Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2022 | Jun. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 01-41423 | |
Entity Registrant Name | CONNEXA SPORTS TECHNOLOGIES INC. | |
Entity Central Index Key | 0001674440 | |
Entity Tax Identification Number | 61-1789640 | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Title of 12(b) Security | common stock, par value $0.001 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,394,429 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,602,282 | $ 1,424,360 |
Restricted cash | 146,960 | 156,724 |
Accounts receivable, net | 1,371,630 | 1,322,370 |
Inventories, net | 7,206,103 | 8,185,144 |
Prepaid inventory | 1,508,279 | 499,353 |
Right of use asset - operating leases | 172,109 | 239,689 |
Contract assets | 203,236 | 235,526 |
Prepaid expenses and other current assets | 405,817 | 762,930 |
Total Current Assets | 12,616,416 | 12,826,096 |
Non-Current Assets: | ||
Fixed assets, net of depreciation | 137,091 | 174,217 |
Contract assets, net of current portion | 195,757 | 209,363 |
Finished products used in operations, net | 4,580,429 | 4,693,575 |
Intangible assets, net of amortization | 23,959,328 | 24,316,502 |
Goodwill | 32,643,193 | 32,643,193 |
Total Non-Current Assets | 61,515,798 | 62,036,850 |
TOTAL ASSETS | 74,132,214 | 74,862,946 |
Current Liabilities: | ||
Accounts payable | 6,587,077 | 6,465,373 |
Accrued expenses | 6,719,830 | 5,602,011 |
Related party purchase obligation | 500,000 | |
Contract liabilities | 2,455,448 | 2,656,706 |
Lease liability - operating leases | 147,750 | 237,204 |
Accrued interest | 13,260 | 708,677 |
Accrued interest - related party | 969,876 | 908,756 |
Current portion of convertible notes payable, net of discount | 10,327,778 | |
Derivative liabilities | 1,756,284 | 5,443,779 |
Contingent consideration | 418,455 | 1,334,000 |
Other current liabilities | 102,819 | 156,862 |
Total Current Liabilities | 23,036,690 | 38,980,522 |
Long-Term Liabilities: | ||
Notes payable related parties, net of current portion | 2,000,000 | 2,000,000 |
Contract liabilities, net of current portion | 1,322,164 | 1,370,492 |
Total Long-Term Liabilities | 3,322,164 | 3,370,492 |
Total Liabilities | 26,358,354 | 42,351,014 |
Commitments and contingency | ||
SHAREHOLDERS’ DEFICIT | ||
Common stock, par value, $0.001, 300,000,000 shares authorized, 10,257,986 and 4,194,836 shares issued and outstanding as of July 31, 2022 and April 30, 2022, respectively | 10,258 | 4,195 |
Additional paid in capital | 132,513,357 | 113,049,700 |
Accumulated deficit | (84,863,356) | (80,596,925) |
Accumulated other comprehensive income (loss) | 113,101 | 54,962 |
Total Stockholders’ Deficit | 47,773,360 | 32,511,932 |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 74,132,214 | 74,862,946 |
Nonrelated Party [Member] | ||
Current Liabilities: | ||
Current portion of notes payable | $ 3,865,891 | $ 4,639,376 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2022 | Apr. 30, 2022 |
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 | 10,257,986 | 4,194,836 |
Common stock, shares outstanding | 10,257,986 | 4,194,836 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Related Party Transaction [Line Items] | ||
NET SALES | $ 4,946,449 | $ 2,537,573 |
COST OF SALES | 3,554,391 | 1,752,351 |
GROSS PROFIT | 1,392,058 | 785,222 |
OPERATING EXPENSES | ||
Selling and marketing expenses | 1,198,509 | 707,097 |
General and administrative expenses | 4,343,497 | 2,394,799 |
Research and development costs | 834,774 | 174,048 |
Total Operating Expenses | 6,376,780 | 3,275,944 |
OPERATING LOSS | (4,984,722) | (2,490,722) |
NON-OPERATING INCOME (EXPENSE) | ||
Amortization of debt discounts | (2,872,222) | (21,216) |
Loss on extinguishment of debt | (5,118,435) | |
Change in fair value of derivative liability | 3,687,495 | 4,327,344 |
Interest expense | (50,833) | |
Total Non-Operating Income (Expenses) | 718,291 | (944,590) |
NET LOSS FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (4,266,431) | (3,435,312) |
Provision for income taxes | ||
NET LOSS | (4,266,431) | (3,435,312) |
Other comprehensive income (loss) Foreign currency translations adjustment | 58,139 | (13,028) |
Comprehensive income (loss) | $ (4,208,292) | $ (3,448,340) |
Net loss per share - basic | $ (0.61) | $ (1.18) |
Net loss per share - diluted | $ (0.61) | $ (1.18) |
Weighted average common shares outstanding - basic | 7,026,109 | 2,912,843 |
Weighted average common shares outstanding - diluted | 7,026,109 | 2,912,843 |
Nonrelated Party [Member] | ||
NON-OPERATING INCOME (EXPENSE) | ||
Interest expense | $ (35,861) | $ (76,050) |
Related Party [Member] | ||
NON-OPERATING INCOME (EXPENSE) | ||
Interest expense | $ (61,121) | $ (56,233) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Apr. 30, 2021 | $ 2,764 | $ 10,389,935 | $ (20,170) | $ (28,823,273) | $ (18,450,744) |
Beginning balance, shares at Apr. 30, 2021 | 2,764,283 | ||||
Stock issued for: | |||||
Conversion of notes payable - related parties | $ 164 | 6,219,839 | 6,220,003 | ||
Conversion of notes payable - related parties, shares | 163,694 | ||||
Acquisition | $ 54 | 3,549,946 | 3,550,000 | ||
Acquisitions, shares | 54,000 | ||||
Services | $ 11 | 618,543 | 618,554 | ||
Services, shares | 10,969 | ||||
Share-based compensation | $ 5 | 187,798 | 187,803 | ||
Share-based compensation, shares | 5,022 | ||||
Change in comprehensive income | (13,028) | (13,028) | |||
Net loss for the period | (3,435,312) | (3,435,312) | |||
Ending balance, value at Jul. 31, 2021 | $ 2,998 | 20,966,061 | (33,198) | (32,258,585) | (11,322,724) |
Ending balance, shares at Jul. 31, 2021 | 2,997,968 | ||||
Beginning balance, value at Apr. 30, 2022 | $ 4,195 | 113,049,700 | 54,962 | (80,596,925) | 32,511,932 |
Beginning balance, shares at Apr. 30, 2022 | 4,194,836 | ||||
Stock issued for: | |||||
Acquisition | $ 598 | 914,947 | 915,545 | ||
Acquisitions, shares | 598,396 | ||||
Services | $ 25 | 35,225 | 35,250 | ||
Services, shares | 25,000 | ||||
Share-based compensation | 277,625 | 277,625 | |||
Change in comprehensive income | 58,139 | 58,139 | |||
Net loss for the period | (4,266,431) | (4,266,431) | |||
Conversion of notes payable | $ 4,389 | 14,041,911 | 14,046,300 | ||
Conversion of notes payable - related parties, shares | 4,389,469 | ||||
Cash | $ 1,049 | 4,193,951 | 4,195,000 | ||
Cash, shares | 1,048,750 | ||||
Fractional share issuance | $ 2 | (2) | |||
Fractional share issuance, shares | 1,535 | ||||
Ending balance, value at Jul. 31, 2022 | $ 10,258 | $ 132,513,357 | $ 113,101 | $ (84,863,356) | $ 47,773,360 |
Ending balance, shares at Jul. 31, 2022 | 10,257,986 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
CASH FLOW FROM OPERTING ACTIVIITES | ||
Net loss | $ (4,266,431) | $ (3,435,312) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 267,325 | 41,169 |
Change in fair value of derivartive liability | (3,565,273) | (4,327,344) |
Shares and warrants issued for services | 35,250 | 618,554 |
Share-based compensation | 277,625 | 187,803 |
Loss on extinguishment of debt | 5,118,435 | |
Amortization of debt discounts | 2,872,222 | 21,216 |
Changes in assets and liabilities, net of acquired amounts | ||
Accounts receivable | 59,891 | 235,886 |
Inventories | 970,026 | (1,478,547) |
Prepaid inventory | (1,009,926) | |
Contract assets | 45,896 | |
Right of use assets - operating leases | 67,580 | |
Prepaid expenses and other current assets | 367,270 | (685,519) |
Accounts payable and accrued expenses | 861,028 | 2,403,191 |
Contract liabilities | (191,366) | 1,139,552 |
Lease liability - operating leases | (89,454) | |
Other current liabilities | (218,992) | |
Accrued interest | 150,881 | |
Accrued interest - related parties | 61,120 | 56,233 |
Total adjustments | 961,103 | 3,330,629 |
Net cash used in operating activities | (3,305,328) | (104,683) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Note receivable issuance | (300,000) | |
Net cash used in investing activities | (300,000) | |
CASH FLOWS FROM FINANCING ACTIVITES | ||
Proceeds from issuance of common stock for cash | 4,195,000 | |
Proceeds from related party notes payable | 925,000 | 500,000 |
Payments of notes payable - related parties | (15,386) | |
Payments of notes payable | (1,698,485) | |
Net cash provided by financing activities | 3,406,129 | 500,000 |
Effect of exchange rate fluctuations on cash and cash equivalents | 67,357 | (10,804) |
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH | 168,158 | 84,513 |
CASH AND RESTRICTED CASH - BEGINNING OF PERIOD | 1,581,084 | 928,796 |
CASH AND RESTRICTED CASH - END OF PERIOD | 1,749,242 | 1,013,309 |
CASH PAID DURING THE PERIOD FOR: | ||
Interest expense | 50,833 | |
Income taxes | 2,817 | |
SUPPLEMENTAL INFORMATION - NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Shares issued in connection with acquisition | 3,550,000 | |
Conversion of convertible notes payable and accrued interest to common stock | 14,046,300 | 6,220,003 |
Shares issued for contingent consideration | $ 915,545 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | Note 1: ORGANIZATION AND NATURE OF BUSINESS 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 2,000,000 332,239 2,000,000 100 2,000,000 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. 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 75 3,486,599 On February 2, 2022, the Company entered into a share purchase agreement with Flixsense Pty, Ltd. (“Gameface”). As a result of the share purchase agreement, Gameface would become a wholly owned subsidiary of the Company (refer to Note 5). On February 22, 2022, the Company entered into a merger agreement with PlaySight Interactive Ltd. (“PlaySight”) and Rohit Krishnan (the “Shareholders’ Representative”). As a result of the merger agreement, PlaySight would become a wholly owned subsidiary of the Company (refer to Note 5). In November 2022, the Company sold PlaySight and recorded a loss on the sale. See Note 18 for further details on the sale of PlaySight. On May 16, 2022, the Company changed its domicile from Nevada to Delaware. On April 7, 2022, the Company effected a name change to Connexa Sports Technologies Inc. We also changed our ticker symbol, “CNXA”. Connexa is now the holding company under which Slinger Bag, PlaySight, Gameface and Foundation Sports reside. The operations of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL, Foundation Sports and Gameface are collectively referred to as the “Company.” On June 14, 2022, the Company effected a 1-for-10 reverse stock split The Company operates in the sport equipment and technology business. The Company is the owner of the Slinger Launcher, which is a portable tennis ball launcher as well as other associated tennis accessories and Gameface AI an Australian artificial intelligence sports software company. Basis of Presentation The accompanying 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 condensed consolidated financial statements include the combined results of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL, PlaySight, Foundation Sports, and Gameface for the three months ended July 31, 2022 and 2021. The Company reports Gameface on a one-month calendar lag allowing for the timely preparation of financial statements. Gameface operates on fiscal year end periods as of December 31. For the period ended July 31, 2022, the Company reported both Gameface as of the second quarter ended June 30, 2022. This one-month reporting lag is with the exception of significant transactions or events that occur during the intervening period. The Company did not identify any significant transactions during the one month ended July 31, 2022 at Gameface that would need to be disclosed as not included within the Company’s consolidated financial statements. Impact of COVID-19 Pandemic The Company has been carefully monitoring the COVID-19 pandemic and its impact on its business. In that regard, while the Company has continued to sell its products and grow its business it did experience certain disruptions in its supply chains. The Company expects the significance of the COVID-19 pandemic, including the extent of its effect on the Company’s financial and operational results, to be dictated by, among other things, its duration, the success of efforts to contain it and the impact of actions taken in response. While the Company has not experienced any material disruptions to its business and operations as a result of the COVID-19 pandemic, it is possible such disruptions may occur in the future which may impact its financial and operational results, and which could be material. Impact of Russian and Ukrainian Conflict In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. We are closely monitoring the unfolding events due to the Russia-Ukraine conflict and its regional and global ramifications. We have one distributor in Russia, which is not material to our overall financial results. We do not have operations in Ukraine or Belarus. We are monitoring any broader economic impact from the current crisis. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these financial statements. However, to the extent that such military action spreads to other countries, intensifies, or otherwise remains active, such action could have a material adverse effect on our financial condition, results of operations, and cash flows. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Jul. 31, 2022 | |
