Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | SPARTA COMMERCIAL SERVICES, INC. | |
Entity Central Index Key | 0000318299 | |
Document Type | 10-K | |
Document Period End Date | Apr. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 978,241 | |
Entity Common Stock, Shares Outstanding | 9,809,877 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 396 | |
Accounts receivable | 469 | 1,420 |
Inventory | 13,823 | 23,331 |
Other current assets | 470 | |
Total Current Assets | 14,688 | 25,221 |
Property and equipment, net of accumulated depreciation and amortization of $213,262 and $212,905, respectively | ||
Other assets | 9,628 | 9,628 |
Deposits | 9,000 | 9,000 |
Total assets | 33,316 | 43,849 |
Current Liabilities | ||
Bank overdraft | 49,041 | 14,773 |
Accounts payable and accrued expenses | 3,627,831 | 3,427,587 |
Short Term Loan | 409,013 | |
Current portion notes payable | 4,680,275 | 4,942,324 |
Deferred revenue | 13,946 | 16,254 |
Derivative liabilities | 3,446,738 | 2,802,125 |
Total Current Liabilities | 12,226,844 | 11,203,063 |
Loans payable-related parties | 432,403 | 432,403 |
Total Long Term Liabilities | 432,403 | 432,403 |
Total liabilities | 12,659,247 | 11,635,466 |
Deficit: | ||
Common stock, $0.001 par value; 750,000,000 shares authorized, and 9,809,877 and 9,433,282 shares issued and outstanding, respectively | 9,810 | 9,433 |
Common stock to be issued 1,214,528 and 847,8651 respectively | 1,215 | 848 |
Additional paid-in-capital | 51,363,531 | 50,120,928 |
Accumulated deficit | (64,993,250) | (62,702,339) |
Total deficiency in stockholders' equity | (13,612,930) | (12,565,868) |
Non-controlling interest | 986,999 | 974,251 |
Total Deficit | (12,625,931) | (11,591,617) |
Total Liabilities and Deficit | 33,316 | 43,849 |
Series A Convertible Preferred Stock [Member] | ||
Deficit: | ||
Preferred stock value | 125 | 125 |
Series B Redeemable Preferred Stock [Member] | ||
Deficit: | ||
Preferred stock value | ||
Series C Redeemable Convertible Preferred Stock [Member] | ||
Deficit: | ||
Preferred stock value | 4,145 | 4,005 |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Deficit: | ||
Preferred stock value | $ 1,494 | $ 1,132 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Accumulated depreciation and amortization | $ 213,262 | $ 212,905 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares designated | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 |
Common stock, shares issued | 9,809,877 | 9,433,282 | 627,092,904 |
Common stock, shares outstanding | 9,809,877 | 9,433,282 | 627,092,904 |
Common stock to be issued | 1,214,528 | 8,478,651 | 80,786,511 |
Series A Convertible Preferred Stock [Member] | |||
Preferred stock, par value | $ 100 | $ 100 | |
Preferred stock, shares designated | 35,850 | 35,850 | |
Preferred stock, shares issued | 125 | 125 | |
Preferred stock, shares outstanding | 125 | 125 | |
Series B Redeemable Preferred Stock [Member] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares designated | 1,000 | 1,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Preferred stock, liquidation and redemption value per share | $ 10,000 | $ 10,000 | |
Series C Redeemable Convertible Preferred Stock [Member] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares designated | 200,000 | 200,000 | |
Preferred stock, shares issued | 4,145 | 4,005 | |
Preferred stock, shares outstanding | 4,145 | 4,005 | |
Preferred stock, liquidation and redemption value per share | $ 10 | $ 10 | |
Series D Redeemable Convertible Preferred Stock [Member] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares designated | 2,000,000 | 2,000,000 | |
Preferred stock, shares issued | 1,494 | 1,520 | |
Preferred stock, shares outstanding | 1,494 | 1,520 | |
Preferred stock, liquidation and redemption value per share | $ 1 | $ 1 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue | ||
Total Revenue | $ 259,731 | $ 320,847 |
Less Cost of goods sold | 60,986 | 60,341 |
Gross profit | 198,745 | 260,506 |
Operating expenses: | ||
General and administrative | 1,394,881 | 1,052,178 |
Depreciation and amortization | 357 | |
Total operating expenses | 1,394,881 | 1,052,535 |
Loss from operations | (1,196,136) | (792,029) |
Other (income) expense: | ||
Other income | (7,690) | (5,571) |
Forgiveness of debt | (125,328) | (422,394) |
Financing cost | 723,003 | 1,262,542 |
Amortization of debt discount | 8,633 | |
Non-Qualified Option Exp | ||
Loss (gain) in changes in fair value of derivative liability | 504,599 | (862,044) |
Total other (income) expense | 1,094,584 | (18,834) |
Income (loss) from continuing operations | (2,290,720) | (773,195) |
Loss from discontinued operations | ||
Net income (loss) | (2,290,720) | (773,195) |
Net income attributed to non-controlling interest | (12,748) | (13,261) |
Preferred dividend | (191) | (764) |
Net income (loss) attributed to common stockholders | $ (2,303,659) | $ (787,220) |
Basic and diluted loss per share: | ||
Loss from continuing operations attributable to Sparta Commercial Services, Inc. common stockholders | $ (0.3230) | $ (0.1254) |
Loss from discontinued operations attributable to Sparta Commercial Services, Inc. common stockholders | 0 | |
Net loss attributable to Sparta Commercial Services, Inc. common stockholders | $ (0.3230) | $ (0.1255) |
Weighted average shares outstanding | 7,131,705 | 6,270,929 |
Information Technology [Member] | ||
Revenue | ||
Total Revenue | $ 245,675 | $ 275,817 |
New World Health Brands [Member] | ||
Revenue | ||
Total Revenue | $ 14,056 | $ 45,030 |
Consolidated Statements of Defi
Consolidated Statements of Deficit - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Series A Preferred Stock [Member] | ||
Balance | $ 125 | $ 125 |
Balance, shares | 125 | 125 |
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Sale of preferred stock, shares | ||
Shares issued for financing cost | ||
Shares issued for financing cost, shares | ||
Shares issued for settlement of accounts payable | ||
Shares issued for settlement of accounts payable, shares | ||
Shares issued for conversion of subsidiary preferred | ||
Shares issued for conversion of subsidiary preferred, shares | ||
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | $ 125 | $ 125 |
Balance, shares | 125 | 125 |
Series B Preferred Stock [Member] | ||
Balance | ||
Balance, shares | ||
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Sale of preferred stock, shares | ||
Shares issued for financing cost | ||
Shares issued for financing cost, shares | ||
Shares issued for settlement of accounts payable | ||
Shares issued for settlement of accounts payable, shares | ||
Shares issued for conversion of subsidiary preferred | ||
Shares issued for conversion of subsidiary preferred, shares | ||
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | ||
Balance, shares | ||
Series C Preferred Stock [Member] | ||
Balance | $ 4,005 | $ 2,960 |
Balance, shares | 4,005 | 2,960 |
Issuance of preferred and common stock for cash | $ 140 | |
Issuance of preferred and common stock for cash, shares | 140 | |
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | $ 953 | |
Sale of preferred stock, shares | 953 | |
Shares issued for financing cost | ||
Shares issued for financing cost, shares | ||
Shares issued for conversion of notes and interest | $ 92 | |
Shares issued for conversion of notes and interest, shares | 92,000 | |
Shares issued for settlement of accounts payable | ||
Shares issued for settlement of accounts payable, shares | ||
Shares issued for conversion of subsidiary preferred | ||
Shares issued for conversion of subsidiary preferred, shares | ||
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | $ 4,145 | $ 4,005 |
Balance, shares | 4,145 | 4,005 |
Series D Preferred Stock [Member] | ||
Balance | $ 1,132 | $ 580 |
Balance, shares | 1,132 | 580 |
Conversion of accrued compensation to series D preferred stock | $ 362 | |
Conversion of accrued compensation to series D preferred stock, shares | 362 | |
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Shares issued for financing cost | ||
Shares issued for financing cost, shares | ||
Shares issued for conversion of notes and interest | $ 330,000 | |
