Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2023 | Sep. 18, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 | 88-0490034 | |
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 | 55,642,006 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Current assets | ||
Cash | $ 937,756 | $ 3,173,649 |
Marketable securities | 7,922,392 | 12,814,038 |
Accounts receivable, net | 720,642 | 719,862 |
Inventory | 9,376,444 | 8,920,573 |
Other | 3,020,708 | 1,263,735 |
Current assets of discontinued operations | 4,545,370 | 5,283,155 |
Total current assets | 26,523,312 | 32,175,012 |
Goodwill | 17,012,832 | 17,012,832 |
Intangible assets, net | 7,105,636 | 7,323,004 |
Property and equipment, net | 2,554,411 | 2,650,358 |
Other | 303,180 | 303,180 |
Operating lease right-of-use assets | 554,064 | 620,307 |
Long-term assets of discontinued operations | 97,443 | 108,397 |
Total long-term assets | 27,627,566 | 28,018,078 |
TOTAL ASSETS | 54,150,878 | 60,193,090 |
Current liabilities | ||
Accounts payable | 822,674 | 1,392,550 |
Accrued expenses | 448,229 | 409,439 |
Debt obligations - short term | 936,150 | 922,138 |
Customer deposits | 45,123 | 155,986 |
Operating lease liabilities | 292,852 | 281,797 |
Warrant derivative liability | 561,685 | 588,205 |
Current liabilities of discontinued operations | 471,199 | 1,010,501 |
Total current liabilities | 3,577,912 | 4,760,616 |
Operating lease liabilities | 301,710 | 379,466 |
Debt obligations - long term | 249,568 | 401,569 |
Long-term liabilities of discontinued operations | 28,290 | 41,814 |
Total long-term liabilities | 579,568 | 822,849 |
Stockholders' equity | ||
Series B preferred stock - shares authorized 4,300,000; outstanding 4,676 and 986,676 | 47 | 9,867 |
Common stock - shares authorized 500,000,000; outstanding 55,541,875 and 54,568,065 | 55,541 | 54,568 |
Additional paid-in capital | 110,905,033 | 109,993,100 |
Accumulated deficit | (60,397,141) | (54,586,793) |
Accumulated other comprehensive loss | (570,082) | (861,117) |
Total stockholders' equity | 49,993,398 | 54,609,625 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 54,150,878 | $ 60,193,090 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Jul. 31, 2023 | Apr. 30, 2023 |
Common Stock, Shares Authorized | 500,000,000 | |
Common Stock, Shares, Outstanding | 55,541,875 | 54,568,065 |
Series B Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 4,300,000 | |
Preferred Stock, Shares Outstanding | 4,676 | 986,676 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 1,748,129 | $ 1,126,551 |
Cost of goods sold | 1,573,464 | 1,044,431 |
Gross margin | 174,665 | 82,120 |
Operating expenses | ||
Operations | 707,903 | 886,303 |
Research and development | 1,138,127 | 449,964 |
Sales and marketing | 986,908 | 406,953 |
General and administrative | 1,443,156 | 1,062,404 |
Stock based compensation | 911,606 | 755,471 |
Total operating expenses | 5,187,700 | 3,561,095 |
Operating loss | (5,013,035) | (3,478,975) |
Other (income) expense | ||
Change in fair value of derivative liability | (26,520) | 92,922 |
Investment loss (income), net | 239,490 | (130,296) |
Interest expense | 21,857 | 35,687 |
Other, net | 319,913 | 114,914 |
Other (income) expense | 554,740 | 113,227 |
Net loss from continuing operations | (5,567,775) | (3,592,202) |
Loss from discontinued operations | (242,573) | (219,397) |
Net loss | $ (5,810,348) | $ (3,811,599) |
Loss per share - basic and diluted | ||
Continuing operations | $ (0.11) | $ (0.07) |
Discontinued operations | ||
Loss per share - basic and diluted | $ (0.11) | $ (0.07) |
Weighted average shares outstanding - basic and diluted | 54,935,339 | 53,778,154 |
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, 2022 | $ 9,867 | $ 53,749 | $ 106,821,384 | $ (27,499,056) | $ (1,470,272) | $ 77,915,672 | |
Shares, Outstanding, Beginning Balance at Apr. 30, 2022 | 986,676 | 53,748,735 | |||||
Stock based compensation | 755,471 | 755,471 | |||||
Vesting of restricted stock units | $ 69 | (84,145) | (84,076) | ||||
[custom:VestingOfRestrictedStockUnitsShares] | 69,707 | ||||||
Unrealized gain on marketable securities | 133,582 | 133,582 | |||||
Currency translation adjustments | 352 | 352 | |||||
Net loss | (3,811,599) | (3,811,599) | |||||
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 | |||||
Beginning balance, value at Apr. 30, 2023 | $ 9,867 | $ 54,568 | 109,993,100 | (54,586,793) | (861,117) | 54,609,625 | |
Shares, Outstanding, Beginning Balance at Apr. 30, 2023 | 986,676 | 54,568,065 | |||||
Stock based compensation | 911,606 | 911,606 | |||||
Vesting of restricted stock units | $ 155 | (8,675) | (8,520) | ||||
[custom:VestingOfRestrictedStockUnitsShares] | 155,476 | ||||||
Unrealized gain on marketable securities | 289,389 | 289,389 | |||||
Currency translation adjustments | 1,646 | 1,646 | |||||
Net loss | (5,810,348) | (5,810,348) | |||||
Conversion of preferred stock | $ (9,820) | $ 818 | 9,002 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (982,000) | 818,334 | |||||
Ending balance, value at Jul. 31, 2023 | $ 47 | $ 55,541 | $ 110,905,033 | $ (60,397,141) | $ (570,082) | $ 49,993,398 | |
Shares, Outstanding, Ending Balance at Jul. 31, 2023 | 4,676 | 55,541,875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (5,810,348) | $ (3,811,599) |
Net loss from discontinued operations | (242,573) | (219,397) |
Net loss from continuing operations | (5,567,775) | (3,592,202) |
Adjustments to reconcile net loss to net cash from operations: | ||
Stock based compensation - options | 629,426 | 458,023 |
Stock based compensation - restricted units | 282,180 | 297,448 |
Amortization of intangible assets | 217,368 | 56,160 |
Realized loss from sale of marketable securities | 292,636 | 10,675 |
Depreciation | 101,001 | 28,272 |
Change in fair value of derivative | (26,520) | 92,922 |
Changes in operating assets and liabilities | ||
Accounts receivable | (780) | (257,301) |
Inventory | (455,871) | (273,439) |
Other, principally inventory deposits | (1,756,973) | (214,316) |
Operating lease right-of-use assets and liabilities | (458) | 11,139 |
Customer deposits | (110,863) | (116,237) |
Accounts payable | (569,876) | (154,139) |
Accrued expenses | 40,436 | (161,767) |
Net cash used in operating activities | (6,926,069) | (3,814,762) |
Cash Flows from Investing Activities | ||
Purchases of property and equipment | (5,054) | (544,942) |
Proceeds from sale of marketable securities | 4,888,399 | 9,094,592 |
Purchases of marketable securities | (889,943) | |
Net cash provided by investing activities of continuing operations | 4,883,345 | 7,659,707 |
Cash Flows from Financing Activities | ||
Payments under related party obligations | (2,861) | |
Payments under debt obligations | (137,989) | (212,789) |
Payments of taxes related to equity awards | (8,520) | (469,631) |
Net cash used in financing activities of continuing operations | (146,509) | (685,281) |
Discontinued operations | ||
Operating activities | (356,109) | (999,053) |
Investing activities | ||
Financing activities | 237,814 | |
Net cash used in discontinued operations | (118,295) | (999,053) |
Net (decrease) increase in Cash | (2,307,528) | 2,160,611 |
Cash, beginning of period | 3,260,305 | 4,084,815 |
Cash, end of period | 952,777 | 6,245,426 |
Cash paid for interest | 22,590 | 36,082 |
Cash paid for income taxes | ||
Non-cash transactions | ||
Unrealized gain on marketable securities | 289,389 | 133,582 |
Conversion of preferred stock into common stock | 9,820 | |
Shares withheld as payment of note receivable | 18,449 | |
Taxes related to net share settlement of equity awards | $ 15,982 |
Note 1 _ The Business
Note 1 – The Business | 3 Months Ended |
Jul. 31, 2023 | |
