0001161697-18-000488.txt : 20181016 0001161697-18-000488.hdr.sgml : 20181016 20181016160722 ACCESSION NUMBER: 0001161697-18-000488 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 52 CONFORMED PERIOD OF REPORT: 20180731 FILED AS OF DATE: 20181016 DATE AS OF CHANGE: 20181016 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACK CACTUS GLOBAL, INC. CENTRAL INDEX KEY: 0001575345 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-NURSING & PERSONAL CARE FACILITIES [8050] IRS NUMBER: 462500923 STATE OF INCORPORATION: FL FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55880 FILM NUMBER: 181124534 BUSINESS ADDRESS: STREET 1: 8275 S. EASTERN AVENUE STREET 2: SUITE 200 CITY: LAS VEGAS STATE: NV ZIP: 89123 BUSINESS PHONE: 702-724-2643 MAIL ADDRESS: STREET 1: 8275 S. EASTERN AVENUE STREET 2: SUITE 200 CITY: LAS VEGAS STATE: NV ZIP: 89123 FORMER COMPANY: FORMER CONFORMED NAME: ENVOY GROUP CORP. DATE OF NAME CHANGE: 20130425 10-Q 1 form_10-q.htm FORM 10-Q QUARTERLY REPORT FOR 07-31-2018

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: July 31, 2018

or

 

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________to _____________

 

Commission File Number: 000-55880

 

BLACK CACTUS GLOBAL, INC.

(Exact name of registrant as specified in its charter)

 

Florida

46-2500923

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

8275 S. Eastern Avenue, Suite 200

Las Vegas, Nevada 89123

(Address of principal executive offices, Zip Code)

 

(702) 724-2643

(Registrant’s telephone number, including area code)

 

          N/A          

(Former Name, Former Address and Former Fiscal Year if Changed Since Last Report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]   No [_]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]   No [_]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” or “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer

[_]

Accelerated filer

[_]

 

Non-accelerated filer

[_]

Smaller reporting company

[_]

 

(Do not check is smaller reporting company)

Emerging growth company

[X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [_]   No [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: We had a total of 166,073,296 shares of common stock issued and 116,073,296 shares of common stock outstanding at October 9, 2018.




TABLE OF CONTENTS

 

FORM 10-Q

 

PART I – FINANCIAL INFORMATION

 

Item 1.

Financial Statements

4

 

 

 

 

Balance Sheets as of July 31, 2018 and April 30, 2018

4

 

 

 

 

Statements of Operations and Comprehensive Loss for the Three Months Ended July 31, 2018 and 2017

5

 

 

 

 

Statements of Cash Flows for the Three Months Ended July 31, 2018 and 2017

6

 

 

 

 

Notes to Financial Statements

7

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

17

 

 

 

Item 4.

Controls and Procedures

17

 

PART II – OTHER INFORMATION

 

Item 1.

Legal Proceedings

18

 

 

 

Item 2.

Unregistered Sales of Equity Securities

18

 

 

 

Item 3.

Defaults Upon Senior Securities

18

 

 

 

Item 4.

Mine Safety Disclosures

18

 

 

 

Item 5.

Other Information

18

 

 

 

Item 6.

Exhibits

18

 

 

 

SIGNATURES

19


- 2 -



FORWARD-LOOKING STATEMENTS

 

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and Section 27A of the Securities Act of 1933, as amended. Any statements contained in this report that are not statements of historical fact may be forward-looking statements. When we use the words “intends,” “estimates,” “predicts,” “potential,” “continues,” “anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will” or the negative of these terms or other comparable terminology, we are identifying forward-looking statements. Forward-looking statements involve risks and uncertainties, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. These factors include our; research and development activities, distributor channel; compliance with regulatory impositions; and our capital needs. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

 

Except as may be required by applicable law, we do not undertake or intend to update or revise our forward-looking statements, and we assume no obligation to update any forward-looking statements contained in this report as a result of new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should carefully review and consider the various disclosures we make in this report and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks, uncertainties and other factors that may affect our business.

 

All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law. When used in this quarterly report on Form 10-Q, the terms “Black Cactus”, “Company”, “we”, “our”, and “us” refer to Black Cactus Global, Inc.

 


- 3 -



BLACK CACTUS GLOBAL, INC.

BALANCE SHEETS

(Expressed in U.S. Dollars)


 

 

July 31,

 

April 30,

 

 

 

2018

 

2018

 

 

 

(Unaudited)

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,751

 

$

252

 

Due from related parties (Note 7)

 

 

169,729

 

 

327,541

 

Prepaid expenses and other assets (Note 6)

 

 

74,583

 

 

164,020

 

TOTAL ASSETS

 

$

286,063

 

$

491,813

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

312,139

 

$

304,737

 

Amount payable for BitReturn (Note 10)

 

 

350,000

 

 

350,000

 

Convertible debentures (Note 9)

 

 

189,968

 

 

44,791

 

Loans payable (Note 8)

 

 

64,076

 

 

208,225

 

Total Liabilities

 

 

916,183

 

 

907,753

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 10,000,000 shares authorized, of which
10,000 shares designated as Series A, no shares issued and outstanding (Note 12)

 

 

 

 

 

Common stock, $0.0001 par value; 490,000,000 shares authorized;
166,073,296 and 166,673,296 shares issued and 116,073,296 and 113,473,296 shares outstanding as of July 31, 2018 and April 30, 2018, respectively (Note 12)

 

 

11,607

 

 

11,347

 

Common stock in treasury, $0.0001 par value; 50,000,000 and 53,200,000 shares as of July 31, 2018 and April 30, 2017, respectively (Note 12)

 

 

1

 

 

1

 

Shares issuable

 

 

420,000

 

 

420,000

 

Additional paid-in capital

 

 

5,826,236

 

 

5,343,588

 

Accumulated deficit

 

 

(6,887,964

)

 

(6,190,876

)

Total Stockholders’ Deficit

 

 

(630,120

)

 

(415,940

)

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

286,063

 

$

491,813

 


Going Concern (Note 2)

Commitments (Note 11)


The accompanying notes are an integral part of these unaudited financial statements.


- 4 -



BLACK CACTUS GLOBAL, INC.

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. Dollars)

(Unaudited)


 

 

For the Three Months Ended
July 31,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Consulting (Note 11)

 

$

106,733

 

$

424,997

 

General and administrative

 

 

123,448

 

 

12,369

 

Investor relations

 

 

26,750

 

 

 

Professional fees

 

 

106,470

 

 

27,394

 

Product development and website costs (Note 10)

 

 

 

 

2,255,187

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

$

(363,401

)

$

(2,719,947

)

 

 

 

 

 

 

 

 

Accretion of discounts on convertible debentures (Note 9)

 

 

(110,085

)

 

 

Loss on settlement of debt (Note 8)

 

 

(201,500

)

 

 

Interest expense

 

 

(22,102

)

 

 

 

 

 

 

 

 

 

 

NET LOSS AND COMPREHENSIVE LOSS

 

$

(697,088

)

$

(2,719,947

)

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE,
BASIC AND DILUTED

 

$

(0.01

)

$

(0.03

)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING,
BASIC AND DILUTED

 

 

115,395,035

 

 

88,502,070

 


The accompanying notes are an integral part of these unaudited financial statements.


- 5 -



BLACK CACTUS GLOBAL, INC.

STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Unaudited)


 

 

For the Three Months Ended
July 31,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net loss

 

$

(697,088

)

$

(2,719,947

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Accretion of loan discounts

 

 

851

 

 

1,021

 

Accretion of convertible debt discount

 

 

110,085

 

 

 

Issuance of common stock for BitReturn (Note 10)

 

 

 

 

1,900,000

 

Issuance of common shares for services

 

 

 

 

420,833

 

Loss on settlement of debt

 

 

201,500

 

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Prepaid expenses

 

 

89,437

 

 

(1,809

)

Accounts payable and accrued liabilities

 

 

13,902

 

 

14,529

 

Amount payable for BitReturn

 

 

 

 

350,000

 

 

 

 

 

 

 

 

 

Net Cash Used in Operating Activities

 

 

(281,313

)

 

(35,373

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of equipment (Note 5)

 

 

 

 

(364,590

)

 

 

 

 

 

 

 

 

Net Cash Used in Investing Activities

 

 

 

 

(364,590

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advances from related party, net of repayments

 

 

157,289

 

 

27,847

 

Proceeds from issuance of convertible debt, net of debt financing costs

 

 

180,000

 

 

 

Proceeds from (repayments of) loans payable

 

 

(15,000

)

 

15,236

 

Proceeds from loan payable to related party

 

 

 

 

360,935

 

 

 

 

 

 

 

 

 

Net Cash Provided by Financing Activities

 

 

322,289

 

 

404,018

 

 

 

 

 

 

 

 

 

Net Increase in Cash and Cash Equivalents

 

 

40,976

 

 

4,055

 

 

 

 

 

 

 

 

 

Net effect of exchange rate changes on cash

 

 

523

 

 

1,500

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents, Beginning of Period

 

 

252

 

 

3

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents, End of Period

 

$

41,751

 

$

5,558

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY CASH FLOW INFORMATION:

 

 

 

 

 

 

 

Interest paid

 

$

 

$

 

Income taxes paid

 

$

 

$

 


The accompanying notes are an integral part of these unaudited financial statements.


- 6 -



1. NATURE OF BUSINESS


Black Cactus Global, Inc. was incorporated in the State of Florida on April 8, 2013. The address of the head office is Suite 200, 8275 South Eastern Avenue, Las Vegas, Nevada 89123. The Company’s plan is to develop a technology business in digital currency mining. On December 4, 2017, the Company changed its name to “Black Cactus Global, Inc.”.


2. GOING CONCERN


The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has had no revenue or operations, and only incurred losses since inception. As at July 31, 2018, the Company has a working capital deficiency of $630,120 and an accumulated deficit of $6,887,964. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise sufficient financing to acquire or develop a profitable business. The Company intends to finance its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including related party advances and term notes until such time that funds provided by operations are sufficient to fund working capital requirements. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.


3. SIGNIFICANT ACCOUNTING POLICIES


BASIS OF PRESENTATION


These unaudited financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and are expressed in United States dollars. The Company’s fiscal year-end is April 30.


These interim unaudited financial statements have been prepared in accordance with US GAAP for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all of the information and footnotes required by US GAAP to complete financial statements. Therefore, these interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC.


The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at July 31, 2018, and the results of its operations and cash flows for the three months ended July 31, 2018. The results of operations for the period ended July 31, 2018 are not necessarily indicative of the results to be expected for future quarters or the full year.


The significant accounting policies followed are:


USE OF ESTIMATES


The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates related to fair value measurements, stock-based compensation and deferred income tax asset valuation allowance. Actual results could differ from those estimates.


FOREIGN CURRENCY TRANSLATION


The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.


- 7 -



FINANCIAL INSTRUMENTS


ASC 825, “Financial Instruments”, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 825 prioritizes the inputs into three levels that may be used to measure fair value:


Level 1


Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.


Level 2


Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.


Level 3


Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.


The financial instruments consist principally of cash and cash equivalents, accounts payable, advances payable, due to related party, loans payable and convertible debentures. The fair value of cash and cash equivalents when applicable is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Derivative liabilities are determined based on “Level 2” inputs, which are significant and observable. The Company believes that the recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.


Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as of July 31, 2018 and April 30, 2018:


 

Fair Value Measurements Using

 

 

 

Quoted Prices in

Significant

 

 

 

 

Active Markets

Other

Significant

 

 

 

For Identical

Observable

Unobservable

Balance as of

Balance as of

 

Instruments

Inputs

Inputs

July 31,

April 30,

 

(Level 1)

(Level 2)

(Level 3)

2018

2018

Assets:

 

 

 

 

 

Cash and cash equivalents

$   41,751

$        —

$        —

$   41,751

$      252


Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions.


