| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Revenue recognition Until November 1, 2023, Company sold devices with
collection mechanism for biological samples based upon exhaled breath. Revenue comprises devices delivered to the Company’s customers. In accordance with ASC 606 - Revenue from Contracts
with Customers, the Company recognized revenue upon the transfer of goods to a customer at an amount that reflects the expected consideration
to be received in exchange for those goods. The Company accounts for a customer contract when the rights of the parties, including the
payment terms, are identified, the contract has commercial substance, collection of consideration is probable, and the contract has been
signed and agreed to by both parties. Revenue is recognized when performance obligations are satisfied by transferring control or economic
benefit of the goods to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for
its goods. The principles in ASC 606 are applied using the following five steps:
1. Identify
the contract with a customer;
2. Identify
the performance obligation(s) in the contract;
3. Determine
the transaction price;
4. Allocate
the transaction price to the performance obligation(s) in the contract; and
5. Recognize
revenue when (or as) the performance obligation(s) are satisfied. (b) Cash and restricted cash held in trust Cash includes cash on hand and balances with banks. Restricted cash
includes proceeds from private placements and stockholder loans completed by the Company during year ended April 30, 2023 and quarter
ended January 31, 2024. (c) Non-controlling interests The non-controlling interests represent the portion
of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented
as a separate component of equity on the consolidated balance sheets, statements of loss, statements of comprehensive loss and statements
of stockholders’ deficiency attributed to controlling and non-controlling interests. (d) Critical management judgment and use of estimates The preparation of the consolidated financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and the 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. Areas involving significant estimates and assumptions include: deferred income tax
assets and related valuation allowance, accruals, stock options, principles of consolidation and reverse recapitalization and assumptions
used in the going concern assessment. Actual results could differ from those estimates. These estimates are reviewed periodically, and,
as adjustments become necessary, they are reported in earnings in the period in which they become known. (e) Accounts receivable Accounts receivable consists of amounts due to
the Company from research institutions. Accounts receivable is reported on the balance sheets net of an estimated allowance for doubtful
accounts. The Company establishes an allowance for doubtful accounts for estimated uncollectible receivables based on historical experience,
assessment of specific risk, review of outstanding invoices, and various assumptions and estimates that are believed to be reasonable
under the circumstances, and recognizes the provision as a component of selling, general and administrative expenses. Uncollectible accounts
are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance is
uncollectible. (f) Research and development Research and development and all patent maintenance
and related filing costs are charged to operations as incurred as the Company is uncertain as to any future economic benefit. (g) Stock based compensation The Company accounts for share-based payments
in accordance with the provision of ASC 718, which requires that all share-based payments issued to acquire and compensate for goods or
services received, including grants of employee shares, be recognized in the statement of loss based on their fair values, net of estimated
forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual
forfeitures differ from those estimates. Compensation expense related to share-based awards is recognized over the requisite service period,
which is generally the vesting period. The Company accounts for stock-based compensation
awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments
issued in exchange for such services, whichever is more readily determinable. The Company issues compensatory shares for services including,
but not limited to, executive, management, operations, corporate communication, finance and administrative consulting services. (h) Foreign Currency Translation The functional currency of the Company’s
Swedish-based subsidiary is the Swedish Krona (“SEK”) and the US-based parent is the U.S. dollar (“USD”). Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate
prevailing at the balance sheet date. Non-monetary assets and liabilities are translated using the historical rate on the date of the
transaction. All exchange gains or losses arising from translation of these foreign currency transactions are included in net loss for
the reporting period. In translating the financial statements of the Company’s Swedish subsidiary from their functional currency
into the Company’s reporting currency of USD, balance sheet accounts are translated using the closing exchange rate in effect at
the balance sheet date and income and expense accounts are translated using an average exchange rate prevailing during the reporting period.
Adjustments resulting from the translation, if any, are included in accumulated other comprehensive loss in equity. The Company has not,
to the date of These unaudited condensed interim consolidated financial statements, entered into derivative instruments to offset the
impact of foreign currency fluctuations. (i) Fair Value of financial instruments The Company’s financial instruments consist
primarily of cash and restricted cash held in trust, accounts receivable, subscription receivable, other receivables, accounts payable
and accrued liabilities, demand loans, loans from related parties, amounts due to related parties. The carrying amounts of these balances
approximate their fair values due to the short-term maturities of these instruments. The carrying value of long term payable to a related
party approximates its fair values due to current market rate on such debt. ASC 820 defines fair value, establishes a framework
for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820-10 defines fair
value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10
also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
● Level
1 – Valuation based on quoted market prices in active markets for identical assets or liabilities.
● Level
2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.
