PharmaCyte Biotech, Inc. 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. On August 10, 2021, our shares of common stock commenced trading on the Nasdaq Capital Market. Prior to that, shares of our common stock were quoted on the OTC Link™ quotation platform of OTC Markets Group, Inc. (“OTCQB”) as a Over-The-Counter Bulletin Board company under the classification of OTCQB utilizing the trading symbol “PMCB”. Pursuant to a 1:1500 reverse stock split effective July 12, 2021, our trading symbol was “PMCBD” until August 6, 2021. The following table sets forth the post reverse stock split (1:1,500) high and low bid quotations reported on the OTCQB for our shares for each quarter during the two fiscal years (“FYs”) ended April 30, 2021 and 2020. The prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions. Date Bid Price FY 2021 HIGH LOW First Quarter $ 52.65 19.20 Second Quarter $ 28.50 10.50 Third Quarter $ 40.35 6.00 Fourth Quarter $ 55.50 23.55 FY 2020 First Quarter $ 66.00 52.50 Second Quarter $ 65.70 47.85 Third Quarter $ 103.50 47.70 Fourth Quarter $ 89.25 35.25 As of April 30, 2021, there were 1,590,084 issued and outstanding shares of common stock. We are informed these shares are held by approximately 1,300 shareholders of record. Dividend Policy We have not paid and do not plan to pay cash dividends now. Our Board will decide any future payment of dividends, depending on the results of operations, financial condition, capital requirements and other relevant factors. Securities Authorized for Issuance under Equity Compensation Plans See Item 12 of Part III of this Report regarding information about securities authorized for issuance under our equity compensation plans. Recent Issuance of Unregistered Securities We issued Common Stock Purchase Warrants (“Warrants”) to Aeon (defined below) in connection with our Block Trades (defined below). We issued Warrants to purchase the number of shares of our restricted common stock listed below. 90 The Warrants have a five-year term and represent 5% of the number of shares of common stock sold at an exercise price equal to the price per share at which the shares were sold in the Block Trade. They are exercisable by the Holder at any time and from time to time from the Sale Date through and including the expiration date set forth in the Warrant. Each Warrant has a specified Exercise Price as set forth below. Sale Date Warrants Issued Exercise Price June 13, 2019 926 $13.50 July 15, 2019 1,296 $13.50 August 7, 2019 2,333 $7.50 February 24, 2020 667 $7.50 March 24, 2020 2,333 $7.50 March 31, 2020 667 $7.50 April 7, 2020 1,667 $15.00 April 21, 2020 556 $22.50 July 10, 2020 2,733 $15.00 July 18, 2020 2,333 $11.25 July 19, 2020 889 $11.25 July 27, 2020 1,667 $11.25 August 3, 2020 3,000 $11.25 August 6, 2020 2,733 $15.00 August 6, 2020 3,333 $7.50 August 7, 2020 3,667 $7.50 August 7, 2020 1,667 $11.25 August 10, 2020 889 $11.25 In addition to issuances of unregistered securities by us to our officers and directors previously disclosed in our Quarterly Reports on Form 10-Q, our Form 8-Ks and this Report, on March 1, 2021, we issued 29,144 post reverse stock split shares of restricted common stock relating to the cashless exercise of 26 warrant agreements to an investment banker. The non-cash expense for these share issuances was zero. All such shares were issued without registration under the Securities Act in reliance upon the exemption afforded by Section 4(a)(2) of the Securities Act based on the limited number of investors, the sophistication of the individuals involved and the use of restrictive legends on the share certificates issued to prevent a public distribution of the relevant securities. ITEM 6. SELECTED FINANCIAL DATA We are a smaller reporting company. Therefore, we are not required to include information called for by this Item 6. 91 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion may contain forward-looking statements that involve risks and uncertainties. As described under the caption “Cautionary Note Regarding Forward-Looking Statements,” our actual results could differ materially from those discussed here. Factors that could cause or contribute to such differences include, but are not limited to, any factors discussed in this section as well as factors described in Part II, Item 1A. “Risk Factors” and under the caption “Cautionary Note Regarding Forward-Looking Statements.” Overview We are a biotechnology company focused on developing and preparing to commercialize cellular therapies for cancer and diabetes based upon our proprietary cellulose-based live cell encapsulation technology we refer to as Cell-in-a-Box ® . We are working to advance clinical research and development of new cellular-based therapies in oncology and diabetes. We are actively engaged with Austrianova and other entities in preparation for a Phase 2b clinical trial in LAPC using encapsulated live cells like those used in the previous Phase 1/2 and Phase 2 clinical trials discussed above. On September 1, 2020, the Company submitted an IND to the FDA for our planned Phase 2b clinical trial in LAPC. On October 1, 