CASH AND CASH EQUIVALENTS


All cash investments with an original maturity of three months or less are considered to be cash equivalents.


INCOME TAXES


The Company accounts for income taxes under ASC 740 “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.


- 8 -



RECENT ACCOUNTING PRONOUNCEMENTS


The Company has implemented all new mandatory accounting pronouncements that are in effect and there has been no significant impact on its financial statements. The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.


4. FINANCIAL RISK FACTORS


LIQUIDITY RISK


Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at July 31, 2018, the Company has a cash balance of $41,751 and current liabilities of $916,183. The Company’s accounts payable and accrued liabilities have contractual maturities of less than 60 days and are subject to normal trade terms. The Company requires additional financing to meet its current obligations. The ability of the Company to continue to identify and evaluate feasible business opportunities, develop products and generate working capital is dependent on its ability to secure additional equity or debt financing.


FOREIGN EXCHANGE RISK


Foreign exchange risk is the risk that the Company will be subject to foreign currency fluctuations in satisfying obligations related to foreign activities. Loans payable to unrelated third parties may be denominated in Canadian dollars. Foreign exchange risk arises from purchase transactions as well as financial assets and liabilities denominated in these foreign currencies. The Company does not use derivative instruments to hedge exposure to foreign exchange rate risk. However, management of the Company believes there is no significant exposure to foreign currency fluctuations.


5. EQUIPMENT


On June 22, 2017, the Company purchased computer equipment totaling $364,590. The equipment was pledged as security on a loan (See Note 7(b)). Pursuant to the terms of the loan, should the loan remain unpaid past September 30, 2017, the lender would take sole possession of the equipment. The Company did not make the required payment and the equipment was returned to the lender.  As at July 31, 2018, the Company had no equipment.


6. PREPAID EXPENSES AND OTHER ASSETS


The Company’s prepaid expenses and other assets consists of deposits, retainers and advance payments for various services including investor relations, legal, marketing and other costs.


7. RELATED PARTY TRANSACTIONS AND BALANCES


(a)

As at July 31, 2018, the Company was owed $169,729 (April 30, 2018 - $327,541) from the majority shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.

 

 

(b)

On June 22, 2017, the Company entered into a secured loan with a corporation with a significant shareholder for a loan up to CAD$450,000 for the purpose of purchasing digital currency mining hardware (“Mining Hardware”). The loan was non-interest bearing and due on August 31, 2017. The Mining Hardware purchased with the loaned funds was held as collateral until the loan amount was fully repaid. Furthermore, revenue produced by the Mining Hardware purchased with the loaned funds was to be paid to the Lender until the loaned funds were repaid in full. Should the loan remain unpaid past September 30, 2017, the Lender would take sole possession of the Mining Hardware, in lieu of the loan. As at September 30, 2017, the Company had not made the required payment of the loan and the Lender took sole possession of the Mining Hardware (refer to Note 5).


- 9 -



8. LOANS PAYABLE


The balance presented for loans payable consist of the following amounts:


(a)

On July 15, 2016, the Company entered into a loan agreement for a principal balance of up to $50,000 at any given time. The amount is unsecured, non-interest bearing and due on July 15, 2018. As at July 31, 2018, the Company has received gross loan proceeds of $54,176. Upon receipt of the funds, the Company recorded fair value discounts of $6,836. During the year ended April 30, 2017, the Company repaid $10,600 of principal and recognized accretion of the discount of $2,067. During the year ended April 30, 2018, the Company repaid $5,000 of principal and recognized accretion of the discount of $3,918. During the three months ended July 31, 2018, the Company repaid $nil of principal and recognized accretion of the discount of $851. At July 31, 2018, the net carrying value of the loan was $38,576.

 

 

(b)

As at July 31, 2018, the Company was indebted for loans amounting to $500 (April 30, 2018 - $500). The amounts are unsecured, non-interest bearing and due on demand.

 

 

(c)

On September 30, 2017, the Company entered into a loan agreement for a principal balance of $130,000. The loan was subject to interest at 10% and due on April 30, 2018. On May 24, 2018, the Company issued 2,600,000 shares of common stock to settle the $130,000 of principal and $6,500 of interest owing under the loan agreement (refer to Note 12). The fair value of the shares issued was determined to be $338,000, and as a result, the Company recorded a loss on settlement of debt of $201,500 during the three months ended July 31, 2018.

 

 

(d)

On February 14, 2018, the Company entered into a loan agreement for a principal balance of $25,000.  The loan bears interest at 10% and is due on February 13, 2019.


9. CONVERTIBLE DEBENTURES


On November 27, 2017, the Company entered into and closed on a Securities Purchase Agreement (“SPA”) with Bellridge Capital L.P. (“Bellridge”), pursuant to which the Company issued a senior secured convertible promissory note in the aggregate principal amount of $526,316 (“Note”) for an aggregate purchase price of $500,000, net of a $26,316 original issue discount and $10,000 of legal fees. The Company also incurred additional debt issuance costs of $50,000.  The total debt issue costs of $86,316 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. In addition, the Company issued 7,894,737 warrants to Bellridge with a term of six months at an exercise price equal to the lesser of (i) $0.10 per share and (ii) 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days. The Company also agreed to issue 2,793,296 shares to Bellridge in connection with the loan.  The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on November 27, 2018 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.


The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. The Company’s trading history indicated that the shares are thinly traded and the market would not absorb the sale of the shares issued upon conversion without significantly affecting the price. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, at July 31, 2018, the conversion features and non-standard anti-dilutions provisions would not meet derivative classification.


The relative fair values of the convertible note, the warrants and the shares were $140,733, $284,751 and $100,832, respectively.  The effective conversion price was then determined to be $0.063. As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company recognized the relative fair value of the shares issuable of $100,832 and an equivalent discount that reduced the carrying value of the convertible debt to $425,484.  The Company then recognized the relative fair value of the warrants of $284,751 as additional-paid-in capital and an equivalent discount that further reduced the carrying value of the convertible debt to $140,733. The beneficial conversion feature of $54,417, the OID of $26,316 and debt financing costs of $60,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $0. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $72,999 (July 31, 2017 - $nil) increasing the carrying value of the loan to $109,009. As at July 31, 2018, the Company has recorded accrued interest of $17,087 (April 30, 2018 - $10,454).


- 10 -



On April 2, 2018, April 5, 2018 and April 13, 2018, the Company amended (the “Amendments”) the November 27, 2017 Securities Purchase Agreement.  Pursuant to the Amendments the Company issued Bellridge warrants to purchase 85,000,000 shares of the Company’s common stock at an exercise price of $0.10 per share. The Company also issued a senior secured convertible promissory note in the aggregate principal amount of $315,790 (“Note”) for an aggregate purchase price of $295,000, net of a $15,790 original issue discount and $5,000 of legal fees. The Company also incurred additional debt issuance costs of $30,000 and issued a warrant to purchase 560,717 shares of the Company’s common stock at an exercise price of $0.10 per share.  The total debt issue costs of $50,672 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on December 20, 2018 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.


The relative fair values of the convertible note, the warrants and the shares were $6,208, $118 and $258,674, respectively.  The effective conversion price was then determined to be $0.001. As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company recognized the relative fair value of the warrants of $258,792, as additional-paid-in capital and an equivalent discount that reduced the carrying value of the convertible debt to $56,998. The beneficial conversion feature of $6,208, the OID of $15,790 and debt financing costs of $35,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $0. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $24,440 increasing the carrying value of the loan to $33,221. As at July 31, 2018, the Company has recorded accrued interest of $7,133 (April 30, 2018 - $1,524).


On June 1, 2018, the Company issued a senior secured convertible promissory note in the aggregate principal amount of $210,527 (“Note”) for an aggregate purchase price of $200,000, net of a $10,527 original issue discount. The Company also incurred additional debt issuance costs of $20,000.  The total debt issue costs of $30,527 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on June 1, 2019 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.


As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company then recognized the beneficial conversion feature of $144,908 as additional-paid-in capital and an equivalent discount that further reduced the carrying value of the convertible debt to $65,619. The OID of $10,570 and debt financing costs of $20,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $35,092. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $12,646 increasing the carrying value of the loan to $47,738. As at July 31, 2018, the Company has recorded accrued interest of $1,754 (April 30, 2018 - $nil).


As part of the SPA, Bellridge is loaning the Company a minimum of $500,000 to a maximum of $1,500,000 (“Loan”). The first three tranches were the $1,000,000 in the form of the Notes above. The next and final tranche of $500,000 will be funded upon the effectiveness of the registration statement that the Company expects to file covering the shares of common stock issuable upon conversion of the Notes.


As part of the Bellridge Agreements, the Company also executed Registration Rights Agreement, Intellectual Property Security Interest Agreement, Subsidiary Guaranty and a Security Interest Agreement in all the Company’s assets to Bellridge.


10. PRODUCT DEVELOPMENT AND WEBSITE COSTS


On June 18, 2017, the Company entered into a Definitive Acquisition Agreement involving the internet domain and brand BitReturn. The Agreement represents the Company’s development of a plan to create a technology business in mining digital currency with an operating name of BitReturn. The Company issued 10,000,000 shares of restricted common stock with a fair value of $1,900,000 as payment under the terms of the Agreement, which have been recognized as and included in product development and website costs. The Company is also to make cash payments totaling $350,000 under the terms of the Agreement, and as at July 31, 2018, $350,000 (April 30, 2018 - $350,000) is recorded as an amount payable for BitReturn. Product development and website expenses represent costs of acquiring the brand BitReturn, development of the crypto currency mining product, and creation of the website. These costs do not meet the criteria for capitalization, and therefore have been treated as an operating expense.


- 11 -



11. COMMITMENTS


(a)

On July 1, 2017, the Company entered into a Strategic Management and Advisory Agreement for consulting services and investor relations services to be provided over a period of twelve months commencing July 1, 2017. In consideration, the Company will pay a total monthly fee of $3,000 cash and issue a total of 1,000,000 shares of common stock. On July 26, 2017, the Company issued 1,000,000 shares of common stock with a fair value of $260,000, which has been recorded as a prepaid expense and will be amortized over the term of the agreement. During the three months ended July 31, 2018, the Company recognized $43,333 (July 31, 2017 - $20,833) of consulting expense.

 

 

(b)

On November 8, 2017, the Company entered into a Financial Advisor Agreement with an unrelated third party for consulting services and investor relations services to be provided over a period of three months commencing November 8, 2017. In consideration, the Company will pay an initial fee of $20,000 cash. In addition, if the Company closes any transactions made with any introduction made by the unrelated third party, the Company shall pay an industry-standard cash fee of 10% on all equity or equity-linked capital invested, which will be recorded as debt financing costs. On November 27, 2017, the Company entered into and closed on a Securities Purchase Agreement (refer to Note 9) whereby the introduction was made by the unrelated third party. During the year ended April 30, 2018, the Company recognized $100,000 of debt financing costs (refer to Note 9) and issued 560,717 warrants exercisable at $0.10 pursuant to the agreement. During the three months ended July 31, 2018, the Company recognized $20,000 of debt financing costs (refer to Note 9).

 

 

(c)

On January 4, 2018, the Company entered into an Equity Research Service Agreement for investor relations services to be provided over a period of twelve months commencing January 4, 2018. In consideration, on January 16, 2018, the Company issued 150,000 shares of common stock with a fair value of $57,000, which has been recorded as a prepaid expense and will be amortized over the term of the agreement. During the three months ended July 31, 2018, the Company recognized $14,250 of consulting expense.

