SLINGER BAG : Management’s Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

The following dialogue of our monetary situation and outcomes of operations
must be learn at the side of the monetary statements and associated notes
included elsewhere on this report and our Annual Report on Form 10-Okay for the
12 months ended April 30, 2021. Certain statements on this dialogue and elsewhere
on this report represent forward-looking statements. See “Cautionary Statement
Regarding Forward Looking Information” elsewhere on this report. Because this
dialogue entails dangers and uncertainties, our precise outcomes could differ
materially from these anticipated in these forward-looking statements.

Overview and Description of Business

Lazex Inc. (“Lazex”) was included beneath the legal guidelines of the State of Nevada on
July 12, 2015. On August 23, 2019, the bulk proprietor of Lazex entered right into a
Stock Purchase Agreement with Slinger Bag Americas Inc., a Delaware company
(“Slinger Bag Americas”), which was 100% owned by Slinger Bag Ltd. (“SBL”), an
Israeli firm. In reference to the Stock Purchase Agreement, Slinger Bag
Americas acquired 20,000,000 shares of widespread inventory of Lazex for $332,239. On
September 16, 2019, SBL transferred its possession of Slinger Bag Americas to
Lazex in alternate for the 20,000,000 shares of Lazex acquired on August 23,
2019. As a end result of these transactions, Lazex owned 100% of Slinger Bag
Americas and the only shareholder of SBL owned 20,000,000 shares of widespread inventory
(roughly 82%) of Lazex. Effective September 13, 2019, Lazex modified its
title to Slinger Bag Inc.

On October 31, 2019, Slinger Bag Americas acquired management of Slinger Bag
Canada, Inc., (“Slinger Bag Canada”) a Canadian firm included on November
3, 2017. There have been no property, liabilities or historic operational exercise of
Slinger Bag Canada at the moment.

On February 10, 2020, Slinger Bag Americas grew to become the 100% proprietor of SBL, alongside
with SBL’s wholly owned subsidiary Slinger Bag International (UK) Limited
(“Slinger Bag UK”), which was fashioned on April 3, 2019. The proprietor of SBL
contributed it to Slinger Bag Americas for no consideration.

On June 21, 2021, Slinger Bag Americas entered right into a membership curiosity
buy settlement with Charles Ruddy to amass a 100% possession stake in
Foundation Sports Systems, LLC (“Foundation Sports”).

The operations of Slinger Bag Inc., Slinger Bag Americas, Slinger Bag Canada,
Slinger Bag UK, SBL and Foundation Sports are collectively known as the
“Company” or “Slinger.”

The Company operates within the sporting and athletic items enterprise. The Company is
the proprietor of the Slinger Launcher, a extremely transportable and inexpensive ball
launcher constructed into a simple to move wheeled trolley bag. The Slinger
Launcher permits anybody to easily and simply management the velocity, frequency and
elevation of balls which might be launched for observe, coaching or health functions.

The Company has initially targeted all its energies on the tennis market
worldwide, however is within the early levels of creating ball launchers for different
ball sports activities.

For the common tennis participant, the Slinger Launcher is way more than a tennis
ball launcher. It additionally features as a whole tennis bag with ample room for
racquets, sneakers, towels, water bottles and different equipment and can cost
cellphones and different gadgets.

Tennis ball machines have been round because the 1950’s after they have been launched
by Renne Lacoste. Improvements to efficiency have been made within the 1970’s when
Prince began its tennis enterprise on the again of its first product – Little
Prince – which was a vacuum operated ball machine. In the 1990’s the primary
battery operated machines got here to the market and since that point little or no, if
something, has modified within the construction of ball machine merchandise exterior of added
computerization. Typically, the machines being marketed by conventional ball
machine manufacturers are giant, cumbersome and awkward to function. They are additionally very
costly – usually nicely above U.S. $1,000. Up till immediately the overwhelming majority of
all tennis ball machines have bought to tennis amenities, with just a few being
bought on to tennis enjoying shoppers.

According to the Tennis Industry Association ( the only largest
problem going through tennis participation is the truth that 34% of lapsed gamers
cited a “lack of enjoying accomplice” as the rationale for them stopping to play
tennis. The Slinger Launcher goes a protracted approach to fixing this challenge.

The world tennis market is regarded by trade consultants, governing
organizations, tennis manufacturers and tennis-specific market analysis corporations as
having 100 million energetic gamers globally, with as many shoppers once more being
avid followers of the game. Of this 100 million tennis participant market, 20 million
gamers are considered frequent or avid gamers – gamers who play frequently –
at the least 1 time per 30 days. These avid gamers drive the entire tennis trade
and account for 80% of all tennis revenues worldwide.


