EARNINGS PER SHARE

12 Months Ended

Apr. 30, 2025

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 11 – EARNINGS PER SHARE

The Company computes earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series B Preferred Shares are considered participating securities as preferred shareholders are entitled to participate with common stockholders on an as-converted basis in any distributions of assets by the Company under the terms of the Certificate of Designations. Under the two-class method, there is no change in the weighted average shares outstanding used between the basic and diluted earnings per share calculations as the Series B Preferred Shares represent the only dilutive share equivalents during the years ended April 30, 2025 and 2024. During the years ended April 30, 2025 and 2024, the Company incurred income (losses) attributable to common shareholders. Accordingly, the effects of any common stock equivalent would be anti-dilutive during the period and thus are not included in the calculation of diluted weighted average number of shares outstanding.

The following table illustrates the computation of basic and diluted earnings (loss) per share:

	Years Ended April 30,
	2025			2024
Earnings per share
Net income	$	30,656,050		$	333,763
Less: Accretion of discounts to redemption of Series B convertible preferred stock		(3,193,404	)		(15,053,521	)
Less: Series B convertible preferred stock dividends		(1,129,759	)		(2,517,645	)
Less: Allocation of undistributed income to Series B convertible preferred stock		(2,970,780	)		–
Undistributed income (loss) available to common stockholders	$	23,362,107		$	(17,237,403	)
Weighted average shares outstanding used in basic earnings per share		7,329,596			9,581,059
Net income (loss) per share basic and diluted	$	3.19		$	(1.80	)

The table below sets forth the potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive:

	Years Ended April 30,
	2025		2024
Excluded options		1,169,961		925,164
Excluded warrants		18,570,847		18,570,847
Series B convertible preferred stock		–		3,765,105
Total excluded options and warrants		19,740,808		23,261,116

Diluted earnings per share were calculated under both the if-converted and the two-class methods to determine the most dilutive amount for the common stock. The Company applied the treasury stock two-class method which assumes the securities remain in their current non-exercised or converted form and therefore, deemed anti-dilutive.