Cover
Cover - shares | 6 Months Ended | |
Oct. 31, 2023 | Dec. 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
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 | 74,162,655 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Oct. 31, 2023 | Apr. 30, 2023 |
Current assets | ||
Cash | $ 1,408,977 | $ 3,173,649 |
Marketable securities | 2,615,289 | 12,814,038 |
Accounts receivable, net | 2,989,054 | 719,862 |
Inventory | 9,255,698 | 8,920,573 |
Other | 2,839,892 | 1,263,735 |
Current assets of discontinued operations | 4,153,762 | 5,283,155 |
Total current assets | 23,262,672 | 32,175,012 |
Goodwill | 17,012,832 | 17,012,832 |
Intangible assets, net | 6,888,269 | 7,323,004 |
Property and equipment, net | 2,567,787 | 2,650,358 |
Other | 303,180 | 303,180 |
Operating lease right-of-use assets | 485,771 | 620,307 |
Long-term assets of discontinued operations | 86,133 | 108,397 |
Total long-term assets | 27,343,972 | 28,018,078 |
TOTAL ASSETS | 50,606,644 | 60,193,090 |
Current liabilities | ||
Accounts payable | 1,618,351 | 1,392,550 |
Accrued expenses | 643,224 | 409,439 |
Debt obligations - short term | 953,819 | 922,138 |
Customer deposits | 61,805 | 155,986 |
Operating lease liabilities | 304,226 | 281,797 |
Warrant derivative liability | 399,203 | 588,205 |
Current liabilities of discontinued operations | 424,637 | 1,010,501 |
Total current liabilities | 4,405,265 | 4,760,616 |
Operating lease liabilities | 221,386 | 379,466 |
Debt obligations - long term | 90,762 | 401,569 |
Long-term liabilities of discontinued operations | 14,356 | 41,814 |
Total long-term liabilities | 326,504 | 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 55,649,896 and 54,568,065 | 55,649 | 54,568 |
Additional paid-in capital | 112,102,691 | 109,993,100 |
Accumulated deficit | (66,078,469) | (54,586,793) |
Accumulated other comprehensive loss | (205,043) | (861,117) |
Total stockholders' equity | 45,874,875 | 54,609,625 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 50,606,644 | $ 60,193,090 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Oct. 31, 2023 | Apr. 30, 2023 |
Common Stock, Shares Authorized | 500,000,000 | |
Common Stock, Shares, Outstanding | 55,649,896 | 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 | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,930,868 | $ 747,612 | $ 5,678,997 | $ 1,874,163 |
Cost of goods sold | 2,730,286 | 623,761 | 4,303,750 | 1,668,192 |
Gross Margin | 1,200,582 | 123,851 | 1,375,247 | 205,971 |
Operating Expenses | ||||
Operations | 440,445 | 1,581,818 | 1,148,348 | 2,468,121 |
Research and development | 1,987,890 | 1,266,956 | 3,126,017 | 1,716,920 |
Sales and marketing | 675,490 | 563,756 | 1,662,398 | 970,709 |
General and administrative | 1,460,073 | 1,815,314 | 2,903,229 | 2,877,718 |
Stock based compensation | 1,196,325 | 1,246,796 | 2,107,931 | 2,002,267 |
Total operating expenses | 5,760,223 | 6,474,640 | 10,947,923 | 10,035,735 |
Operating loss | (4,559,641) | (6,350,789) | (9,572,676) | (9,829,764) |
Other (income) expense | ||||
Change in fair value of derivative liability | (162,482) | (686,744) | (189,002) | (593,822) |
Investment loss (income), net | 333,867 | (92,711) | 573,357 | (192,134) |
Interest expense | 19,696 | 32,485 | 41,553 | 68,172 |
Other, net | 331,095 | 227,163 | 651,008 | 311,204 |
Net loss from continuing operations | (5,081,817) | (5,830,982) | (10,649,592) | (9,423,184) |
Loss from discontinued operations | (599,511) | (413,495) | (842,084) | (632,892) |
Net loss | $ (5,681,328) | $ (6,244,477) | $ (11,491,676) | $ (10,056,076) |
Loss per share - basic and diluted | ||||
Continuing operations | $ (0.09) | $ (0.11) | $ (0.19) | $ (0.18) |
Discontinued operations | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) |
Weighted average shares outstanding - basic and diluted | 55,606,336 | 54,078,111 | 55,270,838 | 53,928,133 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | 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, 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 | ||||
Net loss | (10,056,076) | |||||
Ending balance, value at Oct. 31, 2022 | $ 9,867 | $ 54,229 | 108,406,712 | (37,555,132) | (1,688,405) | $ 69,227,271 |
Shares, Outstanding, Ending Balance at Oct. 31, 2022 | 54,229,539 | 986,676 | ||||
Beginning balance, value at Jul. 31, 2022 | $ 9,867 | $ 53,818 | 107,492,710 | (31,310,655) | (1,336,338) | $ 74,909,402 |
Shares, Outstanding, Beginning Balance at Jul. 31, 2022 | 986,676 | 53,818,442 | ||||
Stock based compensation | 1,246,796 | 1,246,796 | ||||
Vesting of restricted stock units | $ 411 | (332,794) | (332,383) | |||
[custom:VestingOfRestrictedStockUnitsShares] | 411,097 | |||||
Unrealized gain on marketable securities | (350,811) | (350,811) | ||||
Currency translation adjustments | (1,256) | (1,256) | ||||
Net loss | (6,244,477) | (6,244,477) | ||||
Ending balance, value at Oct. 31, 2022 | 9,867 | $ 54,229 | 108,406,712 | (37,555,132) | (1,688,405) | $ 69,227,271 |
Shares, Outstanding, Ending Balance at Oct. 31, 2022 | 54,229,539 | 986,676 | ||||
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 | ||||
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 | ||||
Net loss | (11,491,676) | |||||
[custom:IssuanceOfCommonStockThroughATMFacilitiesNetShares] | 53,235 | |||||
Ending balance, value at Oct. 31, 2023 | $ 47 | $ 55,649 | 112,102,691 | (66,078,469) | (205,043) | 45,874,875 |
Shares, Outstanding, Ending Balance at Oct. 31, 2023 | 4,676 | 55,649,896 | ||||
Beginning balance, value at Jul. 31, 2023 | $ 47 | $ 55,541 | 110,905,033 | (60,397,141) | (570,082) | 49,993,398 |
Shares, Outstanding, Beginning Balance at Jul. 31, 2023 | 4,676 | 55,541,875 | ||||
Stock based compensation | 1,196,325 | 1,196,325 | ||||
Vesting of restricted stock units | $ 55 | (7,826) | (7,771) | |||
[custom:VestingOfRestrictedStockUnitsShares] | 54,786 | |||||
Unrealized gain on marketable securities | 363,663 | 363,663 | ||||
Currency translation adjustments | 1,376 | 1,376 | ||||
Net loss | (5,681,328) | (5,681,328) | ||||
Issuance of common stock through ATM facility, net | $ 53 | 9,159 | 9,212 | |||
[custom:IssuanceOfCommonStockThroughATMFacilitiesNetShares] | 53,235 | |||||
Ending balance, value at Oct. 31, 2023 | $ 47 | $ 55,649 | $ 112,102,691 | $ (66,078,469) | $ (205,043) | $ 45,874,875 |
Shares, Outstanding, Ending Balance at Oct. 31, 2023 | 4,676 | 55,649,896 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (11,491,676) | $ (10,056,076) |
Net loss from discontinued operations | (842,084) | (632,892) |
Net loss from continuing operations | (10,649,592) | (9,423,184) |
Adjustments to reconcile net loss to net cash from operations: | ||
Stock based compensation - options | 1,606,305 | 890,711 |
Stock awards - restricted units | 501,626 | 1,111,556 |