It is that this avid participant market that the Company is targeted on penetrating with
its Slinger Launcher and related tennis equipment.

The Company intends to disrupt this conventional tennis market by creating a brand new
ball machine class – known as Slinger Launcher – and advertising transportable and
inexpensive Slinger Launchers on to avid, common tennis gamers.
Constructed inside a wheeled trolley tennis bag, a Slinger Launcher weighs
round 15kgs / 34lbs when empty. If saved with 72 balls inside the load
will increase to 19kgs / 42lbs. It can simply be saved in a automobile trunk, wheeled to
the courtroom and arrange inside minutes to make use of. The Slinger Launcher is powered by a
6.6Ah Lithium battery that may last as long as 3.5 hours of play relying on the
settings getting used and frequency of use. The Slinger Launcher’s comfort as
a tennis bag mixed with its ease of operation and general efficiency as a
tennis ball launcher is the idea that the Company will goal direct gross sales

these avid gamers.

While the preliminary model focus is clearly on tennis, the Company is creating
comparable launchers to deal with different kinds of tennis across the globe which might be
both quickly gaining new individuals or are already well-established sports activities
in their very own proper. These embrace, however are usually not restricted to, Pickleball (U.S.),
Soft Tennis (Japan), and Paddle Tennis (International markets), all of that are
at the moment in both improvement or testing and are deliberate for introduction

calendar 2022 .

On December 3, 2020, Slinger signed an unique settlement with Flixsense Pty
Limited d/b/a Gameface for the event of a tennis particular synthetic
intelligence (AI) software. The Company intends to introduce a market
disrupting tennis app for gamers of all ages and skills. This app will
present a variety of analytics and different providers and embrace observe and
tennis health drills and actions, teaching ideas and recommendation and a full suite
of AI analytics. The Company will provide some providers free of cost and will
construct a tiered subscription mannequin for others. The app is anticipated to be able to
launch to the market later in calendar 2021.

In future years, the Company plans to enter new ball sport markets reminiscent of
baseball, softball, and cricket, that are at the moment deliberate for introduction in
calendar 2023.

The Company delivers Slinger Launchers immediately from the ultimate meeting facility
in Xiamen, China to prospects both by direct cargo from the port in China,
or to 3rd celebration logistics amenities in Columbia, SC (U.S.) to assist our
U.S. enterprise, Belleville, Ontario, Canada, Rotterdam, The Netherlands to
assist smaller distributors in Canada, Europe, the Middle East, Africa, and
lastly to Israel.

Additionally, we ship full containers of our Slinger Triniti tennis balls from
Wilson (our provider) in Thailand to the United States and Belgium for onward

The Company has contracted with unique distributors globally. These embrace
Japan, UK, Ireland, Switzerland, Scandinavian markets (overlaying Denmark, Sweden,
Norway, Finland) Australia, New Zealand, Bulgaria, Czech Republic, Singapore,
Morocco, Slovenia, Slovkian Republic, Hungary, Croatia, Germany, Austria,
France, Italy, Spain, Portugal, Netherlands, Belgium and Luxembourg, Russia,
Middle East GCC markets, Egypt, Bangladesh, Pakistan, Malaysia Czech and Slovak
Republics, Greece, Panama, South Africa, Hong Kong, Macau and China and we’re
in varied levels of negotiation with different potential market distribution
corporations throughout the globe.

Strategic Brand Partnerships

The Company is actively engaged on securing a quantity of extremely seen
ground-breaking strategic partnerships throughout tennis. These partnerships will
each present the Company with co-branded merchandise to complement the core product
providing and, on the identical time, are anticipated to drive mutually helpful
advertising campaigns geared toward reaching avid tennis gamers globally. Details of
such companions introduced and energetic immediately embrace:

? Wilson Sporting Goods: North America: The Company has entered a strategic
partnership with the worldwide chief in tennis, Wilson, for the availability of
co-branded Triniti tennis balls within the U.S. and Canada markets.

? Professional Tennis Registry (PTR): PTR is the world’s most prestigious
educating professional group with greater than 40,000 members. The Company has
partnered with PTR for the availability of Slinger Launchers to their membership.

? Peter Burwash International (PBI): A excessive profile group offering
teaching and tennis providers to excessive degree, prime quality motels, resorts and
tennis amenities throughout the globe. The Company is the official provider of
Slinger Launchers to PBI, which will probably be used at every location and PBI will provide
an internet affiliate marketing program selling gross sales to its record of world shoppers.

