Investments and Investment Impairments

12 Months Ended

Apr. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Note 12 – Investments and Investment Impairments

During the fiscal year ended April 30, 2025, the Company evaluated its equity investments in multiple issuers for impairment in accordance with ASC 321-10-35-3. The Company determined that the fair value of several investments had declined below their carrying amounts and that the declines were other-than-temporary. These conclusions were based on qualitative indicators including the resignation of key personnel, discontinuation of business operations, termination of fundraising efforts, and other adverse developments.

As of April 30, 2024, the Company recorded the following investments at their respective carrying values:

- StockText LLC: $1,220,000

- CupCrew LLC: $1,170,000

- CountSharp LLC: $1,170,000

- HeadFarm LLC: $1,170,000

- RealWorld LLC: $1,170,000

- AceHedge LLC: $1,110,000

- Dark LLC: $2,100,000

- Fantize LLC: $1,110,000

- Caesar Media Group Inc.: $1,999,128

- ChipBrain LLC: $3,366,348

- Deuce Drone LLC: $2,350,000

- MustWatch LLC: 440,000

During the year ended April 30, 2025, the Company determined that the fair value of each of these investments had declined below its carrying value and recognized full impairment charges in accordance with ASC 321-10-35-3.

StockText LLC: The Company holds 2,440,000 units of StockText LLC. The issuer ceased operations, discontinued its fundraising efforts, and returned all investor funds. Based on these factors and the resignation of key personnel, the Company determined the investment was fully impaired. An impairment expense of $1,220,000 was recorded during the fiscal year ended April 30, 2025.

CupCrew LLC: The Company holds 2,853,659 units of CupCrew LLC. The issuer ceased operations, discontinued its fundraising efforts, and returned all investor funds. The Company concluded that its investment was fully impaired. An impairment expense of $1,170,000 was recorded during the fiscal year ended April 30, 2025.

CountSharp LLC: The Company holds 2,853,659 units of CountSharp LLC. Following the resignation of key management and the issuer’s decision to cease fundraising and return funds to investors, the Company determined the investment was fully impaired. An impairment expense of $1,170,000 was recorded during the fiscal year ended April 30, 2025.

HeadFarm LLC: The Company holds 2,853,659 units of HeadFarm LLC. Based on business discontinuation, returning funds to investors and resignation of key personnel, the Company recognized a full impairment of the investment. An impairment expense of $1,170,000 was recorded during the fiscal year ended April 30, 2025.

RealWorld LLC: The Company holds 2,853,659 units of RealWorld LLC. The issuer ceased operations and returned investor funds. The Company recognized a full impairment on the investment. An impairment expense of $1,170,000 was recorded during the fiscal year ended April 30, 2025.

AceHedge LLC: The Company holds 2,816,154 units of AceHedge LLC. The issuer ceased operations and returned funds to investors following adverse business developments. The Company recognized a full impairment on the investment. An impairment expense of $1,110,000 was recorded during the fiscal year ended April 30, 2025.

Dark LLC: The Company holds 2,100,000 units of Dark LLC. The issuer failed to file its annual report with the State of Massachusetts, its registered agent resigned, and all key executives departed. Based on these adverse developments, the Company fully impaired the investment. An impairment expense of $2,100,000 was recorded during the fiscal year ended April 30, 2025.

Fantize LLC: The Company holds 2,816,154 units of Fantize LLC. The issuer ceased operations, returned investor funds, and the Company determined the investment was fully impaired. An impairment expense of $1,110,000 was recorded during the fiscal year ended April 30, 2025.

Caesar Media Group Inc.: The Company holds 400 shares of Caesar Media Group Inc. The issuer failed to file its annual report, did not pay franchise taxes, and has not responded to communication attempts. Based on the lack of activity and unresponsiveness, the Company fully impaired the investment. An impairment expense of $1,999,128 was recorded during the fiscal year ended April 30, 2025.

ChipBrain LLC: The Company holds 710,200 units of ChipBrain LLC. Due to advances in generative AI, the issuer’s core technology became obsolete. The company also failed to file required state reports and taxes. Based on these combined factors, the Company recorded a full impairment. An impairment expense of $3,366,348 was recorded during the fiscal year ended April 30, 2025.

Deuce Drone LLC: The Company holds 2,350,000 units of Deuce Drone LLC. The issuer was listed as inactive in Delaware, failed to file its annual report, and experienced the resignation of key personnel and its registered agent. These indicators supported a full impairment of the investment. An impairment expense of $2,350,000 was recorded during the fiscal year ended April 30, 2025.