Shares issued for conversion of notes and interest, shares | 330,000 | |
Shares issued for settlement of accounts payable | $ 222 | |
Shares issued for settlement of accounts payable, shares | 222 | |
Shares issued for conversion of subsidiary preferred | $ 330 | |
Shares issued for conversion of subsidiary preferred, shares | 330 | |
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | $ 1,494 | $ 1,132 |
Balance, shares | 1,494 | 1,132 |
Common Stock [Member] | ||
Balance | $ 9,433 | $ 9,433 |
Balance, shares | 9,433,282 | 9,433,282 |
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | $ 127 | |
Shares issued for services, shares | 126,595 | |
Conversion of convertible notes | $ 250 | |
Conversion of convertible notes, shares | 250,000 | |
Sale of preferred stock | ||
Shares issued for financing cost | ||
Shares issued for financing cost, shares | ||
Shares issued for settlement of accounts payable | ||
Shares issued for settlement of accounts payable, shares | ||
Shares issued for conversion of subsidiary preferred | ||
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | $ 9,810 | $ 9,433 |
Balance, shares | 9,809,877 | 9,433,282 |
Common Stock to be Issued [Member] | ||
Balance | $ 848 | $ 808 |
Balance, shares | 847,865 | 807,865 |
Issuance of preferred and common stock for cash | $ 367 | |
Issuance of preferred and common stock for cash, shares | 366,663 | |
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Shares issued for financing cost | $ 30 | |
Shares issued for financing cost, shares | 30,000 | |
Shares issued for settlement of accounts payable | $ 1,000 | |
Shares issued for settlement of accounts payable, shares | 1,000,000 | |
Shares issued for conversion of subsidiary preferred | ||
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | ||
Balance | $ 1,215 | $ 848 |
Balance, shares | 1,214,528 | 847,865 |
Additional Paid-in Capital [Member] | ||
Balance | $ 50,120,928 | $ 48,925,869 |
Issuance of preferred and common stock for cash | 234,995 | |
Conversion of accrued compensation to series D preferred stock | 311,001 | |
Options issued for compensation and accrued compensation | 621,665 | |
Shares issued for services | 25,192 | |
Conversion of convertible notes | 49,750 | |
Sale of preferred stock | 475,547 | |
Shares issued for financing cost | 5,970 | |
Shares issued for settlement of accounts payable | 322,018 | |
Shares issued for conversion of subsidiary preferred | ||
Reclassification of derivative liability | 345,787 | |
Preferred dividend | ||
Net loss | ||
Balance | 51,363,531 | 50,120,928 |
Accumulated Deficit [Member] | ||
Balance | (62,702,339) | (61,915,119) |
Issuance of preferred and common stock for cash | ||
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Shares issued for financing cost | ||
Shares issued for settlement of accounts payable | ||
Shares issued for conversion of subsidiary preferred | ||
Reclassification of derivative liability | ||
Preferred dividend | (191) | (764) |
Net loss | (2,290,720) | (786,456) |
Balance | (64,993,250) | (62,702,339) |
Non-controlling Interest [Member] | ||
Balance | 974,251 | 961,320 |
Issuance of preferred and common stock for cash | ||
Conversion of accrued compensation to series D preferred stock | ||
Options issued for compensation and accrued compensation | ||
Shares issued for services | ||
Conversion of convertible notes | ||
Sale of preferred stock | ||
Shares issued for financing cost | ||
Shares issued for settlement of accounts payable | ||
Shares issued for conversion of subsidiary preferred | (330) | |
Reclassification of derivative liability | ||
Preferred dividend | ||
Net loss | 12,748 | 13,261 |
Balance | 986,999 | 974,251 |
Balance | (11,591,617) | (12,014,024) |
Issuance of preferred and common stock for cash | 235,502 | $ 322,250 |
Issuance of preferred and common stock for cash, shares | 1,000,000 | |
Conversion of accrued compensation to series D preferred stock | 311,363 | |
Options issued for compensation and accrued compensation | 621,665 | |
Shares issued for services | 25,319 | |
Conversion of convertible notes | 50,000 | |
Sale of preferred stock | $ 476,500 | |
Shares issued for financing cost | 6,000 | |
Shares issued for settlement of accounts payable | 322,250 | |
Shares issued for conversion of subsidiary preferred | ||
Reclassification of derivative liability | 345,787 | |
Preferred dividend | (191) | (764) |
Net loss | (2,290,720) | (773,195) |
Balance | $ (12,625,931) | $ (11,591,617) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,290,720) | $ (773,195) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 357 | |
Loss (Gain) from change in fair value of derivative liabilities | 504,599 | (862,044) |
Amortization of debt discount | 8,633 | |
Non-cash financing cost | 723,003 | 519,260 |
Forgiveness of debt | 382,931 | (422,394) |
Stock based compensation | 464,718 | |
Changes in operating assets and liabilities | ||
Accounts receivable | 951 | (15,028) |
Inventory | 9,508 | (18,164) |
Other assets | 470 | 1,357 |
Accounts payable and accrued expenses | (299,504) | 935,809 |
Deferred revenue | (2,308) | (1,381) |
Net cash used in operating activities | (678,387) | (626,790) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | ||
Net cash (used in) investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Bank overdraft | 34,268 | 3,277 |
Proceeds from sale of stock | 235,502 | 476,500 |
Proceeds from notes payable | 409,013 | 158,000 |
Payments on notes payable | (11,000) | |
Proceeds from related party notes | ||
Payments on related party notes | ||
Net cash provided by financing activities | 678,783 | 626,777 |
Net (decrease) increase in cash | 396 | (13) |
Cash and cash equivalents, beginning of period | 13 | |
Cash and cash equivalents , end of period | 396 | |
Cash paid for: | ||
Interest | 2,456 | |
Income taxes |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | NOTE A – SUMMARY OF ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. Business Sparta Commercial Services, Inc. (“Sparta,” “we,” “us,” or the “Company”) is a Nevada corporation serving four markets. Sparta is a technology company that develops, markets and manages business websites and mobile applications (mobile apps) for smartphones and tablets. The Company also owns and manages websites which sell on-demand motorcycle, recreational vehicle, power-sport vehicle and truck title history reports for consumers, retail dealers, auction houses, insurance companies and banks/finance companies. Lastly, since 2007, Sparta has administered leasing programs nationwide for local and/or state agencies seeking to finance municipal vehicles and equipment. The Company also introduced a new business line in the rapidly expanding Hemp-CBD (cannabidiol) market. In 2016, the Company changed the name of its majority-owned subsidiary Specialty Reports, Inc., to iMobile Solutions, Inc. The new name reflects the Company’s strategic evolution and focus on the growing mobile application market domestically. Sparta’s mobile application (mobile app) offerings have broadened our base beyond our original base of vehicle dealers to include a wide range of businesses including, but not limited to, agriculture dealerships, racetracks, private clubs, country clubs, restaurants and grocery stores. We also offer a private label version of our mobile app framework to enable other businesses to offer custom apps to their customers. The Company also designs, launches, maintains, and hosts websites for businesses. We provide specific, tailored action plans for our clients’ websites that include services such as eCommerce, CRM (Customer Relationship Management) development and integration, ordering system creation and integration, SEO (search engine optimization), social media marketing, and online reviews to improve their presence online. In addition, we offer text messaging services which are vital for businesses’ marketing, retention and loyalty strategies. Our text messaging platform allows our clients to easily manage, schedule, and analyze text message performance. The Company’s vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com www.rvchecks.com