v3.24.1
Investments
 9 Months Ended
Jan. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments

Note 13 – Investments

 

In the three-month period ended January 31, 2024, the Company received equity securities from 6 issuers that closed on the sale of securities on the Netcapital Funding Portal. In addition to cash fees, various issuers pay the Company a fee of 1% of the equity securities sold on the funding portal. As of January 31, 2024, the Company received 8,989 shares of common stock of Avadain, Inc., valued at $44,945; 12 membership units of Averroes Software LLC, valued at $120; 13 shares of common stock of NeuraMetrix, Inc., valued at $117; 1,366 shares of common stock of Recruiting Analytics Inc., valued at $1,626; 422 membership units of Harvest Today, LLC, valued at $1,266; and 939 shares of common stock of VideoXRM, Inc., valued at $939.

 

In May 2023, the Company received 2,853,659 units of RealWorld LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.41 per unit based on a sales price of $0.41 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,170,000. As of January 31, 2024, the Company owned 2,853,659 units which are valued at $1,170,000.

 

In April 2023, the Company received 2,853,659 units of HeadFarm LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.41 per unit based on a sales price of $0.41 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,170,000. As of January 31, 2024 and April 30, 2023, the Company owned 2,853,659 units which are valued at $1,170,000.

 

In April 2023, the Company received 2,853,659 units of CupCrew LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.41 per unit based on a sales price of $0.41 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,170,000. As of January 31, 2024 and April 30, 2023, the Company owned 2,853,659 units which are valued at $1,170,000.

 

 

In April 2023, the Company received 2,853,659 units of CountSharp LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.41 per unit based on a sales price of $0.41 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,170,000. As of January 31, 2024 and April 30, 2023, the Company owned 2,853,659 units which are valued at $1,170,000.

 

In January 2023, the Company received 2,100,000 units of Dark LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $1.00 per unit based on a sales price of $1.00 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $2,100,000. As of January 31, 2024 and April 30, 2023, the Company owned 2,100,000 units which are valued at $2,100,000.

 

In August 2022, the Company received 1,911,765 units of NetWire LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.68 per unit based on a sales price of $0.68 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,300,000. As of January 31, 2024 and April 30, 2023, the Company owned 1,911,765 units which are valued at $1,300,000.

 

In May 2022, the Company received 1,764,706 units of Reper LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.68 per unit based on a sales price of $0.68 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,200,000. As of January 31, 2024 and April 30, 2023, the Company owned 1,764,706 units which are valued at $1,200,000.

 

In April 2022, the Company received 3,000,000 units of Cust Corp. as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.40 per unit based on a sales price of $0.40 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $1,200,000. As of January 31, 2024 and April 30, 2023, the Company owned 3,000,000 units which are valued at $1,200,000.

 

In January 2022, the Company received 1,700,000 units of ScanHash LLC as a payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied $425,000 of an accounts receivable balance. As of January 31, 2024 and April 30, 2023, the Company owned 1,700,000 units which are valued at $425,000.

 

In January 2022, the Company received 2,850,000 units of Hiveskill LLC as payment for services rendered in conjunction with a crowdfunding offering. The units are valued at $0.25 per unit based on a sales price of $0.25 per unit on an online funding portal. The receipt of the units satisfied an accounts receivable balance of $712,500. As of January 31, 2024 and April 30, 2023, the Company owned 2,850,000 units which are valued at $712,500.

 

 

In fiscal 2022, the Company purchased a 10% interest, or 400 shares of common stock, in Caesar Media Group Inc. (“Caesar”) for an initial purchase price of 50,000 shares of the Company’s common stock, valued at $500,000. Caesar is a marketing and technology solutions provider. The purchase agreement included additional contractual requirements for the Company and Caesar, including the issuance of an additional 150,000 shares of common stock of the Company over a two-year period, which have all been issued as of October 31, 2023. As of January 31, 2024 and April 30, 2023, there have been no observable price changes in the value of the Caesar’s common stock and the Company has valued its ownership in Caesar at cost, which amounted to $1,999,127 as of January 31, 2024, and $1,632,752 as of April 30, 2023.

 

In May 2020, the Company entered a consulting contract with Watch Party LLC (“WP”), which allowed the Company to receive 110,000 membership interest units of WP in return for consulting services. The Company earned 97,500 membership interest units in the quarter ended July 31, 2020. The WP units are valued at $2.14 per unit based on a sales price of $2.14 per unit on an online funding portal. As of January 31, 2024 and April 30, 2023, the Company owned 110,000 WP units, which are valued at $440,000.

 

In May 2020, the Company entered a consulting contract with ChipBrain LLC (“Chip”), which allowed the Company to receive 710,200 membership interest units of Chip in return for consulting services. The Chip units were initially valued at $0.93 per unit based on a sales price of $0.93 per unit on an online funding portal. Subsequently, Chip sold identical units for $2.40 per unit, and as of January 31, 2024 and April 30, 2023, the 710,200 units owned by the Company are valued at $3,366,348.

