Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Note 13 – Investments
During fiscal 2019, the Company entered into a consulting contract with NetCapital Systems LLC (“Netcapital”), which allows the Company to receive up to 1,000 membership interest units of NetCapital in return for consulting services. As of April 30, 2019, the Company had earned 709 membership interest units, and the remaining 291 units can be earned on a straight-line basis over the 14-month period ended June 30, 2020. At January 31, 2020, the Company had earned a total of 877 of the 1,000 units and owns 7.1% of Netcapital.
On January 2, 2020, the Company entered into a consulting contract with Deuce Drones LLC (“Drones”), which allows the Company to receive up to 2,350,000 membership interest units of Drones in return for consulting services. As of January 31, 2020, the Company had earned 2,000,000 membership interest units, and the remaining 350,000 units can be earned in exchange for marketing services over an anticipated period of three months. The Company owns approximately 17% of Drones at January 31, 2020.
In August 2019 the Company entered into a consulting contract with Kingscrowd LLC (“Kingscrowd”), which allowed the Company to receive up to 540,000 membership interest units of Kingscrowd in return for consulting services. All units have been earned. The Company owns approximately 18% of Kingscrowd at January 31, 2020.
The following table summarizes the components of investments as of January 31, 2020 and April 30, 2019:
The above investments do not have a readily determinable fair value, as identified in ASC 321-10-35-2, and all investments are measured at cost less impairment. The Company monitors the investments for any changes in observable prices from orderly transactions. For the nine and three-month periods ended January 31, 2020 and 2019, the Company has not recorded any unrealized gains or losses for the above investments. |
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