated for use in a marketing agreement with the Edward Fitzgerald Group for raising funds for PSSI. The note was to be repaid from investment fund generated by the Fitzgerald group plus 15% of the funds generated are paid to the investor. On July 6, 2018, the Company signed an investment agreement with a third party. Under the terms of the agreement the Company received $250,000 through the Company attorney’s trust account. On July 12, 2018, the Company received the $250,000 less wire and legal payment of $10,045. In addition the noteholder will receive a royalty of 5% up to $250,000 and then a royalty of 3.5% for two years thereafter. The note holder will receive 150,000 shares of the Company’s common stock plus 100,000 warrants to purchase common shares within three years at $2.50 per share which expired on April 30, 2022. On July 29, 2022, the Company issued 53,750 shares of series B preferred for the outstanding principal of $300,000 and interest of $22,500 leaving the balance due at zero. On July 18, 2018, the Company entered into a promissory note of $114,226.26 with interest rate of 8% per annum with Haynie & Company the Company’s former auditors. Under the terms of the agreement commencing August 15, 2018 the Company is to pay Haynie $5,000 per month. In addition the Company shall pay the noteholder 20% of any funding event of private or public equity. On July 11, 2022, the Company negotiated a settlement of $37,500 with an initial payment of $30,000 and the balance due of $7,500 thirty days after the initial payment. As of January 31, 2024, the $7,500 had not been paid leaving the balance due on the note of $20,042. On May 1, 2022, the Company entered into a loan agreement with EMAC Handels AG for short term loans up to $100,000. The loans bear interest at 6% per annum. As of January 31, 2024, the outstanding balance on the loan agreement was $138,988 plus accrued interest. On December 11, 2023 an affiliate of a related party issued the Company a demand note of $9,338 with an interest rate of 6 percent. As of January 31, 2024 and April 30, 2023, the outstanding balances of notes payable were $159,030 and $179,692, respectively. |
NOTE - 6. CONVERTIBLE DEBT
NOTE - 6. CONVERTIBLE DEBT | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 6. CONVERTIBLE DEBT | NOTE – 6: CONVERTIBLE DEBT On March 10, 2016, the Company entered into a convertible promissory note for $17,000 with ACM Services GmbH, which bears interest at an annual rate of 6% and is convertible into shares of the Company’s common stock at $0.05 per share. The Company recorded a debt discount and a beneficial conversion feature of $17,000 at the inception of the note. As of January 31, 2024, the balance of the notes was $7,000 plus interest. On August 3, 2016, the Company entered into a convertible promissory note with an institutional investor for $25,000, which bears interest at an annual rate of 12% and matures on February 4, 2017. The note holder has the right, after a period of 180 days of the note, to convert the note and accrued interest into shares of the common stock of the Company at a discounted price per share equal to 50% to 65% of the market price of the Company’s common stock, depending upon the stock’s liquidity as determined by the note holder’s broker. On March 20, 2017, the lender converted $12,500 principal into 1,000,000 shares of the Company’s common stock. As of January 31, 2024, the note has a balance of $12,500 plus interest and is currently in default. On February 16, 2018, Passive Security Scan Inc, a subsidiary of the Company, issued a $20,000 convertible note to Stuart Young. The note bears interest at 6% and is convertible after 6 months from the date of the note into stock of either PSSI or the Company at 50% discount to the 10 day trailing trading value of the Company’s common stock. On March 5, 2018, the Company subsidiary PSSI entered into a note agreement with Premium Marketing Associates, LLC for $25,000. The funds were designated for use in a marketing agreement with the Edward Fitzgerald Group for raising funds for PSSI. The note was to be repaid from investment fund generated by the Fitzgerald group plus 15% of the funds generated are paid to the investor. As of January 31, 2024, the note was forgiven and the Company recorded a $25,000 gain on debt for the period. On October 4, 2018, the Company entered into an agreement with RAB Investments