Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2021 | Nov. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 000-56207 | |
Entity Registrant Name | Lux Amber, Corp. | |
Entity Central Index Key | 0001740695 | |
Entity Tax Identification Number | 98-1414834 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 6136 Frisco Square Blvd. | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, Address Line Three | #237 | |
Entity Address, City or Town | Frisco | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75034 | |
City Area Code | 972 | |
Local Phone Number | 214-9764 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | LXAM | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,111,658 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 0 | $ 0 |
Accounts receivable | 189,768 | 112,982 |
Inventory | 151,529 | 137,211 |
Prepaid expenses | 2,000 | 2,000 |
Other current assets | 4,550 | 5,960 |
Total current assets | 347,847 | 258,153 |
GOODWILL | 2,294,953 | 2,294,953 |
OTHER INTANGIBLES | 15,000 | 15,000 |
OTHER LONG-TERM ASSETS | 26,965 | 0 |
FIXED ASSETS | ||
Furniture, fixtures, and office equipment | 39,926 | 36,256 |
Vehicles and trailers | 284,650 | 284,650 |
Equipment | 649,910 | 649,910 |
Leasehold improvements | 12,190 | 12,190 |
Assets in process | 17,791 | 14,259 |
TOTAL FIXED ASSETS | 1,004,467 | 997,265 |
Accumulated depreciation | (526,350) | (484,568) |
Fixed assets, net | 478,117 | 512,697 |
RIGHT OF USE ASSETS | 295,014 | 272,657 |
TOTAL ASSETS | 3,457,896 | 3,353,460 |
CURRENT LIABILITIES | ||
Accounts payable | 629,441 | 554,588 |
Accrued expenses | 1,203,423 | 1,201,568 |
Related party payables | 169,110 | 208,756 |
Notes payable – current portion | 228,664 | 112,889 |
Right of use liabilities – current portion | 172,498 | 172,498 |
Total current liabilities | 2,403,136 | 2,250,299 |
NON-CURRENT LIABILITIES | ||
Notes payable | 11,963 | 14,735 |
Right of use liabilities | 101,187 | 98,761 |
Paycheck Protection Program loans | 104,752 | 104,752 |
TOTAL LIABILITIES | 2,621,038 | 2,468,547 |
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.0001 par value, 75,000,000 shares authorized: 32,511,658 issued and outstanding shares as of July 31, 2021, and 31,111,658 issued and outstanding shares April 30, 2021 | 3,237 | 3,107 |
Additional paid-in capital | 16,016,786 | 15,750,430 |
Accumulated deficit | (15,183,165) | (14,868,624) |
Total Lux Amber Corp. stockholders' equity | 836,858 | 884,913 |
Non-controlling interest | 0 | 0 |
TOTAL EQUITY | 836,858 | 884,913 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,457,896 | $ 3,353,460 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jul. 31, 2021 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 32,511,658 | 31,111,658 |
Common stock, shares outstanding | 32,511,658 | 31,111,658 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUE | $ 423,828 | $ 290,260 |
COST OF GOODS SOLD | 186,314 | 214,432 |
Gross profit | 237,514 | 75,828 |
OPERATING EXPENSES | ||
Product delivery | 153,215 | 141,981 |
General and administrative | 336,158 | 492,329 |
Selling | 7,102 | 19,491 |
Depreciation and amortization | 41,620 | 37,284 |
Total operating expenses | 538,095 | 691,085 |
OTHER (INCOME) EXPENSE | ||
Interest expense | 8,858 | 3,308 |
Other (income) expense | 5,102 | (57,956) |
Total other (income) expense | 13,960 | (54,648) |
Net loss | $ (314,541) | $ (560,609) |
Basic and diluted loss per share | $ (0.01) | $ (0.02) |
Weighted average shares - basic and diluted | 30,389,570 | 29,592,296 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED STATEMENTS CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Apr. 30, 2020 | $ 2,943 | $ 14,095,093 | $ (12,884,427) | $ 1,027 | $ 1,214,636 |
Beginning balance, shares at Apr. 30, 2020 | 29,441,708 | ||||
Common stock repurchased | $ (5) | (45,308) | (45,313) | ||
Common stock repurchased, shares | (36,250) | ||||
Notes payable with interest converted | $ 89 | 763,237 | 763,326 | ||
Notes payable with interest converted, shares | 887,858 | ||||
Dissolution of PCNM | 1,118 | (1,027) | 91 | ||
Share based compensation | 44,553 | 44,553 | |||
Net loss | (560,609) | (560,609) | |||
Ending balance, value at Jul. 31, 2020 | $ 3,027 | 14,857,575 | (13,443,918) | 1,416,684 | |
Ending balance, shares at Jul. 31, 2020 | 30,293,316 | ||||
Beginning balance, value at Apr. 30, 2021 | $ 3,107 | 15,750,430 | (14,868,624) | 884,913 | |
Beginning balance, shares at Apr. 30, 2021 | 31,111,658 | ||||
Options exercised (cashless) | $ 60 | $ (60) | |||
Options exercised | 40 | 3,960 | 4,000 | ||
Common stock sold | $ (30) | $ (149,970) | $ (150,000) | ||
Share based compensation | 112,486 | 112,486 | |||
Net loss | (314,541) | (314,541) | |||
Ending balance, value at Jul. 31, 2021 | $ 3,237 | $ 16,016,786 | $ (15,183,165) | $ 836,858 | |
Ending balance, shares at Jul. 31, 2021 | 31,111,658 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net loss | $ (314,541) | $ (560,609) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 41,620 | 80,235 |
Share based compensation | 112,486 | 44,553 |
Right of use interest | 2,426 | 5,039 |
Change in current assets and current liabilities | ||
Accounts receivable - trade | (76,786) | (62,219) |
Inventory | (14,318) | (21,801) |
Prepaid expenses and other current assets | (25,555) | (2,020) |
Accounts payable and accrued expenses | 63,030 | 151,103 |
Related party payables | (39,646) | 23,345 |
Net cash used in operating activities | (251,284) | (349,374) |
Cash Flows from Investing Activities | ||
Purchase of licenses | 0 | (5,000) |
Purchase of property and equipment | (7,040) | (79,400) |
Net cash used in investing activities | (7,040) | (84,400) |
Cash Flows from Financing Activities | ||
Proceeds from convertible notes payable | 0 | 525,500 |
Payments on notes payable | 0 | (4,435) |
Payments on right of use liabilities | (8,679) | (35,170) |
Payments for repurchase of common stock | 0 | (45,313) |
Payments on promissory notes | (13,997) | 0 |
Proceeds from promissory notes | 127,000 | 0 |
Proceeds from stock sales | 150,000 | 0 |
Proceeds from the exercise of options | 4,000 | 0 |
Net cash provided by financing activities | 258,324 | 440,582 |
Net change in cash and cash equivalents | 0 | 6,808 |
