Convertible Notes Payable

6 Months Ended

Oct. 31, 2018

Debt Disclosure [Abstract]

Convertible Notes Payable

NOTE 10 - CONVERTIBLE NOTES PAYABLE

Convertible notes payable consisted of the following as of October 31, 2018 and April 30, 2018:

Issuance Date	Maturity Date	Conversion Price (per share)		July 31, 2018			April 30, 2018
September 2017	March 2018	$	0.005	$	15,000		$	15,000
October 2017	October 2022	$	0.15		50,000			50,000
November 2017	November 2018		Variable		-			50,000
November 2017	May 2018	$	0.0025		5,000			5,000
December 2017	September 2018		Variable		-			100,000
January 2018	January 2019	$	0.0025		250,000			250,000
February 2018	February 2019	$	0.0025		250,000			250,000
March 2018	March 2019	$	0.01		250,000			250,000
April 2018	April 2019	$	0.01		100,000			100,000
Total convertible notes payable					920,000			1,070,000
Less: debt discount and deferred financing fees					(302,814	)		(816,825	)
					617,186			253,175
Less: current portion of convertible notes payable					606,575			247,602
Long-term convertible notes payable				$	10,611		$	5,573

All the Company’s convertible notes are convertible, at the option of the holder, into shares of the Company’s common stock. As indicated above, certain of the Company’s convertible notes are convertible at a variable conversion price, a conversion price based on the market price for Company’s common stock. Borrowings on all the Company’s convertible notes bear interest at the annual rate of 12%.

On June 29, 2018 the Company paid $143,211 (including accrued but unpaid interest of $6,477) to settle in full a convertible note in the principal amount of $100,000. In connection therewith, the Company recorded prepayment penalties of $36,734 and recognized a gain of $121,823 resulting from the change in the fair value of this derivative liability, in connection with this transaction.

On September 12, 2018, the Company paid $54,997 (including accrued but unpaid interest of $4,997) to settle in full a convertible note in the principal amount of $50,000. In connection therewith, the Company recognized a gain of $34,771 resulting from the change in the fair value of this derivative liability, in connection with this transaction.

On October 31, 2018 the Company paid $433,503 (including accrued but unpaid interest of $15,802) to settle in full two convertible notes in the aggregate principal amount of $331,000. In connection therewith, the Company recorded prepayment penalties of $86,701 and recognized a gain of $681,909 resulting from the change in the fair value of the related derivative liabilities, in connection with our prepayment.

At October 31, 2018, convertible notes payable consisted of notes in the aggregate amount of $870,000 held by RB Capital Partners, Inc. and a note of $50,000 held by another lender. In the six months ended October 31, 2018 and the period from May 5, 2017 (inception) to October 31, 2017, the Company recognized amortization expense related to the debt discount and deferred financing fees of $845,011 and $90,509, respectively, which is included in interest expense in our consolidated statements of operations.

During the three months ended October 31, 2018 and 2017, total interest expense was $634,346 and $96,586, respectively, including amortization of debt discount of $509,711 and $67,539, respectively. During the six months ended October 31, 2018 and the period from May 5, 2017 (inception) to October 31, 2017, total interest expense was $1,045,251 and $123,195, respectively, including amortization of debt discount of $845,011 and $90,509, respectively.