AG to consolidate all RAB outstanding notes issued by the Company prior to October 31, 2018. Under the terms of the agreement the Company agreed to accept a six percent interest to be calculated on all the notes since their inception. The agreement resulted in a new note for $330,626 which included the additional interest and retired the original notes. On March 10, 2022, the Company issued 657,895 shares of series A preferred with a value of $25,000 for payment against the convertible note. On November 25, 2023 the Company issued 685,825 shares of commons stock with a value of $34,291 as a payment against the note. As of January 31, 2024 and April 30, 2023, the outstanding balance of the note were $259,585 and $278,377 plus interest, respectively. On March 22, 2022, the Company entered into a one year convertible promissory note for $91,350 with Red Road Holdings, LLC. The note has an OID discount of $12,600, bears interest at an annual rate of 9% and is convertible into shares of the Company’s common stock at 80% of the lowest trading price 15 days prior to conversion. The note at initial issuance using the Black Scholes model with computed volatility of 338% Discount rate of 0.25%, The Company recorded a debt discount of $91,350 at the inception of the note. As of January 31, 2024 , the principal balance of the note and the interest was paid in full. During the nine months period ended January 31, 2023 the Company issued 53,750 shares of series B preferred with a value of $322,500 for the payment of note of $300,000 and interest of $22,500. During the nine months period ended January 31, 2023, the Company issued 250,139 shares of common stock with a value of $21,000 for the conversion of debt. During the nine months period ended January 31, 2024, the Company issued 1,262,617 shares of common stock with a value of $25,996 for the conversion of debt. As of January 31, 2024, and April 30, 2023, the convertible debt outstanding, net of discount, was $279,085 and $319,767, respectively. |
NOTE - 7. FAIR VALUE MEASUREMEN
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES | NOTE – 7: FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES As defined in (Financial Accounting Standards Board ASC 820), fair value is 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 (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs 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 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 – Level 2 - and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. Level 3 – As of January 31, 2024, the Company believes the amounts reported for cash, payables, accrued liabilities and amounts due to related parties approximate their fair values due to the nature or duration of these instruments. The following table represents the change in the fair value of the derivative liabilities during the nine months ended January 31, 2024: Level 1 Level 2 Level 3 Balance at April 30, 2023 $ -- $ -- $ 65,826 Retirement of debt at conversion (41,173) Change in fair value of derivative liability -- -- 16,528 Balance at January 31, 2024 $ -- $ -- $ 41,181 The estimated fair value of the derivative liabilities at January 31, 2024 was calculated using the Binomial Lattice pricing model with the following assumptions: Risk-free interest rate 5.20% Expected life in years 0.10 Dividend yield 0% Expected volatility 315.00% |
NOTE - 8. EQUITY
NOTE - 8. EQUITY | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 8. EQUITY | NOTE – 8: EQUITY Common Stock On April 26, 2022, the Company filed an amendment to the Articles of Incorporation increasing the authorized shares of common stock to 600,000,000 with a par value of $0.0001 and the total number of preferred shares at 20,000,000, par value $0.0001. During the nine months period ended January 31, 2023, The Company issued 27,439 shares of common stock for the conversion of $9,000 of convertible debt. During the nine months period ended January 31, 2023, the Company issued 250,139 shares of common stock for the conversion of $21,000 of convertible debt. During the nine months period ended January 31, 2023, the Company issued 96,899 shares of common stock for the conversion of 9,690 series B preferred shares. During the nine months period ended January 31, 2024, the Company issued 200,000 shares of common stock with a value of $10,000 for cash. During the nine months period ended January 