? DSV Logistics USA and OSL Logistics: DSV is one of the world’s main
suppliers of warehousing, freight forwarding and logistics. The Company will use
DSV warehousing providers within the U.S. to optimize logistical actions. OSL are
at the moment offering all freight forwarding for the U.S. markets and Europe as
nicely as third celebration warehousing logistics in Rotterdam for Europe.



There are at the moment no opponents with merchandise which might be just like the Slinger
Launcher, primarily based on its portability, affordability and tennis bag performance.
There are, nevertheless, different corporations that make tennis ball machines, together with
the next:

? Spinshot
? Lobster Sports
? Spinfire Pro 2
? Match Mate Rookie
? Sports Tutor
? Silent Partner

Raw Materials

All supplies used within the Slinger Launder can be found off-the-shelf. The
trolley bag is manufactured with 600D Polyester and has the CA65 certification
for the U.S. market. The launcher housing, Oscillator and Ball Collector tube
components are produced utilizing an injection mould utilizing poly propylene combined with 30%
glass fibers. The digital motors, PCB boards and remote-control components are all
commonplace off-the-shelf objects.

Intellectual Property

As on the date hereof, the Company has utilized for worldwide design and
utility patent safety for its major 3 merchandise: Slinger Launcher, Slinger
Oscillator and Slinger Telescopic Ball Tube. Patents have been utilized for in
all key markets together with the U.S., China, Taiwan, India, Israel and EU markets
and granted in China and Israel. Trademarks have been utilized for in all main
markets across the globe. Trademark safety has been utilized for and/or
acquired within the following nations:

? U.S.
? Chile
? Taiwan
? Mexico
? EU
? Russia
? Poland
? Czech Republic
? Australia
? New Zealand
? China
? South Korea


? Vietnam
? Singapore
? India
? Canada
? Argentina
? Brazil
? United Arab Emirates*
? South Africa*
? Columbia*
? Israel*
? Japan*
? Switzerland*
? Indonesia*
? Malaysia*
? Thailand*
? Turkey*

*Protection is pending.

The Company is engaged in ongoing efforts to register extra emblems throughout an
increasing record of merchandise, providers and functions, that are in varied
levels of the registration course of.

Slinger Bag Inc. owns the rights to its area.


The Company has a chance to disrupt the normal tennis market
globally. The Company expects drive 80% of its world revenues by means of its
direct-to-consumer go-to-market technique, whether or not that be by means of its on-line
e-commerce platform at or by means of related e-commerce
platforms established and managed by its distribution community. The stability of
revenues will probably be pushed by means of partnerships with main wholesalers,
federations and educating professional organizations and different transactions throughout varied
markets. The Company will function a third-party distributor construction in all
markets with the exception of the United States, the biggest tennis market
globally, Canada and its founder’s dwelling market of Israel. Distributor companions
could have unique territories and could have a acknowledged background inside the
tennis trade for his or her market in addition to having the monetary capability and
service infrastructure to aggressively develop the Slinger model. Uniquely within the
sports activities trade, all client orders acquired into from markets
exterior the United States will probably be routed again to our native distribution companions
to satisfy and to service their native prospects. All distributor companions will
buy with superior orders, both primarily based on a vendor-direct FOB Asia direct
ship or by means of 1 of our 3 world third celebration distribution amenities on an obligation
paid foundation and at premium value value. Currently, the Company has signed a quantity
of unique distribution agreements in key markets and has on-going discussions
with different key potential distributor companions in different markets across the globe
and is seeking to shut these distribution preparations within the coming months.

The United States market will stay a direct to client marketplace for Slinger. As
the biggest tennis market on this planet with 17.4 million gamers of which 10.5
million are common / avid gamers, the United States is a key market each to
set up the Slinger model and to drive demonstrable progress. Recently the
trade reported a big enhance in U.S. tennis participation and
general quantity of tennis play events, one thing that has been replicated in
different key tennis markets across the globe. Direct to client gross sales will probably be
supplemented by a number of main tennis wholesalers who handle giant
databases of coach, participant, faculty, highschool and membership shoppers. This market
will probably be serviced out of a third-party logistics facility in West Columbia, SC
and operated by one of Slinger’s most popular world logistics companions, DSV, one
of the world’s main suppliers of freight-forwarding, logistics and

Brand Marketing

As a direct-to-consumer e-commerce model, all advertising exercise and promoting
media will probably be centered round pushing shoppers to and
changing them to purchases. Slinger has engaged a quantity of main businesses
to assist its world advertising efforts:

Brand Nation is a world class influencer advertising company primarily based in London. Brand
Nation will lead all influencer programming globally. Slinger has seeded about
50% of its deliberate 1,000 world influencers to this point. Influencers focused are
huge ranging and embrace main sports activities, tennis, movie, TV, music and blogger
celebrities all identified for the truth that they play tennis frequently and have a
fan base in extra of 10,000 followers. All influencer exercise is rolled again
as much as the Slinger social media platforms as a way of producing vital
model consciousness and product curiosity.