www.carvinreport.com www.truckchex.com Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease. New World Health Brands, Inc. (NWHB) was formed in April 2019 as a subsidiary and new business line of Sparta Commercial Services, Inc. While anticipating, and with the passing of the 2018 Farm Bill, which resulted in the removal of hemp (CBD) from Schedule 1 of the Controlled Substances Act. Sparta’s management recognized a substantial potential business opportunity in the rapidly expanding Industrial Hemp-CBD (Cannabinol) market in the United States. During 2019-2020, management sourced, developed and lab tested 5 CBD product categories totaling 31 products, procured product packaging, labeling, implemented fulfillment and launched an on-line B2C website, www.newworldhealthcbd.com. Sparta’s offices are located at 555 Fifth Avenue, 14 th www.spartacommercial.com We identify our ongoing information technology business in two reporting groups: mobile apps/websites and vehicle history reports, both of which operate under our wholly owned subsidiary, iMobile Solutions, Inc. The latest product offering, via www.newworldhealthcbd.com, offering a full array of hemp-derived CBD products, is contained in our subsidiary, New World Health Brands, Inc. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority owned subsidiary. All material intercompany transactions and balances have been eliminated in consolidation. The third party ownership of the Company’s subsidiary is accounted for as noncontrolling interest in the consolidated financial statements. Changes in the noncontrolling interest are reported in the statement of stockholders’ deficit. Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Revenue Recognition During the first quarter of 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions. Revenues from mobile app products and New World Health Brands products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The following table presents our revenues disaggregated by revenue source: Year Ended April 30, 2021 2020 Information Technology $ 245,675 $ 275,817 New World Health Brands 14,056 45,030 $ 259,731 $ 320,847 Cash Equivalents For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. Website Development Costs The Company recognizes website development costs in accordance with ASC 350-50, “Accounting for Website Development Costs.” Fair Value Measurements The Company adopted ASC 820, “Fair Value Measurements .” ● Level 1 — ● Level 2 — ● Level 3 — This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Stock Based Compensation We account for our stock based compensation under ASC 718 “ Compensation – Stock Compensation We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. Inventories The Company’s inventories represent finished goods, consist of products available for sale and are accounted for using the first-in, first-out (FIFO) method and valued at the lower of cost or net realizable value. Inventory consists of finished goods for the Company’s New World Health Brands business. Property and Equipment Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows: Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. Net Loss Per Share The Company uses ASC 260-10, “ Earnings Per Share, At April 30, 2021 and 2020, 42 million potential shares (including 847,866 shares to be issued included on the balance sheet) and 10,397,258 potential shares (including 807,866 shares to be issued included on the balance sheet), respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of April 30, 2021 and 2020, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815. ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described. Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “ Accounting for Derivative Instruments and Hedging Activities The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “ Accounting for Convertible Securities with Beneficial Conversion Features Reclassifications Certain reclassifications have been made to conform to prior periods’ data to the current presentation. These reclassifications had no effect on reported losses. Recent Accounting Pronouncements In March 2019, the FASB issued ASU 2019-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2014, the FASB issued ASU 2014-15, “ Presentation of Financial Statements - Going Concern (Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: ● ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ● ASU No. 2018-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ● ASU No. 2018-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ● ASU No. 2018-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates ● ASU No. 2018-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients These ASUs became effective for the Company beginning interim period beginning May 1, 2018. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases Leases A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Going Concern Matters
Going Concern Matters | 12 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Matters | NOTE B – GOING CONCERN MATTERS The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has incurred recurring losses and generated negative cash flows from operating activities since inception. As of April 30, 2021, the Company had an accumulated deficit of $64,993,250 and a working capital deficit (total current liabilities exceeded total current assets) of $12,212,156. The Company’s cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses for the next twelve months from the filing date of this report. These factors among others raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The Company’s existence is dependent upon management’s ability to develop profitable operations. Management is devoting substantially all of its efforts to developing its business and raising capital and there can be no assurance that the Company’s efforts will be successful. No assurance can be given that management’s actions will result in profitable operations or the resolution of its liquidity problems. The accompanying consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. In order to improve the Company’s liquidity, the Company’s management is actively pursuing additional equity financing through discussions with investment bankers, private equity groups, and private investors. There can be no assurance that the Company will be successful in its effort to secure additional equity financing. |
Notes Payable and Derivatives
Notes Payable and Derivatives | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Derivatives | NOTE C – NOTES PAYABLE AND DERIVATIVES The Company has outstanding numerous notes payable to various parties. The notes bear interest at rates of 5% - 20% per year and are summarized as follows: Notes Payable April 30, 2021 April 30, 2020 Notes convertible at holder’s option $ 2,522,925 $ 2,590,309 Notes convertible at Company’s option 335,700 75,700 Non-convertible notes payable 1,821,650 2,264,235 Subtotal 4,680,275 4,930,244 Less debt discount - - Total $ 4,680,275 $ 4,930,244 Certain of the notes payable contain variable conversion rates and the conversion features are classified as derivative liabilities. The conversion prices are based on the market price of the Company’s common stock, at discounts of 30% to 48% to market value. Amortization of debt discount for the years ended April 30, 2021 and 2020 was $0 and $8,633, respectively. The Company’s derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company’s common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity’s Own Equity The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2021 and 2020 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows: Significant Assumptions: Risk free interest rate Ranging from 0.16% to 0.20 Expected stock price volatility 253 % Expected dividend payout 0 Expected options life in years Ranging from 1 year to 2 years Changes in derivative liability during the years ended April 30, 2021 and 2020 were: April 30, 2021 2020 Balance, beginning of year $ 2,802,125 $ 3,496,696 Derivative liability reclassified to additional paid in capital (573,397 ) (821,564 ) Derivative financial liability arising on the issue of convertible notes and warrants 715,411 286,205 Fair value adjustments 503,199 (159,212 ) Balance, end of year $ 3,446,738 $ 2,802,125 |
