Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2023 | Oct. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2023 | |
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, $0.001 par value | |
Trading Symbol | CNXA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 773,975 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 386,459 | $ 202,095 |
Accounts receivable, net | 444,622 | 399,680 |
Inventories, net | 2,336,918 | 3,189,766 |
Prepaid inventory | 1,134,368 | 936,939 |
Prepaid expenses and other current assets | 280,820 | 263,020 |
Total Current Assets | 4,583,187 | 4,991,500 |
Non-Current Assets: | ||
Note receivable - former subsidiary | 2,000,000 | 2,000,000 |
Fixed assets, net of depreciation | 14,791 | |
Intangible assets, net of amortization | 1,000 | 101,281 |
Total Non-Current Assets | 2,001,000 | 2,116,072 |
TOTAL ASSETS | 6,584,187 | 7,107,572 |
Current Liabilities: | ||
Accounts payable | 6,087,311 | 5,496,629 |
Accrued expenses | 5,197,460 | 4,911,839 |
Current portion of notes payable, net of discount | 1,959,671 | 1,484,647 |
Derivative liabilities | 8,345,052 | 10,489,606 |
Contingent consideration | 418,455 | 418,455 |
Other current liabilities | 330,065 | 22,971 |
Total Current Liabilities | 23,297,493 | 23,767,491 |
Long-Term Liabilities: | ||
Total Long-Term Liabilities | 1,655,966 | 1,953,842 |
Total Liabilities | 24,953,459 | 25,721,333 |
Commitments and contingency | ||
SHAREHOLDERS’ EQUITY (DEFICIT) | ||
Common stock, par value, $0.001, 300,000,000 shares authorized, 528,297 and 338,579 shares issued and outstanding as of July 31, 2023 and April 30, 2023, respectively | 528 | 339 |
Additional paid in capital | 134,112,083 | 132,993,998 |
Accumulated deficit | (152,597,375) | (151,750,610) |
Accumulated other comprehensive income (loss) | 115,492 | 142,512 |
Total Stockholders’ Equity (Deficit) | (18,369,272) | (18,613,761) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | 6,584,187 | 7,107,572 |
Nonrelated Party [Member] | ||
Current Liabilities: | ||
Accrued interest | 41,522 | 25,387 |
Related Party [Member] | ||
Current Liabilities: | ||
Accrued interest | 917,957 | 917,957 |
Long-Term Liabilities: | ||
Notes payable related parties, net of current portion | $ 1,655,966 | $ 1,953,842 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2023 | Apr. 30, 2023 |
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 | 528,297 | 338,579 |
Common stock, shares outstanding | 528,297 | 338,579 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
NET SALES | $ 3,120,231 | $ 3,583,336 |
COST OF SALES | 2,227,482 | 2,562,044 |
GROSS PROFIT | 892,749 | 1,021,292 |
OPERATING EXPENSES | ||
Selling and marketing expenses | 242,353 | 756,823 |
General and administrative expenses | 2,505,060 | 3,314,610 |
Research and development costs | 19,425 | |
Total Operating Expenses | 2,747,413 | 4,090,858 |
OPERATING LOSS | (1,854,664) | (3,069,566) |
NON-OPERATING INCOME (EXPENSE) | ||
Amortization of debt discounts | (777,192) | (2,872,222) |
Loss on conversion of accounts payable to common stock | (289,980) | |
Change in fair value of derivative liability | 2,144,554 | 3,687,495 |
Total Non-Operating Income (Expenses) | 1,007,899 | 562,849 |
NET LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (846,765) | (2,506,717) |
Loss from discontinued operations | (1,759,714) | |
Loss on disposal of subsidiaries | ||
LOSS FROM DISCONTINUED OPERATIONS | (1,759,714) | |
NET LOSS FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (846,765) | (4,266,431) |
Provision for income taxes | ||
NET LOSS | (846,765) | (4,266,431) |
Other comprehensive income (loss) | ||
Foreign currency translations adjustment | (27,020) | 58,139 |
Comprehensive income (loss) | $ (873,785) | $ (4,208,292) |
Net income (loss) per share - basic and diluted | ||
Continuing operations basic | $ (1.93) | $ (14.27) |
Continuing operations diluted | (1.93) | (14.27) |
Discontinued operations basic | (10.02) | |
Discontinued operations diluted | (10.02) | |
Net loss per share - basic | (1.93) | (24.29) |
Net loss per share - diluted | $ (1.93) | $ (24.29) |
Weighted average common shares outstanding - basic | 438,354 | 175,653 |
Weighted average common shares outstanding - diluted | 438,354 | 175,653 |
Nonrelated Party [Member] | ||
NON-OPERATING INCOME (EXPENSE) | ||
Interest expense | $ (69,483) | $ (191,303) |
Related Party [Member] | ||
NON-OPERATING INCOME (EXPENSE) | ||
Interest expense | $ (61,121) |
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 |
Balance at Apr. 30, 2022 | $ 105 | $ 113,053,790 | $ 54,962 | $ (80,596,925) | $ 32,511,932 |
Balance, shares at Apr. 30, 2022 | 104,871 | ||||
Stock issued for: | |||||
Conversion of notes payable | $ 110 | 14,046,190 | 14,046,300 | ||
Conversion of notes payable, shares | 109,737 | ||||
Acquisition | $ 15 | 915,530 | 915,545 | ||
Acquisitions, shares | 14,960 | ||||
Services | $ 1 | 35,249 | 35,250 | ||
Services, shares | 625 | ||||
Cash | $ 26 | 4,194,974 | 4,195,000 | ||
Cash, shares | 26,219 | ||||
Fractional share issuance | |||||
Fractional share issuance, shares | 38 | ||||
Share-based compensation | 277,625 | 277,625 | |||
Change in comprehensive income (loss) | 58,139 | 58,139 | |||
Net loss for the period | (4,266,431) | (4,266,431) | |||
Balance at Jul. 31, 2022 | $ 257 | 132,523,358 | 113,101 | (84,863,356) | 47,773,360 |
Balance, shares at Jul. 31, 2022 | 256,450 | ||||
Balance at Apr. 30, 2022 | $ 105 | 113,053,790 | 54,962 | (80,596,925) | $ 32,511,932 |
Balance, shares at Apr. 30, 2022 | 104,871 | ||||
Stock issued for: | |||||
Cash, shares | 151,579 | ||||
Balance at Apr. 30, 2023 | $ 339 | 132,993,998 | 142,512 | (151,750,610) | $ (18,613,761) |
Balance, shares at Apr. 30, 2023 | 338,579 | ||||
Stock issued for: | |||||
Acquisition | $ 1 | (1) | |||
Acquisitions, shares | 1,350 | ||||
Services | |||||
Services, shares | 188 | ||||
Cash | 188 | ||||
Share-based compensation | |||||
Change in comprehensive income (loss) | (27,020) | (27,020) | |||
Net loss for the period | (846,765) | (846,765) | |||
Accounts payable | $ 67 | 559,913 | 559,980 | ||
Accounts payable, shares | 67,500 | ||||
Cashless exercise of warrants | $ 27 | (27) | |||
Cashless exercise of warrants, shares | 27,000 | ||||
Satisfaction of profit guarantee on note payable | $ 94 | 558,200 | 558,294 | ||
Satisfaction of profit guarantee on note payable, shares | 93,680 | ||||