Ad Venture Media Group is a New York primarily based main PPC (pay-per-click) company
whose work is grounded in subtle scientific evaluation of client information and
client tendencies and they’re acknowledged globally as leaders in paid search and
paid social media campaigns. Ad Venture Media will lead all Slinger PPC exercise
on a performance-based price construction and is briefed to drive client
engagement, by means of bespoke promoting campaigns which might be aligned to our
product profitability targets.

In the United States market, we now have partnered with a corporation known as Team
HQS who will handle an internet affiliate marketing program throughout U.S. primarily based educating
professionals, gamers, juniors and occasions. These associates will probably be supplied
with distinctive internet affiliate marketing codes to share with their social media followers
and different such communities that they’re linked to and every will obtain an
internet affiliate marketing price primarily based on revenues generated by shoppers buying
Slinger merchandise attributable to their distinctive code.

We proceed to guage every assist company on a month-to-month foundation and on the identical
time are regularly exploring new avenues to develop our attain to our core

Each of our distributor companions world wide are establishing their Slinger
distribution enterprise as Slinger itself would do if it was establishing a
Slinger subsidiary in every market. As such, every distributor may also undertake all
kinds of Slinger model advertising packages in addition to initiating new native
ideas of their very own – all geared toward reaching the avid/common tennis participant
immediately and guaranteeing that the Slinger model message is constant across the
globe. Slinger has agreed a neighborhood advertising funds construction with every
distributor as half of its distribution settlement. This advertising funds will probably be
primarily funded by the distributor accomplice with a further contribution
coming from Slinger with the contribution being linked to the distributor’s
buy targets. Each distributor will execute native grassroots packages
together with demonstration days, native educating professional partnerships, specialist tennis
community communications, seeding of Slinger product domestically as essential to native
key market tennis influencers to additional enhance the depth of the
influencer effort. Marketing {dollars} may also be allotted to Google, Facebook,
YouTube and different social media promoting spend and, the place applicable,
authorized and overseen by Ad Venture Media Group.

Distribution Agreements

Slinger Bag Americas has entered into unique distribution agreements for
Slinger’s line of merchandise, together with, however not restricted to, tennis ball launcher
gadgets, tennis ball launcher equipment, sports activities baggage, tennis balls, tennis
courtroom equipment and different tennis associated merchandise within the following markets and
with the next distributors:

Minimum Purchase
Requirement of Slinger
Territory Distributor Tennis Ball Launchers
32,500 by means of the tip of
Japan Globeride Inc. January 2025
United Kingdom and Framework Sports & 9,000 by means of the tip of
Ireland Marketing Ltd May 2025
3,000 by means of the tip of
Switzerland Ace Distribution May 2025
Denmark, Finland, Norway 6,500 by means of the tip of
and Sweden Frihavnskompagniet ApS December 2025
1,000 by means of the tip of
Morocco Planet Sport Sarl December 2025
Sportsman Warehouse t/a 2,500 by means of the tip of
Australia Tennis Only 2025
Sporting Goods 100 by means of the tip of
New Zealand Specialists 2025
950 by means of the tip of
Bulgaria Ark Dream EOOD 2025
165 by means of the tip of
Chile Sporting Brands Ltda 2025
Croatia, Hungary and 380 by means of the tip of
Slovenia Go 4 d.o.o. 2025
Austria, Belgium, France,
Germany, Italy,
Luxembourg, Portugal, Dunlop International 120,000 by means of the tip
Spain and The Netherlands Europe Ltd of 2025
950 by means of the tip of
Singapore Tennis Bot Pte Ltd 2025
10,000 by means of the tip of
India Racquets4U 2025
2,050 by means of the tip of
Israel Eran Shine 2025
Bahrain, Bangladesh,
Egypt, Kuwait, Maldives,
Oman, Pakistan, Qatar,
Saudi Arabia, Sri Lanka,
Tunisia and United Arab 3,000 by means of the tip of
Emirates Color Sports Inc 2025
380 by means of the tip of
Greece Elsol 2025
50 by means of the tip of
Panama Orange Pro 2021
1,900 by means of the tip of
Russia Neva Sport 2025
500 by means of the tip of
Malaysia Tennis Bot 2025
Czech and Slovak 3,000 by means of the tip of
Republics RaketSport s.r.o 2025
5,000 by means of the tip of
South Africa Golf Racket Pty Ltd 2025
750 by means of the tip of
Hong Kong and Macau Tennis Bot 2025
650 by means of the tip of
Indonesia and Philippines Tennis Bot 2026
Xiamen Powerway Sports 17,500 by means of the tip of
China Co. Ltd 2026
Total 221,825


