| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note
3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim
Financial Statements The
accompanying condensed financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and disclosures required by accounting principles generally accepted in the
United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all
adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period
presented. The results of operations for the three months ended July 31, 2023, are not necessarily indicative of the results that may
be expected for any future period or the fiscal year ending April 30, 2024 and should be read in conjunction with the Company’s
Annual Report on Form 10-K for the year ended April 30, 2023, filed with the Securities and Exchange Commission on September 14, 2023. Use
of Estimates The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. Financial
Statement Reclassification Certain
prior year amounts within accounts payable, accrued expenses, and certain operating expenses have been reclassified for consistency with
the current year presentation and had no effect on the Company’s balance sheet, net loss, shareholders’ deficit or cash flows. Cash
and Cash Equivalents The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
The majority of payments due from banks for credit card transactions process within 24 to 48 hours and are accordingly classified as
cash and cash equivalents. Accounts
Receivable The
Company’s accounts receivable are non-interest bearing trade receivables resulting from the sale of products and payable over terms
ranging from 15 to 60 days. The Company provides an allowance for doubtful accounts at the point when collection is considered doubtful.
Once all collection efforts have been exhausted, the Company charges-off the receivable with the allowance for doubtful accounts. The
Company recorded $ 200,000 209,690 Inventory Inventory
is valued at the lower of the cost (determined principally on a first-in, first-out basis) or net realizable value. The Company’s
valuation of inventory includes inventory reserves for inventory that will be sold below cost and the impact of inventory shrink. Inventory
reserves are based on historical information and assumptions about future demand and inventory shrink trends. The Company’s inventory
as of July 31, 2023 and April 30, 2023 consisted of the following: SCHEDULE OF INVENTORY
July 31, 2023 April 30, 2023
Finished Goods $ 400,598 $ 1,509,985
Component/Replacement Parts 2,064,041 1,712,553
Capitalized Duty/Freight 47,279 517,228
Inventory Reserve (175,000 ) (550,000 )
Total $ 2,336,918 $ 3,189,766 Prepaid
Inventory Prepaid
inventory represents inventory that is in-transit that has been paid for but not received from the Company’s third-party vendors.
The Company typically prepays for the purchase of materials and receives the products within three months after making payments. The
Company continuously monitors delivery from, and payments to, the vendors. If the Company has difficulty receiving products from a vendor,
the Company would cease purchasing products from such vendors in future periods. The Company has not had difficulty receiving products
during the reporting periods. Property
and equipment Property
and equipment acquired through business combinations are stated at the estimated fair value at the date of the acquisition. Purchases
of property and equipment are stated at cost, net of accumulated depreciation and impairment losses. Expenditures that materially increase
the useful life of the assets are capitalized. Ordinary repairs and maintenance are expensed as incurred. Depreciation and amortization
are computed using the straight-line method over the estimated useful lives of the related assets, which is an average of 5 Concentration
of Credit Risk The
Company maintains its cash in bank deposit accounts, the balances of which at times may exceed insured limits. The Company continually
monitors its banking relationships and consequently has not experienced any losses in such accounts. While we may be exposed to credit
risk, we consider the risk remote and do not expect that any such risk would result in a significant effect on our results of operations
or financial condition. See Note 4 for further details on the Company’s concentration of credit risk as well as other risks and
uncertainties. Revenue
Recognition The
Company recognizes revenue for their continuing operations in accordance with Accounting Standards Codification (“ASC”) 606,
the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services.
