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Note 16 – Warrants | 3 Months Ended
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Jul. 31, 2022
Note 16 Warrants |
Note 16 – Warrants | Note 16 – Warrants The company issued five-year warrants in connection with two convertible note financings. The warrants have an initial exercise price of $1.50 which may be reduced to a 25% discount of the price per share of Common Stock offered in a future qualified offering. The warrants were valued using the multinominal lattice model and are considered derivative liabilities under ASC 815-40. The value of the warrants was included in the determination of the initial accounting for each financing including the calculation of the derivative liability and related expense. A summary of the warrants issued and their fair values were:
|  | Upon Issuance |  | July 31, 2022
Date of Transaction |  | Number of Warrants |  | Initial Fair Value |  | Number of Warrants |  | Fair Value
| October 2020 |  |  |  | 399,998 |  |  | $ | 267,999 |  |  |  | 266,666 |  |  | $ | 557,297 |
| January 2021 |  |  |  | 675,000 |  |  | $ | 2,870,666 |  |  |  | 540,000 |  |  | $ | 1,143,122 |
In March and April 2021, we received $201,249 related to the exercise of 201,666 of the warrants. Since these exercises resulted in the elimination of the derivative liability in the warrants, the derivative liability was reduced by $694,305 with a corresponding increase in additional paid in capital. In June 2021, we received $99,999 in connection with the exercise of 66,666 additional warrants which resulted in the elimination of an additional $163,141 of the derivative liability in the warrants. In May 2021, the Company issued warrants to purchase 200,000 shares of common stock to the placement agent of its common stock offering. The warrants have a five-year term and an exercise price of $5.00. In July 2021, the Company issued warrants to purchase 533,333 shares of common stock to the placement agent of its common stock offering. The warrants have a five-year term and an exercise price of $5.625. The following table presents the range of assumptions used to estimate the fair values of warrants granted during the three months ended July 31:
|  |  | 2022 |  |  |  | 2021 |
Risk-free interest rate |  |  | — |  |  |  | 0.79 – 0.85% |
Expected dividend yield |  |  | — |  |  |  | — |
Expected term (in years) |  |  | — |  |  |  | 5.00 – 5.00 |
Expected volatility |  |  | — |  |  |  | 222.45 – 223.17% |
The following table summarizes the changes in warrants outstanding since April 30, 2021.
|  | Number of Shares |  | Weighted-average Exercise Price per Share |  | Weighted-average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
| Balance as of April 30, 2021 | 873,332 |  |  |  | 1.50 |  |  |  | 4.62 |  |  |  | 2,218,263 |
| Granted |  |  | 733,333 |  |  | $ | 5.45 |  |  |  |  |  |  |  |  |
| Exercised |  |  | (66,666 | ) |  |  | 1.50 |  |  |  |  |  |  |  |  |
| Outstanding as of April 30, 2022 | 1,539,999 |  |  |  | 3.38 |  |  |  | 3.89 |  |  | $ | 427,533 |
| Granted | — |  |  |  |  |  |  |  |  |  |  |  |  |
| Exercised | — |  |  |  |  |  |  |  |  |  |  |  |  |
| Outstanding at July 31, 2022 | 1,539,999 |  |  | $ | 3.38 |  |  |  | 3.63 |  |  | $ | 540,466 |

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