NOTE I – MERCHANT ADVANCES DISCLOSURE

The Company has outstanding advances under short-term lines of credit extended to merchants. These advances are measured at amortized cost and are subject to an allowance for credit losses based on the Company’s expected credit loss methodology. Management monitors the performance and collectability of its merchant receivables, including payment activity and economic, regulatory and other developments that may affect their valuation and recoverability. Under the applicable agreements, the principal amount advanced, total repayment amount, interest amount and number of required payments are fixed over the agreed term of each disbursement, irrespective of the timing of individual payments received during such term.

During the year ended April 30, 2026, the payment performance of one merchant declined and certain payments were not made in accordance with the original contractual repayment schedule. Prior to this deterioration in payment performance, the merchant had made approximately 300 scheduled payments associated with more than 50 separate funding tranches. In light of these circumstances, the Company and the merchant mutually agreed in April 2026 to amend the repayment terms of the outstanding advances to provide for revised payment dates.

As of April 30, 2026, the Company had $761,599 of outstanding advances receivable from this merchant. Based on the merchant’s payment performance, subsequent collection activity, and the information available as of April 30, 2026, the Company recorded an allowance of $751,152 for credit losses against the merchant advances. The allowance reflects the application of the Company’s expected credit loss methodology and applicable accounting guidance to the facts and circumstances existing as of April 30, 2026. The allowance does not constitute forgiveness or cancellation of the amounts owed by the merchant and does not relieve the merchant of its contractual repayment obligations under the amended repayment terms or limit the Company’s contractual rights with respect to the outstanding amounts.

As of April 30, 2026, and April 30, 2025, the outstanding merchant advances were $10,447 and $606,802 respectively.