The Company recognizes revenue for its performance obligation associated with its contracts with customers at a point in time once products
are shipped. Amounts collected from customers in advance of shipping products ordered are reflected as contract liabilities on the accompanying
consolidated balance sheets. The Company’s standard terms are non-cancelable and do not provide for the right-of-return, other
than for defective merchandise covered under the Company’s standard warranty. The Company has not historically experienced any
significant returns or warranty issues. The
Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of this revenue standard
is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied
to achieve that core principle: Step
1: Identify the contract with the customer The
Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred
can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and
intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts
should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance
obligation. Step
2: Identify the performance obligations in the contract The
Company’s customers are buying an integrated system. In evaluating whether the equipment is a separate performance obligation,
the Company’s management considered the customer’s ability to benefit from the equipment on its own or together with other
readily available resources and if so, whether the service and equipment are separately identifiable (i.e., is the service highly dependent
on, or highly interrelated with the equipment). Because the Products and Services included in the customer’s contract are integrated
and highly interdependent, and because they must work together to deliver the Solution, the Company has concluded that Products installed
on customer’s premise and Services contracted for by the customer are generally not distinct within the context of the contract
and, therefore, constitute a single, combined performance obligation. Step
3: Determine the transaction price The
transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods
or services to a customer. The consideration promised in a contract with a customer includes predetermined fixed amounts, variable amounts,
or both. The Company’s contracts do not include any rights of returns or refunds. The
Company collects each year’s service fees in advance and should therefore consider the existence of a significant financing component.
However, due to the fact that the payments are provided for the service of a one-year term, the Company elected to apply the practical
expedient under ASC 606 which exempts the adjustment of the consideration for the existence of a significant financing component when
the period between the transfer of the services and the payment for such services is one year or less. Step
4: Allocate the transaction price to the performance obligations in the contract Contracts
that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on
each performance obligation’s relative standalone selling price (“SSP”). The Company has identified a single performance
obligation in the contract, and therefore, the allocation provisions under ASC 606 do not apply to the Company’s contracts. Step
5: Recognize revenue when the Company satisfies a performance obligation Revenues
for the Company’s single, combined performance obligation are recognized on a straight-line basis over the customer’s contract
term, which is the period in which the parties to the contract have enforceable rights and obligations (Typically 3-4 years). Business
Combinations Upon
acquisition of a company, we determine if the transaction is a business combination, which is accounted for using the acquisition method
of accounting. Under the acquisition method, once control is obtained of a business, the assets acquired, and liabilities assumed, are
recorded at fair value. We use our best estimates and assumptions to assign fair value to the tangible and intangible assets acquired
and liabilities assumed at the acquisition date. One of the most significant estimates relates to the determination of the fair value
of these assets and liabilities. The determination of the fair values is based on estimates and judgments made by management. Our estimates
of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable. Measurement
period adjustments are reflected at the time identified, up through the conclusion of the measurement period, which is the time at which
all information for determination of the values of assets acquired and liabilities assumed is received and is not to exceed one year
from the acquisition date. We may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities
assumed, with the corresponding offset to goodwill. The Company elected to apply pushdown accounting to all entities acquired. Additionally,
uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the
acquisition date. We continue to collect information and reevaluate these estimates and assumptions periodically and record any adjustments
to preliminary estimates to goodwill, provided we are within the measurement period. If outside of the measurement period, any subsequent
adjustments are recorded to the consolidated statement of operations. Fair
Value of Financial Instruments Fair
value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for
inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities,
is as follows: Level
1 — Quoted prices in active markets for identical assets or liabilities Level
2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities Level
3 — Unobservable pricing inputs in the market Financial
assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair
value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may
affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. The
Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable. The carrying amount
of these financial instruments approximates fair value due to their short-term maturity. The
Company’s contingent consideration in connection with the acquisition of Gameface was calculated using Level 3 inputs. The fair
value of contingent consideration as of July 31, 2023 and April 30, 2023 was $ 418,455 418,455 The
Company estimates the fair value of its intangible assets using Level 3 assumptions, primarily based on the income approach utilizing
the discounted cash flow method. The
Company’s derivative liabilities were calculated using Level 2 assumptions on the issuance and balance sheet dates via a Black-Scholes
option pricing model and consisted of the following ending balances and gain amounts as of and for the three months ended July 31, 2023: SCHEDULE OF DERIVATIVE LIABILITIES
Note derivative is related to July 31, 2023 ending balance (Gain) loss for the three months ended July 31, 2023
4/11/21 profit guaranty $ 1,456,854 $ -
8/6/21 convertible notes 74,958 (26,966 )
6/17/22 underwriter warrants 4,966 (1,565 )
9/30/22 warrants issued with common stock 4,668,608 (1,440,951 )
1/6/2023 warrants issued with note payable 2,139,666 (675,072 )
Total $ 8,345,052 $ (2,144,554 ) The
Black-Scholes option pricing model assumptions for the derivative liabilities during the periods ended July 31, 2023 and 2022 consisted
of the following: SCHEDULE
OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD
