| Debt Disclosure [Text Block] |
Note 16- Notes Payable
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August 31, 2022
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May 31, 2022
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| Debenture in the principal amount of $250,000 (the “Debenture 1”) dated December 1, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 1 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 75,758 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 1 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,223 on Debenture 1. During the three months ended August 31, 2022 and 2021, $1,667 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $187,500 on Debenture 1. During the three months ended August 31, 2022 and 2021, $18,145 and $0 of this original issue discount was charged to operations, respectively. During three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $9,375 and $0 on Debenture 1, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $22,917 and $0, respectively. |
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$ |
250,000 |
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$ |
250,000 |
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| Debenture in the principal amount of $250,000 (the “Debenture 2”) dated December 21, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 2 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 75,758 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 2 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $10,428 on Debenture 2. During the three months ended August 31, 2022 and 2021, $1,009 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $187,500 on Debenture 2. During the three months ended August 31, 2022 and 2021, $18,145 and $0 of this original issue discount was charged to operations, respectively. During the three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $9,375 and $0 on Debenture 2, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $20,833 and $0, respectively. |
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250,000 |
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250,000 |
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| Debenture in the principal amount of $500,000 (the “Debenture 3”) dated December 21, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 3 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 3 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $19,335 on Debenture 3. During the three months ended August 31, 2022 and 2021, $1,871 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 3. During the three months ended August 31, 2022 and 2021, $36,290 and $0 of this original issue discount was charged to operations, respectively. During the three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $18,750 and $0 on Debenture 3, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $41,458 and $0, respectively. |
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500,000 |
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500,000 |
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August 31, 2022 |
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May 31, 2022 |
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| Debenture in the principal amount of $500,000 (the “Debenture 4”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 4 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 4 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 4. During the three months ended August 31, 2022 and 2021, $1,715 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 4. During the three months ended August 31, 2022 and 2021, $37,500 and $0 of this original issue discount was charged to operations, respectively. During the three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $18,750 and $0 on Debenture 4, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $38,750 and $0, respectively. |
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500,000 |
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500,000 |
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| Debenture in the principal amount of $500,000 (the “Debenture 5”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 5 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 5 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 5. During the three months ended August 31, 2022 and 2021, $1,715 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 5. During the three months ended August 31, 2022 and 2021, $37,500 and $0 of this original issue discount was charged to operations, respectively. During the three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $18,750 and $0 on Debenture 5, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $38,750 and $0, respectively. |
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500,000 |
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500,000 |
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| Debenture in the principal amount of $500,000 (the “Debenture 6”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 6 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 (pos reverse split) shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 6 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 6. During the three months ended August 31, 2022 and 2021, $1,715 and $0 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 6. During the three months ended August 31, 2022 and 2021, $37,500 and $0 of this original issue discount was charged to operations, respectively. During the three months ended August 31, 2022 and 2021, the Company accrued interest in the amounts of $18,750 and $0 on Debenture 6, respectively. During the three months ended August 31, 2022 and 2021, the Company made interest payments in the amounts of $38,750 and $0, respectively. |
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500,000 |
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500,000 |
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Total
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2,500,000 |
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2,500,000 |
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Original Issue Discount
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1,875,000 |
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1,875,000 |
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Notes Payable, Gross
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4,375,000 |
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4,375,000 |
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Less: Discount
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(1,486,660 |
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(1,681,434 |
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Notes Payable, Net of Discount
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2,888,340 |
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2,693,566 |
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Discounts on notes payable amortized to interest expense – 3 months ended August 31, 2022 and 2021, respectively
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$ |
194,774 |
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$ |
- |
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Aggregate maturities of notes payable and convertible notes payable as of August 31, 2022 are as follows:
For the twelve months ended August 31,
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2023
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$ |
19,448,821 |
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2024
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1,250,000 |
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2025
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1,250,000 |
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2026
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375,000 |
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2027
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375,000 |
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Thereafter
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1,125,000 |
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Total
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$ |
23,823,821 |
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During the year ended May 31, 2022, the Company offered for sale a maximum of $5,500,000 of debentures (the “2021 Debentures”) and warrants to purchase shares of the Company’s common stock at a price of $1.65 per share in an aggregate amount equal to one-half of the aggregate purchase price for the 2021 Debentures (the “2021 Debenture Warrants”) (collectively, the “November 2021 Offering”). During the year ended May 31, 2022, the Company received the amount of $2,500,000 pursuant to the November 2021 Offering and issued an aggregate of 757,576 warrants to purchase its common stock at an exercise price of $1.65 per share to the investors.
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