Annual report pursuant to Section 13 and 15(d)

Notes Payable

v3.21.2
Notes Payable
12 Months Ended
Apr. 30, 2021
Debt Disclosure [Abstract]  
Notes Payable

Note 5 - Notes Payable

 

  A. PayPal

PayPal is an electronic commerce company that facilitates payments between parties through online funds transfers. The Company processes certain customer payments ordered on its e-commerce site through PayPal. The Company has entered into multiple agreements under which PayPal provides an advance on customer payments, and then retains a portion of customer payments until the advance is repaid.  PayPal charges a fee which the Company recognizes in full upon entering an agreement.  A November 2019 agreement under which PayPal advanced $100,000 and charged a transaction fee of $6,900 was completed in January 2021.  A January 2021 agreement under which PayPal advanced $75,444 and charged a transaction fee of $2,444 had a remaining balance of $32,461 at April 30, 2021.

 

  B. Shopify Capital

Shopify Capital is an affiliate of Shopify, Inc. which provides sales software and services to the Company.  The Company processes customer transactions ordered on the e-commerce site for Rotor Riot through Shopify.  Shopify Capital has entered into multiple agreements with the Company in which it has “purchased receivables” at a discount.  Shopify retains a portion of the Company’s daily receipts until the purchased receivables have been paid.  The Company recognizes the discount as a transaction fee, in full, in the month in which the agreement is executed.  The Company assumed an existing agreement when it acquired Rotor Riot in January 2020.  This agreement was repaid in May 2020.  Since then, the Company has entered into the following agreements with Shopify:

 

     Date of Transaction    Purchased Receivables   Payment to Company   Transaction Fees    Withholding Rate     Balance at April 30, 2021
    May 2020     $158,200    $140,000   $18,200   17%   Completed – October 2020
    September 2020   $209,050   $185,000   $24,050   17%   $84
     April 2021 $236,500   $215,000 $21,500   17%   $236,500