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Business Combination | 8 Months Ended
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Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Business Combination | Note 3 – Business Combination On September 4, 2024, the Company entered into an Asset Purchase Agreement (the “APA”) with FlightWave Aerospace Systems Corporation (the “Seller”) to broaden the Company’s range of drone products. The seller sold certain assets used in designing, developing, manufacturing, and selling long range, AI-powered UAVs for commercial use. Pursuant to the APA, the Company has acquired substantially all of the assets owned, controlled or used by the Seller for an aggregate purchase price of $14,000,000 worth of shares of the Company’s common stock, and as such, the asset purchase will be treated as a business combination. The purchase price is payable as follows:
| ● | $7 million worth of the Company’s common stock issued on September 30, 2024, totaling 2,544,991 shares, equal to the VWAP on such date.
| ● | $7 million worth of the Company’s common stock issued on December 31, 2024, totaling 819,830 shares, equal to the VWAP on such date.
Goodwill for FlightWave is ascribed to existing relationships with several U.S. government agencies including classification as approved vendors. The Company has reported net losses since its inception and is presently unable to determine when and if the tax benefit of this deduction will be realized. The summary of the purchase price and its related allocation at fair market value is as follows: Schedule of Business Acquisitions of Purchase Price at Fair Market Value
Shares issued |  | $ | 14,000,000 |
Total Purchase Price |  | $ | 14,000,000 |
Assets acquired |  |  |  |
Inventory |  | $ | 297,630 |
Operating lease right-of-use assets |  |  | 128,433 |
Other assets |  |  | 69,480 |
Brand name |  |  | 567,000 |
Backlog |  |  | 276,000 |
Customer relationships |  |  | 900,000 |
Proprietary technology |  |  | 3,705,000 |
Goodwill |  |  | 8,675,565 |
Total assets acquired |  |  | 14,619,108 |
Liabilities assumed |  |  |  |
Accounts payable and accrued expenses |  |  | 264,493 |
Customer deposits |  |  | 196,476 |
Operating lease liabilities |  |  | 158,139 |
Total liabilities assumed |  |  | 619,108 |
Total fair value of net assets acquired |  | $ | 14,000,000 |
Brand name, backlog, customer relationships and proprietary technology are included in intangible assets on the consolidated balance sheets. The carrying value of brand name is not being amortized but is reviewed quarterly and formally evaluated at year end for impairment. Backlog, customer relationships and proprietary technology are being amortized over seven years. The excess of the purchase price above the net assets acquired was recorded as goodwill which is reviewed quarterly and formally evaluated at year end. Consolidated Results of Operations During the period from the FlightWave acquisition date through December 31, 2024, the Company’s consolidated results of operations included $958,156 of operating losses associated with the results of operations of FlightWave. Supplemental Unaudited Pro Forma Financial Information The following unaudited pro forma financial information summarizes the results of operations for the Company as though the Business Combination had occurred on May 1, 2022. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisition taken place on the date indicated, or the future consolidated results of operations of the Company. Schedule of Business Acquisitions of Pro Forma Information
|  | Eight months ended December 31, 2024 |
|  | Consolidated |
Revenues |  | $ | 5,491,703 |
Net Loss |  |  | (45,289,076 | )
Loss per share – basic and diluted |  |  | (0.59 | )
|  | Year ended April 30, 2024 |
|  | Consolidated |
Revenues |  | $ | 18,872,309 |
Net Loss |  |  | (26,127,024 | )
Loss per share – basic and diluted |  |  | (0.43 | )
|  | Year ended April 30, 2023 |
|  | Consolidated |
Revenues |  | $ | 4,697,094 |
Net Loss |  |  | (30,298,992 | )
Loss per share – basic and diluted |  |  | (0.56 | )

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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