Balance at Jul. 31, 2023 | $ 528 | $ 134,112,083 | $ 115,492 | $ (152,597,375) | $ (18,369,272) |
Balance, shares at Jul. 31, 2023 | 528,297 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (846,765) | $ (4,266,431) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation, amortization and impairment expense | 115,072 | |
Change in fair value of derivative liability | (2,144,554) | (3,687,495) |
Shares and warrants issued for services | 35,250 | |
Share-based compensation | 277,625 | |
Amortization of debt discounts | 777,192 | 2,872,222 |
Settlement expense | 558,294 | |
Loss on settlement of accounts payable | 289,980 | |
Loss on conversion of convertible notes | ||
Changes in assets and liabilities, net of acquired amounts | ||
Accounts receivable | 265,992 | |
Inventories | 852,848 | |
Prepaid inventory | (197,429) | |
Prepaid expenses and other current assets | (1,316) | |
Accounts payable and accrued expenses | 255,199 | |
Other current liabilities | 326,550 | |
Accrued interest | 16,135 | |
Accrued interest - related parties | ||
Total adjustments | 1,113,963 | (502,398) |
Net cash used in operating activities of continuing operations | 267,198 | (4,768,829) |
Net cash provided by operating activities of discontinued operations | ||
Net cash used in operating activities | 267,198 | (4,768,829) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock for cash | 4,195,000 | |
Proceeds from notes payable | 925,000 | |
Payments of notes payable - related parties | (298,834) | (15,386) |
Payments of notes payable | (302,168) | (1,698,485) |
Net cash provided by financing activities | (601,002) | 3,406,129 |
Effect of exchange rate fluctuations on cash and cash equivalents | (17,996) | 67,357 |
NET DECREASE IN CASH AND RESTRICTED CASH | (351,800) | (1,295,343) |
CASH AND RESTRICTED CASH - BEGINNING OF PERIOD | 202,095 | 665,002 |
CASH AND RESTRICTED CASH - END OF PERIOD | (149,705) | (630,341) |
CASH PAID DURING THE PERIOD FOR: | ||
Interest expense | ||
Income taxes | ||
SUPPLEMENTAL INFORMATION - NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Conversion of convertible notes payable and accrued interest to common stock | 14,046,300 | |
Shares issued for contingent consideration | 915,545 | |
Shares issued for settlement of accounts payable | $ 270,000 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Jul. 31, 2023 | |
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 50,000 332,239 50,000 100 50,000 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 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. 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. In November 2022, the Company sold PlaySight and recorded a loss on the sale. 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”. On June 14, 2022, the Company effected a 1-for-10 reverse stock split On October 10, 2022, the Company received a letter from the Listing Qualifications Department of the 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 has closed below the minimum $1.00 per share requirement for continued listing under Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Rule”). The Nasdaq notice indicated that, in accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company would be provided 180 calendar days, or until April 10, 2023, to regain compliance. If the Company were to fail to regain compliance with the Bid Price Rule before April 10, 2023, t he Company may be eligible for an additional 180-calendar day compliance period. The Company failed to regain compliance with the Bid Price Rule by April 10, 2023 and requested and received an additional period of 180 days until 1-for-40 reverse stock split 1.00 1.00 On July 26, 2023, the Company received a letter from the Listing Qualifications Department of Nasdaq indicating that the Company’s stockholders’ equity as reported in its Quarterly Report on Form 10-Q for the quarterly period ended January 31, 2023 did not satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b)(1), which requires that a listed company’s stockholders’ equity be at least $ 2.5 There can be no assurance that the Company will be able to satisfy the Nasdaq’s continued listing requirements, regain compliance with the Rule, the Minimum Stockholders’ Equity Requirement, and the Minimum Bid Price Requirement, and maintain compliance with other Nasdaq listing requirements. For further details on PlaySight and Foundation Sports we refer you to our Annual Report on Form 10-K for the year ended April 30, 2023, filed with the Securities and Exchange Commission on September 14, 2023. This Form 10-K and the consolidated financial statements will concentrate on our existing business as reflected in the following paragraph. 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. The operations of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL, and Gameface are collectively referred to as the “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 consolidated financial statements include the combined results of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada, Slinger Bag UK, SBL, and Gameface for the periods ended July 31, 2023 and 2022. The operations of Foundation Sports and PlaySight are included as discontinued operations in our statements of operations as these entities were sold in November 2022 and December 2022 for the period ended July 31, 2022. Impact of COVID-19 Pandemic The Company continues to carefully monitor the global COVID-19 pandemic status and its impact on its business. In that regard, while the Company has continued to sell its products it has previously experienced certain minor 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, the on-going global efforts to contain it. 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 currently 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, 2023 | |
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 $ 152,597,375 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 selling PlaySight, as well as selling 75 25 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2023 | |