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 $ 84,863,356 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. In the event that the Company is unable to successfully raise capital and/or generate revenues, the Company will likely reduce general and administrative expenses, and cease or delay its development plan until it is able to obtain sufficient financing. The Company has begun reducing operating expenses and cash outflows by discontinuing operations of PlaySight, as well as selling 75 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying condensed financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures required by accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period presented. The results of operations for the three months ended July 31, 2022, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending April 30, 2023 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended April 30, 2022, filed with the Securities and Exchange Commission on May 17, 2023. 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 within accounts payable, accrued expenses, and certain operating expenses have been reclassified for consistency with the current year presentation and had no effect on the Company’s balance sheet, net loss, shareholders’ deficit or cash flows. 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. As of July 31, 2022, the Company had $ 146,960 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 recorded $ 175,000 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, 2022 and April 30, 2022 consisted of the following: SCHEDULE OF INVENTORY July 31, 2022 April 30, 2022 Finished Goods $ 5,434,785 $ 4,397,098 Component/Replacement Parts 965,122 2,559,848 Capitalized Duty/Freight 906,196 1,328,198 Inventory Reserve (100,000 ) (100,000 ) Total $ 7,206,103 $ 8,185,144 Prepaid Inventory Prepaid inventory represents inventory that is in-transit that has been paid for but not received from the Company’s third-party vendors. The Company typically prepays for the purchase of materials and receives the products within three months after making payments. The Company continuously monitors delivery from, and payments to, the vendors. If the Company has difficulty receiving products from a vendor, the Company would cease purchasing products from such vendors in future periods. The Company has not had difficulty receiving products during the reporting periods. Property and equipment Property and equipment acquired through business combinations are stated at the estimated fair value at the date of the acquisition. Purchases of property and equipment are stated at cost, net of accumulated depreciation and impairment losses. Expenditures that materially increase the useful life of the assets are capitalized. Ordinary repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which is an average of 5 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. See Note 4 for further details on the Company’s concentration of credit risk as well as other risks and uncertainties. Revenue Recognition The Company recognizes revenue for their continuing operations 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 contract liabilities 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. The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of this revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. Step 2: Identify the performance obligations in the contract The Company’s customers are buying an integrated system. In evaluating whether the equipment is a separate performance obligation, the Company’s management considered the customer’s ability to benefit from the equipment on its own or together with other readily available resources and if so, whether the service and equipment are separately identifiable (i.e., is the service highly dependent on, or highly interrelated with the equipment). Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Solution, the Company has concluded that Products installed on customer’s premise and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Step 3: Determine the transaction price The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer includes predetermined fixed amounts, variable amounts, or both. The Company’s contracts do not include any rights of returns or refunds. The Company collects each year’s service fees in advance and should therefore consider the existence of a significant financing component. However, due to the fact that the payments are provided for the service of a one-year term, the Company elected to apply the practical expedient under ASC 606 which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less. Step 4: Allocate the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price (“SSP”). The Company has identified a single performance obligation in the contract, and therefore, the allocation provisions under ASC 606 do not apply to the Company’s contracts. Step 5: Recognize revenue when the Company satisfies a performance obligation Revenues for the Company’s single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations (Typically 3-4 years). Business Combinations Upon acquisition of a company, we determine if the transaction is a business combination, which is accounted for using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, the assets acquired, and liabilities assumed, are recorded at fair value. We use our best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. One of the most significant estimates relates to the determination of the fair value of these assets and liabilities. The determination of the fair values is based on estimates and judgments made by management. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable. Measurement period adjustments are reflected at the time identified, up through the conclusion of the measurement period, which is the time at which all information for determination of the values of assets acquired and liabilities assumed is received, and is not to exceed one year from the acquisition date. We may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company elected to apply pushdown accounting to all entities acquired. Additionally, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions periodically and record any adjustments to preliminary estimates to goodwill, provided we are within the measurement period. If outside of the measurement period, any subsequent adjustments are recorded to the consolidated statement of operations. 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 contingent consideration in connection with the acquisition of Gameface and PlaySight were calculated using Level 3 inputs. The fair value of contingent consideration as of July 31, 2022 and April 30, 2022 was $ 418,455 1,334,000 The Company estimates the fair value of its intangible assets using Level 3 assumptions, primarily based on the income approach utilizing the discounted cash flow method. 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 amounts as of and for the three months ended July 31, 2022: SCHEDULE OF DERIVATIVE LIABILITIES (Gain) loss for three months Note derivative is related to July 31, 2022 ended July 31, 2022 4/11/21 conversion of 12/24/20 note payable $ 1,396,546 $ (1,269,417 ) 8/6/21 convertible notes 324,432 (2,388,902 ) 6/17/22 underwriter warrants 35,306 (29,176 ) Total $ 1,756,284 $ (3,687,495 ) The Black-Scholes option pricing model assumptions for the derivative liabilities during the three months ended July 31, 2022 and year ended April 30, 2022 consisted of the following: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Year Ended Expected life in years 4 4.3 1.95 4.3 Stock price volatility 50 148 % 50 % Risk free interest rate 2.90 3.27 % 2.67 2.90 % Expected dividends 0 % 0 % Refer to Note 10 and Note 11 for more information regarding the derivative instruments. 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. Intangible Assets Intangible assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020. The trademark is amortized over its expected life of 20 1,445 1,445 20 5 15 334,601 39,724 Impairment of 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. Factors which could trigger impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends. 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. The Company performed this assessment in April 2022, and determined that the long-lived assets related to Foundation Sports were fully impaired as of April 30, 2022, resulting in an impairment loss of $ 1,056,599 no Goodwill The Company accounts for goodwill in accordance with ASC 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The Company records goodwill as the excess purchase price over assets acquired and includes any work force acquired as goodwill. Goodwill is evaluated for impairment on an annual basis. With the adoption of the ASU 2017-04, which eliminates the second step of the goodwill impairment test, the Company tests impairment of goodwill in one step. In this 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 carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the Company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. 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 will not record an impairment charge. The Company determined in April 2022 that the fair value of the reporting unit was less than the carrying value of the net assets assigned to the reporting unit and therefore goodwill was fully impaired for Foundation Sports at April 30, 2022, resulting in an impairment loss of $ 2,430,000 no Share-Based Payment The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation (ASC 718). Under the fair value recognition provisions of this topic, stock-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 11 and Note 14. The warrants granted during the three months ended July 31, 2022 and year ended April 30, 2022 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Ended Year Ended Expected life in years 5 10 5 10 Stock price volatility 50 148 % 50 148 % Risk free interest rate 2.50 3.50 % 0.77 1.63 % Expected dividends 0 % 0 % Foreign Currency Translation Our functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot rate in effect at the applicable reporting date. Our consolidated statements of comprehensive loss are translated at the weighted average rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income (loss) in the period in which they occur. 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. All common stock equivalents such as shares to be issued for the conversion of notes payable and warrants were excluded from the 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 Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under ASU 2017-04, goodwill impairment will be tested by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2022, with early adoption permitted. The Company adopted ASU 2017-04 effective May 1, 2021. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and(2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for public companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of ASU 2020-06 will have on the Company’s consolidated financial statement presentation or disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). The guidance replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. ASC 326 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses as well as the credit quality and underwriting standards of a company’s portfolio. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities the Company does not intend to sell or believes that it is more likely than not they will be required to sell. The ASU can be adopted no later than January 1, 2020 for SEC filers and January 1, 2023 for private companies and smaller reporting companies. The Company has not yet adopted this ASU as it qualifies as a smaller reporting company. The Company does not expect this ASU will have a material impact on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities (Topic 805)”. The amendments in this Update address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. The amendments in this Update require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial statements. The FASB has issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2021-04 provides guidance that an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. The standard also provides guidance on how an entity should measure and recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted for all entities, including adoption in an interim period. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. 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. |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND OTHER RISKS AND UNCERTAINTIES | 3 Months Ended |