 

 

(d)

On February 14, 2018, the Company entered into an Employment Agreement with a term of three years. Pursuant to the Employment Agreement, the Company agreed to issue 8,000,000 shares and pay the employee GBP250,000 in exchange for services.  On July 9, 2018, the Company and the employee entered into a Settlement and General Release Agreement pursuant to which, the Company would issue the employee 6,000,000 shares of common stock in exchange for release from the Employment Agreement (refer to Note 12).


12. STOCKHOLDERS’ DEFICIT


On November 13, 2017, the Company amended its Articles of Incorporation, increasing the number of common stock authorized from 240,000,000 to 490,000,000, par value of $0.0001, and leaving the number of preferred stock authorized at 10,000,000, par value of $0.0001.


At the time of the amendment, the Company designated 10,000 shares of its authorized but unissued shares of preferred stock as Series A Preferred Stock. The 10,000 Series A Preferred Stock shall have an aggregate voting power of 45% of the combined voting power of the entire Company’s shares, common stock and preferred stock, as long as the Company is in existence. Each holder of the Series A Preferred Stock shall have full voting rights and powers equal to the voting rights and powers of the holders of common stock, and shall be entitled, notwithstanding any provision hereof, to notice of any stockholders’ meeting in accordance with the by-laws of the Company, and shall be entitled to vote, together with holders of common stock, with respect to any question upon which holders of common stock have the right to vote. Without the vote or consent of holders of at least a majority of the shares of Series A Preferred Stock then outstanding, the Company may not (i) authorize, create or issue, or increase the authorized number of shares of, any class or series of capital stock ranking prior to or on a parity with the Series A Preferred Stock, (ii) authorize, create or issue any class or series of common stock of the Company other than the common stock, (iii) authorize any reclassification of the Series A Preferred Stock, (iv) authorize, create or issue any securities convertible into or exercisable for capital stock prohibited by (i) or (ii), (v) amend this Certificate of Designations or (vi) enter into any merger or reorganization, or disposal of assets involving 20% of the total capitalization of the Company.


Subject to the rights of the holders of any other series of preferred stock ranking senior to or on a parity with the Series A Preferred Stock with respect to liquidation and any other class or series of capital stock of the Company ranking senior to or on a parity with the Series A Preferred Stock with respect to liquidation, in the event of any liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, the holders of record of the issued and outstanding shares of Series A Preferred Stock shall be entitled to receive, out of the assets of the Company available for distribution to the holders of shares of Series A Preferred Stock, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock and any other series of preferred stock ranking junior to the Series A Preferred Stock with respect to liquidation.


- 12 -



The holders of the Series A Preferred Stock shall not be entitled to receive dividends per share of Series A Preferred Stock. The Company shall have no rights to redeem Series A Preferred Stock.


COMMON STOCK


On June 26, 2017, the Company issued 1,400,000 shares of common stock for gross proceeds of $14,000, which was received during the year ended April 30, 2017.


On June 27, 2017, the Company issued 10,000,000 shares of common stock with a fair value of $1,900,000 for BitReturn pursuant to a Definitive Acquisition Agreement (refer to Note 10).


On July 1, 2017, the Company issued 1,000,000 shares of common stock with a fair value of $260,000 for investor relations services pursuant to a Strategic Management and Advisory Agreement (refer to Note 11).


On July 26, 2017, the Company issued 2,500,000 shares of common stock with a fair value of $400,000 as signing bonuses pursuant to service agreements and the $400,000 fair value was expensed and included in consulting fees.


On January 16, 2018, the Company issued 3,200,000 shares of common stock pursuant to the Share Purchase Agreement with an unrelated third party. Under the terms of the Agreement, the Company will purchase all the issued ordinary shares of the unrelated third party from its shareholders, thereby acquiring all the intellectual property, research and development, contracts, accounts receivable and licenses owned by the unrelated third party. In exchange, the Company will issue 3,200,000 shares of its common stock to the unrelated third party’s shareholders. The Agreement will not close and the acquisition will not be complete until the Company receives the source code and software to the unrelated third party’s intellectual property for all of the unrelated third party’s programs, platforms and products and these assets have been independently verified. Additionally, if the shares issued to the unrelated third party shareholders do not have an aggregate value of $2,000,000 by January 15, 2019, the unrelated third party shareholders are entitled to have additional shares issued to them so that they hold shares equal to $2,000,000 as of that date. As the Company has not received the source code and software relating to the intellectual property, the Agreement was terminated, and the 3,200,000 common shares were cancelled on May 23, 2018.


On May 24, 2018, the Company issued 2,600,000 shares of common stock to settle the $130,000 of principal and $6,500 owed under the loan agreement described in Note 8(c).


On July 9, 2018, the Company entered into a Settlement and General Release Agreement pursuant to which the Company would issue an employee 6,000,000 shares of common stock in exchange for release from the Employment Agreement described in Note 11(d). The fair value of the shares on the date of settlement of $420,000 was accrued at July 31, 2018 as shares issuable.


As at July 31, 2018, 50,000,000 shares of common stock are held in treasury.


As at July 31, 2018, there are 166,073,296 shares of common stock issued and 116,073,296 shares of common stock outstanding.


PREFERRED STOCK - SERIES A


As at July 31, 2018, there are no issued and outstanding Series A Preferred Stock.


- 13 -



13. SHARE PURCHASE WARRANTS


The following table summarizes the continuity of share purchase warrants:


 

 

Number of
warrants

 

Weighted average
exercise price $

 

 

 

 

 

 

 

Balance, April 30, 2018

 

93,455,454

 

 

$ 0.10

 

Issued

 

 

 

 

Balance, July 31, 2018

 

93,455,454

 

 

$ 0.10

 


As at July 31, 2018, the following share purchase warrants were outstanding:


Expiry date

 

Number of
warrants

 

Exercise
price $

 

 

 

 

 

 

 

May 27, 2022

 

7,894,737

 

$ 0.042

*

March 29, 2023

 

560,717

 

$ 0.10

 

April 5, 2023

 

85,000,000

 

$ 0.10

 

 

 

93,455,454

 

 

 

__________

*The lower of $0.10 and 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days.


The weighted average remaining life of the warrants outstanding as at July 31, 2018 is 4.61 years.


14. SUBSEQUENT EVENT


On September 30, 2018, the Company entered into a Share Purchase Agreement with Black Cactus Global Technologies Pvt. Limited (“BCGT”). Under the terms of the Agreement, the Company will purchase 29% of the issued and outstanding common shares of BCGT as at the date of the Agreement (2,900 common shares) for a purchase price of $44 (denominated as 2,900 Indian Rupees). In exchange, the Company will continue to work together with BCGT to develop blockchain and related technology services. The Agreement will not close until the Company receives the share certificates and has made payment of the 2,900 Indian Rupees purchase price.


- 14 -



ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Company Overview

 

Black Cactus Global, Inc. (formerly Envoy Group Corp.) (the “Company”) was incorporated in the State of Florida on April 8, 2013, with a fiscal year end of April 30. Until June 2017, we had not established any business operations and had not achieved any revenues. Until then, we were in the process of identifying and evaluating feasible business opportunities in the consumer products and technology industries.


The address of the head office is Suite 200, 8275 South Eastern Avenue, Las Vegas, Nevada 89123. The Company’s plan is to develop a technology business in digital currency mining.  On December 4, 2017, the Company changed its name to “Black Cactus Global, Inc.” with a plan to engage in the development of commercial Blockchain technology and Smart Contract software applications for healthcare, Fintech, logistics and energy solutions worldwide.


On September 30, 2018, the Company entered into a Stock Purchase Agreement with Black Cactus Global Technologies Pvt. Limited (“BCGT”), a corporation organized under the laws of Indian, a related party, whereby the Company agreed to purchase 29% of BCGT’s common stock, for $45 (denominated as 2,900 Indian Rupees).  The Company and BCGT have been working together to establish a technology center in India and intend to continue working together to develop blockchain and related technology services to be used by their customers.  The CEO of BCGT is Dr. Ramesh Para, the CEO of the Company.


Critical Accounting Policies


As of July 31, 2018, there were no critical accounting policies. See the footnotes to our unaudited financial statements, included elsewhere in this quarterly report on Form 10-Q, for a complete summary of the significant accounting policies used in the presentation of our financial statements. The summary is presented to assist the reader in understanding the financial statements. The accounting policies used conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.


Concentrations, Risks, and Uncertainties


The Company did not have a concentration of business with suppliers or customers constituting greater than 10% of the Company’s gross sales during the reporting period.


Recently Issued Accounting Standards


The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. Pursuant to Jumpstart Our Business Startups Act of 2012, as an “emerging growth company,” we are permitted to take advantage of an extended transition period for complying with new or revised accounting standards until such time as the standards are applicable to private companies. We have chosen to take advantage of this extended transition period. Accordingly, our financial statements may not be comparable to those of companies that comply with public company effective dates.


Results of Operations


The following discussion of the Company’s financial condition and the results of operations should be read in conjunction with the unaudited financial statements and notes thereto appearing elsewhere in this quarterly report on Form 10-Q.


The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that in addition to the description of historical facts contained herein, this report contains certain forward-looking statements that involve risks and uncertainties as detailed herein and from time to time in the Company’s other filings with the Securities and Exchange Commission and elsewhere. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those, described in the forward-looking statements. These factors include, among others: (a) the Company’s fluctuations in sales and operating results; (b) risks associated with international operations; (c) regulatory, competitive and contractual risks; (d) product development risks; (e) the ability to achieve strategic initiatives, including but not limited to the ability to achieve sales growth across the business segments through a combination of enhanced sales force, new products, and customer service; and (f) pending litigation.


- 15 -



Management’s Plan of Operation


We do not have adequate funds to satisfy our working capital requirements for the next twelve months.  We have borrowed a total of $1,000,000 from Bellridge Capital LP (“Bellridge”) to fund our planned plan of operations in digital currency mining. We sold Bellridge our Senior, Secured Convertible Promissory Notes (the “Notes”).  Thus far, Bellridge has purchase $1,000,000 in Notes. Pursuant to the terms of our agreements with Bellridge, we were required to file a registration statement with the SEC to register the shares of Common Stock to be issued under those agreements. We filed the registration statement on April 24, 2018 but it has not yet been declared effective.  We received the third tranche of $200,000 from Bellridge after the first set of SEC comments.  We may not receive the fourth and final tranche of $500,000 unless and until the registration statement is declared effective by the SEC. We cannot estimate when our registration statement will be declared effective by the SEC. Under certain conditions, Bellridge may not have to purchase the third and fourth Notes.  These conditions include any acts constituting default under any of the Notes or the agreements entered into at the time of the first purchase of the Note issued on November 27, 2017.  Until such time as we receive the final $500,000 of funding from Bellridge, in the interim, we may not be able to completely implement and commence our proposed plan of operations.


Results of Operations


There is no historical financial information about us upon which to base an evaluation of our performance. We had net (loss) income of $(697,088) and $(2,719,947) for the three months ended July 31, 2018 and 2017, respectively.


We did not generate any revenues from our operations for the three months ended July 31, 2018 or 2017. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently available to us for the implementation of our business strategies.


During the three months ended July 31, 2018 and 2017, we had operating expenses of $363,401 and $2,719,947, respectively. The decrease in operating expenses is primarily due to the costs incurred for the three months ended July 31, 2017 in website and product development costs related to the costs associated with the BitReturn acquisition during that period ($2,255,187).


Since inception, the majority of our time has been spent refining its business plan and preparing for a primary financial offering.