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. Beginning in January 2020, the Company expanded the scope of its drone products and services through four acquisitions, including: A. In January 2020, the Company acquired Rotor Riot, a provider of First Person View (FPV) drones and equipment, primarily to the consumer marketplace. The purchase price was $1,995,114. B. In November 2020, the Company acquired Fat Shark Holdings, a provider of FPV video goggles to the drone industry. The purchase price was $8,354,076. C. In May 2021, the Company acquired Skypersonic which provides hardware and software solutions that enable drones to complete inspection services in locations where GPS is not available, yet still record and transmit data even while being operated from thousands of miles away. The purchase price was $2,791,012. D. In August 2021, the Company acquired Teal Drones, a leader in commercial and government UAV (Unmanned Aerial Vehicles) technology. The purchase price was $10,011,279. Following the Teal acquisition in August 2021, we focused on integrating and organizing these businesses. Effective May 1, 2022, we established the Enterprise and Consumer segments in order to sharpen our focus on the unique opportunities in each sector. Enterprise's initial strategy was to provide UAV's, primarily drones, to commercial enterprises, including the military, to navigate dangerous military environments and confined industrial and commercial interior spaces. Subsequently, Enterprise narrowed its near-term focus on the military and other government agencies. Skypersonic's technology has been re-focused on military applications and its operations consolidated into Teal. The Consumer segment, which includes Fat Shark and Rotor Riot, is focused on hobbyists and enthusiasts which are expected to increase as drones become more visible in our daily lives. The reportable segments were established 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 21 - Segment Reporting”. In November 2022, we entered into an agreement to sell our Consumer segment to Unusual Machines, Inc. (or “Unusual Machines” or “UM”). The adjusted sale price is $20 million, including $3 million in cash, at closing, and $17 million in securities of Unusual Machines. The agreement reflects the Company's decision to focus its efforts and capital on military and defense where it believes that there are more opportunities to create long term shareholder value. The closing of the transaction is contingent upon Unusual Machines completing (i) an initial public offering that raises sufficient capital to close the transaction, and (ii) a listing on a public stock exchange such as the NYSE or Nasdaq. |
Note 2 _ Summary of Significant
Note 2 – Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Note 2 – Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Accounting Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned operating subsidiaries which include Teal Drones, Skypersonic, Rotor Riot, and Fat Shark. Intercompany transactions and balances have been eliminated. As further described in Note 3, we presently expect to sell our Consumer segment, which includes Rotor Riot and Fat Shark, within the next twelve months. Accordingly, the Consumer segment businesses are characterized as Discontinued Operations in these financial statements. The assets and liabilities of these entities have been presented separately in the Consolidated Balance Sheet as discontinued operations. Similarly, the operating results and cash flows of discontinued operations are separately stated in those respective financial statements. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in these financial statements include those used to (i) determine stock-based compensation, (ii) complete purchase price accounting for acquisitions, (iii) accounting for derivatives, (iv) reserves and allowances related to accounts receivable and inventory, and (v) the evaluation of long-term assets, including goodwill, for impairment. Cash and Cash Equivalents Marketable Securities We have elected to present accrued interest income separately from marketable securities on our consolidated balance sheets. Accrued interest income was $82,318 and $151,671 as of July 31, 2023 and April 30, 2023, respectively, and was included in other current assets. We did not write off any accrued interest income during the three months ended July 31, 2023 and 2022. Accounts Receivable, net Accounts receivable are recorded at the invoiced amount less allowances for doubtful accounts. The Company's estimate of the allowance for doubtful accounts is based on a multitude of factors, including historical bad debt levels for its customer base, past experience with a specific customer, the economic environment, and other factors. Accounts receivable balances are written off against the allowance when it is probable that the receivable will not be collected. Inventories Inventories, which consist of raw materials, work-in-process, and finished goods, are stated at the lower of cost or net realizable value, and are measured using the first-in, first-out method. Cost components include direct materials and direct labor, as well as in-bound freight. At each balance sheet date, the Company evaluates the net realizable value of its inventory using various reference measures including current product selling prices, as well as evaluating for excess quantities and obsolescence. Goodwill and Long-lived Assets ASC 350, Intangibles – Goodwill and Other, The estimate of fair value of a reporting unit is computed using either an income approach, a market approach, or a combination of both. Under the income approach, we utilize the discounted cash flow method to estimate the fair value of a reporting unit. Significant assumptions inherent in estimating the fair values include the estimated future cash flows, growth assumptions for future revenues (including gross margin, operating expenses, and capital expenditures), and a rate used to discount estimated future cash flow projections to their present value based on estimated weighted average cost of capital (i.e., the selected discount rate). Our assumptions are based on historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management’s plans. Under the market approach, fair value is derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate and consider risk profiles, size, geography, and diversity of products and services. Goodwill for Rotor Riot relates to its strong social media presence including more than 200,000 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 Teal is ascribed to its existing relationship with several 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. Property and equipment Property and equipment is stated at cost less accumulated depreciation which is calculated using the straight-line method over the estimated useful life of the asset. The estimated useful lives of our property and equipment are generally: (i) furniture and fixtures - seven years, (ii) equipment and related - two to five years, and (iii) leasehold improvements - 15 years. Leases 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 financing. 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 Research and Development Income Taxes Recent Accounting Pronouncements Management does not believe that recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. Foreign Currency Comprehensive Loss Stock-Based Compensation tock options are valued using the estimated grant-date fair value method of accounting in accordance with ASC Topic 718, Compensation – Stock Compensation. Fair value is determined based on the Black-Scholes Model using inputs reflecting our estimates of expected volatility, term and future dividends. We recognize forfeitures as they occur. The fair value of restricted stock is based on our stock price on the date of grant. Compensation costs is recognized on a straight-line basis over the service period which is the vesting term. Basic and Diluted Net Loss per Share July 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,884,017 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 842,701 781,060 Total 9,270,613 7,928,098 Related Parties Segment Reporting Since January 2020, we have acquired four separate businesses operating in various aspects of the drone industry. Liquidity and Going Concern The Company has never been profitable and its net losses have been increasing related to acquisitions, as well as costs incurred to pursue its long-term growth strategy. During the three months ended July 31, 2023, the Company incurred a net loss of $ 5,810,348 6,926,069 22,945,400 |
Note 3 _ Discontinued Operation
Note 3 – Discontinued Operations – Sale of Consumer Segment | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Note 3 – Discontinued Operations – Sale of Consumer Segment | Note 3 – Discontinued Operations – Sale of Consumer Segment In November 2022, the Company agreed to the sale of its consumer segment consisting of Rotor Riot, (“RR”), and Fat Shark Holdings (“FS”). The closing of the transaction is subject to the successful initial public offering by the buyer, Unusual Machines, Inc. The Company has concluded that the transaction is presently likely to close within the next twelve months. Accordingly, the Consumer segment has been classified as Discontinued Operations and reported in accordance with the applicable accounting standards. See Note 22 for additional information regarding the transaction. Set forth below are the results of operations for: Three months ended July 31, 2023 2022 Revenues $ 1,869,219 $ 1,942,720 Cost of goods sold 1,385,116 1,667,213 Gross margin 484,103 275,507 Operating expenses Operations 209,980 161,783 Research and development 46,249 82,806 Sales and marketing 404,104 195,278 General and administrative 43,606 55,161 Total operating expenses 703,939 495,028 Operating loss (219,836 ) (219,521 ) Other (income) expense Interest expense 22,856 — Other, net (119 ) (124 ) Other (income) expense 22,737 (124 ) Net loss from discontinued operations $ (242,573 ) $ (219,397 ) Assets and liabilities for the Consumer Segment included: July 31, 2023 April 30, 2023 Current assets Cash $ 15,021 $ 86,656 Accounts receivable, net 106,649 61,107 Inventory 2,921,262 3,065,954 Other 1,502,438 2,069,438 Total current assets 4,545,370 5,283,155 Intangible assets, net 20,000 20,000 Other 3,853 3,853 Operating lease right-of-use assets 73,590 84,544 Total long term assets 97,443 108,397 Current liabilities Accounts payable $ 65,058 $ 606,872 Accrued expenses 89,014 109,480 Debt obligations - short term 237,814 — Customer deposits 28,079 244,688 Operating lease liabilities 51,234 49,461 Total current liabilities 471,199 1,010,501 Long term liabilities - Operating lease liabilities 28,290 41,814 Working capital $ 4,074,171 $ 4,272,654 |