Amortization of intangible assets | 434,735 | 219,790 |
Realized loss from sale of marketable securities | 646,300 | 28,416 |
Depreciation | 222,431 | 91,804 |
Change in fair value of derivative | (189,002) | (593,822) |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,269,192) | (443,563) |
Inventory | (335,125) | (1,119,484) |
Operating lease right-of-use assets and liabilities | (1,115) | 24,519 |
Customer deposits | (94,181) | (248,016) |
Accounts payable | 225,801 | 355,651 |
Accrued expenses | 236,807 | (334,004) |
Net cash used in operating activities of continuing operations | (11,240,359) | (9,527,472) |
Cash Flows from Investing Activities | ||
Purchases of property and equipment | (139,860) | (1,280,935) |
Proceeds from sale of marketable securities | 10,205,501 | 13,241,836 |
Net cash provided by investing activities of continuing operations | 10,065,641 | 11,960,901 |
Cash Flows from Financing Activities | ||
Proceeds from related party obligations | 13,404 | |
Payments under related party obligations | (40,057) | |
Payments under debt obligations | (279,126) | (340,766) |
Payments of taxes related to equity transactions | (16,292) | (561,407) |
Proceeds from issuance of common stock through ATM facility, net | 9,212 | |
Net cash used in financing activities of continuing operations | (286,206) | (928,826) |
Discontinued operations | ||
Operating activities | (550,120) | (4,006,667) |
Investing activities | ||
Financing activities | 166,026 | |
Net cash used in discontinued operations | (384,094) | (4,006,667) |
Net decrease in Cash | (1,845,018) | (2,502,064) |
Cash, beginning of period | 3,260,305 | 4,084,815 |
Cash, end of period | 1,415,287 | 1,582,751 |
Less: Cash of discontinued operations | (6,310) | (90,810) |
Cash of continuing operations, end of period | 1,408,977 | 1,491,941 |
Cash paid for interest | 42,031 | 62,862 |
Cash paid for income taxes | ||
Non-cash transactions | ||
Unrealized gain (loss) on marketable securities | 653,052 | (217,229) |
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 | $ 9,448 |
Note 1 _ The Business
Note 1 – The Business | 6 Months Ended |
Oct. 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 consumers. 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 either denied or 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 concentrate on integrating and organizing these businesses. Effective May 1, 2022, we established the Enterprise and Consumer segments to focus on the unique opportunities in each sector. Enterprise's initial strategy was to provide UAV's to commercial enterprises, and the military, to navigate dangerous military environments and confined industrial and commercial interior spaces. Subsequently, Enterprise narrowed its near-term attention on the military and other government agencies. Skypersonic's technology has been redirected to military applications and its operations consolidated into Teal. The Consumer segment, which includes Fat Shark and Rotor Riot, caters to hobbyists, drone racers, and enthusiasts. 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 unadjusted sale price is $20 million, including $3 million in cash, at closing, and $17 million in securities of Unusual Machines plus a post-closing adjustment for excess working capital. The agreement reflects the Company's decision to focus its efforts and capital 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 | 6 Months Ended |
Oct. 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 $20,572 and $151,671 as of October 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 six months ended October 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, 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 and recent customer demand, 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 these instruments approximates fair value due to their short-term nature. 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 issued financial instruments which include embedded features subject to derivative accounting. Specifically, there are warrants outstanding, issued in connection with a convertible debt financing, which include provisions under which the exercise price is equal to the lesser of (i) $1.50 or (ii) the exercise or conversion price of securities issued in a future, qualified offering. Embedded derivatives are valued separately from the host instrument and are recognized as liabilities on the Company's balance sheet. The warrants are valued using a multinomial lattice method that values the derivative liability based on a probability weighted discounted cash flow model. The liability is valued at each reporting date and the change in liability is reflected as a 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 cost is recognized on a straight-line basis over the service period which is the vesting term. Basic and Diluted Net Loss per Share October 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,861,517 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 779,850 781,060 Total 9,185,262 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 six months ended October 31, 2023, the Company incurred a net loss from continuing operations of $10,649,592 and used cash in operating activities of continuing operations of $11,240,359. As of October 31, 2023, working capital for continuing operations totaled $15,128,282. Management has concluded that these recent positive developments alleviate any substantial doubt about the Company’s ability to continue its operations, and meet its financial obligations, for twelve months from the date these consolidated financial statements are issued. See “Note 24 – Subsequent Events”. |
Note 3 _ Discontinued Operation
Note 3 – Discontinued Operations – Sale of Consumer Segment | 6 Months Ended |
Oct. 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 the Consumer segment for: Three months ended October 31, Six months ended October 31, 2023 2022 2023 2022 Revenues $ 1,056,932 $ 782,850 $ 2,926,151 $ 2,725,570 Cost of goods sold 1,154,200 673,046 2,539,316 2,340,259 Gross Margin (97,268 ) 109,804 386,835 385,311 Operating Expenses Operations 173,825 171,055 383,805 332,838 Research and development 31,054 87,958 77,303 170,764 Sales and marketing 287,413 168,013 691,517 363,291 General and administrative 9,982 104,323 53,588 159,484 Total operating expenses 502,274 531,349 1,206,213 1,026,377 Operating loss (599,542 ) (421,545 ) (819,378 ) (641,066 ) Other (income) expense Interest expense — — 22,856 — Other, net (31 ) (8,050 ) (150 ) (8,174 ) Other (income) expense (31 ) (8,050 ) 22,706 (8,174 ) Net loss from discontinued operations $ (599,511 ) $ (413,495 ) $ (842,084 ) $ (632,892 ) Assets and liabilities for the Consumer segment included: October 31, 2023 April 30, 2023 Current assets Cash $ 6,310 $ 86,656 Accounts receivable, net 44,431 61,107 Inventory 2,599,022 3,065,954 Other 1,503,999 2,069,438 Total current assets 4,153,762 5,283,155 Intangible assets, net 20,000 20,000 Other 3,853 3,853 Operating lease right-of-use assets 62,280 84,544 Total long term assets 86,133 108,397 Current liabilities Accounts payable $ 64,777 $ 606,872 Accrued expenses 96,838 109,480 Debt obligations - short term 166,026 — Customer deposits 43,936 244,688 Operating lease liabilities 53,060 49,461 Total current liabilities 424,637 1,010,501 Long term liabilities - Operating lease liabilities 14,356 41,814 Working capital $ 3,729,125 $ 4,272,654 |
