UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended July 31, 2023

 

Commission File Number: 333-183239

 

CROWN BAUS CAPITAL CORP

(Exact Name of Registrant as Specified in its Charter)

 

Nevada

 

99-0373498

(State or other jurisdiction of incorporation or organization)

 

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

 

Suite 204-2383 King George Blvd

Surrey, BC V4A5A4 Canada

(Address of principal executive offices)

 

(855) 305-9945

(Issuer's telephone number)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $.0001

CBCA

Expert Markets OTC Markets

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 ☒  No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒  No ☐

 

Larger accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☒

 

 

Emerging growth company

☐

 

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 registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of October 5, 2023, the Company had 161,050,000 shares of common stock of the registrant outstanding.

 

 

 

 

CROWN BAUS CAPITAL CORP

Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2023

 

Table of Contents

 

Part I – FINANCIAL INFORMATION

 

Item 1.

Unaudited Condensed Financial Statements.

4

 

Condensed Balance Sheets

4

 

Condensed Statement of Operations

5

 

Condensed Statement of Cash Flows

6

 

Statement of Stockholders’ Deficit

7

Notes to Condensed Financial Statements

8

 

Item 2.

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

15

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

18

 

Item 4.

Controls and Procedures.

18

 

PART II – OTHER INFORMATION

 

Item 1.

Legal Proceedings.

19

 

Item 1A.

Risk Factors.

19

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

19

 

Item 3.

Defaults Upon Senior Securities.

19

 

Item 4.

Mine Safety Disclosures.

19

 

Item 5.

Other Information.

19

 

Item 6.

Exhibits.

20

 

Signatures

 

21

 

 
2

Table of Contents

  

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

 

Information included or incorporated by reference in this Report contains forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology. Among the material risks which may impact Forward Looking Statements are the following: the risk that we are unsuccessful in obtaining additional capital through the private sale of common shares, debt and/or convertible debt on commercially reasonable terms and which we require in order to fund the Company’s business; the risk that we are unsuccessful in growing and developing our business, and the risk that our business does not perform to expectations, or does not operate profitably. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by the Company. The reader is cautioned that no statements contained in this Report should be construed as a guarantee or assurance of future performance or results. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks described in this report and matters described in this report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. These forward-looking statements are based on current expectations, and the Company assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in this Report and in the Company's other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of certain of the risks and factors that may affect the Company's business.

 

 
3

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PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

CROWN BAUS CAPITAL CORP

CONDENSED BALANCE SHEETS

(unaudited)

 

 

 

July 31,

2023

 

 

April 30,

2023

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash

 

$5,915

 

 

$5,351

 

Prepaid expenses

 

 

-

 

 

 

1,275

 

Total Current Assets

 

 

5,915

 

 

 

6,626

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

 

 

 

Investment

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$5,915

 

 

$6,626

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$5,556

 

 

$10,031

 

Notes payable

 

 

-

 

 

 

-

 

Convertible notes payable – non-affiliates

 

 

240,132

 

 

 

220,251

 

Notes payable stockholders’

 

 

17,190

 

 

 

17,190

 

Total Liabilities

 

 

262,878

 

 

 

247,472

 

STOCKHOLDERS’ DEFICIT:

 

 

 

 

 

 

 

 

Preferred  stock, $0.001 par value; 80,000 and 0 shares authorized; issued and outstanding 0 and 0, respectively

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 199,920,000 and 200,000,000 shares authorized; issued and outstanding 161,050,000 and 161,050,000, respectively

 

 

161,050

 

 

 

161,050

 

Additional paid in capital

 

 

46,675,911

 

 

 

46,675,911

 

Cancellation receivable

 

 

(21,050 )

 

 

(21,050 )

Stock subscription

 

 

7,220

 

 

 

7,220

 

Deficit accumulated during development stage

 

 

(47,080,094)

 

 

(47,063,977)

Total Stockholders’ Deficit

 

 

(256,963 )

 

 

(240,846 )

Total Liabilities and Stockholders’ Deficit

 

$5,915

 

 

$6,626

 

 

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

 

 
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CROWN BAUS CAPITAL CORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited) 

 

 

 

Three Months Ended

 July 31.

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

REVENUES

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

1,977

 

 

 

-

 

Professional fees

 

 

11,500

 

 

 

 

 

General and administrative

 

 

2,634

 

 

 

-

 

Total Operating Expenses

 

 

16,111

 

 

 

-

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(16,111)

 

 

-

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

Debt settlement

 

 

-

 

 

 

-

 

Interest expense – other

 

 

(6)

 

 

-

 

Total Other Income (Expense)

 

 

(6)

 

 

-

 

 

 

 

 

 

 

 

 

 

NET LOSS BEFORE PROVISION FOR INCOME TAXES

 

 

(16,117)

 

 

-

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAX (BENEFIT)

 

 

-

 

 

 

-

 

COMPREHENSIVE GAIN (LOSS)

 

$(16,117)

 

$-

 

 

 

 

 

 

 

 

 

 

Basic Per Share Data:

 

 

 

 

 

 

 

 

Net Gain (Loss) Per Share – basic

 

$0.00

 

 

$0.00

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

161,050,000

 

 

 

161,050,000

 

 

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

 

 
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CROWN BAUS CAPITAL CORP

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three Months Ended

 July 31,

 

 

 

2023

 

 

2022

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net gain (loss)

 

$(16,117)

 

 

 

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

 

 

 

 

 

 

 

(Gain) loss on debt settlement

 