31, 2024, the Company issued 5,125,554 shares of common stock for the conversion of 482,972 shares of preferred stock. During the nine months period ended January 31, 2024, the Company issued 1,262,617 shares of common stock with a value of $25,996 for the conversion of debt. Preferred Stock The Company has 20,000,000 shares of $0.0001 par value preferred stock authorized and has designated a Series A preferred stock, a Series B preferred stock, a series C preferred stock and a series D preferred stock. The Company has authorized 5,000,000 series A and B shares each plus 1,500,000 each of series C and D preferred shares Each share of the Series A preferred stock is convertible into ten common shares and carries voting rights on the basis of 100 votes per share. Each share of the Series B preferred stock is convertible into ten common shares and carries no voting rights. Each of the Series C preferred shares are non-voting and are convertible to common stock as a “Blank Check” designation with terms and conditions as set by the board of directors. Each of the series D preferred shares are non-voting and may be converted into common shares as a Blank Check” designation with the terms and conditions as set forth by the board of directors. On April 26, 2022, the Company filed an amendment to the Articles of Incorporation increasing the authorized shares of common stock to 600,000,000 with a par value of $0.0001 and the total number of preferred shares at 20,000,000, par value $0.0001. During the nine month period ended January 31, 2023, the Company issued 697,662 shares of series B preferred with for the reduction of $2,901,905 of notes payable and accrued expenses. The issuance consisted of 279,026 shares to related parties for accrued expense of $1,074,250, 53,750 shares for the payment of $322,500 of notes payable and interest and 364,886 shares for the payment of $1,505,155 of accounts payable and accrued expenses, The Company realized a loss on settlement of debt and accruals of $835,829 from the issuance of the series B preferred. The fair value of the shares issued were determined by the closing price of the number of common shares to be issued at the conversion of 10 common shares for each series B preferred share. During the nine months period ended January 31, 2023, the Company issued 50,000 shares of series B preferred for $294,992 for service. During the nine months period ended January 31, 2024, the Company issued 5,125,554 shares of common stock for the conversion of 482,972 shares of preferred stock. As of January 31, 2024 the Company had 4,441,641 shares of preferred stock consisting of; 2,535,135 Series A shares, 1,905,920 Series B shares and 586 Series D preferred shares issued and outstanding. The conversion price for the remaining 586 series D shares issued is $0.50 or 80% of the lowest trading price 20 days prior to conversion. |
NOTE - 9. COMMITMENTS AND CONTI
NOTE - 9. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 9. COMMITMENTS AND CONTINGENCIES | NOTE – 9: COMMITMENTS AND CONTINGENCIES The Company has the following material commitments as of January 31, 2024 a) Administration Agreement with EMAC Handel’s AG, renewed effective May 1, 2017 for a period of three years and amended May 1, 2021. Monthly fee for administration services of $7,500, office rent of $250 and office supplies of $125. Extraordinary expenses are invoiced by EMAC on a quarterly basis. The fee may be paid in cash and or with common stock. b) Service Agreement signed April 25, 2016 with Merrill W. Moses, President, Director and CEO, for services of $7,500 per month beginning May 2016 and the issuance of 233 restricted common shares of the Company. The fees may be paid in cash and or with common stock. c) Service Agreement signed May 20, 2016 with Charles C. Hooper, Director, for services of $5,000 per month beginning May 2016 and the issuance of 233 restricted common shares of the Company. The fees may be paid in cash and or with common stock. As of July 31, 2023, Mr. Hooper was terminated from the board of directors. d) Administration and Management Agreement of PSSI signed January 12, 2017 with EMAC Handel Investments AG, for general fees of $7,500 per month, office rent of $250 and telephone of $125 beginning January 2017 and amended May 1, 2021, the issuance of 2,000 common shares of PSSI and a 12% royalty calculated on defines sales revenues payable within 10 days after the monthly sales. e) Service Agreement of PSSI signed January 12, 2017 with Merrill W. Moses, President, Director and CEO, for services of $2,500 per month beginning February 2017 and the issuance of 333 common shares of PSSI. f) Business Development and Consulting Agreement of PSSI signed January 15, 2017 with WSMG Advisors, Inc., for finder’s fees of 10% of funding raised for PSSI and the issuance of 1,000 common shares of PSSI. On May 30, 2018, the Company and Control Capture Systems, LLC amended their license agreement as follows. · · · |