MustWatch LLC: The Company holds 110,000 units of MustWatch LLC. The issuer was listed as inactive in Delaware, failed to file its annual report, withdrew its app from Google Play and has not updated its website for more than two years. These indicators supported a full impairment of the investment. An impairment expense of $440,000 was recorded during the fiscal year ended April 30, 2025.

On January 31, 2025, the Company determined that its investment in NetWire LLC was fully impaired and recorded an impairment expense of $1,300,000. NetWire LLC ceased operations, discontinued its fundraising efforts, and returned all investor funds. In addition, key personnel resigned. Based on these factors, the Company concluded that the fair value of the investment was more likely than not below its carrying value and that the decline was other-than-temporary.

Each impairment determination was made pursuant to ASC 321-10-35-3 based on qualitative indicators that the fair value of each investment was more likely than not below its carrying value and that the decline in fair value was other-than-temporary. The Company does not expect to recover any value from these investments.

Other Investments

In May 2022, the Company received 1,764,706 units of Reper LLC as non-cash consideration for services rendered in connection with a crowdfunding offering. The units were valued at $0.68 per unit, based on an observable sales price on an online funding portal at the time of issuance. The receipt of the units satisfied an accounts receivable balance of $1,200,000. As of April 30, 2025 and 2024, the Company continued to hold 1,764,706 units of Reper LLC. The Company evaluated the investment for impairment as of each reporting date and determined that no indicators of impairment were present. Accordingly, the investment is recorded at $1,200,000 as of April 30, 2025 and 2024.

In April 2022, the Company received 3,000,000 units of Cust Corp. as non-cash consideration for services rendered in conjunction with a crowdfunding offering. The units were 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 in fiscal 2022 satisfied an accounts receivable balance of $1,200,000. As of April 30, 2025 and 2024, 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 non-cash consideration for services rendered in conjunction with a crowdfunding offering. The units were 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 in fiscal 2022 satisfied an accounts receivable balance of $425,000. As of April 30, 2025 and 2024, 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 non-cash consideration for services rendered in conjunction with a crowdfunding offering. The units were 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 in fiscal 2022 satisfied an accounts receivable balance of $712,500. As of April 30, 2025 and 2024, the Company owned 2,850,000 units, which are valued at $712,500.

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 April 30, 2025 and 2024, the Company owned 1,400,000 shares which are valued at $1,400,000.

In August 2019, the Company entered into a consulting agreement with KingsCrowd LLC, pursuant to which it earned 300,000 membership interest units in exchange for services. These units were valued at $1.80 per unit, totaling $540,000. In December 2020, KingsCrowd converted to a corporation and each membership interest unit converted into 12.71915 shares of common stock, resulting in the Company holding 3,815,745 shares. In June 2022, the Company sold 606,060 shares for proceeds of $200,000 and recognized a realized loss of $406,060. As of April 30, 2025 and 2024, the Company held 3,209,685 shares.

During fiscal 2024, KingsCrowd disclosed in regulatory filings that it had sold shares at $0.16 per share. Based on this observable price change, the Company recorded an unrealized loss of $2,696,135 on its investment for the year ended April 30, 2024. In fiscal 2025, KingsCrowd completed a Regulation CF offering at $0.18 per share, resulting in an unrealized gain of $64,193. Accordingly, the Company valued its investment in KingsCrowd at $577,743 and $513,550 as of April 30, 2025 and 2024, respectively.

During fiscal 2019, the Company entered into a consulting agreement with Systems DE, pursuant to which it earned 1,000 membership interest units in exchange for services. The Company sold a portion of the units in fiscal 2020 at a price of $91.15 per unit and retained 528 units as of April 30, 2024, valued at $48,128. In fiscal 2025, a member of Systems DE sold units at a price of $3.76 per unit, representing an observable price change. Based on this sale, the Company revalued its remaining 528 units and recorded an unrealized loss of $46,143, reducing the investment’s carrying value to $1,985 as of April 30, 2025.

This unrealized loss of $46,143 was netted with the $64,193 unrealized gain on KingsCrowd shares, resulting in a net gain of $18,050, which is included in other income for the year ended April 30, 2025.

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 April 30, 2025 and 2024, 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 April 30, 2025 and 2024, the Company owned 5,000 units, at a value of $50,000.