Cash at beginning of period | 0 | 49,185 |
Cash at end of period | 0 | 55,993 |
Cash paid during period for: | ||
Interest | 7,859 | 10,568 |
Taxes | 0 | 0 |
Noncash Financing Activities | ||
Convertible notes and accrued interest converted to common stock | 0 | 763,326 |
Common stock sold for note receivable | $ 50,000 | $ 0 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 3 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Lux Amber, Corp. (“LAC”), formed on January 19, 2018, is an international specialty chemical company. Its corporate offices are currently located at 6136 Frisco Square Blvd., Suite 400, #237, Frisco, TX 75034. LAC’s corporate telephone number is 972-214-9764. LAC has a stock symbol of LXAM. LAC has three (3) wholly owned subsidiaries (collectively with LAC, the “Company”): Worldwide Specialty Chemicals, Inc. (“WSCI”), Industrial Chem Solutions, Inc. (“ICS”), and Safeway Pest Elimination, LLC, (“SPE”), which was formed July 16, 2018. LAC and its subsidiaries serve as both producers and distributors of environmentally safe, specialty chemicals. The Company formerly held a 49% interest in PCNM LLC, a Service-Disabled Veteran owned small business that sold the Company’s products to government agencies. PCNM was legally dissolved on July 31, 2020. The Company’s products utilize all-natural and renewable resources, contain no dangerous chemicals or additives, and offer “green” solutions to its customers. ICS’ product line includes asphalt release agents, industrial cleaners, environmental remediation gels, odor control agents, and consumer friendly cleaners for a wide range of uses, including construction, environmental remediation, hazardous materials clean-up, nuclear decommissioning, industrial cleaning, and odor control. SPE’s products are designed for the elimination and control of pests. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting polices consistently applied in the preparation of the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) is as follows. Basis of Consolidation The consolidated financial statements include the accounts of LAC, WSCI, ICS, SPE, and PCNM. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments FASB ASC 825-10 requires disclosure of fair value information about certain financial instruments, including, but not limited to, cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, related party payables, notes payable, and Paycheck Protection Program loans. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management on July 31, 2021 and April 30, 2021. The carrying value of the financial instruments included in the Company’s financial statements approximated their fair values. The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The carrying value of the notes payable approximates fair value as they bear market rates of interest. Basic and Diluted Net Loss Per Share Basic net loss per share is computed using the weighted average number of common shares outstanding. Diluted loss per share has not been presented because there are no dilutive items. Diluted earnings loss per share is based on the assumption that all dilutive stock options, warrants, and convertible debt are converted or exercised by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Options, warrants and/or convertible debt will have a dilutive effect, during periods of net profit, only when the average market price of the common stock during the period exceeds the exercise or conversion price of the items. For the three months ended July 31, 2021 and 2020, approximately 82,668 82,668 6,746,418 6,469,750 Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at several financial institutions located throughout the United States, which at times may exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivables are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable, and current economic conditions. The determination of the collectability of amounts due requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer account, and the financial condition of the Company’s customers. Based on a review of these factors, the Company establishes or adjusts the allowance for specific customers and the accounts receivable portfolio as a whole. On July 31, 2021 and April 30, 2021, the allowance for doubtful accounts was $ 0 Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing service. Revenue from product sold is recognized when obligations with the customer are satisfied, which generally occurs with the transfer or delivery of the product, signifying the point in time when the customer obtains control of the promised goods. Our performance obligation is delivering the product to the customer; and therefore, the transaction price, which is stated on the invoice, is allocated 100% to the sole performance obligation of product delivery. For the quarters ended July 31, 2021 and 2020, all revenue was from products sold. Our sales policies do not provide for general rights of return, and payment is due net of 15 days. We do not record estimated reductions to revenue for customer programs and incentive offerings including pricing arrangements, promotions, and other volume-based incentives at the time of the sale. We also do not record estimated reserves for product returns and credits at the time of sale and anticipated uncollectible accounts. Sales Taxes Sales (and similar) taxes that are imposed on the Company's sales and collected from customers are excluded from revenues. Shipping and Handling Costs Costs for shipping and handling activities, including those activities that occur after transfer of control to the customer, are recorded as cost of sales and are expensed as incurred. The Company accrues costs for shipping and handling activities that occur after control of the promised good has transferred to the customer. Inventory Inventory is stated at the lower of cost or net realizable value, with cost determined on a first-in first-out basis. The carrying value of inventory is reduced for estimated obsolescence. The Company evaluates the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. The following table sets forth the components of the Company’s inventory balances as of: Schedule of inventory July 31, April 30, Finished goods $ 140,711 $ 93,203 Raw materials 28,108 61,298 Obsolescence (17,290 ) (17,290 ) Inventory, net $ 151,529 $ 137,211 Fixed Assets Fixed assets consist of furniture, fixtures and office equipment, vehicles and trailers, equipment and leasehold improvements that are stated at cost, less accumulated depreciation. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to earnings over their estimated service lives (3 – 10 years) under the straight-line method. Maintenance and repairs are charged to earnings as incurred; major repairs and replacements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Goodwill Goodwill represents the difference between the enterprise value/cash paid less the fair value of all recognized net asset fair values including identifiable intangible asset values in a business combination. The Company reviews goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company considered the current and expected future economic and market conditions surrounding COVID-19 and its impact on the reporting unit. As a result of the certain business developments and changes in the Company's long-term projections, during the fourth quarter of fiscal 2021, the Company concluded a triggering event had occurred that required an impairment assessment to be performed. The qualitative assessment thresholds were not met. The Company calculated the quantitative impairment test of using the implied fair market value using market data and concluded there was no goodwill impairment loss. Based on annual testing, the Company determined that there was no The Company first evaluates qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the reporting unit is less than its carrying amount, including goodwill. If after qualitatively assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then further testing is unnecessary. If after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company then estimates the fair value of the reporting unit and compares the fair value of the reporting unit with its carrying amount, including goodwill, as discussed below. The quantitative goodwill impairment test involves a two-step process. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the Company must perform the second step of the impairment test to measure the amount of impairment loss. In the second step, the reporting unit's fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of the reporting unit's goodwill is less than the carrying value, the difference is recorded as an impairment loss. Share-Based Compensation The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation, (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. The fair value at the measurement date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the vesting period based on the estimated number of stock options that are expected to vest. Income Taxes The Company accounts for Federal and state income taxes using the asset and liability approach for financial accounting and reporting for income taxes based on tax effects of differences between the financial statement and tax basis of assets and liabilities. The Company accounts for all uncertain tax positions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 740 – Income Taxes (“ASC 740”). ASC 740 provides guidance on de-recognition, classification, interest and penalties and disclosure related to uncertain income tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no accrued interest or penalties as of July 31, 2021 or April 30, 2020. From time to time, the Company may be audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company’s federal returns since 2016 are still subject to examination by taxing authorities. License Fee ICS pays 10% of the net selling price of $9.50 a gallon to CBI Polymers, Inc., as a mutually acceptable license fee. E. Thomas Layton, Chairman and CEO of LAC, is also the Chairman and CEO and controlling shareholder of CBI. During the quarters ended July 31, 2021 and 2020, the Company incurred $ 2,560 3,307 2,560 1,670 Advertising Costs The Company recognizes expenses for advertising costs as they are incurred. Advertising costs were $ 2,411 22,099 Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred substantial operating losses, resulting in an accumulated deficit of $ 15,183,165 1,104,760 The Company is actively seeking growth of its service offerings, both organically and via new client relationships. In the ordinary course of the Company’s business, management is trying to raise additional capital through sales of common stock as well as seeking debt financing from third parties. There are current indications that additional financing will be available on favorable terms. If additional financing is not available, the Company will need to reduce salaries, defer, or cancel development programs, planned initiatives and overhead expenditures. The failure to adequately fund its capital requirements could have a material adverse effect on the Company’s business, financial condition, and results of operations, including potential discontinuance of operations. Moreover, the sale of additional equity securities to raise financing will result in additional dilution to the Company’s stockholders. Additionally, incurring additional indebtedness could involve an increased debt service cash obligation, as well as the imposition of covenants that restrict the Company’s operations or the Company’s ability to perform on its current debt service requirements. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. While the Company recognizes the significant impact of additional financing, the Company is a smaller reporting company serving large and growing markets and it will continue to sell securities and enter into financing programs which are deemed to be prudent. Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses, which amends how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, which applies to trade accounts receivable and the calculation of the allowance for uncollectible accounts receivable. The new standard will become effective for the Company for annual and interim periods beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this accounting guidance will have on the consolidated financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Jul. