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INCOME TAXES | 12 Months Ended
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Apr. 30, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | Note 16: 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. The Company’s operations in Canada, Israel, and the UK were immaterial for the years ended April 30, 2022 and 2021. Net deferred tax assets from operations in the US, using an effective tax rate of 21%, consisted of the following: SCHEDULE OF NET DEFERRED TAX ASSETS
|  | 2022 |  |  | 2021 |
|  | April 30, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 2,166,000 |  |  | $ | 788,400 |
Stock options |  |  | 8,259,000 |  |  |  | — |
Accrued payroll |  |  | — |  |  |  | 333,700 |
Related party accruals |  |  | 799,000 |  |  |  | 194,400 |
Inventory reserve |  |  | 100,000 |  |  |  | — |
Interest deferral |  |  | 191,000 |  |  |  | — |
Start-up costs |  |  | 84,000 |  |  |  | 109,600 |
Other |  |  | 57,000 |  |  |  | 17,900 |
Valuation allowance |  |  | (11,656,000 | ) |  |  | (1,444,000 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
The income tax provision differs from the amount of income tax determined by applying the applicable statutory income tax rate to pretax loss due to the following for the years ended April, 30 2022 and 2021: SCHEDULE OF INCOME TAX PROVISION
|  | 2022 |  |  | 2021 |
|  | April 30, |
|  | 2022 |  |  | 2021 |
Income tax benefit based on book loss at US statutory rate |  | $ | (10,259,000 | ) |  | $ | (3,832,300 | )
Share-based compensation and shares for services |  |  | — |  |  |  | 188,100 |
Debt discount amortization |  |  | 1,841,000 |  |  |  | 79,100 |
Related party accruals |  |  | 150,000 |  |  |  | 127,800 |
Start-up costs |  |  | 6,815,000 |  |  |  | — |
Interest expense |  |  | 5,000 |  |  |  | 2,630,000 |
Depreciation |  |  | 21,000 |  |  |  | — |
Inventory reserve |  |  | 55,000 |  |  |  | — |
Interest deferral |  |  | 13,000 |  |  |  | — |
Acquisition costs |  |  | 1,268,000 |  |  |  | — |
Accrued legal |  |  | 76,000 |  |  |  | — |
Loss on extinguishment of debt |  |  | — |  |  |  | 636,400 |
Accrued payroll |  |  | — |  |  |  | 215,400 |
Gain on change in fair value of derivatives |  |  | (1,298,000 | ) |  |  | (407,300 | )
Other |  |  | (29,000 | ) |  |  | 1,500 |
Valuation allowance |  |  | 1,342,000 |  |  |  | 361,300 |
Total income tax provision |  | $ | — |  |  | $ | — |
CONNEXA SPORTS TECHNOLOGIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company had net operating loss carryforwards of $12,366,000 and $3,032,000 as of April 30, 2022 and 2021, respectively, which may be available to be used to offset future taxable income in the US for the years ended 2023 through 2042. The utilization of the Company’s net operating losses may be subject to a U.S. federal limitation due to the “change in ownership provisions” under Section 382 of the Internal Revenue Code and other similar limitations in various state jurisdictions. Such limitations may result in a reduction of the amount of net operating loss carryforwards in future years and possibly the expiration of certain net operating loss carryforwards before their utilization. The Company has not completed a full study to assess whether an “ownership change” as defined in Section 382 has occurred or whether there have been multiple ownership changes since inception. Future changes in the Company’s stock ownership, which may be outside of the Company’s control, may trigger an “ownership change”. In addition, future equity offerings or acquisitions that have equity as a component of the purchase price could result in an “ownership change”. Tax years that remain subject to examination are 2018 and forward. Net deferred tax assets from operations in Israel, using an effective tax rate of 23%, consisted of the following: SCHEDULE OF NET DEFERRED TAX ASSETS
|  | 2022 |  |  | 2021 |
|  | April 30, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 234,000 |  |  | $ | 178,000 |
Start-up costs |  |  | — |  |  |  | 13,000 |
Research and development costs |  |  | (113,000 | ) |  |  | 113,000 |
Valuation allowance |  |  | (121,000 | ) |  |  | (304,000 | )
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% due to the following for the years ended April 30, 2022 and 2021: SCHEDULE OF INCOME TAX PROVISION
|  | 2022 |  |  | 2021 |
|  | April 30, |
|  | 2022 |  |  | 2021 |
Income tax provision (benefit) based on book income (loss) at Israeli statutory rate |  | $ | (56,000 | ) |  | $ | 80,000 |
Research and development costs |  |  | — |  |  |  | 113,000 |
Start-up costs |  |  | — |  |  |  | 13,000 |
Valuation allowance |  |  | 56,000 |  |  |  | — |
Loss carryforward |  |  | — |  |  |  | (206,000 | )
Total income tax provision |  | $ | — |  |  | $ | — |
The Company had net operating loss carryforwards of approximately 1,020,000 and $774,000 as of April 30, 2022 and 2021, respectively, which may be available to 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 comprehensive loss for the years ended April 30, 2022 and 2021.

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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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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