Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jan. 31, 2020 | Mar. 12, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | Slinger Bag Inc. | |
Entity Central Index Key | 0001674440 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,749,354 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jan. 31, 2020 | Apr. 30, 2019 |
Current assets | ||
Cash | $ 13,711 | $ 1,994 |
Due from related parties | 297,246 | |
Inventory | 1,524,101 | |
Prepaid expenses and other current assets | 21,209 | 645 |
Total current assets | 1,856,267 | 2,639 |
Property and equipment, net | 750 | |
Intangible assets, net | 1,734 | |
Total assets | 1,856,267 | 5,123 |
Current liabilities | ||
Accounts payable and accrued expenses | 463,551 | |
Accrued interest - related parties | 31,323 | |
Stock refund payable | 1,200 | |
Notes payable - related party | 1,900,000 | |
Convertible note payable , net | 81,967 | |
Derivative liability | 53,571 | |
Due to related parties | 10,114 | |
Total current liabilities | 2,530,412 | 11,314 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, $0.001 par value, 300,000,000 shares authorized, 24,380,000 shares issued and outstanding as of January 31, 2020 (unaudited) and April 30, 2019; 12,190,000 shares issuable as of January 31, 2020 (unaudited) | 24,380 | 24,380 |
Additional paid-in capital | 855,122 | 2,520 |
Due from affiliate | (837,313) | |
Accumulated deficit | (716,334) | (33,091) |
Total stockholders' deficit | (674,145) | (6,191) |
Total liabilities and stockholders' deficit | $ 1,856,267 | $ 5,123 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2020 | Apr. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 24,380,000 | 24,380,000 |
Common stock, shares outstanding | 24,380,000 | 24,380,000 |
Shares issuable | 12,190,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | ||||
Total revenues | ||||
Operating expenses: | ||||
Selling and marketing expenses | 104,430 | 127,310 | ||
General and administrative expenses | 180,050 | 3,472 | 275,036 | 16,041 |
Transaction costs | 93,016 | 203,169 | ||
Total operating expenses | 377,496 | 3,472 | 605,515 | 16,041 |
Loss from operations | (377,496) | (3,472) | (605,515) | (16,041) |
Other expenses: | ||||
Amortization of debt discount | 10,538 | 10,538 | ||
Interest expense - related party | 59,273 | 64,273 | ||
Interest expense | 2,917 | 2,917 | ||
Total other expense | 72,728 | 77,728 | ||
Loss before income taxes | (450,224) | (3,472) | (683,243) | (16,041) |
Provision for (benefit from) income taxes | ||||
Net loss | $ (450,224) | $ (3,472) | $ (683,243) | $ (16,041) |
Net loss per share, basic and diluted | $ (0.02) | $ 0 | $ (0.03) | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 24,380,000 | 24,380,000 | 24,380,000 | 24,393,044 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Due from Affiliate [Member] | Accumulated Deficit [Member] | Total |
Balance at Apr. 30, 2018 | $ 24,620 | $ 3,480 | $ (4,802) | $ 23,298 | |
Balance, shares at Apr. 30, 2018 | 24,620,000 | ||||
Common shares cancelled | $ (240) | (960) | (1,200) | ||
Common shares cancelled, shares | (240,000) | ||||
Net loss | (6,517) | (6,517) | |||
Balance at Jul. 31, 2018 | $ 24,380 | 2,520 | (11,319) | 15,581 | |
Balance, shares at Jul. 31, 2018 | 24,380,000 | ||||
Balance at Apr. 30, 2018 | $ 24,620 | 3,480 | (4,802) | 23,298 | |
Balance, shares at Apr. 30, 2018 | 24,620,000 | ||||
Net loss | (16,041) | ||||
Balance at Jan. 31, 2019 | $ 24,380 | 2,520 | (20,843) | 6,057 | |
Balance, shares at Jan. 31, 2019 | 24,380,000 | ||||
Balance at Jul. 31, 2018 | $ 24,380 | 2,520 | (11,319) | 15,581 | |
Balance, shares at Jul. 31, 2018 | 24,380,000 | ||||
Net loss | (6,052) | (6,052) | |||
Balance at Oct. 31, 2018 | $ 24,380 | 2,520 | (17,371) | 9,529 | |
Balance, shares at Oct. 31, 2018 | 24,380,000 | ||||
Net loss | (3,472) | (3,472) | |||
Balance at Jan. 31, 2019 | $ 24,380 | 2,520 | (20,843) | 6,057 | |
Balance, shares at Jan. 31, 2019 | 24,380,000 | ||||
Balance at Apr. 30, 2019 | $ 24,380 | 2,520 | (33,091) | (6,191) | |
Balance, shares at Apr. 30, 2019 | 24,380,000 | ||||
Net loss | (41,196) | (41,196) | |||
Balance at Jul. 31, 2019 | $ 24,380 | 2,520 | (74,287) | (47,387) | |
Balance, shares at Jul. 31, 2019 | 24,380,000 | ||||
Balance at Apr. 30, 2019 | $ 24,380 | 2,520 | (33,091) | (6,191) | |
Balance, shares at Apr. 30, 2019 | 24,380,000 | ||||
Shares issuable related to agreement with affiliate | 837,313 | ||||
Net loss | (683,243) | ||||
Balance at Jan. 31, 2020 | $ 24,380 | 855,122 | (837,313) | (716,334) | (674,145) |