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 2. ACCOUNTS RECEIVABLE Accounts receivable relate to trade receivables from product sales made by the Company. Accounts receivable consist of the following at July 31, 2021 and April 30, 2021: Schedule of accounts receivable July 31, April 30, Trade receivables $ 189,768 $ 112,982 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | 3. NOTES PAYABLE Convertible Promissory Notes Payable During the year ended April 30, 2021, the Company issued a fourth round of convertible debentures in the principal amount of $ 525,500 September 15, 2020 8 611,047 0.86 16,459 19,138 During the year ended April 30, 2021, the Company issued a fifth round of convertible debentures in the principal amount of $ 204,800 January 15, 2021 8 163,890 1.25 2,074 1,660 Vehicles and Equipment Notes Payable The Company has one note payable relating to the purchase of a Company vehicle as of July 31, 2021. The balance outstanding under the note payable was $ 24,852 5.99 40,474 The Company’s future minimum principal payments as of July 31, 2021 are as follows: Schedule of future minimum debt payments 2022 $ 8,731 2023 12,889 2024 3,232 Total future minimum payment $ 24,852 Other Notes Payable On May 8, 2020, the Company received $ 100,344 2 1 100,344 On February 01, 2021, the Company received $ 50,000 8 666 5,225 On February 11, 2021, WSC received $ 40,625 5 1 On February 14, 2021, ICS received $ 48,510 5 1 On March 16, 2021, SPE received $ 15,657 5 1 On April 19, 2021, the Company received $ 50,000 8 On May 10, 2021, the Company received $ 25,000 6 On May 19, 2021, the Company received $ 50,000 8 On June 7, 2021, the Company received $ 26,000 6 On June 7, 2021, the Company received $ 20,000 6 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 4. ACCRUED EXPENSES Accrued expenses, consisting of accrued salaries for officers and executive management, include the following balance at July 31, 2021 and April 30, 2021: Schedule of accrued expenses July 31, April 30, Accrued Compensation $ 1,006,111 $ 934,104 Other Accrued Expenses 197,312 267,464 Accrued expenses $ 1,203,423 $ 1,201,568 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 3 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 5. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Leases As of July 31, 2021, the weighted average remaining lease term and weighted average discount rate for financing leases was 2.1 4.25 8,679 36,150 0 0 The Company’s undiscounted annual future minimum lease payments as of July 31, 2021 consist of: Schedule of future minimum lease payments 2022 $ 129,955 2023 92,315 2024 16,811 2025 16,044 2026 13,993 Total lease payments 269,118 Interest (12,385 ) Present value of lease liabilities $ 256,733 Concentrations As of July 31, 2021, the Company had four customers which made up 78 41 For the three months ended July 31, 2021, the Company had three customers which made up 60 41 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 6. STOCKHOLDERS’ EQUITY Common Stock As of July 31, 2021 and 2020, the authorized share capital of the Company consisted of 75,000,000 shares of common stock with $0.0001 par value. No other classes of stock are authorized. During the period ended July 31, 2021, the Company sold 400,000 .50 150,000 50,000 Warrants On March 31, 2017, the Company issued 600,000 .50 March 31, 2024 302 There were 260,000 130,000 As of April 30, 2021, and 2020, December 31, 2019, there were 82,668 Schedule of warrants Period Beg. Balance Issued Exercised Expired End. Balance April 30, 2020 82,668 – – – 82,668 April 30, 2021 82,668 – – – 82,668 July 31, 2021 82,668 – – – 82,668 Stock option plan Effective February 1, 2017, the Company established the 2016 Stock Option Plan (the “Plan”). The Board of Directors of the Company has the authority and discretion to grant stock options. The maximum number of shares of stock that may be issued pursuant to the exercise of options under the Plan is 10,000,000 During the three months ended July 31, 2021 and 2020, there were 500,000 0 Stock option activity during the period ended July 31, 2021 is summarized as follows: Schedule of option activity Shares Price Per Weighted Weighted Outstanding - beginning of quarter 7,289,750 $ 0.00 - 1.50 $ 1.11 95 Granted 500,000 1.99 1.99 120 Exercised (1,000,000 ) 0-0.01 0-0.01 – Canceled or expired – – – – Outstanding - end of quarter 6,789,750 $ 0.00 - 1.99 $ 1.32 96 Exercisable - end of quarter 6,746,418 $ 1.15 87 Stock option activity during the period ended July 31, 2020, is summarized as follows: Shares Price Per Weighted Weighted Outstanding - beginning of quarter 7,309,750 $ 0.00 - 1.50 $ 1.18 113 Granted – – – – Exercised – – – – Canceled or expired – – – – Outstanding - end of quarter 7,309,750 $0.00 - 1.50 $ 1.15 109 Exercisable - end of quarter 6,469,750 $ 0.91 92 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS During the three months ended July 31, 2021 and 2020, the Company incurred consulting fees of $ 39,000 52,675 18,000 28,550 The Company is in effect a sales representative of CBI Polymers, Inc. pursuant to the Exclusive Patent License Agreement between the Company and CBI Polymers. CBI Polymers and the Company are companies under the common control of E. Thomas Layton, the Company’s chairman and chief executive officer. There are no other transactions or contracts between CBI Polymers and the Company other than those discussed in this report. There was $ 2,560 1,670 Two separate related parties are allowing the Company to rent vehicles for a monthly fee of $1,650 and $1,243. For the three months ended July 31, 2021, the Company paid a total of $ 4,950 3,729 4,950 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES For the three-months ended July 31, 2021 and 2020, the effective tax rate of 0% varies from the U.S. federal statutory rate primarily due to net losses and the valuation allowance associated with the net operating loss carryforwards. The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. The Company continues to record a full valuation allowance against its net deferred tax assets. The Company assessed whether a valuation allowance should be established against its deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company’s review of this evidence at July 31, 2021, management determined that a full valuation allowance against all of the Company’s deferred tax assets at July 31, 2021 was appropriate. The following table summarizes the difference between the actual tax provision and the amounts obtained by applying the statutory tax rates to the income or loss before income taxes for the quarters ending July 31, 2021 and 2020: Schedule of income tax reconciliation July 31, July 31, Tax benefit calculated at statutory rate 21.00 21.00 Expense not deductible ( 0.03 ) ( 0.02 ) Changes to valuation allowance ( 20.97 ) ( 20.98 ) Provision for income taxes 0 0 |