Note 4 _ Marketable Securities
Note 4 – Marketable Securities | 6 Months Ended |
Oct. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Note 4 – Marketable Securities | Note 4 – Marketable Securities Marketable securities consisted solely of corporate bonds at October 31, 2023 and were classified at Level 2 in the Fair Value Hierarchy. Fair value, cost basis, and unrealized losses totaled $ 2,615,289 , $ 2,826,402 , and $ 211,113 at October 31, 2023, respectively. Contractual maturities of one to three years totaled $ 2,615,289 . |
Note 5 _ Inventories
Note 5 – Inventories | 6 Months Ended |
Oct. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Note 5 – Inventories | Note 5 – Inventories Inventories consisted of the following: October 31, 2023 April 30, 2023 Raw materials $ 7,804,167 $ 8,132,196 Work-in-process 1,327,888 509,381 Finished goods 123,643 278,996 Total $ 9,255,698 $ 8,920,573 |
Note 6 _ Other Current Assets
Note 6 – Other Current Assets | 6 Months Ended |
Oct. 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: October 31, 2023 April 30, 2023 Prepaid inventory $ 1,616,111 $ 359,500 Prepaid expenses 1,203,209 752,564 Accrued interest income 20,572 151,671 Total $ 2,839,892 $ 1,263,735 |
Note 7 _ Due From Related Party
Note 7 – Due From Related Party | 6 Months Ended |
Oct. 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 | 6 Months Ended |
Oct. 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, and were as follows: October 31, 2023 April 30, 2023 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Proprietary technology $ 4,967,000 $ (1,259,673 ) $ 3,707,327 $ 4,967,000 $ (841,223 ) $ 4,125,777 Non-compete agreements 81,000 (70,167 ) 10,833 81,000 (56,667 ) 24,333 Customer relationships 39,000 (20,891 ) 18,109 39,000 (18,106 ) 20,894 Total finite-lived assets 5,087,000 (1,350,731 ) 3,736,269 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 $ (1,350,731 ) $ 6,888,269 $ 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 October 31, 2023, expected amortization expense for finite-lived intangible assets for the next five years is as follows: Fiscal Year Ended: 2024 $ 432,070 2025 842,471 202 815,271 2027 786,679 2028 644,833 Thereafter 214,945 Total $ 3,736,269 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 October 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 | 6 Months Ended |
Oct. 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: October 31, 2023 April 30, 2023 Equipment and related $ 1,426,424 $ 1,386,373 Leasehold improvements 1,548,609 1,473,890 Furniture and fixtures 157,842 132,752 Accumulated depreciation (565,088 ) (342,657 ) Net carrying value $ 2,567,787 $ 2,650,358 Depreciation expense totaled $ 222,431 91,804 |
Note 10 _ Other Long-Term Asset
Note 10 – Other Long-Term Assets | 6 Months Ended |
Oct. 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: October 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 | 6 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Note 11 – Operating Leases | Note 11 – Operating Leases As of October 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 3.58 years, some of which may include options to extend for up to 5 years. Operating lease expense totaled $ 170,505 3,300 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 six months ended October 31, 2023 was: Operating cash paid to settle lease liabilities $171,620 Weighted average remaining lease term (in years) 2.12 Weighted average discount rate 12% Future lease payments at October 31, 2023 were as follows: Fiscal Year Ended: 2024 174,542 2025 260,743 2026 76,619 2027 79,300 2028 6,627 Total $ 597,831 |
Note 12 _ Debt Obligations
Note 12 – Debt Obligations | 6 Months Ended |
Oct. 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 49,275 639,663 B. Pelion Note In May 2021, Teal entered into a note agreement totaling $ 350,000 0.13 1,107 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 47,442 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 7,476 11,412 H. Summary Outstanding principal payments on debt obligations are due as follows: Fiscal 2024 643,012 Fiscal 2025 401,569 Total $ 1,044,581 Short term – through October 31, 2024 $ 953,819 Long term – thereafter $ 90,762 |
Note 13 _ Due to Related Party
Note 13 – Due to Related Party | 6 Months Ended |
Oct. 31, 2023 | |
Note 13 Due To Related Party | |
Note 13 – Due to Related Party | Note 13 – Due to Related Party BRIT, LLC In January 2020, in connection with the acquisition of Rotor Riot, the Company assumed a line of credit obligation of the seller, BRIT, LLC, totaling $ 47,853 6.67 37,196 292 |
Note 14 _ Income Taxes
Note 14 – Income Taxes | 6 Months Ended |
Oct. 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 October 31, 2023 and April 30, 2023, we had accumulated deficits of approximately $ 66,100,000 54,600,000 12,229,000 10,101,000 |
Note 15 _ Common Stock
Note 15 – Common Stock | 6 Months Ended |
Oct. 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 18,935 to pay taxes 94,971 Vesting of restricted stock to Board of Directors 113,530 Vesting of restricted stock to consultants 1,761 Conversion of preferred stock 818,334 Issuance of common stock through ATM facilities 53,235 Shares outstanding as of October 31, 2023 55,649,896 ATM Facility In August 2023, we entered into a sales agreement (“the 2023 ATM Facility”) with ThinkEquity LLC (“ThinkEquity”), which provides for the sale, in our sole discretion, of shares of our common stock having an aggregate offering price of up to $17 million through ThinkEquity, as our sales agent. The issuance and sale of these shares by us pursuant to the 2023 ATM Facility are deemed “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the Securities Act), and are registered under the Securities Act. We pay a commission of up to 2.5% of gross sales proceeds of any common stock sold under the 2023 ATM Facility. During the six months ended October 31, 2023, we sold an aggregate of 53,235 57,000 55,700 46,000 16,943,000 Subsequent to the quarter ended October 31, 2023, in December 2023, the terms of the 2023 ATM Facility were amended to change the aggregate offering price to up to $4,375,000. |