Loans Payable to Related Partie
Loans Payable to Related Parties | 12 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
Loans Payable to Related Parties | NOTE D – LOANS PAYABLE TO RELATED PARTIES As of April 30, 2021, and 2020, aggregated loans payable, without demand and with no interest, to officers and directors were $432,403 and $432,403, respectively. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Equity Transactions | NOTE E EQUITY TRANSACTIONS Common Stock The Company is authorized to issue 750,000,000 shares of common stock, $0.001 par value. On December 30, 2020, Sparta Commercial Services, Inc. (the “Company”) filed with the Secretary of State of the state of Nevada, a Certificate of Amendment to its Articles of Incorporation (the “Amendment”), attached herewith as Exhibit 3.1, and incorporated by reference. The Amendment will be effective as of December 30, 2020. On July 9, 2020, the Board of Directors of the Company declared July 30, 2020 as the effective date for the 1 for 100 reverse stock split (the “Reverse Stock Split”), previously approved by the stockholders of the Company by written consent in accordance with the information contained in the Schedule 14C Information Statement filed with the Securities and Exchange Commission on July 9, 2020. FINRA reviewed and authorized the corporate action changing the effective date to December 30, 2020 (the “Effective Date”). As a result of the Reverse Stock Split, every one hundred shares of outstanding common stock will automatically be converted into one shares of the Company’s common stock immediately prior to the opening of trading on the next business day after the Effective Date. If, as a result of the reverse split, a stockholder is left with a fractional share, that stockholder shall receive one full share in lieu of such fractional share. Immediately after the effectiveness of the reverse split, there will be 7,027,930 shares of the Company’s common stock issued and outstanding. The aggregate number of shares of common stock that the Company is authorized to issue remains the same and was unaffected by the Reverse Stock Split. All outstanding stock options and other contractual rights including the preferred stock entitling the holders of such rights to acquire shares of common stock outstanding at the Effective Date will be appropriately adjusted to give effect to the Reverse Stock Split. The Company had 9,809,877 and 6,270,930 shares (post-split) of common stock issued and outstanding as of April 30, 2021 and 2020, respectively. The Company had 1,214,528 and 847,865 shares of common classified as to be issued at April 30, 2021 and April 30, 2020, respectively. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock with $0.001 par value per share, of which 35,850 shares have been designated as Series A convertible preferred stock with a $100 stated value per share; 1,000 shares have been designated as Series B Preferred Stock with a $10,000 per share liquidation value; 4,200,000 shares have been designated as Series C Preferred Stock with a $10 per share liquidation value, and 2,000,000 shares have been designated as Series D Preferred Stock with a $1 per share liquidation value. As of April 30, 2021, and 2020 the Company had: Preferred stock outstanding shares 2021 2020 Series A 125 125 Series B - - Series C 4,132,268 3,992,269 Series D 1,493,962 1,132,129 Equity Transactions During the year ended April 30, 2021, the company: ● Sold 140,000 Units of Series C convertible preferred stock for $70,000 ● Issued 311,378 Units of Series D convertible preferred stock upon the conversion of accounts payable aggregating $311,378 ● Issued 50,455 Units of Series D convertible preferred stock upon the conversion of $50,455 of the Company’s subsidiary preferred stock ● Pursuant to agreement, issued 250,000 shares of the Company’s Common Stock, valued at $50,000 ● Pursuant to Conversions of Preferred Series D convertible preferred stock, issued 890,540 shares of the Company’s Common Stock, valued at $222,635 ● Pursuant to Conversions of Preferred Series C convertible preferred stock, issued 2,086,848 shares of the Company’s Common Stock, valued at $231,872 ● Pursuant to agreement, issued 3,000,000 shares of common stock valued at $6,000 During the year ended April 30, 2020, the Company: ● Sold 953,000 Units of Series C convertible preferred stock for $476,500 ● Issued 92,000 Units of Series C convertible preferred stock upon the conversion of notes payable and accrued interest aggregating $45,829 ● Issued 222,000 Units of Series D convertible preferred stock upon the conversion of accounts payable aggregating $222,250 ● Issued 330,000 Units of Series D convertible preferred stock upon the conversion of $330,000 of the Company’s subsidiary preferred stock ● Pursuant to agreement, accrued to be issued 3,000,000 shares of common stock valued at $6,000 ● Pursuant to agreement, accrued to be issued 1,000,000 shares of common stock valued at $322,250. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE F – FAIR VALUE MEASUREMENTS The Company follows the guidance established pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs. The table below summarizes the fair values of financial liabilities as of April 30, 2021: Fair Value at Fair Value Measurement Using April 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 3,446,738 - - $ 3,446,738 Fair values of financial liabilities as of April 30, 2019 are as follows: Fair Value at Fair Value Measurement Using April 30, 2020 Level 1 Level 2 Level 3 Derivative liabilities $ 2,802,125 - - $ 2,802,125 The following is a description of the valuation methodologies used for these items: Derivative liabilities The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC Topic 825 “The Fair Value Option for Financial Issuances”. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE G - PROPERTY AND EQUIPMENT Major classes of property and equipment at April 30, 2021 and 2020 consist of the followings: 2021 2020 Computer equipment, software and furniture $ 213,262 $ 213,262 Less: accumulated depreciation (213,262 ) (212,905 ) Net property and equipment $ - $ 357 Depreciation expense related to property and equipment was $0 and $357 for the years ended April 30, 2021 and 2020, respectively. |
Warrants
Warrants | 12 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
Warrants | NOTE H - WARRANTS During the year ended April 30, 2020, the Company, as part of the issuance of 1,044,700 Units of Series C Convertible Preferred Stock issued an aggregate of 156,705,000 warrants to purchase an aggregate of 156,705,000 shares of common stock at $0.005 per share. The warrants were initially valued at $239,485 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 120% to 221%, (3) risk-free interest rate of 0.2% to 2.15%, and (4) expected life of 2 years. As part of the issuance of 552,000 Units of Series D Convertible Preferred Stock, issued an aggregate of 82,800,000 warrants to purchase an aggregate of 82,800,000 shares of common stock at $0.01 per share. The warrants initially valued at $48,178 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 120% to 221%, (3) risk-free interest rate of 0.2% to 2.15%, and (4) expected life of 2 years. The warrants are fully vested. As of December 31, 2019, the Company’s Board of Directors voted to approve unanimously: “…an extension of the exercise period of those certain warrants previously issued in connection with the Corporation’s Series C Preferred Stock and Series D Preferred Stock for an additional 24 months form the original termination date of each such warrant; and that such extension of expiration dates shall apply to any such warrant that had expired as of the date hereof.” During the year ended April 30, 2019, the Company, as part of the issuance of 1,790,400 Units of Series C Convertible Preferred Stock issued an aggregate of 268,560,000 warrants to purchase an aggregate of 268,560,000 shares of common stock at $0.005 per share. The warrants were initially valued at $1,099,534 