Balance, shares at Jan. 31, 2020 | 24,380,000 | ||||
Balance at Jul. 31, 2019 | $ 24,380 | 2,520 | (74,287) | (47,387) | |
Balance, shares at Jul. 31, 2019 | 24,380,000 | ||||
Shares issuable related to agreement with affiliate | 837,313 | (837,313) | |||
Distribution of net assets to shareholder | 15,289 | 15,289 | |||
Net loss | (191,823) | (191,823) | |||
Balance at Oct. 31, 2019 | $ 24,380 | 855,122 | (837,313) | (266,110) | (223,921) |
Balance, shares at Oct. 31, 2019 | 24,380,000 | ||||
Net loss | (450,224) | (450,224) | |||
Balance at Jan. 31, 2020 | $ 24,380 | $ 855,122 | $ (837,313) | $ (716,334) | $ (674,145) |
Balance, shares at Jan. 31, 2020 | 24,380,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (683,243) | $ (16,041) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 650 | 1,950 |
Amortization of debt discount | 10,538 | |
Changes in operating assets and liabilities: | ||
Due from related parties | (290,792) | |
Inventory | (1,524,101) | |
Prepaid expenses and other current assets | (21,209) | |
Accounts payable and accrued expenses | 463,551 | (2,099) |
Accrued interest - related parties | 31,323 | |
Net cash used in operating activities | (2,013,283) | (16,190) |
Cash flows from investing activities | ||
Cash flows from financing activities | ||
Proceeds from notes payable - related party | 1,900,000 | |
Proceeds from convertible note payable | 125,000 | |
Net cash provided by financing activities | 2,025,000 | |
Net change in cash | 11,717 | (16,190) |
Cash, beginning of the period | 1,994 | 20,782 |
Cash, end of the period | 13,711 | 4,592 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 32,950 | |
Income taxes paid | ||
Supplemental disclosure of non-cash investing and financing information: | ||
Distribution of net assets to former shareholder | 15,289 | |
Shares issuable related to agreement with affiliate | 837,313 | |
Debt discount due to derivative liability | 53,571 | |
Cancellation of common stock for refund payable | $ 1,200 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization Lazex Inc. (“Lazex”) was incorporated under the laws of the State of Nevada on July 12, 2015. On August 23, 2019, the majority owner of Lazex entered into a Stock Purchase Agreement with Slinger Bag Americas Inc., a Delaware corporation (“Slinger Bag Americas”) which is 100% owned by Slinger Bag Ltd. (“SBL”), an Israeli company. In connection with the Stock Purchase Agreement, Slinger Bag Americas acquired 20,000,000 shares of common stock of Lazex for $332,239. On September 16, 2019, SBL transferred its ownership of Slinger Bag Americas to Lazex in exchange for the 20,000,000 shares of Lazex acquired on August 23, 2019. As a result of these transactions, Lazex now owns 100% of Slinger Bag Americas and the sole shareholder of SBL now owns 20,000,000 shares of common stock (approximately 82%) of Lazex. Effective September 13, 2019, Lazex changed its name to Slinger Bag Inc. On October 31, 2019, Slinger Bag Americas acquired control of Slinger Bag Canada, Inc., (“Slinger Bag Canada”) a Canadian company incorporated on November 3, 2017. There are no assets or liabilities or historical operational activity of Slinger Bag Canada. The operations of Slinger Bag Inc., Slinger Bag Americas and Slinger Bag Canada are collectively referred to as the “Company.” The Company operates in the sporting and athletic goods business. The Company is the owner of Slinger Launcher, which is a portable tennis ball launcher. Effective February 25, 2020, the Company increased its number of authorized shares of common stock from 75,000,000 to 300,000,000 and effected a four-to-one forward split of the outstanding shares of common stock (see Note 8). All share and per share information contained in this report have been retroactively adjusted to reflect the impact of the stock split. Basis of Presentation As a result of the transactions described above, the accompanying unaudited condensed consolidated financial statements include the combined results of Slinger Bag Inc., Slinger Bag Americas and Slinger Bag Canada for all periods presented. There was no historical activity in Slinger Bag Americas or Slinger Bag Canada prior to April 30, 2019. All intercompany accounts and transactions have been eliminated in consolidation. |
Going Concern