Our results of operations are summarized below:


 

 

For the Three
Months Ended
July 31, 2018

 

For the Three
Months Ended
July 31, 2017

 

Revenue

 

 

 

 

 

Cost of Revenue

 

 

 

 

 

Net Loss (Income) and Comprehensive (Loss) Income

 

$

(697,088

)

$

(2,719,947

)

Net Loss (Income) per Common Share, Basic and Diluted

 

 

(0.01

)

 

(0.03

)

Weighted Average Number of Common Shares Outstanding, Basic and Diluted

 

 

115,395,035

 

 

88,502,070

 


Liquidity and Capital Resources


As of July 31, 2018, we had not generated any revenues from our business operations. As at July 31, 2018, there were 166,073,296 shares of common stock issued and 116,073,296 shares of common stock outstanding. Total cash proceeds received from common share issuance since inception to July 31, 2018 is $90,500.


As of July 31, 2018 and 2017, we had cash and cash equivalents of $41,751 and $5,558, respectively. Our cash was not sufficient to meet the obligations associated with being a company that is fully reporting with the SEC. We believe we will require additional financing in the form of share issuance proceeds or advances from our directors.


Our business expansion will require significant capital resources that may be funded through the issuance of common stock or of notes payable or other debt arrangements that may affect our debt structure. Despite our current financial status, we believe that we may be able to issue notes payable or debt instruments in order to start executing our business plan. However, there can be no assurance that we will be able to raise money in this fashion and have not entered into any agreements that would obligate a third party to provide us with capital.


- 16 -



During the three months ended July 31, 2018 and 2017, we had operating expenses of $363,401 and $2,719,947, respectively. Historically, we have relied on loans to fund general and administrative operating expenses. As of July 31, 2018, we had a working capital deficiency of $630,120.


As of July 31, 2018, the Company had no external sources of liquidity such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.


Our independent auditor has expressed doubt about our ability to continue as a going concern and believes that our ability is dependent on our ability to implement our business plan, raise capital and generate revenues. See Note 2 of our financial statements.


Off-Balance Sheet Arrangements


The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the Company is a party, under which the Company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.


Not required for smaller reporting companies.


ITEM 4. CONTROLS AND PROCEDURES.


Evaluation of Disclosure Controls and Procedures


We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of July 31, 2018 pursuant to Rule 13a-15(b) under the Exchange Act. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective to ensure that information required to be included in our periodic SEC filings is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms.


Changes in Internal Control over Financial Reporting


There have been no changes in our internal controls over financial reporting that occurred during the quarter ended July 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


- 17 -



PART II. OTHER INFORMATION.


ITEM 1. LEGAL PROCEEDINGS


None.


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES


On July 9, 2018, the Company issued 6 million shares of its common stock as consideration for a settlement and general release from an Employment Agreement.


The securities issuance was exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on an exemption provided by Regulation S promulgated pursuant to the Securities Act and Section 4(a)(2) of the Securities Act. The issuances involved offers and sales of securities outside the United States. The offers and sales were made in offshore transactions and no directed selling efforts were made by the issuer, a distributor, their affiliates or any persons acting on their behalf.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES


None.


ITEM 4. MINE SAFETY DISCLOSURES


Not applicable.


ITEM 5. OTHER INFORMATION


None.


ITEM 6. EXHIBITS


Exhibit

 

Description

31.1

 

Certification of CFO pursuant to Rule 13a-14(a)/15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

 

Certification of CEO pursuant to Rule 13a-14(a)/15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

 

Certification of CFO pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

 

Certification of CEO pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

 

XBRL Instance

101.SCH

 

XBRL Taxonomy Extension Schema

101.CAL

 

XBRL Taxonomy Extension Calculation

101.DEF

 

XBRL Taxonomy Extension Definition

101.LAB

 

XBRL Taxonomy Extension Labels

101.PRE

 

XBRL Taxonomy Extension Presentation


- 18 -



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 

BLACK CACTUS GLOBAL, INC.

 

 

Date: October 12, 2018

By: /s/ Dr. Ramesh Para

 

Dr. Ramesh Para

 

Chief Executive Office

(principal executive officer)

 

 

Date: October 12, 2018

By:/s/ Harpreet Sangha

 

Harpreet Sangha

 

Chief Financial Officer

(principal financial officer and principal accounting officer)


- 19 -


EX-31 2 ex_31-1.htm CERTIFICATION OF CFO PURSUANT TO RULE 13A-14(A)/15D-14(A)

EXHIBIT 31.1

 

CERTIFICATIONS

 

I, Harpreet Sangha, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q for the quarter ended July 31, 2018 of Black Cactus Global, Inc.;
     
  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     
  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
     
  4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: October 12, 2018

 

  /s/ Harpreet Sangha
  Harpreet Sangha
  Chief Financial Officer
  (principal financial officer and principal accounting officer)

 


EX-31 3 ex_31-2.htm CERTIFICATION OF CEO PURSUANT TO RULE 13A-14(A)/15D-14(A)

EXHIBIT 31.2

 

CERTIFICATIONS

 

I, Dr. Ramesh Para, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q for the quarter ended July 31, 2018 of Black Cactus Global, Inc.;
     
  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     
  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
     
  4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: October 12, 2018

 

  /s/ Dr. Ramesh Para
  Dr. Ramesh Para
  Chief Executive Officer
  (principal executive officer)

 


EX-32 4 ex_32-1.htm CERTIFICATION CFO PURSUANT TO 18 U.S.C. SECTION 1350

EXHIBIT 32.1

 

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of Black Cactus Global, Inc. (the “Company”) on Form 10-Q for the period ended July 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Harpreet Sangha, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: October 12, 2018 /s/ Harpreet Sangha
  Harpreet Sangha
  Chief Financial Officer
  (principal financial officer)

 


EX-32 5 ex_32-2.htm CERTIFICATION CEO PURSUANT TO 18 U.S.C. SECTION 1350

EXHIBIT 32.2

 

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of Black Cactus Global, Inc. (the “Company”) on Form 10-Q for the period ended July 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dr. Ramesh Para, Chief Executive Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: October 12, 2018 /s/ Dr. Ramesh Para
  Dr. Ramesh Para
  Chief Executive Officer
  (principal executive officer)

 


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11) General and administrative Investor relations Professional fees Product development and website costs (Note 10) TOTAL OPERATING EXPENSES Accretion of discounts on convertible debentures (Note 9) Loss on settlement of debt (Note 8) Interest expense NET LOSS AND COMPREHENSIVE LOSS NET LOSS PER COMMON SHARE, BASIC AND DILUTED (in dollars per share) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED (in shares) Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES Net loss Adjustments to reconcile net loss to net cash used in operating activities: Accretion of loan discounts Accretion of convertible debt discount Issuance of common stock for BitReturn (Note 10) Issuance of common shares for services Loss on settlement of debt Changes in operating assets and liabilities: Prepaid expenses Accounts payable and accrued liabilities Amount payable for BitReturn Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of 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BALANCES Loans Payable [Abstract] LOANS PAYABLE Convertible Debentures CONVERTIBLE DEBENTURES Product Development And Website Costs PRODUCT DEVELOPMENT AND WEBSITE COSTS Commitments and Contingencies Disclosure [Abstract] COMMITMENTS Stockholders' Equity Note [Abstract] STOCKHOLDERS' DEFICIT Share Purchase Warrants SHARE PURCHASE WARRANTS Subsequent Events [Abstract] SUBSEQUENT EVENTS BASIS OF PRESENTATION USE OF ESTIMATES FOREIGN CURRENCY TRANSLATION FINANCIAL INSTRUMENTS CASH AND CASH EQUIVALENTS INCOME TAXES RECENT ACCOUNTING PRONOUNCEMENTS Schedule of assets measured at fair value on a recurring basis Share Purchase Warrants Schedule of share purchase warrants Schedule of share purchase warrants were outstanding Working capital deficit Fair Value Measurements, Recurring and Nonrecurring [Table] Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] Fair Value Hierarchy and NAV [Axis] Assets: Cash and cash equivalents Financial Risk Factors Cash balance Current liabilities Purchased equipment Schedule of Related Party Transactions, by Related Party [Table] Related Party Transaction [Line Items] Due from related parties Due to related party Face amount Subsequent Event Type [Axis] Loans payable Principal balance Proceeds from loan payable Unamortized discount Loans payable Repayment of principal Accretion of loan discounts Number of shares issued (in shares) Fair value of share issued Debt interest rate Debt interest Principal amount Purchase price of note Debt instrument, discount Conversion price (in dollars per share) Debt financing costs Legal fees on notes issued Additional debt issuance costs Debt issuance costs, net Number of warrants issued (in shares) Exercise price of warrants (in dollars per share) Description of warrants issued Warrants term (in years) Number of shares issued (in shares) Debt instrument, interest rate (in percent) Beneficial conversion feature Carrying value of convertible debt Accretion of discount Increase in carrying amount of loan Accrued interest Description of debt instrument Debt conversion, description Fair values of convertible note Fair values of warrant Effective conversion price (in dollars per share) Increasing the carrying value of debt Value of shares issued Cash payments under agreement Amount payable to BitReturn Consulting expense Consulting fees Percentage of cash fee under debt financing cost (in percent) Debt financing costs Agreement term Common shares, authorized pre amendment (in shares) Common shares, authorized post amendment (in shares) Common shares, par value (in dollars per share) Preferred stock, authorized (in shares) Preferred stock, authorized but unissued shares (in shares) Description of voting rights Preferred stock, issued (in shares) Preferred stock, outstanding (in shares) Proceeds from common stock Common stock, issued (in shares) Common stock, outstanding (in shares) Shares subcription received (in shares) Value of shares subscription received Description of shares issued to unrelated party Common stock held by the company (in shares) Common stock are held in treasury Class of Warrant or Right [Table] Class of Warrant or Right [Line Items] Class of Warrant or Right Number of Warrants [Roll Forward] Balance, beginning Issued Balance, end Class of Warrant or Right Weighted Average Exercise Price [Roll Forward] Balance, beginning Issued Balance, end Number of warrants Exercise price Share Purchase Warrants Weighted average remaining life Purechase of issued and outstanding Agreement of common share Purchase price Informatiin of loan agreement. Carrying value as of the balance sheet date of portion of long-term loans payable due within one year or the operating cycle if longer. Information by type of related party. Related parties include, but not limited to, affiliates; other entities for which investments are accounted for by the equity method by the entity; trusts for benefit of employees; and principal owners, management, and members of immediate families. It also may include other parties with which the entity may control or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by type of long-term debt. Information by component of equity. Information about debt. It represents value of additional debt issuance costs. It represents number of warrant issued. Information about warrants term. It represents value of beneficial conversion feature. Amount of increasing carrying value of debt. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information about agreement. Information about agreement. Information about related party. Amount refers to consulting expenses. It represents percentage of cash fee under debt financing cost. Information about custom agreement term. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by category of arrangement, including but not limited to collaborative arrangements and non-collaborative arrangements. Information by general relase agreement. The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Description of related to shares issued to unrelated party. Class Of Warrant Or Right Number Of Warrants [Roll Forward] Warrant issued during the period. Weighted average exercise price of warrant. Warrant issued during the period. Security that gives the holder the right to purchase shares of stock in accordance with the terms of the instrument, usually upon payment of a specified amount. Security that gives the holder the right to purchase shares of stock in accordance with the terms of the instrument, usually upon payment of a specified amount. Security that gives the holder the right to purchase shares of stock in accordance with the terms of the instrument, usually upon payment of a specified amount. For entite of class of warrant or right of weighted average remaining life. Information by black cactus global technologies. Face amount or stated value per share of common stock of treasury. The amount of consulting fee. It represents value of accretion of discounts on convertible debentures. It represents value of accretion of convertible debt discount. Amount increase decrease in issuance of common stock. Adjument to value of issuance of common shares for services. The entire disclosure for financial risk factors. Entire disclosure related to prepaid expenses and other assets. The entire disclosure for Product development and website cost. Information about warrant purchase. Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable outstanding. Assets Liabilities Treasury Stock, Common, Value Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses AccretionOfDiscountsOnConvertibleDebentures Interest Expense AccretionOfConvertibleDebtDiscount Increase (Decrease) in Prepaid Expense Increase (Decrease) in Accounts Payable and Accrued Liabilities Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) Stockholders' Equity Note Disclosure [Text Block] Cash and Cash Equivalents, Fair Value Disclosure Loans Payable, Noncurrent ClassOfWarrantOrRightExercisePriceOfWarrantsOrRightsIssued EX-101.PRE 11 blgi-20180731_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - shares
3 Months Ended
Jul. 31, 2018
Oct. 09, 2018
Document And Entity Information    
Entity Registrant Name BLACK CACTUS GLOBAL, INC.  
Entity Central Index Key 0001575345  
Document Type 10-Q  
Trading Symbol BLGI  
Document Period End Date Jul. 31, 2018  
Amendment Flag false  
Current Fiscal Year End Date --04-30  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity's Reporting Status Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Common Stock, Shares Outstanding   116,073,296
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2019  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
BALANCE SHEETS - USD ($)
Jul. 31, 2018
Apr. 30, 2018
CURRENT ASSETS    
Cash and cash equivalents $ 41,751 $ 252
Due from related parties (Note 7) 169,729 327,541
Prepaid expenses and other assets (Note 6) 74,583 164,020
TOTAL ASSETS 286,063 491,813
CURRENT LIABILITIES    
Accounts payable and accrued liabilities 312,139 304,737
Amount payable for BitReturn (Note 10) 350,000 350,000
Convertible debentures (Note 9) 189,968 44,791
Loans payable (Note 8) 64,076 208,225
Total Liabilities 916,183 907,753
STOCKHOLDERS' DEFICIT    
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, of which 10,000 shares designated as Series A, no shares issued and outstanding (Note 12)
Common stock, $0.0001 par value; 490,000,000 shares authorized; 166,073,296 and 166,673,296 shares issued and 116,073,296 and 113,473,296 shares outstanding as of July 31, 2018 and April 30, 2018, respectively (Note 12) 11,607 11,347
Common stock in treasury, $0.0001 par value; 50,000,000 and 53,200,000 shares as of July 31, 2018 and April 30, 2017, respectively (Note 12) $ 1 $ 1
Shares issuable 420,000 420,000
Additional paid-in capital $ 5,826,236 $ 5,343,588
Accumulated deficit (6,887,964) (6,190,876)
Total Stockholders' Deficit (630,120) (415,940)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 286,063 $ 491,813
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
BALANCE SHEETS (Parenthetical) - $ / shares
Jul. 31, 2018
Apr. 30, 2018
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized 10,000,000 10,000,000
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized 490,000,000 490,000,000
Common stock, issued 166,073,296 166,673,296
Common stock, outstanding 116,073,296 113,473,296
Common stock in treasury, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock in treasury,shares 50,000,000 53,200,000
Series A Preferred Stock [Member]    
Preferred stock, authorized 10,000 10,000
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)
3 Months Ended
Jul. 31, 2018
Jul. 31, 2017
OPERATING EXPENSES    
Consulting (Note 11) $ 106,733 $ 424,997
General and administrative 123,448 12,369
Investor relations 26,750
Professional fees 106,470 27,394
Product development and website costs (Note 10) 2,255,187
TOTAL OPERATING EXPENSES (363,401) (2,719,947)
Accretion of discounts on convertible debentures (Note 9) (110,085)
Loss on settlement of debt (Note 8) (201,500)
Interest expense (22,102)
NET LOSS AND COMPREHENSIVE LOSS $ (697,088) $ (2,719,947)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED (in dollars per share) $ (0.01) $ (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED (in shares) 115,395,035 88,502,070
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Jul. 31, 2018
Jul. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (697,088) $ (2,719,947)
Adjustments to reconcile net loss to net cash used in operating activities:    
Accretion of loan discounts 851 1,021
Accretion of convertible debt discount 110,085
Issuance of common stock for BitReturn (Note 10) 1,900,000
Issuance of common shares for services 420,833
Loss on settlement of debt 201,500
Changes in operating assets and liabilities:    
Prepaid expenses 89,437 (1,809)
Accounts payable and accrued liabilities 13,902 14,529
Amount payable for BitReturn 350,000
Net Cash Used in Operating Activities (281,313) (35,373)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of equipment (Note 5) (364,590)
Net Cash Used in Investing Activities (364,590)
CASH FLOWS FROM FINANCING ACTIVITIES    
Advances from related party, net of repayments 157,289 27,847
Proceeds from issuance of convertible debt, net of debt financing costs 180,000
Proceeds from (repayments of) loans payable (15,000) 15,236
Proceeds from loan payable to related party 360,935
Net Cash Provided by Financing Activities 322,289 404,018
Net Increase in Cash and Cash Equivalents 40,976 4,055
Net effect of exchange rate changes on cash 523 1,500
Cash and Cash Equivalents, Beginning of Period 252 3
Cash and Cash Equivalents, End of Period 41,751 5,558
SUPPLEMENTARY CASH FLOW INFORMATION:    
Interest paid
Income taxes paid
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
NATURE OF BUSINESS
3 Months Ended
Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF BUSINESS