 

 

 

 

 

 

Stock issued for services

 

 

 

 

 

 

 

Forgiven debt and accrued interest

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

     Prepaid consulting

 

 

1,275

 

 

 

 

Accounts payable and accrued expenses

 

 

(4,475)

 

 

 

Net cash used in operating activities

 

 

(19,317)

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by financing activities:

 

 

 

 

 

 

 

Proceeds from convertible debt

 

 

 

 

 

 

 

Proceeds from notes payable

 

 

19,881

 

 

 

 

Net cash provided by financing activities

 

 

19,881

 

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH

 

 

564

 

 

 

-

 

CASH BEGINNING OF PERIOD

 

 

5,351

 

 

 

59

 

CASH END OF PERIOD

 

$5,915

 

 

$59

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

 

Income taxes paid

 

$-

 

 

$-

 

Interest paid

 

$6

 

 

$-

 

 

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

 

 
6

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CROWN BAUS CAPITAL CORP

STATEMENT OF CHANGES TO STOCKHOLDERS’ DEFICIT

FOR THREE MONTHS ENDED July 31, 2023

(UNAUDITED) 

 

 

 

Common Stock

 

 

Cancellation

 

 

Additional

Paid-in

 

 

Stock 

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

     Shares

 

 

Amount

 

 

Receivable

 

 

Capital

 

 

Subscription

 

 

Deficit

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2023

 

 

161,050,000

 

 

$161,050

 

 

$(21,050 )

 

$46,675,911

 

 

$7,220

 

 

$(47,063,977 )

 

$(240,846 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss July 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,117)

 

 

(16,117)

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2023

 

 

161,050,000

 

 

$161,050

 

 

$(21,050 )

 

$46,675,911

 

 

$7,220

 

 

$(47,080,094 )

 

$(256,963 )

 

CROWN BAUS CAPITAL CORP

STATEMENT OF CHANGES TO STOCKHOLDERS’ DEFICIT

FOR THREE MONTHS ENDED July 31, 2022

(UNAUDITED) 

 

 

 

Common Stock

 

 

Cancellation

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

     Shares

 

 

Amount

 

 

Receivable

 

 

Capital

 

 

Deficit

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2022

 

 

161,050,000

 

 

$161,050

 

 

$(21,050 )

 

$46,550,000

 

 

$(47,049,137)

 

$(359,137 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss July 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31, 2022

 

 

161,050,000

 

 

$161,050

 

 

$(21,050 )

 

$46,550,000

 

 

$(47,049,137)

 

$(359,137 )

 

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

 

 
7

Table of Contents

  

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED July 31, 2023

(Unaudited)

 

NOTE 1. DESCRIPTION OF BUSINESS

 

The Company’s mission is to work together with our shareholders’, investors, and communities to create long-term value.

 

Our strategy is to identify companies in industries that compliments the expertise of our management team, Board of Directors, and partners.  Our management’s track record provides a highly attractive opportunity for prospective targets looking for proven value, liquidity, and capital procurement.

 

The Company is focused on becoming a global acquisitions-based company for being a retailer of high-end commodities either through acquisition of inventory or by sales contract with the commodity owners.

 

NOTE 2. BASIS OF PRESENTATION

 

The accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with the requirements for Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (all of which were of a normal recurring nature) considered necessary to fairly present the financial position, results of operations, and cash flows of the Company on a consistent basis, have been made. The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in our annual 10-K filing, filed with the SEC on August 11, 2023.

 

Going Concern

 

Since inception, the Company has had a cumulative net loss of $47,080,092. The Company currently has only limited working capital with which to continue its operating activities. The amount of capital required to sustain operations is subject to future events and uncertainties. The Company must secure additional working capital through loans, sale of equity securities, or a combination, in order to implement its current business plans. There can be no assurance that such funding will be available in the future, or available on commercially reasonable terms favorable to the Company. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

 

The accompanying condensed financial statements have been presented on the basis of the continuation of the Company as a going concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Management continued to manage its costs for the three months ended July 31, 2023, to ensure appropriate funding is on hand for its limited operations.

 

 
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NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation Consulting, Inc. All intercompany balances and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with United States generally accepted accounting principles 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 and assumptions related to intangible assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

Development Costs

 

Development costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned. For the three months ended July 31, 2023, the Company incurred no development costs. As of July 31, 2023, the Company had no deferred product development costs.

 

Income Taxes

 

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses has not been recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses carried forward in future years.

 

ASC 740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements.

 

The Company does not have any unrecognized tax benefits as of July 31, 2023, that, if recognized, would affect the Company's effective income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of July 31, 2023, and April 30, 2023.

 

 
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Cash and Cash Equivalents

 

Cash includes all highly liquid instruments with an original maturity of three months or less at the date of purchase. on, July 31, 2023, the Company had $5,915 cash.

 

Fair Value of Financial Instruments

 

The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities, line of credit payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Fair Value Measurement

 

The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  (See Note 7)

 

Revenue Recognition

 

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and Accounting Standards Codification (“ASC”) Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2019, the Company adopted Topic 606. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. The Company implemented ASU 2014-09 for the interim and annual reporting periods of 2019, which resulted in no changes to our financial statements as there is no revenue reported in the years presented.

