Summary of Significant Accounting Policies (Policies)

9 Months Ended

Oct. 31, 2024

Accounting Policies [Abstract]

Fair Value

Fair Value

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

			Fair value measurements at reporting date using:
Description		Fair Value	Quoted prices in active markets for identical liabilities (Level 1)	Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrant and convertible note derivative liabilities at October 31, 2024	$	637,477	–	–	$	637,477
Warrant and convertible note derivative liabilities at January 31, 2024	$	2,547,458	–	–	$	2,547,458

Our financial instruments consist of cash and cash equivalents, prepaid expenses, accounts payable, accrued liabilities, notes payable, convertible notes payable, and derivative liabilities. It is management’s opinion that we are not exposed to significant interest, currency or credit risks arising from these financial instruments. With the exception of the derivative liabilities, the fair value of these financial instruments approximates their carrying values based on their short maturities or for long-term debt based on borrowing rates currently available to us for loans with similar terms and maturities. Gains and losses recognized on changes in estimated fair value of the derivative liabilities are reported in other income (expense) as gain (loss) on change in fair value of derivative liabilities.

Net income (loss) per share

Net income (loss) per share

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Potential common stock equivalents are determined using the treasury stock method. For diluted net income (loss) per share purposes, the Company excludes stock options and other stock-based awards, including shares issued as a result of option exercises that are subject to repurchase by the Company, whose effect would be anti-dilutive from the calculation.

During the three and nine months ended October 31, 2024, the impact of 1,525,386 and 1,743,667 of stock options and 9,281,827 and 10,412,006 of warrants and 0 shares issuable from convertible notes, respectively, were considered for their dilutive effects. During the three and nine months ended October 31, 2023, the impact of 0 of stock options, 2,099,941 and 3,450,319 of warrants, respectively, were excluded from the calculation as their impact would be anti-dilutive.

A reconciliation of the weighted average shares outstanding used in basic and diluted earnings per share computation is as follows:

	For the Three Months Ended						For the Nine Months Ended
	October 31,						October 31,
	2024			2023			2024			2023
Basic income (loss) per common share
Net income (loss) available to common shareholders	$	926,992		$	(252,609	)	$	2,387,518		$	(574,567	)
Derivative (gain) loss associated with convertible debt		(11,432	)		-			(14,876	)		-
Interest expense associated with convertible debt		(5,142	)		-			(16,415	)		-
Net income (loss) for dilutive calculation	$	910,418		$	(252,609	)	$	2,356,227		$	(574,567	)
Weighted average common shares outstanding		50,794,090			32,289,211			50,193,594			24,676,301
Dilutive effect of convertible debt		-			-			-			-
Dilutive effect of common stock warrants		9,281,827			-			10,412,006			-
Dilutive effect of common stock options		1,525,386			-			1,743,667			-
Weighted average shares outstanding for diluted net income (loss) per share		61,601,303			32,289,211			62,349,267			24,676,301