1. NATURE OF BUSINESS

 

Black Cactus Global, Inc. was incorporated in the State of Florida on April 8, 2013. The address of the head office is Suite 200, 8275 South Eastern Avenue, Las Vegas, Nevada 89123. The Company’s plan is to develop a technology business in digital currency mining. On December 4, 2017, the Company changed its name to “Black Cactus Global, Inc.”.

XML 18 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOING CONCERN
3 Months Ended
Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

2. GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has had no revenue or operations, and only incurred losses since inception. As at July 31, 2018, the Company has a working capital deficiency of $630,120 and an accumulated deficit of $6,887,964. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise sufficient financing to acquire or develop a profitable business. The Company intends to finance its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including related party advances and term notes until such time that funds provided by operations are sufficient to fund working capital requirements. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Jul. 31, 2018
Accounting Policies [Abstract]  
SIGNIFICANT ACCOUNTING POLICIES

3. SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF PRESENTATION

 

These unaudited financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and are expressed in United States dollars. The Company’s fiscal year-end is April 30.

 

These interim unaudited financial statements have been prepared in accordance with US GAAP for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all of the information and footnotes required by US GAAP to complete financial statements. Therefore, these interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC.

 

The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at July 31, 2018, and the results of its operations and cash flows for the three months ended July 31, 2018. The results of operations for the period ended July 31, 2018 are not necessarily indicative of the results to be expected for future quarters or the full year.

 

The significant accounting policies followed are:

 

USE OF ESTIMATES

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates related to fair value measurements, stock-based compensation and deferred income tax asset valuation allowance. Actual results could differ from those estimates.

 

FOREIGN CURRENCY TRANSLATION

 

The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

 

FINANCIAL INSTRUMENTS

 

ASC 825, “Financial Instruments”, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 825 prioritizes the inputs into three levels that may be used to measure fair value:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The financial instruments consist principally of cash and cash equivalents, accounts payable, advances payable, due to related party, loans payable and convertible debentures. The fair value of cash and cash equivalents when applicable is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Derivative liabilities are determined based on “Level 2” inputs, which are significant and observable. The Company believes that the recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

 

Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as of July 31, 2018 and April 30, 2018:

 

           
  Fair Value Measurements Using    
  Quoted Prices in Significant      
  Active Markets Other Significant    
  For Identical Observable Unobservable Balance as of Balance as of
  Instruments Inputs Inputs July 31, April 30,
  (Level 1) (Level 2) (Level 3) 2018 2018
Assets:          
Cash and cash equivalents $   41,751 $        — $        — $   41,751 $      252

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions.

 

CASH AND CASH EQUIVALENTS

 

All cash investments with an original maturity of three months or less are considered to be cash equivalents.

 

INCOME TAXES

 

The Company accounts for income taxes under ASC 740 “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

The Company has implemented all new mandatory accounting pronouncements that are in effect and there has been no significant impact on its financial statements. The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. 

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
FINANCIAL RISK FACTORS
3 Months Ended
Jul. 31, 2018
Financial Risk Factors  
FINANCIAL RISK FACTORS

4. FINANCIAL RISK FACTORS

 

LIQUIDITY RISK

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at July 31, 2018, the Company has a cash balance of $41,751 and current liabilities of $916,183. The Company’s accounts payable and accrued liabilities have contractual maturities of less than 60 days and are subject to normal trade terms. The Company requires additional financing to meet its current obligations. The ability of the Company to continue to identify and evaluate feasible business opportunities, develop products and generate working capital is dependent on its ability to secure additional equity or debt financing.

 

FOREIGN EXCHANGE RISK

 

Foreign exchange risk is the risk that the Company will be subject to foreign currency fluctuations in satisfying obligations related to foreign activities. Loans payable to unrelated third parties may be denominated in Canadian dollars. Foreign exchange risk arises from purchase transactions as well as financial assets and liabilities denominated in these foreign currencies. The Company does not use derivative instruments to hedge exposure to foreign exchange rate risk. However, management of the Company believes there is no significant exposure to foreign currency fluctuations.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
EQUIPMENT
3 Months Ended
Jul. 31, 2018
Property, Plant and Equipment [Abstract]  
EQUIPMENT

5. EQUIPMENT

 

On June 22, 2017, the Company purchased computer equipment totaling $364,590. The equipment was pledged as security on a loan (See Note 7(b)). Pursuant to the terms of the loan, should the loan remain unpaid past September 30, 2017, the lender would take sole possession of the equipment. The Company did not make the required payment and the equipment was returned to the lender.  As at July 31, 2018, the Company had no equipment.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
PREPAID EXPENSES AND OTHER ASSETS
3 Months Ended
Jul. 31, 2018
Prepaid Expenses And Other Assets  
PREPAID EXPENSES AND OTHER ASSETS

6. PREPAID EXPENSES AND OTHER ASSETS

 

The Company’s prepaid expenses and other assets consists of deposits, retainers and advance payments for various services including investor relations, legal, marketing and other costs.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
RELATED PARTY TRANSACTIONS AND BALANCES
3 Months Ended
Jul. 31, 2018
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS AND BALANCES

7. RELATED PARTY TRANSACTIONS AND BALANCES

 

(a) As at July 31, 2018, the Company was owed $169,729 (April 30, 2018 - $327,541) from the majority shareholder of the Company. The amount is unsecured, non-interest bearing and due on demand.
   
(b) On June 22, 2017, the Company entered into a secured loan with a corporation with a significant shareholder for a loan up to CAD$450,000 for the purpose of purchasing digital currency mining hardware (“Mining Hardware”). The loan was non-interest bearing and due on August 31, 2017. The Mining Hardware purchased with the loaned funds was held as collateral until the loan amount was fully repaid. Furthermore, revenue produced by the Mining Hardware purchased with the loaned funds was to be paid to the Lender until the loaned funds were repaid in full. Should the loan remain unpaid past September 30, 2017, the Lender would take sole possession of the Mining Hardware, in lieu of the loan. As at September 30, 2017, the Company had not made the required payment of the loan and the Lender took sole possession of the Mining Hardware (refer to Note 5).
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
LOANS PAYABLE
3 Months Ended
Jul. 31, 2018
Loans Payable [Abstract]  
LOANS PAYABLE

8. LOANS PAYABLE

 

The balance presented for loans payable consist of the following amounts:

 

(a) On July 15, 2016, the Company entered into a loan agreement for a principal balance of up to $50,000 at any given time. The amount is unsecured, non-interest bearing and due on July 15, 2018. As at July 31, 2018, the Company has received gross loan proceeds of $54,176. Upon receipt of the funds, the Company recorded fair value discounts of $6,836. During the year ended April 30, 2017, the Company repaid $10,600 of principal and recognized accretion of the discount of $2,067. During the year ended April 30, 2018, the Company repaid $5,000 of principal and recognized accretion of the discount of $3,918. During the three months ended July 31, 2018, the Company repaid $nil of principal and recognized accretion of the discount of $851. At July 31, 2018, the net carrying value of the loan was $38,576.
   