 

Property and Equipment

 

Property and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and improvements are capitalized. The Company depreciates the costs of these assets over their estimated useful lives. When assets are retired or disposed, the asset's original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. Depreciation and amortization are generally accounted for using the straight-line method over the estimated useful lives of the assets as follows:

 

Office, protective and demonstration, and computer equipment

4 Years

Manufacturing equipment

10 Years

Leasehold improvements

lease term

                               

Long-lived Assets

 

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable.

 

 
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Impairment of Long-Lived Intangible Assets

 

We review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired

 

Net Income (Loss) Per Common Share

 

Basic loss per common share (“EPS”) is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable or converted into common stock is not material to effect diluted EPS results. Further, since the Company shows losses for the periods presented basic and diluted loss per share are the same for all periods presented.

 

Common Share Non-Monetary Consideration

 

i. In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: the counterparty’s performance is complete.

 

ii. commitment for performance by the counterparty to earn the common shares is reached; or

 

iii. the common shares are issued if they are fully vested and non-forfeitable at that date.

 

Stock-Based Compensation

 

On December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005, includes a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005, were not restated.

 

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the counterparty.

 

 
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Share Purchase Warrants

 

The Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.

 

Convertible Instruments

 

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements.

 

The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company uses a Binomial Lattice Model to judge the fair value of all of its currently outstanding derivative liabilities and to amortize any debt discounts that may have a remaining balance

 

Risks and Uncertainties

 

The Company is not able to predict the ultimate impact that uncontrollable events such as world-wide pandemics and financial downturns will have on its business; however, if the current economic conditions continue, the Company will be forced to significantly scale back its business operations and its growth plans and could ultimately have a significant negative impact on the Company.

 

Recently Issued Accounting Pronouncements

 

Other than as set forth below, management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

None.

 

 
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NOTE 4. ACQUISITIONS

 

None.

 

NOTE 5. CONVERTIBLE PROMISSORY NOTES

 

On May 1, 2019, the Company entered into a note with a non-affiliate. The note was an agreed settlement with the party who had provided consulting services for several years without any remuneration. This is a demand note, bears no interest and is convertible at a price to be determined by the market on the date a conversion notice is received.

 

In April 2023, the Company entered into a promissory note with a non-affiliate for the sum of $40,000 with the interest to be paid in shares of stock and with the note to be paid during the current fiscal year with the stock issued when the company is current in its filings.

 

In April 2023, the Company entered into an agreement to receive $7,220 in cash for a note convertible into shares at market when available.

 

NOTE 6. FAIR VALUE MEASUREMENT

 

The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

 

The three levels of the fair value hierarchy are as follows:

 

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

 

Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date.

 

Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

 

The Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expenses, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes option pricing model, which the Company’s classifies as a level three of the fair value measurement hierarchy.

 

The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company's common stock and are classified within Level 3 of the valuation hierarchy.

 

 
13

Table of Contents

 

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of April 30, 2022.

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of July 31, 2023.

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

As of July 31, 2023, the Company had no derivative instruments.

 

NOTE 7. STOCKHOLDERS’ DEFICIT

 

Authorized

 

The Company is authorized to issue 200,000,000 shares of common stock, having a par value of $0.001 per share.

 

Issued and Outstanding

 

Common Stock

 

On, July 31, 2022, the Company there is 161,050,000 shares of common stock outstanding.

 

On July 31, 2023, the Company has 0 shares of preferred stock outstanding.

 

Warrants Issued for Services

 

As of July 31, 2023, the Company had no outstanding warrants.

 

NOTE 8. SUBSEQUENT EVENT

 

In August 2023, the Company issued 1,000 shares of Series A Convertible Preferred Stock in preparation for an acquisition expected to be completed following the filing of this document.

 

 
14

Table of Contents

  

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

 

The following management’s discussion and analysis is intended to provide additional information regarding the significant changes and trends which influenced our financial performance for the three-month period ended July 31, 2023. This discussion should be read in conjunction with the unaudited financial statements and notes as set forth in this report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this quarterly report. Our audited consolidated financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

 

Forward-Looking Statements

 

This report contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including, "could" "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

 

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this Quarterly Report.

 

Company’s Approach to Management’s Discussion of Financial Condition and Results of Operations

 

In our discussion, we aim to provide: 1) a narrative explanation of our financial statements that enables investors to see the company through the eyes of our management; 2) an enhancement of the overall financial disclosure with provided context with which the financial information should be analyzed; and 3) information about the quality of, and potential variability of, our earnings and cash flow so investors can ascertain the likelihood that past performance is indicative of future performance. In our overall presentation, we aim to focus on the material, analysis, key performance measures and known material trends and uncertainness of the Company, disclosure regarding liquidity and capital resources, and disclosure regarding critical accounting estimates. As part of our overall presentation, we strive to present the most material information as the most prominent and avoid unnecessary duplicative disclosures that can tend to overwhelm our readers and act as an obstacle to identifying material matters.

 

Current Operations

 

The Company is currently pursuing leads to purchase or merge assets or companies that meet our mission statement.

 

Plan of Operations

 

No current operations

 

Requirements and Utilization of Funds

 

To implement our business plan, we will need to continue to raise working capital in an amount of at least $2,000,000 over the twelve-month period beginning in the first quarter of fiscal year 2023 on terms and conditions to be determined. Management may elect to seek subsequent interim or “bridge” financing in the form of debt as may be necessary.

 

At this time, management is unable to determine the specific amounts and terms of such future financings, or whether or not we will be successful in raising such funds on a basis acceptable to us.