Period Ended July 31, 2023 Period Ended July 31, 2022
Expected life in years 0.7 10 4 4.3
Stock price volatility 150 % 50 148 %
Risk free interest rate 4.08 5.37 % 2.90 3.27 %
Expected dividends 0 % 0 % Income
Taxes Income
taxes are accounted for in accordance with the provisions of ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the amounts that are more likely than not to be realized. Intangible
Assets Intangible
assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020. The Company also acquired
intangible assets as a part of the Gameface acquisition. These intangible assets include tradenames, internally developed software, and
customer relationships. The acquired intangible assets are amortized based on the estimated present value of cash flows of each class
of intangible assets in order to determine their economic useful life. During the three months ended July 31, 2023, the Company impaired
their intangible assets down to a nominal value of $ 1,000 Impairment
of Long-Lived Assets In
accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate
that their net book value may not be recoverable. Factors which could trigger impairment review include significant underperformance
relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy
for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends.
When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related
asset or group of assets over their estimated useful lives against their respective carrying amount. If those net undiscounted cash flows
do not exceed the carrying amount, impairment, if any, is based on the excess of the carrying amount over the fair value based on the
market value or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. The
Company impaired $ 100,281 14,791 Goodwill The
Company accounts for goodwill in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires
that goodwill not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The Company records
goodwill as the excess purchase price over assets acquired and includes any work force acquired as goodwill. Goodwill is evaluated for
impairment on an annual basis. With
the adoption of the ASU 2017-04, which eliminates the second step of the goodwill impairment test, the Company tests impairment of goodwill
in one step. In this step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company
determines the fair value of its reporting units with goodwill using a combination of a discounted cash flow and a market value approach.
If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the Company will
record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. If the fair value of
the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company
will not record an impairment charge. The
Company impaired all goodwill as of April 30, 2023. Share-Based
Payment The
Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation (ASC 718). Under the fair value
recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award
and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. Warrants The
Company grants warrants to key employees and executives as compensation on a discretionary basis. The Company also grants warrants in
connection with certain note payable agreements and other key arrangements. The Company is required to estimate the fair value of share-based
awards on the measurement date and recognize as expense that value of the portion of the award that is ultimately expected to vest over
the requisite service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 11. The
warrants granted during the periods ended July 31, 2023 and 2022 were valued using a Black-Scholes option pricing model on the date of
grant using the following assumptions: SCHEDULE
OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD
Period Ended July 31, 2023 Period Ended July 31, 2022
Expected life in years - 5 10
Stock price volatility - % 50 148 %
Risk free interest rate - % 2.50 3.50 %
Expected dividends - % 0 % Foreign
Currency Translation Our
functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency
for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot
rate in effect at the applicable reporting date. Our consolidated statements of comprehensive loss are translated at the weighted average
rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component
of accumulated other comprehensive loss in shareholders’ equity. Realized and unrealized transaction gains and losses generated
by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income
(loss) in the period in which they occur. Earnings
Per Share Basic
earnings per share are calculated by dividing the income available to shareholders by the weighted-average number of common shares
outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common
share equivalents outstanding during the period. All
common stock equivalents such as shares to be issued for the conversion of notes payable and warrants were excluded from the calculation
of diluted earnings per share as the effect is antidilutive. As a result, the basic and diluted earnings per share are the same for each
of the periods presented. Recent
Accounting Pronouncements Recently
Adopted In
January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles – Goodwill and
Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies how an entity is required
to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under ASU 2017-04, goodwill impairment will
be tested by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount
by which the carrying amount exceeds the reporting unit’s fair value. The new guidance must be applied on a prospective basis and
is effective for periods beginning after December 15, 2022, with early adoption permitted. The Company adopted ASU 2017-04 effective
May 1, 2021. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In
December 2019, the FASB issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In
August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives
and Hedging Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s
Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible
debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being
separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation
models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition
of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued
with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives
scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06
will be effective for public companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal
years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within
those fiscal years. The Company is currently evaluating the impact that the adoption of ASU 2020-06 will have on the Company’s
consolidated financial statement presentation or disclosures. In
June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments (“ASC 326”). The guidance replaces the incurred loss methodology with an expected loss methodology that is referred
to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology
is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also
applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial
guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases.