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, 2023, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending April 30, 2024 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended April 30, 2023, filed with the Securities and Exchange Commission on September 14, 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. 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 $ 200,000 209,690 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, 2023 and April 30, 2023 consisted of the following: SCHEDULE OF INVENTORY July 31, 2023 April 30, 2023 Finished Goods $ 400,598 $ 1,509,985 Component/Replacement Parts 2,064,041 1,712,553 Capitalized Duty/Freight 47,279 517,228 Inventory Reserve (175,000 ) (550,000 ) Total $ 2,336,918 $ 3,189,766 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 was calculated using Level 3 inputs. The fair value of contingent consideration as of July 31, 2023 and April 30, 2023 was $ 418,455 418,455 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, 2023: SCHEDULE OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2023 ending balance (Gain) loss for the three months ended July 31, 2023 4/11/21 profit guaranty $ 1,456,854 $ - 8/6/21 convertible notes 74,958 (26,966 ) 6/17/22 underwriter warrants 4,966 (1,565 ) 9/30/22 warrants issued with common stock 4,668,608 (1,440,951 ) 1/6/2023 warrants issued with note payable 2,139,666 (675,072 ) Total $ 8,345,052 $ (2,144,554 ) The Black-Scholes option pricing model assumptions for the derivative liabilities during the periods ended July 31, 2023 and 2022 consisted of the following: SCHEDULE OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years 0.7 10 4 4.3 Stock price volatility 150 % 50 148 % Risk free interest rate 4.08 5.37 % 2.90 3.27 % Expected dividends 0 % 0 % 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 Company also acquired intangible assets as a part of the Gameface acquisition. These intangible assets include tradenames, internally developed software, and customer relationships. The acquired intangible assets are amortized based on the estimated present value of cash flows of each class of intangible assets in order to determine their economic useful life. During the three months ended July 31, 2023, the Company impaired their intangible assets down to a nominal value of $ 1,000 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 impaired $ 100,281 14,791 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 impaired all goodwill as of April 30, 2023. 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. The warrants granted during the periods ended July 31, 2023 and 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 Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years - 5 10 Stock price volatility - % 50 148 % Risk free interest rate - % 2.50 3.50 % Expected dividends - % 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 adoption of the new standard did not have a material effect on the Company’s 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 adoption of the new standard did not have a material effect on the Company’s consolidated 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, 2023 | |
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, 2023 and April 30, 2023, the Company had two customers that accounted for 50 47 Accounts Payable Concentration As of July 31, 2023 and April 30, 2023, the Company had four significant suppliers that accounted for 60 59 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | Note 5: INTANGIBLE ASSETS Intangible assets reflect only those intangible assets of our continuing operations, and consist of the following: SCHEDULE OF INTANGIBLE ASSETS (in years) Value Amortization Loss Value Weighted Average Period July 31, 2023 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 385,582 $ 24,031 $ 360,551 $ 1,000 Customer relationships 9.92 3,930,000 50,038 3,879,962 - Internally developed software 4.91 580,000 79,608 500,392 - Total intangible assets $ 4,895,582 $ 153,677 $ 4,740,905 $ 1,000 (in years) Value Amortization Loss Value Weighted Average Period April 30, 2023 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 385,582 $ 24,031 260,270 $ 101,281 Customer relationships 9.92 3,930,000 50,038 3,879,962 - Internally developed software 4.91 580,000 79,608 500,392 - Total intangible assets $ 4,895,582 $ 153,677 $ 4,640,624 $ 101,281 Amortization expense for the three months ended July 31, 2023 and 2022 was approximately $ 0 1,445 100,281 1,000 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | Note 6 ACCRUED EXPENSES The composition of accrued expenses is summarized below: SCHEDULE OF ACCRUED EXPENSES July 31, 2023 April 30, 2023 Accrued payroll $ 1,754,936 $ 1,535,186 Accrued bonus 1,829,604 1,720,606 Accrued professional fees 35,000 490,424 Other accrued expenses 1,577,920 1,165,623 Total $ 5,197,460 $ 4,911,839 |
NOTE PAYABLE - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | Note 7: NOTE PAYABLE - RELATED PARTY The discussion of note payable – related party only includes those that existed as of April 30, 2023. For a discussion of all prior note payable – related party we refer you to the Annual Report on Form 10-K filed September 14, 2023 for the fiscal year end April 30, 2023. 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 $ 1,655,966 1,953,842 0 61,121 917,957 917,957 On January 6, 2023, we sold certain of our inventory including all components, parts, additions and accessions thereto to Yonah Kalfa and Naftali Kalfa who immediately consigned it back to us in exchange for a payment of $ 103 2,092,700 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | Note 8: CONVERTIBLE NOTES PAYABLE The discussion of convertible notes payable only includes those that existed as of April 30, 2023. For a discussion of all prior convertible notes payable we refer you to the Annual Report on Form 10-K filed September 14, 2023 for the fiscal year end April 30, 2023. As of April 30, 2023, all outstanding convertible notes payable had been fully converted into outstanding common shares. On June 17, 2022, the Company issued 109,737 13,200,000 846,301 122,222 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Note 9: NOTES PAYABLE The discussion of notes payable only includes those that existed as of April 30, 2023. For a discussion of all prior notes payable we refer you to the Annual Report on Form 10-K filed September 14, 2023 for the fiscal year end April 30, 2023. On April 11, 2021, the Company and the lender entered into an agreement whereby the lender converted the promissory note into 681 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 $ 1,456,854 1,456,854 On February 15, 2022, for and in consideration of $ 4,000,000 13,000 4,000,000 1,559,109 On April 1, 2022, the Company entered into a $ 500,000 July 1, 2022 8 500,000 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 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 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. 