Note 4 _ Marketable Securities
Note 4 – Marketable Securities | 3 Months Ended |
Jul. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Note 4 – Marketable Securities | Note 4 – Marketable Securities Marketable securities consisted solely of corporate bonds at July 31, 2023 and were classified at Level 2 in the Fair Value Hierarchy. Fair value, cost basis, and unrealized losses totaled $ 7,922,392 , $ 8,497,168 , and $ 574,776 at July 31, 2023, respectively. Contractual maturities of one to three years totaled $ 7,922,392 . |
Note 5 _ Inventories
Note 5 – Inventories | 3 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Note 5 – Inventories | Note 5 – Inventories Inventories consisted of the following: July 31, 2023 April 30, 2023 Raw materials $ 7,721,211 $ 8,132,196 Work-in-process 1,611,283 509,381 Finished goods 43,950 278,996 Total $ 9,376,444 $ 8,920,573 |
Note 6 _ Other Current Assets
Note 6 – Other Current Assets | 3 Months Ended |
Jul. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Note 6 – Other Current Assets | Note 6 – Other Current Assets Other current assets included: July 31, 2023 April 30, 2023 Prepaid inventory $ 1,708,515 $ 359,500 Prepaid expenses 1,229,875 752,564 Accrued interest income 82,318 151,671 Total $ 3,020,708 $ 1,263,735 |
Note 7 _ Due From Related Party
Note 7 – Due From Related Party | 3 Months Ended |
Jul. 31, 2023 | |
Note 7 Due From Related Party | |
Note 7 – Due From Related Party | Note 7 – Due From Related Party In January 2022, the Company determined that a senior executive had relocated in 2021 but their compensation had not been subject to the income tax withholding required 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 |
Note 8 _ Intangible Assets
Note 8 – Intangible Assets | 3 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Note 8 – Intangible Assets | Note 8 – Intangible Assets Intangible assets relate to acquisitions completed by the Company, including those described in Note 1. Intangible assets were as follows: July 31, 2023 April 30, 2023 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Proprietary technology $ 4,967,000 $ (1,050,448 ) $ 3,916,552 $ 4,967,000 $ (841,223 ) $ 4,125,777 Non-compete agreements 81,000 (63,417 ) 17,583 81,000 (56,667 ) 24,333 Customer relationships 39,000 (19,499 ) 19,501 39,000 (18,106 ) 20,894 Total finite-lived assets 5,087,000 (1,133,364 ) 3,953,636 5,087,000 (915,996 ) 4,171,004 Brand name 3,152,000 — 3,152,000 3,152,000 — 3,152,000 Total indefinite-lived assets 3,152,000 — 3,152,000 3,152,000 — 3,152,000 Total intangible assets, net $ 8,239,000 $ (1,133,364 ) $ 7,105,636 $ 8,239,000 $ (915,996 ) $ 7,323,004 Proprietary technology and non-compete agreements are being amortized over five to six years and three years, respectively. Customer relationships are being amortized over seven years. Goodwill and Brand name are not amortized but evaluated for impairment on a quarterly basis. As of July 31, 2023, expected amortization expense for finite-lived intangible assets for the next five years is as follows: Fiscal Year Ended: 2024 $ 649,437 2025 842,471 202 815,271 2027 786,679 2028 644,833 Thereafter 214,945 Total $ 3,953,636 Goodwill represents the future economic benefit arising from other assets acquired in an acquisition that are not individually identified and separately recognized. 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 May 2021 Skypersonic 2,826,918 August 2021 Teal Drones 8,995,499 April 2023 - Impairment loss Skypersonic (2,826,918 ) Balance at April 30, 2023 and July 31, 2023 $ 17,012,832 Following the establishment of the Enterprise and Consumer segments, management evaluated the long-term business strategy of each segment. This resulted in the Enterprise segment narrowing its focus on the military and other government agencies. It was determined that Skypersonic's technology would be re-focused for the near term on military applications and consolidated into the operations of Teal Drones. The Company completes a formal evaluation of the carrying value of its intangible assets, including goodwill, at the end of each fiscal year. Based on (i) the operating results for Skypersonic since its acquisition in May 2021, (ii) its consolidation into Teal, (iii) our current expectations of its future business conditions and trends, including its projected revenues, expenses, and cash flows, the Company recognized an impairment charge of $ 2,826,918 |
Note 9 _ Property and Equipment
Note 9 – Property and Equipment | 3 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Note 9 – Property and Equipment | Note 9 – 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, 2023 April 30, 2023 Equipment and related $ 1,340,237 $ 1,386,373 Leasehold improvements 1,517,199 1,473,890 Furniture and fixtures 132,752 132,752 Accumulated depreciation (435,777 ) (342,657 ) Net carrying value $ 2,554,411 $ 2,650,358 Depreciation expense totaled $ 101,001 28,272 |
Note 10 _ Other Long-Term Asset
Note 10 – Other Long-Term Assets | 3 Months Ended |
Jul. 31, 2023 | |
Note 10 Other Long-term Assets | |
Note 10 – Other Long-Term Assets | Note 10 – Other Long-Term Assets Other long-term assets included: July 31, 2023 April 30, 2023 SAFE agreement $ 250,000 $ 250,000 Security deposits 53,180 53,180 Total $ 303,180 $ 303,180 In November 2022, the Company entered into a SAFE (Simple Agreement for Future Equity) agreement with Firestorm Labs, Inc. (“Firestorm”) under which it made a payment of $ 250,000 250,000 |
Note 11 _ Operating Leases
Note 11 – Operating Leases | 3 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Note 11 – Operating Leases | Note 11 – Operating Leases As of July 31, 2023, 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 3.83 years, some of which may include options to extend for up to 5 years. Operating lease expense totaled $ 85,252 1,650 Leases on which the Company made rent payments during the reporting period included: Location Monthly Rent Expiration South Salt Lake, Utah $ 22,667 December 2024 San Juan, Puerto Rico $ 5,647 June 2027 Troy, Michigan $ 550 May 2022 Supplemental information related to operating leases for the three months ended July 31, 2023 was: Operating cash paid to settle lease liabilities $ 85,709 Weighted average remaining lease term (in years) 2.30 Weighted average discount rate 12% Future lease payments at July 31, 2023 were as follows: Fiscal Year Ended: 2024 260,453 2025 260,743 2026 76,619 2027 79,300 2028 6,627 Total $ 683,742 |
Note 12 _ Debt Obligations
Note 12 – Debt Obligations | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Note 12 – Debt Obligations | Note 12 – Debt Obligations A. Decathlon Capital On August 31, 2021, Teal entered into an Amended and Restated Loan and Security Agreement with Decathlon Alpha IV, L.P. (“DA4”) in the amount of $ 1,670,294 10 49,275 769,170 B. Pelion Note In May 2021, Teal entered into a note agreement totaling $ 350,000 0.13 992 C. Vendor Agreement In connection with the acquisition of Teal on August 31, 2021, the Company assumed an obligation with a contract manufacturing firm. The assumed balance of $ 387,500 37,500 D. SBA Loan In February 2021, Teal received a Small Business Administration Paycheck Protection Program (“SBA PPP”) loan in the amount of $ 300,910 300,910 3,001 E. Corporate Equity Beginning in October 2021, and amended in January 2022, Teal financed a total of $ 120,000 8.25 3,595 57,106 66,586 F. 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 G. 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 9,442 11,412 H. Summary Outstanding principal payments on debt obligations are due as follows: Fiscal 2024 784,149 Fiscal 2025 401,569 Total $ 1,185,718 Short term – through July 31, 2024 $ 936,150 Long term – thereafter $ 249,568 |
Note 13 _ Due to Related Party
Note 13 – Due to Related Party | 3 Months Ended |
Jul. 31, 2023 | |
Note 13 Due To Related Party | |
Note 13 – Due to Related Party | Note 13 – 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 37,196 292 |
Note 14 _ Income Taxes
Note 14 – Income Taxes | 3 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Note 14 – Income Taxes | Note 14 – 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, 2023 and April 30, 2023, we had accumulated deficits of approximately $ 60,397,000 54,600,000 11,173,000 10,101,000 |
Note 15 _ Common Stock