Brand Endorsements

We have reached settlement with a number of globally acknowledged tennis gamers and
coaches to turn out to be model ambassadors.

Tommy Haas (former ATP #2 Player) has been appointed the Slinger Bag Chief
Ambassador. In this position Tommy will assist Slinger in constructing out its world
ambassador group targeted on figuring out ambassadors in our key world enterprise
markets of the U.S., Japan, Europe, Australia, China, Brazil and India. Tommy
may also be very energetic supporting and selling Slinger throughout the globe with
private appearances at Slinger occasions and by way of on-line coaching and drill movies.

Mike and Bob Bryan (aka the Bryan Brothers – the foremost doubles group within the
tennis world) have prolonged their ambassador agreements and will proceed to
function prominently in our advertising actions and messaging.

Additionally, we now have model endorsements with the next athletes and

? Eugenie Bouchard
? Luke and Murphy Jensen (aka the Jensen Brothers)
? Darren Cahill
? Nick Bollettieri
? Patrick Mouratoglou
? Dustin Brown

Each of the foregoing athletes and coaches is or was both a world-ranked
singles or doubles tennis participant or, within the case of Nick Bollettieri and Patrick
Mouratoglou, the coach of a quantity of world-ranked tennis gamers, has a big
following of followers and supporters and is energetic throughout many features of tennis

The Professional Tennis Registry (PTR) – a United States-based educating instructor
affiliation with roughly 40,000 members will turn out to be a non-exclusive
strategic accomplice for Slinger with all their members capable of entry an affiliate
member half of our web site.

Peter Burwash International (PBI) – a United States-based, extremely revered,
world tennis providers firm arrange by Peter Burwash some 35 years in the past. PBI
supplies tennis packages and different tennis providers to as many as 56 of the
globes main motels and resorts. Slinger Launchers will probably be obtainable to make use of at
every resort and the PBI group will probably be actively selling Slinger as half of

internet affiliate marketing exercise.

PTCA Central Europe – a European coach group of main touring professional
coaches and they, like others, will undertake an internet affiliate marketing strategy.

Tie Break 10s – a worldwide group that owns and operates Tie Break 10 occasions
each independently and in partnership with main world tour occasions, e.g.,
Indian Wells. These occasions contain prime gamers enjoying ‘tie-break’ matches with
the occasion totally accomplished in a single night and with a big money prize for
the winner. Slinger will probably be promoted at every of these occasions and will probably be
obtainable for followers to check out in addition to the Slinger model title being
prominently used on Tie Break 10s social media.

Tennis One App – a United States-based firm that has developed and
efficiently marketed an all-inclusive tennis app for gamers throughout the globe.
Slinger has engaged with Tennis One to assist its coaches nook section – a
weekly podcast collection and in doing so advantages from the model publicity obtainable
by means of the attain of the shoppers utilizing the app regularly.

Functional Tennis – an Ireland primarily based social media tennis weblog website with an
extra of 250,000 followers. Slinger is engaged with Functional Tennis in a
selection of methods and is the presenting sponsor of its weekly Tennis Podcast.

We are at the moment in discussions with different organizations, occasions, distinguished
coaches and gamers and should date seeded Slinger merchandise to 12 of the Top 20
ATP male gamers, 5 of the highest 20 WTA ladies gamers, plus quite a few different
top-class touring and educating professionals.

Throughout 2020 we sponsored a number of distinguished tennis occasions, e.g. Battle of the
Brits, Tie Break 10s (all proven reside throughout the globe).