Note 16 _ Preferred Stock
Note 16 – Preferred Stock | 6 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Note 16 – Preferred Stock | Note 16 – Preferred Stock 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 October 31, 2023 totaled 4,676 3,896 |
Note 17 _ Warrants
Note 17 – Warrants | 6 Months Ended |
Oct. 31, 2023 | |
Note 17 Warrants | |
Note 17 – Warrants | Note 17 – Warrants The Company issued 5 year warrants to investors 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 October 31, 2023 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 125,613 January 2021 675,000 $ 2,870,666 540,000 $ 273,590 To date, we have received $301,248 related to the exercise of 268,332 warrants. These exercises eliminated the derivative liability in these warrants, resulting in a decrease of $857,446 in the derivative liability with a corresponding increase in additional paid in capital. 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 . There have been no issuances or exercises of warrants since April 30, 2022. The key attributes of the 1,539,999 warrants outstanding, which have a weighted average exercise price of $3.38, are as follows: Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value April 30, 2022 3.89 $427,533 April 30, 2023 2.89 $— October 31, 2023 2.38 $— |
Note 18 _ Share Based Awards
Note 18 – Share Based Awards | 6 Months Ended |
Oct. 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 11,750,000 A. Options The range of assumptions used to calculate the fair value of options granted during the six months ended October 31 was: 2023 2022 Exercise Price $ 0.95 – 1.12 $ 2.38 Stock price on date of grant 0.95 – 1.12 2.38 Risk-free interest rate 3.47 – 4.34 % 3.34 Dividend yield — — Expected term (years) 6.00 – 8.25 8.25 Volatility 242.38 – 260.22 % 260.06 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 2,541,042 1.01 Exercised — — Forfeited or expired (464,334 ) 2.43 Outstanding as of October 31, 2023 6,861,517 1.52 8.54 57,374 Exercisable as of October 31, 2023 3,261,527 $ 1.91 6.96 $ 57,374 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 October 31, 2023 and October 31, 2022, there was $ 2,712,605 3,277,073 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 (229,197 ) 1.92 Forfeited (70,656 ) 1.25 Unvested and outstanding as of October 31, 2023 779,850 $ 2.11 C. Stock Compensation Stock compensation expense by functional operating expense was: Three months ended October 31, Six months ended October 31, 2023 2022 2023 2022 Operations $ 238,522 $ 225,879 $ 429,621 $ 384,310 Research and development 147,629 209,497 275,046 354,295 Sales and marketing 208,903 162,269 374,212 269,343 General and administrative 601,271 649,151 1,029,052 994,319 Total $ 1,196,325 $ 1,246,796 $ 2,107,931 $ 2,002,267 Stock compensation expense pertaining to options totaled $ 1,606,305 890,711 501,626 1,111,556 |
Note 19 _ Derivatives
Note 19 – Derivatives | 6 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Note 19 – Derivatives | Note 19 – Derivatives The Company has completed financings 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 October 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. October 31, 2023 April 30, 2023 Risk-free interest rate 4.88 5.54 2.83 4.51 Expected dividend yield — — Expected term (in years) 1.92 2.50 2.42 3.50 Expected volatility 80.69 107.90 138.49 235.23 As of October 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 six months ended October 31, 2023 and the year ended April 30, 2023 were as follows: October 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 (189,002 ) (1,019,292 ) Balance, end of period $ 399,203 $ 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 | 6 Months Ended |
Oct. 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 Additional related party transactions are disclosed in Note 13 and Note 22. |
Note 21 - Segment Reporting
Note 21 - Segment Reporting | 6 Months Ended |
Oct. 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 six months ended October 31, 2023 Enterprise Consumer Corporate Total Revenues $ 5,678,997 $ 2,926,151 $ — $ 8,605,148 Cost of goods sold 4,303,750 2,539,316 — 6,843,066 Gross margin 1,375,247 386,835 — 1,762,082 Operating expenses 6,494,296 1,206,213 4,453,627 12,154,136 Operating loss (5,119,049 ) (819,378 ) (4,453,627 ) (10,392,054 ) Other expenses, net 257,824 22,706 819,092 1,099,622 Net loss $ (5,376,873 ) $ (842,084 ) (5,272,719 ) $ (11,491,676 ) For the six months ended October 31, 2022 Enterprise Consumer Corporate Total Revenues $ 1,874,163 $ 2,725,570 $ — $ 4,599,733 Cost of goods sold 1,668,192 2,340,259 — 4,008,451 Gross margin 205,971 385,311 — 591,282 Operating expenses 5,276,977 1,026,377 4,758,758 11,062,112 Operating loss (5,071,006 ) (641,066 ) (4,758,758 ) (10,470,830 ) Other expenses, net 159,244 (8,174 ) (565,824 ) (414,754 ) Net loss $ (5,230,250 ) $ (632,892 ) $ (4,192,934 ) $ (10,056,076 ) As of October 31, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 2,989,054 $ 44,431 $ — $ 3,033,485 Inventory, net 9,255,698 2,599,022 — 11,854,720 Inventory deposits $ 1,616,111 $ 1,503,999 $ — $ 3,120,110 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 | 6 Months Ended |
Oct. 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, 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. Mr. Thompson is a significant shareholder in Unusual Machines. The final, amended purchase price of $20 million includes $1 million in cash, payable at closing, a $2 million secured promissory note, 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. |
Note 23 _ Commitments and Conti
Note 23 – Commitments and Contingencies | 6 Months Ended |
Oct. 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 October 31, 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 | 6 Months Ended |
Oct. 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 except as set forth below: On December 11, 2023, the Company closed an offering of 18,400,000 shares of common stock which generated gross proceeds of $9,200,000 and net proceeds of approximately $8,400,000 million. In connection with the offering, the amount of shares issuable under the ATM Facility was reduced to $4,375,000. |
Note 2 _ Summary of Significa_2
