Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2021 | Aug. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 333-214463 | |
Entity Registrant Name | SLINGER BAG INC. | |
Entity Central Index Key | 0001674440 | |
Entity Tax Identification Number | 61-1789640 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2709 NORTH ROLLING ROAD | |
Entity Address, Address Line Two | SUITE 138 | |
Entity Address, City or Town | WINDSOR MILL | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21244 | |
City Area Code | (443) | |
Local Phone Number | 407-7564 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,517,540 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,013,309 | $ 928,796 |
Accounts receivable, net | 524,787 | 762,487 |
Inventories, net | 5,169,994 | 3,693,216 |
Prepaid inventory | 768,066 | 140,047 |
Prepaid expenses and other current assets | 417,381 | 60,113 |
Total current assets | 7,893,537 | 5,584,659 |
Goodwill | 1,240,000 | |
Other intangible assets, net | 2,381,684 | 112,853 |
Total assets | 11,515,221 | 5,697,512 |
Current liabilities | ||
Accounts payable and accrued expenses | 3,999,363 | 2,050,476 |
Accrued payroll and bonuses | 1,736,177 | 1,283,464 |
Deferred revenue | 1,239,083 | 99,531 |
Accrued interest - related party | 803,869 | 747,636 |
Notes payable - related party, net | 500,000 | 6,143,223 |
Derivative liabilities | 14,539,039 | 13,813,449 |
Total current liabilities | 22,817,531 | 24,137,779 |
Long-term liabilities | ||
Note payable, net | 20,414 | 10,477 |
Total liabilities | 22,837,945 | 24,148,256 |
Commitments and contingencies (Note 10) | ||
Shareholders’ deficit | ||
Common stock, $0.001 par value, 300,000,000 shares authorized, 29,979,573 and 27,642,828 shares issued and outstanding as of July 31, 2021 (unaudited) and April 30, 2021, respectively; 6,921,299 shares issuable as of July 31, 2021 (unaudited) and April 30, 2021 | 29,980 | 27,643 |
Additional paid-in capital | 20,939,079 | 10,365,056 |
Accumulated other comprehensive loss | (33,198) | (20,170) |
Accumulated deficit | (32,258,585) | (28,823,273) |
Total shareholders’ deficit | (11,322,724) | (18,450,744) |
Total liabilities and shareholders’ deficit | $ 11,515,221 | $ 5,697,512 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2021 | Apr. 30, 2021 |
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 | 29,979,573 | 27,642,828 |
Common stock, shares outstanding | 29,979,573 | 27,642,828 |
Shares issuable | 6,921,299 | 6,921,299 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 2,537,573 | $ 564,985 |
Cost of sales | 1,752,351 | 936,900 |
Gross income (loss) | 785,222 | (371,915) |
Operating expenses: | ||
Selling and marketing expenses | 707,097 | 302,018 |
General and administrative expenses | 2,394,799 | 759,268 |
Research and development costs | 174,048 | 28,110 |
Total operating expenses | 3,275,944 | 1,089,396 |
Loss from operations | (2,490,722) | (1,461,311) |
Other expense (income): | ||
Amortization of debt discounts | 21,216 | 233,708 |
Loss (gain) on extinguishment of debt | 5,118,435 | (566,667) |
Gain on change in fair value of derivatives | (4,327,344) | |
Interest expense - related party | 56,233 | 172,464 |
Interest expense, net | 76,050 | 73,210 |
Total other expense (income) | 944,590 | (87,285) |
Loss before income taxes | (3,435,312) | (1,374,026) |
Provision for income taxes | ||
Net loss | (3,435,312) | (1,374,026) |
Other comprehensive loss, net of tax | ||
Foreign currency translation adjustments | (13,028) | (1,393) |
Total other comprehensive loss, net of tax | (13,028) | (1,393) |
Comprehensive loss | $ (3,448,340) | $ (1,375,419) |
Net loss per share, basic and diluted | $ (0.12) | $ (0.05) |
Weighted average number of common shares outstanding, basic and diluted | 29,128,427 | 26,090,623 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Apr. 30, 2020 | $ 24,749 | $ 5,214,970 | $ (5,036) | $ (10,228,513) | $ (4,993,830) |
Balance, shares at Apr. 30, 2020 | 24,749,354 | ||||
Shares issued related to note payable | $ 1,217 | (1,217) | |||
Stock Issued During Period, Shares, Other | 1,216,560 | ||||
Shares and warrants issued in connection with services | $ 244 | 65,582 | 65,826 | ||
Shares and warrants issued in connection with services | 243,800 | ||||
Foreign currency translation | (1,393) | (1,393) | |||
Net loss | (1,374,026) | (1,374,026) | |||
Balance at Jul. 31, 2020 | $ 26,210 | 5,279,335 | (6,429) | (11,602,539) | (6,303,423) |
Balance, shares at Jul. 31, 2020 | 26,209,714 | ||||
Balance at Apr. 30, 2021 | $ 27,643 | 10,365,056 | (20,170) | (28,823,273) | (18,450,744) |
Balance, shares at Apr. 30, 2021 | 27,642,828 | ||||
Shares issued for conversion of notes payable – related party | $ 1,637 | 6,218,366 | 6,220,003 | ||
Shares issued in connection with conversion of note payable, shares | 1,636,843 | ||||
Shares issued in connection with acquisition | $ 540 | 3,549,460 | 3,550,000 | ||
Shares issued in connection with acquisition,Shares | 540,000 | ||||
Shares and warrants issued in connection with services | $ 110 | 618,444 | 618,554 | ||
Shares and warrants issued in connection with services | 109,687 | ||||
Share-based compensation | $ 50 | 187,753 | 187,803 | ||
Share-based compensation, shares | 50,215 | ||||
Foreign currency translation | (13,028) | (13,028) | |||
Net loss | (3,435,312) | (3,435,312) | |||
Balance at Jul. 31, 2021 | $ 29,980 | $ 20,939,079 | $ (33,198) | $ (32,258,585) | $ (11,322,724) |
Balance, shares at Jul. 31, 2021 | 29,979,573 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (3,435,312) | $ (1,374,026) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization expense | 41,169 | |
Gain on change in fair value of derivatives | (4,327,344) | |
Shares and warrants issued in connection with services | 618,554 | 65,826 |
Share-based compensation | 187,803 | |
Loss (gain) on extinguishment of debt | 5,118,435 | (566,667) |
Amortization of debt discounts | 21,216 | 233,708 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 235,886 | (63,527) |
Inventories, net | (1,478,547) | (865,794) |
Prepaid expenses and other current assets | (685,519) | 262,752 |
Accounts payable and accrued expenses | 1,960,177 | (123,958) |
Accrued payroll and bonuses | 443,014 | 199,463 |
Deferred revenue | 1,139,552 | 465,273 |
Accrued interest - related party | 56,233 | 172,464 |
Net cash used in operating activities | (104,683) | (1,594,486) |
Cash flows from investing activities | ||
Note receivable issuance | (300,000) | |
Net cash used in investing activities | (300,000) | |
Cash flows from financing activities | ||
Proceeds from notes payable - related party | 500,000 | 1,500,000 |
Proceeds from note payable | 120,000 | |
Net cash provided by financing activities | 500,000 | 1,620,000 |
Effect of exchange rate fluctuations on cash and cash equivalents | (10,804) | (1,393) |
Net change in cash and cash equivalents | 84,513 | 24,121 |
Cash and cash equivalents, beginning of the period | 928,796 | 79,847 |
Cash and cash equivalents, end of the period | 1,013,309 | 103,968 |
Supplemental disclosure of cash flow information | ||
Interest paid | 50,833 | 50,000 |