(b) As at July 31, 2018, the Company was indebted for loans amounting to $500 (April 30, 2018 - $500). The amounts are unsecured, non-interest bearing and due on demand.
   
(c) On September 30, 2017, the Company entered into a loan agreement for a principal balance of $130,000. The loan was subject to interest at 10% and due on April 30, 2018. On May 24, 2018, the Company issued 2,600,000 shares of common stock to settle the $130,000 of principal and $6,500 of interest owing under the loan agreement (refer to Note 12). The fair value of the shares issued was determined to be $338,000, and as a result, the Company recorded a loss on settlement of debt of $201,500 during the three months ended July 31, 2018.
   
(d) On February 14, 2018, the Company entered into a loan agreement for a principal balance of $25,000.  The loan bears interest at 10% and is due on February 13, 2019.
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONVERTIBLE DEBENTURES
3 Months Ended
Jul. 31, 2018
Convertible Debentures  
CONVERTIBLE DEBENTURES

9. CONVERTIBLE DEBENTURES

 

On November 27, 2017, the Company entered into and closed on a Securities Purchase Agreement (“SPA”) with Bellridge Capital L.P. (“Bellridge”), pursuant to which the Company issued a senior secured convertible promissory note in the aggregate principal amount of $526,316 (“Note”) for an aggregate purchase price of $500,000, net of a $26,316 original issue discount and $10,000 of legal fees. The Company also incurred additional debt issuance costs of $50,000.  The total debt issue costs of $86,316 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. In addition, the Company issued 7,894,737 warrants to Bellridge with a term of six months at an exercise price equal to the lesser of (i) $0.10 per share and (ii) 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days. The Company also agreed to issue 2,793,296 shares to Bellridge in connection with the loan.  The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on November 27, 2018 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.

  

The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. The Company’s trading history indicated that the shares are thinly traded and the market would not absorb the sale of the shares issued upon conversion without significantly affecting the price. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, at July 31, 2018, the conversion features and non-standard anti-dilutions provisions would not meet derivative classification.

 

The relative fair values of the convertible note, the warrants and the shares were $140,733, $284,751 and $100,832, respectively.  The effective conversion price was then determined to be $0.063. As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company recognized the relative fair value of the shares issuable of $100,832 and an equivalent discount that reduced the carrying value of the convertible debt to $425,484.  The Company then recognized the relative fair value of the warrants of $284,751 as additional-paid-in capital and an equivalent discount that further reduced the carrying value of the convertible debt to $140,733. The beneficial conversion feature of $54,417, the OID of $26,316 and debt financing costs of $60,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $0. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $72,999 (July 31, 2017 - $nil) increasing the carrying value of the loan to $109,009. As at July 31, 2018, the Company has recorded accrued interest of $17,087 (April 30, 2018 - $10,454).

 

On April 2, 2018, April 5, 2018 and April 13, 2018, the Company amended (the “Amendments”) the November 27, 2017 Securities Purchase Agreement.  Pursuant to the Amendments the Company issued Bellridge warrants to purchase 85,000,000 shares of the Company’s common stock at an exercise price of $0.10 per share. The Company also issued a senior secured convertible promissory note in the aggregate principal amount of $315,790 (“Note”) for an aggregate purchase price of $295,000, net of a $15,790 original issue discount and $5,000 of legal fees. The Company also incurred additional debt issuance costs of $30,000 and issued a warrant to purchase 560,717 shares of the Company’s common stock at an exercise price of $0.10 per share.  The total debt issue costs of $50,672 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on December 20, 2018 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.

 

The relative fair values of the convertible note, the warrants and the shares were $6,208, $118 and $258,674, respectively.  The effective conversion price was then determined to be $0.001. As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company recognized the relative fair value of the warrants of $258,792, as additional-paid-in capital and an equivalent discount that reduced the carrying value of the convertible debt to $56,998. The beneficial conversion feature of $6,208, the OID of $15,790 and debt financing costs of $35,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $0. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $24,440 increasing the carrying value of the loan to $33,221. As at July 31, 2018, the Company has recorded accrued interest of $7,133 (April 30, 2018 - $1,524).

 

On June 1, 2018, the Company issued a senior secured convertible promissory note in the aggregate principal amount of $210,527 (“Note”) for an aggregate purchase price of $200,000, net of a $10,527 original issue discount. The Company also incurred additional debt issuance costs of $20,000.  The total debt issue costs of $30,527 have been netted against the principal and will be amortized over the term of the loan using the effective interest rate method. The interest on the outstanding principal due under the Note accrues at a rate of 5% per annum. All principal and accrued interest under the Note is due on June 1, 2019 and is convertible into shares of the Company’s Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.

 

As the stock price at the issuance date was greater than the effective conversion price, it was determined that there was a beneficial conversion feature. The Company then recognized the beneficial conversion feature of $144,908 as additional-paid-in capital and an equivalent discount that further reduced the carrying value of the convertible debt to $65,619. The OID of $10,570 and debt financing costs of $20,000 discounted the convertible debenture such that the carrying value of the convertible debt on the date of issue was $35,092. The discount is being expensed over the term of the loan to increase the carrying value to the face value of the loan. The Company determined that there was no derivative liability associated with the debenture under ASC 815-15 Derivatives and Hedging. During the three months ended July 31, 2018, the Company recorded accretion of discount of $12,646 increasing the carrying value of the loan to $47,738. As at July 31, 2018, the Company has recorded accrued interest of $1,754 (April 30, 2018 - $nil).

 

As part of the SPA, Bellridge is loaning the Company a minimum of $500,000 to a maximum of $1,500,000 (“Loan”). The first three tranches were the $1,000,000 in the form of the Notes above. The next and final tranche of $500,000 will be funded upon the effectiveness of the registration statement that the Company expects to file covering the shares of common stock issuable upon conversion of the Notes.

 

As part of the Bellridge Agreements, the Company also executed Registration Rights Agreement, Intellectual Property Security Interest Agreement, Subsidiary Guaranty and a Security Interest Agreement in all the Company’s assets to Bellridge.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
PRODUCT DEVELOPMENT AND WEBSITE COSTS
3 Months Ended
Jul. 31, 2018
Product Development And Website Costs  
PRODUCT DEVELOPMENT AND WEBSITE COSTS

10. PRODUCT DEVELOPMENT AND WEBSITE COSTS

 

On June 18, 2017, the Company entered into a Definitive Acquisition Agreement involving the internet domain and brand BitReturn. The Agreement represents the Company’s development of a plan to create a technology business in mining digital currency with an operating name of BitReturn. The Company issued 10,000,000 shares of restricted common stock with a fair value of $1,900,000 as payment under the terms of the Agreement, which have been recognized as and included in product development and website costs. The Company is also to make cash payments totaling $350,000 under the terms of the Agreement, and as at July 31, 2018, $350,000 (April 30, 2018 - $350,000) is recorded as an amount payable for BitReturn. Product development and website expenses represent costs of acquiring the brand BitReturn, development of the crypto currency mining product, and creation of the website. These costs do not meet the criteria for capitalization, and therefore have been treated as an operating expense.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMMITMENTS
3 Months Ended
Jul. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS

11. COMMITMENTS

 

(a) On July 1, 2017, the Company entered into a Strategic Management and Advisory Agreement for consulting services and investor relations services to be provided over a period of twelve months commencing July 1, 2017. In consideration, the Company will pay a total monthly fee of $3,000 cash and issue a total of 1,000,000 shares of common stock. On July 26, 2017, the Company issued 1,000,000 shares of common stock with a fair value of $260,000, which has been recorded as a prepaid expense and will be amortized over the term of the agreement. During the three months ended July 31, 2018, the Company recognized $43,333 (July 31, 2017 - $20,833) of consulting expense.
   
(b) On November 8, 2017, the Company entered into a Financial Advisor Agreement with an unrelated third party for consulting services and investor relations services to be provided over a period of three months commencing November 8, 2017. In consideration, the Company will pay an initial fee of $20,000 cash. In addition, if the Company closes any transactions made with any introduction made by the unrelated third party, the Company shall pay an industry-standard cash fee of 10% on all equity or equity-linked capital invested, which will be recorded as debt financing costs. On November 27, 2017, the Company entered into and closed on a Securities Purchase Agreement (refer to Note 9) whereby the introduction was made by the unrelated third party. During the year ended April 30, 2018, the Company recognized $100,000 of debt financing costs (refer to Note 9) and issued 560,717 warrants exercisable at $0.10 pursuant to the agreement. During the three months ended July 31, 2018, the Company recognized $20,000 of debt financing costs (refer to Note 9).
   
(c) On January 4, 2018, the Company entered into an Equity Research Service Agreement for investor relations services to be provided over a period of twelve months commencing January 4, 2018. In consideration, on January 16, 2018, the Company issued 150,000 shares of common stock with a fair value of $57,000, which has been recorded as a prepaid expense and will be amortized over the term of the agreement. During the three months ended July 31, 2018, the Company recognized $14,250 of consulting expense.
   
(d) On February 14, 2018, the Company entered into an Employment Agreement with a term of three years. Pursuant to the Employment Agreement, the Company agreed to issue 8,000,000 shares and pay the employee GBP250,000 in exchange for services.  On July 9, 2018, the Company and the employee entered into a Settlement and General Release Agreement pursuant to which, the Company would issue the employee 6,000,000 shares of common stock in exchange for release from the Employment Agreement (refer to Note 12).
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
STOCKHOLDERS' DEFICIT
3 Months Ended
Jul. 31, 2018
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' DEFICIT

12. STOCKHOLDERS’ DEFICIT

 

On November 13, 2017, the Company amended its Articles of Incorporation, increasing the number of common stock authorized from 240,000,000 to 490,000,000, par value of $0.0001, and leaving the number of preferred stock authorized at 10,000,000, par value of $0.0001.

 

At the time of the amendment, the Company designated 10,000 shares of its authorized but unissued shares of preferred stock as Series A Preferred Stock. The 10,000 Series A Preferred Stock shall have an aggregate voting power of 45% of the combined voting power of the entire Company’s shares, common stock and preferred stock, as long as the Company is in existence. Each holder of the Series A Preferred Stock shall have full voting rights and powers equal to the voting rights and powers of the holders of common stock, and shall be entitled, notwithstanding any provision hereof, to notice of any stockholders’ meeting in accordance with the by-laws of the Company, and shall be entitled to vote, together with holders of common stock, with respect to any question upon which holders of common stock have the right to vote. Without the vote or consent of holders of at least a majority of the shares of Series A Preferred Stock then outstanding, the Company may not (i) authorize, create or issue, or increase the authorized number of shares of, any class or series of capital stock ranking prior to or on a parity with the Series A Preferred Stock, (ii) authorize, create or issue any class or series of common stock of the Company other than the common stock, (iii) authorize any reclassification of the Series A Preferred Stock, (iv) authorize, create or issue any securities convertible into or exercisable for capital stock prohibited by (i) or (ii), (v) amend this Certificate of Designations or (vi) enter into any merger or reorganization, or disposal of assets involving 20% of the total capitalization of the Company.