Note 2 – Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 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 $20,572 and $151,671 as of October 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 six months ended October 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, 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 and recent customer demand, 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 these instruments approximates fair value due to their short-term nature. 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 issued financial instruments which include embedded features subject to derivative accounting. Specifically, there are warrants outstanding, issued in connection with a convertible debt financing, which include provisions under which the exercise price is equal to the lesser of (i) $1.50 or (ii) the exercise or conversion price of securities issued in a future, qualified offering. Embedded derivatives are valued separately from the host instrument and are recognized as liabilities on the Company's balance sheet. The warrants are valued using a multinomial lattice method that values the derivative liability based on a probability weighted discounted cash flow model. The liability is valued at each reporting date and the change in liability is reflected as a 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 cost 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 October 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,861,517 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 779,850 781,060 Total 9,185,262 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) | 6 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | October 31, 2023 April 30, 2023 Series B Preferred Stock, as converted 3,896 822,230 Stock options 6,861,517 4,784,809 Warrants 1,539,999 1,539,999 Restricted stock 779,850 781,060 Total 9,185,262 7,928,098 |
Note 3 _ Discontinued Operati_2
Note 3 – Discontinued Operations – Sale of Consumer Segment (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three months ended October 31, Six months ended October 31, 2023 2022 2023 2022 Revenues $ 1,056,932 $ 782,850 $ 2,926,151 $ 2,725,570 Cost of goods sold 1,154,200 673,046 2,539,316 2,340,259 Gross Margin (97,268 ) 109,804 386,835 385,311 Operating Expenses Operations 173,825 171,055 383,805 332,838 Research and development 31,054 87,958 77,303 170,764 Sales and marketing 287,413 168,013 691,517 363,291 General and administrative 9,982 104,323 53,588 159,484 Total operating expenses 502,274 531,349 1,206,213 1,026,377 Operating loss (599,542 ) (421,545 ) (819,378 ) (641,066 ) Other (income) expense Interest expense — — 22,856 — Other, net (31 ) (8,050 ) (150 ) (8,174 ) Other (income) expense (31 ) (8,050 ) 22,706 (8,174 ) Net loss from discontinued operations $ (599,511 ) $ (413,495 ) $ (842,084 ) $ (632,892 ) |
[custom:ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresAssetsAndLiabilitiesTextBlock] | October 31, 2023 April 30, 2023 Current assets Cash $ 6,310 $ 86,656 Accounts receivable, net 44,431 61,107 Inventory 2,599,022 3,065,954 Other 1,503,999 2,069,438 Total current assets 4,153,762 5,283,155 Intangible assets, net 20,000 20,000 Other 3,853 3,853 Operating lease right-of-use assets 62,280 84,544 Total long term assets 86,133 108,397 Current liabilities Accounts payable $ 64,777 $ 606,872 Accrued expenses 96,838 109,480 Debt obligations - short term 166,026 — Customer deposits 43,936 244,688 Operating lease liabilities 53,060 49,461 Total current liabilities 424,637 1,010,501 Long term liabilities - Operating lease liabilities 14,356 41,814 Working capital $ 3,729,125 $ 4,272,654 |
Note 5 _ Inventories (Tables)
Note 5 – Inventories (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | October 31, 2023 April 30, 2023 Raw materials $ 7,804,167 $ 8,132,196 Work-in-process 1,327,888 509,381 Finished goods 123,643 278,996 Total $ 9,255,698 $ 8,920,573 |
Note 6 _ Other Current Assets (
Note 6 – Other Current Assets (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | October 31, 2023 April 30, 2023 Prepaid inventory $ 1,616,111 $ 359,500 Prepaid expenses 1,203,209 752,564 Accrued interest income 20,572 151,671 Total $ 2,839,892 $ 1,263,735 |
Note 8 _ Intangible Assets (Tab
Note 8 – Intangible Assets (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | October 31, 2023 April 30, 2023 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Proprietary technology $ 4,967,000 $ (1,259,673 ) $ 3,707,327 $ 4,967,000 $ (841,223 ) $ 4,125,777 Non-compete agreements 81,000 (70,167 ) 10,833 81,000 (56,667 ) 24,333 Customer relationships 39,000 (20,891 ) 18,109 39,000 (18,106 ) 20,894 Total finite-lived assets 5,087,000 (1,350,731 ) 3,736,269 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 $ (1,350,731 ) $ 6,888,269 $ 8,239,000 $ (915,996 ) $ 7,323,004 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Ended: 2024 $ 432,070 2025 842,471 202 815,271 2027 786,679 2028 644,833 Thereafter 214,945 Total $ 3,736,269 |
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 October 31, 2023 $ 17,012,832 |
Note 9 _ Property and Equipme_2
Note 9 – Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | October 31, 2023 April 30, 2023 Equipment and related $ 1,426,424 $ 1,386,373 Leasehold improvements 1,548,609 1,473,890 Furniture and fixtures 157,842 132,752 Accumulated depreciation (565,088 ) (342,657 ) Net carrying value $ 2,567,787 $ 2,650,358 |
Note 10 _ Other Long-Term Ass_2
Note 10 – Other Long-Term Assets (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Note 10 Other Long-term Assets | |
[custom:ScheduleOfOtherLongTermAssetsTableTextBlock] | October 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) | 6 Months Ended |
Oct. 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 $171,620 Weighted average remaining lease term (in years) 2.12 Weighted average discount rate 12% |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Fiscal Year Ended: 2024 174,542 2025 260,743 2026 76,619 2027 79,300 2028 6,627 Total $ 597,831 |
Note 12 _ Debt Obligations (Tab
Note 12 – Debt Obligations (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
[custom:ScheduleOfDebtPaymentsDueTableTextBlock] | Fiscal 2024 643,012 Fiscal 2025 401,569 Total $ 1,044,581 Short term – through October 31, 2024 $ 953,819 Long term – thereafter $ 90,762 |
Note 15 _ Common Stock (Tables)
Note 15 – Common Stock (Tables) | 6 Months Ended |
Oct. 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 18,935 to pay taxes 94,971 Vesting of restricted stock to Board of Directors 113,530 Vesting of restricted stock to consultants 1,761 Conversion of preferred stock 818,334 Issuance of common stock through ATM facilities 53,235 Shares outstanding as of October 31, 2023 55,649,896 |
Note 17 _ Warrants (Tables)
Note 17 – Warrants (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Note 17 Warrants | |
[custom:ScheduleOfWarrantsIssuedAndFairValueTableTextBlock] | Upon Issuance Outstanding at October 31, 2023 Date of Transaction Number of Warrants Initial Fair Value Number of Warrants Fair Value October 2020 399,998 $ 267,999 266,666 $ 125,613 January 2021 675,000 $ 2,870,666 540,000 $ 273,590 |
Note 18 _ Share Based Awards (T
Note 18 – Share Based Awards (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