● Level
3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s
best estimate of what market participants would use as fair value. In instances where the determination of the fair
value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which
the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment,
and considers factors specific to the asset or liability. Fair value estimates discussed herein are based
upon certain market assumptions and pertinent information available to management. The respective carrying value of certain on-balance-sheet
financial instruments approximated their fair values due to the short-term nature of these instruments or interest rates that are comparable
to market rates. These financial instruments include cash and restricted cash held in trust, accounts receivable, subscription receivable,
other receivables, accounts payable and accrued liabilities, demand loans, loans from related parties, amounts due to related parties
and long term payable to a related party. The Company’s cash and restricted cash held in trust, which are carried at fair values,
are classified as Level 1. The Company’s bank accounts are maintained with financial institutions of reputable credit, therefore,
bear minimal credit risk. (j) Income Taxes Income taxes are computed under the asset and
liability method reflecting both current and deferred taxes, which reflect the tax impact of all events included in the consolidated financial
statements. The balance sheet approach (i) reflects a current tax liability or asset recognized for estimated taxes payable or refundable
on tax returns for the current and prior years, (ii) reflects a deferred tax liability or asset recognized for the estimated future tax
effects attributable to temporary differences and carry forwards, (iii) measures current and deferred tax liabilities and assets using
the enacted tax rate of which the effects of future changes in tax laws or rates are not anticipated, and (iv) reduces deferred tax assets,
if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. ASC 740 prescribes a recognition threshold and
a measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return.
The Company recognizes deferred tax assets only to the extent that management concludes these assets are more-likely-than-not to be realized.
Significant judgement is required in assessing and estimating the more-likely-than-not tax consequences of the events included in the
consolidated financial statements. Management considers all available positive and negative evidence, including future reversals of existing
temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company recognizes
accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. The Company records uncertain tax
positions in accordance with ASC 740 on the basis of a two-step process in which (i) management determines whether it is more likely-
than-not that the tax position will be sustained on the technical merits of the position and (ii) for those tax positions that meet the
more likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely
to be realized upon ultimate settlement with the related tax authority. (k) Loss per share The Company has adopted the Financial Accounting
Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 260-10 which provides for calculation
of “basic” and “diluted” earnings per share. Basic earnings (loss) per share includes no dilution and is computed
by dividing net income or loss available to common stockholders by the weighted average number of shares of Company common stock, par
value $0.01 per share (“common shares”) outstanding for the period. Diluted earnings (loss) per share reflect the potential
dilution of securities that could share in the earnings of an entity. Diluted earnings per share exclude all potentially dilutive shares
if their effect is anti-dilutive. There were no potentially dilutive shares outstanding as at January 31, 2024, April 30, 2023 or January
31, 2023. (l) Operating Segments Operating segments are components of an enterprise
about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding
how to allocate resources and in assessing performance. Until November 1, 2023, all revenues were earned in Sweden and significantly all
of the assets of the Company were used for the Company’s medical device design and research and distribution activities that was
carried out in Sweden. The Company has one reportable segment and operating segment. During the three months ended January 31, 2024, the
Company began winding-up the business of Sensabues and entered into the Merger Agreement. For three and nine months ended January 31,
2024, the Company had one reportable segment and operating section. (m) Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial
Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” This pronouncement, along with
subsequent ASUs issued to clarify provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the
use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to
estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial
asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing the estimate for lifetime
expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and supportable forecasts. This
pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. On
November 19, 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), finalized various effective
date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses (CECL),
the revised effective for fiscal years beginning after December 15, 2022. The Company does not expect that this guidance will have a significant
impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12,
Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates
certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting
entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required
to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. There
is no significant impact from adopting ASU 2019-12 on the Company’s financial condition, results of operations, and cash flows. In April 2021, The FASB issued ASU 2021-04 to
codify the final consensus reached by the Emerging Issues Task Force (EITF) on how an issuer should account for modifications made to
equity-classified written call options (hereafter referred to as a warrant to purchase the issuer’s common stock). The guidance
in the ASU requires the issuer to treat a modification of an equity-classified warrant that does not cause the warrant to become liability-classified
as an exchange of the original warrant for a new warrant. This guidance applies whether the modification is structured as an amendment
to the terms and conditions of the warrant or as termination of the original warrant and issuance of a new warrant. The Company adopted
this guidance for the fiscal year beginning April 1, 2022. There is no significant impact from adopting ASU 2021-04 on the Company’s
financial condition, results of operations, and cash flows. The Company continue to evaluate the impact of
the new accounting pronouncement, including enhanced disclosure requirements, on our business processes, controls and systems. |