Going Concern | 9 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2: GOING CONCERN The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has an accumulated deficit of $716,334 as of January 31, 2020 and more losses are anticipated in the development of the business. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or being able to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from related parties, and/or private placement of common stock. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the Company’s financial statements and notes thereto for the years ended April 30, 2019 and 2018, respectively, which are included in the Company’s Form 10-K filed with the United States Securities and Exchange Commission on August 6, 2019. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation of these may be determined in that context. The results of operations for the three and nine months ended January 31, 2020 are not necessarily indicative of results for the entire year ending April 30, 2020. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates. Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these unaudited condensed consolidated financial statements to conform to current period classifications. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less when purchased, to be cash equivalents. Inventory Inventory is valued at the lower of the cost or net realizable value. The Company’s inventory as of January 31, 2020 consisted of finished goods. Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash or cash equivalents. Revenue Recognition Effective May 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. The adoption of ASC 606 had no impact on the Company’s financial statements. The Company did not have any revenue for the three or nine months ended January 31, 2020 or 2019. Fair Value of Financial Instruments 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 the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: ● Level 1 — Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. ● Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: – Quoted prices for similar assets or liabilities in active markets – Quoted prices for identical or similar assets or liabilities in markets that are not active – Inputs other than quoted prices that are observable for the asset or liability – Inputs that are derived principally from or corroborated by observable market data by correlation or other means ● Level 3 — Inputs that are unobservable and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company’s financial instruments consist of cash and cash equivalents, accounts payable and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due to their short-term maturity. The Company’s derivative liability was calculated using Level 2 assumptions (see Note 5). Income Taxes Income taxes are accounted for in accordance with the provisions of ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized, but no less than quarterly. Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of three years. At April 30, 2019, the Company had total capitalized property and equipment costs of $3,000 and accumulated depreciation of $2,250. In connection with the Stock Purchase Agreement (see Note 1), the existing property and equipment with a remaining book value of $500 was contributed to the previous majority shareholder of Lazex. As of January 31, 2020, the remaining book value of property and equipment were $0. Depreciation expense for the three and nine months ended January 31, 2020 was $0 and $250, respectively. Depreciation expense for the three and nine months ended January 31, 2019 was $250 and $750, respectively. Intangible Assets Intangible assets consisted of capitalized software costs and are amortized on a straight-line basis over an estimated useful life of three years. At April 30, 2019, the Company had total gross intangible assets of $4,800 and accumulated amortization of $3,066. In connection with the Stock Purchase Agreement (see Note 1), the existing capitalized software with a remaining book value of $1,334 was contributed to the previous majority shareholder of Lazex. As of January 31, 2020, the remaining book value of intangible assets were $0. Amortization expense for the three and nine months ended January 31, 2020 was $0 and $400, respectively. Amortization expense for the three and nine months ended January 31, 2019 was $400 and $1,200, respectively. Long-Lived Assets In accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There was no impairment of long-lived assets identified during the three and nine months ended January 31, 2020 or 2019. Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. The Company had 12,190,000 common shares issuable as of January 31, 2020 (see Note 7) which were not included in the calculation of diluted earnings per share as the effect is antidilutive. The Company also had an outstanding note payable convertible into 242,131 shares of common stock as of January 31, 2020 (see Note 5) which was excluded from calculation of diluted earnings per share as the effect is antidilutive. As a result, the basic and diluted earnings per share are the same for each of the periods presented. Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases” (Topic 842). This guidance is effective for public entities for fiscal years beginning after December 15, 2018 including the interim periods within those fiscal years. Early application is permitted. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) Financing leases, similar to capital leases, which will require the recognition of an asset and liability, measured at the present value of the lease payments and (ii) Operating leases which will require the recognition of an asset and liability measured at the present value of the lease payments. The Company has adopted this standard on May 1, 2019 with no significant impact to the Company’s financial statements. Other accounting pronouncements have been issued but deemed by management to be outside the scope of relevance to the Company. |
Note Payable - Related Party
Note Payable - Related Party | 9 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Note Payable - Related Party | NOTE 4: NOTE PAYABLE – RELATED PARTY On October 3, 2019, the Company entered into a loan agreement with a related party entity controlled by the former shareholder of Slinger Bag Canada for borrowings of $500,000 bearing interest at 12% per annum. All principal and accrued interest were due on demand under the original agreement. On December 13, 2019, the Company entered into an Amended and Restated Loan Agreement making the all principal and accrued interest due on July 15, 2020. On December 3, 2019, the Company entered into a loan agreement with the same related party for borrowings of $500,000 bearing interest at 12% per annum. All principal and accrued interest were due on demand under the original agreement. On December 13, 2019, the Company entered into an Amended and Restated Loan Agreement increasing the interest rate earned from 12% to 24% per annum and making the all principal and accrued interest due on July 15, 2020. On December 11, 2019, the Company entered into a loan agreement with the same related party for borrowings of $700,000 bearing interest at 24% per annum. All principal and accrued interest were due on July 15, 2020. On January 6, 2019, the Company entered into a loan agreement with the same related party for borrowings of $200,000 bearing interest at 24% per annum. All principal and accrued interest were due on January 8, 2021. Interest expense related to this related party for the three and nine months ended January 31, 2020 amounted to $59,273 and $64,273, respectively. Accrued interest due to the related party amounted to $31,323 as of January 31, 2020. |
Convertible Note Payable
Convertible Note Payable | 9 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | NOTE 5: CONVERTIBLE NOTE PAYABLE On November 20, 2019, the Company entered into a convertible note payable agreement for borrowings of $125,000 bearing interest at 12% per annum. All outstanding borrowings and accrued interest are due on November 20, 2020. The outstanding principal and accrued interest are convertible into shares of the Company’s common stock at any time at the option of the debtholder at a conversion price equal to 70% of the lowest closing price of the common stock as defined in the agreement. The outstanding principal and accrued interest on this convertible note were converted into 369,354 shares of common stock subsequent to January 31, 2020 (see Note 8). The Company evaluated the conversion option under the guidance in ASC 815-10, Derivatives and Hedging, and determined it to have characteristics of a derivative liability. Under this guidance, this derivative liability is marked-to-market at each reporting period with the non-cash gain or loss recorded in the period as a gain or loss on derivatives. The value of the conversion option amounted to $53,571 as of the issuance date on November 20, 2019, which has been recorded as a discount to the outstanding note balance and a derivative liability. There was no change in the derivative liability as of January 31, 2020. The discount is being amortized over the term of the agreement. Amortization of debt discounts during the three and nine months ended January 31, 2020 amounted to $10,538 and is recorded as amortization of debt discount in the accompanying consolidated statements of operations. The unamortized discount balance amounted to $43,033 as of January 31, 2020. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 6: RELATED PARTY TRANSACTIONS In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attain adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. In addition, from time-to-time, the Company may advance money to other entities affiliated through common ownership on a short-term basis. As of January 31, 2020, the Company had $297,246 of amounts due from affiliated entities. As of April 30, 2019, the Company had $10,114 of outstanding borrowings from the previous majority shareholder and sole officer and director of the Company. The borrowings were non-interest bearing and due on demand. In connection with the Stock Purchase Agreement (see Note 1), the outstanding balances were forgiven. As of January 31, 2020, the outstanding balances under this borrowing was $0. The Company has outstanding notes payable of $1,900,000 and accrued interest of $31,323 due to a related party as of January 31, 2020 (see Note 4). |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jan. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | NOTE 7: STOCKHOLDERS’ DEFICIT Common Stock The Company has 300,000,000 shares of common stock authorized with a par value of $0.001 per share. As of January 31, 2020, the Company had 24,380,000 shares of common stock issued and outstanding. Common Stock Issuable On September 16, 2019, the Company entered into a warrant assignment and conveyance agreement with Montsaic Investments (“Montsaic”), pursuant to which the Company allows Montsaic to acquire 33% of the outstanding common stock shares of the Company on a fully-diluted basis as of September 16, 2019 for no consideration. The agreement is in exchange for 100% of Montsaic’s right, title and interest in, to and under a warrant agreement dated September 11, 2019 between Montsaic and SBL, an affiliated entity. As the transaction was between entities under common control, the shares were recorded at SBL’s historic cost of $837,313 and have been reflected as an increase to additional paid-in capital and due from affiliate within the Company’s stockholders’ deficit. The Company has not issued the shares of common stock as of January 31, 2020. As a result, as of January 31, 2020 the Company has 12,190,000 shares of common stock that are issuable. These shares are expected to be issued and outstanding prior to the end of the fiscal year ended April 30, 2020. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8: SUBSEQUENT EVENTS On February 10, 2020, Slinger Bag Americas became the 100% owner of SBL after Zehava Tepler, the owner of SBL, contributed it to Slinger Bag Americas for no consideration. Effective February 25, 2020, the Company increased the number of authorized shares of common stock from 75,000,000 to 300,000,000 and effected a four-to-one forward split of its outstanding shares of common stock. Prior to the forward stock split, the Company had 6,095,000 shares of common stock issued and outstanding, which became 24,380,000 after the stock split became effective. All share and per share information contained in this report have been retroactively adjusted to reflect the impact of the stock split. On February 11, 2020, the Company entered into a convertible note payable agreement for borrowings of $125,000 bearing interest at 12% per annum. All outstanding borrowings and accrued interest are due on February 11, 2021. The outstanding principal and accrued interest are convertible into shares of the Company’s common stock at any time at the option of the debtholder at a conversion price equal to 70% of the lowest closing price of the common stock as defined in the agreement. On March 1, 2020, the Company entered into a loan agreement with the existing related party debtholder (see Note 4) for additional borrowings of $200,000 bearing interest at 24% per annum. All outstanding borrowings and accrued interest under all agreements are due on January 8, 2021. On March 2, 2020, the holder of the outstanding convertible note payable (see Note 5) elected to convert the outstanding principal of $125,000 and accrued interest of $4,274 into 369,354 shares of the Company’s common stock in accordance with the terms in the agreement. The Company issued such shares to the holder on March 5, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the Company’s financial statements and notes thereto for the years ended April 30, 2019 and 2018, respectively, which are included in the Company’s Form 10-K filed with the United States Securities and Exchange Commission on August 6, 2019. