Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2022 | Sep. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 000-31587 | |
Entity Registrant Name | Red Cat Holdings, Inc. | |
Entity Central Index Key | 0000748268 | |
Entity Tax Identification Number | 86-0490034 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 15 Ave. Munoz Rivera | |
Entity Address, Address Line Two | Ste 2200 | |
Entity Address, City or Town | San Juan | |
Entity Address, Country | PR | |
Entity Address, Postal Zip Code | 00901 | |
City Area Code | 833 | |
Local Phone Number | 373-3228 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RCAT | |
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 | 54,126,244 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Current assets | ||
Cash | $ 6,245,426 | $ 4,084,815 |
Marketable securities | 36,708,627 | 44,790,369 |
Accounts receivable, net | 929,872 | 495,506 |
Inventory | 4,584,836 | 3,895,870 |
Other | 2,694,273 | 2,354,884 |
Due from related party | 13,404 | 31,853 |
Total current assets | 51,176,438 | 55,653,297 |
Goodwill | 25,138,750 | 25,138,750 |
Intangible assets, net | 2,642,371 | 2,698,531 |
Property and equipment, net | 1,028,360 | 511,690 |
Other | 57,033 | 57,033 |
Operating lease right-of-use assets | 926,500 | 1,019,324 |
Total long term assets | 29,793,014 | 29,425,328 |
TOTAL ASSETS | 80,969,452 | 85,078,625 |
Current liabilities | ||
Accounts payable | 937,360 | 1,018,747 |
Accrued expenses | 471,806 | 1,084,494 |
Debt obligations - short term | 882,096 | 956,897 |
Due to related party | 37,196 | 40,057 |
Customer deposits | 233,515 | 437,930 |
Operating lease liabilities | 292,004 | 293,799 |
Warrant derivative liability | 1,700,419 | 1,607,497 |
Total current liabilities | 4,554,396 | 5,439,421 |
Operating lease liabilities | 669,935 | 749,825 |
Debt obligations - long term | 835,719 | 973,707 |
Total long term liabilities | 1,505,654 | 1,723,532 |
Stockholders' equity | ||
Series B preferred stock - shares authorized 4,300,000; outstanding 986,676 and 986,676 | 9,867 | 9,867 |
Common stock - shares authorized 500,000,000; outstanding 53,818,442 and 53,748,735 | 53,818 | 53,749 |
Additional paid-in capital | 107,492,710 | 106,821,384 |
Accumulated deficit | (31,310,655) | (27,499,056) |
Accumulated other comprehensive income | (1,336,338) | (1,470,272) |
Total stockholders' equity | 74,909,402 | 77,915,672 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 80,969,452 | $ 85,078,625 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Jul. 31, 2022 | Apr. 30, 2022 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Outstanding | 53,818,442 | 53,748,735 |
Series B Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 4,300,000 | 4,300,000 |
Preferred Stock, Shares Outstanding | 986,676 | 986,676 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 3,069,271 | $ 1,396,751 |
Cost of goods sold | 2,711,644 | 1,294,347 |
Gross margin | 357,627 | 102,404 |
Operating expenses | ||
Operations | 1,048,086 | 176,863 |
Research and development | 532,770 | 244,254 |
Sales and marketing | 602,231 | 100,633 |
General and administrative | 1,117,565 | 876,180 |
Stock based compensation | 755,471 | 384,086 |
Total operating expenses | 4,056,123 | 1,782,016 |
Operating loss | (3,698,496) | (1,679,612) |
Other expense (income) | ||
Change in fair value of derivative liability | 92,922 | (154,248) |
Investment income, net | (130,296) | |
Interest expense | 35,687 | 17,099 |
Other, net | 114,790 | 15,309 |
Other expense (income) | 113,103 | (121,840) |
Net loss | $ (3,811,599) | $ (1,557,772) |
Loss per share - basic and diluted | $ (0.07) | $ (0.05) |
basic and diluted | 53,778,154 | 34,074,226 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Series A Preferred Stock 1 [Member] | Series B Preferred Stock 1 [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Apr. 30, 2021 | $ 1,587 | $ 19,687 | $ 29,431 | $ 21,025,518 | $ (15,809,928) | $ 5,266,295 | |
Shares, Outstanding, Beginning Balance at Apr. 30, 2021 | 158,704 | 1,968,676 | 29,431,264 | ||||
Acquisition of Skypersonic | $ 685 | 2,630,955 | 2,631,640 | ||||
[custom:StockIssuedDuringPeriodSharesAcquisitions1] | 685,321 | ||||||
Public offerings, net of $5,959,800 of issuance costs | $ 17,333 | 70,022,871 | 70,040,204 | ||||
Stock Issued During Period, Shares, New Issues | 17,333,334 | ||||||
Exercise of warrants | $ 67 | 263,073 | 263,140 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised | 66,666 | ||||||
Conversion of preferred stock | $ (9,820) | $ 818 | 9,002 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (982,000) | (818,333) | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 982,000 | 818,333 | |||||
Stock based compensation | 384,023 | 384,023 | |||||
Vesting of restricted stock | $ 63 | 63 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares | 62,500 | ||||||
Shares issued for services | $ 92 | 191,908 | 192,000 | ||||
Stock Issued During Period, Shares, Issued for Services | 91,667 | ||||||
Currency translation adjustments | 922 | 922 | |||||
Net Loss | (1,557,772) | (1,557,772) | |||||
Vesting of restricted stock units | (63) | (63) | |||||
Ending balance, value at Jul. 31, 2021 | $ 1,587 | $ 9,867 | $ 48,489 | 94,527,350 | (17,367,700) | 922 | 77,220,515 |
Shares, Outstanding, Ending Balance at Jul. 31, 2021 | 158,704 | 968,676 | 48,489,085 | ||||
Beginning balance, value at Apr. 30, 2021 | $ 1,587 | $ 19,687 | $ 29,431 | 21,025,518 | (15,809,928) | 5,266,295 | |
Shares, Outstanding, Beginning Balance at Apr. 30, 2021 | 158,704 | 1,968,676 | 29,431,264 | ||||
[custom:StockIssuedDuringPeriodSharesAcquisitions1] | 707,293 | ||||||
Stock Issued During Period, Shares, New Issues | 17,333,334 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised | 66,666 | ||||||
Stock Issued During Period, Shares, Issued for Services | 111,667 | ||||||
Ending balance, value at Apr. 30, 2022 | $ 9,867 | $ 53,749 | 106,821,384 | (27,499,059) | (1,470,272) | 77,915,672 | |
Shares, Outstanding, Ending Balance at Apr. 30, 2022 | 986,676 | 53,748,735 | |||||
Stock based compensation | 755,471 | 755,471 | |||||
Vesting of restricted stock | $ (69) | 84,145 | 84,076 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares | 69,707 | ||||||
Currency translation adjustments | 352 | 352 | |||||
Net Loss | (3,811,599) | (3,811,599) | |||||
Vesting of restricted stock units | 69 | (84,145) | (84,076) | ||||
Unrealized gain on marketable securities | 133,582 | 133,582 | |||||
Ending balance, value at Jul. 31, 2022 | $ 9,867 | $ 53,818 | $ 107,492,710 | $ (31,310,655) | $ (1,336,338) | $ 74,909,402 | |
Shares, Outstanding, Ending Balance at Jul. 31, 2022 | 986,676 | 53,818,442 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Jul. 31, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Payments of Stock Issuance Costs | $ 5,959,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net loss | $ (3,811,599) | $ (1,557,772) |
Stock based compensation - options | 458,023 | 187,494 |
Stock based compensation - restricted units | 297,448 | 196,592 |
Common stock issued for services | 192,000 | |
Amortization of intangible assets | 56,160 | 16,326 |
Realized loss from sale of marketable securities | 10,675 | |
Depreciation | 28,272 | |
Change in fair value of derivative | 92,922 | (154,248) |
Changes in operating assets and liabilities, net of acquisitions | ||
Accounts receivable | (434,299) | 105,019 |
Inventory | (688,966) | (472,303) |
Other | (339,356) | (1,996,858) |
Operating lease right-of-use assets and liabilities | 11,139 | |
Customer deposits | (204,415) | 62,792 |
Accounts payable | (81,335) | (130,343) |
Accrued expenses | (208,484) | (521,741) |
Net cash used in operating activities | (4,813,815) | (4,073,042) |
Cash Flows from Investing Activities | ||
Cash acquired through acquisitions | 13,502 | |
Purchases of property and equipment | (544,942) | |
Proceeds from maturities of marketable securities | 9,094,592 | |
Purchases of marketable securities | (889,943) | |
Net cash provided by investing activities | 7,659,707 | 13,502 |
Cash Flows from Financing Activities | ||
Proceeds from exercise of warrants | 99,999 | |
Payments under related party obligations | (2,861) | (150,255) |
Payments under debt obligations | (212,789) | (114,173) |
Payments of taxes related to equity transactions | (469,631) | |
Proceeds from issuance of common stock, net | 70,065,203 | |
Net cash (used in) provided by financing activities | (685,281) | 69,900,774 |
Net increase in Cash | 2,160,611 | 65,841,234 |
Cash, beginning of period | 4,084,815 | 277,347 |
Cash, end of period | 6,245,426 | 66,118,581 |
Cash paid for interest | 36,082 | 2,024 |
Cash paid for income taxes | ||
Non-cash transactions | ||
Fair value of shares issued in acquisitions | 2,631,640 | |
Conversion of derivative liability | 163,141 | |
Unrealized gain on marketable securities | 133,582 | |
Indirect payment to related party | 132,200 | |
Shares withheld as payment of note receivable | 18,449 | |
Taxes related to net share settlement of equity awards | 15,982 | |
Conversion of preferred stock into common stock | $ 9,820 |
Note 1 _ The Business
Note 1 – The Business | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Note 1 – The Business | Note 1 – The Business Red Cat Holdings (“Red Cat” or the “Company”) was originally incorporated in February 1984. Since April 2016, the Company’s primary business has been to provide products, services and solutions to the drone industry which it presently does through its four wholly owned subsidiaries. Teal Drones is a leader in commercial and government Unmanned Aerial Vehicles (UAV) technology. Fat Shark is a provider of First Person View (FPV) video goggles to the drone industry. Rotor Riot sells FPV drones and equipment to the consumer marketplace through its digital storefront located at www.rotorriot.com. Skypersonic provides software and hardware solutions that enable drones to complete inspection services in locations where GPS (global positioning systems) is not available, yet still record and transmit data even while being operated from thousands of miles away. Corporate developments during the two years ended July 31, 2022 include: A. Fat Shark Acquisition On September 30, 2020, the Company entered into a share purchase agreement (“Share Purchase Agreement”) with Greg French (“French”), the founder and sole shareholder of Fat Shark Holdings (“Fat Shark”), to acquire all of the issued and outstanding shares of Fat Shark and its subsidiaries. The transaction closed on November 2, 2020 and was valued at $ 8,354,076 5,227,273 6,351,076 1,753,000 250,000 A summary of the purchase price and its related allocation was as follows: Shares issued $ 6,351,076 Promissory note issued 1,753,000 Cash 250,000 Total Purchase Price $ 8,354,076 Assets acquired Cash 201,632 Accounts receivable 249,159 Other assets 384,232 Inventory 223,380 Brand name 1,144,000 Proprietary technology 272,000 Non-compete agreement 16,000 Total assets acquired 2,490,403 Liabilities assumed Accounts payable and accrued expenses 279,393 Customer deposits 25,194 Total liabilities assumed 304,587 Total fair value of net assets acquired 2,185,816 Goodwill $ 6,168,260 The Company engaged a valuation services firm to value the intangible assets acquired and the purchase price allocation is now complete. Intangible assets included proprietary technology and a non-compete agreement which are being amortized over 5 and 3 years, respectively. The carrying value of brand name is not being amortized but is reviewed quarterly and formally evaluated at year end. The excess of the purchase price above the net assets acquired was recorded as goodwill which is reviewed quarterly and formally evaluated at year end. B. Skypersonic Acquisition On May 7, 2021, the Company closed the acquisition of Skypersonic, Inc. ("Skypersonic"). Under the terms of the agreement, we acquired all of the outstanding stock of Skypersonic in exchange for $ 3,000,000 747,124 110,000 857,124 3,291,356 3.84 75,000 601,622 149,829 The final summary of the purchase price and its related allocation is as follows: Shares issued $ 2,716,012 Cash 75,000 Total Purchase Price $ 2,791,012 Assets acquired Cash 