Jul. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND OTHER RISKS AND UNCERTAINTIES | Note 4 CONCENTRATION OF CREDIT RISK AND OTHER RISKS AND UNCERTAINTIES Accounts Receivable Concentration As of July 31, 2022 and April 30, 2022, the Company had two and two customers that accounted for 64 % and 43 % of the Company’s trade receivables balance, respectively. Accounts Payable Concentration As of July 31, 2022 and April 30, 2022, the Company had four and four significant suppliers that accounted for 68 59 |
ACQUISITIONS AND BUSINESS COMBI
ACQUISITIONS AND BUSINESS COMBINATIONS | 3 Months Ended |
Jul. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND BUSINESS COMBINATIONS | Note 5: ACQUISITIONS AND BUSINESS COMBINATIONS In the year ended April 30, 2022, the Company acquired three entities in accordance with ASC 805. A full description of those transactions are reflected in the audited financial statements contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 17, 2023. The Company has elected to apply pushdown accounting to each of the entities acquired. For Foundation Sports as referred to in Note 18, the Company disposed of 75 For PlaySight as referred to in Note 18, the Company sold back to the original shareholders 100 Pro Forma Results The following pro forma financial information presents the results of operations of the Company as of the three months ended July 31, 2022 and 2021, as if the acquisitions of PlaySight and Gameface had occurred as of the beginning of the first period presented instead of February 2022. The pro forma financial information of the Company as of the three months ended July 31, 2021 is as follows: SCHEDULE OF PROFORMA FINANCIAL INFORMATION Revenues $ 4,946,449 Net loss $ (4,006,255 ) Basic and diluted earnings (loss) per share $ (1.38 ) |
GOODWILL
GOODWILL | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | Note 6 GOODWILL The changes in the carrying amount of goodwill as of July 31, 2022 were as follows: SCHEDULE OF GOODWILL Balance as of April 30, 2022 $ 32,643,193 Less impairment ( - ) Balance as of July 31, 2022 $ 32,643,193 Impairment of Goodwill The Company has assessed the indicators of impairment and concluded on the below for the respective reporting units: Equipment No goodwill was assigned to the Equipment segment as of July 31, 2022 and April 30, 2022 . Technology PlaySight, Gameface, and Foundation Sports were all assigned to the Technology segment as of July 31, 2022 and April 30, 2022. The Company determined in April 2022 that the fair value of Foundation Sports was less than the carrying value of the net assets assigned to this entity and therefore goodwill related to Foundation Sports was fully impaired as of April 30, 2022. Impairment loss relating to Foundation Sports was $ 2,430,000 no |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | Note 7: INTANGIBLE ASSETS Intangible assets, net consisted of the following: SCHEDULE OF INTANGIBLE ASSETS Weighted Average Period July 31, 2022 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 2,085,582 $ 45,866 - $ 2,039,716 Customer relationships 9.92 19,520,000 368,996 - 19,151,004 Internally developed software 4.91 3,010,000 241,392 - 2,768,608 Total intangible assets $ 24,615,582 $ 656,254 $ - $ 23,959,328 Weighted Average Period April 30, 2022 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames 15.26 $ 2,154,551 $ 24,102 (68,969 ) $ 2,061,480 Customer relationships 9.92 20,412,491 169,070 (892,491 ) 19,350,930 Internally developed software 4.91 3,105,139 105,908 (95,139 ) 2,904,092 Total intangible assets $ 25,672,181 $ 299,080 $ (1,056,599 ) $ 24,316,502 Amortization expense for the three months ended July 31, 2022 and 2021 was approximately $ 358,960 41,169 Intangible assets for Foundation Sports have been fully impaired as of April 30, 2022. This resulted in an impairment loss of $ 1,056,599 As of July 31, 2022, the estimated future amortization expense associated with the Company’s intangible assets for each of the five succeeding fiscal years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION For the Periods Ended July 31, Amortization 2023 $ 1,572,905 2024 1,824,808 2025 2,569,690 2026 3,330,667 2027 3,122,430 Thereafter 11,538,828 Total $ 23,959,328 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | Note 8 ACCRUED EXPENSES The composition of accrued expenses is summarized below: SCHEDULE OF ACCRUED EXPENSES July 31, 2022 April 30, 2022 Accrued payroll $ 2,370,768 $ 2,011,149 Accrued bonus 1,314,753 1,114,753 Accrued professional fees 1,371,988 1,706,560 Goods received not invoiced 431,023 293,413 Other accrued expenses 1,231,298 476,136 Total $ 6,719,830 $ 5,602,011 |
NOTE PAYABLE - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | Note 9: NOTE PAYABLE - RELATED PARTY The discussion of note payable – related party only includes those that existed as of April 30, 2022. For a discussion of all prior note payable – related party we refer you to the Annual Report on Form 10-K filed May 17, 2023 for the fiscal year end April 30, 2022. On January 14, 2022, the Company entered into two loan agreements with related party lenders, each for $ 1,000,000 2,000,000 8 There was $ 2,000,000 61,121 56,233 969,876 908,756 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | Note 10: CONVERTIBLE NOTES PAYABLE The discussion of convertible notes payable only includes those that existed as of April 30, 2022. For a discussion of all prior convertible notes payable we refer you to the Annual Report on Form 10-K filed May 17, 2023 for the fiscal year end April 30, 2022. 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 11,000,000 733,333 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 The Company evaluated the Warrants and the conversion options under the guidance in ASC 815 and determined they represent derivative liabilities given the variability in the exercise and conversion prices upon the event of an up list to the NASDAQ. The Company also evaluated the other embedded features in the agreement and determined the interest make-whole provision and the subsequent financing redemption represent put features that are also accounted for as derivative liabilities. The derivative liabilities are 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). The Warrants were valued at $ 12,026,668 five 1,862,450 As part of the issuance of the Convertible Notes, the Company incurred and capitalized debt issuance costs of $ 800,251 14,689,369 3,689,369 On December 31, 2021, the Company entered into an Omnibus Amendment Agreement (the “Omnibus Agreement”) with certain Purchasers who are collectively holders of 67% or more of the Securities outstanding related to the August 6, 2021 Convertible Notes, amending each of (i) the Purchase Agreement and (ii) the Registration Rights Agreement. Simultaneously with the execution of the Omnibus Agreement, the Company issued to each Purchaser a Replacement Note (as defined below) in replacement of the Convertible Note held prior to December 31, 2021 by such Purchaser (each, an “Existing Note”). The Purchase Agreement was amended to, among other things, (i) delete Exhibit A and replace it in its entirety with the 8% Senior Convertible Note (the “Replacement Note”) filed as Exhibit 10.2 to the Company’s current report on Form 8-K dated January 5, 2021, (ii) add a new definition of “Inventory Financing”, (iii) amend Section 4.18 to add at the end of Section 4.18 before the final period “, it being agreed that the provisions of this Section 4.18 shall not apply to the Qualified Subsequent Financing expected to occur after the date hereof”, (iv) delete Section 4.20 and replace it in its entirety with substantially the same text, including the following after the period, replacing the period with a semicolon: “; provided that the provisions of this Section 4.20 shall not apply to (i) in respect of any Holder to the extent that such Holder is an investor or a purchaser of the securities offered pursuant such Subsequent Financing, and (ii) with respect to an Inventory Financing.”, and (v) add a new Section 4.21. Most-Favored Nation provision. The Registration Rights Agreement was amended to, among other things, (i) delete the definition “Effectiveness Date” in Section 1 and replace it in its entirety with substantially the same text but revise the definition of “Effectiveness Date” causing the Initial Registration Statement required to be filed by January 31, 2022, and (ii) delete Section 2(d) and replace it in its entirety with substantially the same text but revised to delete the following “(2) no liquidated damages shall accrue or be payable hereunder with respect to any day on which the high price of the Common Stock on the Trading Market on which the Common Stock is then listed or traded is less than the then-applicable Conversion Price,” resulting in renumbering the text that follows as (2) instead of (3). As consideration for entering into the Omnibus Agreement, the outstanding principal balance of the Existing Note held by each Purchaser was increased by twenty percent ( 20 2,200,000 On June 17, 2022, the Company issued 4,389,469 13,200,000 846,301 122,222 Total outstanding borrowings related to the Convertible Notes as of July 31, 2022 and April 30, 2022 were $ 0 13,200,000 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Note 11: NOTES PAYABLE The discussion of notes payable only includes those that existed as of April 30, 2022. For a discussion of all prior notes payable we refer you to the Annual Report on Form 10-K filed May 17, 2023 for the fiscal year end April 30, 2022. On June 30, 2020, the Company entered into a loan agreement with Mont-Saic to borrow $ 120,000 12.6 On December 24, 2020, the Company entered into a promissory note with a third-party to borrow $ 1,000,000 2.25 On April 11, 2021, the Company and the lender entered into an agreement whereby the lender converted the promissory note into 27,233 20 1,500,000 1,500,000 1,500,000 The Company evaluated the conversion option of the note 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 $ 1,501,914 1,250,004 1,251,910 The fair value of the derivative liability was $ 1,396,546 1,061,550 On February 15, 2022, for and in consideration of $ 4,000,000 13,000 As of July 31, 2022 and April 30, 2022, the Company had repaid $ 1,559,109 965,463 2,440,891 3,034,537 On April 1, 2022, the Company entered into a $ 500,000 July 1, 2022 8 Cash Advance Agreements On July 29, 2022, the Company entered into two merchant cash advance agreements. The details of the merchant cash advance agreements are as follows: UFS Agreement The Company entered into an agreement (the “UFS Agreement”) with Unique Funding Solutions LLC (“UFS”) pursuant to which the Company sold $ 1,124,250 750,000 60,000 13,491 44,970 855,000 1,124,250 855,000 In order to secure payment and performance of the Company’s obligations to UFS under the UFS Agreement, the Company granted to UFS a security interest in the following collateral: all accounts receivable and all proceeds as such term is defined by Article 9 of the UCC. The Company also agreed not to create, incur, assume, or permit to exist, directly or indirectly, any lien on or with respect to any of such collateral. Cedar Agreement The Company entered into an agreement (the “Cedar Agreement”) with Cedar Advance LLC (“Cedar”) pursuant to which the Company sold $ 1,124,250 750,000 60,000 13,491 44,970 855,000 1,124,250 855,000 In order to secure payment and performance of the Company’s obligations to Cedar under the Cedar Agreement, the Company granted to Cedar a security interest in the following collateral: all accounts, including without limitation, all deposit accounts, accounts receivable and other receivables, chattel paper, documents, equipment, instruments and inventory as those terms are defined by Article 9 of the UCC. The Company also agreed not to create, incur, assume, or permit to exist, directly or indirectly, any lien on or with respect to any of such collateral. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended |
Jul. 31, 2022 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | Note 12: NOTES 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 line of credit with a six-month maturity date. Any borrowings under the line of credit bear interest at a rate of 15 On July 26, 2021, the Company issued $ 300,000 700,000 400,000 300,000 300,000 250,000 On February 22, 2022, the Company entered into a merger agreement with PlaySight Interactive Ltd. (“PlaySight”) and Rohit Krishnan (the “Shareholders’ Representative”). As a result of the merger agreement, PlaySight became a wholly owned subsidiary of the Company. As such, the note receivable balance and related interest income was eliminated upon consolidation. As of July 31, 2021, there was no |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 13: 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. The Company has outstanding notes payable of $ 2,000,000 2,000,000 969,876 908,756 The Company recognized net sales of $ 91,200 8,931 92,582 93,535 |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) | 3 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY (DEFICIT) | Note 14: SHAREHOLDERS’ EQUITY (DEFICIT) Common Stock The Company has 300,000,000 0.001 10,257,986 4,194,836 Equity Transactions During the Three Months Ended July 31, 2022 Since May 1, 2022, the Company has issued an aggregate of 6,063,145 ● On June 15, 2022, the Company issued 4,389,469 ● On June 15, 2022, the Company issued 1,048,750 ● On June 27, 2022, the Company issued 25,000 ● On June 27, 2022, the Company issued 598,396 Equity Transactions During the Year Ended April 30, 2022 On May 26, 2021, the Company issued 163,684 6,220,000 On June 23, 2021, the Company issued 54,000 3,550,000 On July 6, 2021, the Company issued 5,022 187,803 On July 11, 2021, the Company issued 1,875 16,875 During the three months ended July 31, 2021, the Company granted an aggregate total of 9,094 6,000 907,042 On August 6, 2021, the Note payable holder (see Note 11) exercised its right to convert its 220,000 495,000 On August 6, 2021, the Company’s related party lender exercised its right to convert its 275,000 692,130 967,130 On October 11, 2021, the Company issued 1,875 16,875 On January 11, 2022, the Company issued 1,875 16,874 During April 2022, the Company granted an aggregate total of 6,000 255,124 Warrants Issued and Expensed During the Three Months and Year Ended July 31, 2022 and April 30, 2022 On October 28, 2020, the Company granted 40,000 0.75 10 277,625 187,803 In accordance with the October 29, 2020 agreement with three members of the advisory board mentioned above, 46,077 22,500 87,656 On August 6, 2021, in connection with the Convertible Notes issuance (see Note 10) the Company issued warrants to purchase up to 733,333 On August 6, 2021, in connection with the Convertible Notes issuance the Company also granted the lead placement agent for the Offering 26,667 3.30 376,000 On September 3, 2021, the Company granted an aggregate total of 1,010,000 0.001 1,000,000 3.42 10,000 10 32,381,309 On February 2, 2022, in connection with the Gameface acquisition (see Note 5) the Company issued warrants to purchase up to 478,225 Common Stock Issuable On February 22, the Company authorized the issuance of 2,537,969 39,950,000 none |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 15: COMMITMENTS AND CONTINGENCIES Leases The Company leases office space under short-term leases with terms under a year. Total rent expense for the three months ended July 31, 2022 and 2021 amounted to $ 700 1,400 Contingencies In connection with the Gameface acquisition on February 2, 2022, the Company agreed to earn-out consideration of common shares of the Company’s common stock with a fair value of $ 1,334,000 598,396 418,455 In connection with the PlaySight acquisition on February 22, 2022, the Company agreed to earn-out consideration of up to 514,286 4,847,000 4,847,000 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. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 16: INCOME TAXES The Company does business in the US through its subsidiaries Slinger Bag Inc. and Slinger Bag Americas. It also does business in Israel through SBL whose operations are reflected in the Company’s consolidated financial statements. The Company’s operations in Canada, Israel, and the UK were immaterial for the periods ended July 31, 2022 and 2021, respectively. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense. There were no interest or penalties recognized in the accompanying consolidated statements of comprehensive loss for the three months ended July 31, 2022 and 2021. |
SEGMENTS
SEGMENTS | 3 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTS | Note 17 SEGMENTS Reportable Segments Operating segments for our continuing operations are components of the Company that combine similar business activities, with activities group to facilitate the evaluation of business units and allocation of resources by the Company’s board and management. As of July 31, 2022, the Company had two reportable segments: ● Equipment - Production and manufacturing of the Slinger Bag Launcher, marketed to regular tennis players who do not have regular access to state-of-the-art facilities ● Technology - Subscription-based technology such as automated production and live streaming, video replay, pro level coaching tools, live and on-demand sports channel, data analytics, and facilities management systems The results of each segment are regularly reviewed by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, to assess the performance of the segment and make decisions regarding the allocation of resources. The Company’s chief operating decision maker uses revenue and EBITDA as measures of segment performance. The accounting policies of each segment are the same as those set out under the summary of significant account policies in Note 3. There are no intersegment sales or transfers. The below table represents revenues and profit or loss by each operating segment for the three months ended July 31, 2022 and 2021: SCHEDULE OF REVENUES AND PROFIT LOSS OPERATING SEGMENT 2022 2021 Net Revenues Equipment $ 3,557,206 $ 2,537,573 Technology 1,389,243 — Total Net Revenues $ 4,946,449 $ 2,537,573 2022 2021 Profit or (Loss) Equipment $ (2,372,718 ) $ (3,435,312 ) Technology (1,638,588 ) — Total Profit or (Loss) $ (4,011,306 ) $ (3,435,312 ) The chief operating decision maker does not receive asset information by segment as the Company does not have this information as discrete financial data, and as such, this information is not included. Goodwill assigned to the Technology segment as of July 31, 2022 and April 30, 2022 was $ 32,643,193 23,853,713 24,209,442 The Company did not have any goodwill assigned to the Equipment segment as of July 31, 2022 and April 30, 2022. Intangible assets, net assigned to the Equipment segment as of July 31, 2022 and April 30, 2022, was $ 105,615 107,060 Goodwill and intangible assets related to Foundation Sports that was part of the Technology segment were fully impaired on April 30, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 18: SUBSEQUENT EVENTS On August 25, 2022, the Company issued 300,000 On September 28, 2022, the Company entered into a securities purchase agreement with a single institutional investor for the issuance of 1,018,510 11,802,002 4,549,882 On November 27, 2022, the Company entered into a share purchase agreement (the “Agreement”) with PlaySight, Chen Shachar and Evgeni Khazanov (together, the “Buyer”) pursuant to which the Buyer purchased 100% of the issued and outstanding shares of PlaySight from the Company in exchange for (1) releasing the Company from all of PlaySight’s obligations towards its vendors, employees, tax authorities and any other (past, current and future) creditors of PlaySight; (2) waiver by the Buyer of 100% of the personal consideration owed to them under their employment agreements in the total amount of $600,000; and (3) cash consideration of $2,000,000 to be paid to the Company in the form of a promissory note that matures on December 31, 2023 On December 5, 2022, the Company assigned 75% of its membership interest in Foundation Sports to Charles Ruddy, its founder and granted him the right for a period of three years to purchase the remaining 25% of its Foundation Sports membership interests for $ 500,000 500,000 On January 6, 2023, the Company entered into a loan and security agreement (the “Loan and Security Agreement”) with one or more institutional investors (the “Lenders”) and Armistice Capital Master Fund Ltd. as agent for the Lenders (the “Agent”) for the issuance and sale of (i) a note in an aggregate principal amount of up to $ 2,000,000 1,400,000 0.221 18,099,548 0.221 600,000 On January 12, 2023, Nasdaq notified the Company that due to the resignations from the Company’s board, audit committee and compensation committee on November 17, 2022 (“Corporate Governance Deficiencies”), the Company no longer complies with Nasdaq’s independent director, audit committee and compensation committee requirements as set forth in Listing Rule 5605. The Company timely submitted its plan of compliance with respect to the Corporate Governance Deficiencies by February 27, 2023 as required by the Nasdaq. However, pursuant to Listing Rule 5810(c)(2)(A), the Corporate Governance Deficiencies serve as an additional and separate basis for delisting and the Company. On February 21, 2023, consistent with the Company’s previously announced intention to request an appeal of the Staff Determination by requesting a hearing before the Nasdaq Hearings Panel (the “Panel”) to stay the suspension of the Company’s securities and the filing of the Form 25-NSE with the SEC (the “Hearing”), the Company appealed the Staff Determination to the Panel, and requested that the stay of delisting, which otherwise would expire on March 8, 2023, pursuant to Listing Rule 5815(a)(1)(B), be extended until the Panel issued a final decision on the matter. The Nasdaq granted the Company’s request to extend the stay, pending the Hearing scheduled for March 30, 2023, and a final determination regarding the Company’s listing status. The Company is required to address the Additional Delinquency, the Delinquent Filings, and the Corporate Governance Deficiencies before the Panel. Although the Company is working diligently to file the Delinquent Filings and Additional Delinquency, there can be no assurance that they will be filed prior to the Hearing. If the Company’s appeal is denied or the Company fails to timely regain compliance with Nasdaq’s continued listing standards, the Company’s common stock will be subject to delisting on the Nasdaq. On March 21, 2023, the Company received a letter from the Listing Qualifications Department of Nasdaq indicating that the Company’s failure to file its Quarterly Report on Form 