 

To date, management has not identified the source for such additional capital, and whether the Company will be able to raise sufficient capital, and do so on commercially reasonable terms, is uncertain. If we cannot raise additional proceeds via a private placement of our common stock or secure debt financing, we would be required to cease business operations. As a result, investors in our common stock would lose all of their investment.

 

 
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Going Concern

 

In their report for our 2023 Form 10-K, our auditors have issued a “going concern” opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our expenses. This is because we have not generated enough revenues and no substantial revenues are anticipated in the near-term. Accordingly, we must seek to raise working capital from sources other than from the sale of our products through debt and equity financing facilities.

 

Critical Accounting Policies

 

The preparation of financial statements and related disclosures in conformity with generally accepted accounting principles (“GAAP”) in the United States requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. The SEC has defined a company's critical accounting policies as the ones that are most important to the portrayal of the company's financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain.

 

We believe that our estimates and assumptions are reasonable under the circumstances; however, actual results may vary from these estimates and assumptions. We have identified in NOTE 3, Summary of Significant Accounting Policies to the Financial Statements contained in Item 1 of this document certain critical accounting policies that affect the more significant judgments and estimates used in the preparation of the financial statements.

 

Liquidity and Capital Resources

 

As of July 31, 2023, and April 30, 2023, the Company had cash on hand of $5,915 and $5,351, respectively. The Company had a change in cash flow of $564 for the three months ended July 31, 2023, resulting primarily from the operations of the Company’s activities in general operations and the receipt of loan proceeds.

 

As of July 31, 2023, we had cash of $5,915 and our working capital deficit was $256,964.

 

As of July 31, 2023, we generated revenues of $0 and a net loss of $16,117 as compared to July 31, 2022, revenues of $0 and a net loss of $0. The net loss for the current period of measurement is mainly comprised of general and administrative expenses, professional and management fees. As of July 31, 2023, we have a cumulative net loss of $47,080,092. We are illiquid and need cash infusions from investors and/or current shareholders to deploy our current business plan.

 

The Company expects significant capital expenditures during the next 12 months, contingent upon raising additional capital. We anticipate that we will need $2,000,000 for operations for the next 12 months, and $2,000,000 for our overall development. This capital will be needed for continued development of the Company’s automotive platforms and gaming expansion.

 

The source of such capital is uncertain, and there is no assurance that the Company will be successful in obtaining such capital on commercially reasonable terms, or at all. We have a working capital deficit and will need cash infusions from investors and/or current shareholders to deploy our current business plan.

 

To implement our business plan, we will need to continue to raise working capital in the form of equity in an amount up to $2,000,000 over the twelve-month period ending July 31, 2023, on terms and conditions to be determined. If we were unable to raise any funds from the sale of equity, management may elect to seek subsequent interim or “bridge” financing in the form of debt as may be necessary.

 

At this time, management is unable to determine the specific amounts and terms of such future financings, or whether or not we will be successful in raising such funds on a basis acceptable to us.

 

The source of such capital is uncertain, and there is no assurance that the Company will be successful in obtaining such capital on commercially reasonable terms, or at all. We are illiquid and need cash infusions from investors and/or current shareholders to deploy our current business plan.

 

 
16

Table of Contents

 

Cash Flows - Operating Activities

 

Three Months Ended

 July 31,

 

 

 

2023

 

 

2022

 

Net cash provided by (used in) operating activities

 

$(19,317)

 

$-

 

 

 

 

 

 

 

 

 

 

Net cash (used in) investing activities

 

 

-

 

 

 

-

 

Net cash provided by financing activities

 

 

19,881

 

 

 

-

 

Net (decrease) increase in cash

 

$564

 

 

 

-

 

 

Cash provided by financing activities in the period ended July 31, 2023, is $0.

 

Going Concern Uncertainties

 

Management believes that our current financial condition, liquidity, and capital resources will not satisfy our cash requirements for the next twelve months to deploy our current business plan, and as such we will need to either raise additional proceeds and/or our officers and/or directors will need to make additional financial commitments to our Company, neither of which is guaranteed. We plan to satisfy our future cash requirements, primarily the working capital required to execute on our current business and fund our necessary operating expenses, through financial commitments from future debt and equity financings, if and when possible. Management believes that we may generate more revenue within the next 12 months, but that these revenues will not satisfy our cash requirements to implement our current business plan, including, but not limited to, project acquisitions, engineering, and integration costs, and other operating expenses and corporate overhead, which is subject to change depending upon pending business opportunities and available financing

 

We have no committed source for funds as of this date. No representation is made that any funds will be available when needed. In the event that funds cannot be raised when needed, we may not be able to carry out our business plan, may never achieve revenue, and could fail to satisfy our future cash requirements as a result of these uncertainties.

 

It will be necessary to raise working capital funds through equity and/or debt financing facilities, which are extremely difficult for a developmental stage company to secure and may not be available to us or on a basis favorable to us. However, if such debt financing is available, we would likely have to pay additional costs associated with high-risk loans and be subject to above market interest rates.

 

The Company has a cumulative net loss of $47,080,092 on July 31, 2023. We currently have only limited working capital with which continue its operating activities. The amount of capital required to sustain operations is subject to future events and uncertainties, but the Company anticipates it will need to obtain approximately $2,000,000 in additional working capital in the form of debt or equity in order to cover our current expenses over the next 12 months and continue to implement our business plan. Whether such capital will be obtainable, or obtainable on commercially reasonable terms is at this date uncertain. These circumstances raise substantial doubt about the Company's ability to continue as a going concern

 

 
17

Table of Contents

  

Capital Expenditures

 

We have not incurred any material capital expenditures.