[custom:ScheduleOfAssumptionsUsed1TableTextBlock] | 2023 2022 Exercise Price $ 0.95 – 1.12 $ 2.38 Stock price on date of grant 0.95 – 1.12 2.38 Risk-free interest rate 3.47 – 4.34 % 3.34 Dividend yield — — Expected term (years) 6.00 – 8.25 8.25 Volatility 242.38 – 260.22 % 260.06 |
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 2,541,042 1.01 Exercised — — Forfeited or expired (464,334 ) 2.43 Outstanding as of October 31, 2023 6,861,517 1.52 8.54 57,374 Exercisable as of October 31, 2023 3,261,527 $ 1.91 6.96 $ 57,374 |
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 (229,197 ) 1.92 Forfeited (70,656 ) 1.25 Unvested and outstanding as of October 31, 2023 779,850 $ 2.11 |
Schedule of Deferred Compensation Arrangement with Individual, Share-Based Payments [Table Text Block] | Three months ended October 31, Six months ended October 31, 2023 2022 2023 2022 Operations $ 238,522 $ 225,879 $ 429,621 $ 384,310 Research and development 147,629 209,497 275,046 354,295 Sales and marketing 208,903 162,269 374,212 269,343 General and administrative 601,271 649,151 1,029,052 994,319 Total $ 1,196,325 $ 1,246,796 $ 2,107,931 $ 2,002,267 |
Note 19 _ Derivatives (Tables)
Note 19 – Derivatives (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
[custom:ScheduleOfAssumptionsUsed2TableTextBlock] | October 31, 2023 April 30, 2023 Risk-free interest rate 4.88 5.54 2.83 4.51 Expected dividend yield — — Expected term (in years) 1.92 2.50 2.42 3.50 Expected volatility 80.69 107.90 138.49 235.23 |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | October 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 (189,002 ) (1,019,292 ) Balance, end of period $ 399,203 $ 588,205 |
Note 21 - Segment Reporting (Ta
Note 21 - Segment Reporting (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Note 21 - Segment Reporting | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the six months ended October 31, 2023 Enterprise Consumer Corporate Total Revenues $ 5,678,997 $ 2,926,151 $ — $ 8,605,148 Cost of goods sold 4,303,750 2,539,316 — 6,843,066 Gross margin 1,375,247 386,835 — 1,762,082 Operating expenses 6,494,296 1,206,213 4,453,627 12,154,136 Operating loss (5,119,049 ) (819,378 ) (4,453,627 ) (10,392,054 ) Other expenses, net 257,824 22,706 819,092 1,099,622 Net loss $ (5,376,873 ) $ (842,084 ) (5,272,719 ) $ (11,491,676 ) For the six months ended October 31, 2022 Enterprise Consumer Corporate Total Revenues $ 1,874,163 $ 2,725,570 $ — $ 4,599,733 Cost of goods sold 1,668,192 2,340,259 — 4,008,451 Gross margin 205,971 385,311 — 591,282 Operating expenses 5,276,977 1,026,377 4,758,758 11,062,112 Operating loss (5,071,006 ) (641,066 ) (4,758,758 ) (10,470,830 ) Other expenses, net 159,244 (8,174 ) (565,824 ) (414,754 ) Net loss $ (5,230,250 ) $ (632,892 ) $ (4,192,934 ) $ (10,056,076 ) As of October 31, 2023 Enterprise Consumer Corporate Total Accounts receivable, net $ 2,989,054 $ 44,431 $ — $ 3,033,485 Inventory, net 9,255,698 2,599,022 — 11,854,720 Inventory deposits $ 1,616,111 $ 1,503,999 $ — $ 3,120,110 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 | 6 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Apr. 30, 2023 | |
Accounting Policies [Abstract] | ||
Series B Preferred Stock, as converted | 3,896 | 822,230 |
Stock options | 6,861,517 | 4,784,809 |
Warrants | 1,539,999 | 1,539,999 |
Restricted stock | 779,850 | 781,060 |
Total | 9,185,262 | 7,928,098 |
Discontinued Operations - resul
Discontinued Operations - results of operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Revenues | $ 1,056,932 | $ 782,850 | $ 2,926,151 | $ 2,725,570 |
Cost of goods sold | 1,154,200 | 673,046 | 2,539,316 | 2,340,259 |
Gross Margin | (97,268) | 109,804 | 386,835 | 385,311 |
Operating Expenses | ||||
Operations | 173,825 | 171,055 | 383,805 | 332,838 |
Research and development | 31,054 | 87,958 | 77,303 | 170,764 |
Sales and marketing | 287,413 | 168,013 | 691,517 | 363,291 |
General and administrative | 9,982 | 104,323 | 53,588 | 159,484 |
Total operating expenses | 502,274 | 531,349 | 1,206,213 | 1,026,377 |
Operating loss | (599,542) | (421,545) | (819,378) | (641,066) |
Other (income) expense | ||||
Interest expense | 22,856 | |||
Other, net | (31) | (8,050) | (150) | (8,174) |
Net loss from discontinued operations | $ (599,511) | $ (413,495) | $ (842,084) | $ (632,892) |
Assets and liabilities for the
Assets and liabilities for the Consumer Segment (Details) - USD ($) | Oct. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 |
Current assets | |||
Cash | $ 6,310 | $ 86,656 | $ 90,810 |
Accounts receivable, net | 44,431 | 61,107 | |
Inventory | 2,599,022 | 3,065,954 | |
Other | 1,503,999 | 2,069,438 | |
Total current assets | 4,153,762 | 5,283,155 | |
Intangible assets, net | 20,000 | 20,000 | |
Other | 3,853 | 3,853 | |
Operating lease right-of-use assets | 62,280 | 84,544 | |
Total long term assets | 86,133 | 108,397 | |
Current liabilities | |||
Accounts payable | 64,777 | 606,872 | |
Accrued expenses | 96,838 | 109,480 | |
Debt obligations - short term | 166,026 | ||
Customer deposits | 43,936 | 244,688 | |
Operating lease liabilities | 53,060 | 49,461 | |
Total current liabilities | 424,637 | 1,010,501 | |
Long term liabilities - Operating lease liabilities | 14,356 | 41,814 | |
Working capital | $ 3,729,125 | $ 4,272,654 |
Note 4 _ Marketable Securities
Note 4 – Marketable Securities (Details Narrative) | Oct. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
[custom:CorporateBondsAtCarryingValueFairValue-0] | $ 2,615,289 |
[custom:CorporateBondsAtCarryingValueCostBasis-0] | 2,826,402 |
[custom:CorporateBondsAtCarryingValueUnrealizedLosses-0] | 211,113 |
[custom:CorporateBondsAtCarryingValueContractualMaturities2-0] | $ 2,615,289 |
Inventories (Details)
Inventories (Details) - USD ($) | Oct. 31, 2023 | Apr. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,804,167 | $ 8,132,196 |
Work-in-process | 1,327,888 | 509,381 |
Finished goods | 123,643 | 278,996 |
Total | $ 9,255,698 | $ 8,920,573 |
Other current assets (Details)
Other current assets (Details) - USD ($) | Oct. 31, 2023 | Apr. 30, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid inventory | $ 1,616,111 | $ 359,500 |
Prepaid expenses | 1,203,209 | 752,564 |
Accrued interest income | 20,572 | 151,671 |
Total | $ 2,839,892 | $ 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 ($) | Oct. 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 | (1,259,673) | (841,223) |
Non-compete agreements | (70,167) | (56,667) |
Customer relationships | (20,891) | (18,106) |
Total finite-lived assets | (1,350,731) | (915,996) |
Brand name | ||
Total indefinite-lived assets | ||
Total intangible assets, net | (1,350,731) | (915,996) |
Intangible Assets Net Carrying Value [Member] | ||