13,502 Accounts receivable 51,083 Other assets 12,950 Inventory 50,556 Proprietary technology 826,000 Non-compete agreement 65,000 Total assets acquired 1,019,091 Liabilities assumed Accounts payable and accrued expenses 1,054,997 Total liabilities assumed 1,054,997 Total fair value of net assets acquired (35,906 ) Goodwill $ 2,826,918 The Company engaged a valuation services firm to value the intangible assets acquired and the purchase price allocation is now complete. Intangible assets included proprietary technology and a non-compete agreement which are being amortized over 5 and 3 years, respectively. The excess of the purchase price above the net assets acquired was recorded as goodwill which is reviewed quarterly and formally evaluated at year end. C. Teal Drones Acquisition On August 31, 2021, the Company closed the acquisition of Teal Drones Inc., (“Teal”). Under the terms of the agreement, the base purchase price of $ 14,000,000 1,670,294 1,456,953 10,872,753 3,738,911 10,431,562 2.79 438,058 150,639 A revised summary of the purchase price and its related allocation is set forth below. Total Purchase Price – shares issued $ 10,011,279 Assets acquired Cash 11,364 Accounts receivable 47,964 Other current assets 15,085 Other assets 48,595 Inventory 1,253,755 Total assets acquired 1,376,763 Liabilities assumed Accounts payable and accrued expenses 1,143,899 Customer deposits 1,766,993 Notes payable 2,749,091 Total liabilities assumed 5,659,983 Total fair value of net assets acquired (4,283,220 ) Goodwill $ 14,294,499 The foregoing amounts reflect our current estimates of fair value as of the August 31, 2021 acquisition date. The Company has engaged an independent valuation services firm to complete a formal evaluation of the acquisition. The Company expects to recognize fair values associated with the customer relationships acquired, as well as the Teal brand name but has not yet accumulated sufficient information to assign such values. When the valuation project is completed, the Company may make adjustments to the opening balance. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and intangible assets) requires significant judgment. On August 31, 2021, Teal entered into an Amended and Restated Loan and Security Agreement with Decathlon Alpha IV, L.P. (“DA4”) (the “Loan Agreement”) in the amount of $ 1,670,294 10 49,275 Supplemental Unaudited Pro Forma Financial Information and Other Information July 31, 2021 Red Cat Teal Consolidated Revenues $ 1,396,751 $ 312,047 $ 1,708,798 Net Loss $ (1,557,772 ) $ (1,165,987 ) $ (2,723,759 ) The unaudited pro forma financial information has been compiled in a manner consistent with the Company's accounting policies, and includes transaction costs, amortization of the acquired intangible assets, and other expenses directly related to each respective acquisition. The unaudited pro forma financial information is based on estimates and assumptions which the Company believes are reasonable and are not necessarily indicative of the results that would have been realized had the acquisitions closed on the dates indicated in the tables, nor are they indicative of results of operations that may occur in the future. Other information related to the Company’s acquisitions include: The purchase price allocation has been finalized for each acquisition except Teal for which the Company is waiting for the final report from the valuation services firm engaged to assist in the identification and valuation of intangible assets acquired. The fair value of shares issued by the Company as part of the consideration paid is normally based on the volume weighted average price of the Company’s common stock for the twenty days prior to the closing of the transaction. For accounting purposes, the shares issued are valued based on the closing stock price on the date that the transaction closes. Goodwill for Rotor Riot relates to its strong social media presence including its 253,000 YouTube subscribers. Goodwill for Fat Shark is attributable to its relationship with manufacturing sources in China and the potential to integrate its goggle technologies with the Teal drone. Goodwill for Skypersonic relates to the future customers expected to leverage its “Fly Anywhere” technologies in a wide range of commercial environments. Goodwill for Teal is ascribed to its existing relationship with several of U.S. government agencies including its classification as an approved vendor. The Company expects that the Goodwill recognized in each transaction will be deductible for tax purposes. The Company has reported net losses since its inception and is presently unable to determine when and if the tax benefit of this deduction will be realized. |
Note 2 _ Summary of Significant
Note 2 – Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Note 2 – Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Accounting Principles of Consolidation Use of Estimates Cash and Cash Equivalents 6,245,426 Marketable Securities We have elected to present accrued interest receivable separately from marketable securities on our consolidated balance sheets. Accrued interest receivable was $ 334,654 385,730 Accounts Receivable, net Inventories Goodwill We perform an impairment test at the end of each fiscal year, or more frequently if indications of impairment arise. We have two business segments and evaluate goodwill for impairment based on an evaluation of the fair value of each business segment individually. Property and equipment Leases 796,976 The Company determines if a contract is a lease or contains a lease at inception. Operating lease liabilities are measured, on each reporting date, based on the present value of the future minimum lease payments over the remaining lease term. The Company's leases do not provide an implicit rate. Therefore, the Company uses an effective discount rate of 12% based on its last debt financings. Operating lease assets are measured by adjusting the lease liability for lease incentives, initial direct costs incurred and asset impairments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with the operating lease asset reduced by the amount of the expense. Lease terms may include options to extend or terminate a lease when they are reasonably certain to occur. Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities, and Related Disclosures The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined 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. The guidance establishes three levels of the fair value hierarchy as follows: Level 1 Level 2 Level 3 Disclosures for Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis The Company's financial instruments mainly consist of cash, receivables, current assets, accounts payable, accrued expenses and debt. The carrying amounts of cash, receivables, current assets, accounts payable, accrued expenses and current debt approximates fair value due to the short-term nature of these instruments. Convertible Securities and Derivatives When the Company issues convertible debt or equity instruments that contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds from the convertible host instruments are first allocated to the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, resulting in those instruments being recorded at a discount from their face value but no lower than zero. Any excess amount is recognized as a derivative expense. Derivative Liabilities The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as liabilities on the Company's balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. In October 2020 and January 2021, the Company entered into convertible note agreements which included provisions under which the conversion price was equal to the lesser of an initial stated amount or the conversion price of a future offering. This variable conversion feature was recognized as a derivative. Both financings included the issuance of warrants which contained similar variable conversion features. The Company values these convertible notes and warrants using the multinomial lattice method that values the derivative liability based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. Revenue Recognition 233,515 437,930 Research and Development Income Taxes Recent Accounting Pronouncements Foreign Currency Comprehensive Loss – 1,336,338 922 1,340,712 0 352 922 Stock-Based Compensation Basic and Diluted Net Loss per Share Outstanding securities not included in the computation of diluted net loss per share because their effect would have been anti-dilutive included the following: July 31, 2022 April 30, 2022 Series B Preferred Stock, as converted 822,230 822,230 Stock options 3,634,142 3,694,142 Warrants 1,539,999 1,539,999 Restricted stock 971,701 1,083,675 Total 6,968,072 7,140,046 Related Parties Segment Reporting Since January 2020, we have acquired four separate businesses operating in various aspects of the drone industry. Following the most recent acquisition, the Company focused on integrating and organizing its acquired businesses. These efforts included refining the establishment of Enterprise and Consumer segments in order to sharpen the Company’s focus on the unique opportunities in each sector of the drone industry. The Enterprise segment, which includes Teal Drones and Skypersonic, is focused on opportunities in the commercial sector, including military. Enterprise is building the infrastructure to manage drone fleets, fly and provide services remotely, and navigate confined industrial interior spaces and dangerous military environments. The Consumer segment, which includes Rotor Riot and Fat Shark, is focused on enthusiasts and hobbyists which are expected to increase as drones become more visible in our daily lives. Effective May 1, 2022, we began to manage our business operations through these business segments. The reportable segments were identified based on how our chief operating decision maker (“CODM”), which is a committee comprised of our Chief Executive Officer (“CEO”), Chief Operating Officer (“COO”) and our Chief Financial Officer (“CFO”), manages our business, makes resource allocation and operating decisions, and evaluates operating performance. See “Note 20 - Segment Reporting”. |
Note 3 _ Marketable Securities
Note 3 – Marketable Securities | 3 Months Ended |
Jul. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Note 3 – Marketable Securities | Note 3 – Marketable Securities The following tables set forth information related to our marketable securities as of July 31, 2022: I. Cost, unrealized gains or losses, and fair values Cost Unrealized Gains (Losses) Fair Value Asset-backed securities $ 2,504,563 $ (35,324 ) $ 2,469,239 Corporate bonds 35,544,776 (1,305,388 ) 34,239,388 Total $ 38,049,339 $ (1,340,712 ) $ 36,708,627 II. Contractual Maturities One Year or Less One to Over Five Years Total Asset-backed securities $ — $ 2,469,239 $ — $ 2,469,239 Corporate bonds 16,876,795 16,804,473 558,120 34,239,388 Total $ 16,876,795 $ 19,273,712 $ 558,120 $ 36,708,627 III. Fair Value Hierarchy Level 1 Level 2 Level 3 Total Asset-backed securities $ — $ 2,469,239 $ — $ 2,469,239 Corporate bonds — 34,239,388 — 34,239,388 Total $ — $ 36,708,627 $ — $ 36,708,627 |
Note 4 _ Inventories
Note 4 – Inventories | 3 Months Ended |
Jul. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Note 4 – Inventories | Note 4 – Inventories Inventories consisted of the following: July 31, 2022 April 30, 2022 Raw materials $ 2,396,265 $ 2,831,713 Work-in-process 524,811 173,112 Finished goods 1,663,760 891,045 Total $ 4,584,836 $ 3,895,870 Inventory purchase orders outstanding totaled approximately $ 31.9 |
Note 5 _ Other Current Assets
Note 5 – Other Current Assets | 3 Months Ended |
Jul. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Note 5 – Other Current Assets | Note 5 – Other Current Assets Other current assets included: July 31, 2022 April 30, 2022 Prepaid inventory $ 1,804,539 $ 1,707,085 Accrued interest income 334,654 385,730 Prepaid expenses 555,080 262,069 Total $ 2,694,273 $ 2,354,884 |
Note 6 _ Due From Related Party
Note 6 – Due From Related Party | 3 Months Ended |
Jul. 31, 2022 | |
Note 6 Due From Related Party | |