10-Q for the period ended January 31, 2023 (“Additional Delinquency”) serves as an additional basis for delisting the Company’s securities from Nasdaq. The Company received a letter from the Nasdaq on February 14, 2023, indicating that, due to the Company’s failure, in violation of Listing Rule 5250(c)(1), to file its (i) Annual Report on Form 10-K with respect to the fiscal year ended April 30, 2022; and (ii) Quarterly Reports on Form 10-Q for the periods ended July 31, 2022 and October 31, 2022 (collectively, the “Delinquent Filings”), by February 13, 2023 (the due date for filing the Delinquent Filings pursuant to an exception to Nasdaq’s Listing Rule previously granted by Nasdaq), absent the submission of a timely appeal by February 21, 2023, trading of the Company’s common stock would have been suspended from the Nasdaq at the opening of business on February 23, 2023. Nasdaq would also have filed a Form 25-NSE with the Securities and Exchange Commission (the “SEC”), which would have resulted in the removal of the Company’s securities from listing and registration on the Nasdaq (the “Staff Determination”). Additionally, on October 10, 2022, the Company received a letter from Nasdaq indicating that the Company’s common stock is subject to potential delisting from Nasdaq because, for a period of 30 consecutive business days, the bid price of the Company’s common stock had closed below the minimum $1.00 per share requirement for continued listing under Nasdaq Listing Rule 5450(a)(1). On March 30, 2023, the Company had its hearing with the Nasdaq. On April 12, 2023, Nasdaq notified the Company that the Panel had granted the Company’s request for continued listing on the Nasdaq had been granted subject to the following: 1. On or before May 31, 2023, the Company shall file the delinquent Form 10-K for the year ended April 30, 2022, with the SEC; 2. On or before June 30, 2023, the Company shall file all delinquent Forms 10-Q with the SEC; 3. On or before July 15th, the Company will demonstrate compliance with Listing Rules 5605(b)(1), 5605(c)(2) and 5605(d)(2) (majority independent director, audit committee and compensation committee composition requirements). On April 12, 2023, the Company received a letter from the Listing Qualifications Department of the Nasdaq indicating that the Company had not yet regained compliance with the Bid Price Rule, which serves as an additional basis for delisting the Company’s securities from the Nasdaq. The letter further indicated that the Panel will consider this matter in its decision regarding the Company’s continued listing on the Nasdaq Capital Market. In that regard, the Nasdaq indicated that the Company should present its views with respect to this additional delinquency to the Panel in writing no later than April 19, 2023, which it did. On April 26, 2023, Nasdaq notified the Company that the Panel had granted the Company’s request to regain compliance with the Bid Price Rule by October 9, 2023. The Company offers no assurance that it will regain compliance with the Bid Price Rule in a timely manner. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying condensed financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures required by accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period presented. The results of operations for the three months ended July 31, 2022, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending April 30, 2023 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended April 30, 2022, filed with the Securities and Exchange Commission on May 17, 2023. |
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 within accounts payable, accrued expenses, and certain operating expenses have been reclassified for consistency with the current year presentation and had no effect on the Company’s balance sheet, net loss, shareholders’ deficit or cash flows. |
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. As of July 31, 2022, the Company had $ 146,960 |
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 recorded $ 175,000 |
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, 2022 and April 30, 2022 consisted of the following: SCHEDULE OF INVENTORY July 31, 2022 April 30, 2022 Finished Goods $ 5,434,785 $ 4,397,098 Component/Replacement Parts 965,122 2,559,848 Capitalized Duty/Freight 906,196 1,328,198 Inventory Reserve (100,000 ) (100,000 ) Total $ 7,206,103 $ 8,185,144 |
Prepaid Inventory | Prepaid Inventory Prepaid inventory represents inventory that is in-transit that has been paid for but not received from the Company’s third-party vendors. The Company typically prepays for the purchase of materials and receives the products within three months after making payments. The Company continuously monitors delivery from, and payments to, the vendors. If the Company has difficulty receiving products from a vendor, the Company would cease purchasing products from such vendors in future periods. The Company has not had difficulty receiving products during the reporting periods. |
Property and equipment | Property and equipment Property and equipment acquired through business combinations are stated at the estimated fair value at the date of the acquisition. Purchases of property and equipment are stated at cost, net of accumulated depreciation and impairment losses. Expenditures that materially increase the useful life of the assets are capitalized. Ordinary repairs and maintenance are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, which is an average of 5 |
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. See Note 4 for further details on the Company’s concentration of credit risk as well as other risks and uncertainties. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue for their continuing operations 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 contract liabilities 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. The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of this revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. Step 2: Identify the performance obligations in the contract The Company’s customers are buying an integrated system. In evaluating whether the equipment is a separate performance obligation, the Company’s management considered the customer’s ability to benefit from the equipment on its own or together with other readily available resources and if so, whether the service and equipment are separately identifiable (i.e., is the service highly dependent on, or highly interrelated with the equipment). Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Solution, the Company has concluded that Products installed on customer’s premise and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Step 3: Determine the transaction price The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer includes predetermined fixed amounts, variable amounts, or both. The Company’s contracts do not include any rights of returns or refunds. The Company collects each year’s service fees in advance and should therefore consider the existence of a significant financing component. However, due to the fact that the payments are provided for the service of a one-year term, the Company elected to apply the practical expedient under ASC 606 which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less. Step 4: Allocate the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price (“SSP”). The Company has identified a single performance obligation in the contract, and therefore, the allocation provisions under ASC 606 do not apply to the Company’s contracts. Step 5: Recognize revenue when the Company satisfies a performance obligation Revenues for the Company’s single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations (Typically 3-4 years). |
Business Combinations | Business Combinations Upon acquisition of a company, we determine if the transaction is a business combination, which is accounted for using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, the assets acquired, and liabilities assumed, are recorded at fair value. We use our best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. One of the most significant estimates relates to the determination of the fair value of these assets and liabilities. The determination of the fair values is based on estimates and judgments made by management. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable. Measurement period adjustments are reflected at the time identified, up through the conclusion of the measurement period, which is the time at which all information for determination of the values of assets acquired and liabilities assumed is received, and is not to exceed one year from the acquisition date. We may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company elected to apply pushdown accounting to all entities acquired. Additionally, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions periodically and record any adjustments to preliminary estimates to goodwill, provided we are within the measurement period. If outside of the measurement period, any subsequent adjustments are recorded to the consolidated statement of operations. |
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 contingent consideration in connection with the acquisition of Gameface and PlaySight were calculated using Level 3 inputs. The fair value of contingent consideration as of July 31, 2022 and April 30, 2022 was $ 418,455 1,334,000 The Company estimates the fair value of its intangible assets using Level 3 assumptions, primarily based on the income approach utilizing the discounted cash flow method. 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 amounts as of and for the three months ended July 31, 2022: SCHEDULE OF DERIVATIVE LIABILITIES (Gain) loss for three months Note derivative is related to July 31, 2022 ended July 31, 2022 4/11/21 conversion of 12/24/20 note payable $ 1,396,546 $ (1,269,417 ) 8/6/21 convertible notes 324,432 (2,388,902 ) 6/17/22 underwriter warrants 35,306 (29,176 ) Total $ 1,756,284 $ (3,687,495 ) The Black-Scholes option pricing model assumptions for the derivative liabilities during the three months ended July 31, 2022 and year ended April 30, 2022 consisted of the following: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Year Ended Expected life in years 4 4.3 1.95 4.3 Stock price volatility 50 148 % 50 % Risk free interest rate 2.90 3.27 % 2.67 2.90 % Expected dividends 0 % 0 % Refer to Note 10 and Note 11 for more information regarding the derivative instruments. |
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. |
Intangible Assets | Intangible Assets Intangible assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020. The trademark is amortized over its expected life of 20 1,445 1,445 20 5 15 334,601 39,724 |
Impairment of Long-Lived Assets | Impairment of 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. Factors which could trigger impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends. 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. The Company performed this assessment in April 2022, and determined that the long-lived assets related to Foundation Sports were fully impaired as of April 30, 2022, resulting in an impairment loss of $ 1,056,599 no |
Goodwill | Goodwill The Company accounts for goodwill in accordance with ASC 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The Company records goodwill as the excess purchase price over assets acquired and includes any work force acquired as goodwill. Goodwill is evaluated for impairment on an annual basis. With the adoption of the ASU 2017-04, which eliminates the second step of the goodwill impairment test, the Company tests impairment of goodwill in one step. In this 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 carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the Company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. 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 will not record an impairment charge. The Company determined in April 2022 that the fair value of the reporting unit was less than the carrying value of the net assets assigned to the reporting unit and therefore goodwill was fully impaired for Foundation Sports at April 30, 2022, resulting in an impairment loss of $ 2,430,000 no |