Note 15 – Common Stock | 3 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Note 15 – Common Stock | Note 15 – Common Stock Our common stock has a par value of $0.001 per share. We are authorized to issue 500,000,000 shares of common stock. Each share of common stock is entitled to one vote. A summary of shares of common stock issued by the Company since April 30, 2022 is as follows: Description of Shares Shares Issued Shares outstanding as of April 30, 2022 53,748,735 Vesting of restricted stock to employees, net of shares withheld of 273,874 to pay taxes and 9,000 to repay a Note 653,308 Vesting of restricted stock to Board of Directors 116,507 Vesting of restricted stock to consultants 9,683 Shares issued for services 39,832 Shares outstanding as of April 30, 2023 54,568,065 Vesting of restricted stock to employees, net of shares withheld of 10,870 to pay taxes 44,130 Vesting of restricted stock to Board of Directors 109,585 Vesting of restricted stock to consultants 1,761 Conversion of preferred stock 818,334 Shares outstanding as of July 31, 2023 55,541,875 |
Note 16 _ Preferred Stock
Note 16 – Preferred Stock | 3 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Note 16 – Preferred Stock | Note 16 – 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. 982,000 shares of Series B Stock were converted into 818,334 shares of common stock in June 2023. Shares outstanding at July 31, 2023 totaled 4,676 3,896 |
Note 17 _ Warrants
Note 17 – Warrants | 3 Months Ended |
Jul. 31, 2023 | |
Note 17 Warrants | |
Note 17 – Warrants | Note 17 – Warrants The Company issued five-year warrants in connection with two convertible note financings. The warrants have an initial exercise price of $ 1.50 A summary of the warrants issued and their fair values were: Upon Issuance Outstanding at July 31, 2023 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 179,982 January 2021 675,000 $ 2,870,666 540,000 $ 381,703 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 summarizes the changes in warrants outstanding since April 30, 2022. Number of Shares Weighted-average Exercise Price per Share Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance as of April 30, 2022 1,539,999 3.38 3.89 $ 427,533 Granted — Exercised — Outstanding as of April 30, 2023 1,539,999 3.38 2.89 $ — Granted — Exercised — Outstanding at July 31, 2023 1,539,999 3.38 2.63 $ — |
Note 18 _ Share Based Awards
Note 18 – Share Based Awards | 3 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Note 18 – Share Based Awards | Note 18 – 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 A. Options The range of assumptions used to calculate the fair value of options granted during the three months ended July 31 was: 2023 2022 Exercise Price $ 1.06 1.12 $ — Stock price on date of grant 1.06 1.12 — Risk-free interest rate 3.47 4.07 — Dividend yield — — Expected term (years) 6.00 6.25 — Volatility 257.25 260.22 — A summary of options activity under the Plan since April 30, 2022 was: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of April 30, 2022 3,694,142 $ 2.17 8.56 1,407,545 Granted 1,503,500 1.40 Exercised — — Forfeited or expired (412,833 ) 2.67 Outstanding as of April 30, 2023 4,784,809 1.88 8.72 74,586 Granted 2,401,042 1.07 Exercised — — Forfeited or expired (301,834 ) 2.55 Outstanding as of July 31, 2023 6,884,017 1.57 8.58 298,615 Exercisable as of July 31, 2023 3,157,975 $ 2.00 6.63 $ 241,274 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, 2023 and July 31, 2022, there was $ 5,918,668 2,760,989 B. Restricted Stock A summary of restricted stock activity under the Plan since April 30, 2022 was: Shares Weighted Average Grant-Date Fair Value Per Share Unvested and outstanding as of April 30, 2022 1,083,675 $ 2.59 Granted 780,884 2.14 Vested (1,062,372 ) 2.42 Forfeited (21,127 ) 2.13 Unvested and outstanding as of April 30, 2023 781,060 2.44 Granted 298,643 1.06 Vested (166,346 ) 1.70 Forfeited (70,656 ) 1.25 Unvested and outstanding as of July 31, 2023 842,701 $ 2.14 C. Stock Compensation Stock compensation expense for the three months ended July 31 was as follows: 2023 2022 General and administrative $ 427,781 $ 345,168 Research and development 127,417 144,798 Operations 191,099 158,431 Sales and marketing 165,309 107,074 Total $ 911,606 $ 755,471 Stock compensation expense pertaining to options totaled $ 629,426 458,023 282,180 297,448 |
Note 19 _ Derivatives
Note 19 – Derivatives | 3 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Note 19 – Derivatives | Note 19 – Derivatives The Company completed financings in October 2020 and January 2021 which included notes and warrants containing embedded features subject to derivative accounting. 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, 2023 and April 30, 2023 are set forth below. In addition, the Company's stock price on each measurement date was used in the model. July 31, 2023 April 30, 2023 Risk-free interest rate 4.88 2.83 4.51 Expected dividend yield — — Expected term (in years) 2.17 2.50 2.42 3.50 Expected volatility 107.27 107.90 138.49 235.23 As of July 31, 2023, all of the notes had been converted into common stock and 806,666 of the warrants were outstanding. Changes in the derivative liability during the three months ended July 31, 2023 and the year ended April 30, 2023 were as follows: July 31, 2023 April 30, 2023 Balance, beginning of period $ 588,205 $ 1,607,497 Additions — — Eliminated upon conversion of notes/exercise of warrants — — Changes in fair value (26,520 ) (1,019,292 ) Balance, end of period $ 561,685 $ 588,205 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 - Related-Party Transac
Note 20 - Related-Party Transactions | 3 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Note 20 - Related-Party Transactions | Note 20 - 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, as further described in Note 7. Additional related party transactions are disclosed in Note 13. |
Note 21 - Segment Reporting
Note 21 - Segment Reporting | 3 Months Ended |
Jul. 31, 2023 | |
Note 21 - Segment Reporting | |
Note 21 - Segment Reporting | Note 21 - Segment Reporting The following table sets forth key operating data and asset categories which are reviewed by our CODM in evaluating the operating performance of each segment: For the three months ended July 31, 2023 Enterprise Consumer Corporate Total Revenues $ 1,748,129 $ 1,869,219 $ — $ 3,617,348 Cost of goods sold 1,573,464 1,385,116 — 2,958,580 Gross margin 174,665 484,103 — 658,768 Operating expenses 3,153,405 703,939 2,034,295 5,891,639 Operating loss (2,978,740 ) (219,836 ) (2,034,295 ) (5,232,871 ) Other expenses, net 122,858 22,737 431,882 577,477 Net loss $ (3,101,598 ) $ (242,573 ) $ (2,466,177 ) $ (5,810,348 ) 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 ) As of July 31, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 720,642 $ 106,649 $ — $ 827,291 Inventory, net 9,376,444 2,921,262 — 12,297,706 Inventory deposits $ 1,708,515 $ 1,502,438 $ — $ 3,210,953 As of April 30, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 719,862 $ 61,107 $ — $ 780,969 Inventory, net 8,920,573 3,065,954 — 11,986,527 Inventory deposits $ 359,500 $ 2,062,038 $ — $ 2,421,538 |
Note 22 - Sale of Consumer Segm
Note 22 - Sale of Consumer Segment | 3 Months Ended |
Jul. 31, 2023 | |
Note 22 - Sale Of Consumer Segment | |
Note 22 - Sale of Consumer Segment | Note 22 - Sale of Consumer Segment In November 2022, the Board of Directors approved a Stock Purchase Agreement (the "SPA") between the Company, Unusual Machines and Jeffrey Thompson, the founder and Chief Executive Officer of the Company (the “Principal Stockholder”), related to the sale of the Company’s consumer segment consisting of Rotor Riot, (“RR”), and Fat Shark Holdings (“FS”), to UM. In March 2023, shareholders approved the sale. The final, amended purchase price of $20 million includes $3 million in cash, payable at closing, with the remaining $17 million consisting of shares of common stock of Unusual Machines. The purchase price will be adjusted for working capital on the closing date (increased for positive working capital and decreased for negative working capital). The Company estimates that working capital at closing will range between $3.0 to $4.5 million. The number of shares of UM’s common stock (the “Unusual Common Stock”) to be issued will be based on the initial public offering price for the Unusual Common Stock. All of the Unusual Common Stock will be subject to a lock-up of 180 days and be eligible for registration. The closing of the SPA is subject to the successful completion of an initial public offering (the “IPO”) by UM in the minimum amount of $5 million, and the listing of UM’s common stock on a public stock exchange such as the NYSE or Nasdaq. UM filed a registration statement on Form S-1 for an initial public offering of its Common Stock with the SEC. UM is required to deposit $1.0 million cash with the Company upon effectiveness of the registration statement with the SEC. |