2020, the Company received notice from the FDA that it had placed our IND on clinical hold. On October 30, 2020, the FDA sent a letter to us setting forth the reasons for the clinical hold and specific guidance on what we must do to have the clinical hold lifted. For the purpose of addressing the clinical hold, the Company has assembled a team of regulatory and scientific experts to respond to the items requested by the FDA. That team has been working to complete the list of items requested by the FDA. For a complete discussion of what the FDA requires of the Company and the efforts undertaken to lift the clinical hold, see Item 1. Business under the Section entitled, “Our Investigational New Drug Application and the Clinical Hold” of this Report. We have also been considering ways to exploit the benefits of the Cell-in-a-Box ® technology to develop therapies for cancer that involve prodrugs based upon certain constituents of the Cannabis plant. These constituents are of the class of compounds known as “cannabinoids”. In addition, we have been exploring ways to delay the production and accumulation of malignant ascites fluid that results from many types of abdominal cancerous tumors. Malignant ascites fluid is secreted by abdominal cancerous tumors into the abdomen after the tumors have reached a certain stage of growth. This fluid contains cancer cells that can seed and form new tumors throughout the abdomen. This fluid accumulates in the abdominal cavity, causing swelling of the abdomen, severe breathing difficulties and extreme pain. We have also been developing a potential therapy for Type 1 diabetes and insulin-dependent Type 2 diabetes Our product candidate for the treatment of diabetes consists of encapsulated genetically modified insulin-producing cells. The encapsulation will be done using the Cell-in-a-Box ® technology. Implanting these cells in the body is designed to function as a bio-artificial pancreas for purposes of insulin production. However, with respect to our programs involving cannabinoids, malignant ascites fluid and diabetes, until: (i) the FDA allows us to commence a clinical trial in LAPC described in our IND for which the FDA has placed a clinical hold; (ii) we validate our Cell-in-a-Box ® encapsulation technology in our planned Phase 2b clinical trial in LAPC and (iii) the availability of sufficient additional funding, we are not spending any further resources developing these programs. Reverse stock split Effective July 12, 2021, the Company filed a Certificate of Change with the Nevada Secretary of State that authorized a 1-for-1,500 reverse stock split. The reverse stock split resulted in the Company reducing the authorized number of shares of common stock to 33,333,334 and the issued shares of common stock to 1,611,671 (subject to adjustment based on issuances of additional shares as applicable due to the rounding up of fractional shares resulting from the 1:1,500 reverse stock split). All warrants, option, share and per share information in this Report gives retroactive effect to such one-for-fifteen hundred reverse stock split. 92 COVID-19 Potential Impact on the Financial Condition and Results of Operations COVID-19 is causing significant, industry-wide delays in clinical trials. Although we are not yet in a clinical trial, we have filed an IND with the FDA to commence a clinical trial in LAPC. While the IND has been placed on clinical hold by the FDA, we have assessed the impact of COVID-19 on our operations. As of the date of this Report, we believe the COVID-19 pandemic has had an impact upon our operations, primarily relating to delays in tasks associated with the preparation of the Company’s responses to the FDA’s clinical hold, including all requested preclinical studies and assays. There may be further delays in generating responses to the requests from the FDA related to the clinical hold. Many of these delays are due to the impact of the COVID-19 pandemic in foreign countries where we are conducting these preclinical studies and assays, including India, Europe, Singapore and Thailand. There have also been supply chain interruptions due to the COVID-19 pandemic. Further, many clinical trials have been delayed due to COVID-19. There are numerous reasons for these delays. For example, patients have shown a reluctance to enroll or continue in a clinical trial due to fear of exposure to COVID-19 when they are in a hospital or doctor’s office. There are local, regional and state-wide orders and regulations restricting usual normal activity by people. These discourage and interfere with patient visits to a doctor’s office if the visit is not COVID-19 related. Healthcare providers and health systems have shifted their resources away from clinical trials toward the care of COVID-19 patients. The FDA and other healthcare providers are making product candidates for the treatment of COVID-19 a priority over product candidates unrelated to COVID-19. As a result of COVID-19 and the mitigation efforts to address it, we may experience additional disruptions that could adversely impact our business and clinical trial, if allowed