 

Subject to the rights of the holders of any other series of preferred stock ranking senior to or on a parity with the Series A Preferred Stock with respect to liquidation and any other class or series of capital stock of the Company ranking senior to or on a parity with the Series A Preferred Stock with respect to liquidation, in the event of any liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, the holders of record of the issued and outstanding shares of Series A Preferred Stock shall be entitled to receive, out of the assets of the Company available for distribution to the holders of shares of Series A Preferred Stock, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock and any other series of preferred stock ranking junior to the Series A Preferred Stock with respect to liquidation.

 

The holders of the Series A Preferred Stock shall not be entitled to receive dividends per share of Series A Preferred Stock. The Company shall have no rights to redeem Series A Preferred Stock.

 

COMMON STOCK

 

On June 26, 2017, the Company issued 1,400,000 shares of common stock for gross proceeds of $14,000, which was received during the year ended April 30, 2017.

 

On June 27, 2017, the Company issued 10,000,000 shares of common stock with a fair value of $1,900,000 for BitReturn pursuant to a Definitive Acquisition Agreement (refer to Note 10).

 

On July 1, 2017, the Company issued 1,000,000 shares of common stock with a fair value of $260,000 for investor relations services pursuant to a Strategic Management and Advisory Agreement (refer to Note 11).

 

On July 26, 2017, the Company issued 2,500,000 shares of common stock with a fair value of $400,000 as signing bonuses pursuant to service agreements and the $400,000 fair value was expensed and included in consulting fees.

 

On January 16, 2018, the Company issued 3,200,000 shares of common stock pursuant to the Share Purchase Agreement with an unrelated third party. Under the terms of the Agreement, the Company will purchase all the issued ordinary shares of the unrelated third party from its shareholders, thereby acquiring all the intellectual property, research and development, contracts, accounts receivable and licenses owned by the unrelated third party. In exchange, the Company will issue 3,200,000 shares of its common stock to the unrelated third party’s shareholders. The Agreement will not close and the acquisition will not be complete until the Company receives the source code and software to the unrelated third party’s intellectual property for all of the unrelated third party’s programs, platforms and products and these assets have been independently verified. Additionally, if the shares issued to the unrelated third party shareholders do not have an aggregate value of $2,000,000 by January 15, 2019, the unrelated third party shareholders are entitled to have additional shares issued to them so that they hold shares equal to $2,000,000 as of that date. As the Company has not received the source code and software relating to the intellectual property, the Agreement was terminated, and the 3,200,000 common shares were cancelled on May 23, 2018.

 

On May 24, 2018, the Company issued 2,600,000 shares of common stock to settle the $130,000 of principal and $6,500 owed under the loan agreement described in Note 8(c).

 

On July 9, 2018, the Company entered into a Settlement and General Release Agreement pursuant to which the Company would issue an employee 6,000,000 shares of common stock in exchange for release from the Employment Agreement described in Note 11(d). The fair value of the shares on the date of settlement of $420,000 was accrued at July 31, 2018 as shares issuable.

 

As at July 31, 2018, 50,000,000 shares of common stock are held in treasury.

 

As at July 31, 2018, there are 166,073,296 shares of common stock issued and 116,073,296 shares of common stock outstanding.

 

PREFERRED STOCK - SERIES A

 

As at July 31, 2018, there are no issued and outstanding Series A Preferred Stock.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
SHARE PURCHASE WARRANTS
3 Months Ended
Jul. 31, 2018
Share Purchase Warrants  
SHARE PURCHASE WARRANTS <p style="margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>13. SHARE PURCHASE WARRANTS</b></font></p> <p style="margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p> <p style="margin: 0pt 0"></p> <p style="text-align: justify; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The following table summarizes the continuity of share purchase warrants:</font></p> <p style="text-align: justify; margin: 0pt 0"></p> <table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt"> <tr style="font-size: 1pt"> <td style="width: 45%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 24%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Number of </b><br /><b>warrants</b></font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td colspan="2" style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted average</b><br /><b>exercise price $</b></font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom; background-color: #e6e6e6"> <td><font style="font: 10pt Times New Roman, Times, Serif">Balance, April 30, 2018</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">93,455,454</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$ 0.10</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 12px"><font style="font: 10pt Times New Roman, Times, Serif">Issued</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom; background-color: #e6e6e6"> <td><font style="font: 10pt Times New Roman, Times, Serif">Balance, July 31, 2018</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">93,455,454</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 3px double"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 3px double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$ 0.10</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> </table> <p style="text-align: justify; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p> <p style="margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">As at July 31, 2018, the following share purchase warrants were outstanding:</font></p> <p style="margin: 0pt 0"></p> <table cellspacing="0" cellpadding="0" style="margin-top: 0px; font-size: 10pt"> <tr style="font-size: 1pt"> <td style="width: 38%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 7%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 25%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 7%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: #000000 1px solid"><font style="font: 10pt Times New Roman, Times, Serif"><b>Expiry date</b></font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Number of</b><br /><b>warrants</b></font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Exercise</b><br /><b>price $</b></font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="background-color: #e6e6e6"> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">May 27, 2022</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,894,737</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$ 0.042</font></td> <td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">*</font></td></tr> <tr> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">March 29, 2023</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">560,717</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$ 0.10</font></td> <td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="background-color: #e6e6e6"> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">April 5, 2023</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">85,000,000</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$ 0.10</font></td> <td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="border-bottom: #000000 3px double; vertical-align: bottom; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">93,455,454</font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> </table> <p style="margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">__________</font></p> <p style="margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> *The lower of $0.10 and 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days.</font></p> <p style="text-align: justify; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="text-align: justify; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The weighted average remaining life of the warrants outstanding as at July 31, 2018 is 4.61 years. </font></p>
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
SUBSEQUENT EVENTS
3 Months Ended
Jul. 31, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

14. SUBSEQUENT EVENT

 

On September 30, 2018, the Company entered into a Share Purchase Agreement with Black Cactus Global Technologies Pvt. Limited (“BCGT”). Under the terms of the Agreement, the Company will purchase 29% of the issued and outstanding common shares of BCGT as at the date of the Agreement (2,900 common shares) for a purchase price of $44 (denominated as 2,900 Indian Rupees). In exchange, the Company will continue to work together with BCGT to develop blockchain and related technology services. The Agreement will not close until the Company receives the share certificates and has made payment of the 2,900 Indian Rupees purchase price.

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Jul. 31, 2018
Accounting Policies [Abstract]  
BASIS OF PRESENTATION

BASIS OF PRESENTATION

 

These unaudited financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and are expressed in United States dollars. The Company’s fiscal year-end is April 30.

 

These interim unaudited financial statements have been prepared in accordance with US GAAP for interim financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all of the information and footnotes required by US GAAP to complete financial statements. Therefore, these interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended April 30, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC.

 

The financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position at July 31, 2018, and the results of its operations and cash flows for the three months ended July 31, 2018. The results of operations for the period ended July 31, 2018 are not necessarily indicative of the results to be expected for future quarters or the full year.

 

The significant accounting policies followed are:

USE OF ESTIMATES

USE OF ESTIMATES

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates related to fair value measurements, stock-based compensation and deferred income tax asset valuation allowance. Actual results could differ from those estimates.

FOREIGN CURRENCY TRANSLATION

FOREIGN CURRENCY TRANSLATION

 

The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

 

ASC 825, “Financial Instruments”, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 825 prioritizes the inputs into three levels that may be used to measure fair value:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The financial instruments consist principally of cash and cash equivalents, accounts payable, advances payable, due to related party, loans payable and convertible debentures. The fair value of cash and cash equivalents when applicable is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Derivative liabilities are determined based on “Level 2” inputs, which are significant and observable. The Company believes that the recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

 

Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as of July 31, 2018 and April 30, 2018:

 

           
  Fair Value Measurements Using    
  Quoted Prices in Significant      
  Active Markets Other Significant    
  For Identical Observable Unobservable Balance as of Balance as of
  Instruments Inputs Inputs July 31, April 30,
  (Level 1) (Level 2) (Level 3) 2018 2018
Assets:          
Cash and cash equivalents $   41,751 $        — $        — $   41,751 $      252

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

 

All cash investments with an original maturity of three months or less are considered to be cash equivalents.

INCOME TAXES

INCOME TAXES

 

The Company accounts for income taxes under ASC 740 “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

 

The Company has implemented all new mandatory accounting pronouncements that are in effect and there has been no significant impact on its financial statements. The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES (Tables)
3 Months Ended
Jul. 31, 2018
Accounting Policies [Abstract]  
Schedule of assets measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s balance sheet as of July 31, 2018 and April 30, 2018:

 

           
  Fair Value Measurements Using    
  Quoted Prices in Significant      
  Active Markets Other Significant    
  For Identical Observable Unobservable Balance as of Balance as of
  Instruments Inputs Inputs July 31, April 30,
  (Level 1) (Level 2) (Level 3) 2018 2018
Assets:          
Cash and cash equivalents $   41,751 $        — $        — $   41,751 $      252
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
SHARE PURCHASE WARRANTS (Tables)
3 Months Ended
Jul. 31, 2018
Share Purchase Warrants Tables Abstract  
Schedule of share purchase warrants

The following table summarizes the continuity of share purchase warrants:

             
    Number of
warrants
  Weighted average
exercise price $
 
           
Balance, April 30, 2018   93,455,454     $ 0.10  
Issued        
Balance, July 31, 2018   93,455,454     $ 0.10  
Schedule of share purchase warrants were outstanding

As at July 31, 2018, the following share purchase warrants were outstanding:

 

           
Expiry date   Number of
warrants
  Exercise
price $
 
           
May 27, 2022   7,894,737   $ 0.042 *
March 29, 2023   560,717   $ 0.10  
April 5, 2023   85,000,000   $ 0.10  
    93,455,454      

__________

 

*The lower of $0.10 and 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days.

XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOING CONCERN (Details Narrative) - USD ($)
3 Months Ended
Jul. 31, 2018
Apr. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Working capital deficit $ 630,120  
Accumulated deficit $ (6,887,964) $ (6,190,876)
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES (Details) - Recurring Basic [Member] - USD ($)
Jul. 31, 2018
Apr. 30, 2018
Assets:    
Cash and cash equivalents $ 41,751 $ 252
Quoted Prices in Active Markets For Identical Instruments (Level 1) [Member]    
Assets:    
Cash and cash equivalents 41,751  
Significant Other Observable Inputs (Level 2) [Member]    
Assets:    
Cash and cash equivalents  
Significant Unobservable Inputs (Level 3) [Member]    
Assets:    
Cash and cash equivalents  
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
FINANCIAL RISK FACTORS (Details Narrative) - USD ($)
Jul. 31, 2018
Apr. 30, 2018
Jul. 31, 2017
Apr. 30, 2017
Financial Risk Factors Details Narrative Abstract        
Cash balance $ 41,751 $ 252 $ 5,558 $ 3
Current liabilities $ 916,183      
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
EQUIPMENT (Details Narrative) - USD ($)
3 Months Ended
Jun. 22, 2017
Jul. 31, 2018
Jul. 31, 2017
Property, Plant and Equipment [Abstract]      
Purchased equipment $ 364,590 $ 364,590
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($)
Jul. 31, 2018
Apr. 30, 2018
Jun. 22, 2017
Related Party Transaction [Line Items]      
Due from related parties $ 169,729 $ 327,541  
Secured Loan Due on August 31, 2017 | CAD [Member]      
Related Party Transaction [Line Items]      
Face amount     $ 450,000
Majority Shareholder [Member]      
Related Party Transaction [Line Items]      
Due to related party $ 169,729 $ 327,541  
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
LOANS PAYABLE (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
May 24, 2018
Jul. 31, 2018
Jul. 31, 2017
Apr. 30, 2018
Apr. 30, 2017
Feb. 14, 2018
Sep. 30, 2017
Jul. 15, 2016
Proceeds from loan payable   $ 360,935          
Loans payable   38,576            
Accretion of loan discounts   (851) (1,021)          
Loss on settlement of debt   201,500          
Loan Agreement [Member]                
Principal balance           $ 25,000 $ 130,000 $ 50,000
Proceeds from loan payable   54,716            
Unamortized discount   6,836            
Repayment of principal $ 130,000     $ 5,000 $ 10,600      
Accretion of loan discounts   851   3,918 $ 2,067      
Number of shares issued (in shares) 2,600,000              
Fair value of share issued   338,000            
Debt interest rate           10.00% 10.00%  
Debt interest $ 6,500              
Loss on settlement of debt   201,500            
Loans Payable [Member]                
Loans payable   $ 500   $ 500        
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
CONVERTIBLE DEBENTURES (Details Narrative) - USD ($)
3 Months Ended
Apr. 13, 2018
Nov. 27, 2017
Jul. 31, 2018
Jun. 01, 2018
Apr. 30, 2018
Apr. 30, 2017
Warrants [Member]            
Exercise price of warrants (in dollars per share)     $ 0.10   $ 0.10  
Convertible Note [Member]            
Principal amount     $ 65,619 $ 210,527    
Purchase price of note       200,000    
Debt instrument, discount       10,527    
Debt financing costs     20,000      
Legal fees on notes issued     26,316      
Additional debt issuance costs       20,000    
Debt issuance costs, net       $ 30,527    
Debt instrument, interest rate (in percent)       5.00%    
Beneficial conversion feature     144,908      
Carrying value of convertible debt     35,092      
Accretion of discount     12,646      
Increase in carrying amount of loan     47,738      
Accrued interest     1,754      
Bellridge Capital L.P. [Member]            
Number of warrants issued (in shares)   7,894,737        
Exercise price of warrants (in dollars per share)   $ 0.1        
Description of warrants issued   <p><font style="font: 10pt Times New Roman, Times, Serif">Term of six months at an exercise price equal to the lesser of (i) $0.10 per share and (ii) 70% of the lowest traded price of the Company’s common stock during the prior twenty consecutive trading days.</font></p>        
Warrants term (in years)   6 months        
Bellridge Capital L.P. [Member] | Warrants [Member]            
Principal amount   $ 284,751        
Purchase price of note   140,733        
Bellridge Capital L.P. [Member] | Shares [Member]            
Principal amount   100,832        
Purchase price of note   425,484        
Bellridge Capital L.P. [Member] | Convertible Note [Member]            
Principal amount   140,733        
Debt instrument, discount   $ 26,316        
Conversion price (in dollars per share)   $ 0.063        
Debt issuance costs, net   $ 60,000        
Beneficial conversion feature   54,417        
Carrying value of convertible debt   $ 0        
Effective conversion price (in dollars per share)   $ 0.063        
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member]            
Accretion of discount     72,999      
Increase in carrying amount of loan     109,009      
Accrued interest     $ 17,087   $ 10,454 $ 0
Description of debt instrument     <p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The first three tranches were the $1,000,000 in the form of the Notes above. The next and final tranche of $500,000 will be funded upon the effectiveness of the registration statement that the Company expects to file covering the shares of common stock issuable upon conversion of the Notes.</font></p>      
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member] | Warrants [Member]            
Debt instrument, discount $ 15,790          
Conversion price (in dollars per share) $ 0.001          
Debt issuance costs, net $ 35,000          
Number of warrants issued (in shares) 85,000,000          
Exercise price of warrants (in dollars per share) $ 0.10          
Beneficial conversion feature $ 6,208          
Carrying value of convertible debt 56,998          
Accretion of discount     $ 24,440      
Accrued interest     7,133   1,524  
Fair values of convertible note 6,208          
Fair values of warrant 118          
Fair value of share issued $ 258,674          
Effective conversion price (in dollars per share) $ 0.001          
Increasing the carrying value of debt     $ 33,221      
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member] | Warrants [Member] | 5% Senior Secured Convertible Promissory Note Due December 20, 2018 [Member]            
Principal amount $ 315,790          
Purchase price of note 295,000          
Debt instrument, discount 15,790          
Legal fees on notes issued 5,000          
Additional debt issuance costs 30,000          
Debt issuance costs, net $ 50,672          
Number of warrants issued (in shares) 560,717          
Exercise price of warrants (in dollars per share) $ 0.10          
Debt conversion, description <p style="margin-top: 0pt; margin-bottom: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Common Stock at a conversion price equal to the lesser of (i) $0.10 and (ii) 70% of the lowest traded market price in the 20 consecutive trading days prior to the conversion date.</font></p>          
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member] | Minimum [Member]            
Principal amount         500,000  
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member] | Maximum [Member]            
Principal amount         $ 1,500,000  
Bellridge Capital L.P. [Member] | Securities Purchase Agreement [Member] | Senior Secured Convertible Promissory Note [Member]            
Principal amount   $ 526,316        
Purchase price of note   500,000        
Debt instrument, discount   26,316        
Legal fees on notes issued   10,000        
Additional debt issuance costs   50,000        
Debt issuance costs, net   $ 86,316        
Number of shares issued (in shares)   2,793,296        
Debt instrument, interest rate (in percent)   5.00%        
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
PRODUCT DEVELOPMENT AND WEBSITE COSTS (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Jul. 31, 2018
Apr. 30, 2018
Amount payable to BitReturn $ 350,000 $ 350,000
BitReturn Agreement [Member]    
Cash payments under agreement $ 350,000 $ 350,000
BitReturn Agreement [Member] | Restricted Stock [Member]    
Number of shares issued (in shares) 10,000,000  
Value of shares issued $ 1,900,000  
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMMITMENTS (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Jul. 09, 2018
Feb. 14, 2018
Nov. 08, 2017
Jul. 26, 2017
Jan. 04, 2017
Jul. 31, 2018
Jul. 31, 2017
Apr. 30, 2018
Consulting fees           $ 106,470 $ 27,394  
Warrants [Member]                
Exercise price of warrants (in dollars per share)           $ 0.10   $ 0.10
Strategic Management and Advisory Agreement [Member]                
Number of shares issued (in shares)       1,000,000        
Value of shares issued       $ 260,000        
Consulting expense       $ 3,000   $ 43,333 $ 20,833  
Equity Research Service Agreement [Member]                
Number of shares issued (in shares)         150,000      
Consulting expense         $ 57,000 14,250    
Financial Advisor Agreement [Member]                
Consulting fees     $ 20,000          
Percentage of cash fee under debt financing cost (in percent)     10.00%          
Debt financing costs           $ 20,000   $ 100,000
Financial Advisor Agreement [Member] | Warrants [Member]                
Number of warrants issued (in shares)               560,717
Exercise price of warrants (in dollars per share)               $ 0.10
Employment Agreement [Member]                
Number of shares issued (in shares)   8,000,000            
Agreement term   3 years            
Employment Agreement [Member] | United Kingdom, Pounds                
Value of shares issued   $ 250,000            
Settlement and General Release Agreement [Member] | Employee [Member]                
Number of shares issued (in shares) 6,000,000              
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Jul. 09, 2018
May 24, 2018
Jan. 16, 2018
Nov. 13, 2017
Jul. 26, 2017
Jul. 01, 2017
Jun. 27, 2017
Jul. 31, 2018
Apr. 30, 2017
Apr. 30, 2018
Jan. 31, 2018
Jun. 26, 2017
Common shares, authorized pre amendment (in shares)       240,000,000           240,000,000    
Common shares, authorized post amendment (in shares)       490,000,000       490,000,000   490,000,000    
Common shares, par value (in dollars per share)       $ 0.0001       $ 0.0001   $ 0.0001    
Preferred stock, authorized (in shares)       10,000,000       10,000,000   10,000,000    
Preferred stock, par value (in dollars per share)       $ 0.0001       $ 0.0001   $ 0.0001    
Common stock, issued (in shares)               166,073,296   166,673,296    
Common stock, outstanding (in shares)               116,073,296   113,473,296    
Common stock are held in treasury               50,000,000   53,200,000    
BitReturn Agreement [Member]                        
Proceeds from common stock             $ 1,900,000          
Strategic Management and Advisory Agreement [Member]                        
Proceeds from common stock           $ 260,000            
Number of shares issued (in shares)         1,000,000              
Value of shares issued         $ 260,000              
Services agreements [Member]                        
Proceeds from common stock         $ 400,000              
Share Purchase Agreement [Member]                        
Number of shares issued (in shares)     3,200,000                  
Description of shares issued to unrelated party     <p><font style="font: 10pt Times New Roman, Times, Serif">If the shares issued to the unrelated third party shareholders do not have an aggregate value of $2,000,000 by January 15, 2019, the unrelated third party shareholders are entitled to have additional shares issued to them so that they hold shares equal to $2,000,000 as of that date.</font></p>                  
Common stock held by the company (in shares)                     3,200,000  
Loan Agreement [Member]                        
Number of shares issued (in shares)   2,600,000                    
Value of shares issued               $ 338,000        
Accrued interest   $ 6,500                    
General Release Agreement [Member]                        
Number of shares issued (in shares) 6,000,000                      
Accrued interest               $ 420,000        
Common Stock [Member]                        
Proceeds from common stock                 $ 14,000      
Common stock, issued (in shares)         2,500,000 1,000,000 10,000,000         1,400,000
Treasury [Member]                        
Common stock are held in treasury                   53,200,000    
Series A Preferred Stock [Member]                        
Preferred stock, authorized (in shares)       10,000       10,000   10,000    
Preferred stock, authorized but unissued shares (in shares)       10,000                
Description of voting rights       <p><font style="font: 10pt Times New Roman, Times, Serif">Aggregate voting power of 45% of the combined voting power of the entire Company’s shares, common stock and preferred stock, as long as the Company is in existence.</font></p>                
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
SHARE PURCHASE WARRANTS (Details) - Warrants [Member]
3 Months Ended
Jul. 31, 2018
$ / shares
shares
Class of Warrant or Right Number of Warrants [Roll Forward]  
Balance, beginning | shares 93,455,454
Issued | shares
Balance, end | shares 93,455,454
Class of Warrant or Right Weighted Average Exercise Price [Roll Forward]  
Balance, beginning | $ / shares $ 0.10
Issued | $ / shares
Balance, end | $ / shares $ 0.10
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
SHARE PURCHASE WARRANTS (Details 1) - $ / shares
Jul. 31, 2018
Apr. 30, 2018
Warrants May 27, 2022 [Member]    
Class of Warrant or Right [Line Items]    
Number of warrants 7,894,737  
Exercise price [1] $ 0.042  
Warrants March 29, 2023 [Member]    
Class of Warrant or Right [Line Items]    
Number of warrants 560,717  
Exercise price $ 0.10  
Warrants April 5, 2023 [Member]    
Class of Warrant or Right [Line Items]    
Number of warrants 85,000,000  
Exercise price $ 0.10  
Warrants [Member]    
Class of Warrant or Right [Line Items]    
Number of warrants 93,455,454 93,455,454
Exercise price $ 0.10 $ 0.10
[1] The lower of $0.10 and 70% of the lowest traded price of the Company's common stock during the prior twenty consecutive trading days.
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
SHARE PURCHASE WARRANTS (Details Narrative)
3 Months Ended
Jul. 31, 2018
Share Purchase Warrants Details Abstract  
Weighted average remaining life 4 years 7 months 10 days
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
SUBSEQUENT EVENT (Details Narrative) - Sep. 30, 2018 - Black Cactus Global Technologies [Member] - Share Purchase Agreement [Member]
USD ($)
INR (₨)
Purechase of issued and outstanding 29.00%  
Agreement of common share $ 2,900  
Purchase price $ 44  
India, Rupees    
Purchase price | ₨   ₨ 2,900
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