Note 6 – Due From Related Party | Note 6 – Due From Related Party In January 2022, the Company determined that an employee had relocated in 2021 but their compensation had not been subject to the required tax withholding by the new jurisdiction. The amount subject to taxation included $ 155,624 1,413,332 510,323 104,166 280,832 110,983 20,833 3,000 712,646 510,323 31,604 170,719 13,404 393,356 |
Note 7 _ Intangible Assets
Note 7 – Intangible Assets | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Note 7 – Intangible Assets | Note 7 – Intangible Assets Intangible assets relate to acquisitions completed by the Company, including those described in Note 1. Intangible assets were as follows: July 31, 2022 April 30, 2022 Gross Value Accumulated Amortization Net Value Accumulated Amortization Net Value Proprietary technology $ 1,098,000 (267,284 ) $ 830,716 $ (219,267 ) $ 878,733 Non-compete agreements 81,000 (36,417 ) 44,583 (29,667 ) 51,333 Customer relationships 39,000 (13,928 ) 25,072 (12,535 ) 26,465 Total finite-lived assets 1,218,000 (317,629 ) 900,371 (261,469 ) 956,531 Brand name 1,722,000 — 1,722,000 — 1,722,000 Trademark 20,000 — 20,000 — 20,000 Total indefinite-lived assets 1,742,000 — 1,742,000 — 1,742,000 Total intangible assets, net $ 2,960,000 (317,629 ) $ 2,642,371 $ (261,469 ) $ 2,698,531 Proprietary technology and non-compete agreements are being amortized over 5 and 3 years, respectively. Customer relationships is being amortized over 7 years. Goodwill and Brand name are not amortized but evaluated for impairment on a quarterly basis. As of July 31, 2022, expected amortization expense for finite-lived intangible assets for the next five years is as follows: Fiscal Year Ended: 2023 $ 168,478 2024 221,972 2025 197,638 2026 170,438 2027 141,845 Total $ 900,371 Goodwill is a separately stated intangible asset and represents the excess of the purchase price of acquisitions above the net assets acquired. The composition of, and changes in goodwill, consist of: Date Acquisition Goodwill January 2020 Rotor Riot $ 1,849,073 November 2020 Fat Shark 6,168,260 Balance at April 30, 2021 8,017,333 May 2021 Skypersonic 2,826,918 August 2021 Teal Drones 14,294,499 Balance at April 30, 2022 and July 31, 2022 $ 25,138,750 |
Note 8 _ Property and Equipment
Note 8 – Property and Equipment | 3 Months Ended |
Jul. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Note 8 – Property and Equipment | Note 8 – Property and Equipment Property and equipment consist of assets with an estimated useful life greater than one year, and are reported net of accumulated depreciation. The reported values are periodically assessed for impairment, and were as follows: July 31, 2022 April 30, 2022 Equipment and related $ 630,448 $ 509,376 Leasehold improvements 567,404 149,330 Furniture and fixtures 54,254 42,746 Accumulated depreciation (223,746 ) (189,762 ) Net carrying value $ 1,028,360 $ 511,690 Depreciation expense totaled $ 28,272 0 |
Note 9 _ Operating Leases
Note 9 – Operating Leases | 3 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Note 9 – Operating Leases | Note 9 – Operating Leases As of July 31, 2022, the Company had operating type leases for real estate and no finance type leases. The Company’s leases have remaining lease terms of up to 4.83 years, some of which may include options to extend for up to 5 years. Operating lease expense totaled $ 121,506 7,946 Location Monthly Rent Expiration South Salt Lake, Utah $ 22,000 December 2024 Orlando, Florida $ 4,692 May 2024 San Juan, Puerto Rico $ 2,226 June 2027 Troy, Michigan $ 2,667 May 2022 Orlando, Florida $ 1,690 September 2022 Supplemental information related to operating leases for the three months ended July 31, 2022 was: Operating cash paid to settle lease liabilities $ 94,491 Weighted average remaining lease term (in years) 3.05 Weighted average discount rate 12% Future lease payments at July 31, 2022 were as follows: Fiscal Year Ended: 2023 $ 291,405 2024 403,878 2025 304,676 2026 76,619 2027 79,300 Thereafter 6,627 Total $ 1,162,505 |
Note 10 _ Debt Obligations
Note 10 – Debt Obligations | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Note 10 – Debt Obligations | Note 10 – Debt Obligations A. Decathlon Capital In August 2021, Teal restructured its loan agreement with Decathlon Capital. The principal amount of $ 1,670,294 10 49,275 1,256,632 B. Pelion Note In May 2021, Teal entered into a note agreement totaling $ 350,000 0.13 537 C. Vendor Settlement In May 2020, Teal entered into a settlement agreement with a vendor that had been providing contract manufacturing services. At August 31, 2021, the Company assumed the outstanding balance of $ 387,500 37,500 12,500 D. SBA Loan On February 11, 2021, Teal received a Small Business Administration Paycheck Protection Program (“SBA PPP”) loan in the amount of $ 300,910 300,910 3,001 E. Shopify Capital Shopify Capital is an affiliate of Shopify, Inc. which provides sales software and services to the Company. The Company processes customer transactions ordered on the e-commerce site for Rotor Riot through Shopify. Shopify Capital has entered into multiple agreements with the Company in which it has "purchased receivables" at a discount. Shopify retains a portion of the Company's daily receipts until the purchased receivables have been paid. The Company recognizes the discount as a transaction fee, in full, in the month in which the agreement is executed. Agreements with activity during the two years ended July 31, 2022 included: Date of Transaction Purchased Receivables Payment to Company Transaction Fees Withholding Rate Fully Repaid In May 2020 $158,200 $140,000 $18,200 17 % October 2020 September 2020 $209,050 $185,000 $24,050 17 % May 2021 April 2021 $236,500 $215,000 $21,500 17 % January 2022 F. Corporate Equity Beginning in October 2021, and amended in January 2022, Teal financed a total of $ 120,000 8.25 3,595 93,864 102,599 G. Revenue Financing Arrangement In April 2021, Teal entered into an agreement under which it sold future customer payments, at a discount, to Forward Financing. At August 31, 2021, the Company assumed the outstanding balance of $ 38,758 H. Ascentium Capital In September 2021, Teal entered into a financing agreement with Ascentium Capital to fund the purchase of a fixed asset totaling $ 24,383 656 17,317 I. PayPal PayPal is an electronic commerce company that facilitates payments between parties through online funds transfers. The Company processes certain customer payments ordered on its e-commerce site through PayPal. The Company has entered into multiple agreements under which PayPal provides an advance on customer payments, and then retains a portion of customer payments until the advance is repaid. PayPal charges a fee which the Company recognizes in full upon entering an agreement. A November 2019 agreement under which PayPal advanced $ 100,000 6,900 75,444 2,444 J. Summary Outstanding principal payments on debt obligations are due as follows: Fiscal 2023 $ 744,108 Fiscal 2024 572,139 Fiscal 2025 401,568 Total $ 1,717,815 Short term – through July 31, 2023 $ 882,096 Long term – thereafter $ 835,719 |
Note 11 _ Due to Related Party
Note 11 – Due to Related Party | 3 Months Ended |
Jul. 31, 2022 | |
Note 11 Due To Related Party | |
Note 11 – Due to Related Party | Note 11 – Due to Related Party A. Founder of Fat Shark In connection with the acquisition of Fat Shark in November 2020, the Company issued a secured promissory note for $ 1,753,000 3 132,200 1,620,800 45,129 B. BRIT, LLC In January 2020, in connection with the acquisition of Rotor Riot, the Company issued a promissory note for $ 175,000 4.75 85,172 12,942 The Company also assumed a line of credit obligation totaling $ 47,853 6.67 37,196 40,057 C. Aerocarve In 2020, the Company received advances totaling $ 79,000 5 |
Note 12 _ Convertible Notes
Note 12 – Convertible Notes | 3 Months Ended |
Jul. 31, 2022 | |
Note 12 Convertible Notes | |
Note 12 – Convertible Notes | Note 12 – Convertible Notes November 2019 Financing In November 2019 Financing, the Company issued a convertible note in the principal amount of $ 300,000 125,000 25,000 12 450,000 45,204 710,444 October 2020 Financing In October 2020, the Company closed a private offering of convertible promissory notes (the "2020 Notes") in the aggregate principal amount of $ 600,000 12 399,998 The Company determined that the provision associated with a potential reduction in the conversion price of the notes and the exercise price of the warrant represented an embedded derivative financial liability. The derivative liability was initially valued at $ 728,587 460,588 267,999 580,000 20,000 148,587 As of July 31, 2022, (a) the 2020 Notes were fully converted into common stock and the related derivative liability eliminated, and (b) 266,666 557,297 January 2021 Financing In January 2021, the Company closed a private offering of convertible promissory notes (the "2021 Notes") in the aggregate principal amount of $ 500,000 12 675,000 The Company determined that the provision associated with a potential reduction in the conversion price of the notes and the exercise price of the warrant represented an embedded derivative financial liability. The derivative liability was initially valued at $ 4,981,701 2,111,035 2,870,666 500,000 4,481,701 As of July 31, 2022, (a) the 2021 Notes were fully converted into common stock and the related derivative liability eliminated, and (b) 540,000 1,143,122 |
Note 13 _ Income Taxes
Note 13 – Income Taxes | 3 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Note 13 – Income Taxes | Note 13 – Income Taxes Our operating subsidiary, Red Cat Propware, Inc., is incorporated and based in Puerto Rico which is a commonwealth of the United States. We are not subject to taxation by the United States as Puerto Rico has its own taxing authority. Since inception, we have incurred net losses in each year of operations. Our current provision for the reporting periods presented in these financial statements consisted of a tax benefit against which we applied a full valuation allowance, resulting in no current provision for income taxes. In addition, there was no deferred provision for any of these reporting periods. At July 31, 2022 and April 30, 2022, we had accumulated deficits of approximately $ 31,300,000 27,500,000 5,790,500 5,087,500 |
Note 14 _ Common Stock
Note 14 – Common Stock | 3 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Note 14 – Common Stock | Note 14 – Common Stock Our common stock has a par value of $ 0.001 500,000,000 Description of Shares Shares Issued Shares outstanding as of April 30, 2021 29,431,264 Conversion of Series A preferred stock 1,321,996 Conversion of Series B preferred stock 818,333 Exercise of warrants 66,666 Acquisition of Skypersonic on May 7, 2021, see Note 1 707,293 Acquisition of Teal Drones on August 31, 2021, see Note 1 3,588,272 Public offerings which generated gross proceeds of $76 million and net proceeds of approximately $70.1 million 17,333,334 Exercise of stock options 89,107 Vesting of restricted stock units to employees, net of shares withheld of 225,869 to pay taxes and 92,812 to repay a Note 225,637 Vesting of restricted stock units to Board of Directors 48,124 Vesting of restricted stock units to consultants 7,042 Shares issued for services 111,667 Shares outstanding as of April 30, 2022 53,748,735 Vesting of restricted stock units to employees, net of shares withheld of 33,267 to pay taxes and 9,000 to repay a Note 55,915 Vesting of restricted stock units to Board of Directors 12,032 Vesting of restricted stock units to consultants 1,760 Share outstanding as of July 31, 2022 53,818,442 |
Note 15 _ Preferred Stock
Note 15 – Preferred Stock | 3 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Note 15 – Preferred Stock | Note 15 – Preferred Stock Series A Preferred Stock outstanding totaled 158,704 1,321,996 Series B Preferred Stock (“Series B Stock”) is convertible into common stock at a ratio of 0.8334 shares of common stock for each share of Series B Stock held and votes together with the common stock on an as-if-converted basis. Shares outstanding at July 31, 2022 totaled 986,676 822,230 |
Note 16 _ Warrants
Note 16 – Warrants | 3 Months Ended |
