Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2018 | Jul. 16, 2018 | Oct. 31, 2017 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2018 | ||
Trading Symbol | cpah | ||
Entity Registrant Name | COUNTERPATH CORP | ||
Entity Central Index Key | 1,236,997 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 5,932,640 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 6,583,600 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Current assets: | ||
Cash | $ 2,348,883 | $ 2,071,019 |
Accounts receivable (net of allowance for doubtful accounts of $322,638 (2017 - $80,232)) | 3,509,010 | 2,133,469 |
Prepaid expenses and deposits | 191,245 | 170,853 |
Total current assets | 6,049,138 | 4,375,341 |
Deposits | 98,633 | 91,400 |
Equipment | 121,819 | 125,813 |
Goodwill | 6,843,575 | 6,440,955 |
Intangibles and other assets | 221,062 | 199,637 |
Total Assets | 13,334,227 | 11,233,146 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 2,437,733 | 1,825,528 |
Unearned revenue | 2,565,876 | 2,134,948 |
Customer deposits | 2,200 | 6,211 |
Accrued warranty | 63,130 | 54,365 |
Total current liabilities | 5,068,939 | 4,021,052 |
Deferred lease inducements | 14,339 | 23,022 |
Unrecognized tax liability | 9,763 | 9,763 |
Total liabilities | 5,093,041 | 4,053,837 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value Authorized: 100,000,000 Issued and outstanding: April 30, 2018 - nil; April 30, 2017 - nil | 0 | 0 |
Common stock, $0.001 par value - Authorized: 100,000,000 Issued: April 30, 2018 - 5,930,468; April 30, 2017 - 5,005,245 | 5,931 | 5,005 |
Treasury stock | 0 | (60) |
Additional paid-in capital | 75,170,181 | 71,680,575 |
Accumulated deficit | (63,701,685) | (60,481,015) |
Accumulated other comprehensive loss - currency translation adjustment | (3,233,241) | (4,025,196) |
Total stockholders' equity | 8,241,186 | 7,179,309 |
Liabilities and Stockholders' Equity | $ 13,334,227 | $ 11,233,146 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Allowance for Doubtful Accounts Receivable, Current | $ 322,638 | $ 80,232 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 5,930,468 | 5,005,245 |
Common Stock, Shares, Outstanding | 5,930,468 | 5,005,245 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue | ||
Software | $ 6,338,512 | $ 5,449,140 |
Subscription, support and maintenance | 4,273,410 | 3,909,326 |
Professional services and other | 1,769,819 | 1,327,124 |
Total revenue | 12,381,741 | 10,685,590 |
Operating expenses: | ||
Cost of sales (includes depreciation of $6,337 (2017 - $6,559)) | 1,629,814 | 1,729,930 |
Sales and marketing | 4,155,132 | 3,831,438 |
Research and development | 5,506,887 | 4,843,813 |
General and administrative | 3,883,678 | 3,234,026 |
Total operating expenses | 15,175,511 | 13,639,207 |
Loss from operations | (2,793,770) | (2,953,617) |
Interest and other (expense) income, net | ||
Interest and other income | 3 | 173 |
Interest expense | (364) | (3,056) |
Foreign exchange (loss) gain | (426,539) | 497,985 |
Total interest and other (expense) income, net | (426,900) | 495,102 |
Net loss for the year | $ (3,220,670) | $ (2,458,515) |
Net loss per share: | ||
Basic and diluted | $ (0.59) | $ (0.52) |
Weighted average common shares outstanding: | ||
Basic and diluted | 5,496,201 | 4,722,724 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Depreciation | $ 6,337 | $ 6,559 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Net loss for the year | $ (3,220,670) | $ (2,458,515) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | 791,955 | (1,082,556) |
Comprehensive loss | $ (2,428,715) | $ (3,541,071) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss for the year | $ (3,220,670) | $ (2,458,515) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Deferred lease inducements | (10,175) | (9,861) |
Depreciation and amortization | 113,805 | 113,880 |
Foreign exchange (gain) loss | 468,354 | (562,102) |
Stock-based compensation - | 604,566 | 835,918 |
Issuance of common stock for services | 16,156 | 13,963 |
Changes in assets and liabilities: | ||
Accounts payable and accrued liabilities | 561,703 | (46,381) |
Accounts receivable | (1,375,552) | 1,075,810 |
Accrued warranty | 8,765 | (6,991) |
Customer deposits | (6,325) | (567) |
Prepaid expenses and deposits | (18,645) | 16,023 |
Unearned revenue | 430,928 | 326,091 |
Net cash used in operating activities | (2,427,090) | (702,732) |
Cash flows from investing activities: | ||
Purchases of equipment | (100,300) | (99,939) |
Purchases of intangibles | (24,813) | (28,302) |
Net cash used in investing activities | (125,113) | (128,241) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 2,902,990 | 898,693 |
Repurchases of common stock | (33,119) | (132,678) |
Net cash used in by financing activities | 2,869,871 | 766,015 |
Foreign exchange effect on cash | (39,804) | (23,761) |
Increase (decrease) in cash | 277,864 | (88,719) |
Cash, beginning of the year | 2,071,019 | 2,159,738 |
Cash, end of the year | 2,348,883 | 2,071,019 |
Cash paid for: | ||
Interest | 364 | 3,056 |
Taxes | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Common Shares [Member] | Treasury Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Apr. 30, 2016 | $ 4,542 | $ 70,065,082 | $ (58,022,500) | $ (2,942,640) | $ 9,104,484 | |
Beginning Balance (Shares) at Apr. 30, 2016 | 4,542,348 | (400) | ||||
Private placement, net of share issuance costs | $ 454 | 898,239 | 898,693 | |||
Private placement, net of share issuance costs (Shares) | 454,097 | |||||
Issuance of common stock for services | $ 14 | 13,949 | 13,963 | |||
Issuance of common stock for services (Shares) | 13,500 | |||||
Share repurchase plan | $ (65) | (133,417) | (133,482) | |||
Share repurchase plan (Shares) | (64,200) | |||||
Cancellation of shares | $ (5) | $ 5 | 804 | 804 | ||
Cancellation of shares (Shares) | (4,700) | 4,700 | ||||
Stock-based compensation | 835,918 | $ 835,918 | ||||
Exercise of stock options (Shares) | 0 | |||||
Net loss for the year | (2,458,515) | $ (2,458,515) | ||||
Foreign currency translation adjustment | (1,082,556) | (1,082,556) | ||||
Ending Balance at Apr. 30, 2017 | $ 5,005 | $ (60) | 71,680,575 | (60,481,015) | (4,025,196) | 7,179,309 |
Ending Balance (Shares) at Apr. 30, 2017 | 5,005,245 | (59,900) | ||||
Private placement, net of share issuance costs | $ 967 | 2,831,479 | 2,832,446 | |||
Private placement, net of share issuance costs (Shares) | 966,740 | |||||
Issuance of common stock for services | $ 7 | 16,149 | 16,156 | |||
Issuance of common stock for services (Shares) | 6,789 | |||||
Share repurchase plan | $ (14) | (33,829) | (33,843) | |||
Share repurchase plan (Shares) | (13,600) | |||||
Cancellation of shares | $ (74) | $ 74 | 724 | 724 | ||
Cancellation of shares (Shares) | (73,500) | 73,500 | ||||
Stock-based compensation | 604,566 | 604,566 | ||||
Employee share purchase program | $ 25 | 69,300 | 69,325 | |||
Employee share purchase program (Shares) | 24,699 | |||||
Exercise of stock options | $ 1 | 1,217 | $ 1,218 | |||
Exercise of stock options (Shares) | 495 | 495 | ||||
Net loss for the year | (3,220,670) | $ (3,220,670) | ||||
Foreign currency translation adjustment | 791,955 | 791,955 | ||||
Ending Balance at Apr. 30, 2018 | $ 5,931 | $ 75,170,181 | $ (63,701,685) | $ (3,233,241) | $ 8,241,186 | |
Ending Balance (Shares) at Apr. 30, 2018 | 5,930,468 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Apr. 30, 2018 | |
Nature of Operations [Text Block] | Note 1 Nature of Operations CounterPath Corporation (the “Company”) was incorporated in the State of Nevada on April 18, 2003. The Company focuses on the design, development, marketing and sales of software applications and related services, such as pre and post sales technical support and customization services, that enable enterprises and telecommunication service providers to deliver Unified Communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol, or IP, based networks. The Company’s products are sold either directly or through channel partners, to small, medium and large businesses (“enterprises”) and telecom service providers in North America, and in Europe, Middle East, Africa (“collectively EMEA”), Asia Pacific and Latin America. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2018 | |
Summary of Significant Accounting Policies [Text Block] | Note 2 Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise disclosed. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CounterPath Technologies Inc., a company existing under the laws of the province of British Columbia, Canada, and BridgePort Networks, Inc. (“BridgePort”), a company incorporated under the laws of the state of Delaware. The results of NewHeights Software Corporation (“NewHeights”), which subsequently was amalgamated with another subsidiary to become CounterPath Technologies Inc., are included from August 2, 2007, the date of acquisition. The results of FirstHand Technologies Inc. (“FirstHand”), which subsequently was amalgamated with CounterPath Technologies Inc., and BridgePort are included from February 1, 2008, the date of acquisition. All inter-company transactions and balances have been eliminated. These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has experienced flat to declining revenues as a result of a number of factors including its buildout of a cloud based subscription platform concurrent with the change of its licensing model to subscription based licensing and has not reached profitable operations which raises substantial doubt about its ability to continue operating as a going concern within one year of the date of the financial statements. The Company has historically been able to manage liquidity requirements through cost management and cost reduction measures, supplemented with raising additional financing. To alleviate this situation, the Company has plans in place to improve its financial position and liquidity, while executing on its growth strategy, by managing and or reducing costs that is not expected to have an adverse impact on the ability to generate cash flows, as the transition to its software as a service platform and subscription licensing continues. As of April 30, 2018, the Company does not have any commitments to raise funds; however, the Company has historically been able to raise additional financing to assist with the Company’s transition. As of the date of these financial statements, and from the planned cost management and reduction measures, the Company has sufficient liquidity to meet the ongoing cash requirements of the Company for one year after the issuance date of the financial statements. Therefore, although substantial doubt has been raised, this has been alleviated by management’s plans. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the amounts reported in these consolidated financial statements, the notes thereto, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by federal deposit insurance; however, the Company believes that its credit risk is immaterial. The Company is also subject to concentrations of credit risk in its accounts receivable. The Company monitors and actively manages its receivables, and from time to time will insure certain receivables with higher credit risk and may require collateral or other securities to support its accounts receivable. The table below presents significant customers who accounted for greater than 10% of total accounts receivable and as of April 30, 2018 and 2017: April 30, 2018 2017 Customer A 18% 13% Customer B 13% − % Revenue Recognition The Company recognizes revenue in accordance with the Accounting Standard Codification (“ASC”) 985-605 “Software Revenue Recognition”. In accordance with these standards, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collection of the related accounts receivable is deemed probable. In making these judgments, management evaluates these criteria as follows: • Persuasive evidence of an arrangement. The Company considers a noncancelable agreement signed by the Company and the customer to be representative of persuasive evidence of an arrangement. • Delivery has occurred. The Company considers delivery to have occurred when the product has been delivered to the customer and no post-delivery obligations exist. In instances where customer acceptance is required, delivery is deemed to have occurred when customer acceptance has been achieved. • Fees are fixed or determinable. The Company considers the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within normal payment terms. If the fee is subject to refund or adjustment, the Company recognizes revenue when the refund or adjustment right lapses. If offered payment terms exceed the Company’s normal terms, the Company recognizes revenue as the amounts become due and payable or upon the receipt of cash when extended payment terms beyond 180 days are offered. • Collection is deemed probable . A substantial amount of the Company’s sales involve multiple element arrangements, such as products, support, professional services, and training. When arrangements include multiple elements, the Company allocates the total fee to delivered elements using the residual method when vendor specific objective evidence (VSOE) does not exist for the delivered element but VSOE for the undelivered item exists. Under the residual method, consideration is allocated to the undelivered items based on their respective VSOEs and is deferred, with the remaining portion of the arrangement