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 103.1% to 143.7%, (3) risk-free interest rate of 2.34% to 2.86%, and (4) expected life of 2 years. As part of the issuance of 579,880 Units of Series D Convertible Preferred Stock, issued an aggregate of 86,982,000 warrants to purchase an aggregate of 86,982,000 shares of common stock at $0.01 per share. The warrants initially valued at $294,141 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 103.1% to 143.7%, (3) risk-free interest rate of 2.34% to 2.86%, and (4) expected life of 2 years. The warrants are fully vested. The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company. Warrants Outstanding Warrants Exercisable Exercise Prices Number Weighted Weighted Number Weighted $ 0.005 600,757,500 2.41 $ 0.005 600,757,500 $ 0.005 $ 0.01 169,815,000 2.72 $ 0.01 169,815,000 $ 0.01 Transactions involving stock warrants issued to non-employees are summarized as follows: Number of Weighted Outstanding at April 30, 2018 175,532,500 $ 0.0051 Granted 355,542,000 0.0062 Exercised - - Canceled or expired Outstanding at April 30, 2019 531,074,500 0.0059 Granted 239,538,000 0.0067 Exercised - - Canceled or expired (40,000 ) 0.65 Outstanding at April 30, 2020 770,572,500, $ 0.0061 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE I - INCOME TAXES At April 30, 2021, the Company has available for federal income tax purposes a net operating loss carry forward of approximately $64,993.000, that may be used to offset future taxable income and expiring through the tax year 2036, subject to certain limitation pursuant to Internal Revenue Code Section 382. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that, the benefits will not be realized. A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Years Ended April 30, 2021 2020 Federal statutory income tax rate (21.0 )% (21.0 )% State income taxes, net of federal benefit (7.1 ) (7.1 ) Permanent differences 6.7 6.7 Change in valuation allowance 21.4 21.4 Provision for income taxes 0.0 % 0.0 % Components of deferred tax assets as of April 30, 2021 and estimated 2020 are as follows: April 30, 2021 2020 Noncurrent: Net operating loss carry forward $ 13,757,261 $ 13,167,491 Valuation allowance (13,757,261 ) (13,167,491 ) Net deferred tax asset $ - $ - The valuation allowance increased by $589,770 and $165,316 during the years ended April 30, 2021 and 2020, respectively. The 2019 allowance has been adjusted for lower federal corporate income tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE J - COMMITMENTS AND CONTINGENCIES Operating Lease Commitments Our executive offices are located in New York, NY. We have an agreement for use of office space at this location under a sub-lease which expired on July 31, 2018 and continues on a month-to-month basis thereafter. The monthly base rent is $5,100. Rent expense was $70,200 and $62,186 for the years ended April 30, 2021 and 2020, respectively. Employment and Consulting Agreements The Company does not have employment agreements with any of its non-executive employees. The Company has consulting agreements with outside contractors to provide marketing and financial advisory services. The agreements are generally for a term of 12 months from inception and renewable automatically from year to year unless either the Company or consultant terminates such engagement by written notice. The Company entered into five year employment agreements with its CEO, Anthony L Havens and Vice President of Operations, Sandra L Ahman. As part of their employment agreements, Mr. Havens received five year options to purchase 37,625,574 shares of the Company’s common stock at $0.00308 per share. The options vest in three equal tranches over three years. Ms. Ahman received five year options to purchase 12,541,858 shares of the Company’s common stock at $0.00308 per share. The options vest in three equal tranches over three years. Litigation The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. Sparta can make no representations about the potential outcome of such proceedings. As of April 30, 2020, we were not a party to any material pending legal proceeding except as stated below. From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. The Company has received notices dated April 1, 2016, May 13, 2016 and July 22, 2016 from two lenders claiming defaults relating to conversion requests of $8,365 principal and $643 interest and $5,000 principal, with regard to notes in the total amounts of $55,125 and $27,500, respectively, which the Company has refused to process and believes it has defenses in that regard. The Company believes these claims are contingent, unliquidated and disputed. There can be no assurance that the Company would prevail should litigation with regard to any of these requests occur. These liabilities have been recorded in the unaudited condensed consolidated financial statements. On September 22, 2016, a motion for summary judgment in lieu of complaint was filed in the Supreme Court of The State of New York County of Kings, against the Company by a lender for the amount of $102,170.82 in principal and interest; accrued and unpaid interest thereupon in the amount from the date of filing to entry of judgment herein; lender’s reasonable attorney’s fees, costs, and expenses; and any such other relief as the Court deems just and proper. Plaintiff’s motion for summary judgment in lieu of complaint was denied on May 5, 2017 . On October 26, 2018, a lender commenced an action in the Supreme Court of the State of New York in New York County alleging damages from unpaid principal and interest, attorney’s fees, costs, and expenses arising from a promissory note dated February 26, 2015 in the amount of $50,000.00. The case is presently in the discovery phase of the litigation and there is a motion for summary judgment returnable on September 15, 2021. The Company believes the claim is contingent, unliquidated and disputed. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE K – SUBSEQUENT EVENTS Subsequent to April 30, 2021 the Company: |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Business | Business Sparta Commercial Services, Inc. (“Sparta,” “we,” “us,” or the “Company”) is a Nevada corporation serving four markets. Sparta is a technology company that develops, markets and manages business websites and mobile applications (mobile apps) for smartphones and tablets. The Company also owns and manages websites which sell on-demand motorcycle, recreational vehicle, power-sport vehicle and truck title history reports for consumers, retail dealers, auction houses, insurance companies and banks/finance companies. Lastly, since 2007, Sparta has administered leasing programs nationwide for local and/or state agencies seeking to finance municipal vehicles and equipment. The Company also introduced a new business line in the rapidly expanding Hemp-CBD (cannabidiol) market. In 2016, the Company changed the name of its majority-owned subsidiary Specialty Reports, Inc., to iMobile Solutions, Inc. The new name reflects the Company’s strategic evolution and focus on the growing mobile application market domestically. Sparta’s mobile application (mobile app) offerings have broadened our base beyond our original base of vehicle dealers to include a wide range of businesses including, but not limited to, agriculture dealerships, racetracks, private clubs, country clubs, restaurants and grocery stores. We also offer a private label version of our mobile app framework to enable other businesses to offer custom apps to their customers. The Company also designs, launches, maintains, and hosts websites for businesses. We provide specific, tailored action plans for our clients’ websites that include services such as eCommerce, CRM (Customer Relationship Management) development and integration, ordering system creation and integration, SEO (search engine optimization), social media marketing, and online reviews to improve their presence online. In addition, we offer text messaging services which are vital for businesses’ marketing, retention and loyalty strategies. Our text messaging platform allows our clients to easily manage, schedule, and