Jul. 31, 2022 | |
Note 16 Warrants | |
Note 16 – Warrants | Note 16 – Warrants The company issued five-year warrants in connection with two convertible note financings. The warrants have an initial exercise price of $ 1.50 which may be reduced to a 25% discount of the price per share of Common Stock offered in a future qualified offering. The warrants were valued using the multinominal lattice model and are considered derivative liabilities under ASC 815-40. The value of the warrants was included in the determination of the initial accounting for each financing including the calculation of the derivative liability and related expense. A summary of the warrants issued and their fair values were: Upon Issuance July 31, 2022 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 557,297 January 2021 675,000 $ 2,870,666 540,000 $ 1,143,122 In March and April 2021, we received $ 201,249 related to the exercise of 201,666 of the warrants. Since these exercises resulted in the elimination of the derivative liability in the warrants, the derivative liability was reduced by $ 694,305 with a corresponding increase in additional paid in capital. In June 2021, we received $ 99,999 66,666 163,141 In May 2021, the Company issued warrants to purchase 200,000 5.00. In July 2021, the Company issued warrants to purchase 533,333 shares of common stock to the placement agent of its common stock offering. The warrants have a five-year term and an exercise price of $ 5.625 . The following table presents the range of assumptions used to estimate the fair values of warrants granted during the three months ended July 31: 2022 2021 Risk-free interest rate — 0.79 0.85 Expected dividend yield — — Expected term (in years) — 5.00 5.00 Expected volatility — 222.45 223.17 The following table summarizes the changes in warrants outstanding since April 30, 2021. Number of Shares Weighted-average Exercise Price per Share Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance as of April 30, 2021 873,332 1.50 4.62 2,218,263 Granted 733,333 $ 5.45 Exercised (66,666 ) 1.50 Outstanding as of April 30, 2022 1,539,999 3.38 3.89 $ 427,533 Granted — Exercised — Outstanding at July 31, 2022 1,539,999 $ 3.38 3.63 $ 540,466 |
Note 17 _ Share Based Awards
Note 17 – Share Based Awards | 3 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Note 17 – Share Based Awards | Note 17 – Share Based Awards The 2019 Equity Incentive Plan (the "Plan") allows us to incentivize key employees, consultants, and directors with long term compensation awards such as stock options, restricted stock, and restricted stock units (collectively, the "Awards"). The number of shares issuable in connection with Awards under the Plan may not exceed 8,750,000 Options The table below sets forth the range of assumptions used to calculate the fair value of options granted during the three months ended July 31: 2022 2021 Exercise Price — $ 2.41 2.60 Stock price on date of grant — 2.41 2.60 Risk-free interest rate — 0.47 1.57 Dividend yield — — Expected term (years) — 3.75 10.00 Volatility — 210.68 214.17 A summary of options activity under the Plan since April 30, 2021 is as follows: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of April 30, 2021 2,197,475 $ 1.79 8.68 4,943,870 Granted 1,681,000 2.58 Exercised (150,000 ) 2.49 Forfeited or expired (34,333 ) 2.11 Outstanding as of April 30, 2022 3,694,142 2.17 8.56 1,407,545 Granted — Exercised — Forfeited or expired (60,000 ) 2.55 Outstanding as of July 31, 2022 3,634,142 2.16 8.31 1,608,791 Exercisable as of July 31, 2022 2,312,975 $ 1.89 7.68 $ 1,334,291 The aggregate intrinsic value of outstanding options represents the excess of the stock price at the indicated date over the exercise price of each option. As of July 31, 2022 and July 31, 2021, there was $ 2,760,989 1,592,188 Restricted Stock A summary of restricted stock activity under the plan since April 30, 2021 is as follows: Restricted Stock Shares Weighted Average Grant-Date Fair Value Per Share Unvested and outstanding as of April 30, 2021 687,500 $ 2.69 Granted 995,659 2.55 Vested (599,484 ) 2.64 Forfeited — — Unvested and outstanding as of April 30, 2022 1,083,675 2.59 Granted — — Vested (111,974 ) 2.57 Forfeited — — Unvested and outstanding as of July 31, 2022 971,701 $ 2.59 Stock Compensation Stock compensation expense for the three months ended July 31 was as follows: 2022 2021 General and administrative $ 345,168 $ 219,601 Research and development 144,798 56,480 Operations 158,431 63,261 Sales and marketing 107,074 44,744 Total $ 755,471 $ 384,086 Stock compensation expense pertaining to options totaled $ 458,023 187,494 |
Note 18 _ Derivatives
Note 18 – Derivatives | 3 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Note 18 – Derivatives | Note 18 – Derivatives The Company completed financings in October 2020 and January 2021 which included notes and warrants containing embedded features subject to derivative accounting. See Note 12 for a full description of these financings. Both the notes and the warrants included provisions which provided for a reduction in the conversion and exercise prices, respectively, if the Company completed a future qualified offering at a lower price. These provisions represent embedded derivatives which are valued separately from the host instrument (meaning the notes and warrants) and recognized as derivative liabilities on the Company's balance sheet. The Company initially measures these financial instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company also measures these financial instruments on the date of settlement (meaning when the note is converted, or the warrant is exercised) at their estimated fair value and recognizes changes in their estimated fair value in results of operations. Any discount in the carrying value of the note is fully amortized on the date of settlement and recognized as interest expense. The Company estimated the fair value of these embedded derivatives using a multinomial lattice model. The range of underlying assumptions used in the binomial model to determine the fair value of the derivative warrant liability upon settlement of the derivative liability and as of July 31, 2022 and April 30, 2022 are set forth below. In addition, the Company's stock price on each measurement date was used in the model. July 31, 2022 April 30, 2022 Risk-free interest rate 2.83 0.52 2.87 Expected dividend yield — — Expected term (in years) 3.17 3.50 3.42 4.50 Expected volatility 225.77 235.23 211.02 292.28 As of July 31, 2022 all of the notes had been converted into common stock and 806,666 July 31, 2022 April 30, 2022 Balance, beginning of period $ 1,607,497 $ 2,812,767 Additions — — Eliminated upon conversion of notes/exercise of warrants — (163,141 ) Changes in fair value 92,922 (1,042,129 ) Balance, end of period $ 1,700,419 $ 1,607,497 Changes in fair value primarily relate to changes in the Company’s stock price during the period with increases in the stock price increasing the liability and decreases in the stock price reducing the liability. |
Note 19 - Related-Party Transac
Note 19 - Related-Party Transactions | 3 Months Ended |
Jul. 31, 2022 | |
Related Party Transactions [Abstract] | |
Note 19 - Related-Party Transactions | Note 19 - Related-Party Transactions In July 2021, the Company entered into a consulting agreement with a director resulting in monthly payments of $ 6,000 150,000 2.51 10,000 In January 2022, the Company entered into a note agreement with an employee in the principal amount of $ 510,323 Additional related party transactions are disclosed in Note 11. |
Note 20 - Segment Reporting
Note 20 - Segment Reporting | 3 Months Ended |
Jul. 31, 2022 | |
Note 20 - Segment Reporting | |
Note 20 - Segment Reporting | Note 20 - Segment Reporting We define our segments as those operations whose results are regularly reviewed by our CODM to analyze performance and allocate resources. Therefore, segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes. Our CODM is a committee comprised of our CEO, COO, and CFO. The Enterprise segment is focused on opportunities in the commercial sector, including military. Enterprise is building the infrastructure to manage drone fleets, fly and provide services remotely, and navigate confined industrial interior spaces and dangerous military environments. The Consumer segment is focused on enthusiasts and hobbyists which are expected to increase as drones become more visible in our daily lives. Our CODM allocates resources to and assesses the performance of our two operating segments based on the operating segments’ net sales and gross profit. The following table sets forth information by reportable segment for the three months ended July 31, 2022 and 2021, respectively. For the three months ended July 31, 2022 Enterprise Consumer Corporate Total Revenues $ 1,126,551 $ 1,942,720 $ — $ 3,069,271 Cost of goods sold 1,044,431 1,667,213 — 2,711,644 Gross margin 82,120 275,507 — 357,627 Operating expenses 1,661,363 495,028 1,899,732 4,056,123 Operating loss (1,579,243 ) (219,521 ) (1,899,732 ) (3,698,496 ) Other expenses, net 63,229 (124 ) 49,998 113,103 Net loss $ (1,642,472 ) $ (219,397 ) $ (1,949,730 ) $ (3,811,599 ) The following table sets forth specific asset categories which are reviewed by our CODM in the evaluation of operating segments: For the three months ended July 31, 2022 Enterprise Consumer Corporate Total Accounts receivable, net $ 688,244 $ 241,628 $ — $ 929,872 Inventory, net 3,486,487 1,098,349 — 4,584,836 Inventory deposits $ 1,158,195 $ 646,344 $ — $ 1,804,539 |
Note 21 _ Subsequent Events
Note 21 – Subsequent Events | 3 Months Ended |
Jul. 31, 2022 | |
Subsequent Events [Abstract] | |
Note 21 – Subsequent Events | Note 21 – Subsequent Events Subsequent events have been evaluated through the date of this filing and there are no subsequent events which require disclosure except as set forth below: In August and September 2022, the Company entered into inventory purchase orders totaling $ 3.1 |
Note 2 _ Summary of Significa_2
Note 2 – Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents 6,245,426 |
Marketable Securities | Marketable Securities We have elected to present accrued interest receivable separately from marketable securities on our consolidated balance sheets. Accrued interest receivable was $ 334,654 385,730 |
Accounts Receivable, net | Accounts Receivable, net |
Inventories | Inventories |
Goodwill | Goodwill We perform an impairment test at the end of each fiscal year, or more frequently if indications of impairment arise. We have two business segments and evaluate goodwill for impairment based on an evaluation of the fair value of each business segment individually. |
Property and equipment | Property and equipment |
Leases | Leases 796,976 The Company determines if a contract is a lease or contains a lease at inception. Operating lease liabilities are measured, on each reporting date, based on the present value of the future minimum lease payments over the remaining lease term. The Company's leases do not provide an implicit rate. Therefore, the Company uses an effective discount rate of 12% based on its last debt financings. Operating lease assets are measured by adjusting the lease liability for lease incentives, initial direct costs incurred and asset impairments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term with the operating lease asset reduced by the amount of the expense. Lease terms may include options to extend or terminate a lease when they are reasonably certain to occur. |
Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities, and Related Disclosures | Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities, and Related Disclosures The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined 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. The guidance establishes three levels of the fair value hierarchy as follows: Level 1 Level 2 Level 3 Disclosures for Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis The Company's financial instruments mainly consist of cash, receivables, current assets, accounts payable, accrued expenses and debt. The carrying amounts of cash, receivables, current assets, accounts payable, accrued expenses and current debt approximates fair value due to the short-term nature of these instruments. Convertible Securities and Derivatives When the Company issues convertible debt or equity instruments that contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds from the convertible host instruments are first allocated to the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, resulting in those instruments being recorded at a discount from their face value but no lower than zero. Any excess amount is recognized as a derivative expense. Derivative Liabilities The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as liabilities on the Company's balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. In October 2020 and January 2021, the Company entered into convertible note agreements which included provisions under which the conversion price was equal to the lesser of an initial stated amount or the conversion price of a future offering. This variable conversion feature was recognized as a derivative. Both financings included the issuance of warrants which contained similar variable conversion features. The Company values these convertible notes and warrants using the multinomial lattice method that values the derivative liability based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. |
Revenue Recognition | Revenue Recognition 233,515 437,930 |
Research and Development | Research and Development |
Income Taxes | Income Taxes |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Foreign Currency | Foreign Currency |
Comprehensive Loss | Comprehensive Loss – 1,336,338 922 1,340,712 0 352 922 |
Stock-Based Compensation | Stock-Based Compensation |
Basic and Diluted Net Loss per Share | Basic and Diluted Net Loss per Share Outstanding securities not included in the computation of diluted net loss per share because their effect would have been anti-dilutive included the following: July 31, 2022 April 30, 2022 Series B Preferred Stock, as converted 822,230 822,230 Stock options 3,634,142 3,694,142 Warrants 1,539,999 1,539,999 Restricted stock 971,701 1,083,675 Total 6,968,072 7,140,046 |
Related Parties | Related Parties |
Segment Reporting | Segment Reporting Since January 2020, we have acquired four separate businesses operating in various aspects of the drone industry. Following the most recent acquisition, the Company focused on integrating and organizing its acquired businesses. These efforts included refining the establishment of Enterprise and Consumer segments in order to sharpen the Company’s focus on the unique opportunities in each sector of the drone industry. The Enterprise segment, which includes Teal Drones and Skypersonic, is focused on opportunities in the commercial sector, including military. Enterprise is building the infrastructure to manage drone fleets, fly and provide services remotely, and navigate confined industrial interior spaces and dangerous military environments. The Consumer segment, which includes Rotor Riot and Fat Shark, is focused on enthusiasts and hobbyists which are expected to increase as drones become more visible in our daily lives. Effective May 1, 2022, we began to manage our business operations through these business segments. The reportable segments were identified based on how our chief operating decision maker (“CODM”), which is a committee comprised of our Chief Executive Officer (“CEO”), Chief Operating Officer (“COO”) and our Chief Financial Officer (“CFO”), manages our business, makes resource allocation and operating decisions, and evaluates operating performance. See “Note 20 - Segment Reporting”. |
Note 1 _ The Business (Tables)
Note 1 – The Business (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
[custom:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumed3TableTextBlock] | Shares issued $ 6,351,076 Promissory note issued 1,753,000 Cash 250,000 Total Purchase Price $ 8,354,076 Assets acquired Cash 201,632 Accounts receivable 249,159 Other assets 384,232 Inventory 223,380 Brand name 1,144,000 Proprietary technology 272,000 Non-compete agreement 16,000 Total assets acquired 2,490,403 Liabilities assumed Accounts payable and accrued expenses 279,393 Customer deposits 25,194 Total liabilities assumed 304,587 Total fair value of net assets acquired 2,185,816 Goodwill $ 6,168,260 |
[custom:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumed4TableTextBlock] | Shares issued $ 2,716,012 Cash 75,000 Total Purchase Price $ 2,791,012 Assets acquired Cash 13,502 Accounts receivable 51,083 Other assets 12,950 Inventory 50,556 Proprietary technology 826,000 Non-compete agreement 65,000 Total assets acquired 1,019,091 Liabilities assumed Accounts payable and accrued expenses 1,054,997 Total liabilities assumed 1,054,997 Total fair value of net assets acquired (35,906 ) Goodwill $ 2,826,918 |
[custom:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumed5TableTextBlock] | Total Purchase Price – shares issued $ 10,011,279 Assets acquired Cash 11,364 Accounts receivable 47,964 Other current assets 15,085 Other assets 48,595 Inventory 1,253,755 Total assets acquired 1,376,763 Liabilities assumed Accounts payable and accrued expenses 1,143,899 Customer deposits 1,766,993 Notes payable 2,749,091 Total liabilities assumed 5,659,983 Total fair value of net assets acquired (4,283,220 ) Goodwill $ 14,294,499 |
Business Acquisition, Pro Forma Information [Table Text Block] | July 31, 2021 Red Cat Teal Consolidated Revenues $ 1,396,751 $ 312,047 $ 1,708,798 Net Loss $ (1,557,772 ) $ (1,165,987 ) $ (2,723,759 ) |
Note 2 _ Summary of Significa_3
Note 2 – Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | July 31, 2022 April 30, 2022 Series B Preferred Stock, as converted 822,230 822,230 Stock options 3,634,142 3,694,142 Warrants 1,539,999 1,539,999 Restricted stock 971,701 1,083,675 Total 6,968,072 7,140,046 |
Note 3 _ Marketable Securities
Note 3 – Marketable Securities (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
[custom:ScheduleOfAmortizedCostNetUnrealizedGainLossFairValues] | Cost Unrealized Gains (Losses) Fair Value Asset-backed securities $ 2,504,563 $ (35,324 ) $ 2,469,239 Corporate bonds 35,544,776 (1,305,388 ) 34,239,388 Total $ 38,049,339 $ (1,340,712 ) $ 36,708,627 |
[custom:ScheduleOfContractualMaturitiesFairValueMeasurements] | One Year or Less One to Over Five Years Total Asset-backed securities $ — $ 2,469,239 $ — $ 2,469,239 Corporate bonds 16,876,795 16,804,473 558,120 34,239,388 Total $ 16,876,795 $ 19,273,712 $ 558,120 $ 36,708,627 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Level 1 Level 2 Level 3 Total Asset-backed securities $ — $ 2,469,239 $ — $ 2,469,239 Corporate bonds — 34,239,388 — 34,239,388 Total $ — $ 36,708,627 $ — $ 36,708,627 |
Note 4 _ Inventories (Tables)
Note 4 – Inventories (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | July 31, 2022 April 30, 2022 Raw materials $ 2,396,265 $ 2,831,713 Work-in-process 524,811 173,112 Finished goods 1,663,760 891,045 Total $ 4,584,836 $ 3,895,870 |
Note 5 _ Other Current Assets (
Note 5 – Other Current Assets (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | July 31, 2022 April 30, 2022 Prepaid inventory $ 1,804,539 $ 1,707,085 Accrued interest income 334,654 385,730 Prepaid expenses 555,080 262,069 Total $ 2,694,273 $ 2,354,884 |
Note 7 _ Intangible Assets (Tab
Note 7 – Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | July 31, 2022 April 30, 2022 Gross Value Accumulated Amortization Net Value Accumulated Amortization Net Value Proprietary technology $ 1,098,000 (267,284 ) $ 830,716 $ (219,267 ) $ 878,733 Non-compete agreements 81,000 (36,417 ) 44,583 (29,667 ) 51,333 Customer relationships 39,000 (13,928 ) 25,072 (12,535 ) 26,465 Total finite-lived assets 1,218,000 (317,629 ) 900,371 (261,469 ) 956,531 Brand name 1,722,000 — 1,722,000 — 1,722,000 Trademark 20,000 — 20,000 — 20,000 Total indefinite-lived assets 1,742,000 — 1,742,000 — 1,742,000 Total intangible assets, net $ 2,960,000 (317,629 ) $ 2,642,371 $ (261,469 ) $ 2,698,531 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Ended: 2023 $ 168,478 2024 221,972 2025 197,638 2026 170,438 2027 141,845 Total $ 900,371 |
Schedule of Goodwill [Table Text Block] | Date Acquisition Goodwill January 2020 Rotor Riot $ 1,849,073 November 2020 Fat Shark 6,168,260 Balance at April 30, 2021 8,017,333 May 2021 Skypersonic 2,826,918 August 2021 Teal Drones 14,294,499 Balance at April 30, 2022 and July 31, 2022 $ 25,138,750 |
Note 8 _ Property and Equipme_2
Note 8 – Property and Equipment (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | July 31, 2022 April 30, 2022 Equipment and related $ 630,448 $ 509,376 Leasehold improvements 567,404 149,330 Furniture and fixtures 54,254 42,746 Accumulated depreciation (223,746 ) (189,762 ) Net carrying value $ 1,028,360 $ 511,690 |
Note 9 _ Operating Leases (Tabl
Note 9 – Operating Leases (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Schedule of Rent Expense [Table Text Block] | Location Monthly Rent Expiration South Salt Lake, Utah $ 22,000 December 2024 Orlando, Florida $ 4,692 May 2024 San Juan, Puerto Rico $ 2,226 June 2027 Troy, Michigan $ 2,667 May 2022 Orlando, Florida $ 1,690 September 2022 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Operating cash paid to settle lease liabilities $ 94,491 Weighted average remaining lease term (in years) 3.05 Weighted average discount rate 12% |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal Year Ended: 2023 $ 291,405 2024 403,878 2025 304,676 2026 76,619 2027 79,300 Thereafter 6,627 Total $ 1,162,505 |
Note 10 _ Debt Obligations (Tab
Note 10 – Debt Obligations (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Date of Transaction Purchased Receivables Payment to Company Transaction Fees Withholding Rate Fully Repaid In May 2020 $158,200 $140,000 $18,200 17 % October 2020 September 2020 $209,050 $185,000 $24,050 17 % May 2021 April 2021 $236,500 $215,000 $21,500 17 % January 2022 |
[custom:ScheduleOfDebtPaymentsDueTableTextBlock] | Fiscal 2023 $ 744,108 Fiscal 2024 572,139 Fiscal 2025 401,568 Total $ 1,717,815 Short term – through July 31, 2023 $ 882,096 Long term – thereafter $ 835,719 |
Note 14 _ Common Stock (Tables)
Note 14 – Common Stock (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Description of Shares Shares Issued Shares outstanding as of April 30, 2021 29,431,264 Conversion of Series A preferred stock 1,321,996 Conversion of Series B preferred stock 818,333 Exercise of warrants 66,666 Acquisition of Skypersonic on May 7, 2021, see Note 1 707,293 Acquisition of Teal Drones on August 31, 2021, see Note 1 3,588,272 Public offerings which generated gross proceeds of $76 million and net proceeds of approximately $70.1 million 17,333,334 Exercise of stock options 89,107 Vesting of restricted stock units to employees, net of shares withheld of 225,869 to pay taxes and 92,812 to repay a Note 225,637 Vesting of restricted stock units to Board of Directors 48,124 Vesting of restricted stock units to consultants 7,042 Shares issued for services 111,667 Shares outstanding as of April 30, 2022 53,748,735 Vesting of restricted stock units to employees, net of shares withheld of 33,267 to pay taxes and 9,000 to repay a Note 55,915 Vesting of restricted stock units to Board of Directors 12,032 Vesting of restricted stock units to consultants 1,760 Share outstanding as of July 31, 2022 53,818,442 |
Note 16 _ Warrants (Tables)
Note 16 – Warrants (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Note 16 Warrants | |
[custom:ScheduleOfStockholdersEquityNoteWarrantsOrRights1TextBlock] | Upon Issuance July 31, 2022 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 557,297 January 2021 675,000 $ 2,870,666 540,000 $ 1,143,122 |
Defined Benefit Plan, Assumptions [Table Text Block] | 2022 2021 Risk-free interest rate — 0.79 0.85 Expected dividend yield — — Expected term (in years) — 5.00 5.00 Expected volatility — 222.45 223.17 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Number of Shares Weighted-average Exercise Price per Share Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance as of April 30, 2021 873,332 1.50 4.62 2,218,263 Granted 733,333 $ 5.45 Exercised (66,666 ) 1.50 Outstanding as of April 30, 2022 1,539,999 3.38 3.89 $ 427,533 Granted — Exercised — Outstanding at July 31, 2022 1,539,999 $ 3.38 3.63 $ 540,466 |