consideration generally recognized upon delivery of the delivered item. The Company analyzes each arrangement to determine if VSOE exists for the undelivered element, typically support services, and if VSOE does not exist, all revenue is deferred until VSOE is established or the element has been delivered. Revenue is allocated to each of the undelivered elements based on its respective fair value. For contracts with elements related to customized network solutions and certain network build-outs, for transactions accounted for as sales of products or services, we apply ASC Subtopic 605-25 “Revenue Recognition – Multiple-Element Arrangements” and revenues are recognized under ASC 605-35”Revenue Recognition – Construction type and Production type Contract”, for long-term transactions entered to supply software, or software systems, that require significant modification or customization, generally using the percentage-of-completion method. For multi-element arrangements with deliverables that are non-software related, the Company allocates revenue to all deliverables based on their selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE, (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. In using the percentage-of-completion method, revenues are generally recorded based on completion of milestones as described in the agreement. Profit estimates on long-term contracts are revised periodically based on changes in circumstances and any losses on contracts are recognized in the period that such losses become known. Subscription revenue generated from cloud-based services is typically billed annually in advance based on the terms of the arrangement and recognized over the term of the service contract. Support and maintenance services include e-mail and telephone support, unspecified rights to bug fixes and product updates and upgrades and enhancements available on a when-and-if available basis, and are recognized rateably over the term of the service period, which is generally twelve months. Stock-Based Compensation The Company adopted ASC 718 “Compensation – Stock Compensation”, using the modified prospective method on May 1, 2006. Under this application, the Company is required to record compensation expense, based on the fair value of the awards, for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding as at the date of adoption. In accordance with ASC 718, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Stock options granted to non-employees were accounted for in accordance with ASC 718 and ASC 505-50 “Equity based payments to non-employees” and were measured at the fair value of the options as determined by an option pricing model on the measurement date and compensation expense is amortized over the vesting period or, if none exists, over the service period. With the adoption of ASC 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. The Company has estimated the fair value of option awards to employees and non-employees for the years ended April 30, 2018 and April 30, 2017 using the assumptions more fully described in Note 8. Equipment and Amortization Equipment is recorded at cost. Depreciation is provided for using the straight-line method over the estimated useful lives as follows: Computer hardware Two years Computer software Two years Leasehold improvements Shorter of lease term or estimated economic life Office furniture Five years Website Three years Research and Development Research and development expense includes costs incurred to develop intellectual property. The costs for the development of new software and substantial enhancements to existing software are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. Management has determined that technological feasibility is established at the time a working model of software is completed. Because management believes that the current process for developing software will be essentially completed concurrently with the establishment of technological feasibility, no costs have been capitalized to date. Website Development Costs The Company recognizes the costs associated with developing a website in accordance with ASC Topic 350-40 “Intangibles – Internal Use Software”. Internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Training costs are not internal-use software development costs and, if incurred during this stage, are expensed as incurred. These capitalized costs are amortized based on their estimated useful life over three years. Payroll and other related costs are not capitalized, as the amounts principally relate to maintenance. Goodwill Goodwill represents the excess purchase price over the estimated fair value of net assets acquired and liabilities assumed as of the acquisition date. ASC Topic 350 “Intangibles – Goodwill” requires goodwill to be tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company's business enterprise below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit, which is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis. Management has determined that the Company operates as a single operating segment and consequently a single reporting unit due to the similar economic characteristics of its components and the nature of the products and services offered by those components. If the recorded value of the Company’s assets, including goodwill, and liabilities (“net book value”) of the reporting unit exceeds its fair value, an impairment loss may be required. The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate its carrying value may not be recoverable in accordance with FASB ASC 350, Goodwill and Other Intangible Assets In September of 2011, FASB issued Accounting Standards Update 2011-08, “Intangibles—Goodwill and Other (Topic 350)” Determining the fair value of the reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include future economic and market conditions and determination of appropriate market comparables. The Company bases its fair value estimates on assumptions management believes to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. Goodwill was initially recorded upon the acquisition of NewHeights on August 2, 2007 and FirstHand on February 1, 2008. At the time of each acquisition and as of the date of the consolidated financial statements, the Company recognized the following: April 30, Acquisition Date 2018 2017 NewHeights $ 6,339,717 CDN$ 6,704,947 $ 5,221,202 $ 4,914,029 FirstHand 2,083,960 2,083,752 1,622,373 1,526,926 $ 8,423,677 CDN$ 8,788,699 $ 6,843,575 $ 6,440,955 The Company performed its annual impairment test during the fourth quarter for the years ended April 30, 2018 and 2017 and concluded that there has been no impairment to the carrying amount. Intangible Assets The Company’s intangible assets consists of patents and trademarks. Costs related to granted patents are capitalized and amortized over the expected life of the patent which ranges from 16 to 20 years. Costs related to patent applications are expensed as incurred. Costs related to trademarks are capitalized and are not amortized as the Company expects such trademarks to be used indefinitely. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are presented net of an allowance for doubtful accounts. Years Ended April 30, 2018 2017 Balance of allowance for doubtful debts, beginning of year $ 80,232 $ 547,173 Bad debt provision 578,024 346,689 Write-off of receivables (335,618 ) (813,630 ) Balance of allowance for doubtful debts, end of year $ 322,638 $ 80,232 The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. Foreign Currency Translation The Company’s functional currency is the U.S. dollar. The Company’s wholly-owned subsidiaries with a functional currency other than the U.S. dollar are translated into amounts in the reporting currency, U.S. dollars, in accordance with ASC Topic 830 “Foreign Currency Matters”. Revenues and expenses are translated at the average exchange rate prevailing during the periods. At each balance sheet date, assets and liabilities that are denominated in a currency other than U.S. dollars are adjusted to reflect the current exchange rate which may give rise to a foreign currency translation adjustment accounted for as a separate component of stockholders’ equity and included in comprehensive loss. For transactions undertaken by the Company in foreign currencies, monetary assets and liabilities are translated into the functional currency at the exchange rate in effect at the end of the year. Non-monetary assets and liabilities are translated at the exchange rate prevailing when the assets were acquired or the liabilities assumed. Revenues and expenses are translated at the rate approximating the rate of exchange on the transaction date. Exchange gains and losses are included in the determination of net income (loss) for the year. Accrued Warranty The Company’s warranty policy generally provides for one year of warranty for its products. The Company records a liability for estimated warranty obligations at the date products are sold. The estimated cost of warranty coverage is based on the Company’s actual historical experience with its current products or similar products. For new products, the required reserve is based on historical experience of similar products until such time as sufficient historical data has been collected on the new product. Estimated liabilities for warranty exposures, which relate to normal product warranties and a one-year obligation to provide for potential future liabilities for product sales for the years ended April 30, 2018 and 2017 were as follows: Years Ended April 30, 2018 2017 Balance, beginning of year $ 54,365 $ 61,356 Usage during the year − − Additions (reductions) during the year 8,765 (6,991 ) Balance, end of year $ 63,130 $ 54,365 Fair Value of Financial Instruments ASC 820, Fair Value Measurements, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Derivative Instruments Although a majority of the Company’s revenue activities are transacted in U.S. dollars, the Company is exposed to foreign currency exchange rate risk inherent in conducting business globally. A significant portion of the Company’s operations is conducted in Canadian dollars. To help manage exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S. dollar denominated cash flows, the Company may enter into foreign currency forward contracts. The Company recognizes its derivative instruments as assets or liabilities at fair value in the consolidated balance sheets. Accounting for changes in the fair value of a derivative instrument depends on whether it has been designated as part of a hedging relationship. For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of change in fair value of the derivative is reported as a component of other comprehensive loss, and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of change in fair value is recorded as a component of net loss on the consolidated statements of operations. If hedge accounting is discontinued for any other reason, any previously deferred gain or loss will remain in other comprehensive loss and amortized into earnings as the hedged transaction affects future earnings. For undesignated derivative instruments, the change in fair value is reported as a component of net loss on the consolidated statements of operations. As of April 30, 2018 and 2017, the Company did not enter into any derivative contracts. Income Taxes The Company accounts for income taxes by the asset and liability method in accordance with ASC Topic 740 “Income Taxes”. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized in the current year for temporary differences between the tax and accounting bases of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes that are likely to be realized. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company has not recorded a deferred tax liability related to its investment in foreign subsidiaries. The Company has determined that its investment in these subsidiaries is permanent in nature and it does not intend to dispose of these investments in the foreseeable future. The amount of the deferred tax liability related to the Company’s investment in foreign subsidiaries is not reasonably determinable. The Company has $971,070 in cash held outside of the United States, and there is no intent to repatriate at this time. Should we decide to repatriate in the future, taxes would need to be accrued and paid. Under ASC 740, the Company also adopted a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company recognizes interest and penalties accrued on unrecognized tax benefits within general and administrative expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in general and administrative expenses in the period that such determination is made. Comprehensive Loss Comprehensive loss is comprised of net profit or loss, and foreign currency translation adjustments. Loss per Share ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted EPS gives effect to all dilutive potential common shares outstanding during the year including stock options and warrants using the treasury stock method. In computing diluted EPS, the average stock price for the year is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. For the year ended April 30, 2018, income per share excludes 1,140,432 (April 30, 2017 – 888,814) potentially dilutive common shares (related to stock options, deferred share units and warrants) as their effect was anti-dilutive. Investment tax credits Investment tax credits are accounted for under the cost reduction method whereby they are netted against the expense or property and equipment to which they relate. Investment tax credits are recorded when the qualifying expenditures have been incurred and if it is more likely than not that the tax credits will be realized. Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This amendment is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment, which amends the guidance to eliminate Step 2 from the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Measurement of Credit Losses on Financial Instruments, which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for Company’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected will a valuation provision. The amendments will be effective for fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on our consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases In May 2014, FASB issued ASU 2014-09, Revenue From Contracts With Customers (“Topic 606”) The new standard will be effective for the Company in the quarter ending July 31, 2018 and permits two methods of adoption: (1) the full retrospective method, which requires the standard to be applied to each prior period presented, or (2) the modified retrospective method, whereby ASU 2014-09 would be applied to new contracts and existing contracts with remaining performance obligations as of the effective date, with the cumulative effect of adoption on contracts with remaining performance obligations to be recognized as an adjustment to opening retained earnings in the period of adoption. In 2016, the FASB issued ASU 2016-08 “ Revenue from Contracts with Customers: Principal versus Agent Considerations Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients |
Equipment
Equipment | 12 Months Ended |
Apr. 30, 2018 | |
Equipment [Text Block] | Note 3 Equipment The following presents the categories within equipment: April 30, 2018 Accumulated Cost Depreciation Net Computer hardware $ 1,193,527 $ 1,109,268 $ 84,259 Computer software 1,013,277 1,012,749 528 Leasehold improvements 263,774 236,112 27,662 Office furniture 194,702 185,332 9,370 Websites 120,339 120,339 − $ 2,785,619 $ 2,663,800 $ 121,819 April 30, 2017 Accumulated Cost Depreciation Net Computer hardware $ 1,036,217 $ 967,681 $ 68,536 Computer software 993,425 986,560 6,865 Leasehold improvements 230,730 200,434 30,296 Office furniture 173,902 162,120 11,782 Websites 118,772 110,438 8,334 $ 2,553,046 $ 2,427,233 $ 125,813 |
Intangibles and Other Assets
Intangibles and Other Assets | 12 Months Ended |
Apr. 30, 2018 | |
Intangibles and Other Assets [Text Block] | Note 4 Intangibles and Other Assets The following tables presents the major components within intangibles and other assets for the years ended April 30, 2018 and 2017: April 30, 2018 Accumulated Cost Amortization Net Patents $ 461,637 $ (411,788 ) $ 49,849 Trademarks 165,462 - 165,462 Other assets 5,751 - 5,751 $ 632,850 $ (411,788 ) $ 221,062 April 30, 2017 Accumulated Cost Amortization Net Patents $ 452,306 $ (408,287 ) $ 44,019 Trademarks 149,979 - 149,979 Other assets 5,639 - 5,639 $ 607,924 $ (408,287 ) $ 199,637 During the years ended April 30, 2018 and 2017, the Company recorded amortization expense related to patents of $3,500 and $3,319, respectively. The weighted average remaining amortization period for patents was 13.2 years and 12.0 years for the years ended April 30, 2018 and 2017, respectively. The following table presents estimated future patent amortization for the next five years: Years ended April 30, 2019 $ 5,355 2020 4,248 2021 4,248 2022 4,248 2023 4,248 Thereafter 27,502 Total $ 49,849 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Apr. 30, 2018 | |
Accounts Payable and Accrued Liabilities [Text Block] | Note 5 Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at April 30, 2018 and 2017 are comprised of the following: April 30, 2018 2017 Accounts payable – trade $ 678,760 $ 404,234 Accrued commissions 215,172 241,883 Accrued vacation 744,108 607,238 Third party software royalties 207,531 328,740 Other accrued liabilities 592,162 243,433 $ 2,437,733 $ 1,825,528 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2018 | |
Fair Value Measurements [Text Block] | Note 6 Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to valuation of these assets or liabilities are set forth below. Transfers between levels are recognized at the end of each quarter. The Company did not recognize any transfers between levels during the periods presented. Level 1—Inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3— unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. 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 carrying values of financial instruments classified as current assets and current liabilities approximates their fair values, based on the nature and short maturity of these instruments, and are presented in the Company’s financial statements at carrying cost. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2018 | |
Related Party Transactions [Text Block] | Note 7 Related Party Transactions During the year ended April 30, 2018, the Company through its wholly owned subsidiary, CounterPath Technologies Inc., paid $83,957 (2017 - $78,386) to Kanata Research Park Corporation (“KRP”) for leased office space. KRP is controlled by the Chairman of the Company. On November 21, 2013, the Company, through its wholly owned subsidiary, CounterPath Technologies, entered into an agreement with 8007004 (Canada) Inc. (“8007004”) to lease office space. 8007004 is controlled by a member of the board of directors of the Company. CounterPath Technologies, paid $31,686 (2017 - $30,591) for the year ended April 30, 2018. On January 24, 2018, the Company issued an aggregate of 427,500 shares of common stock under a non-brokered private placement (“Private Placement”) at a price of $4.01 per share for total gross proceeds of $1,714,275 less issuance costs of $48,325. In connection with the Private Placement, Wesley Clover International Corporation, a company controlled by the Chairman of the Company, purchased 125,000 shares and KMB Trac Two Holdings Ltd., a company owned by the spouse of a director of our Company, purchased 125,000 shares. On July 20, 2017, our Company issued an aggregate of 539,240 shares of common stock under a non-brokered private placement at a price of $2.20 per share for total gross proceeds of $1,186,328 less issuance costs of $19,832. In connection with this private placement, Wesley Clover International Corporation, a Company controlled by the Chairman of our Company, purchased 144,357 shares, KMB Trac Two Holdings Ltd., a company owned by the spouse of a director of our Company, purchased 180,446 shares, the chief executive officer and a director of our company, purchased 11,368 shares, the chief financial officer of our company, purchased 4,511 shares, and the executive vice president, sales and marketing of our Company, purchased 4,545 shares. On December 15, 2016, the Company issued an aggregate of 454,097 shares of common stock under a non-brokered private placement (“Private Placement”) at a price of $2.05 per share for total gross proceeds of $930,899 less issuance costs of $32,207. In connection with the Private Placement, KRP, a company controlled by the Chairman of the Company, purchased 198,000 shares and a director and chief executive officer of the Company purchased 12,195 shares. The above transactions are in the normal course of operations and are recorded at amounts established and agreed to between the related parties. |
Common Stock
Common Stock | 12 Months Ended |
Apr. 30, 2018 | |
Common Stock [Text Block] | Note 8 Common Stock Private Placements On January 24, 2018, the Company issued an aggregate of 427,500 shares of common stock under a non-brokered private placement at a price of $4.01 per share for total gross proceeds of $1,714,275 less issuance costs of $48,325. On July 20, 2017, the Company issued an aggregate of 539,240 shares of common stock under a non-brokered private placement at a price of $2.20 per share for total gross proceeds of $1,186,328 less issuance costs of $19,832. On December 15, 2016, the Company issued an aggregate of 454,097 shares of common stock under a non-brokered private placement at a price of $2.05 per share for total gross proceeds of $930,899 less issuance costs of $32,207. Shares Issued Pursuant to a Consulting Agreement On October 16, 2017, the Company entered into an agreement to issue 14,000 shares of the Company’s common stock in exchange for investor relation services. The agreement was terminated on April 8, 2018 as the services were no longer required. Pursuant to the terms of the agreement, upon termination, 7,211 shares of common stock were returned to the Company. Normal Course Issuer Bid Plan During the year ended April 30, 2018, the Company repurchased 13,600 shares of common stock at an average price of approximately $2.49 (CDN$3.18), for a total of approximately $33,119 (CDN$43,218) pursuant to a normal course issuer bid effective during the period. During the year ended April 30, 2017, the Company repurchased 64,200 shares of common stock at an average price of approximately $2.08 (CDN$2.74) for a total of approximately $133,417 (CDN$175,850) pursuant to the normal course issuer bid in effect at the time. On March 27, 2018, the Company filed another normal course issuer bid commencing on March 29, 2018 and expiring March 28, 2019. Under this normal course issuer bid, the Company is authorized to purchase up to 284,278 shares of its common stock through the facilities of the TSX and other Canadian marketplaces or U.S. marketplaces. As of April 30, 2018, a total of 153,988 shares have been cancelled, of which 59,900 shares of common stock related to repurchases made during the year ended April 30, 2017. Stock Options The Company has a stock option plan (the “2010 Stock Option Plan”) under which options to purchase common shares of the Company may be granted to employees, directors and consultants. The 2010 Stock Option Plan is effectively a merging of the Company’s 2004 and 2005 stock option plans. Stock options entitle the holder to purchase common stock at a subscription price determined by the Board of Directors of the Company at the time of the grant. The options generally vest in the amount of 12.5% on the date which is six months from the date of grant and then beginning in the seventh month at 1/42 per month for 42 months, at which time the options are fully vested. The maximum number of shares of common stock authorized by the stockholders and reserved for issuance by the Board under 2010 Stock Option Plan is 986,000. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options granted. In accordance with ASC 718 “Share-Based Payment” for employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for stock options granted to non-employees is amortized over the vesting period or, if none exists, over the service period. Compensation associated with unvested options granted to non-employees is re-measured on each balance sheet date using the Black-Scholes option pricing model. The expected volatility of options granted has been determined using the method described under ASC 718 using the historical stock price. The expected term of options granted to employees in the current fiscal period has been determined utilizing historic data as prescribed by ASC 718. For non-employees, based on the Company’s history, the expected term of the options approximates the full term of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, ASC 718 requires companies to utilize an estimated forfeiture rate when calculating the expense for the period, whereas prior to the adoption of ASC 718 the Company recorded forfeitures based on actual forfeitures and recorded a compensation expense recovery in the period when the awards were forfeited. As a result, based on the Company’s experience, the Company applied an estimated forfeiture rate of 15% for year ended April 30, 2018 and 2017 in determining the expense recorded in the accompanying consolidated statement of operations. For the majority of the stock options granted, the number of shares issued on the date the stock options are exercised is net of the minimum statutory withholding requirements that the Company pays in cash to the appropriate taxing authorities on behalf of its employees. These withheld shares are not issued or considered common stock repurchases under the Company’s authorized plan and are not included in the common stock repurchase totals. In the consolidated financial statements, these withheld shares are netted against the number of shares that would have been issued upon vesting. The weighted-average fair values of options granted during the years ended April 30, 2018 and 2017 were $1.90 and $1.54, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended Year Ended April 30, 2018 April 30, 2017 Risk-free interest rate 2.14% 1.39% Expected volatility 95.55% 94.95% Expected term 3.7 years 3.7 years Dividend yield 0% 0% The following is a summary of the status of the Company’s stock options as of April 30, 2018 and the stock option activity during the years ended April 30, 2018 and 2017: Number of Weighted-Average Options Exercise Price Outstanding at April 30, 2016 410,730 $ 12.99 Granted 125,000 $ 2.38 Exercised - $ - Forfeited / Cancelled (49,268 ) $ 4.16 Expired (89,540 ) $ 7.59 Outstanding at April 30, 2017 396,922 $ 2.46 Granted 324,000 $ 2.89 Exercised (495 ) $ 2.46 Forfeited / Cancelled (15,385 ) $ 2.53 Expired (30,000 ) $ 2.50 Outstanding at April 30, 2018 675,042 $ 2.66 Exercisable at April 30, 2018 256,555 $ $2.47 Exercisable at April 30, 2017 221,739 $ $2.49 The following table summarizes information regarding stock options outstanding as of April 30, 2018: Number of Aggregate Number of Aggregate Exercise Options Intrinsic Options Intrinsic Price Outstanding Value Expiry Date Exercisable Value $2.03 10,000 $ 5,700 December 15, 2021 3,333 $ 1,900 $2.40 60,000 $ 12,000 July 15, 2021 26,250 $ 5,250 $2.41 47,760 $ 9,074 December 14, 2020 27,977 $ 5,316 $2.46 25,000 $ 3,500 March 14, 2022 6,771 $ 948 $2.50 210,282 $ 21,028 July 19, 2017 to July 17, 2020 192,224 $ 19,222 $2.89 322,000 $ – December 14, 2022 – $ – April 30, 2018 675,042 $ 51,302 256,555 $ 32,636 April 30, 2017 396,922 $ – 221,739 $ – The aggregate intrinsic value in the preceding table represents the total intrinsic value, based on the Company’s closing stock price of $2.60 per share as of April 30, 2018 (April 30, 2017 – $1.93), which would have been received by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options vested and exercisable as of April 30, 2018 was 256,555 (April 30, 2017 – nil). The total intrinsic value of options exercised during the year ended April 30, 2018 was $1,742 (2017 – $nil). The grant date fair value of options vested during the year ended April 30, 2018 was $269,423 (April 30, 2017 – $412,602). The following table summarizes information regarding the non-vested stock purchase options outstanding as of April 30, 2018: Weighted Average Number of Grant-Date Options Fair Value Non-vested options at April 30, 2016 173,935 $ 4.15 Granted 125,000 $ 1.54 Vested ( 84,833 ) $ 4.86 Forfeited ( 38,919 ) $ 1.95 Non-vested options at April 30, 2017 175,183 $ 3.49 Granted 324,000 $ 1.90 Vested ( 73,965 ) $ 3.64 Forfeited ( 6,731 ) $ 1.98 Non-vested options at April 30, 2018 418,487 $ 1.91 As of April 30, 2018, there was $589,702 of total unrecognized compensation cost related to unvested stock options. This unrecognized compensation cost is expected to be recognized over a weighted average period of 3.07 years. Employee and non-employee stock-based compensation amounts classified in the Company’s consolidated statements of operations for the year ended April 30, 2018 and 2017 were as follows: April 30, 2018 2017 Cost of sales $ 55,444 $ 97,434 Sales and marketing 84,685 172,367 Research and development 60,964 102,975 General and administrative 129,227 166,713 Total stock-based compensation $ 330,320 $ 539,489 Warrants On September 4, 2015, the Company completed a non-brokered private placement (the “Private Placement”) of 293,000 units, at a price of $5.00 per unit, for gross aggregate proceeds of $1,465,000 less stock issuance costs of $23,161. Each unit consists of one share of common stock and one-half of one non-transferable common share purchase warrant. Each whole warrant entitled the holder to purchase one additional share of the Company’s common stock at an exercise price of $7.50 per share until September 4, 2017. The following tables summarize information regarding the warrants outstanding as of April 30, 2018 and April 30, 2017. Number of Average Warrants Exercise Price Expiry Dates Warrants at April 30, 2016 – $ – – Granted 146,500 $ 7.50 September 4, 2017 Exercised – $ – – Expired – $ – – Warrants at April 30, 2017 146,500 $ 7.50 September 4, 2017 Granted – $ – – Exercised – $ – – Expired (146,500 ) $ 7.50 September 4, 2017 Warrants at April 30, 2018 – $ – Employee Stock Purchase Plan Under the terms of the Employee Stock Purchase Plan (the “ESPP”) all regular salaried (non-probationary) employees can purchase up to 6% of their base salary in common shares of the Company at market price. The Company will match 50% of the shares purchased by issuing or purchasing in the market up to 3% of the respective employee’s base salary in shares. During the year ended April 30, 2018, the Company matched $43,614 (2017 - $35,028) in shares purchased by employees under the ESPP. During the year ended April 30, 2018, 24,699 shares (2017 – 45,956) were issued or purchased by employees on the open market under the ESPP. A total of 120,000 shares have been reserved for issuance under the ESPP. As of April 30, 2018, a total of 61,331 shares were available for issuance under the ESPP. Deferred Share Unit Plan Under the terms of the DSUP which is effective as at October 22, 2009, each deferred share unit (each, a “DSU”) is equivalent to one share of common stock. The maximum number of shares of common stock that may be reserved for issuance to any one participant pursuant to DSUs granted under the DSUP and any share compensation arrangement is 5% of the number of shares of common stock of the Company outstanding at the time of reservation. A DSU granted to a participant who is a director of the Company shall vest immediately on the award date. A DSU granted to a participant other than a director will generally vest as to one-third (1/3) of the number of DSUs granted on the first, second and third anniversaries of the award date. Fair value of the DSUs, which is based on the closing price of the Company’s common stock on the date of grant, is recorded as compensation expense over the vesting period. On September 12, 2017, the maximum number of shares of common stock authorized by the Company’s stockholders reserved for issuance under the DSUP was increased from 500,000 shares to 700,000 shares. During the year ended April 30, 2018, 119,998 (2017 - 90,453) DSUs were issued under the DSUP, of which 40,129 were granted to officers or employees and 79,869 were granted to non-employee directors. As of April 30, 2018, a total of 210,597 shares were available for issuance under the DSUP. The following table summarizes the Company’s outstanding DSU awards as of April 30, 2018 and 2017, and changes during the period then ended: Weighted Average Number of Grant Date Fair DSUs Value DSUs at April 30, 2016 254,939 $ 9.79 Granted 90,453 $ 2.40 Conversions – $ – Outstanding at April 30, 2017 345,392 $ 7.85 Granted 119,998 $ 2.21 Conversions – $ – Outstanding at April 30, 2018 465,390 $ 6.40 As of April 30, 2018, there was $73,615 (2017 – $110,181) of total unrecognized compensation cost related to unvested DSU awards. This unrecognized compensation cost is expected to be recognized over a weighted average period of 1.98 years (2017 – 1.44 years). The total fair value of DSUs that vested during the year was $308,163 (2017 – $319,577). Employee and non-employee DSU based compensation amounts classified in the Company’s consolidated statements of operations for the year ended April 30, 2018 and 2017 are as follows: Year Ended April 30, 2018 2017 Sales and marketing $ – $ – Research and development – – General and administrative 274,246 296,429 Total deferred share unit-based compensation $ 274,246 $ 296,429 The following table summarizes information regarding the non-vested DSUs outstanding as of April 30, 2018: Weighted Average Number of Grant Date Fair DSUs Value per Unit Non-vested DSUs at April 30, 2016 38,522 $ 8.15 Granted 90,453 $ 2.40 Vested (82,758 ) $ 3.86 Non-vested DSUs at April 30, 2017 46,217 $ 4.58 Granted 119,998 $ 2.21 Vested (101,963 ) $ 3.02 Non-vested DSUs at April 30, 2018 64,252 $ 2.62 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2018 | |
Income Taxes [Text Block] | Note 9 Income Taxes Deferred tax assets and liabilities are recognized for temporary differences between the carrying amount of the balance sheet items and their corresponding tax values as well as for the benefit of losses available to be carried forward to future years for tax purposes that are likely to be realized. Significant components of the Company’s deferred tax assets and liabilities, after applying enacted corporate income tax rates, are as follows: Years Ended April 30, 2018 2017 Tax loss carry forwards $ 13,606,000 $ 19,378,000 Capital losses carried forward 242,000 227,000 Equipment 133,000 164,000 Other 12,000 39,000 Bad debt 109,000 29,000 Nondeductible research and development expenses 2,993,000 2,837,000 Investment tax credits 439,000 413,000 Other intangibles 431,000 405,000 Acquired technology (183,000 ) 313,000 Valuation allowance established by management (17,782,000 ) (23,805,000 ) Net deferred tax assets $ – $ – The provision for income taxes differ from the amount calculated using the U.S. federal and state statutory income tax rates as follows: Years Ended April 30, 2018 2017 Tax (recovery) based on U.S. rates $ (957,000 ) $ (836,000 ) Foreign tax rate differential (20,000 ) (38,000 ) Non-deductible expenses – – Change in fair value of derivative instrument – – Non-deductible stock option compensation 182,000 289,000 Effect of reduction (increase) in statutory rates 6,648,000 – Foreign exchange losses on revaluation of deferred tax balances (464,000 ) (818,000 ) Under provision relating to prior year (72,000 ) 2,000 Expiry of non-operating losses 706,000 – Increase in valuation allowance (6,023,000 ) 1,401,000 Income tax expense for year $ – $ – On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, which significantly revises the ongoing U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%. The Company recorded a deferred tax expense in respect of its U.S. operations in 2017 using the new federal rate of 21% (2016 – 34%; 2015 – 34%); however, there was no impact on tax expense as a valuation allowance is provided on all the deferred tax assets. The Tax Act also incorporates changes to certain international tax provisions, including the implementation of a territorial tax system that imposes a one-time tax on foreign unremitted earnings. The Company does not anticipate that the foreign provisions will have an impact to the Company’s taxes. The Company has calculated its best estimate of the impact of the Tax Act in its year end income tax provision in accordance with its understanding of the Tax Act and guidance available as of the date of this filing. The provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $6,648,000. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company establishes its valuation allowance based on projected future operations. Management has determined that the allowance should be 100% of the net deferred tax assets. When circumstances cause a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance will be reflected in current income. As at April 30, 2018, the Company had net operating loss carry-forwards available to reduce taxable income in future years as follows: Country Amount Expiration Dates United States – US$ $ 47,754,000 2026 – 2037 Canada – CDN$ $ 13,513,000 (1) 2018 – 2033 (1) The Company is subject to taxation in the U.S. and Canada. It is subject to tax examinations by tax authorities for all taxation years commencing in or after 2002. The Company does not expect any material increase or decrease in its income tax expense in the next twelve months related to examinations or changes in uncertain tax positions. Changes in the Company’s uncertain tax positions for the year ended April 30, 2018 and April 30, 2017 were as follows: Years Ended April 30, 2018 2017 Balance at beginning of year $ 9,763 $ 10,563 Increases related to prior year tax positions (interest and penalties) – – Increases related to current year tax positions (interest and penalties) – – Settlements – – Lapses in statute of limitations – (800 ) Balance at end of year $ 9,763 $ 9,763 |
Segmented Information
Segmented Information | 12 Months Ended |
Apr. 30, 2018 | |
Segmented Information [Text Block] | Note 10 Segmented Information The Company’s chief operating decision maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. Accordingly, the Company has concluded that it has one reportable operating segment. Revenues are categorized based on the country in which the customer is located. The following is a summary of total revenues by geographic area for the years ended April 30, 2018 and 2017: Years Ended April 30, 2018 2017 North America $ 6,916,556 $ 6,220,367 EMEA 3,961,595 2,802,629 Asia Pacific 950,131 1,043,360 Latin America 553,459 619,234 $ 12,381,741 $ 10,685,590 All of the Company’s long-lived assets, which includes equipment, goodwill and intangibles and other assets are located in Canada and the United States as follows: As at April 30, 2018 2017 Canada $ 7,150,537 $ 6,731,644 United States 35,919 34,761 $ 7,186,456 $ 6,766,405 |
Commitments
Commitments | 12 Months Ended |
Apr. 30, 2018 | |
Commitments [Text Block] | Note 11 Commitments Total payable over the term of the lease agreements for the years ended April 30, are as follows: Office Office Voice Leases – Leases – Total Platform Software Related Unrelated Office Service Development Party Party Leases Contract Contract 2019 $ 114,724 $ 558,504 $ 673,228 $ 200,000 $ 149,750 2020 5,274 275,834 281,108 240,000 - 2021 - 6,092 6,092 220,000 - $ 119,998 $ 840,430 $ 960,428 $ 660,000 $ 149,750 |
Contingencies
Contingencies | 12 Months Ended |
Apr. 30, 2018 | |
Contingencies [Text Block] | Note 12 Contingencies The Company is party to legal claims from time to time which arise in the normal course of business. These claims are not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
Loss per share
Loss per share | 12 Months Ended |
Apr. 30, 2018 | |