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation of these may be determined in that context. The results of operations for the three and nine months ended January 31, 2020 are not necessarily indicative of results for the entire year ending April 30, 2020. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates. |
Financial Statement Reclassification | Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these unaudited condensed consolidated financial statements to conform to current period classifications. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less when purchased, to be cash equivalents. |
Inventory | Inventory Inventory is valued at the lower of the cost or net realizable value. The Company’s inventory as of January 31, 2020 consisted of finished goods. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash or cash equivalents. |
Revenue Recognition | Revenue Recognition Effective May 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. The adoption of ASC 606 had no impact on the Company’s financial statements. The Company did not have any revenue for the three or nine months ended January 31, 2020 or 2019. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: ● Level 1 — Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. ● Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: – Quoted prices for similar assets or liabilities in active markets – Quoted prices for identical or similar assets or liabilities in markets that are not active – Inputs other than quoted prices that are observable for the asset or liability – Inputs that are derived principally from or corroborated by observable market data by correlation or other means ● Level 3 — Inputs that are unobservable and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company’s financial instruments consist of cash and cash equivalents, accounts payable and amounts due to related parties. The carrying amount of these financial instruments approximates fair value due to their short-term maturity. The Company’s derivative liability was calculated using Level 2 assumptions (see Note 5). |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with the provisions of ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized, but no less than quarterly. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of three years. At April 30, 2019, the Company had total capitalized property and equipment costs of $3,000 and accumulated depreciation of $2,250. In connection with the Stock Purchase Agreement (see Note 1), the existing property and equipment with a remaining book value of $500 was contributed to the previous majority shareholder of Lazex. As of January 31, 2020, the remaining book value of property and equipment were $0. Depreciation expense for the three and nine months ended January 31, 2020 was $0 and $250, respectively. Depreciation expense for the three and nine months ended January 31, 2019 was $250 and $750, respectively. |
Intangible Assets | Intangible Assets Intangible assets consisted of capitalized software costs and are amortized on a straight-line basis over an estimated useful life of three years. At April 30, 2019, the Company had total gross intangible assets of $4,800 and accumulated amortization of $3,066. In connection with the Stock Purchase Agreement (see Note 1), the existing capitalized software with a remaining book value of $1,334 was contributed to the previous majority shareholder of Lazex. As of January 31, 2020, the remaining book value of intangible assets were $0. Amortization expense for the three and nine months ended January 31, 2020 was $0 and $400, respectively. Amortization expense for the three and nine months ended January 31, 2019 was $400 and $1,200, respectively. |
