v3.26.1
NOTES PAYABLE AND DERIVATIVES
 12 Months Ended
Apr. 30, 2026
Debt Disclosure [Abstract]  
NOTES PAYABLE AND DERIVATIVES

NOTE C – NOTES PAYABLE AND DERIVATIVES

 

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

   

Notes Payable 

April 30,

2026

  

April 30,

2025

 
Convertible notes payable  $5,806,080   $5,124,971 
Non-convertible notes payable   1,492,400    1,338,200 
Accrued interest   2,017,666    1,907,205 
Notes payable gross   9,316,146    8,370,376 
Discount on notes payable   -    - 
Notes payable, net  $9,316,146   $8,370,376 

 

Certain notes payable contains variable conversion rates, and the conversion features are classified as derivative liabilities. The conversion prices are based on the market price of the Company’s common stock, at discounts of 60% to market value.

 

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

 

 

The change in fair value of the derivative liabilities of convertible notes outstanding at April 30, 2026, was calculated with the following average assumptions, using a Binomial option-pricing model are as follows:

  

Significant Assumptions:    
Risk free interest rate   3.68%-3.88%
Expected stock price volatility   93%-188%
Expected dividend payout   0 
Expected options life in years   .25-2 years 

 

Changes in derivative liability during the year ended April 30, 2026, and 2025 were:

 

   

   April 30,   April 30, 
   2026   2025 
Balance, beginning of year  $1,007,598   $740,940 
Fair value adjustments   (108,263)   266,658 
Balance, end of period  $899,335   $1,007,598