Quarterly report pursuant to Section 13 or 15(d)

Notes Payable (Tables)

v3.23.1
Notes Payable (Tables)
9 Months Ended
Feb. 28, 2023
Notes Payable (Tables) [Line Items]  
Schedule of Debt [Table Text Block]
   

February 28, 2023

   

May 31, 2022

 

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 and nine months ended February 28, 2023, $1,667 and $5,000 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 and nine months ended February 28, 2023, $18,145 and $54,435 of this original issue discount was charged to operations, respectively. During three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $9,375 and $28,125 on Debenture 1, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $9,375 and $40,625, respectively.

  $ 250,000     $ 250,000  
                 

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 and nine months ended February 28, 2023, $1,009 and $3,027 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 and nine months ended February 28, 2023, $18,145 and $54,435 of this original issue discount was charged to operations, respectively. During the three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $9,375 and $28,125 on Debenture 2, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $9,375 and $38,542, respectively.

    250,000       250,000  

 

   

February 28, 2023

   

May 31, 2022

 

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 and nine months ended February 28, 2023, $1,871 and $5,613 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 and nine months ended February 28, 2023, $36,290 and $108,871 of this original issue discount was charged to operations, respectively. During the three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $18,750 and $56,250 on Debenture 3, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $18,750 and $76,875, respectively.

    500,000       500,000  
                 

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 and nine months ended February 28, 2023, $1,715 and $5,146 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 and nine months ended February 28, 2023, $37,500 and $112,500 of this original issue discount was charged to operations, respectively. During the three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $18,750 and $56,250 on Debenture 4, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $18,750 and $74,167, respectively.

    500,000       500,000  

 

   

February 28, 2023

   

May 31, 2022

 

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 and nine months ended February 28, 2023, $1,715 and $5,146 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 and nine months ended February 28, 2023, $37,500 and $112,500 of this original issue discount was charged to operations, respectively. During the three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $18,750 and $56,250 on Debenture 5, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $18,750 and $74,167, respectively.

    500,000       500,000  
                 

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 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 and nine months ended February 28, 2023, $1,715 and $5,146 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 and nine months ended February 28, 2023, $37,500 and $112,500 of this original issue discount was charged to operations, respectively. During the three and nine months ended February 28, 2023, the Company accrued interest in the amounts of $18,750 and $56,280 on Debenture 6, respectively. During the three and nine months ended February 28, 2023, the Company made interest payments in the amounts of $18,750 and $74,167, respectively.

    500,000       500,000  
                 

Total

  $ 2,500,000     $ 2,500,000  

Original Issue Discount

    1,875,000       1,875,000  

Notes Payable, Gross

    4,375,000       4,375,000  

Less: Discount

    (1,097,113

)

    (1,681,434

)

Notes Payable, Net of Discount

  $ 3,277,887     $ 2,693,566  

 

Schedule of Maturities of Long-Term Debt [Table Text Block]

2024

 

$

5,253,051

 

2025

 

 

5,003,051

 

2026

 

 

375,000

 

2027

 

 

375,000

 

2028

 

 

1,125,000

 

Thereafter

 

 

-

 

Total

 

$

12,131,102

 

 

Notes Payable, Other Payables [Member]  
Notes Payable (Tables) [Line Items]  
Schedule of Amortization of Debt Discount [Table Text Block]

Discounts on notes payable amortized to interest expense – 3 months ended February 28, 2023 and 2022, respectively

  $ 194,774     $ -  

 

Discounts on notes payable amortized to interest expense – 9 months ended February 28, 2023 and 2022, respectively

  $ 584,321       132,735