NOTE - 10. SUBSEQUENT EVENTS
NOTE - 10. SUBSEQUENT EVENTS | 9 Months Ended |
Jan. 31, 2024 | |
Notes | |
NOTE - 10. SUBSEQUENT EVENTS | NOTE – 0: SUBSEQUENT EVENTS The Company has evaluated subsequent events to determine events occurring after January 31, 2024 through the filing of this report that would have a material impact on the Company’s financial results or require disclosure other than those noted above. |
NOTE - 1_ BASIS OF PRESENTATI_2
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Basis of Presentation (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The Company’s fiscal year end is April 30. The interim condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2023 included in its Annual Report on Form 10-K filed with the SEC. The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s consolidated financial position as of January 31, 2024, the consolidated results of its operations and its consolidated cash flows for the nine months ended January 31, 2024 and 2023. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full fiscal year. |
NOTE - 1_ BASIS OF PRESENTATI_3
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Consolidation and Non-Controlling Interest (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Consolidation and Non-Controlling Interest | Consolidation and Non-Controlling Interest These consolidated financial statements include the accounts of the Company, and its majority-owned subsidiary, PSSI, from its formation on January 12, 2017 to date. All inter-company transactions and balances have been eliminated. |
NOTE - 1_ BASIS OF PRESENTATI_4
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Inventory (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Inventory | Inventory Inventories are stated at the lower of cost using the first-in, first-out (FIFO) cost method of accounting. Inventories as of January 31, 2024 consist of parts used in assembly of the units being sold plus work in progress and finished goods. As of January 31, 2024, the value of the inventory was $7,599, compared to an inventory value of $34,512 as of April 30, 2023. |
NOTE - 1_ BASIS OF PRESENTATI_5
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Equipment (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Equipment | Equipment Equipment is carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. |
NOTE - 1_ BASIS OF PRESENTATI_6
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Use of Estimates (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
NOTE - 1_ BASIS OF PRESENTATI_7
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Impairment of Long-lived Assets (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. |
NOTE - 1_ BASIS OF PRESENTATI_8
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Net Income (Loss) Per Common Share (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Net Income (Loss) Per Common Share | Net Income (Loss) per Common Share Basic net income or loss per common share is calculated by dividing the Company’s net income or loss by the weighted average number of common shares outstanding during the period. Diluted net income or loss per common share is calculated by dividing the Company’s net income or loss by sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents then outstanding. Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and warrants, using the treasury stock method and the average market price per share during the period, and conversion of convertible debt, using the if converted method. As of January 31, 2024, the Company had potential shares issuable under convertible preferred shares and convertible debt for a total of 45,208,943. |
NOTE - 1_ BASIS OF PRESENTATI_9
