Quarterly report pursuant to Section 13 or 15(d)

NOTE RECEIVABLE FOR COMMON STOCK, RELATED PARTY

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NOTE RECEIVABLE FOR COMMON STOCK, RELATED PARTY
9 Months Ended
Jan. 31, 2022
Note Receivable For Common Stock Related Party  
NOTE RECEIVABLE FOR COMMON STOCK, RELATED PARTY

 

4. NOTE RECEIVABLE FOR COMMON STOCK, RELATED PARTY

 

On April 30, 2019, the Company and Ault Life Sciences Fund, LLC (“ALSF”) entered into a Securities Purchase Agreement (“SPA”) for the purchase of 10,000,000 shares of the Company’s Common Stock for a total purchase price of $15,000,000, or $1.50 per share with 5,000,000 warrants with a 5-year life and an exercise price of $3.00 per share and vesting upon issuance. The total purchase price of $15,000,000 was in the form of a non-interest bearing note receivable with a 12-month term from ALSF, a related party. In November 2019, the term of the note receivable was extended to December 31, 2021, and in May 2021, the term of the note receivable was extended to December 31, 2023. The note is secured by a pledge of the purchased shares. As the note receivable from ALSF is related to the issuance of Common Stock, it is recorded as an offset to additional paid-in capital. At January 31, 2022 and April 30, 2021, the outstanding balance of the note receivable was $14,883,295.