analyze text message performance. The Company’s vehicle history reports include Cyclechex (Motorcycle History Reports at www.cyclechex.com www.rvchecks.com www.carvinreport.com www.truckchex.com Sparta also administers a Municipal Leasing Program for local and/or state agencies throughout the country who are seeking a better and more economical way to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment. We are continuing to expand our roster of equipment manufacturers and the types of equipment we lease. New World Health Brands, Inc. (NWHB) was formed in April 2019 as a subsidiary and new business line of Sparta Commercial Services, Inc. While anticipating, and with the passing of the 2018 Farm Bill, which resulted in the removal of hemp (CBD) from Schedule 1 of the Controlled Substances Act. Sparta’s management recognized a substantial potential business opportunity in the rapidly expanding Industrial Hemp-CBD (Cannabinol) market in the United States. During 2019-2020, management sourced, developed and lab tested 5 CBD product categories totaling 31 products, procured product packaging, labeling, implemented fulfillment and launched an on-line B2C website, www.newworldhealthcbd.com. Sparta’s offices are located at 555 Fifth Avenue, 14 th www.spartacommercial.com We identify our ongoing information technology business in two reporting groups: mobile apps/websites and vehicle history reports, both of which operate under our wholly owned subsidiary, iMobile Solutions, Inc. The latest product offering, via www.newworldhealthcbd.com, offering a full array of hemp-derived CBD products, is contained in our subsidiary, New World Health Brands, Inc. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority owned subsidiary. All material intercompany transactions and balances have been eliminated in consolidation. The third party ownership of the Company’s subsidiary is accounted for as noncontrolling interest in the consolidated financial statements. Changes in the noncontrolling interest are reported in the statement of stockholders’ deficit. |
Estimates | Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition During the first quarter of 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions. Revenues from mobile app products and New World Health Brands products are generally recognized upon delivery. Revenues from History Reports are generally recognized upon delivery / download. Prepayments received from customers before delivery (if any) are recognized as deferred revenue and recognized upon delivery. The Company records deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The following table presents our revenues disaggregated by revenue source: Year Ended April 30, 2021 2020 Information Technology $ 245,675 $ 275,817 New World Health Brands 14,056 45,030 $ 259,731 $ 320,847 |
Cash Equivalents | Cash Equivalents For the purpose of the accompanying financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. |
Website Development Costs | Website Development Costs The Company recognizes website development costs in accordance with ASC 350-50, “Accounting for Website Development Costs.” |
Fair Value Measurements | Fair Value Measurements The Company adopted ASC 820, “Fair Value Measurements .” ● Level 1 — ● Level 2 — ● Level 3 — This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not always be available. |
Income Taxes | Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. |
Stock Based Compensation | Stock Based Compensation We account for our stock based compensation under ASC 718 “ Compensation – Stock Compensation We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. |
Inventories | Inventories The Company’s inventories represent finished goods, consist of products available for sale and are accounted for using the first-in, first-out (FIFO) method and valued at the lower of cost or net realizable value. Inventory consists of finished goods for the Company’s New World Health Brands business. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives. Depreciation is calculated using the straight-line method over the estimated useful lives. Estimated useful lives of major depreciable assets are as follows: Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. |
Net Loss Per Share | Net Loss Per Share The Company uses ASC 260-10, “ Earnings Per Share, At April 30, 2021 and 2020, 42 million potential shares (including 847,866 shares to be issued included on the balance sheet) and 10,397,258 potential shares (including 807,866 shares to be issued included on the balance sheet), respectively, were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. |
Derivative Liabilities | Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of April 30, 2021 and 2020, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815. ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described. |
Convertible Instruments | Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “ Accounting for Derivative Instruments and Hedging Activities The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “ Accounting for Convertible Securities with Beneficial Conversion Features |
Reclassifications | Reclassifications Certain reclassifications have been made to conform to prior periods’ data to the current presentation. These reclassifications had no effect on reported losses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2019, the FASB issued ASU 2019-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2014, the FASB issued ASU 2014-15, “ Presentation of Financial Statements - Going Concern (Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: ● ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ● ASU No. 2018-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ● ASU No. 2018-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ● ASU No. 2018-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates ● ASU No. 2018-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients These ASUs became effective for the Company beginning interim period beginning May 1, 2018. Adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases Leases A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, we have not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation Revenue | The following table presents our revenues disaggregated by revenue source: Year Ended April 30, 2021 2020 Information Technology $ 245,675 $ 275,817 New World Health Brands 14,056 45,030 $ 259,731 $ 320,847 |
Schedule of Estimated Useful Life of Property and Equipment | Estimated useful lives of major depreciable assets are as follows: Leasehold improvements 3 years Furniture and fixtures 7 years Website costs 3 years Computer Equipment 5 years |
Notes Payable and Derivatives (
Notes Payable and Derivatives (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes Payable April 30, 2021 April 30, 2020 Notes convertible at holder’s option $ 2,522,925 $ 2,590,309 Notes convertible at Company’s option 335,700 75,700 Non-convertible notes payable 1,821,650 2,264,235 Subtotal 4,680,275 4,930,244 Less debt discount - - Total $ 4,680,275 $ 4,930,244 |
Schedule of Derivative Liabilities Assumptions Using Black-Scholes Option | The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2021 and 2020 was calculated with the following average assumptions, using a Black-Scholes option-pricing model are as follows: Significant Assumptions: Risk free interest rate Ranging from 0.16% to 0.20 Expected stock price volatility 253 % Expected dividend payout 0 Expected options life in years Ranging from 1 year to 2 years |
Schedule of Changes in Derivative Liabilities | Changes in derivative liability during the years ended April 30, 2021 and 2020 were: April 30, 2021 2020 Balance, beginning of year $ 2,802,125 $ 3,496,696 Derivative liability reclassified to additional paid in capital (573,397 ) (821,564 ) Derivative financial liability arising on the issue of convertible notes and warrants 715,411 286,205 Fair value adjustments 503,199 (159,212 ) Balance, end of year $ 3,446,738 $ 2,802,125 |
Equity Transactions (Tables)