Note 23 _ Commitments and Conti
Note 23 – Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Note 23 – Commitments and Contingencies | Note 23 – Commitments and Contingencies Legal Proceedings In the ordinary course of business, we may be involved, at times, in various legal proceedings involving a variety of matters. We do not believe there are any pending legal proceedings that will have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. We have not recorded any litigation reserves as of April 30, 2023. One pending legal matter is an action filed against Teal Drones and the Company in a U.S. District Court in California. The complaint asserts claims for breach of contract, and the unlawful conversion and sale of shares of common stock that plaintiff alleges to have purchased in Teal prior to its acquisition by the Company. The complaint also alleges breach of fiduciary duty and seeks in excess of $1 million in damages. The Company is asserting vigorous defenses to the complaint. |
Note 24 _ Subsequent Events
Note 24 – Subsequent Events | 3 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
Note 24 – Subsequent Events | Note 24 – Subsequent Events Subsequent events have been evaluated through the date of this filing and there are no subsequent events which require disclosure. |
Note 2 _ Summary of Significa_2
Note 2 – Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned operating subsidiaries which include Teal Drones, Skypersonic, Rotor Riot, and Fat Shark. Intercompany transactions and balances have been eliminated. As further described in Note 3, we presently expect to sell our Consumer segment, which includes Rotor Riot and Fat Shark, within the next twelve months. Accordingly, the Consumer segment businesses are characterized as Discontinued Operations in these financial statements. The assets and liabilities of these entities have been presented separately in the Consolidated Balance Sheet as discontinued operations. Similarly, the operating results and cash flows of discontinued operations are separately stated in those respective financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in these financial statements include those used to (i) determine stock-based compensation, (ii) complete purchase price accounting for acquisitions, (iii) accounting for derivatives, (iv) reserves and allowances related to accounts receivable and inventory, and (v) the evaluation of long-term assets, including goodwill, for impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Marketable Securities | Marketable Securities We have elected to present accrued interest income separately from marketable securities on our consolidated balance sheets. Accrued interest income was $82,318 and $151,671 as of July 31, 2023 and April 30, 2023, respectively, and was included in other current assets. We did not write off any accrued interest income during the three months ended July 31, 2023 and 2022. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable are recorded at the invoiced amount less allowances for doubtful accounts. The Company's estimate of the allowance for doubtful accounts is based on a multitude of factors, including historical bad debt levels for its customer base, past experience with a specific customer, the economic environment, and other factors. Accounts receivable balances are written off against the allowance when it is probable that the receivable will not be collected. |
Inventories | Inventories Inventories, which consist of raw materials, work-in-process, and finished goods, are stated at the lower of cost or net realizable value, and are measured using the first-in, first-out method. Cost components include direct materials and direct labor, as well as in-bound freight. At each balance sheet date, the Company evaluates the net realizable value of its inventory using various reference measures including current product selling prices, as well as evaluating for excess quantities and obsolescence. |
Goodwill and Long-lived Assets | Goodwill and Long-lived Assets ASC 350, Intangibles – Goodwill and Other, The estimate of fair value of a reporting unit is computed using either an income approach, a market approach, or a combination of both. Under the income approach, we utilize the discounted cash flow method to estimate the fair value of a reporting unit. Significant assumptions inherent in estimating the fair values include the estimated future cash flows, growth assumptions for future revenues (including gross margin, operating expenses, and capital expenditures), and a rate used to discount estimated future cash flow projections to their present value based on estimated weighted average cost of capital (i.e., the selected discount rate). Our assumptions are based on historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management’s plans. Under the market approach, fair value is derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate and consider risk profiles, size, geography, and diversity of products and services. Goodwill for Rotor Riot relates to its strong social media presence including more than 200,000 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 Teal is ascribed to its existing relationship with several 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. |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation which is calculated using the straight-line method over the estimated useful life of the asset. The estimated useful lives of our property and equipment are generally: (i) furniture and fixtures - seven years, (ii) equipment and related - two to five years, and (iii) leasehold improvements - 15 years. |
Leases | Leases 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 financing. 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 |
Research and Development | Research and Development |
Income Taxes | Income Taxes |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
Foreign Currency | Foreign Currency |
Comprehensive Loss | Comprehensive Loss |
Stock-Based Compensation | Stock-Based Compensation tock options are valued using the estimated grant-date fair value method of accounting in accordance with ASC Topic 718, Compensation – Stock Compensation. Fair value is determined based on the Black-Scholes Model using inputs reflecting our estimates of expected volatility, term and future dividends. We recognize forfeitures as they occur. The fair value of restricted stock is based on our stock price on the date of grant. Compensation costs is recognized on a straight-line basis over the service period which is the vesting term. |
Basic and Diluted Net Loss per Share | Basic and Diluted Net Loss per Share July 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,884,017 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 842,701 781,060 Total 9,270,613 7,928,098 |
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. |
Note 2 _ Summary of Significa_3
Note 2 – Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | July 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,884,017 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 842,701 781,060 Total 9,270,613 7,928,098 |
Note 3 _ Discontinued Operati_2
Note 3 – Discontinued Operations – Sale of Consumer Segment (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three months ended July 31, 2023 2022 Revenues $ 1,869,219 $ 1,942,720 Cost of goods sold 1,385,116 1,667,213 Gross margin 484,103 275,507 Operating expenses Operations 209,980 161,783 Research and development 46,249 82,806 Sales and marketing 404,104 195,278 General and administrative 43,606 55,161 Total operating expenses 703,939 495,028 Operating loss (219,836 ) (219,521 ) Other (income) expense Interest expense 22,856 — Other, net (119 ) (124 ) Other (income) expense 22,737 (124 ) Net loss from discontinued operations $ (242,573 ) $ (219,397 ) |
[custom:ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresAssetsAndLiabilitiesTextBlock] | July 31, 2023 April 30, 2023 Current assets Cash $ 15,021 $ 86,656 Accounts receivable, net 106,649 61,107 Inventory 2,921,262 3,065,954 Other 1,502,438 2,069,438 Total current assets 4,545,370 5,283,155 Intangible assets, net 20,000 20,000 Other 3,853 3,853 Operating lease right-of-use assets 73,590 84,544 Total long term assets 97,443 108,397 Current liabilities Accounts payable $ 65,058 $ 606,872 Accrued expenses 89,014 109,480 Debt obligations - short term 237,814 — Customer deposits 28,079 244,688 Operating lease liabilities 51,234 49,461 Total current liabilities 471,199 1,010,501 Long term liabilities - Operating lease liabilities 28,290 41,814 Working capital $ 4,074,171 $ 4,272,654 |
Note 5 _ Inventories (Tables)
Note 5 – Inventories (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | July 31, 2023 April 30, 2023 Raw materials $ 7,721,211 $ 8,132,196 Work-in-process 1,611,283 509,381 Finished goods 43,950 278,996 Total $ 9,376,444 $ 8,920,573 |
Note 6 _ Other Current Assets (
