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Note Payable

12 Months Ended

Apr. 30, 2020

NOTE 6: NOTE PAYABLE

On March 16, 2020, the Company entered into a promissory note payable whereby the Company borrowed $500,000 bearing interest at 12% per annum. Interest on the note is payable monthly and outstanding principal on the note is due in full on March 16, 2022.

Future scheduled maturities of long-term debt are as follows.

	Year Ended
	April 30,

2021	$	-
2022		500,000
Total	$	500,000

In connection with the promissory note payable on March 16, 2020, the Company issued warrants to purchase 500,000 shares of the Company’s common stock at an exercise price equal to a 40% discount of the market price of the Company’s stock, as defined in the agreement. The warrants expire on March 16, 2022 and are fully vested upon issuance. The note was discounted by $112,990 allocated from the valuation of the warrants issued. The discount recorded on the note is being amortized as interest expense through the maturity date, which amounted to $6,965 for year ended April 30, 2020. As of April 30, 2020, the net book value of the promissory note amounted to $393,975 including the principal amount outstanding of $500,000 net of the remaining discount of $106,025.