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 November 30, 2022, 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 $765,000 and incurred fees in the amount of $0. During the six months ended November 30, 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 $1,350,962, and incurred fees in the amount of $75,558. At November 30, 2022, and May 31, 2022, the balance due under the Short Term Financing Agreement was $387,784 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 three months ended November 30, 2022, the Company received cash proceeds in the amount of $873,000 from the loan agreement and made payments in the amount of $93,188. Of these payments $5,652 was principal and $87,536 was interest. At the inception of the loan, the Company recorded a discount in the amount of $27,000 related to prepaid fees. During the three months ended November 30, 2022, the Company amortized $3,938 of these fees to interest expense, the balance of the discount remaining at November 20, 2022 is $23,063. At November 30, 2022, and May 31, 2022, the balance due under the CBR Agreement was $871,286 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 three months ended November 30, 2022, the Company received cash proceeds in the amount of $194,000 from the loan agreement and made payments in the amount of $29,583. Of these payments $14,695 was principal and $14,888 was interest. At the inception of the loan, the Company recorded a discount in the amount of $6,000 related to prepaid fees. During the three months ended November 30, 2022, the Company amortized $625 of these fees to interest expense, the balance of the discount remaining at November 20, 2022 is $5,375. At November 30, 2022, and May 31, 2022, the balance due under the TVT Agreement was $179,930 and $0 net of discount, respectively