Note 14 – Loans Payable

Leaflink Financing Agreement

The Company is a party to an accounts receivable financing agreement with a lender (the “Short Term Financing Agreement”) for two of its subsidiaries. During the three months ended February 28, 2023, the Company received cash proceeds in the amount of $0 from additional loans under the Short-Term Financing Agreement, made payments in the amount of $235,000 and incurred fees in the amount of $0. During the nine months ended February 28, 2022, the Company received cash proceeds in the amount of $650,115 from additional loans under the Short-Term Financing Agreement, made payments in the amount of $1,585,962, and incurred fees in the amount of $75,559. At February 28, 2023, and May 31, 2022, the balance due under the Short Term Financing Agreement was $152,785 and $1,013,073, respectively. The loans are due in 30 days and have a discount fee of 3%.

2022 Financing Agreement CBR

Effective September 30, 2022, we entered into a Business Loan and Security Agreement with CBR Capital LLC to borrow $900,000. The loan is repayable in 48 weekly installments in the amount of $13,312.50 for weeks 1-8 and $29,287.50 for weeks 9-48. CBR Capital LLC has stated that it is aware of the Canaccord Debentures and the U.S. Convertible Debentures and will agree to subordinate the CBR security interest to these debenture holders.

During the nine months ended February 28, 2023, the Company received cash proceeds in the amount of $873,000 from the loan agreement. During the three and nine months ended February 28, 2023, the Company made payments in the amount of $364,763 and $457,950, respectively. Of these payments $219,159 was principal and $145,604 was interest for the three months ended February 28, 2023. Of these payments $224,811 was principal and $233,139 was interest for the nine months ended February 28, 2023. At the inception of the loan, the Company recorded a discount in the amount of $27,000 related to prepaid fees. During the three and nine months ended February 28, 2023, the Company amortized $7,313 and $11,250, respectively, of these fees to interest expense, the balance of the discount remaining at February 22, 2023 is $15,750. At February 28, 2023, and May 31, 2022, the balance due under the CBR Agreement was $659,439 and $0 net of discount, respectively

2022 Financing Agreement TVT

Effective October 21, 2022, we entered into a Purchase and Sale of Future Receipts Agreement with TVT Business Funding LLC to borrow $200,000. The loan is repayable in 48 weekly installments in the amount of $5,916.67.

During the nine months ended February 28, 2023, the Company received cash proceeds in the amount of $194,000 from the loan agreement. During the three and nine months ended February 28, 2023 and 2022, the Company made payments in the amount of $76,917 and $106,500, respectively. Of these payments $43,876 was principal and $33,041 was interest for the three months ended February 28, 2023. Of these payments $58,572 was principal and $47,928 was interest for the nine months ended February 28, 2023. At the inception of the loan, the Company recorded a discount in the amount of $6,000 related to prepaid fees. During the three and nine months ended February 28, 2023, the Company amortized $1,625 and $2,250, respectively, of these fees to interest expense, the balance of the discount remaining at February 28, 2023 is $3,750. At February 28, 2023, and May 31, 2022, the balance due under the TVT Agreement was $137,678 and $0 net of discount, respectively