Research and Development

The Company is concerned in further analysis and improvement of transportable,
inexpensive and player-enhancing ball launching machines and related recreation
enchancment merchandise for all ball sports activities. Following a profitable launch of its
tennis ball launcher, Slinger is at the moment discipline testing its new pickleball,
paddle and comfortable tennis launchers, that are anticipated to be launched to the
market in calendar 2022. Slinger plans to introduce comparable transportable,
versatile and inexpensive ball launchers for baseball, softball, cricket,
badminton and different excessive participation ball sports activities over the course of the following 3
years. In this connection, on September 10, 2020, Slinger entered into an
settlement with Igloo Design, which is identical firm that designed the Slinger
Launcher for tennis, for a Slinger ball launcher for baseball and softball. This
improvement commenced throughout the three months ended October 31, 2020 and preliminary
design concepts and additional route have been supplied.

We retain exterior consultants to supply analysis and product design providers
and every guide has a particular experience (e.g., molding expertise,
electronics, product design, bag design, as examples). We are also working with
a choose group of extremely certified and resourceful third-party suppliers in
Asia. We are regularly striving to establish product enhancements, new ideas
and enchancment to the manufacturing course of on an on-going each day foundation. In respect
of any new undertaking, administration supplies detailed briefs, market information, product
value targets, aggressive evaluation, timelines and undertaking value objectives to both
the product consultants or distributors and manages them to agreed upon key
efficiency indicators (“KPIs”). These KPI’s embrace however are usually not restricted to: (i)
manufacturing to focus on prices; (ii) agreed improvement timelines; (iii)
established high quality standards; and (iv) outlined efficiency standards.

We additionally retain specialist trademark and patent attorneys and work with these
attorneys on the tasks, as wanted.

Government Regulation

Both Slinger Launcher and Slinger Oscillator meet all of the U.S. authorities
necessities for electrical, radio wave and battery requirements in addition to having
all needed and required certification to facilitate world advertising and
gross sales of these merchandise.


Results of Operations for the Three Months Ended July 31, 2021 and 2020

The following are the outcomes of our operations for the three months ended July
31, 2021 as in comparison with 2020:

For the Three Months Ended
July 31, July 31,
2021 2020 Change
(Unaudited) (Unaudited)

Net gross sales $ 2,537,573 $ 564,985 $ 1,972,588
Cost of gross sales 1,752,351 936,900 815,451
Gross earnings (loss) 785,222 (371,915 ) 1,157,137

Operating bills:

Selling and advertising bills 707,097 302,018


General and administrative bills 2,394,799 759,268


Research and improvement prices 174,048 28,110

Total working bills 3,275,944 1,089,396 2,186,548
Loss from operations (2,490,722 ) (1,461,311 ) (1,029,411 )

Other expense (earnings):

Amortization of debt reductions 21,216 233,708 (212,492 )
Loss (acquire) on extinguishment of
debt 5,118,435 (566,667 )


Gain on change in truthful worth of
derivatives (4,327,344 ) – (4,327,344 )
Interest expense – associated celebration 56,233 172,464

(116,231 )
Interest expense, internet 76,050 73,210 2,840
Total different expense (earnings) 944,590 (87,285 ) 1,031,875
Loss earlier than earnings taxes (3,435,312 ) (1,374,026 ) (2,061,286 )
Provision for earnings taxes – – –
Net loss $ (3,435,312 ) $ (1,374,026 ) $ (2,061,286 )

Net gross sales

Net gross sales elevated $1,972,588, or 349%, throughout the three months ended July 31,
2021 as in comparison with the three months ended July 31, 2020. The enhance is because of
a rise within the quantity of new orders positioned on the Company’s web site and from
its worldwide distributors and fulfilled throughout the three months ended July
31, 2021 as in comparison with the three months ended July 30, 2020 when a big
portion of the orders have been associated to the Kickstarter and Indiegogo crowdfunding
campaigns initiated in fiscal 12 months 2019. As of July 31, 2021, we had deferred
income of $1,239,083 representing quantities acquired for items that haven’t been
shipped to prospects. We count on these orders to be fulfilled and the gross sales to be
acknowledged within the 12 months ended April 30, 2022.