to proceed, including: (i) delays or difficulties in enrolling patients in our Phase 2b clinical trial if the FDA allows us to go forward with the trial; (ii) delays or difficulties in clinical site activation, including difficulties in recruiting clinical site investigators and clinical site personnel; (iii) delays in clinical sites receiving the supplies and materials needed to conduct our clinical trial, including interruption in global shipping that may affect the transport of our clinical trial product; (iv) changes in local regulations as part of a response to the COVID-19 pandemic which may require us to change the ways in which our clinical trial is to be conducted, which may result in unexpected costs, or to discontinue the clinical trial altogether; (v) diversion of healthcare resources away from the conduct of clinical trials, including the diversion of hospitals serving as our clinical trial sites and hospital staff supporting the conduct of our clinical trial; (vi) interruption of key clinical trial activities, such as clinical trial site monitoring, due to limitations on travel imposed or recommended by federal or state governments, employers and others, or interruption of clinical trial subject visits and study procedures, the occurrence of which could affect the integrity of clinical trial data; (vii) risk that participants enrolled in our clinical trials will acquire COVID-19 while the clinical trial is ongoing, which could impact the results of the clinical trial, including by increasing the number of observed adverse events; (viii) delays in necessary interactions with local regulators, ethics committees, and other important agencies and contractors due to limitations in employee resources or forced furlough of government employees; (ix) limitations in employee resources that would otherwise be focused on the conduct of our clinical trial because of sickness of employees or their families or the desire of employees to avoid contact with large groups of people; (x) refusal of the FDA to accept data from clinical trials in affected geographies; and (xi) interruption or delays to our clinical trial activities. As a result of the COVID-19 pandemic, commencement of our planned clinical trial to treat LAPC may be delayed beyond the lifting of the clinical hold by the FDA should that occur. Also, enrollment may be difficult for the reasons discussed above. In addition, after enrollment in the trial, if patients contract COVID-19 during their participation in the trial or are subject to isolation or shelter in place restrictions, this may cause them to drop out of our clinical trial, miss scheduled therapy appointments or follow-up visits or otherwise fail to follow the clinical trial protocol. If patients are unable to follow the clinical trial protocol or if the trial results are otherwise affected by the consequences of the COVID-19 pandemic on patient participation or actions taken to mitigate COVID-19 spread, the integrity of data from the clinical trial may be compromised or not be accepted by the FDA. This could further adversely impact or delay our clinical development program if the FDA allows it to proceed. It is highly speculative in projecting the effects of COVID-19 on our proposed clinical development program and the Company generally. Moreover, the various precautionary measures taken by many governmental authorities around the world in order to limit the spread of COVID-19 has had and may continue to have an adverse effect on the global markets and global economy, including on the availability and pricing of employees, resources, materials, manufacturing and delivery efforts and other aspects of the global economy. The continuation of the COVID-19 pandemic could materially disrupt our business and operations, hamper our ability to raise additional funds or sell or securities, continue to slow down the overall economy, curtail consumer spending, interrupt our sources of supply, and make it hard to adequately staff our operations. The effects of COVID-19 quickly and dramatically change over time. Its evolution is difficult to predict, and no one is able to say with certainty when the pandemic will cease to have an impact on our operations. 93 Performance Indicators Non-financial performance indicators used by management to manage and assess how the business is progressing will include, but are not limited to, the ability to: (i) acquire appropriate funding for all aspects of our operations; (ii) acquire and complete necessary contracts; (iii) complete activities for producing genetically modified human cells and having them encapsulated for our preclinical studies and the planned Phase 2b clinical trial in LAPC; (iv) have regulatory work completed to enable studies and trials to be submitted to regulatory agencies; (v) complete all required tests and studies on the cells and capsules we plan to use in our clinical trial in patients with LAPC; (vi) ensure completion of the production of encapsulated cells according to cGMP regulations to use in our planned clinical trial; (vii) complete all of the tasked the FDA requires of us in