Note 6 – Other Current Assets (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | July 31, 2023 April 30, 2023 Prepaid inventory $ 1,708,515 $ 359,500 Prepaid expenses 1,229,875 752,564 Accrued interest income 82,318 151,671 Total $ 3,020,708 $ 1,263,735 |
Note 8 _ Intangible Assets (Tab
Note 8 – Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | July 31, 2023 April 30, 2023 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Proprietary technology $ 4,967,000 $ (1,050,448 ) $ 3,916,552 $ 4,967,000 $ (841,223 ) $ 4,125,777 Non-compete agreements 81,000 (63,417 ) 17,583 81,000 (56,667 ) 24,333 Customer relationships 39,000 (19,499 ) 19,501 39,000 (18,106 ) 20,894 Total finite-lived assets 5,087,000 (1,133,364 ) 3,953,636 5,087,000 (915,996 ) 4,171,004 Brand name 3,152,000 — 3,152,000 3,152,000 — 3,152,000 Total indefinite-lived assets 3,152,000 — 3,152,000 3,152,000 — 3,152,000 Total intangible assets, net $ 8,239,000 $ (1,133,364 ) $ 7,105,636 $ 8,239,000 $ (915,996 ) $ 7,323,004 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Ended: 2024 $ 649,437 2025 842,471 202 815,271 2027 786,679 2028 644,833 Thereafter 214,945 Total $ 3,953,636 |
Schedule of Goodwill [Table Text Block] | Date Acquisition Goodwill January 2020 Rotor Riot $ 1,849,073 November 2020 Fat Shark 6,168,260 May 2021 Skypersonic 2,826,918 August 2021 Teal Drones 8,995,499 April 2023 - Impairment loss Skypersonic (2,826,918 ) Balance at April 30, 2023 and July 31, 2023 $ 17,012,832 |
Note 9 _ Property and Equipme_2
Note 9 – Property and Equipment (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | July 31, 2023 April 30, 2023 Equipment and related $ 1,340,237 $ 1,386,373 Leasehold improvements 1,517,199 1,473,890 Furniture and fixtures 132,752 132,752 Accumulated depreciation (435,777 ) (342,657 ) Net carrying value $ 2,554,411 $ 2,650,358 |
Note 10 _ Other Long-Term Ass_2
Note 10 – Other Long-Term Assets (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Note 10 Other Long-term Assets | |
[custom:ScheduleOfOtherLongTermAssetsTableTextBlock] | July 31, 2023 April 30, 2023 SAFE agreement $ 250,000 $ 250,000 Security deposits 53,180 53,180 Total $ 303,180 $ 303,180 |
Note 11 _ Operating Leases (Tab
Note 11 – Operating Leases (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Schedule of Rent Expense [Table Text Block] | Location Monthly Rent Expiration South Salt Lake, Utah $ 22,667 December 2024 San Juan, Puerto Rico $ 5,647 June 2027 Troy, Michigan $ 550 May 2022 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Operating cash paid to settle lease liabilities $ 85,709 Weighted average remaining lease term (in years) 2.30 Weighted average discount rate 12% |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Fiscal Year Ended: 2024 260,453 2025 260,743 2026 76,619 2027 79,300 2028 6,627 Total $ 683,742 |
Note 12 _ Debt Obligations (Tab
Note 12 – Debt Obligations (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
[custom:ScheduleOfDebtPaymentsDueTableTextBlock] | Fiscal 2024 784,149 Fiscal 2025 401,569 Total $ 1,185,718 Short term – through July 31, 2024 $ 936,150 Long term – thereafter $ 249,568 |
Note 15 _ Common Stock (Tables)
Note 15 – Common Stock (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Description of Shares Shares Issued Shares outstanding as of April 30, 2022 53,748,735 Vesting of restricted stock to employees, net of shares withheld of 273,874 to pay taxes and 9,000 to repay a Note 653,308 Vesting of restricted stock to Board of Directors 116,507 Vesting of restricted stock to consultants 9,683 Shares issued for services 39,832 Shares outstanding as of April 30, 2023 54,568,065 Vesting of restricted stock to employees, net of shares withheld of 10,870 to pay taxes 44,130 Vesting of restricted stock to Board of Directors 109,585 Vesting of restricted stock to consultants 1,761 Conversion of preferred stock 818,334 Shares outstanding as of July 31, 2023 55,541,875 |
Note 17 _ Warrants (Tables)
Note 17 – Warrants (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Note 17 Warrants | |
[custom:ScheduleOfWarrantsIssuedAndFairValueTableTextBlock] | Upon Issuance Outstanding at July 31, 2023 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 179,982 January 2021 675,000 $ 2,870,666 540,000 $ 381,703 |
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, 2022 1,539,999 3.38 3.89 $ 427,533 Granted — Exercised — Outstanding as of April 30, 2023 1,539,999 3.38 2.89 $ — Granted — Exercised — Outstanding at July 31, 2023 1,539,999 3.38 2.63 $ — |
Note 18 _ Share Based Awards (T
Note 18 – Share Based Awards (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
[custom:ScheduleOfAssumptionsUsed1TableTextBlock] | 2023 2022 Exercise Price $ 1.06 1.12 $ — Stock price on date of grant 1.06 1.12 — Risk-free interest rate 3.47 4.07 — Dividend yield — — Expected term (years) 6.00 6.25 — Volatility 257.25 260.22 — |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of April 30, 2022 3,694,142 $ 2.17 8.56 1,407,545 Granted 1,503,500 1.40 Exercised — — Forfeited or expired (412,833 ) 2.67 Outstanding as of April 30, 2023 4,784,809 1.88 8.72 74,586 Granted 2,401,042 1.07 Exercised — — Forfeited or expired (301,834 ) 2.55 Outstanding as of July 31, 2023 6,884,017 1.57 8.58 298,615 Exercisable as of July 31, 2023 3,157,975 $ 2.00 6.63 $ 241,274 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted Average Grant-Date Fair Value Per Share Unvested and outstanding as of April 30, 2022 1,083,675 $ 2.59 Granted 780,884 2.14 Vested (1,062,372 ) 2.42 Forfeited (21,127 ) 2.13 Unvested and outstanding as of April 30, 2023 781,060 2.44 Granted 298,643 1.06 Vested (166,346 ) 1.70 Forfeited (70,656 ) 1.25 Unvested and outstanding as of July 31, 2023 842,701 $ 2.14 |
Schedule of Deferred Compensation Arrangement with Individual, Share-Based Payments [Table Text Block] | 2023 2022 General and administrative $ 427,781 $ 345,168 Research and development 127,417 144,798 Operations 191,099 158,431 Sales and marketing 165,309 107,074 Total $ 911,606 $ 755,471 |
Note 19 _ Derivatives (Tables)
Note 19 – Derivatives (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
[custom:ScheduleOfAssumptionsUsed2TableTextBlock] | July 31, 2023 April 30, 2023 Risk-free interest rate 4.88 2.83 4.51 Expected dividend yield — — Expected term (in years) 2.17 2.50 2.42 3.50 Expected volatility 107.27 107.90 138.49 235.23 |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | July 31, 2023 April 30, 2023 Balance, beginning of period $ 588,205 $ 1,607,497 Additions — — Eliminated upon conversion of notes/exercise of warrants — — Changes in fair value (26,520 ) (1,019,292 ) Balance, end of period $ 561,685 $ 588,205 |
Note 21 - Segment Reporting (Ta
Note 21 - Segment Reporting (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Note 21 - Segment Reporting | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the three months ended July 31, 2023 Enterprise Consumer Corporate Total Revenues $ 1,748,129 $ 1,869,219 $ — $ 3,617,348 Cost of goods sold 1,573,464 1,385,116 — 2,958,580 Gross margin 174,665 484,103 — 658,768 Operating expenses 3,153,405 703,939 2,034,295 5,891,639 Operating loss (2,978,740 ) (219,836 ) (2,034,295 ) (5,232,871 ) Other expenses, net 122,858 22,737 431,882 577,477 Net loss $ (3,101,598 ) $ (242,573 ) $ (2,466,177 ) $ (5,810,348 ) 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 ) As of July 31, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 720,642 $ 106,649 $ — $ 827,291 Inventory, net 9,376,444 2,921,262 — 12,297,706 Inventory deposits $ 1,708,515 $ 1,502,438 $ — $ 3,210,953 As of April 30, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 719,862 $ 61,107 $ — $ 780,969 Inventory, net 8,920,573 3,065,954 — 11,986,527 Inventory deposits $ 359,500 $ 2,062,038 $ — $ 2,421,538 |
Antidilutive securities exclude
Antidilutive securities excluded from computation of diluted net loss per share (Details) - shares | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Accounting Policies [Abstract] | ||
Series B Preferred Stock, as converted | 3,896 | 822,230 |
Stock options | 6,884,017 | 4,784,809 |
Warrants | 1,539,999 | 1,539,999 |
Restricted stock | 842,701 | 781,060 |
Total | 9,270,613 | 7,928,098 |
Note 2 _ Summary of Significa_4
Note 2 – Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ (5,810,348) | $ (3,811,599) |
Net Cash Provided by (Used in) Operating Activities | (6,926,069) | $ (3,814,762) |
Banking Regulation, Total Capital, Actual | $ 22,945,400 |
Discontinued Operations - resul
Discontinued Operations - results of operations (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenues | $ 1,869,219 | $ 1,942,720 |
Cost of goods sold | 1,385,116 | 1,667,213 |
Gross margin | 484,103 | 275,507 |
Operating expenses | ||
Operations | 209,980 | 161,783 |
Research and development | 46,249 | 82,806 |
Sales and marketing | 404,104 | 195,278 |
General and administrative | 43,606 | 55,161 |
Total operating expenses | 703,939 | 495,028 |