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 8.84 452,489 8.84 600,000 3,715,557 0 1,715,557 The derivative liability was valued at $ 2,139,666 2,814,738 675,072 777,192 6.43 Meged Agreement On June 8, 2023, the Company entered into a merchant cash advance agreement with Meged Funding Group (“Meged”) pursuant to which the Company sold $ 315,689 210,600 10,580 17,538 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 10: 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 $ 1,655,966 1,953,842 917,957 917,957 The Company recognized net sales of $ 50,900 91,200 28,800 28,800 |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) | 3 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY (DEFICIT) | Note 11: SHAREHOLDERS’ EQUITY (DEFICIT) Common Stock The Company has 300,000,000 0.001 528,297 338,579 For the period May 1, 2023 through July 31, 2023, the Company issued 189,718 188 67,500 1,350 27,000 93,680 Equity Transactions During the Year Ended April 30, 2023 The Company has issued an aggregate of 151,579 On June 15, 2022, the Company issued 109,737 On June 15, 2022, the Company issued 26,219 On June 27, 2022, the Company issued 625 On June 27, 2022, the Company issued 14,960 On August 25, 2022, the Company issued 750 On September 28, 2022, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with a single institutional investor (the “Investor”) for the issuance and sale of (i) 25,463 295,050 15.60 15.596 5.0 0.0004 320,513 15.60 641,026 641,026 17.20 4,549,882 On October 12, 2022, the Company issued 48,098 675 6,993 On January 26, 2023, the Company issued 150 The Company has not granted any warrants for the three months ended July 31, 2023. Warrants Granted During the Year Ended April 30, 2023 On September 28, 2022, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with a single institutional investor (the “Investor”) for the issuance and sale of (i) 25,463 295,050 15.60 15.596 5.0 0.0004 320,513 15.60 641,026 641,026 17.20 8.84 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 4.33 1,400,000 8.84 452,489 8.84 600,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 12: 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, 2023 and 2022 amounted to $ 1,969 700 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 The Company issued 14,960 418,455 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. Nasdaq Compliance On March 21, 2023, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“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 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 The Nasdaq Stock Market LLC (“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 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. On June 29, 2023, the Company received an extension until July 25, 2023 to file their delinquent 10-Q’s for the fiscal year ending April 30, 2023. On July 26, 2023, the Company received a letter from the Listing Qualifications Department of Nasdaq indicating that the Company’s stockholders’ equity as reported in its Quarterly Report on Form 10-Q for the quarterly period ended January 31, 2023 did not satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b)(1), which requires that a listed company’s stockholders’ equity be at least $ 2.5 11.7 The Company offers no assurance that it will regain compliance with the Bid Price Rule, the Minimum Stockholders’ Equity Requirement and/or any other delinquency in a timely manner. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | Note 13 DISCONTINUED OPERATIONS 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 (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 2,000,000 On December 5, 2022, the Company assigned 75 25 500,000 500,000 The Company accounted for these sales as a disposal of a business under ASC 205-20-50-1(a). The Company had reclassified the operations of PlaySight and Foundation Sports as discontinued operations as the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The Company reclassified the following operations to discontinued operations for the three months ended July 31, 2023. SCHEDULE OF DISCONTINUED OPERATIONS 2023 Revenue $ 1,363,113 Operating expenses 3,278,269 Other (income) loss (155,442 ) Net loss from discontinued operations $ (1,759,714 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 14: SUBSEQUENT EVENTS From August 1, 2023 through the date hereof, the Company issued the following shares of common stock: On August 1, 2023, the Company issued 31,042 On August 17, 2023, the Company issued 1,876 On August 31, 2023, the Company issued 42,500 On September 18, 2023, the Company issued 125,134 On September 19, 2023, the Company issued 9,444 UFS Agreement On August 7, 2023, the Company entered into an agreement with UFS (the “UFS Agreement”) pursuant to which the Company sold $ 797,500 550,000 50,000 30,000 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. On August 21, 2023, the Company amended its arrangement with MidCity and agreed to issue 42,500 On September 19, 2023, the Company entered into an agreement with Meged (the “Second Meged Agreement”) pursuant to which the Company sold $ 423,000 70,153.20 15,107.14 In order to secure payment and performance of the Company’s obligations to Meged under the Second Meged Agreement, the Company granted to Meged 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2023 | |
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, 2023, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending April 30, 2024 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended April 30, 2023, filed with the Securities and Exchange Commission on September 14, 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. |
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 $ 200,000 209,690 |
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, 2023 and April 30, 2023 consisted of the following: SCHEDULE OF INVENTORY July 31, 2023 April 30, 2023 Finished Goods $ 400,598 $ 1,509,985 Component/Replacement Parts 2,064,041 1,712,553 Capitalized Duty/Freight 47,279 517,228 Inventory Reserve (175,000 ) (550,000 ) Total $ 2,336,918 $ 3,189,766 |