 

Off-Balance Sheet Arrangements

 

During the three months ended July 31, 2023, we did not engage in any off-balance sheet arrangements set forth in Item 303(a)(4) of Regulation S-K.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

As a “smaller reporting company” as defined by Rule 229.10(f)(1), we are not required to provide the information required by this Item 3.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

The Company’s internal control over financial reporting is a process designed 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. Management is responsible for establishing and maintaining adequate controls over financial reporting and bases such evaluations on criteria established in the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) updated 2013.

 

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Act) that are designed to ensure that required information is recorded, processed, summarized and reported within the required time frame, as specified in rules set forth by the Securities and Exchange Commission. Based upon that evaluation and the material weakness described below, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of July 31, 2023.

 

In connection with the preparation of our financial statements for the three months ended July 31, 2023, we did not maintain effective controls over financial statement disclosure. Specifically, we maintain that we did not have formal documented policies and procedures in place to support our fair value measurements of certain equity transactions in a suitable presentation for subsequent and timely review. Accordingly, management has determined that this control deficiency constitutes a material weakness. As part of fulfilling its responsibility, management is working to establish an accounting and financial reporting process for determining the fair value measurements and disclosures presentable on a quarterly basis that allows for timely decisions in the application and determination of the appropriate accounting treatment pursuant to generally accepted accounting principles.

 

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

Changes in Internal Control over Financial Reporting

 

In the fiscal quarter ended July 31, 2023, there has been  no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a15(f) and 15d15(f) under the Exchange Act. The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company's internal control over financial reporting includes those policies and procedures that:

 

·

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

 

·

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

 

·

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

 

 
18

Table of Contents

 

PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

None.

 

ITEM 1A. RISK FACTORS.

 

Smaller reporting companies are not required to provide disclosure pursuant to this Item.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

Subsequent to our year ended April 30, 2023, the Company issued the following additional shares of common stock in connection with the convertible notes for the three months ended July 31, 2023:

 

In August 2023, the Company issued 1,000 Series A Convertible Preferred shares in preparation for the purchase of $48,000,000 in inventory commodities expected to be completed before the end of the month.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

None.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

 
19

Table of Contents

  

ITEM 6. EXHIBITS

 

Those exhibits marked with an asterisk (*) refer to exhibits filed herewith. The other exhibits are incorporated herein by reference, as indicated in the following list.

  

Exhibit Number

 

Description of Exhibit

 

 

 

3.2

 

Amended Articles of Incorporation (incorporated by reference to the Company’s Form 8-K filed April 15, 2014)

3.3

 

Amended Articles of Incorporation (incorporated by reference to the Company’s Form 8-K filed July 17, 2014)

10.01

 

Change in control (incorporated by reference to the Company’s Form 8-K filed July 23, 2014)

31.1

 

Certification by Andy Jagpal, Chief Executive Officer as required by Section 302 of Sarbanes-Oxley Act 2002 filed herewith

31.2

 

Certification by Andy Jagpal, Chief Financial Officer as required by Section 302 of Sarbanes-Oxley Act 2002 filed herewith

32.1

 

Certification as required under Section 906 of Sarbanes-Oxley Act of 2002 filed herewith

32.2

 

Certification as required under Section 906 of Sarbanes-Oxley Act of 2002 filed herewith

________ 

** In accordance with SEC Release 33-8238, Exhibits 31.1, 31.2 and 32.1 are being furnished and not filed.

 

*** In accordance with Rule 406T of Regulation S-T, this information is deemed not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. 

 

 
20

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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.

 

 

CROWN BAUS CAPITAL CORP

 

Date: October 5, 2023

By:

/s/ Andy Jagpal

 

Andy Jagpal

 

Chief Executive Officer, Chief Financial Officer and Director

 

 