CORONA VIRUS
CORONA VIRUS | 3 Months Ended |
Jul. 31, 2021 | |
Corona Virus | |
CORONA VIRUS | 9. CORONA VIRUS During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus ("COVID-19"). The pandemic has significantly impacted the economic conditions in the U.S., accelerating during the first half of March, as federal, state and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. In March 2020, we noticed a strong decline in orders from our customers, as businesses around the country began to cease their operations due to COVID-19. In an attempt to mitigate the ongoing impact of the pandemic on our cash flows certain actions were taken. The actions include targeted reductions in discretionary operating expenses such as advertising and payroll expenses, reducing capital expenditures, and reducing travel for business development purposes. As of July 31, 2020, we have noticed an increase in monthly orders as businesses have reopened, coupled with the spring/summer construction season. We have begun to increase our associated expenses including business travel and development. The Paycheck Protection Program (“PPP”) provides loans from the U.S. Small Business Administration (“SBA”) to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. On May 8, 2020, the Company received a PPP loan in the amount of $ 100,344 On February 11, 2021, WSC received $ 40,625 5 1 On February 14, 2021, ICS received $ 48,510 5 1 On March 16, 2021, SPE received $ 15,657 5 1 Continued impacts of the pandemic have had a material adverse impact on our revenues, earnings, liquidity and cash flows, and may require additional actions in response, including, but not limited to, employee layoffs, reduced production, or further expense reductions, all in an effort to mitigate such impacts. The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including the duration of the spread of the outbreak within the U.S., and the related /impact on consumer confidence and spending, all of which are highly uncertain and cannot be predicted. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity, or capital resources cannot be reasonably estimated at this time. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS On August 1 st On September 6, 2021, Walton Ashwander was appointed to the Board of Directors of the Company. On September 20, 2021, the Company issued 60,000 shares of at $0.33 for $20,000. On September 20, 2021, the Company issued 300,000 shares of at $0.33 for $100,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of LAC, WSCI, ICS, SPE, and PCNM. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC 825-10 requires disclosure of fair value information about certain financial instruments, including, but not limited to, cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, related party payables, notes payable, and Paycheck Protection Program loans. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management on July 31, 2021 and April 30, 2021. The carrying value of the financial instruments included in the Company’s financial statements approximated their fair values. The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The carrying value of the notes payable approximates fair value as they bear market rates of interest. |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share Basic net loss per share is computed using the weighted average number of common shares outstanding. Diluted loss per share has not been presented because there are no dilutive items. Diluted earnings loss per share is based on the assumption that all dilutive stock options, warrants, and convertible debt are converted or exercised by applying the treasury stock method. Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Options, warrants and/or convertible debt will have a dilutive effect, during periods of net profit, only when the average market price of the common stock during the period exceeds the exercise or conversion price of the items. For the three months ended July 31, 2021 and 2020, approximately 82,668 82,668 6,746,418 6,469,750 |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an initial maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at several financial institutions located throughout the United States, which at times may exceed insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivables are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable, and current economic conditions. The determination of the collectability of amounts due requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer account, and the financial condition of the Company’s customers. Based on a review of these factors, the Company establishes or adjusts the allowance for specific customers and the accounts receivable portfolio as a whole. On July 31, 2021 and April 30, 2021, the allowance for doubtful accounts was $ 0 |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing service. Revenue from product sold is recognized when obligations with the customer are satisfied, which generally occurs with the transfer or delivery of the product, signifying the point in time when the customer obtains control of the promised goods. Our performance obligation is delivering the product to the customer; and therefore, the transaction price, which is stated on the invoice, is allocated 100% to the sole performance obligation of product delivery. For the quarters ended July 31, 2021 and 2020, all revenue was from products sold. Our sales policies do not provide for general rights of return, and payment is due net of 15 days. We do not record estimated reductions to revenue for customer programs and incentive offerings including pricing arrangements, promotions, and other volume-based incentives at the time of the sale. We also do not record estimated reserves for product returns and credits at the time of sale and anticipated uncollectible accounts. |