Proprietary technology | 3,707,327 | 4,125,777 |
Non-compete agreements | 10,833 | 24,333 |
Customer relationships | 18,109 | 20,894 |
Total finite-lived assets | 3,736,269 | 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 | $ 6,888,269 | $ 7,323,004 |
Expected amortization expense f
Expected amortization expense for the unamortized finite-lived intangible assets (Details) | Oct. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
$ 432,070 | |
842,471 | |
815,271 | |
786,679 | |
644,833 | |
214,945 | |
$ 3,736,269 |
Composition of, and changes in
Composition of, and changes in goodwill (Details) - USD ($) | 6 Months Ended | 9 Months Ended | 18 Months Ended | 28 Months Ended | ||
Oct. 31, 2023 | Oct. 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) | 6 Months Ended |
Oct. 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 ($) | Oct. 31, 2023 | Apr. 30, 2023 |
Property, Plant and Equipment [Abstract] | ||
Equipment and related | $ 1,426,424 | $ 1,386,373 |
Leasehold improvements | 1,548,609 | 1,473,890 |
Furniture and fixtures | 157,842 | 132,752 |
Accumulated depreciation | (565,088) | (342,657) |
Net carrying value | $ 2,567,787 | $ 2,650,358 |
Note 9 _ Property and Equipme_3
Note 9 – Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 222,431 | $ 91,804 |
Other long term assets (Details
Other long term assets (Details) - USD ($) | Oct. 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) | 6 Months Ended |
Oct. 31, 2023 USD ($) | |
Operating Lease, Expense | $ 170,505 |
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) | 6 Months Ended |
Oct. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating cash paid to settle lease liabilities | $ 171,620 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 1 month 13 days |
Weighted average discount rate | 12% |
Future lease payment obligation
Future lease payment obligations (Details) | Oct. 31, 2023 USD ($) |
Leases [Abstract] | |
$ 174,542 | |
260,743 | |
76,619 | |
79,300 | |
6,627 | |
$ 597,831 |
Note 11 _ Operating Leases (Det
Note 11 – Operating Leases (Details Narrative) | 6 Months Ended |
Oct. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating Lease, Expense | $ 170,505 |
Short-Term Lease, Cost | $ 3,300 |
Outstanding principal payments
Outstanding principal payments (Details) | Oct. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2025 | $ 401,569 |
Total | 1,044,581 |
Short term – through October 31, 2024 | 953,819 |
Long term – thereafter | $ 90,762 |
Note 12 _ Debt Obligations (Det
Note 12 – Debt Obligations (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | 15 Months Ended | |
Sep. 30, 2021 | Apr. 30, 2022 | Oct. 31, 2023 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2022 | Apr. 30, 2023 | Oct. 31, 2022 | Apr. 30, 2022 | Aug. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||||||
Long-Term Debt, Gross | $ 639,663 | |||||||||
Accrued Liabilities, Current | $ 643,224 | $ 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 | 1,107 | |||||||||
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 | 47,442 | 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 | $ 7,476 | $ 11,412 | ||||||||
[custom:FinancingAgreementFundingOfPurchaseOfFixedAsset] | $ 24,383 |
Note 13 _ Due to Related Party
Note 13 – Due to Related Party (Details Narrative) - Due To Related Party 2 [Member] - USD ($) | 1 Months Ended | 28 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | Oct. 31, 2023 | |
Short-Term Debt [Line Items] | |||
[custom:LineOfCreditObligationAssumedInConnectionWithAcquisition] | $ 47,853 | ||
[custom:DebtInstrumentInterestRateDuringPeriod1] | 6.67% | ||
[custom:DueToOtherRelatedPartyClassifiedCurrent-0] | $ 37,196 | ||
[custom:DebtInstrumentOutstandingAccruedInterestPayment] | $ 292 |
Note 14 _ Income Taxes (Details
Note 14 – Income Taxes (Details Narrative) - USD ($) | Oct. 31, 2023 | Apr. 30, 2023 |
Income Tax Disclosure [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ (66,078,469) | $ (54,586,793) |
Deferred Tax Assets, Operating Loss Carryforwards | $ 12,229,000 | $ 10,101,000 |
Summary of shares of common sto
Summary of shares of common stock issued (Details) - Common Stock [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Oct. 31, 2023 | Apr. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Shares, Outstanding, Beginning Balance | 55,541,875 | 54,568,065 | 53,748,735 |
Vesting of restricted stock to employees, net of shares withheld of 18,935 to pay taxes | 94,971 | 653,308 | |
Vesting of restricted stock to Board of Directors | 113,530 | 116,507 | |
Vesting of restricted stock to consultants | 1,761 | 9,683 | |
Shares issued for services | 39,832 | ||
Shares, Outstanding, Ending Balance | 55,649,896 | 55,649,896 | 54,568,065 |
Conversion of preferred stock | $ 818,334 | ||
Issuance of common stock through ATM facilities | 53,235 | 53,235 |
Note 15 _ Common Stock (Details
Note 15 – Common Stock (Details Narrative) | 6 Months Ended |
Oct. 31, 2023 USD ($) shares | |
Equity [Abstract] | |
[custom:AggregateCommonStockSoldUnder2023ATMFacilityShares] | shares | 53,235 |
[custom:AggregateCommonStockSoldUnder2023ATMFacilityProceeds] | $ 57,000 |
[custom:AggregateCommonStockSoldUnder2023ATMFacilityProceedsNet] | 55,700 |
[custom:LegalFeesATMFacilityEstablishment] | 46,000 |
[custom:CommonStockAvailableForSaleUnder2023ATMFacilityValue] | $ 16,943,000 |
Note 16 _ Preferred Stock (Deta
Note 16 – Preferred Stock (Details Narrative) - shares | 6 Months Ended | |
Oct. 31, 2023 | Apr. 30, 2023 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Outstanding | 4,676 | 986,676 |
Series A Preferred Stock 2 [Member] | ||
Class of Stock [Line Items] | ||
[custom:StockIssuedDuringPeriodSharesCommonStockIssuableUponConversionOfPreferredStock] | 3,896 |
Summary of warrants issued and
Summary of warrants issued and fair values (Details) - USD ($) | 1 Months Ended | ||
Jan. 31, 2021 | Oct. 31, 2020 | Oct. 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] | $ 125,613 | ||
[custom:NumberOfWarrantsOutstanding2-0] | 540,000 | ||
[custom:FairValueOfWarrantsOutstanding2-0] | $ 273,590 |
Note 17 _ Warrants (Details Nar
Note 17 – Warrants (Details Narrative) - $ / shares | 1 Months Ended | ||
Apr. 30, 2022 | May 31, 2021 | Apr. 30, 2021 | |
Note 17 Warrants | |||
[custom:WarrantsIssuedExercisePrice] | $ 5.625 | $ 5 | $ 1.50 |
[custom:WarrantsToPurchaseSharesIssued] | 533,333 | 200,000 |
Assumptions used to calculate f
Assumptions used to calculate fair value of options granted (Details) - Options Assumptions Used [Member] - $ / shares | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price | $ 0.95 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice1-0] | 1.12 | $ 2.38 |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate-0] | 0.95 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsStockPriceOnGrantDate1-0] | $ 1.12 | $ 2.38 |