nullnullnullnullnullv3.23.3
Cover - shares
 3 Months Ended
Jul. 31, 2023
Oct. 05, 2023
Cover [Abstract]    
Entity Registrant Name CROWN BAUS CAPITAL CORP  
Entity Central Index Key 0001554906  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --04-30  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Jul. 31, 2023  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Entity Common Stock Shares Outstanding   161,050,000
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 333-183239  
Entity Incorporation State Country Code NV  
Entity Tax Identification Number 99-0373498  
Entity Address Address Line 1 Suite 204-2383 King George Blvd  
Entity Address Address Line 2 Surrey  
Entity Address State Or Province BC  
Entity Address Country CA  
Entity Address Postal Zip Code V4A5A4  
City Area Code 855  
Local Phone Number 305-9945  
Security 12b Title Common stock, par value $.0001  
Trading Symbol CBCA  
Entity Interactive Data Current Yes  
v3.23.3
CONDENSED BALANCE SHEETS - USD ($)
Jul. 31, 2023
Apr. 30, 2023
CURRENT ASSETS:    
Cash $ 5,915 $ 5,351
Prepaid expenses 0 1,275
Total Current Assets 5,915 6,626
OTHER ASSETS:    
Investment 0 0
Total Assets 5,915 6,626
CURRENT LIABILITIES:    
Accounts payable and accrued liabilities 5,556 10,031
Notes payable 0 0
Convertible notes payable - non-affiliates 240,132 220,251
Notes payable stockholders' 17,190 17,190
Total Liabilities 262,878 247,472
STOCKHOLDERS' DEFICIT:    
Preferred stock, $0.001 par value; 80,000 and 0 shares authorized; issued and outstanding 0 and 0, respectively 0 0
Common stock, $0.001 par value; 199,920,000 and 200,000,000 shares authorized; issued and outstanding 161,050,000 and 161,050,000, respectively 161,050 161,050
Additional paid in capital 46,675,911 46,675,911
Cancellation receivable (21,050) (21,050)
Stock subscription 7,220 7,220
Deficit accumulated during development stage (47,080,094) (47,063,977)
Total Stockholders' Deficit (256,963) (240,846)
Total Liabilities and Stockholders' Deficit $ 5,915 $ 6,626
v3.23.3
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares
Jul. 31, 2023
Apr. 30, 2023
CONDENSED BALANCE SHEETS    
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 199,920,000 200,000,000
Common Stock, Shares, Outstanding 161,050,000 161,050,000
Common Stock, Shares, Issued 161,050,000 161,050,000
Preferred Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Preferred Stock, Shares Authorized 80,000 0
Preferred Stock, Shares, Outstanding 0 0
Preferred Stock, Shares, Issued 0 0
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
 3 Months Ended
Jul. 31, 2023
Jul. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)    
REVENUES $ 0 $ 0
OPERATING EXPENSES    
Management fees 1,977 0
Professional fees 11,500  
General and administrative 2,634 0
Total Operating Expenses 16,111 0
LOSS FROM OPERATIONS (16,111) 0
OTHER INCOME (EXPENSE):    
Debt settlement 0 0
Interest expense - other (6) 0
Total Other Income (Expense) (6) 0
NET LOSS BEFORE PROVISION FOR INCOME TAXES (16,117) 0
PROVISION FOR INCOME TAX (BENEFIT) 0 0
COMPREHENSIVE GAIN (LOSS) $ (16,117) $ 0
Basic Per Share Data:    
Net Gain (Loss) Per Share - basic $ 0.00 $ 0.00
Weighted Average Common Shares Outstanding:    
Basic 161,050,000 161,050,000
v3.23.3
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 3 Months Ended
Jul. 31, 2023
Jul. 31, 2022
OPERATING ACTIVITIES    
Net gain (loss) $ (16,117)  
Changes in operating assets and liabilities:    
Prepaid consulting 1,275  
Accounts payable and accrued expenses (4,475)  
Net cash used in operating activities (19,317)  
Proceeds from convertible debt    
Proceeds from notes payable 19,881  
Net cash provided by financing activities 19,881  
NET INCREASE IN CASH 564 $ 0
CASH BEGINNING OF PERIOD 5,351 59
CASH END OF PERIOD 5,915 59
SUPPLEMENTAL DISCLOSURES:    
Income taxes paid 0 0
Interest paid $ 6 $ 0
v3.23.3
STATEMENT OF CHANGES TO STOCKHOLDERS DEFICIT (UNAUDITED) - USD ($)
Total
Common Stock
Cancellation Receivable
Additional Paid In Capital
Stock Subscription
Accumulated Deficit
Balance, shares at Apr. 30, 2022   161,050,000        
Balance, amount at Apr. 30, 2022 $ (359,137) $ 161,050 $ (21,050) $ 46,550,000   $ (47,049,137)
Net Income (Loss) 0         0
Balance, shares at Jul. 31, 2022   161,050,000        
Balance, amount at Jul. 31, 2022 (359,137) $ 161,050 (21,050) 46,550,000   (47,049,137)
Balance, shares at Apr. 30, 2023   161,050,000        
Balance, amount at Apr. 30, 2023 (240,846) $ 161,050 (21,050) 46,675,911 $ 7,220 (47,063,977)
Net Income (Loss) (16,117)         (16,117)
Balance, shares at Jul. 31, 2023   161,050,000        
Balance, amount at Jul. 31, 2023 $ (256,963) $ 161,050 $ (21,050) $ 46,675,911 $ 7,220 $ (47,080,094)
v3.23.3
DESCRIPTION OF BUSINESS
 3 Months Ended
Jul. 31, 2023
DESCRIPTION OF BUSINESS  
DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

 

The Company’s mission is to work together with our shareholders’, investors, and communities to create long-term value.

 

Our strategy is to identify companies in industries that compliments the expertise of our management team, Board of Directors, and partners.  Our management’s track record provides a highly attractive opportunity for prospective targets looking for proven value, liquidity, and capital procurement.

 

The Company is focused on becoming a global acquisitions-based company for being a retailer of high-end commodities either through acquisition of inventory or by sales contract with the commodity owners.
v3.23.3
BASIS OF PRESENTATION
 3 Months Ended
Jul. 31, 2023
BASIS OF PRESENTATION  
BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

 

The accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with the requirements for Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (all of which were of a normal recurring nature) considered necessary to fairly present the financial position, results of operations, and cash flows of the Company on a consistent basis, have been made. The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in our annual 10-K filing, filed with the SEC on August 11, 2023.

 

Going Concern

 

Since inception, the Company has had a cumulative net loss of $47,080,092. The Company currently has only limited working capital with which to continue its operating activities. The amount of capital required to sustain operations is subject to future events and uncertainties. The Company must secure additional working capital through loans, sale of equity securities, or a combination, in order to implement its current business plans. There can be no assurance that such funding will be available in the future, or available on commercially reasonable terms favorable to the Company. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

 

The accompanying condensed financial statements have been presented on the basis of the continuation of the Company as a going concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Management continued to manage its costs for the three months ended July 31, 2023, to ensure appropriate funding is on hand for its limited operations.

v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Jul. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation Consulting, Inc. All intercompany balances and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with United States generally accepted accounting principles 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 and assumptions related to intangible assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

Development Costs

 

Development costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned. For the three months ended July 31, 2023, the Company incurred no development costs. As of July 31, 2023, the Company had no deferred product development costs.