Equity Transactions (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of Preferred Stock Outstanding Shares | As of April 30, 2021, and 2020 the Company had: Preferred stock outstanding shares 2021 2020 Series A 125 125 Series B - - Series C 4,132,268 3,992,269 Series D 1,493,962 1,132,129 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Liabilities | The table below summarizes the fair values of financial liabilities as of April 30, 2021: Fair Value at Fair Value Measurement Using April 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 3,446,738 - - $ 3,446,738 Fair values of financial liabilities as of April 30, 2019 are as follows: Fair Value at Fair Value Measurement Using April 30, 2020 Level 1 Level 2 Level 3 Derivative liabilities $ 2,802,125 - - $ 2,802,125 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Major classes of property and equipment at April 30, 2021 and 2020 consist of the followings: 2021 2020 Computer equipment, software and furniture $ 213,262 $ 213,262 Less: accumulated depreciation (213,262 ) (212,905 ) Net property and equipment $ - $ 357 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Notes to Financial Statements | |
Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range | The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company. Warrants Outstanding Warrants Exercisable Exercise Prices Number Weighted Weighted Number Weighted $ 0.005 600,757,500 2.41 $ 0.005 600,757,500 $ 0.005 $ 0.01 169,815,000 2.72 $ 0.01 169,815,000 $ 0.01 |
Schedule of Warrants Activity | Transactions involving stock warrants issued to non-employees are summarized as follows: Number of Weighted Outstanding at April 30, 2018 175,532,500 $ 0.0051 Granted 355,542,000 0.0062 Exercised - - Canceled or expired Outstanding at April 30, 2019 531,074,500 0.0059 Granted 239,538,000 0.0067 Exercised - - Canceled or expired (40,000 ) 0.65 Outstanding at April 30, 2020 770,572,500, $ 0.0061 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Years Ended April 30, 2021 2020 Federal statutory income tax rate (21.0 )% (21.0 )% State income taxes, net of federal benefit (7.1 ) (7.1 ) Permanent differences 6.7 6.7 Change in valuation allowance 21.4 21.4 Provision for income taxes 0.0 % 0.0 % |
Schedule of Deferred Tax Assets | Components of deferred tax assets as of April 30, 2021 and estimated 2020 are as follows: April 30, 2021 2020 Noncurrent: Net operating loss carry forward $ 13,757,261 $ 13,167,491 Valuation allowance (13,757,261 ) (13,167,491 ) Net deferred tax asset $ - $ - |
Summary of Accounting Policie_3
Summary of Accounting Policies (Details Narrative) - shares | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Antidilutive securities excluded from computation of earnings per share, amount | 42,000,000 | 10,397,258 |
Shares to be Issued [Member] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 847,866 | 807,866 |
Summary of Accounting Policie_4
Summary of Accounting Policies - Schedule of Disaggregation Revenue (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenues | $ 259,731 | $ 320,847 |
Information Technology [Member] | ||
Revenues | 245,675 | 275,817 |
New World Health Brands [Member] | ||
Revenues | $ 14,056 | $ 45,030 |
Summary of Accounting Policie_5
Summary of Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Details) | 12 Months Ended |
Apr. 30, 2021 | |
Leasehold Improvements [Member] | |
Property and equipment, estimated useful life | 3 years |
Furniture and Fixtures [Member] | |
Property and equipment, estimated useful life | 7 years |
Website Costs [Member] | |
Property and equipment, estimated useful life | 3 years |
Computer Equipment [Member] | |
Property and equipment, estimated useful life | 5 years |
Going Concern Matters (Details
Going Concern Matters (Details Narrative) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (64,993,250) | $ (62,702,339) |
Working capital deficit | $ 12,212,156 |
Notes Payable and Derivatives_2
Notes Payable and Derivatives (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Amortization of debt discount | $ 8,633 | |
Minimum [Member] | ||
Debt instrument, interest rate | 5.00% | |
Common stock discount rate, percentage | 30.00% | |
Maximum [Member] | ||
Debt instrument, interest rate | 20.00% | |
Common stock discount rate, percentage | 48.00% |
Notes Payable and Derivatives -
Notes Payable and Derivatives - Schedule of Notes Payable (Details) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Subtotal | $ 4,680,275 | $ 4,930,244 |
Less Debt discount | ||
Total | 4,680,275 | 4,930,244 |
Notes Convertible at Holder's Option [Member] | ||
Subtotal | 2,522,925 | 2,590,309 |
Notes Convertible at Company's Option [Member] | ||
Subtotal | 335,700 | 75,700 |
Non-Convertible Notes Payable [Member] | ||
Subtotal | $ 1,821,650 | $ 2,264,235 |
Notes Payable and Derivatives_3
Notes Payable and Derivatives - Schedule of Derivative Liabilities Assumptions Using Black-Scholes Option (Details) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Risk Free Interest Rate [Member] | Minimum [Member] | ||
Derivative liability, measurement input, percentage | .16 | 0.16 |
Risk Free Interest Rate [Member] | Maximum [Member] | ||
Derivative liability, measurement input, percentage | .20 | 0.20 |
Expected Stock Price Volatility [Member] | ||
Derivative liability, measurement input, percentage | 253 | 253 |
Expected Dividend Payout [Member] | ||
Derivative liability, measurement input, percentage | 0 | 0 |
Expected Life in Years [Member] | Minimum [Member] | ||
Derivative liability, measurement input, expected life | 1 year | 1 year |
Expected Life in Years [Member] | Maximum [Member] | ||
Derivative liability, measurement input, expected life | 2 years | 2 years |
Notes Payable and Derivatives_4
Notes Payable and Derivatives - Schedule of Changes in Derivative Liabilities (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Balance, beginning of year | $ 2,802,125 | $ 3,496,696 |
Derivative liability reclassified to additional paid in capital | (573,397) | (821,564) |
Derivative financial liability arising on the issue of convertible notes and warrants | 715,411 | 286,205 |
Fair value adjustments | 503,199 | (159,212) |
Balance, end of year | $ 3,446,738 | $ 2,802,125 |
Loans Payable to Related Part_2
Loans Payable to Related Parties (Details Narrative) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Related Party Transactions [Abstract] | ||
Loans payable to officers and directors | $ 432,403 | $ 432,403 |
Equity Transactions (Details Na
Equity Transactions (Details Narrative) - USD ($) | Jul. 09, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Reverse stock split description | 1 for 100 reverse stock split | |||
Common stock, shares issued | 9,809,877 | 9,433,282 | 627,092,904 | |
Common stock, shares outstanding | 9,809,877 | 9,433,282 | 627,092,904 | |
Common stock to be issued | 1,214,528 | 8,478,651 | 80,786,511 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Number of common stock, shares issued | 3,000,000 | 1,000,000 | ||
Number of common stock, shares issued, value | $ 6,000 | $ 322,250 | ||
Common Stock [Member] | ||||
Number of common stock, shares issued | 250,000 | 3,000,000 | ||
Number of common stock, shares issued, value | $ 50,000 | $ 6,000 | ||
Series A Convertible Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 35,850 | 35,850 | ||
Preferred stock, par value | $ 100 | $ 100 | ||
Preferred stock, shares issued | 125 | 125 | ||
Series B Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 1,000 | |||
Preferred stock, liquidation preference | $ 10,000 | |||
Series C Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 4,200,000 | |||
Preferred stock, liquidation preference | $ 10 | |||
Number of stocks sold during period | 140,000 | 953,000 | ||
Sale of stock | $ 70,000 | $ 476,500 | ||
Shares issued on conversion of debt, shares | 92,000 | |||
Shares issued on conversion of debt, value | $ 92 | |||
Number of common stock, shares issued | 2,086,848 | |||
Number of common stock, shares issued, value | $ 231,872 | |||
Series D Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 2,000,000 | |||
Preferred stock, liquidation preference | $ 1 | |||
Shares issued on conversion of debt, shares | 330,000 | |||
Shares issued on conversion of debt, value | $ 330,000 | |||