Long-lived Assets | Long-Lived Assets In accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There was no impairment of long-lived assets identified during the three and nine months ended January 31, 2020 or 2019. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. The Company had 12,190,000 common shares issuable as of January 31, 2020 (see Note 7) which were not included in the calculation of diluted earnings per share as the effect is antidilutive. The Company also had an outstanding note payable convertible into 242,131 shares of common stock as of January 31, 2020 (see Note 5) which was excluded from calculation of diluted earnings per share as the effect is antidilutive. As a result, the basic and diluted earnings per share are the same for each of the periods presented. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases” (Topic 842). This guidance is effective for public entities for fiscal years beginning after December 15, 2018 including the interim periods within those fiscal years. Early application is permitted. Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) Financing leases, similar to capital leases, which will require the recognition of an asset and liability, measured at the present value of the lease payments and (ii) Operating leases which will require the recognition of an asset and liability measured at the present value of the lease payments. The Company has adopted this standard on May 1, 2019 with no significant impact to the Company’s financial statements. Other accounting pronouncements have been issued but deemed by management to be outside the scope of relevance to the Company. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) - USD ($) | Feb. 25, 2020 | Sep. 16, 2019 | Aug. 23, 2019 | Jan. 31, 2020 | Feb. 24, 2020 | Apr. 30, 2019 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||||
Stock split, description | four-to-one forward split of the outstanding shares of common stock | |||||
Subsequent Event [Member] | ||||||
Common stock, shares authorized | 300,000,000 | 75,000,000 | ||||
Stock split, description | Effective February 25, 2020, the Company increased the number of authorized shares of common stock from 75,000,000 to 300,000,000 and effected a four-to-one forward split of its outstanding shares of common stock. Prior to the forward stock split, the Company had 6,095,000 shares of common stock issued and outstanding, which became 24,380,000 after the stock split became effective. | |||||
Sole Shareholder of SBL [Member] | ||||||
Ownership percentage | 82.00% | |||||
Number of shares owned | 20,000,000 | |||||
Slinger Bag Americas Inc [Member] | ||||||
Ownership percentage | 100.00% | |||||
Number of shares exchanged | 20,000,000 | |||||
Stock Purchase Agreement [Member] | Slinger Bag Americas Inc [Member] | ||||||
Ownership percentage | 100.00% | |||||
Number of shares issued for acquisition | 20,000,000 | |||||
Number of shares issued for acquisition, value | $ 332,239 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Jan. 31, 2020 | Apr. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (716,334) | $ (33,091) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Apr. 30, 2019 | |
Inventory finished goods | |||||
Revenue | |||||
Property and equipment estimated useful life | 3 years | ||||
Capitalized cost of property and equipment | $ 3,000 | ||||
Accumulated amortization of property and equipment | 2,250 | ||||
Property and equipment | 750 | ||||
Depreciation expense | 0 | 250 | $ 250 | 750 | |
Estimated useful life of intangible asset | 3 years | ||||
Capitalized software gross | 4,800 | ||||
Accumulated amortization of capitalized software | 3,066 | ||||
Capitalized software, remaining book value | 0 | $ 0 | 1,334 | ||
Amortization expense | 0 | 400 | 400 | 1,200 | |
Impairment of long-lived assets | |||||
Antidilutive securities not included in calculation | 12,190,000 | ||||
Note Payable [Member] | |||||
Antidilutive securities not included in calculation | 242,131 | ||||
Stock Purchase Agreement [Member] | |||||
Property and equipment | $ 500 |
Note Payable - Related Party (D
Note Payable - Related Party (Details Narrative) - USD ($) | Dec. 13, 2019 | Dec. 11, 2019 | Jan. 06, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Dec. 03, 2019 | Oct. 03, 2019 | Apr. 30, 2019 |
Borrowings | $ 1,900,000 | $ 1,900,000 | ||||||||
Interest expenses related party debt | 59,273 | 64,273 | ||||||||
Accrued interest - related parties | $ 31,323 | $ 31,323 | ||||||||
Loan Agreement [Member] | Former Shareholder [Member] | ||||||||||
Borrowings | $ 700,000 | $ 200,000 | $ 500,000 | $ 500,000 | ||||||
Interest rate | 24.00% | 24.00% | 12.00% | 12.00% | ||||||
Debt instrument maturity date | Jul. 15, 2020 | Jan. 8, 2021 | ||||||||
Amended and Restated Loan Agreement [Member] | ||||||||||
Debt instrument maturity date | Jul. 15, 2020 | |||||||||
