COVERTIBLE NOTE PAYABLE

6 Months Ended

Oct. 31, 2022

COVERTIBLE NOTE PAYABLE

COVERTIBLE NOTE PAYABLE

NOTE 7 - COVERTIBLE NOTE PAYABLE

Convertible note payable at October 31, 2022 and April 30, 2022, consists of the following:

	October 31, 2022		April 30, 2022
Dated June 16, 2021	$	245,000	$	265,000
Dated September 8, 2021		168,000		168,000
Total convertible notes payable, gross		413,000		433,000
Less: Unamortized debt discount		-		(15,480	)
Total convertible notes	$	413,000	$	417,520

On June 16, 2021, the Company issued a $280,000 Original Issue Discounted Convertible Promissory Note for a purchase price of $250,000, convertible at a fixed rate of $1 per share. The note has a payment term of nine months for expiry date of March 16, 2022, and bears interest at 9% per annum. Additionally, the Company issued to the investor 280,000 three-year warrants to purchase the Company’s common stock at an exercise price of $1.25 per share. On January 31, 2022, the Company issued 15,000 shares of common stock for the conversion of convertible note principal of $15,000 at a fixed conversion rate of $1 per share. On April 28, 2022, an agreement was reached for the extension of the expiry date to October 16, 2022 and reduction of the note conversion rate from $1 per share to $0.15 per share. On May 5, 2022, the Company reduced the warrants exercise price of the attached warrants from $1.25 per share to $0.15 per share. The Company assessed the note and warrant amendment for a debt extinguishment or modification in accordance with ASC 470-50. As the change in fair value of the convertible notes from the note amendment resulted in a less than 5% change in present value of cash flows as compared to the original convertible notes, the note amendment is regarded as a note modification, and no incremental expense was noted. On May 25, 2022, the Company issued 280,000 shares of common stock through the exercise of warrant shares from the convertible note of $280,000 issued on June 16, 2021, for proceeds of $42,000. On October 28, 2022, the Company issued 133,333 shares of common stock for the conversion of convertible note principal of $20,000 at a fixed conversion rate of $0.15 per share.  As of October 31, 2022 and April 30, 2022, the convertible note was $245,000 and $265,000, respectively.

On September 8, 2021, the Company issued a $168,000 Original Issue Discounted Convertible Promissory Note for a purchase price of $147,000, convertible at a fixed rate of $1 per share. The note has a payment term of nine months for expiry date of June 8, 2022, and bears interest at 9% per annum. Additionally, the Company issued to the investor 168,000 three-year warrants to purchase the Company’s common stock at an exercise price of $1.25 per share. On September 8, 2021, the Company recorded total debt discount of $117,393 comprising original issue discount of $21,000 and discount from warrants of $96,393. On April 28, 2022, an agreement was reached for the extension of the expiry date to November 8, 2022 and reduced the note conversion rate from $1 per share to $0.15 per share. The Company assessed the note amendment for a debt extinguishment or modification in accordance with ASC 470-50. As the change in fair value of the convertible notes from the note amendment fell below 10% of the carrying value of the original convertible notes, the note amendment is regarded as a note modification. During the six months ended October 31, 2022 and 2021, the Company recorded amortization of debt discount of $15,480 and $0 reporting under interest expense in the statements of operations, respectively. As of October 31, 2022, the debt discount was fully amortized. As of October 31, 2022 and April 30, 2022, the convertible note was $168,000 and $152,519, net of note discount of $0 and $15,480 respectively.

During the six months ended October 31, 2022 and 2021, the Company recorded interest expense of $19,631 and $11,654, respectively. As of October 31, 2022 and April 30, 2022, the accrued interest payable was $50,935 and 31,304, respectively.

As of October 31, 2022 and April 30, 2022, the convertible note payable was $413,000 and $417,520, net of debt discount of $0 and $15,480, respectively.