Loss per share [Text Block] | Note 13 Loss per share The following table shows the computation of basic and diluted loss per share: Year ended April 30, 2018 2017 Numerator Income available to common stockholders $ (3,220,670 ) $ (2,458,515 ) Denominator Weighted average shares outstanding 5,496,201 4,722,724 Effect of dilutive securities (1) (2) - - 5,496,201 4,722,724 Basic and diluted loss per share $ (0.59 ) $ (0.52 ) (1) (2) |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2018 | |
Basis of Presentation and Principles of Consolidation [Policy Text Block] | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise disclosed. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CounterPath Technologies Inc., a company existing under the laws of the province of British Columbia, Canada, and BridgePort Networks, Inc. (“BridgePort”), a company incorporated under the laws of the state of Delaware. The results of NewHeights Software Corporation (“NewHeights”), which subsequently was amalgamated with another subsidiary to become CounterPath Technologies Inc., are included from August 2, 2007, the date of acquisition. The results of FirstHand Technologies Inc. (“FirstHand”), which subsequently was amalgamated with CounterPath Technologies Inc., and BridgePort are included from February 1, 2008, the date of acquisition. All inter-company transactions and balances have been eliminated. These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has experienced flat to declining revenues as a result of a number of factors including its buildout of a cloud based subscription platform concurrent with the change of its licensing model to subscription based licensing and has not reached profitable operations which raises substantial doubt about its ability to continue operating as a going concern within one year of the date of the financial statements. The Company has historically been able to manage liquidity requirements through cost management and cost reduction measures, supplemented with raising additional financing. To alleviate this situation, the Company has plans in place to improve its financial position and liquidity, while executing on its growth strategy, by managing and or reducing costs that is not expected to have an adverse impact on the ability to generate cash flows, as the transition to its software as a service platform and subscription licensing continues. As of April 30, 2018, the Company does not have any commitments to raise funds; however, the Company has historically been able to raise additional financing to assist with the Company’s transition. As of the date of these financial statements, and from the planned cost management and reduction measures, the Company has sufficient liquidity to meet the ongoing cash requirements of the Company for one year after the issuance date of the financial statements. Therefore, although substantial doubt has been raised, this has been alleviated by management’s plans. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the amounts reported in these consolidated financial statements, the notes thereto, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Concentrations of Credit Risk [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by federal deposit insurance; however, the Company believes that its credit risk is immaterial. The Company is also subject to concentrations of credit risk in its accounts receivable. The Company monitors and actively manages its receivables, and from time to time will insure certain receivables with higher credit risk and may require collateral or other securities to support its accounts receivable. The table below presents significant customers who accounted for greater than 10% of total accounts receivable and as of April 30, 2018 and 2017: April 30, 2018 2017 Customer A 18% 13% Customer B 13% − % |
Revenue Recognition [Policy Text Block] | Revenue Recognition The Company recognizes revenue in accordance with the Accounting Standard Codification (“ASC”) 985-605 “Software Revenue Recognition”. In accordance with these standards, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collection of the related accounts receivable is deemed probable. In making these judgments, management evaluates these criteria as follows: • Persuasive evidence of an arrangement. The Company considers a noncancelable agreement signed by the Company and the customer to be representative of persuasive evidence of an arrangement. • Delivery has occurred. The Company considers delivery to have occurred when the product has been delivered to the customer and no post-delivery obligations exist. In instances where customer acceptance is required, delivery is deemed to have occurred when customer acceptance has been achieved. • Fees are fixed or determinable. The Company considers the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within normal payment terms. If the fee is subject to refund or adjustment, the Company recognizes revenue when the refund or adjustment right lapses. If offered payment terms exceed the Company’s normal terms, the Company recognizes revenue as the amounts become due and payable or upon the receipt of cash when extended payment terms beyond 180 days are offered. • Collection is deemed probable . A substantial amount of the Company’s sales involve multiple element arrangements, such as products, support, professional services, and training. When arrangements include multiple elements, the Company allocates the total fee to delivered elements using the residual method when vendor specific objective evidence (VSOE) does not exist for the delivered element but VSOE for the undelivered item exists. Under the residual method, consideration is allocated to the undelivered items based on their respective VSOEs and is deferred, with the remaining portion of the arrangement consideration generally recognized upon delivery of the delivered item. The Company analyzes each arrangement to determine if VSOE exists for the undelivered element, typically support services, and if VSOE does not exist, all revenue is deferred until VSOE is established or the element has been delivered. Revenue is allocated to each of the undelivered elements based on its respective fair value. For contracts with elements related to customized network solutions and certain network build-outs, for transactions accounted for as sales of products or services, we apply ASC Subtopic 605-25 “Revenue Recognition – Multiple-Element Arrangements” and revenues are recognized under ASC 605-35”Revenue Recognition – Construction type and Production type Contract”, for long-term transactions entered to supply software, or software systems, that require significant modification or customization, generally using the percentage-of-completion method. For multi-element arrangements with deliverables that are non-software related, the Company allocates revenue to all deliverables based on their selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE, (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. In using the percentage-of-completion method, revenues are generally recorded based on completion of milestones as described in the agreement. Profit estimates on long-term contracts are revised periodically based on changes in circumstances and any losses on contracts are recognized in the period that such losses become known. Subscription revenue generated from cloud-based services is typically billed annually in advance based on the terms of the arrangement and recognized over the term of the service contract. Support and maintenance services include e-mail and telephone support, unspecified rights to bug fixes and product updates and upgrades and enhancements available on a when-and-if available basis, and are recognized rateably over the term of the service period, which is generally twelve months. |
Stock-Based Compensation [Policy Text Block] | Stock-Based Compensation The Company adopted ASC 718 “Compensation – Stock Compensation”, using the modified prospective method on May 1, 2006. Under this application, the Company is required to record compensation expense, based on the fair value of the awards, for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding as at the date of adoption. In accordance with ASC 718, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Stock options granted to non-employees were accounted for in accordance with ASC 718 and ASC 505-50 “Equity based payments to non-employees” and were measured at the fair value of the options as determined by an option pricing model on the measurement date and compensation expense is amortized over the vesting period or, if none exists, over the service period. With the adoption of ASC 718, the Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. The Company has estimated the fair value of option awards to employees and non-employees for the years ended April 30, 2018 and April 30, 2017 using the assumptions more fully described in Note 8. |
Equipment and Amortization [Policy Text Block] | Equipment and Amortization Equipment is recorded at cost. Depreciation is provided for using the straight-line method over the estimated useful lives as follows: Computer hardware Two years Computer software Two years Leasehold improvements Shorter of lease term or estimated economic life Office furniture Five years Website Three years |
Research and Development [Policy Text Block] | Research and Development Research and development expense includes costs incurred to develop intellectual property. The costs for the development of new software and substantial enhancements to existing software are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. Management has determined that technological feasibility is established at the time a working model of software is completed. Because management believes that the current process for developing software will be essentially completed concurrently with the establishment of technological feasibility, no costs have been capitalized to date. |
Website Development Costs [Policy Text Block] | Website Development Costs The Company recognizes the costs associated with developing a website in accordance with ASC Topic 350-40 “Intangibles – Internal Use Software”. Internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Training costs are not internal-use software development costs and, if incurred during this stage, are expensed as incurred. These capitalized costs are amortized based on their estimated useful life over three years. Payroll and other related costs are not capitalized, as the amounts principally relate to maintenance. |
Goodwill [Policy Text Block] | Goodwill Goodwill represents the excess purchase price over the estimated fair value of net assets acquired and liabilities assumed as of the acquisition date. ASC Topic 350 “Intangibles – Goodwill” requires goodwill to be tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company's business enterprise below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit, which is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis. Management has determined that the Company operates as a single operating segment and consequently a single reporting unit due to the similar economic characteristics of its components and the nature of the products and services offered by those components. If the recorded value of the Company’s assets, including goodwill, and liabilities (“net book value”) of the reporting unit exceeds its fair value, an impairment loss may be required. The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate its carrying value may not be recoverable in accordance with FASB ASC 350, Goodwill and Other Intangible Assets In September of 2011, FASB issued Accounting Standards Update 2011-08, “Intangibles—Goodwill and Other (Topic 350)” Determining the fair value of the reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include future economic and market conditions and determination of appropriate market comparables. The Company bases its fair value estimates on assumptions management believes to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. Goodwill was initially recorded upon the acquisition of NewHeights on August 2, 2007 and FirstHand on February 1, 2008. At the time of each acquisition and as of the date of the consolidated financial statements, the Company recognized the following: April 30, Acquisition Date 2018 2017 NewHeights $ 6,339,717 CDN$ 6,704,947 $ 5,221,202 $ 4,914,029 FirstHand 2,083,960 2,083,752 1,622,373 1,526,926 $ 8,423,677 CDN$ 8,788,699 $ 6,843,575 $ 6,440,955 The Company performed its annual impairment test during the fourth quarter for the years ended April 30, 2018 and 2017 and concluded that there has been no impairment to the carrying amount. |
Intangible Assets [Policy Text Block] | Intangible Assets The Company’s intangible assets consists of patents and trademarks. Costs related to granted patents are capitalized and amortized over the expected life of the patent which ranges from 16 to 20 years. Costs related to patent applications are expensed as incurred. Costs related to trademarks are capitalized and are not amortized as the Company expects such trademarks to be used indefinitely. |
Accounts Receivable and Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are presented net of an allowance for doubtful accounts. Years Ended April 30, 2018 2017 Balance of allowance for doubtful debts, beginning of year $ 80,232 $ 547,173 Bad debt provision 578,024 346,689 Write-off of receivables (335,618 ) (813,630 ) Balance of allowance for doubtful debts, end of year $ 322,638 $ 80,232 The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. |
Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation The Company’s functional currency is the U.S. dollar. The Company’s wholly-owned subsidiaries with a functional currency other than the U.S. dollar are translated into amounts in the reporting currency, U.S. dollars, in accordance with ASC Topic 830 “Foreign Currency Matters”. Revenues and expenses are translated at the average exchange rate prevailing during the periods. At each balance sheet date, assets and liabilities that are denominated in a currency other than U.S. dollars are adjusted to reflect the current exchange rate which may give rise to a foreign currency translation adjustment accounted for as a separate component of stockholders’ equity and included in comprehensive loss. For transactions undertaken by the Company in foreign currencies, monetary assets and liabilities are translated into the functional currency at the exchange rate in effect at the end of the year. Non-monetary assets and liabilities are translated at the exchange rate prevailing when the assets were acquired or the liabilities assumed. Revenues and expenses are translated at the rate approximating the rate of exchange on the transaction date. Exchange gains and losses are included in the determination of net income (loss) for the year. |
Accrued Warranty [Policy Text Block] | Accrued Warranty The Company’s warranty policy generally provides for one year of warranty for its products. The Company records a liability for estimated warranty obligations at the date products are sold. The estimated cost of warranty coverage is based on the Company’s actual historical experience with its current products or similar products. For new products, the required reserve is based on historical experience of similar products until such time as sufficient historical data has been collected on the new product. Estimated liabilities for warranty exposures, which relate to normal product warranties and a one-year obligation to provide for potential future liabilities for product sales for the years ended April 30, 2018 and 2017 were as follows: Years Ended April 30, 2018 2017 Balance, beginning of year $ 54,365 $ 61,356 Usage during the year − − Additions (reductions) during the year 8,765 (6,991 ) Balance, end of year $ 63,130 $ 54,365 |
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments ASC 820, Fair Value Measurements, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. |
Derivative Instruments [Policy Text Block] | Derivative Instruments Although a majority of the Company’s revenue activities are transacted in U.S. dollars, the Company is exposed to foreign currency exchange rate risk inherent in conducting business globally. A significant portion of the Company’s operations is conducted in Canadian dollars. To help manage exposures to the variability in the U.S. dollar equivalent of anticipated non-U.S. dollar denominated cash flows, the Company may enter into foreign currency forward contracts. The Company recognizes its derivative instruments as assets or liabilities at fair value in the consolidated balance sheets. Accounting for changes in the fair value of a derivative instrument depends on whether it has been designated as part of a hedging relationship. For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of change in fair value of the derivative is reported as a component of other comprehensive loss, and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of change in fair value is recorded as a component of net loss on the consolidated statements of operations. If hedge accounting is discontinued for any other reason, any previously deferred gain or loss will remain in other comprehensive loss and amortized into earnings as the hedged transaction affects future earnings. For undesignated derivative instruments, the change in fair value is reported as a component of net loss on the consolidated statements of operations. As of April 30, 2018 and 2017, the Company did not enter into any derivative contracts. |
Income Taxes [Policy Text Block] | Income Taxes The Company accounts for income taxes by the asset and liability method in accordance with ASC Topic 740 “Income Taxes”. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized in the current year for temporary differences between the tax and accounting bases of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes that are likely to be realized. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company has not recorded a deferred tax liability related to its investment in foreign subsidiaries. The Company has determined that its investment in these subsidiaries is permanent in nature and it does not intend to dispose of these investments in the foreseeable future. The amount of the deferred tax liability related to the Company’s investment in foreign subsidiaries is not reasonably determinable. The Company has $971,070 in cash held outside of the United States, and there is no intent to repatriate at this time. Should we decide to repatriate in the future, taxes would need to be accrued and paid. Under ASC 740, the Company also adopted a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company recognizes interest and penalties accrued on unrecognized tax benefits within general and administrative expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in general and administrative expenses in the period that such determination is made. |
Comprehensive Loss [Policy Text Block] | Comprehensive Loss Comprehensive loss is comprised of net profit or loss, and foreign currency translation adjustments. |
Loss per Share [Policy Text Block] | Loss per Share ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted EPS gives effect to all dilutive potential common shares outstanding during the year including stock options and warrants using the treasury stock method. In computing diluted EPS, the average stock price for the year is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. For the year ended April 30, 2018, income per share excludes 1,140,432 (April 30, 2017 – 888,814) potentially dilutive common shares (related to stock options, deferred share units and warrants) as their effect was anti-dilutive. |
Investment tax credits [Policy Text Block] | Investment tax credits Investment tax credits are accounted for under the cost reduction method whereby they are netted against the expense or property and equipment to which they relate. Investment tax credits are recorded when the qualifying expenditures have been incurred and if it is more likely than not that the tax credits will be realized. |
Recently Issued Accounting Pronouncements [Policy Text Block] | Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This amendment is effective for annual periods beginning after December 15, 2018, including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment, which amends the guidance to eliminate Step 2 from the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments: Measurement of Credit Losses on Financial Instruments, which amends the guidance on measuring credit losses on financial assets held at amortized cost. The amendment is intended to address the issue that the previous “incurred loss” methodology was restrictive for Company’s ability to record credit losses based on not yet meeting the “probable” threshold. The new language will require these assets to be valued at amortized cost presented at the net amount expected to be collected will a valuation provision. The amendments will be effective for fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this amendment on our consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, Leases In May 2014, FASB issued ASU 2014-09, Revenue From Contracts With Customers (“Topic 606”) The new standard will be effective for the Company in the quarter ending July 31, 2018 and permits two methods of adoption: (1) the full retrospective method, which requires the standard to be applied to each prior period presented, or (2) the modified retrospective method, whereby ASU 2014-09 would be applied to new contracts and existing contracts with remaining performance obligations as of the effective date, with the cumulative effect of adoption on contracts with remaining performance obligations to be recognized as an adjustment to opening retained earnings in the period of adoption. In 2016, the FASB issued ASU 2016-08 “ Revenue from Contracts with Customers: Principal versus Agent Considerations Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | April 30, 2018 2017 Customer A 18% 13% Customer B 13% − % |
Straight-line Method Estimations [Table Text Block] | Computer hardware Two years Computer software Two years Leasehold improvements Shorter of lease term or estimated economic life Office furniture Five years Website Three years |
Schedule of Goodwill [Table Text Block] | April 30, Acquisition Date 2018 2017 NewHeights $ 6,339,717 CDN$ 6,704,947 $ 5,221,202 $ 4,914,029 FirstHand 2,083,960 2,083,752 1,622,373 1,526,926 $ 8,423,677 CDN$ 8,788,699 $ 6,843,575 $ 6,440,955 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Years Ended April 30, 2018 2017 Balance of allowance for doubtful debts, beginning of year $ 80,232 $ 547,173 Bad debt provision 578,024 346,689 Write-off of receivables (335,618 ) (813,630 ) Balance of allowance for doubtful debts, end of year $ 322,638 $ 80,232 |
Schedule of Product Warranty Liability [Table Text Block] | Years Ended April 30, 2018 2017 Balance, beginning of year $ 54,365 $ 61,356 Usage during the year − − Additions (reductions) during the year 8,765 (6,991 ) Balance, end of year $ 63,130 $ 54,365 |
Equipment (Tables)
Equipment (Tables) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Property, Plant and Equipment [Table Text Block] | April 30, 2018 Accumulated Cost Depreciation Net Computer hardware $ 1,193,527 $ 1,109,268 $ 84,259 Computer software 1,013,277 1,012,749 528 Leasehold improvements 263,774 236,112 27,662 Office furniture 194,702 185,332 9,370 Websites 120,339 120,339 − $ 2,785,619 $ 2,663,800 $ 121,819 | April 30, 2017 Accumulated Cost Depreciation Net Computer hardware $ 1,036,217 $ 967,681 $ 68,536 Computer software 993,425 986,560 6,865 Leasehold improvements 230,730 200,434 30,296 Office furniture 173,902 162,120 11,782 Websites 118,772 110,438 8,334 $ 2,553,046 $ 2,427,233 $ 125,813 |
Intangibles and Other Assets (T
Intangibles and Other Assets (Tables) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | April 30, 2018 Accumulated Cost Amortization Net Patents $ 461,637 $ (411,788 ) $ 49,849 Trademarks 165,462 - 165,462 Other assets 5,751 - 5,751 $ 632,850 $ (411,788 ) $ 221,062 | April 30, 2017 Accumulated Cost Amortization Net Patents $ 452,306 $ (408,287 ) $ 44,019 Trademarks 149,979 - 149,979 Other assets 5,639 - 5,639 $ 607,924 $ (408,287 ) $ 199,637 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ended April 30, 2019 $ 5,355 2020 4,248 2021 4,248 2022 4,248 2023 4,248 Thereafter 27,502 Total $ 49,849 |
Accounts Payable and Accrued 26
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | April 30, 2018 2017 Accounts payable – trade $ 678,760 $ 404,234 Accrued commissions 215,172 241,883 Accrued vacation 744,108 607,238 Third party software royalties 207,531 328,740 Other accrued liabilities 592,162 243,433 $ 2,437,733 $ 1,825,528 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended Year Ended April 30, 2018 April 30, 2017 Risk-free interest rate 2.14% 1.39% Expected volatility 95.55% 94.95% Expected term 3.7 years 3.7 years Dividend yield 0% 0% |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Weighted-Average Options Exercise Price Outstanding at April 30, 2016 410,730 $ 12.99 Granted 125,000 $ 2.38 Exercised - $ - Forfeited / Cancelled (49,268 ) $ 4.16 Expired (89,540 ) $ 7.59 Outstanding at April 30, 2017 396,922 $ 2.46 Granted 324,000 $ 2.89 Exercised (495 ) $ 2.46 Forfeited / Cancelled (15,385 ) $ 2.53 Expired (30,000 ) $ 2.50 Outstanding at April 30, 2018 675,042 $ 2.66 Exercisable at April 30, 2018 256,555 $ $2.47 Exercisable at April 30, 2017 221,739 $ $2.49 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Number of Aggregate Number of Aggregate Exercise Options Intrinsic Options Intrinsic Price Outstanding Value Expiry Date Exercisable Value $2.03 10,000 $ 5,700 December 15, 2021 3,333 $ 1,900 $2.40 60,000 $ 12,000 July 15, 2021 26,250 $ 5,250 $2.41 47,760 $ 9,074 December 14, 2020 27,977 $ 5,316 $2.46 25,000 $ 3,500 March 14, 2022 6,771 $ 948 $2.50 210,282 $ 21,028 July 19, 2017 to July 17, 2020 192,224 $ 19,222 $2.89 322,000 $ – December 14, 2022 – $ – April 30, 2018 675,042 $ 51,302 256,555 $ 32,636 April 30, 2017 396,922 $ – 221,739 $ – |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Weighted Average Number of Grant-Date Options Fair Value Non-vested options at April 30, 2016 173,935 $ 4.15 Granted 125,000 $ 1.54 Vested ( 84,833 ) $ 4.86 Forfeited ( 38,919 ) $ 1.95 Non-vested options at April 30, 2017 175,183 $ 3.49 Granted 324,000 $ 1.90 Vested ( 73,965 ) $ 3.64 Forfeited ( 6,731 ) $ 1.98 Non-vested options at April 30, 2018 418,487 $ 1.91 |
Schedule of Employee and Non-Employee Service Share-based Compensation Allocation of Recognized Period Costs [Table Text Block] | April 30, 2018 2017 Cost of sales $ 55,444 $ 97,434 Sales and marketing 84,685 172,367 Research and development 60,964 102,975 General and administrative 129,227 166,713 Total stock-based compensation $ 330,320 $ 539,489 |