Cost of gross sales and Gross earnings (loss)

Cost of gross sales elevated $815,451, or 87%, throughout the three months ended July 31,
2021 as in comparison with the three months ended July 31, 2020, which was primarily
because of the enhance in internet gross sales. Gross earnings elevated $1,157,137, or 311%,
throughout the three months ended July 31, 2021 as in comparison with the three months
ended July 31, 2020. The enhance in gross earnings is essentially because of the prior
12 months gross loss on internet gross sales being attributable to (1) discounted pricing on the preliminary
crowdfunding orders, (2) as success was later than initially scheduled we
fulfilled orders with the “deluxe” model of launcher (together with all options),
in addition to tennis balls, each of which elevated prices, and (3) attributable to sanctions
by the U.S. in opposition to Chinese sourced merchandise, the import obligation was raised on all
launchers introduced into the U.S. rising our value of gross sales. As a end result, our
value of gross sales exceeded preliminary gross sales values raised in our crowdfunding
campaigns. As of the start of the third quarter within the prior 12 months,
considerably all of the preliminary crowdfunding orders had been fulfilled.


Selling and advertising bills

Selling and advertising bills elevated $405,079, or 134%, throughout the three
months ended July 31, 2021 as in comparison with the three months ended July 31, 2020.
This enhance is essentially pushed by a rise in social media promoting,
sponsorships, and different investments in our public relations presence to be able to
drive gross sales and construct model consciousness.

General and administrative bills

General and administrative bills, which primarily consist of compensation
(together with share-based compensation) and different employee-related prices, as nicely
as authorized charges and charges for skilled providers, elevated $1,635,531, or 215%,
throughout the three months ended July 31, 2021 as in comparison with the three months
ended July 31, 2020. This enhance is essentially attributable to a rise in compensation
expense attributable to elevated headcount, in addition to elevated shares and warrants
issued for providers attributable to elevated ambassadors, because of this of the continued
progress of the enterprise.

Research and improvement prices

Research and improvement prices elevated $145,938, or 519%, throughout the three
months ended July 31, 2021 as in comparison with the three months ended July 31, 2020.
This enhance is primarily pushed by our funding in a brand new platform and app
that may combine synthetic intelligence (AI) expertise to supply extra worth
to our prospects, which we started creating in December 2020.

Other bills (earnings)

Other bills, internet elevated $1,031,875 throughout the three months ended July 31,
2021 as in comparison with the three months ended July 31, 2020. The enhance was
primarily because of the enhance in loss on extinguishment of debt throughout the three
months ended July 31, 2021, which was partially offset by an elevated acquire on
the change in truthful worth of derivatives in addition to a lower within the
amortization of debt reductions and associated celebration curiosity expense because of this of
decrease associated celebration debt balances 12 months over 12 months.

Liquidity and Capital Resources

Our monetary statements have been ready on a going concern foundation which
assumes we will notice our property and discharge our liabilities in
the conventional course of enterprise for the foreseeable future. We had an gathered
deficit of $32,258,585 as of July 31, 2021 and extra losses are anticipated in
the event of the enterprise. Accordingly, there’s substantial doubt about
our capability to proceed as a going concern. Our monetary statements don’t
embrace any changes associated to the recoverability and classification of
property or the quantities and classification of liabilities that is likely to be needed
ought to we be unable to proceed as a going concern.

The capability to proceed as a going concern depends upon our producing
worthwhile operations sooner or later and/or with the ability to get hold of the mandatory
financing to satisfy our obligations and repay our liabilities arising from regular
enterprise operations after they turn out to be due. Management intends to finance
working prices over the following twelve months with current money readily available, loans
from associated events, and/or personal placement of debt and/or widespread inventory.

The following is a abstract of our money flows from working, investing and
financing actions for the three months ended July 31, 2021 and 2020:

For the Three Months Ended
July 31, July 31,
2021 2020

Cash flows utilized in working actions $ (104,683 ) $ (1,594,486 )
Cash flows utilized in investing actions
(300,000 ) –

Cash flows supplied by financing actions 500,000 1,620,000

We had money and money equivalents of $1,013,309 as of July 31, 2021, as in contrast
to $928,796 as of April 30, 2021.

Net money utilized in working actions was $104,683 throughout the three months ended
July 31, 2021, in contrast with $1,594,486 throughout the identical interval in 2020. Our internet
money utilized in working actions throughout the three months ended July 31, 2021
was primarily the end result of our internet loss of $3,435,312 for the interval in addition to
will increase in stock and pay as you go bills and different present property throughout the
interval, which was partially offset by internet non-cash bills of $1,659,833 and
will increase in accounts payable and accrued bills, accrued payroll and bonuses,
deferred income and accrued curiosity – associated celebration in addition to a lower in
accounts receivable throughout the interval. Our internet money utilized in working actions
throughout the three months ended July 31, 2020 was primarily the end result of our internet
loss of $1,374,026 for the interval in addition to will increase in stock and accounts
receivable, internet non-cash features of $267,133, and decreases in accounts payable
and accrued bills. These objects have been partially offset by will increase in accrued
payroll and bonuses, deferred income and accrued curiosity – associated celebration as
nicely as a lower in pay as you go bills and different present property throughout the