ASC 326 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses as well as
the credit quality and underwriting standards of a company’s portfolio. In addition, ASC 326 made changes to the accounting for
available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down
on available-for-sale debt securities the Company does not intend to sell or believes that it is more likely than not they will be required
to sell. The ASU can be adopted no later than January 1, 2020 for SEC filers and January 1, 2023 for private companies and smaller reporting
companies. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In
October 2021, the FASB issued ASU 2021-08, “Business Combinations – Accounting for Contract Assets and Contract Liabilities
(Topic 805)”. The amendments in this Update address diversity and inconsistency related to the recognition and measurement of contract
assets and contract liabilities acquired in a business combination. The amendments in this Update require that an acquirer recognize
and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts
with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal
years. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. The
FASB has issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock
Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2021-04 provides
guidance that an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written
call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument.
The standard also provides guidance on how an entity should measure and recognize the effect of a modification or an exchange of a freestanding
equity-classified written call option that remains equity classified. The amendments in this ASU are effective for the Company for fiscal
years beginning after December 15, 2021. Early adoption is permitted for all entities, including adoption in an interim period. The adoption
of the new standard did not have a material effect on the Company’s consolidated financial statements. Other
recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s
present or future consolidated financial statements. | Note
3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use
of Estimates The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. Financial
Statement Reclassification Certain
prior year amounts within accounts payable, accrued expenses, and certain operating expenses have been reclassified for consistency with
the current year presentation and had no effect on the Company’s balance sheet, net loss, shareholders’ deficit or cash flows. Cash
and Cash Equivalents The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
The majority of payments due from banks for credit card transactions process within 24 to 48 hours and are accordingly classified as
cash and cash equivalents. Accounts
Receivable The
Company’s accounts receivable are non-interest bearing trade receivables resulting from the sale of products and payable over terms
ranging from 15 to 60 days. The Company provides an allowance for doubtful accounts at the point when collection is considered doubtful.
Once all collection efforts have been exhausted, the Company charges-off the receivable with the allowance for doubtful accounts. The
Company recorded $ 209,690 175,000 Inventory Inventory
is valued at the lower of the cost (determined principally on a first-in, first-out basis) or net realizable value. The Company’s
valuation of inventory includes inventory reserves for inventory that will be sold below cost and the impact of inventory shrink. Inventory
reserves are based on historical information and assumptions about future demand and inventory shrink trends. The Company’s inventory
as of April 30, 2023 and April 30, 2022 consisted of the following: SCHEDULE OF INVENTORY
April 30, 2023 April 30, 2022
Finished Goods $ 1,509,985 $ 4,073,791
Component/Replacement Parts 1,712,553 2,559,848
Capitalized Duty/Freight 517,228 1,328,198
Inventory Reserve (550,000 ) (100,000 )
Total $ 3,189,766 $ 7,861,837 Prepaid
Inventory Prepaid
inventory represents inventory that is in-transit that has been paid for but not received from the Company’s third-party vendors.