Share-Based Payment | Share-Based Payment The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation (ASC 718). Under the fair value recognition provisions of this topic, stock-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 11 and Note 14. The warrants granted during the three months ended July 31, 2022 and year ended April 30, 2022 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Ended Year Ended Expected life in years 5 10 5 10 Stock price volatility 50 148 % 50 148 % Risk free interest rate 2.50 3.50 % 0.77 1.63 % Expected dividends 0 % 0 % |
Foreign Currency Translation | Foreign Currency Translation Our functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot rate in effect at the applicable reporting date. Our consolidated statements of comprehensive loss are translated at the weighted average rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income (loss) in the period in which they occur. |
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. All common stock equivalents such as shares to be issued for the conversion of notes payable and warrants were excluded from the 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 Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under ASU 2017-04, goodwill impairment will be tested by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2022, with early adoption permitted. The Company adopted ASU 2017-04 effective May 1, 2021. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and(2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for public companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of ASU 2020-06 will have on the Company’s consolidated financial statement presentation or disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). The guidance replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. ASC 326 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses as well as the credit quality and underwriting standards of a company’s portfolio. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities the Company does not intend to sell or believes that it is more likely than not they will be required to sell. The ASU can be adopted no later than January 1, 2020 for SEC filers and January 1, 2023 for private companies and smaller reporting companies. The Company has not yet adopted this ASU as it qualifies as a smaller reporting company. The Company does not expect this ASU will have a material impact on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities (Topic 805)”. The amendments in this Update address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. The amendments in this Update require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial statements. The FASB has issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2021-04 provides guidance that an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. The standard also provides guidance on how an entity should measure and recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted for all entities, including adoption in an interim period. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. 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, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY July 31, 2022 April 30, 2022 Finished Goods $ 5,434,785 $ 4,397,098 Component/Replacement Parts 965,122 2,559,848 Capitalized Duty/Freight 906,196 1,328,198 Inventory Reserve (100,000 ) (100,000 ) Total $ 7,206,103 $ 8,185,144 |
SCHEDULE 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 amounts as of and for the three months ended July 31, 2022: SCHEDULE OF DERIVATIVE LIABILITIES (Gain) loss for three months Note derivative is related to July 31, 2022 ended July 31, 2022 4/11/21 conversion of 12/24/20 note payable $ 1,396,546 $ (1,269,417 ) 8/6/21 convertible notes 324,432 (2,388,902 ) 6/17/22 underwriter warrants 35,306 (29,176 ) Total $ 1,756,284 $ (3,687,495 ) |
SCHEDULE 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, 2022 and year ended April 30, 2022 consisted of the following: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Year Ended Expected life in years 4 4.3 1.95 4.3 Stock price volatility 50 148 % 50 % Risk free interest rate 2.90 3.27 % 2.67 2.90 % Expected dividends 0 % 0 % |
Warrant [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD | The warrants granted during the three months ended July 31, 2022 and year ended April 30, 2022 were valued using a Black-Scholes option pricing model on the date of grant using the following assumptions: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Three Months Ended Year Ended Expected life in years 5 10 5 10 Stock price volatility 50 148 % 50 148 % Risk free interest rate 2.50 3.50 % 0.77 1.63 % Expected dividends 0 % 0 % |
ACQUISITIONS AND BUSINESS COM_2
ACQUISITIONS AND BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF PROFORMA FINANCIAL INFORMATION | The following pro forma financial information presents the results of operations of the Company as of the three months ended July 31, 2022 and 2021, as if the acquisitions of PlaySight and Gameface had occurred as of the beginning of the first period presented instead of February 2022. The pro forma financial information of the Company as of the three months ended July 31, 2021 is as follows: SCHEDULE OF PROFORMA FINANCIAL INFORMATION Revenues $ 4,946,449 Net loss $ (4,006,255 ) Basic and diluted earnings (loss) per share $ (1.38 ) |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL | The changes in the carrying amount of goodwill as of July 31, 2022 were as follows: SCHEDULE OF GOODWILL Balance as of April 30, 2022 $ 32,643,193 Less impairment ( - ) Balance as of July 31, 2022 $ 32,643,193 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets, net consisted of the following: SCHEDULE OF INTANGIBLE ASSETS Weighted Average Period July 31, 2022 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 2,085,582 $ 45,866 - $ 2,039,716 Customer relationships 9.92 19,520,000 368,996 - 19,151,004 Internally developed software 4.91 3,010,000 241,392 - 2,768,608 Total intangible assets $ 24,615,582 $ 656,254 $ - $ 23,959,328 Weighted Average Period April 30, 2022 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames 15.26 $ 2,154,551 $ 24,102 (68,969 ) $ 2,061,480 Customer relationships 9.92 20,412,491 169,070 (892,491 ) 19,350,930 Internally developed software 4.91 3,105,139 105,908 (95,139 ) 2,904,092 Total intangible assets $ 25,672,181 $ 299,080 $ (1,056,599 ) $ 24,316,502 |
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION | As of July 31, 2022, the estimated future amortization expense associated with the Company’s intangible assets for each of the five succeeding fiscal years is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION For the Periods Ended July 31, Amortization 2023 $ 1,572,905 2024 1,824,808 2025 2,569,690 2026 3,330,667 2027 3,122,430 Thereafter 11,538,828 Total $ 23,959,328 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | The composition of accrued expenses is summarized below: SCHEDULE OF ACCRUED EXPENSES July 31, 2022 April 30, 2022 Accrued payroll $ 2,370,768 $ 2,011,149 Accrued bonus 1,314,753 1,114,753 Accrued professional fees 1,371,988 1,706,560 Goods received not invoiced 431,023 293,413 Other accrued expenses 1,231,298 476,136 Total $ 6,719,830 $ 5,602,011 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUES AND PROFIT LOSS OPERATING SEGMENT | The below table represents revenues and profit or loss by each operating segment for the three months ended July 31, 2022 and 2021: SCHEDULE OF REVENUES AND PROFIT LOSS OPERATING SEGMENT 2022 2021 Net Revenues Equipment $ 3,557,206 $ 2,537,573 Technology 1,389,243 — Total Net Revenues $ 4,946,449 $ 2,537,573 2022 2021 Profit or (Loss) Equipment $ (2,372,718 ) $ (3,435,312 ) Technology (1,638,588 ) — Total Profit or (Loss) $ (4,011,306 ) $ (3,435,312 ) |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Jun. 14, 2022 | Sep. 16, 2019 | Aug. 23, 2019 | Apr. 30, 2022 | Dec. 05, 2022 | Jun. 21, 2021 | Feb. 10, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Intangible assets of goodwill | $ 3,486,599 | ||||||
Reverse stock split | 1-for-10 reverse stock split | ||||||
Slinger Bag Americas Inc [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Number of shares exchanged | 2,000,000 | ||||||
Slinger Bag Americas Inc [Member] | Stock Purchase Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Number of shares issued for acquisition | 2,000,000 | ||||||
Number of value issued for acquisition | $ 332,239 | ||||||
Slinger Bag Americas Inc [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Percentage of ownership | 100% | 100% | 100% | ||||
Stock Purchase Agreement [Member] | Sole Shareholder of SBL [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Number of shares owned | 2,000,000 | ||||||
Sole Shareholder of SBL [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Percentage of ownership | 82% | ||||||
Foundation Sports Systems LLC [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Percentage of ownership | 75% | ||||||
Foundation Sports Systems LLC [Member] | Charles Ruddy [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Percentage of ownership | 100% |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Apr. 30, 2022 | |
Multiemployer Plan [Line Items] | ||
Accumulated deficit | $ 84,863,356 | $ 80,596,925 |
Play Sight [Member] | Foundation Sports [Member] | ||
Multiemployer Plan [Line Items] | ||
Discontinuing operations percentage | 75% |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Accounting Policies [Abstract] | ||
Finished Goods | $ 5,434,785 | $ 4,397,098 |
Component/Replacement Parts | 965,122 | 2,559,848 |
Capitalized Duty/Freight | 906,196 | 1,328,198 |
Inventory Reserve | (100,000) | (100,000) |
Total | $ 7,206,103 | $ 8,185,144 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Offsetting Assets [Line Items] | ||
Note derivative balance | $ 1,756,284 | |
Note derivative (gain) loss | 3,565,273 | $ 4,327,344 |
Note derivative (gain) loss | (3,687,495) | |
Convertible Notes Payable [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 1,396,546 | |
Note derivative (gain) loss | (1,269,417) | |
Convertible Notes [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 324,432 | |
Note derivative (gain) loss | (2,388,902) | |
Underwriter Warrants [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 35,306 | |
Note derivative (gain) loss | $ (29,176) |
SCHEDULE OF WARRANTS GRANTED VA
SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD (Details) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 5 years | |
Measurement Input, Expected Dividend Rate [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 0 | 0 |
Measurement Input, Expected Dividend Rate [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 0 | 0 |
Minimum [Member] | Measurement Input, Expected Term [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liabilities measurement input | 4 years | 1 year 11 months 12 days |
Minimum [Member] | Measurement Input, Expected Term [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 5 years | 5 years |
Minimum [Member] | Measurement Input, Price Volatility [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 50 | 50 |
Minimum [Member] | Measurement Input, Price Volatility [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 50 | 50 |
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 2.90 | 2.67 |
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 2.50 | 0.77 |
Maximum [Member] | Measurement Input, Expected Term [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liabilities measurement input | 4 years 3 months 18 days | 4 years 3 months 18 days |
Maximum [Member] | Measurement Input, Expected Term [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 10 years | 10 years |
Maximum [Member] | Measurement Input, Price Volatility [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 148 | |
Maximum [Member] | Measurement Input, Price Volatility [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 148 | 148 |
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 3.27 | 2.90 |