Income taxes paid | 2,817 | |
Supplemental disclosure of non-cash investing and financing activities | ||
Shares issued for conversion of notes payable – related party | 6,220,003 | |
Shares issued in connection with acquisition | $ 3,550,000 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Jul. 31, 2021 | |
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 was 100 20,000,000 332,239 20,000,000 100 20,000,000 82 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 were no assets, liabilities or historical operational activity of Slinger Bag Canada at that time. On February 10, 2020, Slinger Bag Americas became the 100 On June 21, 2021, Slinger Bag Americas entered into a membership interest purchase agreement with Charles Ruddy to acquire a 100 The operations of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL and Foundation Sports are collectively referred to as the “Company.” The Company operates in the sporting and athletic goods business. The Company is the owner of the Slinger Launcher, which is a portable tennis ball launcher, as well as other associated tennis accessories. Effective February 25, 2020, the Company increased its number of authorized shares of common stock from 75,000,000 300,000,000 four-to-one forward split of its outstanding shares of common stock Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). As a result of the transactions described above, the accompanying consolidated financial statements include the combined results of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL and Foundation Sports for the periods presented. The contribution of the net assets of SBL is reflected as an equity contribution at historical cost on May 1, 2019, the beginning of the earliest period in which the entities were under common control. There was no historical activity in Slinger Bag Americas, Slinger Bag Canada or Slinger Bag UK prior to May 1, 2019. All intercompany accounts and transactions have been eliminated in consolidation. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Jul. 31, 2021 | |
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 $ 32,258,585 as of July 31, 2021, 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 debt and/or common stock. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Slinger Bag Inc.’s Annual Report on Form 10-K for the year ended April 30, 2021. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. Financial Statement Reclassification Certain prior year amounts have been reclassified in these consolidated financial statements to conform to current year presentation. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The majority of payments due from banks for credit card transactions process within 24 to 48 hours and are accordingly classified as cash and cash equivalents. Accounts Receivable The Company’s accounts receivable are non-interest bearing trade receivables resulting from the sale of products and payable over terms ranging from 15 to 60 days. The Company provides an allowance for doubtful accounts at the point when collection is considered doubtful. Once all collection efforts have been exhausted, the Company charges-off the receivable with the allowance for doubtful accounts. The Company had no Inventory Inventory is valued at the lower of the cost (determined principally on a first-in, first-out basis) or net realizable value. The Company’s valuation of inventory includes inventory reserves for inventory that will be sold below cost and the impact of inventory shrink. Inventory reserves are based on historical information and assumptions about future demand and inventory shrink trends. The Company’s inventory as of July 31, 2021 consisted of $ 2,095,966 of finished goods, $ 2,406,974 891,444 of capitalized duty and freight, and a $ 224,390 inventory reserve. The Company’s inventory as of April 30, 2021 consisted of $ 1,591,826 of finished goods, $ 1,777,028 of component and replacement parts, $ 347,362 of capitalized duty and freight, and a $ 23,000 inventory reserve. 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. While we may be exposed to credit risk, we consider the risk remote and do not expect that any such risk would result in a significant effect on our results of operations or financial condition. Revenue Recognition The Company recognizes revenue in accordance with 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 Company recognizes revenue for its performance obligation associated with its contracts with customers at a point in time once products are shipped. Amounts collected from customers in advance of shipping products ordered are reflected as deferred revenue on the accompanying consolidated balance sheets. The Company’s standard terms are non-cancelable and do not provide for the right-of-return, other than for defective merchandise covered under the Company’s standard warranty. The Company has not historically experienced any significant returns or warranty issues. Fair Value of Financial Instruments Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — Unobservable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximates fair value due to their short-term maturity. The Company’s derivative liabilities were calculated using Level 2 assumptions on the issuance and balance sheet dates via a Black-Scholes option pricing model and consisted of the following ending balances and gain (loss) amounts as of and for the three months ended July 31, 2021: SUMMARY OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2021 ending balance Gain (loss) for three months ended July 31, 2021 4/11/21 conversion of 12/24/20 note payable $ 1,236,660 $ (6,809 ) 4/15/21 note payable 8,357,476 4,226,122 5/26/21 conversion of notes payable – related party 4,944,903 108,031 Total $ 14,539,039 $ 4,327,344 The Black-Scholes option pricing model assumptions for the derivative liabilities during the three months ended July 31, 2021 and 2020 consisted of the following: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 1.7 3.0 N/A Stock price volatility 148 155 % N/A Risk free interest rate 0.16 0.35 % N/A Expected dividends 0 % N/A 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 that are more likely than not to be realized. Goodwill The Company accounts for goodwill and other intangible assets in accordance with ASC 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and intangible assets with indefinite lives not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The goodwill impairment test is a two-step test. In the first step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company determines the fair value of its reporting units with goodwill using a combination of a discounted cash flow and a market value approach. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the goodwill impairment test in order to determine the implied fair value of the reporting unit’s goodwill and compare it to the carrying value of the reporting unit’s goodwill. The activities in the second step include valuing the tangible and intangible assets and liabilities. If the implied fair value of goodwill is less than the carrying value, an impairment loss is recognized for the difference. There was no Intangible Assets Intangible assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020, as well as the intangible assets related to the purchase of Foundation Sports on June 21, 2021 (see Note 4). The trademark is amortized over its expected life of 20 years. Amortization expense for the three months ended July 31, 2021 and 2020 related to the trademark was $1,460 and zero, 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. If those net undiscounted cash flows do not exceed the carrying amount, impairment, if any, is based on the excess of the carrying amount over the fair value based on the market value or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. There was no Share-Based Payments The Company accounts for share-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation (ASC 718). Under the fair value recognition provisions of this topic, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. Warrants The Company grants warrants to key employees and executives as compensation on a discretionary basis. The Company also grants warrants in connection with certain note payable agreements and other key arrangements. The Company is required to estimate the fair value of share-based awards on the measurement date and recognize as expense that value of the portion of the award that is ultimately expected to vest over the requisite service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 6: Note Payable and Note 9: Shareholders’ Deficit. The warrants granted during the three months ended July 31, 2021 and 2020 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 10 N/A Stock price volatility 157 % N/A Risk free interest rate 1.63 % N/A Expected dividends 0 % N/A Foreign Currency Translation A portion of SBL’s operations are conducted in Israel and its functional currency is the Israeli Shekel, the Company’s operations of Slinger Bag Canada are conducted in its functional currency of Canadian Dollars, and the Company’s Slinger Bag UK operations are conducted in its functional currency of the British pound (“GBP”). The accounts of SBL, Slinger Bag Canada, and Slinger Bag UK have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Shareholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments on the consolidated statements of operations and comprehensive loss. Earnings Per Share Basic earnings per share are calculated by dividing income available to shareholders 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 6,921,299 zero 723,901 24,507,796 13,000,000 503,325 zero Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes which amends ASC 740, Income Taxes (“ASC 740”). This update is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application of ASC 740. This update is effective for fiscal years beginning after December 15, 2021. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis with earlier application permitted. The Company is currently evaluating the effect of this ASU on the Company’s financial statements and related disclosures. Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Jul. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 4: ACQUISITIONS On June 21, 2021, the Company completed one immaterial acquisition by entering into a membership interest purchase agreement (“MIPA”) with Charles Ruddy (the “Seller”) to acquire a 100% ownership stake in Foundation Sports Systems, LLC (“Foundation Sports”) in exchange for 1,000,000 shares of common stock of the Company to be issued to the Seller and two other Foundation Sports employees in three tranches (the “Purchase Price”): (i) 600,000 shares of common stock on the closing date, (ii) 200,000 shares of common stock on the first anniversary of the closing date and (iii) 200,000 shares of common stock on the second anniversary of the closing date (collectively, the “Shares”), provided that 10 % of the Shares of each tranche will be held back by the Company and not delivered to the recipients for a period of 12 months from the date of their issuance. The Shares are subject to a 12-month lock-up from their date of delivery during which time they may not be offered or sold by the Seller or any other recipient thereof without the express written consent of the Company. On June 23, 2021, the Company issued 540,000 shares of its common stock to the receipts under the MIPA, which consisted of 600,000 shares less a hold-back of 10 % (i.e., 60,000 shares). The Company allocated the aggregated purchase price for the acquisition based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the purchase price is detailed below: SCHEDULE OF INTANGIBLE ASSETS ACQUIRED Allocation of purchase price Trade name $ 70,000 Internally developed software 240,000 Customer relationships 2,000,000 Goodwill 1,240,000 Total purchase price $ 3,550,000 The trade name, internally developed software, and customer relationships will be amortized over their expected lives of 6 4 7 39,709 and zero |
NOTES PAYABLE _ RELATED PARTY
NOTES PAYABLE – RELATED PARTY | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE – RELATED PARTY | NOTE 5: NOTES PAYABLE – RELATED PARTY Beginning in October 2019, the Company has entered into several loan agreements with a related party entity controlled by the former shareholder of Slinger Bag Canada. Total outstanding borrowings from this related party as of April 30, 2021 amounted to $ 6,220,000 76,777 SUMMARY OF NOTES PAYABLE Note date Maturity date Interest rate April 30, 2021 6/1/2019 6/1/2021 9.5 % $ 1,700,000 6/30/2020 6/30/2021 9.5 % 120,000 8 notes from 10/2019 – 8/2020 9/1/2021 9.5 % 3,850,000 9/15/2020 9/15/2021 9.5 % 250,000 11/24/2020 11/24/2021 9.5 % 300,000 Total notes payable $ 6,220,000 On May 26, 2021, the Company and the related party lender entered into a note conversion agreement whereby the related party lender agreed to convert its total outstanding borrowings as of that date of $ 6,220,000 1,636,843 6,220,000 6,220,000 6,220,000 The Company evaluated the conversion option of the notes payable to shares under the guidance in ASC 815-40, Derivatives and Hedging, and determined the conversion option qualified for equity classification. The Company also evaluated the profit guarantee under ASC 815, Derivatives and Hedging, and determined it to be a make-whole provision, which is an embedded derivative within the host instrument. As the economic characteristics are dissimilar to the host instrument, the profit guarantee was bifurcated from the host instrument and stated as a separate derivative liability, which is marked to market at the end of each reporting period with the non-cash gain or loss recorded in the period as a gain or loss on derivative. On the date of conversion, the Company recognized a $ 5,118,435 6,220,000 6,220,003 shareholders’ deficit, the derivative liability of $ 5,052,934 65,498 . 11,279 The fair value of the derivative liability was $ 4,944,903 108,031 Per the terms of the note conversion agreement the accrued interest related to the notes payable was not converted into shares and is still due to the related party. The Company and the related party agreed that interest will continue to accrue on the outstanding accrued interest at a rate of 9.5 On July 23, 2021, the Company entered into a loan agreement with its related party lender for borrowings of $ 500,000 12 Total outstanding borrowings from this related party as of July 31, 2021 amounted to $ 500,000 56,233 172,464 803,869 747,636 |