Operating loss | (219,836) | (219,521) |
Other (income) expense | ||
Interest expense | 22,856 | |
Other, net | (119) | (124) |
Other (income) expense | 22,737 | (124) |
Net loss from discontinued operations | $ (242,573) | $ (219,397) |
Assets and liabilities for the
Assets and liabilities for the Consumer Segment (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Current assets | ||
Cash | $ 15,021 | $ 86,656 |
Accounts receivable, net | 106,649 | 61,107 |
Inventory | 2,921,262 | 3,065,954 |
Other | 1,502,438 | 2,069,438 |
Total current assets | 4,545,370 | 5,283,155 |
Intangible assets, net | 20,000 | 20,000 |
Other | 3,853 | 3,853 |
Operating lease right-of-use assets | 73,590 | 84,544 |
Total long term assets | 97,443 | 108,397 |
Current liabilities | ||
Accounts payable | 65,058 | 606,872 |
Accrued expenses | 89,014 | 109,480 |
Debt obligations - short term | 237,814 | |
Customer deposits | 28,079 | 244,688 |
Operating lease liabilities | 51,234 | 49,461 |
Total current liabilities | 471,199 | 1,010,501 |
Long term liabilities - Operating lease liabilities | 28,290 | 41,814 |
Working capital | $ 4,074,171 | $ 4,272,654 |
Note 4 _ Marketable Securities
Note 4 – Marketable Securities (Details Narrative) | Jul. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
[custom:CorporateBondsAtCarryingValueFairValue-0] | $ 7,922,392 |
[custom:CorporateBondsAtCarryingValueCostBasis-0] | 8,497,168 |
[custom:CorporateBondsAtCarryingValueUnrealizedLosses-0] | 574,776 |
[custom:CorporateBondsAtCarryingValueContractualMaturities2-0] | $ 7,922,392 |
Inventories (Details)
Inventories (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,721,211 | $ 8,132,196 |
Work-in-process | 1,611,283 | 509,381 |
Finished goods | 43,950 | 278,996 |
Total | $ 9,376,444 | $ 8,920,573 |
Other current assets (Details)
Other current assets (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid inventory | $ 1,708,515 | $ 359,500 |
Prepaid expenses | 1,229,875 | 752,564 |
Accrued interest income | 82,318 | 151,671 |
Total | $ 3,020,708 | $ 1,263,735 |
Note 7 _ Due From Related Par_2
Note 7 – Due From Related Party (Details Narrative) - USD ($) | 2 Months Ended | 4 Months Ended |
Apr. 30, 2022 | Apr. 30, 2022 | |
Note 7 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 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Intangible Assets Gross Carrying Amount [Member] | ||
Proprietary technology | $ 4,967,000 | $ 4,967,000 |
Non-compete agreements | 81,000 | 81,000 |
Customer relationships | 39,000 | 39,000 |
Total finite-lived assets | 5,087,000 | 5,087,000 |
Brand name | 3,152,000 | 3,152,000 |
Total indefinite-lived assets | 3,152,000 | 3,152,000 |
Total intangible assets, net | 8,239,000 | 8,239,000 |
Intangible Assets Accumulated Amortization [Member] | ||
Proprietary technology | (1,050,448) | (841,223) |
Non-compete agreements | (63,417) | (56,667) |
Customer relationships | (19,499) | (18,106) |
Total finite-lived assets | (1,133,364) | (915,996) |
Brand name | ||
Total indefinite-lived assets | ||
Total intangible assets, net | (1,133,364) | (915,996) |
Intangible Assets Net Carrying Value [Member] | ||
Proprietary technology | 3,916,552 | 4,125,777 |
Non-compete agreements | 17,583 | 24,333 |
Customer relationships | 19,501 | 20,894 |
Total finite-lived assets | 3,953,636 | 4,171,004 |
Brand name | 3,152,000 | 3,152,000 |
Total indefinite-lived assets | 3,152,000 | 3,152,000 |
Total intangible assets, net | $ 7,105,636 | $ 7,323,004 |
Expected amortization expense f
Expected amortization expense for the unamortized finite-lived intangible assets (Details) | Jul. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
$ 649,437 | |
842,471 | |
815,271 | |
786,679 | |
644,833 | |
214,945 | |
$ 3,953,636 |
Composition of, and changes in
Composition of, and changes in goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 18 Months Ended | 28 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2023 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||||
$ 17,012,832 | $ 17,012,832 | |||||
Goodwill [Member] | ||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||
$ 2,826,918 | $ 8,995,499 | $ 6,168,260 | $ 1,849,073 | |||
(2,826,918) | ||||||
$ 17,012,832 |
Note 8 _ Intangible Assets (Det
Note 8 – Intangible Assets (Details Narrative) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 2,826,918 |
Property and equipment (Details
Property and equipment (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 1,517,199 | $ 1,473,890 |
Furniture and fixtures | 132,752 | 132,752 |
Accumulated depreciation | (435,777) | (342,657) |
Net carrying value | $ 2,554,411 | $ 2,650,358 |
Note 9 _ Property and Equipme_3
Note 9 – Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 101,001 | $ 28,272 |
Other long term assets (Details
Other long term assets (Details) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Note 10 Other Long-term Assets | ||
SAFE agreement | $ 250,000 | $ 250,000 |
Security deposits | 53,180 | 53,180 |
Total | $ 303,180 | $ 303,180 |
Note 10 _ Other Long-Term Ass_3
Note 10 – Other Long-Term Assets (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended |
Nov. 30, 2022 | Apr. 30, 2023 | |
Note 10 Other Long-term Assets | ||
[custom:PaymentForSAFEAgreement] | $ 250,000 | $ 250,000 |
Operating leases (Details)
Operating leases (Details) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Operating Lease, Expense | $ 85,252 |
Operating Lease Location 1 [Member] | |
Operating Lease, Expense | 22,667 |
Operating Lease Location 3 [Member] | |
Operating Lease, Expense | 5,647 |
Operating Lease Location 4 [Member] | |
Operating Lease, Expense | $ 550 |
Supplemental information relate
Supplemental information related to operating leases (Details) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating cash paid to settle lease liabilities | $ 85,709 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 3 months 18 days |
Weighted average discount rate | 12% |
Future lease payment obligation
Future lease payment obligations (Details) | Jul. 31, 2023 USD ($) |
Leases [Abstract] | |
$ 260,453 | |
260,743 | |
76,619 | |
79,300 | |
6,627 | |
$ 683,742 |
Note 11 _ Operating Leases (Det
Note 11 – Operating Leases (Details Narrative) | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating Lease, Expense | $ 85,252 |
Short-Term Lease, Cost | $ 1,650 |
Outstanding principal payments
Outstanding principal payments (Details) | Jul. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2025 | $ 401,569 |
Total | 1,185,718 |
Short term – through July 31, 2024 | 936,150 |
Long term – thereafter | $ 249,568 |
Note 12 _ Debt Obligations (Det
Note 12 – Debt Obligations (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | 15 Months Ended | ||
Sep. 30, 2021 | Jul. 31, 2023 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2023 | Jul. 31, 2022 | Apr. 30, 2022 | Aug. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||||||
Long-Term Debt, Gross | $ 769,170 | |||||||||
Accrued Liabilities, Current | $ 448,229 | $ 409,439 | ||||||||
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 | 992 | |||||||||
Debt Obligation 3 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt Instrument, Face Amount | 387,500 | |||||||||
Debt Instrument, Periodic Payment | $ 37,500 | |||||||||
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 | 57,106 | 66,586 | ||||||||
[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 | $ 9,442 | $ 11,412 | ||||||||
[custom:FinancingAgreementFundingOfPurchaseOfFixedAsset] | $ 24,383 |
Note 13 _ Due to Related Party
Note 13 – Due to Related Party (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 22 Months Ended | 28 Months Ended | ||||
Apr. 30, 2023 | Apr. 30, 2022 | Sep. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2022 | Jul. 31, 2023 | |
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] | $ 292 | $ 12,942 | ||||||
[custom:LineOfCreditObligationAssumedInConnectionWithAcquisition] | $ 47,853 | |||||||
[custom:DebtInstrumentInterestRateDuringPeriod1] | 6.67% | |||||||
[custom:DueToOtherRelatedPartyClassifiedCurrent-0] | $ 37,196 |
Note 14 _ Income Taxes (Details
Note 14 – Income Taxes (Details Narrative) - USD ($) | Jul. 31, 2023 | Apr. 30, 2023 |
Income Tax Disclosure [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ (60,397,141) | $ (54,586,793) |
Deferred Tax Assets, Operating Loss Carryforwards | $ 11,173,000 | $ 10,101,000 |
Summary of shares of common sto
Summary of shares of common stock issued (Details) - Common Stock [Member] - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shares, Outstanding, Beginning Balance | 54,568,065 | 53,748,735 |
Vesting of restricted stock to employees, net of shares withheld of 10,870 to pay taxes | 44,130 | 653,308 |
Vesting of restricted stock to Board of Directors | 109,585 | 116,507 |
Vesting of restricted stock to consultants | 1,761 | 9,683 |
Shares issued for services | 39,832 | |
Conversion of preferred stock | $ 818,334 | |
