NOTES PAYABLE AND DERIVATIVES

9 Months Ended

Jan. 31, 2024

Debt Disclosure [Abstract]

NOTES PAYABLE AND DERIVATIVES

NOTE C – NOTES PAYABLE AND DERIVATIVES

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

Notes Payable	January 31, 2024		April 30, 2023
Notes convertible at holder’s option	$	2,735,697	$	2,103,256
Notes convertible at Company’s option		335,700		335,700
Non-convertible notes payable		2,438,308		2,659,519
Subtotal		5,509,705		5,098,475
Total	$	5,509,705	$	5,098,475

The balance of accrued interest of the above notes as of January 31, 2024, and April 30, 2023, were 1,642,104 and $1,595,624, respectively, an increase of $46,480 primarily due to interest expenses on notes accrued.

Certain notes payable contains 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 are embedded derivatives related to the outstanding short-term Convertible Notes Payable. These embedded derivatives included 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, including 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 products is lower at the subsequent balance sheet date, the Company will record non-operating, non-cash income. These Notes are subject to a six-year Statute of Limitations in which to bring any potential claims.

The change in fair value of the derivative liabilities on January 31, 2024, 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
Expected life in years	Ranging from	0.25 to 3.0 Years

Changes in derivative liability during the three months ended January 31, 2024, and 2023 were:

	January 31,			January 31,
	2024			2023
Balance, beginning of year	$	1,375,767		$	9,549,640
Derivative liability extinguished		(260,425	)		(336,418	)
Derivative financial liability arising on the issuance of convertible notes and warrants					-
Fair value adjustments		(82,515	)		(4,168,344	)
Balance, end of period	$	1,032,827		$	4,504,762