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) No 2020-06 Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contract’s in an Entity’s own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU simplifies the diluted net income per share calculation in certain areas. The ASU is effective for annual and interim periods has been amended for small businesses to beginning after December 15, 2023 as early adoption was permitted for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company recognizes there will be an impact on how conversion are calculated which may require recognitions of gains or losses. However, the Company believes, through their evaluation, there is no material impact this new guidance will have on its financial statements. |
NOTE - 1_ BASIS OF PRESENTAT_10
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Revenue Recognition (Policies) | 9 Months Ended |
Jan. 31, 2024 | |
Policies | |
Revenue Recognition | Revenue Recognition In April 2016, the FASB issued ASU 2016–10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. ASC Topic 606 prescribes a new five-step model entities should follow in order to recognize revenue in accordance with the core principle. These five steps are: 1. Identify the contract(s) with a customer 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfied the performance obligations. Effective October 31, 2018, the Company implemented the transition using the modified retrospective method of transition. Under this method, the determination date of open contracts which could affect any adjustments was October 31, 2018. The open contracts at the time period are the unfulfilled portions of the maintenance contracts. The Company has one revenue stream, of which the revenue is recognized in accordance to the five steps included in Topic 606. The revenue stream is the sale of finished screening units. Revenue for the sale of the screening units is both directly to end users and through the distributor and is recognized upon the shipment of the unit from the Company to the end customer. |
NOTE - 7. FAIR VALUE MEASUREM_2
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES: Schedule of Derivative Liability Related to the Conversion Feature (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Tables/Schedules | |
Schedule of Derivative Liability Related to the Conversion Feature | Level 1 Level 2 Level 3 Balance at April 30, 2023 $ -- $ -- $ 65,826 Retirement of debt at conversion (41,173) Change in fair value of derivative liability -- -- 16,528 Balance at January 31, 2024 $ -- $ -- $ 41,181 |
NOTE - 7. FAIR VALUE MEASUREM_3
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES: Schedule of Assumptions Used (Tables) | 9 Months Ended |
Jan. 31, 2024 | |
Tables/Schedules | |
Schedule of Assumptions Used | Risk-free interest rate 5.20% Expected life in years 0.10 Dividend yield 0% Expected volatility 315.00% |
NOTE - 1_ BASIS OF PRESENTAT_11
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION (Details) | 9 Months Ended |
Jan. 31, 2024 | |
Details | |
Entity Incorporation, State Country Name | Delaware |
Entity Incorporation, Date of Incorporation | May 27, 1998 |
NOTE - 1_ BASIS OF PRESENTAT_12
NOTE - 1: BASIS OF PRESENTATION AND ORGANIZATION: Inventory (Details) - USD ($) | Jan. 31, 2024 | Apr. 30, 2023 |
Details | ||
Inventory | $ 7,599 | $ 34,512 |
NOTE - 2_ GOING CONCERN (Detail
NOTE - 2: GOING CONCERN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 187 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | |
Details | |||||
Net income (loss) attributed to the Company | $ 121,603 | $ 157,854 | $ 428,389 | $ 2,205,043 | $ 16,978,037 |
Working capital deficit | $ 2,231,508 | $ 2,231,508 | $ 2,231,508 |
NOTE - 4_ RELATED PARTY TRANS_2
NOTE - 4: RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2024 | Jul. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Apr. 30, 2023 | |
Note payable- related party | $ 138,988 | $ 138,988 | $ 115,600 | ||
Preferred B shares issued for accrued expense - related parties, Shares | 85,000 | 279,026 | |||
Preferred B shares issued for accrued expense - related parties, Value | $ 1,074,250 | $ 15,140 | $ 1,074,250 | ||
Payables - related parties | $ 1,120,858 | $ 1,120,858 | $ 910,524 | ||
Common Stock | |||||
Preferred B shares issued for accrued expense - related parties, Value | $ 0 | ||||
Common stock issued for Serries A conversion, Shares | 3,902,340 | ||||
Preferred Stock | |||||
Preferred B shares issued for accrued expense - related parties, Shares | 279,026 | 279,026 | |||