Shares, Outstanding, Ending Balance | 55,541,875 | 53,818,442 |
Note 16 _ Preferred Stock (Deta
Note 16 – Preferred Stock (Details Narrative) - shares | 3 Months Ended | |
Jul. 31, 2023 | Apr. 30, 2023 | |
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] | 3,896 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Outstanding | 4,676 | 986,676 |
Summary of warrants issued and
Summary of warrants issued and fair values (Details) - USD ($) | 1 Months Ended | ||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2023 | |
Note 17 Warrants | |||
[custom:NumberOfWarrantsUponIssuance] | 675,000 | 399,998 | |
[custom:InitialFairValueOfWarrantsUponIssuance] | $ 2,870,666 | $ 267,999 | |
[custom:NumberOfWarrantsOutstanding-0] | 266,666 | ||
[custom:FairValueOfWarrantsOutstanding-0] | $ 179,982 | ||
[custom:NumberOfWarrantsOutstanding2-0] | 540,000 | ||
[custom:FairValueOfWarrantsOutstanding2-0] | $ 381,703 |
Changes in warrants outstanding
Changes in warrants outstanding (Details) - Warrants Outstanding 1 [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2021 | Apr. 30, 2023 | |
Class of Warrant or Right [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 1,539,999 | 1,539,999 | 1,539,999 | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 3.38 | $ 3.38 | $ 3.38 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 17 days | 2 years 10 months 20 days | 3 years 10 months 20 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 427,533 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period |
Note 17 _ Warrants (Details Nar
Note 17 – Warrants (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | |||
Apr. 30, 2022 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | |
Note 17 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] | 3 Months Ended |
Jul. 31, 2023 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price | $ 1.06 |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice1-0] | 1.12 |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate-0] | 1.06 |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate1-0] | $ 1.12 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 3.47% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 4.07% |
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 | 6 years |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm2] | 6 years 3 months |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 257.25% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 260.22% |
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, 2023 | Jul. 31, 2022 | Apr. 30, 2021 | Apr. 30, 2023 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 6,884,017 | 3,694,142 | 4,784,809 | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 1.57 | $ 2.17 | $ 1.88 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 6 months 29 days | 8 years 8 months 19 days | 8 years 6 months 21 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 298,615 | $ 1,407,545 | $ 74,586 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 2,401,042 | 1,503,500 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.07 | $ 1.40 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | ||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (301,834) | (412,833) | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 2.55 | $ 2.67 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 3,157,975 | |||
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 2 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 7 months 17 days | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 241,274 |
Summary of restricted stock act
Summary of restricted stock activity under the Plan (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2020 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockUnvestedAndOutstandingNumber-0] | 842,701 | 781,060 | 1,083,675 | |
[custom:SharebasedCompensationSharesRestrictedStockUnvestedAndOutstandingWeightedAverageExercisePrice-0] | $ 2.14 | $ 2.44 | $ 2.59 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodGross] | 298,643 | 780,884 | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodWeightedAverageGrantDateFairValue] | $ 1.06 | $ 2.14 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNumberVestedInPeriod] | (166,346) | (1,062,372) | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockNumberVestedInPeriodWeightedAverageGrantDateFairValue] | $ 1.70 | $ 2.42 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNonvestedOptionsForfeitedNumberOfShares] | 70,656 | (21,127) | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice] | $ 1.25 | $ 2.13 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNonvestedOptionsForfeitedNumberOfShares] | (70,656) | 21,127 |
Stock compensation expense by f
Stock compensation expense by functional category (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
General and administrative | $ 427,781 | $ 345,168 |
Research and development | 127,417 | 144,798 |
Operations | 191,099 | 158,431 |
Sales and marketing | 165,309 | 107,074 |
Total | $ 911,606 | $ 755,471 |
Note 18 _ Share Based Awards (D
Note 18 – Share Based Awards (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
[custom:NumberOfSharesIssuableInConnectionWithAwardsUnderPlanMaximum] | 8,750,000 | |
[custom:UnrecognizedStockBasedCompensationExpenseRelatedToUnvestedStockOptions] | $ 5,918,668 | $ 2,760,989 |
[custom:StockCompensationExpensePertainingToOptions] | 629,426 | 458,023 |
[custom:StockCompensationExpensePertainingToRestrictedStockUnits] | $ 282,180 | $ 297,448 |
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 | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 4.88% | 4.51% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 2.83% | |
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 | 2 years 2 months 1 day | 2 years 5 months 1 day |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm2] | 2 years 6 months | 3 years 6 months |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 107.27% | 138.49% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 107.90% | 235.23% |
Changes in the derivative liabi
Changes in the derivative liability (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Balance, beginning of period | $ 588,205 | $ 1,607,497 |
Additions | ||
Eliminated upon conversion of notes/exercise of warrants | ||
Changes in fair value | (26,520) | (1,019,292) |
Balance, end of period | $ 561,685 | $ 588,205 |
Note 20 - Related-Party Trans_2
Note 20 - Related-Party Transactions (Details Narrative) - Director 1 [Member] - USD ($) | 1 Months Ended | 6 Months Ended | 7 Months Ended |
Apr. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | |
Related Party Transaction [Line Items] | |||
[custom:ConsultingAgreementMonthlyPayments] | $ 10,000 | $ 6,000 | |
[custom:OptionsToPurchaseCommonStockIssuedPursuantToConsultingAgreement] | 150,000 | ||
[custom:OptionsToPurchaseCommonStockIssuedPursuantToConsutlingAgreementPurchasePrice] | $ 2.51 |
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, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | |
Revenues | $ 1,748,129 | $ 1,126,551 | |
Gross margin | 174,665 | 82,120 | |
Operating expenses | 5,187,700 | 3,561,095 | |
Other expenses, net | (554,740) | (113,227) | |
Net loss | (5,810,348) | (3,811,599) | |
Inventory, net | 9,376,444 | $ 8,920,573 | |
Other Segments [Member] | |||
Revenues | 1,748,129 | 1,126,551 | |
Cost of goods sold | 1,573,464 | 1,044,431 | |
Gross margin | 174,665 | 82,120 | |
Operating expenses | 3,153,405 | 1,661,363 | |
Operating loss | (2,978,740) | (1,579,243) | |
Other expenses, net | 122,858 | 63,229 | |
Net loss | (3,101,598) | (1,642,472) | |
Accounts receivable, net | 720,642 | 719,862 | |
Inventory, net | 9,376,444 | 8,920,573 | |
Inventory deposits | 1,708,515 | 359,500 | |
Consumer [Member] | |||
Revenues | 1,869,219 | 1,942,720 | |
Cost of goods sold | 1,385,116 | 1,667,213 | |
Gross margin | 484,103 | 275,507 | |
Operating expenses | 703,939 | 495,028 | |
Operating loss | (219,836) | (219,521) | |
Other expenses, net | 22,737 | (124) | |
Net loss | (242,573) | (219,397) | |
Accounts receivable, net | 106,649 | 61,107 | |
Inventory, net | 2,921,262 | 3,065,954 | |
Inventory deposits | 1,502,438 | 2,062,038 | |
Corporate Segment [Member] | |||
Revenues | |||
Cost of goods sold | |||
Gross margin | |||
Operating expenses | 2,034,295 | 1,899,732 | |
Operating loss | (2,034,295) | (1,899,732) | |
Other expenses, net | 431,882 | 49,998 | |
Net loss | (2,466,177) | (1,949,730) | |
Accounts receivable, net | |||
Inventory, net | |||
Inventory deposits | |||
Corporate and Other [Member] | |||
Revenues | 3,617,348 | 3,069,271 | |
Cost of goods sold | 2,958,580 | 2,711,644 | |
Gross margin | 658,768 | 357,627 | |
Operating expenses | 5,891,639 | 4,056,123 | |
Operating loss | (5,232,871) | (3,698,496) | |
Other expenses, net | 577,477 | 113,103 | |
Net loss | (5,810,348) | $ (3,811,599) | |
Accounts receivable, net | 827,291 | 780,969 | |
Inventory, net | 12,297,706 | 11,986,527 | |
Inventory deposits | $ 3,210,953 | $ 2,421,538 |