 

In May 2020, the Company entered a consulting contract with a related party, Zelgor Inc. (“Zelgor”), which allowed the Company to receive 1,400,000 shares of common stock of Zelgor in return for consulting services. The Zelgor shares are valued at $1.00 per share based on a sales price of $1.00 per share on an online funding portal. As of January 31, 2024 and April 30, 2023, the Company owned 1,400,000 shares which are valued at $1,400,000.

 

On January 2, 2020, the Company entered a consulting contract with Deuce Drone LLC (“Drone”), which allowed the Company to receive 2,350,000 membership interest units of Drone in return for consulting services. The Drone units were originally valued at $0.35 per unit based on a sales price of $0.35 per unit when the units were earned, or $822,500. Drone subsequently sold identical Drone units for $1.00 per unit on an online funding portal and as of January 31, 2024 and April 30, 2023, the units owned by the Company are valued at $2,350,000.

 

In August 2019, the Company entered into a consulting contract with KingsCrowd LLC (“KingsCrowd”), which allowed the Company to receive 300,000 membership interest units of KingsCrowd in return for consulting services. The KingsCrowd units were valued at $1.80 per unit based on a sales price of $1.80 per unit when the units were earned, or $540,000. In December 2020, KingsCrowd converted from a limited liability company to a corporation to facilitate raising capital under Regulation A. KingsCrowd filed a Form 1-A Offering Statement under the Securities Act of 1933 and is selling shares at $1.00 per share. In connection with the conversion to a corporation, each membership interest unit converted into 12.71915 shares of common stock. The Company sold 606,060 shares of KingsCrowd in June 2022 for proceeds of $200,000 and recorded a realized loss on the sale of the investment of $406,060. KingsCrowd filed a post qualification offering circular amendment on July 21, 2022 and continued to sell shares of common stock to the public for $1.00 per share. On March 1, 2024, KingsCrowd filed a Form 1-SA that disclosed it had sold shares of common stock at a price of $0.16 per share. The Company noted that this observable price change occurred before January 31, 2024, and consequently recorded an unrealized loss on equity securities of $2,696,135 for the three- and nine-month periods ended January 31, 2024. As of January 31, 2024 and April 30, 2023, the Company owned 3,209,685 shares of KingsCrowd valued at $513,550 and $3,209,685, respectively.

 

During fiscal 2019, the Company entered a consulting contract with NetCapital Systems LLC (“NetCapital”), which allowed the Company to receive up to 1,000 membership interest units of NetCapital in return for consulting services. The Company earned all 1,000 Netcapital units but sold a portion of the units in fiscal 2020 at a sales price of $91.15 per unit. As of January 31, 2024 and April 30, 2023, the Company owned 528 Netcapital units, at a value of $48,128.

 

 

In July 2020 the Company entered a consulting agreement with Vymedic, Inc. for a $40,000 fee over a 5-month period. Half the fee was payable in stock and half was payable in cash. As of January 31, 2024 and April 30, 2023, the Company owned 4,000 units, at a value of $11,032.

 

In August 2020 the Company entered a consulting agreement with C-Reveal Therapeutics LLC (“CRT”). for a $120,000 fee over a 12-month period. $50,000 of the fee was payable in CRT units. As of January 31, 2024 and April 30, 2023, the Company owned 5,000 units, at a value of $50,000.

 

The following table summarizes the components of investments as of January 31, 2024 and April 30, 2023:

 

   January 31, 2024   April 30, 2023 
         
Netcapital Systems LLC  $48,128   $48,128 
MustWatch LLC   440,000    440,000 
Zelgor Inc.   1,400,000    1,400,000 
ChipBrain LLC   3,366,348    3,366,348 
Vymedic Inc.   11,032    11,032 
C-Reveal Therapeutics LLC   50,000    50,000 
Deuce Drone LLC   2,350,000    2,350,000 
Hiveskill LLC   712,500    712,500 
ScanHash LLC   425,000    425,000 
Caesar Media Group Inc.   1,999,127    1,632,752 
Cust Corp.   1,200,000    1,200,000 
Kingscrowd Inc.   513,550    3,209,685 
Reper LLC   1,200,000    1,200,000 
Dark LLC   2,100,000    2,100,000 
Netwire LLC   1,300,000    1,300,000 
CountSharp LLC   1,170,000    1,170,000 
CupCrew LLC   1,170,000    1,170,000 
HeadFarm LLC   1,170,000    1,170,000 
RealWorld LLC   1,170,000    — 
Avadain, Inc.   44,945    — 
Averroes Software LLC   120    — 
NeuraMetrix, Inc.   117    — 
Recruiting Analytics Inc.   1,626    — 
Harvest Today, LLC   1,266    — 
VideoXRMn Inc.   939    — 
Total  $21,844,698   $22,955,445 

 

The above investments in equity securities are within the scope of ASC 321. The Company monitors the investments for any changes in observable prices from orderly transactions. All investments are initially measured at cost and evaluated for changes in estimated fair value.