 

Income Taxes

 

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses has not been recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses carried forward in future years.

 

ASC 740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements.

 

The Company does not have any unrecognized tax benefits as of July 31, 2023, that, if recognized, would affect the Company's effective income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of July 31, 2023, and April 30, 2023.

Cash and Cash Equivalents

 

Cash includes all highly liquid instruments with an original maturity of three months or less at the date of purchase. on, July 31, 2023, the Company had $5,915 cash.

 

Fair Value of Financial Instruments

 

The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities, line of credit payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Fair Value Measurement

 

The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  (See Note 7)

 

Revenue Recognition

 

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and Accounting Standards Codification (“ASC”) Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2019, the Company adopted Topic 606. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. The Company implemented ASU 2014-09 for the interim and annual reporting periods of 2019, which resulted in no changes to our financial statements as there is no revenue reported in the years presented.

 

Property and Equipment

 

Property and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and improvements are capitalized. The Company depreciates the costs of these assets over their estimated useful lives. When assets are retired or disposed, the asset's original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. Depreciation and amortization are generally accounted for using the straight-line method over the estimated useful lives of the assets as follows:

 

Office, protective and demonstration, and computer equipment

4 Years

Manufacturing equipment

10 Years

Leasehold improvements

lease term

                               

Long-lived Assets

 

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable.

Impairment of Long-Lived Intangible Assets

 

We review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired

 

Net Income (Loss) Per Common Share

 

Basic loss per common share (“EPS”) is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable or converted into common stock is not material to effect diluted EPS results. Further, since the Company shows losses for the periods presented basic and diluted loss per share are the same for all periods presented.

 

Common Share Non-Monetary Consideration

 

i. In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: the counterparty’s performance is complete.

 

ii. commitment for performance by the counterparty to earn the common shares is reached; or

 

iii. the common shares are issued if they are fully vested and non-forfeitable at that date.

 

Stock-Based Compensation

 

On December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005, includes a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005, were not restated.

 

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the counterparty.

Share Purchase Warrants

 

The Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.

 

Convertible Instruments

 

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements.

 

The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company uses a Binomial Lattice Model to judge the fair value of all of its currently outstanding derivative liabilities and to amortize any debt discounts that may have a remaining balance

 

Risks and Uncertainties

 

The Company is not able to predict the ultimate impact that uncontrollable events such as world-wide pandemics and financial downturns will have on its business; however, if the current economic conditions continue, the Company will be forced to significantly scale back its business operations and its growth plans and could ultimately have a significant negative impact on the Company.

 

Recently Issued Accounting Pronouncements

 

Other than as set forth below, management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

None.
v3.23.3
ACQUISITIONS
 3 Months Ended
Jul. 31, 2023
DESCRIPTION OF BUSINESS  
ACQUISITIONS

NOTE 4. ACQUISITIONS

 

None.
v3.23.3
CONVERTIBLE PROMISSORY NOTES
 3 Months Ended
Jul. 31, 2023
CONVERTIBLE PROMISSORY NOTES  
CONVERTIBLE PROMISSORY NOTES

NOTE 5. CONVERTIBLE PROMISSORY NOTES

 

On May 1, 2019, the Company entered into a note with a non-affiliate. The note was an agreed settlement with the party who had provided consulting services for several years without any remuneration. This is a demand note, bears no interest and is convertible at a price to be determined by the market on the date a conversion notice is received.

 

In April 2023, the Company entered into a promissory note with a non-affiliate for the sum of $40,000 with the interest to be paid in shares of stock and with the note to be paid during the current fiscal year with the stock issued when the company is current in its filings.

 

In April 2023, the Company entered into an agreement to receive $7,220 in cash for a note convertible into shares at market when available.
v3.23.3
FAIR VALUE MEASUREMENT
 3 Months Ended
Jul. 31, 2023
FAIR VALUE MEASUREMENT  
FAIR VALUE MEASUREMENT

NOTE 6. FAIR VALUE MEASUREMENT

 

The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

 

The three levels of the fair value hierarchy are as follows:

 

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

 

Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date.

 

Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

 

The Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expenses, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes option pricing model, which the Company’s classifies as a level three of the fair value measurement hierarchy.

 

The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company's common stock and are classified within Level 3 of the valuation hierarchy.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of April 30, 2022.

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of July 31, 2023.

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

As of July 31, 2023, the Company had no derivative instruments.
v3.23.3
STOCKHOLDERS DEFICIT
 3 Months Ended
Jul. 31, 2023
STOCKHOLDERS DEFICIT  
STOCKHOLDERS' DEFICIT

NOTE 7. STOCKHOLDERS’ DEFICIT

 

Authorized

 

The Company is authorized to issue 200,000,000 shares of common stock, having a par value of $0.001 per share.

 

Issued and Outstanding

 

Common Stock

 

On, July 31, 2022, the Company there is 161,050,000 shares of common stock outstanding.

 

On July 31, 2023, the Company has 0 shares of preferred stock outstanding.

