Quarterly report pursuant to Section 13 or 15(d)

Notes Payable (Tables)

v3.24.4
Notes Payable (Tables)
6 Months Ended
Nov. 30, 2024
Notes Payable (Tables) [Line Items]  
Schedule of Maturities of Long-Term Debt [Table Text Block] Aggregate maturities of notes payable, convertible notes payable, and notes payable – related parties as of November 30, 2024 are as follows:

2025

  $ 1,769,303  

2026

    866,804  

2027

    309,042  

2028

    1,060,261  

Total

  $ 4,005,410  
Nonrelated Party [Member]  
Notes Payable (Tables) [Line Items]  
Schedule of Debt [Table Text Block]
   

November 30, 2024

   

May 31, 2024

 

Debenture 2

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.

 

On May 31, 2023, the Debenture 2 was amended as follows: (1) the first payment of principal and interest on June 30, 2023, followed by quarterly payment of principal and interest on September 30, 2023, beginning October 31, 2023, the Company is required to pay the note holder principal and Interest monthly through the maturity date.

 

On December 31, 2023, the Debenture 2 was amended as follows: The original issue discount in the amount of $187,000 was reduced to $37,500. A gain on extinguishment of debt in the amount of $111,807 was recognized in connection with this transaction, and a discount in the amount of $6,501 was recorded.

 

During the three and six months ended November 30, 2024, the Company amortized discounts on the Debenture 2 in the aggregate amount of $0 and $197, respectively. During the three and six months ended November 30, 2024, the Company made principal and interest payments in the amount of $0 and $17,917, respectively, on Debenture 2. As of November 30, 2024, Debenture 2 has been paid in full.

    -       17,917  

 

   

November 30, 2024

   

May 31, 2024

 

Debenture 6

Debenture in the principal amount of $500,000 (the “Debenture 6”) dated January 4, 2022, which bears interest, payable quarterly commencing nine 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. The Company recorded an original issue discount in the amount of $375,000 on Debenture 6.

 

On May 31, 2023, the Debenture 6 was amended as follows: (1) the maturity date was extended to October 31, 2024; (2) the first payment of principal and interest on June 30, 2023, followed by quarterly payment of principal and interest on September 30, 2023, beginning October 31, 2023, the Company is required to pay the note holder principal and interest monthly through the maturity date.

 

On December 31, 2023, the Debenture 6 was amended as follows: The original issue discount in the amount of $375,000 was reduced to $75,000. A gain on extinguishment of debt in the amount of $402,370 was recognized in connection with this transaction, and a discount in the amount of $209,783 was recorded.

 

During the three months and six ended November 30, 2024, the Company amortized discounts in the amount of $183,263 and $193,560, respectively, on Debenture 6. During the three and six months ended November 30, 2024, the Company capitalized interest in the amount of $10,708 on Debenture 6. During the three months and six ended November 30, 2024, the Company made principal payments in the amount of $511,340 on Debenture 6 (see note 17). At November 30, 2024, all amounts due under Debenture 6 have been paid in full.

    -       500,632  
                 

Promissory Note 6 (PN 6)

PN6 in the principal amount of $250,000 (the “PN6”) dated February 22, 2024, which bears interest a rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $11,799 beginning March 31, 2024. During the three and six months ended November 30, 2024, the Company made principal payments in the amount of $29,890 and $58,902, respectively, on PN6. During the three and six months ended November 30, 2024, the Company made interest payments on PN6 in the amount of $5,508 and $11,895, respectively.

    163,600       222,502  

Notes Payable

  $ 163,600     $ 741,052  

Less: Discount

    -       (193,756 )

Notes Payable, Net of Discount

  $ 163,600     $ 547,296  
   

November 30, 2024

   

May 31, 2024

 

Total Notes Payable, Current Portion

  $ 128,898     $ 139,345  

Total Notes Payable, Long-term Portion, net of discount

  $ 34,702     $ 407,951  
Related Party [Member]  
Notes Payable (Tables) [Line Items]  
Schedule of Debt [Table Text Block]
   

November 30, 2024

   

May 31, 2024

 

Promissory Note 1 (APN1)

PN1 Debenture in the principal amount of $475,000 (the “PN1”) dated January 2, 2024, which bears interest at a rate of 12% per annum. Principal and interest payments are due monthly for 36 months in the amount $15,917 beginning February 29, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN1 in the amount of $36,142 and $71,221, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN1 in the amount of $11,610 and $24,284, respectively.