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 was calculated using Level 3 inputs. The fair value of contingent consideration as of July 31, 2023 and April 30, 2023 was $ 418,455 418,455 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, 2023: SCHEDULE OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2023 ending balance (Gain) loss for the three months ended July 31, 2023 4/11/21 profit guaranty $ 1,456,854 $ - 8/6/21 convertible notes 74,958 (26,966 ) 6/17/22 underwriter warrants 4,966 (1,565 ) 9/30/22 warrants issued with common stock 4,668,608 (1,440,951 ) 1/6/2023 warrants issued with note payable 2,139,666 (675,072 ) Total $ 8,345,052 $ (2,144,554 ) The Black-Scholes option pricing model assumptions for the derivative liabilities during the periods ended July 31, 2023 and 2022 consisted of the following: SCHEDULE OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years 0.7 10 4 4.3 Stock price volatility 150 % 50 148 % Risk free interest rate 4.08 5.37 % 2.90 3.27 % Expected dividends 0 % 0 % |
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 Company also acquired intangible assets as a part of the Gameface acquisition. These intangible assets include tradenames, internally developed software, and customer relationships. The acquired intangible assets are amortized based on the estimated present value of cash flows of each class of intangible assets in order to determine their economic useful life. During the three months ended July 31, 2023, the Company impaired their intangible assets down to a nominal value of $ 1,000 |
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 impaired $ 100,281 14,791 |
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 impaired all goodwill as of April 30, 2023. |
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. The warrants granted during the periods ended July 31, 2023 and 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 Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years - 5 10 Stock price volatility - % 50 148 % Risk free interest rate - % 2.50 3.50 % Expected dividends - % 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 adoption of the new standard did not have a material effect on the Company’s 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 adoption of the new standard did not have a material effect on the Company’s consolidated 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, 2023 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY July 31, 2023 April 30, 2023 Finished Goods $ 400,598 $ 1,509,985 Component/Replacement Parts 2,064,041 1,712,553 Capitalized Duty/Freight 47,279 517,228 Inventory Reserve (175,000 ) (550,000 ) Total $ 2,336,918 $ 3,189,766 |
SCHEDULE OF DERIVATIVE LIABILITIES | SCHEDULE OF DERIVATIVE LIABILITIES Note derivative is related to July 31, 2023 ending balance (Gain) loss for the three months ended July 31, 2023 4/11/21 profit guaranty $ 1,456,854 $ - 8/6/21 convertible notes 74,958 (26,966 ) 6/17/22 underwriter warrants 4,966 (1,565 ) 9/30/22 warrants issued with common stock 4,668,608 (1,440,951 ) 1/6/2023 warrants issued with note payable 2,139,666 (675,072 ) Total $ 8,345,052 $ (2,144,554 ) |
SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD | SCHEDULE OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years 0.7 10 4 4.3 Stock price volatility 150 % 50 148 % Risk free interest rate 4.08 5.37 % 2.90 3.27 % 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 | SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD Period Ended July 31, 2023 Period Ended July 31, 2022 Expected life in years - 5 10 Stock price volatility - % 50 148 % Risk free interest rate - % 2.50 3.50 % Expected dividends - % 0 % |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets reflect only those intangible assets of our continuing operations, and consist of the following: SCHEDULE OF INTANGIBLE ASSETS (in years) Value Amortization Loss Value Weighted Average Period July 31, 2023 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 385,582 $ 24,031 $ 360,551 $ 1,000 Customer relationships 9.92 3,930,000 50,038 3,879,962 - Internally developed software 4.91 580,000 79,608 500,392 - Total intangible assets $ 4,895,582 $ 153,677 $ 4,740,905 $ 1,000 (in years) Value Amortization Loss Value Weighted Average Period April 30, 2023 Amortization (in years) Carrying Value Accumulated Amortization Impairment Loss Net Carrying Value Tradenames and patents 15.26 $ 385,582 $ 24,031 260,270 $ 101,281 Customer relationships 9.92 3,930,000 50,038 3,879,962 - Internally developed software 4.91 580,000 79,608 500,392 - Total intangible assets $ 4,895,582 $ 153,677 $ 4,640,624 $ 101,281 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | The composition of accrued expenses is summarized below: SCHEDULE OF ACCRUED EXPENSES July 31, 2023 April 30, 2023 Accrued payroll $ 1,754,936 $ 1,535,186 Accrued bonus 1,829,604 1,720,606 Accrued professional fees 35,000 490,424 Other accrued expenses 1,577,920 1,165,623 Total $ 5,197,460 $ 4,911,839 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISCONTINUED OPERATIONS | The Company reclassified the following operations to discontinued operations for the three months ended July 31, 2023. SCHEDULE OF DISCONTINUED OPERATIONS 2023 Revenue $ 1,363,113 Operating expenses 3,278,269 Other (income) loss (155,442 ) Net loss from discontinued operations $ (1,759,714 ) |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) | Sep. 22, 2023 | Jun. 14, 2022 | Sep. 16, 2019 | Aug. 23, 2019 | Oct. 09, 2023 | Jul. 31, 2023 | Jul. 26, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Dec. 05, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jun. 21, 2021 | Feb. 10, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Reverse stock split | 1-for-10 reverse stock split | |||||||||||||
Stockholders equity | $ (18,369,272) | $ (18,613,761) | $ 11,700,000 | $ 47,773,360 | $ 32,511,932 | |||||||||
Minimum [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Stockholders equity | $ 2,500,000 | $ 2,500,000 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Reverse stock split | 1-for-40 reverse stock split | |||||||||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Bid share price | $ 1 | |||||||||||||
Slinger Bag Americas Inc [Member] | Stock Purchase Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of shares issued for acquisition | 50,000 | |||||||||||||
Number of value issued for acquisition | $ 332,239 | |||||||||||||