Preferred B shares issued for accrued expense - related parties, Value | $ 28 | ||||
Common stock issued for Serries A conversion, Shares | (390,234) |
NOTE - 5_ NOTES PAYABLE (Detail
NOTE - 5: NOTES PAYABLE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2024 | Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | Dec. 11, 2023 | Apr. 30, 2023 | |
Notes payable | $ 20,042 | $ 64,092 | ||||
Notes Payable | 159,030 | 179,692 | ||||
Note payable- related party | $ 138,988 | 115,600 | ||||
Demand note | $ 9,338 | |||||
Preferred Stock | ||||||
Preferred B shares issued for notes payable, Shares | 53,750 | 53,750 | 53,750 | 53,750 | ||
March 2018 Note Payable | ||||||
Notes payable | 25,000 | |||||
July 6, 2018 Note Payable | ||||||
Notes payable | 250,000 | |||||
July 18, 2018 Note Payable | ||||||
Notes payable | $ 114,226.26 | |||||
Notes Payable | $ 20,042 |
NOTE - 6. CONVERTIBLE DEBT (Det
NOTE - 6. CONVERTIBLE DEBT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||||||
Jan. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Apr. 30, 2023 | Mar. 22, 2022 | Mar. 10, 2022 | Oct. 04, 2018 | Mar. 05, 2018 | Aug. 03, 2016 | Mar. 10, 2016 | |
Convertible notes payable, net of discount | $ 279,085 | $ 279,085 | $ 319,767 | ||||||||||||
Preferred B shares issued for notes payable, Value | $ 322,500 | $ 322,500 | $ 322,500 | ||||||||||||
Common stock issued for debt conversion | $ 2,960 | $ 8,329 | $ 14,686 | $ 21,000 | $ 9,000 | $ 25,996 | $ 30,000 | ||||||||
Preferred Stock | |||||||||||||||
Preferred B shares issued for notes payable, Shares | 53,750 | 53,750 | 53,750 | 53,750 | |||||||||||
Preferred B shares issued for notes payable, Value | $ 4 | ||||||||||||||
Common stock issued for debt conversion | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Common Stock | |||||||||||||||
Preferred B shares issued for notes payable, Value | $ 0 | ||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 149,038 | 543,898 | 569,681 | 250,139 | 27,439 | 1,262,617 | |||||||||
Common stock issued for debt conversion | $ 15 | $ 54 | $ 57 | $ 0 | $ 2 | ||||||||||
Convertible Note Payable 1 | |||||||||||||||
Convertible notes payable, net of discount | 7,000 | $ 7,000 | $ 17,000 | ||||||||||||
Preferred Stock Dividends, Shares | 17,000 | ||||||||||||||
Convertible Note Payable 2 | |||||||||||||||
Convertible notes payable, net of discount | 12,500 | $ 12,500 | $ 25,000 | ||||||||||||
Convertible Note Payable 3 | |||||||||||||||
Convertible notes payable, net of discount | 20,000 | 20,000 | |||||||||||||
Convertible Note Payable 4 | |||||||||||||||
Convertible notes payable, net of discount | $ 25,000 | ||||||||||||||
Convertible Note Payable 5 | |||||||||||||||
Convertible notes payable, net of discount | $ 330,626 | ||||||||||||||
Convertible Note Payable 6 | |||||||||||||||
Convertible notes payable, net of discount | $ 259,585 | $ 259,585 | $ 278,377 | $ 25,000 | |||||||||||
Convertible Note Payable 7 | |||||||||||||||
Convertible notes payable, net of discount | $ 91,350 |
NOTE - 7. FAIR VALUE MEASUREM_4
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES: Schedule of Derivative Liability Related to the Conversion Feature (Details) - USD ($) | 9 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Apr. 30, 2023 | |
Retirement of derivative at conversion | $ 41,173 | $ 30,274 | |
(Gain) loss on derivative liability | 16,528 | $ (216,920) | |
Fair Value, Inputs, Level 3 | |||
Derivative Liability | 41,181 | $ 65,826 | |
Retirement of derivative at conversion | (41,173) | ||
(Gain) loss on derivative liability | $ 16,528 |
NOTE - 7. FAIR VALUE MEASUREM_5
NOTE - 7. FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITIES: Schedule of Assumptions Used (Details) | 9 Months Ended |
Jan. 31, 2024 | |
Fair Value Assumptions, Risk Free Interest Rate | 0.0520 |
Fair Value Assumptions, Expected Term | 0.10 |
Fair Value Assumptions, Expected Dividend Rate | 0 |
Fair Value Assumptions, Expected Volatility Rate | 3.1500 |
NOTE - 8. EQUITY (Details)
NOTE - 8. EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Jan. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Apr. 30, 2023 | Apr. 26, 2022 | |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 | 600,000,000 | 600,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Common stock issued for debt conversion | $ 2,960 | $ 8,329 | $ 14,686 | $ 21,000 | $ 9,000 | $ 25,996 | $ 30,000 | |||
Common stock issued for cash, Shares | 21,819 | |||||||||