NOTE PAYABLE
NOTE PAYABLE | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE | NOTE 6: NOTE PAYABLE On April 15, 2021, the Company entered into a $ 2,000,000 April 14, 2023 15 The Note is collateralized by all business assets, including patents, trademarks and other intellectual property. It is also collateralized by the ownership of Slinger Bag Americas, Slinger Bag Canada, SBL, and Slinger Bag UK. In connection with the Note, the Company issued 2,200,000 0.25 The exercise price has customary anti-dilution protection for stock splits, mergers, etc. Additionally, the warrants contain a stipulation that the Company will guarantee the value of the shares sold will be no less, on average, than $1.50 per share through April 15, 2023. If the average value of the shares sold is less than $1.50 per share, the Company will issue additional shares of common stock to compensate for the shortfall The Company evaluated the warrants and the profit guarantee under the guidance in ASC 815-40, Derivatives and Hedging, and determined they represent a derivative liability given the profit guarantee represents a make-whole provision that is not separated from the host instrument. The derivative liability is marked to market at the end of each reporting period with the non-cash gain or loss recorded in the period as a gain or loss on derivative (see Note 3). Amortization of the debt discount during the three months ended July 31, 2021 was $ 9,937 1,979,586 |
NOTE RECEIVABLE
NOTE RECEIVABLE | 3 Months Ended |
Jul. 31, 2021 | |
Receivables [Abstract] | |
NOTE RECEIVABLE | NOTE 7: NOTE RECEIVABLE On July 21, 2021, the Company entered into a Convertible Loan Agreement with PlaySight Interactive Ltd (the “Borrower”) wherein the Company granted the Borrower a $ 2,000,000 15 On July 26, 2021, the Company issued $ 300,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8: 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, amounts paid in satisfaction of liabilities, or accrued compensation that has been deferred. The advances are considered temporary in nature and have not been formalized by a promissory note. Amounts due to related parties were $ 1,736,177 1,283,464 The Company had outstanding notes payable of $ 500,000 6,220,000 803,869 747,636 The Company recognized net sales of $ 8,931 57,556 2,450 86,956 85,956 zero |
SHAREHOLDERS_ DEFICIT
SHAREHOLDERS’ DEFICIT | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ DEFICIT | NOTE 9: SHAREHOLDERS’ DEFICIT Common Stock Transactions During the Three Months Ended July 31, 2021 On May 26, 2021, the Company issued 1,636,843 6,220,003 On June 23, 2021, the Company issued 540,000 3,550,000 On July 6, 2021, the Company issued 50,215 187,803 On July 11, 2021, the Company issued 18,750 16,875 During the three months ended July 31, 2021, the Company granted an aggregate total of 90,937 60,000 468,671 Warrants Issued During the Three Months Ended July 31, 2021 On October 28, 2020, the Company granted 400,000 0.75 10 years 109,095 On October 29, 2020, the Company and the three members of its advisory board entered into agreements whereby each member will receive an aggregate number of warrants each quarter equal to $ 7,500 0.001 10 years 4,689 23,913 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10: COMMITMENTS AND CONTINGENCIES Leases The Company leases its office space under short-term leases with terms under a year. Total rent expense for the three months ended July 31, 2021 and 2020 amounted to $ 1,400 2,100 Contingencies From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company is not presently a party to any legal proceedings that it currently believes would individually or taken together have a material adverse effect on the Company’s business or financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11: SUBSEQUENT EVENTS On August 4, 2021, the Company entered into a loan agreement with its related party lender for borrowings of $ 500,000 12 On August 6, 2021, the Company consummated the closing (the “Closing”) of a private placement offering (the “Offering”) pursuant to the terms and conditions of that certain Securities Purchase Agreement, dated as of August 6, 2021 (the “Purchase Agreement”), between the Company and certain accredited investors (the “Purchasers”). At the Closing, the Company sold to the Purchasers (i) 8 11,000,000 7,333,334 11,000,000 The Convertible Notes mature on August 6, 2022 8 3.00 The Warrants are exercisable for five years August 6, 2021 3.00 In connection with the Closing, the lead placement agent for the Offering was granted 266,667 warrants that are exercisable for five years from August 6, 2021, at an exercise price of $ 3.30 (subject to adjustment as set forth in the Convertible Notes per the terms of the agreement). The Company used the net proceeds from the sale of the Securities to pay 100% of the outstanding principal and accrued interest through August 6, 2021 of the $ 2,000,000 15 On August 6, 2021, the Note payable holder (see Note 6) exercised its right to convert its 2,200,000 8,357,476 On August 6, 2021, the Company’s related party lender exercised its right to convert its 2,750,000 6,921,299 9,671,299 On August 11, 2021, the Company repaid the outstanding principal to its related party lender for the July 23, 2021 loan of $ 500,000 and the August 4, 2021 loan of $ 500,000 . On August 31, 2021, the Company’s related party lender cancelled its guarantee that the aggregate gross sales of its converted shares will be no less than $ 6,220,000 (see Note 5). In connection with the elimination of the profit guarantee the derivative liability ceased to exist and the value of the derivative as of July 31, 2021 of $ 4,944,903 will be derecognized from the consolidated balance sheets during the three months ended October 31, 2021. On July 21, 2021, the Company entered into a Convertible Loan Agreement with PlaySight Interactive Ltd (the Borrower) wherein the Company granted the Borrower a $ 2,000,000 15 700,000 On August 30, 2021, four of the Purchasers of the Convertible Notes that were issued on August 6, 2021 converted $ 2,000,000 666,668 On September 3, 2021, the Company granted an aggregate total of 10,100,000 0.001 10,000,000 3.42 100,000 10 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and based upon Securities and Exchange Commission rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the financial statements included in Slinger Bag Inc.’s Annual Report on Form 10-K for the year ended April 30, 2021. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. |
