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FAIR VALUE MEASUREMENTS
 3 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 11 – FAIR VALUE MEASUREMENTS

 

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of and during the three months ended July 31, 2026. The carrying amounts of cash equivalents, other current assets, accounts payable and accrued expenses approximate their face values at July 31, 2026 due to their short-term nature. The fair value of the bifurcated embedded derivative related to the convertible preferred stock was estimated using a probability-weighted scenario model, which uses as inputs the fair value of the Company’s common stock and estimates for the equity volatility and of the Company’s common stock, the time to maturity of the convertible preferred stock, the risk-free interest rate for a period of time that approximates the time to maturity, the maturity redemption premium rate, the liquidation premium rate, the market discount rate, and the dividend rate. The fair value of the warrant liability was estimated using the Black Scholes Merton Model which uses as inputs the following weighted average assumptions, as noted above: dividend yield, expected terms in years, equity volatility and risk-free rate.

 

Fair Value on a Recurring Basis

 

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The estimated fair value of the warrant liability and bifurcated embedded derivative represent Level 3 measurements. The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at July 31, 2026 and April 30, 2026, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

           
Description  Level  July 31, 2026   April 30, 2026 
Liabilities:             
Warrant liabilities  3  $5,847,000   $10,068,000 
Bifurcated embedded derivative  3  $281,000   $878,000 

 

The following table sets forth a summary of the change in the fair value of the warrant liability that is measured at fair value on a recurring basis:

    
   Three Months Ended July 31, 2026 
Balance on April 30, 2026  $10,068,000 
Change in fair value of warrant liability   (4,221,000)
Balance on July 31, 2026  $5,847,000 

 

The following table sets forth a summary of the change in the fair value of the derivative liability that is measured at fair value on a recurring basis:

    
   Three Months Ended July 31, 2026 
Balance on April 30, 2026  $878,000 
Change in fair value of derivative liability   (597,000)
Balance on July 31, 2026  $281,000 

 

The fair values of financial instruments by class as of July 31, 2026 and April 30, 2026 are as follows:

           
            
   Level  July 31, 2026   April 30, 2026 
Financial Assets             
Marketable equity securities  1  $99,462   $254,010 
Money market account  1  $1,616,840   $2,100,703 
Warrant asset - Femasys  3  $66,000   $480,000 
Investment in preferred stock - QCLS  3  $12,675,000   $18,225,000 
Warrant assets - QCLS  3  $5,664,000   $8,845,000 

 

Assumptions used in the valuation of the Level 3 assets include time to expiration, discount rate, risk-free rate, volatility and probability of default.