Amended and Restated Loan Agreement [Member] | Minimum [Member] | ||||||||||
Interest rate | 12.00% | |||||||||
Amended and Restated Loan Agreement [Member] | Maximum [Member] | ||||||||||
Interest rate | 24.00% |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - USD ($) | Feb. 11, 2020 | Nov. 20, 2019 | Mar. 16, 2020 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 |
Debt issuance date | Nov. 20, 2019 | ||||||
Derivative liability | |||||||
Amortization of debt discount | 10,538 | 10,538 | |||||
Unamortized debt discount | $ 43,033 | $ 43,033 | |||||
Subsequent Event [Member] | |||||||
Debt conversion converted instrument, shares | 369,354 | ||||||
Debt conversion converted instrument, value | $ 53,571 | ||||||
Convertible Note Payable Agreement [Member] | |||||||
Convertible note payable | $ 125,000 | ||||||
Debt instrument interest rate | 12.00% | ||||||
Debt instrument maturity date | Nov. 20, 2020 | ||||||
Convertible Note Payable Agreement [Member] | Subsequent Event [Member] | |||||||
Convertible note payable | $ 125,000 | ||||||
Debt instrument interest rate | 12.00% | ||||||
Debt instrument maturity date | Feb. 11, 2021 | ||||||
Options for debtholders conversion price percentage | 70.00% | ||||||
Convertible Note Payable Agreement [Member] | Debtholder [Member] | |||||||
Options for debtholders conversion price percentage | 70.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jan. 31, 2020 | Apr. 30, 2019 |
Related Party Transactions [Abstract] | ||
Amount due from affiliates | $ 297,246 | |
Outstanding borrowings | 10,114 | |
Outstanding notes payable | 1,900,000 | |
Accrued interest - related parties | $ 31,323 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Jan. 31, 2020 | Sep. 16, 2019 | Sep. 11, 2019 | Apr. 30, 2019 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Common stock, shares issued | 24,380,000 | 24,380,000 | |||
Common stock, shares outstanding | 24,380,000 | 24,380,000 | |||
Shares issuable related to agreement with affiliate | $ 837,313 | ||||
Shares issuable | 12,190,000 | ||||
Warrant Assignment and Conveyance Agreement [Member] | Montsaic Investments [Member] | |||||
Ownership percentage | 33.00% | 100.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Mar. 02, 2020 | Mar. 01, 2020 | Feb. 25, 2020 | Feb. 11, 2020 | Nov. 20, 2019 | Mar. 16, 2020 | Jan. 31, 2020 | Feb. 24, 2020 | Feb. 10, 2020 | Apr. 30, 2019 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||||||||
Stock split, description | four-to-one forward split of the outstanding shares of common stock | |||||||||
Common stock, shares issued | 24,380,000 | 24,380,000 | ||||||||
Common stock, shares outstanding | 24,380,000 | 24,380,000 | ||||||||
Convertible Note Payable Agreement [Member] | ||||||||||
Convertible note payable | $ 125,000 | |||||||||
Debt instrument interest rate | 12.00% | |||||||||
Debt instrument maturity date | Nov. 20, 2020 | |||||||||
Subsequent Event [Member] | ||||||||||
Common stock, shares authorized | 300,000,000 | 75,000,000 | ||||||||
Stock split, description | Effective February 25, 2020, the Company increased the number of authorized shares of common stock from 75,000,000 to 300,000,000 and effected a four-to-one forward split of its outstanding shares of common stock. Prior to the forward stock split, the Company had 6,095,000 shares of common stock issued and outstanding, which became 24,380,000 after the stock split became effective. | |||||||||
Common stock, shares issued | 24,380,000 | 6,095,000 | ||||||||
Common stock, shares outstanding | 24,380,000 | 6,095,000 | ||||||||
Debt conversion converted instrument, shares | 369,354 | |||||||||
Subsequent Event [Member] | Convertible Notes Payable [Member] | ||||||||||
Convertible note payable | $ 125,000 | |||||||||
Accrued interest | $ 4,274 | |||||||||
Debt conversion converted instrument, shares | 369,354 | |||||||||
Subsequent Event [Member] | Convertible Note Payable Agreement [Member] | ||||||||||
Convertible note payable | $ 125,000 | |||||||||
Debt instrument interest rate | 12.00% | |||||||||
Debt instrument maturity date | Feb. 11, 2021 | |||||||||
Options for debtholders conversion price percentage | 70.00% | |||||||||
Subsequent Event [Member] | Loan Agreement [Member] | ||||||||||
Debt instrument interest rate | 24.00% | |||||||||
Debt instrument maturity date | Jan. 8, 2021 | |||||||||
Proceeds from related party debt | $ 200,000 | |||||||||
Subsequent Event [Member] | Slinger Bag Ltd [Member] | ||||||||||
Ownership percentage | 100.00% |