Sole Shareholder of SBL [Member] | Stock Purchase Agreement [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of shares owned | 50,000 | |||||||||||||
Slinger Bag Americas Inc [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Percentage of ownership | 100% | 100% | 100% | |||||||||||
Number of shares exchanged | 50,000 | |||||||||||||
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, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | |
Multiemployer Plan [Line Items] | ||||
Accumulated deficit | $ 152,597,375 | $ 151,750,610 | ||
Foundation Sports Systems LLC [Member] | ||||
Multiemployer Plan [Line Items] | ||||
Investment retained after disposal, ownership interest after disposal | 25% | |||
Investment amount | $ 0 | |||
Play Sight [Member] | Foundation Sports Systems LLC [Member] | ||||
Multiemployer Plan [Line Items] | ||||
Discontinuing operations percentage | 75% | 75% |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Accounting Policies [Abstract] | ||
Finished Goods | $ 400,598 | $ 1,509,985 |
Component/Replacement Parts | 2,064,041 | 1,712,553 |
Capitalized Duty/Freight | 47,279 | 517,228 |
Inventory Reserve | (175,000) | (550,000) |
Total | $ 2,336,918 | $ 3,189,766 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Offsetting Assets [Line Items] | ||
Note derivative balance | $ 8,345,052 | |
Note derivative (gain) loss | (2,144,554) | $ (3,687,495) |
Profit Guaranty [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 1,456,854 | |
Note derivative (gain) loss | ||
Convertible Notes [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 74,958 | |
Note derivative (gain) loss | (26,966) | |
Underwriter Warrants [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 4,966 | |
Note derivative (gain) loss | (1,565) | |
Warrants Issued With Common Stock [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 4,668,608 | |
Note derivative (gain) loss | (1,440,951) | |
Warrants Issued With Notes Payable [Member] | ||
Offsetting Assets [Line Items] | ||
Note derivative balance | 2,139,666 | |
Note derivative (gain) loss | $ (675,072) |
SCHEDULE OF DERIVATIVE AND WARR
SCHEDULE OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD (Details) - Valuation Technique, Option Pricing Model [Member] | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Measurement Input, Price Volatility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 150 | |
Measurement Input, Expected Dividend Rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 0 | 0 |
Minimum [Member] | Measurement Input, Expected Term [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liabilities measurement input | 8 months 12 days | 4 years |
Minimum [Member] | Measurement Input, Price Volatility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 50 | |
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 4.08 | 2.90 |
Maximum [Member] | Measurement Input, Expected Term [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liabilities measurement input | 10 years | 4 years 3 months 18 days |
Maximum [Member] | Measurement Input, Price Volatility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 148 | |
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Derivative liability measurement input | 5.37 | 3.27 |
SCHEDULE OF WARRANTS GRANTED VA
SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD (Details) - Warrant [Member] - Valuation Technique, Option Pricing Model [Member] | Jul. 31, 2023 | Jul. 31, 2022 |
Measurement Input, Expected Term [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 0 years | |
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 5 years | |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, term | 10 years | |
Measurement Input, Price Volatility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | ||
Measurement Input, Price Volatility [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 50 | |
Measurement Input, Price Volatility [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 148 | |
Measurement Input, Risk Free Interest Rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | ||
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 2.50 | |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 3.50 | |
Measurement Input, Expected Dividend Rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Warrants measurement input, rate | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Platform Operator, Crypto-Asset [Line Items] | ||
Allowance for doubtful accounts | $ 200,000 | $ 209,690 |
Property plant and equipment, useful life | 5 years | |
Impaired intangible assets | $ 1,000 | 101,281 |
Impairment of intangible assets | 100,281 | |
Impairment of fixed assets | 14,791 | |
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Fair value of contingent consideration | $ 418,455 | $ 418,455 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK AND OTHER RISKS AND UNCERTAINTIES (Details Narrative) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Accounts payable concentration percentage | 50% | 47% |
Accounts Payable [Member] | Lender Concentration Risk [Member] | Customer Four [Member] | ||
Concentration Risk [Line Items] | ||
Accounts payable concentration percentage | 60% | 59% |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets, Finite-Lived | $ 100,281 | |
Finite-Lived Intangible Assets, Net, Ending Balance | 1,000 | $ 101,281 |
Trade Names And Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 385,582 | 385,582 |
Finite-Lived Intangible Assets, Accumulated Amortization | 24,031 | 24,031 |
Impairment of Intangible Assets, Finite-Lived | 360,551 | 260,270 |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 1,000 | $ 101,281 |
Weighted average amortization | 15 years 3 months 3 days | 15 years 3 months 3 days |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 3,930,000 | $ 3,930,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 50,038 | 50,038 |
Impairment of Intangible Assets, Finite-Lived | 3,879,962 | 3,879,962 |
Finite-Lived Intangible Assets, Net, Ending Balance | ||
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 | $ 580,000 | $ 580,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 79,608 | 79,608 |
Impairment of Intangible Assets, Finite-Lived | 500,392 | 500,392 |
Finite-Lived Intangible Assets, Net, Ending Balance | ||
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 | $ 4,895,582 | $ 4,895,582 |
Finite-Lived Intangible Assets, Accumulated Amortization | 153,677 | 153,677 |
