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Income Taxes | 12 Months Ended
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Apr. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 10: INCOME TAXES The Company does business in the US through its subsidiaries Slinger Bag Inc. and Slinger Bag Americas. It also does business in Israel through SBL, whose operations are reflected in the Company’s consolidated financial statements from May 1, 2019 on, the beginning of the earliest period in which the entities were under common control. Net deferred tax assets from operations in the US, using an effective tax rate of 21%, consisted of the following.
|  | April 30, |  |  | April 30, |
|  | 2020 |  |  | 2019 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 301,000 |  |  | $ | 9,500 |
Depreciation |  |  | - |  |  |  | (400 | )
Related party accruals |  |  | 79,000 |  |  |  | - |
Start-up costs |  |  | 61,000 |  |  |  | - |
Valuation allowance |  |  | (441,000 | ) |  |  | (9,100 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
The income tax provision differs from the amount of income tax determined by applying the applicable US statutory income tax rate of 21% to pretax loss due to the following for the year ended April 30, 2020 and 2019.
|  | April 30, |  |  | April 30, |
|  | 2020 |  |  | 2019 |
Income tax benefit based on book loss at US statutory rate |  | $ | (1,273,000 | ) |  | $ | (5,900 | )
Stock-based compensation |  |  | 786,000 |  |  |  | - |
Debt discount amortization |  |  | 15,000 |  |  |  | - |
Related party accruals |  |  | 79,000 |  |  |  | - |
Start up costs |  |  | 61,000 |  |  |  | - |
Interest expense |  |  | 41,000 |  |  |  | - |
Meals and entertainment |  |  | 1,000 |  |  |  | - |
Depreciation |  |  | - |  |  |  | 400 |
Valuation allowance |  |  | 290,000 |  |  |  | 5,500 |
Total income tax provision |  | $ | - |  |  | $ | - |
The Company had net operating loss carryforwards of approximately $1,424,000 as of April 30, 2020 which can be used to offset future taxable income in the US from the year 2021 through 2040. Tax years that remain subject to examination are 2017 and forward. Net deferred tax assets from operations in Israel , using an effective tax rate of 23%, consisted of the following. The net deferred tax assets as of April 30, 2019 represent the amounts from SBL contributed to the Company on May 1, 2019.
|  | April 30, |  |  | April 30, |
|  | 2020 |  |  | 2019 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 384,000 |  |  | $ | 201,000 |
Accrued expenses |  |  | 63,000 |  |  |  | 16,000 |
Research and development costs |  |  | 23,000 |  |  |  | - |
Valuation allowance |  |  | (470,000 | ) |  |  | (216,000 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
The income tax provision differs from the amount of income tax determined by applying the applicable Israeli statutory income tax rate of 23% to pretax loss due to the following for the year ended April 30, 2020. As the net assets of SBL were contributed on May 1, 2019, there is no income tax provision related to the year ended April 30, 2019.
|  | April 30, |
|  | 2020 |
Income tax benefit based on book loss at Israeli statutory rate |  | $ | (728,000 | )
Debt discount amortization |  |  | 430,000 |
Related party accruals |  |  | 44,000 |
Travel |  |  | 38,000 |
Research and development |  |  | 23,000 |
Other non-deductible items |  |  | 9,000 |
Valuation allowance |  |  | 184,000 |
Total income tax provision |  | $ | - |
The Company had net operating loss carryforwards of approximately $1,671,000 as of April 30, 2020 which can be used to offset future taxable income in Israel. All of the Company’s tax years since inception are open for examination. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense. There were no interest or penalties recognized in the accompanying consolidated statements of operations for the year ended April 30, 2020 or 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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