Sales Taxes | Sales Taxes Sales (and similar) taxes that are imposed on the Company's sales and collected from customers are excluded from revenues. Shipping and Handling Costs Costs for shipping and handling activities, including those activities that occur after transfer of control to the customer, are recorded as cost of sales and are expensed as incurred. The Company accrues costs for shipping and handling activities that occur after control of the promised good has transferred to the customer. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value, with cost determined on a first-in first-out basis. The carrying value of inventory is reduced for estimated obsolescence. The Company evaluates the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand. The following table sets forth the components of the Company’s inventory balances as of: Schedule of inventory July 31, April 30, Finished goods $ 140,711 $ 93,203 Raw materials 28,108 61,298 Obsolescence (17,290 ) (17,290 ) Inventory, net $ 151,529 $ 137,211 |
Fixed Assets | Fixed Assets Fixed assets consist of furniture, fixtures and office equipment, vehicles and trailers, equipment and leasehold improvements that are stated at cost, less accumulated depreciation. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to earnings over their estimated service lives (3 – 10 years) under the straight-line method. Maintenance and repairs are charged to earnings as incurred; major repairs and replacements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in operations. |
Goodwill | Goodwill Goodwill represents the difference between the enterprise value/cash paid less the fair value of all recognized net asset fair values including identifiable intangible asset values in a business combination. The Company reviews goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company considered the current and expected future economic and market conditions surrounding COVID-19 and its impact on the reporting unit. As a result of the certain business developments and changes in the Company's long-term projections, during the fourth quarter of fiscal 2021, the Company concluded a triggering event had occurred that required an impairment assessment to be performed. The qualitative assessment thresholds were not met. The Company calculated the quantitative impairment test of using the implied fair market value using market data and concluded there was no goodwill impairment loss. Based on annual testing, the Company determined that there was no The Company first evaluates qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the reporting unit is less than its carrying amount, including goodwill. If after qualitatively assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then further testing is unnecessary. If after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company then estimates the fair value of the reporting unit and compares the fair value of the reporting unit with its carrying amount, including goodwill, as discussed below. The quantitative goodwill impairment test involves a two-step process. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the Company must perform the second step of the impairment test to measure the amount of impairment loss. In the second step, the reporting unit's fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of the reporting unit's goodwill is less than the carrying value, the difference is recorded as an impairment loss. |
Share-Based Compensation | Share-Based Compensation The Company recognizes compensation expense for all share-based payments in accordance with FASB Codification Topic 718, Compensation — Stock Compensation, (ASC 718). Under the fair value recognition provisions of ASC 718, the Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. The fair value at the measurement date of stock options is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the vesting period based on the estimated number of stock options that are expected to vest. |
Income Taxes | Income Taxes The Company accounts for Federal and state income taxes using the asset and liability approach for financial accounting and reporting for income taxes based on tax effects of differences between the financial statement and tax basis of assets and liabilities. The Company accounts for all uncertain tax positions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 740 – Income Taxes (“ASC 740”). ASC 740 provides guidance on de-recognition, classification, interest and penalties and disclosure related to uncertain income tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. There were no accrued interest or penalties as of July 31, 2021 or April 30, 2020. From time to time, the Company may be audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company’s federal returns since 2016 are still subject to examination by taxing authorities. |
License Fee | License Fee ICS pays 10% of the net selling price of $9.50 a gallon to CBI Polymers, Inc., as a mutually acceptable license fee. E. Thomas Layton, Chairman and CEO of LAC, is also the Chairman and CEO and controlling shareholder of CBI. During the quarters ended July 31, 2021 and 2020, the Company incurred $ 2,560 3,307 2,560 1,670 |
Advertising Costs | Advertising Costs The Company recognizes expenses for advertising costs as they are incurred. Advertising costs were $ 2,411 22,099 |