Note 17 _ Share Based Awards (T
Note 17 – Share Based Awards (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
[custom:ScheduleOfAssumptionsUsed1TableTextBlock] | 2022 2021 Exercise Price — $ 2.41 2.60 Stock price on date of grant — 2.41 2.60 Risk-free interest rate — 0.47 1.57 Dividend yield — — Expected term (years) — 3.75 10.00 Volatility — 210.68 214.17 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of April 30, 2021 2,197,475 $ 1.79 8.68 4,943,870 Granted 1,681,000 2.58 Exercised (150,000 ) 2.49 Forfeited or expired (34,333 ) 2.11 Outstanding as of April 30, 2022 3,694,142 2.17 8.56 1,407,545 Granted — Exercised — Forfeited or expired (60,000 ) 2.55 Outstanding as of July 31, 2022 3,634,142 2.16 8.31 1,608,791 Exercisable as of July 31, 2022 2,312,975 $ 1.89 7.68 $ 1,334,291 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Restricted Stock Shares Weighted Average Grant-Date Fair Value Per Share Unvested and outstanding as of April 30, 2021 687,500 $ 2.69 Granted 995,659 2.55 Vested (599,484 ) 2.64 Forfeited — — Unvested and outstanding as of April 30, 2022 1,083,675 2.59 Granted — — Vested (111,974 ) 2.57 Forfeited — — Unvested and outstanding as of July 31, 2022 971,701 $ 2.59 |
Schedule of Deferred Compensation Arrangement with Individual, Share-Based Payments [Table Text Block] | 2022 2021 General and administrative $ 345,168 $ 219,601 Research and development 144,798 56,480 Operations 158,431 63,261 Sales and marketing 107,074 44,744 Total $ 755,471 $ 384,086 |
Note 18 _ Derivatives (Tables)
Note 18 – Derivatives (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
[custom:ScheduleOfAssumptionsUsed2TableTextBlock] | July 31, 2022 April 30, 2022 Risk-free interest rate 2.83 0.52 2.87 Expected dividend yield — — Expected term (in years) 3.17 3.50 3.42 4.50 Expected volatility 225.77 235.23 211.02 292.28 |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | July 31, 2022 April 30, 2022 Balance, beginning of period $ 1,607,497 $ 2,812,767 Additions — — Eliminated upon conversion of notes/exercise of warrants — (163,141 ) Changes in fair value 92,922 (1,042,129 ) Balance, end of period $ 1,700,419 $ 1,607,497 Changes in fair value primarily relate to changes in the Company’s stock price during the period with increases in the stock price increasing the liability and decreases in the stock price reducing the liability. |
Note 20 - Segment Reporting (Ta
Note 20 - Segment Reporting (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Note 20 - Segment Reporting | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the three months ended July 31, 2022 Enterprise Consumer Corporate Total Revenues $ 1,126,551 $ 1,942,720 $ — $ 3,069,271 Cost of goods sold 1,044,431 1,667,213 — 2,711,644 Gross margin 82,120 275,507 — 357,627 Operating expenses 1,661,363 495,028 1,899,732 4,056,123 Operating loss (1,579,243 ) (219,521 ) (1,899,732 ) (3,698,496 ) Other expenses, net 63,229 (124 ) 49,998 113,103 Net loss $ (1,642,472 ) $ (219,397 ) $ (1,949,730 ) $ (3,811,599 ) The following table sets forth specific asset categories which are reviewed by our CODM in the evaluation of operating segments: For the three months ended July 31, 2022 Enterprise Consumer Corporate Total Accounts receivable, net $ 688,244 $ 241,628 $ — $ 929,872 Inventory, net 3,486,487 1,098,349 — 4,584,836 Inventory deposits $ 1,158,195 $ 646,344 $ — $ 1,804,539 |
Fat Shark Acquisition - Summary
Fat Shark Acquisition - Summary of the purchase price and its related allocation (Details) - Fat Shark Acquisition | 3 Months Ended |
Jan. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Promissory note issued | $ 1,753,000 |
Cash | 250,000 |
Total Purchase Price | 8,354,076 |
Assets acquired | |
Cash | 201,632 |
Accounts receivable | 249,159 |
Other assets | 384,232 |
Inventory | 223,380 |
Brand name | 1,144,000 |
Proprietary technology | 272,000 |
Non-compete agreement | 16,000 |
Total assets acquired | 2,490,403 |
Liabilities assumed | |
Accounts payable and accrued expenses | 279,393 |
Customer deposits | 25,194 |
Total liabilities assumed | 304,587 |
Total fair value of net assets acquired | 2,185,816 |
Goodwill | $ 6,168,260 |
Skypersonic Acquisition - Summa
Skypersonic Acquisition - Summary of the purchase price and its related allocation (Details) - Skypersonic Acquisition | 3 Months Ended |
Jul. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Cash | $ 75,000 |
Total Purchase Price | 2,791,012 |
Assets acquired | |
Cash | 13,502 |
Accounts receivable | 51,083 |
Other assets | 12,950 |
Inventory | 50,556 |
Proprietary technology | 826,000 |
Non-compete agreement | 65,000 |
Total assets acquired | 1,019,091 |
Liabilities assumed | |
Accounts payable and accrued expenses | 1,054,997 |
Total liabilities assumed | 1,054,997 |
Total fair value of net assets acquired | (35,906) |
Goodwill | $ 2,826,918 |
Teal Drones Acquisition - Revis
Teal Drones Acquisition - Revised summary of the purchase price and its related allocation (Details) - Teal Drones Acquisition | Oct. 31, 2021 USD ($) |
Assets acquired | |
Cash | $ 11,364 |
Accounts receivable | 47,964 |
Other current assets | 15,085 |
Other assets | 48,595 |
Inventory | 1,253,755 |
Total assets acquired | 1,376,763 |
Liabilities assumed | |
Accounts payable and accrued expenses | 1,143,899 |
Customer deposits | 1,766,993 |
Notes payable | 2,749,091 |
Total liabilities assumed | 5,659,983 |
Total fair value of net assets acquired | (4,283,220) |
Goodwill | $ 14,294,499 |
Pro forma results of acquisitio
Pro forma results of acquisitions (Details) | 3 Months Ended |
Jul. 31, 2021 USD ($) | |
Series Of Individually Immaterial Business Acquisitions 1 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Revenues | $ 1,396,751 |
Net Loss | (1,557,772) |
Series Of Individually Immaterial Business Acquisitions 4 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Revenues | 312,047 |
Net Loss | (1,165,987) |
Series of Individually Immaterial Business Acquisitions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Revenues | 1,708,798 |
Net Loss | $ (2,723,759) |
Note 1 _ The Business (Details
Note 1 – The Business (Details Narrative) - USD ($) | 3 Months Ended | 8 Months Ended | |||||
Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Apr. 30, 2022 | Aug. 31, 2021 | May 07, 2021 | |
Fat Shark Acquisition | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
[custom:AcquisitionTransactionValue] | $ 8,354,076 | ||||||
[custom:AcquisitionStockIssuedShares] | 5,227,273 | ||||||
[custom:AcquisitionStockIssuedValue] | $ 6,351,076 | ||||||
[custom:AcquisitionSecuredPromissoryNoteIssuedPrincipalAmount] | 1,753,000 | ||||||
[custom:AcquisitionCashPaymentMade] | $ 250,000 | ||||||
Skypersonic Acquisition | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
[custom:AcquisitionStockIssuedShares] | 747,124 | ||||||
[custom:AcquisitionStockIssuedValue] | $ 3,291,356 | ||||||
[custom:AcquisitionShareConsiderationAcquiredValue] | $ 3,000,000 | ||||||
[custom:AcquisitionStockIssuedShares1] | 110,000 | ||||||
[custom:AcquisitionStockIssuedSharesTotal] | 857,124 | ||||||
[custom:CommonStockClosingPrice-0] | $ 3.84 | ||||||
[custom:OperatingCostsOfAcquireePaidForByCompanyPriorToAcquisitionClosing] | $ 75,000 | ||||||
[custom:ReductionInPurchasePriceFromWorkingCapitalDeficitOfAquiree] | $ 601,622 | ||||||
[custom:CancellationOfSharesHeldInEscrowAsResultOfReductionInAcquisitionPurchasePrice] | 149,829 | ||||||
Teal Drones Acquisition | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
[custom:AcquisitionStockIssuedShares] | 3,738,911 | ||||||
[custom:AcquisitionStockIssuedValue] | $ 10,431,562 | ||||||
[custom:AcquisitionShareConsiderationAcquiredValue] | 10,872,753 | ||||||
[custom:CommonStockClosingPrice-0] | $ 2.79 | ||||||
[custom:ReductionInPurchasePriceFromWorkingCapitalDeficitOfAquiree] | $ 438,058 | ||||||
[custom:CancellationOfSharesHeldInEscrowAsResultOfReductionInAcquisitionPurchasePrice] | 150,639 | ||||||
[custom:AcquisitionBasePurchasePrice] | 14,000,000 | ||||||
[custom:AcquisitionBasePurchasePriceReductionOfDebtAssumed] | 1,670,294 | ||||||
[custom:AcquisitionBasePurchasePriceReductionOfWorkingCapitalDeficitAdjustment] | $ 1,456,953 | ||||||
Debt Instrument, Face Amount | $ 1,670,294 | ||||||
Debt Instrument, Interest Rate During Period | 10% | ||||||
Debt Instrument, Periodic Payment | $ 49,275 |
Antidilutive securities exclude
Antidilutive securities excluded from computation of diluted net loss per share (Details) - shares | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Accounting Policies [Abstract] | ||
Series B Preferred Stock, as converted | 822,230 | 822,230 |
Stock options | 3,634,142 | 3,694,142 |
Warrants | 1,539,999 | 1,539,999 |
Restricted stock | 971,701 | 1,083,675 |
Total | 6,968,072 | 7,140,046 |
Note 2 _ Summary of Significa_4
Note 2 – Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Cash | $ 6,245,426 | $ 66,118,581 | $ 4,084,815 | $ 277,347 |
Interest Receivable, Current | 334,654 | 385,730 | ||
Increase (Decrease) in Operating Lease Liability | 796,976 | |||
Contract with Customer, Liability, Current | 233,515 | $ 437,930 | ||
[custom:ComprehensiveLossNetLossDifference] | 1,336,338 | 922 | ||
Unrealized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments | 1,340,712 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | $ 352 | $ 922 |
Amortized cost, net unrealized
Amortized cost, net unrealized gains or losses, and fair values (Details) | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Available For Sale Securities Amortized Cost [Member] | |
Asset-backed securities | $ 2,504,563 |
Corporate bonds | 35,544,776 |
Total | 38,049,339 |
Available For Sale Securities Fair Value [Member] | |
Asset-backed securities | 2,469,239 |
Corporate bonds | 34,239,388 |
Total | 36,708,627 |
Asset Backed Securities Net Unrealized Gain Losses [Member] | |
Debt Securities, Available-for-Sale, Unrealized Gain (Loss) | (35,324) |
Corporate Bonds Unrealized Gain Losses [Member] | |
Debt Securities, Available-for-Sale, Unrealized Gain (Loss) | (1,305,388) |
Available For Sale Securities Net Unrealized Gain Losses [Member] | |
Debt Securities, Available-for-Sale, Unrealized Gain (Loss) | $ (1,340,712) |
Contractual Maturities (Details
Contractual Maturities (Details) | Jul. 31, 2022 USD ($) |
Contractual Maturities Period 1 [Member] | |
Asset-backed securities | |
Corporate bonds | 16,876,795 |
Total | 16,876,795 |
Contractual Maturities Period 2 [Member] | |
Asset-backed securities | 2,469,239 |
Corporate bonds | 16,804,473 |
Total | 19,273,712 |
Contractual Maturities Period 3 [Member] | |
Asset-backed securities | |
Corporate bonds | 558,120 |
Total | 558,120 |
Contractual Maturities Total [Member] | |
Asset-backed securities | 2,469,239 |
Corporate bonds | 34,239,388 |
Total | $ 36,708,627 |
Fair Value Hierarchy (Details)
Fair Value Hierarchy (Details) | Jul. 31, 2022 USD ($) |
Available For Sale Securities Level 1 [Member] | |
Asset-backed securities | |
Corporate bonds | |
Total | |
Available For Sale Securities Level 2 [Member] | |
Asset-backed securities | 2,469,239 |
Corporate bonds | 34,239,388 |
Total | 36,708,627 |
Available For Sale Securities Level 3 [Member] | |
Asset-backed securities | |
Corporate bonds | |
Total | |
Available For Sale Securities Total [Member] | |
Asset-backed securities | 2,469,239 |
Corporate bonds | 34,239,388 |
Total | $ 36,708,627 |
Inventories (Details)
Inventories (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,396,265 | $ 2,831,713 |
Work-in-process | 524,811 | 173,112 |
Finished goods | 1,663,760 | 891,045 |
Total | $ 4,584,836 | $ 3,895,870 |
Note 4 _ Inventories (Details N
Note 4 – Inventories (Details Narrative) | Jul. 31, 2022 USD ($) |
Inventory Disclosure [Abstract] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 31,900,000 |
Other current assets (Details)
Other current assets (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid inventory | $ 1,804,539 | $ 1,707,085 |
Accrued interest income | 334,654 | 385,730 |
Prepaid expenses | 555,080 | 262,069 |
Total | $ 2,694,273 | $ 2,354,884 |
