
Financial Performance - Net sales increased by $463,776, or 29%, to $2,069,599 for the three months ended January 31, 2024, compared to $1,605,783 for the same period in 2023[225]. - For the nine months ended January 31, 2024, net sales decreased by $147,232, or 2%, primarily due to inventory shortages[233]. - The company reported a net loss from continuing operations of $2,857,274 for the nine months ended January 31, 2024, an improvement of $15,436,639 compared to the same period in 2023[239]. - Loss from operations increased by $1,152,505, or 111%, attributed to a significant rise in total operating expenses[230]. - Total other expenses decreased by $4,210,649, or 65%, due to improvements in amortization of debt discounts and fair value of derivatives[231]. Cash Flow and Financing Activities - Cash and cash equivalents increased to $17,192,733 as of January 31, 2024, compared to $202,095 as of April 30, 2023[242]. - Net cash used in operating activities was $(2,748,446) for the nine months ended January 31, 2024, a decrease from $(6,845,810) in the same period in 2023[243]. - Net cash used in financing activities was $19,689,673 for the nine months ended January 31, 2024, compared to net cash provided of $6,481,772 in the same period in 2023[245]. - Proceeds from the issuance of common stock and warrants amounted to $17,961,828 during the nine months ended January 31, 2024[245]. Impairments and Losses - The total loss on disposal of Foundation Sports and PlaySight amounted to $41,413,892 for the year ended April 30, 2023[192]. - The Company recorded an impairment loss of $11,421,817 related to Gameface as of April 30, 2023[193]. - The Company impaired all goodwill as of April 30, 2023, following the deconsolidation of Foundation Sports[193]. Agreements and Transactions - The Company sold $315,689 in future receivables to Meged for $210,600 in cash, agreeing to pay $17,538 weekly until the amount is paid in full[194]. - The Company entered into an agreement with UFS to sell $797,500 in future receivables for $550,000 in cash, with weekly payments of $30,000[197]. - The Company agreed to pay Meged $15,107.14 weekly under the Second Meged Agreement for $423,000 in future receivables[201]. - The Company sold $693,500 in future receivables to Agile Capital Funding for $450,000 in cash on November 16, 2023[209]. - The Company sold $1,460,000 in future receivables to Agile Capital Funding for $1,000,000 in cash on January 10, 2024[218]. - The Company sold $1,183,200 in future receivables to Cedar Advance LLC for $752,000 in cash on January 29, 2024[222]. - The Company entered into a merchant cash advance agreement with Meged Funding Group, selling $315,689 in future receivables for $210,600 in cash[246]. - An agreement with UFS involved selling $797,500 in future receivables for $550,000 in cash[247]. - The Company sold $423,000 in future receivables to Meged under a second agreement, paying off a previous balance of $70,153.20[250]. Stockholder Equity and Compliance - The Company received a cash investment of $16,500,000 on January 22, 2024, increasing stockholder equity to $4,484,993, bringing it back into compliance with Nasdaq's minimum requirement[196]. - The Company has until January 22, 2024, to demonstrate compliance with Nasdaq's Minimum Stockholders' Equity Requirement[196]. - A reverse stock split of 1-for-40 was executed on September 25, 2023, following shareholder approval[200]. - The Company received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement due to the stock price being below $1.00 for 30 consecutive trading days[216]. Operational Costs - Cost of sales rose by $240,887, or 45%, resulting in a gross profit increase of $222,889, or 21%, during the same period[226]. - Selling and marketing expenses surged by $464,853, or 172%, primarily due to increased social media advertising and investments in public relations[227]. - General and administrative expenses increased by $914,179, or 50%, driven by higher debt settlement and legal fees[228]. - Research and development costs decreased by $3,638, or 100%, as all development activities were paused due to limited cash flow[229]. Auditor's Opinion - The independent auditors expressed substantial doubt about the Company's ability to continue as a going concern in their report accompanying the April 30, 2023 financial statements[257].