order to have the clinical hold lifted; and (viii) obtain approval from the FDA to lift the clinical hold on our IND that we may commence our planned Phase 2b clinical trial in LAPC. There are numerous items required to be completed successfully to ensure our final product candidate is ready for use in our planned clinical trial in LAPC. The effects of material transactions with related parties, and certain other parties to the extent necessary for such an undertaking, may have substantial effects on both the timeliness and success of our current and prospective financial position and operating results. Nonetheless, we are actively working to ensure strong ties and interactions to minimize the inherent risks regarding success. We do not believe there are factors which will cause materially different amounts to be reported than those presented in this Report. We aim to assess this regularly to provide accurate information to our shareholders. Liquidity and Capital Resources Our Consolidated Financial statements and related Notes have been prepared on a going-concern basis; however, the following conditions raise substantial doubt about the Company's ability to do so. We have not generated any revenues and have not yet achieved profitable operations. There is no assurance that profitable operations, if ever achieved, could be sustained on a continuing basis. The Consolidated Financial Statements do not include any adjustments that might be necessary should we be unable to continue in existence. We have not generated any revenues and have not yet achieved profitable operations. Also, development activities, preclinical studies, clinical trials and commercialization of our product candidates will require significant additional capital resources. Our deficit accumulated through April 30, 2021 was $107,409,493. We expect to incur substantial and increasing losses in future periods. Our total cash in the bank was $2,202,106 and $894,861 as of April 30, 2021 and 2020, respectively. Our net loss was $3,551,236 and $3,826,888 for the years ended April 30, 2021 and 2020, respectively. Cash flows from investing activities were $0 for the years ended April 30, 2021 and 2020. Net cash provided by financing activities was $4,636,807 and $2,725,848 for the years ended April 30, 2021 and 2020, respectively. For more information, see the discussion under the caption “—Discussion of Operating, Investing and Financing Activities” in this Item 7. Our ability to successfully pursue our business is subject to certain risks and uncertainties, including, among other things, uncertainty of product development, uncertainty that the FDA will lift the clinical hold, uncertainty that the FDA will approve our IND after we have submitted our responses to the FDA’s clinical hold, need to raise additional capital to fund our various studies and FDA submissions, competition from third parties, uncertainty of capital availability, in particular, when we lose the ability to utilize our currently active S-3 registration statement upon the filing of this Report, uncertainty in our ability to enter agreements with collaborative partners, dependence on third parties and dependence on key personnel. We plan to finance future operations with a combination of proceeds from the issuance of equity, debt, licensing fees and revenues from future product sales, if any. We have not generated positive cash flows from operations. There are no assurances that we will be successful in obtaining an adequate level of funding for the development and commercialization of our product candidates. We do not believe there are trends, events or uncertainties that have, or are reasonably likely to have, a material effect on our short-term or long-term liquidity. Our R&D activities are scalable. This means that we can increase or decrease the expenses associated with our planned preclinical studies and clinical trials based on our available cash. We have no contractual obligations to perform preclinical studies or clinical trials. For the time being, the principal source of our cash is the sale of our common stock in registered offerings and private placements. However, there are no assurances that such sales will be sufficient to fund our planned clinical trial and other R&D costs. 94 The Statement of Cash Flow is the focal point for our liquidity, although the exercising of warrants and/or options at appropriate times by our investors, consultants, officers and directors will have potentially important positive effects on our liquidity. We also believe that the relationship between changes in operating results may induce changes in liquidity. For example, we may experience material changes in working capital components due to the acquisition of new capital through the sale of our common stock and the conversion of warrants and/or options by our investors, consultants, officers and directors. We rely solely on working capital as our liquidity indicator, since we do not presently have any open credit lines; however, we may try to obtain credit lines or other credit facility in the future. Further, as has often been a