Financial Statement Reclassification | Financial Statement Reclassification Certain prior year amounts have been reclassified in these consolidated financial statements to conform to current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The majority of payments due from banks for credit card transactions process within 24 to 48 hours and are accordingly classified as cash and cash equivalents. |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable are non-interest bearing trade receivables resulting from the sale of products and payable over terms ranging from 15 to 60 days. The Company provides an allowance for doubtful accounts at the point when collection is considered doubtful. Once all collection efforts have been exhausted, the Company charges-off the receivable with the allowance for doubtful accounts. The Company had no |
Inventory | Inventory Inventory is valued at the lower of the cost (determined principally on a first-in, first-out basis) or net realizable value. The Company’s valuation of inventory includes inventory reserves for inventory that will be sold below cost and the impact of inventory shrink. Inventory reserves are based on historical information and assumptions about future demand and inventory shrink trends. The Company’s inventory as of July 31, 2021 consisted of $ 2,095,966 of finished goods, $ 2,406,974 891,444 of capitalized duty and freight, and a $ 224,390 inventory reserve. The Company’s inventory as of April 30, 2021 consisted of $ 1,591,826 of finished goods, $ 1,777,028 of component and replacement parts, $ 347,362 of capitalized duty and freight, and a $ 23,000 inventory reserve. |
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. While we may be exposed to credit risk, we consider the risk remote and do not expect that any such risk would result in a significant effect on our results of operations or financial condition. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with 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 Company recognizes revenue for its performance obligation associated with its contracts with customers at a point in time once products are shipped. Amounts collected from customers in advance of shipping products ordered are reflected as deferred revenue on the accompanying consolidated balance sheets. The Company’s standard terms are non-cancelable and do not provide for the right-of-return, other than for defective merchandise covered under the Company’s standard warranty. The Company has not historically experienced any significant returns or warranty issues. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — Unobservable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximates fair value due to their short-term maturity. The Company’s derivative liabilities were calculated using Level 2 assumptions on the issuance and balance sheet dates via a Black-Scholes option pricing model and consisted of the following ending balances and gain (loss) amounts as of and for the three months ended July 31, 2021: SUMMARY OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2021 ending balance Gain (loss) for three months ended July 31, 2021 4/11/21 conversion of 12/24/20 note payable $ 1,236,660 $ (6,809 ) 4/15/21 note payable 8,357,476 4,226,122 5/26/21 conversion of notes payable – related party 4,944,903 108,031 Total $ 14,539,039 $ 4,327,344 The Black-Scholes option pricing model assumptions for the derivative liabilities during the three months ended July 31, 2021 and 2020 consisted of the following: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 1.7 3.0 N/A Stock price volatility 148 155 % N/A Risk free interest rate 0.16 0.35 % N/A Expected dividends 0 % N/A |
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 that are more likely than not to be realized. Goodwill The Company accounts for goodwill and other intangible assets in accordance with ASC 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and intangible assets with indefinite lives not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The goodwill impairment test is a two-step test. In the first step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company determines the fair value of its reporting units with goodwill using a combination of a discounted cash flow and a market value approach. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the goodwill impairment test in order to determine the implied fair value of the reporting unit’s goodwill and compare it to the carrying value of the reporting unit’s goodwill. The activities in the second step include valuing the tangible and intangible assets and liabilities. If the implied fair value of goodwill is less than the carrying value, an impairment loss is recognized for the difference. There was no |
Intangible Assets | Intangible Assets Intangible assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020, as well as the intangible assets related to the purchase of Foundation Sports on June 21, 2021 (see Note 4). The trademark is amortized over its expected life of 20 years. Amortization expense for the three months ended July 31, 2021 and 2020 related to the trademark was $1,460 and zero, 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. If those net undiscounted cash flows do not exceed the carrying amount, impairment, if any, is based on the excess of the carrying amount over the fair value based on the market value or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. There was no |
Share-Based Payments | Share-Based Payments The Company accounts for share-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation (ASC 718). Under the fair value recognition provisions of this topic, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. |
Warrants | Warrants The Company grants warrants to key employees and executives as compensation on a discretionary basis. The Company also grants warrants in connection with certain note payable agreements and other key arrangements. The Company is required to estimate the fair value of share-based awards on the measurement date and recognize as expense that value of the portion of the award that is ultimately expected to vest over the requisite service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 6: Note Payable and Note 9: Shareholders’ Deficit. The warrants granted during the three months ended July 31, 2021 and 2020 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 10 N/A Stock price volatility 157 % N/A Risk free interest rate 1.63 % N/A Expected dividends 0 % N/A |
Foreign Currency Translation | Foreign Currency Translation A portion of SBL’s operations are conducted in Israel and its functional currency is the Israeli Shekel, the Company’s operations of Slinger Bag Canada are conducted in its functional currency of Canadian Dollars, and the Company’s Slinger Bag UK operations are conducted in its functional currency of the British pound (“GBP”). The accounts of SBL, Slinger Bag Canada, and Slinger Bag UK have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Shareholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments on the consolidated statements of operations and comprehensive loss. |