Impairment of Intangible Assets, Finite-Lived | 4,740,905 | 4,640,624 |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 1,000 | $ 101,281 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 0 | $ 1,445 |
Impairment loss | (100,281) | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets | 1,000 | |
Foundation Sports Systems LLC [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment loss | $ 100,281 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 1,754,936 | $ 1,535,186 |
Accrued bonus | 1,829,604 | 1,720,606 |
Accrued professional fees | 35,000 | 490,424 |
Other accrued expenses | 1,577,920 | 1,165,623 |
Total | $ 5,197,460 | $ 4,911,839 |
NOTE PAYABLE - RELATED PARTY (D
NOTE PAYABLE - RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | ||||
Jan. 06, 2023 | Jan. 14, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Debt instrumental | $ 2,092,700 | ||||
Related Party [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Outstanding borrowings | $ 1,655,966 | $ 1,953,842 | |||
Interest expense | $ 61,121 | ||||
Accrued interest | $ 917,957 | $ 917,957 | |||
Payment of exchange | $ 103 | ||||
Loan Agreements [Member] | Related Party [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% |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | Jun. 17, 2022 | Jun. 15, 2022 | Jul. 31, 2022 |
Debt Disclosure [Abstract] | |||
Debt conversion | 109,737 | 109,737 | |
Debt conversion shares issued | 13,200,000 | ||
Interest payable | $ 846,301 | ||
Unamortizated discount | $ 122,222 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||||||||||
Jul. 31, 2023 USD ($) | Jun. 08, 2023 USD ($) | Jan. 06, 2023 USD ($) $ / shares shares | Jan. 06, 2023 USD ($) $ / shares shares | Aug. 01, 2022 USD ($) | Jul. 29, 2022 USD ($) | Apr. 01, 2022 USD ($) | Feb. 15, 2022 USD ($) Integer | Apr. 11, 2021 USD ($) shares | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Apr. 30, 2023 USD ($) shares | Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | |
Short-Term Debt [Line Items] | ||||||||||||||
Shares issued | shares | 151,579 | |||||||||||||
Extinguishment of debt | $ 1,501,914 | |||||||||||||
Debt conversion, amount | 1,250,004 | |||||||||||||
Consideration | $ 4,000,000 | |||||||||||||
Consignment units | Integer | 13,000 | |||||||||||||
Repayments of notes - related party | $ 500,000 | $ 4,000,000 | $ 1,559,109 | |||||||||||
Debt maturity date | Jul. 01, 2022 | |||||||||||||
Aggregate principal amount | $ 2,092,700 | $ 2,092,700 | ||||||||||||
Proceeds from notes payable | $ 925,000 | |||||||||||||
Derivative liability | 675,072 | |||||||||||||
Amortization of debt discount | $ 777,192 | $ 2,872,222 | ||||||||||||
Interest rate, increase | 6.43% | |||||||||||||
UFS Agreement [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Sale of stock | $ 1,124,250 | |||||||||||||
Payment for exchange received amount | 750,000 | |||||||||||||
Cash less fees | 60,000 | |||||||||||||
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 | |||||||||||||
Cedar Agreement [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Sale of stock | 1,124,250 | |||||||||||||
Payment for exchange received amount | 750,000 | |||||||||||||
Cash less fees | 60,000 | |||||||||||||
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 | |||||||||||||
Loan and Security Agreement [Member] | Armistice Capital Master Fund Ltd [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Proceeds from notes payable | $ 600,000 | |||||||||||||
Shares issued price per share | $ / shares | $ 8.84 | $ 8.84 | ||||||||||||
Derivative expense | $ 1,715,557 | |||||||||||||
Fair value derivate liability | $ 2,139,666 | $ 2,139,666 | 2,814,738 | |||||||||||
Amortization of debt discount | $ 777,192 | |||||||||||||
Loan and Security Agreement [Member] | Armistice Capital Master Fund Ltd [Member] | Warrant [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Notes payable | $ 0 | $ 0 | ||||||||||||
Warrants granted | 3,715,557 | |||||||||||||
Loan and Security Agreement [Member] | Armistice Capital Master Fund Ltd [Member] | Notes [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Proceeds from notes payable | 1,400,000 | |||||||||||||
Loan and Security Agreement [Member] | Armistice Capital Master Fund Ltd [Member] | Maximum [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Aggregate principal amount | $ 2,000,000 | $ 2,000,000 | ||||||||||||
Common stock exercisable, shares | shares | 452,489 | 452,489 | ||||||||||||
Meged Agreement [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Sale of stock | $ 315,689 | |||||||||||||
Stock redeemed value | 210,600 | |||||||||||||
Legal fees | 10,580 | |||||||||||||
Debt repayment | $ 17,538 | |||||||||||||
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 | 681 | |||||||||||||
Interest rate | 20% | |||||||||||||
Payables | $ 1,500,000 | |||||||||||||
Fair value of derivative liability | $ 1,456,854 | $ 1,456,854 | ||||||||||||
Notes Payable [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Notes payable | $ 500,000 | |||||||||||||
Interest rate | 8% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | Jun. 17, 2022 | |
Related Party Transaction [Line Items] | ||||
Accrued interest - related party | $ 846,301 | |||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Outstanding notes payable | $ 1,655,966 | $ 1,953,842 | ||
Accrued interest - related party | 917,957 | $ 917,957 | ||
Revenue from related parties | 50,900 | $ 91,200 | ||
Outstanding accounts receivable | $ 28,800 | $ 28,800 |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 26, 2023 | Jan. 06, 2023 | Nov. 21, 2022 | Oct. 12, 2022 | Sep. 28, 2022 | Aug. 25, 2022 | Jun. 27, 2022 | Jun. 17, 2022 | Jun. 15, 2022 | Jun. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | Jan. 31, 2023 | |
Class of Warrant or Right [Line Items] | ||||||||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||||||
Common stock, shares issued | 528,297 | 338,579 | ||||||||||||
Common stock, shares outstanding | 528,297 | 338,579 | ||||||||||||
Shares, issued | 189,718 | |||||||||||||
Number of shares issued during the period | $ 188 | $ 4,195,000 | ||||||||||||
Stock issued during period, shares, issued for settlement of accounts payable | 67,500 | |||||||||||||
Stock issued during period, shares, issued for settlement with former owners | 1,350 | |||||||||||||
Exercise of warrants, shares | 27,000 | |||||||||||||
Profit guarantee on note, shares | 93,680 | |||||||||||||
