Financial Losses and Impairments - The total loss on disposal of Foundation Sports and PlaySight amounted to $41,413,892 for the year ended April 30, 2023[209]. - The Company recorded an impairment loss of $11,421,817 related to goodwill and intangible assets associated with Gameface as of April 30, 2023[210]. - The total loss from discontinued operations was $0 for the three months ended July 31, 2023, compared to a loss of $1,759,714 in the same period in 2022[231]. Receivables and Financing - The Company sold $797,500 in future receivables to UFS for $550,000 in cash, agreeing to pay UFS $30,000 weekly until the amount is settled[215]. - The Company sold $315,689 in future receivables to Meged for $210,600 in cash, with weekly payments of $17,538 until the amount is paid in full[213]. - The Company issued a promissory note for $2 million as part of the sale of PlaySight, with a maturity date of December 31, 2023[206]. Stock and Shareholder Actions - The Company increased the number of authorized shares of common stock from 75,000,000 to 300,000,000 via a four-to-one forward split[201]. - The Company completed a 1-40 reverse stock split of its common stock on September 25, 2023[211]. - The company issued 6,809 shares of common stock to the lender in connection with the conversion on June 20, 2023[233]. - The company issued 42,500 shares of common stock to the lender in connection with the conversion on August 31, 2023[235]. Operating Expenses and Cash Flow - The total rent expense for the three months ended July 31, 2023, was $1,969 compared to $700 for the same period in 2022[225]. - Total other expenses increased by $445,050 for the three months ended July 31, 2023, compared to the same period in 2022, with other expenses totaling $1,136,655[230]. - Net cash provided by operating activities was $803,363 for the three months ended July 31, 2023, compared to a net cash used of $3,122,519 in the same period in 2022[238]. - The company had net cash used in financing activities of $601,002 for the three months ended July 31, 2023, compared to a net cash used of $3,406,129 in the same period in 2022[238]. Future Financing and Going Concern - The company plans to finance operating costs over the next twelve months with existing cash, loans from related parties, and/or private placements of debt and/or common stock[237]. - The company had an accumulated deficit of $152,597,375 as of July 31, 2023, indicating substantial doubt about its ability to continue as a going concern[232]. Market and Compliance Issues - The company is subject to potential delisting from Nasdaq due to its common stock bid price closing below the minimum requirement of $1.00 per share for 30 consecutive business days[228]. Derivatives and Fair Value - The company recorded a gain in fair value of derivatives of $2,144,554 for the three months ended July 31, 2023, compared to $3,687,495 in the same period in 2022[230]. Earn-out Consideration - The Company agreed to earn-out consideration of common shares with a fair value of $1,334,000 in connection with the Gameface acquisition[227]. Warrants - The Company has not granted any warrants for the three months ended July 31, 2023[219].
Connexa(CNXA) - 2024 Q1 - Quarterly Report