NOTES PAYABLE AND DERIVATIVES

3 Months Ended

Jul. 31, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE AND DERIVATIVES

NOTE C – NOTES PAYABLE AND DERIVATIVES

The Company has outstanding numerous notes payable to various parties. The notes bear interest at rates of 5% - 20% per year and are summarized as follows:

Notes Payable	July 31, 2023		April 30, 2023
Notes convertible at holder’s option	$	2,485,832	$	3,112,734
Notes convertible at Company’s option		335,700		335,700
Non-convertible notes payable		2,341,519		1,861,650
Subtotal		5,163,051		5,310,084
Debt discount
Total	$	5,163,051	$	5,310,084

Certain of the notes payable contain variable conversion rates and the conversion features are classified as derivative liabilities. The conversion prices are based on the market price of the Company’s common stock, at discounts of 30% - 48% to market value.

The Company’s derivative financial instruments consist of embedded derivatives related to the outstanding short term Convertible Notes Payable. These embedded derivatives include certain conversion features indexed to the Company’s common stock. The accounting treatment of derivative financial instruments requires that the Company record the derivatives and related items at their fair values as of the inception date of the Convertible Notes Payable and at fair value as of each subsequent balance sheet date. In addition, under the provisions of Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity’s Own Equity (“ASC 815-40”), as a result of entering into the Convertible Notes Payable, the Company is required to classify all other non-employee stock options and warrants as derivative liabilities and mark them to market at each reporting date. Any change in fair value inclusive of modifications of terms will be recorded as non-operating, non-cash income or expense at each reporting date. If the fair value of the derivatives is higher at the subsequent balance sheet date, the Company will record a non-operating, non-cash charge. If the fair value of the derivatives is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income.

The change in fair value of the derivative liabilities at July 31, 2023 was calculated with the following average assumptions, using a Black-Scholes option pricing model are as follows:

Significant Assumptions:
Risk free interest rate	Ranging from	0.16% to 0.2	%
Expected stock price volatility	Ranging from	155 to 270	%
Expected dividend payout		0
Expected life in years	Ranging from	0.25 to 3.0 Years

Changes in derivative liability during the three months ended July 31, 2023 and 2022 were:

	July 31,
	2023			2022
Balance, beginning of year	$	1,375,767		$	9,549,640
Derivative liability extinguished		(76,144	)		(54,586	)
Derivative financial liability arising on the issuance of convertible notes and warrants					-
Fair value adjustments		(77,135	)		(1,621,272	)
Balance, end of period		1,222,488		$	7,873,782