Beginning in fiscal 2024, the Company’s funding portal charges issuers a fee of 1% of the equity securities sold on the funding portal, along with a fee of 4.9% of the cash proceeds from the sale of these securities. The value of the 1% equity fee ranged from $117, from an issuer that raised approximately $11,700, to $44,945 from an issuer that raised approximately $4,494,500. As of April 30, 2025, the Company received equity securities from 61 issuers, valued at a total of $169,790, which resulted in non-cash revenue of $97,700 for the year ended April 30, 2025. As of April 30, 2024, 30 issuers accounted for investments totaling $97,700.

The following table summarizes the components of investments as of April 30, 2025 and 2024:

Schedule of Investments

	April 30, 2025		April 30, 2024

Systems DE	$	1,985	$	48,128
MustWatch LLC		-		440,000
Zelgor Inc.		1,400,000		1,400,000
ChipBrain LLC		-		3,366,348
Vymedic Inc.		11,032		11,032
C-Reveal Therapeutics LLC		50,000		50,000
Deuce Drone LLC		-		2,350,000
Hiveskill LLC		712,500		712,500
ScanHash LLC		425,000		425,000
Caesar Media Group Inc.		-		1,999,128
Cust Corp.		1,200,000		1,200,000
Kingscrowd Inc.		577,743		513,550
Reper LLC		1,200,000		1,200,000
Dark LLC		-		2,100,000
Netwire LLC		-		1,300,000
CountSharp LLC		-		1,170,000
CupCrew LLC		-		1,170,000
HeadFarm LLC		-		1,170,000
RealWorld LLC		-		1,170,000
Acehedge LLC		-		1,110,000
Fantize LLC		-		1,110,000
StockText LLC		-		1,220,000
Issuers that paid a 1% equity fee to the funding portal		169,790		97,700
Total	$	5,748,050	$	25,333,386
Investment owned at cost	$	5,748,050	$	25,333,386

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.

In accordance with ASC 321, the Company uses the measurement alternative for equity securities without readily determinable fair values. The table below summarizes the annual and cumulative adjustments for these investments. The Company evaluates these investments for impairment and adjusts their carrying amounts based on observable price changes in orderly transactions for identical or similar investments of the same issuer.

	Original Cost		Value at April 30, 2025		Value at April 30, 2024		Annual Adjustment 2025			Annual Adjustment 2024			Cumulative Adjustment

Systems DE	$	234,080	$	1,985	$	48,128	$	(46,143	)	$	-		$	(232,095	)
MustWatch LLC		235,400		-		440,000		(440,000)			-			(235,400	)
Zelgor Inc.		1,400,000		1,400,000		1,400,000		-			-			-
ChipBrain LLC		660,486		-		3,366,348		(3,366,348	)		-			(660,486	)
Vymedic Inc.		20,000		11,032		11,032		-			-			(8,968	)
C-Reveal Therapeutics LLC		50,000		50,000		50,000		-			-			-
Deuce Drone LLC		822,500		-		2,350,000		(2,350,000	)		-			(822,500	)
Hiveskill LLC		712,500		712,500		712,500		-			-			-
ScanHash LLC		425,000		425,000		425,000		-			-			-
Caesar Media Group Inc.		1,999,128		-		1,999,128		(1,999,128	)		-			(1,999,128	)
Cust Corp.		1,200,000		1,200,000		1,200,000		-			-			-
Kingscrowd Inc.		454,231		577,743		513,550		64,193			(2,696,135	)		123,512
Reper LLC		1,200,000		1,200,000		1,200,000		-			-			-
Dark LLC		2,100,000		-		2,100,000		(2,100,000	)		-			(2,100,000	)
Netwire LLC		1,300,000		-		1,300,000		(1,300,000	)		-			(1,300,000	)
CountSharp LLC		1,170,000		-		1,170,000		(1,170,000	)		-			(1,170,000	)
CupCrew LLC		1,170,000		-		1,170,000		(1,170,000	)		-			(1,170,000	)
HeadFarm LLC		1,170,000		-		1,170,000		(1,170,000	)		-			(1,170,000	)
RealWorld LLC		1,170,000		-		1,170,000		(1,170,000	)		-			(1,170,000	)
Acehedge LLC		1,110,000		-		1,110,000		(1,110,000	)		-			(1,110,000	)
Fantize LLC		1,110,000		-		1,110,000		(1,110,000	)		-			(1,110,000	)
StockText LLC		1,220,000		-		1,220,000		(1,220,000	)		-			(1,220,000	)
61 Issuers in 2025, 30 in 2024		169,790		169,790		97,700		-			-			-
	$	21,103,115	$	5,748,050	$	25,333,386	$	(19,657,426	)	$	(2,696,135	)	$	(14,355,065	)