 

Warrants Issued for Services

 

As of July 31, 2023, the Company had no outstanding warrants.

v3.23.3
SUBSEQUENT EVENTS
 3 Months Ended
Jul. 31, 2023
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 8. SUBSEQUENT EVENT

 

In August 2023, the Company issued 1,000 shares of Series A Convertible Preferred Stock in preparation for an acquisition expected to be completed following the filing of this document.
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Jul. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Principles of Consolidation

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of the Company and its subsidiaries, Dynamic Energy Development Corporation and Transformation Consulting, Inc. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles 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 and assumptions related to intangible assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Development Costs

Development costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned. For the three months ended July 31, 2023, the Company incurred no development costs. As of July 31, 2023, the Company had no deferred product development costs.
Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses has not been recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses carried forward in future years.

 

ASC 740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements.

 

The Company does not have any unrecognized tax benefits as of July 31, 2023, that, if recognized, would affect the Company's effective income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of July 31, 2023, and April 30, 2023.

Cash and Cash Equivalents

Cash includes all highly liquid instruments with an original maturity of three months or less at the date of purchase. on, July 31, 2023, the Company had $5,915 cash.
Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities, line of credit payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
Fair Value Measurement

The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  (See Note 7)
Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and Accounting Standards Codification (“ASC”) Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“ASC 340-40”), (collectively, “Topic 606”). On January 1, 2019, the Company adopted Topic 606. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. The Company implemented ASU 2014-09 for the interim and annual reporting periods of 2019, which resulted in no changes to our financial statements as there is no revenue reported in the years presented.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and improvements are capitalized. The Company depreciates the costs of these assets over their estimated useful lives. When assets are retired or disposed, the asset's original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income. Depreciation and amortization are generally accounted for using the straight-line method over the estimated useful lives of the assets as follows:

 

Office, protective and demonstration, and computer equipment

4 Years

Manufacturing equipment

10 Years

Leasehold improvements

lease term
Long-lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable.
Impairment of Long-Lived Intangible Assets

We review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired
Net Income (Loss) Per Common Share

Basic loss per common share (“EPS”) is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable or converted into common stock is not material to effect diluted EPS results. Further, since the Company shows losses for the periods presented basic and diluted loss per share are the same for all periods presented.
Common Share Non-Monetary Consideration

i. In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: the counterparty’s performance is complete.

 

ii. commitment for performance by the counterparty to earn the common shares is reached; or

 

iii. the common shares are issued if they are fully vested and non-forfeitable at that date.
Stock-Based Compensation

On December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005, includes a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005, were not restated.

 

The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the counterparty.
Share Purchase Warrants

The Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates.
Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities”. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements.

 

The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company uses a Binomial Lattice Model to judge the fair value of all of its currently outstanding derivative liabilities and to amortize any debt discounts that may have a remaining balance
Risks and Uncertainties

The Company is not able to predict the ultimate impact that uncontrollable events such as world-wide pandemics and financial downturns will have on its business; however, if the current economic conditions continue, the Company will be forced to significantly scale back its business operations and its growth plans and could ultimately have a significant negative impact on the Company.

Recently and Issued Accounting Pronouncements

Other than as set forth below, management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

None.
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Jul. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Summary of Property and Equipment UseFul Lives of Assets

Office, protective and demonstration, and computer equipment

4 Years

Manufacturing equipment

10 Years

Leasehold improvements

lease term
v3.23.3
FAIR VALUE MEASUREMENT (Tables)
 3 Months Ended
Jul. 31, 2023
FAIR VALUE MEASUREMENT  
Schedule Of assets and liabilities carried at fair value measured

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative Liabilities

 

$-

 

 

$-

 

 

$-

 

 

$-

 
v3.23.3
BASIS OF PRESENTATION (Details Narrative)
Jul. 31, 2023
USD ($)
BASIS OF PRESENTATION  
Cumulative net loss $ 47,080,092
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
 3 Months Ended
Jul. 31, 2023
Office, protective and demonstration, and computer equipment [Member]  
Property Plant And Equipment4233 4 Years
Manufacturing equipment [Member]  
Property Plant And Equipment 10 Years
Leasehold improvements [Member]  
Property Plant And Equipment lease term
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
Jul. 31, 2023
Apr. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    
Cash $ 5,915 $ 5,351
v3.23.3
CONVERTIBLE PROMISSORY NOTES (Details Narrative)
 1 Months Ended
Apr. 30, 2023
USD ($)
CONVERTIBLE PROMISSORY NOTES  
Cash Received $ 7,220
interest paid $ 40,000
v3.23.3
FAIR VALUE MEASUREMENT (Details) - USD ($)
Jul. 31, 2023
Apr. 30, 2022
Derivative Liabilities $ 0 $ 0
Fair Value Inputs Level1 [Member]    
Derivative Liabilities 0 0
Fair Value Inputs Level2 [Member]    
Derivative Liabilities 0 0
Fair Value Inputs Level3 [Member]    
Derivative Liabilities $ 0 $ 0
v3.23.3
STOCKHOLDERS DEFICIT (Details Narrative) - $ / shares
Jul. 31, 2023
Apr. 30, 2023
STOCKHOLDERS DEFICIT    
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common Stock, Shares Authorized 199,920,000 200,000,000
Common Stock, Shares, Outstanding 161,050,000 161,050,000
Common Stock, Shares, Issued 161,050,000 161,050,000
Preferred Stock, Shares, Outstanding 0 0
Preferred Stock, Shares, Issued 0 0
v3.23.3
SUBSEQUENT EVENT (Details Narrative)
 1 Months Ended
Aug. 31, 2023
shares
Subsequent Event [Member]  
Series A convertible preferred stock issued 1,000
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