Earnings Per Share | Earnings Per Share Basic earnings per share are calculated by dividing income available to shareholders 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 6,921,299 zero 723,901 24,507,796 13,000,000 503,325 zero |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes which amends ASC 740, Income Taxes (“ASC 740”). This update is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application of ASC 740. This update is effective for fiscal years beginning after December 15, 2021. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis with earlier application permitted. The Company is currently evaluating the effect of this ASU on the Company’s financial statements and related disclosures. Other recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
SUMMARY OF DERIVATIVE LIABILITIES | The Company’s derivative liabilities were calculated using Level 2 assumptions on the issuance and balance sheet dates via a Black-Scholes option pricing model and consisted of the following ending balances and gain (loss) amounts as of and for the three months ended July 31, 2021: SUMMARY OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2021 ending balance Gain (loss) for three months ended July 31, 2021 4/11/21 conversion of 12/24/20 note payable $ 1,236,660 $ (6,809 ) 4/15/21 note payable 8,357,476 4,226,122 5/26/21 conversion of notes payable – related party 4,944,903 108,031 Total $ 14,539,039 $ 4,327,344 |
SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD | The Black-Scholes option pricing model assumptions for the derivative liabilities during the three months ended July 31, 2021 and 2020 consisted of the following: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 1.7 3.0 N/A Stock price volatility 148 155 % N/A Risk free interest rate 0.16 0.35 % N/A Expected dividends 0 % N/A |
Warrant [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD | The warrants granted during the three months ended July 31, 2021 and 2020 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD 2021 2020 Expected life in years 10 N/A Stock price volatility 157 % N/A Risk free interest rate 1.63 % N/A Expected dividends 0 % N/A |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS ACQUIRED | The Company allocated the aggregated purchase price for the acquisition based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the purchase price is detailed below: SCHEDULE OF INTANGIBLE ASSETS ACQUIRED Allocation of purchase price Trade name $ 70,000 Internally developed software 240,000 Customer relationships 2,000,000 Goodwill 1,240,000 Total purchase price $ 3,550,000 |
NOTES PAYABLE _ RELATED PARTY (
NOTES PAYABLE – RELATED PARTY (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
SUMMARY OF NOTES PAYABLE | SUMMARY OF NOTES PAYABLE Note date Maturity date Interest rate April 30, 2021 6/1/2019 6/1/2021 9.5 % $ 1,700,000 6/30/2020 6/30/2021 9.5 % 120,000 8 notes from 10/2019 – 8/2020 9/1/2021 9.5 % 3,850,000 9/15/2020 9/15/2021 9.5 % 250,000 11/24/2020 11/24/2021 9.5 % 300,000 Total notes payable $ 6,220,000 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | Sep. 16, 2019 | Aug. 23, 2019 | Jul. 31, 2021 | Jun. 21, 2021 | Apr. 30, 2021 | Feb. 25, 2020 | Feb. 24, 2020 | Feb. 10, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | 75,000,000 | ||||
Stock split, description | four-to-one forward split of its outstanding shares of common stock | |||||||
Sole Shareholder of SBL [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of ownership | 82.00% | |||||||
Number of shares owned | 20,000,000 | |||||||
Slinger Bag Americas Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of ownership | 100.00% | |||||||
Number of shares exchanged | 20,000,000 | |||||||
Slinger Bag Ltd [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of ownership | 100.00% | |||||||
Foundation Sports Systems L L C [Member] | Charles Ruddy [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of ownership | 100.00% | |||||||
Stock Purchase Agreement [Member] | Slinger Bag Americas Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Percentage of ownership | 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 ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ 32,258,585 | $ 28,823,273 |
SUMMARY OF DERIVATIVE LIABILITI
SUMMARY OF DERIVATIVE LIABILITIES (Details) | 3 Months Ended |
Jul. 31, 2021USD ($) | |
Summary of Investment Holdings [Line Items] | |
Derivative Instruments and Hedges, Liabilities | $ 14,539,039 |
Derivative, Gain (Loss) on Derivative, Net | 4,327,344 |
Derivative Instruments and Hedges, Liabilities | 14,539,039 |
Convertible Notes Payable [Member] | |
Summary of Investment Holdings [Line Items] | |
Derivative Instruments and Hedges, Liabilities | 1,236,660 |
Derivative, Gain (Loss) on Derivative, Net | (6,809) |
Derivative Instruments and Hedges, Liabilities | 1,236,660 |
Notes Payable, Other Payables [Member] | |
Summary of Investment Holdings [Line Items] | |
Derivative Instruments and Hedges, Liabilities | 8,357,476 |
Derivative, Gain (Loss) on Derivative, Net | 4,226,122 |
Derivative Instruments and Hedges, Liabilities | 8,357,476 |
Conversion Notes Payable Related Party [Member] | |
Summary of Investment Holdings [Line Items] | |
Derivative Instruments and Hedges, Liabilities | 4,944,903 |
Derivative, Gain (Loss) on Derivative, Net | 108,031 |
Derivative Instruments and Hedges, Liabilities | $ 4,944,903 |
SUMMARY OF WARRANTS GRANTED VAL
SUMMARY OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD (Details) - Valuation Technique, Option Pricing Model [Member] | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 01, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | |
Measurement Input, Expected Term [Member] | Warrant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, term | 10 years | ||
Measurement Input, Expected Term [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, term | 1 year 8 months 12 days | ||
Measurement Input, Expected Term [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, term | 3 years | ||
Measurement Input, Price Volatility [Member] | Warrant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 1.57 | ||
Measurement Input, Price Volatility [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 1.48 | ||
Measurement Input, Price Volatility [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 1.55 | ||
Measurement Input, Risk Free Interest Rate [Member] | Warrant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 0.0163 | ||
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 0.0016 | ||
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 0.0035 | ||
Measurement Input, Expected Dividend Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Warrant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Measurement input, rate | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2021 | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Inventory, Finished Goods, Gross | 2,095,966 | 1,591,826 | ||
Inventory, Raw Materials and Supplies, Gross | 2,406,974 | 1,777,028 | ||
[custom:CapitalizedDutyAndFreight-0] | 891,444 | 347,362 | ||
Inventory Adjustments | 224,390 | $ 23,000 | ||
Goodwill impairment charges | $ 0 | $ 0 | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Antidilutive securities earnings per share | 6,921,299 | 6,921,299 | ||