Note 6 _ Due From Related Par_2
Note 6 – Due From Related Party (Details Narrative) - USD ($) | 2 Months Ended | 4 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2022 | |
Note 6 Due From Related Party | |||
[custom:CashCompensationSubjectToTaxation] | $ 155,624 | ||
[custom:IncomeAssociatedWithStockCompensationSubjectToTaxation] | 1,413,332 | ||
[custom:NoteReceivableWithEmployeeRepresentingEstimatedTaxesOwedRelatedToStockCompensation] | $ 510,323 | ||
[custom:CommonStockWithheldByCompanyAppliedAgainstNoteShares] | 104,166 | ||
[custom:CommonStockWithheldByCompanyAppliedAgainstNoteAmount] | $ 280,832 | ||
[custom:SharesHeldAtTransferAgentUntilNoteReceivableRepayment] | 110,983 | ||
[custom:RestrictedStockScheduledToVestShares] | 20,833 | ||
[custom:RestrictedStockScheduledToVestSharesWithheldToBeAppliedAgainstNoteReceivable] | 3,000 | ||
[custom:PaymentsForTaxLiability] | $ 712,646 | ||
[custom:EstimatedTaxesOwedRelatedToStockCompensation] | 31,604 | ||
Income Tax Examination, Penalties and Interest Expense | 170,719 | ||
Due from Related Parties, Current | $ 31,853 | $ 31,853 | $ 13,404 |
[custom:FairValueOfStockHeldAtTransferAgent-0] | $ 393,356 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Intangible Assets Gross Carrying Amount [Member] | ||
Proprietary technology | $ 1,098,000 | |
Non-compete agreements | 81,000 | |
Customer relationships | 39,000 | |
Total finite-lived assets | 1,218,000 | |
Brand name | 1,722,000 | |
Trademark | 20,000 | |
Total indefinite-lived assets | 1,742,000 | |
Total intangible assets, net | 2,960,000 | |
Intangible Assets Accumulated Amortization [Member] | ||
Proprietary technology | (267,284) | $ (219,267) |
Non-compete agreements | (36,417) | (29,667) |
Customer relationships | (13,928) | (12,535) |
Total finite-lived assets | (317,629) | (261,469) |
Brand name | ||
Trademark | ||
Total indefinite-lived assets | ||
Total intangible assets, net | (317,629) | (261,469) |
Intangible Assets Net Carrying Value [Member] | ||
Proprietary technology | 830,716 | 878,733 |
Non-compete agreements | 44,583 | 51,333 |
Customer relationships | 25,072 | 26,465 |
Total finite-lived assets | 900,371 | 956,531 |
Brand name | 1,722,000 | 1,722,000 |
Trademark | 20,000 | 20,000 |
Total indefinite-lived assets | 1,742,000 | 1,742,000 |
Total intangible assets, net | $ 2,642,371 | $ 2,698,531 |
Expected amortization expense f
Expected amortization expense for the unamortized finite-lived intangible assets (Details) | Jul. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
$ 168,478 | |
221,972 | |
197,638 | |
170,438 | |
141,845 | |
$ 900,371 |
Composition of, and changes in
Composition of, and changes in goodwill (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 15 Months Ended | 16 Months Ended | |
Apr. 30, 2021 | Jul. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | |
Indefinite-Lived Intangible Assets [Line Items] | |||||
$ 25,138,750 | $ 25,138,750 | $ 25,138,750 | |||
Goodwill [Member] | |||||
Indefinite-Lived Intangible Assets [Line Items] | |||||
$ 6,168,260 | 14,294,499 | 2,826,918 | $ 1,849,073 | ||
$ 8,017,333 | $ 25,138,750 | $ 25,138,750 | $ 8,017,333 |
Property and equipment (Details
Property and equipment (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Property, Plant and Equipment [Abstract] | ||
Equipment and related | $ 630,448 | $ 509,376 |
Leasehold improvements | 567,404 | 149,330 |
Furniture and fixtures | 54,254 | 42,746 |
Accumulated depreciation | (223,746) | (189,762) |
Net carrying value | $ 1,028,360 | $ 511,690 |
Note 8 _ Property and Equipme_3
Note 8 – Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 28,272 |
Operating leases (Details)
Operating leases (Details) | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Operating Lease, Expense | $ 121,506 |
Operating Lease Location 1 [Member] | |
Operating Lease, Expense | 22,000 |
Operating Lease Location 2 [Member] | |
Operating Lease, Expense | 4,692 |
Operating Lease Location 3 [Member] | |
Operating Lease, Expense | 2,226 |
Operating Lease Location 4 [Member] | |
Operating Lease, Expense | 2,667 |
Operating Lease Location 5 [Member] | |
Operating Lease, Expense | $ 1,690 |
Supplemental information relate
Supplemental information related to operating leases (Details) | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Leases [Abstract] | |
Operating cash paid to settle lease liabilities | $ 94,491 |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 18 days |
Weighted average discount rate | 12% |
Future lease payment obligation
Future lease payment obligations (Details) | Jul. 31, 2022 USD ($) |
Leases [Abstract] | |
$ 291,405 | |
403,878 | |
304,676 | |
76,619 | |
79,300 | |
6,627 | |
$ 1,162,505 |
Note 9 _ Operating Leases (Deta
Note 9 – Operating Leases (Details Narrative) | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Leases [Abstract] | |
Operating Lease, Expense | $ 121,506 |
Short-Term Lease, Cost | $ 7,946 |
Agreements with Shopify (Detail
Agreements with Shopify (Details) - USD ($) | 10 Months Ended | 17 Months Ended | 24 Months Ended |
Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | |
May 2020 | |||
Short-Term Debt [Line Items] | |||
[custom:PurchasedReceivables] | $ 158,200 | ||
Proceeds from Sale of Productive Assets | 140,000 | ||
[custom:TransactionFees] | $ 18,200 | ||
[custom:WithholdingRate] | 17% | ||
September 2020 | |||
Short-Term Debt [Line Items] | |||
[custom:PurchasedReceivables] | $ 209,050 | ||
Proceeds from Sale of Productive Assets | 185,000 | ||
[custom:TransactionFees] | $ 24,050 | ||
[custom:WithholdingRate] | 17% | ||
April 2021 | |||
Short-Term Debt [Line Items] | |||
[custom:PurchasedReceivables] | $ 236,500 | ||
Proceeds from Sale of Productive Assets | 215,000 | ||
[custom:TransactionFees] | $ 21,500 | ||
[custom:WithholdingRate] | 17% |
Outstanding principal payments
Outstanding principal payments (Details) | Jul. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2024 | $ 572,139 |
Fiscal 2025 | 401,568 |
Total | 1,717,815 |
Short term – through July 31, 2023 | 882,096 |
Long term – thereafter | $ 835,719 |
Note 10 _ Debt Obligations (Det
Note 10 – Debt Obligations (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 10 Months Ended | 15 Months Ended | |||
Sep. 30, 2021 | Jul. 31, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Aug. 31, 2021 | Apr. 30, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||||||
Long-Term Debt, Gross | $ 1,256,632 | $ 1,256,632 | ||||||||
Accrued Liabilities, Current | $ 471,806 | $ 1,084,494 | $ 1,084,494 | $ 1,084,494 | $ 1,084,494 | 471,806 | $ 1,084,494 | |||
Debt Obligation 1 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1,670,294 | |||||||||
Debt Instrument, Interest Rate During Period | 10% | |||||||||
Debt Instrument, Periodic Payment | 49,275 | |||||||||
Debt Obligation 2 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Interest Rate During Period | 0.13% | |||||||||
[custom:ConvertibleNoteAgreementAmount] | $ 350,000 | |||||||||
Accrued Liabilities, Current | 537 | 537 | ||||||||
Debt Obligation 3 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Face Amount | 387,500 | |||||||||
Debt Instrument, Periodic Payment | 37,500 | |||||||||
[custom:DebtInstrumentPeriodicPaymentFinalPaymentDue] | 12,500 | |||||||||
Debt Obligation 4 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
[custom:SBAPPPLoanAmountsReceived] | 300,910 | |||||||||
[custom:SBAPPPLoanPrincipalBalanceForgiven] | 300,910 | |||||||||
[custom:SBAPPPLoanAccruedInterestForgiven] | 3,001 | |||||||||
Debt Obligation 6 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Interest Rate During Period | 8.25% | |||||||||
Debt Instrument, Periodic Payment | $ 3,595 | |||||||||
Long-Term Debt, Gross | 93,864 | $ 102,599 | $ 102,599 | $ 102,599 | $ 102,599 | 93,864 | $ 102,599 | |||
[custom:LeaseholdImprovementAgreementFundsReceived] | 120,000 | |||||||||
Debt Obligation 7 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Face Amount | 38,758 | |||||||||
Debt Obligation 8 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Periodic Payment | $ 656 | |||||||||
Long-Term Debt, Gross | $ 17,317 | $ 17,317 | ||||||||
[custom:FinancingAgreementFundingOfPurchaseOfFixedAsset] | $ 24,383 | |||||||||
Debt Obligation 9 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
[custom:FundsAdvancedPursuantToAgreement] | 75,444 | $ 100,000 | ||||||||
[custom:TransactionFees] | $ 2,444 | $ 6,900 |
Note 11 _ Due to Related Party
Note 11 – Due to Related Party (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 16 Months Ended | 22 Months Ended | 28 Months Ended | |||
Oct. 31, 2021 | Sep. 30, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2021 | Apr. 30, 2022 | Jul. 31, 2022 | |
Due To Related Party 1 [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
[custom:PromissoryNoteOriginalPrincipalAmount] | $ 1,753,000 | |||||||
Debt Instrument, Interest Rate During Period | 3% | |||||||
[custom:RefundRelatedToPrepaidInventoryIssuedByCompany] | $ 132,200 | |||||||
[custom:DebtInstrumentOutstandingBalancePayment] | $ 1,620,800 | |||||||
[custom:DebtInstrumentOutstandingAccruedInterestPayment] | $ 45,129 | |||||||
Due To Related Party 2 [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
[custom:PromissoryNoteOriginalPrincipalAmount] | $ 175,000 | |||||||
Debt Instrument, Interest Rate During Period | 4.75% | |||||||
[custom:DebtInstrumentOutstandingBalancePayment] | $ 85,172 | |||||||
[custom:DebtInstrumentOutstandingAccruedInterestPayment] | $ 12,942 | |||||||
[custom:LineOfCreditObligationAssumedInConnectionWithAcquisition] | $ 47,853 | |||||||
[custom:DebtInstrumentInterestRateDuringPeriod1] | 6.67% | |||||||
Due to Other Related Parties, Current | $ 40,057 | $ 37,196 | ||||||
Due To Related Party 3 [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debt Instrument, Interest Rate During Period | 5% | |||||||
[custom:AdvancesReceivedFromRelatedParty] | $ 79,000 |
Note 12 _ Convertible Notes (De
Note 12 – Convertible Notes (Details Narrative) - USD ($) | 2 Months Ended | 3 Months Ended | 4 Months Ended | 7 Months Ended | 17 Months Ended | 18 Months Ended | |
Oct. 31, 2020 | Jul. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Jul. 31, 2022 | |
Convertible Debenture 2019 Notes [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
[custom:ConvertibleNoteIssuedAccreditedInvestor] | $ 300,000 | ||||||
[custom:ConvertibleNoteIssuedDirector] | $ 125,000 | ||||||
[custom:ConvertibleNoteIssuedChiefExecutiveOfficer] | $ 25,000 | ||||||
Debt Instrument, Interest Rate During Period | 12% | ||||||
[custom:ConvertibleNotesPrincipalConversion] | $ 450,000 | ||||||
[custom:ConvertibleNotesAccruedInterestConversion] | $ 45,204 | ||||||
[custom:ConvertibleNotesConversionShares] | 710,444 | ||||||
Convertible Debenture 2020 Notes [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Debt Instrument, Interest Rate During Period | 12% | ||||||
[custom:ConvertiblePromissoryNotePrincipalAmount] | $ 600,000 | ||||||
[custom:WarrantsToPurchaseCommonStock] | 399,998 | ||||||
[custom:DerivativeLiabilityInitialValue] | $ 728,587 | ||||||
[custom:DerivativeLiabilityInitialValueRelatedToDerivativeFeaturesOfNotes] | 460,588 | ||||||
[custom:DerivativeLiabilityInitialValueRelatedToDerivativeFeaturesOfWarrants] | 267,999 | ||||||
[custom:DebtDiscountToReduceInitialCarryingValueOfNotes] | 580,000 | ||||||
[custom:DebtDiscountAppliedAgainstTransactionFees] | $ 20,000 | ||||||
[custom:ExcessLiabilityOverNetProceedsRecognizedAsDerivativeExpense] | $ 148,587 | ||||||
[custom:WarrantsOutstanding-0] | 266,666 | ||||||
Derivative Liability | $ 557,297 | ||||||
Convertible Debenture 2021 Notes [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Debt Instrument, Interest Rate During Period | 12% | ||||||
[custom:ConvertiblePromissoryNotePrincipalAmount] | $ 500,000 | ||||||
[custom:WarrantsToPurchaseCommonStock] | 675,000 | ||||||
[custom:DerivativeLiabilityInitialValue] | $ 4,981,701 | ||||||
[custom:DerivativeLiabilityInitialValueRelatedToDerivativeFeaturesOfNotes] | 2,111,035 | ||||||
[custom:DerivativeLiabilityInitialValueRelatedToDerivativeFeaturesOfWarrants] | 2,870,666 | ||||||
[custom:DebtDiscountToReduceInitialCarryingValueOfNotes] | $ 500,000 | ||||||