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block] | Number of Average Warrants Exercise Price Expiry Dates Warrants at April 30, 2016 – $ – – Granted 146,500 $ 7.50 September 4, 2017 Exercised – $ – – Expired – $ – – Warrants at April 30, 2017 146,500 $ 7.50 September 4, 2017 Granted – $ – – Exercised – $ – – Expired (146,500 ) $ 7.50 September 4, 2017 Warrants at April 30, 2018 – $ – |
Schedule of Stockholders Equity Deferred Share Unit Plan [Table Text Block] | Weighted Average Number of Grant Date Fair DSUs Value DSUs at April 30, 2016 254,939 $ 9.79 Granted 90,453 $ 2.40 Conversions – $ – Outstanding at April 30, 2017 345,392 $ 7.85 Granted 119,998 $ 2.21 Conversions – $ – Outstanding at April 30, 2018 465,390 $ 6.40 |
Schedule of Allocation of Share Based Compensation Costs for Deferred Share Units [Table Text Block] | Year Ended April 30, 2018 2017 Sales and marketing $ – $ – Research and development – – General and administrative 274,246 296,429 Total deferred share unit-based compensation $ 274,246 $ 296,429 |
Schedule of Stockholders Equity Non Vested Deferred Share Units [Table Text Block] | Weighted Average Number of Grant Date Fair DSUs Value per Unit Non-vested DSUs at April 30, 2016 38,522 $ 8.15 Granted 90,453 $ 2.40 Vested (82,758 ) $ 3.86 Non-vested DSUs at April 30, 2017 46,217 $ 4.58 Granted 119,998 $ 2.21 Vested (101,963 ) $ 3.02 Non-vested DSUs at April 30, 2018 64,252 $ 2.62 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Years Ended April 30, 2018 2017 Tax loss carry forwards $ 13,606,000 $ 19,378,000 Capital losses carried forward 242,000 227,000 Equipment 133,000 164,000 Other 12,000 39,000 Bad debt 109,000 29,000 Nondeductible research and development expenses 2,993,000 2,837,000 Investment tax credits 439,000 413,000 Other intangibles 431,000 405,000 Acquired technology (183,000 ) 313,000 Valuation allowance established by management (17,782,000 ) (23,805,000 ) Net deferred tax assets $ – $ – |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years Ended April 30, 2018 2017 Tax (recovery) based on U.S. rates $ (957,000 ) $ (836,000 ) Foreign tax rate differential (20,000 ) (38,000 ) Non-deductible expenses – – Change in fair value of derivative instrument – – Non-deductible stock option compensation 182,000 289,000 Effect of reduction (increase) in statutory rates 6,648,000 – Foreign exchange losses on revaluation of deferred tax balances (464,000 ) (818,000 ) Under provision relating to prior year (72,000 ) 2,000 Expiry of non-operating losses 706,000 – Increase in valuation allowance (6,023,000 ) 1,401,000 Income tax expense for year $ – $ – |
Summary of Operating Loss Carryforwards [Table Text Block] | Country Amount Expiration Dates United States – US$ $ 47,754,000 2026 – 2037 Canada – CDN$ $ 13,513,000 (1) 2018 – 2033 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | Years Ended April 30, 2018 2017 Balance at beginning of year $ 9,763 $ 10,563 Increases related to prior year tax positions (interest and penalties) – – Increases related to current year tax positions (interest and penalties) – – Settlements – – Lapses in statute of limitations – (800 ) Balance at end of year $ 9,763 $ 9,763 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Years Ended April 30, 2018 2017 North America $ 6,916,556 $ 6,220,367 EMEA 3,961,595 2,802,629 Asia Pacific 950,131 1,043,360 Latin America 553,459 619,234 $ 12,381,741 $ 10,685,590 |
Schedule of Long Lived Assets by Geographical Areas [Table Text Block] | As at April 30, 2018 2017 Canada $ 7,150,537 $ 6,731,644 United States 35,919 34,761 $ 7,186,456 $ 6,766,405 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Agreements by Year [Table Text Block] | Office Office Voice Leases – Leases – Total Platform Software Related Unrelated Office Service Development Party Party Leases Contract Contract 2019 $ 114,724 $ 558,504 $ 673,228 $ 200,000 $ 149,750 2020 5,274 275,834 281,108 240,000 - 2021 - 6,092 6,092 220,000 - $ 119,998 $ 840,430 $ 960,428 $ 660,000 $ 149,750 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended April 30, 2018 2017 Numerator Income available to common stockholders $ (3,220,670 ) $ (2,458,515 ) Denominator Weighted average shares outstanding 5,496,201 4,722,724 Effect of dilutive securities (1) (2) - - 5,496,201 4,722,724 Basic and diluted loss per share $ (0.59 ) $ (0.52 ) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Effective Income Tax Rate | 50.00% | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,140,432 | 888,814 |
Foreign currency held | $ 971,070 | |
Minimum [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years | |
Effective Income Tax Rate | 21.00% | |
Maximum [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |
Effective Income Tax Rate | 35.00% |
Intangibles and Other Assets (N
Intangibles and Other Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Amortization of Intangible Assets | $ 3,500 | $ 3,319 |
Amortization Period for Patents | 13 years 2 months 12 days | 12 years |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Dec. 15, 2016 | Jan. 24, 2018 | Jul. 20, 2017 | Apr. 30, 2018 | Apr. 30, 2017 |
Private placement, net of share issuance costs (Shares) | 454,097 | 427,500 | 539,240 | ||
Sale of Stock, Price Per Share | $ 2.05 | $ 4.01 | $ 2.20 | ||
Proceeds from Issuance of Common Stock | $ 930,899 | $ 1,714,275 | $ 1,186,328 | $ 2,902,990 | $ 898,693 |
Payments of Stock Issuance Costs | $ 32,207 | $ 48,325 | $ 19,832 | ||
KRP [Member] | |||||
Payments for Rent | 83,957 | 78,386 | |||
Private placement, net of share issuance costs (Shares) | 198,000 | 125,000 | |||
8007004 (Canada) Inc. [Member] | |||||
Payments for Rent | $ 31,686 | $ 30,591 | |||
Wesley Clover [Member] | |||||
Private placement, net of share issuance costs (Shares) | 144,357 | ||||
KMB Trac Two Holdings Ltd [Member] | |||||
Private placement, net of share issuance costs (Shares) | 125,000 | 180,446 | |||
The chief executive officer and a director of our company [Member] | |||||
Private placement, net of share issuance costs (Shares) | 12,195 | 11,368 | |||
The chief financial officer of our company [Member] | |||||
Private placement, net of share issuance costs (Shares) | 4,511 | ||||
Executive Vice President [Member] | |||||
Private placement, net of share issuance costs (Shares) | 4,545 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - 12 months ended Apr. 30, 2018 | USD ($)moyr$ / sharesshares | CAD ($)moyrshares |
Common Stock 1 | shares | 427,500 | 427,500 |
Common Stock 2 | $ / shares | $ 4.01 | |
Common Stock 3 | $ 1,714,275 | |
Common Stock 4 | $ 48,325 | |
Common Stock 5 | shares | 539,240 | 539,240 |
Common Stock 6 | $ / shares | $ 2.20 | |
Common Stock 7 | $ 1,186,328 | |
Common Stock 8 | $ 19,832 | |
Common Stock 9 | shares | 454,097 | 454,097 |
Common Stock 10 | $ / shares | $ 2.05 | |
Common Stock 11 | $ 930,899 | |
Common Stock 12 | $ 32,207 | |
Common Stock 13 | shares | 14,000 | 14,000 |
Common Stock 14 | shares | 7,211 | 7,211 |
Common Stock 15 | shares | 13,600 | 13,600 |
Common Stock 16 | $ 2.49 | |
Common Stock 17 | $ 3.18 | |
Common Stock 18 | $ 33,119 | |
Common Stock 19 | $ 43,218 | |
Common Stock 20 | shares | 64,200 | 64,200 |
Common Stock 21 | $ 2.08 | |
Common Stock 22 | $ 2.74 | |
Common Stock 23 | $ 133,417 | |
Common Stock 24 | $ 175,850 | |
Common Stock 25 | shares | 284,278 | 284,278 |
Common Stock 26 | shares | 153,988 | 153,988 |
Common Stock 27 | shares | 59,900 | 59,900 |
Common Stock 28 | 12.50% | 12.50% |
Common Stock 29 | mo | 42 | 42 |
Common Stock 30 | 986,000 | 986,000 |
Common Stock 31 | 15.00% | 15.00% |
Common Stock 32 | $ 1.90 | |
Common Stock 33 | $ 1.54 | |
Common Stock 34 | $ / shares | $ 2.60 | |
Common Stock 35 | $ 1.93 | |
Common Stock 36 | 256,555 | 256,555 |
Common Stock 37 | 0 | 0 |
Common Stock 38 | $ 1,742 | |
Common Stock 39 | 0 | |
Common Stock 40 | 269,423 | |
Common Stock 41 | 412,602 | |
Common Stock 42 | $ 589,702 | |
Common Stock 43 | yr | 3.07 | 3.07 |
Common Stock 44 | shares | 293,000 | 293,000 |
Common Stock 45 | $ / shares | $ 5 | |
Common Stock 46 | $ 1,465,000 | |
Common Stock 47 | $ 23,161 | |
Common Stock 48 | $ / shares | $ 7.50 | |
Common Stock 49 | 6.00% | 6.00% |
Common Stock 50 | 50.00% | 50.00% |
Common Stock 51 | 3.00% | 3.00% |
Common Stock 52 | $ 43,614 | |
Common Stock 53 | $ 35,028 | |
Common Stock 54 | shares | 24,699 | 24,699 |
Common Stock 55 | 45,956 | 45,956 |
Common Stock 56 | shares | 120,000 | 120,000 |
Common Stock 57 | shares | 61,331 | 61,331 |
Common Stock 58 | 5.00% | 5.00% |
Common Stock 59 | shares | 500,000 | 500,000 |
Common Stock 60 | shares | 700,000 | 700,000 |
Common Stock 61 | 119,998 | 119,998 |
Common Stock 62 | 90,453 | 90,453 |
Common Stock 63 | 40,129 | 40,129 |
Common Stock 64 | 79,869 | 79,869 |
Common Stock 65 | shares | 210,597 | 210,597 |
Common Stock 66 | $ 73,615 | |
Common Stock 67 | $ 110,181 | |
Common Stock 68 | yr | 1.98 | 1.98 |
Common Stock 69 | yr | 1.44 | 1.44 |
Common Stock 70 | $ 308,163 | |
Common Stock 71 | $ 319,577 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Effective Income Tax Rate | 50.00% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% | 34.00% | 34.00% | |
Deferred Tax Assets and Liabilities | $ 6,648,000 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 100.00% | |||
Minimum [Member] | ||||
Effective Income Tax Rate | 21.00% | |||
Maximum [Member] | ||||
Effective Income Tax Rate | 35.00% |
Loss per share (Narrative) (Det
Loss per share (Narrative) (Details) - shares | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,140,432 | 888,814 |
Schedules of Concentration of R
Schedules of Concentration of Risk, by Risk Factor (Details) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Customer A [Member] | ||
Concentration Risk, Percentage | 18.00% | 13.00% |
Customer B [Member] | ||
Concentration Risk, Percentage | 13.00% | 0.00% |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) | 1 Months Ended | 12 Months Ended | |||||
Feb. 29, 2008USD ($) | Feb. 29, 2008CAD ($) | Aug. 31, 2007USD ($) | Aug. 31, 2007CAD ($) | Apr. 30, 2018USD ($) | Apr. 30, 2018CAD ($) | Apr. 30, 2017USD ($) | |
Goodwill, Acquired During Period | $ 8,423,677 | $ 8,788,699 | |||||
Goodwill | 6,843,575 | $ 6,440,955 | |||||
NewHeights [Member] | |||||||
Goodwill, Acquired During Period | $ 6,339,717 | $ 6,704,947 | |||||
Goodwill | 5,221,202 | 4,914,029 | |||||
FirstHand [Member] | |||||||
Goodwill, Acquired During Period | $ 2,083,960 | $ 2,083,752 | |||||
Goodwill | $ 1,622,373 | $ 1,526,926 |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Balance of allowance for doubtful accounts, beginning of period/year | $ 80,232 | $ 547,173 |
Bad debt provision | 578,024 | 346,689 |
Write-off of receivables | (335,618) | (813,630) |
Balance of allowance for doubtful accounts, end of period/year | $ 322,638 | $ 80,232 |
Schedule of Product Warranty Li
Schedule of Product Warranty Liability (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 |
Balance, beginning of year | $ 63,130 | $ 54,365 | $ 61,356 |
Additions (reductions) during the year | 8,765 | (6,991) | |
Balance, end of year | $ 63,130 | $ 54,365 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Property, Plant and Equipment, Gross | $ 2,785,619 | $ 2,553,046 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 2,663,800 | 2,427,233 |
Property, Plant and Equipment, Net | 121,819 | 125,813 |
Computer hardware [Member] | ||
Property, Plant and Equipment, Gross | 1,193,527 | 1,036,217 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,109,268 | 967,681 |
Property, Plant and Equipment, Net | 84,259 | 68,536 |
Computer software [Member] | ||
Property, Plant and Equipment, Gross | 1,013,277 | 993,425 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,012,749 | 986,560 |
Property, Plant and Equipment, Net | 528 | 6,865 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment, Gross | 263,774 | 230,730 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 236,112 | 200,434 |
Property, Plant and Equipment, Net | 27,662 | 30,296 |
Office furniture [Member] | ||
Property, Plant and Equipment, Gross | 194,702 | 173,902 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 185,332 | 162,120 |
Property, Plant and Equipment, Net | 9,370 | 11,782 |
Websites [Member] | ||
Property, Plant and Equipment, Gross | 120,339 | 118,772 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 120,339 | 110,438 |
Property, Plant and Equipment, Net | $ 8,334 |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Finite-Lived Intangible Assets, Gross | $ 632,850 | $ 607,924 |
Finite-Lived Intangible Assets, Accumulated Amortization | (411,788) | (408,287) |
Finite-Lived Intangible Assets, Net | 221,062 | 199,637 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Gross | 461,637 | 452,306 |
Finite-Lived Intangible Assets, Accumulated Amortization | (411,788) | (408,287) |
Finite-Lived Intangible Assets, Net | 49,849 | 44,019 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets, Gross | 165,462 | 149,979 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Finite-Lived Intangible Assets, Net | 165,462 | 149,979 |
Other assets [Member] | ||
Finite-Lived Intangible Assets, Gross | 5,751 | 5,639 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Finite-Lived Intangible Assets, Net | $ 5,751 | $ 5,639 |
Schedule of Finite-Lived Inta44