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 | 4.34% | 3.34% |
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] | 8 years 3 months | 8 years 3 months |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 242.38% | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 260.22% | 260.06% |
Summary of activity under the P
Summary of activity under the Plan (Details) - Options 1 [Member] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 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 | 6,861,517 | 3,694,142 | 4,784,809 | |
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 1.52 | $ 2.17 | $ 1.88 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 6 months 14 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 | $ 57,374 | $ 1,407,545 | $ 74,586 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 2,541,042 | 1,503,500 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.01 | $ 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 | (464,334) | (412,833) | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 2.43 | $ 2.67 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 3,261,527 | |||
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 1.91 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 11 months 15 days | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 57,374 |
Summary of restricted stock act
Summary of restricted stock activity under the Plan (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2020 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockUnvestedAndOutstandingNumber-0] | 779,850 | 781,060 | 1,083,675 | |
[custom:SharebasedCompensationSharesRestrictedStockUnvestedAndOutstandingWeightedAverageExercisePrice-0] | $ 2.11 | $ 2.44 | $ 2.59 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodGross] | 298,643 | 780,884 | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockGrantsInPeriodWeightedAverageGrantDateFairValue] | $ 1.06 | $ 2.14 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardRestrictedStockNumberVestedInPeriod] | (229,197) | (1,062,372) | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardRestrictedStockNumberVestedInPeriodWeightedAverageGrantDateFairValue] | $ 1.92 | $ 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 | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Operations | $ 238,522 | $ 225,879 | $ 429,621 | $ 384,310 |
Research and development | 147,629 | 209,497 | 275,046 | 354,295 |
Sales and marketing | 208,903 | 162,269 | 374,212 | 269,343 |
General and administrative | 601,271 | 649,151 | 1,029,052 | 994,319 |
Total | $ 1,196,325 | $ 1,246,796 | $ 2,107,931 | $ 2,002,267 |
Note 18 _ Share Based Awards (D
Note 18 – Share Based Awards (Details Narrative) - USD ($) | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
[custom:NumberOfSharesIssuableInConnectionWithAwardsUnderPlanMaximum] | 11,750,000 | |
[custom:UnrecognizedStockBasedCompensationExpenseRelatedToUnvestedStockOptions] | $ 2,712,605 | $ 3,277,073 |
[custom:StockCompensationExpensePertainingToOptions] | 1,606,305 | 890,711 |
[custom:StockCompensationExpensePertainingToRestrictedStockUnits] | $ 501,626 | $ 1,111,556 |
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] | 6 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Apr. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 4.88% | 2.83% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 5.54% | 4.51% |
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 | 1 year 11 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 | 80.69% | 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) | 6 Months Ended |
Oct. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance, beginning of period | $ 588,205 |
Additions | |
Eliminated upon conversion of notes/exercise of warrants | |
Changes in fair value | (189,002) |
Balance, end of period | $ 399,203 |
Note 20 - Related-Party Trans_2
Note 20 - Related-Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 7 Months Ended | |
Jan. 31, 2023 | Apr. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
[custom:NoteAgreementWithRelatedPartyPrincipalAmount] | $ 510,323 | |||
Director 1 [Member] | ||||
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 | 6 Months Ended | |||||
Oct. 31, 2023 | Jul. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2023 | |
Revenues | $ 3,930,868 | $ 747,612 | $ 5,678,997 | $ 1,874,163 | |||
Gross margin | 1,200,582 | 123,851 | 1,375,247 | 205,971 | |||
Operating expenses | 5,760,223 | 6,474,640 | 10,947,923 | 10,035,735 | |||
Net loss | (5,681,328) | $ (5,810,348) | $ (6,244,477) | $ (3,811,599) | (11,491,676) | (10,056,076) | |
Inventory, net | 9,255,698 | 9,255,698 | $ 8,920,573 | ||||
Other Segments [Member] | |||||||
Revenues | 5,678,997 | 1,874,163 | |||||
Cost of goods sold | 4,303,750 | 1,668,192 | |||||
Gross margin | 1,375,247 | 205,971 | |||||
Operating expenses | 6,494,296 | 5,276,977 | |||||
Operating loss | (5,119,049) | (5,071,006) | |||||
Other expenses, net | 257,824 | 159,244 | |||||
Net loss | (5,376,873) | (5,230,250) | |||||
Accounts receivable, net | 2,989,054 | 2,989,054 | 719,862 | ||||
Inventory, net | 9,255,698 | 9,255,698 | 8,920,573 | ||||
Inventory deposits | 1,616,111 | 1,616,111 | 359,500 | ||||
Consumer [Member] | |||||||
Revenues | 2,926,151 | 2,725,570 | |||||
Cost of goods sold | 2,539,316 | 2,340,259 | |||||
Gross margin | 386,835 | 385,311 | |||||
Operating expenses | 1,206,213 | 1,026,377 | |||||
Operating loss | (819,378) | (641,066) | |||||
Other expenses, net | 22,706 | (8,174) | |||||
Net loss | (842,084) | (632,892) | |||||
Accounts receivable, net | 44,431 | 44,431 | 61,107 | ||||
Inventory, net | 2,599,022 | 2,599,022 | 3,065,954 | ||||
Inventory deposits | 1,503,999 | 1,503,999 | 2,062,038 | ||||
Corporate Segment [Member] | |||||||
Revenues | |||||||
Cost of goods sold | |||||||
Gross margin | |||||||
Operating expenses | 4,453,627 | 4,758,758 | |||||
Operating loss | (4,453,627) | (4,758,758) | |||||
Other expenses, net | 819,092 | (565,824) | |||||
Net loss | (5,272,719) | (4,192,934) | |||||
Accounts receivable, net | |||||||
Inventory, net | |||||||
Inventory deposits | |||||||
Corporate and Other [Member] | |||||||
Revenues | 8,605,148 | 4,599,733 | |||||
Cost of goods sold | 6,843,066 | 4,008,451 | |||||
Gross margin | 1,762,082 | 591,282 | |||||
Operating expenses | 12,154,136 | 11,062,112 | |||||
Operating loss | (10,392,054) | (10,470,830) | |||||
Other expenses, net | 1,099,622 | (414,754) | |||||
Net loss | (11,491,676) | $ (10,056,076) | |||||
Accounts receivable, net | 3,033,485 | 3,033,485 | 780,969 | ||||
Inventory, net | 11,854,720 | 11,854,720 | 11,986,527 | ||||
Inventory deposits | $ 3,120,110 | $ 3,120,110 | $ 2,421,538 |