Number of common stock, shares issued | 890,540 | |||
Number of common stock, shares issued, value | $ 222,635 | |||
Series D Preferred Stock [Member] | Accounts Payable [Member] | ||||
Shares issued on conversion of debt, shares | 222,000 | |||
Shares issued on conversion of debt, value | $ 222,250 | |||
Series D Preferred Stock One [Member] | ||||
Shares issued on conversion of debt, shares | 50,455 | |||
Shares issued on conversion of debt, value | $ 50,455 |
Equity Transactions - Schedule
Equity Transactions - Schedule of Preferred Stock Outstanding Shares (Details) - shares | Apr. 30, 2021 | Apr. 30, 2020 |
Series A Preferred Stock [Member] | ||
Preferred stock outstanding shares | 125 | |
Series B Preferred Stock [Member] | ||
Preferred stock outstanding shares | 125 | |
Series C Preferred Stock [Member] | ||
Preferred stock outstanding shares | 4,132,268 | 3,992,269 |
Series D Preferred Stock [Member] | ||
Preferred stock outstanding shares | 1,493,962 | 1,132,129 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Liabilities (Details) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Derivative liabilities | $ 3,446,738 | $ 2,802,125 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Derivative liabilities | $ 3,446,738 | $ 2,802,125 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and expense | $ 357 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
Computer equipment, software and furniture | $ 213,262 | $ 213,262 |
Less: accumulated depreciation | (213,262) | (212,905) |
Net property and equipment |
Warrants (Details Narrative)
Warrants (Details Narrative) - Warrant [Member] | Apr. 30, 2020USD ($)$ / sharesshares | Apr. 30, 2019USD ($)$ / sharesshares |
Number of preferred stock | 1,044,700 | |
Warrants to purchase | 156,705,000 | |
Fair value of warrants | $ | $ 239,485 | |
Warrants exercise price | $ / shares | $ 0.005 | |
Warrants term | 2 years | |
Series D Convertible Preferred Stock [Member] | ||
Number of preferred stock | 552,000 | 579,880 |
Warrants to purchase | 82,800,000 | 86,982,000 |
Fair value of warrants | $ | $ 48,178 | $ 294,141 |
Warrants exercise price | $ / shares | $ 0.01 | |
Warrants term | 2 years | 2 years |
Series C Convertible Preferred Stock [Member] | ||
Number of preferred stock | 1,790,400 | |
Warrants to purchase | 268,560,000 | |
Fair value of warrants | $ | $ 1,099,534 | |
Warrants term | 2 years | |
Minimum [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants exercise price | $ / shares | $ 0.005 | |
Maximum [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants exercise price | $ / shares | $ 0.005 | |
Expected Dividend Payout [Member] | ||
Warrants measurement input | 0 | |
Expected Dividend Payout [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants measurement input | 0 | 0 |
Expected Dividend Payout [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants measurement input | 0 | |
Expected Stock Price Volatility [Member] | Minimum [Member] | ||
Warrants measurement input | 120 | |
Expected Stock Price Volatility [Member] | Minimum [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants measurement input | 120 | 103.1 |
Expected Stock Price Volatility [Member] | Minimum [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants measurement input | 103.1 | |
Expected Stock Price Volatility [Member] | Maximum [Member] | ||
Warrants measurement input | 221 | |
Expected Stock Price Volatility [Member] | Maximum [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants measurement input | 221 | 143.7 |
Expected Stock Price Volatility [Member] | Maximum [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants measurement input | 143.7 | |
Risk Free Interest Rate [Member] | Minimum [Member] | ||
Warrants measurement input | 0.20 | |
Risk Free Interest Rate [Member] | Minimum [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants measurement input | 0.2 | 2.34 |
Risk Free Interest Rate [Member] | Minimum [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants measurement input | 2.34 | |
Risk Free Interest Rate [Member] | Maximum [Member] | ||
Warrants measurement input | 2.15 | |
Risk Free Interest Rate [Member] | Maximum [Member] | Series D Convertible Preferred Stock [Member] | ||
Warrants measurement input | 2.15 | 2.86 |
Risk Free Interest Rate [Member] | Maximum [Member] | Series C Convertible Preferred Stock [Member] | ||
Warrants measurement input | 2.86 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range (Details) | 12 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Warrant One [Member] | |
Warrants Outstanding, Exercise price | $ 0.005 |
Warrants Outstanding, Number | shares | 600,757,500 |
Warrants Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 28 days |
Warrants Outstanding, Weighted Average Exercise Price | $ 0.005 |
Warrants Exercisable, Number Exercisable | shares | 600,757,500 |
Warrants Exercisable, Weighted Average Exercise Price | $ 0.005 |
Warrant Two [Member] | |
Warrants Outstanding, Exercise price | $ 0.01 |
Warrants Outstanding, Number | shares | 169,815,000 |
Warrants Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 8 months 19 days |
Warrants Outstanding, Weighted Average Exercise Price | $ 0.01 |
Warrants Exercisable, Number Exercisable | shares | 169,815,000 |
Warrants Exercisable, Weighted Average Exercise Price | $ 0.01 |
Warrants - Schedule of Warran_2
Warrants - Schedule of Warrants Activity (Details) - Warrant [Member] - Non-Employees [Member] - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Number of Shares, Warrants Outstanding, Beginning balance | 531,074,500 | 175,532,500 |
Number of Shares, Warrants Grants | 239,538,000 | 355,542,000 |
Number of Shares, Warrants Exercised | ||
Number of Shares, Warrants Canceled or expired | (40,000) | |
Number of Shares, Warrants Outstanding, Ending balance | 770,572,500 | 531,074,500 |
Weighted Average Exercise Price Per Share, Warrants outstanding, Beginning balance | $ 0.0059 | $ 0.0051 |
Weighted Average Exercise Price Per Share, Warrants Grants | 0.0067 | 0.0062 |
Weighted Average Exercise Price Per Share, Warrants Exercised | ||
Weighted Average Exercise Price Per Share, Warrants Canceled or expired | 0.65 | |
Weighted Average Exercise Price Per Share, Warrants outstanding, Ending balance | $ 0.0061 | $ 0.0059 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Operating loss carry forwards, net | $ 64,993 | |
Operating loss carryforwards, expiration date | 2036 | |
Increase in valuation allowance | $ 589,770 | $ 165,316 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Rate (Details) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | (21.00%) | (21.00%) |
State income taxes, net of federal benefit | (7.10%) | (7.10%) |
Permanent differences | 6.70% | 6.70% |
Change in valuation allowance | 21.40% | 21.40% |
Provision for income taxes | 0.00% | 0.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 13,757,261 | $ 13,167,491 |
Valuation allowance | (13,757,261) | (13,167,491) |
Net deferred tax asset |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Sep. 22, 2016 | Apr. 30, 2021 | Apr. 30, 2020 | Feb. 26, 2015 |
Rent expense | $ 70,200 | $ 62,186 | ||
Number of shares issued during the period | 3,000,000 | 1,000,000 | ||
Promissory Note [Member] | ||||
Aggregate note amount | $ 50,000 | |||
New York County Kings [Member] | ||||
Loss on contingent | $ 102,171 | |||
Lender One [Member] | ||||
Debt principal amount | $ 8,365 | |||
Debt interest | 643 | |||
Aggregate note amount | 55,125 | |||
Lender Two [Member] | ||||
Debt principal amount | 5,000 | |||
Aggregate note amount | $ 27,500 | |||
Employment Agreement [Member] | Mr. Havens [Member] | ||||
Debt instrument, term | 5 years | |||
Number of shares issued during the period | 37,625,574 | |||
Share price | $ 0.00308 | |||
Shares vested term | 3 years | |||
Employment Agreement [Member] | Ms. Ahman [Member] | ||||
Debt instrument, term | 5 years | |||
Number of shares issued during the period | 12,541,858 | |||
Share price | $ 0.00308 | |||
Shares vested term | 3 years | |||
Executive Office Space [Member] | ||||
Lease expiring date | Oct. 31, 2019 | |||
Rent expense | $ 5,100 |