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INCOME TAXES | 12 Months Ended
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Apr. 30, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | Note 14: 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, 2023 and 2022. 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
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 3,049,000 |  |  | $ | 2,166,000 |
Stock options |  |  | 8,454,000 |  |  |  | 8,259,000 |
Capital loss carryforward/Disposal |  |  | 11,039,000 |  |  |  | — |
Related party accruals |  |  | 1,001,000 |  |  |  | 799,000 |
Inventory reserve |  |  | 133,000 |  |  |  | 100,000 |
Interest deferral |  |  | 221,000 |  |  |  | 191,000 |
Start-up costs |  |  | 81,000 |  |  |  | 84,000 |
Other |  |  | 131,000 |  |  |  | 57,000 |
Valuation allowance |  |  | (24,109,000 | ) |  |  | (11,656,000 | )
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, 2023 and 2022: SCHEDULE OF INCOME TAX PROVISION
|  | 2023 |  |  | 2022 |
Income tax benefit based on book loss at US statutory rate |  | $ | (10,983,000 | ) |  | $ | (10,259,000 | )
Share-based compensation and shares for services |  |  | — |  |  |  | — |
Debt discount amortization |  |  | 860,000 |  |  |  | 1,841,000 |
Related party accruals |  |  | 226,000 |  |  |  | 150,000 |
Stock options |  |  | (145,000 | ) |  |  | 6,815,000 |
Interest expense |  |  | 79,000 |  |  |  | 5,000 |
Depreciation |  |  | (18,000 | ) |  |  | 21,000 |
Inventory reserve |  |  | 26,000 |  |  |  | 55,000 |
Interest deferral |  |  | (5,000 | ) |  |  | 13,000 |
Acquisition costs |  |  | 260,000 |  |  |  | 1,268,000 |
Accrued legal |  |  | (76,000 | ) |  |  | 76,000 |
Loss on sale of capital assets |  |  | 8,713,000 |  |  |  | — |
Accrued payroll |  |  | — |  |  |  | — |
Change in fair value of derivatives |  |  | 481,000 |  |  |  | (1,298,000 | )
Other |  |  | 40,000 |  |  |  | (29,000 |
Valuation allowance |  |  | 542,000 |  |  |  | 1,342,000 |
Total income tax provision |  | $ | — |  |  | $ | — |
The Company had net operating loss carryforwards of $17,038,000 and $12,366,000 as of April 30, 2023 and 2022, respectively, which may be available to be used to offset future taxable income in the US for the years ended 2024 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
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss carryforwards |  | $ | 241,000 |  |  | $ | 234,000 |
Start-up costs |  |  | — |  |  |  | — |
Research and development costs |  |  | (113,000 | ) |  |  | (113,000 | )
Valuation allowance |  |  | (128,000 | ) |  |  | (121,000 | )
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, 2023 and 2022: SCHEDULE OF INCOME TAX PROVISION
|  | 2023 |  |  | 2022 |
Income tax provision (benefit) based on book income (loss) at Israeli statutory rate |  | $ | (54,000 | ) |  | $ | (56,000 | )
Valuation allowance |  |  | 54,000 |  |  |  | 56,000 |
Total income tax provision |  | $ | — |  |  | $ | — |
The Company had net operating loss carryforwards of approximately $1,049,000 and $1,020,000 as of April 30, 2023 and 2022, 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, 2023 and 2022.

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