  $ 362,840     $ 434,061  
                 

Promissory Note 2 (PN2)

PN2 in the principal amount of $465,000 (the “PN2”) dated January 2, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 36 months in the amount $15,582 beginning February 29, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN2 in the amount of $35,382 and $69,722, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN2 in the amount of $11,366 and $23,773, respectively.

    355,201       424,923  
                 

Promissory Note 3 (PN3)

PN3 in the principal amount of $450,000 (the “PN3”) dated February 22, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $21,239 beginning March 31, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN3 in the amount of $53,802 and $106,023, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN3 in the amount of $9,914 and $21,410, respectively.

    294,480       400,503  
                 

Promissory Note 4 (PN4)

PN4 in the principal amount of $300,000 (the “PN4”) dated February 22, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $14,159 beginning March 31, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN4 in the amount of $35,868 and $70,682, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN4 in the amount of $6,609 and $14,274, respectively.

    196,320       267,002  
                 

Promissory Note 5 (PN5)

PN5 in the principal amount of $350,000 (the “PN5”) dated February 22, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $16,519 beginning March 31, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN5 in the amount of $41,487 and $82,463, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN5 in the amount of $7,711 and $16,653, respectively.

    229,040       311,503  
                 

Promissory Note 7 (PN7)

PN7 in the principal amount of $100,000 (the “PN7”) dated March 6, 2024, which bears interest at the rate of 12% per annum. Interest only payments are due quarterly in the amount of $3,500 for four quarters beginning March 29, 2024. The loan is due on February 28, 2025. During the three and six months ended November 30, 2024, the Company made principal payments on PN7 in the amount of $0. During the three and six months ended November 30, 2024, the Company made interest payments on the PN7 in the amount of $3,500 and $7,000, respectively.

    100,000       100,000  
                 

Promissory Note 8 (PN8)

PN8 in the principal amount of $134,000 (the “PN8”) dated April 30, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $6,308 beginning May 31, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN8 in the amount of $15,664 and $30,867, respectively. During the three and six months ended November 30, 2024, the Company made interest payments on the PN8 in the amount of $3,529 and $6,979, respectively.

    98,164       129,031  

 

   

November 30, 2024

   

May 31, 2024

 

Promissory Note 9 (PN9)

PN9 in the principal amount of $2,600,000 (the “PN9”) dated August 28, 2024. Principal in the amount of $2,200,000 automatically converted into 56,847,545 shares of the Company’s common stock on August 30,2024; the remaining principal in the amount of $400,000 bears interest at the rate of 12% per annum and is due on August 28, 2025. The conversion of the $2,200,000 in principal was at the market price per share of $0.0387 on the date of the note, and no gain or loss was recognized on this transaction. See note 17. No interest was accrued on this note during the three months ended November 30, 2024. During the three and six months ended November 30, 2024, the Company accrued interest on the PN9 in the amount of $12,000.

    400,000       -  
                 

Promissory Note 10 (PN10)

PN10 in the principal amount of $150,000 (the “PN10”) dated October 15, 2024, which bears interest at the rate of 12% per annum. Principal and interest payments are due monthly for 24 months in the amount $7,061 beginning November 30, 2024. During the three and six months ended November 30, 2024, the Company made principal payments on the PN10 in the amount of $5,561. During the three and six months ended November 30, 2024, the Company made interest payments on the PN10 in the amount of $1,500.

    144,439       -  
                 

Total

  $ 2,180,484     $ 2,067,023  
   

November 30, 2024

   

May 31, 2024

 

Total Notes Payable – Related Party, Current Portion

  $ 1,514,362     $ 988,472  

Total Notes Payable – Related Party, Long Term Portion

  $ 666,122     $ 1,078,551