Common stock issued for cash, Value | $ 10,000 | |||||||||
Series B Preferred Shares Issued for the Reduction of Notes Payable and Accrued Expenses, Value | $ 2,901,905 | |||||||||
Preferred B shares issued for accrued expense - related parties, Shares | 85,000 | 279,026 | ||||||||
Preferred B shares issued for accrued expense - related parties, Value | $ 1,074,250 | $ 15,140 | $ 1,074,250 | |||||||
Preferred B shares issued for notes payable, Value | $ 322,500 | 322,500 | 322,500 | |||||||
Preferred B shares issued for accounts payable and accrued expenses | 1,505,155 | 1,505,155 | ||||||||
Loss on debt settlement, accruals and/accounts payable | 835,829 | 835,829 | ||||||||
Preferred shares issued for service | $ 15,140 | $ 132,492 | 162,500 | $ 15,138 | $ 294,997 | |||||
Common Stock | ||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 149,038 | 543,898 | 569,681 | 250,139 | 27,439 | 1,262,617 | ||||
Common stock issued for debt conversion | $ 15 | $ 54 | $ 57 | $ 0 | $ 2 | |||||
Common stock issued for Series B preferred share conversion, Shares | (96,899) | |||||||||
Common stock issued for Series B preferred share conversion, Shares | 96,899 | |||||||||
Common stock issued for cash, Shares | 0 | 200,000 | ||||||||
Common stock issued for cash, Value | $ 20 | |||||||||
Common stock issued for preferred shares, Shares | 5,125,554 | |||||||||
Preferred B shares issued for accrued expense - related parties, Value | 0 | |||||||||
Preferred B shares issued for notes payable, Value | 0 | |||||||||
Preferred B shares issued for accounts payable and accrued expenses | 0 | |||||||||
Loss on debt settlement, accruals and/accounts payable | $ 0 | |||||||||
Preferred shares issued for service | $ 0 | 0 | ||||||||
Preferred Stock | ||||||||||
Common stock issued for debt conversion | $ 0 | 0 | $ 0 | $ 0 | ||||||
Common stock issued for Series B preferred share conversion, Shares | 9,690 | |||||||||
Common stock issued for Series B preferred share conversion, Shares | (9,690) | |||||||||
Common stock issued for cash, Shares | 0 | |||||||||
Common stock issued for cash, Value | $ 0 | |||||||||
Common stock issued for preferred shares, Shares | 482,972 | |||||||||
Series B Preferred Shares Issued for the Reduction of Notes Payable and Accrued Expenses, Shares | 697,662 | |||||||||
Preferred B shares issued for accrued expense - related parties, Shares | 279,026 | 279,026 | ||||||||
Preferred B shares issued for accrued expense - related parties, Value | $ 28 | |||||||||
Preferred B shares issued for notes payable, Shares | 53,750 | 53,750 | 53,750 | 53,750 | ||||||
Preferred B shares issued for notes payable, Value | $ 4 | |||||||||
Preferred B shares issued for accounts payable and accrued expenses, Shares | 389,886 | 364,886 | ||||||||
Preferred B shares issued for accounts payable and accrued expenses | $ 39 | |||||||||
Loss on debt settlement, accruals and/accounts payable | $ 0 | |||||||||
Preferred shares issued for service, Shares | 85,000 | 25,000 | 50,000 | |||||||
Preferred shares issued for service | $ 7 | $ 2 | ||||||||
Series A Preferred Stock | ||||||||||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Preferred Stock, Shares Outstanding | 2,535,135 | 2,535,135 | 2,535,135 | |||||||
Preferred Stock, Shares Issued | 2,535,135 | 2,535,135 | 2,535,135 | |||||||
Series B Preferred Stock | ||||||||||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Preferred shares issued for service | $ 294,992 | |||||||||
Preferred Stock, Shares Outstanding | 1,905,920 | 1,905,920 | 1,910,670 | |||||||
Preferred Stock, Shares Issued | 1,905,920 | 1,905,920 | 1,910,670 | |||||||
Series D Preferred Stock | ||||||||||
Preferred Stock, Shares Outstanding | 586 | 586 | 600 | |||||||
Preferred Stock, Shares Issued | 586 | 586 | 600 |
NOTE - 9. COMMITMENTS AND CON_2
NOTE - 9. COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Jan. 31, 2024 USD ($) | |
EMAC Handels Ag | |
Monthly fee for administration services | $ 7,500 |
Monthly fee for Office Rent | 250 |
Monthly fee for Office Supplies | 125 |
Merrill W Moses | |
Monthly fee for administration services | 2,500 |
Monthly Director's fee per Service Agreement | 7,500 |
Charles C Hooper | |
Monthly fee for administration services | 5,000 |
RAB Investments | |
Monthly fee for administration services | 7,500 |
Monthly fee for Office Rent | 250 |
Monthly fee for telephone | $ 125 |