part of our mechanism to maintain overall liquidity, internal sources of liquidity from others associated with us may be utilized when needed. We do not utilize any advanced methodology of cash management beyond paying our normal expenses. On February 22, 2018, we entered into a financial advisory offering and an “at the market offering” engagement agreement (“Aeon Agreement”) with Aeon Capital, Inc. (“Aeon”) pursuant to which Aeon agreed to use its reasonable best efforts to act as our agent for the sale of up to $25,000,000 of our common stock in “at-the-market,” or privately negotiated transactions, or transactions structured as a public offering of a distinct block or blocks of the shares of our common stock (“Block Trades”). In connection with a transaction deemed to be an “at the market offering”, we agreed to pay Aeon a cash fee of 3% of the aggregate sales price from the sale of shares of our common stock. In connection with a transaction structured as a Block Trade, we agreed to pay Aeon a cash fee of 7% of the aggregate sales price of any Block Trade sold under the Aeon Agreement unless the Company introduced the investor to Aeon, in which event the fee is 4%, plus five-year warrants representing 5% of the number of shares of common stock sold at an exercise price equal to the price per share at which the shares were sold in the Block Trade. We also agreed to reimburse certain expenses of Aeon in an amount not to exceed $10,000. In addition, we agreed to provide Aeon with customary indemnification rights. On February 4, 2021, the Aeon Agreement was terminated. From May 1, 2020 to April 30, 2021, the Company sold approximately 462,000 shares of our common stock structured as a Block Trade. The issuance of these shares resulted in gross proceeds of approximately $4.7 million. Pursuant to the Aeon Agreement, we incurred fees of approximately $472,000 and provided warrant coverage of 5% of the number of shares sold with a five-year term of approximately 23,000 warrant shares. On April 26, 2021 we entered into an engagement letter with H.C. Wainwright & Co., LLC, as underwriter, with respect to the securities to be offered in a proposed public offering We require substantial additional capital to finance our planned business operations and expect to incur operating losses in the future due to the expenses related to our core businesses. We have not realized material revenue since we commenced doing business as a biotechnology company, and there can be no assurance that we will be successful in generating revenues in the future in this sector. As of April 30, 2021, we had approximately $2,202,000 in cash in our bank account at that time the cash expenditures were approximately $200,000 per month. We believe our cash on hand, potential future sales of registered and unregistered shares of our common stock and the proceeds of the offering led by H.C. Wainwright & Co., LLC will provide sufficient capital to meet our capital requirements and to fund our operations through August 31, 2022. We will continue to be dependent on outside capital to fund our research and operating expenditures for the foreseeable future. If we fail to generate positive cash flows or fail to obtain additional capital when required, we may need to modify, delay or abandon some or all our business plans. 95 Subsequent Events On August 9, 2021, we entered into an underwriting agreement with H.C. Wainwright & Co., LLC with respect to a public offering of 2,630,385 shares of our common stock, 899,027 prefunded warrants and 3,529,412 accompanying common warrants. The total gross proceeds of the offering before deduction of underwriting discounts, commissions and estimated offering expenses are expected to be $15 million. In such offering, we granted the underwriter an option for a period of 30 days commencing on August 9, 2021 to purchase additional shares of our common stock and/or accompanying warrants. If the underwriter exercises such option in full, the total gross proceeds of the offering before deduction of underwriting discounts, commissions and estimated offering expenses are expected to be $17,249,998. Year ended April 30, 2021 compared to year ended April 30, 2020 Revenue We had no revenues in the fiscal years ended April 30, 2021 and 2020. Operating Expenses The total operating expenses during the year ended April 30, 2021 decreased by $203,414 to $3,622,981 from $3,826,395 in the year ended April 30, 2020. The decrease is mainly attributable to a decrease in compensation expense and in consulting expense as we awarded less stock-based consulting fees and compensation in 2021 than in 2020, net of increases in R&D costs and legal and professional expense. Operating expenses: Year ended April 30, 2021 Change - Increase (Decrease) and Percent Year ended April 30, 2020 R&D $ 916,249 $ 615,028 $ 301,221 204% Compensation expense $ 1,429,150 $ (157,433 ) $ 1,586,583 (10% ) Director fees $ 273,230 $ (43,662 ) $ 316,892 (14% ) General and administrative, legal and professional $ 1,004,352 $ (617,347 ) $ 1,621,699 (38% ) Loss from Operations Loss from operations during the year ended April 30, 2021 decreased by $203,414 to $3,622,981 from $3,826,395 in the year ended April 30, 2020. The decrease is mainly attributable to decreases in compensation expense, director fees and in consulting expense net of increases in R&D costs and legal and professional expense. 