The Company typically prepays for the purchase of materials and receives the products within three months after making payments. The
Company continuously monitors delivery from, and payments to, the vendors. If the Company has difficulty receiving products from a vendor,
the Company would cease purchasing products from such vendors in future periods. The Company has not had difficulty receiving products
during the reporting periods. Property
and equipment Property
and equipment acquired through business combinations are stated at the estimated fair value at the date of the acquisition. Purchases
of property and equipment are stated at cost, net of accumulated depreciation and impairment losses. Expenditures that materially increase
the useful life of the assets are capitalized. Ordinary repairs and maintenance are expensed as incurred. Depreciation and amortization
are computed using the straight-line method over the estimated useful lives of the related assets, which is an average of 5 Concentration
of Credit Risk The
Company maintains its cash in bank deposit accounts, the balances of which at times may exceed insured limits. The Company continually
monitors its banking relationships and consequently has not experienced any losses in such accounts. While we may be exposed to credit
risk, we consider the risk remote and do not expect that any such risk would result in a significant effect on our results of operations
or financial condition. See Note 4 for further details on the Company’s concentration of credit risk as well as other risks and
uncertainties. Revenue
Recognition The
Company recognizes revenue for their continuing operations in accordance with Accounting Standards Codification (“ASC”) 606,
the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services.
The Company recognizes revenue for its performance obligation associated with its contracts with customers at a point in time once products
are shipped. Amounts collected from customers in advance of shipping products ordered are reflected as contract liabilities on the accompanying
consolidated balance sheets. The Company’s standard terms are non-cancelable and do not provide for the right-of-return, other
than for defective merchandise covered under the Company’s standard warranty. The Company has not historically experienced any
significant returns or warranty issues. The
Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of this revenue standard
is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied
to achieve that core principle: Step
1: Identify the contract with the customer The
Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred
can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and
intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts
should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance
obligation. Step
2: Identify the performance obligations in the contract The
Company’s customers are buying an integrated system. In evaluating whether the equipment is a separate performance obligation,
the Company’s management considered the customer’s ability to benefit from the equipment on its own or together with other
readily available resources and if so, whether the service and equipment are separately identifiable (i.e., is the service highly dependent
on, or highly interrelated with the equipment). Because the Products and Services included in the customer’s contract are integrated
and highly interdependent, and because they must work together to deliver the Solution, the Company has concluded that Products installed
on customer’s premise and Services contracted for by the customer are generally not distinct within the context of the contract
and, therefore, constitute a single, combined performance obligation. Step
3: Determine the transaction price The
transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods
or services to a customer. The consideration promised in a contract with a customer includes predetermined fixed amounts, variable amounts,
or both. The Company’s contracts do not include any rights of returns or refunds. The
Company collects each year’s service fees in advance and should therefore consider the existence of a significant financing component.
However, due to the fact that the payments are provided for the service of a one-year term, the Company elected to apply the practical
expedient under ASC 606 which exempts the adjustment of the consideration for the existence of a significant financing component when
the period between the transfer of the services and the payment for such services is one year or less. Step
4: Allocate the transaction price to the performance obligations in the contract Contracts
that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on
each performance obligation’s relative standalone selling price (“SSP”). The Company has identified a single performance
obligation in the contract, and therefore, the allocation provisions under ASC 606 do not apply to the Company’s contracts. Step
5: Recognize revenue when the Company satisfies a performance obligation Revenues
for the Company’s single, combined performance obligation are recognized on a straight-line basis over the customer’s contract
term, which is the period in which the parties to the contract have enforceable rights and obligations (Typically 3-4 years). Business
Combinations Upon
acquisition of a company, we determine if the transaction is a business combination, which is accounted for using the acquisition method
of accounting. Under the acquisition method, once control is obtained of a business, the assets acquired, and liabilities assumed, are
recorded at fair value. We use our best estimates and assumptions to assign fair value to the tangible and intangible assets acquired
and liabilities assumed at the acquisition date. One of the most significant estimates relates to the determination of the fair value
of these assets and liabilities. The determination of the fair values is based on estimates and judgments made by management. Our estimates
