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NOTE PAYABLE - RELATED PARTY
 3 Months Ended
Jul. 31, 2022
Debt Disclosure [Abstract]  
NOTE PAYABLE - RELATED PARTY

Note 9: NOTE PAYABLE - RELATED PARTY

 

The discussion of note payable – related party only includes those that existed as of April 30, 2022. For a discussion of all prior note payable – related party we refer you to the Annual Report on Form 10-K filed May 17, 2023 for the fiscal year end April 30, 2022.

 

On January 14, 2022, the Company entered into two loan agreements with related party lenders, each for $1,000,000, pursuant to which the Company received a total amount of $2,000,000. The loans bear interest at a rate of 8% per annum and are required to be repaid in full by April 30, 2022 or such other date as may be accepted by the lenders. The Company is not permitted to make any distribution or pay any dividends unless or until the loans are repaid in full. On June 28, 2022, the Company entered into amendments for the two related party loan agreements with the lenders in which the repayment date was extended to July 31, 2024.

 

There was $2,000,000 in outstanding borrowings from related parties as of July 31, 2022 and April 30, 2022. Interest expense related to the related parties for the three months ended July 31, 2022 and 2021 amounted to $61,121 and $56,233, respectively. Accrued interest due to related parties as of July 31, 2022 and April 30, 2022 amounted to $969,876 and $908,756, respectively. The accrued interest includes notes that were either repaid or onverted but the interest remained.