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | Valuation Technique, Option Pricing Model [Member] | Warrant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 3.50 | 1.63 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restricted cash | $ 146,960 | $ 156,724 | |
Allowance for doubtful accounts | $ 175,000 | 175,000 | |
Property plant and equipment, useful life | 5 years | ||
Finite lived intangible asset useful life | 20 years | ||
Amortization expense | $ 358,960 | $ 41,169 | |
Impairment of long-lived assets | 0 | 1,056,599 | |
Goodwill impairment charges | 2,430,000 | ||
Trademarks [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Amortization expense | $ 1,445 | 1,445 | |
Trade Names [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Finite lived intangible asset useful life | 20 years | ||
Computer Software, Intangible Asset [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Finite lived intangible asset useful life | 5 years | ||
Customer-Related Intangible Assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Finite lived intangible asset useful life | 15 years | ||
Trade Names Internally Developed Software And Customer Relationships [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Amortization expense | $ 334,601 | $ 39,724 | |
Fair Value, Inputs, Level 3 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Fair value of contingent consideration | 418,455 | $ 1,334,000 | |
Play Sight [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restricted cash | $ 146,960 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK AND OTHER RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Accounts payable concentration percentage | 64% | 43% |
Accounts Payable [Member] | Lender Concentration Risk [Member] | Customer Four [Member] | ||
Concentration Risk [Line Items] | ||
Accounts payable concentration percentage | 68% | 59% |
SCHEDULE OF PROFORMA FINANCIAL
SCHEDULE OF PROFORMA FINANCIAL INFORMATION (Details) - Play Sight And Game Face [Member] | 3 Months Ended |
Jul. 31, 2021 USD ($) $ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 4,946,449 |
Net loss | $ (4,006,255) |
Basic and diluted earnings (loss) per share | $ / shares | $ (1.38) |
ACQUISITIONS AND BUSINESS COM_3
ACQUISITIONS AND BUSINESS COMBINATIONS (Details Narrative) | Jul. 31, 2022 |
Foundation Sports [Member] | |
Business Acquisition [Line Items] | |
Disposal equity interest percentage | 75% |
Play Sight [Member] | |
Business Acquisition [Line Items] | |
Disposal equity interest percentage | 100% |
SCHEDULE OF GOODWILL (Details)
SCHEDULE OF GOODWILL (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance as of April 30, 2022 | $ 32,643,193 | |
Less impairment | $ 2,430,000 | |
Balance as of July 31, 2022 | $ 32,643,193 | $ 32,643,193 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets, Finite-Lived | $ 3,486,599 | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 23,959,328 | 24,316,502 |
Trade Names And Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,085,582 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 45,866 | |
Impairment of Intangible Assets, Finite-Lived | ||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,039,716 | |
Weighted average amortization | 15 years 3 months 3 days | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 19,520,000 | 20,412,491 |
Finite-Lived Intangible Assets, Accumulated Amortization | 368,996 | 169,070 |
Impairment of Intangible Assets, Finite-Lived | (892,491) | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 19,151,004 | $ 19,350,930 |
Weighted average amortization | 9 years 11 months 1 day | 9 years 11 months 1 day |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 3,010,000 | $ 3,105,139 |
Finite-Lived Intangible Assets, Accumulated Amortization | 241,392 | 105,908 |
Impairment of Intangible Assets, Finite-Lived | (95,139) | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,768,608 | $ 2,904,092 |
Weighted average amortization | 4 years 10 months 28 days | 4 years 10 months 28 days |
Intangiable Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 24,615,582 | $ 25,672,181 |
Finite-Lived Intangible Assets, Accumulated Amortization | 656,254 | 299,080 |
Impairment of Intangible Assets, Finite-Lived | (1,056,599) | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 23,959,328 | 24,316,502 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,154,551 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 24,102 | |
Impairment of Intangible Assets, Finite-Lived | (68,969) | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,061,480 | |
Weighted average amortization | 15 years 3 months 3 days |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Goodwill, impairement loss | $ 2,430,000 | |
Foundation Sports [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Goodwill, impairement loss | $ 0 | $ 2,430,000 |
SCHEDULE OF ESTIMATED FUTURE AM
SCHEDULE OF ESTIMATED FUTURE AMORTIZATION (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,572,905 | |
2024 | 1,824,808 | |
2025 | 2,569,690 | |
2026 | 3,330,667 | |
2027 | 3,122,430 | |
Thereafter | 11,538,828 | |
Total | $ 23,959,328 | $ 24,316,502 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Amortization of Intangible Assets | $ 358,960 | $ 41,169 | |
Impairment loss | $ (3,486,599) | ||
Foundation Sports Systems LLC [Member] | |||
Impairment loss | $ 1,056,599 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 2,370,768 | $ 2,011,149 |
Accrued bonus | 1,314,753 | 1,114,753 |
Accrued professional fees | 1,371,988 | 1,706,560 |
Goods received not invoiced | 431,023 | 293,413 |
Other accrued expenses | 1,231,298 | 476,136 |
Total | $ 6,719,830 | $ 5,602,011 |
NOTE PAYABLE - RELATED PARTY (D
NOTE PAYABLE - RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | |||
Jan. 14, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Proceeds from related party debt | $ 925,000 | $ 500,000 | ||
Interest expense - related party | 50,833 | |||
Accrued interest | 102,819 | $ 156,862 | ||
Related Party [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Outstanding borrowings | 2,000,000 | 2,000,000 | ||
Interest expense - related party | 61,121 | 56,233 | ||
Accrued interest | 969,876 | $ 908,756 | ||
Two Loan Agreements [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Loans payable | $ 1,000,000 | |||
Proceeds from related party debt | $ 2,000,000 | |||
Interest rate | 8% | |||
Outstanding borrowings | $ 2,000,000 | $ 2,000,000 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Jun. 17, 2022 | Jun. 17, 2022 | Jun. 15, 2022 | Apr. 02, 2022 | Dec. 31, 2021 | Aug. 06, 2021 | Jul. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2022 | |
Short-Term Debt [Line Items] | |||||||||
Convertible notes maturity date | Jul. 01, 2022 | ||||||||
Warrants term | 5 years | ||||||||
Warrants | $ 12,026,668 | ||||||||
Derivative liabilities | 1,862,450 | ||||||||
Debt issuance cost | 800,251 | ||||||||
Convertible debt discount | $ 14,689,369 | ||||||||
Loss on issuance of convertible notes | $ 3,689,369 | ||||||||
Convertible note description | On December 31, 2021, the Company entered into an Omnibus Amendment Agreement (the “Omnibus Agreement”) with certain Purchasers who are collectively holders of 67% or more of the Securities outstanding related to the August 6, 2021 Convertible Notes, amending each of (i) the Purchase Agreement and (ii) the Registration Rights Agreement. Simultaneously with the execution of the Omnibus Agreement, the Company issued to each Purchaser a Replacement Note (as defined below) in replacement of the Convertible Note held prior to December 31, 2021 by such Purchaser (each, an “Existing Note”). | ||||||||
Debt conversion of convertible notes, shares | 4,389,469 | 4,389,469 | |||||||
Convertiable notes | $ 13,200,000 | $ 13,200,000 | $ 0 | $ 13,200,000 | |||||
Accrued interest | 846,301 | ||||||||
Convertible Notes [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt discount | $ 122,222 | $ 122,222 | |||||||
Securities Purchase Agreement [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt interest rate | 8% | ||||||||
Senior convertible notes | $ 11,000,000 | ||||||||
Warrants issued to purchase of common stock, shares | 733,333 | ||||||||
Gross proceeds from issuance of senior convertible notes | $ 11,000,000 | ||||||||
Convertible notes maturity date | Aug. 06, 2022 | ||||||||
Conversion price | $ 3 | ||||||||
Warrants term | 5 years | ||||||||
Warrants rights date from which warrants exercisable | Aug. 06, 2021 | ||||||||
Warrants exercise price | $ 3 | ||||||||
Omnibus Agreement [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debt interest rate | 20% | ||||||||
Loss on issuance of convertible notes | $ 2,200,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 3 Months Ended | |||||||||||
Jul. 31, 2022 USD ($) | Jul. 29, 2022 USD ($) | May 01, 2022 shares | Apr. 30, 2022 USD ($) | Apr. 02, 2022 USD ($) | Feb. 15, 2022 USD ($) Integer | Apr. 11, 2021 USD ($) shares | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jun. 17, 2022 USD ($) | Dec. 24, 2020 USD ($) | Jun. 30, 2020 USD ($) | |
Short-Term Debt [Line Items] | ||||||||||||
Note payable | $ 0 | $ 13,200,000 | $ 0 | $ 13,200,000 | ||||||||
Shares issued | shares | 6,063,145 | |||||||||||
Extinguishment of debt | $ 1,501,914 | $ (5,118,435) | ||||||||||
Debt conversion, amount | 1,250,004 | |||||||||||
Consideration | $ 4,000,000 | |||||||||||
Consignment units | Integer | 13,000 | |||||||||||
Repayments of notes - related party | 1,559,109 | 965,463 | ||||||||||
Debt maturity date | Jul. 01, 2022 | |||||||||||
Related Party [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Note payable | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||
Convertible notes payable | 2,440,891 | 3,034,537 | 2,440,891 | |||||||||
Valuation Technique, Option Pricing Model [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Derivative liability | $ 1,251,910 | |||||||||||
Promissory Note Payable [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Shares issued | shares | 27,233 | |||||||||||
Interest rate | 20% | |||||||||||
Payables | $ 1,500,000 | |||||||||||
Fair value of derivative liability | $ 1,396,546 | $ 1,061,550 | $ 1,396,546 | |||||||||
Promissory Note Payable [Member] | Third Party [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate | 2.25% | |||||||||||
Note payable | $ 1,000,000 | |||||||||||
Notes Payable [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Note payable | $ 500,000 | |||||||||||
Interest rate | 8% | |||||||||||
Loan Agreement [Member] | Montsaic Investments, LLC [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Note payable | $ 120,000 | |||||||||||
Interest rate | 12.60% | |||||||||||
UFS Agreement [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Sale of consideration received | $ 1,124,250 | |||||||||||
Payment for exchange received amount | 750,000 | |||||||||||
Cash less fees | 60,000 | |||||||||||
UFS Agreement [Member] | Minimum [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Reduced form obligations received amount | 1,124,250 | |||||||||||
UFS Agreement [Member] | Maximum [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Reduced form obligations received amount | 855,000 | |||||||||||
UFS Agreement [Member] | Each Week for Next Three Weeks [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | 13,491 | |||||||||||
UFS Agreement [Member] | Thereafter Per Week [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | 44,970 | |||||||||||
UFS Agreement [Member] | Within Fourty Five Days [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | 855,000 | |||||||||||
Cedar Agreement [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Sale of consideration received | 1,124,250 | |||||||||||
Payment for exchange received amount | 750,000 | |||||||||||
Cash less fees | 60,000 | |||||||||||
Cedar Agreement [Member] | Minimum [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Reduced form obligations received amount | 1,124,250 | |||||||||||
Cedar Agreement [Member] | Maximum [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Reduced form obligations received amount | 855,000 | |||||||||||
Cedar Agreement [Member] | Each Week for Next Three Weeks [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | 13,491 | |||||||||||
Cedar Agreement [Member] | Thereafter Per Week [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | 44,970 | |||||||||||