Number of common stock, shares issued | 151,579 | |||||||||||||
Debt conversion of convertible notes, shares | 109,737 | 109,737 | ||||||||||||
Shares issued for services | 150 | |||||||||||||
Proceeds from common stock | 4,195,000 | |||||||||||||
Shares issued for acquisition | 6,993 | 675 | 48,098 | 14,960 | ||||||||||
Aggregate principal amount | $ 2,092,700 | |||||||||||||
Borrowing from notes payable | $ 925,000 | |||||||||||||
Gameface AI [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of common stock, shares issued | 14,960 | |||||||||||||
Midcity Capital Ltd [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of common stock, shares issued | 750 | |||||||||||||
Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Borrowing from notes payable | $ 600,000 | |||||||||||||
Shares issued price per share | $ 8.84 | |||||||||||||
Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | Notes [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Borrowing from notes payable | $ 1,400,000 | |||||||||||||
Armistice Capital Master Fund Ltd [Member] | Loan and Security Agreement [Member] | Maximum [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||
Debt instrument interest rate effective percentage | 4.33% | |||||||||||||
Common stock exercisable, shares | 452,489 | |||||||||||||
Investor [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of common stock, shares issued | 26,219 | |||||||||||||
Investor [Member] | Securities Purchase Agreement [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Common stock, par value | $ 15.60 | |||||||||||||
Number of common stock, shares issued | 25,463 | |||||||||||||
Warrants to purchase common stock | 295,050 | |||||||||||||
Warrant, per share | $ 15.596 | |||||||||||||
Common stock warrants aggregate amount | $ 5,000,000 | |||||||||||||
Warrants, exercise price | $ 0.0004 | $ 8.84 | ||||||||||||
Proceeds from common stock | $ 4,549,882 | |||||||||||||
Investor [Member] | Securities Purchase Agreement [Member] | 5-Year Warrants [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Common stock, par value | $ 15.60 | |||||||||||||
Warrants to purchase common stock | 320,513 | |||||||||||||
Investor [Member] | Securities Purchase Agreement [Member] | 7-Year Warrants [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of common stock, shares issued | 641,026 | |||||||||||||
Investor [Member] | Securities Purchase Agreement [Member] | 7.5 -Year Warrants [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Common stock, par value | $ 17.20 | |||||||||||||
Number of common stock, shares issued | 641,026 | |||||||||||||
Warrants to purchase common stock | 641,026 | |||||||||||||
Gabriel Goldman [Member] | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Shares issued for services | 625 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||
Jan. 26, 2023 | Nov. 21, 2022 | Oct. 12, 2022 | Jun. 30, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 26, 2023 | Apr. 30, 2023 | Mar. 21, 2023 | Jan. 31, 2023 | Apr. 30, 2022 | |
Loss Contingencies [Line Items] | |||||||||||
Rent expense | $ 1,969 | $ 700 | |||||||||
Fair value of common stock | $ 1,334,000 | ||||||||||
Number of stock issued | 6,993 | 675 | 48,098 | 14,960 | |||||||
Balance of contingent consideration | 418,455 | $ 418,455 | |||||||||
Minimum bid share price | $ 1 | ||||||||||
Stockholders equity | $ (18,369,272) | $ 47,773,360 | $ (18,613,761) | 11,700,000 | $ 32,511,932 | ||||||
Minimum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Stockholders equity | $ 2,500,000 | $ 2,500,000 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Revenue | $ 1,363,113 |
Operating expenses | 3,278,269 |
Other (income) loss | (155,442) |
Net loss from discontinued operations | $ (1,759,714) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | Nov. 27, 2022 | Dec. 05, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Cash | $ 500,000 | |
Investments | $ 500,000 | |
Foundation Sports To Charles Ruddy [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Ownership percentage by parrent | 75% | |
Ownership percentage by non-controlling owners | 25% | |
Share Purchase Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Shares issued and outstanding percentage | 100% | |
Discontinued operation description | (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. | |
Cash consideration | $ 2,000,000 | |
Employee Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Cash consideration | $ 600,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 19, 2023 | Sep. 18, 2023 | Aug. 31, 2023 | Aug. 21, 2023 | Aug. 17, 2023 | Aug. 07, 2023 | Aug. 01, 2023 | Jul. 29, 2022 | Jul. 31, 2022 | Apr. 30, 2023 | |
Subsequent Event [Line Items] | ||||||||||
Shares issued | 151,579 | |||||||||
UFS Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Sale of consideration received | $ 1,124,250 | |||||||||
Payment for exchange received amount | 750,000 | |||||||||
Cash less fees | 60,000 | |||||||||
UFS Agreement [Member] | Each Week for Next Three Weeks [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payment for exchange received amount | $ 13,491 | |||||||||
Subsequent Event [Member] | UFS Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Sale of consideration received | $ 797,500 | |||||||||
Payment for exchange received amount | 550,000 | |||||||||
Cash less fees | 50,000 | |||||||||
Subsequent Event [Member] | UFS Agreement [Member] | Each Week for Next Three Weeks [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payment for exchange received amount | $ 30,000 | |||||||||
Subsequent Event [Member] | Amended UFS Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 42,500 | |||||||||
Subsequent Event [Member] | Second Meged Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Sale of consideration received | $ 423,000 | |||||||||
Payment for exchange received amount | 70,153.20 | |||||||||
Subsequent Event [Member] | Second Meged Agreement [Member] | Each Week for Next Three Weeks [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Payment for exchange received amount | $ 15,107.14 | |||||||||
Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 26,219 | |||||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 9,444 | 125,134 | 31,042 | |||||||
Conversion of convertible securities | 42,500 | |||||||||
Common Stock [Member] | Subsequent Event [Member] | Rodney Rapson [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 1,876 |