v3.25.2
Notes Payable
 12 Months Ended
May 31, 2025
Debt Disclosure [Abstract]  
Notes Payable

Note 8 – Notes Payable

 

During the fiscal year ended May 31, 2020, a commercial bank granted to the Company a loan (the “Loan”) in the amount of $150,000, which is administered under the authority and regulations of the U.S. Small Business Administration pursuant to the Economic Injury Disaster Loan Program (the “EIDL”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan, which is evidenced by a note dated May 18, 2020, bears interest at an annual rate of 3.75% and is payable in installments of $731 per month, beginning May 18, 2021 until May 18, 2050. The Company has to maintain a hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Proceeds from loans granted under the CARES Act are intended to be used for payroll, costs to continue employee group health care benefits, rent, utilities, and certain other qualified costs (collectively, “qualifying expenses”). The Company used the loan proceeds for qualifying expenses. During the fiscal year ended May 31, 2022, the Company received a loan forgiveness for $10,000 and an additional $10,000 of borrowings under the program. The Company recorded interest expense related to the Loan, on the accompanying consolidated financial statements, of $3,736 and $5,776, as of May 31, 2025 and 2024, respectively. The Company is currently in compliance with the terms of the loan and has presented the long-term payments in accordance with the agreement.

 

Schedule of notes payable          
   May 31, 2025   May 31, 2024 
Economic Injury Disaster Loan Program (EIDL)  $140,229   $146,594 
Total   140,229    146,594 
Less: Current portion   (3,574)   (146,594)
Non-current portion  $136,655   $- 

 

The amounts of loan payments due in the next fiscals year ended May 31, are as follows:

 

     
   Total 
2026  $3,574 
2027     3,712 
2028     3,852 
2029     3,999 
2030     4,152 

Thereafter

    120,940 
Total  $140,229 

  

During the fiscal year ended May 31, 2019, the Company purchased a forklift under an installment purchase plan. The loan amount was $16,500 payable in 60 monthly installment payments of $317 comprising of principal payment of $275 and interest payment of $42. The loan was fully paid off during the year ended May 31, 2024. As at May 31, 2025 and 2024, the balance outstanding on the loan was $0 and $0, respectively. The Company recorded an interest expense of $0 and $500, associated with the equipment financing during the fiscal years ended May 31, 2025 and 2024, on the loan in the accompanying consolidated financial statements.