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Total | $ 221,062 | $ 199,637 |
Patents [Member] | ||
2,019 | 5,355 | |
2,020 | 4,248 | |
2,021 | 4,248 | |
2,022 | 4,248 | |
2,023 | 4,248 | |
Thereafter | 27,502 | |
Total | $ 49,849 | $ 44,019 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Accounts Payable, Trade, Current | $ 678,760 | $ 404,234 |
Accrued commissions | 215,172 | 241,883 |
Accrued Vacation, Current | 744,108 | 607,238 |
Accrued Royalties, Current | 207,531 | 328,740 |
Other Accrued Liabilities, Current | 592,162 | 243,433 |
Accounts payable and accrued liabilities | $ 2,437,733 | $ 1,825,528 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Risk-free interest rate | 2.14% | 1.39% |
Expected volatility | 95.55% | 94.95% |
Expected term | 3 years 8 months 12 days | |
Dividend yield | 0.00% | 0.00% |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Number of Options Outstanding at the beginning of period | 396,922 | 410,730 |
Weighted Average Exercise Price per Share of Options Oustanding at the beginning of period | $ 2.46 | $ 12.99 |
Number of Options Granted | 324,000 | 125,000 |
Weighted Average Exercise Price per Share of Options Granted | $ 2.89 | $ 2.38 |
Number of Options Exercised | (495) | 0 |
Weighted Average Exercise Price per Share of Options Exercised | $ 2.46 | $ 0 |
Number of Options Foreited/Cancelled | (15,385) | (49,268) |
Weighted Average Exercise Price per Share of Options Forfeited/Cancelled | $ 2.53 | $ 4.16 |
Number of Options Expired | (30,000) | (89,540) |
Weighted Average Exercise Price per Share of Options Expired | $ 2.50 | $ 7.59 |
Number of Options Outstanding at the end of period | 675,042 | 396,922 |
Weighted Average Exercise Price per Share of Options Outstanding at end of period | $ 2.66 | $ 2.46 |
Number of Options Exercisable at the end of period | 256,555 | 221,739 |
Weighted Average Exercise Price per Share of Options Exercisable at end of period | $ 2.47 | $ 2.49 |
Number of Options Exercisable at the beginning of period | 221,739 | |
Weighted Average Exercise Price per Share of Options Exercisable at beginning of period | $ 2.49 |
Disclosure of Share-based Compe
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 |
Exercise Price | $ 2.66 | $ 2.46 | $ 12.99 |
Number of Options Outstanding | 675,042 | 396,922 | 410,730 |
Aggregate Intrinsic Value of Options Outstanding | $ 51,302 | $ 0 | |
Number of Options Exercisable | 256,555 | 221,739 | |
Aggregate Intrinsic Value of Options Exercisable | $ 32,636 | $ 0 | |
Exercise Price Range 1 [Member] | |||
Exercise Price | $ 2.03 | ||
Number of Options Outstanding | 10,000 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 5,700 | ||
Number of Options Exercisable | 3,333 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 1,900 | ||
Exercise Price Range 2 [Member] | |||
Exercise Price | $ 2.40 | ||
Number of Options Outstanding | 60,000 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 12,000 | ||
Number of Options Exercisable | 26,250 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 5,250 | ||
Exercise Price Range 3 [Member] | |||
Exercise Price | $ 2.41 | ||
Number of Options Outstanding | 47,760 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 9,074 | ||
Number of Options Exercisable | 27,977 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 5,316 | ||
Exercise Price Range 4 [Member] | |||
Exercise Price | $ 2.46 | ||
Number of Options Outstanding | 25,000 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 3,500 | ||
Number of Options Exercisable | 6,771 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 948 | ||
Exercise Price Range 5 [Member] | |||
Exercise Price | $ 2.50 | ||
Number of Options Outstanding | 210,282 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 21,028 | ||
Number of Options Exercisable | 192,224 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 19,222 | ||
Exercise Price Range 6 [Member] | |||
Exercise Price | $ 2.89 | ||
Number of Options Outstanding | 322,000 | ||
Aggregate Intrinsic Value of Options Outstanding | $ 0 | ||
Number of Options Exercisable | 0 | ||
Aggregate Intrinsic Value of Options Exercisable | $ 0 |
Schedule of Nonvested Performan
Schedule of Nonvested Performance-based Units Activity (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Non-Vested Options Outstanding, beginning of period | 173,935 | |
Weighted Average Grant Date Fair Value of Non-Vested Options Outstanding, beginning of period | $ 4.15 | |
Non-Vested Options Granted During Period | 324,000 | 125,000 |
Weighted Average Grant Date Fair Value of Options Granted During Period | $ 1.90 | $ 1.54 |
Options Vested During Period Number | 73,965 | 84,833 |
Weighted Average Grant Date Fair Value of Options Vested During Period | $ 3.64 | $ 4.86 |
Non-Vested Options Forfeited or Cancelled During Period | 6,731 | 38,919 |
Weighted Average Grant Date Fair Value of Non-Vested Options Forfeited Or Cancelled During Period | $ 1.98 | $ 1.95 |
Non-Vested Options Outstanding, end of period | 418,487 | 175,183 |
Weighted Average Grant Date Fair Value of Non-Vested Options Outstanding, end of period | $ 1.91 | $ 3.49 |
Schedule of Employee and Non-Em
Schedule of Employee and Non-Employee Service Share-based Compensation Allocation of Recognized Period Costs (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Allocated Share-based Compensation Expense | $ 330,320 | $ 539,489 |
Cost of sales [Member] | ||
Allocated Share-based Compensation Expense | 55,444 | 97,434 |
Sales and marketing [Member] | ||
Allocated Share-based Compensation Expense | 84,685 | 172,367 |
Research and development [Member] | ||
Allocated Share-based Compensation Expense | 60,964 | 102,975 |
General and administrative [Member] | ||
Allocated Share-based Compensation Expense | $ 129,227 | $ 166,713 |
Schedule of Stockholders' Equit
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity (Details) - $ / shares | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Class of Warrant or Right, Outstanding, Beginning of Period | 146,500 | 0 |
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price, Beginning of Period | $ 7.50 | $ 0 |
Class of Warrant or Right, Grants in Period, Net of Forfeitures | 0 | 146,500 |
Class of Warrant or Right, Grants in Period, Weighted Average Exercise Price | $ 0 | $ 7.50 |
Class of Warrant or Right, Exercises in Period | 0 | 0 |
Class of Warrant or Right, Exercises in Period, Weighted Average Exercise Price | $ 0 | $ 0 |
Class of Warrant or Right, Expirations in Period | (146,500) | 0 |
Class of Warrant or Right, Expirations in Period, Weighted Average Exercise Price | $ 7.50 | $ 0 |
Class of Warrant or Right, Outstanding, End of Period | 0 | 146,500 |
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price, End of Period | $ 0 | $ 7.50 |
Schedule of Stockholders Equity
Schedule of Stockholders Equity Deferred Share Unit Plan (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Deferred Share Units Outstanding, beginning of period | 254,939 | |
Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, beginning of period | $ 9.79 | |
Deferred Share Units Granted During Period | 119,998 | 90,453 |
Deferred Share Units Granted During Period Weighted Average Grant Date Fair Value | $ 2.21 | $ 2.40 |
Deferred Share Units Converted During Period | 0 | 0 |
Deferred Share Units Converted During Period Weighted Average Grant Date Fair Value | $ 0 | $ 0 |
Deferred Share Units Outstanding, end of period | 465,390 | 345,392 |
Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, end of period | $ 6.40 | $ 7.85 |
Schedule of Allocation of Share
Schedule of Allocation of Share Based Compensation Costs for Deferred Share Units (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Deferred Compensation, Allocated Share-based Compensation Expense | $ 274,246 | $ 296,429 |
Sales and marketing [Member] | ||
Deferred Compensation, Allocated Share-based Compensation Expense | 0 | 0 |
Research and development [Member] | ||
Deferred Compensation, Allocated Share-based Compensation Expense | 0 | 0 |
General and administrative [Member] | ||
Deferred Compensation, Allocated Share-based Compensation Expense | $ 274,246 | $ 296,429 |
Schedule of Stockholders Equi54
Schedule of Stockholders Equity Non Vested Deferred Share Units (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Non-Vested Deferred Share Units Outstanding, beginning of period | 38,522 | |
Non-Vested Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, beginning of period | $ 8.15 | |
Deferred Share Units Granted During Period | 119,998 | 90,453 |
Deferred Share Units Granted During Period Weighted Average Grant Date Fair Value | $ 2.21 | $ 2.40 |
Deferred Share Units Vested During Period | (101,963) | (82,758) |
Deferred Share Units Vested During Period Weighted Average Grant Date Fair Value | $ 3.02 | $ 3.86 |
Non-Vested Deferred Share Units Outstanding, end of period | 64,252 | 46,217 |
Non-Vested Deferred Share Units Outstanding Weighted Average Grant Date Fair Value, end of period | $ 2.62 | $ 4.58 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Tax loss carry forwards | $ 13,606,000 | $ 19,378,000 |
Capital losses carried forward | 242,000 | 227,000 |
Equipment | 133,000 | 164,000 |
Other | 12,000 | 39,000 |
Bad debt | 109,000 | 29,000 |
Nondeductible research and development expenses | 2,993,000 | 2,837,000 |
Investment tax credits | 439,000 | 413,000 |
Other intangibles | 431,000 | 405,000 |
Acquired technology | (183,000) | 313,000 |
Valuation allowance established by management | (17,782,000) | (23,805,000) |
Net deferred tax assets | $ 0 | $ 0 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Expense (Benefit) | $ 0 | $ 0 |
Tax (recovery) based on U.S. rates [Member] | ||
Income Tax Expense (Benefit) | (957,000) | (836,000) |
Foreign tax rate differential [Member] | ||
Income Tax Expense (Benefit) | (20,000) | (38,000) |
Non-deductible expenses [Member] | ||
Income Tax Expense (Benefit) | 0 | 0 |
Change in fair value of derivative instrument [Member] | ||
Income Tax Expense (Benefit) | 0 | 0 |
Non-deductible stock option compensation [Member] | ||
Income Tax Expense (Benefit) | 182,000 | 289,000 |
Effect of reduction (increase) in statutory rates [Member] | ||
Income Tax Expense (Benefit) | 6,648,000 | 0 |
Foreign exchange losses on revaluation of deferred tax balances [Member] | ||
Income Tax Expense (Benefit) | (464,000) | (818,000) |
Under provision relating to prior year [Member] | ||
Income Tax Expense (Benefit) | (72,000) | 2,000 |
Expiry of non-operating losses [Member] | ||
Income Tax Expense (Benefit) | 706,000 | 0 |
Increase in valuation allowance [Member] | ||
Income Tax Expense (Benefit) | $ (6,023,000) | $ 1,401,000 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Tax loss carry forwards | $ 13,606,000 | $ 19,378,000 |
CANADA [Member] | ||
Tax loss carry forwards | 13,513,000 | |
UNITED STATES [Member] | ||
Tax loss carry forwards | $ 47,754,000 |
Summary of Positions for which
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Balance at beginning of year | $ 9,763 | $ 10,563 |
Increases related to prior year tax positions (interest and penalties) | 0 | 0 |
Increases related to current year tax positions (interest and penalties) | 0 | 0 |
Settlements | 0 | 0 |
Lapses in statute of limitations | 0 | (800) |
Balance at end of year | $ 9,763 | $ 9,763 |
Schedule of Revenue from Extern
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Revenues | $ 12,381,741 | $ 10,685,590 |
North America [Member] | ||
Revenues | 6,916,556 | 6,220,367 |
EMEA [Member] | ||
Revenues | 3,961,595 | 2,802,629 |
Asia Pacific [Member] | ||
Revenues | 950,131 | 1,043,360 |
Latin America [Member] | ||
Revenues | $ 553,459 | $ 619,234 |
Schedule of Long Lived Assets b
Schedule of Long Lived Assets by Geographical Areas (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 |
Long-lived assets | $ 7,186,456 | $ 6,766,405 |
Canada | ||
Long-lived assets | 7,150,537 | 6,731,644 |
United States | ||
Long-lived assets | $ 35,919 | $ 34,761 |
Schedule of Agreements by Year
Schedule of Agreements by Year (Details) | Apr. 30, 2018USD ($) |
Office Leases - Related party [Member] | |
Commitment, Due in Current Year | $ 114,724 |
Commitment, Due in Second Year | 5,274 |
Commitment, Due in Third Year | 0 |
Commitment Total | 119,998 |
Office Leases - Unrelated Party [Member] | |
Commitment, Due in Current Year | 558,504 |
Commitment, Due in Second Year | 275,834 |
Commitment, Due in Third Year | 6,092 |
Commitment Total | 840,430 |
Total Office Leases [Member] | |
Commitment, Due in Current Year | 673,228 |
Commitment, Due in Second Year | 281,108 |
Commitment, Due in Third Year | 6,092 |
Commitment Total | 960,428 |
Voice Platform Service Contract [Member] | |
Commitment, Due in Current Year | 200,000 |
Commitment, Due in Second Year | 240,000 |
Commitment, Due in Third Year | 220,000 |
Commitment Total | 660,000 |
Software Development Contract [Member] | |
Commitment, Due in Current Year | 149,750 |
Commitment, Due in Second Year | 0 |
Commitment, Due in Third Year | 0 |
Commitment Total | $ 149,750 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Income available to common stockholders | $ (3,220,670) | $ (2,458,515) |
Weighted average shares outstanding | 5,496,201 | 4,722,724 |
Effect of dilutive securities | 0 | 0 |
Weighted average common shares outstanding basic and diluted | 5,496,201 | 4,722,724 |
Basic and diluted loss per share | $ (0.59) | $ (0.52) |