Note 5 – Notes Receivable

On March 17, 2026, the Company issued a $50,000 convertible note with an OTC company with a repayment amount of $55,000 (annual interest of 10%) on the date of maturity of March 11, 2027. Upon an event of default the Company may elect to convert the note at a fixed conversion price into common stock   of the OTC company.

On April 9, 2026, the Company issued a $50,000 note with an OTC company with a repayment amount of $55,000 on the date of maturity of July 8, 2026. The terms of the note required the OTC company to issue to us an equity kicker of 500,000 restricted shares of its common stock with piggyback registration rights. The 500,000 shares were issued to us on June 9, 2026. 

Based on management’s assessment of credit risk on the notes receivables with the maturity date of March 11, 2027, the Company recognized a credit risk reserve of $50,000 as of April 30, 2026. The Company’s CEO Eric Mosser also serves as a consultant as the Chief Corporate Development Officer on the OTC company.