Warrants [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Antidilutive securities earnings per share | 24,507,796 | 13,000,000 | ||
Make Whole Provisions [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Antidilutive securities earnings per share | 503,325 | 0 | ||
Notes Payable [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Antidilutive securities earnings per share | 0 | 723,901 |
SCHEDULE OF INTANGIBLE ASSETS A
SCHEDULE OF INTANGIBLE ASSETS ACQUIRED (Details) - Foundation Sports [Member] | Jun. 21, 2021USD ($) |
Business Acquisition [Line Items] | |
Total purchase price | $ 3,550,000 |
Goodwill [Member] | |
Business Acquisition [Line Items] | |
Total purchase price | 1,240,000 |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Total purchase price | 70,000 |
Computer Software, Intangible Asset [Member] | |
Business Acquisition [Line Items] | |
Total purchase price | 240,000 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Total purchase price | $ 2,000,000 |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) - USD ($) | Jun. 23, 2021 | Jun. 21, 2021 | Dec. 03, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
[custom:HoldBackPercentage-0] | 10.00% | 10.00% | |||
Stock Issued During Period, Shares, New Issues | 6,220,000 | ||||
Intangible assets amortized over expected lives | 20 years | ||||
Amortization expense | $ 41,169 | ||||
Foundation Sports [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 39,709 | $ 0 | |||
Trade Names [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortized over expected lives | 6 years | ||||
Computer Software, Intangible Asset [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortized over expected lives | 4 years | ||||
Customer Relationships [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortized over expected lives | 7 years | ||||
Membership Interest Purchase Agreement [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
[custom:MembershipInterestPurchaseAgreementDescription] | the Company completed one immaterial acquisition by entering into a membership interest purchase agreement (“MIPA”) with Charles Ruddy (the “Seller”) to acquire a 100% ownership stake in Foundation Sports Systems, LLC (“Foundation Sports”) in exchange for 1,000,000 shares of common stock of the Company to be issued to the Seller and two other Foundation Sports employees in three tranches (the “Purchase Price”): (i) | ||||
[custom:HoldBackShares] | 600,000 | 600,000 | |||
Stock Issued During Period, Shares, New Issues | 540,000 |
SUMMARY OF NOTES PAYABLE (Detai
SUMMARY OF NOTES PAYABLE (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Jul. 31, 2021 | |
Short-term Debt [Line Items] | ||
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 6,143,223 | $ 500,000 |
Notes Payable | $ 6,220,000 | |
Loan Agreement [Member] | Former Shareholder [Member] | Notes Payable One [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument maturity date | Jun. 1, 2019 | |
Debt instrument extended maturity date | Jun. 1, 2021 | |
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 1,700,000 | |
Loan Agreement [Member] | Former Shareholder [Member] | Notes Payable Two [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument maturity date | Jun. 30, 2020 | |
Debt instrument extended maturity date | Jun. 30, 2021 | |
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 120,000 | |
Loan Agreement [Member] | Former Shareholder [Member] | Notes Payable Three [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument extended maturity date | Sep. 1, 2021 | |
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 3,850,000 | |
Maturity date description | 8 notes from 10/2019 – 8/2020 | |
Loan Agreement [Member] | Former Shareholder [Member] | Notes Payable Four [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument maturity date | Sep. 15, 2020 | |
Debt instrument extended maturity date | Sep. 15, 2021 | |
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 250,000 | |
Loan Agreement [Member] | Former Shareholder [Member] | Notes Payable Five [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument maturity date | Nov. 24, 2020 | |
Debt instrument extended maturity date | Nov. 24, 2021 | |
Interest rate | 9.50% | |
Notes Payable, Related Parties, Current | $ 300,000 |
NOTES PAYABLE _ RELATED PARTY_2
NOTES PAYABLE – RELATED PARTY (Details Narrative) - USD ($) | May 26, 2021 | Dec. 03, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 23, 2021 | Apr. 30, 2021 | Apr. 30, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowings | $ 500,000 | $ 6,143,223 | |||||
Debt discount | 65,498 | ||||||
Number of stock issued | 6,220,000 | ||||||
Extinguishment of Debt, Amount | 5,118,435 | ||||||
Convertible note payable | $ 6,220,003 | ||||||
Derivative Liability | 5,052,934 | ||||||
Debt Instrument, Unamortized Discount, Current | 11,279 | ||||||
Derivative Liability, Fair Value, Gross Liability | 4,944,903 | ||||||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 108,031 | ||||||
Interest rate | 9.50% | ||||||
Interest expense - related party | $ 56,233 | $ 172,464 | |||||
Due to Related Parties, Current | 803,869 | 747,636 | |||||
Related Party [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowings | $ 500,000 | ||||||
Lender [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Debt discount | 76,777 | ||||||
Loan Agreement [Member] | Related Party [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowings | $ 500,000 | ||||||
Interest rate | 12.00% | ||||||
Loan Agreement [Member] | Former Shareholder [Member] | Related Party [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowings | $ 6,220,000 | ||||||
Note Conversion Agreement [Member] | Related Party Lender [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Borrowings | $ 6,220,000 | ||||||
Number of stock issued | 1,636,843 |
NOTE PAYABLE (Details Narrative
NOTE PAYABLE (Details Narrative) - USD ($) | Apr. 15, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 |
Short-term Debt [Line Items] | ||||
Note payable | $ 6,220,000 | |||
Interest rate | 9.50% | |||
Amortization of debt discount | $ 21,216 | $ 233,708 | ||
Unamortized debt discount | 11,279 | |||
Notes Payable [Member] | ||||
Short-term Debt [Line Items] | ||||
Note payable | $ 2,000,000 | |||
Debt instrument maturity date | Apr. 14, 2023 | |||
Interest rate | 15.00% | |||
Number of warrants issued to purchase common shares | 2,200,000 | |||
Warrant excercise price | $ 0.25 | |||
Warrant description | The exercise price has customary anti-dilution protection for stock splits, mergers, etc. Additionally, the warrants contain a stipulation that the Company will guarantee the value of the shares sold will be no less, on average, than $1.50 per share through April 15, 2023. If the average value of the shares sold is less than $1.50 per share, the Company will issue additional shares of common stock to compensate for the shortfall | |||
Amortization of debt discount | 9,937 | |||
