Risk Factors Update Summary

• The Company reported an operating loss of $3,442,388 and net cash used in operating activities of $4,879,838 for the year ended April 30, 2024. This change highlights severe financial distress.
• The company plans to launch a secondary trading platform through Templum ATS by the end of 2024, subject to regulatory approval. This could significantly enhance liquidity for investors.
• There is substantial doubt about the Company’s ability to continue as a going concern within one year. This uncertainty may impact operations and debt repayment.
• The Company recorded an impairment loss of $1,048,430 in fiscal 2024, compared to no loss in fiscal 2023. This change indicates significant financial distress.
• The Company may be required to significantly reduce, reorganize, or shut down its operations. This could lead to operational disruptions and loss of market position.
• The company has forfeited 58,500 options, reducing the total available shares for grant to 108,500. This change might impact future equity compensation strategies.
• The Company issued 1,390,000 shares of common stock for $1,390 from Prefunded Warrants. This change might result in increased liquidity for the Company.
• Contract revenue as of April 30, 2024, amounted to $466, compared to $661 in 2023, indicating a decline in revenue recognition.
• The Company recorded an impairment loss of $1,048,430 in fiscal 2024, compared to $0 in 2023. This significant change may impact future financial performance.
• As of April 30, 2024, the Company had $2,420,124 of principal indebtedness outstanding, increasing financial vulnerability and limiting operational flexibility.
• The company recorded an impairment loss of $1,048,430 for intangible assets associated with MSG Development Corp. This loss indicates challenges in maintaining valuation services.
• The amount reserved for issuance under the 2023 Plan increased by 3,154,105 shares, totaling 3,262,605 shares. This change could enhance employee retention and motivation.
• The Company recognized an unrealized loss of approximately $2.7 million on equity securities, representing an impairment of over 80% of the previous value of holdings in a single issuer.
• The Company expects to recognize revenue on all remaining performance obligations over the next 12 months, which could stabilize cash flow.
• The allowance for doubtful accounts increased to $353,455 in 2024 from $136,955 in 2023, indicating heightened credit risk. This change might affect cash flow projections.
• The Company received aggregate gross proceeds of $219,600 from the exercise of Existing Warrants. This capital is crucial for funding ongoing operations and business plans.
• The Company recorded an impairment expense of $1,469,048 for intangible assets as of April 30, 2024. This indicates potential challenges in asset valuation.
• The Company issued 1,100,000 shares at $1.55 per share in May 2023, raising gross proceeds of $1,705,000. This capital influx may enhance operational capabilities.
• The Company approved a reverse split of its common stock at a ratio of 1-for-70. This action aims to regain compliance with Nasdaq Listing Rules related to minimum bid price.
• The allowance for doubtful accounts increased to $353,455 in 2024 from $91,955 in 2023, reflecting heightened credit risk and potential collection issues.
• The Company had negative working capital of $2,074,163, raising substantial doubt about its ability to continue as a going concern.
• The Company reported negative working capital of $2,074,163 as of April 30, 2024, raising concerns about financial stability and operational viability.
• Revenues for fiscal 2024 decreased by $3,542,550, or 42%, to $4,951,435 compared to fiscal 2023. This decline raises concerns about the company's financial health and growth prospects.
• Approximately $25.2 million of total assets are held in illiquid equity securities of early-stage companies, which could adversely affect financial condition and results of operations.
• The Company reported a net loss of $4,986,317 for the year ended April 30, 2024, compared to a profit of $2,954,972 in 2023, indicating worsening financial performance.
• The Company has a stock subscription payable of $10,000 as of April 30, 2024, reflecting obligations to issue equity. This liability could affect liquidity management.
• The Company accrued a total payable of $294,700 to its largest shareholder, indicating potential liquidity pressures and reliance on shareholder support.
• The Company’s Clawback Policy allows recovery of excess compensation from Covered Executives during a three-year recovery period. This policy reinforces accountability and financial integrity within the organization.
• The Company’s revenue from consulting services decreased to $3,633,900 in 2024 from $7,560,320 in 2023, indicating potential operational challenges. This decline may impact investor confidence.
• The Company received equity securities valued at $1,220,000 from StockText LLC, enhancing its asset base but reflecting reliance on equity transactions for cash flow.