Cedar Agreement [Member] | Within Fourty Five Days [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Payment for exchange received amount | $ 855,000 |
NOTES RECEIVABLE (Details Narra
NOTES RECEIVABLE (Details Narrative) - USD ($) | 3 Months Ended | |||||||||||
Jul. 31, 2021 | Jul. 26, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jun. 17, 2022 | Apr. 30, 2022 | Jan. 14, 2022 | Dec. 07, 2021 | Nov. 17, 2021 | Oct. 05, 2021 | Aug. 26, 2021 | Jul. 21, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Line of credit | $ 0 | $ 13,200,000 | $ 13,200,000 | |||||||||
Interest expense | $ 50,833 | |||||||||||
Notes Receivable [Member] | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Interest expense | $ 0 | |||||||||||
Loan Agreement [Member] | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Proceeds from line of credit | $ 300,000 | |||||||||||
Convertible Loan Agreement [Member] | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Line of credit | $ 250,000 | $ 300,000 | $ 300,000 | $ 400,000 | $ 700,000 | |||||||
Play Sight Interactive Ltd [Member] | Loan Agreement [Member] | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Interest rate | 15% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Related Party Transaction [Line Items] | |||
Accrued interest - related party | $ 969,876 | $ 908,756 | |
Revenue from related parties | $ 8,931 | ||
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Outstanding notes payable | 2,000,000 | 2,000,000 | |
Accrued interest - related party | 908,756 | ||
Revenue from related parties | 91,200 | ||
Outstanding accounts receivable | $ 92,582 | $ 93,535 |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 31, 2022 | Jun. 27, 2022 | Jun. 17, 2022 | Jun. 15, 2022 | Jun. 15, 2022 | May 01, 2022 | Feb. 22, 2022 | Feb. 02, 2022 | Jan. 11, 2022 | Oct. 11, 2021 | Sep. 03, 2021 | Aug. 06, 2021 | Jul. 11, 2021 | Jul. 06, 2021 | Jun. 23, 2021 | May 26, 2021 | Oct. 28, 2020 | Jun. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | Oct. 29, 2020 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||
Common stock, shares outstanding | 10,257,986 | 4,194,836 | 10,257,986 | 4,194,836 | |||||||||||||||||||
Common shares issuable | 10,257,986 | 4,194,836 | 10,257,986 | 4,194,836 | |||||||||||||||||||
Number of shares issued during period, shares | 6,063,145 | ||||||||||||||||||||||
Debt conversion of convertible notes, shares | 4,389,469 | 4,389,469 | |||||||||||||||||||||
Number of stock issued | 598,396 | ||||||||||||||||||||||
Number of stock issued, value | $ 915,545 | $ 3,550,000 | |||||||||||||||||||||
Warrants, term | 5 years | 5 years | |||||||||||||||||||||
Operating expenses related | $ 6,376,780 | $ 3,275,944 | |||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 1,048,750 | ||||||||||||||||||||||
Number of common stock, shares for services | 25,000 | 10,969 | |||||||||||||||||||||
Number of stock issued | 514,286 | 598,396 | 54,000 | ||||||||||||||||||||
Number of stock issued, value | $ 598 | $ 54 | |||||||||||||||||||||
Related Party Lender [Member] | |||||||||||||||||||||||
Common shares issuable | 692,130 | ||||||||||||||||||||||
Number of warrants issued to purchase common shares | 275,000 | ||||||||||||||||||||||
Convetible shares of common stock | 967,130 | ||||||||||||||||||||||
Note Payable Holder [Member] | |||||||||||||||||||||||
Number of warrants issued to purchase common shares | 220,000 | ||||||||||||||||||||||
Convetible shares of common stock | 495,000 | ||||||||||||||||||||||
As Compensation [Member] | Warrant [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 1,010,000 | ||||||||||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||||||||
Warrants issued to purchase of common stock, shares | 733,333 | ||||||||||||||||||||||
Foundation Sports [Member] | |||||||||||||||||||||||
Number of stock issued | 54,000 | ||||||||||||||||||||||
Number of stock issued, value | $ 3,550,000 | ||||||||||||||||||||||
Gameface [Member] | |||||||||||||||||||||||
Number of stock issued | 0 | ||||||||||||||||||||||
Gameface [Member] | Common Stock [Member] | |||||||||||||||||||||||
Number of stock issued | 478,225 | ||||||||||||||||||||||
Play Sight [Member] | |||||||||||||||||||||||
Number of stock issued | 2,537,969 | ||||||||||||||||||||||
Number of stock issued, value | $ 39,950,000 | ||||||||||||||||||||||
Gameface AI [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 598,396 | ||||||||||||||||||||||
Investor [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 1,048,750 | ||||||||||||||||||||||
Gabriel Goldman [Member] | |||||||||||||||||||||||
Number of common stock, shares for services | 25,000 | ||||||||||||||||||||||
Related Party Lender [Member] | |||||||||||||||||||||||
Number of stock issued | 163,684 | ||||||||||||||||||||||
Fair value of common stock | $ 6,220,000 | ||||||||||||||||||||||
Two Employees [Member] | Services rendered in lieu of cash [Member] | |||||||||||||||||||||||
Shares issued for compensation for services, shares | 5,022 | ||||||||||||||||||||||
Shares issued for compensation for services, value | $ 187,803 | ||||||||||||||||||||||
Vendor [Member] | Marketing And Advisory Services [Member] | |||||||||||||||||||||||
Shares issued for compensation for services, shares | 1,875 | 1,875 | 1,875 | ||||||||||||||||||||
Shares issued for compensation for services, value | 16,875 | ||||||||||||||||||||||
Six New Brand Ambassadors [Member] | As Compensation [Member] | Common Stock [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 9,094 | ||||||||||||||||||||||
Six New Brand Ambassadors [Member] | As Compensation [Member] | Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | |||||||||||||||||||||||
Number of shares issued during period, shares | 6,000 | ||||||||||||||||||||||
Brand Ambassadors [Member] | |||||||||||||||||||||||
Share based compensation expenses | 907,042 | ||||||||||||||||||||||
Vendor One [Member] | Marketing And Advisory Services [Member] | |||||||||||||||||||||||
Shares issued for compensation for services, value | 16,874 | ||||||||||||||||||||||
Key Employees and Officers [Member] | Common Stock [Member] | |||||||||||||||||||||||
Share based compensation expenses | 255,124 | ||||||||||||||||||||||
Number of warrants granted | 6,000 | ||||||||||||||||||||||
Key Employees and Officers [Member] | Warrant [Member] | |||||||||||||||||||||||
Share based compensation expenses | 32,381,309 | ||||||||||||||||||||||
Warrants, term | 10 years | ||||||||||||||||||||||
Key Employees and Officers [Member] | Exercise Price One [Member] | Warrant [Member] | |||||||||||||||||||||||
Warrants, exercise price | $ 0.001 | ||||||||||||||||||||||
Key Employees and Officers [Member] | Exercise Price Two [Member] | Warrant [Member] | |||||||||||||||||||||||
Number of warrants granted | 10,000 | ||||||||||||||||||||||
Warrants, exercise price | $ 3.42 | ||||||||||||||||||||||
Service Provider [Member] | |||||||||||||||||||||||
Warrants, exercise price | $ 0.75 | ||||||||||||||||||||||
Warrants, term | 10 years | ||||||||||||||||||||||
Service Provider [Member] | Warrant [Member] | |||||||||||||||||||||||
Number of warrants granted | 40,000 | ||||||||||||||||||||||
Three Members [Member] | Warrant [Member] | |||||||||||||||||||||||
Share based compensation expenses | 277,625 | 187,803 | |||||||||||||||||||||
Three Members [Member] | As Compensation [Member] | |||||||||||||||||||||||
Share based compensation expenses | $ 22,500 | 87,656 | |||||||||||||||||||||
Number of warrants granted | $ 46,077 | ||||||||||||||||||||||
Lead Placement Agent [Member] | Warrant [Member] | |||||||||||||||||||||||
Warrants, exercise price | $ 3.30 | ||||||||||||||||||||||
Warrants that are exercisable | 26,667 | ||||||||||||||||||||||
Operating expenses related | $ 376,000 | ||||||||||||||||||||||
Lead Placement Agent [Member] | Exercise Price One [Member] | Warrant [Member] | |||||||||||||||||||||||
Number of warrants granted | 1,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 22, 2022 | Feb. 11, 2022 | Jun. 30, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Rent expense | $ 700 | $ 1,400 | ||||
Fair value of common stock | 1,334,000 | |||||
Number of stock issued | 598,396 | |||||
Balance of contingent consideration | $ 418,455 | |||||
Contigent Consideration [Member] | ||||||
Wrote off | $ 4,847,000 | |||||
Common Stock [Member] | ||||||
Fair value of common stock | $ 4,847,000 | |||||
Number of stock issued | 514,286 | 598,396 | 54,000 |
SCHEDULE OF REVENUES AND PROFIT
SCHEDULE OF REVENUES AND PROFIT LOSS OPERATING SEGMENT (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total Net Revenues | $ 4,946,449 | $ 2,537,573 |
Total Profit or (Loss) | (4,011,306) | (3,435,312) |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Net Revenues | 3,557,206 | 2,537,573 |
Total Profit or (Loss) | (2,372,718) | (3,435,312) |
Technology [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Net Revenues | 1,389,243 | |
Total Profit or (Loss) | $ (1,638,588) |
SEGMENTS (Details Narrative)
SEGMENTS (Details Narrative) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 32,643,193 | $ 32,643,193 |
Technology Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 32,643,193 | 32,643,193 |
Technologys Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangibles | 23,853,713 | 24,209,442 |
Equipment Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangibles | $ 105,615 | $ 107,060 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | ||||||||||
Jan. 06, 2023 | Dec. 05, 2022 | Nov. 27, 2022 | Sep. 28, 2022 | Aug. 25, 2022 | Jun. 15, 2022 | May 01, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Jun. 17, 2022 | Apr. 30, 2022 | |
Subsequent Event [Line Items] | |||||||||||
Cash, shares | 6,063,145 | ||||||||||
Proceeds from common stock | $ 4,195,000 | ||||||||||
Convertiable notes | $ 0 | $ 13,200,000 | $ 13,200,000 | ||||||||
Investor [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash, shares | 1,048,750 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Membership interest description | the Company assigned 75% of its membership interest in Foundation Sports to Charles Ruddy, its founder and granted him the right for a period of three years to purchase the remaining 25% of its Foundation Sports membership interests for $500,000 in cash | ||||||||||
Cash | $ 500,000 | ||||||||||
Investment for reserves | $ 500,000 | ||||||||||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Investor [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash, shares | 1,018,510 | ||||||||||
Warrants to purchase common stock | 11,802,002 | ||||||||||
Proceeds from common stock | $ 4,549,882 | ||||||||||
Subsequent Event [Member] | Share Purchase Agreement [Member] | Buyer [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Purchase agreement description | the Company entered into a share purchase agreement (the “Agreement”) with PlaySight, Chen Shachar and Evgeni Khazanov (together, the “Buyer”) pursuant to which the Buyer purchased 100% of the issued and outstanding shares of PlaySight from the Company in exchange for (1) releasing the Company from all of PlaySight’s obligations towards its vendors, employees, tax authorities and any other (past, current and future) creditors of PlaySight; (2) waiver by the Buyer of 100% of the personal consideration owed to them under their employment agreements in the total amount of $600,000; and (3) cash consideration of $2,000,000 to be paid to the Company in the form of a promissory note that matures on December 31, 2023 | ||||||||||
Subsequent Event [Member] | Midcity Capital Ltd [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash, shares | 300,000 | ||||||||||
Subsequent Event [Member] | Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowing from notes payable | $ 600,000 | ||||||||||
Shares issued price per share | $ 0.221 | ||||||||||
Subsequent Event [Member] | Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | Notes [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowing from notes payable | $ 1,400,000 | ||||||||||
Subsequent Event [Member] | Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | Maximum [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Convertiable notes | $ 2,000,000 | ||||||||||
Common stock exercisable, shares | 18,099,548 |