of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable. Measurement
period adjustments are reflected at the time identified, up through the conclusion of the measurement period, which is the time at which
all information for determination of the values of assets acquired and liabilities assumed is received and is not to exceed one year
from the acquisition date. We may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities
assumed, with the corresponding offset to goodwill. The Company elected to apply pushdown accounting to all entities acquired. Additionally,
uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the
acquisition date. We continue to collect information and reevaluate these estimates and assumptions periodically and record any adjustments
to preliminary estimates to goodwill, provided we are within the measurement period. If outside of the measurement period, any subsequent
adjustments are recorded to the consolidated statement of operations. Fair
Value of Financial Instruments Fair
value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for
inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities,
is as follows: Level
1 — Quoted prices in active markets for identical assets or liabilities Level
2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities Level
3 — Unobservable pricing inputs in the market Financial
assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair
value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may
affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy. The
Company’s financial instruments consist of cash and cash equivalents, accounts receivable, and accounts payable. The carrying amount
of these financial instruments approximates fair value due to their short-term maturity. The
Company’s contingent consideration in connection with the acquisition of Gameface was calculated using Level 3 inputs. The fair
value of contingent consideration as of April 30, 2023 and 2022 was $ 418,455 1,334,000 The
Company estimates the fair value of its intangible assets using Level 3 assumptions, primarily based on the income approach utilizing
the discounted cash flow method. The
Company’s derivative liabilities were calculated using Level 2 assumptions on the issuance and balance sheet dates via a Black-Scholes
option pricing model and consisted of the following ending balances and gain amounts as of and for the year ended April 30, 2023: SCHEDULE OF DERIVATIVE LIABILITIES
April 30, 2023 (Gain) loss for the year
Note derivative is related to ending balance ended April 30, 2023
4/11/21 profit guaranty $ 1,456,854 $ 395,304
8/6/21 convertible notes 101,924 (2,611,410 )
6/17/22 underwriter warrants 6,531 (57,951 )
Other derivative liabilities eliminated in uplist - (1,604,413 )
9/30/22 warrants issued with common stock 6,109,559 (6,170,728 )
1/6/2023 warrants issued with note payable 2,814,738 (900,819 )
Total $ 10,489,606 $ (10,950,017 ) The
Company also recognized derivative expense of $ 7,280,405 1,715,557 SCHEDULE
OF DERIVATIVE AND WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING METHOD
Year Ended April 30, 2023 Year Ended April 30, 2022
Expected life in years 3.25 10 1.95 4.3
Stock price volatility 50 150 % 50 %
Risk free interest rate 2.90% 4.34 % 2.67% 2.90 %
Expected dividends 0 % 0 % Refer
to Note 10 and Note 11 for more information regarding the derivative instruments. Income
Taxes Income
taxes are accounted for in accordance with the provisions of ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the amounts that are more likely than not to be realized. Intangible
Assets Intangible
assets relate to the “Slinger” technology trademark, which the Company purchased on November 10, 2020. The Company also acquired
intangible assets as a part of the Gameface acquisition. These intangible assets include tradenames, internally developed software, and
customer relationships. The acquired intangible assets are amortized based on the estimated present value of cash flows of each class
of intangible assets in order to determine their economic useful life. All intangible assets acquired with the PlaySight transaction
are included in discontinued operations. Refer to Note 6 for more information. Impairment
of Long-Lived Assets In
accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate
that their net book value may not be recoverable. Factors which could trigger impairment review include significant underperformance
relative to historical or projected future operating results, significant changes in the manner of use of the assets or the strategy
for the overall business, a significant decrease in the market value of the assets or significant negative industry or economic trends.
When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related
asset or group of assets over their estimated useful lives against their respective carrying amount. If those net undiscounted cash flows
do not exceed the carrying amount, impairment, if any, is based on the excess of the carrying amount over the fair value based on the
market value or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. There
was impairment of long-lived assets identified during the year ended April 30, 2023 and 2022 in our continuing operations. Refer to Note
6 for more information. Goodwill The
Company accounts for goodwill in accordance with ASC 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires
that goodwill not be amortized, but reviewed for impairment if impairment indicators arise and, at a minimum, annually. The Company records
goodwill as the excess purchase price over assets acquired and includes any work force acquired as goodwill. Goodwill is evaluated for
impairment on an annual basis. With
the adoption of the ASU 2017-04, which eliminates the second step of the goodwill impairment test, the Company tests impairment of goodwill
in one step. In this step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company
determines the fair value of its reporting units with goodwill using a combination of a discounted cash flow and a market value approach.