Unamortized debt discount | $ 1,979,586 |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) - USD ($) | Jul. 26, 2021 | Jul. 31, 2021 | Jul. 21, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Interest rate | 9.50% | ||
Loan Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Proceeds from line of credit | $ 300,000 | ||
Loan Agreement [Member] | PlaySight Interactive Ltd [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Debt Instrument face amount | $ 2,000,000 | ||
Interest rate | 15.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 1,736,177 | $ 1,283,464 | |
Outstanding notes payable | 500,000 | 6,220,000 | |
Accrued interest - related party | 803,869 | 747,636 | |
Recognized net sales | 8,931 | $ 57,556 | |
Deferred revenue | 1,239,083 | 99,531 | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable | 2,450 | 86,956 | |
Deferred revenue | $ 85,956 | $ 0 |
SHAREHOLDERS_ DEFICIT (Details
SHAREHOLDERS’ DEFICIT (Details Narrative) - USD ($) | Jul. 11, 2021 | Jul. 06, 2021 | Jun. 23, 2021 | May 26, 2021 | May 26, 2021 | Dec. 03, 2020 | Oct. 28, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 29, 2020 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Number of stock issued, value | $ 3,550,000 | |||||||||
Share-based compensation expense | 187,803 | |||||||||
Number of shares issued during period, shares | 6,220,000 | |||||||||
Foundation Sports [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Number of stock issued | 540,000 | |||||||||
Number of stock issued, value | $ 3,550,000 | |||||||||
Related Party Lender [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Number of stock issued | 1,636,843 | |||||||||
Fair value of common stock | $ 6,220,003 | |||||||||
Two Employees [Member] | Services Rendered in Lieu Of Cash [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Shares issued for services, shares | 50,215 | |||||||||
Share-based compensation expense | $ 187,803 | |||||||||
Vendor [Member] | Marketing and Other Services [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Shares issued for services, shares | 18,750 | |||||||||
Vendor [Member] | Marketing and Other Services [Member] | Operating Expense [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Share based compensation expenses | $ 16,875 | |||||||||
Six New Brand Ambassadors [Member] | As Compensation [Member] | Common Stock [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Number of shares issued during period, shares | 90,937 | |||||||||
Six New Brand Ambassadors [Member] | As Compensation [Member] | Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Number of shares issued during period, shares | 60,000 | |||||||||
Brand Ambassadors [Member] | Operating Expense [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Share based compensation expenses | $ 468,671 | |||||||||
Service Provider [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Warrants, exercise price | $ 0.75 | |||||||||
Warrants, term | 10 years | |||||||||
Service Provider [Member] | Warrant [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Share based compensation expenses | 109,095 | |||||||||
Number of warrants granted | 400,000 | |||||||||
Three Members [Member] | As Compensation [Member] | ||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||
Share based compensation expenses | $ 23,913 | |||||||||
Warrants, exercise price | $ 0.001 | |||||||||
Warrants, term | 10 years | |||||||||
Number of warrants granted | $ 7,500 | |||||||||
Warrant issued for employees and officers compensation | 4,689 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 1,400 | $ 2,100 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Sep. 03, 2021 | Aug. 31, 2021 | Aug. 30, 2021 | Aug. 11, 2021 | Aug. 06, 2021 | Apr. 15, 2021 | Aug. 26, 2021 | Aug. 04, 2021 | Jul. 31, 2021 | Jul. 21, 2021 | Apr. 30, 2021 |
Subsequent Event [Line Items] | |||||||||||
Borrowings | $ 500,000 | $ 6,143,223 | |||||||||
Interest rate | 9.50% | ||||||||||
Value of derivative | $ 8,357,476 | ||||||||||
Common shares issuable | 29,979,573 | 27,642,828 | |||||||||
Notes Payable [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 15.00% | ||||||||||
Convertible notes maturity date | Apr. 14, 2023 | ||||||||||
Number of warrants issued to purchase common shares | 2,200,000 | ||||||||||
Convertible Loan Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 15.00% | ||||||||||
Debt Instrument face amount | $ 2,000,000 | ||||||||||
Related Party [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowings | $ 500,000 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Value of derivative | $ 4,944,903 | ||||||||||
Subsequent Event [Member] | Employees And Officers [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Options granted | 10,100,000 | ||||||||||
Options term | 10 years | ||||||||||
Subsequent Event [Member] | Employees And Officers [Member] | Exercise Price One [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Options granted | 10,000,000 | ||||||||||
Options granted, exercise price | $ 0.001 | ||||||||||
Subsequent Event [Member] | Employees And Officers [Member] | Exercise Price Two [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Options granted | 100,000 | ||||||||||
Options granted, exercise price | $ 3.42 | ||||||||||
Subsequent Event [Member] | Notes Payable [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 15.00% | ||||||||||
Number of warrants issued to purchase common shares | 2,200,000 | ||||||||||
Subsequent Event [Member] | Convertible Notes [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt instrument converted amount | $ 2,000,000 | ||||||||||
Number of shares issued related to accrued interest | 666,668 | ||||||||||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Interest rate | 8.00% | ||||||||||
Senior convertible notes | $ 11,000,000 | ||||||||||
Warrants issued to purchase of common stock, shares | 7,333,334 | ||||||||||
Gross proceeds from issuance of senior convertible notes | $ 11,000,000 | ||||||||||
Convertible notes maturity date | Aug. 6, 2022 | ||||||||||
Conversion price | $ 3 | ||||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||||
Warrants rights date from which warrants exercisable | Aug. 6, 2021 | ||||||||||
Warrants exercise price | $ 3 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 266,667 | ||||||||||
Warrant, Exercise Price, Increase | $ 3.30 | ||||||||||
Repayments of notes payable | $ 2,000,000 | ||||||||||
Subsequent Event [Member] | Convertible Loan Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt Instrument face amount | $ 700,000 | ||||||||||
Subsequent Event [Member] | Related Party [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowings | $ 500,000 | ||||||||||
Interest rate | 8.00% | 12.00% | |||||||||
Number of warrants issued to purchase common shares | 2,750,000 | ||||||||||
Common shares issuable | 6,921,299 | ||||||||||
Convetible shares of common stock | 9,671,299 | ||||||||||
Repayments of Related Party Debt | $ 500,000 | ||||||||||
Conversion of Stock, Amount Converted | $ 6,220,000 | ||||||||||
Subsequent Event [Member] | Related Party One [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Repayments of Related Party Debt | $ 500,000 |