Going Concern | Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred substantial operating losses, resulting in an accumulated deficit of $ 15,183,165 1,104,760 The Company is actively seeking growth of its service offerings, both organically and via new client relationships. In the ordinary course of the Company’s business, management is trying to raise additional capital through sales of common stock as well as seeking debt financing from third parties. There are current indications that additional financing will be available on favorable terms. If additional financing is not available, the Company will need to reduce salaries, defer, or cancel development programs, planned initiatives and overhead expenditures. The failure to adequately fund its capital requirements could have a material adverse effect on the Company’s business, financial condition, and results of operations, including potential discontinuance of operations. Moreover, the sale of additional equity securities to raise financing will result in additional dilution to the Company’s stockholders. Additionally, incurring additional indebtedness could involve an increased debt service cash obligation, as well as the imposition of covenants that restrict the Company’s operations or the Company’s ability to perform on its current debt service requirements. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. While the Company recognizes the significant impact of additional financing, the Company is a smaller reporting company serving large and growing markets and it will continue to sell securities and enter into financing programs which are deemed to be prudent. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses, which amends how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, which applies to trade accounts receivable and the calculation of the allowance for uncollectible accounts receivable. The new standard will become effective for the Company for annual and interim periods beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this accounting guidance will have on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of inventory | Schedule of inventory July 31, April 30, Finished goods $ 140,711 $ 93,203 Raw materials 28,108 61,298 Obsolescence (17,290 ) (17,290 ) Inventory, net $ 151,529 $ 137,211 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Schedule of accounts receivable July 31, April 30, Trade receivables $ 189,768 $ 112,982 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of future minimum debt payments | Schedule of future minimum debt payments 2022 $ 8,731 2023 12,889 2024 3,232 Total future minimum payment $ 24,852 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Schedule of accrued expenses July 31, April 30, Accrued Compensation $ 1,006,111 $ 934,104 Other Accrued Expenses 197,312 267,464 Accrued expenses $ 1,203,423 $ 1,201,568 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Schedule of future minimum lease payments 2022 $ 129,955 2023 92,315 2024 16,811 2025 16,044 2026 13,993 Total lease payments 269,118 Interest (12,385 ) Present value of lease liabilities $ 256,733 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Schedule of warrants | Schedule of warrants Period Beg. Balance Issued Exercised Expired End. Balance April 30, 2020 82,668 – – – 82,668 April 30, 2021 82,668 – – – 82,668 July 31, 2021 82,668 – – – 82,668 |
Schedule of option activity | Schedule of option activity Shares Price Per Weighted Weighted Outstanding - beginning of quarter 7,289,750 $ 0.00 - 1.50 $ 1.11 95 Granted 500,000 1.99 1.99 120 Exercised (1,000,000 ) 0-0.01 0-0.01 – Canceled or expired – – – – Outstanding - end of quarter 6,789,750 $ 0.00 - 1.99 $ 1.32 96 Exercisable - end of quarter 6,746,418 $ 1.15 87 Stock option activity during the period ended July 31, 2020, is summarized as follows: Shares Price Per Weighted Weighted Outstanding - beginning of quarter 7,309,750 $ 0.00 - 1.50 $ 1.18 113 Granted – – – – Exercised – – – – Canceled or expired – – – – Outstanding - end of quarter 7,309,750 $0.00 - 1.50 $ 1.15 109 Exercisable - end of quarter 6,469,750 $ 0.91 92 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax reconciliation | Schedule of income tax reconciliation July 31, July 31, Tax benefit calculated at statutory rate 21.00 21.00 Expense not deductible ( 0.03 ) ( 0.02 ) Changes to valuation allowance ( 20.97 ) ( 20.98 ) Provision for income taxes 0 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Inventory) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Accounting Policies [Abstract] | ||
Finished goods | $ 140,711 | $ 93,203 |
Raw materials | 28,108 | 61,298 |
Obsolescence | (17,290) | (17,290) |
Inventory, net | $ 151,529 | $ 137,211 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Goodwill impairment | 0 | ||
License fees | 2,560 | $ 3,307 | |
Accounts payable | 2,560 | 1,670 | |
Advertising costs | 2,411 | $ 22,099 | |
Accumulated deficit | 15,183,165 | $ 14,868,624 | |
Working capital deficit | $ 1,104,760 | ||
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares | 82,668 | 82,668 | |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares | 6,746,418 | 6,469,750 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 189,768 | $ 112,982 |
NOTES PAYABLE (Details - Minimu
NOTES PAYABLE (Details - Minimum debt payments) | Jul. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 8,731 |
2023 | 12,889 |
2024 | 3,232 |
Total future minimum payment | $ 24,852 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Jun. 07, 2021 | May 10, 2021 | Feb. 11, 2021 | Mar. 08, 2020 | May 19, 2021 | Apr. 19, 2021 | Mar. 16, 2021 | Feb. 14, 2021 | Feb. 02, 2021 | Nov. 30, 2020 | Jul. 31, 2021 | Apr. 30, 2021 | May 02, 2021 | May 08, 2020 |
Debt Instrument [Line Items] | ||||||||||||||
Share price | $ 0.50 | |||||||||||||
Convertible Debentures 1 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 525,500 | |||||||||||||
Debt maturity date | Sep. 15, 2020 | |||||||||||||
Debt interest rate | 8.00% | |||||||||||||
Debt converted, shares issued | 611,047 | |||||||||||||
Share price | $ 0.86 | |||||||||||||
Accrued interest unpaid | $ 16,459 | |||||||||||||
Shares issued for accrued interest | 19,138 | |||||||||||||
Convertible Debentures 2 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 204,800 | |||||||||||||
Debt maturity date | Jan. 15, 2021 | |||||||||||||
Debt interest rate | 8.00% | |||||||||||||
Debt converted, shares issued | 163,890 | |||||||||||||
Share price | $ 1.25 | |||||||||||||
Shares issued for accrued interest | 1,660 | |||||||||||||
Accrued interest | $ 2,074 | |||||||||||||
Vehicle Note Payable [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 5.99% | |||||||||||||
Note payable outstanding | $ 24,852 | $ 40,474 | ||||||||||||
Paycheck Protection Program [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 6.00% | 6.00% | 1.00% | 8.00% | 8.00% | 1.00% | 1.00% | |||||||