If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the Company will
record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. If the fair value of
the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company
will not record an impairment charge. The
Company impaired the remaining $ 6,781,193 Share-Based
Payment The
Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation (ASC 718). Under the fair value
recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award
and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. Warrants The
Company grants warrants to key employees and executives as compensation on a discretionary basis. The Company also grants warrants in
connection with certain note payable agreements and other key arrangements. The Company is required to estimate the fair value of share-based
awards on the measurement date and recognize as expense that value of the portion of the award that is ultimately expected to vest over
the requisite service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 11 and Note 14. The
warrants granted during the years ended April 30, 2023 and 2022 were valued using a Black-Scholes option pricing model on the date of
grant using the following assumptions: SCHEDULE OF WARRANTS GRANTED VALUATION USING BLACK-SCHOLES PRICING
METHOD
Year Ended April 30, 2023 Year Ended April 30, 2022
Expected life in years 5 10 5 10
Stock price volatility 50 150 50 148
Risk free interest rate 2.50 4.68 0.77 1.63
Expected dividends 0 0 Foreign
Currency Translation Our
functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency
for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot
rate in effect at the applicable reporting date. Our consolidated statements of comprehensive loss are translated at the weighted average
rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component
of accumulated other comprehensive loss in shareholders’ equity. Realized and unrealized transaction gains and losses generated
by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income
(loss) in the period in which they occur. Earnings
Per Share Basic
earnings per share are calculated by dividing the income available to shareholders by the weighted-average number of common shares
outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common
share equivalents outstanding during the period. All
common stock equivalents such as shares to be issued for the conversion of notes payable and warrants were excluded from the calculation
of diluted earnings per share as the effect is antidilutive. As a result, the basic and diluted earnings per share are the same for each
of the periods presented. Recent
Accounting Pronouncements Recently
Adopted In
January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-04, Intangibles – Goodwill and
Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies how an entity is required
to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under ASU 2017-04, goodwill impairment will
be tested by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount
by which the carrying amount exceeds the reporting unit’s fair value. The new guidance must be applied on a prospective basis and
is effective for periods beginning after December 15, 2022, with early adoption permitted. The Company adopted ASU 2017-04 effective
May 1, 2021. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In
December 2019, the FASB issued Accounting Standards Update (“ASU”), 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In
August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own
Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible
debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being
separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation
models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition
of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued
with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives
scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06
will be effective for public companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal
years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within
those fiscal years. The Company is currently evaluating the impact that the adoption of ASU 2020-06 will have on the Company’s
consolidated financial statement presentation or disclosures. In
June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments (“ASC 326”). The guidance replaces the incurred loss methodology with an expected loss methodology that is referred
to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology
is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also
applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credits, financial
guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases.
ASC 326 requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses as well as
the credit quality and underwriting standards of a company’s portfolio. In addition, ASC 326 made changes to the accounting for
available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down
on available-for-sale debt securities the Company does not intend to sell or believes that it is more likely than not they will be required
to sell. The ASU can be adopted no later than January 1, 2020 for SEC filers and January 1, 2023 for private companies and smaller reporting
companies. The Company has not yet adopted this ASU as it qualifies as a smaller reporting company. The Company does not expect this
ASU will have a material impact on its consolidated financial statements. In
October 2021, the FASB issued ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities (Topic
805)”. The amendments in this Update address diversity and inconsistency related to the recognition and measurement of contract
assets and contract liabilities acquired in a business combination. The amendments in this Update require that an acquirer recognize
and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts
with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal
years. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial statements. The
FASB has issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock
Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2021-04 provides
guidance that an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written
call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument.
The standard also provides guidance on how an entity should measure and recognize the effect of a modification or an exchange of a freestanding
equity-classified written call option that remains equity classified. The amendments in this ASU are effective for the Company for fiscal
years beginning after December 15, 2021. Early adoption is permitted for all entities, including adoption in an interim period. The adoption
of the new standard did not have a material effect on the Company’s consolidated financial statements. Other
recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s
present or future consolidated financial statements. |