96 Other Income (Expenses), Net Other income, net for the year ended April 30, 2021 was $71,745 as compared to other expense, net of $493 in the year ended April 30, 2020. Other income, net for the year ended April 30, 2021, is attributable to the forgiveness of the Paycheck Protection Program (“PPP”) loan and accrued interest of $75,979 net of interest and other expenses of $4,234. Discussion of Operating, Investing and Financing Activities The following table presents a summary of our sources and uses of cash for the years ended April 30, 2021 and 2020. Year Ended April 30, 2021 Year Ended April 30, 2020 Net cash used in operating activities: $ (3,330,889 ) $ (2,338,373 ) Net cash used in investing activities: $ – $ – Net cash provided by financing activities: $ 4,636,807 $ 2,725,848 Effect of currency rate exchange $ 1,327 $ (7,867 ) Increase in cash $ 1,307,245 $ 379,608 Operating Activities: The cash used in operating activities for the years ended April 30, 2021 and 2020 is a result of our net losses offset by securities issued for services and compensation, changes to prepaid expenses, accounts payable and accrued expenses. Investing Activities : We had no investing activities for the years ended April 30, 2021 and 2020. Financing Activities : The cash provided from financing activities for the years ended April 30, 2021 and 2020 is mainly attributable to the proceeds from the sale of our common stock. Off-Balance Sheet Arrangements Except as described below, we have no off-balance sheet arrangements that could have a material current effect or that are reasonably likely to have a material adverse effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. On May 14, 2018, we entered into amendments to all of the material agreements with SG Austria and Austrianova. See Section entitled, History of the Business” in Item 1. Business. above for a description of these amendments. 97 Critical Accounting Estimates and Policies Our Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). We are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue and expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our Consolidated Financial Statements are prepared. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our Consolidated Financial Statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. Our significant accounting policies are discussed in Note 2 of the Notes to our Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this Report. Management believes that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results and require management’s most difficult, subjective or complex judgments resulting from the need to make estimates about the effects of matters that are inherently uncertain. Management has reviewed these critical accounting estimates and related disclosures with our Board. Research and Development Expenses R&D expenses consist of costs incurred for direct and overhead-related research expenses and are expensed as incurred. Costs to acquire technologies, including licenses, that are utilized in R&D and that have no alternative future use are expensed when incurred. Technology developed for use in our product candidates is expensed as incurred until technological feasibility has been established. Stock-Based Compensation Our stock-based compensation plans are described in Note 4 and 5 of the Notes of the Consolidated Financial Statements to this Report. We follow the provisions of ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees. Effective August 1, 2018, we adopted ASU 2018-07 Compensation - Stock Compensation (Topic 718): - Improvements to Nonemployee Share-Based Payment Accounting, which simplified the guidance for accounting for nonemployee share-based payment transactions for acquiring goods and services from nonemployees. Net Income (Loss) Per Share Basic net income (loss) per share of common stock is computed using the weighted-average number of common stock shares outstanding. Diluted net income (loss) per share of common stock is computed using the weighted-average number of shares of common stock and shares of common stock equivalents outstanding. Potentially dilutive stock options and warrants to purchase 44,314 and 76,727 post reverse stock split shares of common stock at April 30, 2021 and 2020, respectively, were excluded from the computation of diluted net income (loss) per share because the effect would be anti-dilutive. New Accounting Pronouncements For a discussion of all recently adopted and recently issued but not yet adopted accounting pronouncements, see “Recent Accounting Pronouncements” in Note 2 of our Notes to our Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this Report. 98 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are a smaller reporting company and are not required to include information called for by this Item 7A.