Loan received | $ 26,000 | $ 25,000 | $ 40,625 | $ 50,000 | $ 50,000 | $ 15,657 | $ 48,510 | |||||||
Loan term | 5 years | 5 years | 5 years | |||||||||||
Gain on extinguishment of debt | $ 100,344 | |||||||||||||
Paycheck Protection Program [Member] | S B A [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 1.00% | |||||||||||||
Loan received | $ 100,344 | |||||||||||||
Loan term | 2 years | |||||||||||||
Promissory Note [Member] | Investor [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 8.00% | |||||||||||||
Loan received | $ 50,000 | |||||||||||||
Interest paid | $ 666 | |||||||||||||
Loan payment | $ 5,225 | |||||||||||||
Paycheck Protection Program 1 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 6.00% | |||||||||||||
Loan received | $ 20,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accrued Compensation | $ 1,006,111 | $ 934,104 |
Other Accrued Expenses | 197,312 | 267,464 |
Accrued expenses | $ 1,203,423 | $ 1,201,568 |
COMMITMENTSCONTINGENCIES AND CO
COMMITMENTSCONTINGENCIES AND CONCENTRATIONS (Details - Minimum Lease payments) | Jul. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 129,955 |
2023 | 92,315 |
2024 | 16,811 |
2025 | 16,044 |
2026 | 13,993 |
Total lease payments | 269,118 |
Interest | (12,385) |
Present value of lease liabilities | $ 256,733 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Product Information [Line Items] | ||
Weighted average remaining lease term | 2 years 1 month 6 days | |
Weighted average discount rate | 4.25% | |
Finance lease cost | $ 8,679 | $ 36,150 |
Short term lease cost | $ 0 | $ 0 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customer [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 78.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customer [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 41.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customer [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 60.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customer [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 41.00% |
STOCKHOLDERS' EQUITY (Details -
STOCKHOLDERS' EQUITY (Details - Warrants) - shares | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||||
Warrants outstanding | 82,668 | 82,668 | 82,668 | |
Warrants issued | 0 | 0 | 0 | |
Warrants exercised | 0 | 0 | 0 | 260,000 |
Warrants expired | 0 | 0 | 0 | |
Warrants outstanding | 82,668 | 82,668 | 82,668 | 82,668 |
STOCKHOLDERS' EQUITY (Details_2
STOCKHOLDERS' EQUITY (Details - Option activity) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options Exercised | (4,000) | |||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options Outstanding, Beginning | 7,289,750 | 7,309,750 | 7,309,750 | |
Weighted Average Exercise Price Outstanding, Beginning | $ 1.11 | $ 1.18 | $ 1.18 | |
Weighted Average Remaining Contractual Term Outstanding | 96 months | 109 months | 95 months | 113 months |
Number of Options Granted | 500,000 | |||
Weighted Average Exercise Price Granted | $ 1.99 | |||
Weighted Average Remaining Contractual Term Granted | 120 months | |||
Number of Options Exercised | (1,000,000) | |||
Weighted Average Exercise Price Exercised | ||||
Weighted Average Exercise Price Exercised | 0-0.01 | |||
Number of Options Canceled or expired | 0 | |||
Weighted Average Exercise Price Canceled or expired | ||||
Number of Options Outstanding, Ending | 6,789,750 | 7,309,750 | 7,289,750 | 7,309,750 |
Weighted Average Exercise Price Outstanding, Ending | $ 1.32 | $ 1.15 | $ 1.11 | $ 1.18 |
Number of Options Exercisable, Ending | 6,746,418 | 6,469,750 | ||
Weighted Average Exercise Price Exercisable, Ending | $ 1.15 | $ 0.91 | ||
Weighted Average Remaining Contractual Term Exercisable | 87 months | 92 months |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2021 | Jul. 31, 2020 | Mar. 31, 2017 | Apr. 30, 2021 | Apr. 30, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Feb. 02, 2017 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Number of shares sold | 400,000 | |||||||
Share price | $ 0.50 | |||||||
Proceed from sales of stock | $ 150,000 | |||||||
Proceed from note receivable | $ 50,000 | |||||||
Warrants issued | 0 | 0 | 0 | |||||
Warrants exercised | 0 | 0 | 0 | 260,000 | ||||
Proceeds from warrant exercises | $ 130,000 | |||||||
Class of Warrant or Right, Outstanding | 82,668 | 82,668 | 82,668 | 82,668 | 82,668 | |||
Option granted | 500,000 | 0 | ||||||
Stock Plan 2016 [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 | |||||||
Consultant [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Share price | $ 0.50 | |||||||
Warrants issued | 600,000 | |||||||
Warrant expiration date | Mar. 31, 2024 | |||||||
Fair value of warrants at date of grant | $ 302 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 169,110 | $ 208,756 | |
Accounts payable | 2,560 | 1,670 | |
Lease expense | $ 4,950 | ||
Vehicle Rental 1 [Member] | |||
Related Party Transaction [Line Items] | |||
Lease expense | 4,950 | ||
Vehicle Rental 2 [Member] | |||
Related Party Transaction [Line Items] | |||
Lease expense | 3,729 | ||
Four Shareholders [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting fees | 39,000 | $ 52,675 | |
Due to related parties | $ 18,000 | $ 28,550 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income tax reconciliation) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit calculated at statutory rate | 21.00% | 21.00% |
Expense not deductible | 0.03% | 0.02% |
Changes to valuation allowance | 20.97% | 20.98% |
Provision for income taxes | 0.00% | 0.00% |
CORONA VIRUS (Details Narrative
CORONA VIRUS (Details Narrative) - Paycheck Protection Program [Member] - USD ($) | Jun. 07, 2021 | May 10, 2021 | Feb. 11, 2021 | Mar. 08, 2020 | May 19, 2021 | Apr. 19, 2021 | Mar. 16, 2021 | Feb. 14, 2021 | May 08, 2020 |
Debt Instrument [Line Items] | |||||||||
Loan received | $ 26,000 | $ 25,000 | $ 40,625 | $ 50,000 | $ 50,000 | $ 15,657 | $ 48,510 | ||
Loan term | 5 years | 5 years | 5 years | ||||||
Debt interest rate | 6.00% | 6.00% | 1.00% | 8.00% | 8.00% | 1.00% | 1.00% | ||
S B A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan received | $ 100,344 | ||||||||
Loan term | 2 years | ||||||||
Debt interest rate | 1.00% |