Net money utilized in investing actions was $300,000 and $0 for the three months
ended July 31, 2021 and 2020. Our internet money utilized in investing actions throughout
the three months ended July 31, 2021 consisted of a $300,000 issuance of a


Net money supplied by financing actions was $500,000 for the three months
ended July 31, 2021, in contrast with $1,620,000 for a similar interval in 2020. Cash
supplied by financing actions for the three months ended July 31, 2021
consisted of proceeds of $500,000 from a word payable with a associated celebration. Cash
supplied by financing actions for the three months ended July 31, 2021
consisted of proceeds of $1,500,000 from notes payable with a associated celebration and
proceeds of $120,000 from a word payable.


Description of Indebtedness

Notes Payable – Related Party

Total excellent borrowings from the Company’s associated celebration lender as of July
31, 2021 amounted to $500,000. Accrued curiosity attributable to this associated celebration as of
July 31, 2021 amounted to $803,869.

On August 4, 2021, the Company entered right into a mortgage settlement with its associated
celebration lender for borrowings of $500,000. The mortgage is to be repaid inside 30 days
of receipt and shall bear curiosity at a charge of 12% each year.

On August 11, 2021, the Company repaid the excellent principal to its associated
celebration lender for the July 23, 2021 mortgage of $500,000 and the August 4, 2021

of $500,000.

See Note 5 and Note 11 to the condensed consolidated monetary statements for
further data.

Note Payable

On April 15, 2021, the Company entered right into a $2,000,000 word payable (the
“Note”). The Note matures April 14, 2023 and bears curiosity at fifteen %
(15%) per 12 months. The Company pays curiosity at maturity, at which era all
principal and unpaid curiosity is due.

On August 6, 2021, the Company used the online proceeds from the sale of the
Securities (see Note 11) to pay 100% of the excellent principal and accrued
curiosity by means of August 6, 2021 of the $2,000,000 Note.

See Note 6 and Note 11 to the condensed consolidated monetary statements for
further data.

Future quantities due as of July 31, 2021 are summarized as follows:

Payments due by interval
Less than More than 5
Total 1 12 months 1-3 years 3-5 years years

Notes Payable – Related Party $ 500,000 $ 500,000 $ –

$ – $ –
Note Payable 2,000,000 – 2,000,000 – –
Total $ 2,500,000 $ 500,000 $ 2,000,000 $ – $ –

We count on that working capital necessities will proceed to be funded by means of a
mixture of our current funds, money flows from operations and additional
issuances of debt and/or securities. Our working capital necessities are
anticipated to extend according to the expansion of our enterprise.

Existing working capital, additional advances and debt devices, and anticipated
money circulate are anticipated to be ample to fund our operations over the following
twelve months. We haven’t any traces of credit score or different financial institution financing preparations.
Generally, we now have financed operations to this point by means of the proceeds of personal
placement of fairness and debt devices. In reference to our marketing strategy,
administration anticipates further will increase in working bills and capital
expenditures referring to the (i) acquisition of stock; (ii) developmental
bills related to a start-up enterprise; and (iii) advertising bills. We
intend to finance these bills with additional issuances of securities and debt
issuances. Thereafter, we count on we might want to increase further capital and
generate revenues to satisfy long-term working necessities. Additional issuances
of fairness or convertible debt securities will lead to dilution to our present
shareholders. Further, such securities may need rights, preferences or
privileges senior to our widespread inventory. Additional financing might not be obtainable
upon acceptable phrases, or in any respect. If ample funds are usually not obtainable or not
obtainable on acceptable phrases, we could not be capable of take benefit of
potential new enterprise endeavors or alternatives, which might considerably
and materially prohibit our enterprise operations.

Off-Balance Sheet Arrangements

We haven’t any off-balance sheet preparations.

Effect of Inflation and Changes in Prices

We don’t imagine that inflation and modifications in costs could have a fabric
impact on our operations.

Going Concern

Our unbiased registered public accounting agency auditors’ report accompanying
our April 30, 2021 monetary statements contained an explanatory paragraph
expressing substantial doubt about our capability to proceed as a going concern.
The monetary statements have been ready assuming that we’ll proceed as a
going concern, which contemplates that we’ll notice our property and fulfill
out liabilities and commitments within the unusual course of enterprise.

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