[custom:ExcessLiabilityOverNetProceedsRecognizedAsDerivativeExpense] | $ 4,481,701 | ||||||
[custom:WarrantsOutstanding-0] | 540,000 | ||||||
Derivative Liability | $ 1,143,122 |
Note 13 _ Income Taxes (Details
Note 13 – Income Taxes (Details Narrative) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ (31,310,655) | $ (27,499,056) |
Deferred Tax Assets, Operating Loss Carryforwards | $ 5,790,500 | $ 5,087,500 |
Summary of shares of common sto
Summary of shares of common stock issued (Details) - Common Stock [Member] - shares | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shares, Outstanding, Beginning Balance | 53,748,735 | 29,431,264 | 29,431,264 |
Conversion of Series A preferred stock | 1,321,996 | ||
Conversion of Series B preferred stock | 818,333 | ||
Exercise of warrants | 66,666 | 66,666 | |
Acquisition of Skypersonic on May 7, 2021, see Note 1 | 685,321 | 707,293 | |
Acquisition of Teal Drones on August 31, 2021, see Note 1 | 3,588,272 | ||
Public offerings which generated gross proceeds of $76 million and net proceeds of approximately $70.1 million | 17,333,334 | 17,333,334 | |
Exercise of stock options | 89,107 | ||
Vesting of restricted stock units to employees, net of shares withheld of 33,267 to pay taxes and 9,000 to repay a Note | 55,915 | 225,637 | |
Vesting of restricted stock units to Board of Directors | 12,032 | 48,124 | |
Vesting of restricted stock units to consultants | 1,760 | 7,042 | |
Shares issued for services | 91,667 | 111,667 | |
Shares, Outstanding, Ending Balance | 53,818,442 | 48,489,085 | 53,748,735 |
Note 14 _ Common Stock (Details
Note 14 – Common Stock (Details Narrative) - $ / shares | Jul. 31, 2022 | Apr. 30, 2022 |
Equity [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Note 15 _ Preferred Stock (Deta
Note 15 – Preferred Stock (Details Narrative) - shares | 3 Months Ended | |
Jul. 31, 2022 | Apr. 30, 2022 | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Outstanding | 158,704 | |
Series A Preferred Stock 2 [Member] | ||
Class of Stock [Line Items] | ||
[custom:StockIssuedDuringPeriodSharesCommonStockIssuedUponConversionOfPreferredStock] | 1,321,996 | |
[custom:StockIssuedDuringPeriodSharesCommonStockIssuableUponConversionOfPreferredStock] | 822,230 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Outstanding | 986,676 | 986,676 |
Summary of warrants issued and
Summary of warrants issued and fair values (Details) - USD ($) | Jul. 31, 2022 | Jan. 31, 2021 | Oct. 31, 2020 |
Warrants Issued 1 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Temporary Equity, Shares Issued | 266,666 | 399,998 | |
Warrants and Rights Outstanding | $ 557,297 | $ 267,999 | |
Warrants Issued 2 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Temporary Equity, Shares Issued | 540,000 | 675,000 | |
Warrants and Rights Outstanding | $ 1,143,122 | $ 2,870,666 |
Assumptions used to estimate fa
Assumptions used to estimate fair value of stock warrants granted (Details) - Warrant Assumptions Used [Member] | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.85% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.79% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm2] | 5 years | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 223.17% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 222.45% |
Changes in warrants outstanding
Changes in warrants outstanding (Details) - Warrants Outstanding 1 [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2022 | |
Class of Warrant or Right [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 1,539,999 | 873,332 | 1,539,999 | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 3.38 | $ 1.50 | $ 3.38 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 3 years 7 months 17 days | 3 years 10 months 20 days | 4 years 7 months 13 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 540,466 | $ 2,218,263 | $ 427,533 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 733,333 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.45 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | (66,666) | |||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.50 |
Note 16 _ Warrants (Details Nar
Note 16 – Warrants (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | |||
Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Oct. 31, 2020 | Apr. 30, 2021 | |
Note 16 Warrants | |||||
[custom:WarrantsIssuedExercisePrice] | $ 5.625 | $ 5 | $ 1.50 | ||
[custom:ProceedsReceivedFromExerciseOfWarrants] | $ 99,999 | $ 201,249 | |||
[custom:ExerciseOfWarrantsShares] | 66,666 | 201,666 | |||
[custom:ReductionInDerivativeLiabilityResultingFromExerciseOfWarrants] | $ 163,141 | $ 694,305 | |||
[custom:WarrantsToPurchaseSharesIssued] | 533,333 | 200,000 |
Assumptions used to calculate f
Assumptions used to calculate fair value of options granted (Details) - Options Assumptions Used [Member] - $ / shares | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice1-0] | $ 2.60 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price | 2.41 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate1-0] | 2.60 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate-0] | $ 2.41 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.57% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.47% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 months | |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm2] | 10 years | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 214.17% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 210.68% |
Summary of activity under the P
Summary of activity under the Plan (Details) - Options 1 [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2020 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 3,634,142 | 3,694,142 | 2,197,475 | ||
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 2.16 | $ 2.17 | $ 1.79 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 3 months 21 days | 8 years 6 months 21 days | 8 years 8 months 4 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,608,791 | $ 4,943,870 | $ 1,407,545 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,681,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.58 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | (150,000) | ||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2.49 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (60,000) | (34,333) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 2.55 | $ 2.11 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 2,312,975 | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 1.89 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 8 months 4 days | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 1,334,291 |
Summary of restricted stock act
Summary of restricted stock activity under the Plan (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | Apr. 30, 2020 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockUnvestedAndOutstandingNumber-0] | 971,701 | 1,083,675 | 687,500 | |
[custom:SharebasedCompensationSharesRestrictedStockUnvestedAndOutstandingWeightedAverageExercisePrice-0] | $ 2.59 | $ 2.59 | $ 2.69 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodGross] | 995,659 | |||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodWeightedAverageGrantDateFairValue] | $ 2.55 | |||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNumberVestedInPeriod] | (111,974) | (599,484) | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockNumberVestedInPeriodWeightedAverageGrantDateFairValue] | $ 2.57 | $ 2.64 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNonvestedOptionsForfeitedNumberOfShares] | ||||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice] |
Stock compensation expense (Det
Stock compensation expense (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
General and administrative | $ 345,168 | $ 219,601 |
Research and development | 144,798 | 56,480 |
Operations | 158,431 | 63,261 |
Sales and marketing | 107,074 | 44,744 |
Total | $ 755,471 | $ 384,086 |
Note 17 _ Share Based Awards (D
Note 17 – Share Based Awards (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
[custom:NumberOfSharesIssuableInConnectionWithAwardsUnderPlanMaximum] | 8,750,000 | |
[custom:UnrecognizedStockBasedCompensationExpenseRelatedToUnvestedStockOptions] | $ 2,760,989 | $ 1,592,188 |
[custom:StockCompensationExpensePertainingToOptions] | $ 458,023 | $ 187,494 |
Assumptions used to determine f
Assumptions used to determine fair value of derivative warrant liability upon settlement of derivative liability (Details) - Derivatives Assumptions Used [Member] | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 2.83% | 2.87% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.52% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 3 years 2 months 1 day | 3 years 5 months 1 day |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm2] | 3 years 6 months | 4 years 6 months |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 225.77% | 211.02% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 235.23% | 292.28% |
Changes in the derivative liabi
Changes in the derivative liability (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Balance, beginning of period | $ 1,607,497 | $ 2,812,767 |
Additions | ||
Eliminated upon conversion of notes/exercise of warrants | (163,141) | |
Changes in fair value | 92,922 | (1,042,129) |
Balance, end of period | $ 1,700,419 | $ 1,607,497 |
Note 18 _ Derivatives (Details
Note 18 – Derivatives (Details Narrative) | Jul. 31, 2022 shares |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Class of Warrant or Right, Outstanding | 806,666 |
Note 19 - Related-Party Trans_2
Note 19 - Related-Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 7 Months Ended |
Apr. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | |
Director 1 [Member] | |||
Related Party Transaction [Line Items] | |||
[custom:ConsultingAgreementMonthlyPayments] | $ 10,000 | $ 6,000 | |
[custom:OptionsToPurchaseCommonStockIssuedPursuantToConsultingAgreement] | 150,000 | ||
[custom:OptionsToPurchaseCommonStockIssuedPursuantToConsutlingAgreementPurchasePrice] | $ 2.51 | ||
Employee [Member] | |||
Related Party Transaction [Line Items] | |||
[custom:NoteAgreementPrincipalAmount] | $ 510,323 |
Information by reportable segme
Information by reportable segment and specific asset categories reviewed by CODM in evaluation of operating segments (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Revenues | $ 3,069,271 | $ 1,396,751 | |
Gross margin | 357,627 | 102,404 | |
Operating expenses | 4,056,123 | 1,782,016 | |
Other expenses, net | (113,103) | 121,840 | |
Net loss | (3,811,599) | $ (1,557,772) | |
Inventory, net | 4,584,836 | $ 3,895,870 | |
Other Segments [Member] | |||
Revenues | 1,126,551 | ||
Cost of goods sold | 1,044,431 | ||
Gross margin | 82,120 | ||
Operating expenses | 1,661,363 | ||
Operating loss | (1,579,243) | ||
Other expenses, net | 63,229 | ||
Net loss | (1,642,472) | ||
Accounts receivable, net | 688,244 | ||
Inventory, net | 3,486,487 | ||
Inventory deposits | 1,158,195 | ||
Consumer [Member] | |||
Revenues | 1,942,720 | ||
Cost of goods sold | 1,667,213 | ||
Gross margin | 275,507 | ||
Operating expenses | 495,028 | ||
Operating loss | (219,521) | ||
Other expenses, net | (124) | ||
Net loss | (219,397) | ||
Accounts receivable, net | 241,628 | ||
Inventory, net | 1,098,349 | ||
Inventory deposits | 646,344 | ||
Corporate Segment [Member] | |||
Revenues | |||
Cost of goods sold | |||
Gross margin | |||
Operating expenses | 1,899,732 | ||
Operating loss | (1,899,732) | ||
Other expenses, net | 49,998 | ||
Net loss | (1,949,730) | ||
Accounts receivable, net | |||
Inventory, net | |||
Inventory deposits | |||
Corporate and Other [Member] | |||
Revenues | 3,069,271 | ||
Cost of goods sold | 2,711,644 | ||
Gross margin | 357,627 | ||
Operating expenses | 4,056,123 | ||
Operating loss | (3,698,496) | ||
Other expenses, net | 113,103 | ||
Net loss | (3,811,599) | ||
Accounts receivable, net | 929,872 | ||
Inventory, net | 4,584,836 | ||
Inventory deposits | $ 1,804,539 |
Note 21 _ Subsequent Events (De
Note 21 – Subsequent Events (Details Narrative) | 1 Months Ended |
Sep. 02, 2022 USD ($) | |
Subsequent Events [Abstract] | |
[custom:InventoryPurchaseOrderAmount] | $ 3,100,000 |